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13-B Mun Ct Collection AgmtAGENDA 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. COUNCIL DATE: Consider for approval at City Council's October 13, 2003, regular Council meeting. ADDITIONAL MATERIALS: See attached Resolution, proposed Professional Services Collection Agreement, and Certificate of Insurance. DRAFT F:kAttorney\LisahO. esolutions\CURRENTgVlun Court Collection Res.wpd October 9, 2003 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES COLLECTION AGREEMENT WITH AMERICAN MUNICIPAL SERVICES CORPORATION FOR THE COLLECTION OF DELINQUENT MUNICIPAL COURT FEES, COSTS, AND FINES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris has been made aware of the Municipal Court's need for professional collection services for delinquent Municipal Court fees, costs, and fines, and the City of Paris is desirous of having such fines and court costs collected; and, WHEREAS, due to certain recent statutory changes by the Texas Legislature and in order to continue to receive such collection services, it is necessary for the City of Paris to enter into a new Professional Services Collection Agreement with American Municipal Services Corporation; and, WHEREAS, the form of agreement for such professional collection services, attached hereto as Exhibit A, should, in all things, be approved, and the Mayor should be authorized to execute the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the form of the Professional Services Collection Agreement with American Municipal Services Corporation for the collection of delinquent Municipal Court fees, costs, and fines be, and the same is hereby, approved. Section 3. That the Mayor of the City of Paris be, and he is hereby, authorized and directed to execute, on behalf of the City of Paris, the Professional Services Collection Agreement with American Municipal Services Corporation, under the terms and conditions and in the form shown in Exhibit A, attached hereto. Section 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 13th day of October, 2003. Curtis Fendley, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney eri an Muui i#al 3740 N. Joscy Lane, Suite 225, CarroIlton, TX 75007 (972) 394-7200 Fax (972) 394-6842 CO .L CTION AGREEMENT (Warrant~, Citations, Capias Pro Fines, etc.) The City of Paris, Texas, hereinafter referred to as "Municipality" desires to utilize the services of American Municipal Services Corporation, hereinafter referred to as "AMSC", to perform collection activities for the Municipality, and American Municipal Services Corporation desires to undertake such collection activities. Accordingly, the parties agree that their relationship be governed by the terms of this Collection Agreement. The Municipality agrees to periodically refer to AMSC citations and/or warrants for collection. No specific number or dollar amount of citations that will be sent to AMSC is represented or guaranteed by the Municipality. No case will be sent by the City of Paris, Texas to AMSC, until the case is more than sixty (60) days past due. AMSC agrees to use their best efforts to collect those citations sent to AMSC by the Municipality. AMSC agrees to skip trace those accounts where it is determined a good address is not known, to send each defendant a minimum of four letters, and to contact each defendant by telephone in an effort to have the defendant pay any fine and/or court costs due to the Municipality. AMSC will.limit all telephone calls to between the hours of 8:00 am and 8:00 pm from Mbnday through Friday, and between the hours of 8:00 am and 5:00 pm on Saturdays. No defendant is to be phoned on Sundays. All contacts between AMSC staff and defendants are to be by telephone or by mail. No personal contacts are to ever occur. AMSC agrees to honor a defendants request to contact the defendant during specified hours, or at a specified location. All services performed under this Collection Agreement shall be under the direction of a Texas attorney. All services to be performed under this Collection Agreement shall be conducted in accordance with all federal, state, and local laws as those laws relate to collection activities under this Agreement. AMSC will arrange for all Defendants to send their payments directly to the Municipality. In the event a payment is sent to AMSC by a Defendant, AMSC will immediately forward that payment to the Municipality. AMSC agrees that it will not deposit, endorse or otherwise negotiate any funds belonging to the Municipality. Pursuant to Article 103.0031 of the Texas Code of Criminal Procedure, as amended, Municipality will add a collection fee of Thirty Percent (30%) to each offense committed after June 18, 2003 that is referred to AMSC for collection. AMSC will be paid the added Thirty (30%) percent as their fee for providing this collection service for these cases. AMSC will be paid a contingent fee of Twenty Five Percent (25%) of the amount of fines collected on all citations/warrants collected though the efforts of AMSC that involve offences committed prior to June 18, 2003. The amount AMSC is paid Twenty-Five Percent on is the actual amount paid by a defendant, minus court costs. AMSC agrees to invoice the Municipality on or about the EXHIBIT fifth (5th) day of each month for the previous month's collections, undisputed invoices being due and payable within thirty (30) days. AMSC will only be paid for those accounts where AMSC contacted the defendant and a payment then followed. AMSC will not be paid on an account if the defendant pays the fine prior to being contacted by AMSC, the case is dismissed by the court for whatever reason, the defendant is arrested, or the defendant is given a sentence by the court such as community service where no monies are paid to the Municipality. All expenses in the collection process, including labor, postage, telephone, skip tracing, etc. shall be paid for by AMSC. AMSC is an independent contractor, and as such is not to be in any way considered an employee, agent, or representative of the Municipality. AMSC agrees to constantly monitor their employees to insure all contacts with defendants are done in a polite, courteous, and helpful approach. The Municipality agrees to review with AMSC on an as needed basis the amounts paid on those cases referred to AMSC and to answer questions on specific accounts ~,vhen a defendant claims they have already paid the fine, has served time for the offense, is the wrong person, or has had the case dismissed. AMSC agrees to provide the Municipality with a report on ali cases sent to AMSC for collection within seven days of receipt by AMSC and to monthly report to the Municipality on the cases AMSC has for collection. AMSC is authorized to arrange payment schedules with Defendants and to authorize partial payments, provided the entire amount to be paid by the Defendant equals the total of the fine and costs established by the Municipality. AMSC agrees that they will first request payment in full from each defendant, and only when it appears a defendant is unable to make the full payment will AMSC negotiate a payment plan. In no case will AMSC set payments at less then $25.00 per month. When a payment plan is established, AMSC agrees to provide each defendant with a schedule of their payments, payment coupons and envelopes addressed to the Municipal Court. AMSC agrees to monitor each payment plan, and to telephone and write each defendant who fails to comply with'the plan. Any notice required or permitted to be given hereunder by one party to the other shail be in writing and the same shall be given and deemed to have been served and given if delivered in person to the address set forth hereinafter for the party at the address hereinafter specified. If mailed, said notice shall be effective upon the date said notice is placed in the United States mail, postage prepaid. Notices pursuant to this Agreeement regarding case status, monthly billings, case reports and other dally collection operations shall be sent to: Clerk of the Municipal Court City of Paris P.O. Box 9037 Paris, Texas 75461-9037 Notices required pursuant to this Agreement regarding legal matters, cancellation notice, default notice, or contract change notices shall be sent to: City Manager City of Paris P.O. Box 9037 Paris, Texas 75461-9037 2 All notices to AMSC shall be sent to: Gregory L. Pitchford~ Vice President Sales American Municipal Service Corporation 3740 N. Josey Lane, Suite 1125 Carrollton, Texas 75007 From time to time either party may designate another address for all purposes of this Agreement by giving the other party not less than ten (10) days advance notice of such address change. AMSC shall furnish a Certificate of Insurance to the City Clerk prior to or upon execution of this Agreement, evidencing the insurance coverage. All insurance provided under this Agreement shall require a minimum of thirty (30) days written notice to the City Clerk prior to the expiration of any policy. , The term of this Collection Agreement shall be for twelve (12) months commencing upon the last date signed by the parties to this Agreement. Thereafter~ the Agreement shall be self- renewing from year to year unless the terms and conditions hereof are renegotiated at the request of either party. Notwithstanding the forego'rog, either party hereto shall have the right at any time and at its sole election and without cause, to terminate this Collection Agreement upon delivering thirty (30) days written notice to the other party. Municipality: City of Paris, Texas Address: PO Box 9037, Paris, Texas 75461 Telephone: ( ) Fax: ( ) By: Date: A~.. eri~n~ Muni~~/Co/rporalion J DATE ACORD~ CERTIFICATE OF LIABILITY INSURANCE 09/23/2003 THIS CERTIFICATE IS ISSUE0 AS A MA~ER OF INFORMATION PRODUCER ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Texas Insurance Exchange HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 855 Davis Bl~n~ #600 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE Southlake TX 76092- INSURED INSURERA:NAOTILUS It~SURANCE COMPANY AMERICAN MUNICIPAL SERVICES CORP. ~NSURERD: 3740 N. JOSEY LANE STE# 225 INSURERC: I INSURER D: C~,RJ[OLLTON TX 75007 - INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDIT[ONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. POUCY EFFECTIVE POLICY EXPIRATION NSR TYPE OF INSURANCE POMCY NUMBER LIMITE GENERAL L~BlUTY / / / / ' EACH OCCURRENCE 1,000,000 X COMM E RCIAL GENE RAL LLABILITY FiRE DAMAGE (An7 one fire} 50,000 A J CLAIMSMAOE [] OCCUR NC286891 09/15/2003 09/15/2004 UEDEXP(Anyonepemon} 1,000 PERSONAL & ADV INJURY 1 · 000 · 000 / / / / GENERAL AGGREGATE 1,000,000 I L,CY I--1 LOC / / / / AUTOMODIEE LIABILITY / / / / COMBINED SINGLE LIMFF ALL OWNED AUTOS / / / / BODILY INJURY HIRED AUTOS / / / / BODILY INJURY / / / / .RO.ERTY D~OE (Per accident) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT .__~ ANY AUTO / / / / OTHER THAN EA ACC EXCESS UABILffY / / / / EACH OCCURRENCE ~] OCCUR [] CLAIMS MADE AGGREGATE S $  DEDUCTIBLE / / / / $ WORRERSCO"PE.S^TIO. A.O / / / / ITO~'~L'M'%I I%~"- / / / / E.t.D~S~SE-~EUPLOYE~ S E.L DISEASE - POLICY LIMIT $ / / / / DESCRIPTION OF OPERATI ON$/LOCATION~/VEHIC LE &q~XC LU SlO NS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS :ERTIFICATE HOLDER I I ADDmONAL INSURED~ INSURER LE~"rER: __ CANCELLATION SROULD ANY DE THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF PANT8 FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABIUTY OF ANY IOND UPON THE ~TCTPAL CO~mRT INSU RERI ITS AGE NT$ O'R- R~PRESENTA~TJ~R:-~I PARIS TX 75461- ' ACORD 25-S (7/97) ( ~ J ~ © ACORD CORPORATION 198. ~- INS025S (9910).01 ELECTRONIC LASER FORMS. INC.-(800)327~545 ~ ~ Pege 1 of 2