HomeMy WebLinkAboutItem 04 - Municipal Court Fines and Fees ITEM 0 -
P MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGE
MEETING DATE: FEBRUARY 5, 2002
SUBJECT: COLLECTION OF OVERDUE MUNICIPAL COURT FINES AND
FEES
RECOMMENDATION:
City Council to consider approving an ordinance adopting a 30% fee for the collection of
delinquent court fees and fines and authorizing the City Manager to contract with the firm
of Linebarger Heard Goggan Blair Graham Pena Sampson, L.L.P.
FUNDING SOURCE:
Pursuant to authorizing legislation (Article 103.0031 of the Code of Criminal Procedure)
this ordinance will establish a 30% add-on to Municipal Courts fines and fees which are
older than 60 days and which will pay all the costs of collection incurred in this contract.
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BACKGROUND:
Staff was recently advised of a change in State Law (Article 103.0031 of the Code of
Criminal Procedure) which now allows a municipality to add on an additional 30% to
Municipal Court fines and fees which are more than 60 days past due. This fee may be
used to compensate a private attorney or private vendor for provision of collection services.
In the past such collection fees would have been taken out of the fine or fee which was
assessed by the court.
Grapevine court has a high number of traffic citations due to the high volume of traffic
flowing though the community on state highways and through DFW Airport. Many of the
individuals receiving citations are not from Grapevine and live out of the area or out of
state. Consequently, collection of overdue fines and fees is extremely difficult in many
instances.
The Municipal Court follows normal practices for notification of individuals and the Police
Department has an extremely active warrant officer program, yet a high number of
individuals ignore the court, avoid arrest, and "walk the ticket" without paying the fines.
January 31, 2002 (4:30PM)
Staff believes that there is a significant amount of revenue which could be collected and
has looked at agencies which can perform this service for the City to supplement its effort.
The Linebarger law firm specializes in collection of municipal court fines and fees and other
government receivables. They have a superior reputation in the collection business and
come highly recommended by other governmental entities. They are also authorized to
make collections in all 50 states. This should help our receivables from out of state
individuals. Since they specialize in collections, they are set up for electronic transfer of
data from our court to the law office, which means no additional workload for City staff to
be involved in the process. The necessary data is simply transmitted from the court to the
appropriate place.
All fines received from individuals will be sent to the City, including the 30% add on fee.
The City will then keep 100% of its fine or fee and send the add on to the Linebarger law
firm. If the City does not get paid, Linebarger does not get paid. The firm only collects on
those citations that are paid to the City. The firm has recommended that our contract with
them be made effective April 1, 2002.
Staff believes that this service will be an important positive supplement to our current
collection efforts.
Staff recommends approval.
WAG/cjc
MC-collectionagm
January 31, 2002 (3:34PM)
it II i
LINEBARGER
BLAIR PEN"' A U
SAMPSONY LLP
The law firm of Linebarger Goggan • Customized collection programs
Blair Pena& Sampson, LLP has which are aggressive but fair.
assembled a highly qualified group of • Nationwide bankruptcy
experienced attorneys and professional P Y
collection teams whose practice is representation.
dedicated solely to collecting • Industry leader in computer
government receivables. We collect systems and software support.
hundreds of millions of dollars for our
clients each year.
Experience
Who are we? Since 1976, our sole focus has been
• More than 25 years' experience in collecting government receivables.
collecting government receivables. We currently serve over 1,600 clients:
• Over 650 dedicated professionals, ➢ Cities, Counties, Schools, Special
including over 70 attorneys.
Districts, and Appraisal Districts;
• 32 offices, including Austin, ➢ School Property Value Appeals;
Dallas, Houston, Jacksonville,
Knoxville, Los Angeles,Memphis, ➢ Department of U.S. Treasury(we
New Orleans, Philadelphia, and collect for all agencies except the
San Antonio. IRS and Department of Education);
$50 billion in debt owed to the
• Annually file over 45,000 lawsuits, United States government;
mail over 5,000,000 demand letters
and make thousands of collection ➢ Current Tax Offices.
calls resulting in greater revenue
for our clients.
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Professional Services
We offer turn-key collection programs ➢ Civil Trial Litigation
and full-service legal representation to ➢ Complex Delinquent Tax
governmental entities. r
Litigation n
➢ Tax Sales, Seizures, & Post
• Comprehensive Collection Programs Judgment Enforcement
➢ Tax Resale Programs
➢ Court Fees &Fines ➢ Community-based Educational
➢ Parking Violations Programs
➢ Delinquent Property Taxes ➢ Taxpayer Assistance
Miscellaneous Liens ➢ Property Value Appeals Services
➢ Student Loans for School Districts
➢ Federal Government ➢ Legislative Involvement
Delinquencies ➢ Tax Law Publications
• Legal & Support Programs The hallmark of our collection program is
customer service.
➢ Appraisal District
Representation
➢ Bankruptcy Representation
Registered Collection Firm
We are licensed and/or authorized to collect debts in all 50 states and U.S.
territories or commonwealths. We can also pursue collections in Caribbean nations,
Canada, and foreign countries.
✓ ✓
✓ ✓
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Fees and Fines Collection Programs
GENERAL WORK PLAN
The Linebarger Law Firm believes that a successful collection program must be
multi-faceted, flexible and tailored to each client's specific needs.
Our collection services continence immediately following the approval of our work
plan by a client. Our goal is to maximize the collection of delinquent fees and fines.
We monitor our work plan on a continuous basis and modify it as necessary to meet
that goal.
WORK PLAN HIGHLIGHTS:
• Load the client's referral numbers and addresses to be used
information into the collection to contact defendants.
database. • Contact all accounts with valid
• Conduct a computerized search phone numbers personally. After
through the Acollaid skip-tracing the second notice mailing, our
database, using our customized telephone collectors will make
Columbia Ultimate Business repeated efforts to personally
System (CUBS) collection contact defendants to secure
software, to confirm or update the payment. The Linebarger Law
address and phone number of Firm has a professional collection
defendants prior to our first staff that works days, nights, and
weekends. CiiirpredictIVe dialer
mailing. This increases the
likelihood of contacting the debtor allows us to contact thousands of
by mail or telephone on our very defendants each day. We always
first attempt. have multi-lingual collectors
available to assist debtors with
• Send a firmly worded collection limited abilities to communicate
notice to all debtors which in English.
instructs them on payment
procedures and warns that failure ® Maintain a detailed activity and
to pay their delinquencies will payment history on every account.
result in our recommendation to
our client that it use all possible ® Apply all appropriate legal and
al ethic enforcement mechanisms.
enforcement mechanisms to
collect the amounts owed. • Establish a regular schedule,
• Send a series of stronger, follow- approved by the client, and
up letters to those individuals who provide detailed management
do not pay or respond as required. reports on our collection
activities.
• Research all returned mail to
locate debtors. Using on-line and • Identify uncollectibles and return
traditional research tools, our those accounts to the client with
trained unit of researchers appropriate documentation.
identifies correct telephone
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Our clients can be assured that the collection strategies and techniques used by the
Linebarger Law Firm will be legal, ethical, and totally professional in manner. While
many government debts generally do not fall within the definition of"consumer debt"
as defined by the Fair Debt Collection Practices Act, our law firm adheres to the
guidelines set out by the Act, with respect to the manner in which we contact and
converse with debtors. Furthermore, all information supplied to our firm is kept
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strictly confidential. Only persons directly involved in our collection program or
authorized in writing by the client have access to the fees and fines data.
A flow chart offering an overview of our collection process is shown below (see
Figure 1).
Figure 1.
'%S OVERVIEW
ttY
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��3n��A�1r�res�Qs .
Good Addresses Bad Addresses
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Collection 4 ortan _
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Technology
The Linebarger Law Firm has invested millions in advanced collection technologies
to assist our attorneys and paralegals in their daily collection efforts. Over 80
programmers and technical personnel support our information technology collection
operations.
We use the Columbia Ultimate Business System(CUBS) in tandem with our
predictive dialer to design and manage collection call programs that are tailored to
your needs. CUBS is fully integrated with our proprietary mailing, litigation, and
bankruptcy software to offer you a truly comprehensive collection program,from
basic mailings to full legal enforcement actions where appropriate.
We have customized this software to improve its efficiency in skip tracing operations.
Our customized CUBS system assures uniformity in dealing with all debtors as well
as adherence to all applicable laws.
Collection Program Features
Our collection efforts are structured to your needs. Our collection team will discuss
your particular collection goals prior to initiating any collection action on your
behalf.
• Personalized work plans for • Customized collection letters that
maximizing your collections. get the debtor's attention.
• Advanced telephone collection • Nationwide skip-tracing/locator
software (CUBS and predictive service.
dialer) for managing your call
campaigns and making thousands of • Regular performance reports.
collection calls.
• Proprietary data processing
• Dedicated call center (800 number) technology for managing all aspects
staffed by trained bilingual of your collection program.
professional collectors.
5
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Client Benefits
The Linebarger Law Finn's comprehensive collection programs and litigation
services allow you to focus on managing your government operations while
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maintaining control over our collection activities. Our mission is to generate the
maximum revenue possible with the least administrative burden to you.
Benefits to Our Clients
• Increase
costs.
revenue with
no collection
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• Improve your courts and law
enforcement operations' efficiency.
+ Add the resources of a respected
national law firm with hundreds of
professional collection personnel to
your staff without raising taxes or
using tax dollars.
• Reduce your backlog of
outstanding court fees & fines.
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erfor ace Record
MCLENNAN COUNTY
McLennan County served as our pilot project for fees and fines collection services. Our
success on behalf of McLennan County has prompted us to launch a statewide Court Fees
and Fines Collection Services Program. The graph shows the total dollars collected by
the Linebarger Law Firm on delinquent accounts referred to the firm for the Years
1999, 2000, and 2001.
yr
'rj3i'� '2 "s•e�. �R'a•" S Y. '$+Y'�tk.`�" 2r ck" r�.c%w.t :f':,.
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SOURCE: MCLENNAN COUNTY AUDUOR REPORTS
In 1999, our first year of representing the County, our joint efforts
increased collections by more than 29% over the previous year's
collections by the courts alone:- We have collected over $1 million in
additional revenue for the McLennan County J.P. Courts over the last two
and a half years.
CITY OF HOUSTON PARKING & TRAFFIC VIOLATIONS
Houston awarded our law firm a contract to collect delinquent parking and traffic violations in
the fall of 2000. While new delinquent accounts are now turned over daily to the Linebarger
Law Firm for collection,roughly 90%of the$157 million debt owed to Houston as of March
1,2001,was more than 240 days delinquent,with over$76 million ranging from three to
seven years delinquent.
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The.graph below shows our actual collection results for the City of Houston for delinquent
parking and traffic citations. After just six months of collecting on behalf of the City of
Houston,the City reported that we had exceeded its seasonally adjusted, five-year
collection average by roughly 52%,resulting in an additional $2 million in revenue.
-
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SOURCE: CITY OF HOUSTON MUNICIPAL COURT ADmDUSTRATION REPORTS
In six months, the City of Houston's revenue increased by 52% over its
historical collection target.
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Professional Recognition
a
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Accepting the 2001 U.S.Mayors'Conference—Award of Excellence are
(left to right)the Linebarger Law Firm Partners Steve Blair&DeMetris
Sampson and Mayor Ron Kirk,City of Dallas.
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raung fro17,
m atanclr�-anti �'
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services "
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Equal Employment
Opportunities
The Linebarger Law Firm is committed to providing ownership and career opportunities
for minorities and women within our law firm as well as supporting Minority and Women
Business Enterprises (MCWBE). We believe it is important that our organization be as
diversified as the governments that we represent. We are proud of our record of hiring an
ethnically and gender diverse workforce, and we continue to promote new opportunities
for women and minorities throughout our law firm.
l
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CONTRACT FOR COURT FEES AND FINES COLLECTION SERVICES
STATE OF TEXAS
COUNTY OF TARRANT
THIS CONTRACT is made and entered into by and between the CITY OF
GRAPEVINE, acting herein by and through its governing body, hereinafter styled First
Party, and LINEBARGER HEARD GOGGAN BLAIR GRAHAM PENA & SAMPSON,
LLP, hereinafter styled Second Party.
1.
First Party agrees to employ and does hereby employ Second Party to enforce
the collection of delinquent court fees and fines pursuant to the terms and conditions
described in this contract. This contract supercedes 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.
II.
First Party agrees to refer all delinquent accounts by electronic or magnetic
medium, in the specified format, to Second Party for collection, on or about the first (1s)
and fifteenth (15t" ) of each month. An account is considered delinquent when not paid
within sixty (60) days of the scheduled appearance date (if the defendant failed to
appear), or any granted extension, or from the date of conviction or judgment, or other
court specified due date. First Party will provide Second Party with copies of, or access
to, the information and documentation necessary to collect the fees and fines that are
subject to this contract. Should it become necessary for Second Party to provide
computer hardware, software, programming services and/or in-house personnel to First
Party, in order for this contract to be performed, a separate agreement and fee structure
shall be negotiated and agreed to in writing by both parties hereto.
III.
Second Party is to refer all payments and correspondence directly to the courts
that have assessed or levied the fees and fines being collected pursuant to this
contract. Second Party reserves the right to return all accounts not collected within one
(1) year of referral by First Party, as well as any accounts identified as being, in
bankruptcy. Upon return of these accounts, neither party will have any obligation to the
other party to this contract.
IV.
Second Party shall indemnify and hold First Party harmless from and against all
liabilities, losses and/or costs arising from claims for damages, or suits for losses or
damages, including reasonable costs and attorney's fees, which may arise as a result of
Second Party's performance of the services described in this contract. The indemnity
provision of this contract shall have no application to any claim or demand which results
from the sole negligence or fault of First Party, its officers, agents, employees or
contractors. And furthermore, in the event of joint and/or shared negligence or fault of
First Party and Second Party, responsibility and indemnity, if any, shall be apportioned
in accordance with Texas law and without waiving any defenses of either party. The
provisions of this paragraph are intended for the sole benefit of the parties hereto and
are not intended to create or grant any right, contractual or otherwise, to any other
persons or entities.
V.
First Party agrees to pay to Second Party, on all accounts referred to Second
Party for collection, a thirty-percent (30%) fee, in accordance with Article 103.0031 of
the Texas Code of Criminal Procedure, as compensation for legal and collection
services provided pursuant to this contract. In the event that an account is not covered
by such statute, First Party agrees to pay Second Party as compensation thirty-percent
(30%) of the total amount collected on all such accounts referred to Second Party for
collection. All compensation shall become the property of Second Party at the time of
payment. First Party shall pay over said funds on a monthly basis by check or wire
transfer. First Party agrees to pay the fee payable under this contract no later than the
30th day following the end of the calendar month within which the fee is paid to First
Party.
V1.
The initial term of this contract is two years, beginning April 1, 2002, and shall
thereafter continue on a month-to-month basis. First Party reserves the option to extend
the initial term of the contract for two additional two-year periods, with the contract
thereafter continuing on a month-to-month basis. Either party may, without cause,
terminate this contract at the end of the initial contract term or thereafter by giving the
other party written notice of termination.
During the initial term of this contract either party shall have the right to terminate
the same prior to its expiration; provided however, that the party giving notice shall grant
the receiving party a period of thirty (30) days, from the date of written notice, the
opportunity to attempt to cure any unsatisfactory terms, acts, omissions or conditions.
Should the party receiving notice be found not to have remedied the unsatisfactory
terms, acts, omissions or conditions to the satisfaction of the party giving, notice, the
party giving, notice may terminate the contract.
2
The effective date of any termination by First Party shall be six (6) months from
the date the notice of termination is received in writing by Second Party; said six (6)
month period being deemed adequate for the purpose of Second Party in winding down
its affairs with regards to work in progress. In the case of termination by Second Party,
the effective date of termination shall be thirty (30) days from the date notice of
termination is received.
First Party is entitled, but is not required, to refer additional accounts to Second Party
after notice of termination has been received by Second Party. In any event, Second
Party shall be entitled to payment of its fee, pursuant to Paragraph V. of this contract,
for all amounts collected on referred accounts during the six (6) month "winding down"
period. At the end of that period, all accounts shall be returned to First Party by Second
Party.
VII.
For purposes of sending notice under the terms of this contract, all notices from First
Party shall be sent to Second Party by certified United States mail, or delivered by hand
or by courier, and addressed as follows:
Linebarger Heard Goggan Blair Graham Pena & Sampson, LLP
Attention: Director of Client Services
P.O. Box 17428
Austin, Texas 78760
or
1949 South IH '35
Austin, Texas 78741
Vill.
This contract is made and is to be interpreted under the laws of the State of
Texas. In the event that any provision(s) of this contract shall for any reason be held
invalid, illegal or unenforceable, the invalidity, illegality or unenforceability of that
provision(s) shall not affect any other provision(s) of this contract, and it shall further be
construed as if the invalid, illegal or unenforceable provision(s) had never been a part of
this contract.
IX.
In consideration of the terms and compensation herein stated, Second Party
hereby accepts said employment and undertakes performance of said contract as set-
forth above.
3
This contact is executed on behalf of First Par
ty by the presiding officer of its
governing body who is authorized to execute this instrument by order heretofore passed
and duly 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 shall be
binding and enforceable.
WITNESS the signatures of all parties hereto this, the of February,
2002.
CITY OF GRAPEVINE
By:
Roger Nelson
City Manager
LINEBARGER HEARD GOGGAN BLAIR GRAHAM PENA & SAMPSON, LLP
M
By:
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ORDINANCE NO
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, ADOPTING A THIRTY
PERCENT FEE FOR THE COLLECTION OF DELINQUENT
COURT FEES AND FINES AND AUTHORIZING THE CITY
MANAGER TO CONTRACT WITH THE FIRM OF
LINEBARGER HEARD GOGGAN BLAIR GRAHAM PENA &
SAMPSON, L.L.P. PROVIDING A SEVERABILITY CLAUSE;
DECLARING AN EMERGENCY AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine is authorized by the Code of Criminal
Procedure to assess a thirty percent (30%) collection fee on Municipal Court fines and
costs which are more than sixty (60) days past due; and
WHEREAS, the City of Grapevine deems it to be in the best interest of its
citizens to contract for the collection of said past due Municipal Court fees and costs
and to assess a thirty percent (30%) fee for the collection of same.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are found to be true and
correct and are incorporated into this ordinance as if copied in their entirety.
Section 2. A thirty percent (30%) fee is hereby assessed on each debt or
account receivable, such as fines, fees, restitution, and other debts or costs, other than
forfeited bonds, ordered to be paid by the Municipal Court.
Section 3. The City Manager, or his designee, is authorized to execute a
contract for the collection of past due Municipal Court fines and fees with the firm of
Linebarger Heard Goggan Blair Graham Pena & Sampson, L.L.P.
Section 4. That all ordinances or any part thereof in conflict with the terms of
this ordinance shall be and hereby are deemed repealed and of no force or effect;
provided, however, that the ordinance or ordinances under which the cases currently
filed and pending in the Municipal Court of the City of Grapevine, Texas, shall be
deemed repealed only when all such cases filed and pending under such ordinance or
ordinances have been disposed of by a final conviction or a finding not guilty or nolo
contendere, or dismissal.
Section 5. If any section, article, paragraph, sentence, clause, phrase or word
in this ordinance, or application thereto, any person or circumstance is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of the ordinance despite such invalidity, which
remaining portions shall remain in full force and effect.
Section 6. The fact that the present ordinances and regulations of the City of
Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals,
peace and general welfare of the public creates an emergency which requires that this
ordinance become effective from and after the date of its passage, and it is accordingly
so ordained.
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PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
u
GRAPEVINE, TEXAS, on this the day of , 2002.
APPROVED:
WILLIAM D. TATE, MAYOR
ATTEST:
' LINDA HUFF, CITY SECRETARY
APPROVED AS TO FORM AND LEGALITY:
CITY ATTORNEY