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HomeMy WebLinkAboutItem 10 - Municipal Court Fines and Fees MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER �J� MEETING DATE: FEBRUARY 21, 2017 SUBJECT: RENEWAL OF CONTRACT FOR COLLECTION OF OVERDUE MUNICIPAL COURT FINES AND FEES RECOMMENDATION: City Council to consider approving a resolution authorizing an extension of the contract for court fees and fines collection services with Linebarger Goggan Blair & Sampson. BACKGROUND: In February of 2002 the City Council authorized the City Manager to execute a contract with the law firm of Linebarger Goggan Blair & Sampson, LLP to collect delinquent municipal court fines and fees. The last renewal was January 20, 2015, for a two year term. Approval of this resolution will authorize the extension for an additional two years and continue on a month-to-month basis unless canceled or renewed. As of December 31, 2016, the Municipal Court had assigned 38,427 cases to the firm to attempt to recover $14,954,360 in fines and fees. The firm has been able to collect $3,664,213 (cash payment cases). The firm has also worked 13,871 non-cash credit cases for Municipal Court for$5,452,388. The non-cash"canceled cases"are time served, community services or police interaction cases in which the law firm does not receive a fee on these cases. The collection recovery rates are a total of all older and newer cases submitted to the law firm. As of December 31, 2016 they have received fees for collection services in the amount of$519,363. Linebarger Goggan Blair & Sampson and staff have resolved over 60% of all accounts. This is significantly higher than other municipalities, which often resolve 50% or less of their accounts. Staff recommends approval of authorization to renew the contract for an additional two year period. 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 GRAPEVINE, acting herein by and through its governing body, hereinafter styled "CITY", and Linebarger, Goggan, Blair& Sampson, LLP, hereinafter styled "FIRM". Article I Nature of Re/ationship and Authority for Contract 1.01 The parties hereto acknowledge that this AGREEMENT creates an attorney-client 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. 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; and defending CITY in litigation or challenges of its collection authority. This AGREEMENT supersedes all prior oral and written agreements befinreen 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. 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 (fl of Art. 103.0031,Texas Code of Criminal Procedure [as amended by Senate Bill 782, 78th Legislature (2003), effective June 18, 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 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 percent (0%) 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 by the finrentieth day of each month all compensation earned by the FIRM for the previous month as provided in this Article 3. 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 specific confidential CITY Information with any other company, individual, organization or agency, without the prior written consent of the CIT1(, 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 (the "Effective Date") and shall expire on (the "Expiration Date") unless extended as hereinafter provided. 6.02 Unless prior to sixty (60) days before the Expiration Date, the CITY or the FIRM notifies the other in writing that it does not wish to continue this AGREEMENT beyond its initial term, this AGREEMENT shall be automatically extended for an additional one year period without the necessity of any further action by either party. In the absence of any such sixty (60) day notice by either the CITY or the FIRM, the AGREEMENT shall continue to automatically renew for additional and successive one-year terms in the same manner at the end of each renewal period. 6.03 If, at any time during the initial term of this AGREEMENT or any extension hereof, the CITY determines that the FIRM's performance under this AGREEMENT is unsatisfactory, the CITY shall notify the FIRM in writing of the CITY's determination. The notice from the CITY shall specify the particular deficiencies that the CITY has observed in the FIRM's performance. The FIRM shall have sixty (60) days from the date of the notice to cure any such deficiencies. If, at the conclusion of that sixty (60) day remedial period, the CITY remains unsatisfied with the FIRM's performance, the CITY may terminate this AGREEMENT effective upon the expiration of thirty (30) days following the date of written notice to the FIRM of such termination ("Termination Date"). 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. 7.02 Arbitration. Any controversy befinreen the parties to this AGREEMENT involving the construction or application of any of the terms, covenants, or conditions of this AGREEMENT shall, on the written request of one party served on the other, be submitted to arbitration, and such arbitration shall comply with and be governed by the provisions of the Texas General Arbitration Act. 7.03 Integration. This AGREEMENT contains the entire AGREEMENT between the parties hereto and may only be modified in a written amendment, executed by both parties. 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 CITY 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 of Grapevine Attention: City Manager 200 South Main Street Grapevine, TX 76051 EXECUTED ON the day of , 20 City of Grapevine By: For the City Linebarger Goggan Blair & Sampson, LLP By: Glenn Lewis, Capital Partner For the Firm RESOLUTION NO. 2017-022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, APPROVING AN EXTENSION OF THE CONTRACT FOR COURT FINES AND FEES COLLECTION SERVICES WITH LINEBARGER GOGGAN BLAIR PENA & SAMPSON, LLP AND PROVID�NG AN EFFECTIVE DATE WHEREAS, the City of Grapevine City Council approved a contract for Court Fees and Fines Collection Services with the firm of Linebarger Goggan Blair Pena&Sampson, LLP (the "Contract") on February 5, 2002; and WHEREAS, the Contract provides for a finro-year initial term and a City option to extend the Contract for two additional finro-year terms; and WHEREAS, the City wishes to extend the Contract by one additional finro-year term; and WHEREAS, all legal prerequisites for the adoption of this resolution have been met, including but not limited to the Local Government Code and the Open Meetings Act; and WHEREAS, the City Council hereby declares that the approval of this resolution is in the best interest of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the preamble are true and correct as if copied herein in their entirety. Section 2. That the City Council of the City of Grapevine hereby approves the extension of the Contract for one additional two-year term, and authorizes the City Manager, or his designee, to execute any documents necessary to execute such e�ension. Section 3. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 21st day of February, 2017. APPROVED: William D. Tate Mayor ATTEST: Tara Brooks City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. City Attorney Resolution No. 2017-022 2