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HomeMy WebLinkAboutRFP - 8488 COLLECTION AGENCY SERVICES (2)RFP 8488 Collection Agency Services Page 1 of 24 REQUEST FOR PROPOSAL 8488 COLLECTION AGENCY SERVICES The City of Fort Collins is requesting proposals from qualified firms to provide Collection Agency Services. As part of the City’s commitment to Sustainable Purchasing, proposals submission via email is preferred. Proposals shall be submitted in a single Microsoft Word or PDF file under 20MB and e-mailed to: purchasing@fcgov.com. If electing to submit hard copy proposals instead, seven (7) copies, will be received at the City of Fort Collins' Purchasing Division, 215 North Mason St., 2nd floor, Fort Collins, Colorado 80524. Proposals must be received before 3:00 p.m. (our clock), April 24, 2017 and referenced as Proposal No. 8488. 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. Please note, additional time is required for bids mailed to the PO Box to be received at the Purchasing Office. The City encourages all Disadvantaged Business Enterprises (DBEs) to submit proposals in response to all requests for proposals. No individual or business will be discriminated against on the grounds of race, color, sex, or national origin. It is the City’s policy to create a level playing field on which DBEs can compete fairly and to ensure nondiscrimination in the award and administration of all contracts. Questions concerning the project should be directed to Pat Johnson, CPPB, Senior Buyer at pjohnson@fcgov.com in written format. Please format your e-mail to include: RFP 8488 Collection Agency Services in the subject line. The deadline for question submittal is April 10, 2017 at 4:00 pm. A copy of the RFP may be obtained at www.rockymountainbidsystem.com. The City of Fort Collins is subject to public information laws, which permit access to most records and documents. Proprietary information in your response must be clearly identified and will be protected to the extent legally permissible. Proposals may not be marked ‘Proprietary’ in their entirety. All provisions of any contract resulting from this request for proposal will be public information. New Vendors: The City requires new vendors receiving awards from the City to fill out and submit an IRS form W-9 and to register for Direct Deposit (Electronic) payment. If needed, the W-9 form and the Vendor Direct Deposit Authorization Form can be found on the City’s Purchasing website at www.fcgov.com/purchasing under Vendor Reference Documents. 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 Financial Services Purchasing Division 215 N. Mason St. 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6775 970.221.6707 fcgov.com/purchasing RFP 8488 Collection Agency Services Page 2 of 24 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. Utilization of Award by Other Agencies: The City of Fort Collins reserves the right to allow other state and local governmental agencies, political subdivisions, and/or school districts to utilize the resulting award under all terms and conditions specified and upon agreement by all parties. Usage by any other entity shall not have a negative impact on the City of Fort Collins in the current term or in any future terms. Sustainability: Consulting firms/teams participating in the proposal are to provide an overview of the organization’s philosophy and approach to Sustainability. In no more than two (2) pages please describe how your organization strives to be sustainable in the use of materials, equipment, vehicles, fuel, recycling, office practices, etc. The City of Fort Collins incorporates the Triple Bottom Line into our decision process by including economic (or financial), environmental, and social factors in our evaluation. The selected Service Provider shall be expected to sign the City’s standard Agreement without revision prior to commencing Services (see sample attached to this Proposal). Sincerely, Gerry S. Paul Purchasing Director RFP 8488 Collection Agency Services Page 3 of 24 I. BACKGROUND AND OBJECTIVE A. Objective City of Fort Collins is seeking a qualified agency to collect past-due accounts on a contingent- fee basis. Collection agency services will primarily be used by Fort Collins Utilities (Utilities), but also may be utilized by other City Departments, such as Municipal Court, Sales Tax, Streets etc. Utilities issued approximately one million utility bills for about 80,000 accounts in 2016 and was unable to collect on approximately 3% of the total accounts. In 2016, Utilities referred 1,945 utility accounts to collections, for a total of $438,875. The City cancelled $14,135 of this debt because the homes sold or the customer moved back into the area. Per City Code, unpaid utility costs constitute a perpetual lien on property in Fort Collins. B. Background Fort Collins is a vibrant community of approximately 151,000 located 65 miles north of Denver, at the base of the foothills of the Rocky Mountains. The City is 56 square miles in size and is the northern extension of the “Colorado Front Range” urban corridor. The City’s population includes more than 24,000 college students. Fort Collins Utilities provides electric, water, wastewater and/or stormwater services to approximately 65,000 residential and commercial customers. For more information, visit fcgov.com/utilities. II. SCOPE OF PROPOSAL A. Scope of Work Fort Collins Utilities requests proposals from qualified agencies to collect past-due accounts on a contingent fee basis. Accounts shall be assigned to the agency for the intent of collecting overdue monetary amounts due the City, while maintaining a good customer relationship. Agency shall promptly undertake, through proper and lawful means, the post-default due diligence and collection of all accounts referred to it by City without regard to the amount. Collection agencies shall provide Utilities with normal collection activities, including, without limitation, correspondence and communications between the agency and the delinquent debtor(s). It is the City's intention to have all costs of the collection assumed by the delinquent debtor. There is no guarantee that any fixed quantity of debts will be referred to the Agency. All vendor proposals must address each of the following sections and be submitted with the ability to complete the work as described. Do not exclude any major or minor items of information not specifically mentioned, but which would normally and reasonably be provided. 1. Scope of Services. At the City's option, collection services will be provided to the City by the Agency an independent contractor and not as an employee of the City. Such services will commence immediately upon assignment of the account by the City to the Agency. Awarded Agency must be legally responsible for all collections work performed for the City. Agency shall utilize professional expertise, quality assurance, and conform to proper and lawful means governing the debt collection industry to achieve maximum recovery of the accounts. 2. Compensation. The Agency will be compensated by the City only for amounts actually RFP 8488 Collection Agency Services Page 4 of 24 collected by the Agency during the period of assignment of said accounts. 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. In the event an account is reduced or canceled by City, no collection fee will be due to Agency for the amount of the reduction or cancellation. 3. Assignment of Accounts. a. Frequency of Assignment. The City will assign accounts to the Agency for collection at the City's sole discretion. The age of assigned accounts may range from ninety (90) days to twelve (12) months from the date such account was initially due for payment to the City by the debtor. b. Manner of Assignment. Assignment of accounts will be effective as of the date upon which the account is submitted to the Agency by the City. Subsequent to assignment by the City, 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. 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. 4. Cancellation of Accounts. Accounts previously assigned may be canceled 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 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. Immediately upon the receipt of any such notice, the Agency will cease all collection activity and will cancel and return the account in question to the City. b. Return of Account by the Agency. Accounts deemed uncollectible after expiration (e.g. bankruptcy, death of account holder) may be returned to the City by the Agency. It is the Agency’s responsibility to provide the City with the reason for return. 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 standards 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. RFP 8488 Collection Agency Services Page 5 of 24 b. Adherence to the provisions of the Federal Fair Debt Collection Practices Act, Title VIII of the Consumer Credit Protection Act and other applicable federal, state and local laws and regulations. c. Establishment and maintenance of adequate in-house training for Agency employees pertaining to effective collection practices and the provisions of applicable federal, state and local laws. d. Agency shall report delinquent accounts to appropriate national credit reporting agencies and agree to comply with all terms and conditions of applicable federal, state and local laws. Agency will provide City required written policy regarding the “accuracy and integrity” of the information they are furnishing to credit reporting agencies. 6. 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. 7. 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. B. Reporting & Payments Fort Collins Utilities wishes to receive monthly reports detailing collections activities and receive or have access to the following: • Name of account holder • Utilities account number • Date the account was submitted to Agency for collection • Outstanding balance on each account • Amount collected in current month for each account • Amount collected by Agency to date for each account • Amount paid to Agency for each account collected upon Additional reports may be requested by the City. Monthly remittance detail shall be submitted via secure transmission method and in a format compatible with the City’s data processing systems. The City is to receive full payment of all fines, late fees and court costs that are imposed by the City. All fines will be collected by the City. The City will provide a monthly accounting of payments made and provide payment to the collection agency within 30 days. C. Minimum Mandatory Qualifications of Offeror Respondents shall meet all of the following minimum requirements: 1. Contractor must be licensed to conduct business as a professional collections agency in the State of Colorado. Provide copies of the Agency’s license. 2. Contractor must have five (5) years of debt collection experience. RFP 8488 Collection Agency Services Page 6 of 24 D. Schedule Utilities has established the target schedule shown below for the RFP. Utilities reserves the right to amend the target schedule at any time. • RFP issuance: March 29, 2017 • Question deadline: April 10, 2017 • Proposal due date: April 24, 2017 • Interviews (tentative): May 23 & 24, 2017 • Contract start date: June 15, 2017 E. Interviews In addition to submitting a written proposal, finalists may be interviewed by the City of Fort Collins and asked to give an oral presentation about their company and approach to the project. F. Expenses Agencies are to provide a list of fees for reimbursable expenses. G. Use of Subcontractors/Partners No subcontracting of accounts by the Agency will be permitted. H. Financial Information (Confidential) Firms are to submit the following information in a separate file for review by the Director of Purchasing. Documents listed here will be kept confidential. Provide a recent financial statement (audited if possible) including balance sheet and income statement showing: 1. Current assets 2. Other assets 3. Current liabilities 4. Other liabilities 5. Fixed assets and equipment 6. Banking Reference (Provide name, address and phone number) I. Formatting Proposal Limit the total length of your proposal to a maximum of thirty-five (35) 8 ½ x 11” pages (excluding cover pages, table of contents, dividers, 11” x 17” fee spreadsheet (if used), sustainability response and proposal acknowledgement form). Font shall be a minimum of 10 Arial and margins are limited to no less than .75 for sides and top/bottom. Fee spreadsheet must be a minimum of 10 Arial in printed format. The Director of Purchasing may reject proposals received that are longer than 35 pages in length. III. PROPOSAL SUBMITTAL For this section, Agencies are required to provide detailed written responses to the following items in the order outlined below. The responses shall be considered technical offers of what agencies propose to provide and shall be incorporated in the contract award as deemed RFP 8488 Collection Agency Services Page 7 of 24 appropriate. A proposal that does not include all of the information required may be deemed incomplete and may be subject to rejection. Responses must include all of the items in the order listed below. It is suggested that the Consultants include each of the City’s questions with their response immediately following the question. The City of Fort Collins shall not reimburse any agency for costs incurred in the preparation and presentation of their proposal. A. Executive Summary The Executive Summary should highlight the services offered and qualifications, including how the proposal intends to meet the objectives of the City, as outlined, as well as any unique aspects or benefits provided by your firm. Include a statement related to your firm's complete understanding and compliance with all general and minimum requirements. Indicate your availability to participate in the interviews/demonstrations on the proposed dates as stated in the Schedule section. Exceptions to the City Agreement shall be documented. B. Company Information 1. Describe the Company’s business and background, including the number of years in the business and any prior experience with similar contracts/agreements 2. Details about ownership 3. Size of the firm 4. Location(s) of offices, identify which will be the primary for our account 5. Primary contact information for the company including contact name(s) and title(s), mailing address(s), phone number(s), and email address(s) 6. Complete Exhibit A, Proposal Acknowledgement C. Minimum Mandatory Qualifications Provide a brief description and supporting documentation of how your Agency meets the following: 1. Contractor must be licensed to conduct business as a professional collection agency in the State of Colorado. Provide copies of the Agency’s and/or individual licenses. 2. Contractor must have five (5) years of debt collection experience. Provide detail supporting five years’ experience. D. Scope of Proposal This portion of the proposals should include: 1. The narrative should include any options that may be beneficial for Utilities to consider and any qualifications that set Agency apart from competitors. 2. An explanation, in detail of: a. firm’s ''best-effort" collection process and how collections are managed, b. timelines for collections c. methods used d. system(s) that are used to transfer data and security thereof 3. An explanation of monthly and yearly statements of total cases and percentage collected for the last twenty-four (24) months. 4. A description of the methods of interaction between the collection agency and the delinquent debtor(s) and an explanation of your philosophy on maintaining a good customer relationship. RFP 8488 Collection Agency Services Page 8 of 24 5. Explain why these methods will result in the highest return while complying with all applicable federal, state and local laws and regulations. Specify approaches for repayment schedules, loan consolidation, rehabilitation and referral for wage garnishment. 6. A description, with examples, of the types of reports or other tools that would be available to the City to monitor or administer the collections process. Provide a description of the ability to comply with reporting capabilities. 7. Examples of documentation that would potentially be used during the collection process. 8. A sample of proposed remittance detail, including identification of the secure transmission method and format to be used to transmit the data to the City. 9. A description of the process that may be used if Utilities could pull accounts out of collections in certain situations such as customer activates new account, etc. 10. Written disclosure of any known potential conflicts of interest that may result during the course of performance of the services listed herein. 11. A summary of the partnership that you envision with the City. 12. Describe industry standards for submitting delinquent accounts to the appropriate national credit reporting agencies and the Agency’s written policy regarding the “accuracy and integrity” of the information they are furnishing to credit reporting agencies. 13. Describe security and confidentiality of account information as well as website security or other data repositories. 14. Include a summary of Agency's disaster recovery plan including data integrity and data breach procedures. 15. Provide a detailed description on how the process when accounts go into bankruptcy. 16. Describe the process City may use to handle disputes between borrowers, City and Agency. E. Assigned Personnel/Firm Capability The Consultant should provide the following information: 1. Submit detailed information related to the experience and qualifications of the personnel proposed by the Agency to perform the requirements specified herein. Identify the contact person with primary responsibility for this Agreement. 2. Describe the availability of project personnel to participate in this project in the context of the agency’s other commitments. 3. Provide a list of similar projects completed in the last five (5) years by the key members of the proposed team. 4. References (current contact name, current telephone number and email address) from at least three similar projects with similar requirements that have been completed within the past five (5) years and that have involved the staff proposed to work on this project. Provide a description of the work performed. 5. A list of any and all legal disputes, mediations, arbitrations, and/or lawsuits in which you or your firm has been involved in the last five (5) years, include details related to the current status and/or outcome. 6. Describe the methods and timeline of communication your firm will use with the City’s Project Manager and other parties. 7. Present an organizational chart depicting Contractor's ability to work accounts and handle the reporting requirements outlined in the RFP. The chart should include pertinent managers, managers’ years of experience in collections, and number of staff that will be collecting on the portfolio. Include the relationship of the project leader to RFP 8488 Collection Agency Services Page 9 of 24 management and to support personnel. 6. For your firm, provide the number of collectors and supervisors of collectors that are experts in the federal and state statutes, regulations and guidelines governing the collection industry. 7. Describe the means by which collectors are kept abreast of developments in the collection industry for which this RFP is submitted and describe what formal training is offered. 8. Contractor should demonstrate the ability to reconcile AR account inventory and loan account inventory between City and Contractor by submitting detailed procedures for reconciliation. 10. Provide evidence of ability to bond and insure as required. F. Sustainability/TBL Methodology In no more than two (2) pages please describe how your organization strives to be Sustainable in the use of materials, equipment, vehicles, fuel, recycling, office practices, etc.. Address how your firm incorporates Triple Bottom Line (TBL) into the workplace, see below in Section IV: Review and Assessment for additional information. G. Cost and Work Hours In your response to this proposal, please provide the following: 1. Details of the proposed collection fee structure for services. Proposals shall include a collection fee percentage as well as a collection fee percentage when litigation is required. Details related to all reimbursable expenses should also be included. 2. Provide information on cost for litigation services and what those services entail. 3. Sample invoice showing detailed costs and how they are calculated. 4. Schedule of Rates: Provide a schedule of billing rates by category of employee and job title to be used during the term of the Agreement. This fee schedule will be firm for at least one (1) year from the date of the Agreement. Include a per meeting rate in the event additional meetings are needed. 5. All direct costs (i.e., printing, postage, etc.) specifically attributed to the project and not included in the billing rates must be identified. H. Additional Information Provide any information that distinguishes Agency from its competition and any additional information applicable to this RFP that might be valuable in assessing Agency’s proposal. Explain any concerns Agency may have in maintaining objectivity in recommending the best solution for Utilities. All potential conflicts of interest must be disclosed. IV. REVIEW AND ASSESSMENT Professional firms will be evaluated on the following criteria. These criteria will be the basis for review and assessment of the written proposals and optional interview session. At the discretion of the City, interviews of the top rated firms may be conducted. 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 RFP 8488 Collection Agency Services Page 10 of 24 2.0 Scope of Proposal Does the proposal address all elements of the RFP? Does the proposal show an understanding of the objectives, methodology to be used and results/outcomes required? Are there any exceptions to the Scope of Work or agreement? 3.0 Assigned Personnel and Firm Capability Do the persons who will be working on the project have the necessary skills and qualifications? Are sufficient people of the requisite skills and qualifications assigned to the project? Does the firm have the resources, financial strength, capacity and support capabilities required? Are qualified personnel available to assist in the project? 1.0 Sustainability/TBL Methodology Does the firm demonstrate a commitment to Sustainability and incorporate Triple Bottom Line methodology in both their Scope of Work for the project, and their day-to-day business operating processes and procedures? 2.0 Cost and Work Hours Does the proposal included a cost break-down for each cost element as applicable and are the line-item costs competitive? Do the proposed cost compare favorably with the Project Manager's estimate? Definitions Sustainable Purchasing is a process for selecting products or services that have a lesser or reduced negative effect on human health and the environment when compared with competing products or services that serve the same purpose. This process is also known as “Environmentally Preferable Purchasing” (EPP), or “Green Purchasing”. The Triple Bottom Line (TBL) is an accounting framework that incorporates three dimensions of performance: economic, or financial; environmental, and social. The generally accepted definition of Andrew Savitz for TBL is that it “captures the essence of sustainability by measuring the impact of an organization’s activities on the world…including both its profitability and shareholders values and its social, human, and environmental capital.” REFERENCE EVALUATION (TOP RATED FIRM) The Project Manager will check references using the following criteria. The evaluation rankings will be labeled Satisfactory/Unsatisfactory. QUALIFICATION STANDARD Overall Performance Would you hire this Professional again? Did they show the skills required by this project? Timetable Was the original Scope of Work completed within the specified time? Were interim deadlines met in a timely manner? RFP 8488 Collection Agency Services Page 11 of 24 Completeness Was the Professional responsive to client needs; did the Professional anticipate problems? Were problems solved quickly and effectively? Budget Was the original Scope of Work completed within the project budget? Job Knowledge a) If a study, did it meet the Scope of Work? b) If Professional administered a construction contract, was the project functional upon completion and did it operate properly? Were problems corrected quickly and effectively? RFP 8488 Collection Agency Services Page 12 of 24 EXHIBIT A PROPOSAL ACKNOWLEDGEMENT Consultant hereby acknowledges receipt of the City of Fort Collins Utilities’ Request for Proposal and acknowledges that it has read and agrees to be fully bound by all of the terms, conditions and other provisions set forth in the RFP. Additionally, the Consultant hereby makes the following representations to Utilities: a. All of the statements and representations made in this proposal are true to the best of the Consultant’s knowledge and belief. b. The Consultant has obtained all necessary authorizations and approvals that will enable the Consultant to commit to the terms provided in this proposal. c. This proposal is a firm and binding offer, for a period of 180 days from the date hereof. d. I further agree that the method of award is acceptable to my company. e. I also agree to complete the proposed Agreements with the City of Fort Collins within 30 days of notice of award. f. If contract is not completed and signed within 30 days, City reserves the right to cancel and award to the next highest rated firm. g. I acknowledge receipt of addenda. Consultant Firm Name: Physical Address: Remit to Address: Phone: Authorized Agent of Firm Name: Signature of Authorized Agent: Primary Contact for Project: Title: Email Address: Phone: Cell Phone: RFP 8488 Collection Agency Services Page 13 of 24 EXHIBIT B SAMPLE PROFESSIONAL SERVICES AGREEMENT 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 the "Professional". WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of ( ) pages, and incorporated herein by this reference. Irrespective of references in Exhibit A to certain named third parties, the Professional shall be solely responsible for performance of all duties hereunder. 2. The Work Schedule. [Optional] The services to be performed pursuant to this Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B", consisting of ( ) pages, and incorporated herein by this reference. 3. Contract Period. This Agreement shall commence , 200 , and shall continue in full force and effect until , 200 , 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. Renewals and pricing changes shall be negotiated by and agreed to by both parties. Written notice of renewal shall be provided to the Professional and mailed no later than thirty (30) days prior to contract end. 4. Early Termination by City. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional: City: Copy to: Attn: City of Fort Collins Attn: PO Box 580 Fort Collins, CO 80522 City of Fort Collins Attn: Purchasing Dept. PO Box 580 Fort Collins, CO 80522 In the event of any such early termination by the City, the Professional shall be paid for services rendered prior to the date of termination, subject only to the satisfactory performance of the Professional's obligations under this Agreement. Such payment shall RFP 8488 Collection Agency Services Page 14 of 24 be the Professional's sole right and remedy for such termination. 5. Design, Project Indemnity and Insurance Responsibility. The Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to designs, plans, reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless the City, its officers and employees in accordance with Colorado law, from all damages whatsoever claimed by third parties against the City; and for the City's costs and reasonable attorney’s fees, arising directly or indirectly out of the Professional's negligent performance of any of the services furnished under this Agreement. The Professional shall maintain insurance in accordance with Exhibit , consisting of one (1) page, attached hereto and incorporated herein. 6. Compensation. [Use this paragraph or Option 1 below.] In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay the Professional a fixed fee in the amount of ($ ) plus reimbursable direct costs. All such fees and costs shall not exceed ($ ) in accordance with Exhibit “ ”, consisting of ( ) page , attached hereto and incorporated herein. Monthly partial payments based upon the Professional's billings and itemized statements are permissible. The amounts of all such partial payments shall be based upon the Professional's City-verified progress in completing the services to be performed pursuant hereto and upon the City's approval of the Professional's actual reimbursable expenses. Final payment shall be made following acceptance of the Work by the City. Upon final payment, all designs, plans, reports, specifications, drawings, and other services rendered by the Professional shall become the sole property of the City. 7. Compensation. [Option 1] In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay the Professional on a time and reimbursable direct cost basis in accordance with Exhibit “ ”, consisting of ( ) page , attached hereto and incorporated herein, with maximum compensation (for both Professional's time and reimbursable direct costs) not to exceed ($ ). Monthly partial payments based upon the Professional's billings and itemized statements of reimbursable direct costs are permissible. The amounts of all such partial payments shall be based upon the Professional's City-verified progress in completing the services to be performed pursuant hereto and upon the City's approval of the Professional's reimbursable direct costs. Final payment shall be made following acceptance of the Work by the City. Upon final payment, all designs, plans, reports, specifications, drawings and other services rendered by the Professional shall become the sole property of the City. 8. License. Upon execution of this Agreement, the Professional grants to the City an irrevocable license to use any and all sketches, drawings, specifications, designs, blueprints, data files, calculations, studies, analysis, renderings, models and other Work Order deliverables (the “Instruments of Service”), in any form whatsoever and in any RFP 8488 Collection Agency Services Page 15 of 24 medium expressed, for purposes of constructing, using, maintaining, altering and adding to the project, provided that the City substantially performs its obligations under the Agreement. The license granted hereunder permits the City and third parties reasonably authorized by the City to reproduce applicable portions of the Instruments of Service for use in performing services or construction for the project. In addition, the license granted hereunder shall permit the City and third parties reasonably authorized by the City to reproduce and utilize the Instruments of Service for similar projects, provided however, in such event the Professional shall not be held responsible for the design to the extent the City deviates from the Instruments of Service. This license shall survive termination of the Agreement by default or otherwise. 9. City Representative. The City will designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the City Representative. 10. Project Drawings. Upon request and before final payment, the Professional shall provide the City with reproducible drawings of the project containing accurate information on the project as constructed. Drawings shall be of archival quality, prepared on stable mylar base material using a non-fading process to provide for long storage and high quality reproduction. "CD" disc of the as-built drawings shall also be submitted to the owner in and AutoCAD version no older then the established City standard. The Professional acknowledges the City is a governmental entity subject to the Colorado Open Records Act, C.R.S. §§ 24-72-200.1, et seq. (the “CORA”), and documents in the City’s possession may be considered public records subject to disclosure under the CORA. 11. Monthly Report. Commencing thirty (30) days after the date of execution of this Agreement and every thirty (30) days thereafter, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Scope of Services, Work Schedule, and other material information. Failure to provide any required monthly report may, at the option of the City, suspend the processing of any partial payment request. 12. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 13. Subcontractors. The Professional may not subcontract any of the Work set forth in the Exhibit A, Statement of Work without the prior written consent of the city, which shall not be unreasonably withheld. If any of the Work is subcontracted hereunder (with the consent of the City), then the following provisions shall apply: (a) the subcontractor must be a reputable, qualified firm with an established record of successful performance in its RFP 8488 Collection Agency Services Page 16 of 24 respective trade performing identical or substantially similar work, (b) the subcontractor will be required to comply with all applicable terms of this Agreement, (c) the subcontract will not create any contractual relationship between any such subcontractor and the City, nor will it obligate the City to pay or see to the payment of any subcontractor, and (d) the Work of the subcontractor will be subject to inspection by the City to the same extent as the Work of the Professional. The Professional shall require all subcontractors performing Work hereunder to maintain insurance coverage naming the City as an additional insured under this Agreement of the type and with the limits specified within Exhibit “C”, consisting of one (1) page attached hereto and incorporated herein by this reference. The Professional shall maintain a copy of each subcontract’s certificate evidencing the required insurance. Upon request, the Professional shall promptly provide the City with a copy of such certificate(s). 14. Personal Services. It is understood that the City enters into the Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Professional shall neither assign any responsibilities nor delegate any duties arising under the Agreement without the prior written consent of the City. 15. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for the quality or technical accuracy of the Work. The City's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement. 16. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default. 17. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non- defaulting party commences 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 attorney fees and costs incurred because of the default. 18. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. RFP 8488 Collection Agency Services Page 17 of 24 19. Law/Severability. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. 20. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101, C.R.S., et. seq., the Professional represents and agrees that: a. As of the date of this Agreement: 1. The Professional does not knowingly employ or contract with an illegal alien who will perform work under this Agreement; and 2. The Professional will participate in either the e-Verify 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 “e-Verify Program”) or the Department Program (the “Department Program”), an employment verification program established pursuant to Section 8-17.5-102(5)(c) C.R.S. in order to confirm the employment eligibility of all newly hired employees to perform work under this Agreement. b. The Professional shall not knowingly employ or contract with an illegal alien to perform work under this Agreement or knowingly enter into a contract with a subcontractor that knowingly employs or contracts with an illegal alien to perform work under this Agreement. c. The Professional is prohibited from using the e-Verify Program or Department Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. d. If the Professional obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, the Professional shall: 1. Notify such subcontractor and the City within three days that the Professional 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 the Professional 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. e. The Professional 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 RFP 8488 Collection Agency Services Page 18 of 24 authority established in Subsection 8-17.5-102 (5), C.R.S. f. If the Professional 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, the Professional shall be liable for actual and consequential damages to the City arising out of the Professional’s violation of Subsection 8-17.5-102, C.R.S. g. The City will notify the Office of the Secretary of State if the Professional violates this provision of this Agreement and the City terminates the Agreement for such breach. 21. Red Flags Rules. Service Provider must implement reasonable policies and procedures to detect, prevent and mitigate the risk of identity theft in compliance with the Identity Theft Red Flags Rules found at 16 Code of Federal Regulations part 681. Further, Service Provider must take appropriate steps to mitigate identity theft if it occurs with one or more of the City’s covered accounts and must as expeditiously as possible notify the City in writing of significant breeches of security or Red Flags to the Utilities or the Privacy Committee. 22. Special Provisions. Special provisions or conditions relating to the services to be performed pursuant to this Agreement are set forth in Exhibit " " - Confidentiality, consisting of one (1) pages, attached hereto and incorporated herein by this reference. RFP 8488 Collection Agency Services Page 19 of 24 THE CITY OF FORT COLLINS, COLORADO By: Gerry Paul Purchasing Director DATE: ATTEST: APPROVED AS TO FORM: PROFESSIONAL'S NAME By: Printed: Title: CORPORATE PRESIDENT OR VICE PRESIDENT Date: RFP 8488 Collection Agency Services Page 20 of 24 EXHIBIT INSURANCE REQUIREMENTS 1. The Professional will provide, from insurance companies acceptable to the City, the insurance coverage designated hereinafter and pay all costs. Before commencing Work under this bid, the Professional shall furnish the City with certificates of insurance showing the type, amount, class of operations covered, effective dates and date of expiration of policies, and containing substantially the following statement: “The insurance evidenced by this Certificate will not reduce coverage or limits and will not be cancelled, except after thirty (30) days written notice has been received by the City of Fort Collins.” In case of the breach of any provision of the Insurance Requirements, the City, at its option, may take out and maintain, at the expense of the Professional, such insurance as the City may deem proper and may deduct the cost of such insurance from any monies which may be due or become due the Professional under this Agreement. The City, its officers, agents and employees shall be named as additional insureds on the Professional 's general liability and automobile liability insurance policies for any claims arising out of Work performed under this Agreement. 2. Insurance coverages shall be as follows: A. Workers' Compensation & Employer's Liability. The Professional shall maintain during the life of this Agreement for all of the Professional's employees engaged in Work performed under this agreement: 1. Workers' Compensation insurance with statutory limits as required by Colorado law. 2. Employer's Liability insurance with limits of $100,000 per accident, $500,000 disease aggregate, and $100,000 disease each employee. B. Commercial General & Vehicle Liability. The Professional shall maintain during the life of this Agreement such commercial general liability and automobile liability insurance as will provide coverage for damage claims of personal injury, including accidental death, as well as for claims for property damage, which may arise directly or indirectly from the performance of Work under this Agreement. Coverage for property damage shall be on a "broad form" basis. The amount of insurance for each coverage, Commercial General and Vehicle, shall not be less than $1,000,000 combined single limits for bodily injury and property damage. In the event any Work is performed by a subcontractor, the Professional shall be responsible for any liability directly or indirectly arising out of the Work performed under this Agreement by a subcontractor, which liability is not covered by the subcontractor's insurance. C. Errors & Omissions. The Professional shall maintain errors and omissions insurance in the amount of $1,000,000. RFP 8488 Collection Agency Services Page 21 of 24 EXHIBIT CONFIDENTIALITY IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the “City”) pursuant to this Agreement (the “Agreement”), the Professional hereby acknowledges that it has been informed that the City has established policies and procedures with regard to the handling of confidential information and other sensitive materials. In consideration of access to certain information, data and material (hereinafter individually and collectively, regardless of nature, referred to as “information”) that are the property of and/or relate to the City or its employees, customers or suppliers, which access is related to the performance of services that the Professional has agreed to perform, the Professional hereby acknowledges and agrees as follows: That information that has or will come into its possession or knowledge in connection with the performance of services for the City may be confidential and/or proprietary. The Professional agrees to treat as confidential (a) all information that is owned by the City, or that relates to the business of the City, or that is used by the City in carrying on business, and (b) all information that is proprietary to a third party (including but not limited to customers and suppliers of the City). The Professional shall not disclose any such information to any person not having a legitimate need-to-know for purposes authorized by the City. Further, the Professional shall not use such information to obtain any economic or other benefit for itself, or any third party, except as specifically authorized by the City. The foregoing to the contrary notwithstanding, the Professional understands that it shall have no obligation under this Agreement with respect to information and material that (a) becomes generally known to the public by publication or some means other than a breach of duty of this Agreement, or (b) is required by law, regulation or court order to be disclosed, provided that the request for such disclosure is proper and the disclosure does not exceed that which is required. In the event of any disclosure under (b) above, the Professional shall furnish a copy of this Agreement to anyone to whom it is required to make such disclosure and shall promptly advise the City in writing of each such disclosure. In the event that the Professional ceases to perform services for the City, or the City so requests for any reason, the Professional shall promptly return to the City any and all information described hereinabove, including all copies, notes and/or summaries (handwritten or mechanically produced) thereof, in its possession or control or as to which it otherwise has access. The Professional understands and agrees that the City’s remedies at law for a breach of the Professional’s obligations under this Confidentiality Agreement may be inadequate and that the City shall, in the event of any such breach, be entitled to seek equitable relief (including without limitation preliminary and permanent injunctive relief and specific performance) in addition to all other remedies provided hereunder or available at law. RFP 8488 Collection Agency Services Page 22 of 24 EXHIBIT C NON-DISCLOSURE AGREEMENT THIS NON-DISCLOSURE AGREEMENT (“Agreement”) made and entered into by and between the City of Fort Collins, a municipal corporation (“City”) and (“Professional”) (collectively, the “Parties”). WITNESSETH WHEREAS, the Parties desire to assure the confidential and/or proprietary status of the information which may be disclosed to each other in connection with their discussions relating to the RFP/Project/Scope of Work . NOW, THEREFORE, in consideration of terms and covenants contained herein, the Parties agree as follows: 1. Definitions. For purposes of this Agreement, the party who owns the confidential information and is disclosing same shall be referenced as the “Disclosing Party.” The party receiving the Disclosing Party’s confidential information shall be referenced as the “Receiving Party.” 2. Confidential Information. Confidential Information controlled by this Agreement refers to information which is not public and/or is proprietary and includes by way of example, but without limitation, City customer information, utility data, service billing records, customer equipment information, location information, network security system, business plans, formulae, processes, intellectual property, trade secrets, designs, photographs, plans, drawings, schematics, methods, specifications, samples, reports, mechanical and electronic design drawings, customer lists, financial information, studies, findings, inventions, and ideas. To the extent practical, Confidential Information shall be marked “Confidential” or “Proprietary.” Nevertheless, Professional shall treat as Confidential Information all customer identifiable information in any form, whether or not bearing a mark of confidentiality or otherwise requested by the City, including but not limited to account, address, billing, consumption, contact and other customer data. In the case of disclosure in non- documentary form of non-customer identifiable information, made orally or by visual inspection, the Disclosing Party shall have the right, or, if requested by the Receiving Party, the obligation to confirm in writing the fact and general nature of each disclosure within a reasonable time after it is made in order that it is treated as Confidential Information. Any information disclosed to the other party prior to the execution of this Agreement and related to the services for which Professional has been engaged shall be considered in the same manner and be subject to the same treatment as the information disclosed after the execution of this Agreement with regard to protecting it as Confidential Information. 3. Use of Confidential Information. Receiving Party hereby agrees that it shall use the Confidential Information solely for the purpose of performing its obligations under this Agreement and not in any way detrimental to Disclosing Party. Receiving Party agrees to use the same degree of care Receiving Party uses with respect to its own proprietary or confidential information, which in any event shall result in a reasonable standard of care to prevent unauthorized use or disclosure of the Confidential Information. Except as otherwise provided herein, Receiving Party shall keep confidential and not disclose the Confidential Information. The City and Professional shall RFP 8488 Collection Agency Services Page 23 of 24 cause each of their directors, officers, employees, agents, representatives, and subcontractors to become familiar with, and abide by, the terms of this section, which shall survive this Agreement as an on-going obligation of the Parties. The Professional shall not use such information to obtain any economic or other benefit for itself, or any third party. 4. Exclusions from Definition. The term “Confidential Information” as used herein does not include any data or information which is already known to the Receiving Party or which before being divulged by the Disclosing Party (1) was generally known to the public through no wrongful act of the Receiving Party; (2) has been rightfully received by the Receiving Party from a third party without restriction on disclosure and without, to the knowledge of the Receiving Party, a breach of an obligation of confidentiality; (3) has been approved for release by a written authorization by the other party hereto; or (4) has been disclosed pursuant to a requirement of a governmental agency or by operation of law. 5. Required Disclosure. If the Receiving Party is required (by interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process, or by federal, state, or local law, including without limitation, the Colorado Open Records Act) to disclose any Confidential Information, the Parties agree the Receiving Party will provide the Disclosing Party with prompt notice of such request, so the Disclosing Party may seek an appropriate protective order or waive the Receiving Party’s compliance with this Agreement. The Receiving Party shall furnish a copy of this Agreement with any disclosure. 6. Notwithstanding paragraph 5, Professional shall not disclose any such Confidential Information to any person, directly or indirectly, nor use it in any way, except as required or authorized in writing by the City. 7. Confidential Information is not to be stored on any local workstation, laptop, or media such as CD/DVD, USB drives, external hard drives or other similar portable devices unless the Professional can ensure security for the Confidential Information so stored. Work stations or laptops to be used in the Work will be required to have personal firewalls on each, as well as have current, active anti-virus definitions. 8. The Agreement not to disclose Confidential Information as set forth in this document shall apply during the term of the project and at any time thereafter unless specifically authorized by the City in writing. 9. If Professional breaches this Agreement, in the City’s sole discretion, the City may immediately terminate this Agreement and withdraw Professional’s right to access Confidential Information. 10. Notwithstanding any other provision of this Agreement, all material, i.e., various physical forms of media in which Confidential Information is contained, including but not limited to writings, drawings, tapes, diskettes, prototypes or products, shall remain the sole property of the Disclosing Party and, upon request, shall be promptly returned, together with all copies thereof to the Disclosing Party. Upon such return of physical records, all digital and electronic data shall also be deleted in a non-restorable way by which it is no longer RFP 8488 Collection Agency Services Page 24 of 24 available to the Receiving Party. Written verification of the deletion (including date of deletion) is to be provided to the Disclosing Party within ten (10) days after completion of engagement, whether it be via termination, completion or otherwise. 11. Professional acknowledges that the City may, based upon the representations made in this Agreement, disclose security information that is critical to the continued success of the City’s business. Accordingly, Professional agrees that the City does not have an adequate remedy at law for breach of this Agreement and therefore, the City shall be entitled, as a non- exclusive remedy, and in addition to an action for damages, to seek and obtain an injunction or decree of specific performance or any other remedy, from a court of competent jurisdiction to enjoin or remedy any violation of this Agreement. 12. No act of omission or commission of either the City or Professional, including without limitation, any failure to exercise any right, remedy, or recourse, shall be deemed to be a waiver, release, or modification of the same. Such a waiver, release, or modification is to be effected only through a written modification to this Agreement. 13. Neither party shall assign any of its rights, privileges or obligations under this Agreement to any third party without prior written consent of the other party. 14. This Agreement is to be construed in accordance with the laws of the State of Colorado. Venue and jurisdiction for any cause of action or claim asserted by either party hereto shall be in the District Court of Larimer County, Colorado.