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HomeMy WebLinkAboutRFP - P1050 COLLECTION SERVICESAdministrative Services Purchasing Divison 215 North Mason Street y 2nd Floor y P.O. Box 580 y Fort Collins, CO 80522-0580 y (970) 221-6775 y Fax (970) 221-6707 www.fcgov.com REQUEST FOR PROPOSAL P1050 Collection Services The City of Fort Collins is seeking proposals for a collection agency whose services would be utilized by the Utility Customer Services Department. Other city departments may access the services of this proposal as needed or desired. The types of accounts warranting collection action include non-sufficient funds checks for recreational passes, unpaid utility accounts, and claims for damages caused to City property, among others. It is estimated that the City will list between $150,000 and $300,000 worth of accounts annually. The agency selected will be on contract for a period of one year, with the City having the option of extending the contract for additional one-year periods not to exceed four (4) additional one-year periods. The contract is being initiated by the Customer and Administrative Services Department of the Utility and may also be used at the option of other City Departments. Written proposals, four (4) will be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before 3:00 p.m. (our clock), November 29, 2006. Proposal No. P1050. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Questions concerning the scope of the project should be directed to Project Manager Scott Cryan (970) 212-2921. Questions regarding proposals submittal or process should be directed to Opal F. Dick, CPPO, Senior Buyer (970) 221-6778. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcgov.com/bso/login.jsp 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision- making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management Administrative Services Purchasing Divison 215 North Mason Street y 2nd Floor y P.O. Box 580 y Fort Collins, CO 80522-0580 y (970) 221-6775 y Fax (970) 221-6707 www.fcgov.com REQUEST FOR PROPOSAL P1050 Collection Services The City of Fort Collins is seeking proposals for a collection agency whose services would be utilized by the Utility Customer Services Department. Other city departments may access the services of this proposal as needed or desired. The types of accounts warranting collection action include non-sufficient funds checks for recreational passes, unpaid utility accounts, and claims for damages caused to City property, among others. It is estimated that the City will list between $150,000 and $300,000 worth of accounts annually. The agency selected will be on contract for a period of one year, with the City having the option of extending the contract for additional one-year periods not to exceed four (4) additional one-year periods. The contract is being initiated by the Customer and Administrative Services Department of the Utility and may also be used at the option of other City Departments. Written proposals, four (4) will be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before 3:00 p.m. (our clock), November 29, 2006. Proposal No. P1050. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Questions concerning the scope of the project should be directed to Project Manager Scott Cryan (970) 212-2921. Questions regarding proposals submittal or process should be directed to Opal F. Dick, CPPO, Senior Buyer (970) 221-6778. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcgov.com/bso/login.jsp 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision- making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management General Information & Instructions 1. Please type answers. 2. All questions must be answered. 3. Specific responses and accuracy will be considered when evaluating your proposal. 4. All proposals will be evaluated. 5. The RFP is divided into eight (8) categories: A. Company Demographics B. Collection Policies, Techniques and practices C. Personnel Staffing, Policies and Workloads D. Accounting/client relations E. Pricing F. Lien ordinance agreement G. References H. Required enclosures A. Company Demographics Firm name: License #: Home office address: Telephone #: Branch office address: Telephone #: Previous firm name & address ( if applicable): Organization is Corporation Partnership Self-Proprietor Date firm was founded: Current manager’s name & length of service with firm: List other names and addresses firm may be known by: Indicate all Liability Insurance & Bonds: (Specify amount and type of coverage and name of company insured through) Has your firm or any of the principals been subject to legal actions regarding collection activities within the last three years? If so, explain: Has your firm been audited by any governmental agency within the last three years? If so, explain: B. Collection Policies, Techniques and Practices Explain the firm’s collection policy, techniques, and practices (include account size accepted, civil suit policy, etc.): How are debtors contacted? How often are debtors contacted? How are policies & procedures formulated and approved within your firm? Do you have a written, established mission and/or philosophy? If yes, please attach. When and how are legal matters handled? When and how does the client become involved in the legal process? Who is the firm’s Attorney? What percentage of accounts accepted go through a civil suit process? What, if any, dollar criteria is established for accounts to meet before civil suit is initiated? Explain your firm’s procedures, charges, etc. regarding non-sufficient funds or account closed checks placed for collection. Explain your firm’s policy for accepting payment arrangements from debtors. Explain, in detail, how debtor complaints against your firm are handled? Are complaints documented? At what point is the client advised, etc.? Provide copies of all complaints, regarding your firm, filed with the Colorado Collection Agency Board in the last 24 months. Explain policies on: A. Maintaining public relations between client (City of Ft. Collins) and debtor. B. Negotiating settlements of accounts. Does your firm provide a pre-collection service? If so, please describe. (Include types offered, service provided, etc.) provide samples of letters. Describe the policy regarding accounts canceled by the client and by the agency (include how long accounts are “worked” before, and if, returned, and how clients are notified of cancellations.) Do you sub-contract accounts for collection? If so, explain who, how, and why (this would include accounts assigned out-of-state, etc.): Describe your firm’s policy for handling an account that goes bankrupt after assignment. Please explain your policy regarding skips and attempts to trace them. C. Personnel Staffing, Policies & Workloads What is the total number of employee’s in your firm (local office only), and their titles? Please provide the following: Collector’s License # Position or Title Length of time with your firm Total years collection experience Describe the firm’s orientation and training of new employees? What type of on-going training is provided to employees? Describe how the accounts are assigned to each collector, or the workload breakdown per collector. (i.e. alpha, size, other factors) What is the compensation structure for employees? (Indicate if a quota is used to compensate all or part.) Are there minimum or maximum accounts a collector can handle? If so, explain. (both numbers and dollars) Does your firm offer other services? If so, explain. D. Accounting/Client Relations What account information does your firm need to accept an account for collection? What format(s) is acceptable? How are pre-collection accounts acknowledged? If so, how? When & how is the client provided with data activity and statistics? Are reports available depicting the agency’s historical performance? (if so, attach) What reports are provided depicting the agency’s performance with the client? When & how is the client provided with status reports on individual account activity? Are regular client meetings established? If so, explain. When & how are payments made to the client? Include average length of time from end of month’s collection to check being presented to client. Describe your data processing capabilities in relation to client account. How are debtor files and information stored (on-line, card system, etc.). Do you have any data communications capabilities? (If so, explain). Do you offer client employee’s training? (If so, explain). Is information provided to the client updating rules and regulations that could be used for client internal purposes? (If so, explain). E. Pricing This section is unstructured. Please explain your pricing proposal. Include rate changes and the reasons. Also include rates or fees charged for pre-collection services. F. Lien Ordinance Agreement Please read the following paragraph and respond to the question at the end: Per City Ordinance, utility balances constitute a perpetual lien on the property to which service was delivered. In the event a utility amount which has been assigned for collection is collected by a title company or paid by the property owner to relieve the lien responsibility, the account is considered collected due to the City’s Lien Ordinance, and not by the agency. The agency, therefore, is not entitled to a fee for any services rendered on the particular moneys collected in this manner, but upon request from the City will immediately cease collection efforts and return the account to the City, except when the agency has secured a judgment against said debtor. In these cases the agency shall be entitled to pursue the debtor for collection of its awarded court costs and /or interest charges, if any. Does your firm agree to abide by this requirement? G. Please list three clients that the City of Fort Collins may contact as references for your firm. Company Name & Address Spokesperson Telephone . . . H. Required Enclosures 1. Photocopy of Agency License(s) 2. Organization Chart 3. Resume’ of all principals in the firm and all employees who would deal with City accounts. 4. Most recent audited financial statement. 5. Listing of all present clients, by industry. 6. Samples of all collection notices used (and indicate, on sample, at what point in the process these are used and frequency). 7. Samples of all client accounting system reports. 8. Sample of payment report. 9. Sample of acknowledgments and/or other client forms routinely used. 16 REVIEW AND ASSESSMENT Professional firms will be evaluated on the following criteria. These criteria will be the basis for review of the written proposals and interview session if the City elects to conduct interviews. The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5 being an outstanding rating. WEIGHTING FACTOR QUALIFICATION STANDARD 1 Agency Organization Stability, structure experience, staffing 2 Ability to Meet Requirements Insurance, members, national trade associations, office and equipment abilities 2 Scope of Services Types of collection services, legal processes, returned check handling. 2 Rates Cost beneficial to the City of Fort Collins. 2 Established Effectiveness Proven good track record; experience with like work, client references. 1 Submittal Completeness of proposal, professionalism, responsiveness to inquiries 17 REFERENCES QUALIFICATION STANDARD Overall Performance Would you hire this Professional again? Did they show the skills required by this project? Timetable Was specified work completed within the specified time? Were interim deadlines met in a timely manner? Completeness Was the Professional responsive to client needs; did the Professional anticipate problems? Were problems solved quickly and effectively? Rates Was the Scope of Work completed within Rates specified? Job Knowledge a) Did professional and employees have knowledge to provide good service? b) Were problems corrected quickly and effectively? COLLECTION SERVICES AGREEMENT 18 THIS AGREEMENT made and entered into the day and year set forth below by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and __________________________, hereinafter referred to as "Agency". WITNESSETH: WHEREAS, the City is desirous of engaging the services of the Agency for the collection of monetary amounts owed to the City from third parties on overdue accounts; and WHEREAS, the City has solicited bids from collection agencies for the provision of such services; and WHEREAS, the Agency is a collection agency properly licensed and bonded under the laws of the State of Colorado to provide such services. NOW THEREFORE, in consideration of the mutual covenants and promises herein contained, the receipt and adequacy of which is hereby acknowledged by the parties, the City and the Agency do hereby agree as follows: 1. Scope of Services. At the City's option either "pre-collection" services or "direct collection" services will be provided to the City by the Agency as described below. The Agency will provide such services as an independent contractor and not as an employee of the City. Such services will commence immediately upon assignment of the account and designation of the type of service by the City to the Agency. a. Pre-collection Services. Such services will consist of no less than two, documented, written attempts at collection between the Agency and the third-party debtor. The maximum period of time within which such an account shall be lodged with the Agency for pre-collection services will be agreed upon at the time of assignment. b. Direct Collection Services. Such services will consist of the Agency's normal collection activities, including the transmission of correspondence and telephone communications between the Agency and the debtor, as deemed appropriate by the Agency. Assignment for such services shall be for a period of six months, unless otherwise specified by the City at the time of assignment. 2. Compensation. The Agency will be compensated by the City only for amounts actually collected by the Agency during the period of assignment of said accounts. Compensation for pre-collection services shall be in an amount equal to ___% of the amount collected by the Agency. Compensation for direct collection services shall be equal to __% of the amount collected by the Agency within said period, unless such accounts are recovered through litigation or are referred to another agency under Paragraph 7 of this agreement, in which event the compensation will be __% of the amount collected by the Agency. No compensation will be due to the Agency by the City for uncollected accounts, nor will interest charges accrue, either to the benefit of the City or the Agency, on accounts assigned for collection. 19 3. Assignment of Accounts. a. Frequency of Assignment. The City will assign accounts to the Agency for collection at the City's sole discretion, provided, however, that at least one account will be assigned by the City for collection during each quarter of the calendar year during the term of this agreement. The age of assigned accounts may range from sixty (60) days to twenty-four (24) months from the date such account was initially due for payment to the City by the debtor, except that the initial listing may contain accounts older than 24 months. b. Manner of Assignment. A representative shall be designated by the City upon execution of this agreement who will assign accounts to the Agency. Assignment of such accounts will be effective as of the date upon which any such account is submitted to the Agency by the designated representative. Within fifteen (15) days of the Agency's receipt of such assignment, an acknowledgment of assignment will be submitted to the City by the Agency. In the event such acknowledgment is not received within such period of time, the City may withdraw any such account not properly acknowledged. Subsequent to assignment by the City representative, the City will refrain from any direct contact with the debtor and will refer all inquiries concerning the account to the Agency for the duration of the period of assignment. c. Return of Assignment. At the time of assignment, the City has the option of specifying the dates of assignment and upon expiration thereof, the account shall expire and be returned to the City. No fee will be due the agency for monies received after the account expiration date. 4. Cancellation of Accounts. Accounts previously assigned for collection may be canceled prior to the expiration of the period of collection originally designated by the City representative either by the withdrawal of the account by the City or the return of the account by the Agency under the following circumstances: a. Withdrawal of Account by the City. In the event the City, subsequent to the assignment of an account, determines there are circumstances warranting withdrawal of an account, the City may withdraw such account from collection upon written notice to the Agency. Circumstances warranting withdrawal by the City may include, without limitation, a determination by the City of hardship to the debtor or the creation of substantial interference in an ongoing relationship between the City and the debtor by reason of a disputed account. In the event any account is withdrawn by the City under the provisions of this paragraph, written notice to the Agency shall contain a statement of the circumstances and reasons for withdrawal. Immediately upon the receipt of any such notice, the Agency will cease all collection activity and, in writing, will cancel and return the account in question to the City. Any 20 monies collected by the Agency on the account prior to the withdrawal of the same will be forthwith remitted to the City less any amount due the Agency for collection activities to the date of withdrawal. b. Return of Account by the Agency. Accounts deemed uncollectible after expiration of the accounts designated collection period, may be returned to the City by the Agency. In no event, however, will accounts remain with the Agency for collection in excess of six (6) months from the date of assignment without written approval by the City representative. c. Withdrawal of Account when collected. In the event a utility account which has been assigned to the Agency is collected by a title company or paid by the property owner at the time of closing on the sale of the property, the account will be considered collected due to the City's lien ordinance, and not by the Agency. The Agency, therefore, will not be entitled to a fee for any services rendered on these accounts and upon request from the City will immediately cease collection efforts and return the account to the City. 5. Standards of Agency Performance. The Agency agrees to maintain the following minimal standard of operation and performance during the term of this agreement and to provide proof of compliance with such upon request by the City: a. Proper licensing and bonding as required by law. b. Maintaining liability insurance in the minimum amount of $500,000.00 insuring against claims and/or litigation arising from or relating to the collection of City accounts. c. Maintaining a place of business within the State of Colorado for collection activities. d. Maintaining membership in good standing with the American Collectors Association and local credit bureau. e. Adherence to the provisions of the Federal Fair Debt Collection Practices Act, Title VIII of the Consumer Credit Protection Act. f. Establishment and maintenance of adequate in-house training for Agency employees pertaining to effective collection practices, including skip-tracing techniques and the provisions of the Fair Debt Collection Practices Act. 6. Subcontracting. No subcontracting of local accounts by the Agency will be permitted. "Local accounts" are hereby defined as accounts payable to the City from debtors residing in or doing business within Larimer County, Colorado. Accounts other than local accounts may be subcontracted by the Agency for collection only to other licensed collection agencies which are members of the American Collectors Association. Any collection or other fees due to any such third-party agency shall be paid by the 21 Agency, except that under Paragraph 2 of this Agreement the Agency's compensation for collection may be increased as stated. Any third-party agency subcontracting with the Agency for collection of City accounts will be required to adhere to the same standards, terms and conditions required of the Agency pursuant to this Agreement and the Agency will be responsible for monitoring such compliance. 7. Disputed Accounts. Upon written request from the Agency, the City will provide supporting documentation to the Agency pertaining to the underlying indebtedness of any account, the validity of which is disputed by the debtor. No account assigned to the Agency by the City will be compromised by the Agency, nor will an agreement be reached between the Agency and the debtor for settlement of said account in an amount less than that designated by the City under the assignment of said account, without the express written consent of the City representative. 8. Litigation. No court action will be instituted for collection of City accounts by the Agency without written authorization from the City representative. In the event of the initiation of any such action, the Agency shall be represented by independent legal counsel during the prosecution of any such action, and all attorneys' fees and costs pertaining to said action shall be borne solely by the Agency. 9. Progress Reports. The Agency will provide to the City no less than two (2) written reports during the term of this Agreement pertaining to all accounts assigned to the Agency by the City prior to the date of such report. The first such report shall be due six months from the date of execution of this Agreement and the second such report shall be due no less than ten (10) working days prior to the termination of this Agreement, either upon expiration of the full term hereof or upon such earlier date as this Agreement may be terminated under the provisions hereof. Any such report shall include a summary of collection activities, together with the approximate dates and results thereof, including all amounts collected by the Agency. Notwithstanding the foregoing provisions, additional reports may be required by the City regarding specific accounts and the same shall be provided to the City by the Agency within five (5) working days of the date of any such request. Upon presentation of the two (2) semi- annual reports under the provisions of this paragraph, the Agency shall meet with the City representative for the purpose of exchanging information pertaining to the state of existing law pertaining to collection activities as well as discussion of City accounts. 10. Contract Period. This Agreement shall commence January 1, 2007, and shall continue in full force and effect until December 31, 2007, unless sooner terminated as herein provided. In addition, at the option of the City, the Agreement may be extended for additional one-year periods not to exceed four (4) additional one-year periods. Pricing changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Agency and mailed no later than ninety (90) days prior to contract end. 11. Early Termination. Either party may terminate this Agreement prior to the expiration of the above mentioned term by providing written notice of termination to the other party by certified or registered mail, return receipt requested. Such notice shall be delivered to the other party at least fifteen (15) days prior to the termination date contained in the notice unless otherwise agreed by the parties. All monies due to the City by the Agency for collection accounts shall be provided to the City prior to the date of termination. 22 12. Indemnification. The Agency hereby assumes liability for, and does hereby agree to indemnify, protect, save and keep harmless the City, its agents and servants and any assigns of the City from and against any and all losses, damages, injuries, claims, demands and all expenses, on account of, arising from, or in any way related to the collection activities of the Agency on accounts assigned to the Agency by the City. 13. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party shall fail or refuse to perform according to the terms of this Agreement, such party may be declared in default thereof. 14. Remedies. In the event a party has been declared in default hereunder, and written notice to that effect is provided by non-defaulting party, the defaulting party shall be allowed a period of five (5) days within which to cure such default. In the event the default remains uncorrected, the non-defaulting party may elect to: (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail itself of any other remedy at law or equity. In the event the Agency fails or neglects to carry out the services required under this Agreement, the City may elect to make good such deficiencies and to charge the Agency therefor. In the event of default of any of the Agreements herein by either party which shall require the party not in default to commence legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non-defaulting party for the non-defaulting party's reasonable attorneys' fees and costs incurred because of the default. 15. Binding Effect. This Agreement shall be binding upon the City and the Agency and the successors, assigns and heirs of each respectively. 16. Entire Agreement. This writing constitutes the entire Agreement between the parties hereto. 17. Prohibition Against Employing Illegal Aliens. This paragraph shall apply to all Contractors whose performance of work under this Agreement does not involve the delivery of a specific end product other than reports that are merely incidental to the performance of said work. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Contractor represents and agrees that: A. As of the date of this Agreement: 1. Contractor does not knowingly employ or contract with an illegal alien; and 2. Contractor has participated or attempted to participate in the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the “Basic Pilot Program”) in order to verify that Contractor does not employ any illegal aliens. B. Contractor shall not knowingly employ or contract with an illegal alien to perform works under this Agreement or enter into a contract with a 23 subcontractor that fails to certify to Contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. C. Contractor shall continue to apply to participate in the Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Contractor is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Basic Pilot Program is discontinued. D. Contractor is prohibited from using Basic Pilot Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. E. If Contractor obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Contractor shall: 1. Notify such subcontractor and the City within three days that Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Contractor shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. F. Contractor shall comply with any reasonable request by the Colorado Department of Labor and Employment (the “Department”) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5- 102 (5), C.R.S. G. If Contractor violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Contractor shall be liable for actual and consequential damages to the City arising out of Contractor’s violation of Subsection 8-17.5-102, C.R.S. H. The City will notify the Office of the Secretary of State if Contractor violates this provision of this Agreement and the City terminates the Agreement for such breach. 24 THE CITY OF FORT COLLINS, COLORADO BY:_______________________________ James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management ATTEST: _____________________________ City Clerk APPROVED AS TO FORM: _____________________________ Assistant City Attorney PROFESSIONAL: By: ____________________________ Title:___________________________ Administrative Services Purchasing Divison 215 North Mason Street y 2nd Floor y P.O. Box 580 y Fort Collins, CO 80522-0580 y (970) 221-6775 y Fax (970) 221-6707 www.fcgov.com REQUEST FOR PROPOSAL P1050 Collection Services The City of Fort Collins is seeking proposals for a collection agency whose services would be utilized by the Utility Customer Services Department. Other city departments may access the services of this proposal as needed or desired. The types of accounts warranting collection action include non-sufficient funds checks for recreational passes, unpaid utility accounts, and claims for damages caused to City property, among others. It is estimated that the City will list between $150,000 and $300,000 worth of accounts annually. The agency selected will be on contract for a period of one year, with the City having the option of extending the contract for additional one-year periods not to exceed four (4) additional one-year periods. The contract is being initiated by the Customer and Administrative Services Department of the Utility and may also be used at the option of other City Departments. Written proposals, four (4) will be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before 3:00 p.m. (our clock), November 29, 2006. Proposal No. P1050. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Questions concerning the scope of the project should be directed to Project Manager Scott Cryan (970) 212-2921. Questions regarding proposals submittal or process should be directed to Opal F. Dick, CPPO, Senior Buyer (970) 221-6778. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcgov.com/bso/login.jsp 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision- making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management Administrative Services Purchasing Divison 215 North Mason Street y 2nd Floor y P.O. Box 580 y Fort Collins, CO 80522-0580 y (970) 221-6775 y Fax (970) 221-6707 www.fcgov.com REQUEST FOR PROPOSAL P1050 Collection Services The City of Fort Collins is seeking proposals for a collection agency whose services would be utilized by the Utility Customer Services Department. Other city departments may access the services of this proposal as needed or desired. The types of accounts warranting collection action include non-sufficient funds checks for recreational passes, unpaid utility accounts, and claims for damages caused to City property, among others. It is estimated that the City will list between $150,000 and $300,000 worth of accounts annually. The agency selected will be on contract for a period of one year, with the City having the option of extending the contract for additional one-year periods not to exceed four (4) additional one-year periods. The contract is being initiated by the Customer and Administrative Services Department of the Utility and may also be used at the option of other City Departments. Written proposals, four (4) will be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals will be received before 3:00 p.m. (our clock), November 29, 2006. Proposal No. P1050. If delivered, they are to be sent to 215 North Mason Street, 2nd Floor, Fort Collins, Colorado 80524. If mailed, the address is P.O. Box 580, Fort Collins, 80522-0580. Questions concerning the scope of the project should be directed to Project Manager Scott Cryan (970) 212-2921. Questions regarding proposals submittal or process should be directed to Opal F. Dick, CPPO, Senior Buyer (970) 221-6778. A copy of the Proposal may be obtained as follows: 1. Download the Proposal/Bid from the BuySpeed Webpage, https://secure2.fcgov.com/bso/login.jsp 2. Come by Purchasing at 215 North Mason St., 2nd floor, Fort Collins, and request a copy of the Bid. Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have a financial interest in the sale to the City of any real or personal property, equipment, material, supplies or services where such officer or employee exercises directly or indirectly any decision- making authority concerning such sale or any supervisory authority over the services to be rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift, gratuity favor, entertainment, kickback or any items of monetary value from any person who has or is seeking to do business with the City of Fort Collins is prohibited. Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be rejected and reported to authorities as such. Your authorized signature of this proposal assures that such proposal is genuine and is not a collusive or sham proposal. The City of Fort Collins reserves the right to reject any and all proposals and to waive any irregularities or informalities. Sincerely, James B. O'Neill II, CPPO, FNIGP Director of Purchasing & Risk Management General Information & Instructions 1. Please type answers. 2. All questions must be answered. 3. Specific responses and accuracy will be considered when evaluating your proposal. 4. All proposals will be evaluated. 5. The RFP is divided into eight (8) categories: A. Company Demographics B. Collection Policies, Techniques and practices C. Personnel Staffing, Policies and Workloads D. Accounting/client relations E. Pricing F. Lien ordinance agreement G. References H. Required enclosures A. Company Demographics Firm name: License #: Home office address: Telephone #: Branch office address: Telephone #: Previous firm name & address ( if applicable): Organization is Corporation Partnership Self-Proprietor Date firm was founded: Current manager’s name & length of service with firm: List other names and addresses firm may be known by: Indicate all Liability Insurance & Bonds: (Specify amount and type of coverage and name of company insured through) Has your firm or any of the principals been subject to legal actions regarding collection activities within the last three years? If so, explain: Has your firm been audited by any governmental agency within the last three years? If so, explain: B. Collection Policies, Techniques and Practices Explain the firm’s collection policy, techniques, and practices (include account size accepted, civil suit policy, etc.): How are debtors contacted? How often are debtors contacted? How are policies & procedures formulated and approved within your firm? Do you have a written, established mission and/or philosophy? If yes, please attach. When and how are legal matters handled? When and how does the client become involved in the legal process? Who is the firm’s Attorney? What percentage of accounts accepted go through a civil suit process? What, if any, dollar criteria is established for accounts to meet before civil suit is initiated? Explain your firm’s procedures, charges, etc. regarding non-sufficient funds or account closed checks placed for collection. Explain your firm’s policy for accepting payment arrangements from debtors. Explain, in detail, how debtor complaints against your firm are handled? Are complaints documented? At what point is the client advised, etc.? Provide copies of all complaints, regarding your firm, filed with the Colorado Collection Agency Board in the last 24 months. Explain policies on: A. Maintaining public relations between client (City of Ft. Collins) and debtor. B. Negotiating settlements of accounts. Does your firm provide a pre-collection service? If so, please describe. (Include types offered, service provided, etc.) provide samples of letters. Describe the policy regarding accounts canceled by the client and by the agency (include how long accounts are “worked” before, and if, returned, and how clients are notified of cancellations.) Do you sub-contract accounts for collection? If so, explain who, how, and why (this would include accounts assigned out-of-state, etc.): Describe your firm’s policy for handling an account that goes bankrupt after assignment. Please explain your policy regarding skips and attempts to trace them. C. Personnel Staffing, Policies & Workloads What is the total number of employee’s in your firm (local office only), and their titles? Please provide the following: Collector’s License # Position or Title Length of time with your firm Total years collection experience Describe the firm’s orientation and training of new employees? What type of on-going training is provided to employees? Describe how the accounts are assigned to each collector, or the workload breakdown per collector. (i.e. alpha, size, other factors) What is the compensation structure for employees? (Indicate if a quota is used to compensate all or part.) Are there minimum or maximum accounts a collector can handle? If so, explain. (both numbers and dollars) Does your firm offer other services? If so, explain. D. Accounting/Client Relations What account information does your firm need to accept an account for collection? What format(s) is acceptable? How are pre-collection accounts acknowledged? If so, how? When & how is the client provided with data activity and statistics? Are reports available depicting the agency’s historical performance? (if so, attach) What reports are provided depicting the agency’s performance with the client? When & how is the client provided with status reports on individual account activity? Are regular client meetings established? If so, explain. When & how are payments made to the client? Include average length of time from end of month’s collection to check being presented to client. Describe your data processing capabilities in relation to client account. How are debtor files and information stored (on-line, card system, etc.). Do you have any data communications capabilities? (If so, explain). Do you offer client employee’s training? (If so, explain). Is information provided to the client updating rules and regulations that could be used for client internal purposes? (If so, explain). E. Pricing This section is unstructured. Please explain your pricing proposal. Include rate changes and the reasons. Also include rates or fees charged for pre-collection services. F. Lien Ordinance Agreement Please read the following paragraph and respond to the question at the end: Per City Ordinance, utility balances constitute a perpetual lien on the property to which service was delivered. In the event a utility amount which has been assigned for collection is collected by a title company or paid by the property owner to relieve the lien responsibility, the account is considered collected due to the City’s Lien Ordinance, and not by the agency. The agency, therefore, is not entitled to a fee for any services rendered on the particular moneys collected in this manner, but upon request from the City will immediately cease collection efforts and return the account to the City, except when the agency has secured a judgment against said debtor. In these cases the agency shall be entitled to pursue the debtor for collection of its awarded court costs and /or interest charges, if any. Does your firm agree to abide by this requirement? G. Please list three clients that the City of Fort Collins may contact as references for your firm. Company Name & Address Spokesperson Telephone . . . H. Required Enclosures 1. Photocopy of Agency License(s) 2. Organization Chart 3. Resume’ of all principals in the firm and all employees who would deal with City accounts. 4. Most recent audited financial statement. 5. Listing of all present clients, by industry. 6. Samples of all collection notices used (and indicate, on sample, at what point in the process these are used and frequency). 7. Samples of all client accounting system reports. 8. Sample of payment report. 9. Sample of acknowledgments and/or other client forms routinely used. 16 REVIEW AND ASSESSMENT Professional firms will be evaluated on the following criteria. These criteria will be the basis for review of the written proposals and interview session if the City elects to conduct interviews. The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5 being an outstanding rating. WEIGHTING FACTOR QUALIFICATION STANDARD 1 Agency Organization Stability, structure experience, staffing 2 Ability to Meet Requirements Insurance, members, national trade associations, office and equipment abilities 2 Scope of Services Types of collection services, legal processes, returned check handling. 2 Rates Cost beneficial to the City of Fort Collins. 2 Established Effectiveness Proven good track record; experience with like work, client references. 1 Submittal Completeness of proposal, professionalism, responsiveness to inquiries 17 REFERENCES QUALIFICATION STANDARD Overall Performance Would you hire this Professional again? Did they show the skills required by this project? Timetable Was specified work completed within the specified time? Were interim deadlines met in a timely manner? Completeness Was the Professional responsive to client needs; did the Professional anticipate problems? Were problems solved quickly and effectively? Rates Was the Scope of Work completed within Rates specified? Job Knowledge a) Did professional and employees have knowledge to provide good service? b) Were problems corrected quickly and effectively? COLLECTION SERVICES AGREEMENT 18 THIS AGREEMENT made and entered into the day and year set forth below by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and __________________________, hereinafter referred to as "Agency". WITNESSETH: WHEREAS, the City is desirous of engaging the services of the Agency for the collection of monetary amounts owed to the City from third parties on overdue accounts; and WHEREAS, the City has solicited bids from collection agencies for the provision of such services; and WHEREAS, the Agency is a collection agency properly licensed and bonded under the laws of the State of Colorado to provide such services. NOW THEREFORE, in consideration of the mutual covenants and promises herein contained, the receipt and adequacy of which is hereby acknowledged by the parties, the City and the Agency do hereby agree as follows: 1. Scope of Services. At the City's option either "pre-collection" services or "direct collection" services will be provided to the City by the Agency as described below. The Agency will provide such services as an independent contractor and not as an employee of the City. Such services will commence immediately upon assignment of the account and designation of the type of service by the City to the Agency. a. Pre-collection Services. Such services will consist of no less than two, documented, written attempts at collection between the Agency and the third-party debtor. The maximum period of time within which such an account shall be lodged with the Agency for pre-collection services will be agreed upon at the time of assignment. b. Direct Collection Services. Such services will consist of the Agency's normal collection activities, including the transmission of correspondence and telephone communications between the Agency and the debtor, as deemed appropriate by the Agency. Assignment for such services shall be for a period of six months, unless otherwise specified by the City at the time of assignment. 2. Compensation. The Agency will be compensated by the City only for amounts actually collected by the Agency during the period of assignment of said accounts. Compensation for pre-collection services shall be in an amount equal to ___% of the amount collected by the Agency. Compensation for direct collection services shall be equal to __% of the amount collected by the Agency within said period, unless such accounts are recovered through litigation or are referred to another agency under Paragraph 7 of this agreement, in which event the compensation will be __% of the amount collected by the Agency. No compensation will be due to the Agency by the City for uncollected accounts, nor will interest charges accrue, either to the benefit of the City or the Agency, on accounts assigned for collection. 19 3. Assignment of Accounts. a. Frequency of Assignment. The City will assign accounts to the Agency for collection at the City's sole discretion, provided, however, that at least one account will be assigned by the City for collection during each quarter of the calendar year during the term of this agreement. The age of assigned accounts may range from sixty (60) days to twenty-four (24) months from the date such account was initially due for payment to the City by the debtor, except that the initial listing may contain accounts older than 24 months. b. Manner of Assignment. A representative shall be designated by the City upon execution of this agreement who will assign accounts to the Agency. Assignment of such accounts will be effective as of the date upon which any such account is submitted to the Agency by the designated representative. Within fifteen (15) days of the Agency's receipt of such assignment, an acknowledgment of assignment will be submitted to the City by the Agency. In the event such acknowledgment is not received within such period of time, the City may withdraw any such account not properly acknowledged. Subsequent to assignment by the City representative, the City will refrain from any direct contact with the debtor and will refer all inquiries concerning the account to the Agency for the duration of the period of assignment. c. Return of Assignment. At the time of assignment, the City has the option of specifying the dates of assignment and upon expiration thereof, the account shall expire and be returned to the City. No fee will be due the agency for monies received after the account expiration date. 4. Cancellation of Accounts. Accounts previously assigned for collection may be canceled prior to the expiration of the period of collection originally designated by the City representative either by the withdrawal of the account by the City or the return of the account by the Agency under the following circumstances: a. Withdrawal of Account by the City. In the event the City, subsequent to the assignment of an account, determines there are circumstances warranting withdrawal of an account, the City may withdraw such account from collection upon written notice to the Agency. Circumstances warranting withdrawal by the City may include, without limitation, a determination by the City of hardship to the debtor or the creation of substantial interference in an ongoing relationship between the City and the debtor by reason of a disputed account. In the event any account is withdrawn by the City under the provisions of this paragraph, written notice to the Agency shall contain a statement of the circumstances and reasons for withdrawal. Immediately upon the receipt of any such notice, the Agency will cease all collection activity and, in writing, will cancel and return the account in question to the City. Any 20 monies collected by the Agency on the account prior to the withdrawal of the same will be forthwith remitted to the City less any amount due the Agency for collection activities to the date of withdrawal. b. Return of Account by the Agency. Accounts deemed uncollectible after expiration of the accounts designated collection period, may be returned to the City by the Agency. In no event, however, will accounts remain with the Agency for collection in excess of six (6) months from the date of assignment without written approval by the City representative. c. Withdrawal of Account when collected. In the event a utility account which has been assigned to the Agency is collected by a title company or paid by the property owner at the time of closing on the sale of the property, the account will be considered collected due to the City's lien ordinance, and not by the Agency. The Agency, therefore, will not be entitled to a fee for any services rendered on these accounts and upon request from the City will immediately cease collection efforts and return the account to the City. 5. Standards of Agency Performance. The Agency agrees to maintain the following minimal standard of operation and performance during the term of this agreement and to provide proof of compliance with such upon request by the City: a. Proper licensing and bonding as required by law. b. Maintaining liability insurance in the minimum amount of $500,000.00 insuring against claims and/or litigation arising from or relating to the collection of City accounts. c. Maintaining a place of business within the State of Colorado for collection activities. d. Maintaining membership in good standing with the American Collectors Association and local credit bureau. e. Adherence to the provisions of the Federal Fair Debt Collection Practices Act, Title VIII of the Consumer Credit Protection Act. f. Establishment and maintenance of adequate in-house training for Agency employees pertaining to effective collection practices, including skip-tracing techniques and the provisions of the Fair Debt Collection Practices Act. 6. Subcontracting. No subcontracting of local accounts by the Agency will be permitted. "Local accounts" are hereby defined as accounts payable to the City from debtors residing in or doing business within Larimer County, Colorado. Accounts other than local accounts may be subcontracted by the Agency for collection only to other licensed collection agencies which are members of the American Collectors Association. Any collection or other fees due to any such third-party agency shall be paid by the 21 Agency, except that under Paragraph 2 of this Agreement the Agency's compensation for collection may be increased as stated. Any third-party agency subcontracting with the Agency for collection of City accounts will be required to adhere to the same standards, terms and conditions required of the Agency pursuant to this Agreement and the Agency will be responsible for monitoring such compliance. 7. Disputed Accounts. Upon written request from the Agency, the City will provide supporting documentation to the Agency pertaining to the underlying indebtedness of any account, the validity of which is disputed by the debtor. No account assigned to the Agency by the City will be compromised by the Agency, nor will an agreement be reached between the Agency and the debtor for settlement of said account in an amount less than that designated by the City under the assignment of said account, without the express written consent of the City representative. 8. Litigation. No court action will be instituted for collection of City accounts by the Agency without written authorization from the City representative. In the event of the initiation of any such action, the Agency shall be represented by independent legal counsel during the prosecution of any such action, and all attorneys' fees and costs pertaining to said action shall be borne solely by the Agency. 9. Progress Reports. The Agency will provide to the City no less than two (2) written reports during the term of this Agreement pertaining to all accounts assigned to the Agency by the City prior to the date of such report. The first such report shall be due six months from the date of execution of this Agreement and the second such report shall be due no less than ten (10) working days prior to the termination of this Agreement, either upon expiration of the full term hereof or upon such earlier date as this Agreement may be terminated under the provisions hereof. Any such report shall include a summary of collection activities, together with the approximate dates and results thereof, including all amounts collected by the Agency. Notwithstanding the foregoing provisions, additional reports may be required by the City regarding specific accounts and the same shall be provided to the City by the Agency within five (5) working days of the date of any such request. Upon presentation of the two (2) semi- annual reports under the provisions of this paragraph, the Agency shall meet with the City representative for the purpose of exchanging information pertaining to the state of existing law pertaining to collection activities as well as discussion of City accounts. 10. Contract Period. This Agreement shall commence January 1, 2007, and shall continue in full force and effect until December 31, 2007, unless sooner terminated as herein provided. In addition, at the option of the City, the Agreement may be extended for additional one-year periods not to exceed four (4) additional one-year periods. Pricing changes shall be negotiated by and agreed to by both parties. The Denver Boulder Greeley CPIU published by the Colorado State Planning and Budget Office will be used as a guide. Written notice of renewal shall be provided to the Agency and mailed no later than ninety (90) days prior to contract end. 11. Early Termination. Either party may terminate this Agreement prior to the expiration of the above mentioned term by providing written notice of termination to the other party by certified or registered mail, return receipt requested. Such notice shall be delivered to the other party at least fifteen (15) days prior to the termination date contained in the notice unless otherwise agreed by the parties. All monies due to the City by the Agency for collection accounts shall be provided to the City prior to the date of termination. 22 12. Indemnification. The Agency hereby assumes liability for, and does hereby agree to indemnify, protect, save and keep harmless the City, its agents and servants and any assigns of the City from and against any and all losses, damages, injuries, claims, demands and all expenses, on account of, arising from, or in any way related to the collection activities of the Agency on accounts assigned to the Agency by the City. 13. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party shall fail or refuse to perform according to the terms of this Agreement, such party may be declared in default thereof. 14. Remedies. In the event a party has been declared in default hereunder, and written notice to that effect is provided by non-defaulting party, the defaulting party shall be allowed a period of five (5) days within which to cure such default. In the event the default remains uncorrected, the non-defaulting party may elect to: (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail itself of any other remedy at law or equity. In the event the Agency fails or neglects to carry out the services required under this Agreement, the City may elect to make good such deficiencies and to charge the Agency therefor. In the event of default of any of the Agreements herein by either party which shall require the party not in default to commence legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non-defaulting party for the non-defaulting party's reasonable attorneys' fees and costs incurred because of the default. 15. Binding Effect. This Agreement shall be binding upon the City and the Agency and the successors, assigns and heirs of each respectively. 16. Entire Agreement. This writing constitutes the entire Agreement between the parties hereto. 17. Prohibition Against Employing Illegal Aliens. This paragraph shall apply to all Contractors whose performance of work under this Agreement does not involve the delivery of a specific end product other than reports that are merely incidental to the performance of said work. Pursuant to Section 8-17.5-101, C.R.S., et. seq., Contractor represents and agrees that: A. As of the date of this Agreement: 1. Contractor does not knowingly employ or contract with an illegal alien; and 2. Contractor has participated or attempted to participate in the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, administered by the United States Department of Homeland Security (the “Basic Pilot Program”) in order to verify that Contractor does not employ any illegal aliens. B. Contractor shall not knowingly employ or contract with an illegal alien to perform works under this Agreement or enter into a contract with a 23 subcontractor that fails to certify to Contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. C. Contractor shall continue to apply to participate in the Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Contractor is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Basic Pilot Program is discontinued. D. Contractor is prohibited from using Basic Pilot Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. E. If Contractor obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, Contractor shall: 1. Notify such subcontractor and the City within three days that Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and 2. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the illegal alien; except that Contractor shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. F. Contractor shall comply with any reasonable request by the Colorado Department of Labor and Employment (the “Department”) made in the course of an investigation that the Department undertakes or is undertaking pursuant to the authority established in Subsection 8-17.5- 102 (5), C.R.S. G. If Contractor violates any provision of this Agreement pertaining to the duties imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If this Agreement is so terminated, Contractor shall be liable for actual and consequential damages to the City arising out of Contractor’s violation of Subsection 8-17.5-102, C.R.S. H. The City will notify the Office of the Secretary of State if Contractor violates this provision of this Agreement and the City terminates the Agreement for such breach. 24 THE CITY OF FORT COLLINS, COLORADO BY:_______________________________ James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management ATTEST: _____________________________ City Clerk APPROVED AS TO FORM: _____________________________ Assistant City Attorney PROFESSIONAL: By: ____________________________ Title:___________________________