HomeMy WebLinkAbout15. 17-235 MAY 9, 2017 17-235 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE INTER-GOVERNMENTAL AGREEMENT WITH
WAUKESHA COUNTY TO PROVIDE COLLECTION SERVICES
FOR DELINQUENT ACCOUNTS RECEIVABLE
INITIATED BY: FINANCE DEPARTMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached
inter-agency agreement between the City of Oshkosh and Waukesha County to provide
collection services delinquent accounts receivable for the City of Oshkosh, is hereby
approved and the proper City officials are hereby authorized to execute and deliver the
agreement in substantially the same form as attached hereto, any changes in the execution
copy being deemed approved by their respective signatures, and said City officials are
authorized and directed to take those steps necessary to implement the terms and
conditions of the Agreement.
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Finance Director
DATE: 05/04/17
RE: Approve Inter -Governmental Agreement with Waukesha County to Provide Collection
Services for Delinquent Accounts Receivable
BACKGROUND
In evaluating our vendor contracts we determined that our collection contract with Oshkosh Collection
& Recovery was dated and in need of review. During that review, we decided that it would be in the
City's best interest to seek alternatives for collecting our delinquent accounts receivable. At the
conclusion of that review, a decision was made to end our contractual relationship. We then discovered
the availability of the Waukesha County Collections Program in which their sole purpose is municipal
collections.
ANALYSIS
Waukesha County has been performing collections for Municipalities for approximately twenty years.
Their Contract is more favorable than other collection agencies which we have reviewed, and believe it
will be a good fit for the City.
The City will not be transitioning their delinquent accounts receivable for ambulance collections, as this
is a service provided in the Lifequest contract.
FISCAL IMPACT
Fees for the agreement are performance based and are more cost effective than our previous agreement.
RECOMMENDATION
Staff recommends adoption of the above noted resolution.
Respectfully Submitted,
Xlena larson
Trena Larson
Finance Director
Approved:
Mark A. Rohloff
City Manager
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1 130 920.236.5000 http://www.ci.oshkosh.wi.us
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PREPARED FOR:
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WAUKESHA COUNTY
DEPARTMENT OF ADMINISTRATION
COLLECTION DIVISION
515 W. MORELAND BLVD., AC RM. 348
WAUKESHA, WI 53188
April 17, 2017
Prepared by Michele Gallun
Lead Senior Collections Specialist
262-548-7063
FIRM EXPERIENCE
Andrew Thelke, Collections and Business Services Manager
515 W. Moreland Blvd. Room 348
Waukesha, WI 53188
Business Hours:
The Division staffs normal business hours are 8:00 a.m. to 4:30 p.m. Monday through Friday. In
addition, staff also work 1-2 nights per week until 8:00 p.m. Staff is available by phone or in person
during those hours.
Phone: 262-548-7876
Fax: 262-548-7856
E -Mail: collections@waukeshacountyagov
Overview
The Waukesha County Collection Division was created at the recommendation of the County
Executive's Office and approved by the Waukesha County Board of Supervisors effective January
1994, for the purpose of centralizing administration of collection of delinquent accounts owed to
various Waukesha County departments.
The mission of the Waukesha County Collection Division is to coordinate and integrate an Internal
Service fund operation as a provider of financially responsible centralized collection services to its
users.
The Collection Division is responsible for administering, coordinating and directing efficient - cost
effective collection of accounts referred to it for collection. The Collection Division serves as a
channel of accountability for County -wide delinquent account collection activity. The Collection
Division also accepts referrals from other governmental entities within the State of Wisconsin.
The Division consists of a Collections & Business Services Manager, 3 Senior Collections Specialists,
1 Collections Specialists and Administrative support and temporary staff. The Division is located
within the Department of Administration. The Collections & Business Services Manager reports to the
Director of Administration.
The Division itself has twenty years of experience with staff having over 100 years of combined
collection experience covering all types of government, commercial and consumer collections. Our
expertise in the area of governmental collections makes the Division uniquely qualified to handle any
type of governmental related collection. We also are very knowledgeable about bankruptcy and
litigation. The staff understands and recognizes the sensitivity of governmental collections.
Accounts are collected using a variety of means, including: collection letters, telephone collection
calls, in-person interviews, state tax interception and wage assignments. Policies and procedures
relative to the County's accounts receivable, including collection of delinquent accounts and NSF
checks, are developed by the Collection Division. County agencies are provided assistance and
consultation by the Collection Division on issues pertaining to potential revenue sources, billing,
intake, credit extension and analysis of financial stability of prospective and ongoing
vendors/suppliers. All recommendations for accounts receivable write-off are centralized within the
Collection Division.
FIRM EXPERIENCE CONTINUED
History
In 1995, based on requests for collection assistance from Waukesha County municipalities, the
Division extended use of its collection program in an effort to promote shared services and
intergovernmental cooperation. While it is not the desire of the County to be in direct competition with
private industry, there are a number of cases in which economies of scale can be achieved. In some
situations, the same individual or business entity can owe multiple municipalities and -or counties.
There are currently over 180,000 records in the Waukesha County Collection Division database; and
on average, 20-40% of all new referrals can be linked to existing accounts being worked by the
Collection Division. In addition, the County has a direct interest in collecting personal property taxes
because as a taxing jurisdiction it participates in the charge -back. The Division's experience in the
collection of these more unique and difficult types of public sector billings, and the additional
resources and collection tools not available to the private sector, have proven beneficial to
municipalities with the overall objective of cost savings being passed on to the taxpayers of Waukesha
County.
Our compensation is completely performance based. Under no circumstances will there be a charge if
there is not a collection. Our current fee is 28% of the amount collected. This is because we are
structured as an internal service fund and our motive is not to generate profits but to share the costs of
our operation across our customer base. As the number of users of our services continue to grow, our
corresponding collections increase and the cost of our service will continue to decrease. Initially, when
we began operation in 1993, our contingent fee was 40% of the amount collected, but due to increased
usage of our service and a corresponding increase in collections, the fee was reduced to the current
28%.
FIRM INSURANCE CARRIER
Waukesha County is insured with Wisconsin Municipal Mutual Insurance Company (WMMIC).
WMMIC is licensed to do business in the state of Wisconsin and holds an A- rating by A.M.Best. The
County maintains general liability insurance with limits of liability at $5,000,000 per occurrence and
$15,000,000 annual aggregate and public officials errors and omissions insurance with limits of
liability of $5,000,000 per wrongful act and $15,000,000 general aggregate. Evidence of our insurance
can be obtained by accessing our insurance company website at www.wmmic.com and clicking on the
INFO plate. A certificate of insurance will be provided upon request.
SAFE GUARD RULES
The Waukesha County Collections Division derives its legal authority from various chapters of the
Wisconsin State Statutes and complies with all state and federal collection laws including, but not
limited to the Federal Fair Debt Practices Act, the Gramm -Leach -Bliley Act, FERPA and the Federal
Trade Commission's Red Flag Rules.
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SERVICES PROVIDED TO CLIENT
• Actual process of collection provided to Client includes, but is not limited to: collection letters,
phone calls, promises to pay, payments, monitoring payments, dispute resolution, skip -tracing,
interest and penalty calculation, asset searches, tax intercept, probate and bankruptcy filing.
• The Division acts as agent for Client to collect and receive all sums of money due or payable to
Client for claims referred to the Division for collection.
• The Division will use its best efforts to collect amounts due Client permitted by law.
• The Division will maintain records of accounts referred and will keep Client updated as to the
progress of the collection efforts through the following reports:
• An Acknowledgment Report is available through the Ecliptics client -view application
detailing the accounts referred to the Collection Division as a confirmation of receipt.
• Monthly Collections/Billing Statement sent 45 days following the last day of the month in
which payments were received.
• The Collection Division's Quarterly Status/Inventory Report/Performance Report sent upon
request.
• The Collection Division's Cancellation/Uncollectible Report, which is sent out 45 days after
the last day of the month the account was closed. This report will provide Client with the
necessary information to perform their write-offs.
"Wisconsin Tax refund Intercept Program (TRIP)"
In 1999 the Division established a relationship with the State of Wisconsin Department of
Revenue under Wis. Stat. 71.935 to intercept income tax returns. There is no additional cost
for this service as it is included in our base charge. Wisconsin Statute Section 66.0301
permits inter -governmental cooperation among municipalities and therefore provides the legal
authority to provide collection services to and enter into collection agreements with
municipalities.
"Description of latest skip tracing techniques"
Skip -tracing techniques that will be employed by the Collector to locate the debtor's current
location and/or employment in the event a debtor has moved and left no forwarding address
are:
An address trace and/or a credit bureau report may be utilized, which will list current
and past employers, home addresses, telephone numbers, social security numbers and
other creditors. With this information, the Collector is able to contact other creditors
who may have more current information regarding the debtor, including employment
and/or a home address for the debtor.
2. The Motor Vehicle Department, Wisconsin Circuit Court Access, Secretary of State,
DWD, the Internet and various address and telephone directories are used to trace and
locate the debtor.
The following County databases are accessed to locate updated information on the
debtor:
a. County Jail database. If the debtor has an arrest record or has been incarcerated,
information regarding debtor's employment, social security number, home and
work telephone numbers will be listed.
b. County Treasurer and Register of Deeds databases are used to find out ownership
of the debtor's listed address. The collector will then contact the owner of the
property to see if they might have updated information as to the whereabouts of the
debtor and/or his employment.
c. Civil and Small Claims Court databases to find out if any legal actions, including
divorce or paternity suits, have been filed against the debtor. This provides the
Collector with additional sources to contact in order to locate the debtor and his
assets.
"Data processing system"
Cubs Consulting, Inc. (CCI) was founded in 2000 as an alternative to vendor offerings for
custom programming and technology enhancements to The Collector System®. This
system, commonly referred to as the "CUBS System," is one of the most advanced
enterprise scale software systems available for streamlining the management and processing
of collection accounts and is widely used in many different industries.
Ecliptics Client -view program is a user-friendly system for our valued clients which will
allow our customers to view their account information on-line, access monthly reports,
convey payments and/or adjustments and submit referrals electronically for nearly
immediate confirmation and collection activity.
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EVALUATING COLLECTION COSTS AND EFFECTIVENESS
It is more important to base your decision on the effectiveness (Recovery Percentage) of a firm rather than on
which firm charges a lower collection rate. Following is an example that clearly illustrates this point:
A municipality has 160 delinquent accounts, each with a balance of $250 for a total of $10,000 in referrals. The
municipality received the following bids from outside collection agencies/attorneys:
1. Firm 1 sends out letters at a cost of $9.00/account.
2. Firm 2 sends out letters and makes some phone calls, but will not perform litigation.
Their cost is 25% of the amount collected.
3. Firm 3 sends out letters and makes many phone calls, but will not perform litigation.
Their cost is 40% of the amount collected.
4. Firm 4 sends out letters, makes many phone calls and will perform litigation.
Their cost is 50% of the amount collected.
The municipality could not make a decision as to which firm to use, so they decided to refer 40 accounts to each
firm. These are the results:
Fee for Amt Collected Flat fee - % Net Recovery Rate
Recovery % Recovery Cost to Collect Net Return to Client
Firm I $9.00/Acct.
$1,000.00
10%
($1,000/$10,000)
Firm 2 25% $1,500.00
15%
($1,500/$10,000)
$ 360.00 $ 640.00
6.4%
(40 @ $9.00each) ($640/$10,000)
$ 375.00 $1,125.00
11.2%
($1,500 x 25%) ($1,125/$10,000)
Firm 3 40% $2,000.00 $ 800.00 $1,200.00
20% 12%
($2,000/$10,000) ($2,000 x 40%) ($1,200/$10,000)
Firm 4 50% $3,000.00
30%
($3,000/$10,000)
$1,500.00 $1,500.00
15%
($3,000 x 50%) ($1,500/$10,000)
In the above example, Firm 1 had a Recovery Percentage of 10%, while Firm 4 had a 30% Recovery Percentage.
Even though Firm 4's Fee for Recovery was 500/o/dollar collected, its Net Return to the municipality was more
than twice as much as Firm 1. The difference in the Net Return to the municipality was greatly affected by the
dollars collected (Recovery Percentage).
Waukesha County customers experience this first hand when they place comparable accounts with two separate
firms. We charge 28 cents/dollar collected and we usually, at minimum, have nearly twice the Net Return to our
customers than their previous collection firm.
The bottom line consideration in evaluating collection results is your Net Recovery Percentage:
The Amount Recovered less Cost of Collection = Net Return to Client
Amount Placed for Collection
CLIENT FEES AND CHARGES
COMPENSATION/FEES/CHARGES
"Contingent Fee'
The Collection Division as an internal services fund distributes the cost of its services to its users.
Included in the Collection Division's fees are all associated costs of collection, i.e., personnel, letters,
telephone calls, tax intercept, credit reports, court filing fees, process service fees, etc. Our fee is
100% performance based, if there is no collection, there is no charge. Our current contingent fee is
28% of the amount collected. This contingent fee will never increase over 28%. Our motive is not to
generate profits but to allocate the costs of our operation to users. If the number of users of our
services increases, and our corresponding collections increase, the cost of our service is likely to
decrease to our clients.
As an alternative option, current clients have opted to pass the collection fee onto the debtor through
various methods. Some clients coordinate with their billing service to incorporate language on their
billing statements and/or Signature form. This language references the collection fee or costs
associated with the collection of the account is the patient's financial responsibility. We also have
clients that have passed a Resolution amending their fee schedule to include the entire collection fee as
the responsibility of the patient. Personal property taxes are excluded from these alternative options.
COLLECTION AGENCY FEES
In the event that we have exhausted all of our collection efforts and our Client has approved
forwarding the account to a collection agency, we will also be responsible for all payments to the
collection agency.
TAX INTERCEPT FEES
All tax intercept costs are paid by the Division and included in our contingent fee.
REMITTANCE/BILLING OPTIONS
Net - Under the net method the monthly check we remit to you is the net of the amounts
collected after deducting our contingent fee. For example: If we collected $1,000 from
referred accounts in a month we would send you a check for $720 ($1,000 less our contingent
fee of $280).
m
CLIENT REFERRAL PROCEDURE
Upon receipt of the referred account through the Ecliptics Client -view program, the account is
uploaded into the automated collection system and the following occurs:
A. An Acknowledgment Report is available on-line as confirmation which details the
account information of the referred debts to the Collection Division.
B. A series of collection letters are mailed to the debtor during the first 45 days of
assignment to encourage immediate contact or payment in full. The first initial placement
letter is generated within 1 day of entry of the referral, the second is generated 30 days
after the initial placement letter, and the final 72 hour demand letter is sent 11 days
thereafter.
Account assigned to a Collection Specialist after 30 days from the date of assignment. The Collector
will apply a more focused and hands on concentrated effort to amicably resolve the account. The
Collector's main objective is full collection of the account according to the policies set forth by the
Division using the most efficient means possible. Our Client is asked to provide the Division with the
following account information for each referral.
A. The following information is required for each account referred:
1. A copy of the documentation supporting the debt, judgment or citation.
2. Debtor's name, last known address, telephone number(s)
3. Amount due, date of offense and date of disposition.
B. The following account information should be included with a referral if available:
1. Social security number
2. Date of birth
3. Employer, including address and telephone numbers
4. References, or other contacts
5. Any other applicable information that may be helpful in the collection process
The more information provided to the Division, the more efficient, effective and cost saving the
collection procedure will be.
"Process/ex erience agency has charging collection ees to debtors'
The Waukesha County Collection Division currently services clients for ambulance fees where our
collection charge is added to the debtor's account thus resulting in a 75% upper range recovery rate.
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RED FLAG RULE
TITLE: EFFECTIVE DATE:
IDENTITY THEFT PREVENTION PROGRAM April 28, 2009
Purpose
To establish an Identity Theft Prevention Program designed to detect, prevent and mitigate identity
theft in connection with the opening of a covered account or an existing covered account and to
provide for continued administration of the Program in compliance with the Federal Trade
Commission's Red Flags Rule (Part 681 of Title 16 of the Code of Federal Regulations) implementing
Sections 114 and 315 of the Fair and Accurate Credit Transactions Act (FACTA) of 2003.
Under the Red Flag Rule, every financial institution and creditor is required to establish an "Identity
Theft Prevention Program" tailored to its size, complexity and the nature of its operation. Each
program must contain reasonable policies and procedures to:
1. Identify relevant Red Flags for new and existing covered accounts and incorporate those Red
Flags into the Program;
2. Detect Red Flags that have been incorporated into the Program;
3. Respond appropriately to any Red Flags that are detected to prevent and mitigate Identity
Theft; and
4. Ensure the Program is updated periodically, to reflect changes in risks to customers or to the
safety and soundness of the creditor from Identity Theft.
Definitions
Identifying information means any name or number that may be used, alone or in conjunction with any
other information, to identify a specific person, including: name, address, telephone number, social
security number, date of birth, government issued driver's license or identification number, alien
registration number, government passport number, employer or taxpayer identification number, unique
electronic identification number, computer's Internet Protocol address, or routing code.
Identity theft means fraud committed or attempted using the identifying information of another person
without authority.
A covered account means:
1. An account that a financial institution or creditor offers or maintains, primarily for personal,
family, or household purposes that involves or is designed to permit multiple payments or
transactions. Covered accounts include those where the County provides a service to its citizen
and collect the payment at a later date, and;
2. Any other account that the financial institution or creditor offers or maintains for which there is
a reasonably foreseeable risk to customers or to the safety and soundness of the financial
institution or creditor from identity theft, including financial, operational, compliance,
reputation or litigation risks.
A red flag means a pattern, practice or specific activity that indicates the possible existence of identity
theft.
RED FLAG RULE CONTINUED
Policy
A. IDENTIFICATION OF RED FLAGS. The Waukesha County Collection Division identifies the
following red flags, in each of the listed categories:
Suspicious Documents
i. Identification document or card that appears to be forged, altered or inauthentic;
ii. Identification document or card on which a person's photograph or physical
description is not consistent with the person presenting the document;
iii. Other document with information that is not consistent with existing customer
information (such as if a person's signature on a check appears forged); and
iv. Application for service that appears to have been altered or forged.
2. Suspicious Personal Identifying Information
i. Identifying information presented that is inconsistent with other information the
customer provides (example: inconsistent birth dates);
ii. Identifying information presented that is inconsistent with other sources of
information (for instance, an address not matching an address on a credit report);
iii. Identifying information presented that is the same as information shown on other
applications that were found to be fraudulent;
iv. Identifying information presented that is consistent with fraudulent activity (such as
an invalid phone number or fictitious billing address);
V. Social security number presented that is the same as one given by another customer;
vi. An address or phone number presented that is the same as that of another person;
vii. A person fails to provide complete personal identifying information on an
application when reminded to do so (however, by law social security numbers must
not be required); and
viii. A person's identifying information is not consistent with the information that is on
file for the customer.
Suspicious Account Activity or Unusual Use of Account
i. Change of address for an account followed by a request to change the account
holder's name;
ii. Payments stop on an otherwise consistently up-to-date account;
iii. Account used in a way that is not consistent with prior use (example: very high
activity);
iv. Mail sent to the account holder is repeatedly returned as undeliverable;
V. Notice to the Waukesha County Collection Division that a customer is not receiving
mail sent by the Waukesha County Collection Division;
vi. Notice to the Waukesha County Collection Division that an account has
unauthorized activity;
vii. Breach in the Waukesha County Collection Division's computer system security;
and
viii. Unauthorized access to or use of customer account information.
E
RED FLAG RULE CONTINUED
4. Alerts from Others
i. Notice to the Waukesha County Collection Division from a customer, identity theft
victim, law enforcement or other person that it has opened or is maintaining a
fraudulent account for a person engaged in Identity Theft.
B. DETECTING RED FLAGS.
New Accounts. In order to detect any of the Red Flags identified above associated with the
forwarding of a new referral account, Waukesha County Collection Division personnel will
take the following steps to obtain and verify the identity of the person (herein referred to as
"debtor") whom is the financial and legal responsible party listed on the Client's referral:
i. Require certain identifying information such as name, date of birth, residential or
business address, principal place of business for an entity, driver's license or other
identification;
ii. Verify the debtor's identity (for instance, review a driver's license or other
identification card).
2. Existing Accounts. In order to detect any of the Red Flags identified above for an existing
account, Waukesha County Collection Division personnel will take the following steps to
monitor transactions with an account:
i. Verify the identification of customers if they request information (in person, via
telephone, via facsimile, via email);
ii. Verify the validity of requests to change billing addresses; and
iii. Verify changes in banking information given for billing and payment purposes.
C. PREVENTING AND MITIGATING IDENTITY THEFT. In the event Waukesha County
Collection Division personnel detect any identified Red Flags, such personnel shall take one or
more of the following steps, depending on the degree of risk posed by the Red Flag:
Prevent and Mitigate
i. Continue to monitor an account for evidence of Identity Theft;
ii. Contact the debtor and/or Client;
iii. Document appropriate findings in CUBS on debtor's account;
iv. Do not enter a new referral from same Client without verifying information;
V. Discontinue collection efforts upon verification of fraudulent activity;
vi. Notify the Waukesha County Collection Division Manager for determination of the
appropriate step(s) to take;
vii. Notify law enforcement; and/or
viii. Determine that no response is warranted under the particular circumstances.
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RED FLAG RULE CONTINUED
2. Protect customer identifying information
i. In order to further prevent the likelihood of identity theft occurring with respect to
Waukesha County Collection Division accounts, the Waukesha County Collection
Division will take the following steps with respect to its internal operating
procedures to protect customer identifying information:
ii. Ensure that its website is secure or provide clear notice that the website is not
secure;
iii. Ensure complete and secure destruction of paper documents and computer files
containing customer information;
iv. Ensure that office computers are password protected and that computer screens lock
after a set period of time;
V. Keep offices locked and inaccessible to the public or customers;
vi. Ensure computer virus protection is up to date; and
vii. Require and keep the kinds of client and/or debtor information that are necessary
until the records are destroyed according to the policy of Records Management
Detention.
D. PROGRAM UPDATES. This Program will be periodically reviewed and updated to reflect changes
in risks to the clients and debtor's and the soundness of the Waukesha County Collection Division
from Identity Theft. The Waukesha County Collection Division Manager will consider the Waukesha
County Collection Division's experiences with Identity Theft situation, changes in Identity Theft
methods, changes in Identity Theft detection and prevention methods, changes in types of accounts the
Waukesha County Collection Division maintains and changes in the Waukesha County Collection
Division's business arrangements with other entities. After considering these factors, the Waukesha
County Collection Division Manager will determine whether changes to the Program, including the
listing of Red Flags, are warranted. If warranted, the Waukesha County Collection Division Manager
will implement the program changes.
E. PROGRAM ADMINISTRATION
1. Oversight. Responsibility for developing, implementing and updating this Program lies
with the Waukesha County Collection Division Manager. The Waukesha County
Collection Division Manager will be responsible for the Program administration, for
ensuring appropriate training of Waukesha County Collection Division staff on the
Program, for reviewing any staff reports regarding the detection of Red Flags and the steps
for preventing and mitigating Identity Theft, determining which steps of prevention and
mitigation should be taken in particular circumstances and considering periodic changes to
the Program.
2. Staff Training and Reports. Waukesha County Collection Division staff responsible for
implementing the Program shall be trained either by or under the direction of the Waukesha
County Collection Division Manager or Senior Collections Specialists in the detection of
Red Flags, and the responsive steps to be taken when a Red Flag is detected. Waukesha
County Collection Division staff is required to provide reports to the Program
Administrator on incidents of Identity Theft, the Waukesha County Collection Division's
compliance with the Program and the effectiveness of the Program.
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RED FLAG RULE CONTINUED
Specific Program Elements and Confidentiality. For the effectiveness of Identity Theft
prevention Programs, the Red Flag Rule envisions a degree of confidentiality regarding the
Waukesha County Collection Division's specific practices relating to Identity Theft
detection, prevention and mitigation. Therefore, under this Program, knowledge of such
specific practices are to be limited to the Identity Theft Committee and those employees
who need to know them for purposes of preventing Identity Theft. Because this Program is
to be adopted by a public body and thus publicly available, it would be counterproductive to
list these specific practices here. Therefore, only the Program's general red flag detection,
implementation and prevention practices are listed in this document.
Authority & Revisions
This policy is enacted immediately upon approval of the Waukesha County Board meeting scheduled
for April 28, 2009. Revisions to this policy shall only be enacted when approved by the Waukesha
County Board and reflected in the applicable meeting minutes. This policy shall be reviewed at least
biennially by the Waukesha County Collection Division Manager with presentations after each review
to the Finance Committee.
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SUMMARY
The Waukesha County Collection Division's mission is to:
1. Provide financially responsible centralized collection services to its customers.
2. Generate savings to taxpayers by ensuring that all dollars owed are collected in the timeliest, most
efficient and cost-effective manner possible in compliance with all laws, rules and regulations.
3. Strive toward a fair and equitable balance between parties who received goods and services and
taxpayers who bear the cost/burden of unpaid goods and services.
While it is not the desire of the County to be in direct competition with private industry, it is felt that The
Division's experience in the collection of these more unique and difficult types of public sector billings
has proven beneficial to municipalities with the overall objective of cost savings being passed on to the
taxpayers of Waukesha County. The Division's costs are completely performance based and promote
inter -governmental cooperation and savings to taxpayers.
Waukesha County Collection Division has the staff, knowledge, resources, experience and proven track
record to provide exceptional service and results in collecting on the Client's behalf. Clients served by
the Division continue to increase each year. Our customers' satisfaction is evidenced by our high
percentage of success in retaining our customers.
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DELINQUENT ACCOUNT COLLECTION SERVICES AGREEMENT
This contractual agreement is entered into this day of , 2017, by and
between the City of Oshkosh hereinafter referred to as "Purchaser" and Waukesha County, hereinafter
referred to as "Provider."
WHEREAS:
A. Section 66.0301 Wisconsin Statutes permits inter -governmental cooperation among
municipalities, and
B. Provider represents it has legal authority to provide collection services and to enter into
collection contracts with municipalities, and
C. Provider has established a Collection Division within the Department of Administration for the
purpose of collecting delinquent obligations due the County, and
D. Provider has agreed to offer the services supplied by the Collection Division to other units of
government within the State of Wisconsin, and
E. Purchaser desires Provider to undertake collection of Purchaser's delinquent personal
property taxes, accounts receivable and other evidences of indebtedness from time to time,
in the manner and under the terms and conditions hereinafter set forth.
NOW THEREFORE, in consideration of the mutual undertaking and agreements hereinafter set
forth, Purchaser and Provider agree as follows:
1. SERVICES PROVIDED
a. Purchaser designates Provider as its agent to collect and receive all sums of money due or
payable to Purchaser for accounts which Purchaser refers to Provider for collection.
b. Provider shall accept accounts placed for collection by Purchaser. Provider will use its best
efforts to collect said amounts due Purchaser. Provider will use only ordinary and reasonable
collection efforts as permitted by law.
Purchaser and Provider define Actual Process of Collection to include, but not limited to,
collection letters, phone calls, accepting promises to pay, payments, dispute resolution, skip -
tracing, interest and penalty calculation, asset searches.
d. Provider shall have the authority to receive payment in cash, check or money order and shall
have authority to endorse checks, drafts, money orders and other negotiable instruments, which
may be received in payment on behalf of the Purchaser. Provider shall have authority to certify
to the Department of Revenue on behalf of the Purchaser accounts placed for collection by
Purchaser so as to intercept state tax refunds to be applied in payment of those accounts.
e. Purchaser shall supply Provider with notification of payments made directly to Purchaser on
accounts assigned to Provider. Purchaser shall pay the collection fee on these amounts.
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f. Provider agrees to provide Purchaser with justification for accounts cancelled or returned as
uncollectable.
g. Purchaser will notify Provider of bankruptcy notices received on accounts referred for
collection. Provider is authorized to file bankruptcy claims on behalf of the Purchaser when
Provider receives supporting copies of the bankruptcy documentation within the allowed filing
period and within a reasonably amount of time. The Provider is not responsible for any missed
bankruptcy filing deadlines. In the event that any legal action is required after the filing of a
claim, it shall be the responsibility of the Purchaser to obtain legal counsel and pursue such
legal action. Purchaser will notify Provider in the event Purchaser files a bankruptcy claim on
an account that Purchaser referred to Provider for collection.
h. Provider will not provide legal advice or services for Purchaser. If an account is deemed
uncollectable through standard collection practices by the Provider, the Provider can cancel the
account and return it to the Purchaser for litigation.
2. APPLICATION OF PAYMENTS RECEIVED FROM ASSIGNED ACCOUNTS
Provider will be responsible for applying payments to accounts referred for collection.
Payments will be applied to referred account balances according to the following hierarchy:
Collection fees; if Purchaser requests these be recovered from the party assigned for
collection.
2. Accrued interest and/or penalty as allowed by Statute and
The principal amount of the debt.
4. Any additional charges added by the Purchaser.
3. FEE FOR SERVICES AND PAYMENT
Provider will remit all monies received on a net basis to Purchaser in the form of a check within
45 (forty-five) days following the last day of the month in which payment(s) were received.
Provider will also provide a copy of the monthly collections detail and monthly service fee
summary. The collection fee is 28% on all amounts collected. For purposes of the
proportionate distribution of collected delinquent personal property taxes under 74.42(2), Stats,
which were charged back under 74.42(l), Stats, the 28% collection fee shall be the cost of
collecting those taxes.
4. RECORDS/REPORTING
a. Provider shall maintain records of accounts referred to it for collection. For personal property
tax collection referrals, Provider is responsible for calculating interest and penalty as allowed
by Wis. Stat. Sec. 74.47.
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b. Provider will provide the following reports to Purchaser:
Acknowledgment Report - At the time an account is received for assignment by
Provider from Purchaser.
2. Monthly Collections/Billing Statement - 45 (forty-five) days following the last day of
the month in which payment(s) were received.
Status/Inventory Report on Assigned Accounts - 15 (fifteen) days following Purchaser
request.
4. Cancellation/Uncollectable Report - 45 (forty-five) days following the last day of the
month the account was cancelled.
5. SETTLEMENTS
No offer of compromise or settlement will be accepted by the Provider on any referred account
without the express written authorization of the Purchaser. The Provider is not, however,
prevented from accepting partial or installment payments on an account.
6. INDEMNIFICATION AND DEFENSE OF SUITS
Each party agrees that it shall indemnify the other party against any loss or liability
incurred by the other party in connection with the event or activity under this contract,
however, it is expressly understood and agreed that the liability of each party, its
employees and agents on any claims brought by the other party, its employees and
agents, whether for contribution, indemnification or otherwise, shall not exceed and are
governed by the provisions of Wisconsin Statute, Chapter 893, including the limit on
the amount recoverable.
7. INSURANCE
The County agrees to provide the City of Oshkosh a certificate of Insurance evidencing the
County's general liability coverage for a minimum of $1,000,000 per occurrence within 30
days of a written request. Should any insurance policy be canceled before the expiration date
of this Agreement, the issuing company must provide ten (10) days written notice to the City of
Oshkosh. A company licensed to do business in the state of Wisconsin or signed by an agent
licensed by the state of Wisconsin must issue the insurance certificate. Failure to submit an
insurance certificate can make this Agreement voidable at the City of Oshkosh's discretion.
8. AMENDMENT
This agreement may be amended only upon mutual agreement of Purchaser and Provider which
is reduced to writing.
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9. TERM OF AGREEMENT
The term of this agreement will be one year from "insert date of contract". This agreement will
automatically renew for successive one-year periods unless one of the parties gives written
notice of termination or the agreement is amended at least 30 (thirty) days prior to the next
renewal.
10. CANCELLATION
1. This agreement may be cancelled for any reason by either party upon 30 (thirty) days
advance written notification. Upon cancellation, each term of the contract shall
continue to apply to any and all accounts that remain with provider. In the event of
cancellation Provider will cancel and return accounts except that Provider will be
entitled to retain an account and earn fees for collection on such account if:
a. There has been a payment received on account within 60 (sixty) days preceding receipt
of cancellation, or
b. Provider has a documented promise of payment on a debtor account prior to receipt of
notice of cancellation.
Accounts retained will be cancelled and returned following:
a. Payment in full, or
b. A period of 60 (sixty) days without receipt of a payment.
11. ENTIRE AGREEMENT
This Agreement, along with any amendments hereto, encompasses the entire agreement of the
parties, and supersedes all previous understandings and agreements between the parties,
whether oral or written.
IN WITNESS WHEREOF, the parties have affixed their signatures below on this day of
2017.
City of Oshkosh Waukesha County
by: by:
(Signature of authorized official and title) Andrew Thelke
Collections and Business Services Manager
(Address of organization)
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