HomeMy WebLinkAboutPR 11659: MUNICIPAL COURT FINESI N T E R
OFFICE
MEMO
To:
From:
Subject:
Date:
Mayor, City Council & City Manager
Mark T. Sokolow, City Attorney ~ ~
P. R. No. 11659 - February 19, 2002 Council Meeting
February 15, 2002
Attached is Proposed Resolutionl1659 awarding an agreement for thc
collection of fines for Municipal Court. If the City Council does not award the
agreement to the Law Firm of Linegbarger, Goggan, Blair, Pena & Sampson, L.L.P.,
the Resolution will need to be amended as to renew the agreement with Municipal
Services Bureau for either six (6) months or twelve (12) months.
MTS/ts
Attachment
CC:
Jan Stroder, Acting City Secretary
Becky Underhill, Director of Finance
Jeri Mingo, Municipal Court Clerk
Municipal Services Bureau
5912 Balcones Drive
Austin, Texas 78731
Clayton Mayfield
LINEBARGER, GOGGAN, BLAIR, PENA & SAMPSON, L.L.P.
1148 Park Street
Beaumont TX 77701
z.prl1659.memo
P. R. No. 11659
02/15/2002 - ts
RESOLUTION NO..
A RESOLUTION AWARDING AN AGREEMENT
FOR THE COLLECTION OF FINES FOR
MUNICIPAL COURT
WHEREAS, thc City Council deems it in thc best interests of the citizens to
authorize the City Manager to execute an agreement with thc firm of Linebargcr,
Goggan, Blair, Pcna & Sampson, L. L. P., for the collection of fines for thc Municipal
Court of thc City of Port Arthur.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1. That thc facts and opinions in the preamble are true and correct.
Section 2. That the City Council authorizes the City Manager to execute an
agreement with the firm of Linebarger, Goggan, Blair, Pena & Sampson, L. L. P. for
thc collection of fines for thc Municipal Court of thc City of Port Arthur, in
substantially thc same form as attached as Exhibit "A"
Section 3. That a copy of thc caption of this Resolution be spread upon the
Minutes of the City Council.
READ, ADOPTED AND APPROVED on this day of
A.D., 2002, at a Regular Meeting of thc City Council oftbe City of Port Arthur, Texas,
by thc following vote:
z.prl1659
AYES:
NOES:
OSCAR ORTIZ, MAYOR
ATTEST:
JAN STRODER, ACTING CITY SECRETARY
APPROVED AS TO FORM:
MARK T. SOKOLOW, CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
STEVE FITZGIBBONS, CITY MANAGER
z, prl1659
EXHIBIT "A"
CONTRACT FOR COURT FEES AND FINEg COLLECTION SER¥ICEg
STATE OF TEXAS
COUNTIES OF JEFFERSON AND ORANGE
THIS CONTKACT is made and entered into by and between the CITY OF PORT
ARTHUR, acting herein by and through its governing body, which is located in Jefferson
and Orange County, Texas, and THE LAW FIRM OF LINEBARGER, GOGGAN,
BLAIR, PENA & SAIVlPSON, LLP.
The City of Port Arthur agrees to employ and does hereby employ the Law Firm of
l.lnebarger, Goggan, Blair, Pena & Sampson, L.L.P., experienced attorneys as delineated in
their brochure attached as Exhibit "A', to enforce the collection of delinquent Court fees and
fines pursuant to the terms and conditions described in this contract. This contract can only
be amended if done so in writing and signed by all parties. Furthermore, this contract cannot
be transferred or assigned by either party without the written consent of ail parties.
II.
Pursuant to Ordinance No. 01-23, approved on July 24, 2001, a copy of which is
attached as Exhibit "B", the City of Port Arthur has authorized a "collection fee" of thirty
(30%) percent.
IlL
Unless, directed otherwise by the Municipai Court Judge, the Municipal Court Clerk
will refer all accounts receivable, except forfeited bonds that are more than sixty (60) days
past due, to the Law Finn of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P., as to collect
fines.
IV.
The Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. shall indemnify
and hold the City of Port Arthur harmless from and against all liabilities, losses, and/or costs
arising from claims for damages, or suits for losses or damages, including reasonable costs and
attorney's fees, which may arise as a result of the Law Firm of Linebarger, Goggan, Blair,
Pena & Sampson, L.L.P.'s performance of the services described in this contract. The
indemnity provision of this contract shall have no application to any claim or demand which
results from the sole negligence or fault of the City of Port Arthur, its officers, agents,
employees, or contractors. And furthermore, in the event of joint and/or shared negligence
or fault of the City of Port Arthur and the Law Firm of Linebarger, Goggan, Blair, Pena &
Sampson, L.L.P., responsibility and indemnity, if any, shall be apportioned in accordance
with Texas law and without waiving any defenses of either party. The provisions of this
paragraph are intended for the sole benefit of the parties hereto and are not intended to create
or grant any right, contractual or otherwise, to any other persons or entities.
Except for the thirty (30) day winding down period with Municipal Services Bureau as
denoted in their contract attached hereto in Exhibit "C', the City of Port Arthur agrees to
pay to the Law Finn of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. on all accounts
referred to the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L. LP. for
collection, a thirty-percent (30%) fee of the monies collected, in accordance with Article
103.0031 of the Texas Code of Criminal Procedure (Senate Bill 1778), as compensation for
legal and collection services provided pursuant to this contract. The City of Port Arthur shall
pay over said funds on a monthly basis by check or wire transfer. In the event that an
account is not covered by such statute, the City of Port Arthur agrees to pay the Law Finn of
Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. as compensation thirty (30%) percent of
the total amount of collections on all such accounts referred to Law Firm of Linebarger,
Goggan, Blair, Pena & Sampson, L.L.P. for collections. The City of Port Arthur agrees to
pay the collection fee payable under this contract no later than the 30~h day following the end
of the calendar month within which the collection fee is paid to the City of Port Arthur.
VI.
The Law Finn of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. will actively
seek to contact each Defendant by a letter within thirty (30) days of referral of the case and
thereafter will actively seek to phone each Defendant.
All payments of the overdue fines shall be made to the Municipal Court Clerk and
thereafter the Clerk will prorate the monies received by the Cky of Port Arthur to the State
comptroller, the Cky of Port Arthur, and to the Law Finn of Linebarger, Goggan, Blair,
Pena & Sampson, L.L.P.. Also, if the Law Firm of Linebarger, Goggan, Blair, Pena &
Sampson, L.L.P. receives payments directly, they will deduct the collection fees and forward
to the City of Port Arthur the amounts due to the City of Port Arthur and the comptroller.
Thereafter, the Cky of Port Arthur will make the necessary pro-rations according to statute.
VIII.
The Municipal Court Clerk will give timely notice to the Law Finn of Linebarger,
Goggan, Blair, Pena & Sampson, L.L.P. as to whether defendants pay these fines so that the
Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. will discontinue contacting
the Defendants.
IX.
The Law Firm of !.{nebarger, Goggan, Blair, Pena & Sampson, L.L.P. will give the City of
Port Arthur monthly or such other periodic reports as requested by the City Secretary on:
a)
b)
c)
the number of letters that were sero to Port Arthur defendants;
the number of calls to Port Arthur defendants; and
such other reasonable and available information as requested by the City
Secretary to determine if the Law Firm of Linebarger, Goggan, Blair, Pena &
Sampson, LL.P. is actively contacting Port Arthur defendants and is in
compliance with the contract.
The Law Firm of Linebarger, Goggan, Blair, Pena 8: Sampson, L.L.P. will comply
with all applicable State and Federal laws as to debt collection and will hold the City of Port
Arthur harmless and indemnify the City of Port Arthur for any violations thereof that is
caused by the Law Firm of Linebarger, Goggan, Blair, Pena 8: Sampson, L.L.P.
XI.
The initial term of this contract is two (2) years, beginning March 1, 2002, and shall
thereafter continue on a month-to-month basis. The City of Port Arthur reserves the option
to extend the initial term of the contract for two (2) additional two (2) year periods, with the
contract thereafter continuing on a month-to-month basis. Either party may, without cause,
terminate this contract at the end of the initial contract term or thereafter by giving the other
party written notice of termination.
XII.
During the initial term of this contract either party shall have the right to terminate
the same prior to ks expiration; provided however, that the party giving notice shall grant the
receiving party a period of thirty (30) days, from the date of written notice, the opportunity
to attempt to cure any unsatisfactory terms, acts, omissions or conditions. Should the party
receiving notice be found not to have remedied the unsatisfactory terms, acts, ommlssions, or
conditions to the satisfaction of the party giving notice, the party giving notice, at its sole
discretion, may terminate the contract.
The effective date of any termination by the Cky of Port Arthur shall by sixty (60)
days from the date the notice of termination is received in writing by the Law Firm of
Linebarger, Goggan, Blair, Pena & Sampson, L.L.P.; said sixty (60) days period being deemed
adequate for the purpose of the Law Finn of Linebarger, Goggan, Blair, Pena & Sampson,
LL.P. in winding down its affairs wkh regards to work in progress. In the case of
termination by the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P., the
effective date of termination shall be thirty (30) clays from the ~te o~ notice o~ term~ati0n is
received.
The City of Port Arthur is entitled, but is not required, to refer additional accounts to
the Law Finn of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. after notice of
termination has been recdved by the Law Finn of Linebarger, Goggan, Blair, Pena &
Sampson, L.LP. In any event, the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson,
L.L.P. shall be entitled to payment of its fee for all amounts collected on referred accounts
during the "winding down" period. At the end of that period, all accounts shall be returned
to the City of Port Arthur by the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson,
L.L.P.
On July 27, 2001, the Cky of Port Arthur, approved Resolution No. 01-211 agreeing
to a seven (7) month contract with Municipal Services Bureau. The City of Port Arthur has
decided not to renew this contract which is attached as Exhibit "B'. The Law Finn of
Linebarger, Goggan, Blair, Pena & Sampson, L.L.P., shall coordinate the phasing out of the
contract with Municipal Services Bureau. Municipal Services Bureau will continue to receive
the collection fee for thirty (30) days on all monies paid by defendants on accounts that were
in existence at the time of termination of the Municipal Services Bureau contract.
XV.
For purposes of sending notice under the terms of this contract, all notices shall be
sent by certified United States mail, or delivered by hand or by courier, and addressed as
follows:
THE LAW FIRM OF LINEBARGAR, GOGGAN, BLAIR, PENA &
SAMPSON, L.L.P.
Attention: Clayton Mayfield
1148 Park Street
Beaumont, Texas 77701
City of Port Arthur
Attention: Municipal Court Clerk
444 4~h St.
Port Arthur, TX 77640
XVI.
The Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. shall maintain
professional liability insurance during the course of this contract in the amount of $ 500,000.
XVII.
This contract is made, and is to be interpreted, under the laws of the State of Texas.
In the event that any provision(s) of this contract shall for any reason be held invalid, illegal,
or unenforceable, the invalidity, illegalky, or unenforceability of that provision(s) shall not
affect any other provision(s) of this contract, and it shall further be construed as if the invalid,
illegal or unenforceable provision(s) had never been a part of this contract.
XVIII.
Upon termination of this contract and if the Cky of Port Arthur does not have
another vendor, the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. will
continue to receive the collection fee for an additional 120 days on all monies paid by
Defendants on accounts that were in existence at the time of the termination of this contract
that have been referred to the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson,
L.L.P.
XIX.
Upon termination of this contract and if the City of Port Arthur hires another
vendor, the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P will receive the
collection fee on all monies paid by Defendants for the next thirty (30) days regardless of
whether the Law Firm of Linebarger, Goggan, Blair, Pena & Sampson, L.L.P or the new
vendor actually contacted the Defendants.
In consideration of the terms and compensation herein stated, the Law Firm of
Linebarger, Goggan, Blair, Pena & Sampson, L.L.P. hereby accepts said employment and
undertakes performance of said contract as set-forth above.
This contract is executed on behalf of the City of Port Arthur by the presiding officer
of its governing body who is authorized to execute this instrument by Resolution heretofore
passed and duly recorded in its minutes.
This contract may be executed in any number of counterparts, and each counterpart
shall be deemed an original for all purposes. Signed facsimiles shall be binding and
enforceable.
SIGNED ON THIg the __
CITY OF PORT ARTHUR
clay of ,2002
BY:
CITY MANAGER
WITNESSED BY:
CITY SECRETARY
SIGNED ON THIS the
day of ,2002.
THE LAW FIRM OF LINEBARGER, GOGGAN, BLAIR, PENA & SAMPSON, L.L.P.
BY:
FOR THE FIRM
WITNESSED BY:
EXHIBIT "A"
Linebarger Heard Goggan Blair
Graham Peha & Sampson~ LLP
Attorneys At Law
Professional Services
We offer mm-key collection programs
and.full-service legal representation to
governmental entities.
· Comprehensive Collection Programs
Court Fees & Fines
Parking Violations
Delinquent Property Taxes
Miscellaneous Liens
Student Loans
Federal Government
Delinquencies
· Legal & Support Programs
Appraisal District
Representation
Bankruptcy Representation
Civil Trial Litigation
Complex Delinquent Tax
Litigation
Tax Sales, Seizures, & Post
Judgment Enforcement
Tax Resale Programs
Community-based Educational
Programs
Taxpayer Assistance
Property Value Appeals Services
for School Districts
Legislative Involvement
Tax Law Publications
The hallmark of our collection program is
customer service.
Registered Collection Agency
We are licensed and/or authorized to collect debts in all 50 states and U.S.
territories or commonwealths. We can also pursue collections in Caribbean nations,
Canada, and foreign countries.
2
Fees and Fines Co{lection Pro,rams
GENERAL WORK PLAN
Linebarger Heard believes that a successful collection program must be multi-faceted,
flexible and tailored to each client's specific needs.
Our collection services commence immediately following the approval of our work
plan by a client. Our goal is to maximize the collection of delinquent fees and fines.
We monitor our work plan on a continuous basis and modify it as necessary to meet
that goal.
WORK PLAN HIGHLIGHTS:
Load the client's referral
information into the collection
database.
Conduct a computerized search
through the Acollaid skip-tracing
database, using our customized
Columbia Ultimate Business
System (CUBS) collection
software, to confirm or update the
address and phone number of
defendants prior to our first
mailing. This increases the
likelihood of contacting the debtor
by mail or telephone on our very
first attempt.
Send a fu'mly worded collection
notice to all debtors which
instructs them on payment
procedures and warns that failure
to pay their delinquencies will
result in our recommendation to
our client that it use all possible
enforcement mechanisms to
collect the amounts owed.
Send a series of stronger, follow-
up letters to those individuals who
do not pay or respond as required.
Research all returned mail to
locate debtors. Using on-line and
traditional research tools, our
trained unit of researchers
identifies correct telephone
numbers and addresses to be used
to contact defendants.
Contact all accounts with valid
phone numbers personally. After
the second notice mailing, our
telephone collectors will make
repeated efforts to personally
contact defendants to secure
payment. Linebarger Heard has a
professional collection staff that
works days, nights, and weekends.
Our predictive dialer allows us to
contact thousands of defendants
each day. We always have multi-
lingual collectors available to
assist debtors with limited abilities
to communicate in English.
Maintain a detailed activity and
payment history on every account.
Apply all appropriate legal and
ethical enforcement mechanisms.
Establish a regular schedule,
approved by the client, and
provide detailed management
reports on our collection
activities.
Identify uncollectibles and return
those accounts to the client with
appropriate documentation.
Our clients can be assured that the collection strategies and techniques used by
Lincbarger Heard will be legal, etb2cal, and totally professional in manner. While
many government debts generally do not fall within the definition of "consumer debt"
as defined by the Fair Debt Collection Practices Act, our law finn adheres to the
guidelines set out by the Act, with respect to the manner in which we contact and
converse with debtors. Furthermore, all information supplied to our finn is kept
strictly confidential. Only persons directly involved in our collection program or
authorized in writing by the client have access to the fees and fines data.
A flow chart offering an overview of our collection process is shown below (see
Figure 1).
Figure 1.
COLLECTION PROCESS OVERVIEW
Client
Transfers
Data
Initial Skip Trace
Confirm Addrasses
Collection
Collection
Collection
Good Addresses J
1st Notice
Mailed
Additional
Mailings
Dialer
Campaign
Identify
Uncollectibles
& Return to Client
IBad Addresses
Forward to
Research
Account
History
Client
Reporting
4
Technology
Linebarger Heard has invested millions in advanced collection technologies to assist
our attorneys and paralegals in their daily collection efforts. Over 80 programmers
and technical personnel support our information technology collection operations.
We use the Columbia Ultimate Business System (CUBS) in tandem with our
predictive dialer to design and manage collection call programs that are tailored to
your needs. CUBS is fully integrated with our proprietary mailing, litigation, and
bankruptcy software to offer you a truly comprehensive collection program, from
basic mailings to full legal enforcement actions where appropriate.
We have customized this software to improve its efficiency in skip tracing operations.
Our customized CUBS system assures uniformity in dealing with all debtors as well
as adherence to all applicable laws.
Collection Program Features
Our collection efforts are structured to your needs. Our collection team will discuss
your particular collection goals prior to initiating any collection action on your
behalf.
Personalized work plans for
maximizing your collections.
· Customized collection letters that
get the debtor's attention.
Advanced telephone collection
software (CUBS and predictive
dialer) for managing your call
campaigns and making thousands of
collection calls.
Dedicated call center (800 number)
staffed by trained bilingual
professional collectors.
· Nationwide skip-tracinggocator
service.
Regular performance reports.
Proprietary data processing
l~chnology for managing all aspects
of your collection program.
Client Benefits
l~nebarger Heard's comprehensive collection programs and litigation services
allow you to focus on managing their government operations while maintaining
control over our collection activities. Our mission is to generate the maximum
revenue possible with the least administrative burden to you.
Benefits to Our Clients
Increase your court revenue with
no collection costs.
· Improve your courts and law
enforcement operations' efficiency.
Add the resources of a respected
national law f'u'm with hundreds of
professional collection personnel to
your staff without raising taxes or
using tax dollars.
· Reduce your backlog of
outstanding court fees & fines.
6
Proven Results
MCLENNAN COUNTY
McLennan County served as our pilot project for fees and fines collection services. Our
success on behalf of McLennan County has prompted us to launch a statewide Court Fees
and Fines Collections Program. The graph shows the total dollars collected by
Linebarger Heard on delinquent accounts referred to the firm for the 1999, 2000, and
2001 years.
$450,000-
$400,000-
$350,000.
$498.924
$250,000 -
$50,000-
$0-
In our first year of representing the County, our joint efforts increased collections by
more than 29% over the previous year's collections by the courts alone. In just over
two years we have collected over $1 million for the McLennan County J. P. Courts.
CITY OF HOUgTON
The graph below compares our actual collection results for the City of Houston with the
City's collection goals for parking and traffic violations. In the four months that we have
been collecting on behalf of the City of Houston, we have exceeded Houston's established
goals by roughly 55% in excess of the goal, resulting in an additional $1.4 million in
delinquent court fees and fines revenue for the City.
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$2,609,924
$1,500,000 -
$1,000,000
In four months, the City of Houston's revenue has increased by 55% over its
original target.
8
Summary of SB 1778
defendants'are not liable for the collection fees.
The revenue received as a result of any reduced payments
authorized by the county or city court will be pro-rated
between the state and the county/city.
Exceptional Customer Care
What Our Clients Say About Us
10
Linebarger Heard
Goggan Blair Graham
Pefia & Sampson, LLP
The law firm of Linebarger Heard
Goggan Blair Graham Pefia &
Sampson, LLP (Linebarger Heard) has ·
assembled a highly qualified group of
experienced attorneys and professional ·
collection teams whose practice is
dedicated solely to collecting
government receivables. We collect ·
hundreds of millions of dollars for our
clients each year.
Who is Linebarger
Heard?
· More than 25 years' experience in
collecting government receivables.
· Over 650 dedicated professionals,
including over 70 attorneys.
26 offices in Texas, including
Austin, Beaumont, Brownsville,
Corpus Christi, Dallas, Edinburg,
E1 Paso, Fort Worth, Houston,
Odessa, San Antonio, and Tyler.
Annually file over 45,000 lawsuits,
mail over 5,000,000 demand letters
and make thousands of collection
calls resulting in greater revenue
for our clients.
Customized collection programs
which are aggressive but fair.
Nationwide bankruptcy
representation.
Industry leader in computer
systems and software support.
Experience
Since 1976, our sole focus has been
collecting government receivables.
We currently serve over 1,650 clients:
} Cities, Counties, Schools, Special
Districts, and Appraisal Districts;
> School Property Value Appeals;
~. Department of U.S. Treasury (we
collect for all agencies except the
IRS; $50 billion in debt owed to
the United States government);
>' Current Tax Offices.
Professional Recognition
EvalUatjb*i~ 2000!
Highest Rating by
MarUndale Hubbell
One of Two Companies
Rated by Standard &
Poor's as a Tax Lien
Servicer
Accepting the 2001 U.S. Mayors' Conference - Award of Excellence are
(left to tight) Linebarger Heard Pa~ners Steve Blair & DeMettis
Sampson and Mayor Ron Kirk, C~ty of Dallas.
Equal Employment
Opportunities
Linebarger Heard is committed to
providing ownership and career
opportunities for minorities and women
within our law fawn as well as supporting
Minority and Women Business
Enterprises (MWBE). We believe it is
important that our organization be as
diversified as the governments that we
represent.
Each year our law finn spends millions of
dollars with minorities and women.
Our commitment to Affirmative Action
and the inclusion of minorities and
women in all aspects of our operations is
unparalleled by any other law firm in our
business.
11
Conclusion
Our fees and fines collection services
offer you a new opportunity for
improving collections and increasing
revenue to your public coffers.
Our law finn offers you over 25 years'
experience in collecting government
receivables, the most extensive array of
advanced collection tools in the industry,
and exceptional legal representation,
something you cannot get with a general
collection agency.
There are other important benefits to
hiring our law finn. We can offer you
legal advice and opinions. We must
adhere to the stringent ethical
requirements of the Texas State Bar. And,
defendants perceive the involvement of
our law firm as an indication that things
have gotten serious. As a result, our
collection efforts are generally more
productive.
References provided upon request.
12
WHY HIRE THE LAW FIRM OF
LINEBARGER HEARD?
Proven Collection Programs Customized
to Your Needs
Over 25 Years' Experience in Providing
Legal Services in Collecting Delinquent
Government Receivables
Professional, Dedicated Collection
Operation Using Advanced Technologies
for Skip Tracing and Debtor Contact
Exceptional Customer Service
Ability to Collect Nationwide
EXHIBIT "B"
ORDINANCE NO. O
AN ORDINANCE AMENDING
THE CODE OF
P. O. 5201
07/20/01 ts
ORDINANCES BY ADDING SECTION 30-3 AS TO
PROVIDE FOR A THIRTY PERCENT COLLECTION
FEE FOR DELINQUENT FINES, FEES, RESTITUTIONS
AND OTHER DEBTS OR COSTS (EXCEPT FOR
FORFEITED BONDS) AS AUTHORIZED BY SENATE
BILL 1728, EFFECTIVE SEPTEMBER 1, 2001.
WHEREAS, Senate Bill 1778 allows the City to enter into a contract with a
private vendor to collect fmcs, fees, restitution and other debts or costs other than
forfeited bonds ordered by a municipal court; and
WHEREAS, the contract may authorize the addition of collection fees in the
amount of 30% on each debt or account receivable that is more than sixty(60) days past
due and has been relented to the vendor for collection; and
WHEREAS, the defendant is not liable for the collection fees if the municipal
court determines that the defendant is indigent or has insufficient resources or income or
is otherwise unable to pay all or part of the underlying fines or costs; and
WHEREAS, if the private vendor collects less than the total costs, including
collection costs, the amount of costs collected otherwise required to be sent to the
comptroller and the amount to be retained by the City, are reduced by an equal
percentage in order to fully compensate the vendor, not to exceed 30%; and
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR:
geet~on 1. The £act~ anti op~n~ons in the preamble are fine and correct.
Section 2. That the Code of Ordinances, City of Port Arthur, Texas, is hereby
amended by adding a section, to be nmnbcred 30-3, which section reads as follows:
"Section 30-3. Collection Fees.
(a) A collection fee of thirty percent will be added to all Municipal Court fmcs,
fees, restitution and other debts or costs other than forfeited bonds that are
more than sixty (60) days past due.
(b) That unless directed otherwise by the Municipal Court Judge, the Municipal
Court Clerk will refer all accounts receivable, except for forfeited bonds
that are more than sixty (60) days past due, to the City's vendor who is
presently collecting the fines."
Section 3. That this being an Ordinance that requires publication, the City
Secretary shall publish the caption thereof and the Ordinance shall become effective on
September 1, 2001.
Section 4. That a copy of the caption of this Ordinance be spread upon the
Minutes of the City Council. ~ay~of ~~;~,A
READ, ADOPTED AND APPROVED on this .D.,
//
//
2001, at a Regular Meeting of the City Council of the City of Port At'ur, Text, by the
following vote: AYES: Mayor ~,~.~ /, City Council ~t~'5'? ~-~'/.~
5;r')~ ------
NOES: -'
OSCAR ORTIZ, MAYOR
ST: ~ ~
CAt~(SE35N ~9{XON, CITY SECRETARY
APPROVED AS TO FORM:
MARK T. SOKOLOW, CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
STE'~E FITZGIBB'ONS, CITY MANAGER
EXHIBIT "C"
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
WHEREAS, Municipal Services Bureau was authorized by Resolution No. 93-
141 to collect fines on behalf of the City for a fee of up to 35% of the fines collected; and
WHEREAS, Senate Bill 1778 allows the City to enter into a contract with a
private vendor to collect fines, fees, restitution and other debts or costs other than
forfeited bonds ordered by a municipal court; and
WHEREAS, the contract may authorize the addition of collection fees in the
mount of 30% on each debt or account receivable that is more than sixty(60) days past
due and has been referred to the vendor for collection; and
WHEREAS, the defendant is not liable for the collection fees if the municipal
court determines that the defendant is indigent or has insufficient resources or income or
is otherwise unable to pay all or part of the underlying fines or costs; and
WHEREAS, if the private vendor collects less than the total costs, including
collection costs, the amount of costs collected otherwise requked to be sent to the
comptroller and the amount to be retained by the City, are reduced by an equal
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percentage in order to fully compensate the vendor, not to exceed 30%; and
WHEREAS, the City desires to continue to retain Municipal Services Bureau for
collection of frees, fees, restitutions and other debts or costs other than forfeited bonds
ordered by the City's Municipal Court Judge.
NOW THEREFORE, the parties, the City of Port Arthur and Municipal Services
Bureau, agree to the following:
Section 1. The facts and opinions in the preamble are true and correct.
.Section 2. From August 1, 2001 until September 1, 2001, Municipal Code
Collection shall be paid up to 35% of the funds that it collects in accordance with the
original contract approved by Resolution No. 93-141. Effective September 1, 2001, a
collection fee of thirty percent will be added to all debts or accounts receivable that are
more than sixty (60) days past due (other than forfeited bonds); with such mount being
paid to Municipal Services Bureau according to Senate 1778 and this agreement.
Section 3. Unless directed otherwise by the Municipal Court Judge, the
Municipal Court Clerk will refer all accounts receivable that are more than sixty (60)
days past due to Municipal Services Bureau.
Section 4. Municipal Services Bureau will actively seek to contact each
defendant by a letter within thirty (30) days of referral of the case, and thereafter will
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actively seek to phone each defendant.
Section 5. All payments of the overdue debts may be made to the Municipal
Court Clerk and thereafter the Clerk will prorate the monies received by the City to the
comptroller, the City's Department of Finance, and to Municipal Services Bureau. Also,
if Municipal Services Bureau receives payments directly, they will deduct the collection
fees and forward to the City the amounts due to the City and due to the comptroller.
Thereafter, the City will make the necessary pro-rations according to statute.
Section 6. The term of this agreement shall be seven (7) months, which can be
renewed for an additional six (6) months or annually at the option of the City.
Section 7. Upon termination of this contract and if the City does not have
another vendor, Municipal Services Bureau will continue to receive the collection fee for
an additional 120 days on all monies paid by defendants on accounts that were in
existence at the time of the termination of this contract that have been referred to this
company.
Section 8. Upon termination of this contract and if the City hires another
vendor, Municipal Services Bureau will receive the collection fee on all monies paid by
defendants for the next thirty (30) days regardless of whether Municipal Services Bureau
or the new vendor actually contacted the defendants. After that time period, the new
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vendor will receive the collection fee regardless of whether the Municipal Services
Bureau or the new vendor actually contacted the defendants.
Section 9. The Municipal Court Clerk will give timely notice to Mun/cipal
Services Bureau as to whether defendants pay these fines so that Municipal Services
Bureau will discontinue contacting the defendants.
Section I0. Municipal Services Bureau will give the City monthly or such other
periodic reports as requested by the City Secretary on:
a) the number of letters that were sent to Port Arthur defendants,
b) the number of calls to Port Arthur defendants, and
c) such other reasonable and available information as requested by the City
Secretary to determine if Municipal Services Bureau is actively contacting
Port Arthur defendants and is in compliance with the contract.
Section 11. Municipal Services Bureau will comply with all applicable State and
Federal laws as to debt collection and will hold the City harmless and indemnify the City
for any violations thereof that is caused by Municipal Services Bureau.
Section 12. Municipal Services Bureau will maintain liability insurance of
$500,000.
Section 13. This agreement supercedes any agreement previously entered into
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between the City of Port Arthur and Municipal Services Bureau.
SIGNED ON THIS the __ day of
.,2001.
CITY OF PORT ARTHUR
SIGNED ON THIS the'~ ' day of
,2001.
MUNICl]
L SERVICES BUREAU
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