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AGENDA ITEM 10 - CONSIDERATION OF CONTRACT FOR COLLECTION AGENCY SERVICESAGENDA ITEM NO. 10 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: July 5, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF CONTRACT FOR COLLECTION AGENCY SERVICES RECOMMENDATION: It is recommended that the City Council: 1. Award the contract for Request for Proposals ("RFP") No. 13-010 for Collection Agency Services to States Recovery Systems, Inc.; 2. Authorize the City Manager to negotiate and execute an agreement with States Recovery Systems, Inc., in substantially the form as attached and in such final form as approved by the City Attorney for Collection Agency Services; and 3. Authorize the City Manager to negotiate and execute future amendments exercising the extension options. BACKGROUND: In May 2017, the City entered into an agreement with CB Merchant Services to provide collection services for unpaid and delinquent accounts for the City. Types of delinquent accounts include administrative citations, graffiti vandalism, code enforcement, returned items, fire false alarms, and payroll over payments. This agreement expired in May 2022, prompting the need to issue a new request for proposals (RFP) seeking professional collection services. DISCUSSION: On April 25, 2022, staff released a request for proposals from qualified vendors to provide collection services for unpaid and delinquent account receivables for the City. A total of nine proposals were opened on May 18, 2022, and evaluated according to the following criteria: Criteria Max Points Completeness of Proposal 20 Relevant Experience and Qualifications of Proposed Project Team 30 Capacity to Perform I30 Proposed Cost 1 20 Max Score 100 Based on the selection criteria, States Recovery Systems, Inc. is recommended as the best value proposal for the City: Vendor CB Merchants Total Average Score 90 Cedars Business Services 95 FCR Collection Services 91 IC System 97 Pacific Credit Services (PCS) 92 Sequoia Financial 95 SherloQ 88 Sierra Outsourcing Solutions (SOS) 93 States Recovery Systems, Inc. 98 Staff proposes authorizing the City Manager to negotiate and execute an agreement with States Recovery Systems, Inc. for an initial term of three (3) years, in substantially the form as attached and in such final form as approved by the City Attorney. The agreement may be extended, contingent upon satisfactory performance of States Recovery Systems and mutual written agreement of the City and States Recovery Systems for up to two (2) additional years. Prepared by: Stephanie Sikkema, Finance Director Fiscal Impact FISCAL IMPACT: All monies paid for this service come from the collected fines. States Recovery Systems, Inc. is proposing a contingency fee of 17% for regular collections and 24% if court action is required. Fees are deducted from the revenue as collected in account no. 110.32.4609. Attachments Attachment No. 1 - Agreement for Collection Services Exhibit A - Consultants Proposal CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1 CITY OF WEST COVINA PROFESSIONAL SERVICES AGREEMENT WITH STATES RECOVERY SYSTEMS, INC. FOR COLLECTION AGENCY SERVICES THIS AGREEMENT is made and entered into as of July 5, 2022 ("Effective Date") by and between the CITY OF WEST COVINA, a municipal corporation ("City"), and States Recovery Systems, Inc., a California corporation ("Consultant"). RECITALS A. City proposes to utilize the services of Consultant as an independent contractor to City for Collection Agency Services; and B. Consultant represents that it has that degree of specialized expertise necessary, and holds all necessary licenses to practice and perform the services herein contemplated; and C. City and Consultant desire to contract for the specific services described in Exhibit "A" and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and D. No official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement. E. Consultant responded to the City's Request for Proposals ("RFP") No. 13-010 for Collection Agency Services dated April 21, 2022, incorporated via this reference as if fully set forth herein, and Consultant's response to the Request for Proposals was a material inducement to the City ultimately entering into this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows: 1.0. SERVICES PROVIDED BY CONSULTANT 1.1. Scope of Services. Consultant shall provide the professional services described in the City's RFP and in Consultant's Proposal, attached hereto as Exhibit "A" and incorporated herein. 1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant's performance of this Agreement. Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. City officers and employees shall not be liable at law or in equity for any claims or damages occurring as a result of failure of the Consultant 1 Form Revised May 2022 States Recovery Systems, Inc. to comply with this section. 1.3. Performance to Satisfaction of Citv. Consultant agrees to perform all the work to the complete satisfaction of the City. Evaluations of the work will be conducted by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to: (a) Meet with Consultant to review the quality of the work and resolve the matters of concern; (b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or (c) Terminate the Agreement as hereinafter set forth. 1.4. Warran . Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers' compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harmless City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys' fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above -mentioned laws, which may be incurred by reason of Consultant's performance under this Agreement. 1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or mental disability, medical condition, genetic information, pregnancy, marital status, sex, gender, gender identity, gender expression, sexual orientation, or military or veteran status, except as permitted pursuant to Section 12940 of the Government Code. 1.6. Non -Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement. 1.7. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 1.8. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required 2 Form Revised May 2022 States Recovery Systems, Inc. by the California Public Records Act (California Government Code Section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in California Government Code Section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the court. 2.0. COMPENSATION AND BILLING 2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "A" (the "Fee Schedule"). 2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant's Proposal unless the City, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. Should the City request in writing additional services that increase the Scope of Services, an additional fee based upon the Consultant's standard hourly rates shall be paid to the Consultant for such additional services. Such increase in additional fees shall be limited to 25% of maximum compensation set forth herein. The City Manager is authorized to approve a Change Order for such additional services. 2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than once a month. Said invoice shall be based on the total of all Consultant's services which have been completed to City's sole satisfaction. City shall pay Consultant's invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as "Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoices. 2.4. Records and Audits. Records of Consultant's services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after the termination or expiration of this Agreement. 3.0. TIME OF PERFORMANCE 3.1. Commencement and Completion of Work. Unless otherwise agreed to by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement. 3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. If a delay beyond the control of the Consultant is encountered, a time extension may be mutually agreed upon in writing by the City and the Consultant. The Consultant shall present 3 Form Revised May 2022 States Recovery Systems, Inc. documentation satisfactory to the City to substantiate any request for a time extension 4.0. TERM AND TERMINATION 4.1. Term. This Agreement shall commence on the Effective Date and continue for a period of 3 years, ending on July 5, 2025, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties. Thereafter, this Agreement may be renewed for a maximum of successive one (1) year terms not to exceed two (2) years. Such renewal will be evidenced by a written Amendment upon written notice of City given to Consultant at any time prior to the expiration date of the Agreement. 4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Consultant. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. If the Consultant defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement. The City also shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement, immediately upon service of written notice of termination on the Consultant, if the latter should: a. Be adjudged a bankrupt; b. Become insolvent or have a receiver of its assets or property appointed because of insolvency; C. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement; e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs. 4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the effective date of the City's written notice of termination, within forty-five (45) days after the 4 Form Revised May 2022 States Recovery Systems, Inc. effective date of the notice of termination or the final invoice of the Consultant, whichever occurs last. Compensation for work in progress shall be prorated based on the percentage of work completed as of the effective date of termination in accordance with the fees set forth herein. 4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of the effective date of the notice of termination, at no cost to City. 5.0. INSURANCE 5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company authorized to do business in California, with a current A.M. Best's rating of no less than A:VII, and approved by City: (a) Broad -form commercial general liability, including premises -operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit. (b) Business automobile liability for owned vehicles, hired, and non -owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits, per accident for bodily injury and property damage. (c) Workers' compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Consultant agrees to waive, and to obtain endorsements from its workers' compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers' compensation insurance policies. By execution of this Agreement, the Consultant certifies as follows: I am aware of, and will comply Code, requiring every employer Workers' Compensation or to commencing any of the work. with, Section 3700 of the Labor to be insured against liability of undertake self-insurance before The Consultant shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this 5 Form Revised May 2022 States Recovery Systems, Inc. Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the consultant to comply with this section. (d) Professional errors and omissions ("E&O") liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence or claim, and Two Million Dollars ($2,000,000.00) aggregate. Architects' and engineers' coverage shall be endorsed to include contractual liability. If the policy is written as a "claims made" policy, the retroactivity date shall be prior to the start of the work set forth herein. Consultant shall obtain and maintain said E&O liability insurance during the life of this Agreement and for five (5) years after completion of the work hereunder. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a retroactive date prior to the effective date of this Agreement, Consultant shall purchase "extended reporting" coverage for a minimum of five (5) years after completion of the work. If the Consultant maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 5.2. Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions: (a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant. (b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Consultant's insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy. (d) Waiver of Subrogation: Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. 6 Form Revised May 2022 States Recovery Systems, Inc. (e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers. (f) Coverage Applies Separately: The Consultant's insurance 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. 5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. 5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. 5.5. Non -limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement. 6.0. GENERAL PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification. 6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement. Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement. 6.3. Key Personnel. It is the intent of both parties to this Agreement that Consultant shall make available the professional services of Annette Feliciani and Megan Delaney, who shall coordinate directly with City. Any substitution of key personnel must be approved in advance in writing by City's Representative. 6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such 7 Form Revised May 2022 States Recovery Systems, Inc. communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; b) at the time of transmission if such communication is sent by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. IF TO CONSULTANT: IF TO CITY: States Recovery Systems, Inc. City of West Covina 2491 Sunrise Blvd. 444 West Garvey Ave. South Rancho Cordova, CA 95670 West Covina, CA 91790 Tel: (916) 631-7085 x225 Tel: (626) 939-8463 Email: Cindy.Yaklinostatesrecoverv.com Email: ssikkemaOwestcovina.org Attn: Cynthia A. Yaklin, President Attn: Finance Director 6.5. Attorneys' Fees. If litigation is brought by any party in connection with this Agreement against another party, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. 6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California. 6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant's interest in this Agreement without City's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City's consent, no subletting or assignment shall release Consultant of Consultant's obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement. 6.8. Indemnification and Hold Harmless. Consultant agrees to defend, with counsel of City's choosing, indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Consultant's sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, 8 Form Revised May 2022 States Recovery Systems, Inc. complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Consultant's Proposal, which shall be of no force and effect. 6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or indemnification arising under this paragraph. 6.10. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 6.11. Cooperation. In the event any claim or action is brought against City relating to Consultant's performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require. 6.12. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to 9 Form Revised May 2022 States Recovery Systems, Inc. Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from City's use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other related items as requested by City or its authorized representative, at no additional cost to the City. Consultant or Consultant's agents shall execute such documents as may be necessary from time to time to confirm City's ownership of the copyright in such documents. 6.13. Electronic Safeguards. Consultant shall identify reasonably foreseeable internal and external risks to the privacy and security of personal information that could result in the unauthorized disclosure, misuse, alteration, destruction or other compromise of the information. Consultant shall regularly assess the sufficiency of any safeguards and information security awareness training in place to control reasonably foreseeable internal and external risks, and evaluate and adjust those safeguards in light of the assessment. 6.14. Economic Interest Statement. Consultant hereby acknowledges that pursuant to Government Code Section 87300 and the Conflict of Interest Code adopted by City, Consultant is designated in said Conflict of Interest Code and is therefore required to file an Economic Interest Statement (Form 700) with the City Clerk, for each employee providing advice under this Agreement, prior to the commencement of work, unless waived by the City Manager. 6.15. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act of 1974 (Government Code Section 81000, et seq.) and Government Code Sections 1090-1092. Consultant covenants that none of Consultant's officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the services hereunder, including in any manner in violation of the Political Reform Act. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be used by Consultant as an officer, employee, agent, or subconsultant. Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement. 6.16. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect. 6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced. 6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 10 Form Revised May 2022 States Recovery Systems, Inc. 6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement. 6.20. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 6.21. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 6.22. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement. 6.23. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 6.24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations. 6.25. Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures. 6.26. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. 6.27. Taxpayer Identification Number. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W9, as issued by the Internal 11 Form Revised May 2022 States Recovery Systems, Inc. Revenue Service. [SIGNATURE PAGE FOLLOWS.] 12 Form Revised May 2022 States Recovery Systems, Inc. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written. CITY OF WEST COVINA, A municipal corporation Date: David Carmany City Manager CONSULTANT Date: Name Title ATTEST: Lisa Sherrick Assistant City Clerk APPROVED AS TO FORM: Date: Thomas P. Duarte City Attorney APPROVED AS TO INSURANCE: Date: Helen Tran Human Resources and Risk Management Director 13 Form Revised May 2022 States Recovery Systems, Inc. EXHIBIT A CONSULTANT'S PROPOSAL EXHIBIT A Proposal Due: May 18, 2022, 2:00 p.m. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 Response to Request for Proposal For Collection Agency Services Office of the City Clerk City of West Covina I_i�� 1 •�i"F1ii:%� C7 � �°�I E��171 [17 1444 W. Garvey Avenue S. West Covina, CA 91790 A May 11, 2022 Office of the City Clerk City of West Covina Attn: Finance — RFP#13-010 1444 W. Garvey Avenue S. West Covina, CA 91790 Re: Response to Request for Proposal for Collection Agency Services #13-010 States Recovery Systems, Inc. is pleased to submit our qualifications to the City of West Covina in response to Request for Proposal for Collection Services The contract can be executed without exceptions. We thank you in advance for your time in review. States Recovery Systems, Inc. is a well -respected receivables management collection service company with the industry experience and financial resources to focus the best people, systems, and capital aimed at cost-effective debt collection services that minimizes expenses to our clients. The person authorized to contractually bind States Recovery Systems, Inc. for any proposal submitted in response to this RFP is: Cynthia A. Yaklin, President States Recovery Systems, Inc. 2491 Sunrise Blvd, Rancho Cordova, CA 95670 Email: Cindy.Yaklin(a)statesrecovery.com Phone: (800) 211-1435 or (916) 631-7085 Extension 225 States Recovery Systems, Inc.'s specialized team delivers outstanding returns while providing unparalleled customer service. Our collection program is tailored to fulfill the requirements of our municipal clients and provide efficient and cost-effective debt collection services. The collection methodology employed will yield superior recovery for the City of West Covina while preserving the dignity and respect of the citizens it serves. Our robust skip tracing system is one of the best in the industry and draws on public and proprietary data from thousands of proven sources. Our collection system is timely, thorough and persistent while maintaining the highest level of compliance. We are qualified to meet the objectives outlined int the scope of work and committed to work with the City of West Covina to implement a collection solution that will exceed expectations and deliver results. Thank you, CAC California Association 01 Colkclms. Inr' Cynthia A. Yaklin President Table of Contents CoverLetter.................................................................................. 2 Project Summary Section..............................................................4 Relevant Experience and Qualifications ....................................... 9 Capacity to Perform....................................................................22 Fee Schedule (Attachment D).....................................................52 Excluded or Subcontracted Services..........................................54 AttachmentA............................................................................... 56 AttachmentB...............................................................................58 AttachmentC.............................................................................. 60 Exhibit 1 — Sample Reports......................................................... 63 Exhibit 2 — Sample Letters..........................................................72 Proposal Due: May 18, 2022, 2:00 p.m. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 Project Summary Section Protect Summary Section States Recovery Systems, Inc. is located in the State of California and considers all municipalities in California a local client. Our staff collects money from consumers in most California zip codes and has full knowledge the City of West Covina is located in the San Gabriel Valley, 20 miles east of downtown Los Angeles and 15 miles north of Orange County. Incorporated as a general law city in 1923, the city operates under the council/manager form of government. We now know your beautiful City is 16 square miles flourished with walnut groves and orange groves for many decades and has developed into a commercial and residential community, with a population currently estimated at about 110,200 residents. All of whom will be treated with dignity and respect at all times. States Recovery Systems, Inc. can physically N,m d, „ Inrerrala Airport �,O r n r meet with the City of West Covina anytime. onto nOSe v Services States Recovery Systems, Inc. has read the background and understands the city offers sixteen parks, four community centers, a Sports Complex, and a county operated library. Like our other municipal clients, the City of West Covina provides a full range of services to its citizens, including police, fire and emergency medical; construction and maintenance of streets, traffic signalization and other infrastructure; planning and building safety; and social, recreational and cultural activities and events. ao pane San kandsco , Sano ose mvooauonai Nao�a Bann n, mon'sray CALIFORNIA m ar an,u'nonal Park „�� ran vaeonarrarest Nan Los far, It Oni_spn ` var�onalroran NationalFoF =anle�errare ,1;+;-1,. ,I too west arvey G o, 4n9elec� Avenue SoutM1 Interna,Los Alrpon Irvine States Recovery Systems, Inc. also understands the City of West Covina contracts out building and safety services, engineering, planning and business licensing. Additionally, water utilities and solid services are provided and billed externally. States Recovery Systems, Inc. understands the City is financially accountable for the Successor Agency to the former Redevelopment Agency of the City of West Covina, a financing authority, and a housing authority, which are combined within the City's financial statements. Budaet States Recovery Systems, Inc. understands the City's fiscal year begins on July 1 and ends on June 30. The City's operating budget for FY 2021-22 is approximately $158 million for all funds combined. It has a Capital Improvement Budget of approximately $37 million. In FY 2021-22 the City has a total of 313.5 authorized positions. States Recovery Systems, Inc. understands and is prepared for the City of West Covina to assign cases for collection on an as -needed basis after the City of West Covina has, for some time, attempted to collect the delinquent monies. States recovery Systems, Inc. understands the City of West Covina will then cease its efforts to collect the delinquent accounts and will assign the case to States Recovery Systems, Inc. for an initial minimum period of 90-days. States Recovery Systems, Inc. is qualified and throughout this proposal submits a detailed operational plan which demonstrates understanding of, and capability to assume responsibility for, collecting delinquent revenue for the City of West Covina. Our plan provides all details of the methods to be used to maximize successful collections, including initiating and continuing collection attempts within the guidelines set forth by Federal and State regulations regarding fair debt collection practices. States Recovery Systems, Inc. has a complete understanding of the City of West Covina, the work to be done, and the objective to be accomplished including all sections of the Scope of Service. States Recovery Systems, Inc. agrees to be responsible for the following: 1. States Recovery Systems, Inc. will conduct all activities in an ethical manner and in compliance with all applicable Federal, State and local laws, codes and regulations. 2. States Recovery Systems, Inc. will address only those accounts which the City assigns. 3. When directed by the City, States Recovery Systems, Inc. will cease work on and return to the City all documentation pertaining to any account that may have been previously assigned. 4. States Recovery Systems, Inc. will formally demand for payment of each collection item and seek payment arrangement satisfactory to the City. 5. States Recovery Systems, Inc. will ensure funds collected on the City's behalf are placed in a secured account. Funds collected shall be deposited in a timely manner. Payments remitted to the City shall be completed in a timely manner, and include a report ledger showing the amount paid, at least once per month. 6. Pertaining to each account, States Recovery Systems, Inc. will deliver to the City at least once per month a report detailing the current status of the account, including a brief recap of the successful Proposer's efforts to collect the funds. 7. States Recovery Systems, Inc. will not initiate any legal action pertaining to any account without the prior written permission of the City. 8. No compromise settlement shall be accepted by States Recovery Systems, Inc. without City's written consent. 9. States Recovery Systems, Inc. will ensure all records pertaining to any current or past accounts assigned are available for audit by City or its authorized representative at any time. 10. States Recovery Systems, Inc. will provide electronic media access to the unpaid accounts. 11. States Recovery Systems, Inc. will guarantee the confidentiality, security, and safety of all files, documents, computer files, etc. 12. States Recovery Systems, Inc. will be responsible for maintaining accurate records of all correspondence, documents, accounting records, transactions and other relative evidence. These records shall remain on file for a period of at least seven (7) years. States Recovery Systems, Inc. will ensure that all records will be made available to the City for review upon request. 13. States Recovery Systems, Inc. agrees that no work shall be subcontracted without the prior written consent of the City. 14. States Recovery Systems, Inc. will conduct skip tracing on delinquent accounts. Skip tracing is described in detail on page 40 as part of our collection strategy. 15. States Recovery Systems, Inc. will submit status reports monthly and an annual report (on a fiscal year) through June 30, reflecting the activity for the previous fiscal year. These reports shall include data for each account detailing the value of the current debt, money received, charges waived, interest charged, balance due and date of last payment. States Recovery Systems, Inc. understands a financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as receipts, net accounts receivable, total accounts receivable, and collection percentage. In addition, States Recovery Systems, Inc. will provide an aging report in summary and in detail. States Recovery Systems, Inc. has provided copies of all available reports and they are included in the proposal. Please see Exhibit 1. 16. States Recovery Systems, Inc. agrees to make a minimum of two written or telephone contacts for each account (unless the account clears sooner) within sixty (60) days of receipt of account. States Recovery Systems, Inc. has provided in the proposal detailed steps that will be taken once account is received from the City and number of contacts and procedures that will be taken. Please see contact strategy on page 46 of this proposal. 17. States Recovery Systems, Inc. understands that it will not have full rights to the accounts. All information provided to States Recovery Systems, Inc. will be used solely for the purpose of collection and may not be provided to any outside agency, business, or person without the consent of the City. 18.States Recovery Systems, Inc. will accept automated or manual transfer of delinquent payment information from the City or other vendor's database. It is expected and States Recovery Systems, Inc. agrees to work at no additional cost, with the City and its software to ensure accurate and timely transmission of data. States Recovery Systems, Inc. will obtain a city of West Covina Business License upon contract award. Proposal Due: Relevant Experience and Qualifications May 18, 2022, 2:00 p.m. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 RELEVANT EXPERIENCE AND QUALIFICATIONS 1. General information about the agency, including the size of the organization, location of offices, years in business, organization chart, state of incorporation, name of owners and principal parties, number and position titles of staff. Information regarding any collection associations of which the agency and its staff are members should be included. States Recovery Systems, Inc. was established, owned and operated by the Yaklin family in 1988 and has assisted various Cities in the recovery of municipal receivable accounts for over twenty-five (25) years. States Recovery Systems, Inc. is a Small Business Enterprise certified through the State of California, Department of General Services. Our reputation is strong and our consultative approach in servicing our clients sets us apart from our competition. Our primary source of business revenue stems solely from collecting bad debt. States Recovery Systems, Inc.'s owns our 2,300 sq. ft., technologically advanced, state- of-the-art corporate collection center designed specifically for the debt collection agency service industry. States Recovery Systems has been in business for 34 years. We are capable of expanding to 56 employees in our current location. States Recovery Systems, Inc. is a California Corporation headquartered at 2491 Sunrise Boulevard, Rancho Cordova, California 95670. States Recovery Systems, Inc. is 100% Women -Owned by Cynthia A. Yaklin. Add number and position titles of staff Associations include: ACA International, California Association of Collectors a n d National Federation of Independent Business. States Recovery Systems, Inc. cyntma v Yaklin Organization Chart Teaser Greg layerslayersAmundson o-m ror D Opera[rons Busln 11an Derebpme and Position Titles of Staff Dotlm Caesars,Number I Owner Stefani Tolmn Codsuon ff.meg Opector of Business Development Directors Collection Manager Man Raiddin Kam I Assistant Collection Manager lu—I."—c"n Legal Collector n°"°8ef Ml 6 Senior Collectors KeKn Spaulding Allson Plumer Amy lauluse Lasnonde Lanes Carrie Taomas btl Tice Carmen Lopez Smror Coiknor Senor Callmm Senlor Colbrror Lsol Call— Senlor Collx[or Senor Callenor Senlor Colkr<or 2. Qualifications of staff proposed for the assignment, their position 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. CYNTHIA A. YAKLIN, Owner/President E-mail: Cindy.Yaklin(a�.statesrecovery.com Phone: 916-631-7085 x225 Responsibility on this project: Project Manager and primary contact for City of West Covina for implementation and onboarding. Ms. Yaklin is the owner and President of States Recovery Systems, Inc. has over 25 years of progressive collection and managerial experience in the industry. She purchased the agency in 2018 after serving as the Senior Vice President for over ten years. She has extensive experience in managing third party collections, litigation, project management, process development, budgeting and operational analysis. Ms. Yaklin is also responsible for the creation and maintenance of the Information Security Policy and Internal Compliance Policy for the corporation. She has transformed the company by fostering a team environment and leading by example. Her vision has sparked recent growth in all facets of States Recovery Systems. Ms. Yaklin has been serving as the Legislative Chair for the California Association of Collectors (CAC) for the past 10 years where she is responsible for reviewing pending legislation that directly impacts the collection industry and has received multiple industry awards for her continued service to the industry. She will be serving as the CAC Past -President representing over 150 collection agencies within California beginning in October 2021. Cindy also sits on the DFPI Advisory Committee. TOM AMUNDSON, Vice -President of Operations E-mail: Tom.Amundson(a)statesrecovery.com Phone: 916-631-7085 x126 Responsibility on this project: Project Manager and primary contact for City of West Covina for operations, data processing and collection floor management. Mr. Amundson has over 15 years of collection industry experience and 12 years of tenure with States Recovery Systems, Inc. As the VP of Operations, Mr. Amundson drives portfolio performance, project management, dialer and scoring strategies and operational analysis. Mr. Amundson has been instrumental in the implementation and management of our government and municipal portfolios and the specialized collection needs of our clients. Mr. Amundson is an integral part of our management team and is responsible for overall management and successful performance of the organization. Tom has experience in sales and client services which makes him versatile and valuable to the States Recovery Systems, Inc. team. He possesses fantastic people skills which results in high retention of our collection staff and superior performance for our clientele. GREGORY MYERS, Director of Business Development E-mail: Greg. Myers(a�statesrecovery.com Phone: 916-631-7085 x212 Responsibility on this project: Client services liaison assisting City of West Covina staff on assigned accounts. Mr. Myers has over 36 years of experience in both public and private sector debt collection operations. Throughout his tenure he has managed production of first -party and third -party accounts receivable and various departments, such as data entry, payment posting, sales and marketing, clerical, legal, compliance and collection floor/call center management. Legal collections include preparing, filing, serving law suits. Execution of judgments. Played an integral role in the professional development of legal and clerical staff along with collectors by providing mentorship in compliance, first and third -party municipal debt collection, and customer service best practices. Attained high levels of unpaid account resolution by guiding collectors through customized communication strategies used in phone and in writing. Helped clients challenged with attaining financial health to find funds to resolve 10,000+ individual past due accounts per month. Enhanced the effectiveness of company operations by streamlining file management and data analysis reporting processes central to evaluating successes and areas of improvement against annual objectives. DORIAN COLBERT, Collection Manager E-mail: Dorian. Col bert(a)statesrecovery.com Phone: 916-631-7085 x142 Responsibility on this project: Collection Manager overseeing all collection staff working City of West Covina. Mr. Colbert has over 16 years of collection industry experience and joined the States Recovery Systems, Inc. team as our Collection Manager in 2019. Mr. Colbert drives the day-to-day production of the collection team. His expertise as a training specialist and a strong background in compliance and quality assurance ensures consumer accounts are handled in conjunction with client expectations and in adherence to local, state and federal guidelines. Mr. Colbert is responsible for the internal collection production, dialer analysis and is part of our complaint and dispute resolution team. RAJESH RAM, Assistant Collection Supervisor E-mail: Raiesh.Ram(astatesrecoverv.com Phone: 916-631-7085 x128 Responsibility on this project: Assistant Collection Manager overseeing all collection staff working City of West Covina. Mr. Ram has over 25 years of tenure with SRS and is an integral member of the States Recovery Systems, Inc. team. Rajesh has been the team leader for our municipal collection team for over 10 years and has worked directly with third -party billing companies on EMS portfolios for the Sacramento Metropolitan Fire District and the City of Oceanside. He provides specialized training to team members and aids the staff through oversight of collection calls and communications with staff. He reviews billing statements and aids the team in resolving and overcoming objections to repayment of the obligations. Mr. Ram's dedication to the industry he serves is apparent in the quality and integrity of his work and proven results. Rajesh is tri-lingual and can be called upon to assist with our consumers who speak Hindi and Punjabi Keith Spalding - Municipal collection specialist for over 10 years and has worked directly on third -party collections for the City of Redding, City of Hesperia, City of Fresno, City of Rocklyn, City of Yuba City, Alameda Municipal Power and the City of Oceanside. He has been Specifically trained to collect invoices for: Traffic Citations, Business Licenses, Water Sewer and Power Utilities, City Code Violations, Animal Control Property Damage Harbor Fees, False Alarms, NSF Checks, Ambulance and other miscellaneous debts. Carmen Lopez -Municipal collection specialist for over 10 years and has worked directly on third -party collections for the City of Redding, City of Hesperia, City of Fresno, City of Rocklin, City of Yuba City, Alameda Municipal Power and the City of Oceanside. She has been Specifically trained to collect invoices for: Traffic Citations, Business Licenses, Water Sewer and Power Utilities, City Code Violations, Animal Control Property Damage Harbor Fees, False Alarms, NSF Checks, Ambulance and other miscellaneous debts. Carmen is bi-lingual and called upon to assist with our customers who speak Spanish. Emilyne Laulusa - Municipal collection specialist for over 10 years and has worked directly on third -party collections for the City of Redding, City of Hesperia, City of Fresno, City of Rocklin, City of Yuba City, Alameda Municipal Power and the City of Oceanside. She has been Specifically trained to collect invoices for: Traffic Citations, Business Licenses, Water Sewer and Power Utilities, City Code Violations, Animal Control Property Damage Harbor Fees, False Alarms, NSF Checks, Ambulance and other miscellaneous debts. Alison Palmer - Municipal collection specialist for over 10 years and has worked directly on third -party collections for the City of Redding, City of Hesperia, City of Fresno, City of Rocklin, City of Yuba City, Alameda Municipal Power and the City of Oceanside. She has been Specifically trained to collect invoices for: Traffic Citations, Business Licenses, Water Sewer and Power Utilities, City Code Violations, Animal Control Property Damage Harbor Fees, False Alarms, NSF Checks, Ambulance and other miscellaneous debts. Carrie Woods - Municipal collection specialist for over 10 years and has worked directly on third -party collections for the City of Redding, City of Hesperia, City of Fresno, City of Rocklin, City of Yuba City, Alameda Municipal Power and the City of Oceanside. She has been Specifically trained to collect invoices for: Traffic Citations, Business Licenses, Water Sewer and Power Utilities, City Code Violations, Animal Control Property Damage Harbor Fees, False Alarms, NSF Checks, Ambulance and other miscellaneous debts. Lori Tice - Municipal collection specialist for over 10 years and has worked directly on third -party collections for the City of Redding, City of Hesperia, City of Fresno, City of Rocklin, City of Yuba City, Alameda Municipal Power and the City of Oceanside. She has been Specifically trained to collect invoices for: Traffic Citations, Business Licenses, Water Sewer and Power Utilities, City Code Violations, Animal Control Property Damage Harbor Fees, False Alarms, NSF Checks, Ambulance and other miscellaneous debts. Training and Supervision All collection staff is required, through our Collection Agent Training Program, to complete our full training program which consists of five (5) program modules. The collection training program is conducted over the course of a full week and includes formal classroom training, systems training, interactive training and hands-on training. Module 2 is dedicated to and encompasses all Collection Laws and Regulations and covers a full day of formal classroom training. Each representative must successfully complete and pass our FDPCA test to receive certification at the end of our training program. The first communication with the consumer is often the most important step in resolution of an unpaid obligation and States Recovery Systems, Inc. and our program is designed to set the standard of professional debt collection. Collectors are taught our "8 Steps to a Successful Collections Call", overcoming objections, money sources, effective communication with third -parties, right -party contacts as well as call simulations to put the skills to the test in real world scenarios. Trainees are taught the importance of respect, credibility, ethics and achievement while collecting debts. Each communication from our representatives focuses on key elements in the call, proper identification of the representative and the company, call recording and FDCPA disclosures, properly identifying the right party responsible for the account, and account resolution. Completing the training program provides the knowledge needed to be successful and compliant within the debt collection profession. Quality Assurance States Recovery Systems, Inc. maintains a Quality Assurance Program which is monitored by our Compliance Officer and through the assistance of the Operations Manager. We have deployed a state-of-the-art call monitoring system that records every phone call, incoming and outgoing, within our phone system. The conversations and call production reports are monitored and reviewed by management on a daily basis to ensure a high level of customer service and compliance. This minimizes, if not fully eliminates, debtor complaints and provides the security that debtor's information is protected and that our staff is treating them with dignity and respect at all times. A minimum of two (2) hours of live monitoring is conducted daily by various members of the management team. Recorded phone calls are monitored randomly. Samples of these recorded phone calls are reviewed by the management team on a weekly basis. The findings of the review session are communicated to the collection staff, and include all positive observations, in addition to any areas needing improvement. Continuing education sessions are conducted at least twice per month in small groups and training topics vary based on defined criteria. FDCPA and Regulation F education and testing is performed semi-annually along with training sessions on FCRA, TCPA, ECOA, Service Members Civil Relief Act, UDAAP and REG E. Additional training sessions are performed in conjunction with our monthly staff meetings based on current trends in the industry. All collection staff complete a minimum of 4-6 hours per month of continuing education regarding compliance and collection laws. 3. List of other cities utilizing your collection services over the past 5 years. • City of Fresno • City of Alameda, Alameda Municipal Power • City of Oceanside • City of Redding • City of Yuba City • City of Rocklin • City of Hesperia • Amador Water District States Recovery Systems, Inc. offers the following municipal references: Company Name: Location of the Company: Name of Contact Person: Contact Person's Email Address Phone number: Company Name: Location of the Company: Name of Contact Person: Contact Person's Email Address Phone number: Company Name: Location of the Company: Name of Contact Person: Contact Person's Email Address Phone number: City of Redding Utility 777 Cypress Avenue, Floor 3 Redding, California 94520 Jodi McMurtrey jmcmurtrey@cityofredding.org (530)339-7271 City of Oceanside 300 N. Coast Highway Oceanside, California 92054 Donna Trevizo dtrevizo@ci.oceanside.ca.us (760)435-3840 Alameda Municipal Power 2000 Grand Street Alameda, California 94501 Traci Smith smitht@alamedamp.com (510)748-3927 4. A statement as to the ability of the Proposer to make collections in all 50 states and the ability to file reports with all three national credit bureaus. Collections in all 50 states States Recovery Systems, Inc. is licensed and has the ability to make collections in all 50 states. Credit Reporting Accounts are electronically reported on qualifying accounts to the 3 national credit bureaus, Experian, TransUnion and Equifax, after 50 days of assignment. Credit reporting updates are transmitted bi-monthly for accuracy and timeliness of reporting bankruptcy, disputed accounts, payment arrangements and paid in full inventory. Note: The Consumer Financial Protection Bureau (CFPB) issued a new rule that limits when a debt collector can report information about a debt to credit reporting agencies. As of December 1, 2021, an amendment to Regulation F, says that a debt collector can't report a debt to the three major credit reporting agencies, Equifax, Experian, and TransUnion, before first contacting the consumer. The debt collector must: speak to the consumer in person or by phone or mail a letter or send an electronic message, like an email, about the debt to the consumer and then wait a "reasonable period of time" (at least 14 consecutive days) to see if a notice of undeliverability comes back. If the collector gets a notice that the letter or message was undeliverable, the collector can't report the debt to the credit reporting agencies unless it achieves communication as detailed above. (12 C.F.R. § 1006.30(a)(1) and Official Interpretation of 30(a)(1)). 5. Provide sample copies of the current monthly statement of accounts to your clients. See sample monthly statement of accounts in Exhibit 1. 6. Provide sample copies of the current Annual Recap of Monthly Collection Activity. See sample monthly statement of accounts in Exhibit 1. 7. Provide sample letters to be sent to delin uent accounts. See sample letters to be sent to delinquent accounts in Exhibit 2. 8. A description of your collection methodology, how many agents you will use in our collection effort, the geographical area you service, and an outline of your collection success rate. States Recovery Systems, Inc. and our local California employees and professional collection staff thrive in a competitive environment. In all markets, our agency ranks highest among our competitors. We are agile in our business operations and work efficiently to adjust, modify and improve processes to increase recovery. Our team analyzes portfolios of accounts and we have the ability to identify collection strategies that are proven to deliver results based on demographic, age of receivable, historical portfolio performance and previous collection projects. Our team has vast experience with working in projects of all scale and scope. Our agency completed the AIM Certification process for automated file transmissions and has been working with the University since 2009. We service and average of 3,000 accounts monthly with an average balance of over $1,800. All file transfer processes performed over a secure SFTP connection are automated on a daily basis. Files inbound and outbound have an added layer of encryption through .ppk key sharing and certificates for connection authorization over the secure network. States Recovery Systems, Inc. will assign six (6) collectors to work City of West Covina assigned accounts. Collection accounts are worked within a pooled environment but within our government collection division. States Recovery Systems, Inc. has successfully managed collection services for several City's and our success rate out performs our competitor. Depending on the information and age off accounts assigned, our clients receive a success rate of up to 39.6%. This is 39.6% is one of our city references and our performance can be verified. 9. Provide a schedule of fees for your service. Provide the cost, if any, to the City and list all services you provide for those costs in each of the following categories: a. Letter service b. Regular collection c. Court action, if required d. Transfer of account to an out of area agency for collection e. Any other costs Involved in the collection process a. Letter Service - Assessed Percentage: 0% States Recovery Systems, Inc. offers a hand off letter letting the consumer know the accounts is going to be turned over to States Recovery Systems, Inc. if not paid in a pre -determined amount of time. (Currently 2 weeks-Negotialble) Samples of client hand off letters can be found in Exhibit 2. b. Regular Collection - Assessed Percentage: 17% bl . Payments collected using Franchise Tax Board offset program 12% All collection Agency Services described in this proposal. c. Court Action - Assessed Percentage: 24% States Recovery Systems, Inc. has an internal legal department and has vast experience in litigating collection cases in all 58 counties in California. Our complex case management program in California is different in each county and States Recovery Systems, Inc. works diligently through our business community and state industry trade association to stay abreast of any proposed changes that may impact the Courts, or the Sheriff Departments within our state which may impact the legal process. All cases are managed internally and on -site within our legal department with the assistance of our primary attorney, on -staff paralegal and legal collection team. Close oversight is managed through the department to ensure timelines and calendared hearings are coordinated with our contracted legal counsel. The role of the Legal Department Manager is to ensure that all cases are reviewed prior to recommendation to the client for legal action and a full assessment of potential assets is performed prior to suit being commenced. We evaluate risk prior to litigation to prevent additional legal costs for the Agency or any possible exposure for our client. Specifically, we evaluate the probability of collection of the judgment once obtained, risk of bankruptcy filing by the defendant once suit is filed, and a thorough evaluation of any disputed issues on each case prior to filing. All documentation for each case file is reviewed by the Legal Department Manager to ensure accuracy of balances assigned, dates of delinquency, ensuring all responsible parties on the account are named and have required notification prior to filing. Litigation is final step in the collection process if all other voluntary collection efforts have been exhausted and recovery still has not been achieved. States Recovery Systems, Inc. will consult with the City of West Covina collection department and legal counsel to coordinate a legal strategy, and review pleadings for prior cases as part of onboarding process to ensure a transparency in the adopted strategy. States Recovery Systems, Inc. will only initiate filing of new actions with the express written consent of the City of West Covina. Our office would typically recommend litigation, when warranted, on accounts with a high degree of collectability. Most agencies will assign accounts out to legal firms or attorneys for litigation, however, States Recovery Systems, Inc. manages the entire legal inventory on -site and through our dedicated department. In addition to the expertise in managing new cases filed in Superior Court within California, States Recovery Systems, Inc. also offers post -judgment execution of existing judgments obtained by City of West Covina. Our office performs asset investigations and skip -tracing on all assigned judgments within our internal legal department and can manage the renewal process for judgments obtained in the prior contract period or from other legal offices currently or previously contracted with the City. The primary objective is to increase return and recovery of judgments while utilizing all collection remedies as assets are developed. This includes, but is not limited to, abstracts, UCC filings, bank levies and wage garnishments. d. Transfer of account to an out of area agency for collection 0% States Recovery Systems, Inc. will never transfer an account to an out of area agency for collection. All collection activity is performed by our on -site collection staff. e. Any other costs involved in the collection process: 0% b1.States Recovery Systems, Inc. Franchise Tax Board (FTB) Tax Intercept Program States Recovery Systems, Inc. currently partners with municipalities to assist the management of the FTB Offset Program. Through this partnership, our agency generates the required consumer notice and has designed custom programming to create the outbound file for the City to upload to the FTB. Offsets are directed to the City and notifications are sent to States Recovery Systems, Inc. upon receipt. Our system currently manages and automates the consumer letter process, which eliminates redundancy and additional cost. Our collection software provides real-time updates that include consumer payments, and account statuses to prevent notices being mailed to consumers on resolved accounts, or incorrect data being submitted to the FTB on assigned inventory. Some of the specific advantages to this partnership project include: Accuracy of data transmitted to FTB based on real-time agency information Reduced cost to the City for required notices Ability to locate consumer social security numbers Reduction in overpayments to consumers due to accuracy of balances in file transmission 0 Call center assistance with trained staff to assist in commonly asked offset questions There is no additional cost to the City for assistance with the program as proposed within the RFP. States Recovery Systems, Inc. offers these services at our proposed assessment fee of 12% on payments received through this program to aid in the agency cost and management of the program. As part of this Request for Proposal, States Recovery Systems, Inc. would work in conjunction with City of West Covina to assist as needed to implement or continue the FTB Offset Program, and coordinate mailing of the required notice at no additional cost. At its sole discretion, and an option, the City may also utilize the services of States Recovery Systems, Inc. to assist further in the management of the program including file creation and social security searches for assigned accounts. The City prefers to not incur any costs for this program. All monies paid to the Proposer will, preferably, come from the collected fines. City of West Covina will never incur a cost. All monies paid to States Recovery Systems, Inc. will come from money collected. 10. A statement of the dollar amount of an account under which you will not actively pursue regular collection and/or legal action. All accounts are worked thoroughly for resolution as long as the balance remains outstanding regardless of age, balance, or location of the consumer. States Recovery Systems, inc. will accept all dollar amounts however some laws will restrict us from certain collection activity. States Recovery Systems, Inc. will litigate on accounts over $1,000.00 however we do evaluate each account and will litigate under $1,000.00 if it is warranted and financially feasible. 11. A statement of the services you feel differentiates you from other debt collection providers. States Recovery Systems, Inc. has successfully managed collection services for City of Redding since 02-04-11. Our experienced collectors have worked 12,764 accounts totaling $4,876,264 in revenue. City of Redding is receiving a recovery rate of 39.6%. This is one of our references and 39.6% performance can be verified. City of Redding successfully utilizes the Franchise Tax Board Tax Offset Program. COLLECTION OPERATIONS NETWORK SECURITY Dedicated Compliance Division Fully Redundant Virtual Servers Real -Time Cell Phone Scrubbing Secure Off -Site Data Storage Call Recording Information Security Policies and Procedures Bankruptcy Division SSAE16 Certified CLIENT SERVICES Client Web -Portal Email Security Custom Client Reporting Client Services anytime access 24 hours a day, 7 days a week MULTILINGUAL We internally support the following languages - Spanish, Russian, Hindi and Gujrati and can support any language through our translation vendor which allows us to communicate with all consumers in our diverse state. Proposal Due: May 18, 2022, 2:00 p.m. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 Capacity to Perform CAPACITY TO PERFORM Provide a detailed description of the approach and methodology to be used to accomplish the Scope of Service of this RFP to achieve client satisfaction, within the presented timeframe. See Scope of Work (Attachment E). The Offeror shall provide a narrative addressing the Scope of Work and demonstrating the Offeror's understanding of the City of West Covina's needs and requirements. States Recovery Systems agrees to be responsible for the following: 1. Conduct all activities in an ethical manner and in compliance with all applicable Federal, State and local laws, codes and regulations. Collection agency compliance has and will continue to change rapidly over the proposed contract period for City of West Covina. States Recovery Systems, Inc. has the staff and the infrastructure in place to adjust to the rigorous demands that are placed upon collection agencies and the methods in which we conduct our daily business operations, all while exceeding the recovery expectations of the clients in which we serve. States Recovery Systems, Inc. has a dedicated Compliance Officer who monitors all changes in State and Federal collection laws. We subscribe to the ACA International's Guide to State Collection Laws and Practices. Updates are electronically sent regarding new legislation that is enacted and all members of our executive management team subscribe to the ACA Daily, an electronic notification system containing articles, case law and updates on collection laws and regulatory requirements. Members of our team also subscribe to the ACA Hub, a blog for ACA International members to share information on best practices for compliance, and collection operations. Compliance with regulatory requirements involves constant, daily monitoring and updating of internal processes and training of all staff within the organization. Outlined below are a few of the key areas of compliance which are regulated in our environment. Fair Debt Collection Practices Act (FDCPA) All collection staff is required through our Collection Agent Training Program to complete our full training program which consists of 5 program modules. The collection training program is conducted over the course of a full week and includes formal classroom training, systems training, interactive training and hands-on training. Module 2 is dedicated to Laws and Regulations and covers a full day of formal classroom training. Each representative must successfully complete and pass our FDPCA test to receive certification at the end of our training program. All collection staff receives semi-annually re -testing for compliance of FDPCA laws and regulations. Consumer Financial Protection Bureau (CFPB) The Consumer Financial Protection Bureau oversees collection agencies as well as providing the consumer complaint database for consumers. States Recovery Systems, Inc. is registered with the CFPB through the complaint database and has internal processes in place to respond to any consumer requests through our Compliance Department. Under the Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd Frank Act), all covered persons or service provider are legally required to refrain from committing unfair, deceptive, and abusive acts or practices, also referred to as a UDAAP. States Recovery Systems, Inc. has developed internal processes and policies to identify, recognize and prevent UDAAPs. To ensure that the policy is being followed, management will conduct 5 random audits; intensive review of recorded calls, live calls, side by side monitors with collectors. The Consumer Financial Protection Bureau recently issued a final rule to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. The rule focuses on debt collection communications and gives consumers more control over how often and through what means debt collectors can communicate with them regarding their debts. The rule also clarifies how the protections of the Fair Debt Collection Practices Act (FDCPA), which was passed in 1977, apply to newer communication technologies, such as email and text messages. The final rule also contains provisions on disputes, and record retention, among other topics. Regulation F was enacted on December 1, 2021. States Recovery Systems, Inc. is Regulation F compliant. States Recovery Systems, Inc., through our involvement with the American Collectors Association (ACA International) will monitor these new developments closely and begin preparations to modify or make adjustments within our daily business operations to ensure compliance with all new rules issued by the Bureau. PCI Compliance States Recovery Systems, Inc. accepts Visa and MasterCard payments through live representatives and through our secure website. In order to ensure security and compliance in information received, each representative enters the information directly through our collection software database. Once the information is entered, the card number is immediately encrypted and only the last four (4) digits of the card number are visible. The database will allow for immediate authorization of the card and issue an authorization or approval code once the transaction is completed. All contracted vendors supporting credit card processing are PCI DSS Level 1 Certified, SSAE16 Certified and Regulation E Compliant. States Recovery Systems, Inc. performs quarterly Network Scans and to ensure PCI Compliance. The quarterly scan is completed by Security MetricsTM Regulation E States Recovery Systems, Inc. has developed an internal policy regarding acceptance of consumer debit card payments which are subject to Regulation E requirements. Collection representatives are able to accept check -by -phone payments if drawn on a checking account, however, debit card payments require the authorized signature from the consumer. All collection letters include a payment section which allows for consumers to authorize one-time payments through the use of a debit card. Received authorizations are electronically scanned and stored with the account through our collection software database. Fair Credit Reporting Act (FCRA) States Recovery Systems, Inc. reports semi-monthly to all three credit reporting agencies, Experian, TransUnion, and Equifax. As a data furnisher, States Recovery Systems, Inc. has strict requirements to ensure all consumer data is accurately and timely reported. Our dedicated Compliance Officer manages all consumer disputes filed through E-Oscar on a daily basis and performs investigations of consumer disputes, validates account information through the credit reporting agencies and by direct mail to the consumer. When accounts are paid in full or as payments are applied to the unpaid balance all reports are updated. Reports are provided by the bureaus are reviewed for any report inaccuracies. In conjunction with contractual reporting requirements with each credit reporting agency, trade lines are not deleted once paid or removed unless the account is closed and returned to the original creditor. Gramm —Leach —Bliley Act (GLBA) Under the GLBA, a debt collector must comply with the Safeguards Rule which requires the development of a written information security program containing administrative, technical and physical safeguards appropriate to the agency's size and complexity, nature and scope of its activities and sensitivity of the consumer information at issue. The GLBA Safeguards Rule requires a debt collector to: • Designate an employee to coordinate its information security program in order to ensure accountability and achieve adequate safeguards. • Identify reasonable, foreseeable internal and external risks to the security, confidentiality and integrity of consumer information and assess the sufficiency of any safeguards in place to control such risks. • Implement policies and procedures to control security risks to customer information and monitor their effectiveness. • Oversee service providers by selecting and retaining service providers that are capable of maintaining appropriate safeguards for the customer information and requiring service providers by contract to implement and maintain such safeguards. Evaluate and adjust information security programs in light of the results of testing and monitoring required, material changes to operations, or any other circumstances which may have a material impact on the company's information security program. Further, procedures recommended by the Federal Trade Commission (FTC) for debt collectors to remain in compliance with the GLBA Safeguards Rule: 0 Lock rooms and file cabinets where paper records are kept. • Use password —activated screensavers. • Use strong passwords (at least eight characters long). • Change passwords periodically and do not post passwords near employees' computers. • Encrypt sensitive customer information when it is transmitted electronically over networks or stored online. • Refer calls or other requests for customer information to designated individuals who have had safeguards training. • Recognize any fraudulent attempt to obtain customer information and report it to appropriate law enforcement agencies. • Train employees regularly on the agency's safeguard policies. • Limit access to customer information to employees who have a business reason for seeing it. States Recovery Systems, Inc. has maintained a fully -comprehensive Information Security Policy which is tested, revised and audited annually. Protecting the confidentiality of private consumer information is at the forefront of our daily operations and is integrated in all aspects of the organization. Our policies encompass all the required elements to maintain compliance with the GLBA Safeguard Rules as outlined above. Red Flag Identity Theft Program States Recovery Systems, Inc. maintains a comprehensive policy to identify identity theft through our Red Flag Identity Theft Program. This program enables States Recovery Systems, Inc. to protect existing consumers, reduce risk from identity, fraud, and minimize damage to States Recovery Systems, Inc. from fraudulent new accounts. Telephone Consumer Protection Act (TCPA) The TCPA (Telephone Consumer Protection Act of 1991 47 U.S.C. 227) restricts telephone solicitations and limits the use of automated telephone equipment. The TCPA limits the use of automatic dialing systems, and artificial or prerecorded voice messages, SMS text messages, and fax machines. With limited exceptions, the statue prohibits business from making any "call" to a consumer's mobile phone without consumers "prior express consent". Consent of the consumer is a key defense under the TCPA and is a primary focus of States Recovery Systems, Inc. when communicating directly with consumers. At time of assignment, and prior to the first communication, States Recovery Systems, Inc. performs a database scrub on all new accounts to identify all cell phone numbers. Identified cell phones are coded within our collection software database to prevent any calls through our automated dialing system until express consent is obtained. Cell phone scrubbing is performed through the Contact Center Compliance database. Each time an account phone number is accessed or updated; it is scrubbed against the database. This aids in the immediate update of a reassigned or re -ported phone number and mitigates the risk affiliated with the use of dialing systems. Updates are real-time and accounts immediately flagged if identified. Once a collector obtains verbal or written consent to contact the consumer through our automated dialer, the flag is updated. If the consumer does not provide consent, manual calls based on our outlined scope of work will continue. Consumers may withdraw consent at any time and collection representatives will update contact flags as requested. All contact dial flags are tracked including date of consent through our collection software database. In addition to the above referenced laws and regulations, States Recovery Systems, Inc. holds each employee to the highest standards. In order to be considered for employment, candidates must pass a comprehensive criminal background and reference check. Subsequent background checks are performed annually for each employee to comply with internal and state licensing requirements. During new employee orientation, each representative must complete a Confidentiality Agreement and comply with our Code of Ethics. California Consumer Privacy Act (CCPA) Enacted January 1, 2020, the CCPA defines personal information as information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked (directly or indirectly) with a particular consumer or household such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, driver's license number, passport number, or other similar identifiers. An additional caveat identifies, relates to, describes, or is capable of being associated with, a particular individual, including, but not limited to, their name, signature, Social Security number, physical characteristics or description, address, telephone number, passport number, driver's license or state identification card number, insurance policy number, education, employment, employment history, bank account number, credit card number, debit card number, or any other financial information, medical information, or health insurance information. The intentions of the Act are to provide California residents with the right to: 1. Know what personal data is being collected about them. 2. Know whether their personal data is sold or disclosed and to whom. 3. Say "no" to the sale of personal data. 4. Access their personal data. 5. Request a business to delete any personal information about a consumer collected from that consumer. 6. Not be discriminated against for exercising their privacy rights. The CCPA applies to any business, including any for -profit entity that collects consumers' personal data, which does business in California, and satisfies at least one of the following thresholds: Has annual gross revenues in excess of $25 million; • Buys, receives, or sells the personal information of 50,000 or more consumers or households; or • Earns more than half of its annual revenue from selling consumers' personal information. Organizations are required to "implement and maintain reasonable security procedures and practices" in protecting consumer data. California Privacy Rights Act of 2020 (CPRA) (Proposition 24) Proposition 24 is the California ballot proposition that was recently approved in the recent November 2020 election. The proposition enshrines more provisions in California state law, allowing consumers to prevent businesses from sharing their personal data, correct inaccurate personal data, and limit businesses' usage of "sensitive personal information," which includes precise geolocation, race, ethnicity, religion, genetic data, private communications, sexual orientation, and specified health information. The Act creates the California Privacy Protection Agency as a dedicated agency to implement and enforce state privacy laws, investigate violations, and assess penalties of violators. The California Privacy Rights Act will take effect on January 1, 2023, applying to personal data collected on or after January 1, 2022. The intentions of the Act are to provide California residents with the right to: 1. Know who is collecting their and their children's personal information, how it is being used, and to whom it is disclosed. 2. Control the use of their personal information, including limiting the use of their sensitive personal information. 3. Have access to their personal information and the ability to correct, delete, and transfer their personal information. 4. Exercise their privacy rights through easily accessible self -serve tools. 5. Exercise their privacy rights without being penalized. 6. Hold businesses accountable for failing to take reasonable information security precautions. 7. Benefit from businesses' use of their personal information. 8. Have their privacy interests protected even as employees and independent contractors. States Recovery Systems, Inc. has strict controls and processes in place regarding transmission of security and confidential data. All data is encrypted in transit and at rest and uses the industry standard AES-256 encryption algorithm. All servers have hard -disk encryption and encryption keys are managed only by the internal team. Though our annual internal and external audit processes, validation of encryption standards are continually tested. We have a vendor management program in place to identify critical vendors and perform routine audits of those vendors based on the scale and scope of their service provided to our organization. Critical vendors must provide verification of certification including SOC2, Type2 annual audits with PCI and HIPAA certification and vendor contracts contain specific language regarding data security, data breaches, insurance requirements and confidentiality. States Recovery Systems, Inc. maintains an Information Security Policy and Business Continuity Plan for our organization. Regular reviews and testing are performed by members of our management team and the plan is audited annually by our independent CPA firm as part of our SOC 2, Type I certification. As part of the Scope of Work as outlined in this RFP, States Recovery Systems, Inc. will work with City of West Covina's Information Security Office to complete a full evaluation of our policies, procedures and controls regarding confidentiality and data security. States Recovery Systems, Inc. has invested significant capital to ensure our technology is fully redundant, secure and designed for future growth. Over the course of the past year, a full transition was made to implement a new call recording software module and retrofit each collection representative with new Thin Client workstations for added security within the environment. States Recovery Systems, Inc. partners with highly skilled IT professionals who oversee our hardware and backup and recovery strategies. 2. Address only those accounts which the City assigns. States Recovery Systems, Inc. will only address, enter and work accounts assigned by the City of West Covina. 3. When directed by the City, cease work on and return to the City all documentation pertaining to any account that may have been previously assigned. States Recovery Systems, Inc. provides the city with an email address to direct cease requests. Upon receipt of a cease request States Recovery Systems, Inc. will immediately close the account and return all documentation pertaining to the account back to the City of West Covina. 4. Will formally demand for payment of each collection item and seek payment arrangement satisfactory to the City. As required by the Fair Debt Collection Practices Act (FDCPA), States Recovery Systems, Inc. sends an initial "Regulation F Compliant" (See sample in Exhibit 2) demand letter regardless of balance upon activation of assigned accounts within 24 hours of assignment. Our contact strategy describes this in detail. Please see this information on page number 46. 5. Ensure funds collected on the City's behalf are placed in a secured account. Funds collected shall be deposited in a timely manner. Payments remitted to the City shall be completed in a timely manner, and include a report ledger showing the amount paid, at least once per month. Consumers have several options to pay their obligations and all payment methods are offered with no agency -added cost to the consumer or our clients. We offer the following choices: • In Person • Via USPS Mail • Credit Card by phone • Secure website for online payments 24 hours a day, 7 days a week • Check -by -Phone • Payment direct to the City of West Covina We do not discourage consumers form making payments, including cash payments direct to City of West Covina. All direct payments may be reported to States Recovery Systems, Inc. by phone, email notification or through our secure client web portal. The web portal allows for real-time reporting notifications to our collection staff so they are able to cease communication for paid accounts. Time Payments We realize that not all consumers can pay in full when we contact them, so we offer payment plans based upon the consumers ability to pay. We train our staff to negotiate the best possible repayment plan after the consumer provides some basic information about their financial means. States Recovery Systems, Inc guarantees all funds collected on the City of West Covina's behalf will be placed in a secure trust account. All collected funds will be deposited in a timely manner and in most cases the same day received. If a payment comes in after closing funds will be deposited the next day. All payments received will be remitted to the city in a timely manner and include a trust report ledger showing the amount paid ant least once per month. A sample of the trust ledger is located in Exhibit 1. 6. Pertaining to each account, deliver to the City at least once per month a report detailing the current status of the account, including a brief recap of the successful Proposer's efforts to collect the funds. States Recovery Systems, Inc. guarantees it will deliver to the City of West Covina a status and inventory report on each account detaining the current status of the account, including a brief recap of our efforts to collect the funds. This status report will be sent to City of West Covina once per month or as requested. There is a sample report in Exhibit 1 and can be modified to meet the needs of the City. 7. Not initiate any legal action pertaining to any account without the prior written permission of the City. Litigation is final step in the collection process if all other voluntary collection efforts have been exhausted and recovery still has not been achieved. States Recovery Systems, Inc. will consult with the City of West Covina collection department and legal counsel to coordinate a legal strategy, and review pleadings for prior cases as part of onboarding process to ensure a transparency in the adopted strategy. States Recovery Systems, Inc. will only initiate filing pertaining to any account with the express written consent of the City of West Covina. Our office would typically recommend litigation, when warranted, on accounts with a high degree of collectability. Most agencies will assign accounts out to legal firms or attorneys for litigation, however, States Recovery Systems, Inc. manages the entire legal inventory on -site and through our dedicated department. 8. No compromise settlement shall be accepted by the Collection Agency without City's written consent. States Recovery Systems, Inc. not compromise settlement of any account without the express written consent of the City of West Covina. 9. Ensure all records pertaining to any current or past accounts assigned are available for audit by City or its authorized representative at anytime. States Recovery Systems, sties m, i Inc. guarantees all records pertaining to any current or Select an option past due accounts assigned are available for audit by the 0. ry City of West Covina or its authorized representative at any time. _+ ....,.,......, p d .�..,... In addition to an open p "" 6 invitation to perform on -site audits at or physical location, through our collection software database, City of West Covina can access their inventory through a secure web -based "HIPAA Compliant" client access portal known as QuikClient © which allows access to performance reports, send secure updates regarding specific accounts, and audit remotely 24 hours a day, 7 days a week. 10. Provide electronic media access to the unpaid accounts. As described above in Item 9, States Recovery Systems, Inc's. web portal access is a HIPAA Compliant, internet- based collection agency software management tool that provides our clients with easy, yet secure, real-time access to their account portfolio 24 hours a day, 7 days a week. Upon contract award, City of West Covina will be provided with a secure login and password for direct access to your inventory of assigned accounts. L DAKCS DAKCS Software QwikClient: Accounts City of West Covina can have as many user profiles as needed and maintain access levels corresponding to the nature of their involvement on the portfolio. User permissions can be assigned or revised as needed. States Recovery Systems, Inc offers both on -site or remote training for all City of West Covina employees. 11. Guarantee the confidentiality, security, and safety of all files, documents, computer files, etc. Outlined below is a brief description of the security precautions currently in place in our environment which will ensure the confidentiality and security of City of West Covina data. Staffing States Recovery Systems, Inc. holds each employee to the highest standards. In order to be considered for employment, candidates must pass a comprehensive criminal background and reference check. Subsequent background checks are performed annually for each employee to comply with internal and state licensing requirements. During new employee orientation, each representative must complete a Confidentiality Agreement and comply with our Code of Ethics. Physical Security Our corporate office located in Rancho Cordova, California is a secure facility. Employees are assigned access badges and access is restricted within the facility based on defined access levels and position. Our location is equipped with internal and external security cameras which monitor the facility 24 hours a day, 7 days a week. The system allows for 40 feet of night vision and recordings are stored and backed up on our network server for a six-month period until oldest data is overwritten. The corporate business park is monitored in the evenings with a physical security guard and our building security is monitored through Liberty Bell. The system monitoring is equipped with motion, glass break, sound, and fire protection. Vendors, clients and other visitors must sign our visitors log within our lobby and be accompanied by authorized personnel at all times. Vendors with access are limited to janitorial only and must be bonded and provide a criminal background check prior to access during non -business hours. Critical vendors are audited and monitored on a scheduled basis as outlined in our Vendor Management Program. Document Handling It is the policy of States Recovery Systems, Inc. that unused or unwanted documents that contain account -level information must be disposed of and placed in the locked document shredding bin. Employees are not to retain documentation at their desk which may contain confidential consumer or account level information such as social security numbers, address or banking information. In the event that documentation is needed for future reference, those documents will be scanned to the individual account for printing or viewing at a later date. The locked storage bins are transported bi-monthly by Shred ITTm and are shredded on site at time of pick up. All bins are identified by a specific bar code and a log is maintained by Shred IT TM indicating the date and time of pick-up and transport as well as the destruction of the materials inside. A certificate of destruction is provided at time of service. Company documents and records are archived within the organization to ensure proper security of client, personnel, and corporate information. Scanned documents are stored on the network in specified folders based on the security level of the document itself; account -level information may be scanned and attached directly to the consumer's account on our collection software database. All archived documents that are scanned are backed up as part of our backup and data storage policy. Data Encryption States Recovery Systems, Inc. maintains a Data Encryption Policy which outlines the adopted encryption standards across the entire organization. The policy is detailed and encompasses all possible resources that may contain personal consumer information or account -level information including servers, physical computing systems, or email. States Recovery Systems, Inc. ensures all data is encrypted -at -rest and in -transit and uses the industry standard AES-256 encryption algorithm. All servers have hard -disk encryption and encryption keys are managed only by the internal team. Though our annual internal and external audit processes, validation of encryption standards are continually tested. PCI and Payment Processing Security States Recovery Systems, Inc. has secure processes in place for daily payment processing. All payments are posted in a secure, limited -access processing department containing a secure vault for checks or other negotiable items. Our processing department is equipped with security cameras providing 24 hour, 7 days a week surveillance. All client funds are deposited daily into a dedicated Customer Trust Account. Dual controls are in place for intake of daily mail, payment processing, reconciliation and auditing of all consumer payments. Customer payments made at our corporate headquarters must be accepted by two authorized members of the management team and a lock -box is utilized for all after-hours payments made on site. States Recovery Systems, Inc. is PCI compliant and accepts VISA and MasterCard payments internally and through our secure web portal. Email Security Email accounts are limited to administrative support staff, client services, and members of our executive management team. Email is secured through McAfee SaaS Email Protection and Continuity which provides advanced protection against phishing, malware and spam. Additional email encryption and archiving are available with this product and available for implementation. California has recently enacted landmark legislation to protect the privacy rights of consumers and States Recovery Systems, Inc. has been closely monitoring the progress of the following new laws and regulations for businesses to ensure compliance including the adoption a formal and published Privacy Policy available to consumers. Our Compliance team will continue to monitor these new Acts over the new contract period, provide notifications to City of West Covina as applicable or validation of compliance with regards to safeguards of consumer personal information. Employee Screening All employees, prior to employment, must pass a comprehensive criminal background check. Criminal background checks are performed annually thereafter for all employees. Incorporated within our new employment orientation, all employees are required to sign a confidentiality agreement as well as our States Recovery Systems, Inc. Code of Ethics. Use of Cellular Telephones Cell phone usage is strictly prohibited within our secure call center. Employees are issued a cell phone locker to secure their device during business hours. Risk Management Policy States Recovery Systems, Inc. maintains a Risk Management and Incident Response Policy. The purpose of the policy is to define the risk management requirements for the identification of the appropriate control posture for all computer and communications information system assets at the company. The policy applies to all computer systems and facilities at the company, with a target audience of the company's executive management and information technology employees or critical vendors. Enterprise Risk Management Process Enterprise Security Risk Assessment Each year the information security department in addition with the information technology department must conduct, or manage an independent party who conducts an organization wide security risk assessment. The report resulting from this project must include a detailed description of the information security risks currently facing the organization, and specific recommendations for preventing or mitigating these risks. Business Unit Risk Assessment Each critical organizational or business unit within the company that manages its own computers or networks must also perform, at least annually, a security -related risk analysis of these same systems, coordinated through the information security department and then certify that adequate security measures have been implemented to mitigate the risks. Annual Information Technology Risk Report For the board of directors to properly perform its risk management role, IT management must submit to the board a special annual report. This report is to include a description of all material company information technology -related risks, as well as an assessment of how these risks are currently being managed. Risk Assessment Methodology The company requires where appropriate that a risk assessment process be used where specified by policies, laws, or regulations. The company assessments are to be conducted using the facilitated risk assessment process. Material or Significant Information Security Risks For every material or significant information systems security risk identified, whether through formal risk assessment or not, management must make a specific decision about the degree to which the company will be self -insured and accept the risk, seek external insurance, or adjust controls to reduce expected losses to an acceptable cost of conducting business. Annual Evaluation of Information Security Operations Outsourcing As part of the annual risk management process dealing with information security issues at the company, the Chief Information Officer must review what information security operational tasks are, and what tasks are not outsourced. The CIO must then determine based on input from the information security managers which of these tasks will be outsourced in the future Network Security and Hardware Our technical infrastructure is designed to ensure the security of our network servers and restrict access. Thin Client applications have been installed at every workstation within the organization which increases security. All software applications are developed as part of a standard build and controlled through the server environment through the use of our Lockdown Security Software. End users have restricted access and are provided only the necessary tools based on their access level. Thin clients do not contain hard drives or the ability to utilize USB ports which adds additional protection from viruses and malware. Our office maintains three (3) primary VM Ware host production servers with dual, HEX - core processors with a Raid-5 array configuration. All hardware devices including servers, and workstations operate in a fully -redundant environment as an additional fail- safe in the event of system failure. All hardware servers are supported by contract with a 4-hour response time through our vendor. Additional hardware systems and configuration include: • Tripp-Lite UPS devices to support all primary servers and telephony equipment • Watchguard XTM 33 Firewall • Internal backup device for primary collection software server through a Network - attached Storage (NAS) • Servers equipped with multiple Network Interface Cards (NIC) in each device • Servers equipped with 32 GB RAM • Fiber internet connection through Telepacific with internet connection speeds of 50 MB for upload and download Access to the data room is restricted to authorized users and through badge (key FOB) only. The data room is temperature controlled with monitors and alarms set to notify key personnel. Individual systems contain monitoring devices to monitor the internal temperature of each device and all systems are secured in a rack -mount system. Data Backup All systems and servers within our environment are fully redundant and backed up remotely through our dedicated service provider, Raymar Information Technology. Our solution is fully automated and provides for rapid file restoration. Backups are performed through a secure online transfer of fully encrypted data to an offsite data center with geographic redundancy. Customer support is available 24 hours a day, 7 days a week. Secure File Transfer Protocol (SFTP) States Recovery Systems, Inc. will create and maintain an SFTP connection established on a dedicated server specifically for the sole use of daily file transmission of remittances, new accounts and cancellation/recall files. All data is encrypted in transit and at rest and this SFTP connection allows for data to be transferred over a secure connection as an additional layer of security. Data files are not housed or stored on this server, rather, they are uploaded or downloaded for daily processing then deleted once processed. Other methods or protocols may be implemented as necessary through the implementation process with City of West Covina for the contract period. Penetration Testing States Recovery Systems, Inc. performs external penetration testing to identify any potential vulnerabilities that may exist in the environment. Formal reports are generated and available for client information security audits to validate compliance. ,a Planning and RemnnNssanaa Test goals are defir Nand Intelligence is griberetl. PENETRATION TESTING STAGES `-` G`4 n Scanning I I Gaining Access Maintaining Access 3ammogtoob are usedlo Web appllraiwn atlab., AM are lmnatea to seen s ntlerstantl M1owatarget are staged to uncover• is vulnerability can be uN rasyonds to intrusionstarget vulnerabilitiesto maintain mess. and WAF Hesulls are used to mnfigii.e WAF setibgs before:c0n, Is on again. SIEP 01 r-D SEEP 02 r-I5 S1EP 03 r-6 STEP 04 r-6 STEP 05 Vulnerability Scanning States Recovery Systems, Inc. partners with SecurityMetrics© to aid in the protection of our internal network through vulnerability scanning which includes: • Event Log Alerting • Internal Vulnerability Scanning • Event Log Management Information Security Training and Auditing The Information Security Policy is reviewed annually or as changes are made within the technical infrastructure. Members of the executive management team perform an internal review encompassing all departments, processes and policies. A revision log is maintained as well as an incident log for any identified issues. Training on information security policies and procedures are performed quarterly and include all staff. Training logs with employee acknowledgments are maintained as part of our program. Our plan is audited annually by our independent CPA firm as part of our SOC2, Type I certification. States Recovery Systems, Inc. maintains an Information Security Policy and Business Continuity Plan for our organization. Regular reviews and testing are performed by members of our management team and the plan is audited annually by our independent CPA firm as part of our SOC 2, Type I certification. As part of the Scope of Services as outlined in this RFP, States Recovery Systems, Inc. will work with City of West Covina to complete a full evaluation of our policies, procedures and controls regarding confidentiality and data security. States Recovery Systems, Inc. has invested significant capital to ensure our technology is fully redundant, secure and designed for future growth. Over the course of the past year, a full transition was made to implement a new call recording software module and retrofit each collection representative with new Thin Client workstations for added security within the environment. States Recovery Systems, Inc. partners with highly skilled IT professionals who oversee our hardware and backup and recovery strategies. Outlined below is a brief description of the security precautions currently in place in our environment which will ensure the confidentiality and security of City of West Covina data. 12. Responsible for maintaining accurate records of all correspondence, documents, accounting records, transactions and other relative evidence. These records shall remain on file for a period of at least seven (7) years. All records shall be made available to the City for review upon request. States Recovery Systems, Inc. understand the importance of maintaining accurate records of all correspondence, documents, accounting records, transaction and all other relative evidence. All City of West Covina records will remain on file for a period of at least seven (7) years. All records will be made available to the City of West Covina for review upon request. States Recovery Systems, Inc. has proprietary debt collection systems to provide our collection software solution. With our software systems we have been successful in streamlining collection operations through the use of automation for all processes. Daily collection queues present accounts methodically to the representative based on assigned status, client, business type, balance, age of obligation, probability of payment and consumer location by time zones. Once the account is worked the system allows scheduling for future dates to ensure consistent follow up on assigned accounts. States Recovery Systems, Inc. knows the importance of streaming processes. One way to streamline is to establish automated procedures. Our processes are automated daily including new placement files, recall files, direct payment notifications and reconciliation files. Daily outbound files are generated by our office which included daily remittance files, acknowledgment files, update files and recall confirmation files. Our agency has been evaluated on response time to client services issues, performance, compliance, reporting and each month we met or exceeded client expectations. Specifically designed for the collection industry, our software platform provides all of the essential functions of our collections operations, from new business entry through to month end closing and the remittance process. This includes the movement of accounts, payment processing, collector productivity reports, client status updates and client analysis reporting. All processing within the database is real-time which aids in direct communication on accounts and processes within our internal departments and with our clients who access their inventory. Within our database, States Recovery Systems, Inc. maintains a record of all placement data, account history, payment processing, payment posting and call logs and all data is encrypted at rest on the production server. All file transfer processes performed over a secure SFTP connection are automated on a daily basis. Files inbound and outbound have an added layer of encryption through .ppk key sharing and certificates for connection authorization over the secure network. Call Recording All calls are recorded at States Recovery Systems Inc. for quality assurance and training purposes. It is the collector's responsibility to provide the required disclosure at the beginning of every phone call, both incoming and outgoing. Our data is archived for up to four (4) years and we currently have the storage capacity to house two (2) terabytes of data in the event recordings need to be accessed at a later date. Call recordings are included in our network security plan and all data is secured and backed up off -site as part of our Backup, Recovery and Archiving Policy. Dialing Campaigns Our in-house state-of-the-art automated and predictive dialing solutions are fully - integrated with our collection software. Currently it has 62x96 lines and has the capacity to expand. Our system offers text -to -speech technology with right party identifier abilities. Campaigns are scheduled in both predictive and messaging formats and are scheduled by management and varied based on multiple factors including placement batches, time - zone, and balances. Our collection staff works on call campaigns for several hours a day to ensure adequate call saturation on all inventories. States Recovery Systems, Inc. has also contracted with an outside predictive dialing vendor, Quikdial, which provides benchmark statistics to our internal dialing strategy. Campaigns are run periodically through this vendor and statistics are measured and analyzed internally. Telephone Consumer Protection Act (TCPA) The TCPA (Telephone Consumer Protection Act of 1991 47 U.S.C. 227) restricts telephone solicitations and limits the use of automated telephone equipment. The TCPA limits the use of automatic dialing systems, and artificial or prerecorded voice messages, SMS text messages, and fax machines. With limited exceptions, the statue prohibits business from making any "call" to a consumer's mobile phone without consumers "prior express consent". Consent of the consumer is a key defense under the TCPA and is a primary focus of States Recovery Systems, Inc. when communicating directly with consumers. At time of assignment, and prior to the first communication, States Recovery Systems, Inc. performs a database scrub on all new accounts to identify all cell phone numbers. Identified cell phones are coded within our collection software database to prevent any calls through our automated dialing system until express consent is obtained. Cell phone scrubbing is performed through the Contact Center Compliance database. Each time an account phone number is accessed or updated; it is scrubbed against the database. This aids in the immediate update of a reassigned or re -ported phone number and mitigates the risk affiliated with the use of dialing systems. Updates are real-time and accounts immediately flagged if identified. Once a collector obtains verbal or written consent to contact the consumer through contact, the flag is updated. If the consumer does not provide consent, manual calls based on our outlined scope of work will continue. Consumers may withdraw consent at any time and collection representatives will update contact flags as requested. All contact dial flags are tracked including date of consent through our collection software database and our customized Consumer Consent Auxiliary Screen which allows for electronic consent by text messaging and email. Consumer TireZu¢: NO—eac. Ntllo3 _ IwwNeN n� seoeaY Naeaa. 3ee,mr wmoewa; Thai, s: saw,m; Edit Save C... d s... T. we m F. Sa Aaa R 'CudawN® Hai, (800)211-1I35 LEST DEBMR H6 (916)G31 M5 OEP SE], (916)631-71195 CNK HutoT'^Aaa Hmy' •••f 0256 (S Tm NrgeGed a w Nk, w XV /FA - N X Nt, KM 5e1 ✓ wIM Sw / Edit / Ea 1 X to sd J tdw sw / Fdl / Edia U / EA / rat / Edit wi Nid 6N� fume CIlENISEHVI�SpSTATESHECUYEAY.CUN Veftl Bnvtl ✓Gsesi /FA EAK.. sake eawaj Hisary Add Odde SnAs P.i�my x=se�tgton Cw®e PNs�ad Nalry AEwEdit ro�PewawemrmPne✓.��<ol�.:eemexoea'o.ve. xad. 13. No work shall be subcontracted without the prior written consent of the City. States Recovery Systems, Inc. does not use subcontractors to perform any work. States Recovery Systems, Inc. agrees that no work shall be subcontracted without the prior written communication of the City of West Covina. 14. Conduct skip tracing on delinquent accounts. Describe specific tools used to conduct skip tracing. Skip Tracing Skip tracing tools are available to other companies in the industry; however, how we use the information differentiates States Recovery Systems, Inc. from our competitors. Skip tracing efforts typically begin within twenty-four (24) hours after the account has been identified. We place emphasis on our ability to probe and ask the right questions for contact information. Maintaining a professional demeanor and treating people with dignity and respect enables open communication between our collectors and third parties. All attempts to locate the consumer are documented on the account system and are fully auditable. All collection staff are trained to perform exhaustive skip trace efforts on assigned accounts. Through our Collector Training Program, collection representatives receive comprehensive instruction on the best methods for utilizing online databases and the skill and compliance requirements involved when obtaining location information verbally from third parties. States Recovery Systems, Inc. Skip tracing Waterfall Approach SRS Recei es and NONE leads ArmMs Skip Tracing Batch Processing Search Category rr • rr $200.00 - $499.00 $500.00 - Plus Bankruptcy & Deceased Scrub Experian Collection Advantage (Score& Credit Summary) V V Accurint (Property, Phone Plus, Work Place, Next of Kin In addition to batch processing, collection representatives have access to perform manual skip tracing efforts using some of the following resources: Accurint Electronic Collectors have full access to Accurint, a database allowing advanced person searches based on the customers name. Accurint locates neighbors, associates and relatives, phone numbers including cell phone, business, & home phone. Corporation/Business Electronic Collector requests the customers telephone number using the Records customer's employer address and/or a listing of employers with common or similar names. Court clerks Manual Collectors contact the local court system to determine if the customer has a public or criminal record, license, or business affiliations. Internet Search Engines Electronic Collectors use search engines such as www.google.com, www.yahoo.com, www.savvysearcucom, www.crimetime.com and others to locate information about customers. Place of employment or Manual Collectors contact a customer's former place of employment to business retrieve current employment data. Professional and social Electranic/Manual Collectors contact state professional licensing boards to obtain the organizations customer's current address or telephone number based upon annual renewal lists. Review of occount Manual Collectors thoroughly review all account documents to ensure documents information is never overlooked. Tax Assessor /Landlords Electronic/Manual Used to locate the customer's address & assets. Surname Search Electronic Collectors search by last name or initial within a user specified region such as ZIP, State, county, or state. 15. Submit status reports monthly and an annual report (on a fiscal year) through June 30, reflecting the activity for the previous fiscal year. These reports shall include data for each account detailing the value of the current debt, money received, charges waived, interest charged, balance due and date of last payment. A financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as receipts, net accounts receivable, total accounts receivable, and collection percentage. In addition, an aging report should be available in summary and in detail. The agency shall provide copies of all available reports and include in the proposal. States Recovery Systems, Inc. will submit status reports monthly and an annual report (on a fiscal year) through June 30, reflecting the activity for the previous fiscal year. These reports shall include data for each account detailing the value of the current debt, money received, charges waived, interest charged, balance due and date of last payment. States Recovery Systems, Inc. understands a financial summary will also be required showing "period to date" and "year to date" totals for pertinent information such as receipts, net accounts receivable, total accounts receivable, and collection percentage. In addition, States Recovery Systems, Inc. will provide an aging report in summary and in detail. States Recovery Systems, Inc. has provided copies of all available reports and they are included in the proposal. Please see Exhibit 1. 16. Make a minimum of two written or telephone contacts for each account (unless the account clears sooner) within sixty (60) days of receipt of account. The Proposer shall provide in the proposal detailed steps that will be taken once account is received from the City and number of contacts and procedures that will be taken. Our executive management team has a vast background and years of industry experience which enables our corporate structure to stand strong throughout the dynamic changes the collection industry has been faced with through additional compliance, regulation and new requirements from state and Federal regulatory bodies. States Recovery Systems, Inc. stands ready implement our proposed collection solution. We are qualified to meet the objectives as outlined in the Request for Proposal and are committed to working with City of West Covina. The goal of States Recovery System's "Win -Win" negotiation strategy is to find a solution that is acceptable to both parties, leaving all involved feeling satisfied with the end result. This approach not only delivers a high rate of return, but also reinforces the goodwill of the consumer towards City of West Covina. The key to this philosophy is having highly trained, experienced, and knowledgeable personnel managing the consumer contact. Collectors must be experts in overcoming objections, offering solutions, and creating urgency. This approach has helped States Recovery Systems, Inc. remain a top agency in competitive collection markets for over 34 years. Written Communication As required by the Fair Debt Collection Practices Act (FDCPA), States Recovery Systems, Inc. sends an initial "Regulation F Compliant" (See sample in Exhibit 2) demand letter regardless of balance upon activation of assigned accounts within 24 hours of assignment. States Recovery Systems, Inc. proposes a three -letter series to be mailed at regular intervals within the first 120 days of assignment. Legal Re ur a ,t Pursuanv to FDCPA Misled a, dry 60 6om Dne of Re1e 1 Maded a, dry 1101rom D. of Re-1 Maded awth,n 72 Hours of Assignment BauhM through NCOA(or updated Batched Nrogh NCDA for updnM address nfo,.naoon address fnfm Goon Batched tluough NCO/. for upGred address Infomuoon Accounts that are flagged with a bad -address indicator, are placed on hold, or are in a current dispute status are blocked from future notices being mailed until the flag is updated. Skip tracing is performed to locate new address information before the next letter in the series is initiated and each letter is can be compared through the National Change of Address (NCOA) database. If a new address is identified, it is automatically populated on the letter and a data file created for processing within our collection database with all updated information. States Recovery Systems, Inc. offers a change of address report at no extra charge. Keeping our databases in sync helps you the next time a consumer may owe money. Collection notices are reviewed and approved in accordance with the Collection Notice Review (CNR) User Guide established by ACA International (American Collectors Association) to mitigate risk affiliated with verbiage in collection notices. The review is conducted by and approved CNR attorney and notices can be approved by City of West Covina prior to generation by our office. We are licensed in all 50 states and in order to comply with individual state collection letter requirements, specific versions of each letter are created and mailed based on the state in which the consumer currently resides. Outlined below is a chart and description of all collection letters proposed for the project. States Recovery Systems, Inc. has the ability to develop new, customized letters in conjunction with any requirements outlined by City of West Covina, and we will work with the implementation team to ensure any changes to the standardized letters are reviewed and approved in advance by the City of West Covina team and our CNR attorney. This precaution is provided at no additional charge to City of West Covina: As required under the FDCPA, this letter is mailed within the first five business days after First Collection Letter assignment and includes all mandatory legal notifications. Regulation F Compliant. See Sample in Exhibit 2. Second Collection Letter This letter is mailed sixty (60) days after assignment as a notification to the consumer that arrangements to resolve the account need to be made. This letter is mailed after one hundred -twenty (120) days after assignment and is designed Option Letter to give each consumer specific repayment options including balance in full, payment over 60 days or repayment over 90 days. A Once a payment arrangement is agreed upon, this notice serves as written confirmation of First Payment Arrangement Letter the payment plan and includes the amount and due date. For accounts under a payment arrangement, this notice serves as a payment reminder and Payment Reminder Letter IF is mailed at least 10 days prior to the next installment due. Broken Promise Letter This notice is mailed when a defined payment arrangement is breached and informs the consumer to contact our office. If a dispute is received and validation of the assigned account is required, this letter serves Response to Dispute Letter as a notification that attachments are included and advises the consumer to contact our office upon receipt and review of the enclosed information. Post-dated Payment Letter As required by law, this letter is mailed ten days prior to the deposit of any post-dated payment on file with our office. Paid in Full Letter Provided upon request for accounts in a paid in full status. Pre -Mail Data Scrubbing Every year more than forty million people nationwide move their place of residence and/or business and their old addresses remain unchanged in databases with original creditors. In addition, it is estimated that over 8% of all mail is undeliverable because of incorrect addresses. States Recovery Systems, Inc. works diligently when accounts are initially loaded into our system to ensure that our first communication with all consumers is delivered. By data scrubbing all assigned accounts at the time they are assigned we are able to reduce the number of undelivered letters and mail returned due to bad addresses. We utilize the following database information: National Change of Address (NCOA) - This database is created through the USPS and captures all address correction information available for consumers. Address Element Correction (AEC) — A USPS service that attempts to correct addresses that fail postal standardization software. ZIP+4 Appending or Correction — All address records are searched to ensure the zip code is accurate and correct. Address Correction Service (ACS) —Allows addresses to be forwarded through the USPS after corrections or new address information is obtained. ➢ Delivery Point Verification (DPV) — ensures the physical address is actually exists In addition to database scrubbing, all new addresses or address corrections are uploaded daily through our database with address correction tracking through our collection software so account representatives are able to verify the most current information when communicating with the consumer. Contact Strategy States Recovery Systems, Inc. understands the specific needs and requirements as outlined in the Scope of Services for City of West Covina and we propose the following workflow and contact strategy outlined below: Phase I: initial 30 days • Accounts placed with States Recovery Systems, Inc. are loaded into the collection database within 24 business hours. • Accounts are batched for any Bankruptcy and Deceased information and TCPA cell phone scrubbing. • The initial 'Regulation F Compliant' demand letter is sent to the consumer within the first 24 hours of the business being placed with our office as required under FDCPA guidelines. The letter identifies the original creditor; all monies owed, and will provide specific information about States Recovery Systems: telephone number, address, and the account number allocated by States Recovery Systems, and how to pay their obligation. This letter is provided to consumers in English and Spanish if necessary. • Telephone contact is attempted at all available phone numbers a minimum 15 times. If the account is identified as a skip account with returned mail or bad phone number information, manual or batch skip tracing is performed as outlined in detail below. Accounts that are identified as disputed are electronically routed to the Compliance Manager and Client Services Manager to provide validation of the debt and update credit reporting flags. Our dispute process is included later in this proposal as requested. • Contact is attempted through a combination of manual collection efforts by collection representatives, automated messaging campaigns and predictive dialer campaigns as allowed and in accordance with the TCPA. The electronic Voice Information Center (VIC) is our automated dialing system and allows for campaigns to be scheduled or built as needed by management with specified key account factors (i.e., recoverability, balance, historical statistics, best time to call, and isolate specific numbers to be called at specific times, as well as manage the frequency of calls) to maximize right party contacts. It should be noted that electronic dialing is suspended at this time due to TCPA regulations and is mention merely to outline our full capabilities. Upon regulation changes, we will re -implement this technology. Phase II: 31-180 days Accounts are electronically reported to the 3 national credit bureaus, Experian, TransUnion and Equifax, after 50 days of assignment. Credit reporting updates are transmitted bi-monthly for accuracy and timeliness of reporting disputed accounts, payment arrangements and paid in full inventory. As account statuses are updated and identified as a skip account, additional batch skip tracing is performed for additional data after 60 days of assignment. The second collection letter is mailed on unresolved accounts on day 59. During this phase all accounts with valid numbers have telephone contact attempted a minimum of 6 times per month. Through our internal scoring and data analysis metrics, accounts that have been identified based on defined criteria that have a higher probability of paying will have increased manual effort by a dedicated collection representative and have telephone contact attempted a minimum of 2 times per week. The 3'd collection letter is mailed as outlined in our letter strategy on day 120 which extends payment plan options that are based on the current balance owed. Phase III: 181 days- End of contract All accounts with valid numbers have telephone contact attempted a minimum of 4 times per month. Through our internal scoring and data analysis metrics, accounts that have been identified based on defined criteria that have a higher probability of paying will have increased manual effort by a dedicated collection representative and have telephone contact attempted a minimum of 6 times per month. Additional collection notices are sent to the consumer as needed. Periodic skip efforts are made by either batching to selected data sources or manually to ensure that all potential contact points are attempted. In adherence with the requirements as outlined by the CFPB under Regulation F, known within the industry as the 7-7-7 rule, contact with consumers are restricted to no more than seven times within a seven-day period, or within seven days after engaging in a phone conversation with the consumer about a particular debt. All contacts with consumers are made under the name of States Recovery Systems, Inc. At States Recovery Systems, Inc. accounts are not placed in an inactive status unless specific conditions dictate such as bankruptcy, death, or cease and desist. All accounts are worked thoroughly for resolution as long as the balance remains outstanding regardless of age, balance, or location of the consumer. Rework: An evaluation and analysis of our internal portfolio of accounts has found that one collector may be proficient at locating and/or collecting where other members of the team have not. Consumer behavior and financial situations vary based on individual circumstances and our representatives utilize tonality, personality and psychology to build rapport with consumers. Collectors work to offer financial solutions and overcome objections and barriers to repayment. Each representative may have a slightly different approach with an individual consumer. Our automated system cycles the accounts among the collection team to maximize effort and increase recovery. Our real-time connectivity to multiple information providers, coupled with our library of interactive skip tracing databases, enables us to locate more consumers. We retrieve the newest and most reliable data available. Bankruptcy and Deceased Consumer Scrubbing The ability to identify bankrupt and deceased consumers at the time an account is assigned for collection is paramount in minimizing risk prior to beginning any collection efforts. States Recovery Systems, Inc. performs database scrubbing to identify any impacted accounts priorto the first communication. Batch services are automated through our collection database and collection representatives utilize additional services to obtain detailed bankruptcy case information or deceased information on individual accounts: Lexis Nexis — Accurint Public Access to Court Electronic Records (PACER) Dolan Information Experian Collection Advantage Products With the nature of the industry and collection process, at times, complaints will arise. At States Recovery Systems, Inc., complaints are taken very seriously. Internal policies and procedures ensure compliance to all state and Federal laws and collection activities are monitored daily. Our philosophy is to prevent complaints is circumvent them before they begin. The best way is thorough and ongoing training for collection staff. Our collectors are taught financial counseling and psychological profiling techniques, to help the consumer find a financial solution. These techniques often alleviate complaints before they arise as the consumer is treated with dignity and respect from the first contact with States Recovery Systems, Inc. A manager or team leader is on site at all times and available for any escalated call or complaint. Compliance complaints, if received, are handled by the President and the Vice President of Operations. A thorough investigation is performed regarding the alleged claim and a formal response is drafted to provide clarification regarding any consumer inquiries. Responses to attorneys or consumers are drafted by dedicated attorneys or by executive management. States Recovery Systems, Inc. maintains a formal policy for complaint and dispute handling within the organization and has established a customized complaint auxiliary screen that allows for tracking on each individual consumer account. Since data is tracked and stored on the account level, our database allows for custom reporting to extract the complaint and dispute data if requested. States Recovery Systems, Inc. Complaint Auxiliary Screen Primary Complaint Documentation Enter complaintaM contact information hem: Date Complaint Received: Complaintant Nameisi: Complainant Complaintant Address 1: Type of Complaint: Complaintant Address 2: Nature of Complaint: Complaintant City State Zip: Complaint Number: Complaintant Phone: Date response sent to complaintant: Was complaint satisfied and closed? Enter additional comments below: Consumer Dispute and Resolution Process Processes are established to handle verbal, written and escalated disputes. Validation of the assigned account is provided to all consumers in writing upon their request and timely follow up by collection staff to overcome objections and negotiate repayment is part of our work -flow strategy. Please see Dispute Process Flow Chart on next page. Dispute Process Flow Chart States Recovery Systems, Inc. maintains a formal policy for dispute handling within the organization and has established a customized dispute auxiliary screen that allows for racking on each individual consumer account. Since data is tracked and stored on the account level, our database allows for custom reporting to extract the dispute data if requested. In order to maintain timely responses and requests to our clients for validation of assigned accounts, we have established scheduled reports that will trigger management review if the deadline to respond to the consumer dispute is still outstanding. See custom Dispute Auxiliary Screen on next page: States Recovery Systems, Inc. Dispute Auxiliary Screen Primary Dlspttte Documentation Enter 3rd parry contact info..wtion here: Date Dispute Receivetl: � � JN Party Nsnelsl: gsDule Received Frwn: 3rd Party Add.. 1: Type of Dispute: 3rd Party Addresa 2: Raurm of Dispute: 3rd Party city Stale Zip: 3M Part' Phone: Dale validation sent to consumer. O � Dare Eaereion ws. sent to Conwmer. Duplicate Dispute Documerdation IDae tat Duplicate Dispute Received: 1Date notice semta consumer- tat duplicee dispute: Date 2nd Duplicate Dispute liecehv 1: O Date noti® rM W consumer - 2nd duplicate dispute: Dele w Duplicate Dispute Received: O ate notice xm W consumer - 3M duplicate dlspute: Dora 4th DuPliote Dispute Received: Data nodes rm to consumer-4th duplicate dispute: 17. The Proposer shall not have full rights to the accounts. All information provided to the Proposer shall be used solely for the purpose of collection and may not be provided to any outside agency, business, or person without the consent of the City. States Recovery Systems, Inc. acknowledges and agrees. 18. Accept automated or manual transfer of delinquent payment information from the City or other vendor's database. It is expected the agency will work at no additional cost, with the City and its software to ensure accurate and timely transmission of data. States Recovery Systems, Inc. will work with City of West Covina for efficient processing of new assignments and to maximize recovery, States Recovery Systems, Inc. requests the following information at time of assignment: • Customer name and last known address • Social Security Number (If you have) • Current balance • Breakdown of any additional charges, fees, or interest • Date of last activity Optional information would include: service address, disconnect date, status of customer (property owner/renter), additional responsible parties, phone numbers, or employment. Through the implementation process, our team will coordinate with the City of West Covina to establish a defined method of account transmission. States Recovery Systems, Inc. has Filezilla experience and accepts new accounts in all types of formats including: • Manual placement • Secure FTP batch assignments in all delimited formats (CSV, Text, Tab, Space) and fixed -length files • Standard Excel Assignments may be transmitted to States Recovery Systems, Inc. by: • Secure FTP connection • Electronically through secure email • Uploaded through our secure client web portal • Facsimile through our secure fax server States Recovery Systems, Inc. will accept automated or manual transfer of delinquent payment information from the City or other vendor's database. It is expected and States Recovery Systems, Inc. agrees to work at no additional cost, with the City and its software to ensure accurate and timely transmission of data. 1,.111 una k 4} LILL 11119. FEE SCHEDULE (Attachment D) Provide a not -to -exceed fee proposal that includes all hourly rates, miscellaneous fees and other anticipated expenses associated with completing the project in addition to an estimated total project cost. This proposal contains no up -front fees orcosts to the City of West Covina for collection agency services. Our Assesed pricing includes letter services and all collection services under the proposed scope of work. States Recovery Systems, Inc. does not transfer any assigned accounts out of the area as we are licensed Nationwide to collect wherever the consumer resides. a. Letter service 0% b. Regular collection 17% c. Court action, if required 24% d. Transfer of account to an out of area agency for collection 0% e. Any other costs Involved in the collection process Tax Offset Program 00/0 bl. If City of West Covina allows States Recovery Systems, Inc. to use the Franchise Tax Board and money is collected as a result, the rate will reduce from the regular collection rate to 12% as described on page 19 and 20. • There are no hourly rates. • There are no miscellaneous fees. • There are no other anticipated expenses. Any applicable legal fees and costs will be advanced by States Recovery Systems, Inc. Written authorization is required from the City of West Covina prior to the commencement of any legal action. Any litigation costs advanced for filing fees and service of process by Agency shall be applied to the advanced costs first. The legal assessed rate shall only be applied for funds recovered once suit is filed. Agency fees are recovered on a assessed fee basis only The estimated total project cost will never exceed the contingency commission rates quoted in this proposal. EXAMPLE ASSESSMENT OF COLLECTION FEE — BASED ON 17% FEE When States Recovery Systems, Inc. is assigned an account for collection, we agree to be tasked with the collection of the balance owing on the delinquent account, late fee and the Collection Fee ("City Fee"). The City Fee is a fee imposed by the City on those who have allowed their accounts to become delinquent and the City turned it over for collection. The City Fee is equal to the cost to the City for the collection of the delinquent account. For example, if the amount collected on a delinquent account assigned to us is $100.00 we will be tasked to collect $117.00 which is the amount collected plus the City Fee (based on 17% of $100.00, which is equal to the Consultant's charge for the collection service). We will retain $17.00 as its fee and tender $100.00 to the City. The collection fee assessed will be based on the category of the account when paid. Proposal Due: Excluded or Subcontracted Services May 18, 2022, 2:00 p.m. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 EXCLUDED OR SUBCONTRACTED SERVICES Provide details of any necessary services relating to the process which will not be included in your proposal, including those which the Consultant expects to be performed by City staff and/or by other contractors or subcontractors. If you intend to subcontract any portion of the work, identify the subcontractor(s) and provide details regarding their qualifications. There is nothing excluded. All process and services are outlined in detail in our proposal. States Recovery Systems, Inc. does not need or intend to use a subcontractor to perform debt collection agency services. A Proposal Due: Attachment A May 18, 2022, 2:00 p.m. Non -Collusion Declaration to be Executed by Bidder and Submitted with Bid Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 XAttachment A NONCOLLUSION DECLARATION TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID The undersigned declares: I am the President of States RecoverySystems, Inc. the party making the foregoing bid. The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid. The bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose. Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on 05-11-22 [date], at Rancho Cordova [city], CA [state]." Firm States Recovery Systems, Inc. (Signature) Street 2491 Sunrise Blvd. Cynthia A. Yaklin, President (Print Name & Title) City Rancho Cordova, State CA Zip 95670 City of West Covina Request for Proposals Collection Agency Services, #13-010 Page 12 of 32 Proposal Due: Attachment B May 18, 2022, 2:00 p.m. Subcontractor Campaign Contribution Acknowledgment Form Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 Attachment B SUBCONTRACTOR CAMPAIGN CONTRIBUTION T ACKNOWLEDGMENT FORM Proposer [or Consultant] is required to identify any known subcontractor who will provide goods or services with an anticipated or actual value of $15,000 or more in connection with any contract which may be awarded pursuant to this Request for Proposal if the proposed contract with the Proposer [or Consultant] has an anticipated or actual value of $30,000 or more. By my signature below I certify that as a subcontractor I reviewed and am in compliance with the City of West Covina Municipal Code section 2-405.50, in reference to campaign contributions to any individual holding City elective office. CONTRACTOR: Company: States Recovery Systems, Inc. By: Cynthia A. Yaklin Title: President Date: May 11, 2022 SUBCONTRACTOR: Company: None By: Title: Date: City of West Covina Request for Proposals Collection Agency Services, #13-010 Page 13 of 32 Proposal Due: May 18, 2022, 2:00 p.m. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 Attachment C Sam.gov Verification Attachment C Sam.gov Verification Insert System for Award Management (SAM) record search for company name and company principal. }$ SAM.GOw Home search DI Bank Data service Help $parch RII W,N, , ,.;."NP4D", �enRam,b , GrXRaInlb�naBon MlFntlryinRxmatbn EMMka Disaster Respell Reentry EvtWAnns Filter Br _ tkgwa,GE.N ram a..a.a,�,� Iwbswk.Yad�tb9a„ Mpwde® � uiwe,ea Qi O Eeseep x O e R. 12N56 "Smith C, Ouftll[atlm b,weee I.aaas ..r.t nnly Er W. Fnce RFneF Nolmatches found viearev/muibsse upb46pnl�nwXs. ca aet4 VERIFICATION OF THE COMPANY NO MATCHES FOUND NOT DEBARRED NOT SUSPENDED � mvW�l... dN•uiMa�Nv.•�a x�.x� .W,SAM.00v Home B .h oaks Bank DR. Serv.:ea rMp G faNtl Nwmabon Allfntity lnbrmrtion Entrain Oemtn Neaponse Neginry Fdusie,n ulrm.re wrt p ,wN� o Q xl pom. O pkx MYQ ' pp�wurmY=/Mw' CluFatla, [NWJ wY.Mlul f19 Nam[ NICCI[Nikn[ lap Nsiw RRITN a fnlXyk�m No matches found �am�qu.M,ou�C,upNyl mNmbc,rrrrc bY� VERIFICATION OF THE PRINCIPAL NO MATCHES FOUND NOT DEBARRED NOT SUSPENDED E s,o A Proposal Due: Exhibit 1 Sample Reports May 18, 2022, 2:00 p.m. All reports can be modified to meet the needs of the City of West Covina. Submitted By: Adhoc reports are also available. States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 States Recovery S Y S T E M S I N C. Account Acknowledgement Report is provided within 24-48 hours of new account submission. The Report report outlines the name, account number, amount referred of each account and provides a check -and -balance to the client as to the number of accounts and dollar amounts referred. Monthly Client Trust Remittance Report reflects payment activity on a monthly basis. It includes debtor name, your account number, our account number, current balance, age of account (in months), date of the payment, whether it was paid to us or directly to you, total commissions, and amount due to you. This report does not reflect the total inventory; only those with payment activity. Actuary Report Report may be generated monthly, quarterly and/or annually and is available online allowing for "real time" collection performance data. It will display the number of accounts referred, amount listed, dollars collected, number of accounts paid in full, total active accounts, and a recovery factor percentage, all broken down by the month the account was referred. This is a 12 month report which also gives a cumulative breakdown during that same period, as well as for the previous 2 years. Client Status Report Report may be generated monthly, quarterly, annually, or upon request and gives a reconciliation of inventory as a whole. This will include the status of each account including paid in full, cancelled inventory, and active inventory with the amount referred and current balance due. Paid in Full Report Report will be generated monthly along with scheduled payment remittance to the State. Annual Report Report will be created annually to comply with the State's fiscal year end. Customized Reports A multitude of customized reports may be created in various formats based on the State's preferences and/or requirements. Our collection software allows for easy customized reporting and exporting. States Recovery Systems, Inc. I www.statesrecovery.com States Recovery S Y S T E M S I N C. Account Acknowledgement Report: Report is provided within 24-48 hours of new account submission. The report outlines the name, account number; amount referred of each account and provides a check - and -balance to the client as to the number of accounts and dollar amounts referred. STATES RECOVERY SYSTEMS, INC. 2491 SUNRISE BLVD P. O. BOX 2860 RANCHO CORDDVA, CA. 95670 916-631-7085 SAMPLEaL low OMU= 123 MAIN ST PAGE 1 SACRAMEMM. CA95M = FOAL{ W A( DGV 9 ME 395I. TO OUR COIiPCTIOW ILVAGEISMI SYSTEM. Y= M000WI i MCOONT t M A10AM ODA M=0 Aa YA' 1118119 ADAIH, OA m 5 2129.05 261256E 1118179 AWI11AEfIS, yA.®Rl S 1708.09 2612566 Njj 1118179 ADSTffi, JERdY 251. B4 2612666 1118179 64IO2p LAI S 1526. D7 2612546 1118179 BAFSR, WIILIAN y 3400. 00 2612566 1118119 CMTEN, SA 3 $ 155.00 2612596 1110179 CARTER, TORN S =09.62 2612546 1118179 DOUDLA9, tCWAAC ,y 1599.57 2612566 1318I79 EDWARO91 dC® ' 1T-07 2612516 1118179 ELLIS, 3== $ 100.00 2612546 1118379 LS'fAER, SIII. S 1049.59 2612566 1118119 LWAW9. D000 3 2612566 1118179 ISSv0., 06.70 y 261254E 1118179 o e:IVN, TEO 2OU-22 $ 205]-]] 26125fi6 1118179 SNISB, T. S 1454.07 2612566 1110179 ==I NIDOLE L y IN-00 2612566 1118179 5HIT0, nr-9N $ 115.00 2612566 U18179 SKIM, WICOAAD S =23.44 2612546 18 ACC=S MSI6 AYE0A6E Bltd0i6 I5 5 116].57 AWL K0 --> 4 iPLLI[ Ym for tN �r ry to to of Nr,rto4 to 9ou.} 4000unt4 M51 r4C41A our 9tw9t u[tuotloo. Wet, t"Iy yours, .uu.o.u.. uuu.....uuu......0 NSTQOIA BMW = u.0 u..♦u.u.. PLIQTIDW W @T'O8S AND •10 AVOID DD905SIBtL VIOLATION, •017 T62 ITIO DEOI COLILCTIOW L9ALTIM ACY, m E •OEEIIt ANY DEN'RN SY5 M S D TREY LYYTAL'1' YOW. •.LEASE NLPORT ALL D=T PAY00IWT3 WWARTLY. ............................ u.wu States Recovery Systems, Inc. I www.statesrecovery.com 4 4 4 4 3 States Recovery S Y S T E M S I N C. Monthly Trust Reconciliation: Report reflects payment activity on a monthly basis. It includes debtor name, your account number, our account number, current balance, age of account (in months), date of the payment, whether it was paid to us or directly to you, gross payment amount and amount due in fees. This report does not reflect the total inventory; only those with payment activity STATES RECOVERY SYSTEMS, INC. 2491 SUNRISE BLVD P O.BOX 2860 RANCHO CORDOVA, CA 95670 (916)631-7085 SAMPLE WENT 12M -G-15 2951 SUNRISE BLVD., SUITE 100 RANCHO CORDOVA, CA 95741 DEBTOR NAME MR &Y DATE YOURACCT9 ACCTV AGE PW TUTS' EUM 123465791110 WBI0UCH8Y, RAMELA S 987 11 WOOD, LANA L 3514867590 2UMM0. BFITINA M 9563547513 1 700 1102M 2563759 2 1692.50 110320 2155486 1 655.91 1302W MEW 1 320.91 110620 6543217 2 CURRENTTOTAES TRUST INVOICE 0211900000074 DATE NOV62020 RAGE 1 S/C IA10 RAID TOTAL DUE US YOU COMM YOU 50.00 75D 42 M SOAR 7.50 42.50 150.00 22.50 127M 500 75 425 20503 50.00 4825 206.75 UST NMIHZINEM USTENG 10 W AGING IN MONTHS UNDER 1 $ 200.OJ 2 $ 55.M 3 5 O.GD 4 5 D.GG 5 $ O.OJ 5&OVER $ OOD TOTALAMOWETmLLECIFD COU-E IION FEES ATTACHED IS OILQ990568 $ 255 00 5 4925 $ 206 75 States Recovery Systems, Inc. I www.statesrecovery.com States Recovery S Y S T E M S I N C. Actuary Report: Report may be generated monthly, quarterly and/or annually and is available online allowing for "real time' collection performance data. It will display the number of accounts referred, amount listed, dollars collected, number of accounts paid in full, total active accounts, and a recovery factor percentage, all broken down by the month the account was referred. This is a twelve month report which also gives a cumulative breakdown during that same period, as well as for the previous two years. COLLECTION ACTUARY ST6TfSREWYERV 5m5 .. W ME➢IREOf 56MP12 W12L MM/WMYY®Ua R 49l4EMEN15 lOf lD11LCIpX l0lGCIM TOI fdNCpIFD RECA P911O0 NO IMOUM A. 6MOV1I iPf Iq .0 MO YMMf Y YPI 0 a 0 0 0 0 0 0 0 O.OY A 620m IS 6.. 316 2W 1 8 1.911 0 0 Soft wi zo2o 0 a 0 0 0 0 0 0 0 0.ot wn m20 11 1. .1 ll® 1 e 21EO a 0 1. "Mm 0 0 a 0 0 o a o 0 oP' A Mo 0 0 0 0 0 0 a 0 0 o0t M. 2WO a In1 321 =7 2 2 0 0 0 IN M hf n20 3 965 321 W 1 2 321 0 0 66" Ian m20 1 M 322 322 0 1 0 0 0 100V. Ox m19 6 IM 313 M3 2 1 a 0 0 lwO ... 11 .1 317 191, 1 6 IW 0 0 553% MI MI, 0 a 0 0 0 0 0 0 0 0. O1M 12 MO 51 1Qm 319 10296 16 31 5411 0 0 fi53t lOf.9 11 53]6 316 LM 5 12 15fi2 0 0 109Y lOf m16 0 0 0 0 0 0 0 0 0 0Oi TOEPN o a o 0 0 0 0 0 0 o.D9 TOf4 51 1Q11 319 MM 19 33 WS 0 0 633 YOU YgIAO CMIC PAR... 60a1LR5 P1AQO FR WTYfY W "S USTYFdRS WIIfLIpM REARIS H W WO TIE MWM Of M S 5fY1M EM T. �MEPFSTPMDOTXEII"N.M MY If nATS MW KM RE T i165 YP L 10J 3n 6.42 33 21 dal2 0 ]ASTM o 0 0 a a 0 0 States Recovery Systems, Inc. I www.statesrecovery.com States Recovery S Y S T E M S I N C. Client Status Report: Report may be generated monthly, quarterly, annually, or upon request and gives a reconciliation of inventory as a whole. This will include the status of each account including paid in full, cancelled inventory, and active inventory with the amount referred and current balance due. STATES RECOVERY SYSTEMS, INC. 2491 S.. BWd RarI0o Cordova. CA 95VO (910)631-7o85(SOD)211-1435 JAN 1.2 1024:31 PREPARED FOR SAMPLE CLIENT CLIENT# 110 YOURACCOUNT# MAW SPOUSE DOR AMTREF OUR ACCOUNT# FORIR9MRKS OC DLP BALANCE PAGE I REMARKS 918000348B8 SmrIK REM 0381-20 M.M DISPUTED 2829158 00.20 = M A-3029485 SMITH. NICHOLASM SSMITH IW12-M 544AI SKIPACCOUNT '640824 00-25 544.41 80-M0 m WER, KAI HARRY 0381-211 1955229 GOOD LEAD 2WO152 0D21 1955220 9170O7WIW CALIFORNIA IN -HOME CARE 0381-20 0.53.36 SKIPACCOUNT _'629154 00-20 453.30 OD00434440 SMITH. NIOCLEK MER 04-12-20 23D648 CURRENT PROMISE °aic �O 0083 0888-211 198148 3'973 JOH/SON, TRACY M-01-20 4584.10 ( DPHONE 2e2a+`o 00-20 4504.10 9970ODMO DMCONSTRUCTION 0381-2D 178.80 SKIPACCOUNT 2628153 ODVC 178W &=)I48313 SMITH, KATHLEEN M 0381-20 285.M GOOD PHONE 2829157 0083 2M M 0051413 NICNOLSON INC C NICHOLSON 04-12-M 490.T2 WOO PHONE 28400R MAI 490.T2 SUMMARY INFORMATION ANOTOTALS SIMPLE CLIENT TOTALREFERRED 9 5 29372.11 TOTAL BALANCE S 29047,11 States Recovery Systems, Inc. I www.statesrecovery.com States Recovery S Y S T E M S I N C. Performance Aging Report: Report provides a twelve-month liquidation rate by month assigned. ..A. MI. „p. , A. , p, , A. . h, , /a . Iu , ,N . A. ehu a, a v vh. Nva . i,h. m .,m, • ..w v .N• .» v /v ai a i Ufa 'Na «a oe. '„a «a vJN a ss i..e• •/u o,a 1 - ,-a a Noa a s 4M c /v Sn,N i• 2 6,a v m • a m• va. �» + /a a .a•fa . _...o+ e.m oe... e..N ,» e�na •.n. •.o• ea» eA. •.,a. •«• •.ea• vv States Recovery Systems, Inc. I www.statesrecovery.com States Recovery S Y S T E M S I N C. Cancellation Report: Report provides a detail include reason for cancellation. STATES RECOVERY SYSTEM, INC. 2491 SUNFISH BLVD P. U. BOX 2860 RANCHO CORDOVA, CA. 95670 916-631-7005 SAMPLE CLIENT 1000 TRIAL JAH 1. 2020 123 WIN ST PAGE 1 SACRAMENTO. CA95M TB£ E IOIIING ACCOMM ARE ASSIGNED SO OM C0L_EC71ON NANAGEREBY SYSTQI- YOUR A[t00Yf 9 ACCOUNT &11L. ANOONT D.O.R OCR 6 GMCrt,en RntapN 1118179 A➢AM9, OANIv. 3 2129. BE 12122C 2f125fe C CELLJ BER 1110179 ANmLRi51 SANDRA $ 1708.07 110120 2612561 CANCEL PER CST 1118179 A737M, JRWY • 251.84 111520 2612566 CANCEL-D15FV7E 1118179 B.MRR. 121 3 153407 101620 2612566 CNICE.LD BAR 1118179 B.AAEA, NILLIA- 3 1400.00 110920 2612566 C3NC_ LC En LILO179 CARER, JA91C! 3 155.00 110920 2612566 M _aC BAR 1118179 CART 1 JO® 3 2209.6E 052520 2612566 1118179 CODGLA3, £.'T9ARD 3 1599.57 020720 2612546 CA: c'_a- EAR 1118179 ED6RRO5, JOBN s 1".07 111820 2612566 CAC--_-i EAR 1110179 ELLM, SSEYEN • 100.00 020920 2612566 CASc__--- Bn 1118179 E3=, JILL 3 1849.59 040120 2612566 .---._-_ 1118179 E"W3, DOOG 3 92.02 032220 261251f 1118179 FI3SA, A11Y 1f Of.10 121220 261256E L110179 PSAN, ED 3 2053.22 021620 261254f 1118179 3NI-1, A 3 1454.07 040120 2612566 DECEASEC 1110179 3N2-d, NICOLE S 3 150.00 0=320 Z612566 CANCII. -DI2P= 1130179 SKIM. RALFS 3 17500 121220 2612566 CARC£ LJ BAR LIL0179 SF2T. ' R COARD s 2225.44 021620 26125" 0AR •� ID lCCO.N7E CAtR=D. 3 20944.25 .XUW WE IF.. the ippezimicp b be of x e ce yeo. -.ese accouaca have Eem caocelle6 fza ooze sYacu. States Recovery Systems, Inc. I www.statesrecovery.com States Recovery S Y S T E M S I N C. Custom Reporting Options: States Recovery Systems, Inc. can provide a multitude of custom reporting options such as the sample outlined below. SAMPLE CITY AUGUST ACTIVE INVENTORY REPORT DATE PREPARED: Tuesday, August 20, 2020 STATES RECOVERY SYSTEMS, INC STATUS INVENTORY REPORT PREPARED BY, Cit Yokin 2491 sunn.e BlvdContact lnfonnadon: (916) 61 x1D5 RancM Cordova, CA 95670 cintiv.vaklinlastahsrecoverv.mm Sm. Kewri �f Total Aunts total C011eRetl Curren)Palana 30 $15900 $L311DJ 12 Citation A5PS6 Brady Miemel 03/30/]fi $117W $51w $Ei PaVmentAnangement 05678 CIUOon Wi Jones Susan lQ'i $SSW Ww $nzw Paymem Anangemi 21155 Citation p588]5 Gam. Me i9ue 30/23/16 $2 w $0W $ w fbW Contart Information 333888 CIU[Ion.58]58 Small hflry 1LC&16 $150.W Z.W $150.W Flied for Bankruntey 993B99 Citation NSI Peterson Sean 11AVM $102.W M.W $102W WWContxilrnortarmon LSfiN56 Citamon NBYVV Srri loll 12/mi $25L0] MW $252.W Pmmlaeto Pay ]83]89 Citation 09057 Jennings Mark 12/16/16 Sesm Mix $0m amain Full t23123 CommonNS^b1E Miller Brett D1/65/IJ $. 0] ry.W $326W romfo ceAaount 111M Oo ion A58SYv $ample Xlly 02/03/1] S65.W $9W $65.W New Business YT>LW Citation p5]Ah Gonzalez ...he. @/0 7 $mw Woo $103.W New Business States Recovery Systems, Inc. I www.statesrecovery.com In Proposal Due: Exhibit 2 Sample Letters May 18, 2022, 2:00 p.m. Letter Service - Hand Off Letters can be modified to meet the needs of the City of West Covina. Submitted By: States Recovery Systems, Inc. Cynthia A. Yaklin, President phone (916) 631-7085 fax (916) 329-1251 www.statesrecovery.com Duns Number: 19-636-0549 PERSONAL AND CONFIDENTIAL 1444 West Garvey Avenue South West Covina, California 91790 THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: Account#: 987654 Principal Balance: Interest Due: Fees Due: Total: Dear THOMAS 3 TEST, WEST COVINA 05/13/2022 Letter Service - Sample Hand Off Letter 1 This letter can be modified to meet the specific needs of the City of West Covina Our efforts to establish a payment arrangement for the amount due above have been unsuccessful. The Bank has reasonable payment options but you must contact us immediately to discuss the available options. If we do not hear from you within 10 days of this notice, the Bank may refer the account to a collection agency to attempt further collection. Hearing or speech impaired customers can call our direct TTY at 1(626) 939-8400 or use the Telecommunications Relay Service (TRS) by dialing 711 to connect with a TRS operator. Sincerely, Recovery Department 626-939-8400 Business Hours: M-F 8:00am - 4:30pm (PT) 1444 West Garvey Avenue South Costa Mesa, California 91790 THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: Account #: 987654 Principal Balance: Interest Due: Fees Due: Total: Dear THOMAS 3 TEST, 'JEST COVINA 05/13/2022 Letter Service - Sample Hand Off Letter 2 This letter can be modified to meet the specific needs of the City of West Covina Our efforts to establish a payment arrangement for the amount due above have been unsuccessful. City of West Covina has reasonable payment options but you must contact us immediately to discuss the available options. If we do not hear from you by May 23, 2022, Devons may refer the account to States Recovery Systems, Inc. to attempt further collection. You can reach them at (626) 939-8400 to pay after this date. Sincerely, Recovery Department (626)939-8400 Business Hours: M-F 8:00am - 4:30pm (PT) City of West Covina, 1444 West Garvey Avenue South, West Covina, California 91790 STATE OF CALIFORNIA SAMPLE - FRONT OF REGULATION F LETTER THOSTATES RECOVERY SYSTEMS, INC. To: 2491 SU 3 TEST VD 2491 SUNRISE BLVD GOLD SUNRISE RANCHO CORDOVA, CA. 95670 GOLD RIVER, CAA 95670-4344 (800) 211-1435 from 8am to 5pm PST, Monday to Friday Account#: 3780744 www.statesrecovery.com Pin#: 40656 STATES RECOVERY SYSTEMS, INC. is a debt collector. We are trying to collect a debt that you owe to ABC CLIENT - SAMPLE. This communication is from a debt collector, and any information obtained will be used for that purpose. Our Information shows You had an account from ABC CLIENT - SAMPLE with account number 987654. As of August 1, 2021 you owed: $888.88 Between August 1, 2021 and today, May 3, 2022: You were charged this amount of interest: + $66.97 You were charged this amount of fees: + $0.00 You paid or were credited this amount _ towards the debt: $0.00 Total amount of the debt now: $955.85 Notice: See reverse side for important information. Mail this form to: STATES RECOVERY SYSTEMS, INC. 2491 SUNRISE BLVD RANCHO CORDOVA, CA. 95670 THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 How can you dispute the debt?: Call or write to us by June 17, 2022, to dispute all or part of the debt. If you do not, we will assume that our information is correct. If you write to us by June 17, 2022, we must stop collection on any amount you dispute until we send you information that shows you owe the debt. You may also include supporting documents. You may use the form below or write to us without the form. What else can you do? Write to ask for the name and address of the original creditor, if different from the current creditor. If you write by June 17, 2022, we must stop collection until we send you that information. You may use the form below or write to us without the form. Go to www.cfpb.gov/debt-collection to learn more about your rights under federal law. For instance, you have the right to stop or limit how we contact you. Contact us about your payment options or make your payment online at www.statesrecovery.com. How do you want to respond"! Check all that apply: ❑ I want to dispute the debt because I think: ❑ This is not my debt. ❑ The amount is wrong. ❑ Other (please describe on reverse or attach additional information) ❑ I want you to send me the name and address of the original creditor. ❑ I enclosed this amount $ Make your check payable to STATES RECOVERY SYSTEMS, INC.. Include Account # 3780744 or pay online at www.statesrecovery.com SRS-LF01 STATE OF CALIFORNIA SAMPLE - BACK OF REGULATION F LETTER IMPORTANT DISCLOSURES This communication is from a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose. To ensure professional service and legal compliance, all incoming and outgoing telephone calls to States Recovery Systems, Inc. may be recorded and/or monitored. The balance on this notice may vary from day to day. The amount due on the day that you pay may be greater due to accruing interest. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligation. States Recovery Systems, Inc. will not submit a negative credit report to a credit reporting agency about this credit obligation until after June 17, 2022 . This statement is sent for informational purposes only and is not intended to collect, assess or recover a discharged debt from you, or as demand for payment from any individuals protected by the United States Bankruptcy Code. If this account is active or has been discharged in a bankruptcy proceeding, be advised this communication is for informational purposes only and is not an attempt to collect a debt. If your debt is past the statue of limitations, you are hereby notified of the following important consumer information: The law limits how long you can be sued on a debt. Because of the age of this debt we will not sue you for it. In many circumstances you can renew the debt and start the time period over for filing a lawsuit to recover this debt if you take specific action such as making a payment, or a written promise to pay. You should determine the effect of any action you take with respect to this debt. Correspondence Address: States Recovery Systems, Inc., 2491 Sunrise Blvd, Rancho Cordova, CA 95670 FOR CALIFORNIA RESIDENTS: The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov. The Rosenthal Act, California Civil code Section 1788.21, also requires that you notify your creditor of your change of name, address, or employment for any existing consumer credit. For more information regarding our Privacy Policy, please visit www.statesrecovery.com. *California Debt Collection License Number Pending SRS - LF01 Sample Second Notice P.O. Box 2860 Rancho Cordova, CA 95741-2860 PERSONAL AND CONFIDENTIAL Address Service Requested THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 States Recovery Systems, Inc. 2491 Sunrise Blvd. Rancho Cordova, CA 95670-4344 800-211-1435 Hours: 8am - 5pm Monday -Friday PST May 13, 2022 RE: ABC CLIENT - SAMPLE PRINCIPAL: $888.88 INTEREST: $69.41 OTHER CHARGES: $0.00 TOTAL $958.29 LAST PAYMENT DATE: OR 1(iINAI, AC(:(n1N1'#' 987654 ACCT#:3780744 PIN#:40656 This letter is a reminder that your past due account with the above listed creditor was assigned to this agency on 10/29/2021 for collection of the balance in full. This account remains outstanding after our previous attempts, this office will exhaust all reasonable collection efforts to recover this debt. To make payment arrangements, please contact an account representative at 800-211-1435. You may also make your payment online by visiting our website at www.statesrecovery.com You will need your account # and pin # to access your account information. States Recovery Systems, Inc. This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by law. This statement is sent for informational purposes only and is not intended to collect, assess or recover a discharged debt from you, or as demand for payment from any individuals protected by the United States Bankruptcy Code. If this account is active or has been discharged in a bankruptcy proceeding, be advised this communication is for informational purposes only and is not an attempt to collect a debt. Detach this portion and return with your payment in the envelope provided. ________"""'—"—""""-- (� ENCLOSDED IS MY CHECK/MONEY ORDER FOR PAYMENT IN FULL. 800-211-1435 MAKE YOUR PAYMENT ONLINE AT (� PAYMENT BY CREDIT CARD TYPE: V15A M W W W.STATESRECOVERY.COM Cardholder Name: Credit Card#: Expiration Date: Security Code (3 digit code on back of card): Amount to Charge: Authorized Signature: STATES RECOVERY SYSTEMS, INC. PO BOX 2860 RANCHO CORDOVA, CA 95741-2860 Date: THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: ABC CLIENT - SAMPLE TOTAL: $958.29 ACCOUNT#: 3780744 SRS-LS01 Sample Payment Reminder Letter P.O. Box 2860 Rancho Cordova, CA 95741-2860 PERSONAL AND CONFIDENTIAL Address Service Requested THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 We have received your payment. States Recovery Systems, Inc. 2491 Sunrise Blvd. Rancho Cordova, CA 95670-4344 800-211-1435 from 8am to 5pm PST, Monday to Friday Your next payment of $0.00 is due on or remit the balance in full. May 13, 2022 RE: ABC CLIENT - SAMPLE PRINCIPAL: $888.88 INTEREST: $69.41 OTHER CHARGES: $0.00 TOTAL $958.29 LAST PAYMENT DATE: UKI(i1N A I. A(:(:Ul1 N1#' 987654 ACCT#:3780744 PIN#:40656 This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Sincerely, States Recovery Systems, Inc. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by state law. Because the balance may vary from day to day, the balance on the day you pay may be greater. Detach this portion and return with your payment in the envelope provided. (� ENCLOSDED IS MY CHECK/MONEY ORDER FOR PAYMENT IN FULL. 800-211-1435 MAKE YOUR PAYMENT ONLINE AT (—) PAYMENT BY CREDIT CARD TYPE: V/SA M WWW.STATESRECOVERY.COM Cardholder Name: Expiration Date: Credit Card#: Security Code (3 digit code on back of card): Amount to Charge: $ Authorized Signature: STATES RECOVERY SYSTEMS, INC. PO BOX 2860 RANCHO CORDOVA, CA 95741-2860 Date: THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: ABC CLIENT - SAMPLE TOTAL: $958.29 ACCT#: 3780744 SRS-L112 Sample Paid in Full Letter P.O. Box 2860 Rancho Cordova, CA 95741-2860 PERSONAL AND CONFIDENTIAL Address Service Requested THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 DEAR THOMAS 3 TEST States Recovery Systems, Inc. 2491 Sunrise Blvd. Rancho Cordova, CA 95670-4344 800-211-1435 Hours: 8am - 5pm Monday -Friday PST May 13, 2022 RE: ABC CLIENT - SAMPLE OR IOI N A L ACCUL N' I #I 987654 This letter is to advise you that the above referenced account owed to ABC CLIENT - SAMPLE is paid in full and there is no remaining balance owed. If the payment was made by check or credit card this notice will be valid only if honored by your bank. Sincerely, States Recovery Systems, Inc. This communication is from a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose. This statement is sent for informational purposes only and is not intended to collect, assess or recover a discharged debt from you, or as demand for payment from any individuals protected by United States Bankruptcy Code. If this account is actively involved in or has been discharged in a bankruptcy proceeding, be advised this communication is for informational purposes only and is not an attempt to collect a debt. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by state law. c .WW'Iu Sample New Promise Letter P.O. Box2860 States Recovery Systems, Inc Rancho Cordova, CA 95741-2860 2491 Sunrise Blvd. PERSONAL AND CONFIDENTIAL Rancho Cordova, CA 956704344 800-211-1435 from 8am to 5pm PST, Monday to Friday Address Service Requested May 13, 2022 RE: ABC CLIENT - SAMPLE THOMAS 3 TEST 2491 SUNRISE BLVD PRINCIPAL: $888.88 INTEREST: $69.41 OTHER CHARGES: $0.00 GOLD RIVER, CA 95670-4344 TOTAL $958.29 LAST PAYMENT DATE: ORIGINAL ACCUl1N M 987654 ACCT#:3780744 PIN#:40656 DEAR THOMAS 3 TEST, Per our recent phone conversation you have agreed to pay $0.00 no later than . If you have any questions please contact this office. This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Sincerely, States Recovery Systems, Inc. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by state law. Because the balance may__v_ary_from dax to days the balance ITay_ma be greater Detach this portion and return with your payment in the envelope provided. (� ENCLOSDED IS MY CHECKIMONEY ORDER FOR PAYMENT IN FULL. 800-211-1435 MAKE YOUR PAYMENT ONLINE AT (� PAYMENT BY CREDIT CARD TYPE: V� M WWW.STATESRECOVERY.COM Cardholder Name: Credit Card#: Expiration Date: Security Code (3 digit code on back of card): Amount to Charge: Authorized Signature: STATES RECOVERY SYSTEMS, INC. PO BOX 2860 RANCHO CORDOVA, CA 95741-2860 Date: THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: ABC CLIENT - SAMPLE TOTAL: $958.29 ACCT#: 3780744 SRS-L113 Sample Broken Promise Letter P.O. Box 2860 Rancho Cordova, CA 95741-2860 PERSONAL AND CONFIDENTIAL Address Service Requested States Recovery Systems, Inc. 2491 Sunrise Blvd. Rancho Cordova, CA 95670-4344 800-211-1435 from 8am to 5pm PST, Monday to Friday May 13, 2022 RE: ABC CLIENT - SAMPLE PRINCIPAL: $888.88 INTEREST: $69.41 THOMAS 3 TEST OTHER CHARGES: $0.00 2491 SUNRISE BLVD TOTAL $958.29 LAST PAYMENT DATE: ORIUMAL ACCOUNT#[ 987654 GOLD RIVER, CA 95670-4344 ACCT#:3780744 PIN#:40656 A PAYMENT ARRANGEMENT MADE -- MUST BE PAID Permission to pay this indebtedness on a partial -payment basis was an accomodation to you and a courtesy by us. Because you failed to kkep your agreement we must now demand payent of the balance. Additional collection efforts can be avoided if your delinquent account is brought up to date. You may also make your payment on-line by visiting our website at www.statesrecovery.com. You will need your account # and pin # to access your information. We anticipate your prompt and faverable response. Sincerely, States Recovery Systems, Inc. This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by state law. Because the balance may vary from day to day, the balance on the day you pay may be greater. -------------------------------------------------------------------------------------------------------------- Detach this portion and remm with your payment in the envelope provided. (� ENCLOSDED IS MY CHECKIMONEY ORDER FOR PAYMENT IN FULL. 800-211-1435 MAKE YOUR PAYMENT ONLINE AT (� PAYMENT BY CREDIT CARD TYPE: VISA W W W.STATESRECOVERY.COM Cardholder Name: Credit Card#: Expiration Date: Security Code (3 digit code on back of card): Amount to Charge: $ Authorized Signature: Date: STATES RECOVERY SYSTEMS, INC. PO BOX 2860 RANCHO CORDOVA, CA 95741-2860 THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: ABC CLIENT - SAMPLE TOTAL: $958.29 ACCT#: 3780744 SRS-LB25 SStates Recovery Systems, Inc. Sample Account Closed Letter 2491 Sunrise Blvd. P.O. Box 2860 Rancho Cordova, CA 95670-4344 Rancho Cordova, CA 95741-2860 800-211-1435 Hours: 8am - 5pm Monday -Friday PST PERSONAL AND CONFIDENTIAL Address Service Requested THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 DEAR THOMAS 3 TEST May 13, 2022 RE: ABC CLIENT - SAMPLE OR IOI N A L ACCUI I N' I #I 987654 Please be advised we have closed and returned the above referenced account to ABC CLIENT - SAMPLE. If we had previously placed a negative report on your credit regarding this matter, consider this your notice that all credit bureaus have been notified to delete this reference from your credit file. Any further questions regarding this account should be directed to ABC CLIENT - SAMPLE. Sincerely, States Recovery Systems, Inc. This communication is from a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose. This statement is sent for informational purposes only and is not intended to collect, assess or recover a discharged debt from you, or as demand for payment from any individuals protected by United States Bankruptcy Code. If this account is actively involved in or has been discharged in a bankruptcy proceeding, be advised this communication is for informational purposes only and is not an attempt to collect a debt. MMV4.a11 Sample Legal Action Notice P.O. Box 2860 Rancho Cordova, CA 95741-2860 PERSONAL AND CONFIDENTIAL Address Service Requested THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 States Recovery Systems, Inc. 2491 Sunrise Blvd. Rancho Cordova, CA 95670-4344 800-211-1435 from 8am to 5pm PST, Monday to Friday May 13, 2022 RE: ABC CLIENT - SAMPLE PRINCIPAL: $888.88 INTEREST: $69.41 OTHER CHARGES: $0.00 TOTAL $958.29 LAST PAYMENT DATE: ORIGINAL ACCOUN M 987654 ACCT#:3780744 PIN#:40656 You have been notified that your seriously past due account with ABC CLIENT - SAMPLE MUST BE PAID IN FULL. However, payment in full has not been received and legal action seems to be our only means left to enforce collection. Above balance is current as of the date of this letter. PURSUANT TO SECTION 1033 OF THE CODE OF CIVIL PROCEDURE YOU ARE HEREBY NOTIFIED THAT LEGAL ACTION COULD RESULT IN A JUDGMENT AGAINST YOU THAT WOULD INCLUDE COSTS OF THE FILING FEES, SERVICE OF PROCESS AND ATTORNEY FEES PURSUANT TO CCP 1717 OR CCP 1717.5 IN ADDITION TO THE AMOUNT YOU OWE. Therefore, we will look for your PAYMENT IN FULL to be received by return mail so we will not have to resort to this action. Because the balance may vary from day to day, the balance on the day you pay may be greater. Sincerely, States Recovery Systems, Inc. This communication is from a debt collector. This is an attempt to collect a debt. Any information obtained will be used for that purpose. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by state law. Payment of a debt by a check which is dishonored will be assessed a fee as authorized by state law. Because the balance may vary from day to day, the balance on the day you pay may be greater. Detach this portion and return with your payment in the envelope provided. (� ENCLOSDED IS MY CHECKIMONEY ORDER FOR PAYMENT IN FULL. 800-211-1435 MAKE YOUR PAYMENT ONLINE AT (� PAYMENT BY CREDIT CARD TYPE: �V M WWW.STATESRECOVERY.COM Cardholder Name: Credit Card#: Expiration Date: Security Code (3 digit code on back of card): Amount to Charge: $ Authorized Signature: STATES RECOVERY SYSTEMS, INC. PO BOX 2860 RANCHO CORDOVA, CA 95741-2860 Date: THOMAS 3 TEST 2491 SUNRISE BLVD GOLD RIVER, CA 95670-4344 RE: ABC CLIENT - SAMPLE TOTAL: $958.29 ACCT#: 3780744 SRS-La70