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HomeMy Public PortalAboutResolution No. 484-17 07-10-2017CITY OF RICHLAND HILLS RESOLUTION N0.484-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHLAND HILLS, TEXAS, AUTHORIZING A COLLECTION FEE FOR CERTAIN DEBTS OWED TO THE MUNICIPAL COURT OF THE CITY OF RICHLAND HILL5. WHEREAS, the City of Richland Hills wishes to defray its costs of collection that it incurs under a contract for collection of delinquent court fines and fees between the City and a collection firm as authorized under the provisions of Article 103.0031, Texas Code of Criminal Procedure; and WHEREAS, under said article, the City Council of the City of Richland Hills is empowered to authorize the addition of 30% on each debt and account receivable, including fines and fees, and on each amount in cases in which the accused has failed to appear, when each is more than 60 days past due and has been referred for collection. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHLAND HILLS, TEXAS, THAT: SECTION 1: All matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: A collection fee is hereby authorized and imposed, as provided by Article 103.0031, Texas Code of Criminal Procedure: (a) in the amount of 30% of debts and accounts receivable, such as unpaid fines, fees, court costs, forfeited bonds, and restitution ordered paid by a municipal court serving the City when such debt or account receivable is more than 60 days past due and has been referred to an attorney or private vendor for collection; and (b) in the amount of 30% of amounts in cases in which the accused has failed to appear: (1) as promised under Subchapter A, Chapter 543, Texas Transportation Code, or other law; (2) in compliance with a lawful written notice to appear, issued under Article 14.06(b), Texas Code of Criminal Procedure, or other Law; (3) in compliance with a lawful summons issued under Article 15.03(b), Texas Code of Criminal Procedure; (4) in compliance with a lawful order of a court serving the City; or (5) as specified in a citation, summons, or other notice authorized by Section Resolution 7 Page 1 of 2 682.002, Texas Transportation Code, that charges the accused with a parking or stopping offense, When such amounts are more than 60 days past due and have been referred to an attorney or private vendor for collection. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 10th DAY OF JULY, 2017. ATTEST: ,i i City Secretar APPROVED AS TO FORM: 1 ayor / /t..~ .._ City Manager \~~~~~~~~~~~uiirrrrrr~~ 4` v ~°•7~~`~ ~~ ~, w. ~~--~ ~ `,~~' ~~~~~rrrrr n i n i n ~~~~~~~~ Resolution ~ ~~ Page 2 of 2 Contract for Fines, Fees and Utility Collection Services STATE OF TEXAS COUNTY OF TARRANT THIS CONTRACT (hereinafter "AGREEMENT") is made and entered into by and between City of Richland Hills, Texas, a Texas home rule municipality, acting herein by and through its governing body, hereinafter styled "CLIENT", and Linebarger Goggan Blair & Sampson, LLP, hereinafter styled "FIRM". Article I Nature of Relationship and Authority for Contract 1.01 The parties hereto acknowledge that this AGREEMENT creates an attorney-client relationship between CLIENT and FIRM. 1.02 The CLIENT hereby employs the FIRM to provide the services hereinafter described for compensation hereinafter provided. 1.03 This AGREEMENT, as applicable, is entered into pursuant to and as authorized by Subsection (a) of ART. 103.0031, Texas Code of Criminal Procedure. Article 2 Scope of Services 2.01 CLIENT agrees to employ and does hereby employ FIRM to provide specific legal services provided herein and to: (a) enforce the collection of delinquent court fees and fines that are subject to this AGREEMENT, pursuant to the terms and conditions described herein; and, (b) enforce the collection of delinquent utility accounts that are subject to this AGREEMENT, pursuant to the terms and conditions described herein. Such legal services shall include but not be limited to recommendations and legal advice to CLIENT to take legal enforcement action; representing CLIENT in any dispute or legal challenge over authority to collect such accounts; defending CLIENT in litigation or challenges of its collection authority; and representing CLIENT in collection interests in bankruptcy matters as determined by FIRM and CLIENT. This AGREEMENT supersedes all prior oral and written agreements between the parties regarding court fees and fines and utilities, and 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 all parties. 2.02 The CLIENT may from time-to-time specify in writing additional actions that should be taken by the FIRM in connection with the collection of accounts identified in 2.01 above and that are subject to this AGREEMENT. CLIENT further constitutes and appoints the FIRM as CLIENT's attorneys to sign all legal instruments, pleadings, drafts, authorizations and papers as shall be reasonably necessary to pursue collection of the CLIENT's claims. 2.03 Delinquent Court fees and fines that are subject to this AGREEMENT are those that: (a) are described in Subsections (a) and (b) of Art. 103.0031, Texas Code of Criminal Procedure [as amended by Senate Bill 782, 78th Legislature (2003), effective June18, 2003]; and (b) are more than sixty (60) days past due as of the effective date hereof and those that become more than sixty (60) days past due during the term hereof. As used in this section, "more than 60 days past due" has that meaning assigned by Subsection (f) of Art. 103.0031, Texas Code of Criminal Procedure [as amended by Senate Bill 782, 78th Legislature (2003), effective June18, 2003]. The meaning assigned to the phrase "more than 60 days past due" shall, for the term and purposes of this AGREEMENT, survive any future amendments to, or repeal of, Article 103.0031, Texas Code of Criminal Procedure, or any parts thereof. 2.04 Delinquent utility accounts that are subject to this AGREEMENT are those that are more than sixty (60) days past due as of the effective date of this AGREEMENT and as may be referred to the FIRM by the CLIENT in the future. 2.05 The CLIENT agrees to provide to the FIRM data regarding any delinquent Court fines and fees or delinquent utilities accounts that are subject to this AGREEMENT. The data shall be provided by electronic medium in a file format specified by the FIRM. The CLIENT and the FIRM may from time-to-time agree in writing to modify this format. The CLIENT shall provide the data to the FIRM not less frequently than weekly or as otherwise mutually agreed. 2.06 The FIRM, in all communications seeking the collection of delinquent Court fines and fees or delinquent utility accounts, shall direct all payments directly to the CLIENT at an address designated by the CLIENT. If any fines and fees or utilities are paid to the FIRM, said payments shall be expeditiously turned over to the CLIENT. Article 3 Compensation 3.01 The CLIENT agrees to pay the FIRM as compensation for the services required hereunder as follows: (a) With respect to those Court fines and fees accounts identified in 2.01 (a) and for any post June 18, 2003 unadjudicated cases, thirty (30%) percent of the total amount of all the fines and fees [exclusive of any collection fee assessed by the CLIENT pursuant to Subsection (b) of Article 103.0031, Texas Code of Criminal Procedure] subject to the terms of this AGREEMENT as set forth in Section 2.03 above that are collected by the CLIENT during the term of this AGREEMENT; and, (b) With respect to those utility accounts identified in 2.01 (b) twenty (20%) percent of the total amount of all utility accounts subject to the terms of this AGREEMENT as set forth in Section 2.04 above that are collected by the CLIENT during the term of this AGREEMENT. All compensation shall become the property of the FIRM at the time payment of the fines and fees or utilities is made to the CLIENT. 3.02 The CLIENT shall pay the FIRM by the twentieth day of each month all compensation earned by the FIRM for the previous month as provided in this Article 3. The CLIENT shall provide an accounting showing all collections for the previous month with the remittance. Article 4 Intellectual Property Rights 4.01 The CLIENT recognizes and acknowledges that the FIRM owns all right, title, and interest in certain proprietary software that the FIRM may utilize in conjunction with performing the services provided in this AGREEMENT. The CLIENT agrees and hereby grants to the FIRM the right to use and incorporate any information provided by the CLIENT ("CLIENT Information") to update the databases in this proprietary software, and, notwithstanding that CLIENT Information has been or shall be used to update the databases in this proprietary software, further stipulates and agrees that the CLIENT shall have no rights or ownership whatsoever in and to the software or the data contained therein, except that the CLIENT shall be entitled to obtain a copy of such data that directly relates to the CLIENT's accounts at any time. 4.02 The FIRM agrees that it will not share or disclose any specific confidential CLIENT Information with any other company, individual, organization, or agency, without the prior written consent of the CLIENT, except as may be required by law or where such information is otherwise publicly available. It is agreed that the FIRM shall have the right to use CLIENT Information for internal analysis, improving the proprietary software and database, and generating aggregate data and statistics that may inherently contain CLIENT Information. These aggregate statistics are owned solely by the FIRM and will generally be used internally, but may be shared with the FIRM's affiliates, partners, or other third parties for purposes of improving the FIRM's software and services. Article 5 Costs 5.01 The FIRM and CLIENT recognize that certain costs may be incurred in the process of providing any additional services contemplated in Section 2.02 above or in providing any special litigation services. The FIRM shall obtain written consent from the CLIENT prior to incurring any costs for additional services contemplated in Section 2.02 above and prior to providing any special litigation services. The CLIENT agrees that all such costs shall be billed to the CLIENT, but that the FIRM will either (i) advance such costs on behalf of the CLIENT or, (ii) when possible, arrange with the vendor or agency providing the service that the costs of services will not be paid unless and until such costs are recovered by the CLIENT from the debtor. 5.02 The CLIENT acknowledges that the FIRM may provide such services with its own employees or with other entities or individuals who may be affiliated with the FIRM, but the FIRM agrees that any charges for such services will be reasonable and consistent with what the same services would cost if obtained from a third party. 5.03 The CLIENT agrees that upon the recovery of such costs, the CLIENT will (i) pay the FIRM for any such costs that have been advanced by the FIRM or performed by the FIRM and (ii) pay any third party agency or vendor owed for performing such services. Article 6 Term and Termination 6.01 This AGREEMENT shall be effe tive ~ ~ ~ ~ I I ~ (the "Effective Date") and shall expire on 'I i(~ (~ (the "Expiration Date") unless extended as hereinafter provided. 6.02 Unless prior to sixty (60) days before the Expiration Date, the CLIENT or the FIRM notifies the other in writing that it does not wish to continue this AGREEMENT beyond its initial term, this AGREEMENT shall be automatically extended for an additional one year period without the necessity of any further action by either party. In the absence of any such sixty (60) day notice by either the CLIENT or the FIRM, the AGREEMENT shall continue to automatically renew for additional and successive one-year terms in the same manner at the end of each renewal period. 6.03 If, at any time during the initial term of this AGREEMENT or any extension hereof, the CLIENT determines that the FIRM's performance under this AGREEMENT is unsatisfactory, the CLIENT shall notify the FIRM in writing of the CLIENT's determination. The notice from the CLIENT shall specify the particular deficiencies that the CLIENT has observed in the FIRM's performance. The FIRM shall have sixty (60) days from the date of the notice to cure any such deficiencies. If, at the conclusion of that sixty (60) day remedial period, the CLIENT remains unsatisfied with the FIRM's performance, the CLIENT may terminate this AGREEMENT effective upon the expiration of thirty (30) days following the date of written notice to the FIRM of such termination ("Termination Date"). 6.04 Whether this AGREEMENT expires or is terminated, the FIRM shall be entitled to continue to collect any items and to pursue collection of any claims that were referred to and placed with the FIRM by the CLIENT prior to the Termination Date or Expiration Date for an additional ninety (90) days following termination or expiration. The CLIENT agrees that the FIRM shall be compensated as provided by Article 3 for any such item or pending matters during the ninety (90) day period. 6.05 The CLIENT agrees that the FIRM shall be reimbursed for any costs advanced and shall be paid for any services performed pursuant to Article 5 when such costs are recovered by or on behalf of the CLIENT, regardless of the date recovered. It is expressly agreed that neither the expiration nor the termination of this AGREEMENT constitutes a waiver by the FIRM of its entitlement to be reimbursed for such costs and to be paid for such services. It is further expressly agreed that the expiration of any ninety (90) day period under Section 6.04 does not constitute any such waiver by the FIRM. Article 7 Miscellaneous 7.01 Subcontracting. The FIRM may from time-to-time obtain co-counsel or subcontract some of the services provided for herein to other law firms or entities. In such cases, the FIRM will retain supervisory control and responsibility for any services provided by such co-counsel or subcontractors and shall be responsible to pay any compensation due to any such co-counsel or subcontractor. 7.02 Integration. This AGREEMENT contains the entire AGREEMENT between the parties hereto and may only be modified in a written amendment, executed by both parties. 7.03 Representation of Other Governmental Entities. The CLIENT acknowledges and consents to the representation by the FIRM of other governmental entities that may be seeking the payment of fines and fees, utilities, or other claims from the same person(s) as the CLIENT. 7.04 Notices. For purposes of sending any notice under the terms of this AGREEMENT, all notices from CLIENT shall be sent to FIRM by certified United States mail, or delivered by hand or by courier, and addressed as follows: Linebarger Goggan Blair & Sampson, LLP Attention: Director of CMS P.O. Box 17428 Austin, Texas 78760-7428 All notices from the FIRM to the CLIENT shall be sent to CLIENT by certified United States mail, or delivered by hand or by courier, and addressed as follows: City of Richland Hills ATTN: City Manager 3200 Diana Drive Richland Hills, TX 76118 EXECUTED ON the 10th day of July, 2017. City of Richland Hills, Texas By: ~ Bill Agan, Mayor ATTEST: By: l.~ Cathy Bo ,City Secr ry Linebarger Goggan Blair & Sampson, LLP By: orey Fickes For the FIRM