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HomeMy WebLinkAboutAgreement with Gila Corp. for collection of delinquent accounts~, ~'~ .. AGREEMENT This Agreement is made and entered into this _L~ day of , 2009, by and between Gila Corporation, d/b/a Municipal Services Bureau, a Texas Corporation [hereinafter,"MSB"], and the City of Bozeman, Montana, a municipal corporation, [hereinafter, the "City"], who agree as follows: I. COLLECTION OF DELINQUENT ACCOUNTS A. Debtor Contact. MSB will mail notices, telephone or otherwise contact those individuals who. the City has identified to MSB as having outstanding and unpaid debts or similar items payable to the City (these individuals are referred to herein as the "Debtors") in order to attempt to notify Debtors of their obligation to the City. The purpose of the contact is to offer Debtors the opportunity to resolve their debts voluntarily, before the City contemplates further action. The City will provide the name and last known address of the Debtors, all information regarding the date(s) of the alleged debt(s), the date such debt was incurred, and the amount of any such debt(s). When appropriate, MSB will attempt to locate Debtors when the last known address is invalid. The information supplied to MSB by the City must be in a format acceptable to MSB and shall be provided not less frequently than monthly. B. Correct Information. MSB will rely completely on the City to provide correct information about the Debtors' bill and, specifically, about the dollar amount in question and the City will immediately update and correct any information it has provided to MSB. In particular, the City will immediately notify MSB of any payment or other satisfaction of judgment made directly to the City, or any other action affecting the amount or timing of monies owed by the Debtor to the City. C. Legal Action/Credit Bureaus. The City authorizes MSB to report delinquent accounts to the credit bureau(s) of MSB's choice. MSB makes no warranties or representations, expressed or implied, about the amount of funds that will be collected, and MSB shall have no liability for any amounts uncollected. The only liability of MSB will be to forward any funds collected to the City, subject to MSB retaining its commission amount. MSB in no event shall be required to bring any suit for the collection of any such uncollected amount. Should the City and MSB mutually agree that a suit is the proper course of action against a Debtor to effect collection, MSB would request written authorization from the City before proceeding. Revised: November 10, 2006 ..y ~ ~ ~~ D. Valid Debts. The City agrees that Debtor accounts placed with MSB for collection will be valid and legally enforceable debts, unless otherwise disclosed in writing by the City. II. COMMISSIONS ON ACCOUNTS COLLECTED A. Basic Commission Rate. For all Debtor accounts referred by the City to MSB for collection, a flat fee of $30 will be added to the total amount due. This amount, paid by the debtor, will represent MSB's fee. B. Notification of Collections. The City will immediately notify MSB of Debtor accounts referred to MSB for collection that have been paid or disputed by the Debtor directly to the City whenever that payment or dispute occurs. By the fifteenth of each month, MSB will provide detailed reporting to the City to identify all Debtor accounts known to be collected during the prior month and to remit monies collected on the City's behalf. The City authorizes MSB to endorse negotiable instruments made payable to the City and provided to MSB for payment of monies due and to deduct commissions due on those accounts paid directly to MSB from the amounts collected by MSB. If MSB is required to invoice the City for commissions due, the City agrees to review the invoice and forward payment to MSB within 30 days of receipt of the invoice. III. TERM AND TERMINATION. This Agreement will be in full force and effect until tenninated by either party in writing to the respective parties at the addresses set out in this section. The effective date of this contract shall be the later of the date indicated above or the date that actual (live) submissions are received by MSB. If the Agreement is terminated, any City accounts then held by MSB will be returned to tTie City 90 days from date of termination. Notices to MSB: Municipal Services Bureau 6505 Airport Blvd., Ste. 100 Austin, TX 78752 Attention: Laura Likon Notices to City: City of Bozeman PO Box 1230 Bozeman, MT 59771-1230 Attention; Laurae Clark Revised: November 10, 2006 ~ ~ ~: IV. OTHER PROVISIONS. A. Indemnification. (i) The City shall be liable for and shall indemnify, defend and hold MSB harmless from and against any and all suits, actions, claims and demands, and costs, expenses and attorney fees incurred in connection (a) with information provided to MSB by the City, (b) the failure to provide information to MSB or (c) with the failure of the City to disclose to MSB that the a Debtor account is disputed, paid in part or full, satisfied, or alleged to be subject to any defense or bankruptcy proceeding. (ii) To the extent permitted by applicable law, MSB will indemnify and hold harmless the City from and against any and all loss, damages, liability, claims or injury resulting from all actions performed by MSB or its agents on MSB's behalf in connection with this Agreement; provided, however, that this Agreement shall not apply with respect to any erroneous information furnished to MSB by the City nor shall it apply to any act or omission of the City. B. Applicable Law. This Agreement will be construed in accordance with the laws of the State of Montana. C. Force Majeure. No Marty shall be liable for any failure to perform its obligations in connection with any action described in this Agreement, if such failure results from any act of God, riot, war, civil uiuest, flood, earthquake, or other cause beyond such party's reasonable control (including any mechanical, electronic, or communications failure, but excluding failure caused by a party's financial condition or negligence). [Signature page follows] Revised: November ]0, 2006 ,w IN WITNESS WHEREOF, the parties to this Agreement have signed and delivered this Agreement on the day and year first above written. MUN~I (ICES RE By: Name: Bruce C nin Title: President CITY: B ~ / 'r ~ Y~ Name: Chris Kukulski Its City Manager and representative dilly authorized to execute this Agreement. Revised: November 10, 2006