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2006-014 FILE REFERENCE FORM 2006-014 FILE(S) Date Initials Ratified by Ordinance No. 2006-052 02/21/06 JR S:\Our Documcnts\Ordinances\06\Municipal Services Bureau.doc ORDINANCE NO. 2006- () 11/ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH GILA CORPORATION, D.B.A. MUNICIPAL SERVICES BUREAU, FOR COLLECTION SERVICES RELATING TO THE COLLECTION OF MUNICIPAL COURT FINES IN ACCORDANCE WITH THE CODE OF CRIMINAL PROCEDURE; PROVIDING FOR RETROACTNE EFFECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Article 103.0031 of the Code of Criminal Procedure provides that the governing body of a municipality may enter into a contract with an attorney or private vendor for collection services and may also authorize the addition of collection fees in the amount of 30% on each debt or account receivable such as fines, fees, restitution and other debts and costs, not including forfeited bonds, that are more than 60 days past due and that have been referred to the pri vate vendor or attorney; and WHEREAS, by Ordinance No. 2001-295, approved by the City Council on August 21, 2001, the City Council authorized the additional 30% collection fee allowed by Article 103.0031 of the Code of Criminal Procedure on each debt or account receivable such as fines, fees, restitution, and other debts or costs, not including forfeited bonds, that are more than sixty days past due and that have been referred to a private vendor or attorney; and WHEREAS, the City has previously retained and engaged the services of Gila Corporation, d.b.a. Municipal Services Bureau (hereinafter sometimes referred to as MSB) for the Municipal Court collection services, which has demonstrated MSB's expertise of relevant issues concerning the City; and WHEREAS, City staff has reported to the City Council that there is a substantial need for the hereinabove described collection services, and that limited City staff cannot adequately perform these specialized collection services with its own personnel; and WHEREAS, the City Council hereby finds and concludes that MSB is appropriately qualified under the provisions of the law to be retained as a Municipal Court collection agency for the City; and WHEREAS, the Code of Criminal Procedure provides for payment of the 30% additional collection fee for the foregoing services and the City Council deems it in the public interest to enter into a Contract For The Collection of Municipal Court Fines with MSB for Municipal Court collection services; NOW, THEREFORE, , THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. The recitations in the preamble are true and correct, and are incorporated herewith as part of this Ordinance. SECTION 2. The City Manager is hereby authorized to execute a Contract For The Collection Of Municipal Court Fines with Gila Corporation, d.b.a. Municipal Services Bureau, relating to Municipal Court collection services as set forth above and authorized by Article S:\Our Documents\Ordinances\06\Municipal Services Bureau.doc 103.003 I of the Code of Criminal Procedure,; in substantially the form of the Contract attached hereto and incorporated herein by reference. SECTION 3. The award of this Agreement is on the basis of the demonstrated competence and qualifications of Gila Corporation, d.b.a. Municipal Services Bureau and the ability of MSB to perform the services needed by the City for a fair and reasonable price in accordance with the fees authorized by the Code of Criminal Procedure. SECTION 4. All actions taken by the City Manager, City staff and MSB to provide Municipal Court collection services which took place prior to the effective date of this Ordinance are ratified and approved. SECTION 5. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the (1# day of ~/j)/)r ,2006. ~~4rL EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY! APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY / BY: Page 2 of2 S:\Our Documents'Contracts\D6\Municipal Servicaa Bureau.doc CONTRACl' FOR THE COLLECTION OF MUNICIPAL COURT FINES THE STATE OF TEXAS ~ ~ ~ COUNTY OF DENTON THIS CONTRACT is made and entered into by and between the City of Denton, 215 E. McKinney, Denton, Texas 76201 ("ClTY"), acting herein by and through its governing body, and Gila Corporation, d.b.a Municipal Services Bureau ("FIRM"), a corporation authorized to do business in Texas. 1. EMPLOYMENT OF FIRM CITY agrees to employ and does hereby employ FIRM, as an independent contractor, and FIRM hereby agrees to enforce by suit or otherwise the collection of all delinquent wammts on cases filed in the CITY's Municipal Court, as well as any other debts, accounts receivable and other debts owing to the City (delinquent Municipal Court records) which may be collected under Section 103.0031 of the Texas Code of Criminal Procedure as requested by the City. The FIRM shall I perform the following services: A. FIRM shall perform any Municipal Court collection services authorized by the Section 103.0031 of the Texas Code of Criminal Procedure as may be requested by the City Manager or his designee. B. FIRM shall perform all these services set forth in the Task Order attached as Exhibit A and made a part of this Contract for all purposes provided; however, in the event of any conflict between the terms oftbis Contract and Exhibit A, the terms oftbis Contract shall prevail C. FIRM hereby agrees to perform the services herein with diligence and in accordance i with the highest professional standards customarily obtained for such services in the State of Texas. 2. PROVISION'OF INFORMATION CITY agrees to furnish all necessary warrants and other Municipal Court collection information to FIRM as indicated in the ExhIbit A. 3. INVESTIGATION AND ASSISTANCE FIRM agrees to conduct investigations as to the address of eaeh delinquent person where such information may be incorrect on utility bills, delinquent tax records and other sources. FIRM shall bring to the attention of the appropriate official of CITY any errors, discrepancies, or inaccuracies in the information provided on the delinquent Municipal Court fine records detected by FIRM. FIRM further agrees to provide CITY with any advice or assistance in connection with updating the Municipal Court records. CITY.sball make available to FIRM information which S:\Our Documcnta'ContractsV)6\M"unicipal Services Bureau.doc CITY may have with regard to the name, identity, and location of necessary parties in connection with each delinquent account upon request by FIRM. 4. PROCEDURES FOR COLLECTION Upon initial receipt of the delinqueni Municipal Court records by FIRM in computer readable form, FIRM agrees to initiate procedures for the collection of the full amount due from each delinquent person. Within a reasonable time frame but not more than sixty (60) days from FIRM's receipt of the delinquent Municipal Court records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to each and every delinquent person, requesting said person to remit the full amount due and owing to CITY. 5. REVIEW AND AUTHORIZATION Following transmittal of the notice of delinquency as specified hereinabove, FIRM will commence procedures in anticipation of litigation or other substantial collection action for aggressive pursuit of collection. CITY shall have absolute discretion over those accounts on which suit should be filed and shall pursue litigation itself or through contractors other than FIRM. 6. COLLECTION SERVICES FIRM agrees (I) to provide CITY collections advice and written opinions regarding collection matters upon request; (2) to respond to delinquent person inquiries and to advise CITY, in writing, or, and make any recommendations concerning installment payment agreements and settlement agreements proposed by the delinquent person. CITY shall have final determination in acceptance of all installment payments or settlement agreements within parameters established by CITY. FIRM shall have discretion to enter into installment agreements subject to CITY's prerogative of final determination and FIRM shall notify CITY of each installment agreement within one work day of the agreement. In . all demand letters and all communications with delinquent persons, FIRM shall inform and instruct the person to remit the payment to FIRM. If remittance is received by CITY, it will be transmitted in its entirety to FIRM and received for processing within three business days. Checks made payable to CITY shall be endorsed by CITY to FIRM. 7. MANAGEMENT REPORTS FIRM agrees to make delinquent collection management reports to CITY monthly and quarterly, in a format cont~in;ng information as requested by CITY's Executive Director of Finance and Municipal Court Administrator. Management reports may include, without limitation: 1. Nwnber of phone or other delinquent person contacts within first 18Cklay period; 2. First demand letters mailed; 3. Nwnber and value ofbankruptcics filed; 4. Copies of proof of claims filed in bankruptcy court; Page 2 of9 S:\Qur Documcnts'ContractsW6\Municipal Services Bureau.doc 5. Number and value of delinquent accounts not collected as a percentage of total delinquent accounts provided by CITY for collection. 6. Any other information which is indicated under "Exhibit A" or as may be required under the Contract. Within parameters established at thc initiation of the collection program, FIRM shall advise CITY of any case in which FIRM's investigation has revealed that the delinquent person cannot be found, the enforcement of a judgment cannot be accomplished, or further attempts at collection would be futile and FIRMs recommendation relative to the proper disposition of the case. In such cases, the CITY shall advise FIRM as to the appropriate disposition of the account. 8. COMPENSATION A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees that FIRM may collect a collection fee of thirty percent (30"10) of the total amount of all delinquent amounts, as authorized by Section 103.0031(b) of the Code of Criminal Procedure. All compensation set forth above shall become the property of CITY at the time payment of the delinquent fines or other amounts received by FIRM. Said collection fee will only be paid to FIRM after it has been received from delinquent person as an additional amount added to the amount of unpaid fine or other debt owed. FIRM shall not be entitled to the aforesaid thirty percent (30 %) unless and until FIRM has taken some action in connection with recovering delinquent amounts. The transmittal of a notice of delinquency shall constitute sufficient action in order to entitle FIRM to the fee aforesaid In no event shall FIRM be entitled to any fee unless and until CITY actually receives the delinquent fines, other amounts or court costs from FIRM. In no event shall FIRM be entitled to any fee unless said fee is collected by FIRM during the term of this Contract or fee is collected by CITY on account(s) upon which FIRM is attorney of record at the time of judgment. FIRM shall pay said fines, other amounts or court costs to CITY by check monthly. B. The compensation set forth in this paragraph of this Contract shall be the total compensation due to FIRM from CITY for all services provided pursuant to this Contract and in no event shall FIRM seek any additional compensation from CITY. CITY shall not be responsible to pay for any services which are unsatisfactory or .that the CITY has not approved. 9. CONFLICfS OF INTEREST FIRM agrees not to represent any client who has an adversary position with the CITY, engage in any conflict of interest and to fully comply with any applicable codes of professional conduct or ethics laws for the duration of this COntract. 10. TERM This Contract shall be on a month-to-month basis beginning on December 15, 2005 and ending on the date the FIRM receives notice from the City that the contract has been terminated. , This Contract shall continue in full force and effect from month to month at the option of CITY, unless either party delivers written notice to the other party of its intent to terminate this Contract at least thirty (30) days prior to the date of the intended termination. FIRM shall have an additional Page 3 of9 S:\Our Documcntll\Coatracts\06'lMunicipal Servicel Bureau.doc six months to reduce to judgment and sale all collection lawsuits filed and collect all bankruptcy claims filed prior to the termination date, and shal1 have the exclusive right to compensation of fees earned due to these suits during this six month period. CITY shall have the right to sooner terminate this Contract by giving ten (10) days' written notice of such intention, or in the event of any of the events taking place under Section 27 Termination of Agreement". In case of such termination, FIRM shall be entitled to receive and retain all compensation due up to the date of said termination. Upon termination, FIRM shal1 immediately deliver all files in their entirety to CITY at no cost to CITY. 11. SETTLEMENTS No settlements or compromises of fines or other collectable amoWlts shall be effected where prohibited by law and where authorized by law, only upon approval by CITY. 12. NOTICE Any notice or other written instrument required or permitted to be delivered pursuant to the terms of this Contract shal1 be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or FIRM, as the case may be, at the following addresses: CITY FIRM City of Denton, Texas AlTN: Assistant City Manager Fiscal & Municipal Services 215 E. McKinney Denton, TX 76201 Gila Corporation, d b.a. Municipal Services Bureau AlTN: Thomas M. Giambci President & CEO 6505 Airport Blvd., Ste. 100 Austin. TX 78752 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. 13. VENUE The terms, obligations and requirements of this Contract shal1 be construed in accordance with the laws of the State of Texas. The obligations and requirements of the parties hereto are performable in Denton County, Texas. Any litigation involving this Contract shal1 be tried in a court of competent jurisdiction sitting in Denton County, Texas. 14. ACCEPTANCE OF EMPLOYMENT In consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM hereby accepts the employment of CITY and undertakes the performance of this Contract as abcve stated. Page 4 of9 S:\Our Doeurnents\ConIrBcblO6\Municipal Services 8uJeau.doc 15. DIRECTIVES All directives between FIRM and CITY.sha11 be confirmed in writing. 16. COVENANT NOT TO SUE FIRM further agrees not to bring any cauSe of action against CITY relative to this Contract. Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1.00 and the filing of such cause of action shall be considered a material breach of this Contract. 17. AMBIGUITY Any ambiguity within this Contract shall be liberally interpreted in favor of CITY. 18. ASSIGNMENT The rights and responsibilities of CITY under this Contract may be assigned by the City Council to another governmental unit in Denton County without approval of FIRM. It is understood and agreed that this is a specialized Collection services contract and CITY is contracting for the unique services of FIRM. FIRM's rights and responsibilities under this Contract may.DQ! be assigned by FIRM to another firm or colJection agency without written approval of the assigmnenl by the City Council. 19. INDEMNITY AGREEMENT The FIRM shall indemnity and save and hold hannless, and defend, at its own expense, the CITY and its officers, agents, servants, and employees from and against any and all liability, suits, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, of whatever kind or character, whether real or asserted, resulting from the negligent acts or .omissions of the FIRM or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Contract whether arising i out of in whole or in part, from any and all alleged acts or omissions of officers, servants, or employees of the CITY. Nothing in this Contract sha11 be construed to create a liability to any person who is not a party to this Contract, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Contract, including the defense of governmental inununity, which defenses are hereby expressly reserved. 20. INSURANCE During the performance of the services under this Contract, FIRM sha11 maiutain the following insurance with an insurance company licensed to do business in the State of Texas by the Page 5 of9 S:\Our Documcnts'C011tncts\06\Municipal SmriCC5 Bureau.doe State Insurance Commission or any successor agency that has a rating with Best Rated Carriers of at least an A- or above: Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate. The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without 30 days prior written notice to CITY and FIRM. In such event, the FIRM shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. 21. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Contract by submitting the dispute to arbitration or other means of alternate dispute resolution, such as mediation. No arbitration or alternate dispute resolution arising out of or relating to this Contract, involving one party's disagreement, may include the other party to the disagreement without the other's approval. 22. ENTIRE AGREEMENT This Contract, consisting of 9 pages and Exlribit A, constitutes the complete and finaI expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, conu'nunications, and agreements which may have been made in connection with the subject matter hereof. The parties understand and agree that any previous agreements or contracts between the parties are null and void and this contract is the sole and exclusive contract or agreement between the parties. 23. COMPLIANCE WITH LAWS The FIRM shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. 24. DISCRIMINATION PROHIBITED In performing the services required hereunder, the FIRM shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 25. PERSONNEL AND EQUIPMENT A. The FIRM represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Contract. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. FIRM shall Page 6 of9 s:\Our Documents\Contracts~6\Munictpal Services Buteau.doc inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Contract. B. All services required hereunder will be performed by the FIRM or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. C. The FIRM represents that it has or will secure, at its own expense, the hardware, software, and other resources required to perform, in a timely manner, all the services required under the terms of this contract. 26. ASSIGNABILITY The FIRM shall not assign any interest in this Contract, and shall not transfer any interest in this Contract (whether by assignment, novation, or otherwise) without the prior written consent of thc CITY. 27. TERMINATION OF AGREEMENT A Notwithstanding any other provision of this Contract, either party may terminate by giving thirty (30) days advance written notice to the other party. The City further shall have as a matter of right, the option to cancel this Contract upon giving the FIRM ten (10) days advance written notice. B. This Contract may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Contract. No such termination will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifYing the nonperformance, and not less than 30 calendar days to cure the failure. and (2) an opportunity for consultation with the terminating party prior to termination. C. If the agreement is terminated prior to completion of the services to be provided hereunder, FIRM sha11 immediately cease all services and shall render a final bill for services to- the CITY within 30 days after the date of termination. The CITY shall pay FIRM for all services properly rendered and satisfuctorily performed and for reimbursable expenses to termination incurred prior to the date of tennination, in accordance with Article 9 "Compensation". Should the CITY subsequently contract with a new consultant for the continuation of services on the Proj eel, FIRM shall cooperate iIi. providing information. The FIRM shall turn over all documents prepared or furnished by FIRM pursuant to this Contract to the CITY on or before the date of termination, but may maintain copies of such documents for its use. 28. MODIFICATION No waiver or modification of this Contract or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged Page 7of9 S:\Our Documents\Contracts'\06\Municipal Services Bureau.doc: therewith. and no evidence of any waiver or mddification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Contract, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as herein set forth. 29. INDEPENDENT CONTRACTOR FIRM shall provide services to CITY as an independent contractor, not as an employee of the CITY. FIRM shall not have or claim any right arising from employee status. 30. MISCELLANEOUS A. The following exhibits are attached to and made a part of this Contract: Exhibit "A" - Task Order For Collection Services. B. FIRM agrees that CITY shall, until the expiration of three (3) years after the finaI payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the FIRM involving transactions relating to this Contract. FIRM agrees that CITY shall have access during normal working hours to all necessary FIRM fucilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. CITY shall give FIRM reasonable adv8nce notice of intended audits. C. For the pwpose of this Contract, the key persons who will perform most of this work hereunder shall be Thomas Giamboi; Donald McKinley, Chris Powell and Yousef Gonzalez, one of whom is either an attorney, accountant, auditor, or now works in another well recognized professional services field However, nothing herein shalllimil FIRM from using other qualified and competent members of its firm to perform the 5elVices required herein. D. FIRM shall commence. carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing the projects, FIRM shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the CITY. E. The CITY shall assist the FIRM by placing at the FIRM's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the FIRM to enter in or IIJXln public and private property as required for the FIRM to perform services under this Contract. 31. TIME OF THE ESSENCE Time is of the essence with respect to all matters covered by this Contract. Page 8 of9 S:\Our Documents\ContractaV)6\Municipal Servicea Bureau.doc 32. CAPTIONS The captions appearing at the first of eaCh numbered section are inserted and included solely for convenience and shall never be considered or given any effect in construing this Contract This Contract is executed on behalf of CITY by the presiding officer of its governing body who is authorized to execute this instrumenl by order heretofore passed and duly recorded in its mioutes and by a partner of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to execute this document on behalf afFIRM. ~ WITNESS the signature of all parties hereto in triplicate originals this the /1tA day of I,t{a~ ,2006, Denton County, Texas. CITY OF DENTON, TEXAS ~~. INTERIM CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO D AS 0 LEGAL FORM: EDWIN M. SNYDER., CITY ATTORNEY . GIAMBOI & CEO BY: Page 9 of9 S:\Our Documents\ContnJcts\06\Contract for conectiOD Serviec:s-Pro-posaI3298.doc EXHIBIT A CITY OF DENTON TASK ORDER FOR COLLECTION SERVICES I. COLLECTION SERVICES A. Puroose The pllIpose of this docmnent is to solicit Proposals to collect on warrants and such other Municipal Court unpaid fines, debts, and accounts receivable which are collectible under Artiele 103.0031 of the Code ofCriminaI Procedure that the City may refer for collections. The objective of the Proposal process is to obtain the collection services of a Contractor, who will provide immediate and consistent efforts in collections and a timely return of the maximum dollars by reimbursement on each ease or warrant collected. B. BacklZ[Ound Article 103.0031 of the Code of Criminal Procedure authorizes the City to contract with a private attorney or a public or private vendor for the provision of collection services. The City Council of Denton has authorized the addition of a collection fee in the amount ofJO percent of the total amount due to be charged to the defendant for a collection fee on any amount that is more than 60 days past due and that has been referred to the Contractor for collection. The Municipal Court is responsible for the adjudication of Class C Misdemeanor violations (within the corporatc City limits) provided by State Law and City Ordinances. The Court processed 47,126 cases in Fiscal 2004-2005. Of these cases 11,516 were issued warrants. The average of bond/fine amounts on cases was $290.00. The Denton Police Department Warrant Division served 9,463 warrants, 82% of the total issued, during the same period. The number of warrants that resulted in payment of the fine was 4,357. The number of warrants that were served resulting in non-cash disposition was 4,586. The vast majority of persons for which warrants are issued have resident addresses within Denton or the DallasIFort Worth Metroplex. Approximately two percent of the warrant holder's addresses are out of State. S:\Our Documents'Contracts'D6'Contract for CoUection Scrvice.s-Propo&a13298.dClC C. Nature of Services Reauired I. The Court will provide files electronically to the Contractor of those persons having outstanding City Municipal Court cases. This information can include, but is not limited to the following: Person's name, personal identifiers and driver license number, last known residential address, last known telephone number, citation number, alleged offense committed, offense date, amount of fine, amount paid (if any), amount due, and if applicable, date of warrant and warrant number and amount of finelbond. City will provide current file layouts. Electronic transfer of data must include the Contractor having a PC that enables the City to email an attachment or to a secure FTP file via the Internet. Contractor must be able to receive and return files back and forth between City and Contractor. It will be thc Contractor's responsibility to assure compatibility of City's data files and transmittal medium to the Contractors computer system. The Contractor shall bear all costs, if necessary, for data conversion to make the City's computer system compatible with that of the Contractor's and any incidental costs related to the data transfer. 2. The City will send various outstanding cases to the Contractor for collection services on a monthly basis and may refer other unpaid amounts. These cases, warrants, and other unpaid amounts consist of the following types: Outstanding Cases - These cases are violations outstanding on class C misdemeanors for traffic, non-traffic, and parlcing violations that occurred in the incorporated city limits, including City Ordinance violations; b. Active Capias Pro Fine Warrants - These are warrants in which a judgment has been entered assessing a sum owed by the defendant in order to discharge the defendant from liability and the defendant is subject to immediate arrest; c. Active Alias W mants - These are warrants in which no judgment has been entered assessing any sums due from the defendant in the Page 2 of5 S:'Dur Documcnta:\Contract:J\06\Contmct for Collection Services-Proposal 3298.doc: ease, but the defendant is subject to immediate arrest to answer for the pending criminal charge; d. Capias Pro Fine Cases - These are cases in which a judgment has been entered assessing a sum owed by the defendant in the case to be paid in order to discharge the defendant from liability, but the defendant is not subject to immediate arrest. e. At the City's sole option any other unpaid fmes, debts, and accounts receivable which are collectable under Section 103.0031 of the Code of Criminal Procedure. 3. The City will supply the Contractor with two separate listings; They shall be known as the HISTORY FILE, the, and the NEW WARRANT FILE. a. The History File sha11 be provided one time only_ This file will contain the entire backlog of active warrants previously worked by the City's Warrant Division. The approximate number of outstanding caseS is 5000. b. The New Warrant File shall be sent on a monthly basis and sha11 contain warrants that were processed fOr a period of time by the Denton Police Department. The approximate number of new warrants sent to the Denton Police Department Warrant Division each month is 700. 4. Contractor agrees to perform the following: a. Contractor will develop a series of contacts with the defendant that do not violate the defendant's statutory and constitutional rights. b. Contractor will attempt to contact the defendant named in any case or warrant submitted for collection service at least six (6) times in a ISO-day period through a rotating telephone and letter cycle. V oiceltelephone contact attempts shall be limited to between the hours of 8:00 A.M. and 9:00 P.M., Monday through Saturday. No Sunday contacts Will be attempted. c. Contractor will submit transcripts oftelephone contacts and written communications for approval by the City for collection services. The Contractor Shall pay all associated costs with the telephone contact andwritten communications. d. Contractor will. instruct all defendants to forward no monies directly to the City Municipal Court. Should the Court receive a Page 3 of 5 S:\Our Documents\ConU8(:ts\{)6'Contract for Colb;tion Servicea--ProposaI3298.doc payment from a defendant, the Court shall forward payment directly to the Contractor in the form of the original negotiable instrument received. e. Contractor will send an acknowledgment (approved by the City) of receipt of payment on the City's behalf to all named defendants in cases and warrants which are collected by payment of sums owed. f. The Contractor shall make no contacts in person to the defendant. g. The City may recall at any time from Contractor a case or cases previously referred to Contractor for collection efforts, when in the opinion of the City, the best interest of the City will be served by recalling the case and/or wammt. Contractor will return information on cases submitted for collection services including information developed by the Contractor regarding the defendant or his whereabouts. h. Contractor shall use due diligence, reasonable and ethical methods, and employ lawful means to effect collection on the City's outstanding cases. 1. Contractor will guarantee that every defendant will be dealt with in a professional, courteous manner. J. Contractor will guarantee that a full-time customer service representative will be assigned to the City and available to address day-to-day issue~. k. Contractor will guarantee that a management-level staff member will be available to meet with City staff on 24-hour notice. J. Contractor will send to the City only the monies that are due the City. City will not collect nor distribute the collection fee. m. Contractor shall have on its staff attorneys, accountants, auditors, or other recognized professionals who shall substantially be involved in the collection efforts. 5. Additional written and/or telephone contacts may be made at the choice of the Contractor within the hours stipulated above. 6. To the extent allowed by law, all information supplied by the City to the Contractor shall be kept confidential and not disclosed to parties other than the Contractor's employees on a need-to-know basis for the purpose of Page 4 of5 8:\OU1 Docurnen~ontractB\06\ContnLct for Collection Services-Proposal 3298.doc contract performance and to the defendant or the person answering the phone of defendant's residence. 7. Both the City and the Contractor will jointly review the appropriate cases for which payment is due to the City on a monthly basis. a. Contractor will not receive compensation for cases and warrants disposed of in which the City does not receive any payments, defendant's credit for sums owed by jail time credit, community service, dismissal of any case or if defendant is found not guilty, or for which no money is actually received by the Court or situations in which cases or warrants are disposed of by way of arrest. b. Total collection fees received by the Contractor will not exceed the percentage as specified in the controlling State Statute. c. The City shall not be liable under the contract for any services which are unsatisfactory or which the City has not approved. d. Contractor will . not be entitled to reimbursement for expenses incurred under the Contract. Contract: The Contractor will enter into a collection services contract with the City for a contract term of _ substantially in the form attached which will provide, without limitation, an indemnity clause substantially to the effect that the Contractor shall covenant and agree to indemnifY, hold harmless and defend, at its own expense, City, its officers, servants and employees; from and against any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of the work and services to be performed hereunder by Contractor, its officers, agents, employees, subcontractors, licensees or invitees, whether or not caused, in whole or in part, by the alleged negligence of the officers, servants, employees, of the City. The Contractor shall also have and keep in full force and effect a professional liability insurance policy with limits of not less than $1,000,000 annual aggregate with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with the Best Rated Companies at least A- or above. Page 5 of5