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HomeMy WebLinkAboutItem 05 Approval of Payment Collection and Remittance Services with Amscot Corporation florida AGENDA ITEM COVER SHEET Meeting Date: June 16, 2020 Item # 5 Reviewed By Contact Name: Rebecca Roberts Department Director: Reb a4R9 Contact Number: 1520 City Manager: Robert Fr Subject: Payment Collection and Remittance Services - Amscot Corporation Background Summary: Amscot Corporation offers payment collection and remittance services at its approximately 20 retail locations within the City of Ocoee and others throughout the country, several of which are open 24 hours. Staff negotiated an agreement with Amscot to provide these services to the City's utility customers for a nominal minimum fee of $2.50, not to exceed $5.00 per transaction. This transaction fee is consistent with the convenience fee assessed by our on-line payment service (2.95%). Amscot will remit collections to the City daily via ACH. Payment files will be provided periodically throughout the day and will be uploaded to customer accounts at nearly real-time. The City currently has approximately 16,000 utility customers located throughout the City, many of whom would benefit for the multiple locations and extended hours offered by Amscot. There is no requirement to use the service. The City will continue to offer multiple other payment channels including mail, in-person, drop box, on-line, and telephone payments Issue: Request the City Commission approve the agreement between the City and Amscot Corporation for payment collection and remittance services. Recommendations: Recommend the City Commission approve the agreement between the City and Amscot Corporation for payment collection and remittance services and for the Mayor, City Manager and staff to execute said agreement. Attachments: Payment Collection and Remittance Agreement with Amscot Corporation. Financial Impact: There is no financial impact to the city. Type of Item (please mark with an "x') Public Hearing For Clerk's Dept Use: Ordinance First Reading X Consent Agenda Ordinance Second Reading Public Heanng Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney � ��1,�— N/A Reviewed by Finance Dept. r )QL0 O oak f� N/A Review ed by ( ) N/A 7 PAYMENT COLLECTION AND REMITTANCE AGREEMENT This Payment Collection and Remittance Agreement ("Agreement") is made this day of , 2020, by and between Amscot Corporation, 600 North Westshore Boulevard, Suite 1200, Tampa, FL 33609-1117 ("Amscot"), and the City of Ocoee ("Biller"). Amscot and Biller are sometimes referred to herein as the "Parties." WHEREAS. Biller is engaged in the sale of utility services (the "Services") and is desirous of retaining Amscot to collect cash payments for the Services (the "Payments") from customers (the "Customers") and remit them electronically to Biller; and WHEREAS. Amscot is registered with and authorized by the State of Florida under the provisions of Chapter 560, Florida Statutes, to act as a funds transmitter and is desirous of collecting the Payments from Customers and remitting them to Biller. NOW, THEREFORE, in consideration of the mutual benefits accruing to the Parties hereto and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereto agree as follows: 1. AMSCOT SERVICES AND PROCEDURES (a) Each day that Amscot is open for business, Amscot will collect Payments from Customers at its retail locations and will electronically send a file ("Remittance File") in Biller's specified format at an agreed upon interval to the Biller for posting to each Customer's account. A transmission interval of less than two hours is considered "near real-time" or "real-time." (b) The next banking day, on or before 6:00 p.m., Eastern Time. Amscot will ACH Transfer to the Biller an amount equal to the total of Payments collected. Amscot shall initiate an ACH Transfer to Biller's designated bank account Settlement of the ACH Transfer shall occur according to NACHA Operating Rules, which is generally on the second banking day following the transfer of Data (c) Upon collection of the Payments, Amscot shall provide the Customers with a receipt containing the following: (i) Biller's name and Customer's account number; (n) Transaction reference number; and (m) Administrative fee and total payment amount. (d) Within a reasonable time after receipt of the Remittance File, Biller shall post to each Customer's account the amount of the Payments collected by Amscot. 1 (e) Biller will designate a person with requisite authority to serve as the point of contact by which to resolve any unpostable Payments or respond to research inquiries from Amscot regarding the Payments. 2. COMPENSATION (a) Amscot shall charge Customers who choose to utilize Amscot's services an administrative fee ("Fee") of $2.50 for each of the Payments collected. Amscot shall collect such Fee from Customers at the time the Payments are collected. (b) Amscot may change the Fee from time to time, after notification to the Biller, but in no event may the Fee be 9) changed more than once annually, (ii) changed by more than $0.50 per increase, or (iii) increased to an amount exceeding $5.00. 3. COMPLIANCE WITH LAW AND REGULATIONS Amscot agrees to conduct all of its acts, practices, and business activities under this Agreement in compliance with all applicable laws and regulations. In the event that compliance with any provision of this Agreement would cause either of the Parties to violate any such laws or rules, the Parties agree to attempt to negotiate in good faith an amendment hereof eliminating or modifying the provision involved while retaining insofar as practicable the previous respective positions of the parties relative to each other. 4. RESPONSIBILITIES AND LIABILITIES Amscot shall be responsible for the collection and remittance of the Payments received from Customers to Biller, and agrees to indemnify Biller from and against any losses, claims, damages, expenses or liabilities caused by Amscot's gross negligence or willful misconduct in the performance of such responsibilities under this Agreement. To the extent not disallowed under Florida law, Biller shall be responsible for posting the Payments to the Customers' accounts, and agrees to indemnify Amscot, its parents, subsidiaries, officers, directors, agents and employees from and against any losses, claims, damages, expenses or liabilities caused by Biller's gross negligence or willful misconduct in the performance of such responsibility under this Agreement including also but not limited to losses, claims, damages, expenses or liabilities caused by Biller's failure to respond to Amscot's payment research inquiries related to any and all unpostable payments as set forth in Section 9 of this Agreement. Biller does not waive its right to a claim of sovereign immunity under Florida law. 2 .5. PROMOTION OF SERVICES (a) Biller shall promote to Customers the payment collection and remittance services provided by Amscot pursuant to this Agreement on the Milers web site or via direct marketing to Customers through bill stuffers or by any other means. Biller shall use the name ':Amscot" and Amscot's registered marks in its promotional efforts and materials. (b) Amscot shall use its best efforts to promote to the Customers the payment collection and remittance services provided by Amscot pursuant to this Agreement and may use the name the "City of Ocoee" in its promotional efforts and materials 6. TERM (a) This Agreement is effective on the date indicated above and shall remain in effect for a period of one (1) year unless terminated by the Parties in accordance with these provisions. Unless terminated, the Agreement shall be automatically renewed for additional one (1) year terms. (b) This Agreement may be terminated without cause at any time upon 30 days written notice by Amscot or 60 days written notice by Biller. Amscot and Biller shall immediately cease use of the other's name or marks in accordance with paragraph 5 at the time of termination of this Agreement. (c) This Agreement may be immediately terminated, and no further benefits or compensation will accrue, upon a determination in good faith by one of the Parties that the other has violated, is violating, or will violate this Agreement or any requirements of law or rule. (d) All indemnities set forth in this Agreement shall survive for one year following the termination. 7. COSTS AND EXPENSES; PLACE OF BUSINESS Amscot shall bear all of its own costs and expenses, including rent, utilities, travel, postage, and any other business expenses in connection with its performance of duties and obligations under this Agreement. S. BEST EFFORTS; NONEXCLUSIVITY Amscot agrees to use its best efforts to satisfy the terms and conditions of this Agreement; provided, however, that Amscot may perform services similar or identical to those provided to Biller pursuant to this Agreement for other persons including but not limited to persons who are competitors of Biller during the effectiveness of this Agreement. 3 9. CUSTOMER SERVICE — UNPOSTABLE PAYMENTS Biller will provide a single point of contact to resolve any and all unpostable payments or payment research inquiries received from Amscot. Time is of the essence for responding to Amscot's research inquiries related to any and all unpostable payments and Biller will respond to Amscot's payment research inquiries within 24 hours of Amscot contacting Biller with any such payment research inquiries. Biller will make every reasonable effort to correct an unpostable payment internally, before contacting Amscot. 10. AMENDMENT The Parties may not modify or amend this Agreement except by a writing signed by the Parties hereto. 11. NOTICES All notices permitted or required by this Agreement to be in writing shall be deemed to have been duly given if sent by personal delivery, first class U.S. mail, or facsimile transmission to the applicable addresses set forth on the signature pages to this Agreement. 12. INDEPENDENT CONTRACTOR Amscot is an independent contractor and this Agreement does not create a joint venture, partnership, affiliation, association or employment relationship with Biller. Amscot agrees not to hold itself out as a joint venturer, partner, affiliate, associate, or employee of Biller. Amscot agrees that it is solely responsible for any tax, both state or federal, that may be due on compensation received under this Agreement, and for payment of any other taxes, fees, or charges that may accrue to and be payable by it because of the services performed under this Agreement. 13. MISCELLANEOUS (a) This Agreement shall be governed by and construed in accordance with the domestic laws of the state of Florida without giving effect to any choice or conflict of law provision or rule (whether of the state of Florida or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the state of Florida. (b) Biller hereby consents to personal jurisdiction and venue, for any action brought by Amscot arising out of a breach or threatened breach of this Agreement, in the United States District Court for the Middle District of Florida, or in the Circuit and County Courts in and for Orange County, Florida: Biller agrees that any action arising 4 under this Agreement or out of the relationship established by this Agreement shall be brought only and exclusively in either of such courts. (c) This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement. (d) Except as otherwise expressly provided for herein, this Agreement and any exhibits attached hereto and incorporated by reference contain the entire agreement of the Parties relating to the subject matter hereof and supersedes any prior agreements or presentations relating to such subject matter that are not set forth herein. (e) PUBLIC RECORDS COMPLIANCE The City of Ocoee (City) is a public agency subject to Chapter 119, Florida Statutes. Amscot (also referred to as the Contractor) agrees to comply with Florida's Public Records Law. Specifically, Amscot shall: 1. Keep and maintain public records required by the City to perform the service. 2. Upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in chapter 119, Florida Statutes, or as otherwise provided by law. 3. Ensure that public records that are exempt or confidential and exempt from the public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if Amscot does not transfer the records to the City. 4. Upon completion of the contract, Amscot agrees to transfer at no cost to the City all public records in possession of Amscot or keep and maintain public records required by the City to perform the service. If the Amscot transfers all public record to the City upon completion of the contract, Amscot shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If Amscot keeps and maintains public records upon completion of the contract, Amscot shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City. 5. A Contractor who fails to provide the public records to City within a reasonable time may be subject to penalties under section 119.10, Florida Statutes. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT 407-905-3100, EXTENSION 1022, CCDL@ci.ocoee.fl.us, WITH AN OFFICE LOCATED AT 150 NORTH LAKESHORE DRIVE, OCOEE, FLORIDA 34761. 5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. as of the date first above written. AMSCOT CORPORATION BILLER By. By: Name: Name: Title: Title: Address for Notices: Address for Notices. 600 North Westshore Blvd., Suite 1200 Tampa, FL 33609-1117 6 CITY OF OCOEE SIGNATURE PAGE Payment Collection and Remittance Agreement (Amscot Corporation) APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Melanie Sibbitt. City Clerk Rusty Johnson, Mayor DATE: (SEAL) FOR USE AND RELIANCE ONLY BY APPROVED BY THE OCOEE CITY THE CITY OF OCOEE, FLORIDA; COMMISSION AT A MEETING HELD APPROVED AS TO FORM AND ,20 LEGALITY this day of UNDER AGENDA ITEM NO._ , 20 . SHUFFIELD, LOWMAN & WILSON, P.A. By: City Attorney