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Item 4E (2)CONTRACT FOR COLLECTION OF DELINQUENT MUNICIPAL COURT FINES AND FEES STATE OF TEXAS § § § COUNTY OF TARRANT/DENTON § CITY OF SOUTHLAKE, THIS CONTRACT is made and entered into by and between the TEXASCityMcCREARY, , acting herein by and through its governing body, hereinafter styled, "", and VESELKA, BRAGG AND ALLEN, P.C.MVBA , hereinafter styled "". I. The City agrees to retain and does hereby retain MVBA to provide legal services related to the enforcement of the collection of delinquent municipal court fines, fees, court costs, restitution, debts and accounts receivable and other amounts in accordance with Article 103.0031, Texas Code of Criminal Procedure (hereinafter referred to in the agreement as II. For purposes of this contract all Fines and Fees shall be referred to MVBA when determined to be delinquent as provided for in Article 103.0031, Code of Criminal Procedure. At least once each month on a date or dates agreed upon by the parties, the City will provide MVBA with copies of, or access to, the information and documentation necessary to collect the Fines and Fees and Delinquent Accounts Receivable that are subject to this contract. The City shall furnish the information to MVBA by electronic transmission or magnetic medium. The City may be responsible for the receipt of the payment of all fines and fees pursuant to this contract. III. MVBA shall forward to the City copies of any correspondence regarding a disputed debt received from a debtor and a request for verification of the debt. The City will provide to MVBA within ten (10) days of the receipt for the request for verification of the debt, copies of all records which will verify the debt which in turn will be forwarded to the debtor by MVBA. All collection activity will be suspended on any disputed debt until the appropriate verification of the debt is delivered to the debtor. IV. Upon consultation and agreement by both parties hereto, MVBA may institute civil legal proceedings, including seeking writs of execution to collect Delinquent Accounts Receivable. The City shall pay in advance of the initiation of any writ of execution or collection lawsuit any filing fees charged by the Court or Clerk of the Court in which the writ of execution is to be issued or the collection lawsuit is to be filed including the costs for service of citation. MVBA may also, after consultation and agreement by both parties, file proofs of claims in the United States Bankruptcy Court on behalf of the City. V. MVBA shall forward to the City all cashier checks or money order payments made payable to the City and any correspondence from defendants directly to the City. Cashier checks or money order payments made payable to MVBA will be deposited daily into the MVBA Trust Account. MVBA may also collect the amount due from the defendant by credit card or electronic draft which is deposited into directly into the MVBA Trust Account. MVBA shall remit to the City all payments in full received into the MVBA Trust Account, semi-monthly, along with an invoice detailing the docket/account number, name of defendant/debtor, amount paid to MVBA or Court/Office, MVBA fee percentage and fees earned for each case. VI. MVBA shall indemnify and hold the City 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 MVBA'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, its officers, agents, employees or contractors. And furthermore, in the event of joint and/or shared negligence or fault of the City and MVBA, 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. VII. Fines and Fees For the collection of Fines and Fees, the City agrees to pay to MVBA, as compensation for the legal services rendered the following fees: 1.For those Fines and Fees imposed against Unadjudicated Offenses that occurred before June 18, 2003, there is no fee due (0%) MVBA on the amount collected by the Court on those cases. For those Fines and Fees imposed against Adjudicated Offenses regardless of the date of the 2. offense, and against Unadjudicated Offenses that occurred on or after June 18, 2003, a fee of thirty percent (30%) of the amount of the Fines and Fees collected by the Court as provided by Article 103.0031 of the Code of Criminal Procedure on those cases in which the data files are transmitted to MVBA by electronic media. In the event any case is disposed of by acquittal or dismissal, or if the fine, costs and/or fees are 3. discharged through performance of community service, credit for jail time served, the discretionary removal of a collection fee by the Court or pursuant to §45.0491 of the Code of Criminal Procedure, no compensation shall be paid to MVBA by the City . MVBA shall remit to the City all payments in full, semi-monthly, along with appropriate documentation to facilitate processing of the payments by the court for paid cases and will include the amount of the fees due the Firm. All fees shall become the property of MVBA at the time of payment. The City shall pay to MVBA said fees on a monthly basis by check. Contract for the Collection of Fines & Fees - Page 2 of 4 VIII. MVBA reserves the right to return to the City all accounts not collected within one (1) year of referral by the City, or identified as being in bankruptcy. Upon return of these accounts, neither party will have any obligation to the other party to this contract. IX. The initial term of this contract is two years, beginning on the _____ day of ____________, 2010 and shall thereafter continue on a month-to-month basis. Either party may, without cause, terminate this contract by giving the other party written prior to the intended termination date. In the event that the City terminates this contract, MVBA shall be entitled to continue its collection activity on all accounts previously referred to MVBA for three (3) months from the date of I of this contract for all amounts collected on accounts referred to MVBA. The City may, at its discretion, refer additional accounts to MVBA after notice of termination has been received by MVBA. At the end of the three (3) month period, all accounts shall be returned to the City by MVBA. In the event, MCBA terminates this contract, MVBA shall return all accounts to the City on the date the contract terminates, unless otherwise agreed to by the City. X. For purposes of sending notice under the term of this contract, all notices from the City shall be sent to MVBA by certified United States mail to the following address: McCreary, Veselka, Bragg & Allen, P.C. Attention: Harvey M. Allen P.O. Box 1310 Round Rock, Texas 78680-1310, or delivered by hand or by courier, and addressed to: 700 Jeffrey Way, Suite 100, Round Rock, Texas 78664-2425. All notices to the City shall be sent by certified United States mail or delivered by hand or courier, to the following address: City of Southlake Attention: Shana K. Yelverton, City Manager 1400 Main St., Suite 460 Southlake, Texas 76092 XI. This contract is made and is to be interpreted under the laws of the State of Texas and venue for any dispute between the City and MVBA shall lie in Tarrant County, Texas. In the event that any provision(s) of this contract shall for any reason be held invalid or unenforceable, the invalidity 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 or unenforceable provision(s) had never been a part of this contract. Contract for the Collection of Fines & Fees - Page 3 of 4 XII. In consideration of the terms and compensation herein stated, MVBA hereby agrees to undertake performance of said contract as set forth above. The City has authorized by order heretofore passed and duly recorded in its minutes the chief executive officer to execute this contract. 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. WITNESS the signatures of all parties hereto this, the ____ day of ______________, A.D. 2010. CITY OF SOUTHLAKE, TEXAS ________________________________________, Mayor McCREARY, VESELKA, BRAGG & ALLEN, P.C. _________________________________________ Gilbert T. Bragg or Harvey M. Allen Attorney at Law Contract for the Collection of Fines & Fees - Page 4 of 4