HomeMy WebLinkAboutAgenda - 12-11-2001-5aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 11.2001
Aetion Agen a
Item No. I-
SUBJECT: North Carolina Local Government Oebt
DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Resolution INFORMATION CONTACT:
1119/01 NCACC Executive Director Memo Jo Rabersan, ext 2121
Drell Memorantlum of Untlerstantling
Antl Agreement TELEPHONE NUMBERS
Hillsborough T32-8181
Chapel Hill 968-0661
Durham 688-7331
Mebane 336-33T-]831
PURPOSE: To approve a resolu8on authorizing staff [c participate in the North Carolina
Local Government Debt Setoff Program.
BACKGROUND: During the 1991 legislative session, the North Caroline General Assembly
approved leglelation that euthortzetl local govemments to participate in the States income tax
refund debt setoff program. Local governments can now work to satisfy debts owed to them by
collaboreiing with the Department of Rerenue [o receive portions of Sfete incmme tax refunds
that may be duetotaxpayers who owe money to local governments. The North Carolina
Association of County Commissioners and Nodh Carolina League of Municipalities have worked
together end have recently developed en arrangement with Five Star Computing, inc. of South
Carolina to assist local governments in receiving debts owetl [hem by tliveding incmme tax
refunds Yhat would otherwise be sent to debtors. Local governments era obliged to pay Five
Star $15 for every debt payment (only those tlebts of $$D or more can be offset under this
program) successfully obtained on behalf of the local govemmenL but the local government
chooses which tlebtathey tlesire thevendor to pursue on Neir behalf. Revenue DireIXOr Jo
Roberson would be Orange County's designated paint of contact for this program and would be
IDs County official empowered to consitler appeals from tlebtors untler the tlue process aspects
of the debt setoff program.
The accompanying resolution would authorize the Manager antl staff lc participate in this
program, as outlinetl further In the attachetl NCACC memo antl [he proposed memorentlum of
untlerstantling.
FINANCIAL IMPACT: Stall estimatesthet participation in this program wultl leatl to [he nef
collection of several thousantl dollars (and perhaps more, as the program matures in Orange
County) annually that would otherwise go uncollected. There woultl be a Nat cost of $15 for
z
each tlebt successfully colleMetl. Since each tleb[ pursuetl would be et least $5g, the County
would net nc leas than $35 for each tleht collectetl.
RECDMMENDATIDN(5~: The Manager recommends that the BOSrtl approve the n=solution
authorizing Orange County's participagon in [he debt setcH program; antl authorize the
Manager to execute any agreements or other relatetl documents pertaining to the debt setoff
program, subject tc foal review by staff sod the County Attorney.
ORANGE COUNTY BOARG OF COMMISSIONERB
A RESOLUTION APPROVING ORANGE COUNTY'S PARTICIPATION IN THE
NORTH CAROLINA LOCAL GOVERNMENT DEBT SETOFF PROGRAM
WHEREAS, North Carolina General Statutes Ghapfer 105A, the Setoff Oebt Collection Act,
authorizes the North Carolina Department of Revenue to cooperate in itlentifying tleb[ors who
owe money to local governments and who qualhy for refunds from the Department of Revenue;
and
WHEREAS, the law authorizes the selling off of certain debts owed to local gwernmenis
against tax refuntls; and
WHEREAS, the North Carolina Association of County Commiseicnere and the North Carolina
League of Municipalities have joinlly established a clearinghouse to submit debts on behalf of
Orange County, as providetl bylaw,
NOW. THEREFORE, BE IT RESOLVED that Ne Orange Counly Boartl of Commissioners tloes
hereby indicate its intention Nat Omnge County will participate in [he debt setoff program antl
does hereby designate the Omnge County Tax Collector as the officer to hold hearings and
conduct necessary proceedings ee established by law.
BE IT FURTHER RESOLVED THAT the County Manager is hereby empowered to execute
such agreements and rela[etl documents as may be necessary to implement Oange Counrys
paNCipation in the debt setoff program.
This, the 11~" day of December, 2001.
Barry M. Jawbs
Chalr
E S
roro~= - _ 4
Y° North CaroWaAeeocutlov North CamDVa League of.
wF of County Commiaeiovem A4mldpalities
6
To: Cmvty Meoagem
Rty BPmagess:Gerke
Frain: GRopdd Aycock,NCACC Raemtive Oirermr
' S. PDk Amkim, NCLM Ikemtlve Director
Dak: November 9, 2001
Sabjal: NC Iursl Governmm[ Debt 6emtt Cleaemghmm m Tma61e Comdee and Cities to
PazYOpa@iv Sln[e Taz Retmdlhbt Semtt Progrmn
Tmiaivg N be held November 2], City ofHfekory CoanrS Charobete (]0 N. Cenkr
Street), & November 29, City of Wilmn CovmR L%ambere (112 N. Goldaboao Slreetl.
both aauom from 1:00Pm.-O:aO pm.
SmselawrapufraePriarilier Ofsebffbe erfvb4xhed based on dmeofdefinguem debt
aWm4akn--eg. 9mt lr5jLNPNd
Dmiug Ne 199) Gevmal Aaeembly 6eaeim, sbe NmW Cazolioe Aaociadov of Camty Commis6imrre and the
NoM Carolina lzaga ofMmiripalidea was aucceaeEil iv having mattedalegitladve HVal e:mbtivg cmmdes
.na rives m parcmlpate mine 6tak~6 incove m, aem mtoff progam. The program pemik nomtim am ~vaa
m subWt mY mhsaotlk8 depvqums debt ($50 a rose) shrough a local Bovetvmevt cleasivghouve m Ne NC
Depamxn[ of Revnue, m attempt m makh dwse dtlNa agw6t IMtvkvel iucoVae tax m[uke. The local
govemmeot cleaziv8houae u alwchazged with debasing ofisG funtla bazkm the mcuving county md/m rity.
NGACC and NCLbI have wgaointl a joim NC I.ocil Imvavmeut Debt Setoff geeringhome m make dds
pmgrms avaJabla m all NaN CmoOVa rmmdes and cities NCGS lOSA evam;:a6 covnry sad city
psaticipadoa w the debt eemffpmgmm dmugha ckarin8houw (uvcdm ®dlimits cleainghmae pardcipatim
m Wly Camde6aM cNe6.
Delioquwt dobt u e amvsbes ie e:leeas $$0 awed ma cvmry m city (claimam agevcy) that Me amued thwugk
vac4 nubroBadm. tint, opaadm of law, m any odes kgal theory regaNlesa of whetba Nero is an
mntmdivg judgment fm:he sum Furthesmme, we ase requiring that a fW16D days nm[ lapse atv3 a local
gavusmam labels Ne tlebt sa delivrymtbefine We debt cm he sabmitpA m the clearinghouse The rnmry m
city venal fuswah dse Poll name and social mcmiry vumber of cacti debm.
Thu pmgnm will havdk to refmde begwwvg with the 2001 to yea, e~ addidmal wfmmstivn will be
providedmdceveer NSmomepablist Om uai:ial dace fm aubmuaim. Duero priority hevdling of debk, we
rerommevd that PartidPativg umfe begiv aasemhGVy debt wlmme[im immdivtety evd ivisia[e the
segnired mD0®dov avd appmle procmeu
Gat of pazticipatim wilt be 515 far each sureassNl meich of debt agairat sV indiaMnal tleMOi a sax refund.
No Gasgea wiP came Vuless a rvcceufvl lax sefimd aemff k made. The $IS ^°""a be rbesged m the tlebsar
but m6t be Paid by Ne Pasdci W dug <omry m airy..
NCACC avtl NC[M here contmnW wiN Five Sea Gmpudvg, Na., Columbia, SC Iv adnovi6ler the prvgam
Fve Sta CampVtivg mill receive, pmceea mtl mbmi[ We cmaopdaced tleb[s t0 [M North Carolina Deparuvetu
of Revenue, aW has established a snit crn[tt ro 1mrdle telephone rNls from mpayers who have kad Ncv
refvvda wiW:cld Nwhole ormpan.Five Star wW also be eubmiNn6 eveceaefW me[chiVfwmedon backmdce
participating cowries end citla. Pine Stu has mwagfd We Sourh Cazolwa ASwciatiw of Counties deM wtoR
program since iu mceptiw5ve yeazs ago.
$umeasful amtch fmtla wJl be d'ubureed Wrough Capial Managemmz of dro Caro0vas, the bBary Net
ee admwiso-atiw of tM NmW Cmolwa Capital Maoagevm[ Ihuv. Each nmvry and city wJl ned m
M1avo w bcom[ with Capial Mweg<ma[ and wJl need to complem Caput Mamgement'e evclvsed "N[w
Pmd Authorization Tmosle' (mm desigssaing io- eawu numbs b receive the fw4. DemBe regarding
completion wd vavemissiw of thh form and opening new eamnts emompwy Ne form in this packet
(Addwdum B). No edditimal [huge wilt arcme fm Nis auviee-C plml Memgemmt covaidva dua av
impmmet service offm'eg m iIS cormry end ritY [Eats.
U oNa to pactiripaze w the pmgam, eazh cowry and <iry mmt epee ro comply wiW NCCS lOSA~I Nmugh
103A-I5. Ewh couvry and any thu devves b puticipae should become famJiar wiW du tyuvemuu
Wemm. CertaN appeal pm lures ivclvdiug vouftcatim to We debor wd debmr'e rlpe ttveb<envg mmt be
fopowrd. The cmvrywrity moat send wnven naps to adebmrthat the eaevcy wmvda mewwhthe deb[fw
aoBectivn by setoff. The voice must explain the deM sod that W cmnty w city Inmvda m aPPIY the debtor's
refwd agairut the led. The notla moat also infom the debtor Waz the debtor hue We rlfpt m ccotat the
matmrby filing a requert for a Manvg wiW [he cowry w city, must sUm the time li®m and spmifics of [hc
hearing, wdmvat etas dot faBurt to rtgwvt a Faring within Wereiuired time will reaWr m auoff Of the d<ln.
Pleaw fled mcloeed a savple nodsadw lava, a sample Pos[ Leedng nOldceYw lane[, and a tracking form
fwyowuee (Addendum C).
A debtor who dxidu tocafut a propoud w[off muu file a written acquut for a hemmg wiW We county m
<iry wiWiv 30 tlaYe efler the date the cmmty m rity mails a votia of the propaed action t0 [ba debtor. Tee
govemwg body u a perebn deeipta[ed by We gavazving body mast hold tle hearing B da debtor disagnm
with the decision reMered ds<dchtm o,ey Ne a petidm for a cwmsred case under AviclC 3 of Chapms 130B
ofthe Creveml Smmma. Itm pedtiov mw[ be filed wihin 30 days a(mr the debtmrwelves a copy of the cow[
m city's dwisiw. Please fwd websetl a summ ry of the nodficetim and apprsla praceas (Addendum D).
Platy Jm note Wet no debt av ba wbmflted m the clearioghuuse mW We wtlre mtlflatlov and
appeelspauaehamplemd for thudehA
Leal Government Deb[ Se W R Claainghm~ae Program end March Guldelives higWighte wrlude:
ady mmnv a~ citiu-may participate w Ose NC Lail Govenuvat Dept Setoff Guringhowe
program
• The wunty w city may combwe wdividal debts of at least $i0 ann by debtor name and social
securitynumbw forsWmissionmtbe program Again. the individual deh[mbe mmbinoi muu egwl
mexceai $50. Debts lua tluv $SOcevnw he combinaimnuet Ne $50 BveWOld.
• No tleW•""be abnvttnd wdltMymemleeat 60 fWl days pss[We lrcilcowrywcity's detm'fim of
de4vgwury. For example, NCvmuy A's policy def~a s bill as delivquem ahu 30 Jaya from iv dos
date, Cawry A muv wa@ 90 days 5om the bill's dce due befae aubminign the MM ro [M1e
clearinghmw.
• 1Jebu must M aubvdtW in Ne fomut end m lia regwved by Wa NC Gael Govmvmevt D:bt Srtaff
Clrarivghouw.
• Pu aWe law, pdaitiu fm refunds wilt be detemdned when th deb is iNdeuy eubmitmd t0 We
program. PI,EA6E NOTE TF1AT STATE AGENCTE6 HAVE PRIORITY OVER LOCAL
AGENCIES FOB COLLECTTONBY 6ETOFF.
Existing submitted debt/ may be etljue[ed upwadr fm mteres4 far, paml[ies, etc., arW will retain We
oripnil priwhy osdm, bat om a later aubmined mw deb4 even if fm dx: same deb[oc. New debts will
be da[cslempN with We Em subndssiw dam.
• Successful matchee against a d<btm rcfwd will b<medirctl to W<fnat Ieml coaoty m dry aubmittivg
[M1e deb[. A $13 fee will lx witMeld 5nm the credit a the first county m city. Y the couvty w ciry
mbmiuetl multiple debar mdertbe ram tlebmrv"_, and srcial sewriry vumba w iM acme date (e.g.
the ewoty m my chose vd to combine mattiple debd wtlv rte came tlaMm wne antl srcUl eem¢iry
number), We couvty m Wty wiH wly be charged one Sly fa. Agile, We uouvly or dry swot
dwge fhedeblor for We $13 cud moat reduce the debt by the wlbu emouut withhdd.
• SMUId the wdivWOSI debmi a refund excced We foot couvty or chy a roW debt am amdw cowry m
city hu submitted oNa debt(s) awed by We acme dcbtvr. We tlebtm'a vguahdug nluvd will be
reduced by the amoum of We a°.cond cowry m city's debt and the 515 fee vNl also be withheld fmm
We aedit to the srewd couvty m ciry. lhia pine ime shell cwswue Wruvgh the prloisry oY deMOn
should tlsre Mauffcient refund due daP tleb[«.
• ]farcfuvd is duemedeb[aeeaubacqueN yam wdibe debteondnwsm exceed $SQ iM refimd aheH
bepdd b the eewry a dry tMt remains nut m We oadtt m Pdadry inclvtling a couvty or ciry that
received a partial payment of is debt fiom the rcfwd due m apaimyem and anew Sts match fee shall
be charged. S6oWd We imEJUIUW deb[m'a ref: d unwed de fiat cowry m tiry'a toW debt and
woNU cowry m ciry bas submitted aha debt(s) owed by the same tlebtw, the debtm'a rcfwd wW be
redwW by the avnuvtof dre aecwd county or city's debt wdewwSlS fre will also be wihheld linen
We credit to the second cowry m ciry. Tltis prrcetlure chill cwtivve through [he priofity of debtors
shoud there be suRcient rcfwd doe du debtor.
E Yeu desiro m PattidPate, A Nemmmdnm of Uadesxtavd'm8 wd Apvrwwt. NC Local Govamcene Deb[
Setoff Clearwg6ouce Penguin is wclmed fm yow execution (Addwdum AJ. TM Agrewvm[ includes a
participetien fain We[ regWres the dnignariw of a Local Deb[ Setoff CMId1n0[Of and a Local Debt Semfr
anuct (We ae+na s1W£ avemba maY serve in boW roles). Pleaee rotum w otlgmal exxukd copy of she
Agtv.~nt., Should you choose mhave this approved by YOmbaard mcooncil, pleuaf dwciosedaeample
rcaolu[iw that could be w~ f« adopfiw by yow Bernd of Cowry Co®issiovera a yow Ciry CouwH
(AddeMum E).
NGCC, NCLM. aM Five Stm Computing, ]vc. will be ewducuvE two o-aivivg mmivms fm pmticipatlng
mamba eoantiu mN cidee. Thine ameioaaa em achMWeA (m Nwemkx 2"/, m be MW at dry of }GCkory
C avcii Chambvc, )6 N. @ntv 9vee4 and Novembv 29, mbe heal a[ City of Wilson Cowcil Clmmbers. 112.
N. GoWbmo Street. Hmh eessiow will be8in az 1 P.m wIW m oveadew of the program and its ]egil
rttlviremev4, m be followed by technical uilning regerdivg data collauw cad tram®esiw paxudums, m
wwlude by 4:00 p.m Due m apace crosvWnm, plmse send vo mine Wan Wtce mpmsemativea pa cowry a
city am notiry the NCACC by email ffohn.W[dubmat®ncaccnal Syow cowry plw.s m anmd m dm
NCLM by calling iom Medlw at 919.]13.29W, if yowciryplaw rcenad.
The Asmcutioo and tlwl.cague arc Pkeacd[o Pmvida Wie new aervicemihe'u local SOVeansevt Parnm. We
believe it will prove useful m e new veWOtl of debt wlltttiw, WWOUgb this is no simple mmtec. II you bane
wy questions, plessecwmcc
NCACC:
• Ioho Fd WWtehumt (program implemevUdon).919.]15.2893:
• Rebewa Troutmw (taimiml aeeiatmce);919.]15.2893;
• lien Blackbmv (legal azaistauw 9l9.]15.2g93.
NCLM:
• Tom Nledlm(program implemenmdon), 919.]152906;
• Lae Mwdell (vcbdcal aealsmuce), 919.115.3933;
• Andy ROmanet (lapel asaiahnce), 919.935.3935
DRAFT
Aaawamnn
Memorandum of IIndeastanding and Agreement
NC Laval Government Debt Setoff Clearinghouse Program
Tlda agreement is enteretl into tbis day of ,2001 by wtl betwxn Ne
C'CIAIIvIANT AGBNCY") wd the NoM Carolina ]vague of
Mwicipaliaea wd [M1e North Carolina Associadw of Cowty Commissioners azdng as [he North
CamEna IucW Gavemme~rc Dcbt Setoff Cleeanghouee ("(:LEARINOHOUSE")
RECITALS
WHEREAS, the Setoff Deb[ Caaediw Act, C'ACT`9, ArtiGa 1 of Gap[m IDSA of the
North CemRna OenerW 5[etnme, vrthorized the NorN CamEva Department of Revenue
('DEPARTIvfENT"). and dvimant agencies ro ceoperme in identifying debmm who awe
Duey to dre Stale orto local government wd who gnaRfy for Stam income tax refwda;
and established pmcWurcs far earring off against any refund the e¢m of wy deb[ owed to
the 9m[e ar Imal govemmwL eM
WHEREAS, pmsuvn[ ro NCGg lOSA-3, CLEARCVGHOUSE has registered wiN
DEPARTMENT m submit delinquent debts w beh:df of a local agency wd has Hereby
become authorized m submit delinquent debts on behalf of a IocW agency ender the ACT;
and
WHEREAS, CLAIMANT AGENCY is a local agency aathodmd to mbmi[ a tlebt owed
to it pursuant to rise ACT; and
WHEREAS, CI.AEdANI AGENCY desvee m cuter ivm tNa agreement with
CLEARINGHOUSE in order m pararipam wrier IEe Sem[f Debt Collection Ac[ to
mcmxse tM1e collection rate o£ delinquem debts owed m CLARvL1Nf AGENCY; vnd
MffREAS, CLEARINGHOUSE hu agreed m submit delinquent debts w behalf of
CLAMANT AGENCY.
NOW TILP.REPORE, i¢ ce¢aidcratio¢ of the mutual covenwn and agreements, toms and
covWdons cwsaived herein. CLANdANT AGENCY wtl CLEARINGHOUSE mutually agree as
follows:
L TERMICERl11NAIION
Tlda mcmorwdum of wdcmmMing and agreemrnt shall remain and condnue in fWl
fume end effect from year to year unless modified m terminated iv wddng byeither party
upon 90 days written entice to Nc oMer party. Upon mrmination of this agrecmw[ all
ms doe and owing from either parry m the other shall remain a lawful obligation of the
party end bedue and payable. CLEARINGHOUSH will erase ell claimant dada fifes from
its debt semff cysrem upon tmvinadw.
®RlaFi'
ON'CLAIMANT AGENCY
A. CLAIIv1ANT AGENCY hereby designates, appoint, and auNOrizes
CLHARINGHOUSE to process delivqumt debts [o h submitted to Depazmtevt.
'DELN'QI1ENf DENT' is defined m mean a sum that is az Icaet $$0 owed m v
clvmam agency that has accrued Nrough contmcq submgvdon, tort, operation eI law,
m any other legal theory regaNlesa of whether there is m outstanding jndgmenEfor
the sum. To become a dchnqucvt debt a period of td days must have elapsed
bttwem the time CLAMANT AGENCY declares Ne debt delinquent and Nc dare
Ne delinquent debt is subminetlto CLEARWGHOllSE fac mllecbon.
B. C[AIMANT AGENCY shall comply with Ne provisiorm o[ Ne ACf prior to Ne
submission of a debt to CLEAAA'GHOU$E for ae[otf end shall provitle
CLEARINGHOUSE dk dare of compliance wiN it debt submission file.
C. CIAIMANT AGENCY shall, upon execution of this agrmmem file a'partiapatlon
form' with CLEARINGHOUSE desigvadng a deb[ setoff coerctinntor end a debt
setoff muter. The debt setoff cooNinator shill be the desipm[ed local goverrm~evt
employee aethoriud to receive notlcee and covwuoicnden Ram
CLEARINGHOUSE to in re Nes the requirement of tlLe agreement and Ne
regwremmt o[ Ne Ac[ laze met The debt setoff ceordinnmr aball supply
CLEARINGHOUSE with any and all information that in the opinion of
CLEARINGHOUSE is necessary for the proem implementation of [his agreement.
The debt setoff oonmct will rcedva all rePonals Rem dab[on.
D. CLAIMANT AGENCY sMll use en ASCH Pile specified by CLEARINGHOUSE to
prepare "debt filei' and adjustments m deb[ files that CLAIMANT AGENCY
ecrdfiee m CLEARINGHOUSE ere owed m CI.ALYiAN'C AGINCY and thaz
CLAIIvIANT AGENCY desires to have CLEARINGHOUSE submit to
DEPARTMEN'[ for siwff as shown on Ne attached "Pile Layout for Submission of
Debt fivm CIAMANp AGENCY m CLF,ARWGHOU$E" If, in Nc opivion of
CLEARINGHOUSE, changes ro Ne file formvt ore necnsary b carry out Nis
pmgarn, CLEARINGHOUSE shall fimely notlfy the CIAAdANT AGENCY. The
CIAAdANl' AGENCY covmmts mtl agrees Naz it shall immWiatcly wplement
any chmges requireA by CLEARINGHOUSE. Dnta file swcture will mirror
requhemcat of DEPARTMENT ben may include other fidda such as date of debt
ancelladon. CLEARINGHOUSE will orgeNu capability of lase and tlme a[amping
debt Fa priority sitting.
H, CLAMANT AGHNCY shall transmit a dobt Ne to GLEARINGHODSE iv a meNod
and former acceptable to CLEARINGHOUSE. GLAIMAN'C AGENCY may choose
c of three methods for daze tsenemiasien: (1) custvmizad software application
pmvlded by CLEARINGHOUSH; ('L) file tranatat protocol; end (3) hardmpy
documents (haNcopy will require payment of cost of data entry auvmca).
F. CLAMANT AGENCY shall comply wiN the nonce and hearing pmcWUtea ec[forth
N G.S, lOSA-$ pmr to the submission of a debt file m CLEARA'GHOllSE. Debt
~~AFT _
files must be received on or before Friday nt S:OD p.m. in order m be included in Nc
following wcek's submissiom by CLEARINGHOUSE m DEPARTMENT'.
G. CIAIMANT AGENCY shall, sfter a deb[ file has been aubmiaed m
CLEARENGHOUSE, advise CLEARINGHOUSE of any debtor rcpeymrnt or
protests and inevuctions m delete m reduce a delinquent deb[ by submitting a vew
debt file by clove of business on the day the repayment or protest ~tl insbucnans m
delete mreduce a delmqurnt debt is received.
II[. REPRF.BENTATIONS AND OBLIGATIONS OF CLEARINGHOUSE
A CLEARWGHGUS6 shall, upon receipt of GIAIMANT AGENCY'S debt file
compile the information and submit the data to the DEPARTMENT on Monday of
each week.
B. CLEARINGHOUSE shall remit to Ne CIAIIVLWT AGENCY funds received from
DEPARTMENT within a aevnable time from the dose of moelpt from
DEPARTMENL. ThmeaRer, CLEARINGHOUSE ahaU-provide tlrc CT.ATMANT
AGENCY an accounting of funds collated which will ivdode the name of the
debtor. Ne debtor's social accusity nmvber, and Ne mvwnt of Me debt setoff as
shown an Na armched "Fla Layout for Svbmiaeion of Debm from CLAIMANT
AGENCY ro CLEARE~GHOUSE"
C. fTF.ARWGHOUSE will provide CLAIMANT AGENCY an entity version of the
application software aysrem, which will allow CLAIMANT AGENCY m do its own
w-house data envy for transfer to CLEARINGHOUSE. CLEARINGHOUSH will
provide five upgatlea of Ne applicadon sofiwatt pedoNCelly, ar needW. The mdry
vuaion of Ne npplicetion system will provide bath a comprehensive oNirte help
system and a written Irssmlla[ioNSet-up useri guide. A Pendum class computer wiN
Windows 95 m above is required by CIJ.NdAM AGENCY using Ne appGCetion
software system.
D. CLEARINGHOUSE will provide a liceneetl copy of PKWARE'S t'KZZIP to
CLAIMANT AGENCY. This softwve provides for compression antl encgption for
the aaority of the data to be ernt ro CLEARNGHOUS2 CLEARINGHOUSE will
also cotnpmea and encrypt Ne tla[a using PICLIP be[ore resuming We data m
C1.AUAANT AGENCY.
E. CLEARINGHOUSE will provide a roll free telephom number for use by
CLAENANT AGINCY to receive tecMical avpport and p[ovide ivfmmavon on [he
use of sofnvam applicetiona and the processing of debm far submission to
DEPARTMENT. TcchniW anppon and information shall be available from 8:00
a.m, until 5:00 p.m. EST, Montlay through Adday, excloding holidays. Voice mail
end o-mail eccees shall also be provided ere a pan of the aupportlirSOrmatlon response
system.
F. CLEARWGHOUSE will provide, at no cost m CLAMANT AGENCY, technical
support to CLAEdANT AGENCY, including sta visim when advisable or
appropriate CLEARNGHOUSE will provide afirs[-level of support by telephone m
AdMudumA- 3
I?RAFT - '°
attempt m diegpose Ne problems. However, i! first-level support is unsocaesful, an
ovsl[evisia will be n gyn. wiNin faro (6) business days.
O CLEARINGHOUSE will provide, az no cost m CLAIIv]ANT AGENCY, a [rairdng
m of one to two days each year for CLADlANT AGENCY'S scoff on the uu
of the debt setoff application system.
[V. UNDERSTANDING OF PARTIES
A. If Q.AIINANf AGENCY is due a refund of more Nat $SO tluEam, DEPARTMENT
seas the tax refund off in Ne amowt of the delinquent tlebt plus ire collecfiov
ssistavice fees. If DEPARTMENT ie able m collect only pert of a debt Nrougb
etoff. Ne collectlon assiatmce foe has prioriry aver Ne remainder of the debt.
B. DEPARTMFaYC has priority Duce all oNm claimant agrnaes whenever it ie
compering agency for a rotund State agencies have priority over ]seal agencies.
4Vhm multiple cHima among local agencies are aubmiVed fat setoff [a
CLEAREGHOUSE, Ne claims have priority based on the date end time each local
ageroy requested CLEARINGHOUSE m mbmit debts m its behalf. Tae dwe and
time of submission of Ne debt file shell conedtute the date and tlrne m csmbliah Nc
prieriry. CLEARINOHOU$E shall use Ne submission recap[ date end time of
origirml file for pcieriry date end fime of apeci8c debt Any changes m specific
debt-i.e. partial payments [o, interest accrued ro, peviltlee--wlll not change date
Any 'Mew" delinquent debt for same CIAIh1ANT AGENCY will have a w
aubmiasivn date and Gmq including new debts for a previvualy mbmided debmc ce
C. CLBARINGHOU58 shall not accept a debt file that is not prepared as specified by
CLEARINGHOUSE m wM1ere a period of 60 days M1az nM elapsed between Ne time
the CLAIMANT AGENCY declares Ne debt delinquent and she date Ne delinquent
debt is aubmi[tcdm CLFARWOHOU$E far collectlm. CLEARINGHOUSE agrees
to submit delinquent debts w Depar[mrnq provided however Ne CLAIMANT
AGENCY is solely responsible inr eomplyivg wIN Ne ACT, apedEeally including
ehenaiw and hearingprovivms and other requirements of Ne azt
D. The CLAIMANT AGENCY achvowledgea Nat C[AIDdANT AGENCY is
responsible far the notice and hearing requirements of Ne ACT. CIAD.fANT
AGENCY aHUms to CLEARINGHOUSE Nat it wlll cmnply wiN Ne ACt',
specifically including lM1e notiw and heatlng provisions mluired by the ACT prior m
the submission of a tlWinqum[ tlebt b CLEARINGHOUSE fox aetoR.
E. SuccesafW in[ereepdm fwds will he disbursed tM1mugh Capital Mmagavevt of Ne
Carolinas (Capital Management), the agency that oversew admhdetredm of the
NrnN Carolina-Oapiml Mmagemm[ Trust CIAEVIANT AGENCY shall have m
writ wiN Capital Management prior to [M1e submission of a delinquent debt m
CLEARINGHOUSE and shall retain said account for ae long ae tNe agreement shall
be in full faros and effect
AAAnndom P- G
V. CONIl'ENSATION ~5'®¢}~p.
A_ CLAIMANT AGENCY xhall make payment ro CIFMINGHOUSE of $IS dollars
for evch refund Net is successfully intemeptetl. "SUCCESSFIJl ETTHRCERTfON'
is defined [o mean Ne DEPARTMENT marched all m a pardon of a dab[ submitted
by CLEARINGHOUSE against a $mre mx reund for interception and payment
towuda a delingoen[ deb[ owed m CLAMANT AOINCY.
B. CLAMANT AGENCY, by Ne execution of We agreement, euNo^rP
GLEARLYGHDD$E m retain $15 dollar far euh successful inmmeplion from any
soma due CLAMMNT AGENCY and m reduce the amoum of a delinquent debt paid
m CLAIMANT AOHNCY accordivglY. If CLANdANT AGENCY snbmitmd
multlple debts undo Ne some delinquent tlebtor Home and social security number on
Ne xame date Ne endry will only he charged one $l5 fee for Nat svccessfW
inanceptlov.
C. CIAMAN'f AGENCY may combine individual debts of at least $50 eacb by
delNgnw[ debar v ®d socal security number fm snbmlaalon m
CLEARINGHOUSE, Debts less than $50 carrot be combinW to meet Ne $50
dsreshold
D. Edefi~ submitted delinquent debm may be adjusted upwards for interest, fees etc.,
and will retain Neir anginal pricdty mdm, but not a larernew delinquent debt, even R
from Ne same debtor. New debts will be date ehmpetl by CLEARINGHOUSE with
the la[er submissien date and be subjx[ to an atltlidonal $li fee for a successful
interception.
E. Iv Ne event of paniel payment of a delinquent deb[, Ne CLAMeW'I AGENCY may
condone m snbnd[ [he balanm of Ne deb[, if $50 m mme, u a pan of snbscquevt
data files. $l5 sball be due CLEARINGHOUSE for a successful intereepdon of a c
refund Na_svbsegvcnt year.
P. PURSUANT TO THH ACT, CLAMANT AGENCY CANNOT CHARGE THE
DAETOR FOR THE $IS MATCH FEE AND IS RFQUIRBD TO REDDCB THE
DEBT HY THEENTIl2E AMOUNT R~t'tTHINf.D.
VI.
CLAIMANT AGENCY fully endersmnds mid wmmn6 m CLEARINGHOUSE Nat by
submission of uv delinquent debt submitted m CLEARINGHOUSE fa sttoff
CIAMANT AGINCY hu complied with all of Ne provisions of Ne ACT and Nis
agreemem. The CLAIMANT AGENCY shell Iwld CLEARINGHOUSE hu and
harmless atW shall indemrdfy CLEARINGHOUSH against any and all damages, claims.
of acdon, injuries, acdons, liability, m proceedings ansing (mm Ne failure of
CLAIMANT AGENCY to eo pwiorm. CIAIMANT AGENCY shall be responsible (or
the repayment of any sums received by i4 inclutling in2resq penalfies antl court corm, to
a debtor in Ne event a court of competentjmiadicdon mlea Naz said repayment is due to
adebmrm debmm.
AtlOCMwr,A- 5
~~~~T -
VD. NOTICE
Any notice tegwad m be ®ven wrier this Agreement shall be sevt by certified or
mgist¢cd mail portage prepaid to: (auNorized vtfiuaD
(enwtymiry) (eameaa); wa
m: NCIM, P. O. Box 3069, Raleigh, NC DfiP2-3069 wd NCA(x, P. O. Box 1488,
Raleigh, NC 29602-148%, in the case of CLEARE9GHOSISE.
VID. ASSIGNMENT
TTis Agreement is vot assignable by citb¢party.
IK CONFIDENTIAL INFORMATION
U the comae of performance of this Ap«mmt, the panes may fnd it necessary to
disclose to the other Party certain confidwSN ivf¢mafiov ("Confidential Information").
Confldenti al In tom1811on includE9, lmt 18 vOt IItNNd t0, InfOlnlatiw rBladng t0 d1E
pmfies' employees, trade secrets, wstomem, vendors, fnmcea, op¢ations, products, antl
olha business ivfomiatlon. The followlvg tcvm apply to CovSdrntiel information p)
the vov-NUlosing petty shNl neat as cmifitlential wd use the acme degree of care es it
employs in the pmtcotlov of fte own slmlla coNidevllN Ivfmmafiw, but fn no evrnt lase
tlum a reeswabla degas vP care; and (il) Na non-0Isclosing party wlll only use Ne
iNVrmatiwin conrieetiov with its business deatin8s with Ne disclosing patty. and shall
diulose Information vNy m employees o[ contactors he5ng u metl to know and who
agree m be bound by the terms of Oda Ssfiw, uNess otherwise authorized in writing by
the diuloaing parry. infovvadov shall not be subject to these lama iP. (I) it is in the
pubGC domain et [he time of tliulosvre, ar enters [he public domain without breach of
tNa Agmemevq (lU i[ is (mown [o the nw-disclosivg ParIY Pri¢ tv Ihedisclasure, or I[ 1s
independently developed by fie nondisclosing pant: (iii) it is obmined by no -
ttiecloeivg pvty in good fNfh from s [Itird party not wda obligation of secrecy to the
diacloein8 Party; on (iv) it ie the sublat of a mart or govammrno agency ostler m
diulose, provided the nw-disclosing party gives prompt notlm m [he diuloaing vamY m
allow [he diselosing parry to mnreat such ostler The obligatiana set fovN in [his 9ecvon
surnve [erminatiov, rescission, vov-rerowal or expiration of [h:a Agreemrnt.
All ivfocmaziw, inclaNVg but wt Ilmimd to Ptlnmd, wdaen, oral m wmPUta-formatted
irSarmation, which CLEARINGHOUSE may gain access to during Me wane of the
performance of this Agrcemrnt shall be the pmpeM1y of CLAIMANT AGENCY, shall be
held in Ne s¢iaest conftlenw, and shall be used solely far Ne business purposes that are
the subject of Ws Agreement CLEARWGHOUSE shall mainmiv confitlendaliry of
such infovvation not only during the course of the performwu of Nis Agreement, bat
fallowing its temdnatlvn.
AAArMnm A- fi
%. MISCELLANEOUS F1 S's P^"5
w. This Agreement represents Ne full antl final untlasmvdivg of Use patties wiN respect
[o the subject matter dewribed herein and aupersedca any and all prior agreemenu or
undersundings, written nr W, cxpmss m implied. This Agreement may be vwdiLed
or amended Doty by a written statement eignedby boN Pardee.
B. The laws of the Sta¢ of North Carolina shall govern the [wms and aovditions of W e
Agmement. Should any dispute arise between Ne ponies concerning any matter
under Nis Agreemrn4 such Nsputes shall be submitted to binding azbitradov before
the American Arbittatlov Association, iv accortlavice wiN applicable rules.
C. CLAIMANT AGENCY shall rntuin[o vo oMer convect fov similar eervicae wlN any
o[M1er endty so long as Nia Agreementremaivs in efr«t
IN WITNESS WHEReOA, Ne paNes hc¢to have caused this Agreement to be ezewad on Ne
day and date first above written, all by auNOrity of Nev respective govaming boNes.
NORTH CAROLINA LOCAL GOVERNMEbT
DEBT
(City/CowNCovvty) SETOFF CLEARINGHOUSE
By By:
(AUtM1Orized Official) S. E1Rs Hare, Executive Dirxtor
NC Leagneaf MimicipeliBa
ATTEST:
(Clash) By:
C. Ronald Aycock, Executive Daector
(SEAL) NC Aasociation of County Commissioners
AEdmAnm A ~ "I