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2003-04 Revenue Experts - Data Ticket - Administrative Citation ProcessingPROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement") is made and entered into by and between the CITY OF LA QUINTA, ("City"), a California municipal corporation, and REVENUE EXPERTS, INC. ("Consultant"). The parties hereto agree as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services related to administrative citation processing, appeal hearings and fine collection as specified in the "Scope of Services" attached hereto as Exhibit "A" (the "Scope of Services/Schedule of Performance") and incorporated herein by this reference (the "services" or "work"). Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services. 1.2 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, regulations and laws of the City of La Quinta and any Federal, State or local governmental agency of competent jurisdiction, including any laws relating to procedures for collection. 1.3 Licenses, Permits, Fees and Assessments. Except as otherwise specified herein, Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this Agreement. 1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that (a) it has thoroughly investigated and considered the work to be performed, (b) it has investigated the site of the work and fully acquainted itself with the conditions there existing, (c) it has carefully considered how the work should be performed, and (d) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement. Should Consultant discover any unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer (as defined in Section 4.2 hereof). 1.5 Care of Work. Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work performed by Consultant, and the equipment, materials, papers and other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. The performance of services by Consultant shall not relieve Consultant from any obligation to correct any incomplete, inaccurate or defective work at no further cost to City, when such inaccuracies are due to the negligence of Consultant. 975/015610-0015 370495.03 PM03 2.0 COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation")(the "Contract Sum"). 2.2 Method of Payment. The method of payment shall be in accordance with Exhibit «B„ 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. All services rendered pursuant to this Agreement shall be performed diligently and within the time period established in Exhibit "A". Extensions to the time period specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Ma'eure. The time period specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts. of God or of the public enemy, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental agency other than City, and unusually severe weather, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his or her judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in accordance with Sections 7.7 or 7.8 of this Agreement, the term of this Agreement shall be a period of one year from the date this Agreement is executed. At the City's option, the Agreement may be extended for one additional year. 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following principals of Consultant are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: a. Marjorie A. Fleming It is expressly understood that the experience, knowledge, capability, and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. 975i01-%10-WI5 370495.03 PM03 -2- The foregoing principals may not be changed by Consultant and no other personnel may be assigned to perform the service required hereunder without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be John Hardcastle, Community Safety Manager, or such other person as may be subsequently designated by the City Manager of City. It shall be Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Except for action taken by Consultant to fulfill its obligations with respect to providing hearing officers for City as specified in Exhibit "A", Consultant shall not contract with any other entity or independent contractor to perform in whole or in part the services required hereunder without the express written approval of City._ Subject to the foregoing, neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Contractor. Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. 4.5 City Cooperation. City shall provide Consultant with any plans, publications, reports, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to Consultant only from or through action by City. 5.0 INSURANCE AND INDEMNIFICATION 5.1 Insurance. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, personal and public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's acts or omissions rising out of or related to Consultant's performance under this Agreement. The insurance policy shall contain a severability of interest clause providing that the coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to any such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. For Personal Injury/Property Damage Coverage the minimum amount of insurance shall be $500,000 per individual; $1,000,000 per occurrence. 975/015610-0013 370495.03 PM03 -3 - Consultant shall carry automobile liability insurance of $1,000,000 per accident against all claims for injuries against persons or damages to property arising out of the use of any automobile by Consultant, its officers, any person directly or indirectly employed by Consultant, any subcontractor or agent, or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement. The term "automobile" includes, but is not limited to, a land motor vehicle, trailer or semi -trailer designed for travel on public roads. The automobile insurance policy shall contain a severability of interest clause providing that coverage shall be primary for losses arising out of Consultant's performance hereunder and neither City nor its insurers shall be required to contribute to such loss. A certificate evidencing the foregoing and naming City and its officers and employees as additional insured shall be delivered to and approved by City prior to commencement of the services hereunder. Consultant shall carry Workers' Compensation Insurance in accordance with State Worker's Compensation laws. Consultant shall procure professional errors and omissions liability insurance in an amount of $1,000,000 per occurrence. All insurance required by this Section shall be kept in effect during the term of this Agreement and shall not be cancelable without thirty (30) days written notice to City of proposed cancellation. The procuring of such insurance or the delivery of policies or certificates evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its officers, employees, contractors, subcontractors, or agents. 5.2 Indemnification. The Consultant shall defend, indemnify and hold harmless the City, its officers, officials, employees, representatives and agents ("City indemnitees") from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person(s), for damage to property (including property owned by the City) ("Claims") and for errors and omissions committed by Consultant, its officers, anyone directly or indirectly employed by Consultant, any subcontractor, and agents or anyone for whose acts any of them may be liable, arising directly or indirectly out of or related to Consultant's performance under this Agreement, except to the extent of such loss as may be caused by City's own active negligence, sole negligence or willful misconduct, or that of its officers or employees. In the event the City indemnitees are made a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims, errors or omissions, Consultant shall provide a defense to the City indemnitees, or at the City's option, reimburse the City indemnitees their costs of defense, including reasonable attorney's fees, incurred in defense of such Claims. In addition Consultant shall be obligated to promptly pay any final judgment or portion thereof rendered against the City indemnitees. 5.3 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: 975/015610-0015 370495.03 PM03 -4- a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement. b. Order Consultant to stop work under this Agreement and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. C. Terminate this Agreement. Exercise of any of the above remedies, however, is an alternative to any other remedies City may have. The above remedies are not the exclusive remedies for Consultant's failure to maintain or secure appropriate policies or endorsements. Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of work under this Agreement. 6.0 RECORDS AND REPORTS 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning Consultant's performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the cost and the performance of such services. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principals. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records. 6.3 Ownership of Documents. Originals of all reports, records, documents and other materials, whether in hard copy or electronic form, which are prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement, shall be the property of City and shall be delivered to City upon termination of this Agreement or upon the earlier request of the Contract Officer, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Consultant shall cause all subcontractors to assign to City any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages suffered thereby. In the event City or any person, firm or corporation authorized by City reuses said documents and materials without written verification or adaptation by Consultant for the specific purpose intended and causes to be made or makes any changes or alterations in said documents and materials, City hereby releases, discharges, and exonerates Consultant from liability resulting from said change. The provisions of this clause shall survive the completion of this Contract and shall thereafter remain in full force and effect. 6.4 Release of Documents. The drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer or as 975/015610-0013 370495.03 PM03 'S' required by law. Consultant shall not disclose to any other entity or person any information regarding the activities of City, except as required by law or as authorized by City. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within forty-five (45) days after service of the notice, or such longer period as may be permitted by the Contract Officer; provided that if the default is an immediate danger to the health, safety and general welfare, City may take such immediate action as City deems warranted. Compliance with the provisions of this section shall be a condition precedent to termination of this Agreement for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured, provided that nothing herein shall limit City's right to terminate this Agreement without cause pursuant to Section 7.8. 7.3 Retention of Funds. City may withhold from any monies payable to Consultant sufficient funds to compensate City for any losses, costs, liabilities, or damages it reasonably believes were suffered by City due to the default of Consultant in the performance of the services required by this Agreement. 7.4 Waiver. No delay or omission in the exercise of any right or remedy of a non defaulting party on any default shall impair such right or remedy or be construed as a waiver. City's consent or approval of any act by Consultant requiring City's consent or approval shall not be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 975/01M10-0015 370495.03 PM03 -6- 7.7 Termination Prior To Expiration Of Term. This section shall govern any termination of this Agreement, except as specifically provided in the following Section 7.8 for termination for cause. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to Consultant. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. 7.8 Termination For Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of setoff or partial payment of the amounts owed City as previously stated in Section 7.3. 7.9 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NONDISCRIMINATION 8.1 Non -liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event or any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.2 Conflict of Interest. No officer or employee of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or general consideration for obtaining this Agreement. 8.3 Covenant against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry. 9.0 MISCELLANEOUS PROVISIONS 975/015610-M15 370495.03 PM03 -7- 9.1 Notice. Any notice, demand, request, consent, approval, communication either party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section. To City: CITY OF LA QUINTA Attention: John Hardcastle 78495 Calle Tampico La Quinta, California 92253 To Consultant: REVENUE EXPERTS, INC. Attention: Marjorie A. Fleming 4600 Campus Drive, Suite 203 Newport Beach, California 92660 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and all previous understanding, negotiations and agreements are integrated into and superseded by this Agreement. 9.3 Amendment. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing signed by both parties. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 9.5 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to- the provisions of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. CITY OF LA QUINTA, a California municipal corpo' ation Date: Thomas P. Genovese, City Manager ATTEST: . Greek, City Clerk 975/015610-0015 370495.03 PM03 -8- APPROVED AS TO FORM,.- M. ath `Jenson, City Atto y CONSULTANT: Revenue Experts, Inc. By. Name: Title:y oi> � L"< Date: � o 975i01s6i0-00i5 3704".03 PM03 -9- Exhibit A Scope of Services I Schedule of Performance Consultant shall timely perform the services described and set forth herein, as more specifically described as follows. A. Administrative Citations — Collection Services. City's Obligations Whenever City or its agents issues an administrative citation as authorized under the La Quinta Municipal Code (`I QMC") Chapter 1.09 et seq., the City shall provide a copy of said citation to Consultant. Said copies shall be mailed to the Consultant at the end of each week to allow Consultant to ascertain the volume of citation activity, as well as the diversity of cited violations. City shall place a notification on each citation that all citation fines should be paid and delivered directly to Consultant. At its discretion, City may reject any payment made directly to City by a citation recipient or may accept such payment and forward such sums to Consultant. At least ten (10) days prior to the date of the hearing on Appeal, the City shall send to the Consultant via mail a supplemental report from City code enforcement staff. Such report shall provide a brief summary of the matter at hand, all document in possession of the City relating to the citation, and may include photographs of the cited violation. The City shall also mail to the citation recipient a copy of such report by mail, absent any privileged information, no less than ten (10) days before the date the hearing commences. On a monthly basis, City shall submit to Consultant copies of the Interagency Intercept Collections ("HC") program paperwork and weekly statement, if any. Consultant Obligations Consultant agrees to provide at its own expense the following in connection with services rendered under this Agreement: All letters and other correspondence required to fulfill its duties under this Agreement, including, but not limited to, the following: (1) Thirty (3 0) calendar days after receiving a citation for processing, the Consultant shall mail a first notice to the citation recipient for payment or Appeal ("First Notice"); (2) Thirty (30) calendar days from the date of the First Notice, if the citation is unpaid or uncontested, the Consultant shall mail a second notice to the citation recipient stating the total amount due ("Second Notice"); (3) Thirty (30) calendar days from the Second Notice, if the citation is unpaid, the Consultant shall mail a final notice to the citation recipient demanding payment, notifying that future actions will be taken to collect the fine, and informing the citation recipient that 975/015610-0015 370495.03 PM03 additional processing costs will be added to the fine if left unpaid ("Final Notice'); (4) Responses on behalf of the City to all requests for hearings filed pursuant to LQMC section 1.09.080; (5) All legally required notices, including, but not limited to, those designating the time and place of the hearing; (6) All referrals to the Interagency Intercept Program, as discussed below; and (7) All other correspondence reasonably necessary to ensure that Consultant fulfills its obligations under this Agreement. Consultant agrees to prepare standardized First Notice, Second Notice, and Final Notice forms and provide the same for City approval prior to use. Consultant agrees to provide at its own expense any and all postage required to fulfill its duties under this Agreement. A toll free customer service telephone line ("Service Line") whereby citation recipients may speak to a customer service representative to obtain information regarding the La Quinta citation appeals process. Consultant further agrees to provide at least one customer service representative knowledgeable about the La Quinta citation appeals process during the hours of 9:00 a.m. to 5:00 p.m. of each business day to answer the Service Line. Consultant agrees to provide to City not later than the tenth (1 Oth) of each month a monthly management report (`Management Report") that includes the information set forth in Section 2.2 of the Agreement and the following: (1) a list of all outstanding citations issued by the City and their payment status; (2) documentation of any and all written or oral communication by and/or between Consultant and a citation recipient regarding the status of a citation or Appeal; (3) itemized documentation of any amounts received by Consultant on behalf of each outstanding citation during the previous month; and (4) the status of all Appeals filed pursuant to LQMC section 1.09.080, including, but not limited to, the date and time of all pending Appeals. Access to a website database ("Website") which includes information regarding the current status of each individual citation issued by the City, as well as information about the La Quinta citation appeals process. The information on said Website shall be updated by Consultant on a weekly basis, and shall be accessible to the City as well as all citation recipients at all times. In determining the fee amount for any given administrative citation, Consultant agrees to adhere to the City's most current Bail Schedule, which City shall provide Consultant upon request. Consultant agrees to use its best efforts to obtain the payments owed from citation recipients, and shall strictly adhere to all legal requirements in doing so. B. Appeal. For each Appeal, Consultant agrees to provide an unbiased and neutral hearing officer ("Hearing Officer") who shall preside at said hearing, and shall hear evidence and testimony regarding the Appeal. 975/015610-0015 370495.03 PM03 -2- 19 For each Appeal filed, Consultant shall notify the City of the Appeal by facsimile within two (2) business days after the filing of the same. Such notice shall be provided to the City no later than twenty 20 days before hearing date. Consultant shall take all necessary assigned to an Appeal is familiar with administrative hearing, including, but not requirements. steps to ensure that each Hearing Officer the legal requirements for conducting an limited to, Federal and State due process Upon receipt of notice of an Appeal, Consultant agrees to select a date and time for the hearing in a manner that maximizes the number of hearings per day. Notwithstanding the foregoing, all Appeals shall be heard not less than twenty (20) calendar days, but no more than ninety (90) calendar days from the date that the request for hearing is filed in accordance with LQMC section 1.09.080. Unless otherwise specified by City, all Appeals shall be heard at 78495 Calle Tampico, La Quinta, CA 92253. Consultant agrees that the employment, performance, evaluation, compensation, and benefits of the Hearing Officer, if any, shall not be in any way related to the results of prior decisions issued by said Hearing Officer. Consultant further agrees that Hearing Officer shall be considered an independent contractor of the Consultant for purposes of this Agreement. Consultant acknowledges that any Hearing Officer provided to City may be subject to disqualification as provided by California Code of Civil Procedure section 170.1 and LQMC section 1.09.070(C). Prior to assigning a Hearing Officer to hear an Appeal, Consultant shall determine whether the Hearing Officer is disqualified. In the event of such disqualification, the Consultant agrees to provide a substitute Hearing Officer at no additional charge to the City. Hearing Officer shall conduct the hearing on the appointed date and time as prescribed by the Consultant. The Hearing Officer shall hear all facts and testimony presented and deemed relevant to the Appeal, consistent with the requirements of LQMC section 1.09.080(C). Within ten (10) working days of the conclusion of the hearing, the Hearing Officer shall provide his or her written decision ("Administrative Order") by certified mail to the petitioner at his or her last known address. The Administrative Order shall comply with the requirements set forth in LQMC section 1.09.090. Within ten (10) working days of the issuance of the Administrative Order, Consultant shall provide the City a copy of the Administrative Order either by overnight mail, certified mail, or facsimile. Should the Hearing Officer find against the citation recipient, and should such recipient file a petition for review in a court of law, Consultant shall ensure the availability of the Hearing Officer to assist the City in preparing for any proceeding in connection with said petition or to testify regarding the citation and his/her decision. Interagency Intercept Program. 975/015610-0015 370495.03 PM03 -3- If Consultant receives no payment or request for hearing from a citation recipient within thirty (30) days after sending the Final Notice, the Consultant shall take all necessary steps to place the citation on the Interagency Intercept Collections ("IIC"). Consultant must place the citation on the IIC according to Consultant's normal processing periods. When placing the citation on the IIC. Consultant must include the fine amount plus any additional costs associated with processing the citation with the IIC. The Parties understand that Interagency, Intercept Program will charge a flat rate of $10.00 per social security number ('W Fee") for all debts placed in the Interagency Intercept Program system, regardless of the number of debts attached to each respective social security number. The Parties agree that Consultant shall advance all necessary IIP Fees, and seek reimbursement for such expense pursuant to subparagraph "3" of Exhibit `S" attached hereto ("Schedule of Compensation"). City agrees to report to Consultant all funds collected by the City through the Interagency Intercept Program on a weekly basis. C. Deposit of Funds Within five (5) business days of receipt, Consultant shall deposit all funds collected under this Agreement in a bank account designated by the City ("Account"). Consultant shall have no authorization to withdraw any funds from said Account. All funds within the Account, including the interest accrued on the Account, shall be the sole property of the City. Consultant shall include in the Management Report an itemized list of each deposit made in the Account as discussed hereinabove. The Account shall be solely under the control of the City, and the City shall have the right to withdraw funds from the Account at its discretion. 975/015610-0015 370493.03 PM03 4- Exhibit B Schedule of Compensation A. Fee Structure. The Parties hereby agree to the following fees for services rendered in connection with Consultant's provision of services: 1. City agrees to pay Consultant a flat rate of $22.00 per citation ("Flat Fee") for performance of all Consultant's obligations under this Agreement, with the exception of conducting the administrative hearings. 2. City agrees to pay Consultant an hourly rate of $50.00 for the services of a Hearing Officer during the administrative hearings. For any day in which the Hearing Officer is conducting one or more hearings pursuant to this Agreement, the Hearing Officer shall be paid for a minimum of four (4) hours. The Hearing Officer shall not be compensated for any time other than the administrative hearing itself. Thus, by way of example, and without limitation, Hearing Officer shall not be compensated for time spent for travel, research, review of the file, or preparation of the Administrative Order. The Hearing Officer shall not be paid for expenses associated with attending the hearing, such as travel expenses to and from the hearing. 3. City agrees to reimburse Consultant for all Interagency Intercept Program fees advanced by the Consultant pursuant to Section C of Exhibit A, the Scope of Services. B. - Payment of Fees. City shall review the Management Report prepared in accordance with Exhibit "A" and, within 30 days of its approval of the same, shall remit payment to Consultant for the items set forth in Section A hereinabove. 975/013610-0015 370495.03 PM03