13-B Mun Ct Collection Agmt - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider a Resolution approving and authorizing a Professional Services Collection Agreement ( professional services contract) between the City of Paris and American Municipal Services Corporation for collection of fines and court costs for warrants, citations, capias pro fines, etc. issued by the City of Paris Municipal Court. BACKGROUND: The City of Paris and American Municipal Services Corporation have had a Professional Services Collection Agreement for collection of Municipal Court fines and court costs for several years. Senate Bill 782 of the 78th Legislative Session amended the Code of Criminal Procedure, effective June 18, 2003, and for cases which are more than sixty (60) days past due, a city may contract for collection services. Pursuant to Senate Bill 782, the statute requires that the contract specify a 30 percent collection fee which is to be added to the amount of fines and costs, which amounts are to be paid by the defendant. A municipality that enters into a contract under this Senate Bill may not use the additional 30 percent collection fee authorized for any purpose other than compensating the private attorney or vendor. The added collection fee does not apply ifa case is dismissed or to any part of the fine or cost which a defendant discharged by jail credit or community service. The collection fee may be applied to any balance remaining after a partial credit for time served or community service if the balance is more than 60 days past due. If the amount paid by a defendant is less than the aggregate total amount due, the allocation of money to the comptroller, the municipality, and the private attorney or vendor shall be reduced proportionately. DESCRIPTION: The proposed Professional Services Collection Agreement includes language that a case will not be sent to American Municipal Services Corporation until it is more than sixty (60) days past due, that all services performed under the contract will be under the direction of a Texas attorney, that AMSC will arrange for payments to be sent directly to the Municipal Court, that the 30 percent collection fee will be added to those cases after June 18, 2003, that a collection fee of 25% of the fine amount is paid to AMSC for those cases for offenses committed prior to June 18, 2003, that all expenses including labor, postage, telephone, and skip tracing will be paid for by AMSC, that a Certificate of Insurance will be provided prior to or upon execution of the agreement, and that the collection agreement can be terminated upon thirty (30) days written notice. RECOMMENDED ACTION: Consider and approve the proposed Resolution approving and authorizing the Professional Services Collection Agreement. STAFF CONTACT: Yvonne Chance, Municipal Court Clerk; Judge Thomas E. Hunt iii, Municipal Court Judge; John Lestock, Assistant City Attorney. COST: The 30 percent fee that is added to the amount of fines and costs that are due is to be paid by the defendant. The 30 percent fee established by Senate Bill 782 and incorporated into the Professional Services Collection Agreement is the fee paid to the vendor. There is no cost to the City of Paris under this proposed Professional Services Collection Agreement except for 25% of the fine amount paid to AMSC for cases prior to June 18, 2003, which is the current agreement with AMSC. SCHEDULE: Upon passage of the proposed Resolution, the Professional Services Collection Agreement would be for twelve (12) months, commencing upon the last date signed by the parties to this Agreement, and thereafter the Agreement shall be self-renewing from year to year unless the terms and conditions are renegotiated at the request of either party. Either party can terminate the Professional Services Collection Agreement upon thirty (30) days written notice to the other party.