PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS

Transcription

1 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS THIS AGREEMENT is made and entered into this day of, 2010 by and between the CITY OF OVERLAND PARK, KANSAS, hereinafter referred to as CITY, and LINEBARGER GOGGAN BLAIR & SAMPSON, LLP, hereinafter referred to as FIRM. SECTION I - SCOPE OF WORK The FIRM shall provide legal services regarding the collection of debts owed to the Overland Park Municipal Court (the Court ) in accordance with K.S.A , as amended, to the full satisfaction of the Court and in conformance with the Request for Qualifications to Provide Legal Services for the Collection of Delinquent Court Fines and Costs issued by the CITY on December 23, 2009, (the RFQ ) as well as the FIRM s response to the RFQ (the Response ). The RFQ and the Response are incorporated herein by this reference. Within sixty (60) days of the execution of this Agreement the parties will execute Addendum No. 1 setting forth the details regarding the agreed upon process for referral and collection hereunder. SECTION II - COMPENSATION As compensation and fee for services provided pursuant to this Agreement, and as authorized by applicable Kansas law, CITY agrees the firm can collect a fee equal to thirty-three percent (33%) of the total amount collected for the CITY on all accounts referred for collection pursuant to this Agreement. FIRM shall pay over monies collected pursuant to this Agreement daily by ACH or wire transfer, or in such other manner or schedule as agreed in writing between the parties based upon administrative convenience and preference.. FIRM will submit a monthly account reconciliation statement/invoice reflecting all amounts collected including any collection fee due the FIRM for those monies collected by the CITY on accounts referred to FIRM for collection pursuant to this Agreement. CITY shall pay over fees due to FIRM on a monthly basis, in a manner agreed by the parties, no later than the 30 th day following the end of the calendar month within which the CITY receives the monthly reconciliation statement/invoice from FIRM. SECTION III - DISPUTE RESOLUTION CITY and FIRM agree that disputes relative to the work performed should first be addressed by negotiations between the parties. If direct negotiations fail to resolve the dispute, the party initiating the claim that is the basis for the dispute shall be free to take such steps as it deems necessary to protect its interests; provided, however, that notwithstanding any such dispute FIRM shall proceed with the work as per this Agreement as if no dispute existed; and provided 1

2 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS further that no dispute will be submitted to arbitration without the parties express written consent. SECTION IV - TERMINATION Either party may terminate this Agreement by providing written notice of such termination to the other party. If the CITY elects to terminate, upon receipt of such notice from CITY, the FIRM shall: (1) immediately cease all work; and (2) meet with CITY and determine what work, if any, shall be required of FIRM in order to bring the Agreement to a reasonable termination in accordance with the request of the CITY. SECTION V - ASSIGNMENT Parties hereto agree that neither shall assign, sublet or transfer their interest in this Agreement without the written consent of the other and further agree that this Agreement binds the parties, their successors, trustees, assignees and legal representatives. SECTION VI - PRIOR VERBAL OR WRITTEN STATEMENTS NOT BINDING It is understood and agreed that the written terms and provisions of this Agreement shall supersede all prior verbal and written statements of any and every official and/or other representative of the CITY and FIRM and such statements shall not be effective or be construed as entering into, or forming a part of, or altering in any way whatsoever, the written Agreement. In the event that the CITY issues a purchase order, work order, invoice or similar document relating to services performed, such purchase order or similar document shall be for the CITY s administrative purposes only and will not supplement, supersede, modify or affect any of the terms and conditions set forth herein. SECTION VII - INDEPENDENT CONTRACTOR FIRM is an independent contractor and as such neither FIRM nor its personnel are agents or employees of the CITY. SECTION VIII - HOLD HARMLESS, INDEMNIFICATION A. Definitions. For purposes of indemnification requirements, the following terms shall have the meanings set forth below: 2

3 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS 1. FIRM means and includes the FIRM, all of its employees, agents and assignees, and all of its affiliates and subsidiaries, its subcontractors and/or assignees and their respective servants, agents and employees; and 2. Loss means any and all loss, damage, liability or expense of any nature whatsoever, whether incurred as a judgment, settlement, penalty, fine or otherwise (including attorney s fees and the cost of defense), in connection with any action, proceeding, demand or claim, whether real or spurious, for injury, including death, to any person or persons or damages to or loss of, or loss of the use of, property of any person, firm or corporation, including the parties hereto, which arise out of or are connected with, or are claimed to arise out of or be connected with, the performance of this Agreement whether arising before or after the completion of the work required hereunder. B. For purposes of this Agreement, FIRM hereby agrees to indemnify, defend and hold harmless the CITY, its employees and agents from any and all Loss where Loss is caused or incurred or alleged to be caused or incurred in whole or in part as a result of the negligence or other actionable fault of the FIRM. It is agreed as a specific element of consideration of this Agreement that this indemnity shall apply notwithstanding the joint, concurring or contributory or comparative fault or negligence of the CITY or any third party and, further notwithstanding any theory of law including, but not limited to, a characterization of the CITY s or any third party s joint, concurring or contributory or comparative fault or negligence as either passive or active in nature; provided, however, that the FIRM s obligation hereunder shall not include amounts attributable to the fault or negligence of the CITY. Nothing in this section shall be deemed to impose liability on the FIRM to indemnify the CITY for Loss when the CITY s negligence or other actionable fault is the sole cause of Loss. SECTION IX - NON-DISCRIMINATION AND OTHER LAWS A. FIRM agrees that: 1. the FIRM shall observe the provisions of the Kansas Act Against Discrimination and shall not discriminate against any person in the performance of work under the present Agreement because of race, religion, color, sex, disability, national origin ancestry or age; 2. in all solicitations or advertisements for employees, the FIRM shall include the phrase, equal opportunity employer, or a similar phrase to be approved by the Kansas Human Rights Commission (Commission); 3. if the FIRM fails to comply with the manner in which the FIRM reports to the Commission in accordance with the provisions of K.S.A and 3

4 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS amendments thereto, the FIRM shall be deemed to have breached the present Agreement and it may be canceled, terminated or suspended, in whole or in part, by the CITY; 4. if the FIRM is found guilty of a violation of the Kansas Act Against Discrimination under a decision or order of the Commission which has become final, the FIRM shall be deemed to have breached the present Agreement and it may be canceled, terminated or suspended, in whole or in part, by the CITY; and 5. the FIRM shall include the provisions of subsections (A)(1) through (4), above in every subcontract or purchase order so that such provisions will be binding upon such subcontractor or vendor. The provisions of this section shall not apply if: 1. FIRM employs fewer than four employees during the term of this Agreement; or 2. FIRMS contracts with the CITY cumulatively total $5,000 or less during the fiscal year of the CITY. B. The FIRM further agrees that the FIRM shall abide by the Kansas Age Discrimination In Employment Act (K.S.A et seq.) and the applicable provision in the Americans With Disabilities Act (42 U.S.C et seq.) as well as all federal, state and local laws, ordinances and regulations applicable to this project and to furnish any certification required by any federal, state or local governmental agency in connection therewith. SECTION X - PROHIBITION AGAINST CONTINGENT FEES FIRM warrants that it has not employed or retained any person, firm, or corporation, other than a bona fide employee working solely for FIRM, to solicit or secure the awarding of this Agreement based upon an arrangement that the person, firm or corporation would receive any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the award of this Agreement. For the breach or violation of the foregoing provision, the CITY shall have the right to terminate the Agreement without liability and, at its discretion to deduct from the compensation contemplated herein, or otherwise recover the full amount of such fee, commission, percentage, gift or consideration. SECTION XI - APPLICABLE LAW, SEVERABILITY, NONWAIVER This Agreement shall be governed by and construed by the laws of the State of Kansas. The FIRM shall comply with applicable Federal law and regulations, Kansas law and regulations, and applicable City of Overland Park ordinances. 4

5 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS The FIRM does hereby consent and yield to the jurisdiction and venue of the State Courts of the State of Kansas, County of Johnson, and does hereby formally waive any pleas of jurisdiction and venue on account of the residence elsewhere. In the event that any provision(s) of this Agreement shall for any reason be held invalid, illegal or unenforceable, the invalidity, illegality or unenforceability of that provision(s) shall not affect any other provision(s) of this Agreement, and it shall further be construed as if the invalid, illegal or unenforceable provision(s) had never been a part of this Agreement. The waiver of or failure to enforce any term or condition of this Agreement shall not be construed as a waiver of any other term or condition. SECTION XII - DATA SECURITY FIRMshall comply with the requirements of the Payment Card Industry (PCI) Data Security Standards including the Cardholder Information Security Program (CISP) of Visa and the Site Data Protection Program (SDP) of MasterCard, as applicable, and any modifications to, or replacements of such programs that may occur from time to time. FIRM further warrants that all components of the FIRM s online payment system comply with all (NACHA) National Automated Clearing House Association operating rules and regulations regarding the security of ACH transfers and any modifications or replacements of such rules and regulations from time to time. FIRM further warrants that it shall comply with laws related to: (i) payment devices and (ii) electronic fund transfers; and (iii) confidential treatment information. FIRM also shall ensure that all third parties that FIRM engages to perform any function related to the online payments under this Agreement complies with the above referenced PCI and NACHA rules and regulations and with all other applicable laws. FIRM agrees that it is responsible for its own actions or inactions regarding the terms and conditions of this Agreement and further, that FIRM is responsible for any third party that FIRM engages to perform any component services related to the terms and conditions of this Agreement, to include, but not limited to compliance with applicable laws and those regulations set forth above. FIRM agrees it will execute and deliver to CITY all documents that may from time to time be reasonably necessary to verify FIRM s compliance with the requirements of this paragraph. Confidentiality of Cardholder and Transaction (Credit Card, echeck) Information. FIRM shall, at all times protect the confidentiality of cardholder and transaction information in accordance with all applicable laws and payment network regulations. FIRM shall not disclose cardholder or transaction information to any third party, except to an agent of FIRM assisting in completing a transaction, or as required by applicable laws or the payment network regulations. FIRM must maintain all systems and media containing cardholder and transaction information in a secure manner to prevent access by or disclosure to anyone other than its authorized personnel. FIRM must maintain cardholder and transaction information for such time periods as may be required by applicable laws and the payment network regulations and thereafter destroy, in a manner that will render the data unreadable, all such media that FIRM no longer deems necessary or appropriate to maintain. Further, FIRM must take all steps reasonably necessary to ensure that cardholder and transaction information is not disclosed or otherwise misused. 5

6 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS Data Compromise. FIRM agrees to notify CITY immediately by the quickest means possible, if FIRM knows or suspects that cardholder information has been accessed or used without authorization. The notification referenced above must then be confirmed in writing within two (2) business days. FIRM must take immediate steps to preserve all business records, logs and electronic evidence and contact local law enforcement authorities including the local FBI and U.S. Secret Service if it becomes aware of cardholder information being accessed or use without authorization. FIRM must work with City to rectify any issues that may result from the improper accessing or use of cardholder information without authorization, including providing City with (and obtaining any waivers necessary for) all relevant information to verify FIRM s ability to prevent future data incidents in a manner consistent with this Agreement. Without waiving any of CITY s rights and remedies, FIRM understands and agrees it is liable to the CITY for any damages it suffers for all fraudulent transactions related to such data incident and all costs CITY incurs as a result of such improper and/or illegal use of cardholder information, including claims from third parties and all costs related to the notification of cardholders and cancellation and re-issuance of cards, forensic investigation, and PCI review for a report of compliance. SECTION XIII - AGREEMENT TERM The term of this Agreement shall commence on date above written and shall continue for a period of one year. Thereafter, this Agreement will renew annually on the anniversary of the date of execution of this Agreement unless otherwise terminated by either party. SECTION XIV - SUBCONTRACTORS FIRM shall not subcontract any of the work or services required by this Agreement without the prior written approval of the CITY. Should the FIRM request and the CITY agree to work being subcontracted, the FIRM shall be as fully responsible to the CITY for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by said subcontractors, as FIRM is for the acts and omissions of the persons it directly employs. SECTION XV - INSURANCE REQUIREMENTS The FIRM shall secure and maintain, throughout the duration of this Agreement, insurance (on an occurrence basis unless otherwise agreed to) of such types and in at least such amounts as required herein. Any coverage provided by a Claims-Made form policy must contain a three year tail option, extended reporting period, or must be maintained for three years post Agreement. The FIRM shall provide certificates of insurance and renewals thereof on an approved Acord form. Certificates of insurance for professional liability may be issued on forms provided by the insurer. The CITY shall be notified by receipt of written notice from the insurer at least thirty (30) days prior to material modification or cancellation of any policy listed on the Certificate. 6

7 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS The CITY will only accept coverage from an insurance carrier who offers proof that it: A. Is licensed to do business in the State of Kansas; B. Carries a Best s policy holder rating of A- or better; and C. Carries at least a Class VII financial rating. OR is a company mutually agreed upon by the CITY and FIRM A. COMMERCIAL GENERAL LIABILITY POLICY Each Occurrence: $ 1,000,000 General Aggregate: $ 2,000,000 Policy must include the following conditions: 1. Premises and Operations 2. Broad Form Contractual/Contractually Assumed Liability 3. Personal Injury B. AUTOMOBILE LIABILITY Policy shall protect the FIRM against claims for bodily injury and/or property damage arising from the ownership or use of all owned, hired and/or non-owned vehicles and must include protection for either: 1. Any Auto OR 2. All Owned Autos (if any); Hired Autos; and Non-Owned Autos. C. WORKERS COMPENSATION Limits- Each Accident, Combined Single Limits, Bodily Injury and Property Damage: $ 1,000,000 This insurance shall protect the FIRM against all claims under applicable state workers compensation laws. The FIRM shall also be protected against claims for injury, disease or death of 7

8 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS employees which, for any reason, may not fall within the provisions of workers compensation law. The liability limits shall not be less than the following: Workers Compensation: Statutory Employer s Liability: Bodily Injury by Accident Bodily Injury by Disease Bodily Injury by Disease $100,000 each accident $500,000 policy limit $100,000 each employee D. PROFESSIONAL LIABILITY The FIRM shall maintain throughout the duration of this Agreement Professional Liability Insurance in an amount not less than One Million Dollars ($1,000,000.00), and shall provide the CITY with certification thereof. E. CRIME The FIRM shall maintain throughout the duration of this Agreement a commercial crime policy, including employee theft. The minimum limit shall be $1,000,000 per loss. The policy must include a Clients Property endorsement CR or similar. F. SUBCONTRACTOR S INSURANCE If a part of the Agreement is to be sublet, the FIRM shall either: 1. Cover all subcontractors in its insurance policies; or 2. Require each subcontractor not so covered to secure insurance which will protect against all applicable hazards or risks of loss as and in the minimum amounts designated. SECTION XVI - ADJUSTMENT TO AGREEMENT TERMS Changes to the terms of this Agreement may be made only in writing and must be approved by the CITY and the FIRM. The Presiding Judge of the CITY shall be authorized to execute Addendums and Amendments to this Agreement on behalf of the CITY. For purposes of sending notice under the terms of this contract, all notices from CITY shall be sent to FIRM by certified United States mail, or delivered by hand or by courier, and addressed as follows: 8

9 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS Linebarger Goggan Blair & Sampson, LLP Attention: Director of Client Services P. O. Box Austin, TX and to Scott McGlasson Linebarger Goggan Blair & Sampson, LLP 819 Walnut, Suite 309 Kansas City, MO For purposes of sending notice under the terms of this Agreement, all notice from the FIRM shall be sent to the CITY by certified United States mail, or delivered by hand or by courier, and addressed as follows: Presiding Judge, Karen Arnold-Burger Overland Park Municipal Court Foster Overland Park, KS Robin Barnard Overland Park Municipal Court Foster Overland Park, KS and to Tammy M. Owens Overland Park Law Department 8500 Santa Fe Overland Park, KS SECTION XVII - ENTIRE AGREEMENT AND ORDER OF PREFERENCE This Agreement, along with the RFQ, all attachments thereto, and the FIRM s written response, comprises entire Agreement between the parties hereto with respect to the subject matter hereof, and all prior and contemporaneous understandings, representations and agreements are merged therein or superseded thereby. Any conflict to the provisions of this Agreement and the documents incorporated by reference shall be determined by the following priority order: 9

10 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS A. Written modifications and addenda to this Agreement; B. This Agreement; C. The RFQ including any addenda; and D. The Response including any addenda, appendices and exhibits. SECTION XVIII - EXECUTION OF CONTRACT IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their authorized officials on the day and year first above written. CITY OF OVERLAND PARK, KANSAS LINEBARGER GOGGAN BLAIR & SAMPSON, LLP Carl R. Gerlach Mayor Name: Title: Date Date ATTEST: Marian Cook City Clerk APPROVED AS TO FORM: Tammy M. Owens Senior Assistant City Attorney 10

11 PROFESSIONAL SERVICES AGREEMENT FOR COLLECTION OF DELINQUENT ACCOUNTS LIMITED LIABILITY PARTNERSHIP ACKNOWLEDGMENT STATE OF ) ) ss. COUNTY OF ) BE IT REMEMBERED, that on this day of, 20, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came, of LINEBARGER GOGGAN BLAIR & SAMPSON, LLP, a limited liability partnership duly organized and existing under and by virtue of the laws of ; who is personally known to me to be the and who is personally known to me to be the same person who executed as such officer the within instrument on behalf of said limited liability partnership, and such person duly acknowledged the execution of the same to be the act and deed of said limited liability partnership. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal the day and year last above written. MY APPOINTMENT EXPIRES: Notary Public 11

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13 CITY OF OVERLAND PARK, KANSAS REQUEST FOR QUALIFICATIONS TO PROVIDE LEGAL SERVICES FOR THE COLLECTION OF DELINQUENT COURT FINES AND COSTS DUE: 2:00 P.M. FEBRUARY 8,

14 REQUEST FOR QUALIFICATIONS TO PROVIDE LEGAL SERVICES FOR THE COLLECTION OF DELINQUENT COURT FINES AND COSTS 1.0 GENERAL 1.1 Introduction The City of Overland Park, Kansas ("City") is issuing this Request for Qualifications ("RFQ") to solicit qualification statements ("Qualification Statement(s)") from qualified attorneys or law firms to provide legal services regarding the collection of debts owed to the Overland Park Municipal Court ("Court"). It is the City's intention, through this RFQ, to evaluate Qualification Statements received, to verify the information provided, and then to select the most qualified Respondent with the intent to negotiate an agreement in the best interests of the City and the public. 2.0 SCOPE OF SERVICES 2.1 Overview of Project To be considered a qualified Respondent, the individual or entity must be able to provide the following legal services to the City: programming assistance to enable secure data transfers from the City that maintain data integrity; preferably web-based collection software to support all collection operations; specialized collection notices; media campaigns; call center personnel and technology; and legal resources to ensure compliance with all applicable federal, Kansas and local laws, regulations and ordinances to specifically include related debtor-creditor transactions. The term "debts owed to the Court" as used in this RFQ means any assessment of Court costs, fines, fees and also the assessment of moneys expended by the City in providing counsel and other defense services to indigent defendants or other charges which a judge has ordered to be paid to the Court, and which remain unpaid in whole or in part for a period of ninety (90) days since payment was last ordered or since last partial payment was received and includes any interest or penalties on such unpaid amounts as provided for in judgment or by law. "Debts owed to the Court" also includes the cost of collection when collection services are utilized. See K.S.A , as amended. 3.0 REQUIREMENTS AND SERVICES TO BE PROVIDED 3.1 Minimum Qualifications A. The Respondent shall be neither a creditor nor an officer or employee of the City. B. The Respondent shall be licensed to practice law in the State of Kansas. C. The Respondent shall be licensed, registered, and authorized to collect debt in 2

15 Overland Park, Kansas, and throughout the United States. D. The Respondent shall have sufficient knowledge of all applicable federal, Kansas and local laws and regulations regarding debt collection, including in particular the Fair Debt Collection Practices Act ("FDCPA"). E. The Respondent shall be able to demonstrate the ability to skip trace, mail, call, and litigate a high volume of collection accounts. F. The Respondent shall demonstrate the capability to provide computer technical support for any initial programming required to transfer all necessary collection data to Respondent in a timely manner. G. The Respondent shall institute methods specified by the City for safeguarding the rights of individuals subject to collection. All practices must comply with Kansas and federal consumer and collection practice laws, including the FDCPA, where applicable. H. Respondent shall comply with the procedures set forth in K.S.A , as amended, in the collection of debts owed to the Court. Respondent shall also comply with any other applicable state, federal or local laws concerning debt collection. I. The Respondent shall have been involved in the collection of delinquent court receivables for at least three (3) years. J. The Respondent shall be ineligible to provide the legal services set forth in this RFQ if the Respondent, or owner, operator, or any stockholder of Respondent, has been convicted of a felony. 3.2 Minimum Requirements A. The Respondent shall provide a detailed resume(s) of qualified and experienced personnel who will be the main contact to the City. B. The Respondent shall list the number of current government clients for which it provides the same or similar type legal services. C. The Respondent shall provide a detailed description of three (3) comparable contracts (similar in scope of services to those requested herein) which the Respondent has either ongoing or completed within the past three (3) years. The description should identify for each project: (1) the client; (2) the description of work; (3) the total dollar value of the contract; (4) the contract duration; (5) a client contact, telephone number; and (6) a statement as to whether the Respondent was the prime contractor or subcontractor for each of these projects. 3

16 D. The Respondent shall have filed with the Secretary of State a surety bond or certificate of deposit in the amount of Fifty Thousand Dollars ($50,000). E. The Respondent shall have registered with the Secretary of State. F. The Respondent shall accept records from the City in an electronic format. G. The Respondent shall ensure the confidentiality and security of the City's data. H. To the extent the Respondent accepts payment by payment cards, the Respondent's procedures shall be certified as compliant with the Payment Card Industry (PCI) Data Security Standard. I. Respondent shall keep records of all disputes and complaints for a period of five (5) years following contract expiration or termination. Respondent shall investigate the same in a timely fashion, and report the results to the City as requested. J. The Respondent shall remit to the City, on a monthly basis, one hundred percent (100%) of all debts owed to the Court collected by Respondent. K. The Respondent shall prepare and submit all requested and required reports on or before the fifth (5 th ) day of each month. Any and all regular reoccurring management reports which may, initially or at any future date, be required by the City are to be prepared and submitted to the City by the Respondent. L. Respondent shall prepare a monthly status report evidencing all court fees, fines and costs collected by Respondent for each account and a total amount collected for the month. This status report shall contain the items set forth in K.S.A , as amended. M. The Respondent shall also prepare any and all additional management reports, and relevant statistical and financial data in a timely fashion. The Respondent shall prepare an acknowledgement report that indicates the number of accounts, date received and total amount referred to Respondent. The Respondent shall prepare a cancellation report showing the reason for the return of an account to the City and the outstanding account balance. This report shall include information relative to any legal action undertaken and any judgment issued. The report shall indicate the reason(s) that collection activity has stopped and whether the account is uncollectible. Respondent shall prepare a performance report with a summary of aged receivables, as determined by the City in the City's sole discretion, by category of debt and a report that shows the number of accounts assigned to Respondent, total number of accounts collected, the collection rate, and the number and percentage of accounts returned to the City. N. Respondent shall prepare other reports which the City may require, such as 4

17 special reports as they relate to the collection of these accounts or other services provided by the Respondent. O. No account shall be settled for less than the full amount owed to the City, unless otherwise directed in writing by the City. P. There shall be no cost whatsoever to the City for accounts deemed uncollectible or returned as uncollected or recalled. Q. The Respondent shall commence services for the program within thirty (30) calendar days after contract award. R. Respondent shall provide notice of any planned legal action for any collection account and shall obtain prior approval from the City's Law Department before proceeding with any legal action on an account. S. Respondent shall be responsible for returning collection accounts to the City immediately upon recall. The selected Respondent shall stop all collection activity immediately when notified by the City to cancel any account(s). T. Respondent shall transfer all accounts to the City when, in the opinion of the selected Respondent, collection efforts have ended, or within thirty (30) calendar days after termination of any contract executed as a result of this RFQ. U. Respondent shall be solely responsible for all costs and expenses associated with performance required by the Agreement, including, but not limited to, all necessary developing, copying, faxing, and postal costs. V. The City, in the City's sole and complete discretion, may transfer delinquent debts owed to the Court to the Respondent for the Respondent to provide legal services regarding the collection of the accounts. W. The City shall determine the most effective method of transferring accounts to the selected Respondent. The City will notify the selected Respondent when accounts are ready for transfer or arrange a periodic automatic transfer. X. The City reserves the right, at any time, for any reason whatsoever and without penalty, to cancel or recall any assigned account(s) and will not be responsible for any costs incurred by the selected Respondent for the recalled account(s). Y. The City reserves the right to reevaluate any assigned account(s) will notify the selected Respondent of any adjustments or corrections made to the amount due of any collection account assigned to Respondent. 5

18 4.0 PRESENTATION OF QUALIFICATION STATEMENTS The Qualification Statements shall be written in sufficient detail to permit the City to conduct a meaningful evaluation of the proposed services. In the event that a Respondent wishes to take exception to any of the terms, conditions or specifications contained herein, such exceptions must be detailed in the cover letter. 4.1 Format of Qualification Statement The response should be presented in the format indicated below and should include the following information: A. Cover Letter - This page shall include the RFQ #, Respondent's name, address, contact person, and contact telephone number. B. Table of Contents - All pages of the Qualification Statements, including the enclosures, are to be clearly numbered and should correspond to the table of contents. 4.2 Minimum Qualifications and Requirements of Qualification Statements Address the qualifications and requirements as outlined in Section Experience/Qualifications of the Respondent A. State the number years that the Respondent has been in existence and has been performing legal services regarding the collection of delinquent accounts. B. Describe the Respondent's experience in performing legal services as requested in this RFQ. Respondent shall provide written verification of registration with the Kansas Secretary of State and any necessary documentation as a debt collector in the State of Kansas. This includes providing proof of the required Fifty Thousand Dollar ($50,000) surety bond or certificate of deposit filed with the Kansas Secretary of State. C. Describe any other experiences related to the work and services described in Section 2.0, Scope of Services, of this RFQ. D. Describe any features that distinguish the Respondent and its services from other firms who provide legal services regarding the collection of delinquent accounts. E. Provide documentation of any and all past or pending lawsuits filed against the Respondent. F. Provide documentation of any and all past and pending complaints against the Respondent filed by a debtor with a third party. 6

19 4.4 Technical Ability A. Provide a general description of how Respondent will provide the legal services requested in this RFQ. B. Indicate how the Respondent will address community relations while maximizing collection results. C. Describe Respondent's collection procedures. This description should include, but not necessarily be limited to, a comprehensive explanation of how collection accounts are handled upon referral to the Respondent, skip tracing resources, the Respondent's method(s) relative to how the City will be notified concerning the status of collection accounts, and how deposits are handled by Respondent. D. Describe the Respondent's settlement procedures. E. Describe how Respondent will accept electronic transfer of accounts. F. Describe the Respondent's policies and methods regarding payment to the City, including Respondent's approach for handling stolen or lost payments. 4.5 Key Personnel and Subcontractor(s) Performing Services A. Provide an organization chart showing all individuals assigned to this project. This chart should clearly identify the Respondent's employees and any subcontractor(s) or sub consultants. B. Describe the experience, qualifications, licenses held, and other vital information, including relevant experience on similar projects, of all key personnel and subcontractor(s) who may be assigned to this project. C. Provide resumes, with job descriptions and other detailed qualification information, regarding all key personnel who may be assigned to this project. D. Describe training programs for new employees and existing employees to keep them current concerning all relevant collection practices, laws, and regulations. 5.0 EVALUATION OF QUALIFICATION STATEMENTS 5.1 Selection Committee and Criteria The Qualification Statements will be evaluated by a selection committee consisting of representatives of the Court, the City Law Department, and the Finance Department. Upon receipt by the due date and time of proposals to this RFQ, the City's selection committee will review the same for completeness and adherence to the provisions of this RFQ. Aspects of all Qualifications Statements shall be evaluated with the following criteria. There is 7

20 no order of significance implied: A. Overall Qualifications, Experience, Capabilities and ability to satisfy Minimum Requirements Respondent demonstrates the required qualifications, experience, capabilities and minimum requirements. References of similar past assignments are required regarding the collection of delinquent accounts. B. Technical Aspects The Respondent's technical approach that addresses the operational and logistical requirements of this RFQ. Respondent should provide a comprehensive explanation of the Respondent's legal services concerning Respondent's collection and settlement procedures and overall collection philosophy. The degree to which the Respondent implements Best Practices throughout the collection process. This includes personnel training, software enhancements to improve efficiency, methods and procedures by which Respondent complies with the FDCPA, and community programs to encourage collections. C. Management Aspects The degree to which the Respondent demonstrates the ability to acquire, employ and manage the necessary financial and personnel resources to successfully conduct all operations required in this RFQ. The ability of the Respondent to successfully complete the project within the proposed time schedule. D. Overall Perception The degree to which the Respondent's proposal demonstrates the understanding of the complex interactions required to sustain viable and effective operations. The City reserves the right to determine, in the City's sole discretion, whether any aspect of any Respondent's Qualification Statement meets the criteria in this RFQ. The City also reserves the right to seek clarification, to request additional information, to negotiate with any Respondent submitting a Qualification Statement, to reject any or all proposals with or without cause, to offer multiple awards, and to modify the RFQ process and schedule. 5.2 Notification of Outcome The City anticipates sending written notification to all proposed Respondents regarding the outcome of the evaluation. 8

21 6.0 MISCELLANEOUS 6.1 Pricing No fees or pricing shall be included in the Qualification Statements. If pricing is included in the Qualification Statement it will be disqualified. 6.2 Term of Agreement The Agreement term will be for one (1) year with the City's option to renew for three (3) additional years. Either party may voluntarily terminate the Agreement upon thirty (30) calendar days' written notice to the other party of the intent to do so. 6.3 Non-Appropriation of Funds and Consideration The Agreement for the services described in this RFQ will not involve the appropriation of any funds by the City. Respondent's sole consideration for performance required by this Agreement will be the 33% commission on all debts owed to the Court and collected by the Respondent as allowed by K.S.A The City will not be responsible for any additional obligation whatsoever to the Respondent. 6.4 Site Visits The City reserves the right to conduct site visits of the facility(ies) operated by the Respondent to assist in judging the ability of the Respondent to provide the legal services requested in the RFQ. During the course of the Agreement, the City will evaluate the quality of legal services provided in accordance with the standards set forth in this RFQ. 6.5 Submission of Qualification Statements The original and five (5) copies of the Qualification Statements, as well as one electronic copy, shall be deposited with the Office of the City Clerk, 8500 Santa Fe Drive, Overland Park, Kansas, 66212, on or before 2:00 p.m., Monday, February 8, There will be no public opening of the Qualification Statements. Any Qualification Statements received after the scheduled closing time for the receiving of Qualification Statements will be returned to the Respondent unopened and at Respondent's expense and will not be considered. It shall be the sole responsibility of the Respondent to have its Qualification Statement delivered on or before the above stated date and time. If a Qualification Statement is sent by U.S. Mail, the Respondent shall be responsible for its timely delivery to the City Clerk. Postmark will not be accepted. Submittal of an incomplete Qualification Statement, or submittal of fewer than an original, five (5) copies and an electronic copy of all materials required by this RFQ, shall be deemed nonresponsive and shall be rejected. 9

22 6.6 Inquiries and Addenda Each Respondent shall examine and review this RFQ document. Should clarification or additional information be required, a written request must be submitted to the City of Overland Park, Court Administrator, Robin Barnard, Foster, Overland Park, KS, 66213, no later than ten (10) business days prior to the deadline for submittal of Qualification Statements. At its discretion, the City may answer such inquiries by means of a written Addendum. The City shall not be responsible for oral information given by any City employee or any other person. The issuance of a written Addendum is the only official method whereby interpretation, clarification or additional information from the City can be given. Oral and other interpretations or clarifications shall not be binding on the City. If any written Addenda are issued to this RFQ, the City will attempt to notify all known prospective Respondents. However, it shall be the responsibility of each prospective Respondent, prior to submitting their Qualification Statements, to contact the Robin Barnard at (913) to determine if Addenda were issued and to make such Addenda a part of the Qualification Statements. The City will make every effort to administer the RFQ process in accordance with the terms and dates discussed in the RFQ. However, the City reserves the right to modify the RFQ process and dates as deemed necessary by the City in the City's sole discretion. 6.7 Implementation The successful Respondent will be required to coordinate with all appropriate City staff, including the Court, regarding all the activities necessary to ensure a smooth implementation of the project. Implementation activities shall commence upon notification by the City. 6.8 Incurred Costs All costs incurred by the Respondents in responding to this RFQ are those of the Respondents and shall not be reimbursed by the City. 6.9 Cancellation The City reserves the right to cancel this RFQ in whole or in part without cause Acceptance and Rejection The City reserves the right to accept or reject any and all Qualification Statements submitted pursuant to this RFQ, to waive any irregularities or technicalities, and to request resubmission. There is no obligation on the part of the City to award the Agreement to any Respondent. The City reserves the right to award the contract to a responsible Respondent submitting a responsive Qualification Statement with a resulting negotiated Agreement which is most advantageous and in the best interests of the City and the public. The City shall be the sole judge of the submissions and the resulting negotiated Agreement that is in the City's and the public's best interest, and the City's decision shall be final. The City reserves the right to negotiate for the modification of any provisions outlined in the Qualification Statement with the consent of the 10

23 Respondent and to re-advertise for Qualifications. Each Qualification Statement shall be submitted with the understanding that the acceptance in writing by the City of the Respondent to furnish the legal services pursuant to this RFQ shall constitute an agreement between the City and the selected Respondent to enter Agreement negotiations. Negotiations by the City will not be deemed a counter offer or rejection of any original Qualification Statement. In the event of default by the selected Respondent, or the selected Respondent's refusal or inability to complete the Agreement, the City reserves the right to accept the Qualification Statement of any other Respondent without the necessity of readvertisement of the RFQ Service and Contractual Requirements Respondent understands and agrees that, by submitting its Qualification Statement pursuant to this RFQ, any resulting Agreement negotiated between the City and the selected Respondent shall be in a form approved by the City's Law Department. The City will not enter into an Agreement with a Respondent that limits the liability of the Respondent or requires the City to indemnify the Respondent. The successful Respondent will be required to enter into an Agreement with the City which will include, but not be limited to, the following paragraphs: A. Termination: Either party may terminate this Agreement by providing written notice of such termination to the other party. If the City elects to terminate, upon receipt of such notice from City, Contractor shall: (1) immediately cease all work; and (2) meet with City and determine what work, if any, shall be required of Contractor in order to bring the Agreement to a reasonable termination in accordance with the request of the City. B. Contractor's Cooperation: The Contractor shall at all times observe and comply with all City of Overland Park ordinances rules and regulations in any way affecting the Agreement. C. Indemnity: Definitions. For purposes of indemnification requirements, the following terms shall have the meanings set forth below: "The Contractor" means and includes Contractor, all of its employees, agents and assignees, and all of its affiliates and subsidiaries, its subcontractors and/or assignees and their respective servants, agents and employees; and "Loss" means any and all loss, damage, liability or expense of any nature whatsoever, whether incurred as a judgment, settlement, penalty, fine or otherwise (including attorney's fees and the cost of defense), in connection with any action, proceeding, demand or claim, whether real or spurious, for injury, including death, to any person or persons or damages to or loss of, or loss of the use of, property of any person, firm or corporation, including the parties hereto, which arise out of or are connected with, or are 11

24 claimed to arise out of or be connected with, the performance of this Agreement whether arising before or after the completion of the work required hereunder. For purposes of this Agreement, Contractor hereby agrees to indemnify, defend and hold harmless the City, its employees and agents from any and all Loss where Loss is caused or incurred or alleged to be caused or incurred in whole or in part as a result of the negligence or other actionable fault of the Contractor. It is agreed as a specific element of consideration of this Agreement that this indemnity shall apply notwithstanding the joint, concurring or contributory or comparative fault or negligence of the City or any third party and, further notwithstanding any theory of law including, but not limited to, a characterization of the City's or any third party's joint, concurring or contributory or comparative fault or negligence as either passive or active in nature; provided, however, that the Contractor's obligation hereunder shall not include amounts attributable to the fault or negligence of the City. Nothing in this section shall be deemed to impose liability on the Contractor to indemnify the City for Loss when the City's negligence or other actionable fault is the sole cause of Loss. D. Non-Discrimination Clause: The Contractor agrees that: i. the Contractor shall observe the provisions of the Kansas Act Against Discrimination and shall not discriminate against any person in the performance of work under the present Agreement because of race, religion, color, sex, disability, national origin, ancestry or age; ii. ii. iii. iv. in all solicitations or advertisements for employees, the Contractor shall include the phrase, "equal opportunity employer," or a similar phrase to be approved by the Kansas Human Rights Commission (Commission); if the Contractor fails to comply with the manner in which the Contractor reports to the commission in accordance with the provisions of K.S.A and amendments thereto, the Contractor shall be deemed to have breached the present Agreement and it may be canceled, terminated or suspended, in whole or in part, by the City; if the Contractor is found guilty of a violation of the Kansas Act Against Discrimination under a decision or order of the Commission which has become final, the Contractor shall be deemed to have breached the present Agreement and it may be canceled, terminated or suspended, in whole or in part, by the City; the Contractor shall include the provisions of subsections (i) through (iv) in every subcontract or purchase order so that such provisions will be binding upon such sub-contractor or Contractor; and 12

25 vi. The Contractor further agrees that the Contractor shall abide by the Kansas Age Discrimination In Employment Act (K.S.A et seq.) and the applicable provision in the Americans With Disabilities Act (42 U.S.C et seq.) as well as all federal, state and local laws, ordinances and regulations applicable to this Agreement and to furnish any certification required by any federal, state or local governmental agency in connection therewith. E. Contract Binding: This Agreement shall be binding on and inure to the benefit of the respective parties and their executors, administrators, heirs, personal representative, successors and assigns. F. Assignment: The Contractor shall not assign any interest in the Agreement and shall not transfer any interest in the same without prior written consent of the City. G. Entire Agreement and Order of Preference: This Agreement, along with the RFQ, all attachments thereto, and the Contractor's written proposal, states the entire Agreement between the parties hereto with respect to the subject matter hereof, and all prior and contemporaneous understandings, representations and agreements are merged therein or superseded thereby. No alterations or modifications of this Agreement, or any provisions hereof, shall be effective unless in writing, executed by the parties. Any conflict to the provisions of this Agreement and the documents incorporated by reference shall be determined by the following priority order: i. Written modifications and Addenda to this Agreement; ii. This Agreement iii. The Request for Qualifications (RFQ) including any Addenda; iv. Contractor's response including any Addenda, appendices and exhibits. H. Severability: In the event any section, subsection, subdivision, paragraph, subparagraph, item, sentence, clause, phrase, or word of this Agreement is declared or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the remaining provisions of this Agreement, as if such invalid or unconstitutional provision was not originally a part of this Agreement. I. Independent Contractor: The Contractor will conduct business as an independent contractor under the terms of this Agreement. Personnel services provided by the Contractor shall be by employees of the Respondent and subject to supervision by the Contractor, and not as officers, employees, or agents of the City. Personnel policies, tax responsibilities, social security and health insurance, employee benefits, and other similar administrative procedures applicable to services rendered under this Agreement shall be those of the Contractor. J. Manner of Performance: Contractor agrees to perform its duties and obligations under this Agreement in a professional and ethical manner. Contractor agrees that the legal services provided under this Agreement shall be provided 13

26 by personnel that are educated, trained and experienced in all areas encompassed within their designated duties. Contractor agrees to furnish the City with any and all documentation, certifications, authorizations, licenses, permits, or registrations currently required by applicable laws or rules and regulations, including but not limited to legal professional liability insurance. Contractor further certifies that it and its employees are now in and will maintain good standing with such governmental agencies and that it and its employees will keep all licenses, permits, registrations, authorizations or certifications required by applicable laws or regulations in full force and effect during the term of this Agreement. Failure of Contractor to comply with this paragraph shall constitute a material breach of the Agreement. K. Accounting Records: The Contractor shall maintain during the term of the Agreement, and any renewal terms thereof, all books of account, receipt invoices, reports and records in accordance with generally accepted accounting practices and standards. The form of all records and reports shall be subject to the approval of the City's Internal Auditor. The Contractor shall comply with recommendations for changes, additions, or deletions by the City's Internal Auditor. The City's Internal Auditor shall be permitted, during normal business hours, to audit and examine the books of account, reports and records relating to this Agreement. If the accounting records set forth in this paragraph are not physically located in the City, upon the City's request, the Contractor shall make said accounting records available for the City's review in Overland Park, Kansas, at a mutually determined location. The Contractor shall maintain and make available such records and files for the duration of the Agreement and retain them beyond the last day of the Agreement term, and any renewal terms thereof, for the period of five (5) years following Agreement expiration or termination. L. Insurance Requirements: The Contractor will be required to maintain for the duration of the Agreement the following insurance. In addition the Contractor will be required to complete an Acord Certificate of Liability Insurance form to verify that the insurance requirements have been met. The Contractor shall secure and maintain, throughout the duration of this Agreement, insurance (on an occurrence basis unless otherwise agreed to) of such types and in at least such amounts as required herein. Any coverage provided by a Claims-Made form policy must contain a three (3) year tail option, extended reporting period, or must be maintained for three (3) years post Agreement. Contractor shall provide certificates of insurance and renewals thereof on an approved Acord form. Certificates of insurance for professional liability may be issued on forms provided by the insurer. The City shall be notified by receipt of written notice from the insurer at least thirty (30) days prior to material modification or cancellation of any policy listed on the Certificate. The City will only accept coverage from an insurance carrier who offers proof that it: (1) Is licensed to do business in the State of Kansas; 14

27 (2) Carries a Best's policy holder rating of A- or better; and (3) Carries at least a Class X financial rating. OR is a company mutually agreed upon by the City and Contractor. 1. COMMERCIAL GENERAL LIABILITY POLICY Each Occurrence: $ 1,000,000 General Aggregate: $ 2,000,000 Policy must include the following conditions: 1) Premises and Operations 2) Broad Form Contractual/Contractually Assumed Liability 3) Independent Contractors 4) Personal Injury 5) Products/Completed Operations 6) Name City as "Additional Insured. " 2. AUTOMOBILE LIABILITY (May be waived if Contractor is not transporting individuals in connection with the program) Policy shall protect the Contractor against claims for bodily injury and/or property damage arising from the ownership or use of all owned, hired and/or non-owned vehicles, must name the City as an "Additional Insured" and must include protection for either: (A) Any Auto OR (B) All Owned Autos; Hired Autos; and Non-Owned Autos. Limits- Each Accident, Combined Single Limits, Bodily Injury and Property Damage: $ 1,000, WORKERS' COMPENSATION This insurance shall protect the Contractor against all claims under applicable state 15

28 workers' compensation laws. The Contractor shall also be protected against claims for injury, disease or death of employees which, for any reason, may not fall within the provisions of workers' compensation law. The liability limits shall not be less than the following: Workers' Compensation: Statutory Employer's Liability: Bodily Injury by Accident Bodily Injury by Disease Bodily Injury by Disease $100,000 each accident $500,000 policy limit $100,000 each employee 4. PROFESSIONAL LIABILITY The Contractor shall maintain throughout the duration of this Agreement Professional Liability Insurance in an amount not less than One Million Dollars ($1,000,000.00), and shall provide the City with certification thereof. 5. SUBCONTRACTOR'S INSURANCE If a part of the Contract is to be sublet, the Contractor shall either: (a) (b) Cover all subcontractors in its insurance policies; or Require each subcontractor not so covered to secure insurance which will protect against all applicable hazards or risks of loss as and in the minimum amounts designated Governing Law, Jurisdiction and Venue This Agreement shall be governed by and construed within the laws of the State of Kansas. The Contractor shall comply with applicable Federal law and regulations, Kansas law and regulations, and applicable City of Overland Park ordinances. The Respondent does hereby consent and yield to the jurisdiction and venue of the State Courts of the State of Kansas, County of Johnson, and does hereby formally waive any pleas of jurisdiction and venue on account of the residence elsewhere of the Respondent. 16

29 City of Overland Park, Kansas Qualifications to Provide Legal Services for the Collection of Delinquent Court Fines and Costs Due Date: February 8, 2010 Contact Scott McGlasson Managing Partner Linebarger Goggan Blair & Sampson, LLP Scarritt Arcade Bldg., 819 Walnut, Suite 309, Kansas City, MO Phone

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32 CONTENTS Chapter 1 RFQ Item 4.2 Minimum Qualifications and Requirements Responding to RFQ Requirements A. Firm s Relationship with Overland Park B. Licensed in the State of Kansas C. Ability to Collect Debt Nationwide D. Knowledge of State and Federal Laws E. Ability to Handle a High Volume of Accounts F. Initial Programming and Technical Support G. Safeguarding Individuals and Data H. Compliance with Kansas Statute I. Collection Experience for Over Three Years J. Felony Charges A. Project Personnel B. The Firm s Court Fees and Fines Clients C. Three Comparable Contracts and Client References D. Surety Bond Filing E. Secretary of State Registration F. Accepting Reports in Electronic Format G. Ensuring Confidentiality H. Payment Card Industry Compliance I. Disputes and Complaints Process J. Remittance of Payments K. Reporting Schedule L. Monthly Status Reports M. Additional Reports N. Special Reports O. Account Settlement for Full Amount P. Uncollected or Recalled Accounts Q. Commencing Services within Thirty Days R. Planned Legal Action on an Account S. Returning Recalled Accounts T. Returning Accounts at Termination U. Costs and Expenses V. Providing Legal Services for Transferred Account W. City s Method of Transferring Accounts X. Cancelling and Recalling Accounts Y. Adjustments and Corrections to Account Data Chapter II RFQ Item 4.3 Experience/Qualifications of the Respondent 4.3.A. Years Performing Collection Legal Services B. Experience Performing Legal Services C. Understanding the City s Scope of Services D. What Sets Linebarger Goggan Apart from Other Firms E. Past or Pending Lawsuits F. Past or Pending Complaints Qualifications for the City of Overland Park, Kansas Table of Contents Page 1

33 Chapter III RFQ Item 4.4 Technical Ability 4.4.A. Legal Services B. Community Relations C. Collection Procedures D. Settlement Procedures E. Accepting Electronic Transfer of Accounts F. Payments to the City Chapter IV RFQ Item 4.5 Key Personnel and Subcontractors Performing Services 4.5.A. Project Organizational Chart B. Key Staff Qualifications C. Resumes of Key Personnel D. Training Program... 7 Exhibits A. Litigation and Grievances Lists B. Management Team Resumes Separate Envelope (with original proposal only) Original Proposal Bond Table of Contents Page 2 Qualifications for the City of Overland Park, Kansas

34 CHAPTER I RFQ ITEM 4.2 Minimum Qualifications and Requirements Linebarger Goggan Highlights More than 2,000 government clients including States, Cities, Counties, Schools, Special Districts, State and County Courts, and Federal Government 34 years of experience in collecting various government receivables including taxes, fees, fines, service charges, tolls, healthcare, etc. Nationwide collection capabilities from 45 offices in 12 states Over 1,200 firm employees throughout the nation 109 attorneys with collection and litigation expertise Over 250 highlytrained collection staff Over 140 professional IT employees Government entities across the nation are struggling to maximize their revenue resources and contain costs in the face of economic issues and soaring expenses. Linebarger Goggan Blair & Sampson, LLP (Linebarger Goggan) is proud to offer the City of Overland Park, Kansas (City) our response and proposal for solutions in collecting the City s delinquent court fees and fines. RESPONDING TO RFQ REQUIREMENTS Within this chapter, we provide the City with proof of our abilities to meet all necessary qualifications and requirements as stated in the City s RFQ Section 3.0. Each sub-heading in this chapter corresponds to the items listed in the RFQ, Sections 3.1 and 3.2 (Minimum Qualifications and Minimum Requirements). Local Presence Linebarger Goggan and its employees take pride in being part of the local community. Our Kansas City office serves our regional Midwest clients and will manage all aspects of the contract and collection efforts on behalf of your City. Managing Partner Scott McGlasson has been a Kansas-licensed and practicing attorney since 1991, and acts as the managing partner of our Kansas City office. In addition, Mr. McGlasson is a resident of Johnson County and remains in touch with the nuances and issues facing local governments in the area. Because Linebarger Goggan is a national law firm having a local office location managed by a local resident, we believe that the City receives tremendous benefits and advantages, both tangible and intangible. Mr. McGlasson will be personally available to respond to all City inquiries. Our Vision for Debt Collections In order to design and provide a quality collection program that effectively meets the individual needs of our clients and maximizes their collections, our law firm personnel have a singular focus total client satisfaction. Our firm achieves this goal by tailoring our comprehensive legal and collection services to the client s criteria, by retaining professional and courteous legal and collection personnel, by developing and supporting the most advanced collection technology systems available, and by maintaining good personal communications with our clients and the communities they serve. Qualifications for the City of Overland Park, Kansas Chapter I - Page 1

35 Significant investments are made in acquiring or developing advanced technologies and to sustain a high volume collection effort. The economies of scale required to justify this investment generally do not exist for a single governmental entity attempting to operate its own inhouse collection program. That is where public-private partnerships can offer several benefits to government entities, like your City, and their constituents. By contracting with Linebarger Goggan, the City can exponentially expand its collection resources at no out-of-pocket cost to the City and without unnecessarily spending taxpayer dollars. By outsourcing to a firm with a proven track record like Linebarger Goggan: City employees can focus on other critical operations and core services while law firm personnel dedicate their efforts to collecting delinquencies and increasing available revenue. We diligently pursue unpaid accounts, ultimately resurrecting the receivable and generating a new revenue source for the City. The City, as well as the defendants, receives services from a law firm highly experienced in handling and maintaining excellent public and constituent relations. We are sensitive to the nature of the debt being collected, and handle all matters with a view toward treating each defendant with dignity and respect. This professionalism ultimately provides insulation and protection against complaints, public relation issues and potential liability. Our collection efforts, including effective skip-tracing and defendant location capabilities, may benefit the City in numerous ways, including not only payment on accounts, but also by bringing lost defendants back into the court system for processing and resolution of their outstanding accounts. Our contingency fee covers all operating expenses, including delinquent data processing, printing, postage, address research, skiptracing, long distance phone bills, public notices, etc. Kansas law allows your Court to obtain collection services from our law firm at no cost to the Court. Linebarger Goggan has the resources and experience to meet and exceed the City s expectations. Our specific experience and understanding of the nuances of collecting court fees and fines provide us a vast advantage that will immediately increase revenues and benefit the City. Collection of delinquent court fees and fines is a major focus and a core function of our law firm practice. We are confident that our firm is fully prepared and best qualified to assist the City in carrying out its objectives. Based upon our extensive experience and expertise in handling the collection of delinquent court debt, we have no reservations about our Chapter I - Page 2 Qualifications for the City of Overland Park, Kansas

36 2010 Linebarger Goggan Management Team ability to meet or exceed the City s collection needs and provide services that exceed the industry standard. 3.1.A. FIRM S RELATIONSHIP WITH OVERLAND PARK Neither Linebarger Goggan nor any of our employees are currently affiliated with the City; we are not a creditor, officer, or employee of Overland Park. Equitable ownership of the law firm is held exclusively by the capital partners of the law firm, all of whom are licensed attorneys actively engaged in the practice of law. Women and minorities own 45 percent of the firm. The law firm is governed by a 20-member Management Committee. The Chief Operating Officer (COO) assures that the policies established by the Management Committee are effectuated throughout the law firm. All members of the Management Committee are equity partners and own shares in the law firm. 3.1.B. LICENSED IN THE STATE OF KANSAS Partner Scott McGlasson will be the Kansas-licensed attorney managing the City s collection contract. A resident of Johnson County, Mr. McGlasson is licensed to practice law in Kansas, Kentucky, Missouri, Oklahoma, and Texas. A collection agency license is not required in the State of Kansas, as the state does not regulate debt collection agencies. States requiring licenses and registration are shown in the following section. 3.1.C. ABILITY TO COLLECT DEBT NATIONWIDE Linebarger Goggan is licensed and/or authorized to collect in all 50 states, U.S. territories, and commonwealths. A number of states and/or territories do not require a license based upon (1) an exemption for attorneys; (2) contacts being telephonic and/or from an out-of-state location; or (3) license not required by the particular state. We have the ability to effect collections in Caribbean nations, Canada, and foreign countries and will meet any interstate collection requirements. Collection Licenses and Registrations Any states or territories not listed below do not require a license from our law firm, based upon one or more of the conditions identified in the table on the following page. Qualifications for the City of Overland Park, Kansas Chapter I - Page 3

37 COLLECTION LICENSES AND REGISTRATIONS State License/Registration Number State Agency Expiration Date Arkansas 1194 State Board of Collection Agencies 6/30/10 California Secretary of State No expiration Colorado Colorado Collection Agency Board 7/1/10 Connecticut 7412 Department of Banking 9/30/11 Delaware Division of Revenue 12/31/12 Florida (Consumer) (Commercial) Department of Financial Services 12/31/10 12/31/10 Hawaii COLA-188 Department of Commerce & Consumer Affairs 6/30/10 Idaho CFP-286 Department of Finance 3/15/10 Indiana CA Secretary of State 12/31/10 Iowa Number not assigned (ICCC) W (SOS) Iowa Consumer Credit Code Secretary of State 1/31/10 Maine DCL8926 Consumer Credit Regulation 7/31/10 Maryland 2418 Commissioner of Financial Regulation 7/24/11 Minnesota Department of Commerce 6/30/10 Missouri PL Secretary of State No expiration Nebraska 186 Collection Agency Licensing Board 12/31/10 New Hampshire Number not assigned Secretary of State No expiration New Jersey Department of Treasury No expiration New Mexico Regulation & Licensing Department 6/30/10 North Carolina Secretary of State No expiration North Dakota CA Department of Financial Institutions 6/30/10 Oklahoma Number not assigned Secretary of State No expiration Oregon CA48553 Division of Finance and Corporate Securities 8/31/10 South Carolina Number not assigned Secretary of State 3/20/10 Texas Secretary of State No expiration Tennessee Collection Service Board 10/26/11 Utah Number not assigned Department of Financial Institutions 1/31/10 Washington Department of Licensing 12/31/10 West Virginia State Tax Department 06/30/10 Virgin Islands LLP Office of the Lieutenant Governor No expiration 3.1.D. KNOWLEDGE OF STATE AND FEDERAL LAWS As a national law firm, we are uniquely qualified with a knowledge and familiarity of the federal, state, and local laws and regulations regarding collection work in all jurisdictions in which we operate. We possess a broad understanding of relevant laws and issues involving the collection of Court debt in Kansas, and across the country. Additionally, we understand legal issues and procedures relating to the general collection of debt in Kansas and beyond. Managing Partner Scott McGlasson began collecting debt in the State of Kansas in 1986 and has extensive personal and professional knowledge in this area. All collection efforts on behalf of the City will be handled in accordance with all state and federal laws and regulations and any additional requirements as set forth by the City. Chapter I - Page 4 Qualifications for the City of Overland Park, Kansas

38 Linebarger Goggan s collection teams are well versed in all applicable laws and regulations. All collection personnel receive in-depth training and regular updates on collection laws necessary for them to perform all job duties and functions in compliance with those required laws and regulations. Finally, as a law firm, we adhere to the stringent ethical requirements promulgated by the Supreme Court of Kansas, and in the courts of every state and jurisdiction in which we practice. While we remain intensely focused on our collection efforts, our employees always handle all collection efforts in a legal and ethical manner while treating all defendants with courtesy and respect for their confidentiality. Through this approach, our collection actions provide comfort and satisfaction to all defendants while, at the same time, providing a protection and insulation from complaints and potential liability to the City and the law firm. After 34 years of providing superior collection services to our clients, Linebarger Goggan has never had a Fair Debt Collection Practices Act judgment or a Federal Trade Commission decree entered against it. This record is not accidental, but rather the result of a combination of managerial commitment, selective recruiting, intense training and zealous quality control. 3.1.E. ABILITY TO HANDLE A HIGH VOLUME OF ACCOUNTS Linebarger Goggan currently handles in excess of 24 million accounts and receives new accounts daily. On average, the firm services approximately 2,500,000 delinquent accounts of all types and accepts roughly 200,000 new accounts for collection each month. Our Information Technology Group has demonstrated a consistent ability to incorporate new clients with high-volume account portfolios into our existing systems and processes, while meeting and exceeding both existing and new client requirements and expectations. Our firm is poised and ready to handle any account volume assignment necessary and requested by the City. Description of Collection Processes Further details on our call center staff and customized collection processes such as skip-tracing, mailings, dialing campaigns, and litigation are provided in Chapter III. 3.1.F. INITIAL PROGRAMMING AND TECHNICAL SUPPORT Linebarger Goggan has invested more than $60 million in the development of the most sophisticated and technologically advanced Qualifications for the City of Overland Park, Kansas Chapter I - Page 5

39 systems to enhance our collection abilities. We have over 140 dedicated IT staff at the City s disposal who will be available and capable of providing all necessary technical support in the development of data transfer functionality. Implementation Plan Linebarger Goggan anticipates being fully prepared to accept the City s account data and begin the collection process within approximately 30 days from receipt of good, verifiable data, provided there are no special problems with the dataset or with transferring the data correctly. Every process described in this proposal currently exists and operates to the satisfaction of the federal government and other large law firm collection clients. Our implementation plan includes testing the secure data networks, confirming the accuracy of data transmissions, developing any special report templates and letters series, and any other protocols that the City might require, such as testing the firm s updating capabilities in real time on the City s system. Once the implementation is complete, the actual collection process and work plan are initiated. The implementation table shown below highlights the various steps of the implementation process and chronology. Many of the listed tasks are completed concurrently during the on-going implementation process. As a general comment, the various implementation steps can be completed as rapidly as your City is willing and able to move through the process. The implementation timeline and process is critically dependent upon the cooperative efforts, immediate responses, and open communication lines between the City staff and Linebarger Goggan staff. Under appropriate circumstances, this timeline may be shortened dramatically. The proposed schedule of events in the implementation stage is as follows: IMPLEMENTATION CHRONOLOGY AND PROCESS The City approves a contract with Linebarger Goggan to collect delinquent accounts. Linebarger Goggan Project Management Team meets with the City Project Manager to discuss implementation issues, proposed work plan, and report formats, while firm IT personnel discuss the electronic communications protocols and requirements with the City s (or its vendor s) data processing staff. Linebarger Goggan s IT personnel begin interface development with the City. The draft letters series for adjudicated and for unadjudicated cases will also be submitted for review by the City Project Manager. Chapter I - Page 6 Qualifications for the City of Overland Park, Kansas

40 IMPLEMENTATION CHRONOLOGY AND PROCESS Secure Internet access is granted (path/passwords established), and database system partitioning is created to accept the City s test data. Complete initial programming of interfaces to begin testing phase. The City sends any specific requirements, regulations and procedures for fees and fines. Linebarger Goggan compiles City-specific training materials and assigns collectors and support personnel. The City makes any final recommendations and approves all letters and scripts. The Linebarger Goggan Project Management Team meets with the City Project Manager to review progress and discuss status of implementation. The firm management team will also review staffing levels assigned and determine the best course to accomplish full staffing level for the City's first assignment of accounts. Law firm collection system programmers develop any special report formats and test them to the satisfaction of City personnel. The City approves a system test plan to ensure the reliability and security of the network transmissions. The City s personnel begin sending test data to ensure both data security and data file integrity. Linebarger Goggan s IT personnel and City s IT personnel complete final testing and validate interfaces as acceptable to permit transfer of live data. The firm collection system programmers finalize any special report formats, address any issues relating to the startup, complete any outstanding issues, and finalize ongoing IT work plan in conjunction with City's data processing staff (or after consulting with the City's IT vendor). The City transmits first official data file for collection. Linebarger Goggan processes first data file, and the City collection program begins. Linebarger Goggan Project Management Team meets with the City Project Manager to assess the implementation process, address any unresolved issues that surfaced, and develop an ongoing management plan for collections. Further details regarding our data transfer process are provided in Chapter II. 3.1.G. SAFEGUARDING INDIVIDUALS AND DATA During implementation of this contract, Linebarger Goggan will confirm that all procedures and methods specified by the City for safeguarding the rights of individuals subject to collection are being fulfilled. As previously stated, Linebarger Goggan follows all local, state, and federal laws applicable to the collection of delinquent receivables, including the FDCPA. We understand the importance of providing a positive experience by treating all defendants with respect and dignity. Collection Strategies The collection strategies and techniques used by Linebarger Goggan are legal, ethical, and highly professional in manner. Experienced staff work the collection floor on a daily basis in full compliance with all applicable federal and state laws. All defendants are treated with courtesy and respect, and all information is kept strictly confidential. Qualifications for the City of Overland Park, Kansas Chapter I - Page 7

41 Linebarger Goggan believes that dignity and compassion for each individual cannot be abandoned in the pursuit of collections. We make a point of: listening to the defendants working with the defendants providing relevant information and education to defendants exploring options and alternative solutions encouraging them in the resolution of their delinquent accounts These intangibles are essential in protecting the rights of the defendants, minimizing complaints, and maximizing revenues for our clients. As a law firm, we are generally held to a higher ethical standard by the courts as well as the various bar associations where our attorneys are licensed to practice law. Linebarger Goggan affirms that this high ethical standard will be the bedrock of our partnership with the City. In addition to protecting defendants during our personal communications with them, we also have numerous data and physical security features in place to protect all clients and their defendants, as shown on the following pages. Data Security Features NIACAP Accreditation In 2005, Linebarger Goggan received its National Information Assurance Certification and Accreditation Process (NIACAP) Final Certification. NIACAP is based on the NIST 800 series special publications, which provide guidance on developing and implementing a comprehensive computer security program and were developed in response to the 2002 Federal Information Security Management Act (FISMA). The NIACAP certification process involved an extensive review the firm s information systems security, including disaster recovery as outlined in the firm s business continuity program, intrusion detection, physical plant security, virus protection and a host of related issues. The policies and standards developed to support the firm s NIACAP certification are designed to protect Linebarger Goggan information resources from unauthorized access, inadvertent disclosure of sensitive information to unauthorized individuals, sabotage, natural disaster, etc. In order to obtain an objective third-party validation of Linebarger Goggan's NIACAP internal certification, the firm contracted with Dynetics, Inc. Dynetics, Inc. is a civilian corporation that has extensive experience auditing, investigating and certifying federal systems. The firm's certification is renewed annually. The most recent certification renewal was completed in September Chapter I - Page 8 Qualifications for the City of Overland Park, Kansas

42 Network Security Data Encryption 128 Bit End Node to End Node We currently maintain several Virtual Private Network (VPN) connections for law firm operations. These VPN connections provide the required speed and security. Intrusion Detection at each end Node We currently run intrusion detection on our Firewall and can run it on any other router involved in a connection. In addition, we run SNORT IDS at our internet access point, collecting information on inbound and outbound traffic. Firewall protection at firm s connection to the Internet End Nodes access is limited and secure End Nodes with dedicated IP addresses End Nodes with transaction or data transmission Audit Logs The end node routers are set up to send audit logs to our centralized log server to maintain a record of all transmissions. Backup or alternate transmission plans adhere to the same security requirements Electronic data associated with the City project will be maintained at the Linebarger Goggan Information Technology Group facility, the primary technology location for the firm, which is located in San Antonio, Texas. This facility has extensive safeguards to protect and secure the hardware and information maintained at this location. Access to City data will be accomplished by a leased 10Mbs dedicated connection. Data Communications Security Linebarger Goggan has gone to great lengths and expense to ensure the integrity and security of our clients data, which is evident in every area of how client data is handled, transmitted, and used in the collections process. Linebarger Goggan employs standard industry security protocols, such as IPSec-3DES-MD5, that maintain the integrity and confidentiality of our clients' data. Most VPN clients are configured to use a full 168 bits of encryption. Physical Security The law firm s ITG operation occupies rooms on the first floor and the entire second floor of the Brookhollow building in San Antonio. Access to the common areas of the building is controlled by a system operated by Brookhollow management personnel. Access to Linebarger Goggan facilities within the building is controlled by a system that is owned and operated by Linebarger Goggan. Access requires a photo identification access badge issued by the firm. These badges are configured to control which areas within the facility an employee can access and when. Restricted Access areas within the ITG facility require the employee to use both their access badge and a Personal Identification Number. Qualifications for the City of Overland Park, Kansas Chapter I - Page 9

43 Access badges and their assigned access levels are reviewed on a semiannual basis. Linebarger Goggan also has video surveillance of all ITG entrances and exits 24 hours per day. This video information is maintained for 90 days. Access to the Linebarger Goggan computer network requires a unique User ID and unique password. When a new user account is created, a temporary password will be created and provided to the new employee; however, the network will force the employee to change this password after the first successful network logon. Linebarger Goggan User IDs are created using the employee s first and last name. In addition, all passwords must meet Strong Password criteria: at least eight characters in length, a mixture of upper- and lower-case letters, at least one number, and at least one special character. All Linebarger Goggan passwords must be changed every 90 days, and users are prevented from reusing passwords. We consistently meet and exceed safeguarding requirements for various local, state, and federal government clients. We have no reservations in our ability to provide adequate security procedures for your City. 3.1.H. COMPLIANCE WITH KANSAS STATUTE Linebarger Goggan will comply with all requirements and procedures set forth in K.S.A , as amended, as well as all other applicable state, federal, or local laws relating to the collection of debt. 3.1.I. COURT COLLECTION EXPERIENCE FOR OVER THREE YEARS With more than three decades of experience and over 2,000 local, state, and federal clients, Linebarger Goggan is a national leader in collection services for governmental entities. Linebarger Goggan has been widely recognized for the past 34 years for its success in collecting delinquent ad valorem taxes. Over the years, our law firm has also gained a national reputation for success in collecting delinquent court fees and fines. We currently represent numerous clients in the collection of delinquent court fees and fines, which encompasses more than 500 individual courts throughout the nation. Some of our regional municipal court clients include the United Government of Wyandotte County/Kansas City (KS), Kansas City (MO), Saint Louis, and Tulsa. Each year Linebarger Goggan collects approximately $1 billion in delinquent government receivables for its clients. The firm s attorneys Chapter I - Page 10 Qualifications for the City of Overland Park, Kansas

44 and highly-trained collectors currently manage more than $10 billion in delinquent government receivables. 3.1.J. FELONY CHARGES No current owner or operator of Linebarger Goggan has been convicted of a felony. The firm is a private company; there are no stockholders in the firm. 3.2.A. PROJECT PERSONNEL We offer the City the most qualified project team for its collection needs. Scott McGlasson, Managing Partner of the firm s Kansas City regional office, will be responsible for management and oversight of all aspects of the City s contract including all implementation issues; coordination of law firm staff and resources; and the daily collection strategies and operations for the City. He has been involved in the collection industry since A resident of Johnson County, Mr. McGlasson is a very familiar with the needs of the local governments and their constituents. Mr. McGlasson and other team members will be available to communicate in any manner desired and requested by the City, including personally meeting with City staff in their offices as desired. Mike Vallandingham, Partner, will provide advice and counsel on collection strategies and management issues and help assure that the firm delivers on the promises made. He will be responsible for overall internal project management and administration. Michael Brown, Director of Operations, will provide management and analytical supervision to accomplish performance goals. John Wilson, San Antonio Call Center Director of Operations, will be responsible for managing the necessary call center resources and collection staff. Richard H. Pachecano, Director of Fees and Fines, IT Group, will provide the management oversight and technical guidance for the transfer of data necessary to ensure a smooth implementation period. Don Crawford, Data Processing Manager, will provide technical support and work closely with the City team. Team Biographies and Resumes Biographies and further information about each of the management team members are provided in Chapter IV. Resumes are provided in Exhibit B. Qualifications for the City of Overland Park, Kansas Chapter I - Page 11

45 3.2.B. NUMBER OF COURT FEES AND FINES CLIENTS Linebarger Goggan currently represents various court clients in the collection of delinquent court fees and fines, which encompasses more than 500 individual courts throughout the nation. By way of example, our court clients include various cities and counties such as: Wyandotte County/Kansas City (KS) Kansas City (MO) Saint Louis (MO) Tulsa (OK) Bartlesville (OK) Little Rock (AR) Jonesboro (AR) Baltimore (MD) Dallas (TX) Denver (CO) Duval County (FL) Houston (TX) Miami-Dade County (FL) Orange County (CA) Philadelphia (PA) Richmond (VA) Round Rock (TX) Salt Lake City (UT) Scottsdale (AZ) Waxahachie (TX) Collection of court debt involves specialized understanding of the particular characteristics of that debt type, as well as the legal processes and procedures required for collecting it. Our expertise has been developed over years of handling court collections for numerous court clients. We possess a broad understanding of relevant laws and issues involving the collection of court debt in Kansas, and across the country. Additionally, we understand legal issues and procedures relating to the general collection of debt in Kansas and beyond. On the following pages, we provide the City with examples of our successes with several of these clients. * * Results obtained depend on the nature of each portfolio of accounts and the facts of each case. Every portfolio is somewhat different. Similar results may not be obtained in your case. Past performance is no guarantee of future results. Chapter I - Page 12 Qualifications for the City of Overland Park, Kansas

46 Kansas City (MO) We collect municipal court debt, city taxes and various special assessments for the City of Kansas City, Missouri. As of November 2009, we have collected more than $5.4 million in these municipal debts for the City. The City began referring Municipal Court debt to our firm in April Referrals included a significant backlog of accounts, some of which were up to twenty years delinquent. Our collection efforts have recovered more than $3.4 million to date and brought numerous lost defendants back into the City s court system to resolve their delinquent accounts. We have collected over $1.1 million in City tax accounts and assist the City in identifying necessary information on disputed tax accounts and accounts of non-filing taxpayers. This information facilitates the City s process for resolving disputes and reconciling its tax rolls. In October 2007, the City requested that we expand our collection services to include the collection of various assessment debts. Since then we have generated an additional $471,000 in additional revenue from this debt portfolio. KANSAS CITY COLLECTIONS BY DEBT TYPE Qualifications for the City of Overland Park, Kansas Chapter I - Page 13

47 Duval County Clerk of the Court (FL) We currently collect civil traffic citations (first placements) for the Duval County Clerk of the Court (Jacksonville), and we have seen a tremendous response to our efforts. As of December 2009, Linebarger Goggan had collected more than $24.2 million on delinquent citations for the Clerk of the Court. Over the lifetime of the firm s contract with Duval County, the recovery rate as of December 2009 was 46.1 percent for all dollars placed. The liquidation rate for all accounts resolved (cash and alternate methods) is 62.7 percent. CUMULATIVE COLLECTIONS CIVIL TRAFFIC CITATIONS Chapter I - Page 14 Qualifications for the City of Overland Park, Kansas

48 Miami-Dade County Clerk of the Courts (FL) As of November 2009, Linebarger Goggan has recovered more than $39.1 million in additional revenue from delinquent parking and traffic citations for the Miami-Dade Clerk of the Courts. The initial portfolio of first placements for parking citations was turned over to us in March 2001 and included debts that were eight or more years delinquent. As of November 2009, the firm has collected more than $18.3 million in delinquent parking citations for the Miami-Dade County Clerk of the Courts. In 2004, the firm also began collecting traffic citations and has successfully recovered an additional $20.8 million through June The total net value of placements for traffic and parking combined from March 2001 through November 2009 is $144.5 million. The chart below illustrates the combined recovery rate for parking and traffic citations. As of November 2009, the liquidation rate was 33.7 percent of total net dollars placed including resolved accounts. The liquidation rate for all accounts placed is 65.3 percent. This includes any accounts cancelled or recalled by the client. MIAMI-DADE COUNTY DELINQUENT PARKING & TRAFFIC COLLECTIONS Qualifications for the City of Overland Park, Kansas Chapter I - Page 15

49 City of Missouri City (TX) Collections of court fees and fines for the City Municipal Court began in February Since that time, our firm has collected more than $1.1 million in additional revenue for the City. As seen in the chart below, we have obtained a collection rate of 26.1 percent for dollars collected over life of contract with a 57 percent liquidation rate for accounts resolved (cash plus alternate methods). CITY OF MISSOURI CITY, TEXAS COLLECTIONS Chapter I - Page 16 Qualifications for the City of Overland Park, Kansas

50 City of Round Rock (TX) Linebarger Goggan has been collecting court fees and fines for Round Rock Municipal Court since Since then, the firm has collected more than $1.8 million in additional revenue for the City. In addition, the overall collection rate is 31.8 percent. ROUND ROCK COLLECTION RECOVERY RATES Qualifications for the City of Overland Park, Kansas Chapter I - Page 17

51 City of Scottsdale (AZ) Our partnership with the City of Scottsdale, Arizona, began in July 2003 and complements the City s effort to maximize its revenue from city court fees and fines. We collect delinquent civil and criminal fines and fees after the city court has attempted collection without a positive result. As seen in the chart below, Linebarger Goggan collected more than $4.7 million dollars in delinquent civil citations for the City and more than $6.6 million in combined collections for delinquent civil and criminal citations between July 2007 and July We have obtained a collection rate of 11.4 percent for criminal citations collections and 25.9 percent for civil citations collections. SCOTTSDALE COLLECTIONS FOR CIVIL AND CRIMINAL CITATIONS Chapter I - Page 18 Qualifications for the City of Overland Park, Kansas

52 City and County of Denver (CO) Linebarger Goggan has collected various delinquent debts for the City and County of Denver since Initially, the firm collected on most types of delinquent debt owed to the City and County of Denver. Delinquent receivables, such as bad checks for the Department of Motor Vehicles, Fire Department inspection bills, Forestry Department claims for tree removal, criminal restitution claims, electronic monitoring accounts, court fees and fines connected with City and County courts, and delinquent charges for the Denver Coliseum. In 2006, the City and County began sending parking citations to the law firm for collection. The charts below illustrate the annual cumulative collections and resolved accounts for the new parking debt portfolio. As of November 30, 2009, the firm had collected more than $3.1 million for the City and County of Denver. The overall net collection rate, as of November 2009, for all dollars resolved was 10.6 percent (based on all parking tickets placed for collection since the onset of the contract). Resolved accounts include paid in full, bankruptcy, deceased, incarcerated or withdrawn and dismissed based upon defect. CITY & COUNTY OF DENVER RECOVERY RESULTS FOR PARKING CITATIONS Qualifications for the City of Overland Park, Kansas Chapter I - Page 19

53 3.2.C. THREE COMPARABLE CONTRACTS AND CLIENT REFERENCES We proudly offer the City the following contact information for three of our current clients. We welcome the City to contact each of these clients and speak to them directly regarding the firm s abilities. Linebarger Goggan is the primary contractor, and Partner Scott McGlasson manages all aspects of each of the contracts for the references listed below. Kansas City, Missouri Description of Work: Collection of delinquent court fees and fines, taxes, and various Treasury debts (including special assessment debts) Total Dollar Amount of Contract: $53,114,229 Contract Duration: June 2005 Ongoing Client Contact Information: Mr. Anthony Miller, Court Administrator Municipal Court 1101 Locust Kansas City, MO Phone: 816/ Unified Government of Wyandotte County/Kansas City, Kansas Description of Work: Collection of various delinquent courts fees and fines Total Dollar Amount of Contract: $3,902,331 Contract Duration: June 2009 Ongoing Client Contact Information: Peggy Campbell, Court Administrator 701 N 7 th Street, Room 232 Kansas City, KS Phone: 913/ Saint Louis, Missouri Description of Work: Collection of various delinquent court fees and fines Total Dollar Amount of Contract: $24,000,926 Contract Duration: May 2008 Ongoing Client Contact Information: Ms. Catherine Ruggeri-Rea Court Administrator St. Louis Municipal Court 1520 Market Street St. Louis, MO Phone: 314/ Chapter I - Page 20 Qualifications for the City of Overland Park, Kansas

54 3.2.D. SURETY BOND FILING A surety bond in the amount of $50,000 was filed with the State of Kansas Secretary of State. Proof of the bond filing is provided, as required, in Chapter II. 3.2.E. SECRETARY OF STATE REGISTRATION Linebarger Goggan is registered with the Kansas Secretary of State. Proof of registration and the firm s good standing is provided in Chapter II. 3.2.F. ACCEPTING REPORTS IN ELECTRONIC FORMAT Linebarger Goggan is able to accept reports in any electronic format and on any schedule required by the City. We can accommodate transfer files in most text (fixed or delimited) or XML file structures, in addition to client-defined fixed length formats. A very common format, often preferred by our many clients, is a Comma Delimited (CSV) file format. 3.2.G. ENSURING CONFIDENTIALITY All information and personal data connected with the collection of the City s accounts will be considered confidential. Because the protection of confidential business information and trade secrets is vital to the interests and success of the law firm, each employee is responsible for safeguarding confidential information obtained during employment. The law firm requires that all employees sign a confidentiality statement at the time of hire and periodically throughout their terms of employment to acknowledge their awareness of, and reaffirm their commitment to, the firm's policy protecting law firm and client information. Any complaints regarding breaches of confidentiality will be investigated, reported, and resolved within 24 hours. Any legitimate confidentiality complaint may be grounds for immediate termination. The law firm also has strict policies regarding the shredding and destruction of confidential data, file sharing, and procedures that every employee must adhere to when handling client or law firm information. Our additional security features are provided earlier in this chapter under Item 3.1.G., Safeguarding Individuals and Data. 3.2.H. PAYMENT CARD INDUSTRY COMPLIANCE All information and personal data connected with the collection of the City accounts will be considered confidential. Each debtor s personal Qualifications for the City of Overland Park, Kansas Chapter I - Page 21

55 confidentiality will be protected through our Payment Card Industry (PCI) compliance. We have provided a letter of compliance from Digital Defense, Inc. below. Chapter I - Page 22 Qualifications for the City of Overland Park, Kansas

56 3.2.I. DISPUTES AND COMPLAINTS PROCESS We measure our customer satisfaction by our ability to retain clients over the long term. The majority of our original clients have been represented by our law firm for more than a decade. To achieve the level of customer service we demand of ourselves, we place strong emphasis on our employees, from the initial screening, recruitment and training, to job retention and advancement opportunities. Because we invest considerable resources in our personnel, we are able to retain qualified personnel to manage our collection programs and to work the delinquent accounts for our clients. Their job satisfaction results in better collections for our clients, better contract performance overall and minimal complaints. In those instances in which disputes or complaints are received, Linebarger Goggan treats this situation with the highest of priorities. The following provides an overview of our policies and procedures in responding to questions, disputes or complaints. Zero Tolerance/Complaint Policy Linebarger Goggan continually strives to minimize complaints and has a zero tolerance policy towards any valid complaint. Linebarger Goggan management vigorously and carefully investigates all complaints made against any member of its collection staff. It is of the utmost importance to the law firm that all citizens contacted are treated professionally and respectfully. For this reason, the law firm strives to hold open all lines of communication between the defendants, the collectors, and the client. Handling Defendant Disputes Linebarger Goggan will adhere strictly to all City guidelines when handling disputed accounts. If, during the course of reviewing any disputed case file, the law firm suspects fraudulent activity, the City will be notified immediately. In cases where the defendant disputes the actual debt or the amount outstanding, we generally request any necessary backup documentation from the City to verify the legitimacy of the account and amount owed. All correspondence confirming the debt owed is forwarded to the defendant. After an appropriate interval, we will resume collection efforts. If the defendant continues to make no effort to pay the amount owed, we recommend other legal enforcement collection options to the City, based upon the information available on the defendant and the eligibility of the debt for further legal action. If the disputed amount is determined to be inaccurate or invalid based upon our research and the City s documentation, we will communicate this information to the appropriate designated City point of contact to resolve the dispute and close the account. Accounts in this category may Qualifications for the City of Overland Park, Kansas Chapter I - Page 23

57 DISPUTED ACCOUNTS include accounts that have been paid previously, but not fully removed from the system, errors in initial billing, etc. Handling Defendant Complaints At Linebarger Goggan, experienced collection professionals supervise the collection floor and respond immediately to special situations that may develop in the course of a collection phone call. With over 90 percent of all defendant communications handled by these front-line personnel, possible complaints are minimized. The Collection Floor Manager reviews any defendant complaints and, when determined to be valid, flags the account and notifies the client within 24 hours. Complaints by Telephone All complaint calls are transferred to the Collection Manager and discussed with the defendant. The Collection Manager determines the legitimacy of the complaint and if valid, flags the account as a complaint. Within 24 hours a memo is sent to the client, informing them of the complaint. A copy of the collection notes are attached to the memo and forwarded to the client. Chapter I - Page 24 Qualifications for the City of Overland Park, Kansas

58 COMPLAINTS PROCESS Complaints by Correspondence The Collection Manager reviews all written complaints. The Collection Manager determines the legitimacy of the complaint and, if valid, flags the account as a complaint. Within 24 hours a memorandum is sent to the client, informing the client of the complaint, along with the collection notes and the correspondence from the defendant. If a defendant registers a complaint against a collector, the collector is required to prepare a memorandum explaining his/her conversation (oral or written) with the defendants. The memorandum is included in correspondence to the client. Confidentiality All information and personal data connected with the collection of City accounts are considered confidential. Any complaints regarding breaches of confidentiality will be investigated, reported to the client, and resolved within 24 hours. Qualifications for the City of Overland Park, Kansas Chapter I - Page 25

59 Regulatory Agency, Elected Officials, and Media Inquiries Because government entities are the law firm's primary clients, Linebarger Goggan deals with elected officials on a daily basis and fully appreciates the need for political sensitivity when contacting defendants. The law firm believes that it must do everything to eliminate complaints whenever possible, as there are two names that need to be protected the name of our client and that of Linebarger Goggan. Any communications from state or federal agencies, elected officials or representatives from the media will be immediately communicated to the City. The firm Project Manager for this project will work with the City to prepare a joint response. Linebarger Goggan will be readily accessible to City staff should an issue arise that would require immediate attention at the very highest level. We are committed to delivering the premier standards of customer service for our clients founded upon quality and partnership. By immediately addressing any issues or concerns that our clients have, we strongly believe that no issue should ever escalate to complaint status from our clients. 3.2.J. REMITTANCE OF PAYMENTS Linebarger Goggan agrees to remit 100 percent of payments received by City defendants, including fines, fees, and costs, to the City on a monthly basis or as otherwise required or agreed by the City. 3.2.K. REPORTING SCHEDULE We will establish a reporting schedule in the format and frequency desired and approved by the City. Any changes to the format or schedule can be changed at any time during the project based on the City s needs. 3.2.L. MONTHLY STATUS REPORTS Linebarger Goggan will prepare and provide a monthly Status Report in the format desired and approved by the City. The reports may be customized to include any information the City requires or requests. K.S.A does not appear to set forth specific reporting requirements. However, any reports requested by the City to comply with requirements of that statutory provision will be available. 3.2.M. ADDITIONAL REPORTS The reports we provide the City will include information such as receipt of placements, payment transmittals, account closures, and anything the City deems necessary. Our reports will include the following: Chapter I - Page 26 Qualifications for the City of Overland Park, Kansas

60 Monthly Status Report total of all court fees, fines, and costs for each account total amount collected Management Reports relevant statistical trends financial details Acknowledgment Report number of accounts data received total amount referred by the City Cancellation Report number and dollar amount of receivables canceled uncollectible or returned receivables reasons why they were uncollectible or returned bankruptcy or other legal actions taken on accounts Performance Report summary of aged receivables by category of debt number and dollar amount of receivables referred total number of accounts collected collection rate date of referral/return, age to resolution number of referrals currently working recovery rate of referred/returned receivables type of collection made according to type of debt repayment agreements effective at that time number and percentage of accounts returned to the City Invoice Report our total fee for that month 3.2.N. SPECIAL REPORTS We can generate other ad hoc or specialty reports that the City may require and provide them in whatever format desired. 3.2.O. ACCOUNT SETTLEMENT FOR FULL AMOUNT No account will be settled until the full payment has been processed, unless otherwise directed in writing by the City. Qualifications for the City of Overland Park, Kansas Chapter I - Page 27

61 3.2.P. UNCOLLECTED OR RECALLED ACCOUNTS Linebarger Goggan s fees are contingency-based; we only get paid when the delinquent receivable is collected. Furthermore, pursuant to Kansas law, collection services are provided at no cost to the City. If an account is deemed uncollectible or recalled, there will no be cost to the City for the collection efforts put forth on these accounts. 3.2.Q. COMMENCING SERVICES WITHIN THIRTY DAYS Linebarger Goggan understands and will eagerly comply with the expectation to begin commencing services within 30 days after contract award and execution. 3.2.R. PLANNED LEGAL ACTION ON AN ACCOUNT Our firm agrees to inform, and obtain approval from the City before taking any legal actions for any collection account. We will only move forward once guidelines are discussed and agreed upon between the firm and the City. 3.2.S. RETURNING RECALLED ACCOUNTS All collection efforts will cease immediately once the City informs us that an account has been recalled. The account will be returned to the City. It is the City s prerogative to reassess the account for collections at a later date; if this occurs, the firm is more than willing to begin collection efforts once again. 3.2.T. RETURNING ACCOUNTS AT TERMINATION It is understood that all accounts assigned to the firm will be returned to the City within 30 days after termination of the contract related to this City RFQ. 3.2.U. COSTS AND EXPENSES Linebarger Goggan s collection fee will encompass all costs, including administrative tasks, equipment, or supplies. No additional cost will be incurred by the City. 3.2.V. PROVIDING LEGAL SERVICES FOR TRANSFERRED ACCOUNTS As a law firm, Linebarger Goggan is qualified to provide any legal services required by the City for any accounts the City may transfer to the firm. As previously stated, we will only move forward on any legal action once guidelines are discussed and agreed upon between the firm and the City. Chapter I - Page 28 Qualifications for the City of Overland Park, Kansas

62 3.2.W. CITY S METHOD OF TRANSFERRING ACCOUNTS Linebarger Goggan understands that the City will determine the method of transferring accounts to the firm, as well as the scheduling of automatic transfers. It is anticipated that the accounts will be transferred in an electronic format pursuant to a routine schedule through an automated computer function. During the implementation process of this contract, Managing Partner Scott McGlasson and appropriate IT staff will meet with the City to determine preferences and implement the most efficient account transfer methods. 3.2.X. CANCELLING AND RECALLING ACCOUNTS If an account is recalled or cancelled by the City, there will no be cost to the City for the collection efforts put forth on these accounts by Linebarger Goggan. 3.2.Y. ADJUSTMENTS AND CORRECTIONS TO ACCOUNT DATA Linebarger Goggan understands that the City can reevaluate an account that has already been assigned to the firm and report the adjusted amount due to allow for continued collection efforts on that adjusted account. Qualifications for the City of Overland Park, Kansas Chapter I - Page 29

63 CHAPTER II RFQ ITEM 4.3 Experience/Qualifications of the Respondent With over 2,000 local, state, and federal clients, Linebarger Goggan Blair & Sampson, LLP (Linebarger Goggan) is a national leader in the collection of government receivables. Our performance has resulted in significant increases in collections and revenues for the clients who have chosen to partner with us to collect their delinquent receivables. Collection of court fees and fines similar in nature to your delinquent Municipal Court portfolio is one of our main focuses. We hope to have the opportunity to bring similar exceptional results and successes to the City of Overland Park, Kansas (City). 4.3.A. YEARS PERFORMING COLLECTION LEGAL SERVICES Linebarger Goggan was established in Since that time, we have focused singularly on providing collection of delinquent receivables owed to governmental units. Our success in providing unparalleled service and unmatched performance for our clients has elevated the firm from its genesis in Texas to the national stage. 4.3.B EXPERIENCE PERFORMING LEGAL SERVICES As stated above, our firm has spent the last three decades concentrating on the legal services and collections of delinquent government receivables. In Chapter I, we provide the City several examples of our collection success stories with other court fees and fines clients throughout the country, including Denver (CO), Kansas City (MO), and Miami-Dade County (FL). Registration with the State of Kansas Linebarger Goggan is registered with the Kansas Secretary of State. A copy of our registration is provided on the following page. In addition, we have provided a screen shot from the website showing our current status and good standing with the Kansas Secretary of State. Qualifications for the City of Overland Park, Kansas Chapter II - Page 1

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67 Surety Bond The law firm has obtained the required $50,000 surety bond. A copy of the bond is provided on the following pages. Qualifications for the City of Overland Park, Kansas Chapter II - Page 5

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72 4.3.C. UNDERSTANDING THE CITY S SCOPE OF SERVICES Linebarger Goggan is prepared to provide the City with all of its collection, technical, and legal services needs, including the tasks required in the City s RFQ, Section 2.0, Scope of Services: Enabling secure data transfers that maintain data integrity Support collection operations with web-based collection software Specialized collection notices Media campaigns Call center personnel Collection technology Legal resources to assure compliance to applicable laws Data Transfer Process Upon being awarded a contract, our Information Technology Group (ITG) will immediately create a secured database for the City. Each account placement is allocated a unique internal tracking number. This number is used to create client reports and to track the account placement data throughout the life of the account. We will establish, test, and confirm to the satisfaction of the City s programmers and technical support staff all of our network connections to verify appropriate levels of security and data integrity between the City s system and ours. Information that is not sensitive can be transferred by or standard SFTP. All information considered sensitive is transferred by one of several DOD-approved encryption logarithms. Most placement data is received via Electronic Data Interchange (EDI) using encryption technology over the Internet and our frame relay communication system. We can accommodate a wide variety of SFTP packages. For security reasons, we do not allow direct data transfer to or from our main computer system. This helps to maintain security for our system and our clients data. Linebarger Goggan uses several secure protocols for client data transfers: SFTP Linebarger Goggan supports SFTP (port 22) as a protocol for secure file transfers by using the OpenSSH client and server model. Web SSL Linebarger Goggan supports HTTPS file transfers through a secure Web page. All data transfers and logons occur within a 128 bit encrypted SSL session. IP Sec Tunnel Linebarger Goggan also supports the use of a client-to-server or LAN-to-LAN IPSec encrypted tunnel through Chapter II - Page 10 Qualifications for the City of Overland Park, Kansas

73 which a standard FTP session (port 21) can be established and encrypted up to 168 bits. PGP Linebarger Goggan also supports the use of PGP for encrypting files that are ed. Messages are encrypted with a user s key, which works in conjunction with scrambling algorithms to produce data that can be decrypted only by its intended recipient. Our file transfer servers receive files from our clients and send automatic notifications to our Client Managers and our Load Techs. The Client Managers track their specific clients data, while the Load Techs check the data for errors and proceed with loading the data into our CUBS Collection System once it is verified. Web-Based Access to Collection Data Linebarger Goggan can provide the City with web-based access to the City s data on our collection system via an encrypted session over the Internet, as required. This is a secure method of access for monitoring our system and the client s data. Our customized CUBS collection system is described in length further in this chapter. Customized Collection Notices Linebarger Goggan will develop customized collection notices that comply with all required laws and regulations and meet the City s approval. All letters will appear on law firm letterhead and will be mailed to the last known mailing address of the defendant. Each notice will clearly identify the City as our client and will contain the necessary details of the debt and total amount due, including fees, fines, and collection fee, if applicable. It will also warn that failure to pay the outstanding amount will result in the recommendation to use all possible enforcement mechanisms to collection the amount due. A toll-free number will be provided for the defendant to conveniently contact the law firm to resolve the matter. For payment, each notice will include a detachable coupon for the defendant to return payment by check, money order, credit card, or other payment options allowed and approved by the City. If the first notice does not result in a reply or resolution, subsequent notices will be mailed notifying the defendant of the continuing unpaid obligation and potential remedies that may be pursued in the event of continued failure to pay. In some instances, it may be beneficial to pursue collection efforts through specialized mailings. In these instances, collection notices may be customized according to the special circumstance in an effort to obtain the defendant s attention and Qualifications for the City of Overland Park, Kansas Chapter II - Page 11

74 encourage action. In addition, notices can be sent in both English and Spanish translations. The format and wording of all collection notices will be reviewed and approved by the City prior to implementation. Media Campaigns Linebarger Goggan has been working with hundreds of cities for years on cutting-edge techniques to enhance collections. One of these techniques is targeted media campaigns intended to inform citizens and offenders of their outstanding obligations, and providing information and options with regard to how the defendants may fulfill their obligations to the City. If awarded the contract, the firm will work closely with the City to determine how a media strategy may work with the collection program to further encourage payment and compliance from defendants. Examples of media campaigns that Linebarger Goggan has been involved in with other clients include such things as the development and distribution of public service announcements, press releases, and coordination of press conferences. Sample Press Releases and Media Coverage The following pages include a sample press release used to encourage media coverage of a delinquent parking fees and fines campaign in the City of Houston, Texas. The resulting article spotlights Houston s efforts to pursue litigation against offenders. Linebarger Goggan has the staff and expertise to carry out a similar program for the City s delinquent court fees and fines. Chapter II - Page 12 Qualifications for the City of Overland Park, Kansas

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77 Call Center Personnel Collection calls for the City will be handled by Linebarger Goggan s San Antonio Call Center, which specializes in handling collection of delinquent court fees and fines. John Wilson, Call Center Collections Operations Manager, will oversee the day-to-day activities at the San Antonio Call Center. Reporting to Mr. Wilson are 80 professional collection staff, including: 1 collection floor manager, who will supervise all activities on the collection floor 8 collections supervisors, who will monitor collector activities and assist them with difficult or complex accounts 2 administrative support personnel, who will support collection center activities 1 commercial collections supervisor, who will oversee all commercial account collection activities 68 collectors, who will contact defendants and work with them daily to collect delinquent court fees and fines owed to the City Call Center Overflow Capabilities Most calls are answered directly by a collector, and callers rarely experience unacceptable delays as the system is designed to automatically forward the call to the next available agent. The call center floor supervisor monitors the call volume to ensure that all calls are answered within an acceptable time frame. In the unlikely event that the San Antonio Call Center receives more calls than it can handle within acceptable timeframes, the overflow calls may be temporarily forwarded to one of the firm s seven other call centers until the call volume subsides to normal levels. At present, the law firm employs more than 250 professional collectors nationwide, all of whom are capable of handling collection calls for the City. Call Center Technology Linebarger Goggan s dedicated to optimizing collection efficiency and effectiveness while upholding the highest possible standards. We pioneered the application of high technology to delinquent collections when we entered the field three decades ago. Our representation of the largest governmental entities in states such as California, Florida, Illinois, Kansas, Pennsylvania, Texas, and Virginia, as well as the federal government, has led us to invest more than $60 million to develop the very latest, most sophisticated data processing and communications technology available. We are proud to offer the City our advanced technological systems for its delinquent fees and fines program. Qualifications for the City of Overland Park, Kansas Chapter II - Page 15

78 Linebarger Goggan Technical Highlights The law firm is NIACAP-certified, one of the most stringent standards for private sector systems security Over 140 professional IT employees maintain the law firm's network infrastructure and data processing operations Operate fully redundant network and data processing systems to maintain business continuity Since 1976 our in-house ITG has developed specialized applications and customized collection systems to manage a wide variety of government receivables. Linebarger Goggan s fees and fines collection program is managed using the Columbia Ultimate Business Systems, Inc. (CUBS) software, which our programming staff has adapted and customized for specialized law firm applications. We have developed easy-to-use custom features that are stable, effective, and do not interfere with basic CUBS program code. This system combines the best of a traditional collections software platform with state-of-the-art enhancements that allow Linebarger Goggan to meet our clients growing and specific needs for sophisticated software applications. To accomplish this task, we have focused on the automation, centralization, security, and standardization of our computer systems and collection programs. Our systems currently manage over $10 billion worth of delinquent and current receivables of all types for our clients and track over 100,000 related lawsuits and bankruptcy cases throughout the United States. We have more than 140 programmers and technical support personnel in our firm s ITG division. Our technology for collecting delinquent government receivables has not been successfully duplicated by any other law firm. The software applications we have developed enable us to continuously meet the changing needs of the delinquent receivables collection process. System Architecture Our system is composed of logically organized and easily upgraded telephone and data processing components. Reliable, international firms with an extensive network of local vendors manufacture all system hardware, allowing rapid component replacement or capacity expansion, if needed. Our system is technologically advanced and complex in its capabilities, but it is not complicated to use. Design simplicity gives our system flexibility and reliability. The system is based on a building block or modular component principle. Linking modular components together to form fully integrated system architecture permits rapid expansion, and planned redundancy, while reducing hardware downtime. The primary data processing and storage site for the firm s CUBS application is at IT Headquarters in San Antonio, Texas, with the backup recovery site located in Austin, Texas. Chapter II - Page 16 Qualifications for the City of Overland Park, Kansas

79 The major components and connectivity of the CUBS architecture include the following: Secure FTP Server (for data file I/O) Avaya phone system (with call processors, telephony switches, media gateways and call management servers) Cisco phone system (with core switches, voice and VM gateways, call management servers, and internet connectivity) Tandem server/processors with content load balancing CUBS application production, test, and development servers Netapp Filer (for secure data retrieval and loads) SANS storage device Dialers (CUBS and TouchStar) Credit card transaction server Call recording server (TouchStar) Call accounting server (Symphony) Generator and UPS boxes With this scalable and redundant architecture in place, the firm is able to meet the data processing and communication needs for multiple clients while addressing requirements for security, WAN connectivity, broad bandwidth, robustness, and business continuity (disaster recovery). Interactive Voice Message System 24 Hour Availability We have interactive voice mail software (IVR) resident on our phone system, along with our automated call distribution software. The IVR programming directs the caller to the appropriate mailbox for various call options by identifying the incoming client-specific toll-free number used. The IVR provides defendants with several options, including informing them of the anticipated time to contact with one of our collectors (maximum wait time of 30 seconds). It allows defendants to leave a message for the specific collector that contacted them; they may also leave a general message, which will be forwarded to an appropriate collector the following morning. This system operates 24 hours a day for the convenience of any after-hours callers. Documenting Account Activity As collection activity is pursued on each account, the account history is entered into our database to create an accurate and continuing record of account activity and historical notes. The actual activity screen for our customized Columbia Ultimate Business System (CUBS) collection software (graphic on the next page) shows the current amount due, including interest and collection cost. All collection or skip-tracing activity is recorded by the collector for each account. Collection managers can review collector activity on all accounts to assure that they are providing quality customer care and performing all necessary steps to collect the delinquency. Qualifications for the City of Overland Park, Kansas Chapter II - Page 17

80 CUBS ACTIVITY SCREEN Legal Resources to Assure Compliance to the Law As a national law firm, Linebarger Goggan is uniquely qualified based upon the legal resources we are able to bring to bear to assure compliance with all local, state and federal laws and regulations and any additional requirements as set forth by the City. Attorneys Currently, Linebarger Goggan has 109 attorneys located throughout the country in our 45 offices. This vast network of licensed, geographically diverse attorneys will ensure compliance in all jurisdictions, including Kansas. Legal Internal Subcommittee In addition to the individually licensed attorneys, Linebarger Goggan has an internal Litigation and Legal Standards subcommittee that continually monitors legal issues and developments in all jurisdictions. This subcommittee also reviews and approves the various collection policies and procedures to ensure compliance with all necessary laws and regulations. Collector Training All firm collectors complete a rigorous training program on all applicable laws when they join the law firm and receive refresher courses on any changes in laws, regulations, and procedures affecting collections. Our collector training program is described in more detail in Chapter IV. Chapter II - Page 18 Qualifications for the City of Overland Park, Kansas

81 4.3.D. WHAT SETS LINEBARGER GOGGAN APART FROM OTHER FIRMS Best Practices Approach Linebarger Goggan offers customized, technically advanced collection methods that have performed successfully for our clients for 34 years. Our collection programs feature: In-house attorneys and legal staff We employ 109 attorneys, licensed and located in diverse geographic areas across the country. This allows for broad-based legal and collection coverage in jurisdictions across the nation by our own in-house attorneys -- allowing us to retain better control, oversight and continuity in handling collection matters by not having to outsource collection efforts to external law firm entities. Client responsiveness and team flexibility We listen to our clients and tailor our approach to meet or exceed their goals. Our clients continually choose us over our competitors. Proven, experienced leadership and management Our partners and managers instill a positive, professional, and demanding work ethic. Our management team recognizes and rewards performance that rises above industry standards. Trained work force We train our collectors to use a collaborative, sensitive, yet firm approach when contacting debtors. This approach has proven to be a highly successful method of eliciting the maximum response from debtors. Enhanced technology We use our enhanced, collector-friendly computer systems, along with the latest in telecommunications. Using these systems, our collectors can easily make personal contact with the defendant and inform them that a law firm is contacting them, which is key to our success. We also maintain online access to all nationally available information sources. Regulatory awareness and compliance Our regular compliance training ensures that our managers and collectors remain current on all federal/state laws and regulations governing the collections industry. Decades of Experience Collecting Delinquent Government Receivables Pursuing the collection of delinquent court fees and fines and doing it right and well is an art form. The law firm must hold a specialized understanding of the particular characteristics of that debt type, as well as possessing intimate knowledge of the legal processes and procedures required for collecting it. Linebarger Goggan is a pioneer in collecting court fees and fines, and our expertise has been developed over years of handling court collections for numerous court clients across the country. Qualifications for the City of Overland Park, Kansas Chapter II - Page 19

82 Because the collection of delinquent court debt is so unique and specialized, few collection providers or law firms possess the necessary and desired expertise to effectively handle the collection process in such a way as to meet necessary legal requirements and satisfy client expectations. Linebarger Goggan has 34 years experience in collecting this type of government receivable. We are one of the largest law firms in the nation possessing the expertise in delinquent court debt collections, and we routinely handle this process for clients across the country. Our clients range from small towns and villages to the largest of cities, counties, states, and even the federal government and each client receives unparalleled personal attention and service. We understand every aspect of collecting delinquent court receivables and we are able to provide insight, suggestions, and answers to questions or issues that may arise during the collection process. Our open communications will begin immediately upon contract award notification and will continue consistently through the contractual relationship. It is our intention to always make you feel that you have a reliable and available partner in the process. Unmatched Results and Success Two factors contribute to our unparalleled success in collecting delinquent government receivables. First, we are a law firm possessing extensive experience in handling specialized court fees and fines collection matters. Second, our philosophy is to never give up on our efforts to collect the sums owed to our clients. As reflected in examples in Chapter I, Linebarger Goggan achieves superior results for our delinquent court fees and fines clients throughout the nation. We honor the opportunity to demonstrate achievement of similar results through collection efforts on behalf of your City. Regional Resources and Commitment to the City Because our law firm operates 45 offices nationwide, this broad geographic diversity allows for a beneficial local connection to the defendants and staff of your City. Partner Scott McGlasson manages our local Kansas City regional office and oversees client contracts in the region including operations in Kansas, Arkansas, Kentucky, Missouri, Oklahoma and Texas. As a resident of Johnson County, he holds a personal and inherent understanding of, and connection to, the regional values and ideals. Mr. McGlasson is on-the-ground in your county and city, and is personally available and accessible to your Court and to the citizens and defendants you serve. Chapter II - Page 20 Qualifications for the City of Overland Park, Kansas

83 To our best abilities, it is always our intent to immerse ourselves within the client s local and regional fabric and culture to obtain the best knowledge and understanding of local sentiment, attitudes, and important daily matters. With this understanding, we believe our collection successes are maximized for the benefit of the City. Based upon current regional government clientele and the connections that already exist throughout the region, we believe our firm will provide distinct and measurable advantages to your City that will directly translate into immediate benefits including: enhanced revenues for your City; high levels of satisfaction for your defendants, your City staff with whom we work, and your elected officials; and effective and positive public and constituent relations resulting from our diligent efforts. Personal Contact and Availability We build strong partnerships with our clients with the intent of retaining those relationships for decades and lifetimes. We have gained the respect and loyalty of our clients because they have confidence in our people, our collection methods, and the results we achieve through our strong client relations and partnerships. From the date of notification of the contract award through the entire term of the contract, Project Manager and Partner Scott McGlasson will be available to the City for direct and personal communications relating to the contract. Mr. McGlasson will be available to all City staff involved in the actual collection processes, as well as available to any City-elected or appointed official who may wish to make inquiry or discuss the collection contract project. Professional Recognition Linebarger Goggan has been professionally evaluated by several wellknown independent parties and consistently receives high reviews. Linebarger Goggan accepting the USCM Award, 2007 Member of the U.S. Conference of Mayors Business Council and a Platinum Partner of USCM a designation earned through the award of three public-private partnership awards over a span of six years. The former USCM President Mayor Douglas Palmer stated, any business that earns three public-private partnership awards with USCM has to be doing something right. Winner, U.S. Conference of Mayors 2007 Award for Outstanding Achievement in partnership with the City of Houston to redevelop blighted and abandoned properties in inner-city neighborhoods. Roughly 500 properties have been acquired by the Land Assemblage Redevelopment Authority for development into affordable housing. Qualifications for the City of Overland Park, Kansas Chapter II - Page 21

84 Winner, U.S. Conference of Mayors 2004 Award for Outstanding Achievement in Partnership with the City of Chicago for collecting over $24 million in delinquent receivables in less than two years and more than $141.6 million to date. Winner, U.S. Conference of Mayors 2001 Award for Excellence in Partnership with the City of Dallas to date over $881.3 million collected in delinquent tax revenue for the city and school district of Dallas. Ranked by our clients as Excellent in a recent survey conducted by Dun & Bradstreet. Memberships and Certifications Linebarger Goggan is a member of the American Collectors Association (ACA) in several states, which also grants our law offices in those states membership in ACA International, the Association of Credit and Collection Professionals. We also participate in the ACA Healthcare Services Program, Members Attorney Program and Government Services Program. We are corporate members of the National Association of Counties and the U.S. Conference of Mayors. In addition, we actively participate in a multitude of other organizations throughout the country in order to support our clients and their various public interest and educational opportunities. National Memberships ACA International ACA Healthcare Services ACA Government Services Program ACA Members Attorneys Program CLLA Commercial Law League of America USCM United States Conference of Mayors NACO National Association of Counties NACM National Association of Court Management NALEO National Association of Latino Elected Officials NOBCO National Association of Black County Officials State Bar Associations Arkansas Louisiana North Dakota Colorado Maryland Ohio Delaware Massachusetts Oklahoma District of Columbia Missouri Pennsylvania Florida Nevada Tennessee Georgia New Jersey Texas Illinois New Mexico Utah Kansas New York Virginia Kentucky North Carolina Chapter II - Page 22 Qualifications for the City of Overland Park, Kansas

85 Equal Opportunity Employer Linebarger Goggan is an Equal Opportunity Employer and is committed to supporting diversity in its workforce. Forty-five percent of ownership in the firm is held by women and minorities. The firm does not discriminate against any partner, employee or applicant for employment because of race, color, religion, gender, age, disability, or sexual orientation. This policy applies to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. All of Linebarger Goggan s solicitations or advertisements for employees state that all qualified applicants will receive consideration for employment without regard for race, color, religion, gender, age, disability, or sexual orientation. We believe that it is important that our organization be as diversified as the communities in which we collect. No other law firm in our business can match our commitment to affirmative action and diversity. The gender and ethnic diversity of our firm employees is depicted in the pie charts below to demonstrate our commitment to providing opportunities for women and minorities, both within our firm and in the communities we service. LINEBARGER GOGGAN GENDER AND ETHNICITY FIRM WIDE Qualifications for the City of Overland Park, Kansas Chapter II - Page 23

86 Financial Strength and Capability Our firm has been engaged in the collection of government receivables for 34 years. We possess the financial resources necessary to meet and exceed the requirements of the City. Our financial position is strong, and our size and historic performance give us access to substantial financial resources that may be necessary to fully represent our clients. Linebarger Goggan and its predecessor firms have never filed for bankruptcy protection and have never taken any actions with respect to insolvency, reorganization, receivership, etc. We can provide any additional information the City may require to demonstrate our ability to perform the work outlined in our proposal. Insurance Coverage Linebarger Goggan maintains an insurance policy in place to cover professional liability in amounts of $3 million, general liability in amounts of $1 million, and employee negligence in amounts of $2 million. Our automotive and worker s compensation insurance is set at $1 million each. If necessary, we will increase any coverage that we currently possess to meet the City s requirements. Insurance shall be maintained for the duration of the contract. No policies will be cancelled without prior notice to the City of at least 30 days. Acord Certificates for our current insurance policies can be provided upon request. 4.3.E. PAST OR PENDING LAWSUITS A list of the firm s past and pending litigation for Linebarger Goggan is provided in Exhibit A. When considering the overall volume of litigation and complaints, this must be viewed with some context, and not simply on a purely numerical basis. Furthermore, the actual merit of the litigation or complaint must be considered. A large majority of litigation and alleged complaints against the firm are ultimately either dismissed by the Court or not pursued on the basis of being unwarranted and without merit. As previously stated in other sections, our law firm: has been in business since 1976 represents more than 2,000 government clients across the U.S. collects more than $1 billion each year for clients manages more than $10 billion in government receivables collects accounts in all 50 states manages more than 24 million accounts in our databases services an average of 2,500,000 accounts per month receives approximately 200,000 new accounts for collection each month Chapter II - Page 24 Qualifications for the City of Overland Park, Kansas

87 routinely manages in excess of 100,000 client lawsuits a majority of which involve delinquent ad valorem / real estate tax collections wherein the litigant automatically includes every known or unknown party, including Linebarger Goggan, as a defendant in their lawsuit regardless of true merit. All things considered, and in the appropriate context, we believe that our record of compliance speaks highly of our commitment to excellence. Likewise, it is our belief that the relatively minimal volume of complaints and litigation against our law firm reflects the integrity and overall successful collection philosophy that our law firm will bring to your Court. Lastly, as a general proposition, handling the collection efforts on a court fees and fines portfolio such as that for which your City seeks our services is relatively litigation and complaint free due to the nature of the underlying debt and the various remedies available for resolution of the matter. Based upon our years of experience in this area, we anticipate minimal complaints as we collect on behalf of your City. Compliance with Collection Laws and Regulations Linebarger Goggan has an excellent record of compliance with all laws and regulations regarding collections. No contract has ever been terminated due to inappropriate collection activities on the part of our employees or the inability of the law firm to perform as specified in a contract. In addition, we have never had a judgment taken against our law firm for violating any laws or regulations governing our collection efforts. As we actively pursue collection activities and/or file lawsuits (mainly relating to ad valorem / real property tax matters involving foreclosure proceedings) on behalf of our clients to collect their delinquent receivables, we do become involved as a party to a lawsuit on occasion. In those instances in which we are involved as a party to a lawsuit, we strenuously defend our position based upon the confidence in our policies and procedures, as well as the years and years of our historically clean track record of compliance. No Decrees or Judgments No cases have been decided against the firm as the result of trial. Some of the suits described below in which the law firm was a defendant were settled, often for nominal damages less than the costs of a defense. After 34 years of providing professional collection services to our clients, Linebarger Goggan has never had a Fair Debt Collection Practices Act (FDCPA) judgment or a Federal Trade Commission decree entered against it. Additionally, Linebarger Goggan has not had any order, judgment, or decree of any Federal or State authority barring, Qualifications for the City of Overland Park, Kansas Chapter II - Page 25

88 suspending, or otherwise limiting the right of our firm to engage in any business practice or activity issued against it during this time period. Law Firm Initiatives to Ensure Highest Ethical Standards The law firm has made an uncompromising commitment to adhere to the highest ethical standards in the collection industry. To achieve that goal, we implemented several structural and management changes to ensure that an incident of this nature will never occur again. Among those changes are: retention of an outside Ethics Advisor, who is a former chair of the State Bar of Texas, the professional organization responsible for licensing and oversight of all attorneys professional behavior in Texas establishment of an in-house general counsel who developed and implemented the firm s current code of ethics; with 18 years as a former county attorney providing legal counsel to elected officials on civil matters, he is responsible for monitoring firm compliance with the code of ethics formal adoption of the code of ethics applicable to all employees and representatives associated with the firm ongoing training and education of all employees and representatives associated with the firm 4.3.F. PAST OR PENDING COMPLAINTS From an overall historical perspective, very few grievances have been made against the firm. A list of all grievances on file against the firm or its attorneys has been provided in Exhibit A. As seen throughout the list, a majority of the grievances have been dismissed or closed, or no further information or ruling has been provided since the grievance was made. As complaints are normally lodged with regulatory agencies, a non-response is often synonymous with a dismissal or acknowledgement that the complaint is without merit. Please see Section 4.3.E above for additional commentary and context. Chapter II - Page 26 Qualifications for the City of Overland Park, Kansas

89 CHAPTER III RFQ ITEM 4.4 Technical Ability Our firm s collection philosophy is to maximize revenue with the least administrative burden to our clients and to work in full compliance with all applicable laws and regulations. Linebarger Goggan Blair & Sampson, LLP (Linebarger Goggan) achieves this goal by tailoring our comprehensive services to the client s criteria, retaining professional and courteous legal and collection personnel, developing and supporting the most advanced collection technology systems available, and maintaining personal communications with our clients and the communities they serve. 4.4.A. LEGAL SERVICES Legal Collection Services Linebarger Goggan provides a full range of comprehensive collection services to our government entity clientele. Although it is not always necessary that collection services be pursued through legal / litigation methods, there are distinct advantages to a government client when contracting with a law firm for collection services. When your city contracts with Linebarger Goggan, an attorney-client relationship is created. Through this relationship, we pursue collection efforts diligently on our client s behalf. Further, we hold our client information in strict confidence a result of our ethical obligations, as well as our unique technological capabilities with regard to data and information security. Upon receipt of client data and account information, we commence processing and collection efforts in earnest. All written communications and collection letters to delinquent defendants appears on law firm letterhead. All non-written communications are clearly identified as being from a law firm. As a result, defendants generally perceive these communications as being relatively serious and invoking a necessary and immediate response. In the event a defendant has moved or is otherwise lost, our law firm utilizes highly effective and efficient skip-tracing methods intended to determine new location information and find the lost defendants. All communications from our law firm are intended to provide notice to the delinquent defendant that an account remains open and unpaid and provide that defendant with information and details allowing and encouraging the defendant to resolve the account through payment options or other resolution options approved by the court. Qualifications for the City of Overland Park, Kansas Chapter III - Page 1

90 Our comprehensive collection services are proven to increase revenues, assist defendants in resolving their outstanding obligations, and reducing the volume of unresolved cases on the court docket. Detailed information relating to our collection procedures is provided further in this chapter in the section titled 4.4.C. Collection Procedures. Additional Legal Services In addition to the firm s collection services, Linebarger Goggan attorneys routinely provide clients with legal advice and counsel on collection matters and keep them apprised of changes in the law that may affect their collection processes. Because of their extensive legal training, continuing education, and experience, they can evaluate and interpret the vast and complex maze of federal and state statutes, regulations, court decisions, and administrative rulings that govern the collection of delinquent receivables. These services are provided at no additional cost to the City of Overland Park (City). Litigation Due to the general nature of collecting municipal court debt (i.e., accounts with outstanding or potential warrants, but generally without civil judgments that allow collection through legal means such as wage garnishment and other various civil remedies), it is not anticipated that litigation will be a routinely requested or necessary service that will be of interest to your City. In the event some portion of the City s delinquent court debt portfolio may lend itself to the need for litigation services, we will implement this service into the collection program following discussion and approval of the procedures with your City. 4.4.B. COMMUNITY RELATIONS Through years and decades of representing government entity clients, Linebarger Goggan understands the sensitivities and issues that may arise as we pursue collection efforts on behalf of your City, where defendants are constituents, voters, and often neighbors. Managing Partner Scott McGlasson resides in Johnson County and is in touch with the overall pulse of the Overland Park area. Through this familiarity and community awareness, issues relating to this collection project may be handled and resolved in a relevant and positive manner that is consistent with the ideals and values of the community. The firm maintains the highest levels of integrity and professionalism when dealing with defendants, City staff and elected officials, and media inquiries. Through these continuing professional and courteous interactions, positive public relations are developed and enhanced for the City and our law firm. Chapter III - Page 2 Qualifications for the City of Overland Park, Kansas

91 As Overland Park citizenry become increasingly informed and aware of the City s efforts to collect on delinquent court fees and fines, they will begin to understand and even support the need to collect these unpaid sums in an effort to reverse the devastating impact of this unpaid debt burden on the City budget. Past experience with numerous court fees and fines clients has shown our firm that citizens look positively on these efforts to collect the money owed to the City, which can be funneled into enhanced services and programs. Linebarger Goggan is prepared to discuss any additional community relations-related services the City feels would assist in the effort to collect delinquent fees and fines. 4.4.C. COLLECTION PROCEDURES Linebarger Goggan offers the City a turnkey solution for collecting delinquent fees and fines. Operational tasks include developing effective and customized mailings, skip tracing, outbound call campaigns, payment processing, and providing information to the City via regular management reports and communication with the City s personnel. Our service will also include all equipment (hardware and software), telecommunications devices, insurance, and security services necessary to complete collections tasks. Sample Work Plan The following sample work plan outlines the general activities that would be implemented upon receiving the City s approval. The actual work plan varies from client to client, and the City s work plan will be tailored to its specific needs. Step-By-Step Description Load the City s referral information into the firm s database, and acknowledge all accounts received. Confirm and/or update all available addresses for defendants prior to the first mailing using integrated skip-tracing software. Generate letters for newly placed accounts. Included with these mailings are all active delinquent accounts in the Linebarger Goggan database belonging to a particular defendant. Mail firmly worded collection notices approved by the City in English and Spanish to all defendants, instructing them on payment options and procedures. The notices clearly identify the City as the client and contain the total amount due, including fees, fines, and collection fee, if applicable. They also warn that failure to pay the outstanding amount will result in a recommendation to the City that it use all possible enforcement mechanisms to collect the amount owed. Qualifications for the City of Overland Park, Kansas Chapter III - Page 3

92 Send a series of stronger, follow-up letters to those individuals who do not pay or respond as required. All collection notices will be approved by the City prior to use. Scan bar codes on returned mail, update the account files, and send the returned mail file to the skip-tracing unit. Research bad defendant addresses, using online skip-tracing tools to identify the correct telephone numbers and addresses. Update all defendant information and forward to the collection queue. Contact all accounts with valid phone numbers. Coordinated with all mailings, the telephone collectors will make repeated efforts to contact the defendant to secure full payment of their delinquent fees and fines owed to the City. Linebarger Goggan has a professional call center staff that works weekdays, nights, and Saturdays. After the initial mailing and telephone contact phase, all accounts are evaluated and prioritized to maximize results. Maintain a detailed activity and payment history on every account. Defendants with broken promises to pay (i.e., payment plans in default) are contacted promptly. Apply all legal and ethical enforcement mechanisms, as authorized and approved by the City. Work with the City s staff to find other methods for enhancing the collection program, such as media campaigns and community relations efforts. Identify uncollectibles (such as deceased or incarcerated defendants) and return those accounts to the City with appropriate documentation and recommendations on future actions, as instructed. Submit management reports that provide details on collection activities. The Linebarger Goggan collection process starts with the transfer and initial placement of delinquent accounts from the City to the law firm. Once the data has been transferred and confirmed as accurate, a twophased approach is implemented: skip tracing and defendant contact processing. Within each of these phases, distinct events must occur to make the collection process comprehensive and effective. We have included a general flowchart of our collection process on the following page. This process will be evaluated following the initial collection phase and adjusted to maximize collections based upon the portfolio's specific characteristics. It is important to note that the Linebarger Goggan collection processes are the same for all defendants and all accounts, regardless of the dollar value of any particular account. By zealously pursuing collection Chapter III - Page 4 Qualifications for the City of Overland Park, Kansas

93 efforts in this manner, we routinely collect accounts on behalf of our clients that other collection vendors and law firms simply would not even be pursuing. LINEBARGER GOGGAN COLLECTION PROCESS Qualifications for the City of Overland Park, Kansas Chapter III - Page 5

94 Initial Placement Linebarger Goggan accepts the electronic file transfer for accounts being placed with it for collection. NCOA Search The placement automatically generates a request to the National Change of Address database for current address information and a request to a national database for phone and other related data. Information is returned within 24 hours and includes address standardization, ZIP+4+2, and phone numbers. ZIP data is used for collection notice mailings and other related correspondence to increase the probability of delivery and collection of the debt. Confirm Telephone Number The law firm utilizes multiple national skip tracing databases to secure accurate telephone numbers. We incorporate an automated process within our account management system to systematically scan these databases in the event an initial or new contact number is needed. This process will find the highest probable phone match to maximize the chances of obtaining a positive hit. This data is then loaded into our system with the previous data remaining captured to both track our contact/skip-tracing history as well as ensuring the elimination of duplicative requests. In the event our automated skip-tracing processes do not locate a valid telephone number, the account moves to our interactive skip-tracing unit. This unit of well-trained, experienced skip tracers has on-line access to public and proprietary databases. By searching these databases, they are able to obtain information and leads that allow them to find missing information by drawing conclusions that would not surface from an automated search. Record New Data The defendant's account data is updated from the results of the various electronic data searches, and our efforts to contact each defendant begin. The initial notice is sent to the defendant after receiving the placement from the City. If contact is not established, the account moves directly to the advanced skip-tracing process. Collection Notices The initial notice is prepared and mailed to the defendant. If contact is not established, the account moves directly to the advanced skip-tracing process. Additional collection notices are queued and sent if the defendant does not respond as requested. All collection notices will inform the defendant that the account has been placed with our law firm and provide a toll-free phone number for the Chapter III - Page 6 Qualifications for the City of Overland Park, Kansas

95 defendant s use and convenience. A detachable payment coupon and return envelope is standard with all collection notices. The format and language shall be approved by the City. Returned Mail/Address Correction The U.S. Postal Service returns collection notices that are undeliverable. All Linebarger Goggan notices are mailed with instructions to the U.S. Postal Service to provide change of address/address correction information if the defendant has moved and left a forwarding address. When returned, our Data Control Section will process these letters and update the account file with the new address information so that new collection notices can be sent out based upon the updated information. Notices with no forwarding address will also be flagged. Notices that produce responses from defendants are directed to telephone collectors for processing. Dialer Campaign Linebarger Goggan s customized Columbia Ultimate Business Systems (CUBS) software system is fully integrated with our predictive dialers. Result codes generated by the dialing campaigns are automatically uploaded to the CUBS system to re-status and move accounts to the collection phase. Once the new account data is recorded, repeated proactive attempts to contact the defendant begin in earnest. Accounts with good phone numbers are processed to phone campaigns and passed to individual collectors. Outbound and Inbound Call Activities Dialer outbound calls are continuously distributed to professional collectors who make contact with the defendant. The collector will verify the defendant s identity, confirm basic information, and initiate a dialogue to resolve the delinquent account through: payment in full, payment arrangement, administrative resolution, or other case resolution, as approved by the City. Collectors also handle all inbound phone calls resulting from inquiries on a mailing, other correspondence, or payment plans. The Dialer can call all supplied phone numbers, including home, work (if allowed under the applicable law of the jurisdiction), and can be reached at numbers, as well as any other numbers that have been provided to the dialer database. If the telephone campaign determines that the numbers in the database are incorrect or disconnected, the account is forwarded to our tiered series of databases for skip tracing. Once an accurate number is identified, the collection process starts again. Dialer campaigns will be run regularly to obtain payment in full from the Qualifications for the City of Overland Park, Kansas Chapter III - Page 7

96 DIALER CAMPAIGN PROCESS defendant; campaigns will be staggered to maximize the potential likelihood of contact with the defendant. If contact is not established during any of these campaigns, the account will move directly to the skip-tracing process to locate a better phone number and address. Linebarger Goggan s collection campaigns and collection system are 200 to 300 percent more efficient than regular manual collection efforts. We have included a flowchart of our dialer campaign process on the following page. Chapter III - Page 8 Qualifications for the City of Overland Park, Kansas

97 Toll-Free Numbers for Incoming Calls During mailing periods, our call center will respond to all defendant calls daily. Linebarger Goggan provides a toll-free number for the convenience of defendants. The call center staff works from 7:00 am to 9:00 pm, Monday through Thursday; from 7:00 am to 5:00 pm on Friday; and from 8:00 am to noon on Saturday (CDT). An interactive voice mail system operates after hours to assist callers. The defendant may leave a message for a specific collector, who will contact him/her on the following business day. The nature of the incoming calls varies and requires a well-trained staff with the attitude to help defendants resolve problems and meet their financial responsibilities. With our experience in dealing with defendants and their related problems, we serve our clients by providing prompt resolution by telephone, saving defendants time and alleviating their frustrations. Interactive Skip-Tracing Process If the law firm's automated process fails to produce a telephone number, the account moves to the interactive skip-tracing unit. This unit of well-trained, experienced researchers possesses excellent telephone skills, inquisitive minds, and the persistence to stay with the search until the missing debtor is located. These sources give Linebarger Goggan s skip tracers information and leads that allow them to draw conclusions that would not surface from an automated search of databases. Linebarger Goggan s skip-tracing agents have online, interactive access to most of the major companies in the automated skip-tracing business, as well as state and local agencies, including (but not limited to): NCOA from Lexis Nexis Lexis Nexis Best Address Cognitive Data All online sources are stored in our master data files. The firm has designed and enhanced algorithms that combine only pertinent skip-trace data from all available online sources onto a single skip-tracing screen. This enhancement greatly increases skip tracing productivity. These skip-tracing features allow collectors to obtain phone numbers for known debtor addresses online. They also have the capability to access national skip-tracing databases for every state, city, and zip code from last known address to new geographic locations. Accommodating Special Defendant Needs Non-English Speaking Defendants Most of our collectors are bilingual, while some are trilingual. Spanish language translation is available for all communications with defendants, Qualifications for the City of Overland Park, Kansas Chapter III - Page 9

98 including but not limited to, written, verbal, and telephone communications. The San Antonio Call Center will manage the collection process for the City. This call center staff is 50% bilingual in English and Spanish. There are also several collectors that speak Creole, German, French and Vietnamese. In addition, there are more than 120 bilingual collectors in our seven call centers around the nation, any of which can provide assistance to the City team if necessary. The additional languages spoken that are not listed above are Arabic, Italian, Polish, Portuguese, Russian, and Urdu. Accommodating Hearing Impaired or Blind Defendants Usually defendants with speech or hearing impairments will use a TDD service (Telecommunications Device for the Deaf), and they may contact us through those phone systems. If available, we can print the City s TDD phone access number on all law firm collection notices for the convenience of any hearing-impaired defendants. If necessary, we can also communicate with these individuals via in real time, while accessing the relevant collection data from our system to inform them of the charges/fees outstanding. All communications with blind defendants (or with individuals with extremely impaired sight) will be handled by telephone, after the initial contact by collection letter, unless written documentation is required. Collection Status Reporting As previously described in Chapter I, we can provide reports at any interval the City requires. In addition, the City may access collection data details and statuses from our CUBS collection system via encrypted session over the Internet. Handling Deposits and Reporting Payments to the City When collecting court debt accounts where there is the possibility of a warrant outstanding, it is critically important to handle these matters in a timely manner. It is always the intent of Linebarger Goggan to immediately report and forward collected funds to the possession of the City at the earliest possible opportunity. By notifying the City and getting the funds into the City s possession at the earliest opportunity, the City is able to immediately process any warrant recall or other internal procedure in a timely fashion and without delay. This critical process provides protection to all parties involved the defendant; the Court; and Linebarger Goggan and is intended to prevent the possibility of any defendant being arrested on a warrant that remains active after payment of the outstanding account balance. Chapter III - Page 10 Qualifications for the City of Overland Park, Kansas

99 During the implementation process, Linebarger Goggan will focus attention to this issue and develop a notification and fund remittance and disbursement plan that will meet the mutual needs, and provide the highest level of protection to the City and our law firm. 4.4.D. SETTLEMENT PROCEDURES Linebarger Goggan will not unilaterally settle any City account without specific authority and approval. Because the accounts we anticipate receiving for collection from the City are delinquent court fees and fines accounts, we understand that the Court retains full jurisdiction and control over the defendant, the underlying citation, the fines due to the Court and, in some instances, over the outstanding warrant issued against the defendant. As a result, we do not believe that we have the authority to negotiate nor settle any account without specific direction and instruction. In the event the City or Court wishes to provide specific settlement authority policies and procedures, Linebarger Goggan will be happy to implement those policies into our collection strategies and procedures. 4.4.E. ACCEPTING ELECTRONIC TRANSFER OF ACCOUNTS As previously stated in Chapter I, we can accept transfer files in most text or XML file structures, in addition to client-defined fixed length formats. 4.4.F. PAYMENTS TO THE CITY We will make remittance payments to the City on any schedule deemed necessary (daily, weekly, monthly, etc.). We will meet with City representatives during the implementation stages of this contract to determine preferences and requirements. We will also develop a payment processing plan and a remittance plan schedule that will meet the City s expectations and needs. Payment Processing Options Linebarger Goggan has the capability to handle payments from defendants in a wide variety of options. We will meet with representatives of the City during implementation stages of this contract to determine preferences and develop a payment processing plan that will meet the City s expectations and needs. We understand that the most important goal in this context is to simply receive payment from the defendant. In this regard, we always offer a variety of payment options that are convenient and will encourage payment from the defendant. Among Municipal Court clients, it is often a generally accepted preference of courts that all payments from defendants be directed from Qualifications for the City of Overland Park, Kansas Chapter III - Page 11

100 the defendant directly to the City. The advantages to the City in receiving payments directly from the defendant include, among others, the City s immediate deposit and access to the funds, immediate application of the payment funds to the defendant s account, and immediate processing and recall of any outstanding warrant against the defendant. Linebarger Goggan is able to accommodate this payment option if the City so desires. A detachable payment coupon and return envelope are standard with all Linebarger Goggan collection notices. If defendants wish to pay in person, they will be directed to the City s existing payment processing center. Defendants will also be informed of any additional payment options offered by the City (by mail, phone, web site, etc.). Remittance and Disbursement of Funds Linebarger Goggan will remit and disperse any collected funds to the City through electronic funds transfer on any schedule required by the City (daily, weekly, semi-monthly, etc.). Resolving Payment Anomalies Overpayments If an overpayment has been made, we will adhere to the instructions provided by the City for handling overpayments. Underpayments We generally treat underpayments as partial payments and apply the amount to the account, while collection efforts continue to collect the remaining balance through ongoing partial payment arrangements. Non-Sufficient Funds Upon notice of a check returned for non-sufficient funds, the defendant is informed that the check will not clear the bank. This includes stop payments, closed accounts, credit card charge-backs, etc. after notification the electronic transaction is resubmitted. Unidentified Payments In the improbable event of an unidentified payment, the payment will be researched and handled as per the City s instructions. Lost or Stolen Payments In the unlikely event that a payment is lost or stolen, Linebarger Goggan will investigate and report the incident within 24 hours. The issue will be resolved expeditiously to the satisfaction of the City. Chapter III - Page 12 Qualifications for the City of Overland Park, Kansas

101 CHAPTER IV RFQ ITEM 4.5 Key Personnel and Subcontractors Performing Services The key to Linebarger Goggan Blair & Sampson, LLP s (Linebarger Goggan) success has and always will be its human capital, from the attorneys who oversee and manage the collection programs, to the professional collection staff who interface with defendants on a daily basis, and the IT personnel who process the data and maintain the collection software programs. Linebarger Goggan proposes a management team for the Overland Park, Kansas (City) project comprised of individuals with an in-depth working knowledge of the collection process and the most advanced collection systems available. The City team will provide a centrally managed approach supported by line personnel trained in specific areas of the collection process. By capitalizing on the unique strengths of each member, the law firm ensures the highest possible level of service. Our proposed team for this project will provide strong management and oversight to all law firm personnel performing duties on behalf of the City under this contract. This team is comprised of individuals possessing: in-depth working knowledge of the most technologically advanced collection systems available experience and familiarity with the practices of the legal and collection communities within Kansas and throughout the United States full and complete understanding of the sensitivities and practicalities required of our law firm personnel when interacting with the City s debtors, where these debtors are also your neighbors and constituents 4.5.A. PROJECT ORGANIZATIONAL CHART The diagram on the following page illustrates the organizational structure proposed for managing the City project headed by Partner Scott McGlasson. Qualifications for the City of Overland Park, Kansas Chapter IV - Page 1

102 CITY OF OVERLAND PARK TEAM ORGANIZATIONAL CHART Firm Wide Organizational Chart In addition to having direct contact with the firm s assigned project team, the City will also have access to the resources and breadth of experience of a full-service, national collection law firm. The firm s state-of-the-art technology contributes to our ability to serve our clients efficiently and to keep them informed on all matters pertaining to their contracts. The organization chart on the following page delineates Linebarger Goggan s firm-wide management and organizational structure. Chapter IV - Page 2 Qualifications for the City of Overland Park, Kansas

103 LINEBARGER GOGGAN ORGANIZATION CHART Use of Subcontractors If awarded this contract, Linebarger Goggan will serve as the primary contractor for this project and all core functions and duties will be performed by Linebarger Goggan personnel. If it is determined a subcontractor is required at any point during the project s duration, we will seek approval from the Court before any duties are assigned outside of the firm. Qualifications for the City of Overland Park, Kansas Chapter IV - Page 3

104 4.5.B. KEY STAFF QUALIFICATIONS Biographies and Experience Scott McGlasson, Partner, grew up in a small rural community in northeast Kansas. He graduated from Emporia State University in 1986 receiving a B.S. dual degree(s) in Business Administration and Marketing with a Communications minor. Following graduation, he began his collections career working as an Account Representative and Internal Dealership Auditor with General Motors Acceptance Corporation where he was responsible for collection of delinquent credit accounts as well as for auditing regional GM dealerships. Mr. McGlasson attended Washburn University School of Law and received his J.D., with honors in He was admitted to practice law in the State of Kansas in 1991 and immediately was drawn to a collection practice and representation of creditors. His solo practice in Kansas consisted almost exclusively of the representation of creditors in collection and bankruptcy related matters. Mr. McGlasson s practice emphasized the leveraged utilization of technology to handle the highvolume practice in a manner allowing efficiency and effectiveness for the benefit of his clientele. In addition to providing service to his client base through direct representation, Mr. McGlasson also assisted in the development and implementation of the electronic filing system project in the Kansas Courts to allow increased efficiency of case-flow through the Court system. In 2001, Mr. McGlasson left his solo practice for Texas where he worked as in-house counsel with the Texas Bankers Association. His responsibilities included providing legal assistance to member banks relating to federal and state compliance issues and daily bank operational issues. He was also a registered lobbyist and provided legislative assistance in the area of banking legislation. In 2003, Mr. McGlasson joined Linebarger Goggan in the law firm s headquarter office in Austin, Texas, where his responsibilities included various projects involving the collection of Texas court fees and fines, state and federal-level receivables, and non-texas-based collections in several Midwestern states. Scott opened the firm s Kansas City regional office in 2006 and currently manages that office and its operations. He provides advice and counsel to the law firm on all Fair Debt Collection Practices Act issues and serves on the firm s Litigation and Legal Standards Subcommittee, which is responsible for oversight of law firm policies and procedures relating to collections. He represents the firm in the ACA International Member Attorney Program and is a member of the Commercial Law League of America. Mr. McGlasson is admitted to practice in Kansas, Arkansas, Kentucky, Missouri, Oklahoma, and Texas. Chapter IV - Page 4 Qualifications for the City of Overland Park, Kansas