HomeMy WebLinkAboutResolution No. R24-07A RESOLUTION OF THE CITY COUNCIL APPROVING A CONTRACT WITH
COLLECTION BUREAU SERVICES, INC. FOR THE COLLECTION OF LAUREL
CITY COURT RECEIVABLES.
BE IT RESOLVED by the City Council of the City of Laurel, Montana,
Section 1: Approval. The Contract with Collection Bureau Services, Inc., for the
collection of Laurel City Court receivables (hereinafter "Collection Contract"), a copy attached
hereto and incorporated herein, is hereby approved.
Section 2: Execution. The Mayor is hereby given authority to execute the Collection
Contract on behalf of the City.
Introduced at a regular meeting of the City Council on the U)"' day of February, 2024,
by Council Member Canape.
PASSED and APPROVED by the City Council of the City of Laurel the 13t" day of
February, 2024.
APPROVED by the Mayor the 13"' day of February, 2024.
ATTEST:
,K4VStrt-vrClerk-Treasurer
APPROVED AS TO FORM:
Michele L. Braukmann, Civil City Attorney
R24-07 Approve Contract with Collection Bureau Services
CITY OF LAUREL
Dave Waggoner, MayO
Whereas LAUREL CITY COURT hereafter named as "Client." desires to engage a private collection
agency for recovery of its delinquent accounts, and; Whereas Collection Bureau Services, Inc. (CBS)
desires to provide these services; CBS will be the exclusive third -party collection agency used by Client
for all new bad debt accounts referred to outside collection by Client after the Effective Date, as stated
below.
Assignment
For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, CIient does
hereby assign, transfer, and set over to CBS all debts currently in CBS' possession, hereby reaffirming
all past assignments, transfers, and set overs, as well as all debts referred to CBS in the future, including,
but not limited to, service fees, damages, costs, or any other fees or amounts allowed by law or
agreement with the debtor, authorizing and granting CBS full right and power to collect, bring legal
action, and discharge said indebtedness or claim in its own name and to do whatever it deems necessary
to collect said amount. The undersigned covenants and represents that said amounts are justly due as of
the received date and will provide verification upon request. Although payment may be received by
Client from the government, an insurance carrier, the debtor or any other source, this does not revoke or
in any manner affect the assignment or CBS's right to the funds.
Documentation
CBS may require certain documentation on accounts assigned for collection. Client agrees to furnish
CBS with said documents, within 7 business days of CBS' written request.
Notice of Bankruptcy
Client agrees it shall inform CBS anytime it has reason to believe a consumer has filed for bankruptcy
protection after Client has listed that consumer's account for collection with CBS.
Fee Schedule
The CLIENT will accept the following fee schedule as provided by CBS:
Accounts collected in the State of Montana
CBS will retain 20% of monies collected on those cases where judgment was entered prior to October 1, 2003.
CBS will add 25% of the principal amount of the balances on those cases where judgment was entered on or
after October 1, 2003. This 25% is to be CBS's fee in accordance with MCA 46-17-303; MCA 46-19-102.
CBS will retain any allowed costs above the amount of the original judgment.
The CLIENT will be responsible for fling satisfaction of these judgments.
Accounts collected outside the State of Montana
1. CBS will retain 50% of monies collected.
2. CBS will retain any allowed costs above the amount of the original judgment.
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Contract For Collection Service with Collection Bureau Services, Inc. Pagel of 3
3. The CLIENT will be responsible for filing satisfaction of these judgments.
CBS will remit payment monthly to CLIENT.
Indemnity
Client hereby agrees to indemnify, defend and hold CBS harmless from and against any and all liability,
expense (including court costs and attorney fees) and claims for damage of any nature whatsoever.
whether known or unknown, which CBS may incur, suffer, become liable for, or which may be asserted
or claimed against CBS as a result of the acts, errors, omissions or negligence of Client, whether such
acts occur prior to listing of accounts, or afterwards.
CBS hereby agrees to indemnify, defend and hold Client harmless from and against any and all
liability, expense (including court costs and attorney fees) and claims for damage of any nature
whatsoever, whether known or unknown, which Client may incur, suffer, become liable for, or which
may be asserted or claimed against Client as a result of the acts, errors, omissions or negligence of CBS,
once the account has been listed.
Online Management System
Each employee authorized to access CBS' Online Management System (OMS) will be issued a
username and password. Client must notify CBS immediately upon the employee's termination or loss
of authorization to access the OMS.
Effective Date
This Agreement shall be effective for a period of twenty-four months beginning] _,2024
and endingti. .2026.
Agreement Renewal
This agreement will automatically renew for a like term upon expiration unless terminated in writing.
Each new term becomes a new twenty-four month contract with identical terms.
Termination
This agreement may be terminated only by written notice, provided to CBS or Client no less than 90
days before the ending date. Such notice must be delivered to the parties at the addresses given below.
For purposes of this section the postmark date will control.
Collection Bureau Services, Inc.
PO Box 7339
Missoula MT 59807-7339
LAUREL CITY COURT
115 WEST IST STREET
LAUREL. MT 59044
Confidentiality of Information
CBS and Client each agree and acknowledge that certain non-public personal information (NPI) may be
revealed in the course of business interactions between the parties. It is understood and agreed that
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Contract For Collection Service with Collection Bureau Services, Inc. Page 2 of 3
neither party may use the NPI in any manner inconsistent with this contract. CBS and Client covenant
and agree that they will implement security measures which safeguard the NPI.
Dispute Resolution
The parties acknowledge and agree that this Agreement shall be governed and construed in accordance
with the laws of the State of Montana as to all matters including validity, construction, effect,
performance and remedies. For purpose of any lawsuit. action, or proceeding arising out of or relating
to this Agreement, the parties hereto agree that the proper place of venue shall be the State of Montana,
county of Missoula.
Non -Waiver of Rights and Obligations
Failure on the part of either party to exercise any rights or privileges granted to it, or to insist upon the
full performance of all obligations assumed by the other shall not be construed as waiving any such
rights, privileges, obligations or duties, or as creating any customs contrary thereto. Any waiver of any
such rights, privileges, obligations or duties must be in writing and such written waiver shall not operate
beyond its terms.
Non -assignable
Neither party to this Agreement shall assign this Agreement or its rights or duties hereunder, nor any
interest therein, without the prior written consent of the other party, except that CBS may forward
accounts to agencies outside of the state of Montana when it determines it to be in the best interest of
both Client and CBS.
Entire Agreement
This agreement constitutes the entire agreement between the parties with regard to this subject matter,
and no other agreement, statement, promise, or practice between the parties relating to the subject matter
shall be binding on the parties. This Agreement may be changed only by a written amendment signed
by both parties.
Sip -nature
Dated this day of , 2024.
LAUREL CITY QOURT
By. p ,
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Title: `(0
COLLECTION BUREAU SERVICES, INC.
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Contract For Collection Service with Collection Bureau Services, Inc. Page 3 of 3