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EXHIBIT 1 <br />FIRST AMENDMENT TO AGREEMENT <br />THIS FIRST AMENDMENT TO AGREEMENT, made and entered into this 10^ day <br />of May, 2017 by and between PennCredit, a California corporation (hereinafter "Consultant "), <br />and the City of Santa Ana, a charter city and municipal corporation organized and existing under <br />the Constitution and laws of the State of California (hereinafter "City "). <br />RECITALS: <br />A. The parties entered into that certain Agreement ( #A- 2014 -146), dated June 17, <br />2014 (hereinafter "said Agreement') by which Consultant having special skill and <br />knowledge in the field of debt collection agreed to perform such services to the City for <br />debts owed to the City and placed for collection commencing July 1, 2014, by which <br />Consultant has provided debt collection services to the City. <br />B. The Term of said Agreement was three (3) years effective as of July 1, 2014 and <br />ending June 30, 2017. <br />C. The parties wish to amend the Term of said Agreement to provide for an <br />additional two (2) year period beginning July 1, 2017 and ending June 30, 2019. <br />D. The parties also wish to amend the Scope of Services with respect to the types of <br />debt for which the Consultant shall provide collections services to the City to include <br />only "permissible debts" as set forth in the Federal Fair Credit Reporting Act (FCRA) <br />guidelines effective September 1, 2016. <br />E. The parties also wish to amend the Compensation set forth in the Scope of <br />Services for the extended Term. <br />NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the <br />terms and conditions hereinafter set forth, the parties agree as follows: <br />The parties hereto now desire to amend Section 1, subsection (A) of said Agreement, <br />"SCOPE OF SERVICES" as follows: <br />a. Define the term "overdue miscellaneous accounts receivable billings" to include only <br />"permissible debts" as set forth in the Federal Fair Credit Reporting Act (FCRA) <br />guidelines in effect beginning September 1, 2016. <br />b. Add a part 15 to Section 1, subsection (A) of said Agreement requiring Consultant to <br />discontinue reporting of "prohibited debts" as set forth in the FCRA for any overdue <br />miscellaneous accounts receivable billings placed for collection with Consultant by <br />City between July I, 2014 and June 30, 2017, and reported by Consultant to a credit <br />reporting agency after August 31, 2016. <br />25D -5 <br />