2006-014
FILE REFERENCE FORM
2006-014
FILE(S) Date Initials
Ratified by Ordinance No. 2006-052 02/21/06 JR
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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
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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:
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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
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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;
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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
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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.
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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
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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
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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
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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.
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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:
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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.
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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
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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
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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
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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.
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