City Council - Successor Agency - Housing Authority
June 18, 2024

CITY OF FULLERTON

PROFESSIONAL SERVICES AGREEMENT
WITH
RSI ENTERPRISES, INC.

THIS AGREEMENT is made and entered into this 18
TH day of JUNE, 2024 (“Effective
Date”), by and between the CITY OF FULLERTON, a California municipal corporation (“City”), and RSI ENTERPRISES, INC, a California corporation (“Consultant”).

W I T N E S S E T H :

A. City proposes to utilize the services of Consultant as an independent contractor to perform on-call Debt Collection Services for the City of Fullerton to collect outstanding fees and other delinquent charges or accounts owed to the City of Fullerton, as more fully described herein.

B. Consultant represents that it has that degree of specialized expertise contemplated within California Government Code section 37103, and holds all necessary licenses to practice and perform the services herein contemplated.

C. City and Consultant desire to contract for the specific services described herein, and desire to set forth their rights, duties and liabilities in connection with the services to be performed.

D. No official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

1.0. SERVICES PROVIDED BY CONSULTANT

1.1. Scope of Services.

Consultant shall provide the professional services described in the Scopes of Services & Fees Schedule attached hereto as Exhibit A and incorporated herein by this reference.

1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws and regulations that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement.

1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the reasonable satisfaction of the City, in accordance with the applicable professional standard of care and City specifications and within the hereinafter specified. Evaluations of the work will be done by the City Manager or his designee. If the quality of work is not satisfactory, City in its discretion has the right to:

(a) Meet with Consultant to review the quality of the work and resolve the matters of concern;

(b) Require Consultant to repeat the work at no additional fee until it is Professional Services Agreement
RSI Enterprises, Inc.

satisfactory; and/or

(c) Terminate the Agreement as hereinafter set forth.

1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable and non conflicting Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employ ment and employment practices; workers’ compensation insurance and safety in employm ent; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Consultant’s performance under this Agreement.

1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code.

1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services sim ilar to the services that are subject to this Agreement or may have its own employees per form services similar to those services contemplated by this Agreement.

1.7. Delegation and Assignment. This is a personal service contract, and the duties set forth herein shall not be delegated or assigned to any person or entity without the prior written consent of City. Consultant may engage a subcontractor(s) as permitted by law and may employ other personnel to perform services contemplated by this Agreement at Consultant’s sole cost and expense.

1.8. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclos ure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement.

2.0. COMPENSATION AND BILLING

2.1. Compensation. Consultant shall be paid in accordance with the Fee Schedule as set forth in Exhibit A.

2.2. Additional Services. Consultant may perform the additional services per the fee rates in Fee Schedule referenced in Consultant’s Proposal attached hereto as Exhibit B, which must be prescribed in writing and incorporated herein by this reference if specifically engaged to do so by City. Consultant shall not receive compensation for any services provided outside the Professional Services Agreement
RSI Enterprises, Inc.

scope of services specified in Exhibit A unless the City or the Project Manager for this Project, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

2.3. Method of Billing. Consultant may s ubmit invoices to the City for approval on a progress basis, but no more often than two times a month. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail, the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.

2.4. Records and Audits. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City or its Project Manager for inspection and/or audit at mutually convenient times from the Effective Date of this Agreement until three (3) years after the termination date.

2.5. W-9. Consultant must provide City with a current W-9 form prior to the commencement of work under this Agreement. It is the Consultant’s responsibility to provide to the City any revised or updated W-9 form during the term of this Agreement.

3.0. TIME OF PERFORMANCE

3.1. Commencement and Completion of Work. As this is an On-Call agreement and work is determined on basis of need and availability, professional services may be performed pursuant to this Agreement any time after the Effective Date of this Agreement. Failure to commence work in a timely manner and/or diligently pursue work to completion when requested may be grounds for termination of this Agreement.

3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party.

4.0. TERM AND TERMINATION

4.1. Term. This Agreement shall commence on the Effective Date for a three (3) year term through June 17, 2027, and includes two (2) one-year renewal options at the City’s discretion through June 17, 2029, unless terminated as provided herein.

4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing written notice to Consultant.

The termination of this Agreement shall be deemed effective upon receipt of the notice of termination. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City.

4.3. Compensation. In the event of termination, City shall pay Consultant for Professional Services Agreement
RSI Enterprises, Inc.

reasonable costs incurred and professional services satisfactorily performed up to and including the date of City’s written notice of termination. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. In ascertaining the professional services actually rendered hereunder up to the effective date of termination of this Agreement, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents pertaining to the services contemplated herein whether delivered to the City or in the possession of the Consultant.

4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of delivery of termination notice to Consultant, at no cost to City. Any use of uncompleted documents without specific written authorization from Consultant shall be at City's sole risk and without liability or legal expense to Consultant.

5.0. INSURANCE

5.1. Insurance Required. Consultant shall procure and maintain throughout the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Consultant, its agents, representatives, employees or subcontractors. Consultant shall provide current evidence of the required insurance in a form acceptable to City and shall provide replacement evidence for any required insurance which expires prior to the completion, expiration, or termination of this Agreement.

Nothing in this section shall be construed as limiting in any way, the Indemnification and Hold Harmless clause contained herein in Section 6.8 or the extent to which Consultant may be held responsible for payments of damages to persons or property.

5.2. Minimum Scope and Limits of Insurance.

A. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance coverage in a form at least as broad as ISO Form #CG 00 01, with a limit of not less than $2,000,000 each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to the Agreement or shall be twice the required occurrence limit.

B. Business Automobile Liability Insurance. Consultant shall maintain business automobile liability insurance coverage in a form at least as broad as ISO Form # CA 00 01, with a limit of not less than $1,000,000 each accident. Such insurance shall include coverage for owned, hired and non-owned automobiles.

C. Workers’ Compensation and Employers’ Liability Insurance. Consultant shall maintain workers’ compensation insurance as required by the State of California and employers’ liability insurance with limits of not less than $1,000,000 each accident.

D. Professional Liability Insurance. Consultant shall maintain professional liability insurance appropriate to Consultant’s profession with a limit of not less than $2,000,000 per occurrence or claim and $2,000,000 aggregate. If policy is written as a “claims made” policy, the retro date of the policy shall be prior to the start of the contract work.

Professional Services Agreement
RSI Enterprises, Inc.

E. Employee/Officer Fidelity Bond. Consultant shall maintain a fidelity bond with a minimum limit of $1,000,000, providing coverage for the acts of all employees, officers and directors of Consultant.

F. Cyber Liability Insurance. Consultant shall maintain cyber liability insurance coverage with a limit of not less than $2,000,000 per claim and $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Consultant in this Agreement and shall include but not be limited to claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security.

The policy shall provide coverage for breach response costs as well as regulatory fines, penalties and credit monitoring expenses with limits sufficient to respond to these obligations.

5.3. Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be declared to and approved by City.

5.4. Other Insurance Provisions. The required insurance policies shall contain or be endorsed to contain the following provisions:

A. Commercial General Liability. City, its elected or appointed officials, officers, employees and volunteers are to be covered as additional insureds with respect to liability arising out of work or operations performed by or on behalf of Consultant, including materials, parts or equipment furnished in connection with such work or operations. Such coverage as an additional insured shall not be limited to the period of time during which Consultant is conducting ongoing operations for City but rather, shall continue after the completion of such operations. The coverage shall contain no special limitations on the scope of its protection afforded to City, its officers, employees and volunteers.

B. Commercial General Liability. This insurance shall be primary insurance as respects City, its officers, employees and volunteers and shall apply separately to each insured against whom a suit is brought or a claim is made. Any insurance or self-insurance maintained by City, its officers, employees and volunteers shall be excess of this insurance and shall not contribute with it.

C. Professional Liability. If the Professional Liability policy is written on a “claims made” form, the Retroactive Date must be shown and must be before the date of the contract or beginning of contract work. The insurance must be maintained and evidence of insurance must be provided for at least (5) years after completion of the contract work. If the coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting coverage” for a minimum of five (5) years after completion of work.

D. Workers’ Compensation and Employers’ Liability Insurance. Insurer shall waive their right of subrogation against City, its officers, employees and volunteers for work done on behalf of City.

E. Employee/Officer Fidelity Bond, City shall be named as third party beneficiary for losses arising from work done on behalf of City.

F. All Coverages. Each insurance policy required by this clause shall be Professional Services Agreement
RSI Enterprises, Inc.

endorsed to state that coverage shall not be canceled, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to City.

If Consultant maintains higher limits or has broader coverage than the minimums shown above, City requires and shall be entitled to all coverage, and to the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.

G. Subcontractors. Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein and Consultant shall ensure that City is an additional insured on insurance required from subconsultants.

H. Special Risks or Circumstances. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage or other special circumstances.

5.5 Acceptability of Insurers. All required insurance shall be placed with insurers acceptable to City with current BEST’S ratings of no less than A, Class VII. Workers’ compensation insurance may be placed with the California State Compensation Insurance Fund.

All insurers shall be licensed by or hold admitted status in the State of California. At the sole discretion of City, insurance provided by non-admitted or surplus carriers with a minimum BEST’S rating of no less than A- Class X may be accepted if Consultant evidences the requisite need to the sole satisfaction of City.

5.6 Verification of Coverage. Consultant shall furnish City with certificates of insurance which bear original signatures of authorized agents and which reflect insurers names and addresses, policy numbers, coverage, limits, deductibles and self-insured retentions.

Additionally, Consultant shall furnish copies of all policy endorsements required herein. All certificates and endorsements must be received and approved by City before work commences.

City reserves the right to require at any time complete, certified copies of any or all required insurance policies and endorsements.

6.0. GENERAL PROVISIONS

6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement.

6.2. Representatives. The City Manager or his designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.

Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement.

Professional Services Agreement
RSI Enterprises, Inc.

6.3. Project Managers. City shall designate a Project Manager to work directly with Consultant in the performance of this Agreement.

Consultant shall designate a Project Manager who shall represent it and be its agent in all consultations with City during the term of this Agreement. Consultant or its Project Manager shall attend and assist in all coordination meetings called by City.

6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, facsimile or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by facsimile; and c) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.

IF TO CONSULTANT: IF TO CITY:

RSI ENTERPRISES, Inc.
5440 W. Northern Avenue
Attn: Christian P. Ulrich,
Chief Executive Officer

City of Fullerton
303 W. Commonwealth Ave.

Fullerton, CA 92832
Attn: Tonette Smart, Deputy Director of
Administrative Services

6.5. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereu nder or the enforcement of any of the terms, conditions, or provisions hereof.

6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California.

6.7. Assignment. Consultant shall not vo luntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement.

Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement.

6.8. Indemnification and Hold Harmless. To the fullest extent of the law, Consultant agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers, agents, and employees, at Consultant’s sole expense, from and against claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents, and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the professional services undertaken pursuant to this Agreement. The defense obligation Professional Services Agreement
RSI Enterprises, Inc.

provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents, and employees based upon the work performed by Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable.

Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints, or suits arising out of the sole negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.

6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.

Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.

6.10. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

6.11. Cooperation. In the event any claim or action is brought against City relating to Professional Services Agreement
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Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require.

6.12. Ownership of Documents. All findings, reports, CAD drawings, documents, information and data, including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any fo rm, including but not limited to, computer tapes, discs, files, audio tapes or any other Project related items as requested by City or its authorized representative, at no additional cost to the City.

6.13. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq .).

Exceptions to public disclosure may be those doc uments or information that qualify as trade secrets, as that term is defined in the California Government Code Section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any tr ade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.

6.14. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code Sections 81000, et seq.) and Government Code Section 1090.

During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subconsultants to abstain from a decision under this Agreement pursuant to a conflict of interest statute.

6.15. Responsibility for Errors. Consultant shall be responsible for its work under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, without prejudice to any other remedy to which City may be entitled to at law or equity, Consultant shall, at no cost to City, provide all necessary design drawings, estimates and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. In addition, Consultant shall reimburse City for any and all costs, expenses and/or damages, if any, that the City has incurred due to the aforementioned error or omission.

Professional Services Agreement
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6.16. Prohibited Employment. Consultant w ill not employ any regular employee of City while this Agreement is in effect.

6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.

6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the perfo rmance of its obligations hereunder except as expressly provided herein.

6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.

6.20. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

6.21. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

6.22. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.

6.23. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

6.24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

6.25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall

Professional Services Agreement

EXHIBIT A

SCOPE OF SERVICES & FEE SCHEDULE

Professional Services Agreement

EXHIBIT B

CONSULTANT’S PROPOSAL

Please note the following sections of the Consultant’s original proposal (101 pages) were removed at the request of the Consultant due to confidential and propriety information or found unnecessary in the inclusion of the professional services agreement:

 CLIENT LIST/EXPERIENCE (REDACTED – PGS. 6-7 OF 101

 REFERENCES – PG. 17 OF 101

 RESUMES – PGS. 63 – 67 OF 101

 ATTACHMENTS – PGS. 71 – 101 OF 101

Professional Services Agreement

EXHIBIT C

CERTIFICATES OF INSURANCE & W-9

EXHIBIT A

SCOPE OF SERVICES & FEE SCHEDULE
I
ntroduction
The City of Fullerton (City) is requesting proposals from qualified firms to perform Debt Collection Services for the City of Fullerton to collect outstanding fees and other delinquent charges or accounts owed to the City of Fullerton. The City is seeking to establish an On-Call List and may enter into professional services agreements with up to three (3) firms based on number of qualified proposers, types of collection services and availability of firms. Examples of debt collection services sought and other delinquent charges or accounts owed to the City of Fullerton include (but are not limited to):
(a) Utility Services Accounts – Includes water utility, sewer and sanitation charges, and refuse (trash) billings;
(b) General & Miscellaneous Billings – Includes City leases, false alarms, Airport hangar and tie-downs, property damages and other miscellaneous fees; (c) Public Works fees, building and code enforcement violations; (d) Debt collection services not collected or performed from third-party City billing services’ providers (i.e. false alarm, ambulance billings, parking citation); (e) Other debts that may come due to the City.

The City is seeking qualified Firm(s) who can demonstrate competency and experience in providing municipal debt collection services for public agencies, with particular focus with cities with utility services and/or utility agencies (i.e. water, sewer, refuse). The City seeks an experienced and effective firm that minimizes City costs, maximizes the use of available technology, provides excellent client service, and performs thorough and complete collections.

The City is also seeking an experienced and effective firm that offers the most competitive rates, maximizes revenue recovery and presents best overall value to the City.

The City desires to enter into a three (3) year agreement term, with two (2) optional one-year extension periods at the City discretion based on performance and satisfactory work and services.

By qualifying on the On-Call List, this does not guarantee a determined amount of work and firms and work will be assigned based on service need, availability and type of collections needed on an on-going basis.

Scope of Services
The Scope of Work is intended to be a general guide and not an all-inclusive, complete list of all work to be performed. The Proposer shall perform the following key services as required herein of this RFQ:

1. Initiate standard accepted debt collection procedures within 20 days from the date of assignment.

2. Report, correct and/or delete credit bureau reporting and provide evidentiary documentation to the Administrative Services Department. The City retains the right to recall from the Firm, without charge or penalty, any accounts assigned for collections.

Upon recall by the City, no further collection efforts on recalled accounts will be undertaken. If the account being recalled has been reported to any credit bureau, it is expected to be immediately cleared from the customer’s credit report and provide written confirmation of such upon request.

Professional Services Agreement

3. Comply with Federal, State and Local regulations and laws regarding fair debt collection practices. Collection shall be conducted through the highest professional, ethical and lawful means with the highest level of customer service.

4. Maintain a professional customer service image in working with City customers and debtors.

5. Maintain separate files for each account for audit purposes. Audit of any and all assigned records is at the discretion of the City.

6. Maintain confidentiality on all accounts assigned by the City.

7. Maintain a disaster recovery plan to protect the City’s receivables and the confidentiality of the information contained therein.

8. Accept data from the City in both paper and electronic formats. The assignment will include the following information, if available, and any other relevant information in the City’s possession at the time of referral as deemed appropriate: Name(s); Address; Type of Account; Unpaid Balance, date of birth and driver’s license (if on file), phone numbers, account numbers, and account start and stop dates.

9. Immediate return of all accounts still pending upon termination of contract by any party.

10. Accept and process credit card payments via telephone. Accept and process electronic payments from debtors. The Firm is responsible for all costs associated with this service, including but not limited to payment of the merchant’s discount fee.

11. Bear all expenses and costs incurred to effect collection of any account referred to them by the City, including but not limited to litigation and transportation.

12. Remit all monies collected, less collection fees, monthly to the City. Remittance should include a breakdown by debtor and type of account and clear itemization of firm’s collection fee.

13. Provide monthly reports no later than ten (10) days after the end of the month. This report should include, but not be limited to, the following:
a. Status of each account with customer pertinent information:
i. Debtor’s name and account number
ii. Amount and date payments received by the Firm for each individual account.
iii. Balance Outstanding
b. Monthly status of accounts, including assigned and current balance, number of open accounts and number of returned accounts.
c. Collection received during the month.
d. Percentage of recovery in comparison to the total dollar value of assigned accounts.
e. A monthly report detailing current address and phone number of debtors who have relocated.
f. Credit Reporting Service Notifications
g. On as needed basis, Ad Hoc reports as requested including but not limited to collections, legal actions, adjustments, updated addresses and corrections.

Professional Services Agreement

14. On a yearly basis as determined by the Project Manager of the City, a report for all accounts deemed to be uncollectible, along with reasons for no collection and actions taken to attempt collection must be provided.

15. The Firm must obtain the City’s written approval for any payment plan extending beyond one year from the date of the initiation of the payment plan.

16. The Firm must immediately notify City of Fullerton of any breach of information and notify the customer. Additionally, credit protection must be offered to the customer if personal financial data has been compromised.

Professional Services Agreement
On-Call Debt Collection Services
Prepared for the City of Fullerton, California
RFQ #2324-04 Page 69
SECTION IV: TECHNICAL PROPOSAL (FEE SCHEDULE / COST PROPOSAL) (summarized) The typical fee structure for debt collection services is a percentage of fixed fee
submit your most competitive Fee Schedule and rate collections percentage or fixed pricing for all debts collected. This includes rates for two (2) primary debt collection categories: 1) Utilities (i.e., water, sewer, sanitation, and refuse) , and 2) Miscellaneous billings, which includes all other standard city general billings for various city services.

The city is seeking a Fee Schedule that is fixed for the first two (2) years of the agreement, with annual cost escalators being clearly described every year of the agreement, including optional years.
collections and collection recovery percentage may also be considered when evaluating the Cost Proposal for this RFQ. (Please see the previous Item #7, Page 38-39 (above)

COST PROPOSAL
City of Fullerton, CA

ON-CALL DEBT COLLECTION SERVICES
RFQ #: 2324-04
In accordance with the Request for Qualifications issued on behalf of the City of Fullerton for On-Call Debt Collection Services, RSI offers to provide the services required for the following cost(s):

1. Collection Fee Primary Bad Debt Collections:

Percentage of Amount Collected ___16_____%

2. Collection Fee Secondary Bad Debt Collections:

Percentage of Amount Collected ___21_____%

3. Collection Fee Legal Pursuit of Collection Accounts:

Percentage of Amount Collected ___30_____%
The above-listed pricing is a contingency model, whereby RSI earns the above percentages (based on account type) for every dollar collected. The pricing structure listed above is a pay-for-performance model (contingency rate), whereby we only get paid if we are successful in collecting money for the city. RSI proposes the above costs/prices as fixed for the term of the agreement, including the first two (2) years and three (3) subsequent optional years for a total of five (5) years.

By signature below, I certify the above-proposed costs as well as confirm that I have read, understand and agree to adhere to the listed rate parameters.

Firm Name: RSI Enterprises, Inc.

Contact: Christian P. Ulrich, CEO
E-Mail: [email protected]
Telephone: (602) 627-2348
Professional Services Agreement
Professional Services Agreement

EXHIBIT B
CONSULTANT’S PROPOSAL
Please note
the following sections of the Consultant’s original proposal (101 pages) were removed at the request of the Consultant due to confidential and propriety information or found unnecessary in the inclusion of the professional services agreement:
 CLIENT LIST/EXPERIENCE (REDACTED – PGS. 6-7 OF 101
 REFERENCES – PG. 17 OF 101
 RESUMES
– PGS. 63 – 67 OF 101
 ATTACHMENTS – PGS. 71 – 101 OF 101

REQUEST FOR QUALIFICATIONS By City of Fullerton, CA for On-Call Debt Collection Services RFQ#: 2324-04 SOC II TYPE 2 Response Submitted by: RSI Enterprises, Inc. Contracting Officer: Operations Contact:Christian P. Ulrich Lynne WisehartChief Executive Officer President & COO5440 W. Northern Avenue 5440 W. Northern AvenueGlendale, Arizona 85301 Glendale, Arizona 85301800.774.4003 ext. 2348 888.854.4904 [email protected] [email protected]

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 1
TABLE OF CONTENTS(RESPONSE TO SCOPE OF WORK ATTACHMENT B)1. SECTION IV: TRANSMITTAL LETTER (Signed) .................................................................................................. 2 2. SECTION IV: TECHNICAL PROPOSAL (QUALIFICATIONS & EXPERIENCE) ........................................................... 3 1) COMPANY PROFILE ............................................................................................................................................ 3 2) STATEMENT OF BACKGROUND & EXPERIENCE ................................................................................................... 3 Company History / RSI Qualifications (Public/Government) / Diversification & Volume of Clients ..................... 4-7 Historical Collection Performance (Recovery Statistics) ...................................................................................... 7-8 3) KNOWLEDGE & ADHERENCE TO APPLICABLE LAWS & REGULATIONS .............................................................. 8-9 4) FAILURE OR REFUSAL TO COMPLETE A CONTRACT ............................................................................................. 9 5) DISCIPLINARY OR INVESTIGATIVE ACTIONS ........................................................................................................ 9 6) LITIGATION (PENDING OR FINAL) IN THE PAST FIVE (5) YEARS ...................................................................... 9-10 7) CONFIDENTIALITY (INLCUDING DATA BACKUPS) .............................................................................................. 10 Internal Controls / Privacy , Security, Confidentiality & System Compliance ................................................... 10-15 8) REFERENCES (Confidential & Proprietary) ................................................................................................... 15-16 3. SECTION IV: TECHNICAL PROPOSAL (DETAILED WORK PLAN) ....................................................................... 17 1) APPROACH TO SCOPE OF WORK / METHODS OF COLLECTION ..................................................................... 17-19 2) METHODS USED TO COLLECT ACCOUNTS ......................................................................................................... 20 Collection Approach / Workflow / Collection Flowchart / Work Standards / Account Processes ................... 20-25 Customer Payment Options / Letters & Notices (Standard & Custom) / Telephone Techniques .................... 26-28 Hours of Operation / Voice Mail & Toll-Free Access / Compromise Settlements / Dispute Process ................ 29-30 Credit Reporting Procedures ............................................................................................................................ 30-31 3) SKIP TRACING WATERFALL (PROCEDURES) .................................................................................................. 32-33 4) LEGAL / LITIGATION COLLECTION SERVICES ...................................................................................................... 34 5) CUSTOMER COMPLAINT, ESCALATION & RESOLUTION (CUSTOMER SERVICE POLICIES) .............................. 35-36 6) APPROACH TO REACH COLLECTION TARGETS / HISTORICAL COLLECTION PERFORMANCE .......................... 36-38 7) AUTOMATED ABILITIES / METHODS OF PAYMENT ALLOWED .......................................................................... 39 Columbia Ultimate Business System (Host System) / VoIP Dialer / TCPA Compliant Dialing Solution ............ 40-41 VoIP Phones (Recorded) / Teramind / Texting / Client View Portal / Propensity-to-Pay Scoring Models ...... 41-45 Speech Analytics Software / Account Documentation Methods / Online Payment Portal w/ Negotiator ...... 45-46 Account Return Process / Grouping or Separating Accounts (By Debtor, Debt, Client, etc.) ................................ 47 Funds & Remittance Process ........................................................................................................................... 47-48 8) SOFTWARE PROGRAMS USED FOR COLLECTIONS / DATA EXCHANGE CAPABILITIES .................................... 49-51 9) DISASTER RECOVERY & BUSINESS CONTINUITY PLAN (w/ Internal Controls) ............................................... 51-52 10) MANAGEMENT REPORTS / CLIENT PORTAL FOR REPORTING (Incl. Samples) ............. Attachments TAB & 54-55 11) APPROACH TO CLIENT RELATIONS & COMMUNICATIONS / REPORT TRAINING / MAIN CONTACT ............ 55-56 4. SECTION IV: TECHNICAL PROPOSAL (PROPOSED STAFF & ORGANIZATION) .................................................. 57 STAFFING PLAN: Personnel Introduction / Personnel Qualifications / Team Experience / Bilingual Team ............ 57-58 1) KEY CONTRACT STAFF (Incl. Position, Credentials, Roles & Responsibilities) ................................................ 59-61 2) KEY PERSONNEL RESUMES .......................................................................................................................... 61-66 3) PRIMARY & DEDICATED PROJECT MANAGER ................................................................................................... 67 4) PRIMARY & SECONDARY CONTACTS FOR DAILY OPERATIONS .......................................................................... 67 5) ORGANIZATIONAL CHART ................................................................................................................................ 67 6) STATEMENT OF AVAILABILITY OF KEY PERSONNEL / NO CHANGES w/o APPROVAL) ........................................ 68 5. SECTION IV: TECHNICAL PROPOSAL (FEE SCHEDULE / COST PRPOSAL) .......................................................... 69 6. GENERAL ATTACHMENTS: ................................................................................................... Attachments TAB Status of Past & Present Contracts Form, Exceptions Form, California License & Secretary of State Certificate and Screenshot, ACA Certificate, Sample Letters & Reports On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 2
SECTION IV: TRANSMITTAL LETTERIn response to theCity of Fullerton, CaliforniaRequest for Qualifications (RFQ) for On-Call Debt CollectionServices, RSI Enterprises, Inc. (RSI) is pleased to submit the following proposal which will serve as a basis for evaluation to provide the services requested. RSI has demonstrated its ability to successfully perform collection services through its partnerships with various government entities as well as other Cities, Counties, Municipalities,and private facilities/entities (including in California).RSI provides below, as required, all of the information required in this Transmittal Letter, as defined in Section IV, Items 1-8 on page 10 of the RFQ. In submitting this response, RSI explicitly affirms their ability to qualify and comply with all provisions listed in the referenced RFQ.RSI further states that it will perform the services and adhere to the requirements described in this RFQ, including any addenda (as listed herein, if applicable).RSI understands that the city desires to enter into an agreement for professional services with a qualified firm or agency who can demonstrate competency and experience in providing Collection Agency Services. RSI is an experienced and effective partner that can assist the city in minimizing costs, will work effectively with debtors, will maximize the use of advanced technology, will provide excellent customer service, and commits to perform thorough, ethical, legal, and complete collections.RSI has engaged in debt collection for over thirty-six (36) years. RSI has both the knowledge of the industry and its history as a collection agency, allowing the combined expertise necessary for the best service possible to its n of the referred inventory and unique qualifications for providing value-added services are best described/presented throughout this proposal.consumers, suppliers and employees. RSI utilizes advanced technology for all their contracts and in addition to R National licensing,access to additional services provided by RSI affiliates and its innovative approach to collection services distinctly functions, and services proposed by the City of Fullerton.RSI believes they are the best qualified to provide these services to the city, as they have 36 years of experience as a collection management firm and has demonstrated its ability to successfully accomplish this through its partnerships with various entities. RSI should be selected as the agency of choice due to its consistently higher recovery and successful contact rate against the national average, as well as its record of accomplishment when competing against other agencies. The results will be more dollars collected, fewer complaints and a higher level of service to the client and its customers.By signature below, (per Item 1) RSI expresses its formal interest in this RFQ, (per Item 7) certifying that all information provided is true, accurate and complete, that (per Item 3)RSI will not be using any subcontractors, that (per Item 8)neither RSI nor anyone at RSI has any disciplinary actions, and (per Item 4)acknowledges receipt of all RFQ Addenda 1-2).My signature further certifies that, as a shareholder, I am authorized to contractually bind RSI to all commitments made in this proposal(per Item 6) and that (per Item 5)this proposal will remain valid for a period no less than 120 days from submittal date.(Below complies with Item #2)NAME/TITLE:Christian P. Ulrich, CEOADDRESS:5440 W. Northern Ave.LEGAL COMPANY NAME:RSI Enterprises, Inc. Glendale, Arizona 85301TELEPHONE:(602) 627-2348 / Main (800) 774-4003FAX:(602) 627-2114E-MAIL:[email protected] EIN:84-1145794State of California License/COA#: 10515-99City of Fullerton, CA Business License: RSI will obtain upon contract award.WEB ADDRESS: www.rsico.com / TAX ID #84-1145794/ DUNS #800152670

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 3
SECTION IV: TECHNICAL PROPOSAL (QUALIFICATIONS & EXPERIENCE)This section of the proposal should establish the ability of the firm(s) to satisfactorily perform the required work by reasons of: experience in performing work of the same or similar nature; demonstrated experience working with other public agencies and cities; strength and stability of the firm(s); staffing capability; workload; record if meeting schedules on similar contracts; and supportive client references. Most recent references preferred. Consultant staff assigned to execute the scope of services must have relevant experience and appropriate licenses in providing and/or performing the necessary services described under the scope of services.1) Provide a brief profile of your Firm, length of time in business, and key members of the management/collection team. Identify office locations.

COMPANY PROFILERSI Enterprises, Inc. Full, Legal NameRSI Enterprises, Incorporated Office LocationsGlendale, Arizona (Call Center & Corporate Office)(Proposed Location / Call Ctr)DC / VA Metro Area (Herndon, VA Branch Office)Years in BusinessSince 1986 (36+Corporate StatusS-Corp / Privately Held FirmCore Competencies &Specialization AreasBad Debt Collections (various debt types), Early-Out & Pre-collection / Customer Service / Negotiating / Propensity-to-Pay Scoring Models (Proprietary & Custom) Certifications / AuthorizationsNationally Licensed; SOC 2 TYPE 2 Cert; Bonded; PCI Cert.Location of Client BaseLocated throughout the United StatesSize of Client Base100+ Unique Clients, Making up to 300+ Unique Client DivisionsAnnual Collection Volume 985,000 Accounts / $967 MillionTotal Volume of Inventory 3.7 Million Records (current & archived) / $1.2 Billion Open-Active Key Personnel Chris Ulrich, CEOLynne Wisehart, President & COORyan McMullen, Vice PresidentSamantha Chacon, Operations ManagerAmanda Clark, Collection SupervisorHeath Morder, Director of Operations & Technologyon Page 57, below for complete details project*2) Provide a statement of your FirmCalifornia Government clients; including historical percentage of collections.

Statement of Background and ExperienceRSI Enterprises, Inc. began as a collection agency in 1986 (36) whose primary focus, since its inception, has been in the public/government market. RSI is Nationally licensed, including licensure in the State of Californiais market has sustained, since its inception in 1986, by employing the following strategies: diversification, sustainable competitive advantage, innovation, market leadership and partner strategies. RSI is recognized nationally for its collection services and has developed an impressive list of satisfied public/government customers throughout the United States. RSI has 36+years of experience in the collections industry and currently provides the proposed services to many clients across the nation, including other On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 4
municipalities. These services are demonstrated through its current clients. RSI retains 95.7% of its customerson an annual basis.RSI is proud of its long tenured partnerships with its customers, ranging anywhere from 5 years to 30+ years.RSI's entire approach is based on its customer service, which encourages more problem resolution, leading to higher dollars collected, fewer The Solutionprofessional approach sets RSI apart from the competition. Clients stay with RSI, because RSI performs!RSI Enterprises, Inc. is proud of its history in the collection industry. RSI has invested its resources, experience and capital in the public/government market; thus, supporting the local communities and the providers/facilities that make a difference in our neighborhoods. This history and experience have served to improve our internal efficiencies, process, procedures and workflows, as we know what to expect and how to apply the most effective period, whereby we were able to learn from mistakes, This is an advantage that RSI has over its competitors!While others will spend time trying to determine how this program works, what strategies work best and how to improve efficiencies, RSI has already established those efficiencies, thus maximizing its efforts in the right places, on the right accounts and initializing the best procedures to affect payment quickly. Our history and knowledge of the guarantor populations, local payers and community issues allows us to get out of the gate quicker and eliminate inefficiencies that would otherwise hinder us from focusing on improving collections. -To RSI, that means understanding the culture and philosophy of the city and incorporating the citygoals, vision and policies/procedures into our training. The specific expertise of RSI has assisted in improving reimbursement and cash flow to a diverse client base allowing us to have built strong business relationships with ectives, RSI designs a customized strategy targeted to meet their unique goals.RSI will clearly demonstrate, throughout this proposal, that it has expert program leadership, technical abilities, built in public & government collection processes, financial performance, and the knowledge and understanding of this program to successfully meet the needs and requirements of the city; details will include its organizational structure, staff levels, staff experience, workflow distribution, technology and process knowledge. RSI has provided current references to attest to our capabilities in this area. RSI has a proven record of accomplishment of providing such services to various public/government entities, including other municipalities; thus, RSI believes it is the ideal choice for award of this contract.COMPANY: Background, History & ExperienceRSI Enterprises, Inc. (RSI) began as a collection agency in 1986 and has expanded into one of the fastest growing receivables management companies in the Country. RSI has been responsible for managing the professional, ethical, and successful recovery of several hundred thousand accounts, totaling billions of dollars, for a vast array significant decrease in the operating costs of collectionimproved customer service with nearly zero complaintssuperior level of total skip-trace and collection servicessubstantial increase in collection rates/accelerated cash flowseamless system integration for reconciling balances and effortsinternal support for customer service and information sharingimproved feedback system to improve the revenue cycle managementdeclining costs of outsourcing over time tied to process improvementnew & advanced technology Scoring Models, VoIP Messaging, etc.high client satisfaction and performance results using the RSI solution!While maintaining the highest level of integrity, RSI will be the recovery services provider of choice, delivering superior quality and Client service in our markets through successful partnerships with our people, suppliers and customers. -RSI Mission Statement On-Call Debt Collection Services
Prepared for the City of Fullerton, California
RFQ #2324-04 Page 5
With offices in the Phoenix and Washington DC Metro areas, RSI is positioned to provide the highest level of customer service for its clients nationwide. Through national licensing, RSI is able to provide services to clients nationwide, giving the advantage of being able to contact guarantors in their respective time zones. RSI provides a Suite of Services to such industries as Government (Federal, State, Cities, Towns, & Counties), Financial Institutions (Credit Unions and Banks) and Healthcare (Hospitals, Physicians, Medical Centers, Medical Groups).

The Suite of Services RSI provides:

Primary Debt Collection (with above average liquidation / recovery rates) Pre-Bad Debt Collections / Extended Business Office (EBO) Customer Service / Call Center
Third Party Billing & Follow Up Services (Medical)
Probability-to-Pay Scoring Models (Initial & Proprietary) Skip-tracing / Mail Management Services
In-bound / Out-bound Call Management
Automated Messaging Services
(TCPA compliant messaging / call campaigns)
Electronic Payment Processing Online Portal
(w/Virtual Negotiator)
Customized Letters / Notices / Reporting / Analytics
Client View Online Client Portal (available 24/7)
Credit Reporting / Client Training
It is with these experiences and capabilities that RSI would like to offer successful and quality assured services to the City of Fullerton for their Collection Service needs.

Qualifications & (Public / Government) Experience & History RSI is proud to have established long-term partnerships with its customers, some as long as 30+ years; thus, clearly below list is not an exhaustive
list of contracts/experience. RSI, for the last 36 years, has been responsible for managing the professional, ethical, and successful recovery effort for several hundred thousand accounts, totaling billions of dollars, for various public entities, including services to other city clients, alike. RSI is a proven performance leader in the public/government collection marketplace. Throughout this proposal, RSI demonstrates its superior service and recovery performance on each of its past and current contracts with government entities, as well as other industries. performance. RSI has past and current experience in performing services similar in size and scope as the services described in this RFQ. RSI lists below a detailed description of its experience, including government collection contracts, listing contract duration, types of accounts and total volume under each contract. The listed data RSI can provide all required services, as we have held or currently hold contracts, evidencing over 100 years of combined Public/Government collection experience, with the following entities:

Current Public/Government (Non-Medical):

Client List/Experience continued, next page.

On-Call Debt Collection Services
Prepared for the City of Fullerton, California
RFQ #2324-04 Page 6
Past Public/Government/Medical:

DIVERSIFICATION & VOLUME: CURRENT GOVERNMENT & OTHER CLIENTS RSI Enterprises, Inc.

CLIENT NAME CONTRACT

DURATION VOLUME DEBT TYPE
City of Fresno, CA Since 2009 (14 YRS) 63K Accts for $10.3M Referred (Early-Out & Bad Debt Collection) Tax, Fire, Parking, Police City of Redlands, CA Since 2021 (2 YRS) 67 Accts for $26K Referred (Bad Debt Collection) Citywide Debt Collection
USC Medical Group, CA Since 2010 (13 YRS) 202K Accts for $27M Referred (Bad Debt Collection) University Healthcare
Washington, D.C.

Office of Tax and Revenue Since 2010 (13 YRS) 294K Accts for $737M Referred (Bad Debt Collection) Taxes (Various Types)
. Ctr Since 1990 (33 YRS) 1.2M Accounts for $1.8B Referred (Bad Debt Collection) Hospital & Physician
Union County, NC Since 2014 (9 YRS) 41K Accts for $663K Referred (Bad Debt Collection) Utility / Public Works
Apple Federal Credit Union Since 2011 (12 YRS) 2.3K Accts for $9.6M Referred Auto/Unsecured/Personal Loans, Overdrafts, Credit
Wright Patman
Congressional Federal Credit Since 2011 (12 YRS) 1.9K Accts for $11.2M Referred Unsecured Loans, First Mortgages, Credit Card
Desert Financial Cred. Union Since 2021 (2 YRS) 21.6k Accts for $24.8M Referred Auto/Unsecured/Personal Loans, Overdrafts
City of Corpus Christi, TX Since 2020 (3 YRS) 297 Accts for $153K Referred (Bad Debt Collection) Misc. / General City Debts
Verra Mobility Traffic
(Cities, Counties & States) Since 2010 (13 YRS) 322K Accts for $34M Referred (Bad Debt Collection) Traffic Citations
VCU Health System, VA
Commonwealth University Since 1998 (25 YRS) 2.3M Accts for $2.8B Referred (Early Out Collections) University Healthcare
University of Arkansas
Medical Sciences (UMC) Since 2013 (10 YRS) 342K Accts for $25M Referred (TPL & Prev. Bad Debt Collections) University Healthcare

On-Call Debt Collection Services
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RFQ #2324-04 Page 7
University Medical Center
(UMC), El Paso, TX Since 2010 (13 YRS) 385K Accts for $824M Referred (Bad Debt Collection)
University Healthcare
Community-Owned
Tucson Medical Center, AZ Since 1999 (24 YRS) 1.03M Accts for $1.2B Referred (Early-Out & Bad Debt Collection) Hospital & Physician
Sonora Quest Laboratories
(Banner Health) Since 2005 (18 YRS) 4.1M Accts for $326M Referred (Early-Out & Bad Debt Collection) Lab Accounts (Misc.)
RSI has hundreds of unique client divisions/programs and will provide a complete list to the City upon request.

DIVERSIFICATION & VOLUME OF PRIOR GOVERNMENT CLIENTS
RSI Enterprises, Inc.

CLIENT NAME CONTRACT DURATION VOLUME DEBT TYPE
California Dept. of Justice 2012-2023 (11 YRS) 7.7K Accts for $4.64M Referred Various / Misc. Debts State of Colorado, DPA 2017 - 2020 (3 YRS) 25K Accts for $22.6M Referred Various / Misc. Debts State of Arizona
Dept. of Revenue (CSED) 1998 - 2012 (18 YRS) 300K Accts for $1.2B Referred State Child Support State of Oklahoma (CSED)
Dept of Human Services 1998 - 2002 (4 YRS) 445K Accounts for $3B Referred State Child Support State of Florida
Dept. of Revenue (CSED) 1996 - 1999 (3 YRS) 310K Accts for $1.5B Referred State Child Support State of Ohio
Dept. of Job & Family Services 1996 - 2003 (7 YRS) 200K Accts for $481M Referred State Child Support State of Illinois (DCSE)
Dept. of Health & Family Svc. 1998 - 2017 (19 YRS) 125K Accts for $800M Referred State Child Support Maricopa Integrated Health, AZ 2005 - 2011 (6 YRS) 226K Accts for $233M Referred County Healthcare RSI has hundreds of unique client divisions/programs and will provide a complete list to the City upon request.

RSI Enterprises, Inc.
% of Public Sector Clients 68%
Client (Annual) Retention Rate 95.7%
Avg. Length of Partnership/Contract Ranges from 5 to 33+ Years Annual Collection Volume Processed 985,000 Accounts / $967 Million

HISTORICAL PERCENTAGE OF COLLECTIONS, BY ACCOUNT TYPE
RSI Enterprises, Inc.

Annual Collection Volume 985,000 Accounts / $967 Million Total Volume of Inventory 3.7 Million Records (current & archived) / $1.2 Billion Open-Active Avg. Bad Debt Collection % 17% GrossLiquidation /26% Net Liquidation RSI understands the importance of measuring, tracking and trending success through quality procedures and statistical analysis, including but not limited to collection performance, customer complaints, client interaction, review of reports/files and recommendations for change. RSI has experience in collecting various debt types, including but not limited to city (various debt types), clerk of courts (various debt types), municipalities (various debt types), taxes, child support, traffic citations, auto loans, credit cards, etc. : The type of debt being pursued, the size of the balance, the age of the account, the accuracy and well-being of the guarantor account information, how much account activity has previously been conducted and by whom, along with the location or demographics of the guarantor. All elements being good, our average recoveries (company-wide and on all debt types combined) range as follows:

On-Call Debt Collection Services
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RFQ #2324-04 Page 8
Average NET & GROSS Recovery, by Age & Debt Type
Debt Type Average Age
Avg. "NET"
Recovery
Avg. "GROSS"
Recovery
Clerk of Courts 0-180 Days 50% 38%
Clerk of Courts 181-730 Days 44% 29%
Clerk of Courts 731+ Days 14% 9%
Cities/Municipalities (Various Debt Types) 0-180 Days 28% 18% Cities/Municipalities (Various Debt Types) 181-730 Days 15% 12% Public Utilities 0-180 Days 29% 20%
Public Utilities 181-730 Days 21% 17%
State (Child Support) 731+ Days 11% 6%
State (Taxes) 731+ Days 15% 14%
Financial (Credit Union / Loans etc.) 181-730 Days 13% 10% Medical (Early Out) 0-120 Days 38% 32%
Medical (Third party Insurance & F/U) 0-120 Days 69% 58% Medical (Bad Debt) 121+ Days 18% 13%
County Medical Debt 0-180 Days 23% 13%
County Medical Debt 181+ Days 9% 10%
Recovery, by Age & Debt Type, after Referral
Debt Type
Average
Age @
Referral
Average
NET Recovery
@ 30 Days
Average
NET Recovery
@ 90 Days
Average
NET Recovery
@ 365 Days
Medical Bad Debt 263 Days 2.3% 12.8% 18.5%
Government Bad Debt (Incl. Taxes) 555 Days 4.5% 14.1% 23.7% Financial / Commercial Bad Debt 606 Days 3.7% 8.9% 15.6% Paid in Full (PIF) Recovery
Time of Paid-In-Full % of Total PIF # % of Total PIF $ % of Referred # % of Referred $ (0-6) Months 36.7% 26.4% 13.1% 8.1%
(7-12) Months 30.7% 28.7% 11.0% 8.8%
(13-18) Months 13.7% 16.6% 4.9% 5.1%
(19-24) Months 7.6% 9.3% 2.7% 2.8%
(25+) Months 11.8% 19.0% 4.2% 5.8%
**Average Net Collection (All Debt Types/Buckets): 26%** 3) knowledge and adherence to the FDCPA,
California Government code and other applicable laws or regulations.

Standards of Excellence, Ethics & Compliance
3 )
RSI affiliates with and subscribes to the ethical principles of several associations. RSI utilizes these associations for certification, ongoing education and to ensure we stay compliant with any changes to governing regulations.

RSI recognizes that applying the rules and regulations of these organizations as a foundation for recovery services will ensure the city the most ethical, legal and successful means of recovery services. For RSI, the broad scope of (I.e., California Rosenthal Fair Debt Collection
Practices Act), Federal Law, Federal Trade Commission (FTC) regulations, Fair Credit Reporting Act (FCRA) regulations, Automated Clearing House (ACH) Transaction Law, the Red Flag Rule, Health Insurance and Portability and Accountability Act (HIPAA) and Federal Fair Debt Collection Practice Act (FDCPA), as well as compliance with client contracts and their defined scopes of work.

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RSI is continuously FDCPA compliant with regular mandatory refresher courses attended by all personnel. RSI is active with their knowledge on Red Flag awareness and utilize an in-house compliance team to stay up to date with all FDCPA rules and regulations. RSI believes it is vitally important to have a strong compliance program to cover all facets of our business, including those listed above. o Compliance Team
RSI takes pride in their commitment to Legal and Ethical conduct and utilizes a compliance program in order to assure RSI is in compliance at all times. Ensuring and maintaining compliance continues to be a challenge for many reasons, including frequent changes in regulations that govern our activities and increased scrutiny from industry experts. RSI stays ahead of their competition by utilizing their own in-house Compliance Team.

The Compliance Team has overall responsibility of the account flow and developing an efficient and client focused process for handling of recovery accounts, as well as the overall Federal and State law compliance for the company. This team oversees the development, implementation, maintenance of and adherence to the iance principles, policies, and practices.

RSI will provide a complete copy of its compliance plan upon request from the City.

RSI provides security awareness/compliance training that includes training on all statutory regulations, FDCPA, Red flags, PCI, HIPAA and system security. In addition, RSI tests the staff on all regulatory issues prior to commencing work. This is a require
training courses and tests throughout the year to confirm the staff stays compliant with all regulations. This narrative demonstrates RSI knowledge, compliance, and adherence to the FDCPA, California Rosenthal Act, FCRA, GLBA, PCI, Red Flags, and other applicable laws/regulations. 4) Describe any failure or refusal to complete a contract, including details & dates.

None / Not Applicable (N/A), as RSI has never had any failure or refusal to complete a contract in its 36-year history. In fact, RSI is proud of its long tenured and professional relationships with all of its client partners. 5) List any disciplinary or investigative actions, including audits, in the past five (5) years conducted by any professional body or government entity.

None. RSI has not had any audits, disciplinary or investigative actions conducted upon it by any professional body 6) List any litigation, pending or final, to which you are a party that is related or similar to the services being solicited in the past five (5) years.

Litigation: Civil Lawsuits & Disposition
RSI Enterprises, Inc. has NEVER had any had any Federal Trade Commission, Federal Communication Commission or State Authority violations of any kind; as such, RSI has NEVER been subject to any regulatory censure or sanction from any governing body in the 36+ years it has been in business.This industry is a heavily regulated one via multiple state and federal agencies, regulations and industries. Working within a debtor-friendly business environment and with the ever-increasing access to knowledge/resources, it is difficult and unlikely that most agencies have escaped allegations and complaints. RSI takes its legal compliance, professionalism and regulatory obligations very seriously, as evidenced by its compliance program and training plan; and, while RSI has been the unfortunate recipient of a minimal number of lawsuits spanning a 5-year timeframe, all cases were found to be unqualified allegations and we are very proud of the fact that these cases did not result in fault or negligence by RSI, which further supports our strong compliance regimen. RSI is proud of its service to its clients following list of complaints/suits.

See litigation chart on the next page.

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RSI Enterprises, Inc. - Civil Legal ActionsFiledPartiesCase #YearComplaint/ReasonResolutionCalifornia LA Superior CourtStone vs. RSI19STCV043622019Claimed FDCPAviolationNuisance Settlement: No Findings of WrongdoingArizona US District CourtCristales vs. RSICV-20-0011-PHX-JJT2020Claimed FCRAviolationNuisance Settlement: No Findings of WrongdoingArizona US District CourtHarris vs. RSICV-20-01446-PHX-SMB2020Claimed FDCPAviolationCase DismissedGeorgia US District CourtHaskins vs. RSI1:20-cv-02640-SDG-LTW2020Claimed FDCPA violationVoluntary Case DismissalE. WisconsinUS District CourtJance vs. RSI20-CV-847-JPS2020Claimed FDCPA violationVoluntary Case DismissalCalifornia Central US District CourtSinclair vs. RSI2:21-cv-000112021Claimed FCRA violationCase DismissedS. OhioUS District CourtLowe vs. RSI3:21-cv-00144-TMR2021Claimed FCRAviolationNuisance Settlement: No Findings of WrongdoingNevada US District CourtNiggl vs. RSI2:21-cv-01258-JCM-NJK2021Claimed FDCPA violationNuisance Settlement: No Findings of WrongdoingWisconsin StateCircuit CourtMcGallowayvs. RSI21-CV-0064082021Claimed FDCPA violationNuisance Settlement: No Findings of WrongdoingArizona US District CourtAussprung vs. RSICV-23-00786-PHX-SPL2023Claimed FDCPA violationNuisance Settlement: No Findings of WrongdoingArizona US District CourtGarcia-Reyes vs. RSICV-23-1689-PHX-GMS2023Claimed FDCPA violationNuisance Settlement: No Findings of WrongdoingCalifornia (LA) Superior CourtWard vs. Multiple Plaintiffs23AVCV006102023Claimed FDCPA violationPending Dismissal7) Provide City of Fullerton with to confidentiality, dealing with customers, and backup of information.

Confidentiality, Privacy & Security Protocols found on pages 11-15, below.

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INTERNAL CONTROLS / DATA SECURITY & CONFIDENTIALITYRSI understands the need for recording and securing confidential and private documents, verbal information, electronic information and other sensitive data as well as maintaining internal, physical controls for handling of all monies received. RSI has numerous layers of security in place to ensure that verbal, written and electronic data remains secure. The following is a compilation of those features which both describe the facilities and processessurrounding those facilities relating to security; however, RSI provides additional data and system security information at the end of this section. normal business hours, access to the building is restricted to authorized personnel only. enter via a reception area, are greeted by a receptionist, given a guest access pass they must display which includes their name and picture, and must sign in/out of a guest log. This includes clients, visitors and employee. Unless special arrangements are pre-approved, visitors are not allowed on the collection floor. In the event of termination or cessation of employment, the key card access is terminated and all appropriate locks on doors are changed, and keys reissued, as appropriate.There are levels of key and key card access into the suite as well. Only those managers that need will receive management ONLY. All incoming mail is opened by a Customer Service Representative (CSR). Each piece of mail is looked up pied and sent to a secure file area to be filed by RSI account number. The photocopied document is then delivered to the Recovery Specialist for appropriate action and follow up. When the Recovery Specialist has completed work on the document, the photocopyis sent to the shredder bin. If the Recovery Specialist needs to retain the document past the current business day, it is placed in a secured envelope and locked in a desk file drawer. All onsite paper files are secured at RSI in a central filing area. RSI maintains a secure, central filing area that can only be accessed using a separate key. Each filing cabinet / Fire Safe has its own lock and is secured each evening before the office closes. The door to this filing room is also locked via key card access control to ensure multiple layers of physical security for documents.These documents are filed by RSI account number and locked in metal filing cabinets. Only authorized personnel may enter the filing room. If a Recovery Specialist needs a document previously filed away, he/she must submit a request. The file is pulled, a photocopy made and delivered to the Recovery Specialist for review. All incoming faxes are received electronically. A CSR receives these faxes and logs them in the same All documents are sent to a secure (locked) shredding bin when their use is completed. All employees are required to empty all documents for shredding from their personal areas to the shredding bin each day before leaving. Voice mails are secured via a Broadband Dynamics voice mail system, which require a username and password to access.VoIP Telephone System Call Monitoring and Recording: This tool has virtually unlimited capacity to provide feedback and training to our Recovery Specialists as well as provide a recorded record to resolve any complaints that may arise. All controls are accessed securely via web-based software and sensitive data destroyed. All RSI employees are required, as part of the RSI employee handbook, agree not to discuss account or client information with anyone outside of RSI or within RSI that is not required to know.

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Electronic data security has multiple layers and protections. Access to any system within RSI is controlled by multiple levels of passwords and logons. Passwords are required to have an upgraded level of complexity and must be changed on regular intervals.RSI uses Office365 Advanced Threat Protection to filter emails for malicious intent and verify emails are clean of viruses.-SSL Shell/Portal, requiring that end users also be on a secure network (HTTPS-SSL) or through use of VPN Client.Access to emails can only be granted after supplying the proper credentials such as username, domain and MS enhanced security password.For further protection, any documents containing sensitive information must either be password protected or sent through an additional secure method such as a Client View (CV) portal, FTP server, Zix messaging, PGP encryption or other related software.RSI currently has an alternative secure messaging system called Client View. This tool is also protected as an HTTPS-SSL, as is our email server.RSI has used and is willing to use again, 3rdparty software such as PGP provided the end users have access as well.The most common way RSI shares data electronically with its current clients is through a SFTP/Secured Shell Transmission of Encrypted Files (preferably IP-to-IP). See Data Exchange Protocols, on Page 50,below.Use of the Client View platform provides an alternative for secure file transmission. A client representative uploads the files to (www.ecliptics.com/ecs_client_view.html) through a SSL secure connection using a unique user ID and password that has been assigned to them. An authorized support personnel from RSI receives notification the file is available and also through a SSL secure connection uses their unique user ID and password to download accessible by RSI management & administrative staff and employees that are assigned to the project. This server is secured by two layers of authentication and the CUBS server has all latest security patches/updates.After the data file is loaded into the CUBS system, the raw files are placed on a secure and access-controlled SharePoint site with native Microsoft encryption and logging/auditing.RSI uses a combination of Veeam for the CUBS system and servers and DropSuite for Office365 emails and SharePoint/OneDrive files.Time Frame for keeping tapes/records:Backup Schedule / Retention UNIX/Universe/CUBS Full File level backups Daily / (2) Weeks DropSuite (Office365) Daily/No Limit Microsoft Servers 7 Daily / 5 weekly / 12 Monthly / 7 Yearly Cameras and Lockers.RSI Enterprises, Inc. is protected by 9 (nine) wired cameras covering the interior collection floor, entrances, exits, and parking areas. These are viewable both in real time and as 30-day rolling recordings hosted on-premises with an encrypted and access-controlled DVR system. Additionally, staff are required to place all personal items, specifically cell phones or any electronic device inside their designated lockers. These devices may not be stored in or around the workstations or client data. System Privacy, Security, Compliance & Confidentiality on the next page.Remainder of page intentionally left blank.

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Privacy, Security, Confidentiality & System ComplianceRSI understands the need for securing confidential/private, verbal, and electronic information as well as other sensitive data. RSI maintains internal controls such as numerous layers of security and compliance in place to many facets of State Law, Federal Law, and Federal Trade Commission (FTC) regulations as well as compliance with client contracts. RSI recognizes that applying the rules, regulations, and protocols as a foundation for recovery services ensures Clients the most ethical, legal & successful means of recovery services. The Security regulations.Firewall Technology:RSI uses redundant Sophos XG Firewall appliances in front of RSI networks & Windows firewalls on PCs.Operating System: Upgrades, Patching, Virus & Spyware Protection: RSI systems are on Linux, Microsoft O365/Azure platforms. RSI utilizes Vulnerability Management software to ensure all Windows operating systems are current on their patches/upgrades. Patches are tested and approved, as applicable. RSI also utilizes Sophos Endpoint Protection to protect all Windows machines from viruses and spyware. Sophos auto-checks for updates daily and applies the latest DAT as it becomes available. RSI also uses web restrictions via Sophos Firewall to monitor and prevent users from going to malicious sites that are more likely to harbor viruses and/or spyware. Further, Microsoft Office365 Advanced Threat Protection with SafeLinks and SafeAttachments helps to prevent phishing and breaches for email.Securing Sensitive Informationcontrols their use through Windows Group Policies. Electronic data security has multiple layers and protections. Access to any system within RSI is controlled by multiple levels of passwords and logons. Access is granted by several access profiles, ranging from least amount of access to maximum amount of access. These profiles are matched to position type (i.e., collector, manager etc.), dictating the level or limit of their system access. These controls are embedded in both their key cards and the User IDs. Within each profile, RSI masks certain data on its system to ensure an additional layer of of complexity and must be change on regular intervals.(Below complies with 6)Need-To-Know Access & Confidentiality. RSI has comprehensive policies & procedures in place for releasing and giving access to any non-public information (NPI).All client data received is classified as confidential and is protected through information security policies/practices. All systems, facilities and data access points have -to-Security starts with comprehensive training.is only accessible by RSI management & administrative staff and employees that are assigned to the project. This server is secured by two layers of authentication and the CUBS server has all the latest security patches/updates. After the data file is loaded into the CUBS system, the raw files are placed on a secured Microsoft server, ensuring no other users other than RSI management & administrative staff can access these files. All controls are accessed securely via web-Recordings are securely stored for 365 days then destroyed.All RSI employees are required, as part of the RSI employee handbook, agree not to discuss account or client information with anyone outside of RSI or within RSI that is not required to know.Electronic data security has multiple layers and protections. Access to any system within RSI is controlled by multiple levels of passwords and logons. Passwords are required to have an upgraded level of complexity and must be changed on regular intervals. SeeSecuring Sensitive Informationprotocols listed above. In addition, RSI maintains a robust quality assurance program that regularly monitors each employee for compliance with all security protocols. As part of the regulatory and statutory education training, as well as its training in client and industry specialization, the employee will be instructed regarding confidentiality and disclosure rules and requirements, including Publication 1075 Security Standards. No information about the guarantor will be provided unlawfully to anyone. RSI maintains documented policies and procedures for complying with the regulatory training requirements. RSI provides security awareness/compliance training that includes training on all statutory regulations, FDCPA, Red flags, PCI, HIPAA, and system security. In addition, RSI tests the staff on all regulatory issues prior to commencing work. This is a requirement of our orientation.

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compliant with all regulations on an on-going basis. Personnel security plans include background checks, drug screening, access authorization, confidentiality training and certification based on the employees need to have access to certain data. RSI provides security awareness training, which includes confidentiality and regulatory compliance requirements, as described throughout this proposal. Depending on the staff position/role on any project, their access is restricted to only that data needed in order to perform contract responsibilities. In addition to the above-listed automated security access controls, each employee is monitored to ensure all data access is within their security level/profile.Encrypted Files.RSI deploys encryption for data at rest as well as data in transit. RSI can create self-extracting, encrypted files utilizing either a password or encryption key with a variety of methods including can provide IPSec clients or setup a LAN to LAN VPN tunnel for any necessary network access. We can also work with most VPN technologies to access client systems when needed.RSI maintains anAcceptableEncryption Policywhich complies with industry standards. The policy provides guidance that limits the use ofencryption to those algorithms that have received substantial public review and have been proven to workeffectively. Additionally, this policy provides direction to ensure that Federal regulations are followed, and legalauthority is granted for the dissemination and use of encryption technologies.Payment Card Industry (PCI) Compliance.RSI maintains a Payment Card Industry (PCI) Compliance Certificate (Saq C-VT: Rev. 1.0, v3.2.1) from an accredited third-party authenticator, Aperia, ASV/QSA,Validation #TRIS0009202536820223. Aperia is a Qualified Security Assessor (QSA) and an Approved Scanning Vendor (ASVPCI Self-Assessment Questionnaire and vulnerability scan results, if applicable and is good through 02/21/24. For merchants that require scanning, compliant vulnerability scans are required quarterly to maintain compliance. RSI will continue to maintain this certification throughout the contract.SOC 2, TYPE 2 Certification / Audit:RSI Enterprises, Inc. is contracted with a licensed Qualified Security Assessor (QSA), KirkpatrickPrice for an annual SASE audit and certification.RSI has successfully completed its annual SASE16: Soc 2, Type 2 audit and received our compliance certificate, effective through September 30th,2024.As a licensed CPA firm, PCI QSA, and HITRUST CSF Assessor, KirkpatrickPrice provides an annual, full audit, including penetration testing. A SOC 2 audit evaluates internal controls, policies, and procedures that to security, availability, processing integrity, confidentiality, and organization. The result is a SOC 2 Certificate/report validating the organizatquality, secure services to clients.RSI will gladly provide its full report, upon request.

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Tenable NESSUS Compliance and Vulnerability Scan / Assessment. RSI also, as part of its contract with the DC Office of Tax and Revenue, has successfully completed a Tenable Nessus Compliance and Vulnerability Scan. The first assessment was completed by an accredited third-party, Booz Allen Hamilton, and is based on industry standards, such as the National Institute of Standards and Technology (NIST). The second and current assessment was performed in 2023 directly by the IRS Safeguards Team and was completed by August 30th, 2023. Additionally, this meets the required IRS Safeguard requirements for protecting Federal Tax Information (FTI).The NESSUS Compliance and Vulnerability Scan included authenticated network scans, technical threat assessments, business evaluations, mitigation strategies and the use of Simple Network Management Protocol (SNMP) to make version and information queries to routers and switches. The scan NESSUS is one of the most widely deployed vulnerability assessment solutions and assists in preventing network attacks by identifying the vulnerabilities and configuration issues that hackers use to penetrate your network. Tenable is relied upon by more companies and governments. While RSI did not receive any certificate of completion, per say, we do have a documented reprovide the Client specific contacts at both the DC OTR and the IRS Safeguards Team; both of which can attest to the accuracy of the information listed above. RSI will maintain its compliance with the required mitigation strategies throughout this contract.Internal Security Risk Assessment / Report. Annually, RSI also completes an internal Security Risk Assessment, covering Administrative, Physical, and Technical Safeguards, and the Breach Notification Rule. Completed risk assessment documents are maintained in Security files, meeting document retention requirements. Security requires Entities to protect against any reasonably anticipated threats or hazards to the security or integrity sufficient to reduce risks and vulnerabilities to a reasonable and appropriate level. The combination of the assessment and RSI supporting assessment, at least, annually, and usually within the first quarter of each calendar year. RSI has completed its 2020/2021 review and will maintain this compliance throughout the life of the contract as well as provide a copy to the Client, upon request.Security Procedures.RSI maintains several different security policies and procedures such as: Application Security Policy, Change Management Policy, Disaster Recovery, Computer User Account & Resource Policy, Access Control Policy, HIPAA Policy, Red Flags Policy, IT Security Policy, Risk Assessment Policy, Server Security Policy, Technology Equipment Disposal Policy and Workstation Security Policy. RSI will gladly provide the Client copies of any and all of these policies and procedures, upon request.8) REFERENCES. Please provide at least five (5) government client references, with at least three (3) relevant experience with California government clients within the past five (5) years.As required, RSI has submitted its client references, including contact details, all marked as CONFIDENTIAL/PROPRIETARY.Pursuant to the California Public Records Act (CPRA) (California Government Code §§ 6250 through 6276.48), Agencies may withhold confidential trade secret information pursuant to Evidence Code section 1060 which is incorporated into the CPRA through section 6254(k)and the Uniform Commercial Codeconnection with a procurement transaction or prequalification application, shall not be subject to Public Disclosure; as such,RSI invokes this protection for all client reference contact data provided below (all of which are marked as CONFIDENTIAL/PROPRIETARY). RSI claims privilege against public disclosure of its client list (below, Page 16).The reason(s) this protection is necessary isRSI is a privately held corporation and as such, its confidential, proprietary, client listsare not generally known to and are not readily ascertainable by other persons. Such disclosure would provide competitors with economic value/advantage from its disclosure or use; thus, providing an economic disadvantage to RSI Enterprises, Inc. Trade secrets, client lists and commercial or financial information obtained from a person or business where the trade secrets or information are proprietary, privileged or confidential, or where disclosure of the trade secrets or information may cause competitive harm, this information is protected from Public Disclosure and Inspection (Pursuant to the Codes, Acts and Regulations listed above) and therefore, should, at no time, be open for public inspection and must be REDACTEDfrom any procurement disclosure related to this RFQ.

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SECTION IV: TECHNICAL PROPOSAL (DETAILED WORK PLAN)Proposer shall provide a proposed Work Plan that addresses the Scope ofServices and shows Proposer's understanding of City's needs and requirements. 1)scope of work, providing best value services and maximizing revenue recovery to the City.

Project Understanding & Achieving Scope of Work Objectivesguarantor-and rapid growth are its professionalism and respect for its customers and their consumers, resulting in lasting business relationships and maximum recovery. RSI management uses all the best tools and technology available to manage the workflow and performance in the office. By utilizing more productive people, and providing them with predictive dialing, automated skip tracing and links to client systems (if applicable), RSI has minimized the labor necessary to exhaustively pursue each account on the system. Automation has also permitted RSI to provide clients with their required reports in the desired formats without expensive system customization. RSI believes that its prior successful experience and unique techniques toward collections give RSI an advantage over the rest of the industry. RSI's collection methodologies that have proven effective include:Superior collection performanceCustomer service approachProfessionalism & Quality of staffThe strategy used by the management team at RSI is to identify early program success and further development opportunities by tracking the following key-indicators: account workflow (including calls & letters), skip inventories, contact rates, promise payment close ratios, payoff inventory and close rates, total account inventory and dollar amount, active account inventory and dollar amount, terminated and suspended account inventory and dollar amount, etc. With this information RSI is able to monitor the activity and opportunities for improvement in this program. The process is generally designed utilizing the following work plan development model:

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RSI Enterprises, Inc. has 36in the collection industry with a primary focus on the public/government market. RSI is Nationally licensed, including licensure in the State of California, which RSI is recognized nationally for its collection services and has developed an impressive list of satisfied public/government customers throughout the United States. RSI is proud of its long tenured partnerships with its customers, ranging anywhere from 5 years to 30+ years.RSI's entire approach is based on its customer service, which encourages more problem resolution, leading to professionalism, advanced The Solutionprofessional approach sets RSI apart from the competition. Clients stay with RSI, because RSI performs!RSI Enterprises, Inc. is proud of its history in the collection industry. RSI has invested its resources, experience and capital in the public/government market; thus, supporting the local communities and the providers/facilities that make a difference in our neighborhoods. -mentality, but instead strive to build partnerships. To RSI, that means understanding the culture and philosophy and policies/procedures into our training. The specific expertise of RSI has assisted in improving reimbursement and cash flow to a diverse client base allowing us to issues and objectives, RSI designs a customized strategy targeted to meet their unique goals. RSI will clearly demonstrate, throughout this proposal, that it has expert program leadership, technical abilities, built in public & government collection processes, financial performance, and the knowledge and understanding of collections to successfully meet the needs and requirements of the city; details will include its organizational structure, staff levels, staff experience, workflow distribution, technology and process knowledge. RSI has provided current references to attest to our capabilities in this area. RSI has a proven record of accomplishment of providing such services to various public/government entities, including other municipalities in California.RSI has engaged in collections for over thirty-six (36) years. RSI has both the knowledge of the industry and its history as a collection agency, allowing the combined expertise necessary for the best service possible to its clients. Possessing knowledge is only one key to collection success. Equally important is the approach taken to providing is best described in the following narrative. The following narrative provides an overview of general approach to collections.

Methods of CollectionThe management team will develop a strategy to best impact the new cases. This strategy will include such prioritization will consist of ranking cases containing demographic, personal and age data in order to work them more efficiently. The notices sent to the debtor can be customized to include specific payment addresses and any a program that will submit all cases to a information.Once the accounts are loaded to its host system, RSI will load the referrals for the first overnight processing. This processing includes propensity-to-pay scoring and prioritizationduring which the system evaluates all included information from available phone numbers, social security numbers and prior employment information. Additionally, the cases will be distributed to specific Recovery Specialists for collection activity. Workflow distribution, as defined by RSI, is dependent upon existing unit sizes, case work-in-progress, the Recovery Specialist's ability to manage existing inventory and comparative performance. These cases will appear on each Recovery Specialist's work queue as new business to be worked on the first day following the referral. This total process will typically be completed in RSI's office within 24 hours of receipt of cases.First Case ActivityWithin 48 hours from the time the cases are loaded into the system, automated notices will be sent to all debtors assigned. At this point, Recovery Specialists will begin generating telephone calls and skip tracing inquiries will be made. The purpose of such a quick turn-around is two-fold: (1) in order to increase the success ratio for locating debtors, Recovery Specialists will waste no time on a potentially "fresh" lead to On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 19
find the debtor, and (2) to better service the debtors of our clients. RSI Recovery Specialists realize that to positively impact the outcome of a case, one must respond quickly to the information provided.Furthermore, the strategy used by the management team at RSI will be to identify early program success and further development opportunities by tracking the following key-indicators: case workflow, skip inventories, contact rates, promise payment close ratios, payoff inventory and close rates, total case inventory and dollar amount, active case inventory and dollar amount, terminated and suspended case inventory and dollar amount, etc. This reporting is produced monthly and is copied to all appropriate personnel, supervisors and managers including the President of RSI. With this information RSI is able to monitor the activity and opportunities for improvement in this program. Moreover, the information provides close oversight for the purpose of early identification of additional training issues and compliance.RSI Enterprises, Inc. is proud of its history in the collection industry. RSI has invested its resources, experience and capital in the public/government market; thus, supporting the local communities and the providers/facilities that make a difference in our neighborhoods,including in California. RSI having local experience provides easy access, expertise and knowledgeable resources to this project. This history and experience have served to improve our internal efficiencies, process, procedures and workflows, as we know what to expect and how to apply the most effective strae able to learn This is an advantage that RSI has over its competitors!While others will spend time trying to determine how this program works, what strategies work best and how to improve efficiencies, RSI has already established those efficiencies, thus maximizing its efforts in the right places, on the right accounts and initializing the best procedures to affect payment quickly. Our history and knowledge of the guarantor populations, local payers and community issues allows us to get out of the gate quicker and eliminate inefficiencies that would otherwise hinder us from focusing on improving collections. RSI believes, very strongly, that its knowledge of and history provides a solid foundation for improving collections. We will not be wasting the citys time with inefficient processes but rather will be focusing on maximizing collections, without the hurdles/obstacles of a normal start up project. RSI proposes to apply all of its extensive experience on this program to improve performance for the city collection program. -oriented strategy has provided its rapid growth are its professionalism and respect for its customers and their guarantors, resulting in lasting business relationships and maximum recovery. RSI has put into place the management, systems, operating methods and talented experts to provide these services at a level consistently higher than any competition it has faced in the thirty-six (36) years that they have been in with the capacity to pay and collect from them, utilizing a customer service and problem resolution approach. The specific expertise of RSI has assisted in improving reimbursement and cash flow to a diverse client base allowing us to have built strong business relationships with an array of government entities, financial institutions, insurance companies and medical facilities. By carefully listening to our customized strategy targeted to meet their unique goals.It is with these experiences and capabilities that RSI would like to offer successful and quality assured services to the city for their debt collection needs. Because of RSI's customer service approach and performance, RSI has been awarded exclusive contracts on many of its competitive contracts. It has achieved this goal by making sure it is responsive to its clients' requests and needs and outperforming its competition, while receiving fewer complaints. The ownership, management and staff at RSI are all fully committed to its clients and their needs. This is demonstrated best by clients' testimonials.RSI has a proven record of accomplishment of providing such services to various public/government/medical entities, including in California; thus, RSI believes it is the ideal choice for award of this contract.Remainder of page intentionally left blank.

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2) Describe the normal method used to collect accounts (first and second placements). Include the specific work standards used, the dollar threshold where various levels of follow-up occur, and the number of both written and telephone attempts, as well as samples of all forms and correspondence that Collection ApproachRSI's entire approach is based on its customer service approach, which encourages more problem resolution and less "collection agency dunning," leading to higher dollars collected, fewer complaints, and better business relationships with its customers. RSI understands there is an obstacle to the collection of these delinquent balances, and therefore focuses on identifying the problems and working on removing the obstacles, resolving any disputes and thus effecting collection of the balance. RSI takes a very professional and work-with approach in pursuing guarantors for payment as well as working with them to obtain more information that may help them in resolving the account. RSI employees have been called the "Good Guys" in this industry because of their professional manner and tone on the telephone.based on balance, age, employment status and the existence or non-existence of certain data that tend to lead to higher liquidation of the balance. Then, RSI works to identify those accounts with the financial profile and/or third-party potential for maximum reimbursement and concentrates disproportionately on this inventory. Depending on the age, balance and disposition of the account, a varying number of collection dunning notices are sent and calls to collect are made, but the higher frequency of these efforts and vigorous attempts to locate guarantors is targeted During each collection attempt, work quickly to identify those guarantors with no apparent means for paying the balance.Using a professional manner on the telephone in all daily contacts with clients, guarantors and information philosophies, procedures and all applicable debt law. RSI feels it is important to provide staff with specific training customers. This is critical in serving those custominterests are properly represented, and that the customer receives the best possible service.approach is designed to maximize reimbursement under client defined resource constraints, while improving service and dispute resolution to guarantors in an effort to eliminate complaints tied to this reimbursement effort.

Workflowproprietary scoring process and prioritized based on date of service, age, balance, demographic information, potential liquidations, employment status and the existence or non-existence of certain data that tend to lead to higher liquidation of the balance. Then, RSI works to identify those accounts with the financial profile and/or potential for maximum reimbursement. Depending on the age, balance and disposition of the account, a varying number of collection dunning notices are sent and calls to collect are made, but the higher frequency of these efforts and vigorous attempts to locate guarantors is targeted at those accounts that can produce the greatest reimbursement for the city. RSI typically works on all accounts the same regardless of balance. The only exception to this might be in the area of letters. RSI realizes that letters alone do not collect money; therefore, smaller balances tend to receive fewer letters than other accounts. The chart below describes, in detail, what the process may look like for the city.Type of collection based on dollar amount: RSI Action: (Sample ONLY)Letter$0 to $500First Notice (validation) Sent as Required by Lawon Accts receiving collection activityAdditional LetterBalances over $25 Receive (1) Additional LetterPhone CallFirst call within 48 hours of mailingAdditional Phone AttemptEvery 7 Days until contact made (dialer) On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 21
Follow Up for RetrySeveral Additional Calls (dialer & manual) per Month Letter$501 to $5,000First Notice (validation) Sent as Required by Law on Accts receiving collection activityAdditional LetterAll Balances $501-$5,000 Receive (at least) (1) Additional LetterPhone CallFirst call within 48 hours of mailingAdditional Phone AttemptEvery 7 Days until contact made (dialer)Follow Up for RetrySeveral Additional Calls (dialer & manual) per Month Letter$5,001 & UpFirst Notice (validation) Sent as Required by Law on Accts receiving collection activityAdditional LetterAll Balances $5,001-up Receive (at least) (2) Additional LettersPhone CallFirst call within 48 hours of mailingAdditional Phone AttemptEvery 7 Days until contact made (dialer)Follow Up for RetrySeveral Additional Calls (dialer & manual) per MonthRSI typically applies the same workflow strategies, as listed throughout this response (I.e., letters, outbound calls, follow up time frames etc.), to all balances; however, RSI will adjust these strategies to accommodate specific requirements in the scope of work or per client discretion. An example of an adjustment would be in the area of ty to pay. For the most part, however, RSI proposes to apply all its methodologies and strategies consistently to all balances in active A/R. Please see the protocols listed in various sections of this proposal, outlining collection methodology, account follow up (status and time frames), letter strategies, account distribution, telephone scripts, workflow standards etc.).Initial Referral Action Taken:Timeline:Accounts Loaded to Host SystemWithin 24 hours of Receipt of ReferralAuto-Scrub for Demographics / Propensity ScoringWithin 24 hours of Account LoadingAcknowledgement of Referral to ClientWithin 24 hours of Account Loading (Including # and $)First Notice / Letter (if applicable based on score, status etc.)Within 48 Hours of Account LoadFirst Phone Calls (Manual & Dialer)Within 72-96 Hours of Account LoadFollow Up Action Taken:Timeline:Notices / Letters (2-3) (If applicable based on strategy)Every 28-30 DaysAdditional Phone AttemptEvery 7 Days until contact made (dialer)Report to Credit Bureaus (If applicable)30 Days after Referral (or at Client Designated time-delay)Skip-Tracing ActivitiesOngoing -Throughout Life of Account CycleFollow Up for RetrySeveral Additional Calls (dialer & manual) per MonthResult of First Call AttemptTimeline:Request for Debt ValidationProvide Validation / Call Attempt: 20 DaysDisputeVerify Dispute / Call Attempt: 20 DaysLeft Message w/Other or MachineCall Attempt: 10 DaysBusy / No AnswerCall Attempt: 3 DaysWrong Number / Skip AccountSkip Tracing Begins / Call Attempt: UnknownPromise Made / Payment ArrangementDay After Due Date / Call AttemptContact Made / No ResolutionCall Attempt: 7 Days Result Based on Status CodeTimeline:ACT (Active)Contact Attempt: Every 7 days until Contact MadeDIS (Dispute)Verify Dispute / Call Attempt: 20 DaysDSC (Discount Pending)Contact Attempt: Every 14 days until payment made.PRM (Promise to Pay)Day After Due Date / Call AttemptPAY (Payment Plan)Day After Default Date / Call AttemptBRK (Broken Promise)Day After Due Date / Call Attempt: Every 7 days thereafter On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 22
NOR (Contact Made / No Resolution)Contact Attempt: Every 7 days until resolution/status changeIZR (Itemized Bill Requested)14 days after IZR mailed / Call AttemptPCA (Pending Charity Approval)Call Attempt: Every 7 Days until Application ReceivedRSI will adjust these strategies to accommodate specific requirements in the scope of work or per client discretion. The bad debt referral process requires proactive collection/call efforts to incent guarantors to pay. Letters alone do not collect debts. It is at this stage that RSI proposes to insert its collection/call strategies, utilizing its staff to make those proactive steps to improve liquidation. Therefore, RSI proposes to offer its standard bad debt collection services. RSI proposes to implement the agreed upon procedures below. The proposed workflow is as follows: 1. All account referrals accepted, via various mechanisms, from the client. Cases electronically loaded and acknowledged with customer within forty-eight hours of assignment. RSI would load the accounts into our system in a new Client number and begin a collections program. 2. Accounts assigned to specific recovery staff, and addresses scrubbed against the National Change of Address database with RevSpring®.3. RSI represents itself in all calls and letter, utilizing RSI logo/letterhead as well as answering and making 4. Prioritize accounts based on age, balance, employment status and other liquidation factors.5. First Notice sent as required by law on all accounts receiving collection activity; subsequent notices (up to 3 in a series) sent every 30 days or more/less frequent dependent on account disposition (i.e., payment plan, dispute etc.).6. Dispute information is gathered and reviewed, documentation needed is pulled for review and any necessary resolution process is managed by RSI.7. RSI will directly accept payment, deposit funds and report detailed collections along with remittance advice back to the client. RSI will direct consumers to pay RSI directly via portal, mail, ACH, etc.8.Portal. This Web Portal will allow us to take credit cards, debit cards, ACH/ electronic checks on your behalf.9. RSI will report to the three major credit bureaus, 30 days after account is moved to bad debt; this is 10. RSI will perform skip-tracing activities such as contacting directory assistance, national change of address, accessing online public data and other subscribed databases to locate correct addresses and telephone numbers for consumers.11.Within 3-5 days of account load, a call will be made to guarantors with the goal being to generate a person to person contact to collect the balance or enter into a satisfactory payment arrangement.delinquent, or at the stage that the client typically refers to secondary bad debt, whichever is sooner.12. If the account is resolved, paid in full or set up on satisfactory payment arrangements, the account will not qualify for secondary bad debt recovery services. If payment arrangements are in order, the account will remain with RSI for monitoring of the pay plan, until such time the guarantor pays in full or defaults on plan.13. RSI utilizes a professional approach and follows all regulatory restrictions, as governed by the FDCPA, FTC and other governing statutes.14. RSI would return unpaid accounts at Day 365, or sooner if circumstances dictated (i.e., paid, dispute, etc.), or at a mutually agreed upon age.15. Through the process, RSI will remit regular update files listing any new demographic data for guarantors (I.e., address, phone numbers, employer data etc.).See collection Workflow Chart on the next page.Remainder of page intentionally left blank.

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Work StandardsThe work standards vary from client to client and are based on the needs of that client. Factors that determine of the account file. Different work standards may also exist on the same client as needed. For example, high balance accounts may have a higher work frequency than low balance accounts. The protocols established for account flow depend on the type and status of each account. The following production standards have been created clients nationwide. It is imperative that these thresholds are met, as each recovery specialist will be held accountable.1)Daily Cases WorkedA minimum of 100 unique accounts per day. (Avg. 21 working days in a month)2)Daily ContactsA minimum of 25 contacts per day. (Avg. 21 working days in a month)3)# PromisedA minimum of 10 promises per day. (Avg. 21 working days in a month)4)$ PromisedA minimum of $1,400 in promises per day. (Avg. 21 working days in a month)5)$ PaymentsA minimum of $3,500 in urgency payments per day (including credit cards, check-by-phone).6)Conversion RateA minimum of 40% per day of contacts converted to promises. (Avg. 21 days / month)7)Collection StandardCollections of $90,000/month is the standard expected after 90 days of employment.Every day, each recovery specialist receives a Score Card that ranks their performance on a scale of 1 to 5, for the aforementioned items numbered 1) 5). Each metric is weighed differently based on importance, and commentary is often provided on these Score Cards to indicate which areas of opportunity need focus. Additionally, Recovery Specialists are required to make a minimum number of passes and take specific actions on an account to ensure that it is thoroughly processed. Those steps include, but are not limited to: First call attempt within seven days of account load (depending on volume of inventory).Day-after-due-date call attempts on broken promises and payment plans.

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Process account through skip tracing databases to verify demographics are accurate.that may be used in the negotiation process.Second and third call attempts must be made according to the following legend, depending on the result of the first call attempt. (Most common scenarios listed.)Result of First Call AttemptFollow-up Attempt TimeframeRequest for Debt ValidationProvide Validation / Call Attempt: 20 DaysDisputeVerify Dispute / Call Attempt: 20 DaysLeft Message w/Other or MachineCall Attempt: 10 DaysBusy / No AnswerCall Attempt: 3 DaysWrong Number / Skip AccountSkip Tracing Begins / Call Attempt: UnknownPromise Made / Payment ArrangementDay After Due Date / Call AttemptContact Made / No ResolutionCall Attempt: 7 DaysThe Recovery Specialists are given the autonomy of handling each call and contact on an account-by-account basis and working on most efficient resolution. This workflow, in conjunction with technology, scoring and proper training, have proven to improve collections because the Recovery Specialists have dissected, scrubbed, scoredand made contact attempts on all accounts immediately after referral. Thus, allowing them the benefit of ensuring each account is at its most collectable upon first contact with the guarantor. RSI maintains over 110 different status codes that designate the stage/condition of each account. Below is a condensed list of the most common scenarios/status codes used on collection accounts and their designated follow-up attempt requirements:Status Code / DescriptionFollow Up Attempt - Time FrameACT (Active)Contact Attempt: Every 7 days until Contact MadeDIS (Dispute)Verify Dispute / Call Attempt: 20 DaysDSC (Discount Pending)Contact Attempt: Every 14 days until payment made.PRM (Promise to Pay)Day After Due Date / Call AttemptPAY (Payment Plan)Day After Default Date / Call AttemptBRK (Broken Promise)Day After Due Date / Call Attempt: Every 7 days thereafterNOR (Contact Made / No Resolution)Contact Attempt: Every 7 days until resolution/status changeIZR (Itemized Bill Requested)14 days after IZR mailed / Call AttemptPCA (Pending Charity Approval)Call Attempt: Every 7 Days until Application Received Account Processesa. Initial Action following account placement: Within twenty-four hours from the time the accounts are loaded into the system, all accounts will be checked against the National Change of Address database for updated address information, as well as various telephone databases. Directly following this automated account update process, automated notices will be sent to guarantors, if appropriate based on scope of work. Each guarantor is directed to a specific call queue with a direct number (toll-free number, where appropriate) for assistance. Each attempt by the recovery specialist, from the initial contact, requires the following exhaustive procedures to ensure maximum liquidation of the outstanding balance in the quickest possible timeframe.b. Frequency of Guarantor Contact: RSI strives for contact on each account pass. Unless otherwise prohibited, both home and work telephone numbers will be called. If contact is not made, the recovery specialist has the ability to reschedule the account for calling another day and/or a different time of day to increase the probability of success. All guarantor contact is attempted in accordance with FDCPA guidelines. For specific guidelines on c. Supervisory Review: Routine supervisor review of random accounts will take place on a regularly scheduled basis. Account review may take the form of a call monitor, review of previously worked accounts and/or review while the account work is in progress. The purpose of the review is to ensure that client expectations are being maintained and to provide feedback to the recovery specialists as an ongoing training tool.accounts worked, results, call lengths and time worked. Once an initial evaluation is completed, copies of these reports are distributed to the recovery specialists with notes and feedback. Managers then begin real-time and hourly productivity tracking, physical oversight and call monitoring. Where appropriate, feedback is provided several times each day to keep the pace and quality of work at standard levels.

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RSI recovery managers provide ongoing quality control checks through several critical reviews of work performed. Every recovery specialist is formally reviewed for thoroughness, professionalism, and productivity at least three times per week. The RSI quality review for thoroughness includes verification of action codes, status codes, proper record updating and overall completion of work. Accounts for review are selected randomly and the results will be included as measures of performance for every recovery specialist. These account reviews are completed in conjunction with the call monitoring process and feedback is provided to each recovery specialist (Below complies with 15d. Receipt and frequency of payments: RSI takes all necessary measures to ensure the guarantor is treated in a fair and ethical manner during the collection process and works with them to resolve issues and make payment arrangements. These payment arrangements are made in accordance with the Policies and Procedures established by the Client. Generally, payment terms are extended for no more than six monthsunless the recovery specialists believe that, due to the financial stability of the guarantor, a longer payback term is warranted. RSI posts payments every day. Payment arrangements are available on weekly, bi-weekly, semi-monthly or monthly schedule.e. Satisfactory Payment Arrangements:RSI currently provides installment payment agreements for other customers, utilizing its automated accounts receivable system, with built-in monitoring features, queues and payment notice defaults. One of the advantages automatically monitor promises and payment plans, including reminder, delinquency and default notices. When a payment arrangement is made, the terms of the arrangement payment plan letters are sent out 15 days prior to the due date for each payment and a default letter is automatically sent after a payment is missed.Payment In FullThe recovery specialist will request that the balance is paid in full whenever possible. Often, profiling. When possible, payment by check or credit card will be taken by telephone in the initial or subsequent contact with the guarantor.Partial Payment PlanThere will be guarantors who are unable to pay their account in full. In these situations, beneficial payment arrangement. These payments will be arranged with the intent to liquidate the account in the shortest amount of time possible. RSI also maintains a payment portal, including an online (virtual) Negotiator,allowing the guarantors to negotiate a payment arrangement, settlement or other terms, online, based on parameters established by the city. This unique tool allows a mechanism for increased guarantor access and payments, without extending additional costs. RSI can accept, via this Web Portal, all credit cards, Visa Debit Cards, electronic checks (ACH), etc. 6), below (screenshot, next page).(Complies w/ Section#)As mentioned above, one of the advantagesits ability to automatically monitor promises and payment plans, including reminder, delinquency and default notices.flexibility to allow for us to set the delinquency date (specific) for each payment plan or to set the number of days until the plan is delinquent; for example, we may set the delinquency to 10 days past the due date, thus allowingenough of a grace period for the guarantor as well as allowing enough time for payment reports to be received/posted from the client. All the terms (amounts, frequency, due dates, default dates etc.) can be customized for each individual payment plan.If a payment has not posted within the designated grace period, the account is automatically marked as a defaulted as Priority 1 code in ththe guarantor to determine the cause of default; was it simply a timing issue or were there extenuating circumstances that caused the default? Dependent upon the direction of the conversation and/or the disposition of the account, the recovery specialist will attempt to reestablish the payment plan and get the guarantor back on track. The approach is a customer service approach, as the objective is to get the guarantor to enter into another arrangement and continue paying.the rear of this proposal.

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A detailed description of this online tool can be found later in the TECHNOLOGY Section, Page 46.

Customer Payment Options(Complies with #10 & #11 /phone payment)Various payment options are provided to the customers, including mailing payments (in the form of checks, money orders or credit cards), walk-in payments (if location applicable), payments over the phone and through an online portal (see above).RSI bears all costs to collect on accounts.The forms of Guarantor Payment Accepted are:Checks, Money Orders, Certified Checks, Etc.EFT (Electronic Funds Transfers)Credit Cards (MasterCard, Visa, Discover, American Express)Debit Cards / Intel-a-Check (Check by Phone)ACH or Check via Web PortalPayment by Phone:RSI utilizes a VoIP phone system with unlimited capacity for phone lines, queues, and auto--free numbers for use at its disposal. Each dedicated client group has a toll-free number associated for guarantors to utilize when contacting RSI. This toll-free number is provided in all communications to guarantors via letters, calls, and auto-attendant messages, as well as routes incoming calls appropriately. RSI will utilize/assign a specific 800 # (Toll-Free) for city customers to use for and contained in all prerecorded messages. The instruction the city would provide users for payment by phone would be: To make payment by phone, please call 800-XXX-XXXX.

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Website / Online Payments (see screenshot above):A secure, Internet-based, EFT (Electronic Funds Transfer) system which enables RSI to create and schedule electronic payment transactions from a checking, savings, or credit card account. This system can be used for a broad range of transactions including one-time credit card, debit card or check-by-phone deductions, on-line payments, automated recurring payments, and customized electronic payments. RSI also maintains an online (virtual) Negotiator, allowing the guarantors to negotiate a payment arrangement, settlement, or other terms, online, based on parameters established and approved by the city. This unique tool allows a mechanism for increased guarantor access and payments, without extending additional costs. RSI can accept, via this Web Portal, all credit cards, Visa Debit Cards, electronic checks (ACH), etc. This website/portal URL is provided in all communications to guarantors via letters, calls, and auto-attendant messages. The instruction the city would provide users for website/online payment wouTo pay online, please connect to https://evokepay.com/rsico/login Letters / Notices (Notification Process)A computer-generated series of letters is initiated at the time an account is input to the RSI system, based on predetermined criteria for mailings (I.e., mail return, scoring, scope of work, balance, etc.). Each of these letters (notices) is system controlled for content and date of generation to ensure total compliance of our internal due diligence requirements. Provided the scope of work supports this strategy, each letter in the letter series sent to the guarantor is mailed every twenty-one to twenty-eight days. The frequency and number of letters varies on each account, depending on the scope of work parameters, status of the account, scoring, balance, etc. RSI's letters are numbered, and the description of those letters follows:NOT1 - First Notification to Responsible PartiesIf the account qualifies for mailings (as noted above), this letter is scheduled to go out immediately following the assignment of the account, to notify the guarantor of the balance owed and provide options for resolution. This letter also notifies them of their rights pursuant to FDCPA and other regulatory requirements.NOT2 - Second Automated Letter in SeriesThis letter goes out thirty days following NOT1, presuming there has not been an adequate response to the first letter, a mail return of previous letters and/or that it qualifies for additional mailings. Between NOT1 and NOT2, RSI recovery specialists will have made attempts to reach the guarantor by telephone. NOT3 - Third Letter in Regular Letter SeriesNOT3 is sent out twenty-eight days following NOT2 if there has been no adequate response, mail has not been returned and/or that it qualifies for additional mailings. By now, several additional attempts have been additionally made by telephone. If attempts have been fruitless in reaching or locating the guarantor, RSI personnel will have skip traced these individuals through the access of on-line national databases.NOT9 Final NoticeThis notice is sent out twenty-eight days following the sending of NOT3, provided that the account qualifies for additional mailings. Call attempts, location attempts, and asset searches and verification will continue until the account is collected, suspended or closed and returned to client. After this notice is sent, if no adequate response has been received, the account may be referred back to Client for additional agency placement.These are the standard notices contained in a normal notice series. Additionally, optional letters are also available to the Recovery Specialist to be sent meeting certain circumstances for mailing. RSI also maintains payment plan letters as well as customized letters such as: promise-to-pay, broken promise, dispute validation instructions, asset verification, legal and post-dated check letters. Collection attempts will continue to be made during the letter series as well as attempts to telephone the guarantor. Each time a new address is located for a guarantor, the RSI letter series is started to that address. The system also has the ability to store individual letters that can be customized for specific circumstances. These are sent out 15 days prior to the due date for each payment. These statements can be customized in both format and language (i.e. Spanish versions) to ensure a seamless communication with the City guarantors.Remainder of page intentionally left blank.

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Letters / Notices (CUSTOMIZED)In addition to its standard letter protocols, RSI has customized letters for unique account statuses, such as those listed above. The payment plan letters are sent out 15 days prior to the due date and a default letter is sent after a payment is missed.This is an automated process that takes place, in addition to the dialer and manual call campaigns to follow up with repeat/delinquent guarantors. All other methodologies, standards and approaches described throughout this proposal (such as letter, call campaign, dialer, follow up and payment plan strategies) will be employed to the delinquent and repeat guarantors, consistently.RSI, through its letter-processing vendor, has the capability to customize letters in virtually any manner the citywishes; this customization includes but is not limited to the following:Letter Size (Legal size vs. standard 8 ½ x 11)Multi-page / Color Stock (solid, fade etc.)Customized Content/Data/TextHyperlinks / Data Tags (QR Tags) / 2D & 1D Bar Coding etc.Alternative Languages / Branding / LogosThese statements can be customized in both format and language (i.e., Spanish versions) to ensure a seamless communication with City guarantors. Customization is only limited by the amount/type of data provided by the cityletters to meet the needs/requests of these clients.RSI is also proud to offer eStatementsto guarantors, upon express consent and Opt-In from guarantors. In essence, the guarantor has the ability to choose whether or not they prefer to receive any of the above-listed statements in a hard-copy, mailed format or an emailed, electronic format. TheeStatementsare encrypted and secure according to privacy standards, are only sent with the express consent of the guarantor and RSI provides the ability for the guarantors to Opt-out at any time. This additional service is unique and offers the guarantors flexibility in communications regarding their account(s).

Telephone Techniques(Complies with 10)RSI will develop call center training scripts for the city accounts prior to implementation. RSI will provide any modifications to training scripts for review and approval prior to implementation. RSI will ensure the call center maintains the capacity to provide service in multiple languages. The Recovery Specialists are given the autonomy of handling each call and contact on an account-by-account basis and working on the most efficient resolution. eceivables, its staff has found that being flexible in its call scripts/talk-offs has served to enhance the results. However, RSI does provide guidelines to the representatives that can help them maximize efficiencies and consistency on these types of programs. While we do provide some standard dialogue/guidelines, the recovery specialists are trained to be flexible and adapt their contact dialogue in a collection program is as follows:

First Verify that you have the correct party on the telephone, by name and address.Then correspondence we sent regarding an outstanding amount owed to the Client. I am contacting you today to see if we can bring this account to a satisfactor<<<PAUSE>>>the recovery specialist proceeds with educating the guarantor:you like to take care of that by Credit Card, Check-by- On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 29
Call Results and Objections Standard Responses-Commonly, guarantors will produce an objection regarding the outstanding balance owed. RSI has compiled scripts/responses to the most common results/objections on collection accounts. Some of those examples are as follows:1. Disconnected or wrong number. The RSI recovery specialist will check notes for any previous numbers removed systemically or by other recovery specialists and will call any numbers found. The incorrect numbers will be removed, the account will be placed in a skip-tracing queue, and the tickler file will be updated for a sixty-day follow-up. During this time, the recovery specialist will use numerous means to locate an updated telephone contact number, utilizing batch processed database sources as well as various Internet locations. Upon the identification of a new number, the account is immediately put back in the 2. Guarantor disputes.The RSI recovery specialist will review the account to determine validity and to determine if all appropriate follow-up is complete and that all data is updated. If the balance is verified to be true, the recovery specialist will explain to the guarantor that this is a verified balance and the recovery specialist will then discuss payment options.3. Guarantor claims they already paid.The RSI Recovery specialist will then ask the guarantor when, by what means and how much did they pay. The RSI Recovery specialist will then verify against the account to determine if the existing balance reflects that payment. If it does, we will proceed by discussing payment options. If it does not, the RSI Recovery specialist will direct the guarantor to provide proof of payment (I.e., copies of checks, credit card statements etc.).4. Guarantor requests a payment arrangement.The RSI Recovery specialist will always attempt to collect balance in full.arrangements.5. Guarantor claims they are a different person.The RSI Recovery specialist will verify the current account information. The RSI recovery specialist will probe to determine if, in fact, we have the wrong party. If we do, the Recovery specialist will determine whose name the account should have been in and update the data accordingly. They will obtain the correct guarantor information, including address, phone number and place of employment. They will then attempt to contact the appropriate guarantor and update the Client with the new information. These are just a few examples of the most common call results / objections. As we monitor the progress of the program, RSI will update its strategies and standard responses to properly address additional call results.

Hours of Operationof operation are Monday through Friday from 6am to 6pm. The staff scheduling is flexible, ensuring coverage during peak calling times, such as in the evening or on weekends. RSI employs flexible scheduling which allows collectors to work until 8pm during the weekdays and Saturdays between 8am and 4pm. RSI can and does adjust the number of staff working extended hours, as required by the client or the workflow. Outbound calls are conducted during these standard times, with the occasional evening or weekend outbound mass-messaging campaign. The staff scheduling is flexible, ensuring coverage during peak calling times, such as in the evening or on weekends.

Voice Mail & Toll-Free AccessRSI utilizes a VoIP phone system with unlimited capacity for phone lines, queues and auto-attendants. RSI -free numbers for use at its disposal. Each dedicated client group has a toll-free number associated for guarantors to utilize when contacting RSI. This toll-free number is provided in all communications to guarantors via letters, calls, and auto-attendant messages, as well as routes incoming calls to all designated RSI staff assigned to this project.individual voice mail boxes for each Recovery Specialist. These voice mails are monitored and emptied every hour, ensuring that calls/messages are distributed to designated personnel in a timely manner. This process allows for call-backs/response to guarantor messages within a 24-hour time frame or sooner, depending on the volume ame in and within 24 hours of receipt.

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Compromise SettlementsRSI will offer settlements and/or discounts, only at the authority of and within the terms established by the City.Typically, RSI is given blanket authority to offer up to a certain amount of a discount/settlement (i.e., 20%) and anything over that amount would need to be approved by the client. Additionally, the terms often include which types of accounts offers can be made/accepted. Through its experience in servicing utility collection cases, RSI has been successful in aiding its customers in securing large settlements on some cases. On occasion, the guarantors will, voluntarily and without solicitationfrom RSI, make an offer through the course of attempting to resolve the account with RSI. Because of such cases, RSI has implemented a process whereby we submit to the client for approval. RSI believes that rather than turn down an offer made by a debtor, it will advise the debtor that RSI will submit to the client for review. The process dictates that if the guarantor/debtor makes an offer, RSI requests that he/she place the offer in writing. Should the city decide to entertain said settlement, RSI can be instrumental in providing debtor locate information as well as a financial profile of the guarantor, lending further support to accepting a settlement.The city RSI will only offer settlements, discounts or compromises if authorized to do so by the city. Such compromiseswill be dictated by protocols established by the city. RSI will first attempt to collect balance in full. If unsuccessful,it will attempt to set up suitable, short-term arrangements. If it becomes necessary to consider a compromise, RSI will follow all requirements set forth by the city.

Dispute Processing In the event of a dispute, proper procedures would be followed, and the recovery specialist would attempt to verify the validity of the debt. Upon notification of a dispute, action toward resolution typically happens within 48 hours of receiving notice of a dispute (allowing for weekends and holidays); in most cases, review begins right away. Resolving a dispute, however, may take longer depending on the nature of the dispute. The following narrative provides an overview of how RSI handles disputes.Dispute information is gathered and reviewed, documentation needed is pulled for review and any necessary resolution process is managed by RSI. RSI will status the account as a DIS (Dispute), allowing for easy tracking and reporting to the city. RSI will provide resources to generate itemized billing statements, copy backup documents and, where appropriate, copy other records to support the validation of a debt.The time it takes for dispute resolution depends on the nature of the dispute: for example, if the guarantor simply disputes the amount of the charges or is unsure the balance matches the service(s) provided (which is the most common dispute), then RSI can provide an itemized statement generally within a 24-48 hour window. If the dispute is more complex and they are disputing the type or level of service that was provided, those may take a bit longer to resolve as RSI may need to do additional research and/or involve other parties (such as our citypartners) to come to a final resolution. a 48-hour period.RSI can also produce reports/lists of accounts, by status, to immediately report dispute accounts to the city. To assist in reducing the number of disputes, RSI operates with aproactive customer service approach, as described below on Page 35.Once a guarantor raises a dispute, the data is logged with details such as the date, time, representative name, nature of the issue, escalation date, resolution date and resolution result.

Credit Reporting(If applicable and/or desired by the city)2As long as it is compliant with the FCRA and the revised CRA Reporting Guidelines, RSI Enterprises, Inc. does have the ability to, and for many clients does, report to the three national credit bureaus agencies, Trans Union, Equifax and Experian. RSI reports to each bureau two times per month. There are multiple strategies implemented such as a time-delay in reporting or reporting based on age and/or dollar amount of each account.Guarantors are, typically, reported to the credit bureaus on the thirty-first day following the initial mailing of the collection letter, unless otherwise requested by our client, disputed by the guarantor or delayed per regulatory requirements. There are other reporting rules that may limit or reduce the amount, type and process of reporting on some accounts, as it relates to particular debt types and/or city departments.For example, library fines, court fines/fees from traffic or parking violations, ordinance violations, etc. are samples of debt types prohibited from reporting.These are just a few of the restricted debt types. RSI will review all inventory for compliance with these rules/regulations and will work with the city to determine a plan of action for credit reporting on city accounts.

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If a client has cancelled an account or the account has been paid in full, RSI will report all status changes to the credit bureaus, as required by the Fair Credit Reporting Act (FCRA). All reporting to the credit bureaus is done electronically. A file is sent to the credit bureaus twice per month with all updates that have accrued during the previous period. This provides for a clean and efficient method of reporting changes to the credit bureaus.account notes also record the date, time, balance and status of reporting (i.e., dispute, paid-in-full, bankruptcy, etc.); as such, RSI is able to produce reports for the city containing any or all of the fields, identifying which accounts have been reported and the status if such reporting.As mentioned above, there are reporting rules that may limit or reduce the amount, type and process of reporting on some accounts. RSI will continue to work with the three CRAs to implement the necessary changes to the reporting processes in order to remain compliant with regulations. RSI will keep the city informed of any significant changes in credit-reporting requirements.Responding to Red Flags (Identity Theft) & Credit Reporting.RSI maintains a Red Flag Policy/Program that is utilized in our standard orientation and refresher training modules. RSI will gladly provide the city a copy of this policy upon request. Once a Red Flag is identified, no further recovery activity may continue until verification from the client is received and a determination on the identity theft allegation is made. If the client concludes that the consumer is the victim of identity theft, all recovery activity on the account toward the consumer is terminated. The account is closed, and all credit reporting is removed. If the client provides verification and concludes there has been no identity theft, the consumer shall be informed of this conclusion. If there has been a conclusion that there is insufficient evidence of identity theft, and the account is credit reported, the credit report must be updated Credit reporting is utilized as a collection tool to encourage payment by the guarantor prior to the reporting date, Financial institutions normally require that accounts that were previously reported to the credit bureaus be paid in full before further credit is extended. Guarantors who initially have refused to pay the debt, will often times satisfy the delinquency in the future in order to obtain lines of credit. This option is exercised based on the collaborative decision between RSI and its clients. This option, while recommended by RSI, is utilized at the discretion of the Client. RSI has the system capability and will report if it meets the needs of its client and their customers.Removing Accounts from Credit Bureaus. RSI will remove accounts from credit bureaus, as long as such a removal is in compliance with and allowable under the FCRA (Fair Credit Reporting Act) regulations. That being said, the process to remove credit reporting marks is not an automated process and requires manual review, on a case-by-case basis, to ensure compliance with all regulatory requirements. The Fair Credit Reporting Act has specific language, rules and expectations regarding the deletion of marks on credit reports; in addition, RSI, as a data furnisher, is prohibited from using certain language or tactics (such as promising removal in exchange for payment) that could be construed as debtors) on a case-by-case basis to ensure that such removal is legally compliant with the FCRA and falls withinthe scope of our contractual requirements.We typically, however, do honor client requests for removal and most debtor requests for removal (upon resolution) as well. Upon approval (either by client or RSI management), the assigned CSR/Admin will simply elete code so that the next time we run a credit reporting file (as described above), the delete/removal will be captured and reported to all three bureaus. If requested, we will also send a deletion letter directly to the debtor, with a confirmation code, documenting that we have requested a removal/deletion from their credit. We cannot, unfortunately, guarantee how long it takes the three bureaus to update their records once they receive our request/electronic file containing the deletion codes.Written FCRA Policy (Ensuring Accuracy & Integrity of Data Reported).RSIaccount load to our system, the data is scrubbed for accuracy as well as compared to the original file/data provided n, these scrubs verify bankruptcy and deceased statuses, which would then prohibit the account for being eligible to report.All payments and adjustments, including those reported by the city, are immediately applied to the accounts, reconciled back to the original files and balances updated accordingly. This entire process is automated, removing the possibility of human error during reconciliation; if there are any discrepancies, an error report is created, and On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 32
the account is flagged as a non-credit-reporting account. If the reconciliation of the data is verified/clean, the account is approved for reporting. Per the FCRA, we are required to accurately update the status & balance of any account; this means, reporting bankruptcy status upon notification and balance updates upon completion of the reconciliation. This series of checks/balances ensures the accuracy and integrity of the data reported as well as ensures compliance with all regulatory requirements.3) Describe accounts, including dollar thresholds for different levels of effort.

Skip Tracing WaterfallSkip tracing is a very important part of the collection process at RSI. RSI recovery specialists are trained professionals and very knowledgeable in all aspects of skip tracing. Skip tracing is primarily performed through our highly sophisticated and refined automatic skip trace waterfall process that is designed to identify and locate even the hardest to find individuals. Our proven waterfall process uses the most current technologies available, and multiple skip trace vendors. Our proprietary scoring models play a key role in both our skip tracing process and in our collection process as a whole; rather than skip trace based on dollar thresholds alone, RSI instead bases its waterwall protocols on the propensity-to-pay scores. This unique approach gives us a competitive advantage over other collection agencies. For additional dollar threshold criteria, including for skip-tracing, please see the previous workflow charts on Pages 20-24, above.An account is considered for skip tracing when one of the following occurs: 1) When an account has either a bad address or no phone number, or 2) If there has been no response, after repeated letters and calls, from the guarantor at either the address or phone number(s) provided. RSI performs basic skip-tracing activities such as scrubbing on all accounts for updated addresses and phone numbers, regardless of dollar thresholds. As outlined in the flowchart below, RSI's skip trace waterfall process allows an account to be matched up against numerous, distinctly different databases. RSI continually performs extensive market research to ensure we are employing only those skip trace vendors that utilize different databases. The companies chosen by RSI maintain a special partnership with us and adjust to the specific requirements of our clients' portfolios. We determine which vendors to use and the order in which vendors fit into the waterfall by factors such as propensity to pay score, account age, balance and type.RSI is continually evaluating vendor performance and efficiency to ensure the best resources are utilized. Accounts are sent out to skip tracing vendors via encrypted files and typically are returned to RSI within 24 hours, allowing each account to be systematically "scrubbed" against up to five different databases within the first week of account placement. Once the account is scrubbed through our proprietary database and assigned a propensity-to-pay score, the account then enters into the waterfall protocols based on the assigned score and/or missing data; the higher the score, the more levels of skip-trace the account receives. If accounts are returned to RSI with a telephone number, we place them into the new business dialer pool and work them according to established workflows. RSI continues to send accounts with invalid or no phone numbers for additional scrubs with our skip-trace vendors, at periodic intervals and as necessary, until valid contact information is obtained.If the skip trace waterfall process does not yield valid location information, or if later contact attempts reflect invalid information, accounts may be channeled into specialized call campaigns and research queues by collection representatives. RSI representatives perform in-house skip trace activities, including the tools listed below:Postal Change of AddressElectronic Address Correction (EAC), Lexis Nexis, Ecliptics, eBureau and DBT to help gather new addresses.File Research: The first step in trying to secure a phone number or address for the guarantor will be to review the file for any additional information. Lexis Nexis: Lexis Nexis provides a direct link to phone, address and eBureau updates/scrubs. These searches can be completed manually, on a case-by-basis, or through batch processing for larger volumes.Financial Databalance over one hundred dollars. Once the data is obtained, RSI will contact any resource listed in an attempt to secure location information.

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Tax Assessor, Libraries, Post Offices and Voter Registration: In an attempt to locate guarantors, all of these resources will be explored and contacted.Directory AssistanceOnline White & Yellow Pages: RSI will use these tools to determine the most recent and up-to-online, making available reverse lookups and nearby searches.Internet Skip Tracing Databases: RSI has located over five hundred Internet databases from which to locate guarantors using the existence of different historical demographic data.Interfacing with numerous databases is a primary tool used to locate the guarantors and their assets. The investigative process is organized, methodical and highly successful. Staff looks for alternative funding sources within the grasp of the guarantor and how to use that information to effect payment, either voluntarily or by other methods that may be applied by the city. RSI's search and location efforts are nationwide in scope and are designed to provide detailed information from multiple sources of data. Potential location information is evaluated and used to generate call campaigns and other attempts to validate and contact guarantors. RSI's comprehensive approach ensures that we obtain as much information as possible and use that information to effectively identify where guarantors are located so that we maximize recoveries in accordance with client expectations.

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4)accounts that will be pursued through legal action and any parameters used for these accounts, such as minimum balance for suit.Legal / Litigation Services for Collection (Only if applicable or desired by the City)RSI can and does for many clients, provide legal services (upon approval from the client). Upon receipt of accounts, will work and process the accounts according to the described collection processes. Once all efforts have been exhausted or the guarantor flatly refuses to cooperate, there is no documented payment history and the guarantor demonstrates the necessary financial means of paying, the account is then recommended for legal pursuit. In order to maximize efforts in a most cost-efficient manner, RSI attempts all other means of resolving the balance prior to recommending legal action. Once all means have been exhausted and verifiable assets have been found, RSI will consider legal costs vs. potential outcomes to determine if the balance supports a maximum rate of return in this type of scenario. Typically, it would not be considered cost effective for the Client or RSI to legally pursue any balance less than $500.its attorneys for legal processing. RSI has created and uses an approval form for this process. Typically, RSI will finalize an asset investigation and a financial profile on an account prior to recommending legal action. If the asset staff will then request written approval from the Client to pursue legal action. Once approval is received, RSI submits the account and all supporting documentation to the attorney within 48 business hours. While RSI waits for client approval, a notification is sent to the guarantor informing them that RSI has recommended legal action on the outstanding balance. Many times, this will generate at the very least a call and sometimes payment. The RSI legal team will provide assistance to determine if a case should be referred for potential litigation.The procedures for pursuing legal services outside of the State would remain the same, with one exception; that exception is that the account would be referred to an ACA MAP attorney in the same location/City/State/Country where the guarantor resides. This attorney would be submitted and approved by the city prior to commencement of legal pursuit on out-of-state accounts.Litigation Process Flowchart

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5)olicies and procedures on handling customer complaints, escalation and resolution, including expected turn-around times for responses.

Customer Service / Interaction Between RSI and Delinquent Debtors)RSI's entire approach is based on its customer service, which encourages more problem resolution, leading to higher dollars collected, fewer complaints, and better business relationships. The first item addressed in its er service and guarantor satisfaction. RSI clearly understands and teaches its staff that providing a positive solution for its clients and customers comes before all other concerns of the business. The Recovery Specialists know how to utilize a customer service and problem resolution approach; thus, ensuring guarantor satisfaction. RSI also provides follow-up training at least once each quarter around ustomers to monitor/track actual guarantor satisfaction, RSI employs the following procedures/methods: Client Priority:The recovery specialist(s) are specifically assigned and dedicated to each client (provided inventory is given the dedicated time and effort to ensure complete processing of accounts. By developing experts on the Client accounts, it leaves no question that these accounts will be treated with the utmost priority by dedicated staff. The Client is extremely important to RSI and would receive the highest level of effort, quality of resources and attentiveness of service from RSI. Outstanding customer relationship management and superior performance by RSI staff will be the minimum standard for RSI on this program. With regard to client communication, all recovery specialist(s) are responsive to client requests and are professional in all interactions. When necessary, procedures will be implemented for client/ recovery specialist(s) contact; otherwise, client interaction would be between client/RSI manager(s). As specific client needs are identified, RSI will add staff as necessary to ensure proper standards and expectations are met.Quality Review:and rated according to set standards, including customer service / guarantor satisfaction. Each individual personnel will receive call monitors on an ongoing basis and is presented with Quality Feedback forms 3x / week. Proactive Customer Service:RSI has created and implemented a proactive customer service process, which has proven to be effective in ensuring guarantor satisfaction. Rather than waiting for a complaint to arise, RSI is proactive in providing customer service to ensure that any possthat any time a representative believes that a call did not go the way they expected, or that the guarantor, while not complaining, did not seem entirely satisfied with the call, the representative sends the account to a Team Lead or Supervisor. The team Lead or Supervisor will contact the guarantor and ask them about the call with our representative. They will ask if the guarantor got all their questions answered, if their issue/concern was resolved to their satisfaction, if the representative was professional and courteous and/or if there is anything else we can help all contracts in managing guarantor satisfaction. RSI prides itself on receiving very few guarantor concerns / complaints and ensuring guarantor satisfaction on behalf of our clients. These results are realized as a result of its customer service and problem resolution approach.

Escalation ProcessIn the event of customer complaints (which RSI has successfully managed to a minimumwill review the complaint and the case, and work with the staff in identifying the reason and resolution to the complaint within a 24-hour period. All complaints will be communicated to the city within twenty-four (24) hours anticipated to consist mainly of issues related to balances owed. In those cases where the complaint was related to an RSI activity, management will carefully review the case, interview the staff, document its findings on the case and provide all of this information to city. Employees will be warned of their potential risk of termination in the event of a minor violation of RSI and the Client standards. Any material breach of these rules, regulations or codes, including up to two formal complaints, is subject to immediate disciplinary action. RSI will maintain On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 36
help in resolving customer issues. RSI will follow up with the city on the resolution of all complaints.A manager will make a final decision as to the disposition of the problem account based on the situation and client needs. If needed, RSI will consult with its contracted counsel to determine appropriate responses and within specified deadlines, as requireRSI utilizes a proactive customer service approach whereby immediate follow up with a guarantor serves to decrease and/or eliminate most issues, complaints, or disputes; thus, reducing the need for escalation in most cases. Please see the narrativeon Page 35 (above)for a descriptionlimit the number of complaints across all client projects. 6) Describe in detail your organizations approach to achieving reasonable collection targets.

Unique Approaches that Serve to Improve CollectionsRSI can be set apart from its competitors by their Advanced Technology, Extensive Collection Experience and Knowledge, Service Enhancements as well as their ability to implement Custom and Unique Solutionsto their clientele. Throughout this proposal, RSI provides a specific and detailed representation of unique processes by which RSI proposes to apply in servicing this contract. These processes, along with those listed below are just a few of the procedurekey points and unique avenues that RSI has used with existing clients and proposes to use to achieve collection success on this project.RSI believes there are several components that contribute to collection success, such as collection approach, methods of collection, proper workflow distribution, account processes/metrics, telephone techniques, account preparation (scoring), advanced technology, financial profiling, knowledge of the industry, and history of proven success in specific industries/demographics.As explained in detail below, RSI proposes to utilize all of these tools, resources and methodologies to improve cost savings, maximize revenue and achieve collection targets.COLLECTION APPROACHRSI's entire approach is based on its customer service approach, which encourages more problem resolution and less "collection agency dunning," leading to higher dollars collected, fewer complaints, and better business relationships with its customers. RSI takes a very professional and work-with approach in pursuing guarantors for payment as well as working with them to obtain more information that may help them in resolving the account. RSI employees have been called the "Good Guys" in this industry because of their professional manner and tone on the telephone.balance, age, employment status and the existence or non-existence of certain data that tend to lead to higher liquidation of the balance. Then, RSI works to identify those accounts with the financial profile and/or third-party potential for maximum reimbursement, concentrating disproportionately on this inventory. Depending on the age, balance and disposition of the account, a varying number of collection dunning notices are sent, and calls are made, but the higher frequency of these efforts to locate guarantors is targeted at those accounts that can produce maximize reimbursementunder client defined resource constraints, while improving service and dispute resolution to guarantors in an effort to eliminate complaints tied to the collection effort.METHODS OF COLLECTIONThe management team will develop a strategy to best impact the new cases. This strategy will include such The account prioritization will consist of ranking cases containing demographic, personal and age data in order to work them more efficiently. The communications with guarantors can be customized to include specific payment protocols and any other information the client desires. based on current information.

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The strategy used by the management team at RSI will be to identify early program success and further development opportunities by tracking the following key-indicators: case workflow, skip inventories, contact rates, promise payment close ratios, payoff inventory and close rates, total case inventory and dollar amount, active case inventory and dollar amount, terminated and suspended case inventory and dollar amount, etc. With this information, RSI is able to monitor the activity and opportunities for improvement in this program.ACCOUNT WORKFLOW STRATEGIES &WORK STANDARDS / METRICSproprietary scoring process and prioritized based on date of service, age, balance, demographic information, potential liquidations, employment status and the existence or non-existence of certain data that tend to lead to higher liquidation of the balance.Then, RSI works to identify those accounts with the potential for maximum reimbursement.The work standards vary from client to client and are based on the needs of that client. Factors that determine of the account file. Different work standards may also exist on the same client as needed. The protocols established for account flow depend on the type and status of each account. Specific production standards have been created ith its clients nationwide. It is imperative these thresholds are met, as each agent will be held accountable. Please see Pages 20-24, abovefor detailed workflowstrategies/work standards that support meeting targets.TELEPHONE TECHNIQUESRSI will develop call center training scripts specific for the city accounts and ensures the call center maintains the capacity to provide service in multiple languages. The Recovery Specialists are given the autonomy of handling each call and contact on an account-by-account basis and working on the most efficient resoluextensive experience in managing collection receivables, its staff has found that being flexible in its call scripts/talk-offs has served to enhance the results. However, RSI does provide guidelines to the representatives that can help them maximize efficiencies and consistency on these types of programs. While we do provide some standard dialogue/guidelines, the recovery specialists are trained to be flexible and adapt their conversations to fit the nature of the contact with the guarantor.CASEPREPARATION (SCORING &ACCOUNT SCRUBS)numbers, possible bankruptcy, deceased and/or payment plan/financial assistance qualifiers as well as run the accounts through a propensity-to-pay scoring model. Once those accounts have been identified and segmented, ss and prioritized based on date of service, age, balance, demographic information, potential liquidations, employment status and the existence or non-existence of certain data that tend to lead to higher liquidation of the balance. Then, RSI works to identify those accounts with the financial profile and/or potential for maximum reimbursement. All of these scrubs are completed within the first 48 hours of loading an account; some scrubs will be repeated, periodically, throughout the life of the account to ensure we have the most accurate and up-to-date information on each guarantor/account.This proprietary scoring model creates the opportunity to improve collections for all its customers. The first step in ensuring success is to prepare the case(s) in such a way that, not only will the case have the most up to date information but will also be at its most collectable upon the first contact with the guarantor. In order to prepare the account properly, RSI uses a unique, proprietary scoring model that considers multiple factors in determining financial leverage and collectability. This tool is one that sets RSI apart from its competitors.RSI has created and implemented a scoring model that is tailored to each specific client, their type of debt and their unique apply a collectability score within 24 hours of loading an account on its system. Based on its success on other clients, the model demonstrates that it improves productivity as much as 5%-10%, subsequently resulting in higher collections, greater savings for the client and improved ROI on any program.

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GARNISHMENTSOnce a case is referred, one of the first steps taken is an employer/asset investigation. Locating employers and assets includes an intelligent pursuit of information on the telephone, requesting and reading financial reports and accessing national databases. This process provides distinct information to RSI regarding guarantors. Some reveal location, which can be further researched to determine if property is owned, and some provide recreational assets purchased in lieu of paying obligations. As with the tax intercept process, having RSI complete the garnishment process, improves efficiencies and eliminates resource costs for the city.ADVANCED TECHNOLOGYThere are many facets to using technology to improve processes and results, as described throughout this proposal. Technology such as an advanced receivables system, VoIP Predictive Dialer, VoIP interactive telephone system, Texting Communications, Client View Web Portal, Propensity-to-Pay Scoring Modelsetc., serve to improve productivity by over 200%. 0-47, below).The law of numbers proves that the more productivity (calls made, contacts established etc.), the more contacts aremade and subsequently, the more dollars are recovered. This is due to the simple fact that technology exponentially increases productivity, while reducing time spent on manual tasks and uncollectable inventory. These tools not only increase efficiencies, save money but assist in improving collections as well.EXTENSIVE INDUSTRY EXPERIENCE AND KNOWLEDGERSI has over thirty-six (36) years of experience with successful collections and recovery management, including in the public/government, bad-debt collection space. Contractors must have knowledge of the processes, procedures, regulations and governing guidelines before it can be successful in applying strategies to improve collections. In addition, this history and experience has served to improve our internal efficiencies, process, procedures and workflows, as we know what to expect and how to apply the most effective strategies. RSI has This is an advantage that RSI has over its competitors!While others will spend time trying to determine how this program works, what strategies work best and how to improve efficiencies, RSI has already established those efficiencies, thus maximizing its efforts in the right places, on the right accounts and initializing the best procedures to affect payment quickly, which in turn, transfers cost savings to the city. Our history and knowledge of similar programs allow us to get a quick start and eliminate inefficiencies that would otherwise hinder us from focusing on improving collections.-the-top customer service and noticeable an asset to not only RSI but to Rclients a working relationship full of communication and positive results. RSI is continuously Red Flags and PCI compliant with regular mandatory refresher courses attended by all personnel. RSI is active with their knowledge on Red Flag awareness and utilize an in-house compliance team to stay up to date with all FDCPA rules and regulations. RSI utilizes efficient processes already in place and streamlined to meet their client expectations. With all of these aspects involved within RSI, RSI clients reap the benefits and awards without the added costs.

HISTORICAL COLLECTION SUCCESS RATESRSI Enterprises, Inc. Annual Collection Volume 985,000 Accounts / $967 MillionTotal Volume of Inventory 3.7 Million Records (current & archived) / $1.2 Billion Open-Active Average Days to 1stCollection from Patients18 DaysAvg. Bad Debt Collection %17% Gross LiquidationRSI understands the importance of measuring, tracking and trending success through quality procedures and statistical analysis, including but not limited to collection performance, customer complaints, client interaction, review of reports/files and recommendations for change. RSI has experience in collecting various debt types, including but not limited to healthcare facilities (hospitals, physician groups, ambulance programs), clerk of courts (various debt types), municipalities (various debt types), taxes, child support, traffic citations, auto loans, credit cards, etc.

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:The type of debt being pursued, the size of the balance, the age of the account, the accuracy and well-being of the guarantor account information, how much account activity has previously been conducted and by whom, along with the location or demographics of the guarantor. All elements being good, our average recoveries (company-wide and on all debt types combined) range as follows:Average NET & GROSS Recovery, by Age & Debt TypeDebt TypeAverage AgeAvg. "NET" RecoveryAvg. "GROSS" RecoveryClerk of Courts0-180 Days50%38%Clerk of Courts181-730 Days44%29%Clerk of Courts731+ Days14%9%Cities/Municipalities (Various Debt Types)0-180 Days28%18%Cities/Municipalities (Various Debt Types)181-730 Days15%12%Public Utilities0-180 Days29%20%Public Utilities181-730 Days21%17%State (Child Support)731+ Days11%6%State (Taxes)731+ Days15%14%Financial (Credit Union / Loans etc.)181-730 Days13%10%Medical (Early Out)0-120 Days38%32%Medical (Third Party Insurance & F/U)0-120 Days69%58%Medical (Bad Debt)121+ Days18%13%County Medical Debt0-180 Days23%13%County Medical Debt181+ Days9%10%Recovery, by Age & Debt Type, after ReferralDebt TypeAverage Age @ ReferralAverage NET Recovery @ 30 DaysAverage NET Recovery @ 90 DaysAverage NET Recovery @ 365 DaysMedical Bad Debt263 Days2.3%12.8%18.5%Government Bad Debt (Incl. Taxes)555 Days4.5%14.1%23.7%Financial / Commercial Bad Debt606 Days3.7%8.9%15.6% Paid in Full (PIF) RecoveryTime of Paid-In-Full% of Total PIF #% of Total PIF $% of Referred #% of Referred $(0-6) Months36.7%26.4%13.1%8.1%(7-12) Months30.7%28.7%11.0%8.8%(13-18) Months13.7%16.6%4.9%5.1%(19-24) Months7.6%9.3%2.7%2.8%(25+) Months11.8%19.0%4.2%5.8%**Average Net Collection(All Debt Types/Buckets):26%**7) Describe your remittance. Additionally, describe what methods of payment your company allowsTechnology, Tools & Resources for Collectionsprocesses that affect the collection workflow. RSI management uses all the best tools and technology available to manage the workflow and performance in the office. By utilizing advanced technology, RSI has minimized the labor necessary to exhaustively pursue each account on the system. Automation has also permitted RSI to provide clients with required reports in the desired formats without expe On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 40
experience and unique techniques toward collections give RSI an advantage over the rest of the industry. RSI will review the critical features of client host systems in order to provide the best customer service and performance possible. Multiple levels of passwords and logons secure RSI systems. Passwords are required to be changed on regular intervals. RSI has the advantage to utilize the following in order to assure complete competency in providing quality collection services:The Collector Systemfrom Ontario Systems Internet (VoIP) DialingTechnologyOnline Payment System (Portal)VoIP Telephone System(Monitoring & Recording)Teramind Monitoring PlatformScoringPropensity-to-Pay Scoring Model(s)Client View Portal - (Web based Tool for Reporting and Account Review)its vast experience managing bad debt receivables with its systems, and linking with client-host systems, RSI will be ready to get to work and communicate its outcomes to the client more quickly and successfully than any alternative in the market.

Systems OverviewRSI has established a nationwide Wide Area Network (WAN) enabling our systems to be centralized, yet accessible, from anywhere in the country. RSI utilizes The Collector Systemfrom Ontario Systems. The software was developed specifically for receivables management. All products are regularly updated with the advantages over its competitors. Primary components of the system are:Nationwide Frame-Relay Wide Area NetworkRoutersInternet and FTP Server Protected by SophosFirewallEncrypted TunnelsSophos Virtual Private Network Concentrator RS/6000 Primary Server / LINUX Operating SystemV-Mark, Universe Database Management SoftwareThe Collector SystemSoftware/TrainingOff-Site Data Storage/ArchivalClient View (CV) Client Web Portals for Reporting, Account Access & Inquiriesas well as describes the Client View portal available for Client staff to securely access all account information, including activity, account review, performance, and ad hoc reporting; however, beyond the required information, RSI provides a complete description of all its advanced technology used to securely perform services.THE COLLECTOR SYSTEM (CUBS)BY ONTARIO SYSTEMSHOST SYSTEMto see, with sorting capabilities limited only by the existence of the data element being tracked. The Collector SystemTMpermits the creation of a nearly infinite number of fiscal records, which can be used to customize the tracking and subsequent reporting of certain client-print and save data electronically from any field. Rarely are any special reporting needs require custom programming. Information needed by RSI customers can be downloaded into text files or downloaded directly into Excel spreadsheets or similar industry standard Microsoft products. Some examples of The Collector Systemare:Automated account assignment by electronically through client system interfaces or exchanged files.Automated matching of multiple debts for the same responsible party.Management-defined work strategies based on scoring, daily prioritization by collectability & classification. Performance, productivity, and goals are tracked dynamically and viewable at any point during the day.Agents track and tickle files for critical events such as promises or callbacks.Internet use to locate debtors, access various data incl. name, address, SSN#, telephone, licenses, etc.Agents can use macros and single keystrokes to move anywhere in the account record, accessing detailed screens and windows available to quickly view and update vital account information.

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System auto-monitors promises & payment plans, including reminder, delinquency & default notices.Action codes w/expanded text, plus narrative abilities, documenting account activity and productivity data.Account balance histories with assigned amounts, payments/adjustment detail are easily accessible.VOIP DIALING TECHNOLOGYThere are several advantages to using the Internet VoIP (Voice over IP) dialing services, such as:The dialer begins dialing/broadcasting at a predetermined time and can be easily adjusted to the number of calls per minute and other callback strategies/criteria. It has a very user-friendly web interface and reduces traditional costs associated with standard dialing systems.The average agent dialing for 7-hours/day can attempt up to 3x as many calls in a day (300+/day).The system increases contacts by 200%-300% for each agent by screening no-answers, disconnects and busy numbers, transferring only calls that are answered by a live person while auto-rescheduling busy numbers.The VoIP dialer can leave thousands of messages/day with link-back options to push calls to the agents. Each attempt is automatically recorded and documented, including the result of the attempt.The VoIP Dialer includes real-time graphic reporting of all current call campaigns with both call and line availability status indicators.SAMPLE DIALER / CALL RESULTS REPORTTCPA COMPLIANT, MANUALLY APPROVED CALLING (MAC) SOLUTION / TECHNOLOGYThis technology serves to improve/increase manual dialing performance up to 10x! Unlike Preview campaigns which require agents to wait through No Answer calls and busy signals, MAC allows agent to be presented live answers only. While still requiring human interaction to initiate the call, your active agents spend less time waiting and more time speaking with your customers. Naturally, this built-in functionality allows our call center to maintain TCPA compliance while not jeopardizing efficiency.How It Works:With the Manually Approved Calling (MAC) solution, a subset of agents can review and approve calls for other agents. During approval, agents are presented with 3rd party contact information in the same format it appears on the agent screen during the call, giving the information they need to decide if the call should be Add a Human Element to Manual Dialing:Unified interface seamlessly switches between approving calls and taking calls.Reps see all account information available, allowing them to quickly review each account in real-time.No calls are placed without an assigned agent first approving the specific call to be made.VOIP TELEPHONE SYSTEM CALLMONITORING AND RECORDINGRSI maintains a state-of-the-art VoIP telephone system which gives us the ability to monitor any calls (inbound or outbound), record calls, save the call electronically (.wav file), take over a call by the Recovery Manager (if necessary), monitor call length, queue status, dropped calls, disconnects, etc. in real time. The features of this system allow RSI managers, via the Web based software, to manage all call queues at the click of a button. This

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system can also be linked with our VoIP dialing software to provide the same statistics for dialer calls. An ote locations as well as provides efficiencies related to being on one phone system. a central phone system are enhanced. In the event of an emergency in one area, we have the ability to route calls to the other call centers with the click of a mouse.This tool has virtually unlimited ability to provide feedback and training to our staff as well as provide a recorded record to resolve any complaints that may arise. All controls are accessed securely via web-based software. Reporting is also available on any agent line including call length, call type, busy time, outbound calls, inbound account or place note to be attached the call recording for future use. The ability to manage the calls more efficiently, listen to call recordings and request reports at any time and on any feature, will assist RSI and its clients in trending call volumes, call types etc., which will assist both in staffing projects to glean the best TERAMINDcomputer screen in real-time while listening to calls. The product works much like that used by technology staff to insert them remotely into your PC for maintenance and monitoring. Teramind allows a manager to view ty to send instant, pop-up messages to the recovery specialist assisting them in managing a call/account and properly documenting. If as if they are sitting at the workstation. This is an essential feature when/if a supervisor takes over a call, where they can control the phone line and the PC to resolve the call.An additional feature permits managers to, at the click of a button, record keystrokes/screens of the chosen PC. It records into a .wav file, much like a video. This technology, in conjunction with the VoIP phone system, provides excellent training and feedback as we can see what screens are being accessed and if proper protocols are being followed. We use these technologies to assist the recovery specialists in maximizing their efforts, but the best use of this product is for training. With the use of the recorded call and the recorded screen /keystrokes, we can initiate role playing and account review to assist in training the recovery specialists on the best way to handle all calls/situations. This tool is invaluable in increasing productivity.TEXTINGRSI utilizes a texting platform to communicate with guarantors, obtaining consent where required. This powerful platform, insightful reporting, and top-tier support drive world-class results, enhance engagement, and increasesefficiency. Industry-leading Text IQ and daily Deactivation logic monitoring give us the data we need to reach the right person, with the right message, at the right time. We can customize the outbound communications as well as set up two-way messaging to ensure this communication tool resonates with the guarantors. The following are some of the features of this collection tool:Clean database with opt-in strategy and subscriber managementTailored connections with one and two-way text messagingInbound and outbound SMS or MMS / Compliant with Opt-out strategies and trackingFrictionless links to key assets via trackable links using smart URLs Getting guarantors attention and gaining their trust is a challenge, no matter which way you spin it. Text messaging is a proven way to drive improved results, more on-time payments, and improved operational efficiencies on the collections program. By connecting with guarantors in this manner, we are meeting the guarantors in real time, where they are; after all, 97% of Americans use their texting app at least once per day and 85% of all consumers prefer receiving texts over calls and emails! This highly regulated industry also has strict compliance requirements. Being on the right side of the regulators is not just the right thing to do but it makes good business sense.Leaders in consumer finance rely on text messaging to increase on-time payments and operational efficiencies. 98% of customers respond to text messaging. Let text power your communications from loan origination to payment reminders and collections. This platform gives us everything we need messaging, payments, reporting, and compliance in one place, to build trust and response from guarantors.

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CLIENTVIEW(CV)(A Client Access Web based Tool for Reporting and Account Review/Analysis)RSI maintains a real-time, Client interaction tool called Client View (www.ecliptics.com/ecs_client_view.html) securely review accounts, review standard reports, create custom reports, request account cancellations or edits, report account status changes, securely upload documents or correspondence, securely upload data files, or send messages(like an e-mail system) regarding a specific account. The following is a list of components and features of Client View:Secure Log-In / Main Menu: Account Inquiry, Reports, New Account Entry, Data Uploads, & Messaging.The Account Inquiry Screen allows for individual account search/requestby account number, name, phone number, social security number or other custom fields (IE balance owing).The New Account Entry allows for manual upload of individual accounts outside of the batch files uploading.encrypted and PCI/HIPAA compliant.The Message Center allows sending/receiving of secure messages. This can be restricted as required. The Reporting Screen allows for the user to access any one of 12 standard reports or to use the Report Generator tools to create a custom user report. Once custom reports are created, they can be saved, edited, rerun, and shared with users depending on preferences. All reports (standard and custom) can also be downloaded to .XLS or .TXT files for printing or sending electronically to others. Each client can be assigned as many User IDs and Passwords as is desired. Restrictions can be placed to limit what data each user can review or edit. For example, a low-level user may only be able to send an account message, while a high-level user can create and review custom reports. The screenshots below demonstrate the easy view of this portal.ACCOUNT SEARCH SCREENACCOUNT DETAILED REVIEW SCREEN

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SCORING(PROPENSITY-TO-PAY)Standard Model: to pay is critical in the early stages of account collection. This model is utilized at the front of the process and loaded into its host system, providing RSI with immediate trends, strategies, & protocols to direct the workflow.These scoring models are developed through analysis of social, economic, demographic and guarantor account activity information. This model provides more than a credit score; it provides a recovery score, which is weighted by recovery data indicators and highly predictive of the likelihood a guarantor will pay a given debt. This model immediately identifies which 50% of accounts assigned will generate 85% of the dollars recovered, thus giving RSI a clear direction, on which accounts to focus certain effortsthis model when needed, but will then implement its proprietary model as the account ages. The combination of the two models puts RSI is the best position to identify the accounts with a higher propensity to pay, while directing appropriate collection efforts. This product also provides RSI with business analytics to forecast payments, monitor & control workflow, providing specialized reports/graphs of trends that assist in realizing the best ROI.Custom / Proprietary Model:RSI has a proprietary scoring model in use, creating the opportunity to improve collections for all its customers. The first step in ensuring success is to prepare the case(s) in such a way that, not only will the case have the most up-to-date information but will also be at its most collectable upon the first contact with the guarantor. In order to prepare the account properly, RSI uses a unique, proprietary scoring model that considers multiple factors in determining financial leverage and collectability. This tool is one that sets RSI apart from its competitors.While there are many scoring models available for purchase in the collection industry, there are none that are specific to any particular type of debt, nor are there any that can be tailored to a specific demographic. Most scoring models are generic and base the scores on how guarantor have paid their overall debts in the past (I.e., 30 days late, 60 days late etc.), regardless of the type of debt. Studies and statisticshave shown that you must separate the type of debt before a true analysis can be completed. For example, it has different. Logic prevails here, proving that people are more likely to pay their car payment first, as they fill a basic ecting the demographic characteristics, the financial characteristics and factor in historical data showing what types of debts are considered most important to a guarantor.Based on that model, RSI has created and implemented a scoring model that is tailored to each specific client, their type of debt and their unique demographics. RSI uses this information as well as historical data (if applicable)

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from each particular program to establish its model that is unique and specific to each client. Some of the data elements used in creating the model are zip codes, debt type, age of account at the time of referral, frequency of payment (I.e., never paid, pays once every six months, etc.), comparison to other debts owed and in what order they pay, age from time of referral to first payment, amount of payment (and whether or not that weighs on frequency of future payments), financial ability to pay, etc. This list comprises only a small percentage of the elements used in determining collectability of an account/case.-in mechanism that then uses this score to prioritize the work queues in such a way that the account is at its most collectable on first contact. This eliminates the need for redundant efforts over a long period of time before determining if a guarantor is likely to pay. In essence, it allows RSI to collect more money faster. Another exciting feature of this tool is that it is not static. The program records the initial score at the time of referral but is constantlyre-evaluating the probability of payment and updates the score accordingly. This is done automatically so that Managers/Staff have the most current information at their fingertips. They create workflows and calling queues based on this tool. This is important, as a case may not be more financially sound and collectable in 3 months.Based on its success on other clients, the model demonstrates that it improves productivity as much as 5%-10%, subsequently resulting in higher collections. We expect that, once applied, it will serve to improve any contract debt collections in much the same way. While RSI does not yet have enough empirical or historical data on the Client demographic to determine to what extent the collections will improve; however, the model and use on other programs supports that collections will improve overall. How that is accomplished is dependent upon the way the model is set up. As described above, the score assists in prioritizing the work queues in such a way that the account is at its most collectable on first contact. This eliminates the need for redundant efforts over a long period of time before determining if a guarantor is likely to pay. It allows RSI to collect more money faster. RSI believes this model can be appropriately applied to any debt collections and having thirty-six (36collections, RSI has more than enough data, knowledge of the demographic and type of debt to establish a unique scoring model, made specifically for its clients.SPEECH RECOGNITION SOFTWARE:REAL-TIME GUIDANCE,COACHING AND QUALITY ASSURANCE This software is an advanced technology platform that guides agents through varying conversations in real-time. scoring 100% of calls, and alerting managers for coaching moments in real-time. Powered by AI, it listens to both sides of a conversation and visually prompts agents with the best things to say, live on every call. This product allows us to scale best practices to thousands of agents with the push of a button and get immediate insight into Real-Time Guidance:Shows agents what to say, measures what is working and scale it instantly. Real-Time Coaching:Automatically alerts managers for key coaching opportunities and allows them to coach in the moment agents need it most. It drives immediate improvement by coaching in real-time vs. post review.Real-Time Quality Assurance:Effortlessly score 100% of calls and quickly identify where conversations go wrong. This platform puts an end to random sampling and hours spent manually reviewing/scoring calls. Guidance Coaching Quality AssuranceThis platform shows reps how to stay compliant and correct mistakes in real-time, while keeping track of every conversation. This bulletproof compliance ensures excellent conversations, reduced liability & complaints, and improves performance. The platformall times. platform is built for Real-Time, Built for Real-Life and Built for Real Results happier customers, higher conversations, and statistically valid return on investments (ROI).

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Method of Documenting, Retaining & Reporting Activity & Account RecordsThe RSI system maintains automatic documentation of all account activity from the referral of the account to the final liquidation of all obligations. Each account is assigned a unique number for internal use as well as the guarantor account/reference number referred from the Client. RSI has the ability to track and inquire on accounts by name, the Clientlicense number or any other unique identifier provided by the Client.The accounts maintain chronological records of every activity that occurs on an account from the time the account is referred until the account is terminated and returned to the Client.Examples of account management records maintained by the system are:account notes, marked with the date, time and user initialsrecords of notices mailed / collections receivednew demographic info obtained & storage of old data in memosinformation transmitted to the Clientlocate attempts/new address/employment/phone numberscollection attempts / payment schedules / contacts / outbound and inbound calls / promises bookedIn addition, the collection system classifies an account as active, dispute, skip, bankrupt, deceased, promise, legal action in progress or other appropriate status. Based on the account status, collector strategies and management account flow strategies, the system automatically determines the next required action for the recovery specialist to take as part of his or her daily work events. Accounts are tracked by status codes, work dates, activity codes, and work frequencies, missing data, payment closing ratios and account activity as well as many other ways.Reports using this data are generated and audited daily by recovery managers to ensure that accounts are being properly and adequately worked and documented. Every collection attempt and activity are tracked on a daily Collector Activity Reportare updated daily and provided to recovery managers and the recovery specialist for monitoring pace and requirements to meet goals for the month. PAYMENT PROCESSING(Complies with Work10electronic & phone )A secure, Internet-based, EFT (Electronic Funds Transfer) system which enables RSI to create and schedule electronic payment transactions from a checking, savings, or credit card account. This system can be used for a broad range of transactions including one-time credit card, debit card or check-by-phone deductions, on-line payments, automated recurring payments, and customized electronic payments. RSI also maintains an online (virtual) Negotiator, allowing the guarantors to negotiate a payment arrangement, settlement, or other terms, online, based on parameters established by the Client. This unique tool allows a mechanism for increased guarantor access and payments, without extending additional costs. This technology is Internet-based, which allows easy integration with existing billing systems, Web sites, and other account management software.Check-by-phone payments Automated recurring payments Online Payments (Web Portal) Customized monthly electronic payment plans In addition, RSI has the technology to process online payments, both in a pre-collect and bad debt capacity. RSI owns and operates a proprietary payment process service for its extended business office partners. RSI processes its pre-collect transactions for its customers through its company/service Payment Processing Services, LLC.Payment Processing Services, LLC will process credit card and ACH transactions through a secured, encrypted and federally compliant Web Portal. The primary purpose of PPS, LLC is to offer a resource/medium to its customers for accepting and processing credit card and ACH transactions efficiently and with little expense. RSI can accept, via this Web Portal, credit cards, Visa Debit Cards, electronic checks (ACH), etc. As a normal course of business on our full-service receivable projects, RSI utilizes this payment portal to secure payment on its -based, this allows for easy integration with existing billing systems, Websites, or other account management software.In an effort to remain succinct and not duplicate responses, please find a list of customer payment options and screenshots of this payment portal, previously, in , Page 26, above.

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Account Return / Suspend / Cancellation Policy (Single or Multiple Accounts)(Complies with 9 )Once notified to cancel an account, RSI will cease all efforts, including calls, notices as well as credit reporting, recall, RSI would zero out the balance and place the account in a cancel/close status. The account records maintain chronological records of every activity that occurs on an account from the time the account is referred by the Client until the account is terminated and returned.The returns can be reported electronically, either at the request of the Client or through an automatic file/process, via the Client View Web Portal or internally by RSI. With its current clients, the process varies based on the needs and expectations of the client and their inventory. RSI, as a standard part of its month-end reporting to clients, provides a cancellation report for accounts cancelled the previous month. This report will inform the client regarding accounts that have been cancelled (closed and returned), along with reason codes, including but not limited to Uncollectable, Bankruptcy, Deceased, etc.This report should accompany and match the required return -time through the Client View Web Portal (CV).RSI can also provide the option to receive an electronic file in a designated format. RSI will communicate regularly with the Client regarding recommendations for closures. Cancellation ReportThis report will inform the client regarding accounts that have been cancelled, along with reason codes. The report can be provided electronically or via a data file, in a specific format.

Grouping / Separation of the Client5 )client codes. These client codes would be representative of each department or agency at the Client. As such, guarantor accounts can be coded offers multiple layers of flexibility in grouping criteria, sub-address, social security number etc. RSI can assign weights to each of these criteria and when a minimum score (designated by the Client/RSI) is reached, the account then qualifies for grouping/packets. This ensures the accuracy of the linking of accounts. In addition, we can establish packet categories which define what other account types or client codes that a single account may be grouped with. As with the criteria above, the categories can be established based on pre-defined criteria from RSI/Client. This grouping also allows us the flexibility to produce letters/notices/bills at a group/packet level for each guarantor, if desired by the Client.Once loaded, the system auto-groups or packets accounts together when the same guarantor exists. While each account remains its own separate and distinct record, it is linked with all of the other accounts for that same guarantor, regardless of department. Based on this coding and linking of accounts, when RSI sets up payment plans or applies payments, the recovery specialist is auto prompted to include one, some or all of the same the system has the ability to also link all those same accounts into one payment plan if that is the desire of the guarantor.When a payment (or adjustment) is received, RSI uses spread codes to post payments. The spread codes are simply a matrix, based on predefined criteria, that tells the system how to apply the transaction; thus, RSI can take a single transaction and apply it across all department accounts for the same guarantor. This posting matrix is sophisticated and flexible to allow posting to be made to one, some or all of a guarantoraccounts as well as can post based on the balance due, a specified dollar amount, percentage, or age of the account (i.e., oldest account first etc.), depending on the specific requirements of the Client. Because RSI has the ability to maintain separate account categories, by department, all reporting and invoicing can also be provided separately for each department or rolled up into group reporting, if desired.Each account category/debt type/department will have its own unique client code, thus separating all account details/activities from other Departments.

Funds/Remit Processing & Trust Accounts(Complies with #)RSI deposits all collected amounts into a separate, client trust account and shall not be comingled with other funds. received by RSI directly into a client trust account within twenty- On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 48
four hours of receipt . . . and predominantly on the same day received. Non-sufficient funds are also recorded on the daily logs, transaction, and deposit-to-posts directly from the payment, runs batch verification reports to tie out the totals, runs automated deposit slips, and deposits directly upon completion of this process. RSI maintains division of duties between mail gathering and initial batch totaling . . . posting and balancing . . . bank depositing. At the end of each day, a full accounting of collections, fees and cash is attached to a binder with a deposit slip copy for future review in the event of reconciling issues at month-end or questions from the customer.inventory.Each client is assigned unique client codes within our host system, which serve as a way to separate guarantor accounts from other clients. All collections made by RSI on client accounts are remitted to the Client by the fifteenth of the month for any collections from the previous month. However,payments can be remitted on a more frequent basis if requested by the Client, including weekly.Payments can be handled by either of the subsequently issue an invoice to the Client for the contingency fee, or 2) RSI can issue a net remit. Payments to the Client can be made by the following methods: Check, ACH, Wire transfer to a trust account, Daily deposit, or Other Method Specified by Client. -51) for secure transmission methods.RSI remits funds and produces statements that itemize the payments received and identify the amount remitted by RSI and the fees for services outstanding. RSI also has the capability of providing weekly or semi-monthly statements if that is the desire of the client.RSI may even provide payment reporting as frequently as daily, if desired by the City agencies. This information may be provided in paper or electronic format . . . or both, where preferred. The following describes how RSI processes hard-copy and electronic payments received. See the following screenshots of system generated, financial records that are available.Financial Record Options available, by Account: Sample Listing of All Transactions, for this Sample Account: -four hours of receipt . . . and predominantly on the same day received. At the end of each day, a full accounting of collections, fees and cash is attached to a binder with a deposit slip copy for future review in the event of reconciling issues at month-end or questions from the customer. Payment information on each account can also be accessed through the Client View (CV)(A Client Access Web based Tool for Reporting and Account Review)web portal. This encrypted portal has indefinite data reporting possibilities available to the City and can be accessed anywhere an internet connection is available.See description of this and other technological tools in the Pages 40-47, above.Non-Sufficient Funds (NSF):RSI maintains separate procedures NSFs. If RSI receives a returned check (NSF),RSI will attempt to redeposit the check up to two additional times. If the check is returned a third time for non-sufficient funds, then it will be posted as an NSF to the account on RSIs collection system. By posting as an NSF,the payment amount is added back to the debtos balance. RSIs system has the ability to charge NSF Fees,usually in the amount of $25. This is an option that is only exercised after collaborative agreement between RSI

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and its customers. Non-sufficient funds are also recorded on the daily logs, transaction, and deposit-to-trust formsto ensure reconciliation against RSIs trust account.Payments are reported by the Client Detail Statement Report (Invoice).This report details the payments made which payments were to the agency. RSI will express the fees due as a percentage of actual monies collected. When the debtor makes multiple payments, the portion of each payment paid to the bidder shall be proportional to the amount of the city obligation being paid. See response in the Section on Page 54, belowfor a-hoc reporting capabilities. 8) Describe the software programs used for collections and the degree of automation to accept electronic referrals, and to access billing agencies online. Please describe how you wish the city to transmit information to your firm.The narrative below describesdescribes its data exchange capabilities. THE COLLECTOR SYSTEM (CUBS)BY ONTARIO SYSTEMSHOST SYSTEMThe CUBS/SaaS/Finvi systems provide more than just debt collection software. It provides powerful solutions and a sophisticated debt management and collection system that drives better results with full omnichannel orchestration, true machine learning, built-in compliance and auditability, and a powerful collection strategy engine.would like to see, with sorting capabilities limited only by the existence of the data element being tracked. The Collector Systempermits the creation of a nearly infinite number of fiscal records, which can be used to customize the tracking and subsequent reporting of certain client-to select, sort, print and save data electronically from any field. Rarely do any special reporting needs require custom programming.

Some examples of the operational flexibility of this system include but are not limited to the following: Automated account assignment by electronically through client system interfaces or exchanged files.Automated distribution/assignment of accounts to agents based on predetermined strategies.Management-defined work strategies based on scoring, prioritization by collectability & classification.

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Performance, productivity, and goals are tracked dynamically and viewable at any point during the day.Agents track and tickle files for critical events such as promises or callbacks.Internet use to locate debtors, access various data incl. name, address, SSN#, telephone, licenses, etc.Agents can use macros and single keystrokes to move anywhere in the account record, accessing detailed screens and windows available to quickly view and update vital account information.System auto-monitors promises & payment plans, including reminder, delinquency & default notices.Action codes w/expanded text, plus narrative abilities, documenting account activity & productivity data.Account balance histories with assigned amounts, payments/adjustment detail are easily accessible.The Collection Agency Software drives better results through digital consumer engagement, workflow automation, explainable AI and embedded compliance guardrails. In essence, it is an all-in-one collection software platform. With the technical and legal demands of the collection industry constantly evolving, this platform allows you to work safer and smarter-a solution that will help you achieve greater efficiency, collecting power, andcontrol.

Data Exchange(Ability to Securely Receive, Transmit & Store Referred Accounts in Various Formats)(Below complies with 8Accept data form city in both paper & electronic formats)RSI can accept receipt of accounts through paper media and electronic media, i.e., either email or fax. RSI understands and certifies it can accept assignment of delinquent accounts on a weekly, biweekly, or monthly, basis accordingly. The following narrative specifically describes our electronic data exchange capabilities; notwithstanding, however, RSI can and will accept data/referrals in any manner the Client prefers. RSI understands and acknowledges that the Client has sole authority over what information may be released or contained within files. RSI, at a minimum, requires debtor demographics (i.e., address, phone numbers, etc.), transaction date, original charges, any interest, penalties, payments or adjustments since the time of the transaction date, remaining (assigned) balance, service location, service or balance type, and any other data deemed important by the city or required by regulatory/governing bodies (i.e., Regulation F, CFPB, etc.).RSI will gladly provide, upon award, a file layout containing both required (for regulatory reasons) and desired data elements. RSI further understands that all account information referred to RSI must be maintained in confidentiality, including with any subcontractors.RSI is able to receive and transmit all placement, transaction, notes, and reporting data via electronic transmission. We are currently transmitting to and receiving from various systems, between other clients and RSI; RSI can accommodate any frequency desfoundation and upon announcement of the contract award, will begin implementing the required programming to se referrals and payment reporting. Furthermore, this programming will allow RSI to send electronic transfers of data to the Client in order to help meet mandated timeframes, rules, and regulations.to provide an electronic notes file to the Client for importing data / activities into the Client host systems, and host system, including letters sent, account status updates, call attempts and results, updated demographics, and account activity. This file can also be provided in a variety of formats, so as to match the needs of the Client for importing data. The maximum amount of time it has taken for programming, under the worst of circumstances, is 3-4 four weeks from the delivery of file layouts, protocols, and test media by the Client to RSI. RSI has successfully interfaced with a multitude of client systems in over 600 implementations and anticipates it will have no compatibility issues in connecting or working with the Client systems. RSI has provided & accepted files/data transfers to/from these systems, in many formats.RSI can send and accept data files/transfers in virtually any format (delimited text, excel, fixed length format, XML etc.).The file specs are customizable to meet the needs of the Client and can vary based on the Client system being used to send/accept files. To maintain security, RSI prefers that all account placement, payment, and close transactions as well as reports/files will be transmitted electronically between the client and RSI. RSI requires the use of multi-factor authentication (MFA) when accessing its systems and virtual private network (VPN) to protect its systems and information from threats originating outside of its system boundaries.

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The organization requires its passwords to be encrypted at rest and in transit to ensure they are rendered unreadable and are protected from threats originating outsideAs described throughout this proposal, RSI has advanced technology, custom programming, and sophisticated networks to accommodate any interfaces, data transfers and account updates desired by the client. This includes Client advising of the account status (i.e., active to inactive to active).RSI has built a highly sophisticated and flexible network of devices to exchange data and to provide thin-client array of experience on various client accounting platforms. The formatting can be standardized according to agreed-upon layouts and transfer protocols. RSI can submit data to the Client and accept data from the Client in virtually any format (Excel, fixed length, delimited etc.) with the exception of comma delimited. While we can process.csv files, it is not preferred due to the programming complexity required based on the number of commas listed in standard fields (i.e., names, addresses etc.).Nature of Electronic Transmissions.The most common way RSI shares data electronically with its current clients is through a SFTP/Secured Shell Transmission of Encrypted Files (preferably IP-to-IP). RSI has procedures for the safe transmission of sensitive data via multiple transports such as Secure FTP Wrapper services via Secure FTP Clients which include AES256bit data encryption. RSI also supports and provides the option to allow access ider. Once authenticated, users are also required to have unique user credentials to access their own securely protected folders and share points on the Secure FTP Server for all business file transactions.RSI stays current on NIST recommendations, and our system configurations/security are audited/demonstrated in its SOC 2 TYPE 2 annual reports. This third-party audit evaluates these items as well as our penetration testing and vulnerability scanning.Information such as acknowledgment, inventory, status summary, and collection analysis and productivity reports can be communicated by paper, electronic data transfer, on-line view, Virtual Private Networking or by way of other communication software/hardware. The use of the Client View (CV) (A Client Access Web based Tool for Reporting and Account Review)has indefinite data reporting possibilities available to the Client and can be accessed anywhere an internet connection is available.RSI has all the electronic interfaces in place to accurately and timely report/transfer collection activity data. This can be done on a daily, weekly, monthly, or bi-monthly basis (or in any frequency desired by the Client) and can be transmitted using the various methods listed above. RSI would expect data transfers/feeds of new case referrals on, at least, a monthly basis and would require transactional updates (adjustments/payments) no less often than data to ensure that all balances are updated and that guarantor letters/accounts reflect the most current information. RSI personnel will be available for training on any additional means of communication as desired by the Client. RSI would recommend that, at a minimum, the Clientkey Portal (CV) and efficiently communicate with RSI. Additionally, access to a secure FTP (SFTP) is preferable to be able to securely transmit data files between the Client and RSI. If the Client does not have access to a secure -up files, as needed.9) Describe your organizations disaster recovery plan to receivables and the confidentiality of the information contained therein. Describe any offsite storage location and plan for backing up data.Disaster Recovery / Business Continuity(Complies w/Work7 & #16 )RSI has two locations, the primary being in Glendale AZ, the secondary being in Herndon, VA. RSI has interconnection between these sites and can route data traffic to whichever site is up and operational. RSI's collection system is accessed by its recovery offices through a Wide Area Network (WAN). Except for the rare planned down times for upgrades (usually done in the late evenings or weekends), RSI's systems are nearly always available, and extremely reliable. The above connectivity options/methods are encrypted and very secure. Using On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 52
these methods for access, RSI can leverage multiple pathways to the Internet from different regional data centers that reduce, if not eliminate downtime. RSI can also support direct circuit access to a client using a traditional point to point circuit or by adding an MPLS are a single point of failure. RSI and the RSI IT staff are flexible and can support almost any method of access required by the client. Having two office sites offers system redundancy and serve as backup support to our systems. Should a downtime situation occur in one of our locations, the use of reciprocal systems in both our locations allows for immediate access of all data on its host system; thus, downtime is minimized and should a our recovery time less than 24 hours.With the use of a VoIP phone system, calls can also be routed to the other site. The use of this alternate data access and VoIP phone system between offices ensures a limited, if any, interruption in service should a failure occur. RSI has a written disaster recovery and business continuity plan in the event of a system failure or inaccessibility of the facility but has never encountered any of these events in its thirty-six years of operations.The documented plans contain over 60 pages of information, protocols, procedures, and timelines; as such,request.INTERNAL CONTROLS / DATA SECURITY & CONFIDENTIALITYRSI understands the need for recording and securing confidential and private documents, verbal information, electronic information and other sensitive data as well as maintaining internal, physical controls for handling of all monies received. RSI has numerous layers of security in place to ensure that verbal, written and electronic data remains secure. The following is a compilation of those features which both describe the facilities and processessurrounding those facilities relating to security; however, RSI provides additional data and system security information at the end of this section. normal business hours, access to the building is restricted to authorized personnel only. enter via a reception area, are greeted by a receptionist, given a guest access pass they must display which includes their name and picture, and must sign in/out of a guest log. This includes clients, visitors and employee. Unless special arrangements are pre-approved, visitors are not allowed on the collection floor. In the event of termination or cessation of employment, the key card access is terminated and all appropriate locks on doors are changed, and keys reissued, as appropriate.There are levels of key and key card access into the suite as well. Only those managers that need will receive management ONLY. All incoming mail is opened by a Customer Service Representative (CSR). Each piece of mail is looked up pied and sent to a secure file area to be filed by RSI account number. The photocopied document is then delivered to the Recovery Specialist for appropriate action and follow up. When the Recovery Specialist has completed work on the document, the photocopyis sent to the shredder bin. If the Recovery Specialist needs to retain the document past the current business day, it is placed in a secured envelope and locked in a desk file drawer. All onsite paper files are secured at RSI in a central filing area. RSI maintains a secure, central filing area that can only be accessed using a separate key. Each filing cabinet / Fire Safe has its own lock and is secured each evening before the office closes. The door to this filing room is also locked via key card access control to ensure multiple layers of physical security for documents.These documents are filed by RSI account number and locked in metal filing cabinets. Only authorized personnel may enter the filing room. If a Recovery Specialist needs a document previously filed away, On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 53
he/she must submit a request. The file is pulled, a photocopy made and delivered to the Recovery Specialist for review. All incoming faxes are received electronically. A CSR receives these faxes and logs them in the same All documents are sent to a secure (locked) shredding bin when their use is completed. All employees are required to empty all documents for shredding from their personal areas to the shredding bin each day before leaving. Voice mails are secured via a Broadband Dynamics voice mail system, which require a username and password to access.VoIP Telephone System Call Monitoring and Recording: This tool has virtually unlimited capacity to provide feedback and training to our Recovery Specialists as well as provide a recorded record to resolve any complaints that may arise. All controls are accessed securely via web-based software and sensitive data destroyed. All RSI employees are required, as part of the RSI employee handbook, agree not to discuss account or client information with anyone outside of RSI or within RSI that is not required to know. Electronic data security has multiple layers and protections. Access to any system within RSI is controlled by multiple levels of passwords and logons. Passwords are required to have an upgraded level of complexity and must be changed on regular intervals.RSI uses Office365 Advanced Threat Protection to filter emails for malicious intent and verify emails are clean of viruses.-SSL Shell/Portal, requiring that end users also be on a secure network (HTTPS-SSL) or through use of VPN Client.Access to emails can only be granted after supplying the proper credentials such as username, domain and MS enhanced security password.For further protection, any documents containing sensitive information must either be password protected or sent through an additional secure method such as a Client View (CV) portal, FTP server, Zix messaging, PGP encryption or other related software.RSI currently has an alternative secure messaging system called Client View. This tool is also protected as an HTTPS-SSL, as is our email server.RSI has used and is willing to use again, 3rdparty software such as PGP provided the end users have access as well.The most common way RSI shares data electronically with its current clients is through a SFTP/Secured Shell Transmission of Encrypted Files (preferably IP-to-IP). See Data Exchange Protocols, on Page 50,above.Use of the Client View platform provides an alternative for secure file transmission. A client representative uploads the files to (www.ecliptics.com/ecs_client_view.html) through a SSL secure connection using a unique user ID and password that has been assigned to them. An authorized support personnel from RSI receives notification the file is available and also through a SSL secure connection uses their unique user accessible by RSI management & administrative staff and employees that are assigned to the project. This server is secured by two layers of authentication and the CUBS server has all latest security patches/updates.After the data file is loaded into the CUBS system, the raw files are placed on a secure and access-controlled SharePoint site with native Microsoft encryption and logging/auditing.RSI uses a combination of Veeam for the CUBS system and servers and DropSuite for Office365 emails and SharePoint/OneDrive files.

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Schedule and Time Frame for backup of records:Backup Schedule / Retention UNIX/Universe/CUBS Full File level backups Daily / (2) Weeks DropSuite (Office365) Daily/No Limit Microsoft Servers 7 Daily / 5 weekly / 12 Monthly / 7 Yearly Cameras and Lockers.RSI Enterprises, Inc. is protected by 9 (nine) wired cameras covering the interior collection floor, entrances, exits, and parking areas. These are viewable both in real time and as 30-day rolling recordings hosted on-premises with an encrypted and access-controlled DVR system. Additionally, staff are required to place all personal items, specifically cell phones or any electronic device inside their designated lockers. These devices may not be stored in or around the workstations or client data. 10) Management Reports Please provide information on Management Reports as required herein in the Scope of Services and should include: a) Three (3) sample reports including frequency, and b) software/online e-platform capability that would allow the city to query accounts & prepare ad hoc reports, as necessary.

REPORTING(Complies with Work13-g))city would like to see, with sorting capabilities limited only by the existence of the data element being tracked. The Collector Systempermits the creation of a nearly infinite number of fiscal records, which can be used to customize the tracking and subsequent reporting of certain client-print and save data electronically from any field. Rarely does any special reporting needs require custom programming. RSI can provide various reports that minimally include the following:New Account AcknowledgmentThis report will provide a listing and confirmation of accounts that the client has referred to RSI, including balances referred. It is generated and mailed or delivered electronicallywithin forty-eight hours following referral.Monthly Financial Summary Report (Remittance/Statement) (Invoice)This report provides a listing of all .These can be either Net or Gross remits. Detailed statements will include amounts paid, commission earned, status of accounts and payment types. This report can be generated monthly, semi-monthly, or weekly, depending on the preference of the individual client.Cancellation / Uncollectible ReportThis report will inform the client regarding accounts that have been cancelled, along with reason codes (including uncollectible accounts).(Complies with Section II )Monthly Balance Report (Client Inventory)This report provides a snapshot of the activity on all of remaining balances (including credit balances) and the status of the account (active, paid-in-full, payment plan, bankruptcy, etc.). This report can be provided in a detailed or summary format. Summary reports can be segmented by age and balance.Collector Activity Report -are updated daily and provided to recovery managers and the recovery specialist for monitoring pace and requirements to meet goals for the month.Statistical Performance Analysis (History & Stair-Step Analysis) -This report will show the assignments by month and year, along with collections on those assignments monthly and overall. This report will provide original assigned amounts, cancels, average assigned amounts, average age ofaccount referred andcumulative recovery rateson each referral month and year. The history report can On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 55
also be accompanied by a stair-step analysis showing, by month, the collections on each inventory of assignments. This report is ultimately used as a forecasting model for future collections.Monthly Status Summary Report -This report provides a summary of assignment, collection and balance statistics by status code and a summary of statistics by age of account. Select inventories of previous assignments can also be sorted and reported separately on these summary reports.RSI produces standards reports as well ascustomized, ad hoc reports,as desired by the client. In addition to the standard reports listed above, which are all available electronicallyor on paper, data extracts from the system for the purpose of providing advanced analysis of performance and trends can be generated on demand at any time. These reports can be provided in text or any desired Microsoft format such as Excel. RSI has created a number of other such reports around inventory reconciliations, new address updates, regression analysis, stair-step collections performance and many more.The use of the Client View (CV) (A Client Access Web based Tool for Reporting and Account Review)has indefinite data reporting possibilities available to the city and can be accessed anywhere an internet connection is available. See description of this online tool on Page 43, above.Due to the flexibility and infinite custom possibilities for reporting, along with its standard reports listed above, RSI demonstrates its compliance with the required reporting under the scope of service for this RFQ.CLIENTVIEW(CV)(A Client Access Web based Tool for Reporting and Account Review/Analysis)RSI maintains a real-time, Client interaction tool called Client View (www.ecliptics.com/ecs_client_view.html) securely review accounts, review standard reports, create custom reports, request account cancellations or edits, report account status changes, securely upload documents or correspondence, securely upload data files, or send messages(like an e-mail system) regarding a specific account. The following is a list of components and features of Client View:Secure Log-In / Main Menu: Account Inquiry, Reports, New Account Entry, Data Uploads, & Messaging.The Account Inquiry Screen allows for individual account search/requestby account number, name, phone number, social security number or other custom fields (IE balance owing).The New Account Entry allows for manual upload of individual accounts outside of the batch files uploading.encrypted and PCI/HIPAA compliant.The Message Center allows sending/receiving of secure messages. This can be restricted as required. The Reporting Screen allows for the user to access any one of 12 standard reports or to use the Report Generator tools to create a custom user report. Once custom reports are created, they can be saved, edited, rerun, and shared with users depending on preferences. All reports (standard and custom) can also be downloaded to .XLS or .TXT files for printing or sending electronically to others. Each client can be assigned as many User IDs and Passwords as is desired. Restrictions can be placed to limit what data each user can review or edit. For example, a low-level user may only be able to send an account message, while a high-level user can create and review custom reports. The screenshots below demonstrate the easy view of this portal. 43, above for additional information, including screenshots of this client view portal.11)Describe your approach to client relations with city department/staff. Include name and information of the main contact person for this contract. If needed, describe training (onsite or virtual) for city personnel for account queries and management reports.Communication with Client Partners:-goals, vision, and policies/procedures into our training of RSI staff. RSI understands and believes the key to any successful partnership is communication and that this communication must be consistent between all stakeholders.

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RSI has learned that through reciprocal communication, demonstration and education, we have been successful on every program serviced. RSI accomplishes this by reiterating that we are here to supplement the efforts of the business office staff and ensure clear, open channels of communication between RSI and the city. To apply this staff on what we do and how we do it. This training would include the online, client view portal/platform, as described above and would, most likely, be a virtual training session (Zoom or Teams)..In turn, we participate in department training to ensure that, going into any project that RSI and its staff has a clear understanding of the obstacles our clients face and what the goals may be. We provide this open access through an online portal for the city staff to see all account activity, which arms the city team with information to collaboratively work with the guarantor using the same data as RSI. This communication and sharing of information opens the door to a collaborative partnership, thus improving the results of collections. It improves collections because we are working together instead of against one another.Continued Collaboration:Outstanding customer relationship management and superior performance by RSI staff will continue to be the minimum standard for RSI on this program. With regard to client communication, all recovery specialist(s) are responsive to client requests and are professional in all interactions. Depending on the hours after inquiry;often times, it is much sooner than that. Each client is unique and as such, RSI will work with the city to set up response protocols that are most convenient for the cityrespond to all requests. When necessary, procedures will be implemented for client / recovery specialist(s) contact; otherwise client interaction would be between client / RSI manager(s). As specific client needs are identified, RSI will add staff as necessary to ensure proper standards and expectations is met. , as listed below, are intimately involved in the day-to-day operation of the project and will remain so for the life of the awarded contract. All of these designated personnel will be available and always on alert to assist the city staff with daily operations.The city will have direct phone access (via personal phone line and cell phone number) as well as email with RSI Key Personnel. The city will also have complete access (24/7) to view account details through the use of the Client View (CV)(A Client Access Web based Tool for Reporting and Account Review)web portal. This portal has indefinite data reporting possibilities available to the city and can be accessed anywhere an internet connection is available. See description of this and other technological tools in Detailed Work Plan, Item #7, Pages 40-47, above.RSI most commonly communicates with its client partners via email and phone calls; this is in addition to any face-to-face meetings. RSI will communicate with and be available to the city staff in a manner that is best suited for them (i.e., some prefer email over calls etc.). RSI proposes to conduct regular operations meetings/conference calls (usually at a minimum of 1x per month at the beginning of the project) and continue conference calls on an as-needed basis throughout the life of the contract. RSI designates specific managers, team leads and staff to each client, so that its customers have designated and consistent points of contact for day-to-day operations. RSI will communicate and establish a seamless communication stream with the city, in a manner that is most convenient for the city.Contracting Officer: Bid Process Contact Assigned Project ManagerChristian P. Ulrich Lynne Wisehart Ryan McMullenChief Executive Officer President & COO Vice President5440 W. Northern Avenue 5440 W. Northern Avenue 5440 W. Northern AvenueGlendale, Arizona 85301 Glendale, Arizona 85301 Glendale, Arizona 85301800.774.4003 ext. 2348 888.854.4904 direct (602) 445-3392 [email protected] [email protected] [email protected] of page intentionally left blank.

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SECTION IV: TECHNICAL PROPOSAL (PROPOSED STAFF & ORGANIZATION)This section of the proposal should establish the method that will be used by the firm to manage the contract/engagement, as well as identify key personnel assigned. Proposed staffing and organization are to be presented by the firm identified in the Scope of Work.Staffing Plan: Experience, Qualifications, Compliance, Roles & ResponsibilitiesWhile this section only asks about key personnel, RSI believes it is important for the city to understand its entire staffing plan, including the experience and background of the assigned team/staff. RSI has a dedicated team of Recovery Specialistscurrently available for assignment of accounts from the City. The following narrative provides an overview of the roles and responsibilities of each position, which is important in demonstrating the experience/qualifications of the RSI team that would be assigned to this project.Personnel Introduction:committing to creating, building, and maintaining solid working relationships throughout the organization, RSI continues to benefit from happy, loyal, dedicated, and long-term employees. As such, RSI has enjoyed a stable/steady workforce and has not experienced much fluctuation in staffing levels in many years. In addition to the listed experience, training and background of its people, RSI provides evidence of long-term employee commitment. This employee commitment, coupled with program experience, fosters a solid foundation for success.

Qualifications (General)One of the primary reasons for RSI's success is the people who make up its team. RSI selects its entire personnel (Bad Debt, Biller, Customer Service, Recovery Specialists and Senior Management) from the finest talent available in the recovery, financial, striving to surpass its latest accomplishments. RSI does not share the same high turnover rates as other companies within the industry. RSI encourages long-term employment by:Providing a positive physical work environment & the latest technological tools availableProviding substantial training to build job duty confidence & encouraging input from all personnelEstablishing reasonable productivity/performance standards & providing talented leaders Staff Qualifications:Two (2) yearswork experience: government receivables and/or collection/sales/customer service.Established Negotiating/Communication/Customer Service SkillsPreferably, Experience with Automated Collection Systems Key Personnel Qualifications:By providing the existing staff with extensive training in industry knowledge, communication skills, problem-

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solving skills, approach to collections, past job continuity, management development and work ethic, RSI creates the ideal environment to promote from within. RSI prefers to look internally for management candidates, as they possess the skills and are bestour customer. If an ideal or the best candidate is not available from existing staff, RSI will utilize placement companies to select top candidates for any open position in the company. RSI prefers to recruit its management candidates from within the company, but will always choose the best candidate, whether internal or external. RSI conducts criminal and financial background checks as well as drug screenings as part of our hiring process.RSI will not employ any individual who has been convicted of any criminal offense involving dishonesty or breach of trust.RSI recognizes that its number one resource in meeting customer needs is its people. RSI is committed to providing employees with the best resources available and the training needed to use those resources. Well-trained people who enjoy their work are bestcompetitive performance and results of surveys conducted with its internal and external customers. The result of this philosophy is the best possible team to provide the desired leadership, services and outcomes requested in this program.RSI Enterprises, Inc. Length of Service Statistics Key Personnel 14.4 Years Supervisors 9.5 Years Recovery Specialists 7.2 Years Collection Experience PersonnelAll of the work performed on this program will be managed by existing,Glendale, Arizona office. These individuals have specific experience in this type of project, including those listed in RSI references. Within the RSI organization, a dedicated recovery service division is in place just for the bad debt accounts. RSI has created this separation to ensure the privacy and confidentiality of information provided by dedicated team provides the highest level of quality and service by RSI, whose primary goal is to service the city.All recovery specialists working these accounts will be dedicated and have extensive collection experience. Many maintain their certifications. RSI also uses materials to train its staff in GLBA, PCI, Red Flags, FDCPA, FCRA,HIPAA, and other statutory/regulatory programs. At the end of training, testing is required in each section and staff must achieve a score of 90% or better before they are allowed to work accounts. Each team member also receives regular training/updates on changes to regulations, to ensure their certifications stay up-to-date and compliant. RSI recognizes that its number one resource in meeting customer needs is its people. RSI is committed to providing employees with the best resources available and the training needed to use those resources. Well-RSI measures success through testimonials, competitive performance and results of surveys conducted with its internal and external customers. The result of this philosophy is the best possible team to provide the desired leadership, services and outcomes requested in this program.

Bilingual StaffRSI is able to provide instant access to Spanish-speaking recovery specialists and can recruit recovery specialists that speak other languages based on the requirements needed from the city. If the guarantor does not speak English, the call is transferred, and the account is then reassigned to one of our language. Our bilingual representatives are proficient, and this added capability and cultural understanding helps to resolve accounts quickly and effectively. RSI also utilizes a language service for any interpretation needs not available on-site. Language service interpreters are proven to be 20% faster (average 20% less call length) and 3 20%, ensuring accuracy and reduced callbacks. Additionally, RSI letters/notices/statements can be customized in both format and language to ensure seamless communications with the city guarantors.

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1)accounts. Please include current position, applicable professional credentials and relevant experience working with government clients, and their role and responsibility with Assigned StaffThe following is a list of personnel and are assigned specifically to initial and on-going inventory volume. This staff is experienced in all aspects of collections, are well-versed in successful call strategies, and are available for immediate assignment of collection accounts from the city. All of the staff listed below have worked with the following Municipal agencies: City of Fresno (CA), City of Redlands (CA), California Department of Justice,University of Southern California (USC), Verra Mobility (formerly Redflex Traffic Solutions), City of Phoenix (AZ), City of Corpus Christi (TX), Racine County Clerk of Courts,State of Colorado DPA, and various other government/municipal clients.In addition, please see previous text for the level of involvement for Key Personnel with each of these projects.As workloads fluctuate, the staff level will be added or subtracted in the same proportionate share to ensure that the resulting workloads, reduced by cancellations and paid accounts, will maintain at a manageable level. The ultimate effective ratio for this exact business will be constantly reevaluated to ensure maximum performance competitively on this contract. Corporate / Operations Management: IT Management / Support Team:Christian P. Ulrich CEO Heath MorderApplication/Data AdminLynne F. Wisehart President & COO Mariza Lopez Network AdministratorRyan D. McMullen Vice President SimplifiIT (IT Support Contracted)Heath Morder Director of Operations & TechnologyRecovery Specialists (Collectors): Customer Service Representatives:Dynasty Brown Dulce Martinez Heather AlexanderAnnalisa Clark Melissa Hernandez Dina AponteLydia Miranda Heather CarrTheresa Johnwell Amanda Clark (Supervisor)Shannon Edwards Lindsey McMullenIrene Bojorquez Letty MartinezMakayla Green Samantha Chacon (Operations Manager)Biographies (Experience & Qualifications) of Key PersonnelChristian P. Ulrich RSI CEO (Since 1996) (Owner/Shareholder)Mr. Ulrich has over twenty-six (26+) years of experience in this industry, in varying capacities. He has worked in each department of RSI, beginning with collections. Over time, he assumed the duties of client satisfaction and sales. As CEO, he oversees the entire operation, including Information Technology, Sales and Operations. Each and financial planning. Mr. Ulrich has served as the contracting officer and provided project management support City of Redlands (CA), City of Fresno (CA), California Department of Justice,University of Southern California (USC), DC Office of Tax and Revenue, Emmet County MI (EMS), Union County Public Works (NC), City of Phoenix (AZ), Verra Mobility (formerly Redflex Traffic Solutions),City of Corpus Christi (TX), City of Garland (TX), Racine County Clerk of Courts (WI),UMC El Paso (TX), State of Illinois, State of Arizona, State of Oklahoma, State of Ohio, State of Florida, and the State of Colorado, among others.He is a life member of the Thunderbirds, has held the position of President of the Phoenix Boys and Girls Clubs and is a participant in many other civil and charitable organizations. The extent to which Mr. Ulrich will be involved in this project will be at a high level (as needed), overseeing each department ensuring RSI is meeting the needs, goals, and expectations of this program.Key personnel biographies, continued next page.Remainder of page intentionally left blank.

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 60
Lynne F. Wisehart RSI PRESIDENT AND COO (Since 1994)customer relationships, financial performance analysis and reporting, business development efforts and special project management. Ms. Wisehart provides leadership and support to all employees. She is also responsible for Responsibilities of this position include recruiting, training, and monitoring staff for productivity and compliance. She has successfully managed our Government, Financial and Medical Facility clients and these clients can attest to her professionalism and diligence. She has served as an alternate operations contact for the projects with City of Redlands (CA), City of Fresno (CA), California Department of Justice, University of Southern California (USC), City of Corpus Christi (TX), City of Garland (TX), Racine County Clerk of Courts (WI),DC Office of Tax and Revenue, Emmet County MI (EMS), City of Phoenix (AZ), UMC El Paso (TX), Honor Health, Tucson Medical Center, State of Illinois, State of Arizona, State of Oklahoma, State of Ohio, State of Florida, and the State of Colorado, among others.-level, managing the RFQ/contract process and ensuring that the implementation goes smoothly, as well as overseeing the overall processes and results of the operations team.Ryan McMullen-RSI VICE PRESIDENT (Since 2001) (Dedicated Account Rep/Assigned Project Manager)-to-day operations. He will serve as an additional point of contact for service and project management needs. Ryan provides overall operations and project management Operationsexceptional service through responsiveness, assessing customer satisfaction, resolving outstanding issues, optimizing client workflow processes and regular communications. He will ensure that RSI is meeting all customer expectations by measuring not only internal customer service practices, processes, and procedures, but also by He has experience in managing projects similar in scope and size, such as the City of Fresno (CA), City of Redlands (CA), California Department of Justice,University of Southern California (USC), DC Office of Tax and Revenue, Emmet County MI (EMS), UMC El Paso (TX), Honor Health, Tucson Medical Center, Verra Mobility (formerly Redflex Traffic Solutions), City of Phoenix (AZ), City of Corpus Christi (TX), City of Garland (TX), State of Colorado DPA,Racine County (WI) Clerk of Courts, and various other government/municipal clients. Ryan has also been analytical support has allowed for increased revenues, and for areas of opportunity to be more readily seen. Ryan has extensive experience successfully demonstrating his leadership qualities and his ability to apply his knowledge ssphilosophies.Mr. McMullen will be the assigned project manager for this scope of work and will serve as the main operational contact on a day-to-day basis.Samantha Chacon-OPERATIONS MANAGER (Since 2012)(Assistant Project Manager)As Operations Manager of RSI Enterprises, Inc., Sam is responsible for managing all teams and for achieving their combined installed unit objective targets. She will provide day-to-day project/staff management to ensure that all goals, objectives, and project initiatives are met. Her responsibilities include overseeing the operation of the collection portfolios assigned by the clients. In this role, she will manage the productivity, compliance, training, reporting and performance of this project and associated staff. She is also responsible for supporting andmaintaining company initiatives and metrics related to department performance and client satisfaction. Measuringcustomer perceptions and awareness levels of services provided on a daily basis and interact with client leads andmanagers. Sam has held various roles with RSI over her tenure span that has exposed her to receivablesmanagement as well as all procedures critical to the success of the client projects. Sampast project experience included overseeing the operation of the assigned projects such as theCity of Fresno (CA), City of Redlands (CA), California Department of Justice,University of Southern California (USC), UMC El Paso (TX), Tucson Medical Center, Sonora Quest Laboratories, , Verra Mobility (formerly Redflex Traffic Solutions), City of Corpus Christi (TX), City of Garland (TX),among others, and including the supervision of project staffas well as maintaining relationships with her key customers.Ms. Chacon will be the assistant project manager for this scope of work and will serve as the backup operational contact on a day-to-day basis as well as the one overseeing the team of collectors assigned to this project..

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 61
Heath Morder-DIRECTOR OF OPERATIONS & TECHNOLOGY (Since 2003)Mr. Morder has nineteen (19) years of experience in the industry. His role for this program will be responsibility Recovery Specialists, as well as the management, consist of highly trained individuals who bring collection experience from other RSI projects. Mr. Morder is responsible for overseeing the database management at an operational level. He has experience managing similar projects forCity of Fresno (CA), City of Redlands (CA), California Department of Justice,University of Southern California (USC), DC Office of Tax and Revenue,Emmet County MI (EMS), UMC El Paso (TX), Honor Health, Tucson Medical Center, City of Phoenix (AZ), City of Corpus Christi (TX), City of Garland (TX), Racine County Clerk of Courts,State of Colorado DPA, and various other government/municipal clients. running optimally to ensure that the efficiency and quality of work that the staff provide to our clients is maintained, in addition to a high level of production. This experience successfully demonstrates his leadership Mr. Morder will be the technology contact for any system access, programming and/or other technical inquires throughout the life of the contract.2) Furnish brief resumes (no more than one page each) for key personnel managing this engagement.Resumes for the above-mentioned (5) key personnel can be found starting on the next page.The remainder of this page is intentionally left blank.

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 67
3) Identify a primary and dedicated Project Manager/Customer Service Manager to serve as of the engagement/term with your firm.Dedicated Project ManagerRyan McMullenVice President5440 W. Northern AvenueGlendale, Arizona 85301(602) 445-3392 [email protected]) Provide a primary and secondary contact to the city for daily operational issues.Primary Contact Secondary ContactRyan McMullenVice President Operations Manager5440 W. Northern Avenue 5440 W. Northern AvenueGlendale, Arizona 85301 Glendale, Arizona 85301(602) 445-3392 direct (623) 792-6137 [email protected] [email protected] 5) Include an organization chart that clearly delineates communication/reporting relationships among staff, including subconsultants/contractors.Organizational Chart:This organization chart, specific to our Arizona office location, provides the lines of responsibility, communication and accountability within RSI; thus, supporting the accessibility of key personnel.

RSI does not subcontract on any of its projects and does not intend to outsource any portion of the scope of work to a subcontractor or sub-consultant.Collection services will be completed by RSI Enterprises, Inc. staff.

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 68
6) Include a statement that key personnel will be available to the extent proposed for the duration of the project, acknowledging that no person designated as concurrence by the city.RSI explicitly states/certifies that all key personnel listed herein shall be available for the duration of the project and that none of these key personnel will be removed or replaced without the express, written consent of the city. Remainder of page intentionally left blank.

On-Call Debt Collection ServicesPrepared for the City of Fullerton, California RFQ #2324-04Page 69
SECTION IV: TECHNICAL PROPOSAL (FEE SCHEDULE / COST PROPOSAL)(summarized) The typical fee structure for debt collection services is a percentage offixed feesubmit your most competitive Fee Schedule and rate collections percentage or fixed pricing for all debts collected. This includes rates for two (2) primary debt collection categories: 1) Utilities (i.e., water, sewer, sanitation, and refuse) , and 2) Miscellaneous billings, which includes all other standard city general billings for various city services. The city is seeking a Fee Schedule that is fixed for the first two (2) years of the agreement, with annual cost escalators being clearly described every year of the agreement, including optional years.collections and collection recovery percentage may also be considered when evaluating the Cost Proposal for this RFQ. (Please see the previous Item #7, Page 38-39 (above)COST PROPOSALCity of Fullerton, CA ON-CALL DEBT COLLECTION SERVICES RFQ #: 2324-04 In accordance with the Request for Qualifications issued on behalf of the City of Fullerton for On-Call Debt Collection Services, RSI offers to provide the services required for the following cost(s): 1. Collection Fee Primary Bad Debt Collections: Percentage of Amount Collected ___16_____% 2. Collection Fee Secondary Bad Debt Collections: Percentage of Amount Collected ___21_____% 3. Collection Fee Legal Pursuit of Collection Accounts: Percentage of Amount Collected ___30_____% The above-listed pricing is a contingency model, whereby RSI earns the above percentages (based on account type) for every dollar collected. The pricing structure listed above is a pay-for-performance model (contingency rate), whereby we only get paid if we are successful in collecting money for the city. RSI proposes the above costs/prices as fixed for the term of the agreement, including the first two (2) years and three (3) subsequent optional years for a total of five (5) years. By signature below, I certify the above-proposed costs as well as confirm that I have read, understand and agree to adhere to the listed rate parameters. Firm Name: RSI Enterprises, Inc. Contact: Christian P. Ulrich, CEO E-Mail: [email protected] Telephone: (602) 627-2348

Professional Services Agreement

EXHIBIT C
CERTIFICATES OF INSURANCE & W-9
06/05/2024
Farmer Woods Group
919 North 1st Street
Phoenix AZ 85004
Isaac Thomas
(602) 264-0566 (602) 277-4706
[email protected]
RSI Enterprises, Inc.
5440 W Northern Ave
Glendale AZ 85301
Selective Way Insurance Company 26301
Selective Insurance Company of the Southeast 39926
Selective Insurance Company of America 12572
Evanston Insurance Company 35378
23/24
A S230349206 12/09/2023 12/09/2024
1,000,000
500,000
15,000
1,000,000
3,000,000
3,000,000
A S230349206 12/09/2023 12/09/2024
1,000,000
A S230349206 12/09/2023 12/09/2024
10,000,000
10,000,000
B C Y WC9076857; WC5059434 TX 12/09/2023 12/09/2024
1,000,000
1,000,000
1,000,000
D
Professional Liability
MKLV5PEO002968 12/09/2023 12/09/2024 Aggregate/Each Claim $5,000,000 City of Fullerton, CA its officers, employees, and volunteers are additionally insured on a primary and non-contributory basis as required in a written contract. Waiver of subrogation as required in a written contract. All forms attached.

City of Fullerton, CA
303 W. Commonwealth Ave.

Fullerton CA 92832

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
(A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
(A/C, No, Ext):

PHONE

INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOSAUTOS ONLY

NON-OWNED

SCHEDULEDOWNED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-

STATUTE
PER

LIMITS(MM/DD/YYYY)

POLICY EXP
(MM/DD/YYYY)

POLICY EFF

POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR

CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE

DAMAGE TO RENTED
$PREMISES (Ea occurrence)

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY PRO-

JECT LOC

CERTIFICATE OF LIABILITY INSURANCE

DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY

INSURED'S COPY
CA 78 09 04 23Copyright, 2022 Selective Insurance Company of America. All rights reserved.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.

S 230349240000F

374
ElitePac®
Commercial Automobile Extension

COMMERCIAL AUTO
CA 78 09 04 23
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM
Withrespecttocoverageprovidedbythisendorsement,theprovisionsoftheBusinessAutoCoverageFormapplyunless modified by the endorsement.

AMENDMENTTOSECTIONI —COVEREDAUTOSCOVERAGESANDSECTIONII—COVEREDAUTOS

LIABILITY COVERAGE
IfthispolicyprovidesAutoLiabilitycoverageforOwned
Autos, the following extension is applicable:

EMPLOYEE OWNED AUTOS - BUSINESS USE
Solelyforpurposesof thecoverageextendedbythis
endorsement:

A. The followingis addedto SECTIONI, A.

Descriptionof CoveredAuto Designation
Symbols:

Coveragesymbols1, 2, 3, 4, 5, 6 and7 are
amended to include the following:

Any“auto”ownedby an “employee”specifically
describedontheDeclarationspageoronfilewith
uswhenissuedona non-specified“auto”basisisconsideredan“auto”youownandnota covered “auto” you hire, borrow or lease; and
B. Thefollowingisaddedto SECTIONII,A.1.WhoIs
An Insured:

An“employee”whois theownerofa specificallydescribed“auto”ontheDeclarationspageoronfile withuswhenissuedonanon-specified“auto”basis
is an “insured”.

If the “employee” owned “auto” is used:

1. Without your permission;

2. Outsidethe scope of any policiesand
proceduresyourbusinesshasfor acceptable
vehicle usage;

3. Foranypurposeotherthantheconductofyour
business; or

4. Byanyoneotherthanthe“employee”whoowns
the “auto”, except another “employee”,
thelimitsof liabilityavailableto the“employee”or
anyoneotherthan a named“insured”underall
coverages shall be limited to the higher of:

1. $250,000; or

2. Thecompulsoryor financialresponsibilitylaw
limits wherethe “auto” is licensedand
principally garaged.

AMENDMENTSTO SECTIONII — LIABILITYCOVERAGE
A. If thispolicyprovidesAutoLiabilitycoveragefor
OwnedAutos, the followingextensionsareapplicable accordingly:

NEWLY ACQUIRED OR FORMED

ORGANIZATIONS
Thefollowingisaddedto SECTIONII,A.1.—Who
Is An Insured:

Anyorganizationyounewlyacquireorform,other
thana partnership,jointventureor limitedliability
companyoverwhichyoumaintainownershipor
majorityinterest,willqualifyasa NamedInsuredifthereis no similarinsuranceavailableto that organization. However:

1. Coverageunderthisprovisionis affordedonlyuntilthe180thdayafteryouacquireorformthe organizationor theendof thepolicyperiod,
whichever is earlier;

2. Coveragedoesnotapplyto “bodilyinjury”or
“propertydamage”resultingfroman“accident”
thatoccurredbeforeyouacquiredorformedtheorganization.

No personor organizationis an “insured”with
respectto the conductof anycurrentor pastpartnership,jointventureorlimitedliabilitycompany thatis not shownas a NamedInsuredin the
Declarations.

EXPENSESFORBAILBONDSANDLOSSOF

EARNINGS
Paragraphs (2)and (4)of SECTIONII, A.2.a.—SupplementaryPaymentsare deletedin their entirety and replaced with the following:
(2)Up to the Limitof Insuranceshownon theElitePacSchedulefor thecostof bailbonds (includingbonds for related traffic law
violations)requiredbecauseof an “accident”
coveredunderthispolicy.Wedonothavetofurnish these bonds.

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
(A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
(A/C, No, Ext):

PHONE

INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOSAUTOS ONLY

NON-OWNED

SCHEDULEDOWNED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-

STATUTE
PER

LIMITS(MM/DD/YYYY)

POLICY EXP
(MM/DD/YYYY)

POLICY EFF

POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR

CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE

DAMAGE TO RENTED
$PREMISES (Ea occurrence)

COMMERCIAL GENERAL LIABILITY

CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY PRO-

JECT LOC

CERTIFICATE OF LIABILITY INSURANCE

DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
6/5/2024
Hub International Northeast Limited
5 Bryant Park
4th Floor
New York NY 10018
212-338-2000
212-338-2100
License#: BR-767175
Associated Industries Insurance Company, Inc.
23140
RSIENTE-01
RSI Enterprises, Inc.
5440 West Northern Ave
Glendale AZ 85301
2080894170
A
Cyber & Privacy Liability
Network Security Liability
Breach Expenses
ACL124238800
1/12/2024
1/12/2025
Limit
Included
Included
5,000,000
City of Fullerton, CA
303 W. Commonwealth Ave.

Fullerton CA 92832

INSURED'S COPY
CA 78 09 04 23Copyright, 2022 Selective Insurance Company of America. All rights reserved.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.Page 2 of 6 (4)All reasonableexpensesincurredby the“insured”at ourrequest.Thisincludesactuallossofearningsbecauseoftimeofffromwork, whichwewillpayupto theLimitof Insuranceshown on the ElitePac Schedule.

EMPLOYEE INDEMNIFICATION ANDEMPLOYER’S LIABILITY AMENDMENT Thefollowingis addedto SECTIONII, B.4.—Exclusions:

Thisexclusiondoesnot applyto a “volunteerworker”whoisnotentitledtoworkerscompensation, disability or unemployment compensation benefits.

FELLOW EMPLOYEE COVERAGE
The FellowEmployee Exclusion,SECTIONII,B.5.— is deleted in its entirety.

CARE, CUSTODY OR CONTROL AMENDMENT
Thefollowingis addedto SECTIONII, B.6.—
Exclusions:

Thisexclusiondoesnotapplytopropertyownedby
anyoneotherthanan “insured”,subjectto thefollowing:

1. Themostwewillpayunderthisexceptionforanyone“accident”is theLimitof Insurance stated in the ElitePac Schedule; and

2. A per“accident”deductibleas statedin the
ElitePac Schedule applies to this exception.

B. If thispolicyprovidesAutoLiabilitycoveragefor
OwnedAutos,Non-OwnedAutosorHiredAutos,thefollowing extensions are applicable accordingly:

LIMITED LIABILITY COMPANIES
Thefollowingisaddedto SECTIONII,A.1.—Who
Is An Insured:

Ifyouarealimitedliabilitycompany,yourmembers
andmanagersare“insureds”whileusingacovered“auto”youdon’town,hireor borrowduringthecourse of their duties for you.

BLANKETADDITIONALINSUREDS— AsRequired By Contract
Thefollowingisaddedto SECTIONII,A.1.—WhoIs An Insured:

Anypersonororganizationwhomyouhaveagreedin a writtencontract,writtenagreementor written permitthatsuchpersonororganizationbeaddedas
an additional“insured”on the BusinessAutoCoverageParton yourpolicyis an additional “insured”,butonlywithrespecttoliabilityfor“bodily
injury”or“propertydamage”caused,inwholeorin
part,byyourownership,maintenanceoruseof acovered“auto”.Thiscoverageshallbeprimaryand non-contributorywith respectto the additional
“insured”. This provision only applies if:

1. It is requiredin the writtencontract,writtenagreementor writtenpermitidentifiedin thissection;

2. It is permitted by law; and

3. Thewrittencontractor writtenagreementhasbeenexecuted(executedmeanssignedby a namedinsured)orwrittenpermitissuedpriorto
the “bodily injury” or “property damage”.

C. If thispolicyprovidesAutoLiabilitycoveragefor
Non-OwnedAutos,the followingextensionis
applicable accordingly:

EMPLOYEES AS INSUREDS
If thispolicyprovidesAutoLiabilitycoveragefor
Non-OwnedAutos,the followingis addedto SECTION II, A.1. — Who Is An Insured:

Any“employee”ofyoursisan“insured”whileusing
a covered“auto”youdon’town,hireor borrowinyour business or your personal affairs.

An “employee”of yoursis an “insured”while
operatingan“auto”hiredorrentedunderacontractoragreementin that“employee’s”namewithyour permission,whileperformingdutiesrelatedto the
conduct of your business.

AMENDMENTSTO SECTIONIII — PHYSICAL

DAMAGE COVERAGE
Forthosecovered“autos”forwhichComprehensive,SpecifiedCausesofLossorCollisioncoverageshown intheDeclaration,thefollowingextensionsofcoverage
are applicable:

TOWING AND LABOR
SECTIONIII,A.2.—Towingisdeletedin itsentirety
and replaced with the following:

Wewillpayallreasonabletowingandlaborcostsupto
theapplicableLimitofInsuranceshownontheElitePac
Scheduleper tow eachtime a covered“PrivatePassengerAuto”,“SocialServiceVanor Bus”,“Light Truck”or anycommercial“auto”witha grossvehicle
weightorgrosscombinationweightgreaterthan10,000pounds is disabled.

Forlaborchargestobeeligibleforreimbursementthe
labor must be performed at the place of disablement.

ThiscoverageextensiondoesnotapplytoEmergency
Services Organizations and Governmental Entities.

GLASS BREAKAGE DEDUCTIBLE
Thefollowingis addedto SECTIONIII,A.3.—Glass
Breakage— HittingA BirdOr Animal— Falling
Objects or Missiles:

If damagedglassis repairedratherthanreplaced,no
deductiblewillapplyforsuchrepair.Thisextensiondoes
notapplyto EmergencyServicesOrganizationsandGovernmental Entities.

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ADDITIONALTRANSPORTATIONEXPENSES
SECTIONIII,A.4.a.— TransportationExpensesisdeleted in its entirety and replaced with the following:

WewillpayuptotheLimitofInsuranceshownonthe
ElitePac Schedulefor temporarytransportation
expensesthatyouincurbecauseof any“loss”to acovered“auto”,butonlyif thecovered“auto”carriesthe coveragesandmeetstherequirementsdescribedin
Paragraphs 1. or 2. below:

1. Wewillpaytemporarytransportationexpensesfor
totaltheftofa covered“auto”.Wewillonlypayforsuchexpensesincurredduringtheperiodbeginning 24hoursafterthetheftandending,regardlessof
thepolicy’sexpiration,whenthecovered“auto”isreturned to use or we pay for its “loss”.

2. For “loss” other than total theft of a covered “auto” under Comprehensive or Specified Causes of Loss
Coverage, or for any “loss” under Collision
Coverage to a covered “auto”, we will only pay for
those temporary transportation expenses incurred
during a period of time reasonably required to repair
or replace the covered “auto”, even if that time
period extends beyond the policy expiration date.

Paragraph 2.ofthisextensiondoesnotapplywhile
therearespareorreserve“autos”availabletoyoufor your operations.

The24hourwaitingperiodfoundonanyotherformendorsedontotheAutoCoveragepartdoesnot apply for any covered Rental Reimbursement “loss”.

ThiscoverageextensiondoesnotapplytoEmergency
Services Organizations and Governmental Entities.

HIRED AUTO PHYSICAL DAMAGE COVERAGE
IfComprehensive,SpecifiedCausesofLossorCollision
coverageappliesto a covered“auto”,thefollowingisadded to SECTION III, A.4. — Coverage Extensions:

PhysicalDamagecoverageisherebyextendedtoapply
to PhysicalDamage“loss”to “autos”leased,hired,
rentedor borrowedwithouta driver.Wewillprovidecoverageequalto thebroadestcoverageavailableto anycovered“auto”shownontheDeclarations;however,
themostwewillpayfor“loss”toeach“auto”underthiscoverage extension is the lesser of:

1. The Limit of Insurancestatedin the ElitePac
Schedule; or

2. Theactualcashvalueof thedamagedor stolen
property as of the time of the “loss”; or

3. The actualcost of repairingor replacingthedamagedor stolenpropertywithotherpropertyof likekindandquality.Apartisoflikekindandquality
whenit is of equalor betterconditionthanthe
pre-accidentpart. We will use the originalequipment from the manufacturer when:
(a)Theoperationalsafetyofthevehiclemight
otherwise be impaired;
(b)Reasonableanddiligenteffortstolocatethe
appropriaterebuilt,aftermarketorusedparthave been unsuccessful; or (c)A neworiginalequipmentpartoflikekind
andqualityisavailableandwillresultinthelowest overall repair cost.

Foreachleased,hired,rentedor borrowedcovered
“auto”ourobligationtopayeachapplicable“loss”willbe
reducedbythehired“auto”deductibleonthispolicy.Ifthereisnohired“auto”coveragesymbol8 forphysical damagecoverageonthepolicy,ourobligationtopayfor
each“loss”willbereducedbythedeductibleequalto
the highest deductible applicable to any owned “auto” forthat coverage. No deductible will be applied to any “loss” caused by fire or lightning.

SECTIONIV, B.5. Other InsuranceCondition,
Paragraph 5.b.isdeletedinitsentiretyandreplacedbythe following:

For HiredAuto PhysicalDamageCoverage,the
following are deemed to be covered “autos’” you own:

1. Anycovered“auto”youlease,hire,rent,orborrow;
and

2. Any covered“auto”hired or rentedby your“employee”undera contractor agreementin that “employee’s”name,withyourpermission,while
performingdutiesrelatedto theconductof yourbusiness.

However,any“auto”thatis leased,hired,rentedor
borrowed with a driver is not a covered “auto”.

ThiscoverageextensiondoesnotapplytoEmergency
Services Organizations and Governmental Entities.

HIRED AUTO LOSS OF USE COVERAGE
IfComprehensive,SpecifiedCausesofLossorCollisioncoverageappliesto a covered“auto”,thefollowingis added to SECTION III, A.4. — Coverage Extensions:

We will pay expensesfor whichyou are legally
responsibleto payforlossof useof a leased,hired,rentedorborrowed“auto”if itresultsfroman“accident”.

TheperdaylimitintheBusinessAutoCoverageform
doesnotapplyandthemostwewillpayper“accident”is
the Limit of Insurance shown on the ElitePac Schedule.

Loss of Use Expenselimits affordedby any
endorsementaddedtothecommercialautopolicyshall
applyin excessof the coverageaffordedby this
ElitePac form.

ThiscoverageextensiondoesnotapplytoEmergencyServicesOrganizations,GovernmentalEntities,and Schools.

AUTO LOAN/LEASEGAP COVERAGE(Not
Applicable in New York)
IfComprehensive,SpecifiedCausesofLossorCollisioncoverageappliesto a covered“auto”,thefollowingis added to SECTION III, A.4. — Coverage Extensions:

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Intheeventofa total“loss”toa covered“auto”wewill
payanyunpaidamountdueontheleaseorloanforacovered “auto”, less:

1. The amountpaidunderthe PhysicalDamage
Coverage Section of the policy; and

2. Any:
a. Overduelease/loanpaymentsat thetimeof
“loss”;
b. Financialpenaltiesimposedundera leasefor
excessiveuse,abnormalwearandtear,high
mileage or similar charges;
c. Securitydepositsnotrefundedbythelessoror
financial institution;
d. Costsforextendedwarranties,creditlife,health,
accident,ordisabilityinsurancepurchasedwith
the loan or lease; and
e. Carry-overbalancesfrompreviousleasesor
loans.

Youareresponsibleforthedeductibleapplicabletothe
“loss” for the covered “auto”.

PERSONAL EFFECTS
The followingis addedto SECTIONIII, A.4. —
Coverage Extensions:

If thispolicyprovidesComprehensiveCoverageforacovered“auto”youownandthatcovered“auto”is stolen,wewillpayuptotheLimitofInsuranceshownon
the ElitePacSchedule,withoutapplicationof a
deductible,for lostpersonaleffectsthatwerein thecovered“auto”atthetimeoftheft.Personaleffectsdo notincludejewelry,tools,money,or securities.This
coverage is excess over any other collectible insurance.

AIRBAG COVERAGE
Thefollowingis addedto SECTIONIII, B.3.a.—Exclusions:

Mechanicalbreakdowndoesnotincludetheaccidental
discharge of an airbag.

ThiscoverageextensiondoesnotapplytoEmergency
Services Organizations and Governmental Entities.

EXPANDEDAUDIO, VISUAL, AND DATA

ELECTRONIC EQUIPMENT COVERAGE
SECTION III, B.4. — Exclusions
This exclusion does not apply to the following:

1. Global positioning systems;

2. “Telematic devices”; or

3. Electronicequipmentthatreproduces,receivesor
transmitsvisualor datasignalsandaccessoriesused with such equipment, provided such equipment is:
a. Permanentlyinstalledin or uponthecovered
“auto” at the time of the “loss”;
b. Removablefrom a housingunit that is
permanentlyinstalledin thecovered“auto”atthe time of the “loss”; c. Designedtobesolelyoperatedbyuseofpower
from the “auto’s” electrical system; or
d. Designedto be usedsolelyin or uponthe
covered “auto”.

Foreachcovered“loss”tosuchequipment,adeductibleof $50shallapply,unlessthe deductibleotherwise applicabletosuchequipmentislessthan$50,atwhich
point the lower deductible, if any, will apply.

COMPREHENSIVEDEDUCTIBLE— LOCATIONTRACKING DEVICE
The following is added to SECTION III, D. - Deductible:

AnyComprehensiveCoverageDeductibleshowninthe
Declarationswill be reducedby 50%for any“loss”
causedbytheftif thecovered“auto”isequippedwithalocationtrackingdeviceandthatdevicewasthesole method used to recover the “auto”.

PHYSICAL DAMAGE LIMIT OF INSURANCE
SECTIONIII,C.—LimitOfInsuranceisdeletedinits
entirety and replaced with the following:

Themostwewillpayfora“loss”inanyone“accident”isthe lesser of:

1. Theactualcashvalueof thedamagedor stolen
property as of the time of the “loss”; or

2. Thecostofrepairingorreplacingthedamagedor
stolenpropertywithotherpropertyoflikekindandquality.

ThiscoverageextensiondoesnotapplytoEmergency
Services Organizations and Governmental Entities.

GREEN AUTOMOBILE REPLACEMENT COVERAGE
Intheeventofatotal“loss”toanowned“auto”thatisa“gasolinepoweredauto”for whichComprehensive, SpecifiedCausesof Loss,or Collisioncoverage
applies,PhysicalDamagecoveragewillbeamendedas
follows:

Iftheowned“gasolinepoweredauto”isreplacedbyyouwitha“greenauto”,wewillpayanadditional10%ofthe “gasolinepoweredauto’s”actualcashvalueup to a
maximumof $3,000,providedthe“auto”is replacedanda copyofa billofsaleornewleaseagreementis receivedbyuswithin60calendardaysof thedateof
the “loss”.

Regardlessof thenumberof “autos”deemeda total
loss,the mostwe will pay underthis coverageextension for any one “loss” is $10,000.

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378
AMENDMENTSTOSECTIONIV—BUSINESSAUTOCONDITIONS

DUTIESINTHEEVENTOFACCIDENT,CLAIM,SUIT

OR LOSS
Thefollowingisaddedto SECTIONIV,A.2.a.—Duties
In The Event Of Accident, Claim, Suit Or Loss:

Thenoticerequirementsforreporting“accident”claim,“suit”or “loss”informationto us,includingprovisions relatedto the subsequentinvestigationof such
“accident”,claim,“suit”or“loss”donotapplyuntilthe
“accident”, claim, “suit” or “loss” is known to:

1. You, if you are an individual;

2. A partner, if you are a partnership;

3. Anexecutiveofficerorinsurancemanager,if you
are a corporation;

4. Yourmembers,managersorinsurancemanager,if
you are a limited liability company;

5. Yourelectedorappointedofficials,trustees,boardmembersoryourinsurancemanager,if youarean organizationotherthana partnership,jointventure
or limited liability company.

However,thissectiondoesnotamendtheprovisionsrelatingto notificationof policeor protectionorexaminationof thepropertythatwassubjectto the“loss”.

WAIVER OF SUBROGATION
SECTIONIV,A.5.—TransferOfRightsOfRecoveryAgainstOthersToUsis deletedin itsentiretyandreplaced with the following:

Wewaiveanyrightof recoverywemayhaveagainstanypersonor organizationbecauseof paymentswemakefor“bodilyinjury”or“propertydamage”resultingfromtheownership,maintenanceoruseof a covered“auto”butonlywhenyouhaveassumedliabilityforsuch“bodilyinjury”or “propertydamage”in an “insuredcon-tract”.In all othercircumstances,if a personororganizationto orforwhomwemakepaymentunderthisCoverageFormhasrightstorecoverdamagesfromanother, those rights are transferred to us.

MULTIPLE DEDUCTIBLES
Thefollowingis addedto SECTIONIV,A. — LossConditions:

Ifa“loss”fromoneeventinvolvestwoormorecovered“autos”and coverageunder ComprehensiveorSpecifiedCausesof Lossapplies,onlythe highestapplicable deductible will be applied.

CONCEALMENT, MISREPRESENTATION OR FRAUD
The followingis addedto SECTIONIV, B.2. —Concealment, Misrepresentation Or Fraud:

If youshouldunintentionallyfailtodiscloseanyexistinghazardsin yourrepresentationsto us priorto theinceptiondateofthepolicyorduringthepolicyperiodinconnectionwithanynewlydiscoveredhazards,wewillnotdenycoverageunderthisCoverageFormbasedupon such failure.

POLICY PERIOD, COVERAGE TERRITORY
SECTIONIV, B.7. — PolicyPeriod,CoverageTerritoryisdeletedinitsentiretyandreplacedwiththefollowing:

UnderthisCoverageForm,wecover“accidents”and“losses” occurring:
a. DuringthepolicyperiodshownintheDeclarations;and
b. Within the “Coverage Territory”.

We alsocover“loss”to or “accidents”involvingacovered“auto”whilebeingtransportedbetweenanyofthese places.

TWOORMORECOVERAGEFORMSORPOLICIESISSUED BY US — DEDUCTIBLES Thefollowingisaddedto SECTIONIV,B.8.—TwoOrMore Coverage Forms Or Policies Issued By Us:

If a “loss”coveredunderthisCoverageFormalsoinvolvesa “loss”to otherpropertyresultingfromthesame“accident”thatis coveredunderthispolicyoranotherpolicyissuedbyusoranymembercompanyofours,onlythehighestapplicabledeductiblewill beapplied.

AMENDMENTS TO SECTION V — DEFINITIONS
BODILYINJURYINCLUDINGMENTALANGUISH(Not Applicable in New York) Thedefinitionof bodilyinjuryis deletedin itsentiretyand replaced by the following:
“Bodilyinjury”meansbodilyinjury,sickness,ordiseasesustainedbya person,includingdeathresultingfromanyof these.“Bodilyinjury”includesmentalanguishresultingfrom bodily injury,sicknessor diseasesustained by a person.

ADDITIONS TO SECTION V — DEFINITIONS

COVERAGE TERRITORY
“Coverage Territory” means:

1. The UnitedStatesof America(includingitsterritoriesandpossessions),CanadaandPuertoRico; and

2. Anywherein theworld,exceptforanycountryorjurisdictionthatissubjecttotradeorothereconomicsanctionor embargoby the UnitedStatesofAmerica,ifacovered“auto”isleased,hired,rented,orborrowedwithoutadriverforaperiodof30daysor less,andthe insured’sresponsibilityto pay“damages”isdeterminedina“suit”onthemeritsinandunderthesubstantivelawoftheUnitedStatesof America (includingits territories andpossessions),PuertoRico,or Canada,or in asettlement we agree to.

Copyright, 2022 Selective Insurance Company of America. All rights reserved.

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