CM-2023-073 - 4/7/2023CITY OF ROUND ROCK
PROFESSIONAL SERVICES AGREEMENT
FOR COLLECTION OF
DELINQUENT ACCOUNTS RECEIVABLE WITH
NATIONAL COLLECTIONS, LLC
STATE OF TEXAS §
CITY OF ROUND ROCK §
COUNTY OF WILLIAMSON §
COUNTY OF TRAVIS §
KNOW ALL BY THESE PRESENTS:
THIS AGREEMENT (hereinafter re erred�to as the "Agreement") is made and entered
into on tlii. , _-day of the month of - , 2023 by and between the CITY OF
ROUND ROCK, TEXAS, a Texas home-rufmunicipality, whose offices are located at 221
East Main Street, Round Rock, Texas 78664-5299 (hereinafter referred to as the "City"), and
NATIONAL COLLECTIONS, LLC, whose offices are located at 17998 Chesterfield Airport
Road, Suite 215, Chesterfield, Missouri 63005 (hereinafter referred to as "Consultant").
ARTICLE 1.
The City agrees to retain and does hereby retain Consultant to provide legal services
related to the collection of delinquent accounts receivable, including but not limited to, utility
billing fines and fees (hereinafter referred to as "Utility Fines and Fees").
ARTICLE 11.
For the purpose of this Agreement, Utility Fines and Fees shall be considered delinquent
and referred to Consultant when not timely paid in accordance with any applicable contract,
ordinance or statute providing for the payment of the underlying debt.
At least once each month on a date or dates agreed upon by the parties, the City will
provide Consultant with copies of, or access to, the information and documentation necessary to
collect the Utility Fines and Fees that are subject to this Agreement. The City shall transmit the
information to Consultant by electronic transmission, magnetic medium or copies of physical
records.
ARTICLE III.
Consultant shall forward to the City copies of any correspondence regarding a disputed
debt received from a debtor and the request for the verification of the debt. The City will
provide to Consultant within ten (10) days of the receipt for the request for verification of the
debt, copies of all records which will verify the debt which in turn will be forwarded to the
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debtor by Consultant. All collection activity will be suspended on any disputed debt until the
appropriate verification of the debt is delivered to the debtor.
ARTICLE IV.
Upon consultation and agreement by both parties hereto, Consultant may institute civil
legal proceedings, including seeking writs of execution to collect Utility Fines and Fees. The
City shall pay in advance of the initiation of any writ of execution or collection lawsuit, any
filing fees charged by the Court or Clerk of the Court in which the writ of execution is to be
issued or the collection lawsuit is to be filed, including the costs for service of citation.
Consultant may also, after consultation and agreement by both parties, file proofs of claims in
the United States Bankruptcy Court on behalf of the City.
ARTICLE V.
Consultant shall forward all cashier checks or money order payments made payable to the
City and any correspondence from debtor directly to the City. Cashier checks or money order
payments made payable to Consultant will be deposited daily in the Consultant's Trust Account.
Consultant may also collect the amount due from the debtor by credit card or electronic draft
which is deposited directly into the Consultant's Trust Account. Consultant may set up payment
arrangements and accept partial payments on any Utility Fines and Fees. Consultant shall remit
to the City all payments in full received into the Consultant's Trust Account at least twice a
month along with an invoice detailing the account number, name of debtor, amount paid to
Consultant or the City, Consultant fee percentage and fees earned for each account.
ARTICLE VI.
Consultant shall indemnify and hold the City harmless from and against all liabilities,
losses and/or costs arising from claims for damages, or suits for losses or damages, including
reasonable costs and attorney's fees, which may arise as a result of Consultant's performance of
the services described in this Agreement. The indemnity provision of this Agreement shall have
no application to any claim or demand which results from the sole negligence or fault of the City,
its officers, agents, employees or contractors. Furthermore, in the event of joint andior shared
negligence or fault of the City and Consultant, responsibility and indemnity, if any, shall be
apportioned in accordance with Texas law and without waiving any defenses of either party. The
provisions of this Article are intended for the sole benefit of the parties hereto and are not
intended to create or grant any right, contractual or otherwise, to any other persons or entities.
ARTICLE VII.
For the collection of Utility Fines and Fees in which the data files are referred and
transmitted from the City to Consultant, the City agrees to pay Consultant as compensation for
services provided pursuant to this Agreement, a fee of thirty percent (300/0) of the amount of the
Utility Fines and Fees collected.
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All compensation shall become the property of Consultant at the time of payment. The
City shall pay to Consultant said compensation on a monthly basis by check.
ARTICLE VIII.
Consultant reserves the right to return to the City all accounts not collected within one (l )
year of referral by the City, or identified as being in bankruptcy. Upon return of these accounts,
neither party will have any obligation to the other party to this Agreement.
ARTICLE IX.
The effective date of the Agreement shall be the date upon which the binding signatures
of the parties to this Agreement are affixed. The term of this Agreement shall be for sixty (60)
months from the effective date.
ARTICLE X.
Either party may, for convenience and without cause, terminate this Agreement at any
time by giving the other party thirty (30) days written "Notice of Termination of Agreement."
In the event that the City terminates the Agreement, Consultant shall be entitled to
continue its collection activity on the Utility Fines and Fees accounts previously referred to
Consultant for a period of six (6) months from the date of receipt of the "Notice of Termination
of Agreement." Consultant shall receive compensation as set forth herein, on all amounts
collected during said six (6) month period. Upon expiration of the six (6) month period, all
Utility Fines and Fees accounts shall be returned to the City by Consultant.
ARTICLE XI.
The City recognizes and acknowledges that Consultant owns all right, title and interest in
certain proprietary software that Consultant may utilize in conjunction with performing the
services provided in this Agreement. The City agrees and hereby grants to Consultant the right
to use and incorporate any information provided by the City ("City's Information") to update the
databases in this proprietary software and, notwithstanding that City Information has been or
shall be used to update the databases in this proprietary software, further stipulates and agrees
that the City shall have no rights or ownership whatsoever in and to the software or the data
contained therein, except that the City shall be entitled to obtain a copy of such data that directly
relates to the City's accounts at any time.
ARTICLE XII.
For purposes of sending notice under the term of this Agreement, all notices from the
City shall be sent to Consultant by certified United States mail to the following address or
delivered by hand or courier, to the following address:
National Collections, LLC
17998 Chesterfield Airport Road
Suite 215
Chesterfield, Missouri 63005
City of Round Rock, Texas
Attention: City Manager
221 East Main Street
Round Rock, Texas 78664
and to:
City Attorney
Attention: Stephanie L. Sandre
309 East Main Street
Round Rock, TX 78864
ARTICLE XIII.
Arbitration. The City and Consultant hereby expressly agree that no claims or disputes
between the parties arising out of or relating to this Agreement or a breach thereof shall be
decided by any arbitration proceeding, including without limitation, any proceeding under the
Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute.
Entire Agreement. This Agreement contains the entire agreement between the parties hereto
and may only be modified in a written amendment, duly executed by the authorized representatives
for both parties.
Representation of Other Governmental Entities. The City acknowledges and consents to the
representation by Consultant of other governmental entities that may be seeking the payment of
fines and fees or other claims from the same person(s) as the City.
Jurisdiction and Venue. This Agreement is made and is to be interpreted under the laws of
the State of Texas. This Agreement shall be enforceable in Round Rock, Texas, and if legal action
is necessary by either party with respect to the enforcement of any or all of the terms or conditions
herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be
governed by and construed in accordance with the laws and court decisions of the State of Texas.
Compliance with Laws, Charters and Ordinances. Consultant, its agents and employees shall
use best efforts to comply with applicable federal and state laws, the Charter and Ordinances of the
City of Round Rock, as amended, and with all applicable rules and regulations promulgated by
local, state and national boards, bureaus and agencies. In accordance with Chapter 2271, Texas
Government Code, a governmental entity may not enter into a contract with a company for goods or
services unless the contract contains written verification from the company that it: (1) does not
boycott Israel; and (2) will not boycott Israel during the term of the contract. The signatory
executing this Agreement on behalf of Consultant verifies Consultant does not boycott Israel and
will not boycott Israel during the term of this Agreement.
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Severability. In the event that any provision(s) of this Agreement shall for any reason be held
invalid or unenforceable, the invalidity or unenforceability of that provision(s) shall not affect any
other provision(s) of this Agreement, and it shall be further construed as if the invalid or
unenforceable provision(s) had never been a part of this Agreement.
Multiple Originals. This Agreement may be executed in any number of counterparts, and
each such counterpart shall be deemed an original for all purposes.
IN WITNESS WHEREOF, City and Consultant have ex ted this �Vre
ement on the
dates indicated.
City of Round Rock, Texas
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Printed Na e: Loll 1
Title: 456�4.
Date Signed: - �—
Attes .
Meagan Spin k , Ci - Jerk
For City, Approved as to Form:
By:
tephanie �LSa�ndre, City Attorney
Natiodal Col
By
M
Title: 16
Date Signed:
loll
LLC
ROUND ROCK
TEXAS
City of Round Rock
Agenda Item Summary
Agenda Number:
Title: Consider executing a Professional Services Agreement with National Collections,
LLC for Utility Billing collection services.
Type: City Manager Item
Governing Body: City Manager Approval
Agenda Date: 4/7/2023
Dept Director: Susan Morgan, CFO
Cost:
Indexes:
Attachments: National Collections LLC
Department: Finance
Text of Legislative File CM-2023-073
Consider executing a Professional Services Agreement with National Collections, LLC for Utility Billing
collection services. This is a no -cost agreement for the City that is based off of a consultant fee. National
Collections retains 30% of any outstanding delinquent balance they collect on behalf of the City. MPB
Collections is the company that previously provided debt collection services for utility billing. MPB
Collections ceased operations last year and our City contract was terminated.
Ms. Bonnie Stamos is the Manager of Client Services at National Collections. Our Utility Billing team has
worked with her and her team and has been pleased with the services previously rendered.
The City's contract with National Collections will begin on the date of execution and shall remain in effect
for sixty (60) months.
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