CONTRACT 4098 Professional Services Agreement CLOSEDPROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF EL SEGUNDO AND
FINANCIAL CREDIT NETWORK, INC.
This AGREEMENT is entered into this 15th day of November, 2010, by and between the
CITY OF EL SEGUNDO, a municipal corporation and general law city ( "CITY ") and
FINANCIAL CREDIT NETWORK, INC., a California corporation ( "CONSULTANT ").
1. CONSIDERATION.
A. As partial consideration, CONSULTANT agrees to perform the work listed in the
SCOPE OF SERVICES, below;
B. As additional consideration, CONSULTANT and CITY agree to abide by the
terms and conditions contained in this Agreement;
C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to
exceed twenty five thousand dollars ($25,000.00) for CONSULTANT's services.
CITY may modify this amount as set forth below. Unless otherwise specified by
written amendment to this Agreement, CITY will pay this sum as specified in the
attached Exhibit "A," which is incorporated by reference.
2. SCOPE OF SERVICES.
A. CONSULTANT will perform services listed in the attached Exhibit "A," which is
incorporated by reference.
B. CONSULTANT will, in a professional manner, furnish all of the labor, technical,
administrative, professional and other personnel, all supplies and materials,
equipment, printing, vehicles, transportation, office space and facilities, and all
tests, testing and analyses, calculation, and all other means whatsoever, except as
herein otherwise expressly specified to be furnished by CITY, necessary or proper
to perform and complete the work and provide the professional services required
of CONSULTANT by this Agreement.
3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT
will use the appropriate generally accepted professional standards of practice existing at the time
of performance utilized by persons engaged in providing similar services. CITY will
continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any
deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any
shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne
by CONSULTANT.
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4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement,
CONSULTANT must submit a detailed remittance statement to CITY as set forth in Exhibit
"A»
5. NON - APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for
current services are within the current budget and within an available, unexhausted and
unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient
funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement
will cover only those costs incurred up to the conclusion of the current fiscal year.
6. ADDITIONAL WORK.
A. CITY's city manager ( "Manager ") may determine, at the Manager's sole
discretion, that CONSULTANT must perform additional work ( "Additional
Work ") to complete the Scope of Work. If Additional Work is needed, the
Manager will give written authorization to CONSULTANT to perform such
Additional Work.
B. If CONSULTANT believes Additional Work is needed to complete the Scope of
Work, CONSULTANT will provide the Manager with written notification that
contains a specific description of the proposed Additional Work, reasons for such
Additional Work, and a detailed proposal regarding cost.
C. Payments over $25,000.00 for Additional Work must be approved by CITY's city
council. All Additional Work will be subject to all other terms and provisions of
this Agreement.
7. FAMILIARITY WITH WORK.
A. By executing this Agreement, CONSULTANT agrees that it has:
i. Carefully investigated and considered the scope of services to be
performed;
ii. Carefully considered how the services should be performed; and
iii. Understands the facilities, difficulties, and restrictions attending
performance of the services under this Agreement.
B. If services involve work upon any site, CONSULTANT agrees that
CONSULTANT has or will investigate the site and is or will be fully acquainted
with the conditions there existing, before commencing the services hereunder.
Should CONSULTANT discover any latent or unknown conditions that may
materially affect the performance of the services, CONSULTANT will
immediately inform CITY of such fact and will not proceed except at
CONSULTANT's own risk until written instructions are received from CITY.
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8. TERM. The term of this Agreement will be from November 15, 2010 to September 30,
2015. Unless otherwise determined by written amendment between the parties, this Agreement
will terminate in the following instances:
A. Completion of the work specified in Exhibit "A ";
B. Termination as stated in Section 16.
9. TIME FOR PERFORMANCE.
A. CONSULTANT will not perform any work under this Agreement until:
i. CONSULTANT furnishes proof of insurance as required under Section 23
of this Agreement; and
ii. CITY gives CONSULTANT a written notice to proceed.
B. Should CONSULTANT begin work on any phase in advance of receiving written
authorization to proceed, any such professional services are at CONSULTANT's
own risk.
10. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond
CONSULTANT's control, CITY may grant a time extension for the completion of the contracted
services. If delay occurs, CONSULTANT must notify the Manager within forty -eight hours (48
hours), in writing, of the cause and the extent of the delay and how such delay interferes with the
Agreement's schedule. The Manager will extend the completion time, when appropriate, for the
completion of the contracted services.
11. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main
body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes
any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order
in which the Exhibits appear below:
A. Exhibit A: Scope of Work and Fee Schedule
12. CHANGES. CITY may order changes in the services within the general scope of this
Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the
contract time will be adjusted accordingly. All such changes must be authorized in writing,
executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in
the services will be determined in accordance with written agreement between the parties.
13. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a
Taxpayer Identification Number.
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14. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and
maintain during the term of this Agreement, all necessary permits, licenses, and certificates that
may be required in connection with the performance of services under this Agreement.
15. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by
CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights
CITY may have under this Agreement or of any cause of action arising from CONSULTANT's
performance. A waiver by CITY of any breach of any term, covenant, or condition contained in
this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any
other term, covenant, or condition contained in this Agreement, whether of the same or different
character.
16. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any time
with or without cause. Notice will be in writing at least thirty (30) days before the
effective termination date.
B. CONSULTANT may terminate this Agreement at any time with CITY's mutual
consent. Notice will be in writing at least thirty (30) days before the effective
termination date.
C. Upon receiving a termination notice, CONSULTANT will immediately cease
performance under this Agreement unless otherwise provided in the termination
notice. Except as otherwise provided in the termination notice, any additional
work performed by CONSULTANT after receiving a termination notice will be
performed at CONSULTANT" own cost; CITY will not be obligated to
compensate CONSULTANT for such work.
D. Should termination occur, all finished or unfinished documents, data, studies,
surveys, drawings, maps, reports and other materials prepared by CONSULTANT
will, at CITY's option, become CITY's property, and CONSULTANT will
receive just and equitable compensation for any work satisfactorily completed up
to the effective date of notice of termination, not to exceed the total costs under
Section 1(C).
E. Should the Agreement be terminated pursuant to this Section, CITY may procure
on its own terms services similar to those terminated.
F. By executing this document, CONSULTANT waives any and all claims for
damages that might otherwise arise from CITY's termination under this Section.
17. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models,
photographs and reports prepared by CONSULTANT under this Agreement are CITY's
property. CONSULTANT may retain copies of said documents and materials as desired, but
will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of
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CONSULTANT's completed work product, for purposes other than identified in this Agreement,
or use of incomplete work product, is at CITY's own risk.
18. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service
under this Agreement, no copies, sketches, or graphs of materials, including graphic art work,
prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or
public CITY without CITY's prior written approval. All press releases, including graphic
display information to be published in newspapers or magazines, will be approved and
distributed solely by CITY, unless otherwise provided by written agreement between the parties.
19. INDEMNIFICATION.
A. CONSULTANT agrees to the following:
i. Indemnification for Professional Services. CONSULTANT will save
harmless and indemnify and at CITY's request reimburse defense
costs for CITY and all its officers, volunteers, employees and
representatives from and against any and all suits, actions, or claims,
of any character whatever, brought for, or on account of, any injuries
or damages sustained by any person or property resulting or arising
from any negligent or wrongful act, error or omission by
CONSULTANT or any of CONSULTANT's officers, agents,
employees, or representatives, in the performance of this Agreement,
except for such loss or damage arising from CITY's sole negligence or
willful misconduct.
ii. Indemnification for other Damages. CONSULTANT indemnifies and
holds CITY harmless from and against any claim, action, damages,
costs (including, without limitation, attorney's fees), injuries, or
liability, arising out of this Agreement, or its performance, except for
such loss or damage arising from CITY's sole negligence or willful
misconduct. Should CITY be named in any suit, or should any claim
be brought against it by suit or otherwise, whether the same be
groundless or not, arising out of this Agreement, or its performance,
CONSULTANT will defend CITY (at CITY's request and with
counsel satisfactory to CITY) and will indemnify CITY for any
judgment rendered against it or any sums paid out in settlement or
otherwise.
B. For purposes of this section "CITY" includes CITY's officers, officials,
employees, agents, representatives, and certified volunteers.
C. It is expressly understood and agreed that the foregoing provisions will survive
termination of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be
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maintained by CONSULTANT as required by Section 23, and any approval of
said insurance by CITY, are not intended to and will not in any manner limit or
qualify the liabilities and obligations otherwise assumed by CONSULTANT
pursuant to this Agreement, including, without limitation, to the provisions
concerning indemnification.
20. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services.
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's
written approval are prohibited and will be null and void.
21. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that
CONSULTANT will act as an independent contractor and will have control of all work and the
manner in which is it performed. CONSULTANT will be free to contract for similar service to
be performed for other employers while under contract with CITY. CONSULTANT is not an
agent or employee of CITY and is not entitled to participate in any pension plan, insurance,
bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that
may appear to give CITY the right to direct CONSULTANT as to the details of doing the work
or to exercise a measure of control over the work means that CONSULTANT will follow the
direction of the CITY as to end results of the work only.
22. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with
respect to all services and matters covered under this Agreement. CITY will have free access at
all reasonable times to such records, and the right to examine and audit the same and to make
transcript therefrom, and to inspect all program data, documents, proceedings and activities.
CONSULTANT will retain such financial and program service records for at least three (3) years
after termination or final payment under this Agreement.
23. INSURANCE.
A. Before commencing performance under this Agreement, and at all other times this
Agreement is effective, CONSULTANT will procure and maintain the following
types of insurance with coverage limits complying, at a minimum, with the limits
set forth below:
Type of Insurance
Commercial general liability:
Professional Liability
Business automobile liability
Workers compensation
Limits
$1,000,000
$1,000,000
$1,000,000
Statutory requirement
B. Commercial general liability insurance will meet or exceed the requirements of
the most recent ISO -CGL Form. The amount of insurance set forth above will be
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a combined single limit per occurrence for bodily injury, personal injury, and
property damage for the policy coverage. Liability policies will be endorsed to
name CITY, its officials, and employees as "additional insureds" under said
insurance coverage and to state that such insurance will be deemed "primary"
such that any other insurance that may be carried by CITY will be excess thereto.
Such endorsement must be reflected on ISO Form No. CG 20 10 1185 or 88, or
equivalent. Such insurance will be on an "occurrence," not a "claims made," basis
and will not be cancelable or subject to reduction except upon thirty (30) days
prior written notice to CITY.
C. Professional liability coverage will be on an "occurrence basis" if such coverage
is available, or on a "claims made" basis if not available. When coverage is
provided on a "claims made basis," CONSULTANT will continue to renew the
insurance for a period of three (3) years after this Agreement expires or is
terminated. Such insurance will have the same coverage and limits as the policy
that was in effect during the term of this Agreement, and will cover
CONSULTANT for all claims made by CITY arising out of any errors or
omissions of CONSULTANT, or its officers, employees or agents during the time
this Agreement was in effect.
D. Automobile coverage will be written on ISO Business Auto Coverage Form CA
00 0106 92, including symbol 1 (Any Auto).
E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance
evidencing maintenance of the insurance required under this Agreement and such
other evidence of insurance or copies of policies as may be reasonably required
by CITY from time to time. Insurance must be placed with insurers with a current
A.M. Best Company Rating equivalent to at least a Rating of "A:VII."
F. Should CONSULTANT, for any reason, fail to obtain and maintain the insurance
required by this Agreement, CITY may obtain such coverage at
CONSULTANT's expense and deduct the cost of such insurance from payments
due to CONSULTANT under this Agreement or terminate pursuant to Section 16.
24. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written
approval to use any consultants while performing any portion of this Agreement. Such approval
must approve of the proposed consultant and the terms of compensation.
25. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the
status on the project, which will include a schedule update and a short narrative description of
progress during the past month for each major task, a description of the work remaining and a
description of the work to be done before the next schedule update.
26. NOTICES. All communications to either party by the other party will be deemed made
when received by such party at its respective name and address as follows:
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If to CONSULTANT:
Financial Credit Network
1300 West Main Street
Visalia, CA 93291
Attention: Jennifer Harley, Account Executive
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If to CITY:
City of El Segundo
350 Main Street
El Segundo, CA
Attention: Steve Jones, Business Services
Manager
Any such written communications by mail will be conclusively deemed to have been received by
the addressee upon deposit thereof in the United States Mail, postage prepaid and properly
addressed as noted above. In all other instances, notices will be deemed given at the time of
actual delivery. Changes may be made in the names or addresses of persons to whom notices are
to be given by giving notice in the manner prescribed in this paragraph.
27. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest
laws and regulations including, without limitation, CITY's conflict of interest regulations.
28. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor
retained any company or person, other than CONSULTANT's bona fide employee, to solicit or
secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed
to pay any company or person, other than CONSULTANT's bona fide employee, any fee,
commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting
from the award or making of this Agreement. Should CONSULTANT breach or violate this
warranty, CITY may rescind this Agreement without liability.
29. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any
other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or
CITY's obligations under this Agreement.
30. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance
with the laws of the State of California, and exclusive venue for any action involving this
agreement will be in Los Angeles County.
31. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state,
and local laws applicable to this Agreement.
32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire
understanding of the parties. There are no other understandings, terms or other agreements
expressed or implied, oral or written. There is one (1) Attachment to this Agreement. This
Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent
successors and assigns.
33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this
Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole,
and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.
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34. SEVERABILITY. If any portion of this Agreement is declared by a court of competent
jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the
extent necessary in the opinion of the court to render such portion enforceable and, as so
modified, such portion and the balance of this Agreement will continue in full force and effect.
35. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this Agreement and to
engage in the actions described herein. This Agreement may be modified by written amendment.
CITY's executive manager, or designee, may execute any such amendment on behalf of CITY.
36. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement,
agreements ancillary to this Agreement, and related documents to be entered into in connection
with this Agreement will be considered signed when the signature of a party is delivered by
facsimile transmission. Such facsimile signature will be treated in all respects as having the
same effect as an original signature.
37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of
reference only and will not affect the interpretation of this Agreement.
38. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this
Agreement.
39. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood,
explosion, acts of terrorism, war, embargo, government action, civil or military authority, the
natural elements, or other similar causes beyond the Parties' reasonable control, then the
Agreement will immediately terminate without obligation of either party to the other.
40. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT
represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity
to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its
financial resources, surety and insurance experience, service experience, completion ability,
personnel, current workload, experience in dealing with private consultants, and experience in
dealing with public agencies all suggest that CONSULTANT is capable of performing the
proposed contract and has a demonstrated capacity to deal fairly and effectively with and to
satisfy a public CITY.
[Signatures on next page]
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IN WITNESS WHEREOF the parties hereto have executed this contract the day and year
first hereinabove written.
CITY
i
ATTEST:
vvv"� AV\
Cindy MorteWn,
City Clerk 10e,
APPROVED AS e
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MARK D. HE �L i6
L'In
YArl H. Berger,
Assistant City,,)
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-FINANCtAL CREDIT NETWORK
Kris Davisson
Vice President
Taxpayer ID No. 48129226-2—
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OL.Lb ON MFFHODOLOGY
Accounts can be assigned to Financial Credit Network in a variety of ways: 1) FCNefm (web portal); 2) electronic file; 3)
manual entry utilizing our Data Entry Department; and can be customized to meet our clients needs.
Inid, Acdon F"olknriiigAc"Aury Placement. All accounts are worked according to the work standards issued by our clients.
During the first 48.72 hours accounts are input into CUBS (our collection system) and are cross - referenced against our database
of over 2,000,000 accounts for matching name, social security number, driver's license number and account number. Next,
accounts are batched to multiple account enrichment services such as NCOA Source, Contact Locator, C8CInnovis, SkipTrace
Info, TMark and /or a property ownership database. All of this information is appended to the account before the account is
viewed by the collector.
At this time, the accounts that qualify for our Multi - Language Program are split off and assigned to collectors who are bilingual.
For accounts that qualify, each is batched monthly to Trans Union for an abbreviated credit report which includes updated
address and employment information as well as newly opened trade lines and any lien information. We can also utilize full
credit reports to establish the consumer's ability to pay.
Our flowchart, provided at the end of this document, illustrates the workflow from initial placement to the eventual
resolution/closing of the account.
All of our collectors are linked to our CTCenter predictive dialer that has written a program that forces accounts to meet the
work standards defined by our clientele.
When a consumer is contacted, it is the collector's job to determine the consumer's ability to pay. Once the consumer and
collector have mutually agreed upon a payment arrangement, the promise information is entered in specific areas of the
collector's account screen for follow -up. The various arrangements tracked are promises for "Payment in Full ", "Post -dated
Checks" and "Partial Payment Plans ". Each is unique in that reminder letters and follow-up calls may be necessary. If any of
these arrangements default, our computer, with the generation of a "Broken Promise" listing, immediately alerts the collector.
All information provided by the client, FCN, and the other enrichment sources are exhausted before the account is closed.
t':,edl'anctio,re;re 'fu arre bra arc °„ A focused strategy is one of the most important factors in the success of a collection program. FCN
recently made the switch from an individual approach to a team or "pooled" environment. The key motivation for creating this
new approach was to have our most experienced collectors talking to consumers. We have created a three -tier system which
includes an Inbound Team (13 collectors), a "Split" Team (8 collectors) and a Dialer Team (5 collectors). Each team plays in
integral role in making this plan work smoothly.
The Inbound Team is comprised of our most experienced collectors. These individuals have proven themselves to be top
negotiators. This team is responsible for handling all incoming calls according to the daily strategy. They also work priority
accounts (promises, broken payment plans, etc.) and activate new business by placing outbound calls manually.
The Split Team is comprised of collectors that will have a "split" role. Their daily responsibilities are determined by the daily
strategy. These collectors take on more specialized duties including identifying suits, working payment reports, skip tracing, etc.
They are also responsible for assisting either the Dialer or Inbound team when necessary.
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The Dialer Team is comprised of our newer collectors who have not yet gained the experience of handling the inbound call.
These collectors work on the dialer from 9-6 on a daily basis. They are responsible for leaving messages, removing disconnected
numbers, activating specified new work and backlog accounts, securing consumer's location information from third parties and
generating call backs. When a right party is reached, this team transfers the consumer to a member of the Inbound or Split
Teams.
Our daily strategy is developed each morning and is based on a number of factors including the amount of new work, the
amount of "today's" accounts (those accounts timed to be worked today) and the amount of backlogged accounts. Once these
volumes have been determined, work lists are created for each team. The Inbound Team receives fewer, smaller WIP (work in
program) lists of accounts, to be dialed manually, with accounts with the highest probability of payment, while the Dialer Team
is assigned a much higher volume of WIP lists, to be dialed through automation, that have a lower probability of payment. The
dialer lists are built three times daily at 9:00 a.m., 2:00 p.m. and 4:30 p.m. to cover morning, afternoon and evening calls. The
Split Team can be assigned to assist either team or receives small specialized WIP lists. We have found that this new strategy
has given us the flexibility to adapt quickly to changes in clients requests, staffing levels and call volumes.
Rt- 'PA,ymf.,, qT O PTROd" S.
Consumers receive several different options with which to pay their delinquent billing: in person at our two payment centers;
by mail; VISA/MasterCard/American Express /Debit Card; AutoPay /Posted -Dated Checks; MoneyGram; and via our website.
There is no additional cost to the City for any of these payment methods.
CREDIT REPORTING.
We report all accounts assigned to our office over $50.00 to all three credit reporting agencies, Experian, Trans Union and
Equifax, after the first 30 days of assignment. Our normal cycle for updating is monthly via tape or electronic file. The bulk of
the deletions occur monthly, however, manual deletions can be processed daily. The above credit repositories set the $50.00
account balance minimum, however the time frame in which an account is reported and which accounts are reported can be
customized to meet the individual needs of each client.
TECHNOLOGY
Outlined below is our investment in computer technology, which enables us to stand out in the collection industry, increase
our recovery rates and therefore, increase your bottom line.
• Web P or•tab We have implemented FCNefrm, a web portal for use by our clientele. This portal allows our clientele,
by utilizing the Internet, to view account activity, manually add accounts to our system, create custom reports, link to
skip tracing services, post direct payments, cancel accounts, update demographics and receive all of their monthly
reports via PDF files. It also allows consumers to pay their account in full, suggest a repayment plan, or notify our
office of a dispute or bankruptcy.
• Conyprrrer° Sofnvvre & Hardware. Our software is provided by Columbia Ultimate Business Systems, Inc. (CUBS).
This system has been designed for the collection industry and provides data easily accessed by our entire staff. The
CUBS System is highly rated in the collection industry, providing an outstanding data source in a user friendly
environment. This software is currently running on an IBM pSeries system. It is equipped with RAID, multiple tape -
backup systems and 512 ports. FCN currently uses 126 of these ports.
• r did C"qpBrCilitiest We currently accept assignments, payments and cancellations from various clients via hard copy,
FCNefm and an internet connection utilizing file transfer protocol or secure HTTP. We utilize both the CUBS
Custom Program Department and independent third -party programmers for customized programming. The electronic
programs that we currently have in place vary widely in scope. Each has been designed based upon the client's needs
and unique situation.
•
Data Fecur•aty. Data security is a priority for Financial Credit Network. Our web portal allows for a SSL data
encrypted means of transmitting the information to us. We also maintain an FTP server which is dedicated to clients
who wish to transmit files to our office electronically. FCN supports PGP encryption for added security. FCN has
developed an extensive security policy and continually refines it with the advent of new technologies /threats. The
physical security of our information includes training our staff to maintain a secure work area by not placing sensitive
information on desks and by putting away information at the end day. Visitors who enter our facility are required to
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check in at our reception desk and obtain a visitor's pass. All doors, except our main entrance, are controlled by
keypad entrance for additional security.
• Tea: nologj,Back Qp I1ro ess.- Our data is archived each night and stored off site in a safe deposit box at Visalia
Community Bank. A duplicate archive tape is created each week and forwarded to our alternate site for storage in the
event of the need to implement our business resumption plan. Our computer vendor, CUBS, has agreed to provide
"Red Alert" customer service within hours of a disaster. Our data would be loaded, running and tested on the
alternate system within 72 hours of the disaster.
Predlle'rive 13b7lers. We purchased CTCenter from Information Access Technologies which is currently equipped with
48 agent workstations and 6 Interactive Communication ports. CTCenter's Predictive Dialing capabilities include
simultaneous predictive, power or preview dialing by agent; remote agent and system management; real -time pacing by
agent and campaign; and inbound /outbound call blending. The CTCenter interactive communication module
automatically makes or takes contacts by phone — during the day, after hours or on weekends — based on parameters
set based upon our client's work standards. Asking for the right party by name and delivering customized messages, it
does the work of multiple agents. During office hours, both inbound and outbound calls can be transferred to an
agent.
• laf3. Aarre Atiendaw and Voicenparal. Our NEC 2400 PBX is currently being utilized at less than 35% of its
potential capacity. It can be expanded to accommodate virtually an unlimited number of incoming trunks and
telephone ports. The PBX is equipped with an automated attendant and a voicemail system. This equipment has
been converted to have both Spanish and English prompts. When the office is closed, all calls are handled by the auto
attendant. The consumers are given the option to leave a voicemail message which is returned the following morning.
• T'ii�"PV& Clolmal We utilize these vendors who use web -based contact software that incorporates VOIP (voice
over 1P) technology. With these tools we are able to create calling campaigns that launch hundreds of simultaneous
calls. If a right party is contacted the consumer has the ability to link back into our call center and speak directly to a
collection agent.
• Cam' Af We have a call recording system that records all incoming and outgoing collection calls. These recordings are
then used to enhance our collector training program and provide valuable feedback to our collection team members.
This software also has a feature that captures screen shots enabling both our QA staff and supervisors to follow not
only the verbal conversation, but also the keystrokes of our agents.
iF I R 'FRAC'I N u
Skip tracing is a vital aspect of any successful collection agency. Financial Credit Network has invested heavily in state -of -the -art
technology and training to insure our competitive edge within the industry. Our own database cross - references millions of
accounts we have collected. In addition, in our collection department, we receive online property information, credit bureau
reports, National Change of Address (NCOA), phone overlays, nearbys, and multiples. Some of the tools we own or subscribe
to are described below:
2`6,tle nkll Ch end",= of,,ll.aaaela'ris OYK-'0/0 This feature improves mail deliverability by providing mailers with current,
standardized, delivery point coded addresses for individual, family, and business moves. It reduces undeliverable mail
by providing the most current address information for matches made to the NCOA file and prevents re- mailings after
address corrections are received because the address correction is applied prior to the mailing. It also provides the
opportunity for faster product/service marketing through accurate mail delivery.
,'� dje 'fir °aac °at�rl��"l ,.,. �i"e�rnrsra:r Locan,%r, t::M' =Traa:ro'nis dn'd a- ip7'iwce lraba. These skip tracing tools provide the
Opportunity to locate consumers and allows for right party contact (including unique address and telephone numbers).
We utilize these vendors through a "waterfall" approach. Each account that does not have a valid telephone number
is skipped upon placement and then every 30 days for six times. Then, after an additional six months, the account is
skipped one last time to obtain any new available information. When a telephone number is not returned by one
vendor, it is batched to the next vendor in the waterfall.
u u,
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• 21ansVidoan Automated Credit Repomq. If an account qualifies, an abbreviated report is automatically accessible,
providing additional information to each collector. The program compares existing data to new data, such as address
changes, employment, spousal information, mortgages, liens, collections, credit cards etc. This innovative program
gives substantial, fast, accurate data, allowing us to expand our information base for a greater volume of accounts
assigned.
• Caller ID: Our NEC telephone switch is Caller ID compatible. Each incoming telephone call, as it is passed
internally to a collection desk, is passed with the number the caller is calling from. This appears on the display of the
telephone set. The collector is able to capture and record this number for future reference.
• eenrfttsr Merlin Information Services provides access to public record and other databases to look for assets, run
background checks, or perform investigative work. Merlin's data center has a storage capacity of over 115 terabytes of
data, and is capable of delivering over 10 million searches per day. The average response time is under two seconds for
instant search results. Through Internet access, our collection staff is able to perform extensive skip tracing searches.
LEGAL PROCESS
We pursue legal action only if we are unsuccessful in obtaining a satisfactory repayment plan. Many of our clients have specific
guidelines they wish us to follow.
The collectors make recommendations for legal action, which are then reviewed by their immediate supervisor. Once
approved, the recommendation is given final approval by a committee comprised of supervisors and our Legal Department. At
this point, if required, an authorization form is generated and forwarded to our client for their approval. Once approved the
legal documents are prepared by our legal support staff and submitted to our attorney to be finalized. Once finalized the
documents are batched out to the appropriate entity for filing or service.
After a judgment has been filed, abstract recorded and garnishment started, a consumer may call our office and state the
amount of money garnished (25% disposable earnings per individual served) is creating a hardship for him. The Legal Manager
will consider modifying the levy to a reasonable amount, in order to accommodate consumer's needs if necessary.
Our legal rate takes affect once we receive your signed authorization and the lawsuit is created.
STANDARD REPORTS
All of our reports are in standard format. Each can be customized as required to meet your needs. Unless specified, these
reports can be setup to print at predetermined intervals such as monthly or quarterly.
• Ass&,nmentAck noawledgii ent, This letter style report generates each time we receive a batch of account for
assignments.
• Client lh entoq,. This history lists each account assigned along with the client's reference number, amount assigned,
the amount collected, amount canceled, the balance, the last pay date and the current status of the account.
• `- lerforina ne:ex &,id tics, This report summarizes our overall performance statistics and breaks them down by age,
balance and status code.
• 1.1iFtory Rc port�� This report prints in an actuarial format allowing our client to match the date of collection against
the assignment date. The report breaks the statistics down by month for the previous 24 months and by year for the
last three years.
• Rcvow e ay Rate uiiimat ,: This report compares recovery rates for the past 12 months to the current 12 months.
• Year& Cl enttyi' ,.v'iA,,aniiie.sne,�,'' ollectiean Re.porto This report compares client assignments to actual collections for a 24
month period.
•
Remittance Aefsice, This statement can be provided weekly, bi- weekly or monthly and is available via magnetic tape
or hard copy.
• Cancellation Report. This report lists accounts that have been canceled for the current month.
•
Ad-Hoc FxeportainAp We can provide most information needed in the format required within 48 hours of receiving the
request. The CUBS system provides incredible flexibility in both retrieving information and placing that information
in a desired report format.
r 4 r I,r��; c c +, t, g:; �,. ��� .` i` C x C . "� c °,_ n Et . 1 k� b:
1,01W)RATE HEADQUARTERS:
U300 ULMN STREET,a " 78;, 8 ,, CALIFFORNIA, 93291.
P-10 BOX M184 VISALIA, CAMFORMA93278-3084
e rid NIA, BARBARA I -A ' . "Ik'''IDN:
315 9, CANONJIMIDUM, WrE BI MNIA HAREARil, CA 931
IYi
,ii�ii!ii��
4098
FEE SCHEDULE
We are pleased to offer City of El Segundo the following fee schedule. There are no additional charges associated with out
services.
1 11 11 1 1111m
—Primary Placement — Day 1-14 (grace period)
0%
Primary Placements - Day 15 through the life of the account
(excluding legal action)
25%
Court Action or Forward on Primary Placements
(if reauiTed and approved)
35%
Secondary Placements
(excluding le al action)
40%
Court Action or Forward on Secondary Placements
(if re aired and approved)
45%
�111111I'11111111.IIII 11�111111111111,1,�'.'11 I "I'll'I.11,1111,�.�'ll""I'll""II.111,ll-���������������,,�,� .................. ............. .. . ......... . .... . . . . ......... . ............. 1 11-11 111-1.-1 .. . ................ . ......................... . .......... .......................................................................................................... . . ..................................... . .............. ... . ... . .. . .......... .......................... .......... ............... ................ ............................ ................................... ........... ...................................................................................... .
Day 1
CCOLIIIN S :f�°Ilf;;;lll' "IIE.Mii AT FiC1I
Accounts loaded in our system and cross- referenced against our database of over 2,000,000 accounts for matching name„
social security number, driver's license number and account number.
NCOA Scrub
First Notice Generated
Initial Skwp Tracing Waterfall Implemented
Day 2
Accounts Are Distributed to Collection Teams by Balance Range and Type I
I Activation of account beginning with client information, and matching debtor accounts. Sorted by language.
Sorting of Accounts
10001ru NiLploMiRlEFIS
I Follow -up at varying limes of day and week for
contact. Letter series.
PROMISES I I I.,EnAl .
BROKEN PROMISES I + Judgement
1 Execution
Follow -up for 3
consecutive days &
letter
IwA ID III114 IFUII...II...
I SKIPS
Refuses to Pay - No Assets
Bankrupt
Deceased
Fraud
Unable to Locate
REPORTED TO (,L1EI r
National Change of Address
Skip Tracing Waterfall (Contact Loealor,
CBC tnnovis, Skip Trace Info
Abbreviated Credit Reports
Full Credit Bureau Reports
Merlin
UNCO11 L11t::CTAIC! &ILIL
Account Maintained
and Recycled.
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