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12. Allow City to audit an assigned account at any time. <br />13. Maintain a valid Collection License and bonding as required by the State of <br />California, Bureau of Collection and Investigative Services. <br />14. Provide suggestions on methods to improve collection rates on an ongoing basis. <br />B. City will: <br />1. Use reasonable care to assign bonafide accounts receivable claims to <br />Consultant. <br />2. Use its best efforts to verify any disputed amount. <br />Warrant the accounts assigned to Consultant are first placements (no other collection <br />agency has attempted to contact the debtor by letter service or otherwise in connection with said <br />debt) and understands the commission rates herein are based on this representation. <br />2. COMPENSATION <br />a. Consultant shall retain compensation on all monies collected on assigned accounts as <br />set forth in Exhibit A in accordance with the rates and charges identified in Exhibit B. <br />The total amount to be expended during the term of this Agreement shall not exceed <br />$50,000. Consultant agrees and understands that should the value of this Agreement <br />exceed the amount of this Agreement, including during any extension period defined <br />below, that the Agreement may require amendment subject to approval by the City <br />Council of the City of Santa Ana. <br />3. TERM <br />This Agreement shall commence on the date first written above for a one (1) year term <br />with the option for the City to grant up to a one (1) year renewal, exercisable by a writing by the <br />City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, <br />below. <br />4. INDEPENDENT CONTRACTOR <br />Consultant shall, during the entire term of this Agreement, be construed to be an <br />independent Consultant and not an employee of the City. This Agreement is not intended nor shall <br />it be construed to create an employer -employee relationship, a joint venture relationship, or to <br />allow the City to exercise discretion or control over the professional manner in which Consultant <br />performs the services which are the subject matter of this Agreement; however, the services to be <br />provided by Consultant shall be provided in a manner consistent with all applicable standards and <br />regulations governing such services. Consultant shall pay all salaries and wages, employer's social <br />security taxes, unemployment insurance and similar taxes relating to employees and shall be <br />responsible for all applicable withholding taxes. <br />Page 3 of 10 <br />#318460vl <br />