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HomeMy WebLinkAboutEvergreen Financial Collection Services Agreement AddendumKittitas County Review Form Grants & Contract Agreement Today's Date Agenda Date 01/22/2016 Fund/Department 116 -Public Health Contract/Grant Information Contract /Grant Agency: Evergreen Financial Services Addendum A to Collection Services Agreement Period Begin Date: Upon Signature Period End Date: Upon termination by either party (30 Days written notice) Total Grant/Contract Amount: $None Grant/Contract Number: Contract/Grant Summary: The Evergreen Financial Services Addendum A to Collection Services Agreement is to remove the "Term" section of the original agreement as there is no end date. Termination is voluntary by either party with 30 days written notice. Recommendation for Board of Health and Board of Health Review on Department Head Signature: Administrator Date: Kittitas County Prosecutor, Auditor, and Board of Health Review and Comment: APPROVED AS TO FORM: Signature of Prosecutor's Office Date Signature of Auditor's Office Date Signature of Board of Health member Date Financial Information Total Amount $ State Funds $ Federal Funds $ Percentage County Funds Matching Funds $ CFDA# In -Kind $ Grant/Contract Review Page 1 Is Equipment being purchased? Who owns equipment? New Personnel being hired? Contact HR hiring — reporting requirements Future impacts or liability to Kittitas County: Budget Information Budget Amendment Needed? Yes ❑ attach budget form New Division Created? Revenue Code Pass Through Information No ❑ Why not Agency to Pass Through Amount to Pass Through $ Sub -Contract Approved Date: Prosecutor Review Has the Prosecutor reviewed this agreement? Yes ❑ No Countv Departments Impacted Auditor Facilities Maintenance Information Services Human Resource Prosecutor Treasurer Submitted Signature: Department: Assignment of Tracking Information Auditor's Office Human Resource Prosecutor's Office Who Signed the grant application Reviewer Date Grant/Contract Review Page 2 Addendum A Cancellation of Service This Addendum shall remove section #2 of the Collection Agreement between Kittitas County Public Health Department and Evergreen Financial Services, Inc. The current sunset clause in section #2 will be removed and cancellation of service will refer to section #8 of current agreement. Kittitas County Public Health Department Evergreen Financial Services, Inc. By: By: Date: Date: COLLECTION SERVICES AGREEMENT THIS AGREEMENT is made and entered, by and between the Kittitas County Public Health Department, a department of Kittitas County, ("Client") and Evergreen Financial Services, Inc. ("EFS"), a duly licensed and bonded collection agency, and a Washington for profit corporation. 1. Client contracts and engages EFS to perform collection work and furnish the equipment, labor and materials necessary to perform collection activities on those unpaid accounts that are assigned to EFS by the Client. Term: The term of this Agreement shall commence on the __ day of January, 2014 and continue until the 31st day of December, 2014. 3. Collection services shall be provided as directed in the following: A. Client will prepare collection accounts and submit via EFS' secured website, or in the alternative, Client will prepare collection documents and submit them to EFS for computer input. In accordance with the Fair Credit Reporting Act, Client warrants that debts have been reviewed by Client, that balances reported are correct and that all disputes of debtors have been reported to agency prior to the transfer of the debt. It is the obligation of the Client to provide any information it has regarding bankruptcy, death, divorce or other defenses which may prohibit, delay or impact the collection of the debt. B. EFS will provide an acknowledgment showing name of debtor and balance of account as confirmation of receipt of accounts assigned by Client. C. EFS shall mail collection notices as well as make direct contacts by trained staff in accordance with State and Federal collection laws. D. EFS will not institute legal actions on debts without first receiving Client's written authorization to do so. Costs and attorney's fees incurred by EFS in litigation will be recovered from first monies collected by EFS prior to remitting to Client so that EFS's out of pocket expenses will be resolved first. In the event Client cancels an account with written authorization to pursue legal action, Client agrees to immediately repay all monies advanced as court costs and fees as paid by EFS. E. EFS shall pay amounts received on Client's accounts by the 2e of each month for collections made the preceding month. Remittance checks will be accompanied by a monthly activity statement showing debtor name, account number, amount paid and balance remaining, F. Upon request of Client, EFS shall make available an inventory report which identifies all accounts currently on assignment to EFS. Should additional reports be necessary, EFS will work with due diligence to provide additional reports to the Client upon receipt of such a request, EVERGREEN ^� 1214 North 16" Avenue EFS FINANCIAL SERVICES, Inc. Yakima, Washington 98909-9073 1-800-444-8674 www.efscollects.com Collection Services Agreement Page 1 4. 4. G. Each party to this agreement shall identify no less than two (2) contact persons within their respective offices who are familiar with and authorized to discuss and compromise Client's assigned accounts. H. Accounts listed to EFS with a principal balance greater than $50.00 and listed with EFS for a minimum of forty (40) days shall be reported to a minimum of one major credit- reporting agency by EFS. For the performance of the work described in and required by this agreement, EFS shall remit the percentage of monies to client upon collection based on the phase of activity and/or account type as follows: Pursuant to RCW 19.16.500, Client shall assess collection fees on principal balances turned to collection on the following schedule: A. EFS on behalf of Client shall assess a collection fee on receipt of the account to collection in accordance to the following schedule: Under $100.00 (100% fee accessed) Over $100.00 — $100,000 (50% fee accessed) Over $100,000 (35% fee accessed) B. Upon collection of the entire balance, the Client shall be entitled to 100% of the principal amount referred, or the balance prior to the assessment of the collection fee. C. EFS shall retain the collection fee and any allowable interest per law as compensation for performance of work described. D. When the Client receives payment(s) in their office on accounts that have been referred to EFS for collection, it shall be the responsibility of the Client to report those payments either via fax, phone, mail or through our secure website. E. If the Client or EFS receives a payment that is a partial payment of the total amount owing after being referred to collection, the payment shall be divided between original principal owing and the collection fee assessed. The account shall not be considered paid in full by either party until the entire balance, including collection fee, is paid. F. EFS agrees on behalf of the Client, prior to an assignment of the debt to EFS, to mail a final, 30 -day notice to debtor as outlined by RCW 19.16.500. The notice shall advise the debtor that the account may be turned over to a collection agency and if it is turned to collection, that a collection fee will be assessed if the account is not paid in full within thirty (30) days. 100% PRINCIPLE BALANCE BACK TO CLIENT PURSUANT TO RCW 19.16.500 100% FACE AMOUNT RETURN ON NSF/CLOSED ACCOUNTS CHECKS UPON COLLECTION. All accounts placed with EFS are covered by EFS' respective state license and bond. EFS maintains professional liability insurance coverage. Page 12 5. EFS shall indemnify, defend and save harmless Kittitas County and its officers, agents and employees against and from any loss, damage, costs, charge, expense, liability, claims, demands or Judgments of any kind or nature whatsoever, whether to person or property arising wholly or partially out of any act, action, neglect, omissions or default on the part of EFS, its agents, sub -contractors and/or employees, except only such injury or damage shall have been caused by or resulted from the sole negligence of Kittitas County, its officers, agents or employees. In the event that any lawsuit or cause of action should be brought against Kittitas County due to an act, action, neglect, omission or default on the part of EFS, its agents, sub- contractors and/or employees, EFS shall assume the defense thereof and pay any and all costs, charges, attorney fees and other expenses and any and all Judgments that may be incurred or obtained against Kittitas County with regard to an assigned account. Client will be responsible for claims by any third party based on the direct actions of client, its employees or agents, and agrees to indemnify EFS for the same. 6. EFS shall keep in force its license and bond, and shall otherwise be in compliance with all State and Federal laws governing collection agencies. 7. EFS will add interest to accounts placed for collection at the rate allowable by law. Interest will be retained by EFS. 8. Termination: This agreement may be terminated by either party on a 30 day notice in writing to the other, or otherwise as they may mutually agree, except those accounts assigned as follows: A. All accounts on which payments are in process, or on which a schedule of payments has been arranged; B. All accounts upon which legal action has been referred, a suit has been brought, or a Judgment has been obtained, such account shall remain with EFS until it is clearly established they have become inactive by reason of debtor's continued failure to pay, and; Any retained accounts shall be clearly identified, together with the arrangements made. 9. In October, 2008, this agency adopted a formal identity Theft Policy to clarify its previous informal policies and to comply with 16 C.F.R. Part 681 (`Red Flag Rules") to the extent that the provisions of such are applicable to the accounts assigned to this agency. 10. EFS agrees that it shall not use any unfair or unprofessional collection practices nor violate any regulations established by federal and/or state legislation or other applicable regulatory agency. 11. In the event that any litigation should arise concerning the construction or interpretation of any of the terms of this Agreement, the venue of such action of litigation shall be in the Superior Court of the State of Washington in and for the County of Kittitas. This Agreement shall be governed by the law of the State of Washington. 12. The services of EFS shall be furnished by EFS as an independent Contractor and nothing herein contained shall be construed to create a relationship of employer-employee or master - servant, but all payments made hereunder and all services performed shall be made and performed pursuant to this Agreement by EFS as an independent Contractor. Page 13 13. Right to Review: This Agreement is subject to review by any Federal or State auditor. The Client or its designee shall have the right to review and monitor the financial and service components of this program by whatever means are deemed expedient by Kittitas County. Such review may occur with or without notice, and may include, but is not limited to, on-site inspection by Kittitas County agents or employees, inspection of all records or other materials which Kittitas County deems pertinent to the Agreement and its performance, and any and all communications with or evaluation by service recipients under this Agreement. EFS shall preserve and maintain all financial records and records relating to the performance of work under this Agreement for 6 years after contract termination, and shall make them available for such review, within Kittitas County, State of Washington, upon request. 14. Nondiscrimination: Client is an equal opportunity employer. A. Nondiscrimination in Employment: In the performance of this Agreement, EFS will not discriminate against any employee or applicant for employment on the grounds of race, creed, color, national origin, sex, sexual orientation, marital status, age or the presence of any sensory, mental or physical handicap; provided that the prohibition against discrimination in employment because of handicap shall not apply if the particular disability prevents the proper performance of the particular worker involved. EFS shall ensure that applicants are employed, and that employees are treated during employment without discrimination because of their race, creed, color, national origin, sex, sexual orientation, marital status, age or the presence of any sensory, mental or physical handicap. Such action shall include, but not be limited to: employment, upgrading, demotion or transfers, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and programs for training including apprenticeships. EFS shall take such action with respect to this Agreement as may be required to ensure full compliance with local, state and federal laws prohibiting discrimination in employment. B. Nondiscrimination in Services: EFS will not discriminate against any recipient of any services or benefits provided for in this Agreement on the grounds of race, creed, color, national origin, sex, sexual orientation, marital status, age or the presence of any sensory, mental or physical handicap. 15. Debarment Certification: EFS certifies that it: A. Is not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by any Federal department or agency. B. Has not within a three-year period preceding the execution of this contract with Kittitas County, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice. C. is not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph B of this section. Page 14 D. Has not within a three-year period preceding the preceding the execution of this contract with Kittitas County had one or more public transactions (Federal, State, or local) terminated for cause of default. 16. Notice: For all purposes under this Agreement, except service of process, notice shall be given by the Contractor to the department head of the department for whom services are rendered, and to the Kittitas County Commissioners, 205 W 5`h Ave, Suite 108, EIlensburg, WA 98926. Notice to the Contractor for all purposes under this Agreement shall be given to 1214 North 16th Avenue, Yakima, Washington 98909-9073. Notice may be given by delivery or by depositing in the U.S. Mail, first class, postage prepaid. 17. Severability: If any term or condition of this Agreement or the application thereof to any person(s) or circumstances is held invalid, such invalidity shall not affect other terms, conditions or applications which can be given effect without the invalid term, condition or application. To this end, the terms and conditions of this Agreement are declared severable. 18. This Agreement, and Attachment "A" attached hereto and incorporated herein by this reference as fully as if set forth herein, is the entire agreement of the parties and shall not be modified except by a written agreement signed by each party, and affixed hereto as an amendment to this original agreement. IN WITNESS WHEREOF, the parties have executed this Agreement this fib! day of ����{rV��1�LIJ 2014. APPROVED: EVERGREEN FINAT SERVICES,, -INC. I.� naturcr of Sir�natar� Print Name of Signatory Page 15 BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Gary J13_e2ren�21t_ Vice-Chairman c 4 , 2e � Z — .- Obie O'Brien, Commissioner tsl top 11 ���•`'����� 5C O M AJIl��y'''4 ..Atr�'ts�Q .rl o :theBoard -- ATTACHMENT "A" Business Associate Agreement — HIPAA Compliance 1. DEFINITIONS (a) The following terms used in this Agreement shall have the same meaning as those terms in the HIPAA Rules: Breach, Data Aggregation, Designated Record Set, Disclosure, Health Care Operations, Individual, Minimum Necessary, Notice of Privacy Practices, Protected Health Information, Required By Law, Secretary, Security Incident, Subcontractor, Unsecured Protected Health Information, and Use. (b) Business Associate. "Business Associate" shall generally have the same meaning as the term "business associate" at 45 CFR 160.103, and in reference to the party to this agreement, shall mean EVERGREEN FINANCIAL SERVICES, INC. ("EFS"). (c) Covered Entity. "Covered Entity" shall generally have the same meaning as the term "covered entity" at 45 CFR 160.103, and in reference to the party to this agreement, shall mean Kittitas County Public Health Department, a department of Kittitas County. (d) HIPAA Rules. "HIPAA Rules" shall mean the Privacy, Security, Breach Notification, and Enforcement Rules at 45 CFR Part 160 and Part 164. 2. Obligations and Activities of Business Associate Business Associate agrees to: (a) Not use or disclose protected health information other than as permitted or required by the Agreement or as required by law; (b) Use appropriate safeguards, and comply with Subpart C of 45 CFR Part 164 with respect to electronic protected health information, to prevent use or disclosure of protected health information other than as provided for by the Agreement; (c) Report to covered entity any use or disclosure of protected health information not provided for by the Agreement of which It becomes aware, including breaches of unsecured protected health information as required at 45 CFR 164.410, and any security incident of which it becomes aware; (d) In accordance with 45 CFR 164.502(e)(1)(11) and 164.308(b)(2), if applicable, ensure that any subcontractors that create, receive, maintain, or transmit protected health information on behalf of the business associate agree to the same restrictions, conditions, and requirements that apply to the business associate with respect to such information; Page 16 (e) Make available protected health information in a designated record set to the "covered entity" as necessary to satisfy covered entity's obligations under 45 CFR 164.524; (f) Make any amendment(s) to protected health information in a designated record set as directed or agreed to by the covered entity pursuant to 45 CFR 164.526, or take other measures as necessary to satisfy covered entity's obligations under 45 CFR 164.526; (g) Maintain and make available the information required to provide an accounting of disclosures to the "covered entity" as necessary to satisfy covered entity's obligations under 45 CFR 164.528; (h) To the extent the business associate is to carry out one or more of covered entity's obligation(s) under Subpart E of 45 CFR Part 164, comply with the requirements of Subpart E that apply to the covered entity in the performance of such obligation(s); and (i) Make its internal practices, books, and records available to the Secretary for purposes of determining compliance with the HIPAA Rules. 3. Permitted Uses and Disclosures by Business Associate (a) Business associate may only use or disclose protected health information necessary to the performance of its contractual obligations to the covered entity as necessary to perform the services set forth in Collection Service Agreement. In Addition, EFS authorized to use protected health information to de -identify the information in accordance with 45 CFR 164.514(x) -(c). (b) Business associate may use or disclose protected health information as required by law. (c) Business associate agrees to make uses and disclosures and requests for protected health information consistent with covered entity's minimum necessary policies and procedures. (d) Business associate may not use or disclose protected health information in a manner that would violate Subpart E of 45 CFR Part 164 if done by covered except for the specific uses and disclosures set forth below. (e) Business associate may disclose protected health information for the proper management and administration of business associate or to carry out the legal responsibilities of the business associate, provided the disclosures are required by law, or business associate obtains reasonable assurances from the person to whom the information is disclosed that the information will remain confidential and used or further disclosed only as required by law or for the purposes for which it was disclosed to the person, and the person notifies business associate of any instances of which it is aware in which the confidentiality of the information has been breached. Page 17 4. Pravi ions for Covered Entity' ta_Intfm Business Associate of PrivacyPractices 6rld Restrictions (a) Covered entity shall notify business associate of any limitation(s) in the notice of privacy practices of covered entity under 45 CFR 164.520, to the extent that such limitation may affect business associate's use or disclosure of protected health information. (b) Covered entity shall notify business associate of any changes in, or revocation of, the permission by an individual to use or disclose his or her protected health information, to the extent that such changes may affect business associate's use or disclosure of protected health information. (c) Covered entity shall notify business associate of any restriction on the use or disclosure of protected health information that covered entity has agreed to or is required to abide by under 45 CFR 164.522, to the extent that such restriction may affect business associate's use or disclosure of protected health information. 5. Permissible Reauests by Covered Entity. Covered entity shall not request business associate to use or disclose protected health information in any manner that would not be permissible under Subpart E of 45 CFR Part 164 if done by covered entity. 6. Term and Termination (a) Term. The Term of this Agreement shall be effective as provided for in the Collection Service Agreement, above, and shall terminate as provided for therein or on the date covered entity terminates for cause as authorized in paragraph (b) of this Section, whichever is sooner. (b) Termination for Cause. Business associate authorizes termination of this Agreement by covered entity, if covered entity determines business associate has violated a material term of the Agreement and business associate has not cured the breach or ended the violation within a reasonable time specified by covered entity. (c) Obligations of Business Associate Upon Termination. Upon termination of this Agreement for any reason, business associate, with respect to protected health information received from covered entity, or created, maintained, or received by business associate on behalf of covered entity, shall: i) Retain only that protected health information which is necessary for business associate to continue its proper management and administration or to carry out its legal responsibilities; Page 18 ii) Return to covered entity or, if agreed to by covered entity, destroy the remaining protected health information that the business associate still maintains in any form; iii) Continue to use appropriate safeguards and comply with Subpart C of 45 CFR Part 164 with respect to electronic protected health information to prevent use or disclosure of the protected health information, other than as provided for in this Section, for as long as business associate retains the protected health information; iv) Not use or disclose the protected health information retained by business associate other than for the purposes for which such protected health information was retained and subject to the same conditions set out at [Insert section number related to paragraphs (e) and (f) above under "Permitted Uses and Disclosures By Business Associate" which applied prior to termination; and v) Return to covered entity or, if agreed to by covered entity, destroy the protected health information retained by business associate when it is no longer needed by business associate for its proper management and administration or to carry out its legal responsibilities. (d) Survival. The obligations of business associate under this Section shall survive the termination of this Agreement. 7. Miscellaneous (a) Regulatory References. A reference in this Agreement to a section in the HIPAA Rules means the section as in effect or as amended. (b) Amendment. The Parties agree to take such action as is necessary to amend this Agreement from time to time as is necessary for compliance with the requirements of the HIPAA Rules and any other applicable law. (c) Interpretation. Any ambiguity in this Agreement shall be interpreted to permit compliance with the HIPAA Rules. Page 19