CITY OF RICHMOND RENT
PROGRAM
Richmond Fair Rent, Just Cause for Eviction, and
Homeowner Protection Ordinance (RMC 11.100)
REQUEST FOR PROPOSALS FOR
COLLECTION AGENCY SERVICES
June 24, 2019
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
CITY OF RICHMOND RENT PROGRAM
REQUEST FOR QUALIFICATIONS AND PROPOSALS FOR
COLLECTION AGENCY SERVICES
The City of Richmond Rent Board (Board) is soliciting proposals from qualified firms and agencies to provide collection services for the City of Richmond Rent Board’s Delinquent Landlord Accounts. The Board 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. The Board seeks an experienced and effective Contractor that minimizes Rent Board costs, maximizes the use of available technology, provides excellent c ustomer service, and performs thorough and complete collections. Agreements for the first year may be executed for a period of up to one year, ending June 30, 2020, with the possibility of renewing the contract for additional years.
All questions must be submitted via the electronic BidsOnline system on the Q&A tab by Friday, July 12, 2019 at 5:00 p.m. PST. If the City finds it necessary to issue an addendum, prospective bidders will receive e -mail notification of addendum. Otherwise, answers to questions received will be provided on the Q&A tab and notification will be sent by Monday, July 15, 2019, at 5:00 p.m.
PST. It is the proposer’s responsibility to periodically check the BidsOnline website www.ci.richmond.ca.us/bids for any possible Addenda to the RFP that may have been posted.
Interested parties may download copies of the above mentioned proposal by visiting the City's web site, www.ci.richmond.ca.us/bids. To download the RFP, new vendors will be required to register.
Once the vendor downloads any documents relative to a solicitation, that vendor's name will appear on the Prospective Bidders list for that project and will receive any addenda or notifications relating to the RFP.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
INTRODUCTION
The following provides general information and instructions for applying for funds from the City of Richmond Rent Board for the services described below to be performed in Fiscal Year (FY) 2019- 2020. This document contains the requirements that all proposers must satisfy and/or complete.
Through this Request for Proposals (RFP), the Board invites qualified firms and agencies to provide collection services for the Board’s Delinquent Landlord Accounts. The goal of the collection services is to capture any and all outstanding revenue owed to the Rent Program to support the agency’s long-term financial sustainability.
Utilizing funds provided by the Rent Board’s Residential Housing Fee, this RFP seeks to contract with one firm or agency to meet the goal of this RFP. The Rent Board expects to award a contract according to the table set forth below.
Program FY 19-20
Funding
Funding
Source
Amount
Awarded
Approx. # of Awards
Collection
Services
Rental
Housing Fee
revenue
(contingency)
Residential
Housing
Fee
Contingency:
Percentage based
on amount
collected
1 Funding for the program will be provided for the 2019-20 Fiscal Year with the option to extend at the Rent Board’s sole discretion and contingent upon funding availability and performance. The Rent Board’s contracts are typically based on the fiscal year calendar, July 1 to June 30. The Rent Board expects the agreements to be executed during the week of July 29, 2019. Agreements for the first year may be executed for a period of up to one year, ending June 30, 2020, with the possibility of renewing the contract for additional years.
The selected proposer(s) will be required to enter into an agreement with the Rent Board containing the terms and conditions set forth in Attachment A: City of Richmond Rent Board Standard Contract. If you have any exceptions to the standard terms and conditions, you must note them in your proposal; otherwise, none will be considered or granted.
The Rent Board reserves the right to accept or reject any item or group(s) of items of a response/proposal. The Rent Board also reserves the right to waive any informality or irregularity in any proposal. Additionally, the Rent Board may, for any reason, decide not to award an agreement as a result of this RFP or cancel the RFP process. The Rent Board shall not be obligated to respond to any proposal submitted, nor be legally bound in any manner by submission of the proposal. The Rent Board is not required to accept the proposal with the lowest price. Responses will be evaluated to determine the most advantageous proposal based on a variety of factors as discussed herein. The
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
Rent Board reserves the right to negotiate with any or all proposers on cost proposals, assigned staff and program deliverables.
Statistical information contained in this RFP is for informational purposes only. The Rent Board shall not be responsible for the complete accuracy of said data. The Rent Board reserves the right to verify any information provided during the RFP process and may contact references listed or any other persons known to have contracted with the proposer. The Rent Board reserves the right, without limitation, to execute an agreement with one or more proposers based solely on the proposal and any approved additions, and to enter into a separate agreement with another agency in the event that the originally selected proposer defaults or fails to execute an agreement with the Rent Board.
BACKGROUND
The City of Richmond Rent Board was established following voter approval of Measure L in November 2016. The Richmond Rent Board is charged with implementation of the Rent Ordinance and the Richmond Rent Program is an extension of the Richmond Rent Board, charged with the administration of the Rent Ordinance. An estimated 19,259 rental units throughout the City of Richmond are covered by the Rent Ordinance.
The Rent Ordinance, found in Richmond Municipal Code Section 11.100, and its companion Regulations, aims to “promote neighborhood and community stability, healthy housing, and affordability for renters in the City of Richmond by controlling excessive rent increases and arbitrary evictions to the greatest extent allowable under California law, while ensuring Landlords a fair and reasonable return.” To achieve its purported goal, the Rent Ordinance regulates both rents and evictions for those rental units that are covered by the Rent Ordinance’s provisions.
Some of the Rent Ordinance ’s integral provisions do the following: 1) Limits annual rent increases to one hundred percent (100%) of the percentage increase in the Consumer Price index as reported and published by the U.S. Department of Labor, Bureau of Labor Statistics, for the 12 -month period ending as of March of the current year ; 2) Authorizes both Landlords and tenants to submit petitions with the Richmond Rent Program seeking either an additional increase in rent due to a lack of Fair Return or decrease in rent due to an inhabitable premise or decrease in services ; 3) Eliminates no cause evictions and requires Landlords have at least 1 of the 8 Just Cause basis for eviction as codified in Richmond Municipal Code Section 11.100.050. Just Cause is a provision of law that prohibits Landlords from taking any “action to terminate any tenancy, including but not limited to, making a demand for possession of a Rental Uni t, threatening to terminate a tenancy verbally or in writing, serving any notice to quit or other eviction notice, or bringing any action to recover possession or be granted recovery of possession of a Rental Unit” unless a Landlord pleads and proves a Jus t Cause basis for the termination of tenancy and compliance with the Rent
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
Ordinance; 4) Prohibits retaliatory evictions and e stablishes tenants’ rights to relocation benefits when facing “no -fault” Just Cause eviction ; and 5) Establishes a Rent Board to execute and administer the provisions of the Rent Ordinance through rules, regulations, resolution, contracts, and legal action.
To enforce the regulatory goal of the Rent Ordinance, the Rent Board passes an annual budget and funds that budget by cha rging Landlords a Residential Rental Housing Fee. The adopted budget and Rental Housing Fees for years prior are contained in the table below. It is anticipated that the FY 2019-20 Rental Housing Fee will be billed in August or September 2019.
Table 1. Expense and Revenue Summary
FISCAL
YEAR FEE
BUDGETED
AMOUNT
FUNDS
EXPENDED
REVENUE
COLLECTED
ESTIMATED
REVENUE
CAPACITY
BASED ON
UPDATED
UNIT
COUNT1
ESTIMATED
PERCENT
OF
POTENTIAL
REVENUE
COLLECTED
2017-182
FY 16-17
(partial):
$1,150,433 $1,967,837 $2,173,7783 $2,792,555 77.8%4
FY 17-18:
$2,425,338
2018-195 $2,804,925 $1,757,550 $1,740,815 $2,550,164 68.3%
Additional information about the Rent Program and its services is accessible at www.richmondrent.org.
1 This figure represents the total possible revenue that could be collected, calculated by multiplying the adopted fee by the updated number of total rental units based on the Rent Program’s updated unit count information. 2 Includes the Fiscal Year 2016-17 Rental Housing Fee (December 2016 – June 2017) 3 This figure includes revenue collected in Fiscal Year 2017-18 for both the Fiscal Year 2016-17 and Fiscal Year 2017-18 fees.
4 This figure represents the percentage of potential revenue for both FY 16-17 and FY 17-18 collected in FY 17-18, during the concurrent billing cycle.
5 Amount of expended funds and revenue collected reflects July 2018 – April 2019.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
REQUESTED SERVICES
The Board intends to obtain the services of a full -service collection agency (Agency) to provide revenue collection service for unpaid and delinquent accounts receivable to complete collections on delinquent Residential Rental Housing where Landlord s have an outstanding fee owed for longer than sixty (60) days and have not been in communication with the Richmond Rent Program regarding the outstanding fee.
ELIGIBILITY REQUIREMENTS
The exact range and extent of services is subject to negotiation, but at a minimum must include professional services and dedicated personnel to perform the following scope of services:
1) Agency shall provide collection services for debts owed to the Board for Delinquent Residential Rental Housing Fee.
2) Agency shall designate a manager for the Board’s account who will be the Board’s primary contact with the Agency.
3) Board shall submit delinquent accounts for collection via hard copy, e-mail, electronic file, or in writing. Agency shall provide acknowledgement within 10 days of account placement via the same method that the account was submitted.
4) Board shall provide documentation to Agency for each account, including name, any available customer information, last known address, account number, and balance due 5) Agency shall make a minimum of three written or telephone contacts for each account (unless the account clears sooner) within forty-five (45) days of receipt of account. 6) Agency shall discuss their recommended use of skip tracing on delinquent accounts. Agency to provide specific tools used to conduct skip tracing. 7) Agency should indicate whether the Board will have access to the Agency’s database in order to determine the progress of the collection efforts.
8) Agency shall maintain complete records of each account referred by the Board, including all correspondence, documents, account records, transactions and a detailed log of all collection efforts of actions. These records shall be retained for a minimum of three years after termination of collection actions on each account.
9) Agency shall provide the Board a monthly report on the status of each account including; account number, customer name, the amount received, the charges waived, the balance due and date of last payment, and the actions taken on the account. Agency should immediately advise the Board of any account that is paid in full or deemed uncollectible. If an account is deemed uncollectible, information regarding this determination must be p rovided to the Board.
10) Agency shall provide to the Board quarterly financial summary reports including totals for receipts, net accounts receivable, total accounts receivable and collection percentage.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
11) Agency shall provide to the Board an annual financial summary report as of June 30 (Board’s fiscal year end) including totals for receipts, net accounts receivable, total accounts receivable and collection percentage. This report should be submitted to the Board no later than July 30th of each year.
12) At any time, all records of the agency pertaining to the Board shall be subject to inspection, review, or audit by the Board or its agent during the contract period and for three (3) years after the termination of the contract.
13) Agency shall guarantee the confi dentiality, security and safety of all files, documents and information provided by the Board, except as to disclosure required by federal and state laws and regulations.
14) Agency will exercise its best ethical, prudent, lawful and professional efforts to se cure collections on all accounts referred by the Board. Collections activities shall comply with all federal, state and local laws, including but not limited to the Federal Fair Debt Collection Practices Act.
15) Agency will process all customer payments in accordance with applicable Payment Card Industry (PCI) security requirements.
16) In accordance with the Fair and Accurate Credit Transaction Act (FACT), the vendor must have an identity theft prevention program in place.
17) Agency shall report all uncollectible accounts to the major credit bureaus. Reporting must be done in accordance with all federal, state and local laws, including but not limited to, the Fair Debt Collections Practices Act, the Federal Equal Credit Opportunity act, and the Consumer Credit Protection Act. Agency shall not report accounts to the credit bureaus until the agency has worked the account for forty-five (45) days. At the request of the Board, the Agency shall remove an account notification from all the affected bureaus and provide a copy of that notification to the Board.
18) Agency shall not assign or subcontract any portion of this agreement or transfer or assign any claim, pursuant to this contract, without the written consent of the Board. 19) Agency shall make contacts with delinquent a ccounts under the name of the agency and not the Board.
20) Agency shall instruct Landlords to submit payments to the Agency and not the Board. The Board shall notify agency of any payments made to the Board for accounts under collection with the Agency.
21) Agency shall collect and deposit payments from customers and, on no less than a monthly basis, submit a check to the City of Richmond Rent Program for all monies collected, less collection fees, along with a report including the account name and number, amount collected, and collection fees.
22) Any compromise settlement of principal or charges shall be agreed upon in writing (which includes emails) between the Agency and the Board prior to acceptance. 23) Agency may allow for time payment agreements (payment plans) and may enter into time payment agreements with Landlords for any period less than one year without the consent of
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
the Board. Any time payment a greement extending beyond one year from the date of initiation of plan must be agreed upon in writing between the agency and the Board prior to acceptance.
24) No legal actions shall be taken by the Agency without express written consent of the Board. 25) Agency shall be solely responsible for any and all costs incurred in and associated with the collection of debts referred to it by the Board.
26) Compensation shall be contingent upon actual collections of debts owed to the Board.
Agency may subtract a reasonable fee from the amount of the debt collected and paid to the Board, as a percentage of debt collected with a specified maximum. Agency must identify the fee, how it is determined and the fee must be consistent across all debts collected. 27) The Board may withdraw any accounts without any charge or penalty. 28) The Board reserves the right to terminate the contract at any time by providing thirty days written notice for convenience or cause.
29) Agency shall meet with Board staff upon execution of contract to discuss a ll the goals of the relationship, the services to be provided and other topics relevant to performing collections on behalf of the Board. Furthermore, Agency shall meet with Board staff on an annual basis (or as-needed if issues arise) to discuss all servi ces and how the agency and Board can work together to further reduce debt owed. The Board will provide overall guidance on the conduct of collection services, as it reflects upon the Board’s policies and reputation. Agency will also provide updates to the Board on changes in federal and state laws related to credit and collections.
Specific Requirements Related to the Scope of Work:
• The selected Agency shall be fully responsible for maintaining accurate records of all correspondence, working papers, and other related evidence. These records shall be made available to the Board as requested.
• The Agency, if selected, agrees to maintain a City of Richmond B usiness License, as required by the Richmond Municipal Code, for the duration of the contract.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
TIMELINE AND PROCESS
The following is the anticipated timeline related to this RFP. Please note that this timeline may be changed if the Rent Board deems it necessary.
Table 2. Proposed Timeline
PROPOSED DATE ACTION
Monday, June 24, 2019 Release of RFP
Friday, July 12, 2019, 5:00 PM Last day to submit questions regarding the RFP Friday, July 19, 2019, 12:00 PM Responses to RFP due
Week of July 22, 2019 Panel reviews proposals and submits recommendation(s) to Executive Director;
Executive Director selects desired agency(ies)
Week of July 22, 2019 Selected agency(ies) is/are notified Week of July 29, 2019 Agreement is negotiated and executed
All questions must be submitted via the electronic BidsOnline system on the Q&A tab by Friday, July 12, 2019 at 5:00 p.m. PST. If the City finds it necessary to issue an addendum, prospective bidders will receive e -mail notification of addendum. Otherwise, answers to questions received will be provided on the Q&A tab and notification will be sent by Monday, July 15, 2019, at 5:00 p.m.
PST. It is the proposer’s responsibility to periodically check the BidsOnline website www.ci.richmond.ca.us/bids
for any possible Addenda to the RFP that may have been
posted.
The Board reserves the right to respond to these questions in a limited fashion or not all.
Additionally, pl ease note that the Board does not intend to address specific questions but rather clarify issues regarding the substance of this RFP.
Respondents to this Request for Proposals are required to submit by mail or ha nd delivery one (1) original, five (5) hard copies, and one (1) electronic copy either on optical media or USB drive of their proposal no later than Friday, July 19, 2019, at 12:00 PM to:
City of Richmond Rent Program
Attn: Cynthia Shaw
440 Civic Center Plaza, Suite 200
Richmond, CA 94804
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
The proposals must be in a sealed envelope marked with the respondents’ name, address, and telephone number. No grace period will be allowed for missing components to be submitted.
No additional submissions or supplements will be accepted after July 19, 2019. Any application or supplemental information that is late will not be considered. The Rent Program reserves the right to extend the time for receipt of proposals.
The Board will create a Rent Program Collection Services Review Committee to evaluate timely submitted proposals. The Committee will be comprised of neutral Richmond Rent Program Staff members. All proposals should provide sufficient and concise information to permit sufficient review and adequate evaluation. Proposals shall be reviewed in four general phases:
1. All proposals will be evaluated based on the proposal submission requirements and criteria.
2. The Rent Program Collection Services Review Committee shall rate and compose a short list of proposers based on the submission requirements and criteria.
3. Contingency Fee proposals will be reviewed and evaluated.
The Richmond Rent Program will adhere to the below criteria when evaluating any and all proposals.
Table 3. Evaluation Criteria
Technical Evaluation Criteria Allocated Points
Thoroughness and understanding of the tasks to be completed 20 Agency’s expertise and overall experience of personnel assigned to the work 15
Time requested to accomplish the requested services 15
Responsiveness to requirements of the project 15
Public sector experience in a municipal setting, conducting similar services 20
Contingency Fee Proposal 25
The proposal(s) with the highest score(s) will not automatically be awarded a contract. In making the final selection of a service pro vider, the Executive Director of the Richmond Rent Program will consider the Committee’s scoring, proposers ’ past performance , if applicable , Contingency Fee
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
Proposal, and the Richmond Rent Board’s overall needs . The Contingency Fee Proposal may be afforded additional weight i n determining the proposals most advantageous to the Board’s goals .
The Contingency Fee Proposal must be considered reasonable. A contract may be awarded to a proposer who does not submit the lowest Contingency Fee Proposal . The amount to be awarded is in the full discretion of the Executive Director of the Rent Program, who will at the very least consider funding availability and the City of Richmond’s needs before selecting an amount to award.
All proposers will be notified via email of the Richmond Rent Board’s decision to award a contract to one or more proposers. The notice shall state the name of the organization(s) who was awarded the contract, the amount of funds awarded, and the right of any proposer to appeal. Notice of the awarded contract shall be given no later than Friday, August 2, 2019. If a proposer chooses to appeal, the appeal must be made in writing and mailed to the City of Richmond Rent Program, Attn:
Cynthia Shaw, 440 Civic Center Plaza, Suite 200, Richmond, CA 94804.
All appeals must be submitted within ten days from the date that the Notice of Awarded Contract is emailed to the proposers. The appeal must contain the name, street address, email address, and signature of the person submitting the appeal. The appeal must be based on either 1) abuse of process by members of the Rent Program Collection Agency Services Review Committee; 2) misconduct by members of the Rent Program Collection Agency Services Review Committee; and/or 3) abuse of discretion by members of the Rent Program Collection Agency Services Review Committee. All appeals must be accompanied by competent evidence for adequate disposition.
Failure to plead and substantiate one or more of the above allegations will result in the denial of the appeal. The Executive Director will respond to all appeals within 14 business days. The Executive Director’s decision is final and there is no further appeal process concerning his/her decision after it is rendered.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
PROPOSAL SUBMISSION REQUIREMENTS AND CRITERIA
The proposal must contain the following specific information. Any additional information that the Agency wishes to include should be included in an appendix to the proposal.
1. Letter of transmittal signed by an individual authorized to bind the proposing entity stating the Agency has read and will comply with all terms and conditions of the RFP.
2. General information about the firm, including the size of the organization, location of offices, number of years in business, organizational chart, name of owners and principal parties, and the number and position titles of staff. Information regarding any collection associations of which the Agency and its staff are members should be included.
3. Qualifications of staff proposed for the assignment, their position in the Agency, and types and amount of equivalent collection experience. Be sure to include any municipal agencies they have worked with and their level of involvement. A description of how overall supervision will be provided should be included (this can be included as part of an attachment).
4. A description of the methodology that would be followed in carrying out the Agency’s responsibilities. Clearly describe all collection services you propose to provide to the Board. As a part of the description, identify the responsibilities of the Board and the responsibilities of the Agency. Also describe the coordination required between Landlords, the Board, and the Agency if an account is assigned. Please provide any additional information or suggestions that will aid in the City’s selection process.
5. Provide sample copies of the type of reports the Board could expect to receive from the Agency for each major source of revenue (previously listed). Each report should be clearly marked as to the type of information the particular report is trying to convey (this can be included as part of an attachment). A monthly report on the amount assigned, the amount collected, the amount returned and the overall collection rate is required.
6. Provide sample letters to be sent to delinquent accounts. Be sure to indicate what collection method each letter pertains to (this can be included as part of an attachment).
7. A list of the municipal agencies your Agency has worked with during the past three years. Provide the following information for three collection projects which are similar in size and scope to the project requested by this proposal:
a) Name, address and telephone of the agency
b) Time period for the project
c) Brief description of the scope of the collection efforts d) Recommended collection procedures
e) Persons to contact for a reference.
8. A statement as to the ability of the Agency to make collections in all fifty states and the Agency’s ability to file reports with all three national credit bureaus.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
9. Clearly describe and outline your contingency fees for the services. Be sure to differentiate the fees between the various collection methods being proposed.
10. A statement of the dollar amount, if any, of an account under which the Agency will not actively pursue regular collection and/or legal action.
11. Billing and payment expectations including timing and method of payment.
12. Provide overall information to show the average number of days required by your Agency to complete a collection and forward the monies to your customer. In addition, list historical collection percentages achieved by your Agency for the various sources of revenue listed in the RFP.
13. A statement of the services your Agency feels differentiates from other agencies.
14. Agencies submitting a proposal in response to this RFP must disclose any actual, apparent, direct, indirect, or potential conflicts of interests that may exist with respect to the firm, management, or employees of the firm or other persons relative to the services to be provided. If a firm has no conflicts of interest, include a statement to that effect in the proposal.
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
OTHER TERMS AND CONDITIONS
Conditions
The Board will not pay any costs incurred by the Agency in preparing or submitting the proposal. The Board reserves the right to revise and/or cancel this RFP , or to reject, in whole or in part, any and all proposals received in response to this RFP . The Rent Program, upon its determination, further reserves the right to waive any informality or irregularities in any proposals received, if it is in the public interest to do so. The determination of the criteria and process whereby proposals are evaluated, t he decision as to who shall receive a contract award, or whether or not to award, shall be made as a result of the RFP, shall be at the sole and absolute discretion of the Rent Program . This RFP does not constitute any form or offer to contract.
The Agency, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP. This RFP does not commit the Board to award a contract, defray any costs incurred in the preparation of a proposal pursuant to this RFP or to procure or contract for work.
All proposal submitted in response to this RFP becomes the property of the Board and public records and, as such, may be subject to public review.
Indemnification
The successful Agency must agree to defend, indemnify, and hold harmless Board, its officers, officials, agents and employees and volunteers from and against any and all losses, liability, or damages arising out of, in consequence of, or resulting from the negligent acts and/or omissions of Agency, its subcontractor, consultants, agents or employees.
Insurance Requirements
The Agency shall demonstrate the willingness and ability to provide the required insurance coverage as set forth below within ten calendar days of notification of selection for award of this Agreement.
The selected Agency will be required to carry, and provide certificates of insurance for, general and automobile liability insurances as follows:
• General Liability: $1,000,000 minimum per occurrence • Automobile Liability: $1,000,000 minimum per occurrence • Worker’s Compensation Statutory Limits
City of Richmond Rent Program
Request for Proposals – Collection Agency Services
The General Liability Insurance is to contain or be endorsed to name the Board, its officers, officials, employees and agents as Additional Insured as respects liability arising out of activities performed in connection with this RFP and accompany contract. The coverage shall be primary and shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer ’s liability. Original endorsements, signed by a person authorized to bind coverage on its behalf, shall be furnished to the Board by the successful Agency.
Worker’s Compensation policies are to be endorsed to include a waiver of subrogation against the Board, its officers, officials, employees and agents.
The successful Agency will be required to enter into a Service Agreement with the Board. A draft agreement will be provided upon request.
Business License Requirement
The successful Contractor and all subcontractors used in the work will be required to hold or to obtain a City of Richmond business license for which the fee will not be waived.
Compliance with City Ordinances
The contractor and all subcontractors shall comply with the City of Richmond Nondiscrimination Clauses in City Contracts Ordinance ( Richmond Municipal Code (RMC) Chapter 2.28 ), Business Opportunity Ordinance ( RMC Chapter 2.50 ), Local Employment Program Ordinance (RMC Chapter 2.56), Living Wage Ordinance ( RMC Chapter 2.60) and Ordinance Banning the Requirement to Provide Information of Prior Criminal Convictions on all Empl oyment Applications (“Ban the Box”) ( RMC Chapter 2.65 ), which are incorporated into the Contract Documents by this reference.
ATTACHMENTS
Attachment A – City of Richmond Rent Board Standard Contract
Attachment B – July 19, 2019, Regular Rent Board Meeting Concerning Collection Agency Services
CITY OF RICHMOND RENT BOARD
STANDARD CONTRACT
Department:
Project Manager:
Project Manager E-mail:
Project Manager Phone No:
Vendor No: PR No:
P.O./Contract No:
Description of Services:
The parties to this STANDARD CONTRACT do mutually agree and promise as follows:
1. Parties. The parties to this Contract are the City ff Richmond Rent Board (herein referred to as “Rent Board”) and the following named Contractor:
Company Name:
Street Address:
City, State, Zip Code:
Contact Person:
Telephone: Email:
Business License No: Expiration Date:
A California [ ] corporation, [ ] limited liability corporation [ ] general partnership, [ ] limited partnership, [ ] individual, [ ] non-profit corporation, [ ] individual dba as [specify:] , [ ] other [specify:]
2. Term. The effective date of this Contract is ________________________________ and it terminates ___________________________________ unless terminated as provided herein.
3. Payment Limit. City’s total payments to C ontractor under this Contract shall not exceed $__________________. City shall not pay for services that exceed the Contract Payment Limit unless a contract amendment has been approved by the Rent Board or Executive Director.
4. Contractor’s Obligations. Contractor sha ll provide those services and carry out that work described in the Service Plan (Exhibit A) which is attached hereto and is incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
5. City Obligations. City shall make to the Contractor those payments described in the Payment Provisions (Exhibit B) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
6. Authorized Representatives and Notices. This Contract is subject to the Authorized Representatives and Notices Provisions (Exhibit C) which are attached hereto and are incorporated herein by reference.
7. General Conditions. This Contract is subject to the General Conditions (Exhibit D) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
8. Special Conditions. This Contract is subject to the Special Conditions (Exhibit E) (if any) which are attached hereto and are incorporated herein by reference, subject to all the terms and conditions contained or incorporated herein.
9. Insurance Provisions. This Contract is subj ect to the Insurance Provisions (Exhibit F) which are attached hereto and are incorporated herein by reference.
10. Signatures. These signatures atte st the parties' Contract hereto:
RENT PROGRAM CONTRACTOR:
By:
(* The Corporation Chairperson of the Board, President or Vice President should sign below)
Title: By:
I hereby certify that this Contract Title:
has been approved by the Rent Board
or the Executive Director. Date Signed:
B y :
Board Clerk
(* The Corporation Chief Financial Officer, Secretary or Assistant Secretary should sign below)
Approved as to form:
B y :
B y : T i t l e :
Board Legal Counsel
Date Signed:
(NOTE: Pursuant to California Corporations Code Section 313, if Contractor is a corporation or nonprofit organization, this Contract (1) must be signed by (a) the Chairperson of the Board, President or Vice-President and (b) the Secretary any Assistant Secretary, the Chief Financial Officer or any Assistant Treasurer.
LIST OF ATTACHMENTS:
Service Plan Exhibit A
Payment Provisions Exhibit B
Authorized Representatives and Notices Exhibit C
General Conditions Exhibit D
Special Conditions Exhibit E
Insurance Provisions Exhibit F
Standard Contract/EJ/TE 9-26-07
For the Contract between the City of
Richmond Rent Board and
EXHIBIT A
SERVICE PLAN
Contractor shall, to the satisfaction of the ________________________, perform the following services and be compensated as outlined below:
For the Contract between the City of
Richmond Rent Board and
EXHIBIT B
PAYMENT PROVISIONS
{PLEASE NOTE THAT THE RENT PROGRAM SHALL NOT PAY FOR SERVICES THAT
EXCEED THE CONTRACT PAYMENT LI MIT UNLESS A CONTRACT AMENDMENT HAS BEEN APPROVED BY THE RENT BOARD OR EXECUTIVE DIRECTOR}
1. Provided Contractor is not in default under this Contract, Contractor shall be compensated as provided below.
2. Any and all payments made pursuant to this Contract shall be subject to the Contract Payment Limit. The Payment Limit includes expenses (phones, photo copying, meals and travel, etc.) Invoices, shall be adequately detailed, based on accurate records, and be in a form reasonably satisfactory to the City. Contractor may be required to provide back-up material upon request.
3. Contractor shall submit timely invoices to the following address:
Attention: City of Richmond Finance Department - Accounts Payable Project Manager: _______________________
P.O. Box 4046
Richmond, CA 94804
4. All invoices that are submitted by Contract or shall be subject to the approval of the City Project Manager, _______________________ _ before payments shall be authorized.
5. The City will pay invoice(s) within 45 days after completion of services to the City satisfaction. The City shall not pay late fees or interest.
6. A Richmond business license shall be obtained before any payment under this Contract shall be authorized and the business license must be kept current during the term of this Contract for payments to continue to be authorized.
7. All insurance coverage required by this C ontract shall be provided by the Contractor before this Contract shall be executed by the City. The insurance coverage must be kept current during the term of this Contract for payments to continue to be authorized.
For the Contract between the City of
Richmond Rent Board and
EXHIBIT C
AUTHORIZED REPRESENTATIVES AND NOTICES
1. Notices. All notices, demands, statements, or communications provided for by this Contract shall be in writing and may be delivered by deposit in the United States mail, postage prepaid. Notices to the City shall be addressed to the Department Head and (as delineated below in section 1.1) to the project manager responsible for the administration of or the supervision of the scope of work under this Contract. Notices to the Contractor shall be addressed to the party designated by Contractor (as delineated below in section 1.2). Notice shall be deemed delivered (a) upon personal delivery; (b) as of the fifth business day after mailing by United States certified mail, postage prepaid, addressed to the proper party; or (c) as of 12:00 p.m. on the second business day immediately after the day it is deposited with and accepted by Federal Express, or a similar overnight courier service, addressed to the proper party and marked for next business day morning delivery. For the purposes of this Contract, a "business day" means any day Monday through Friday that is not a holiday recognized by the federal government or the State of California.
1. 1 City hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:
City of Richmond Rent Program
440 Civic Center Plaza, Suite 200
Richmond, CA 94804
1. 2 CONTRACTOR hereby designates as its Authorized Representative the Project Manager whose name and address are as follows:
For the Contract between the City of
Richmond Rent Board and
EXHIBIT E
SPECIAL CONDITIONS
The General Conditions are hereby amended to include the following modifications and/or provisions (if applicable):
For the Contract between the City of
Richmond Rent Board and
EXHIBIT F
INSURANCE PROVISIONS
During the entire term of this Contract and any extension or modification thereof, the CONTRACTOR shall keep in effect insurance policies meeting the insurance requirements specified in the insurance provisions which are attached hereto and incorporated herein by this reference.
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EXHIBIT D
GENERAL CONDITIONS
1. Independent Contractor. Contractor acknowledges, represents and warrants that Contractor is not a regular or temporary employee, joint venturer or partner of the City, but rather an independent Contractor. This Contract shall not be construed to create an agency, servant, employee, partnership, or joint venture relationship. As an independent Contractor, Contractor shall have no authority to bind City to any obligation or to act as City's agent except as expressly provided herein. Due to the independent Contractor relationship created by this Contract, City shall not withhold state or federal income taxes, the reporting of which shall be Contractor's sole responsibility.
2. Brokers. Contractor acknowledges, represents and warrants that Contractor has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Contract.
3. City Property. The rights to applicable plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Contract, which, upon request, are to be delivered to City within a reasonable time, shall be deemed assigned to City. If applicable, Contractor shall prepare check prints upon request. Notwithstanding the foregoing, Contractor shall not be obligated to provide to City proprietary software or data which Contractor has developed or had developed for Contractor's own use; provided, however, that Contractor shall, pursuant to Section 15 below, indemnify, defend and hold harmless City from and against any discovery or Public Records Act request seeking the disclosure of such proprietary software or data.
4. Patents, Trademarks, Copyrights and Rights in Data. Contractor shall not publish or transfer any materials, discoveries, developments, concepts, designs, ideas, know how, improvements, inventions and/or original works of authorship resulting from activities supported by this Contract without the express prior written consent of the City Manager. If anything resulting from activities supported by this Contract is patentable, trademarkable, copyrightable or otherwise legally protectable, City reserves the exclusive right to seek such intellectual property rights. Notwithstanding the foregoing, Contractor may, after receiving City's prior written consent, seek patent, trademark, copyright or other intellectual property rights on anything resulting from activities supported by this Contract. However, City reserves, and Contractor irrevocably grants, a nonexclusive, fully paid-up, royalty-free, assumable, perpetual, worldwide license, with the right to transfer, sublicense, practice and exploit said license and the right to make, have made, copy, modify, make derivative works of, use, sell, 2 of 13
import, and otherwise distribute under all applicable intellectual properties without restriction of any kind said license.
Contractor further agrees to assist City, at City's expense, in every proper way to secure the City’s rights in any patents, trademarks, copyrights or other intellectual property rights relating thereto, including the disclosure to City of all pertinent information and data with respect thereto. Contractor shall also assist City in the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which City shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, to waive such rights. Contractor shall further assist City in the execution of all applications, specifications, oaths, assignments, recordations and all other instruments which City shall deem necessary in order to assign and convey to City, and any assigns and nominees the sole and exclusive right, title and interest in and to any patents, trademarks, copyrights or other intellectual property rights relating thereto. Contractor further agrees that its obligation to execute or cause to be executed, when it is in Contractor's power to do so, any such instruments or papers shall continue during and at all times after the end of Contractor's services and until the expiration of the last such intellectual property right. Contractor hereby irrevocably designates and appoints City, and its duly authorized officers, agents and servants, as its agent and attorney-in-fact, to act for and in its behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance or transfer of letters of patents, copyright and other registrations. This power of attorney is coupled with an interest and shall not be affected by Contractor's subsequent incapacity.
5. Inspection. Contractor's performance, place of business and records pertaining to this Contract are subject to monitoring, inspection, review and audit by authorized representatives of the CITY, the State of California, and the United States Government.
If the project or services set forth in Exhibit A shall be performed on City or other public property, City shall have the right to inspect such work without notice. If such project or services shall not be performed on City or other public property, City shall have the right to inspect such work upon reasonable notice.
6. Services. The project or services set forth in Exhibit A shall be performed to the full satisfaction and approval of City. In the event that the project or services set forth in Exhibit A are also itemized by price, City, in its sole discretion, may, upon notice to Contractor, delete certain items or services set forth in Exhibit A, in which case there shall be a corresponding reduction in the amount of compensation paid to Contractor. 3 of 13
Contractor shall, at its own cost and expense, furnish all facilities and equipment necessary for Contractor to complete the project or perform the services required herein, unless otherwise provided in Exhibit A.
7. Records. Contractor shall keep and make available for inspection and copying by authorized representatives of the City, the State of California, and the United States Government, the Contractor's regular business records and such additional records pertaining to this Contract as may be required by the City.
Contractor shall retain all documents pertaining to this Contract for a period of five (5) years after this Contract's termination (or for any further period that is required by law) and until all Federal or State audits are complete and exceptions resol ved for this contract's funding period. Upon request, CONTRACTOR shall make these records available to authori zed representatives of the CITY, the State of California, and the United States Government.
Contractor shall keep full and detailed accounts, maintain records, and exercise such controls as may be necessary for proper financial management under this Contract. The Contractor’s accounting and control systems shall be satisfactory to City. Contractor's accounting systems shall conform to generally accepted accounting principles and all records shall provide a breakdown of total costs charged under this Contract, including properly executed payrolls, time records, utility bills, invoices and vouchers. The City shall be afforded prompt access to Contractor's records, books, and Contractor shall preserve such project records for a period of at least five (5 years after the termination of this Contract , or for such longer period as may be required by law.
Contractor shall permit City and its authorized representatives and accountants to inspect, examine and copy Contractor's books, records, accounts, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to the project or services set forth in Exhibit A, and any and all data relevant to this Contract at any reasonable time for the purpose of auditing and verifying statements, invoices, or bills submitted by Contractor pursuant to this Contract and shall provide such assistance as may be reasonably required in the course of such inspection. Contractor shall also allow City access to the record keeping and accounting personnel of Contractor.
City further reserves the right to examine and re-examine said books, records, accounts, and data during the five (5 year period following the termination of this Contract; and Contractor shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any manner whatever for five (5 years after the termination of this Contract. 4 of 13
Pursuant to California Government Code § 10527, the parties to this Contract shall be subject to the examination and audit of representatives of the Auditor General of the State of California for a period of three (3) years after final payment under this Contract. The examination and audit shall be confined to those matters connected with the performance of this Contract including, but not limited to, the cost of administering this Contract.
8. Changes and Extra Work. All changes and/or extra work under this Contract shall be performed and paid for in accordance with the following:
Only the City Council or the City Manager may authorize extra and/or changed work. Contractor expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Contractor to secure the authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in contract price due to such unauthorized work and Contractor thereafter shall be entitled to no compensation whatsoever for performance of such extra and/or changed work.
If Contractor is of the opinion that any work which Contractor has been directed to perform is beyond the scope of this Contract and constitutes extra work, Contractor shall promptly notify City of the fact. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Contract and constitutes extra work. In the event that City determines that such work does constitute extra work, City shall provide extra compensation to Contractor on a fair and equitable basis. A change order or Contract Amendment providing for such compensation for extra work shall be negotiated between City and Contractor and executed by Contractor and the appropriate City official.
In the event City determines that such work does not constitute extra work, Contractor shall not be paid extra compensation above that provided herein and if such determination is made by City staff, said determination may be appealed to the City Council; provided, however, a written appeal must be submitted to the City Manager within five (5) days after the staff's determination is sent to Contractor. Said written appeal shall include a description of each and every ground upon which Contractor challenges the staff's determination.
9. Additional Assistance. If this Contract requires Contractor to prepare plans and specifications, Contractor shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Contractor shall issue 5 of 13
any necessary addenda to the plans and specifications as requested. In the event Contractor is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of Section 8 of these General Conditions.
10. Professional Ability. Contractor acknowledges, represents and warrants that Contractor and its employees are skilled and able to competently provide the services hereunder, and possess all professional licenses, certifications, and approvals necessary to engage in their occupations.
City has relied upon the professional ability and training of Contractor as a material inducement to enter into this Contract. Contractor shall perform in accordance with generally accepted professional practices and standards of Contractor's profession. In the event that City, in its sole discretion, desires the removal of any person employed or retained by Contractor to perform services hereunder, such person shall be removed immediately upon receiving notice from City.
11. Business License. Contractor shall obtain a Richmond Business License before performing any services required under this Contract. The failure to so obtain such license shall be a material breach of this Contract and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual or extraordinary circumstances without necessitating any modification of this Contract to reflect such waiver.
12. Termination Without Default. Notwithstanding any provision herein to the contrary, City may, in its sole and absolute discretion and without cause, terminate this Contract at any time prior to completion by Contractor of the project or services hereunder, immediately upon written notice to Contractor. Contractor may terminate this Contract at any time in its sole and absolute discretion and without cause upon 30 days' written notice to City. In the event of termination by either party, Contractor shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; (2) necessary materials or services of others ordered by Contractor for this Contract, prior to receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, provided that Contractor is not able to cancel such orders. Compensation for Contractor in such event shall be determined by City in accordance with the percentage of the project or services completed by Contractor; and all of Contractor's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to City. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
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13. Termination in the Event of Default. Should Contractor fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Contract, City may immediately terminate this Contract by giving written notice of such termination, stating the reasons for such termination. Contractor shall be compensated as provided in Section 12 of these General Conditions; provided, however, there shall be deducted from such amount the amount of damage, including attorney's fees, expert witness fees and costs, if any, sustained by City by virtue of Contractor's breach of this Contract. Additionally, in the event of such termination, the City may proceed with the work in any reasonable manner it chooses.
14. Conflict of Interest. Contractor acknowledges, represents and warrants that Contractor shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Contract. Contractor further acknowledges, represents and warrants that no City official or employee has any economic interest, as defined in Title 2, California Code of Regulations §§ 18703.1 through 18703.5, with Contractor that would invalidate this Contract. Contractor acknowledges that in the event that Contractor shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Contract, all consideration received under this Contract shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Contract for one (1) year.
15. Indemnification.
(a) If this Contract is a contract for design professional services subject to California Civil Code Section 2782.8(a) and Contractor is a design professional, as defined in California Civil Code Section 2782.8(b)(2), Contractor shall hold harmless, defend and indemnify the City, its officers, agents, employees, and volunteers from and against any and all claims, damages, losses, and expenses including attorneys’ fees arising out of, or pertaining to, or relating to the negligence, recklessness, or willful misconduct of the Contractor, except where caused by the active negligence, sole negligence, or willful misco nduct of the City. To the fullest extent permitted by law, Contractor shall immediately defend and indemnify the City and its officers, agents, employees, and volunteers from and against any and all liabilities, regardless of nature or type, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, or its employees, agents, or subcontractors. Liabilities subject to the duties to defend and indemnify include, without limitation, any and all claims, lo sses, damages, penalties, fines, and judgments; associated investigation and administrative expenses; defense costs, including but not limited to reasonable attorneys’ fees; court costs;
and costs of alternative dispute resolution. Contractor’s obligation to 7 of 13
indemnify applies unless it is finally adjudicated that the liability was caused by the sole active negligence or sole willful misconduct of an indemnified party.
(b) If this Contract is not a contract for design professional services sub ject to California Civil Code Section 2782.8(a) or Contractor is not a design professional as defined in California Civil Code Section 2782.8(b)(2), Contractor shall indemnify, defend, and hold harmless the City, its officers, agents, employees and volunte ers from any and all claims, suits, or actions of every name, kind and description, brought forth on account of injuries to or death of any person or damage to property arising from or connected with the willful misconduct, negligent acts, errors or omissi ons, ultra-hazardous activities, activities giving rise to strict liability, or defects in design by Contractor or any person directly or indirectly employed by, or acting as, the agent for Contractor in the performance of this Contract, including the concurrent or successive passive negligence of the City, its officers, agents, employees or volunteers.
(c) It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Contractor shall be obligated to defend, in all legal, equitable, administrative, or special proceedings, with counsel approved by the City, the City and its officers, agents, employees, and volunteers, immediately upon tender to Contractor of the claim in any form or at any stage of an action or proceeding, whether or not liability is established.
An allegation or determination that persons other than Contractor are responsible for the claim does not relieve Contractor from its separate and distinct obligation to defend under this Section 15. The obligation to defend extends through final judgment, including exhaustion of any appeals. The defense obligation includes an obligation to provide independent counsel if Contractor asserts that liabi lity is caused in whole, or in part, by the negligence or willful misconduct of an indemnified party. (d) The review, acceptance or approval of the Contractor’s work or work product by any indemnified party shall not affect, relieve or reduce the Contractor’s indemnification or defense obligations. This Section 15 survives completion of the services or the termination of this Contract.
The provisions of this Section 15 are not limited by, and do not affect, the provisions of this Contract relating to insur ance.
(e) Acceptance of insurance certificates and endorsements required under this Contract does not relieve Contractor from liability under this Section
15. This Section 15 shall apply whether or not such insurance policies are determined to be applicable to any such damages or claims for damages.
16. Safety. Contractor acknowledges that the City is committed to the highest standards of workplace safety. Contractor shall perform all work hereunder in full compliance with applicable local, state and federal safety requirements including but not limited to Occupational Safety and Health Administration requirements, and shall assume sole and complete 8 of 13
responsibility for the safety of Contractor's employees and any subContractor's employees. If a death, serious personal injury or substantial property damage occurs in connection with the performance of this Contract, Contractor shall immediately notify the City by telephone.
17. Insurance. Insurance requirements are set forth in Exhibit F to this Contract. Contractor shall abide by the insurance requirements set forth in said Exhibit F.
18. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Contract.
19. Compliance with Laws. Contractor shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Contract, including without limitation environmental laws, employment discrimination laws and prevailing wage law s. Compliance under this provision includes compliance wi th all provisions of the Richmond Municipal Code ("Municipal Code"), including Chapters 2.50, 2 .52, 2.56, and 2.60, if applicable.
Contractor acknowledges that under § 2.60.070 of the Municipal Code ("Living Wage Ordinance"), Contractor shall promptly provide to City documents and information verifying its compliance with the Living Wage Ordinance. Also as prescribed in § 2.60.070, Contractor shall notify each of its affected employees with regards to the wages that are required to be paid pursuant to the Living Wage Ordinance.
Contractor shall comply with § 2.28.030 of the Municipal Code, obligating every Contractor or subcontractor under a contract or subcontract with the City for public work or for goods or for services to refrain from discriminatory employment or subcontracting practices on the basis of race, color, sex, sexual orientation, religious creed, national origin or ancestry of any employee, any applicant for employment or any potential subcontractor.
Contractor acknowledges that the City’s Drug Free Workplace Policy, Violence in the Workplace Policy and the Policy Against Workplace Harassment, are available on the City’s website at
http://www.ci.richmond.ca.us/workplacepolicies . Contractor agrees to abide by the terms and conditions of said policies.
20. Limitations upon Subcontracting and Assignment. This Contract binds the heirs, successors, assigns and representatives of Contractor. The Contractor shall not enter into subcontracts for any work contemplated
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under this Contract and shall not assign this Contract, nor any portion hereof or monies due or to become due, without the prior written consent of the City Council or its designee.
Contractor acknowledges that the services which Contractor shall provide under this Contract are unique, personal services which, except as otherwise provided herein, Contractor shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in City's sole and absolute discretion. In the event that City, in writing, approves any assignment or subletting of this Contract or the retention of subcontractors by Contractor, Contractor shall provide to City upon request copies of each and every subcontract contract prior to the execution thereof by Contractor and subcontractor. Any assignment by Contractor of any or all of its rights under this Contract without first obtaining City's prior written consent shall be a default under this Contract.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor (if applicable), or of the interest of any general partner or joint venturer or syndicate member if Contractor is a partnership or joint-venture or syndicate, which shall result in a change of control of Contractor, shall be deemed an assignment. For this purpose, control shall mean fifty percent or more of the voting power or twenty-five percent or more of the assets of the corporation, partnership or joint-venture.
21. Integration. This Contract constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or written agreement; provided, however, that correspondence or documents exchanged between Contractor and City may be used to assist in the interpretation of the Exhibits to this Contract.
22. Modifications and Amendments. This Contract may be modified or amended only by a change order or Contract Amendment executed by both parties and approved as to form by the City Attorney.
23. Conflicting Provisions. In the event of a conflict between these General Conditions and those of any Exhibit or attachment hereto, these General Conditions shall prevail; provided, however, that any Special Conditions as set forth in Exhibit E shall prevail over these General Conditions. In the event of a conflict between the terms and conditions of any two or more Exhibits or attachments hereto, those prepared by City shall prevail over those prepared by the Contractor, and the terms and conditions preferred by the City shall prevail over those preferred by the Contractor.
24. Non-exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Contractor hereunder shall be non-exclusive, and
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City reserves the right to employ other Contractors in connection with the project.
25. Exhibits. All Exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit A which does not pertain to the project description, proposal, scope of services, or method of compensation (as applicable) , or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Contract.
26. Force Majeure. Neither party hereto shall be considered in default in the performance of its obligations hereunder to the extent that the performance of such an obligation is prevented or delayed by reason of acts of God, strikes, boycotts, lock-outs, inability to procure materials not related to the price thereof, failure of power, restrictive governmental laws and regulations enacted after the date of this Contract, riots, civil unrest, acts of terrorism, insurrection, war, declaration of a state or national emergency or other reasons of a like nature not within the reasonable control of such party.
27. Time of the Essence. Time is of the essence of this Contract. Contractor and City agree that any time period set forth in Exhibit A represents their best estimates with respect to completion dates and both Contractor and City acknowledge that departures from the schedule may occur.
Therefore, both Contractor and City will use reasonable efforts to notify one another of changes to the schedule. Contractor shall not be responsible for performance delays caused by others, or delays beyond Contractor's control, and such delays shall extend the times for performance of Contractor's work.
28. Confidentiality. Contractor agrees to comply with, and to require its employees, agents and partners to comply with, all applicable State or Federal statutes or regulations respecting confidentially, including but not limited to, the identity of persons served under this Contract, their records, or services provided them, and assures that:
All applications and records concerning any individual made or kept by Contractor or any public officer or agency in connection with the administration of or relating to services provided under this Contract will be confidential, and will not be open to examination for any purposes not directly connected with the administration of such service.
No person will publish or disclose or permit or cause to be published or disclosed, any list of persons receiving services, except as may be required in the administration of such service.
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29. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Contract shall not be considered "third parties."
30. Governing Law. This Contract shall be construed in accordance with the law of the State of California without regard to principles of conflicts of law.
This Contract is made in Contra Costa County, California, and any action relating to this Contract shall be instituted and prosecuted in the courts of Contra Costa County, California.
31. Nonrenewal. Contractor understands and agrees that there is no representation, implication, or understanding that the services provided by Contractor under this Contract will be purchased or renewed by the City under a new contract following expiration or termination of this Contract, and waives all rights or claims to notice or hearing respecting any failure by City to continue the purchase of all or any failure to continue purchase of all or any such services from Contractor.
32. Claims. Any claim by Contractor against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six months after accrual of the cause of action.
33. Interpretation. This Contract shall be interpreted as if drafted by both parties.
34. Warranty. In the event that any product shall be provided to the City as part of this Contract, Contractor warrants as follows: Contractor possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets any specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s). Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of one hundred and eighty (180) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Contractor, at Contractor's expense, including shipping.
35. Severability. In the event that any of the provisions or portions or applications thereof of this Contract are held to be unenforceable or invalid by any court of competent jurisdiction, City and Contractor shall negotiate an equitable adjustment in the provisions of the Contract with a view
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toward effecting the purpose of this Contract, and the validity and enforceability of the remaining provisions or portions or applications thereof, shall not be affected thereby.
36. Authority. City warrants and represents that the signatory hereto (the Mayor of the City of Richmond or the City Manager) is duly authorized to enter into and execute this Contract on behalf of City. The party signing on behalf of Contractor warrants and represents that he or she is duly authorized to enter into and execute this Contract on behalf of Contractor, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Contract on behalf of Contractor.
37. Waiver. The waiver by City of any breach of any term or provision of this Contract shall not be construed as a waiver of any subsequent breach.
Inspections or approvals, or statements by any officer, agent or employee of the City relating to the Contractor’s performance, or payments therefore, or any combination of these acts, shall not relieve the Contractor’s obligation to fulfill this Contract as prescribed; nor shall the City be thereby stopped from bringing any action for damages or enforcement arising from any failure to comply with any of the terms and conditions of this Contract.
38. Possessory Interest. If this Contract results in the Contractor having possession of, claim to or right to the possession of land or improvements, but does not vest ownership of the land or improvements in the same person, or if this Contract results in the placement of taxable improvements on tax exempt land (Revenue and Taxation Code 107), such interest or improvements may represent a possessory interest subject to property tax, and Contractor may be subject to the payment of property taxes levied on such interest.
39. Performance and Final Acceptance.
Contractor represents that it is experienced, qualified, registered, licensed, equipped, organized and financed to perform the services under this Contract.
Contractor shall perform the services under this Contract with that degree of skill and judgment normally exercised by professional firms performing services of a similar nature in the State of California, and shall be responsible for the professional quality, technical accuracy and coordination of the services it performs under this Contract. In addition to the other rights and remedies which City may have, Contractor shall, at its own expense, correct any services which fail to meet the above standard.
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City shall provide Contractor an opportunity to cure errors and omission which may be disclosed during the review of submittals, with no increase in the authorized Contract Payment Limit. Should Contractor fail to make necessary corrections in a timely manner, such corrections shall be made by the City and the cost thereof shall be charged to Contractor.
If warranted, City shall determine, and Contractor may request such determination, that Contractor has satisfactorily completed performance of this Contract. Upon such determination, City shall issue to Contractor a written Notice of Final Acceptance, after which Contractor shall not incur further costs under this Contract. Contractor shall respond to such Notice of Final Acceptance by executing and submitting to City a Release and Certificate of Final Payment.
40. Survival. The rights and obligations of the parties which by their nature survive termination or completion of the services covered by this Contract shall remain in full force and effect after termination or completion.
City of Richmond - Insurance Requirements:
Professional Services Contractors
In all instances where CONTRACTOR or its representatives will provide professional services to the City of Richmond (City), the City requires the following MINIMUM insurance requirements and limits.
CONTRACTOR shall procure and maintain for the duration of the contract, agreement, or other order for work, services or supplies, 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 and the results of that work by the CONTRACTOR, its agents, representatives, employees or subcontractors.
Minimum coverage is detailed below. Original, signed certificates and original, separate policy endorsements, shall be received and approved by the City before any work may begin.
Minimum Scope of Insurance – the following coverage shall be provided and coverage shall be at least as broad as the following:
1. Workers’ Compensation Insurance as required by the State of California and Employer’s Liability
2. Professional Liability or Errors & Omissions Liability insurance appropriate to the CONTRACTOR’s profession
3. Insurance Services Office Commercial General Liability coverage (ISO Occurrence Form CG 0001)
4. Insurance Services Office Automobile Liability coverage (ISO Form CA 0001, Code 1, Any Auto)
Required Coverage Minimum Limits
Workers’ Compensation Statutory. If CONTRACTOR is self-insured, provide a certificate of Permission to Self-Insure, signed by the Department of Industrial Relations and Self-Insurance, Sacramento, California.
Employers’ Liability $1,000,000 per accident, per employee for bodily injury or disease General Liability
(primary and excess limits
combined)
$2,000,000 per occurrence for bodily injury and property damage.
Includes coverage for bodily injury, personal injury and property damage. If the policy includes a general aggregate, either the general aggregate shall apply separately to this project, service or location or the minimum required aggregate limit shall be twice the per occurrence limit.
Policy shall also include coverage for liability arising out of the use and operation of any City-owned or City-furnished equipment used or operated by the CONTRACTOR, its personnel, agents or subcontractors.
Policy shall be endorsed to name the City of Richmond as an additional insured per the conditions detailed below.
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage.
Policy shall be endorsed to name the City of Richmond as an additional insured per the language detailed below.
Professional Liability or Errors &
Omissions Liability
$1,000,000 per occurrence with a $2,000,000 aggregate for bodily injury and property damage.
Architects and Engineers coverage shall be endorsed to include contractual liability.
Required Policy Conditions
A. M. Best Rating A:VII or Better
Admitted Carrier Policies must be with carriers admitted to do business in California.
Waiver of Subrogation
endorsement
Contractor’s insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract.
SAMPLE Endorsements attached.
Additional Insured Endorsement
Liability insurance coverages, except Professional Liability, Errors and Omissions, or Workers’ Compensation, if included, required for performance of the Contract shall include the City of Richmond, its officers, officials, employees, agents and volunteers as Additional Insureds but only with respect to the CONTRACTOR’s activities to be performed under this Contract.
ISO form CG 1020 (11/85) or its equivalent is required. If the Contractor is supplying their product or providing a service then the endorsement must not exclude products and completed operations City of Richmond - Insurance Requirements:
Professional Services Contractors
coverage. If it does, then CG 20 37 (10/01) is also required. SAMPLE Endorsements are attached.
Primary and Noncontributory
Endorsement
The CONTRACTOR’s insurance coverage must be primary coverage as it pertains to the City, its officers, officials, employees, agents and volunteers.
Any insurance or self insurance maintained by the City is wholly separate from the insurance of the contractor and in no way relieves the CONTRACTOR from its responsibility to provide insurance.
Deductibles and Self-Insured
Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At the option of the City either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City or the CONTRACTOR shall procure a financial guarantee in an amount equal to the deductible or self-insured retention guaranteeing payment of losses and related investigations, claims administration and defense expenses.
Subcontractors
CONTRACTOR
shall include all subcontractors as insured under its policies or shall furnish to the City for review and approval, separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein.
Verification of Coverage
All original certificates and endorsements shall be received and approved by the City before work may begin. The City of Richmond reserves the right to require complete, certified copies of all required insurance policies including endorsements affecting the coverage at any time.
Original insurance certificates and required policy endorsements shall be mailed or delivered to the Designated Project Manager, 1401 Marina Way South, Richmond, CA 94804.
Insurance certificates and endorsements may be faxed to (510) 620-6811. However, original certificates and endorsements mailed to the above address must follow any faxed certificates or endorsements.
Continuous Coverage
CONTRACTOR shall maintain the required insurance for the life of the contract. Should the CONTRACTOR cease to have insurance as required during this time, all work by the CONTRACTOR pursuant to this agreement shall cease
until insurance acceptable to the City is provided. In the event that CONTRACTOR fails to comply with the City’s insurance requirements, the City may take such action as it deems necessary to protect the City’s interests. Such action may include but is not limited to termination of the contract, withholding of payments, or other actions as the City deems appropriate.
If services or the scope of work extend beyond the expiration dates of the required insurance policies initially approved by the City, CONTRACTOR
must provide updated certificates and endorsements indicating that the required coverage, terms and conditions are still in place. Renewal certificates and updated endorsements shall be mailed to the address noted above.
Consistent with Public Policy
The insuring provisions, insofar as they may be judged to be against public policy shall be void and unenforceable only to the minimum extent necessary so that the remaining terms and provisions herein may be consistent with public policy and thus enforceable.
City of Richmond - Insurance Requirements:
Professional Services Contractors
ACORD Certificate of Liability Insurance
Standard Form
ACORDTM CERTIFICATE OF LIABILITY INSURANCE
DATE
(MM/DD/YY)
THIS CERTIFICATE IS ISSUED AS MATTER OF
INFORMATION ONLY AND CONFERS NO RIGHTS UPON
THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES
NOT AMEND, EXTEND OR ALTER THE COVERAGE
AFFORDED BY THE POLICIES BELOW.
PRODUCER
INSURERS AFFORDING COVERAGE
INSURER A:
INSURER B:
INSURER C:
INSURER D:
INSURED
INSURER E:
COVERAGES
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. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INS
R
LTR
TYPE OF INSURANCE POLICY
NUMBER
POLICY EFFECTIVE
DATE (MM/DD/YY)
POLICY
EXPIRATION
DATE (MM/DD/YY)
LIMITS
GENERAL LIABILITY EACH OCCURRENCE $
COMMERCIAL GENERAL LIABILITY FIRE DAMAGE (Any one fire) $ CLAIMS MADE OCCUR MED EXPENSE (Any one person) $
_______________________________ PERSONAL & ADV INJURY $ _______________________________
GENERAL AGGREGATE $
GEN’L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $
POLICY
PRO-
JECT
LOC
AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT
(Ea accident)
$
ANY AUTO $
ALL OWNED AUTOS $
SCHEDULED AUTOS
BODILY INJURY
(Per person) $
HIRED AUTOS $
NON-OWNED AUTOS
BODILY INJURY
(Per accident) $
_______________________________ $
PROPERTY DAMAGE
(Per accident) $
GARAGE LIABILITY AUTO ONLY–EA ACCIDENT $
ANY AUTO EA ACC $
OTHER THAN
AUTO ONLY: AGG $
EXCESS LIABILITY EACH OCCURRENC
OCCUR CLAIMS MADE AGGREGATE
$
DEDUCTIBLE $
RETENTION $
WC STATU-
TORY LIMITS
OTHER
E.L. EACH ACCIDENT $
E.L. DISEASE – EA EMPLOYEE $
WORKERS’ COMPENSATION AND
EMPLOYERS LIABILITY
E.L. DISEASE – POLICY LIMIT $
OTHER
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL/PROVISIONS
CERTIFICATE HOLDER ADDITIONAL INSURED; INSURER LETTER: ____ CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL ______ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES.
AUTHORIZED REPRESENTATIVE
ACORD 25-S (7/97) © ACORD CORPORATION 1988
City of Richmond - Insurance Requirements:
Professional Services Contractors
IMPORTANT
If the certificate holder is an ADDITIONAL IN SURED, the policy(ies) must be endorsed.
A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A stat ement on this certific ate does not confer rights to the certificate holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
City of Richmond - Insurance Requirements:
Professional Services Contractors
SAMPLE Endorsements
Preferred form
Reproduction of Insurance Services Office, Inc. Form
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED—OWNERS, LESSEES OR
CONTRACTORS (FORM B)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
Name of Person or Organization:
(If no entry appears above, information requ ired to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedul e, but only with respect to liability arising out of “your work” for that insured by or for you.
CG 20 10 11 85 Copyright, Insura nce Services Office, Inc., 1982 City of Richmond - Insurance Requirements:
Professional Services Contractors
SAMPLE Endorsements
Acceptable form when combined with CG 20 37 10 01
Reproduction of Insurance Services Office, Inc. Form
POLICY NUMBER: COMMERICAL GENERAL LIABILITY
CG 20 10 10 01
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
AMENDMENT OF LIMITS OF INSURANCE (DESIGNATED PROJECT OR PREMISES)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Designation of Project Or Premises:
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
A. Section II – WHO IS AN INSURED is amended to include as an in sured the person or organization shown in the Schedule but only wi th respect to liability arising out of your ongoing operations performed for the insured.
B. With respect to the insurance afforded to these additional insureds, the following exclusion is added:
1. Exclusions
This insurance does not apply to “bodily injury” or “property damage” occurring after:
(1) All work, including materials, parts or equipment furnished in connection with such work, on the project (other than se rvice, maintenance or repairs) to be performed by or on behalf of the addition al insured(s) at the site of the covered operations has been completed; or
(2) That portion of “your work” out of which the injury or damage arises has been put to its intended use by any person or organization other than contractor or subcontractor engaged in performing oper ations for a principal as part of the same project.
CG 20 10 10 01 Page 1 of 1
ISO Properties, Inc., 2000
City of Richmond - Insurance Requirements:
Professional Services Contractors
SAMPLE Endorsements
Acceptable form when combined with CG 20 10 10 01
Reproduction of Insurance Services Office, Inc. Form
POLICY NUMBER: COMMERICAL GENERAL LIABILITY
CG 20 37 10 01
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – COMPLETED OPERATIONS
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name of Person or Organization:
Location And Description of Completed Operations:
Additional Premium:
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
Section II – WHO IS AN INSURED is amende d to include as an insured the person or organization shown in the Schedule but only with respect to li ability arising out of “your work” at the location designated and desc ribed in the Schedule of this endorsement performed for that insured and included in the “products-completed operations hazard.”
CG 20 37 10 01 Page 1 of 1
Copyright, ISO Properties, Inc., 2000
City of Richmond - Insurance Requirements:
Professional Services Contractors
SAMPLE Endorsement
Waiver of Subrogation – Workers’ Compensation
FOUR STATE COMPENSATION INSURANCE FUND FORMS:
Reproduction of State Compensation
Insurance Fund Form
Certificate of Workers’ Compensation Insurance
STATE P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 94101
COMPENSATION
INSURANCE
FUND CERTIFICATE OF WORKERS’ COMPENSATION INSURANCE
POLICY NUMBER:
CERTIFICATE EXPIRES:
⎡
|
|
⎣
This is to certify that we have issued a valid Workers’ Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated.
This policy is not subject to cancellation by the Fund except upon 30 days’ written notice to the employer.
We will give you 30 days’ advance notice should this policy be canceled prior to its normal expiration.
This certificate of insurance is not an insurance policy and odes not amend, extend or alter the coverage afforded by the polic ies listed herein. Notwithstanding any requireme nt, 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.
PRESIDENT
(Note: following text is typewritten addition to printed form)
THE STATE COMPENSATION INSURANCE FUND WAIVES ANY RIGHT OF SUBROGATION ENDORSEMENT #2570.
AGAINST (ENTITY) ______________________ , ITS OFFICIALS, EMPLOYEES AND VOLUNTEERS BY REASON OF ANY PAYMENT UNDER THIS POLICY.
ENDORSEMENT #0015 ENTITLED ADDITIONAL INSURED EMPLOYER EFFECTIVE IS ATTACHED TO AND FORMS A PART OF THIS POLICY. ADDITIONAL INSURED EMPLOYER: ___________________________
ENDORSEMENT #2065 ENTITLED 30 DAY CANCELLATION NOTICE EFFECTIVE IS ATTACHED TO AND FORMS A PART OF THIS POLICY.
LIABILITY OF THE STATE COMPENSATION INSURANCE FUND IS LIMITED TO ______________ FOR ALL DAMAGES FOR ONE OR MORE CLAIMS RESULTING FROM EACH ACCIDENT OF OCCURRENCE ARISING OUT OF ANY ONE EVENT.
EMPLOYER
City of Richmond - Insurance Requirements:
Professional Services Contractors
SAMPLE Endorsement
Waiver of Subrogation – Liability
Reproduction of Insurance Services Office, Inc. Form
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 24 04 10 93
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY
WAIVER OF TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
OCP LIABILITY COVERAGE PART
SCHEDULE
Name of Person or Organization:
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV - COMMERCIAL GENERAL LIABILITY CONDITIONS) is amended by the addition of the following:
We waive any right of recovery we may have agai nst the person or organization shown I the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or “your work” done under a contract with that person or organization and incl uded in the “products-completed operations hazard.” This waiver applies only to the person or organization shown in the Schedule above.
CG 24 04 10 93 Copyright, Insurance Services Office, Inc., 1992
440 Civic Center Plaza, Richmond, CA 94804-1630
Telephone: (510) 620-6576 Fax: (510) 307-8149 www.richmondrent.org
CITY OF RICHMOND RENT PROGRAM
www.r
DATE: June 19, 2019
TO: Chair Gray and Members of the Rent Board
FROM: Nicolas Traylor, Executive Director
SUBJECT: CONTRACT FOR COLLECTION AGENCY SERVICES
STATEMENT OF THE ISSUE:
As of May 15, 2019, over $782,730 in potential FY 2016-17, FY 2017-18, and FY 2018- 19 Rental Housing Fee revenue owed from an estimated 1,942 Richmond Landlords is outstanding. Staff members are proposing the issuance of a Request for Proposals for Collection Agency Services to solicit proposals from qualified service providers who could assist in the prompt collection of outstanding revenue.
RECOMMENDED ACTION:
DIRECT staff to negotiate and execute a contract with a Collection Services Agency, utilizing a contingency-based payment plan – Rent Program (Nicolas Traylor 620-6564).
FISCAL IMPACT:
Since the Rental Housing Fee is the Rent Program’s sole source of revenue, collection of the Rental Housing Fee is central to the Program’s financial viability. Therefore, while the precise fiscal impact of entering into a contract with a Collection Agency service provider is unknown at this time, the potential positive fiscal impact of improving collection rates for Fiscal Year 2016-17, 2017-18, and 2018-19 Rental Housing Fees could amount to several hundred thousand dollars.
DISCUSSION:
Background
At their Regular Meeting on May 15, 2019, the Rent Board received a presentation from Rent Program staff members concerning the department’s compliance efforts during Fiscal Year 2018-19, specifically with respect to payment of the Rental Housing Fee.
AGENDA REPORT
ITEM H-1
June 19, 2019
Of note, the presentation included statistics indicating that over $782,730 in potential Rental Housing Fee revenue owed from an estimated 1,942 Richmond Landlords is outstanding. The majority of this outstanding revenue ($432,396) is owed from 1,630 Landlords who own one Rental Unit in the City of Richmond.
Given the tremendous amount of staff time necessary to follow up with over 1,500 Landlords of one Rental Unit to conduct collections efforts, staff members are proposing that the Rent Board contract with a Collection Agency to conduct this work.
Request for Proposals for Collection Agency Services
The draft Request for Proposals, contained in Attachment 1 of this report, indicates that the Rent Board is soliciting proposals from qualified firms and agencies to provide collection services for the City of Richmond Rent Board’s Delinquent Landlord Accounts. The Board desires to enter into an agreement for professional services with a qualified firm or agency who can demonstrate competency and experience in providing Collection Services. The Board seeks an experienced and effective Contractor that minimizes Board costs, maximizes the use of available technology, provides excellent customer service, and performs thorough and complete collections.
Eligibility requirements for the proposed service provider are detailed on page 6 of the draft Request for Proposals. The exact range and extent of services is subject to negotiation, but at a minimum must include professional services and dedicated personnel to perform the following scope of services:
1) Agency shall provide collection services for debts owed to the Rent Board for Delinquent Residential Rental Housing Fees.
2) Agency shall designate a manager for the Rent Board’s account who will be the Rent Board’s primary contact with the Agency.
3) The Rent Board shall submit delinquent accounts for collection via hard copy, e- mail, electronic file, or in writing. Agency shall provide acknowledgement within 10 days of account placement via the same method that the account was submitted.
4) The Rent Board shall provide documentation to Agency for each account, including name, any available customer information, last known address, account number, and balance due.
5) Agency shall make a minimum of three written or telephone contacts for each account (unless the account clears sooner) within forty-five (45) days of receipt of account.
ITEM H-1
June 19, 2019
6) Agency shall discuss their recommended use of skip tracing on delinquent accounts. Agency to provide specific tools used to conduct skip tracing.1
7) Agency should indicate whether the Rent Board will have access to the Agency’s database in order to determine the progress of the collection efforts.
8) Agency shall maintain complete records of each account referred by the Rent Board, including all correspondence, documents, account records, transactions and a detailed log of all collection efforts or actions. These records shall be retained for a minimum of three years after termination of collection actions on each account.
9) Agency shall provide the Rent Board with a monthly report on the status of each account including; account number, customer name, the amount received, the charges waived, the balance due and date of last payment, and the actions taken on the account. Agency should immediately advise the Board of any account that is paid in full or deemed uncollectible. If an account is deemed uncollectible, information regarding this determination must be provided to the Board.
10) Agency shall provide to the Board quarterly financial summary reports including totals for receipts, net accounts receivable, total accounts receivable and collection percentage.
11) Agency shall provide to the Board an annual financial summary report as of June 30 (the Rent Board’s fiscal year end) including totals for receipts, net accounts receivable, total accounts receivable and collection percentage. This report should be submitted to the Rent Board no later than July 30th of each year.
12) At any time, all records of the agency pertaining to the Rent Board shall be subject to inspection, review, or audit by the Rent Board or its agent during the contract period and for three (3) years after the termination of the contract.
13) Agency shall guarantee the confidentiality, security and safety of all files, documents and information provided by the Board, except as to disclosure required by federal and state laws and regulations.
14) Agency will exercise its best ethical, prudent, lawful and professional efforts to secure collections on all accounts referred by the Rent Board. Collections activities shall comply with all federal, state and local laws, including but not limited to the Federal Fair Debt Collection Practices Act.
1 According to bountyhunteredu.org, “Skip Tracing” is an industry term used to describe the process of locating a fugitive that can't be found at their place of residence or usual hangouts. “Skip” refers to the person being searched for (derived from the term “to skiptown”) and “tracing” meaning the act of locating the skip.
ITEM H-1
June 19, 2019
15) Agency will process all customer payments in accordance with applicable Payment Card Industry (PCI) security requirements.
16) In accordance with the Fair and Accurate Credit Transaction Act (FACT), the vendor must have an identity theft prevention program in place.
17) Agency shall report all uncollectible accounts to the major credit bureaus.
Reporting must be done in accordance with all federal, state and local laws, including but not limited to, the Fair Debt Collections Practices Act, the Federal Equal Credit Opportunity Act, and the Consumer Credit Protection Act. Agency shall not report accounts to the credit bureaus until the agency has worked the account for forty-five (45) days. At the request of the Rent Board, the Agency shall remove an account notification from all the affected bureaus and provide a copy of that notification to the Board.
18) Agency shall not assign or subcontract any portion of this agreement or transfer or assign any claim, pursuant to this contract, without the written consent of the Rent Board.
19) Agency shall make contacts with delinquent accounts under the name of the agency and not the Rent Board.
20) Agency shall instruct Landlords to submit payments to the Agency and not the Rent Board. The Rent Board shall notify Agency of any payments made to the Rent Board for accounts under collection with the Agency.
21) Agency shall collect and deposit payments from customers and, on no less than a monthly basis, submit a check to the City of Richmond Rent Program for all monies collected, less collection fees, along with a report including the account name and number, amount collected, and collection fees.
22) Any compromise settlement of principal or charges shall be agreed upon in writing (which includes emails) between the Agency and the Rent Board prior to acceptance.
23) Agency may allow for time payment agreements (payment plans) and may enter into time payment agreements with Landlords for any period less than one year without the consent of the Rent Board. Any time payment agreement extending beyond one year from the date of initiation of plan must be agreed upon in writing between the Agency and the Rent Board prior to acceptance.
24) No legal actions shall be taken by the Agency without express written consent of the Rent Board.
25) Agency shall be solely responsible for any and all costs incurred in and associated with the collection of debts referred to it by the Rent Board.
ITEM H-1
June 19, 2019
26) Compensation shall be contingent upon actual collections of debts owed to the Rent Board. Agency may subtract a reasonable fee from the amount of the debt collected and paid to the Rent Board, as a percentage of debt collected with a specified maximum. Agency must identify the fee, how it is determined and the fee must be consistent across all debts collected.
27) The Rent Board may withdraw any accounts without any charge or penalty.
28) The Rent Board reserves the right to terminate the contract at any time by providing thirty days written notice for convenience or cause.
29) Agency shall meet with Rent Board staff upon execution of the contract to discuss all the goals of the relationship, the services to be provided and other topics relevant to performing collections on behalf of the Rent Board.
Furthermore, Agency shall meet with Rent Board staff on an annual basis (or as- needed if issues arise) to discuss all services and how the Agency and Rent Board can work together to further reduce debt owed. The Rent Board will provide overall guidance on the conduct of collection services, as it reflects upon the Rent Board’s policies and reputation. Agency will also provide updates to the Rent Board on changes in federal and state laws related to credit and collections.
Proposed Timeline and Next Steps
Staff propose the following timeline and next steps with regard to the issuance of a Request for Proposals for Collection Agency Services:
Proposed Date Action
Monday, June 24, 2019 Release of RFP
Friday, July 12, 2019, 5:00 PM Last day to submit questions regarding the RFP; responses to questions received by
this date will be posted
at www.richmondrent.org
Friday, July 19, 2019, 12:00 PM Responses to RFP due
Week of July 22, 2019 Panel reviews proposals and submits recommendation(s) to Executive Director;
Executive Director selects desired agency
Week of July 22, 2019 Selected agency is notified
Week of July 29, 2019 Agreement is negotiated and executed
DOCUMENTS ATTACHED:
Attachment 1 – Draft Request for Proposals for Collection Agency Services