Item 4GCITY OF
SOUTH LAM
MEMORANDUM
April 9, 2014
TO: Shana Yelverton, City Manager
FROM: Sharen Jackson, Chief Financial Officer
SUBJECT: Municipal Court Collections Contract
Action Requested: Approval of a Municipal Court Collections Contract
with Linebarger, Goggan, Blair & Sampson, LLP.
Background Information: Staff has recognized a need for a collection contract
for the Municipal Court. A request for proposals was
released and eight companies submitted proposals.
A review committee of five Southlake staff reviewed
and rated the proposals based upon the following:
• Vendor Qualifications;
• Collections Procedures;
• Staffing (Experience and Knowledge);
• Cost/Fee to City of Southlake;
• Reference Feedback;
• Past/Present Litigation.
Linebarger, Goggan, Blair & Sampson, LLP had the
highest staff ratings in all of the categories.
Financial Considerations: No cost to the City. All collection fees will be paid for
by defendants.
Citizen Input/ Board Review: Not applicable
Legal Review: City Attorney reviewed and approved
Alternative: Reject the approval and allow another committee to
review the proposals.
Supporting Documents: Contract
Staff Recommendation: Approve the contract.
Contract for Fines and Fees Collection Services
STATE OF TEXAS
COUNTY OF TARRANT
THIS CONTRACT (hereinafter "AGREEMENT") is made and entered into by and
between the CITY OF SOUTHLAKE, acting herein by and through its governing body,
hereinafter styled "CITY", 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 -CITY
relationship between CITY and FIRM.
1.02 The CITY hereby employs the FIRM to provide the services hereinafter described
for compensation hereinafter provided.
1.03 This AGREEMENT is entered into pursuant to and as authorized by Subsection (a)
of ART. 103.0031, Texas Code of Criminal Procedure., as amended.
Article 2
Scope of Services
2.01 CITY agrees to employ and does hereby employ FIRM to provide specific legal
services provided herein and enforce the collection of delinquent court fees and fines
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 CITY to take legal enforcement action; representing CITY in any dispute
or legal challenge over authority to collect such court fees and fines; defending CITY in
litigation or challenges of its collection authority; and representing CITY in collection
interests in bankruptcy matters as determined by FIRM and CITY. This AGREEMENT
supersedes all prior oral and written agreements between the parties regarding court
fees and fines, 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 CITY may from time -to -time specify in writing additional actions that should be
taken by the FIRM in connection with the collection of the fines and fees that are subject
to this AGREEMENT. CITY further constitutes and appoints the FIRM as CITY's
attorneys to sign all legal instruments, pleadings, drafts, authorizations and papers as
shall be reasonably necessary to pursue collection of the CITY's claims subject to this
AGREEMENT.
2.03 Fines and fees that are subject to this AGREEMENT are those that 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 The CITY agrees to provide to the FIRM data regarding any fines and fees that are
subject to this AGREEMENT. The data shall be provided by electronic medium in a file
format specified by the CITY and agreed to by the FIRM. The CITY and the FIRM may
from time -to -time agree in writing to modify this format. The CITY shall provide the data
to the FIRM not less frequently than monthly.
2.05 The FIRM, in all communications seeking the collection of fines and fees, shall
direct all payments directly to the CITY at an address designated by the CITY. If any
fines and fees are paid to the FIRM, said payments shall be expeditiously turned over to
the CITY.
Article 3
Compensation
3.01 The CITY agrees to pay the FIRM as compensation for the services required
hereunder:
(a) zero (0%) percent of all the fines and fees subject to the terms of this
AGREEMENT as set forth in Section 2.03 above that are collected by the CITY during
the term of this AGREEMENT and that were incurred under Art. 103.0031(a)(2), Texas
Code of Criminal Procedure, as a result of the commission of a criminal or civil offense
committed before June 18, 2003; and
(b) thirty (30%) percent of the total amount of all other fines and fees [exclusive
of any collection fee assessed by the CITY 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 CITY during the term of this
AGREEMENT.
All compensation shall become the property of the FIRM at the time payment of
the fines and fees is made to the CITY.
3.02 The CITY shall pay the FIRM as provided in the Texas Prompt Payment Act,
Texas Government Code Chapter 2251. The CITY shall provide an accounting showing
all collections for the previous month with the remittance.
Article 4
Intellectual Property Rights
4.01 The CITY 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 CITY agrees and hereby
grants to the FIRM the right to use and incorporate any information provided by the
CITY ("CITY Information") to update the databases in this proprietary software, and,
notwithstanding that CITY Information has been or shall be used to update the
databases in this proprietary software, further stipulates and agrees that the CITY shall
have no rights or ownership whatsoever in and to the software or the data contained
therein, except that the CITY shall be entitled to obtain a copy of such data that directly
relates to the CITY's accounts at any time.
4.02 The FIRM agrees that it will not share or disclose any confidential CITY Information
with any other company, individual, organization or agency, without the prior written
consent of the CITY, 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 CITY
Information for internal analysis, improving the proprietary software and database, and
generating aggregate data and statistics that may inherently contain CITY 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 CITY 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 CITY agrees that all such costs shall be billed to the
CITY, but that the FIRM will either (i) advance such costs on behalf of the CITY 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 CITY from the
debtor.
5.02 The CITY 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 CITY agrees that upon the recovery of such costs, the CITY 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 effective May 1, 2014 (the "Effective Date") and shall
expire on April 30, 2017 (the "Expiration Date") unless extended as hereinafter
provided.
6.02 The CITY may extend this AGREEMENT for up to two additional one year periods.
To exercise this option, the City shall serve notice 30 days prior to contract termination
or to the end of any one-year extension. The Option to Extend will not be considered if
funding is unavailable or if the contractor's past performance is not within the industry
standard.
6.03 The occurrence of any one or more of the following events will justify termination of
the contract by the CITY for cause:
i) the FIRM fails to perform in accordance with the provisions of these specifications; or
ii) the FIRM violates any of the provisions of these specifications; or
iii) the FIRM disregards laws or regulations of any public body having
jurisdiction; or
iv) the FIRM transfers, assigns, or conveys any or all of its obligations or duties under
the contract to another without written consent of the CITY.
v) If one or more of the events identified in Subparagraphs i) through iv) occurs, the
CITY may, terminate the contract by giving the FIRM seven (7) days written notice. In
such case, the FIRM shall only be entitled to receive payment for goods and services
provided before the effective date of termination. The FIRM shall not receive any
payment on account of loss of anticipated profits or revenue or other economic loss
resulting from such termination.
vi) When the contract has been so terminated by the CITY, such termination shall not
affect any rights or remedies of the CITY then existing or which may thereafter accrue.
This contract may be cancelled or terminated at any time by the CITY giving the FIRM
thirty (30) days written notice. The FIRM may be entitled to payment for services
actually performed; to the extent said services are satisfactory to the CITY.
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 CITY prior to the Termination Date or Expiration Date
for an additional ninety (90) days following termination or expiration. The CITY 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 CITY 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 CITY, 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.
7.03 Integration and Interpretation. This AGREEMENT, the CITY'S Request for
Proposals, and the FIRM's Response to the CITY'S Request for Proposals collectively
contain the entire AGREEMENT between the parties hereto and may only be modified
in a written amendment, executed by both parties. To the extent of any inconsistency or
conflict between this AGREEMENT and either the CITY'S Requests for Proposal or the
FIRM's Response, the CITY's Request for Proposals and the FIRM's Response shall
control. To the extent of any inconsistency or conflict between the CITY'S Requests for
Proposal and the FIRM's Response, the CITY'S Requests for Proposal shall control. By
executing this AGREEMENT, the FIRM represents and agrees that it accepts all terms
and conditions stated in the CITY'S Requests for Proposal, and will comply with all such
terms and conditions.
7.04 Representation of Other Governmental Entities. The CITY acknowledges and
consents to the representation by the FIRM of other governmental entities that may be
seeking the payment of fines and fees or other claims from the same person(s) as the
CITY.
7.05 Notices. For purposes of sending any notice under the terms of this contract, all
notices from CITY 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 Client Services
P.O. Box 17428
Austin, Texas 78760-7428
All notices from the FIRM to the CITY shall be sent to CITY by certified United States
mail, or delivered by hand or by courier, and addressed as follows:
City Secretary's Office
Alicia Richardson, City Secretary
City of Southlake
1400 Main Street, Suite 270
Southlake, TX 76092
7.06 Indemnification: The FIRM agrees to defend, indemnify and hold harmless
the CITY, all of its officers, Council members, agents and employees from and
against all claims, actions, suits, demands, proceedings, costs, damages and
liabilities, including reasonable attorneys' fees, court costs and related expenses,
arising out of, connected with, or resulting from any acts or omissions of the
FIRM or any agent, employee, subcontractor, or supplier of the FIRM in the
execution or performance of this contract without regard to whether such
persons are under the direction of City agents or employees.
EXECUTED ON the day of , 2014
City of Southlake
:0
Mayor John Terrell Alicia Richardson, TRMC
City of Southlake City Secretary
Approved as to Form and Legality
City Attorney
Linebarger Goggan Blair & Sampson, LLP
Stephen T. Meeks, Managing Partner
For the FIRM