City Council

Agenda Request

Agenda Of:

January 15, 2008

Agenda Request No:

IVA

Initiated By:

Linda Symank

Director of Fiscal Services

Responsible Department:

fiscal services

Presented By:

linda symank

director of fiscal services

Department Head:

linda symank 

director of fiscal services

 

 

Additional Department. Head (s):

 

Subject / Proceeding:

Municipal Court collection services contract

Exhibits:

contract

Clearances

Approval

Legal:

meredith wilganowski,

assistant city attorney

Executive Director:

n/a

Purchasing:

n/a

Asst. City Manager:

karen daly

Budget:

n/a

City Manager:

Allen Bogard/for AB

Budget

Expenditure Required:  $

n/a

Amount Budgeted/Reallocation:  $

n/a

Additional Appropriation:  $

n/a

Recommended Action

Award of Municipal Court Collection Fee Contract to McCreary Veselka, Braggs & Allen, P.C.

Executive Summary

In the 2001 Session, the Texas Legislature adopted S.B. 1778, which amends the Texas Code of Criminal Procedure.  The amended law allows the governing body of a municipality that enters into a collection contract to authorize the addition of a 30% add-on collection fee on all adjudicated cases and for unadjudicated cases that occurred after June 18, 2003 that are more than 60 days past due and have been referred to an attorney or vendor for collection. 

 

The Council amended City Code Chapter 2, Article VI by Ordinance 1640 on September 4, 2007 to authorize the 30% add-on collection fee for the City of Sugar Land.   The City’s current collection procedure will continue.  This consists of first sending a fail to appear, pre-warrant notice within the first week after the missed court date.  If there is no response, approximately two weeks later a warrant is issued and a warrant notice is sent to the defendant.  The Warrant Division will pursue locating the defendant until the case is 60 days old.  At that time the case will be submitted to the collection agency.     

 

Requests for proposals for municipal court collection services were mailed out in November.  Four proposals were received.  A team of four evaluated the proposals based on the following factors:  Qualifications and experience of the firm, method of performing the work, reporting capacity and computer network, proposed fee structure, and past experience of the assigned staff on relevant projects.  The proposal rated the highest by all four evaluators offered to collect the outstanding warrants and provide the money and appropriate reports to Municipal Court which required less work on the Court staff.

 

Staff is recommending awarding the municipal court collection services contract to McCreary, Veselka, Braggs & Allen, P.C. (MVBA).   This is an annual contract with two one-year renewal options.  MVBA will charge a 30% fee on all cases in which the law permits the add-on fee and 10% of amount collected on cases not subject to the add-on fee.  The 10% fee applies to cases prior to June 18, 2003 or approximately $485,000 of our outstanding balance.

 

 

 

Exhibits

 

 

CITY OF SUGAR LAND

                                               GENERAL SERVICES CONTRACT

                                                                    Revised 10/16/06

 

This Contract (Contract) is made between the City of Sugar Land, Texas (City), and Contractor.  The City and Contractor agree to the terms and conditions of this Contract, which consists of the following parts: 

 

I.   Summary of Contract Terms           

II.  Signatures

III. Standard Contractual Provisions

IV. Special Terms and Conditions

V.  Contract Attachments

 

I. Summary of Contract Terms.      

 

Contractor:                                      McCreary, Veselka, Bragg and Allen, P.C.      

Description of Services:                   Municipal Court Collection Services

Maximum Contract Amount:              30% of all Fines and Fees Collected

Effective Date:                                 January 4, 2008

Termination Date:                             January 3, 2009

Renewal: The City may extend this Contract for two additional one-year terms on the same terms and conditions as provided for in the original term, by giving written notice of the extension to the other party at least 30 days prior to the termination date.    

 

II.  Signatures.  By signing below, the parties agree to the terms of this Contract:    

 

 

CITY OF SUGAR LAND*                                              CONTRACTOR:

 

 

________________________________                      __________________________________

Signed by:   Date: __________________                    Title:______________________________

____City Manager 

____Assistant City Manager                          Date:  _____________________________ 

____Director 

____ Program Manager

 

*Contract Signature Authority:           Program Manager -$2,999 or less

                                                      Director - $3,000 to $15,000

                                                      Executive Director/City Manager/Assistant City Managers - $15,000 to $24,999         

Attest:  City Secretary

 

_________________________________

 

Reviewed for Legal Compliance:

 

 

 

III.  Standard Contractual Provisions.

 

A.  Definitions.   

 

Contract means this Standard Services Contract.   

 

Services means the services for which the City solicited bids or received proposals as described in this Contract.

 

B.  Services and Payment.  Contractor will furnish Services to the City in accordance with the terms and conditions specified in this Contract.  Contractor will bill the City for the Services provided at intervals of at least 30 days, except for the final billing. The City shall pay Contractor for the Services in accordance with the terms of this Contract, but all payments to be made by the City to Contractor, including the time of payment and the payment of interest on overdue amounts, are subject to the applicable provisions of Chapter 2251 of the Government Code.

      

            C.  Termination Provisions. 

 

            (1) City Termination for Convenience.   Under this paragraph, the City may terminate this Contract during its term at any time for the City’s own convenience where the Contractor is not in default by giving written notice to Contractor.  If the City terminates this Contract under this paragraph, the City will pay the Contractor for all services rendered in accordance with this Contract to the date of termination.  

 

            (2) Termination for Default.  Either party to this Contract may terminate this Contract as provided in this paragraph if the other party fails to comply with its terms.  The party alleging the default will give the other party notice of the default in writing citing the terms of the Contract that have been breached and what action the defaulting party must take to cure the default.  If the party in default fails to cure the default as specified in the notice, the party giving the notice of default may terminate this Contract by written notice to the other party, specifying the date of termination.  Termination of this Contract under this paragraph does not affect the right of either party to seek remedies for breach of the Contract as allowed by law, including any damages or costs suffered by either party.      

 

(3) Multi-Year Contracts and Funding.  If this Contract extends beyond the City’s fiscal year in which it becomes effective or provides for the City to make any payment during any of the City’s fiscal years following the City’s fiscal year in which this Contract becomes effective and the City fails to appropriate funds to make any required Contract payment for that successive fiscal year and there are no funds from the City’s sale of debt instruments to make the required payment, then this Contract automatically terminates at the beginning of the first day of the City’s successive fiscal year of the Contract for which the City has not appropriated funds or otherwise provided for funds to make a required payment under the Contract.

 

D.  Liability and Indemnity.  Any provision of any attached contract document that limits the Contractor’s liability to the City or releases the Contractor from liability to the City for actual or compensatory damages, loss, or costs arising from the performance of this Contract or that provides for contractual indemnity by one party to the other party to this Contract is not applicable or effective under this Contract.  Except where an Additional Contract Document provided by the City provides otherwise, each party to this Contract is responsible for defending against and liable for paying any claim, suit, or judgment for damages, loss, or costs arising from that party's negligent acts or omissions in the performance of this Contract in accordance with applicable law. This provision does not affect the right of either party to this Contract who is sued by a third party for acts or omissions arising from this Contract to bring in the other party to this Contract as a third-party defendant as allowed by law.

 

E.  Assignment.  The Contractor shall not assign this Contract without the prior written consent of the City.

 

F.      Law Governing and Venue.  This Contract is governed by the law of the State of Texas and a lawsuit may only be prosecuted on this Contract in a court of competent jurisdiction located in or having jurisdiction in Fort Bend County, Texas. 

 

G.  Entire Contract.  This Contract represents the entire Contract between the City and the Contractor and supersedes all prior negotiations, representations, or contracts, either written or oral.  This Contract may be amended only by written instrument signed by both parties.

 

            H. Independent Contractor.  Contractor shall perform the work under this Contract as an independent contractor and not as an employee of the City.  The City has no right to supervise, direct, or control the Contractor or Contractor’s officers or employees in the means, methods, or details of the work to be performed by Contractor under this Contract.  The City and Contractor agree that the work performed under this Contract is not inherently dangerous, that Contractor will perform the work in a workmanlike manner, and that Contractor will take proper care and precautions to insure the safety of Contractor’s officers and employees.

 

I.  Dispute Resolution Procedures.  The Contractor and City desire an expeditious means to resolve any disputes that may arise between them regarding this Contract.  If either party disputes any matter relating to this Contract, the parties agree to try in good faith, before bringing any legal action, to settle the dispute by submitting the matter to mediation before a third party who will be selected by agreement of the parties. The parties will each pay one-half of the mediator’s fees.  

 

J.       Attorney’s Fees.  Should either party to this Contract bring suit against the other party for breach of contract or for any other cause relating to this Contract, neither party will seek or be entitled to an award of attorney’s fees or other costs relating to the suit.   

 

            K.  Severability.  If a court finds or rules that any part of this Contract is invalid or unlawful, the remainder of the Contract continues to be binding on the parties.   

 

            IV.  Special Terms or Conditions. None.

 

            V.  Additional Contract Documents.  The following specified documents attached to this Contract are part of this Contract, except as follows:  any provision contained in any of the Contractor’s Additional Contract Documents specified below that conflicts with a Contract provision not included in the Contractor’s Additional Contract Documents, does not apply to this Contract. 

 

            A.  Contractor’s Additional Contract Documents:

 

                  1.  McCreary, Veselka, Bragg & Allen, P.C. Proposal Dated November 29, 2007 (88 pages)

 

            B.  City’s Additional Contract Documents:

 

                  1.  City of Sugar Land Request for Proposal for Municipal Court Collection Services

                        RFP No. 2008-004 (19 pages)

                  2.  Insurance for Designated Professional Service Contracts [Form PU-111F-2 (3 pages)]

 

 

 

 

END OF DOCUMENT