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Ord 63-2013 11/5/2013ORDINANCE NO. 63-2013 Ordinance Amending Article II Of Chapter 34 Of The Code Of Ordinances Of The City Of Wichita Falls To Add Section 34-31 Thereto To Add A Collection Fee For Cases That Are More Than 60 Days Past Due; Authorizing The City Manager To Execute A Contract Between City Of Wichita Falls And Perdue, Brandon, Fielder, Collins & Mott, L.L.P. For Collection Of Municipal Court Fines, Fees, And Court Costs; And Providing For Codification Of Section 34-31 WHEREAS, the City desires to increase collections in the Municipal Court of the City of Wichita Falls. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: 1. Article II of Chapter 34 of the Code of Ordinances of the City of Wichita Falls is hereby amended to add Section 34-31 thereto, which will read as follows: Sec. 34-31. Collection Fee for Delinquent Cases. In accordance with Article 103.0031 of the Texas Code of Criminal Procedure, there is hereby imposed an additional fee of 30% on all debts and accounts receivable (i.e., fines, fees, court costs, restitution, and other debts) that are more than 60 days past due and have been referred to a private firm for collection. 2. The City Manager is authorized to execute the attached Contract between City of Wichita Falls and Perdue, Brandon, Fielder, Collins & Mott, L.L.P. for Collection of Municipal Court Fines, Fees, and Court Costs, with changes in a form to be approved by the City Attorney. 3. The sections of this ordinance that specify they amend or add to the Code of Ordinances of the City of Wichita Falls are intended to be parts of said Code, and said sections of this ordinance may be renumbered or relettered to accomplish such intention. PASSED AND APPROVED this the 5th day of November, 2013. M A Y O R ATTEST: City Clerk Contract between City of Wichita Falls and Perdue, Brandon, Fielder, Collins & Mott, L.L.P. for Collection of Municipal Court Fines, Fees, and Court Costs 1. Parties to the Contract THIS CONTRACT, hereinafter called "Contract ", is made and entered into by and between the City of Wichita Falls, a Texas municipal corporation, hereinafter called "City ", and Perdue, Brandon, Fielder, Collins & Mott, L.L.P., hereinafter called "Perdue ". THIS CONTRACT supersedes all prior oral and written agreements between the parties, 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. City agrees to employ and does hereby employ Perdue to enforce the collection of delinquent court fines, fees, and court costs owed to the Wichita Falls Municipal Court ( "court") pursuant to the terms and conditions described in this Contract. NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereinafter set forth, the adequacy of which is hereby acknowledged, City and Perdue agree as follows: 2. City's Obligations The City agrees to compensate Perdue, as set forth in Section 4 below, for collection of delinquent Municipal Court cases referred, in the City's discretion, to Perdue for collection. The City shall refer such delinquent cases by electronic or magnetic medium, if available, or in any other way that is most favorable to City on or about the 1St or the 15`I' of each month. All delinquent cases should be in a specified format that will allow Perdue to process the account data. The City will provide Perdue with copies of, or access to, the information and documentation necessary to collect the fines, fees, and court costs that are subject to this Contract. A case is considered delinquent when not paid within 60 days of the scheduled appearance date (if the defendant failed to appear), or from any granted extension, or from the date of conviction or judgment, or other court specified due date. 3. Perdue's Collection Obligations A. Perdue agrees to refer all payments and correspondence directly to the court that has assessed or levied the fines, fees, and court costs being collected pursuant to this Contract. Perdue reserves the right to return any cases not collected within one year of referral by City. Neither party will have any obligation to the other with regard to returned cases. B. Perdue agrees to use its best efforts to collect the delinquent cases received from the City and to comply with all provisions of state and federal law and regulations promulgated pursuant thereto in the rendition of collection services contemplated by this Contract. Specifically, Perdue agrees to mail notices, telephone, or otherwise contact the defendants in the referred cases in order to notify them of the outstanding obligation and collect those debts owed by the defendants. Perdue will make all reasonable efforts to locate defendants whose last known addresses are incorrect and provide all additional corrective information to the City in the monthly progress reports. C:\ Users \tfidelie \AppData \Local\Microsoft \Windows \Temporary Internet Files \Content Outlook \MQSWVVVP \4 - court collections contract w- Perdue - decolored (2).docx C. Perdue agrees that all telephone scripts and document templates and forms to be used in the collection process will be submitted to the Judge of the Wichita Falls Municipal Court for approval. Only approved scripts, templates and forms will be used by Perdue in the collection process. D. Perdue agrees to submit monthly progress reports upon request no later than the last day of the month relating to the status of delinquent cases on a form satisfactory to the City. City agrees to provide a template of the appropriate form to Perdue in order to perform this subsection. Perdue agrees to maintain complete, detailed, and accurate records of its collection effort, and submit monthly invoices for reconciliation. The reports shall include but are not limited to the following: 1) Aged accounts receivable 2) Monthly transaction summary report. 3) Monthly transaction detail report 4. Collection Fee City agrees to pay Perdue 30% of the collected fines, fees, and court costs referred to Perdue in accordance with Article 103.001, Texas Code of Criminal Procedure. The 30% is the Collection Fee, and it shall be added to the amount owed by a defendant that is more than 60 days past due pursuant to Article 103.001, Texas Code of Criminal Procedure. The Collection Fee shall be sole amount due to Perdue pursuant to this Contract. Perdue shall not receive additional funds or compensation for service- related expenses, such as reproduction costs, mileage, delivery service, long distance telephone calls, etc. 5. Exceptions to the Collection Fee Pursuant to Article 103.0031(b), Texas Code of Criminal Procedure, Perdue cannot collect from a defendant the Collection Fee if the defendant has been determined by the court of original jurisdiction to be indigent, or has insufficient resources or income, or is otherwise unable to pay all or part of the underlying fine or costs. The Collection Fee does not apply to a case that has been dismissed by a court of competent jurisdiction or to any amount that has been satisfied through time -served credit or community service. The Collection Fee shall be applied to any collected balance remaining after a partial credit for time served or community service if the balance is more than 60 days past due. The intent of this Contract is to apply the Collection Fee proportionately to amounts collected that are less than the full amount owed. Pursuant to Article 103.0031(e), if a person pays less than the aggregate total amount to be collected for the Collection Fee, court costs, fines, and other applicable fees, then the amount of the Collection Fee payable to Perdue pursuant to this Contract shall be reduced to an amount proportionate to the amount collected. This proportionate reduction shall not reduce the amounts owed by the defendant/judgment debtor, and said defendant /judgment debtor shall continue to owe the remaining amount of the Collection Fee, court costs, fines, and other applicable fees. C:\ Users \ttidelie \AppData \Local \Microsoft \Windows \Temporary Internet Piles \Content.0utlook \MQSWVVVP \4 - court collections contract w- Perdue - decolored (2).docr 6. Method of Payment Absent an agreement otherwise, City shall calculate and receive the amount of any Collection Fee due to Perdue. Said fee shall be paid to Perdue by check on a monthly basis. All compensation shall become the property of Perdue at the time of payment. If Perdue receives any payments, then it shall send the entire amount of any such payments to the Court for calculation and remittance of the Collection Fee thereon. 7. Commencement & Termination of Contract and Recall of Individual Cases This Contract shall commence on the $° k` day of J)e_c_ , , 2013, and end when both parties mutually agree; provided, however, that either party to this agreement shall have the right to terminate this agreement by giving the other party at least 30 days written notice of their desire and intention to terminate this Contract. Upon termination Perdue shall have an additional 6 months to complete work on all delinquent cases referred from the City prior to the notice of termination and will be entitled to compensation on such cases if collected. Both parties agree and understand that the City of Wichita Falls is currently seeking a software provider for municipal court. Understanding this situation, both parties understand that collections through this Contract will probably not commence for several months. Both parties will certify to each other when collections commence in order to appropriately document when performance by Perdue is expected. All accounts receivable, including documentation of any kind furnished by the City shall and all times remain the property of the City. The City may recall any cases, and upon recall thereof, Perdue shall cease collection thereon. After a case is recalled by the City, Perdue shall not be entitled to a Collection Fee on that case unless City collects pursuant to said case within 6 months after recall. If the City collects all or part of the amount due on a recalled case. Perdue shall receive the Collection Fee percentage of the amount collected within said 6 -month period. 8. Indemnity Perdue shall indemnify hold harmless protect and defend the court, the City of Wichita Falls, and all officers employees and agents of the City of Wichita Falls from any and all claims, losses, liabilities damages costs and expenses including reasonable attorney's fees and expenses, that occur or are alleged to have occurred in whole or in part as a result of actions performed by Perdue or Perdue's agents employees or representatives in connection with this agreement. 9. Audits and Records At any time during normal business hours and as often as the court may deem necessary, Perdue shall make available to the City all of its records concerning collection activities pursuant to this Contract. Perdue shall permit the court to audit, examine, and make copies, excerpts, or transcripts from those records. These records shall be available for inspection upon request by the City during the term of the Contract and for two years following its termination or expiration. C: \Users \tfidelie \AppDataUcal \Microsoft \Windows \Temporary Internet Files \Content.0utlook \MQSWVVVP \4 - court collections contract w- Perdue - decolored (2).docx 10. Independent Contractor Perdue shall be employed solely as an independent contractor, and Perdue and Perdue's agents, representatives, and employees are not and shall not be deemed to be agents or employees of the City. 11. Notices For purposes of sending notice under the terms of this Contract, all notices from City shall be sent to Perdue by certified United States mail, or delivered by hand or courier, and addressed as follows: Perdue, Brandon, Fielder, Collins & Mott, L.L.P. Attn: Guy A. "Tony" Fidelie, Jr., Partner By U.S. Mail: By Courier Delivery: P.O. Box 8188 900 8"' Street, Suite 1100 Wichita Falls, Texas 76307 Wichita Falls, Texas 76301 All notices from Perdue shall be sent to the City by certified United States mail, or delivered by hand or courier, and addressed as follows: City of Wichita Falls, Texas Attention: Jim Dockery, Asst. City Manager /CFO By U.S. Mail: P.O. Box 1431 Wichita Falls, Texas 76301 By Courier Delivery: 1300 7t11 Street Wichita Falls, Texas 76301 12. Venue and Controlling Law This Contract is made and is to be interpreted under the laws of the State of Texas. Venue for any disputes involving this Contract shall be in the appropriate courts in Wichita County, Texas. 13. Acceptance of Employment In consideration of the terms and compensation herein stated, Perdue hereby accepts said employment and undertakes performance of said Contract as set forth above. 14. Severability Every provision of this Contract is intended to be severable. If any term or provision hereof is hereafter deemed by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, for any reason or to any extent whatsoever, such illegality, invalidity, or unenforceability shall not affect the validity of the remainder of this Contract, it being intended that such remaining provisions shall be construed in a manner most closely approximating the intention of the parties with respect to the illegal, invalid, void or unenforceable provision or part thereof. C:\ Users \t6delie \AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \MQSWVVVPW - court collections contract w- Perdue - decolored (2).docx This Contract is executed on behalf of the City of Wichita Falls by the presiding officer of its governing body who is authorized to execute this instrument by Ordinance heretofore passed and recorded in its minutes. This Contract may be executed in any number of counterparts, and each counterpart shall be deemed an original for all purposes. Signed facsimiles or electronically signed Contracts executed on behalf of City by the presiding officer of its governing body authorized to execute this instrument shall be binding and enforceable. WITNESS the signature of all parties hereto this S 6 day of D , 2013. City of W' tta Falls M. Darron LeikeL--,/ k_- City Manager, City o ichita Falls Perdue, Brandon, Fielder, Collins & Mott, L.L.P. By: Gu A. " ny ' Fidelie, Jr., Partner For the Firm C:\ Users \tfidelie\AppData \Local\Microsoft \Windows \Temporary Internet Filcs \Content.OLltlook \MQSWVVVP \4 -court collections contract w-Perdue - decolored (2).docx