Collection Services MCSI⊂o∥ections⊂ontract
For
CoHection Services
VVITHIN THE
VIIIage ofOak BrOoL IL
PRESENTED ON:lo/12/2018
(lf nOt accepted,Offer expires in 6o days)
PRESENTED BY:
Municipal Co∥ection Services,lnc。
7330 CO∥ege Drive,Suite lo8
Palos Heights,lL 6o463
(708)448-6669 FAX 448‐1749
MUNICIPAL COLLE⊂丁10N SERVICES,IN⊂.AGREEMENT,madethis-dayof-,2o-byandbetween
Municipal Collection Services lncorporated, an lllinois corporation (hereinafter referred to as MCSI),
and the Village of Oak Brook, lllinois (hereinafter referred to as THE MUNICIPALIT).
WITNESSETH
WHEREAS, MCSI is a duly licensed collection agency in the State of lllinois, and;
WHEREAS, THE MUNICIPALITY wishes to list certain debts owed to THE MUNICIPALITY with
MCSI for collection, and;
WHEREAS, MCSI possesses the personnel, experience, expertise and equipment to effectively
aid the MUNICIPALITY in collecting its debts through an effective collection process and court actions,
if necessary.
NOW THEREFORE, in consideration of the mutual and several promises and covenants herein
contained, the parties do hereby agree as follows:
1.OO DEBTS LISTED FOR COLLECTION
1.ol THE MUNICIPALIry agrees that the unpaid fines for municipal violations which have
been issued and processed pursuant to its administrative adiudication system where "determination
orders" or "findings, decisions, and orders" have been entered by THE MUNlctpALlry that THE
MUNICIPALIry desires to refer for collection, will be listed for collection with MCSI. THE
MUNICIPALIry may list other debts or fines for collection with MCSI, during the term of this
Agreement, and any fines or other debts listed for collection shall be hereinafter collectively referred
to as "DEBTS".
l.o2 TH E MU N ICIPALIW agrees that the DEBTS will be collected and administered pursuant
to all of the terms and conditions contained in this Agreement.
1.ol All DEBTS will be forwarded to MCS|, using the forms and procedures that are
designated by MCSI, from time-to-time.
t.o4 Upon request of MCSI, THE MUNICIPALITY will provide certified copies of documents
necessary for use of MCSI in collection ofthe DEBTS. THE MUNICIPALIry and MCSI agree that in order
for McSl to effectively collect the DEBTS and provide accurate records of collection activity, to TH E
MUNICIPALITY, including, but not limited to, amounts collected, accounts closed, and other
dispositions of DEBTS; McSl requires access to THE MUNICIPALITY'S administrative adiudication
database. TH E M U N ICIPALIry hereby agrees to allow MCSI such access, subiect to reasonable security
measures,
1.o5 MCSI will acknowledge receipt of any DEBTS listed for collection within five days after
receipt by MCSI.
Lo6 MCSI acknowledges that it may, in performing the services for the MUNICIPALIry under
this Agreement, have access to or be directly or indirectly exposed to information in the possession or
under the control of the MUNICIPALITY relating to the technical, business, or corporate affairs of the
MU N ICIPALITY ("Confidential lnformation"), provided that the MU N tCtPALtTY informs MCSI that any
information received is confidential. MCSI agrees to hold confidential all Confidential lnformation and
will not disclose or use Confidential lnformation without express prior written consent of the
MUNlClPALlry. MCSI must use reasonable measures at least as strict as those MCSI uses to protect its
own confidential information. These measures must include, without limitation, requiring employees
and subcontractors of MCSI to execute a non-disclosure agreement before obtaining access to
Confidential lnformation.
2. OO EOLLECTIONIIEDEBTS
2.ot MCSI agrees to use its best efforts and any lawful means, which in its sole iudgment
and discretion, that it believes will result in the collection of DEBTS.
2.o2 MCSI will pursue court action to obtain/perfect civil iudgments, when in its sole
judgment and discretion, it believes, that such actions are advisable and will aid in collection of the
DEBTS. THE MUNICIPALIry will provide any additional documents which may be necessary for such
court action, and will cooperate with MCSI, as necessary, to pursue court action.
2.o3 ln compliance with lllinois law, no DEBT will be referred to an attorney for court action
without five days prior written notice to THE MUNICIPALtTy of MCSl,s intention to do so.
2.o4 lf requested by THE MUNICIPALITY, and in its efforts to collect DEBTS, MCS| will assist
THE MUNICIPALITY in managing the Local Debt Recovery Program implemented by The lllinois Office
of the Comptroller (lOC). MCSI, or its designated technology partner, will prepare and, if allowed to
do so by the lOC, will perform the weekly upload of the "add", "change" and ,,delete,, files.
3.OO COMPENSATTON
3.or Nofeeswill bepayableto MCSI by TH E MU N|CIPALITY until such time as any money is
collected on DEBT.
3.02 At such time as any money is collected, MCSI shall be paid as follows:
l.o2.r MCS| will be entitled to any costs awarded by a court in the collection of
DEBT5. lf no additional expense amount is awarded for such costs, this Section
3.o2.1 will not apply.
3.02.2 Thirty percent (3oZ) of the balance of the amount collected on each DEBT,
unless the payment is received from the lOC.
I,o2.3 MCSI'S fee for any services relating to the Local Debt Recovery Program and
for DEBTS collected through the IOC shall be fourteen percent (14%) of the
amount received by THE MUNlClPALlry,
2
4.OO COLLECTTON ANp PAYMENT
4.o1 MCSI shall have the exclusive right to collect the DEBTS until such time as it chooses,
in its sole direction, to return any DEBT to THE MUNICIPALITy. Any inquiries received by THE
MUNICIPALITY concerning any DEBT; including attempts to make payments thereon, shall be referred
at the earliest possible time to MCSI.
4.o2 MCSI will deposit any money collected in a separate bank trust ac€ount established for
that purpose.
4.o) After deduction of its fees, and costs allowable by this Agreement, MCS| will forward
to THE MUNICIPALITY, its share of any amounts collected. Remittance to THE MUNICIPAL|Ty will be
made by the rTth of the month for any amounts collected by the last day of the preceding month.
+.o4 ln the event that any funds are paid to, or collected by THE MUNtClpALtTy on any
DEBTS, TH E M UN ICIPALITY will report such collections to MCSI daily for accounting under this Section,
and MCSI may deduct its fees and allowable costs, on those DEBTS, from the amount that would
otherwise be due to THE MUNICIPALtry under Section 4.o3.
too SETTLEMENT OF DEBTS
5.or THE MUNICIPALITY hereby authorizes MCSI to compromise, or reach negotiated
settlements on any DEBT. However, unless otherwise authorized byTHE MUNCIPALITY in writing, any
such settlement shall be in conformance with the minimum amounts set forth herein. The parties
agree that no DEBT will be settled, negotiated or compromised for less than fifty percent (5oZ) of the
amount due, unless mutually agreed upon, in writing, between MCSI and THE MUNtClpALlTy.
5.oz Should THE MUNICIPALITY make any settlement or otherwise take any action in
derogation of McSl's exclusive right to collect DEBTS, then Mcsl shall be entitled to payment of its fee
in full, as delineated in this Agreement, based on the full amount of the DEBT, as listed,
6.oo TNDEMNtFtcATtoN
6.0i MCSI agrees to indemnify and hold THE MUNlctpALtry harmless against any and all
liability, costs and expenses including reasonable attorney fees, occasioned by claims or suits for loss
or damages arising out of the acts, or omissions of the officers, agents, servants or employees of MCSI
during the term of this Agreement. Conversely, THE MUNICIPALIry agrees to indemnify and hold
MCSI harmless against any and all liability, costs and expenses including reasonable attorney fees,
occasioned by claims or suits for loss or damages arising out of the acts, or omissions, of THE
MUNlClPALlry, its officers, agents, servants or employees.
6.02 Further, THE MUNCIPALIry warrants and represents to MCSI that any Debt listed for
collection will be a legal and valid debt owed to THE MUNtctpALtry, that has not been discharged in
bankruptcy. THE MUNICIPALIry also warrants and represents that it will immediately notify MCSI of
any notice of bankruptcy received relative to any DEBT and that it will also immediately inform MCSI
ofanypaymentsof DEBTS received by TH E MUN ICIPALITY. ln addition to the indemnities listed above,
3
THE MUNICIPALIry agrees to indemnify and hold MCSI harmless against any and all liability, costs and
expenses including reasonable attorneys'fees occasioned by claims or suits under the Federal "Fair
Debt Collection Practices Act", the lllinois "Collection Agency Act", the Federal Bankruptcy Code, or
any other similar consumer protection law, due to the breach of these warranties and representations.
7.OO TERM
7,o1 The term of this Agreement is for a period of 36 months from the date first written
above ("lnitial Period"). However, this Agreement shall continue, under the same terms and
conditions, for additional periods of 12 months ("Extension Period(s)") unless either party gives
written notice to the other, at least 90 days prior to the end of the Initial Period or any Extension
Period, that the party is terminating this Agreement at the end of the lnitial Period or the then current
Extension Period-
7.o2 Notwithstanding a notice of termination given by either party, THE MUNICIPALITY'S
obligation to list DEBTS with MCSI for collection shall continue until the termination of this Agreement,
7.o) In the event of termination of this Agreement by either party, MCSI shall retain its
exclusive right to collect any DEBTS listed prior to the end of this Agreement, until such time as it elects
to return any such DEBTS to THE MUNlClPALlry, as provided under the terms of this Agreemenq and
the terms of this Agreement shall remain in full force and effect with respect to collection by MCSI of
these retained DEBTS.
7.o4 At least once per year, MCSI will return to THE MUNICIPALITY such DEBTS which it
determines, in its sole iudgment and discretion, to be uncollectible.
8.oo Horrces lHo nsunnlce
8.or Any notices to be given pursuant to this Agreement shall be deemed as served when
placed in the United States Mail, with postage prepaid, sent by certified mail, return receipt requested;
to the address designated, in writing, by either party. Until such time as a different address is
designated, notices shall be sent as follows:
lfto Mcsl:Municipal Collection Services, lnc,
7330 College Drive, Suite ro8
Palos Heights, lllinois 60463
Village of Oak Brook
12oo Oak Brook Rd
Oak Brook, lllinois 6052j
8.o2 MCSI will, at its sole cost, obtain and keep in force at all times during the performance
of any work, Workers Compensation and Employer's Liability lnsurance, Commercial General Liability
Insuran€e, and Automobile lnsurance in at least the type and amounts as follows:
Workersr Compensation:
(a) State: Statutory
(b) Employer'sLiability
4
lftoTHEMUNICIPALITY:
g5oo,ooo.oo PerAccident
$5oo,ooo.oo Disease, Policy Limit
g5oo,ooo,oo Disease,EachEmployee
Commercial6eneral Liability: g2,ooo,ooo.oo ceneralAggregate
Business Automobile Liability (including non-owned and hired vehicles):
(a) Bodily lniury:
$1,ooo,ooo.oo PerPerson
gl,ooo,ooo.oo PerAccident(b) Property Damage
gl,ooo,ooo.oo PerOccurrence
MCSlmust name the MUNICIPALITY as an additional insured and provide the MUNICtPALtTY with
Certificates of lnsurance and applicable policy endorsement(s), executed by a duly authorized
representative of each insurer, showing compliance with the insurance requirements set forth above.
Failure of the MUNICIPALITY to demand any certificate, endorsement or other evidence of full
compliance with these insurance requirements or failure of the MUN ICIPALIry to identify a deficiency
from evidence that is provided shall not be construed as a waiver of MCSl's obligation to maintain such
insurance. MCSI agrees that the obligation to provide the insurance required by these documents is
solely its responsibility and that this is a requirement which cannot be waived by any conduct, action,
inaction or omission by the MUNlclPALlry. upon request, Mcsl will provide copies of any or all
policies of insurance maintained in fulfitlment hereof. Failure to maintain the required insurance may
result in termination of this Agreement at the MUNCtpALlTy,s option.5
q.OO ENTIRE AGREEMENT
This Agreement contains the entire agreement between the parties hereto and supersedes any
prior agreements or understandings between the parties. This Agreement may only be altered or
modified by written instrument signed by both parties.
lN WTNESS WHEREOF, the parties have signed this Agreement effective as of the date first
above written.
V:LLAGE OF OAK BR00K91L
MUN:CIPAL:TY
MUNiC:PAL COLLECT:ON SERV:CES,:NC.
Anl∥inois Corporation
3メ
Attested:
Dttc Da.3/,"蹴cユ ♂〃
v∥lage Manager(sIGNATURE)
ヽ
Secretary (SICNA