Staff report recommending approval of an ... - City of Inglewood
Staff report recommending approval of an ... - City of Inglewood
Staff report recommending approval of an ... - City of Inglewood
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1 that lists the commissions earned by LES for collection service agreements <strong>an</strong>d the<br />
2 corresponding <strong>City</strong> commission. The information provided in Contractor’s monthly<br />
3 commission <strong>report</strong> shall be subject to verification by <strong>City</strong>. <strong>City</strong> will generally process<br />
4 <strong>an</strong>d pay invoices within forty five (45) days <strong>of</strong> receipt.<br />
5 2.1 Contractor shall provide <strong>City</strong> with monthly <strong>City</strong> <strong>an</strong>d <strong>City</strong> Client<br />
6 statements <strong>an</strong>d reconciliation by the twenty-fifth (25th) <strong>of</strong> each month. A penalty <strong>of</strong><br />
7 one percent (1%), per collection service account, may be imposed on Contractor for<br />
8 failure to provide such statements <strong>an</strong>d reconciliations as required. Additionally, <strong>City</strong><br />
9 may impose a separate penalty <strong>of</strong> one percent (1%) on all collection account<br />
10 agreements, if Contractor fails to disburse <strong>City</strong> <strong>an</strong>d/or <strong>City</strong> Client funds within sixty<br />
ii (60) days <strong>of</strong> receipt.<br />
12 2.2 Contractor shall pay <strong>City</strong> a commission <strong>of</strong> eleven percent (11%) on all<br />
13 fees paid to Contractor on all renewing <strong>an</strong>d new <strong>City</strong> agreements obtained by<br />
14 Contractor <strong>an</strong>d approved by <strong>City</strong>.<br />
15 2.3 If <strong>City</strong> elects to exercise its option to extend the term <strong>of</strong> this Agreement,<br />
16 <strong>City</strong>’s commission from Contractor shall increase from eleven percent (11%) to twelve<br />
17 <strong>an</strong>d one-half percent (12.5%) on all collection fees paid to Contractor on all renewing<br />
18 <strong>an</strong>d new <strong>City</strong> agreements obtained by Contractor <strong>an</strong>d approved by <strong>City</strong>, less a FTB<br />
19 collection reimbursement fee <strong>of</strong> two dollars <strong>an</strong>d fifty cents ($2.50) per account.<br />
20 2.4 Contractor shall pay <strong>City</strong> a commission <strong>of</strong> five percent (5%) <strong>of</strong> net fees<br />
21 paid to Contractor on <strong>an</strong>y new California collection service agreement, with <strong>an</strong>nual<br />
22 citations less th<strong>an</strong> 500,000, obtained by Dunc<strong>an</strong> Solutions, Inc. or LES in which <strong>City</strong><br />
23 referred <strong>an</strong>d/or assisted in obtaining. Contractor <strong>an</strong>d <strong>City</strong> may negotiate the<br />
24 commission on accounts greater th<strong>an</strong> 500,000 <strong>an</strong>nual citations. This subsection is<br />
25 effective for <strong>an</strong>y collection service agreements entered into after J<strong>an</strong>uary 1, 2011.<br />
26 2.5 Fr<strong>an</strong>chise Tax Board (FTB) Full Service Process. The st<strong>an</strong>dard eleven<br />
27 percent (11%) commission rate does not apply to FTB collection services. Contractor<br />
28 shall pay <strong>City</strong> a commission <strong>of</strong> thirty-three percent (33%) <strong>of</strong> net collection fees paid to<br />
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