R-88-1178 - 10/13/1988WHEREAS, the City Council desires to collect certain delinquent
receivables due the City of Round Rock, and
WHEREAS, Merchants & Professional Credit Bureau, Inc., has
offered to collect these delinquent receivables in accordance with
the proposal attached as Exhibit "A" and made a part herein, and
WHEREAS, the City Council desires to enter into a contract with
Merchants & Professional Credit Bureau, Inc., Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City, a contract with Merchants & Professional Credit
Bureau, Inc., to collect certain delinquent receivables due the City
of Round Rock.
RESOLVED this L5 day of October, 1988.
ATTEST:
L 41i/
LAND, City Secretary
C3 2 RESMERCH
RESOLUTION NO.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
DATE: October 11, 1988
SUBJECT: Council Agenda, October 13, 1988
ITEM: 11I. Consider a resolution authorizing the Mayor to
enter into a contract with Merchants Professional
Credit Bureau for the collection of delinquent
accounts.
STAFF RESOURCE PERSON: Vicki Oswalt
STAFF RECOMMENDATION: The City would like to contract with the firm
of Merchants and Professional Credit Bureau, Inc., for the collection
of approximately 1/2 of our delinquent accounts. This represents
about 1200 accounts with a total receivable of approximately
$85,000. Merchants & Professional is employed by the San Marcos
Telephone Company and many medical related companies. Their fee
schedule is as follows:
Accounts Listed:
120 days or less 35%
120 days to 180 day 40%
180 days to 1 year 45%
1 year or more 50%
Incorrect or no address 50%
CONTRACT
Merchants & Professional Credit Bureau, Inc., and its collection
subsidiaries (hereinafter referred to as "Agency "), agree to render
collection services to City of Round Rock, Texas (hereinafter
referred to as "Client ") on accounts forwarded to Agency by Client.
Each account forwarded by Client shall be deemed transferred, and set
over to Agency for collection subject to the following terms,
conditions and provisions:
(1) All collection efforts, including but not limited to,
telephone calls, personal contacts, and correspondence,
shall be conducted in Agency's name, and not in the name of
Client. All suit actions by Agency must be approved in
writing by Client.
(2) All collection efforts shall be entirely peaceful and shall
not in any manner cause a breach of the peace.
Client will keep Agency informed of any payments received by
Client on accounts transferred to Agency so that such
accounts may be properly credited.
(4) Each month, Agency shall furnish Client an itemized
statement showing for such period the amount of each payment
received, the date of payment, and the party making the
payment.
(3)
Agency shall promptly remit to Client the amount of all
monies collected during each preceding thirty (30) day
period less applicable collection fees unless other
arrangements have been made in Section 9.
(6) Agency hereby promises and agrees to indemnify Client, its
successors and assigns, and to hold Client harmless from and
against all damage, cost, loss, and expense including, but
not limited to any attorney fees, and witness litigation
expense of every nature that Client may suffer, incur, or
become bound for by reason of any actions, suits,
proceedings, claims or demands made by Agency or on Agency's
behalf or at Agency's direction, except with respect to any
such damage, costs, loss, or other expense caused by failure
of Client to furnish pertinent information in the matter of
herein guaranteed by the Client. Client, in consideration of
the promises of Agency, herein contained, guarantees that
the information furnished Agency regarding the identity of
the debtor, the balance of the account and the payments and
credits due Client will be accurately taken from Client's
books and records. Client hereby promises and agrees to
indemnify Agency for all damages as a result of the actions
of failure to act of Client, its employees, officers and
agents.
(5)
G7CONTRACT
The Client may recall from MPB an account or a group of
accounts previously referred to MPB for collection when in
the opinion of the Client the best interest of the Client
will be served by recalling said accounts. On recalled
accounts, MPB will require thirty day written notice. When
account debtor of recalled account has entered into an
agreement to pay or has already made partial payment to
Client or MPB, MPB shall remain entitled to collection
commission of each payment as it is made.
(8) Upon placement of accounts for collection to Agency Client
agrees that:
A. Commissions on such accounts are earned whether payment
is made direct to Client or Agency.
B. Client will report all payments made directly to Client
on a timely basis.
C. Full commissions are due and payable on accounts
withdrawn from Agency while in the process of immediate
negotiation or adjustment.
(7)
(9) Commission Schedule:
Date is determined by the date of last payment or charge
made by debtor. Rate applies to all payments after listing.
One -half rate on payments made prior to lising.
Accounts listed:
120 days or less 35%
120 days to 180 days 40%
180 days to 1 year 45%
1 year or more 50%
Incorrect or no address 50%
This agreement supersedes and replaces any prior agreements,
understandings, or arrangements, whether written or verbal, and may
be modified, amended, or termined only by written agreement.
AGENCY:
MERCHANTS & PROFESSIONAL CREDIT BUREAU, INC.
Date: October 27, 1988
2.
ATTEST:
nne Land, City Secretary
CLIENT:
City of Round Rock, Texas
By:
3 .
Mike Robinson, Mayor