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HomeMy WebLinkAboutNovember 20, 2006 Work Session 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TOO (763) 706-3692 Visit Our Wehsite at: www.ci.columhia-heights.mn.us Mavor Gm}' L. Peterson Councilmembers Rober! A. Willimus Bruce Nawrocki Tammera Ericson Die/un Bruce Kelzenberg City Manaqer Wal! Fehs! CITY OF COLUMBIA HEIGHTS ADMINISTRA TION NOTICE OF CITY COUNCIL MEETING ************ to be held in the CITY OF COLUMBIA HETGHTS as follows: Meeting of: Date of Meeting: Time of Meeting: Location of Meeting: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL MONDAY, NOVEMBER 20, 2006 7:00 P.M. CONFERENCE ROOM 1 WORK SESSION AGENDA 1. Worthless Check Program with Financial Crimes Services 2. Drug Task Force update - informational 3. Allied -2 year contract extension/single sort recycling/appliance pickup 4. Review Sump Pump Disconnect program 5. Liquor Store - 37th location update - informational The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individualswith disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handcapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER CITY COUNCIL LETTER tffoG Consent Agenda 2006 City Council Meeting of November 27, Approve participation in the Worthless Check Program with Financial Crimes Services BACKGROUND: The Columbia Heights Police Department has been approached by Scott Adkisson of Financial Crimes Services to handle our Worthless Checks incidents in the City. This program provides an alternative to criminal prosecution of individuals who issue worthless check (s) to merchants and businesses. The program will make the attempts on behalf of the merchant or business to collect the restitution owed by a person who has issued a worthless check. If restitution is not obtained the background information needed for prosecution will be done by Financial Crimes Services and then turned over to the Columbia Heights Police Department in order to criminally prosecute the offender. ANALYSIS/CONCLUSION: The Columbia Heights Police Department receives hundreds of worthless check cases each year. These cases are time consuming and resource draining. We had the City Attorney who prosecutes these cases look at the Worthless Check Program offered by Financial Crimes Services and he feels this would be an excellent alternative allowed by State Law to handle these cases. This program. would also be beneficial to our local businesses in that there is no cost to them and the chances of recovery of their money is greatly enhanced. . RECOMMENDED MOTION: Move to authorize the Mayor and the Chief of Police to enter into a contract with Financial Crimes Services for the Worthless Check Program. financial Crimes Services [lllzen ' . - _ fm,nnal ImlllullOn5 la:' ,- $ !n'~I{;mlnt Mefflionl5 Working together to fight financial crimes Scott James Adkisson Office: 800-880-5420 fax: 651-388-2615 Cell: 612-670-8873 scott@finandalcrimes.net 406 Main Street Suite 200 Red Wing, MN 55066-2398 www.financialcrimes.net . ~ ~ 1t Cities and Counties agreements MN Cities Counties Albert Lea Carver Apple Valley Chippewa Becker Chisago Bird Island Dodge Blooming Prairie Freeborn Breitung Township Hubbard Brooklyn Park Isanti Brownton Kanabec Buffalo Lake Lake Cambridge Mahnomen Chanhassen Mcleod Chisholm Meeker Cloquet Mille Lacs Cottage Grove Morrison Crystal Olmsted Dilworth Pennington Duluth Pine Edina Polk Elk River Renville Eveleth Rice Fairfax Sibley Faribault St. Louis Farmington Steele Fergus Falls Cook Floodwood Wabasha Forest Lake Yellow Medicine Franklin Washington Glencoe Grant Hastings Hermantown Hibbing Hoffman Hopkins Isanti Kasson Lakeviile Le Center Lester Prairie Litchfield Maple Grove Maplewood Medina Mendota Hgts Minneapolis Moorhead Morton Mound North St. Paul Northfield Oakdale Olivia Owatonna Park Rapids Pelican Rapids Plymouth Princeton Proctor Red Wing Red Wood Falls Renville Richmond Rochester Sacred Heart Silver Lake St. Cloud Stillwater Two Harbors Virginia West St. Paul Winsted Wyoming Goodhue Presentation by Financial Crimes Services (FCS) Formerly Financial Crimes Technology Services FOR Law Enforcement FINANCIAL CRIMES SERVICES Minnesota based company working closely with Law Enforcement, Merchants, Financial Institutions, and Residents on restitution and prevention of financial theft and fraud .~11111 ,u".,'.:,......-..,. ......."Illprf#lootIDJlpIrf~_ Pre-trial Criminal Diversion Program Supporting: .NSF . Acconnt Closed . Electronic Checks . Dehit Card Chargebacks . Refer to Maker . ACH Chargebacks . PayroD Checks . Stop Payment fillan!iaJCrimesSerliIES .....'....'.."......11.. ~~.. . ~.-Il>IlpIIIIlMndIJI..... OVERVIEW Who is Financial Crimes Services (FCS)? Service: Worthless Check Diversion Program Since 2001, Financial Crimes Services (FCS) has partnered with: 'RetaDers Protection Association (RPA) 'Minnesota Financial Crimes Task Force 'Minnesota Connty Attorneys 'Minnesota Law Enforcement -Conrt Systems providing services that effectively deal with criminal offenders through a statewide Criminal Pre-Trial Diversion Program supporting law enforcement iu case management and development. MN CHECK DIVERSION & CHECK STATUTES WE WORK UNDER Financial Service Regulatory Relief Act of 2006 628.69 Pretrial diversion Program for Writers of Dishonored Checks Covers MN State Statutes: '/609.535 ~ '/604.113 ) 1 IinanOal CrDnes 5eMces CHECK DIVERSION COMPONENTS DATA ENTRY -Data entry -Aggregation -PrintingIMail Room -CaD Center -Investigations and Criminal Prosecutions -Online Reporting -Financial Management Classes -Checks can be accepted manually or electronically. -All checks coming into the system are reviewed by Law Enforcement prior to activating them in the Diversion Program. IinanriaI Climes SelYirfS - Mri~"""IDIlpftfIlnDndlll",-, AGGREGATION PRINTINGIMAIL ROOM .Aggregation process is periormed after every data entry. Ensures notification to bad check writer that we are watehing them. .Prior to daily letters being printed, all addresses are run against the USPS database for verification and change(s). .Mailing processed from Red Wing, MN. . Allows us to move forward faster for contact and investigations. .Allletters have law enforcement heading. CALL CENTER INVESTIGATIONS Call center located in Red Wing, MN Investigations Department ron by experienced law enforeement officer with 23 years of financial crimes investigations -Review high doDar and check count eas.. -Order bank statements -Skip tracing through Lexis-Nexis or LE -Develop complete case for prosecntion -Push for court ordered restitotion Call center staffed from 8am to 6pm CST 2 finamil/!Jimeslerlites REPORTING FINANCIAL MANAGEMENT CLASSES Reporting is done dally "Electronic "Cnstomized reports "Website carries up-to-date status reports As part of !be dtverslon process, tbere is a reqnIremeot for bad check writers to attend a four (4) hour Flnanelal Managemenl Class: 1. Self Dnanelal evaluation test 2. Showing how money was mismanaged 3. Bow 10 balance a checkbook 4. RevIew of credit card debt and payments 5. Asse_g a home budget Classes are taogbl by traJned Instructors using a customized 30 page Workbook. HISTORY OF FCS IN MINNESOTA Recidivism from class participants is less than 1 % "Over 90% of all checks received are Account Closed " Restitution 2002 2003 2004 2005 2006 2006 5 70,000 5266,000 5909,000 5965,000 5292,500 Jan/Feb (5400,000 in _"" pJllIIS) Forecast 51.6 million back to victims BENEFITS FOR COUNTY ATTORNEYS AND LAW ENFORCEMENT Over 3000 merchants use this program . No cost for program . Eliminates dealing witb NSF/Acconnt ClosedlRefer to Makerl Stop Payment cbecks and otber forms of payments by cbecking aecount . Cbecks are sent directly to FCS (_ are OlIIlaelor Law EaI.......... Rmew) . Allows investigaton to work on ~ore serious crimes" . Brings a dedicated service to tbe communities and county " All potential cases assembled bv FeS (........... _ bank......as. checks, syaopsis) . Single sourte for aggregating cases . 24/7 dab! base witb reports In MN, FCS now contracts directly with 95 jurisdictions (Counties and Cities) covering over 500 Communities \-. ~ 3 BENEFITS FOR JUDICIAL SYSTEM . Keeps low level cases out of court · Brings in only hardcore repeat or multiple check offenders · Keeps majority of offenders out of civil courts BENEFITS FOR MERCHANTS AND CITIZENS . Demand notice sent out by FCS . Moneys from restitution paid back weekly . Database searches for repeat offenders . Online reporting . Oasses available . FCS will add to the bottom line ~ REVIEW Merchant calls DAlLaw Enforcement and DAlLaw Enforcement gives FCS number or Merchant hooklet Merchant contacts FCS - FCS explains program Merchant fills out "Preliminary Worthless Check Report", makes copies and attaches check(s) to report One-time only merchant signs "Letter of Understanding" Merchant mails check FCS receives check and enters bad check writer into system. Next, the process begins: aggregation, restitution, and review for possible prosecution / BENEFITS FOR MERCHANTS AND CITIZENS . Service associated with the County Attorney's Office and/or law enforcement . No costs/ association dues/contracts . Receive 100% face value . Receive bank fee . Restitution rates up to 25% on Account Closed Cbecks (55% II dedudlog allidavl1s, baDkruptdes,..,d pendiDg.....) . New program nser - send checks in up to 24 months okl . Cbecks worked for np to 2 years HOW DOES FCS MAKE ITS MONEY? . $30.00 check return fee . $85.00 Financial Management Class fee AWARENESS AND PARTNERSHIP . Train law enforcement . Meet with Chamber and other business groups . News releases . Conduct merchant workshops . Direct contacts with merchants 4 CONTACT Scott Adkisson Financial Crimes Services 406 Main Street Suite 200 Red Wing, MN 55066-2398 1-800-880-5420 Office 612-670-8873 CeU scottra'financialcrim es.net www.imancialcrimes.net Thank You 5 F: \R9\2D\SUS\S2856.SUS H.L.C. 105 1 "(3) TnII~G.-A model form required to be de- 2 veloped by this subsection shall be issued in pro- 3 posed form for public comment not later than 180 4 days after the date of enactment of this subsection. 5 "( 4) SAFE HARBOR.-Any financial institution 6 that elects to provide the model form developed by 7 the agencies under this subsection shall be deemed 8 to be in compliance \vith the disclosures required 9 under this section.". 10 TITLE VIII-FAIR DEBT COLLEC- 11 TION PRACTICES ACT AMEND- 12 :MENTS 13 SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCE- 14 MENT PROGRAMS. 15 (a) I:--r GE~ERA.L.-The Fair Debt Collection Prac- 16 tices Act (15 U.S.C. 1692 et seq.) is amended- 17 (1) by redesignating section 818 as section 819; 18 and 19 (2) by inserting after section 817 the following: 20 "~818. Exception for certain bad check enforcement - - - 21 22 programs operated by private entities - - 23 "(a) I:--r GE~ER.;\L.- "(1) TREAT:VIE~T OF CERT_U~ PRIVATE ENTI- - 24 25 TIES.-Subject to paragraph (2), a pri-,,~ate entity - shall be excluded from the definition of a debt col- F:\V9\092606\092606.175 September 26. 2006 H.L.C. F: \R9 \2D \SUS \S2856.SUS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 - F:\V9\092S0S\092S0S.175 September 2S, 2006 106 lector, pursuant to the exception provided in section 803(6), with respect to the operation by the entity of a program described in paragTaph (2)(A) under a contract described in paragraph (2)(B). H(2) CO:-.J'DITro~S OF APPLICABILITY.-Para- graph (1) shall apply if- H(A) a State or district attorney estab- lishes, within the jurisdiction of such State or district attorney and 'with respect to alleged bad check violations that do not involve a check de- scribed in subsection (b), a pretrial diversion program for alleged bad check offenders who agree to participate voluntarily in such program to avoid criminal prosecution; H(B) a private entity, that is subject to an administrative SUDDort services contract with a ~ ~ State or district attorney and operates under the direction, supervision, and control of such State or district attorney, operates the pretrial diversion program described in subparagraph (A); and "(C) III the course of performing duties delegated to it by a State or district attorney under the contract, the private entity referred to in subparagraph (B F: \R9 \2D \SUS\S2856.8US 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1h l.U - - 17 18 19 20 21 22 23 24 F:\V9\092606\092606.' 75 September 26. 2006 H.L.C. 107 "(i) complies \vith the penal laws of the State; "(ii) conforms 'Vvith the terms of the contract and directives of the State or dis- trict attorney; "(iii) does not exerCIse independent prosecutorial discretion; "(iv) contacts any alleged offender re- ferred to in subparagraph (A) for purposes of participating in a program referred to in such paragraph- "(I) only as a result of any deter- mination by the State or district at- torney that probable cause of a bad check violation under State penal law exists, and that contact with the al- leged offender for purposes of partici- pation in the program is appropriate; and "(II) the alleged offender has failed to pay the bad check after de- mand for payment, pursuant to State law, is made for payment of the check amount; F: \R9\2D\SUS\S2856.SUS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1C 10 - - 17 18 19 20 21 22 23 24 ?~ -) F:\V9\092606\092606.175 September 26. 2006 H.L.C. 108 "(v) includes as part of an initial writ- ten communication with an alleged of- fender a clear and conspicuous statement that- "(I) the alleged offender may dis- pute the validity of any alleged bad check violation; "(II) where the alleged offender knows, or has reasonable cause to be- lieve, that the alleged bad check viola- tion is the result of theft or forgery of the check, identity theft, or other fraud that is not the result of the con- duct of the alleged offender, the al- leged offender may file a crime report \vith the appropriate law enforcement agency; and "(ill) if the alleged offender noti- fies the private entity or the district attorney in writing, not later than 30 days after being contacted for the first time pursuant to clause (iv), that there is a dispute pursuant to this subsection, before ftlrther restitution efforts are pursued, the district attor- H.L.C. F: \R9\2D \SUS \S2856.SUS 109 1 ney or an employee of the district at- 2 torney authorized to make such a de- 3 termination makes a determination 4 that there is probable cause to believe 5 that a crime has been committed; and 6 "(vi) charges only fees in connection 7 with services under the contract that have 8 been authorized by the contract with the 9 State or district attorney. 10 "(b) CERTAIN CHECKS EXCLUDED.-A check is de- 11 scribed in this subsection if the check involves, or is subse- 12 quently found to involve-- "(1) a postdated check presented in connection 13 14 15 16 17 18 19 20 21 - 22 ;0;;;;;;;;;; ........ ==== 23 ==== 24 - ?~ -) - F:\V9\092606\092606.175 September 26.2006 with a payday loan, or other similar transaction, where the payee of the check knew that the issuer had insufficient funds at the time the check \vas made, drawn, or delivered; "(2) a stop payment order where the issuer acted in good faith and "vvith reasonable cause in stopping payment on the check; "(3) a check dishonored because of an adjust- ment to the issuer's account by the financial institu- tion holding such account without providing notice to the person at the time the check was made, drawn, or delivered; H.L.C. F: \R9\2D\SUS\S2856.SUS 110 1 "( 4) a check for partial payment of a debt 2 where the payee had previously accepted pa.rtial pay- 3 ment for such debt; 4 "( 5) a check issued by a person who was not 5 competent, or was not of legal age, to enter into a 6 legal contractual obligation at the time the check 7 was made, dravvll, or delivered; or 8 "(6) a check issued to pay an obligation arising 9 from a transaction that was illegal in the jurisdiction 10 of the State or district attorney at the time the 11 check was made, drawn, or delivered. 12 "(c) DEFI)TITIONs.-For purposes of this section, the 13 following definitions shall apply: "(1) STATE OR DISTRICT ATTOR~EY.-The 14 15 16 17 18 19 20 21 - 22 - - 23 - - - 24 - 25 - F:\V9\092606\092606.175 September 26, 2006 term 'State or district attorney' means the chief , , , '.J . . d' elec'tea or appomteu prosecutmg attorney In a IS- trict, county (as defined in section 2 of title 1, United States Code), municipality, or comparable ju- risdiction, including State attorneys general who act as chief elected or appointed prosecuting attorneys in a district, county (as so defined), municipality or comparable jurisdiction, who may be referred to by a variety of titles such as district attorneys, pros- ecuting attorneys, commonwealth's attorneys, solici- tors, county attorneys, and state's attorneys, and F: \R9 \2D \SUS\S2856.SUS H.L.C. III 1 who are responsible for the prosecution of State 2 crimes and violations of jurisdiction-specific local or- 3 dinances. 4 "(2) CHECK.-The term 'check' has the same 5 meaning as in section 3(6) of the Check Clearing for 6 the 21st Century Act. 7 "(3) B_ill CHECK VIOLATIO~.-The term 'bad 8 check violation' means a violation of the applicable 9 State criminal law relating to the writing of dishon- 10 ored checks.". 11 (b) CLERICAL A-YIE~DNIENT.-The table of sections 12 for the Fair Debt Collection Practices Act (15 D.S.C. 13 1692 et seq.) is amencled- 14 (1) by redesignating the item relating to section 15 818 as section 819; and 16 ,"'" . ....J..' ft h'+ l' t:::} oy lllsenmg al. er tHe hem re~atmg to sec- 17 tion 817 the following new item: "818. Exception for certain bad check enforcement programs operated by pri- vate entities.". 18 SEC. 802. OTHER AMENDMENTS. = - - - - 19 (a) LEGAL PLEADINGs.-Section 809 of the Fair Debt 20 Collection Practices Act (15 U.S.C. 1692g) is amended by 21 adding at the end the following new subsection: 22 "(d) LEGAL PLEADLVGS.-A communication ~n the 23 form of a formal plead'ing ,in a civil action shall not be F:\V9\092606\092606.175 September 26, 2006 H.L.C. F: \R9 \2D \SUS \S2856.SUS 16 17 18 19 20 21 22 - - 23 24 - - 25 F:\V9\092606\092606.175 September 26.2006 112 1 treated as an initial communication for purposes of s'l.lb- 2 section (a). n. 3 (b) NOTICE PROVISIO;vS.-Section 809 of the Fair 4 Debt Collection Practices A.ct (15 U.S.C. 1692g) 'is amended 5 by adding after subsection (d) (as added by s'ubseciion (a) 6 of this section) the following new s1lbsection: 7 "(e) NOTICE PROVISIONS.-The sending or deli'very of 8 any form or notice which does not relate to the collection 9 of a debt and is expressly required by the Internal Revenue 10 Code of 1986, title V of Gramm~Leach-Bliley Act, or any 11 provision of Federal or State law relating to notice of data 12 security breach or privacy, or any regulation prescribed 13 under any such provision of law, shall not be treated as 14 an initial communication in connection with debt collection 15 for purposes of this section.". (c) ESTABLISHMENT OF RIGHT TO COLLECT vVITHIN THE FIRST 30 DAYS.-Section 809(b) of the Fair Debt Col- lection Practices Act (15 U.S.C. 1692g(b)) is amended by adding at the end the following new sentences: "Collection activit'ies and communications that do not otherwise violate th'is title may continue during the 3D-day period referred to in subsection (a) unless the cons'umer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection acti'ui- From: To: Date: Subject: "Scott Adkisson" <scott@financialcrimes.net> "'Tom Johnson'" <Tom.Johnson@ci.columbia-heights.mn.us> 10/30/20062:03:07 PM RE: Worthless Check Agreement Thanks Respectfully, Scott James Adkisson President Financial Crimes Services Minnesota 1-800-880-5420 Wisconsin 1-800-906-8182 -----Original Message----~ From: Tom Johnson [mailto:Tom.Johnson@ci.columbia-heights.mn.us] Sent: Monday, October 30, 2006 10:09 AM To: Scott Adkisson Subject: RE: Worthless Check Agreement Scott I will have to check on the next date and get back to you. TomJ >>> "Scott Adkisson" <scott@financialcrimes.net> 10/30/2006 9:53 AM >>> Tom, Attached is the agreement with changes. Does the Council Work Session have specific times they meet? If so could you give me the dates and times so I can tentatively schedule the meeting. Respectfully, Scott James Adkisson President Financial Crimes Services Minnesota 1-800-880-5420 Wisconsin 1-800-906-8182 -----Original Message----- From: Tom Johnson [mailto:Tom.Johnson@ci.columbia-heights.mn.us] Sent: Monday, October 30, 2006 9:43 AM To: Scott Adkisson Subject: RE: Worthless Check Agreement Scott, If you could send a new copy with changes made I would appreciate it. I will be meeting with the City Manger this week reference the program and then will set up a Council Work Session for you to come in and do a presentation. Thanks Tom J Thomas M. Johnson City of Columbia Heights Chief of Police (763) 706-3755 >>> "Scott Adkisson" <scott@financialcrimes.net> 10/30/20068:14 AM >>> Tom, All changes are fine. Would you like for me to make the changes and resend a new document or would the attorney just like the document to be signed with the strikes? Respectfully, Scott James Adkisson President Financial Crimes Services Minnesota 1-800-880-5420 Wisconsin 1-800-906-8182 -----Original Message----- From: Tom Johnson [mailto:Tom.Johnson@cLcolumbia-heights.mn.us] Sent: Friday, October 27, 2006 1 :25 PM To: Scott Adkisson Cc: Jim Hoeft Subject: Worthless Check Agreement Scott, I had our city Attorney go over this agreement and there are some changes he wants made. I want to make sure the changes are ok before I take this to the City Manager or City Council for review. I have attached the Agreement with the changes noted in underscore or strike through. The changes can be found on: Page 3 #8 added a line and crossed out last line. #14 crossed out last line. Page 4 #15 B Last line strike - professional errors and omissions and/or negligent or. Page 4 #18 Second line towards the middle strike out parties and insert party. Also strike out the Line that starts off The City agrees to promptly respond to inquiries from FCS concerning data request. We will respond as required by State Law "In a prompt manner". #19 page 4 There is no Ordinance Chapter i 39 in Columbia Heights and strike the sentence that starts with These laws deal with discrimination based on race, gender etc. etc. Page 6 D Remove the quotes and parenthesis around Error & Omissions. First line $1,000,000 missing a zero. Sign off line is our City Manager . Please review the changes and get back to me if they are ok? Thanks! Thomas M. Johnson City of Columbia Heights Chief of Police (763) 706-3755 WORTHLESS CHECK PROGRAM AGREEMENT FOR THE CITY OF COLUMBIA HEIGHTS, MN 1. Contractual Aereement - This Agreement is made and entered into this day of , 2006, by and between the City of Columbia Heights, State of Minnesota, and Financial Crimes Services ("FCS" hereafter), of 406 Main Street Suite 200, Red Wing, Minnesota 55066-2398. 2. Purl10se - The purpose of this Agreement shall be to implement a Worthless Check Diversion Program (statute 628.69) for the City of Columbia Heights. This program provides an alternative to criminal prosecution of individuals who issue worthless check(s) to merchants and businesses. The program will assist the Columbia Heights Police Department and other law enforcement agencies in obtaining records to assist in the investigation and prosecution of individuals issuing worthless checks. This program will provide that the victim is paid full restitution from the offender who has issued the worthless check along with financial training for the first-time offender. First- time offenders who participate in this program will be diverted (also known as Pre-Trial Diversion Program) from prosecution. FCS will assist the City Attorney and Victims in obtaining full restitution for victims of non-sufficient funds (NSF) checks and account closed (AC) checks. FCS is responsible for managing pertinent case files and conducting financial education classes for first time offenders. 3. Contract Terms - This Agreement shall be in force for a period of three (3) years, beginning upon the date of city approval. Termination provisions of this Agreement are provided in sections 9 and 11. 4. Definitions: A. Victim - the business or person who accepted a dishonored check for goods or services and suffered the financial loss. The victim must be in good standing with the City of Columbia Heights licensing Department. B. Offender - the individual who has enrolled in the Worthless Check Program voluntarily or has been ordered by the Court to complete the Worthless Check or other diversion programs. C. Restitution Recovery - Dollar recovery of face value (or written amount) of a dishonored check(s), property damage, as well as administrative fees, civil penalties, bank fees as Appropriate and law enforcement costs. D. Financial Education Class Fees - The fees associated with the training classes the offender attends as part of their restitution Agreement. Worthless checks $ 85.00 5. Citv Support - The following is needed for the implementation of the program: A. City Attorney and Police designees will assist FCS in organizing and implementing the restitution program with courts and law enforcement personnel. The designee will also provide guidance in publicizing the program to the business community. B. City Attomey and Police designees will conduct as needed meetings with key FCS staff to offer procedural guidance, evaluate program performance, and provide support and direction. C. City Attorney and Police Department shall implement departmental policies that are consistent with the fulfillment of the terms of this Agreement. D. Police designee shall support FCS in reviewing checks received in the program daily that are posted on the web site. 6. Performance AJ!reement - FCS agrees to provide the following professional services to the City of Columbia Heights in a timely and efficient manner. FCS will provide the following level of administrative services and offender education classes: A. Perform daily operations and management of all clerical and accounting functions related to offenders ofNSF checks to be included in the Columbia Heights Worthless Check Program. B. Perform daily operations and management of all clerical and accounting functions related to offenders of Property Crimes C. Generation of demand notices to worthless check writers, and follow through with respect to the collection and disbursement of victim restitution, administrative fees, and FCS education training class fees. D. Provide necessary correspondence and follow-up telephone inquiries to victims and offenders. E. Properly maintain all physical files, financial records, documentation, reports, computer files, etc. for a period of no more than six (6) years. F. Provide voluntary (unless mandated by state statutes) worthless check offender financial management education classes. G, Conduct classes designed to teach and provide meaningful information and lessons to offenders on criminal consequences of Property Crimes. as well as focus on personal management. H. Scheduling of all classes. The training will require 6 hours of class time. Sessions will be held in the City of Columbia Heights and lor surrounding cities. These training sessions may be jointly held with other metro communities. Class size to not exceed 30 attendees. 1. Maintain records of offenders making restitution, payment of fees, attendance records of offenders completing as well as failing to attend the training session. J. Maintain records of payment to the victims and City of Columbia Heights fees on a monthly basis. K. Provide reports to the City of Columbia Heights; annual, quarterly, monthly financial revenues, completed offender classes, and related reports as required by the City and law enforcement. L. Offenders who refuse to enroll into the program or fail to complete the program will be reported. 2 7. Proeram Operational FeesIRevenue: 1. Victim A. The victim will be reimbursed any money recovered from the offender. 2. Check Diversion will be governed by B. Minnesota Statutes, section 604.113 subdivision 2, paragraph (a) allows for the collection of a service charge on dishonored checks with a not to exceed value of $30.00. C. Minnesota Statute 609.535 D. The fee for offenders to attend the educational class will be $85.00. This fee will be retained by FCS to conduct these classes. This class may be waived by FCS, provided that the offender pays the face value and civil penalty within Fourteen (14) working days. E. A fee of $20.00 will be assessed to an offender who fails to appear at education class and has to re-schedule for the class. This fee will be assessed each time the offender has to re-schedule. This may occur up to three (3) times before referring the offender to the Police as failing to appear. 8. Non-Compete - During the term of this agreement the City shall not establish a competing worthless check program or any other similar program. This condition shall not applv to anv programs existing prior to the date of this Agreement. 9. Aereement Date - This Agreement shall remain in effect from ,2009. - , 2006, to 10. Citv has no tinancialliabilitv - It is understood and agreed by and between the parties that FCS any subcontractor will bear all financial liability for all aspects of its operations under this Agreement. 11. Termination of this aereement: A. This Agreement may be terminated at any time by either party upon 30 days written notice to FCS or the authorized agent of the City. This Agreement may be terminated by FCS upon 30 days written notice to the authorized agent of the City if FCS determines that it cannot conduct or administer the Worthless Check program because program-related income does not equal program costs. F. This Agreement may be innnediately terminated by the City at any time if the City determines that FCS, (see section 16 of this Agreement) is acting, or has acted at any time during the term of this Agreement, in violation of state or federal law. 12. Amendments or Material Modifications - All amendments or modifications to this Agreement must be in writing and approved by both parties. 13. No City Obli1!ation to Merchants - FCS and victims who participate in this program fully understand that the Worthless Check Program is providing a public service and the City of Columbia Heights is held harmless and has no liability to make recovery of any check(s) or obligated to take criminal action against3 offender(s). 14. Criminal Action - The City Attorneys Office for the City of Columbia Heights may choose to prosecute offender(s) at its sole discretion. 15. Hold Harmless and Indemnification: A. FCS shall save and protect, hold harmless, indemnify and defend the City, its officers and employees against any and all claims, causes of action, suits, liabilities, losses, charges, damages or costs and expenses arising from or allegedly arising from, or resulting directly or indirectly from any professional errors and omissions and/or negligent or willful acts or omissions of FCS and its employees and agents, in the performance of this Agreement. B. The City shall save and protect, hold harmless, indemnify and defend FCS its officers and employees against any and all claims, causes of action, suits, liabilities, losses, charges, damages or costs and expenses arising from or allegedly arising from or resulting directly or indirectly from any willful acts or omissions of the City, its employees and agents, in the Performance of this Agreement. 16. IndeDendent Contractor: A. Nothing contained in this Agreement is intended to or shall be construed in any manner as creating or establishing the relationship of employer/employee between the parties. FCS shall at all times remain as independent contractor with respect to the services to be provided under this Agreement. B. The City shall be exempt from payment of all unemployment insurance, FICA, retirement, life and medical insurance and workers' compensation insurance for any and all of FCS employees and agents. Payment of insurance premiums, tax withholding, and all other benefits are strictly FCS responsibility. 17. Subcontractor - FCS shall neither subcontract any portion of the work to be performed under this Agreement nor assign this Agreement without the prior written approval of the authorized agent of the City. FCS shall ensure and require that the subcontractor agrees to and complies with all of the terms of this Agreement. Any subcontractor of FCS used to perform any portion of this Agreement shall report to and bill FCS directly. FCS shall be solely responsible for the breach, performance, or nonperformance of any subcontractor. 18. Data Practice - FCS agrees to comply with the Minnesota Govemment Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentially. The FCS will immediately report to the department head signing this agreement any request from a third party for information relating to this agreement. FCS agrees to hold the City, its officers, department head and employees harmless from any claims resulting from the Contractor's unlawful disclosure or use of data protected under state and federal laws. 19. ComDliance with the Law - FCS agrees to abide by the requirements and regulations of The American with Disabilities Act of 1990 (ADA), the Minnesota Human Rights Act (Minn. Stat. C.363), and Title VII of the Civil Rights Act of 1964. Violation of any of the above can lead to the termination of this Agreement. 20. Entire A1!reement - This entire Agreement supersedes any and all other Agreements, either oral or vvritten, between the parties hereto with reSDect to the subiect matter hereof, and contains all 4 . - of the Agreements between the parties with respect to said matter. Each party to this Agreement acknowledges that no representations, inducements, promises, or Agreements, oral or otherwise, have been made by either party which are not embodied herein, and that no other Agreements, statements, or promises not contained within this Agreement shall be valid or binding. All provision contained within this Agreement shall be valid or binding. The laws of Minnesota and the United States of America shall govern all provisions within this Agreement. 21. Audits and Inspections - The City Attorney's office or designated representative or other governmental agency exercising regulatory function over the City's business activities, while exercising reasonable, non-disruptive procedures, may inspect FCS records at anytime. 22. Notice - Any notice to be given hereafter by either party to the other, shall be in writing and may be affected by personal delivery, or by registered mail, return receipt requested, addressed to the proper party, at the following addresses: City of Columbia Heights 559 Miil Street NE Columbia Heights, MN 55421 Att: Chief Johnson FCS 406 Main Street Suite 200 Red Wing, MN 55066-2398 Att: Scott Adkisson 23. Insurance - FCS agrees to provide and maintain, at its own cost and at all times during its performance under this contract until completion of the work, such liability insurance coverage as is set forth below, and to otherwise comply with the provision that follow: A. Workers Compensation: Workers Compensation insurance in compliance with all applicable statutes. B. Auto Insurance - Owned and unowned C. General Liability: "Commercial General Liability Insurance" (Insurance Service Office policy form title), or equivalent policy form, providing coverage on an "occurrence", rather than on a claims made basis, the policy for which shall include, but not limited to, coverage for bodily injury, property damage, personal injury, contractual liability (applying to this contract), Independent Contractors, and Products-Completed Operations Liability. Coverage for explosions, collapse and underground Hazards shall not be included. Such a policy shall name the city as an additional insured thereunder, and shall apply on a primary basis with respect to any similar insurance maintained by the City, which other insurance of the City, if any, shall apply excess of FCS insurance and not contributed therewith. FCS agrees to maintain Products-Complete Operations coverage on a continuing basis for period of at least two years after date of completion Such Commercial General Liability insurance policy shall provide a combined single limit in the amount of at least $1,000,000 (one million) Each Occurrence, applying to liability for bodily injury and property damage, and a combined single limit of at least the same amount applying to liability for Personal injury and Advertising injury. Such minimum limits may be satisfied by the limit afforded under Firm's Commercial General Liability Insurance Policy, or by such Policy in combination with limits afforded by a Umbrella or Excess Liability Policy (or policies); provided, that the coverage afforded under any such Umbrella or Excess Policy is at least in all material respects as broad as that afforded by the underlying Cornmercial Liability Policy, and further that the City is included as an additional Insured thereunder. Such Commercial General Liability Policy and Umbrella or Excess Liability Policy (or policies) may provide aggregate limits for some or all of the coverage afforded thereunder, so long as such ao"'oCFfegated limits are not at anv time durin!! which such coverage is required to be maintained J -5 -- hereunder reduced to less than the required Each Occurrence limited stated above, and further, that the Umbrella or Excess Liability provides from the point that such aggregate limits in the underlying Commercial General Liability Policy become reduced or exhausted. An Umbrella or Excess Liability Policy which "drops down" to respond immediately over reduced underlying limits, or in place of exhausted underlying limits, but subject to a deductible or "retention" amount, shall be acceptable in this regard so long as such deductible or retention amount does not cause the firm total deductibles or retention for Each Occurrence to exceed $10,000. D. Professional Liability: Professional or ~Error & Omissions1.:1 Liability Insurance in the amount of at least $1,000,000, Each Occurrence (or "Wrongful Act" or equivalent) and if applicable, Aggregate, covering FCS Liability for negligent acts, errors, or omissions in the performance of professional services in connection with this Agreement. FCS Professional Liability Insurance may afford coverage on an occurrence basis or on a claims basis. It is however, acknowledged and agreed by the FCS that under claims-made coverage changes in insurers or in insurance policy forms could result in the impairment of the liability insurance protection intended for the City hereunder. FCS therefore agrees that it will not seek or voluntarily accept any such change in its Professional Liability Insurance coverage if such impairment of the protection for the City could result: and further, that it will exercise it's right under any Extended Reporting Period" ("tail coverage") or similar claims-made policy option if necessary or appropriate to avoiding impairment of such protection. FCS further agrees that it will, throughout the entire period of 3 years keep required coverage and for an additional period of two (2) years following completion of this agreement, immediately: (a) Advise the City of any intended or pending change in Professional Liability inures or in policy forms, and provided the City with all pertinent information that the City may reasonably request to determine compliance with this paragraph; and (b) advise the City of any claims or threat of claims that might reasonably be expected to reduce the amount of such insurance remain available for the protection of the City. THEREFORE: IN WITNESS OF, the parties have executed the Agreement as of the Elata date first written above Financial Crimes Services City of Columbia Heights By (Scott Adkisson - President) By (City ManagerL Attested (Chief of Police) 6 City of Columbia Heights Public Works Department Work Session Discussion Item: Work Session Date: November 20, 2006 Prepared by Jesse Davies, Refuse/Recycling Program coordinat~ Item: Review of Refuse/Recycling operations: Single Sort Recycling Background: Single Sort Recycling. BFI! Allied Waste is able to provide single sort recycling for the City of Columbia Heights, but only with the current containers. At this time it is cost prohibitive for BFI/ Allied Waste to invest in the 60 gal, single sort containers for City wide services. BFI will notify residents of the change to single sort in the current containers. Anal ysis/Conclusions: Single Sort Recycling. Staff believes allowing residents to commingle recycling products will increase recycling participation, even without the new single sort containers. This will ensure the City of Columbia Heights meets or exceeds the recycling tonnage goals and continues to qualify for the refuse grant from Anoka County. Requested Action: Infonnational Purposes Only - No action requested for Single Sort Recycling at this time. ~6 City of Columbia Heights Public Works Department Work Session Discussion Item: Work Session Date: November 20,2006 Prepared by Jesse Davies, Refuse/Recycling Program coordinato~ Item: Review of Refuse/Recycling Appliance Pickup and proposed changes Background: Appliance removal is currently a free service for residents of the City of Columbia Heights through our contract waste hauler, Allied Waste. Appliances are collected curbside at no additional charge as part of the recycling program. Since these are only occasional items, it is necessary that a resident call and request pickup. By tracking pickups in 2006, it appears that the City is experiencing excessive volumes of appliance pickups in the City. See attached spreadsheet. June 2006 had 399 appliances picked alone. It is suspected that appliances are coming into the City of Columbia Heights because of our simple and free process to dispose of appliances. Anal ysis/ Concl usions: To control excessive appliance pickups while continuing the free service, staff recommends requiring residents to obtain an appliance tag from the City desk for any appliance pickup. It is recommended that each property would be allowed 1 free tag/year. Additional appliances would be the responsibility of the owner to dispose, either by purchasing a City tag for $35, or arranging for disposal on their own. Requested Action: Authorize new appliance tag procedure for appliance removal and begin fee-based service after 1 sl -hre'" pI' C'k P .L ..L """ _\,..U. Attachment 2005 & 2006 Columbia Heights: Total Appliances Picked Up 120051 Month Units January 115 February 127 March 170 April 219 May 192 June 314 July 253 August 305 September 262 October 294 November 299 December 177 2727 f2OO61 Month Units January 148 February 153 March 171 April 247 May 280 June 399 July 286 August 3/3 12057 City of Columbia Heights Public Works Department Work Session Discussion Item: Work Session Date: November 20,2006 \11\'J Prepared by Kevin Hansen, Public Works Direct~\Y/V> /'Jr; ~ Jesse Davies, Sump Pump Program'd50rdinatory u..-- Item: Review of Sump Pump Disconnect Program and continuation of financial reimbursement. Background: Phase I (Jackson Pond Area & Chatham Road area) of the City of Columbia Heights Sump pump Disconnect Program started in November 2004, and Phase II (east of Reservoir Boulevard, south of 451h Avenue) started in November 2005. See attached map for Phase I and II boundaries. The end of 2005 inspected over 1900 properties inspected under this program. The inspections found 64 illegal cross-connections. The City experienced 90% active participation by residents for scheduling and 93% participation to eliminate detected cross connections. As of the end of2005 $86,113 was spent on total program costs over the two-year period. Of this, $22,923 was for reimbursements to property owners for eligible expenses. Phase III began in November 2006 and will concentrate in sanitary sewer district 2, which is that area between Reservoir Boulevard and University Avenue, south of 42nd Avenue. There are approximately 1,000 properties in this area that has been typical of our annual program. Anal ysis/Conc lusi ons: Staff believes the use of the surcharge on utility bills for non-participation and the current $500 reimbursement offered to remove a cross-connection is a major contributor to the high participation level of Columbia Heights residents for this important program. It is also critical to continue our III removal efforts as 2007 is the first year of the !I..1etropolitan Council III surcharge program (see attached MCES letter). The City of Columbia Heights has an $85,000/year surcharge imposed on it, which can be offset by costs the City incurs in III reduction efforts. Requested Action: Extend the surcharge for non-participants and the $500 reimbursement program for removal of a cross-connection for the years 2007 and 2008. Attachments jj~ Metropolitan Council n July 13, 2006 Walter Fehst City Manager City of Columbia Heights 590 - 40th Ave. NE Columbia Heights, MN 55421-3835 RE: Preliminary Inflowllnfiltration (III) Surcharge for 2007 Dear Mr. Fehst: . This letter is to inform you that your community will have an III surcharge added to your 2007 municipal wastewater charge from MCES unless you take action in the next two months. You are receiving this letter because your community had at least one excessive III event in the measurement period (June 2004 - June 2006). The surcharge is based on the maximum event that was measured in each separately metered area of your community. The maximum excessive peak flow event for your community occurred on 9/4/05 & 6/17/06 and was 1.22 mgd. The Inflow/Infiltration Total Cost for your community (IITC) is estimated at $427,000 (based on $350,000/mgd). This cost is divided by 5 (years) to determine the preliminary 2007 III Surcharge of $85,400. You have an opportunity to get this number adjusted or to apply credits against it, if you do so before September 15th. Details of the adjustments and credits, as well as the required documentation, are in the Surcharge Procedure Manual which we previously sent to you. The manual is also available in the 1/1 project area of the Council's web site at: http://www.metrocouncil.orq/environment/ProiectTeamsll-I-Home.htm ) Note that there is also a toolbox of information on 1/1 programs for communities and other information about the Council's III program at this web site. If. your community does not apply for adjustments or credits by Sept. 15th, the final surcharge will be the preliminary surcharge stated above and will be billed beginning with the Municipal Wastewater Charge bill for January 2007service (sent out in mid-December). The final surcharge will be available as rebates to your community beginning in 2008. Rebates will be based on the qualified expenditures (see the Procedure Manual and examples in the III toolbox) made by the city or private parties within the city. Details of the rebate process are also available in the Procedure Manual. If you have questions regarding the basis of the excessive flow determination or other technical aspects of the 1/1 Surcharge Program, please call Kyle Colvin at 651-602-1151, if you have any financial questions please call me at 651-602-1196. Sincerely, cfl-J~ Jason Willett MCES Finance Director cc:: Tony Pistilli, Metropolitan Council Member, District 2 Kyle Colvin, Principal Staff Engineer, MCES Engineering and Planning Group City Finance Officer www.metrocouncil.org 390 Robert Street North.. S1. Paul, MN 55101-1805 .. (651) 602-1000 .. Fax (651) 602-1550 .. 'lTY (651) 291-0904 An Equal Opportunity Employer ~ Metropolitan Council ........ Environmental Services July 7, 2006 Walter F ehst City Manager City of Columbia Heights 590 - 40th Ave. NE Columbia Heights, MN 55421-3835 RE: Design Peak Flow Exceedance June 17,2006 Event Dear Mr. F ehst: The Metropolitan Council adopted an III Surcharge Program on February 8 2006, which places a surcharge on a community's municipal wastewater charge when a community exceeds their III Goal (maximum hourly discharge limit). An III Procedure Manual was adopted in May of2006 and was sent to your community immediately after its adoption. Copies of the III Surcharge Procedure Manual can be found on the Metropolitan Council's website at: www.metrocouncil.org along with a list of communities having an III surcharge. According to adopted procedures, the Metropolitan Council Environmental Services (MCES) will notify metropolitan communities served by the Metropolitan Disposal System (MDS), when flows generated within your community exceed the III goals for your community. The design parameters used by the MCES in the construction of the regional conveyance system was established as the III goal for each community. Attached is a copy of a flow chart for the subject event(s). Your community, either in part or in entirety, exceeued the III limit during these events. If you have any questions regarding the attached chart, the aforementioned manual, or data that the MCES may have regarding your communities flow discharges to the MDS, please don't hesitate to call me at (651) 602-1151. Sincerely, , \Q ,'"' U ' r\ ';~"'"~--' (~ G~,A Kyl~l. Colvin, PE Principal Staff Engineer, Engineering and Planning Group Enc1osure(s) c: Tony Pistilli, :r'v1etropolitan Council Representative, District 2 Bill Cook, Manager, Engineering and Planning Bill J\!IoelIer, Assistant General Manager, Interceptor Services www.metrocounci1.org 390 Robert Street North. St. Paul, MN 55101-1805 . (651) 602-1005 . Fax (651) 602-1477 . 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