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Memo Resolution First Check Background Check Services AgreementAgenda No. 6 CITY COUNCIL MEMORANDUM /RESOLUTION City Council Meeting: January 12, 2010 Department: Subject: BACKGROUND Human Resources First Check Background Check Services Agreement Since 2006, outsourcing background services for pre - employment background checks has been researched. We have considered five different agencies over the past 3 years. Three were considered in 2009. We selected and budgeted for background services from First Check. They work with the North Texas Municipal Alliance, they are based in Southlake Texas and have been doing background checks since 1999. They offer the most competitive pricing and they are Fair Credit Reporting Act compliant. The cost of these services was approved in the FY0910 Budget. These services are at will. We may stop using their services at any time or continue with them as long as we are happy with their services. FISCAL IMPACT Estimated budgeted cost $2,750. RECOMMENDATION Recommend approval of membership application for First Check Background services. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ: That the above stated City of Schertz City Council recommends approval of membership application for First Check Background services. PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this 12th day of January 2010, at which meeting a quorum was present, held in accordance with the provisions of V.T.C.A., Government Code, §551.001 et seq. aA,10 D al Baldwin; Mayor A ST: w � " Brenda Dennis, City Secretary COPY 6 First Check Applicant Screening . Membership Application Pd Box 92033 Southlake TX 70092 Fir 888- 588 -2525 1 817 - 410 -8383 - Voice Date of Application: January 12. 2010 888- 213 -9341 1 817- 887 -1407 - Fax Important: All information must be completed in its entlLeW. Please print clearly and legibly to ensure accurate and timely processing. Company Name: City of Schertz Years in Business 5rs mos. Type of Ownership (indicate one): N Government ❑ Sole Owner ❑ Nonprofit ❑ corporation ❑ LLC Do you have any other company name(s) or dba? ❑ Yes ❑ No If Yes, please list; Contact Emil[ Address: ddvkes(ci?schertz.com Website www.schertz.com Physical street Address CtLo P.O. box numbers, please): 1400 Schertz Parkway — city: Schertz state: TX zip_ 78154 How Long? yrs mos. Main Phone--( 210 ) 619 -1150 Fax:( 210 ) 619 -1159 Is this a residential address? ❑ Yes N No Previous Address: Igor[ State: ZIP: Do you own or lease the building in which you are located? (please check one) Not Applicable Not Applicable sole owner or (Please tell us about your company.) Hour Long? yrs mos. ❑ Own ❑ Lease the section Type of Business: City Goyemment Do you need a Purchase Order? 12 Yes ❑ No PO# Do you have an Investigation License? ❑ Yes X No If Yes, please provide a copy with this application. Estimated # of screening Reports you will access monthly: Reports for 2 and up to 15 new hires estimated per month How will you access the Credit Reports? N Personal Computer/ Internet ❑ Fax In Application Does your company qualify for sales tax exemptions? JR Yes ❑ No If Yes, please provide proof_ Permissible • • - ' J i • • (Applicatitan Wlil not be processed unless this infoimatlon is provided.) Please describe the specific pum,ose for which First Check reports will be used. (What will you do with the information obtained ?) This section MUST be completed. For Pre - Employment Background Screenings, Subject to our document retention- policy and the Texas Public Records Information Act contact Name: Donna Dykes Human Resources Director Address: City of Schertz, 1400 Schertz Parkway Cam: Schertz State_ Not Applicable Phone: ( 210 ) 619-1152 Fax:( 210)_619-1159 Texas ZIP: 78154 (Please provide the name of the bank which maintains your business checking account) I have read and understand the ' PCRA Requirements" notice and "Access Security Requirements" and will take all reasonable measures to enforce them within my facility. I certify that I will use the First Chem product information for no other purpose other than what is stated in the Permissible Purpose /Appropriate Use section on this application and for the type of business listed on this application. I will not sell the report to any consumer directly or indirectly_ I understand that if my system is used improperly by company personnel, or if my access codes are made available to any unauthorized personnel due to carelessness on the part of any employee of my company. I may be held responsible for financial losses, fees, or monetary charges that may be incurred and that my access privilege may be terminated. I (our company) also agree to pay our bill in full each month according to First Check's payment terms which are Net 311. certify that I have read the above statements and all information provided is accurate Citv of Schertz. Texas Not A ,) licable ompany Name DBA Name aP e) January 12, 2010 Authorrzed Signature Date Don Taylor City Manager ype or nn ame of u onze igner TW If you have questions or need additional information, please call 1- 888 - 588 -2525 ext 215 Revised 02M7 JB Manning tee, Gent Certification of Use for Back round Reports The Undersigned User and First Check hereby agree to the following: User has access to consumer reports, defined as ANY report to determine an. individual's eligibility, as. outlined in the Fair Credit Act (FCRA), which includes employment (pre - employment, promotion and reassigning, periodic background checks), tenant screening, and use in connection with a financial transaction/extension of credit or the underwriting of insurance. All reports furnished by First Check are based upon your certification that you have a permissible purpose to obtain the report. The information contained in First Check reports was obtained in good faith from sources deemed reliable, but the completeness or accuracy is not guaranteed_ User agrees to hold First Check and its agents harmless from any error or omission contained in First Check reports. 1_ Requesting a Consumer Report and/or Investigative consumer Report for Employment Purposes. User certifies and warrants that a consumer report for employment purposes will not be requested unless: A. A. clear and conspicuous disclosure has been made in writing to the consumer before the report is obtained, in a. document that consists of the disclosure that a consumer report may be obtained for employment purposes. B- The consumer has authorized in writing the procurement of the report C. If an Investigative Consumer Report is requested, the consumer must be notified in writing not lames than three days of requesting said report. 1. A consur ear Summary of /tights must be provided in the format approved by the Federal Trade Commission- An initial copy will be provided by First Check- 2- The Consumer has the right to request the nature and scope of the investigation and the employer must respond in writing not later that five days after receiving the consumers request or from the date the investigation was first requested, whichever is the later_ 2. Requirements upon an Adverse ActionlDecision User certifies and warrants that before taking an adverse action due to the contents in whole or part of the Consumer Report, it will provide to the consumer_ A. A copy of the Consumer Report B. A copy of the Summary of Consumer Rights in the format approved by the Federal Trade Commission. An initial copy of the summary will be provided. by First Check- C- - Adverse Action Notification_ 1 _ Must be in written, oral, or electronic form_ 2. Must contain First Check's name, address and phone number_ 3_ Must advise the consumer of his/her right to obtain a free copy of the report within 60 days of the adverse action and to dispute the accuracy or completeness of the report. 4_ User acknov.,ledges that this entire procedure roust be repeated before future reports on the individual are requested_ 5_ User will hold the contents of the consumer report in strict confidence and use information for purposes outlined in the disclosure, subject to the Texas Public Information Act. 6. Failure to comply with FORA requirements can result in state or federal enforcement actions, as well as private. lawsuits_ (Section 606, 617, 621)_ In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution-(Section 619)_ CompanyN Physical Address ( include City, State, Zip) 1400 Sehertz Parkway, Seliertz, Texas 79154 Telephone Number 210- 619 -1152 Fax Number 210- 619 -115 User I Responsible Party (Printed Name Donna Dykes Job Title Human Resources Director signature Date January 12. 2010 II d—.-) FGRA Requirements (Federal Fair Credit Reporting Act Public Law 91 -508) Access Security Requirements Although the FCRA primarily regulates the operations of consumer credit reporting agencies, it also affects the user of the information_ Please read the Fair Credit Reporting Act located at httpJf ivy,.iu. ftc .govfoa /statutesffcrajumphtm_ Your signature below acknowledges your familiarity with the FCRA_ We suggest you and your employees become familiar with the following sections in particular: 604 - Permissible purpose of reports, 610 - Conditions of disclosures to consumers, 615 - Requirements of users of consumer reports, 616 - Civil liability for willful noncompliance, 617 - Civil liability for negligent noncompliance, 619 - Obtaining information under false pretenses, 620 - Unauthorized disclosures by officer or employee_ Each of these is of direct consequence to users who obtain reports on consumers. As directed by law,, credit reports may only be issued if they are to be used for extending credit, review or collection of an. account, employment purposes, underwriting insurance; or in connection with some other legitimate business transaction such as an investment, partnership, etc. It is imperative that you identify each report to be used for employment purposes when such a report is ordered_ Additional state laws may also i nx pact your usage of reports for employment purposes_ First Check strongly endorses the letter and spirit of the Federal Fair Credit Reporting Act We believe that this law and similar state laws recognize and preserve the delicate balance between the rights of the consumer and the legitimate needs of commerce. In addition to the Federal Fair Credit Reporting Act, other federal and state laws addressing such topics as computer crimes and unauthorized access to protected databases have also been enacted. As a prospective usemf consumer reports, we expect that you and your staff" will comply with all federal statutes and the statutes and regulations of the state in which you operate. Tie support consumer reporting legislation that will ensure fair and equitable treatment for all consumers and users of credit information. Regarding Access Security Requirements, we (as a reseller) have an obligation to implement policies which protect the confidential nature of credit databases and assure respect for the consumer's right to privacy_ First Check customers are required to demonstrate a "permissible purpose' for obtaining credit reports and must act responsibly when accessing consumer credit databases. It is a requirement that an First Check customers take precautions to secure any system or device used to access consumer credit information. To that end, the following requirements have been established- * Your First Check account number and any passwords must be protected in a way that this sensitive information is know only to key personnel_ Under no circumstances unauthorized persons have knowledge of your password. the information should not be posted anywhere in your facility. *Any system access soffCvare you may use, whether developed by your company or purchased from a third party vendor, must have your account number hidden or embedded so that the password is known only to the supervisory personnel. Each user of your system access software then must be assigned a unique logon password. * Your account numbers and passwords are not to be discussed by telephone to any unknown caller, even if the caller claims to be an employee. * The ability to obtain credit information should be limited to a few key personnel_ * Any terminal devices used to obtain credit information should be placed in a secure location within your facility. Access to the devices should be difficult for any unauthorized personnel. * Any devicelsystems used to access consumer reports should be turned off and locked after normal business hours, when unattended by key personnel- * hard copies and electronic files of consumer reports are to be shredded or destroyed, rendered unreadable, when no longer needed and when it is permitted to do so by applicable regulations, subject to our document retention policy and Texas Public Information Act. ' Electronic files containing consumer report data andlor information will be completely erased or rendered unreadable when no longer needed and when destruction is permitted by applicable regulations(s), subject to our document retention policy and Texas Public Information Act. "Any person who knowingly or willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined not more than $5000 or imprisoned not more than a year, or both." Federal Fair Credit Reporting Act (15USCI681q) ` Signed I? � - -- - ate January 12, 2010 Company City of Schertz Position City Manager Fir Applicant Notification j Release of Information In connection with my application for employment, I understand that investigative inquiries on my background, in accordance with the Fair Credit Reporting Act and all state and federal laws, are to be made on me, including information as to my personal character, abilities, work habits, mode of living, residency, general reputation, performance, experience, and other qualities pertinent to my qualifications for employment, including reasons for termination of past employment. I understand that prospective employer and /or First Check may make inquiries, including but not limited to my consumer credit history, education, professional licensing, and criminal history and driving history. Furthermore, I understand that prospective employer and /or First Check may request information from various federal, state and other agencies that maintain records concerning my past driving history, credit history, criminal history, military history, civil and other experiences. I understand that according to the Fair Credit Reporting Act, I am entitled to know if employment is denied because of information obtained by my perspective employer from a Consumer Reporting Agency. Upon written request, I will be informed whether an investigative consumer report was requested and will be given full information as to the nature and the scope of the investigation, as well as the name of the reporting agency or sources of information. I authorize without reservation, any party (including, but not limited to, employers, law enforcement: agencies, state agencies, institutions and private information bureaus or repositories) contacted by prospective employer and /or First Check to furnish any or all of the above mentioned information. In addition, I hereby release First Check and prospective employer from any and all liability for damages arising from the investigation and disclosure of the requested information. I further release and discharge all liability from all companies, agencies, officials, officers, employees and other persons, who, in good faith provide to prospective employer and /or First Check the above mentioned information as requested, in order to successfully complete a background investigation for my application of employment.. I will allow a photocopy of this authorization to be as valid as the original. Print Full Name: Social Security Current Address City /State /Zip Driver's License # , Prospective Employer Applicants Signature _ ** Notary Signature _ State. County *Date of Birth State Printed Commission Expires * Date of birth is being requested only for the purpose of identification in obtaining accurate retrieval of records, and will not be used for discriminatory purposes. ** only when requested 1500 Corporate Circle Ste 13 Southlake TX 76092 817.410.8383 / 888.588.2525 Fax 817.887.1467 / 888.213.9341 www.firstcheck.com support@firstcheck.com FIRST CHECK 1500 CORPORATE CIRCLE, STE 16 SOUTHLAKE, TX 76092 817410 -8383 CONFiDENTL4L TO BE OPENED BY ADDRESEE ONLY JONATHAN Q CONSUMER 123 WIN ST DALLAS, TX 75201 August 12, 20M Dear JONATHAN CONSUMER, SAMPLE CONSUMER DISCLOSURE We are writing to inform you that in evaluating your application for employment we have received the enclosed consumer report. This notification is provided because an adverse decision maybe based, in whole or part, on this report. Aae are hereby informing you of certain information pursuant to the Fair Credit Reporting Act. The report was prepared pursuant to an authorization signed by you at the time of application_ A summary of your rights as a consumer is enclosed_ If you have any questions regarding this report or believe that it may contain incorrect information, you may contact this company and they will respond to your inquiry. Their mailing address and phone number are listed below. FIRST CHECK 1500 CORPORATE CIRCLE SUITE 16 SOUTHI.AKE, TK 76092 Voice:817AI4 -8383 Fax: 917-329-9569 FIRST CHECK only provided us the consumer report and Plays no part in the decision to take any action on your employment application. FIRST CHECK is unable to provide you with specific reasons for anyemployment, related decisions to be made.. Sincerely, FIRST CHECK Enc. Consumer Report Consumer Rights Notification FIRST CHECK f'1500 CORPORATE CIRCLE STE 16 SOU'THLAKE , TX 76092 Phone 317 - 410 -8383 * Fax 817 -329 -9569 Sillnmaly of Your Rights Under the Fair Credit Reporting Act The Federal Fair Credit Reporting Act (FCRA) is designed to promote accuracy, fwmessy and privacy of information in the files of every ^consumer reporting agency" FIRST CHECK. Most CRAB are credit bureaus that gather and sell information about you - such as if you pay your bills on time or have filed bankruptcy - the creditors, employers, landlord, and other businesses. You can find the complete text of the FCRA, 15 U.S -C. § §1681- 1681u, at the Federal Trade Commissions web site (http: /Arurww.itc_gov)_ The FCRA gives you specific rights, as outlined below *. You may have additional rights under state law. You may contact a state or local consumer protection agency or a state attorney general to learn those rights. .K You must be told if information in your file has been used against you. Anyone who uses information from a CRA to take action against you - such as denying an application for credit, insurance, or employment - must tell you: and give you the name, address, and phone number of the CRA that provided the consumer report_ .e You can find out a-hat is in your file. At your request, a CRA must give you the information in your file, and a list of everyone who has requested it recently_ There is no charge for the report is a person has taken action against you because of information supplied by the CRA, if you request the report within 60 days of receiving notice of the action_ You also are entitled to one free report every twelve months upon request if you certify that (1) you are unemployed and plan to seek employment within 60 days, (2) you are on welfare, or (3) your report is inaccurate due to fraud. Othem ise, a CRA may charge you up to eight dollars. z You can dispute inaccurate information with the CRA. If you tell a CRA that your file contains inaccurate information, the CRA must investigate the items (usually within 30 days) by presenting to its information source all relevant evidence you submit; unless your dispute is frivolous. The source must review, your evidence and report its findings to the CRA. (The source also must advise national CRAB -to which it has provided the data - of any error.) The CRA must give you a written report of the investigation, and a copy of your report if the investigation results many change. If the CRA's mvestigation does not resolve the dispute, you may add a brief statement to your file. The CRA must normally include a summary of your statement in future reports. If an item is deleted or a dispute statement is filed, you may ask that anyone who has recently received your report be notified of the change. Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information from its files, usually within 30 days alter you dispute it However, the CRA is not required to remove accurate data from your fife unless it is outdated (as described below) or cannot be verified. If your dispute results in any change to your report, the CRA cannot reinsert . into your file a disputed item unless the information source verifies its accuracy and completeness_ In addition, the CRA must give you a written notice telling you it has reinserted the item The notice must include the name, address and phone number of the information source. z You can dispute inaccurate items with the source of the information. If you tell anyone - such as a creditor who reports to a CRA - that you dispute an item, they may not then report the information to a CRA without including a notice of your dispute_ In addition, once you've notified the source of the error.in. writing, it may not continue to report the information if it is, in fact, an error. z Outdated information may not be reported. In most cases,. a CRA may not report negative information that is more than seven _years old: ten years for bankruptcies. ,e� Access to your• file is limited. A CRA may provide information about you only to people with a need recognized by the FCRA- usually to consider an application with a creditor, insurer, employer,. landlord, or other business_ z Your consent is required for reports that are provided to employers, or reports that contain medical information. A CRA may not give out information about you to your employee, or prospective employer, wfhoout your written consent. A CRA may not report medical information about you to creditors, insurers; or employers tivithout your permission_ .et You may choosee to exclude your name from CRA lists for unsolicited credit and insurance offers. Creditors and insurers may use file information as the basis for sending you unsolicited: offers of credit or insurance- Such offers must include a toll -free phone number for you to call if you want your name and address removed from future lists_ If you call, you must be kept off the lists for two years. If you request, complete, and return the CRA form provided for this purpose, you must be taken off the lists indefinitely. You may seek damages from violators. If a CRA, a user or (in some cases) a provider of CRA data, violates the FCR-A, you may sue them in state or federal court. The FORA gives several different federal agencies authority to enforce the FORA: FOR QUESTIONS OR CONCERNS REGARDING. CRAB, creditors and other not listed below National banks, federal branches/agencies of Foreign banks (word 'National" or initials "N.A" appear in or after bank's name) Federal Reserve System member banks (except national banks, and federal brancliceagencies of foreign banks) Savings associations and federally chartered savings banks (word "Federal" or initials '"F. S_ B." appear in federal institution's name) Federal credit unions (words '"Federal Credit Union" appear in institution "s name) State - charged Banks that are not members of the Federal Reserve System Air_ surface, or rail common carriers regulated by forcer Civil Aeronautics Board or Interstate. Commerce Commission Activities subject to the Packers and Stockyards Act 1921 PLEASE CONTACT: Federal Trade Commission Consumer Response Center - FCRA Washington, DC 20580 * 202- 326 -3761 Office. of the Comptroller of the Currency Compliance Management, Mail Stop 6-6 Washington, DC 20219 * 800 - 613 -6743 Federal Reserve Board Division of Consumer cot. Community Affairs Washington, DC 20551 * 20'2 -452 -3643 Office of Thrift Supervision Consumer Programs Washingtcrr, DC 20552 * 800 -842 -6929 National Credit Union Administration 1775 Duke Street Alexandria, VA 22314 * 703 - 513-6360 Federal. Deposit Insurance Corporation Division of Compliance &. Consumer Affairs Washington, DC 20429 * 800 - 934 -FDIC Department of Transportation Office. of Financial Management Washington, DC 20590 * 202-366 -1306 Department of Agriculture Office of Deputy Administrator- GIPSA Washington, DC 20250 * 202 -720 -7051 FIRST CHECK 15001 CORPORATE CIRCLE STE 16 SOUTHLAXE , TX 76092 817 -410 -8383 CONFIDENTIAL TO BE OPENED BY ADDRESEE ONLY JONATHAN Q CONSUMER 123 I MIN ST DALLAS_ TX 75201 August 12, 2004 Dear JONATHAN CONSUMER SAMPLE ADVERSE ACTION NOTICE This letter is to inform you that an offer of employment will not be made at this time_ This decision w -2s based in whole or in part, on the information prodded us in a Conswner R po ?-t or I)mestigative Connmer Report - The report was prepared pursuant to an authorization signed by you at the time of application. Further at that time you received a copy of-your consumer report and a summary of your rights under the Fair Credit Reporting Act- The consumer report was used only far employment purposes and prepared for us by a consumer - reporting agency - Their mailing address and phone number are listed below. FIRST CHECK 1500 CORPORATE CIRCLE SUITE 16 SOUTHLAKE, TX 76092 Voice: 817 -410 -8383 Fax_ 817 - 329 -9569 FIRST CHECK pla3 -s no part in the decision to take any action on your employment application_ FIRST CHECK is unable to provide you with specific reason(s) for not extending an offer of employment- You may, upon providing proper identification request another free copy of the report and may dispute witli tare consumer reporting agency the completeness or accuracy of any infortnation in the report within 60 days of receipt of this notice with FIRST CHECK- Sincerely, FIF.ST CHECK EMT CHECK * 1504 CORPORATE CIRCLE STE 15 SOUTHF—AKE,TX 760E Phone 817 -410 -8383 * Fax 817$$7 -1457 PROPOSAL FOR THE CITY OF SCHERTZ REPORT TYPES: Standard Background Check Includes: • Social Security Verification • Past Address History Report • Guadalupe County Criminal Search • Statewide Texas DPS database search • Sex Offender Registry check Price $ 12.00 Other Re )orts Price Education Verification $10.00* Employment Verification $10.00* National Criminal Search $ 12.00 Federal: Criminal Search $ 9.00 MVR Report (includes State of Texas Fee) $ 12.00 Drug Screening $ Quote Employment Physicals $ Quote Social Security Verification / Address History Report $ 5.00 County Criminal Search $ 10.00* Professional License Verification $10.00* Nationwide Wants and Warrants $ 15.00 Global Report (Terrorist Databases) $ 5.00 Reference Check $ 11.00 Credit Report (Experian) $ 11.00 " Note — all pricing excludes fees that may be incurred such as court access fees, school transcript fees, state fees, county fees, employment verification fees such as automated 900 phone numbers, or any applicable taxes. Our staff will notify you of any additional fees related to your order. The above packages are simply suggestions and are typical of the reports we provide to other municipalities. We can customize any report package you might need. Estimated total new hires for 2009 -2010 50. 50 times $12.00 per check, $600. plus? For each additional county check estimate $10.00 plus court access fees, state fees, county fees. We have 3 counties in Schertz. If additional 20.00 for 2 additional county checks per hires, National Criminal Search is $12.00; Federal Criminal Search is $9.00. For the bundled check for $12.00 plus 2 additional counties plus National Criminal Check and Federal Criminal check, estimate $55.00 per check. Times 50 hires: Estimate $2,750. Payments are due in 30 days after the invoice date. (Net 30) First Check will bill the City at the end of each month. This agreement is an "at will" agreement, meaning that the City can stop using First Check services at any time. There is no end date on this agreement. Signecl-- DateO / O Company City of Schertz Position Ci Manager-