The City of Rockwood is accepting Request for Proposals for a collection agency to collect unpaid fines and costs assessed by the Municipal Court when those fines and costs have remained delinquent for more than 60 days.
According to the terms of Ordinance 12-75 passed by the Rockwood City Council on second reading on December 28, 2020:
The City of Rockwood is hereby authorized to solicit and use the services of a collection agency to collect unpaid fines and costs. Requests for Proposals are being solicited in accordance with the City’s purchasing procedures.
Any contract with a collection agency shall be approved by City Council and shall be in writing as required by Tennessee Code Annotated §40-24-105(e)(3), and in all respects shall comply with the requirements of Tennessee Code Annotated §40-24-105(e).
The contract with such collection agency may also include the collection of unpaid parking fines as authorized by Tennessee Code Annotated §6-54-513, after notices required by law are mailed to registered vehicle owners.
The use of Collection Agency, Vendor, and/or Proposer is considered the same in this document. Information contained in this Request for Proposal (RFP) shall become part of the contract with the collection agency.
The Proposer shall:
- Provide an original and three copies of their proposal.
- Provide and further authorize the below Proposal Packet items 1-9 on this form.
- Proposers should note any deviation from items requested by this request for proposal.
- Your firm’s proposal must be signed and dated by a principal of the business.
- Your proposal must be received by close of business (4:30 p.m.) on October 21, 2021 and will be considered at the October 25, 2021 meeting of the City Council.
- Return all pages signed and dated.
Proposal Packet (original and three copies) shall include the following information:
- Statement summarizing your proposal and fee structure (any changes in fee structure on extension of the contract for three years, if applicable).
- Copy of current license issued by the Tennessee Collection Service Board.
- Copy of the collection agency’s bond.
- Copy of business tax license.
- Tape release agreements with at least two national credit-reporting services.
- Sample collection service contract including fee schedule.
- Sample of remittance reports.
- Sample of correspondence to debtors.
- Firm information including:
a. List of references
b. Years your firm has been in business
c. Experience in court related collections
d. Agency’s staffing and experience
e. List the five (5) most recent projects that the company has provided collection agency services. List company name, contact person, phone numbers, and address.
Scope of the Contract
The contract shall:
- Be executed within 30 days after the City of Rockwood has notified the vendor.
- Provided a notice of written cancellation of not more than 30 days in the event that either party wishes to exit the contract. No cause or justification shall be needed for the cancellation of the contract.
- Provide for a renewal on a yearly basis up to three (3) additional years if agreed upon by both parties.
- Ensure that funds collected on the city’s behalf shall be placed in a secured account to prevent loss of funds. Payments remitted to the City by the tenth (10th) of each month’s collections with a detailed report.
- Stipulate that the Collection Agency is an independent contractor and not that of an agent, servant, or employee. The Collection Agency shall have no power or authorization to bind or otherwise obligate any city.
- State the amount of the commission charge of the Collection Agency and that this charge shall be the total cost to the city.
- Outline and stipulate the receiving and payment cycles on individual accounts and payment account to the city. This reporting shall be done on a monthly basis.
- Shall state that the city shall have access and can audit the Collection Agency’s books at any time.
- Shall state and ensure that the city shall be protected and held harmless against any claims related to delinquent accounts.
- Must provide electronic media access to the unpaid accounts, if requested.
- Be able to report unpaid accounts to at least two of the national credit reporting repositories.
- Shall ensure that no compromise settlement shall be accepted by the Collection Agency without a written consent by the city.
- Shall stipulate when accounts are no longer being sought for collection by the Collection Agency.
- Shall provide proof of General Comprehensive Liability insurance with the city as named insurer.