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HomeMy WebLinkAboutContract 43450 * CITY SECMAW: CONTRACT We STATE OF TEXAS AGREEMENT FOR ROFESSIO AL COLLECTION SERVICES COUNTY F TAR AI T x THIS AGREEMENT FOR OFESSIONAE COLLECTION SERVICES (Agreement) is made and entered into by and between the Cite of Fort worth (City), a home- rule municipal corporation of the State of Texas, acting by and through its duly authorized Assistant City Manager, and Einebar er Go an Blair & Sampson, E.E.P. (Contractor), a Texas law firm, acting by and through its duly authorized Managing Partner. I. Scope of Services (a) In General Contractor covenants and agrees, with good faith and due diligence, to perform professional collection services on all debts and accounts receivable referred to Contractor by the City's Municipal Court Services Department pursuant to this Agreement ( Services shall include all activities and functions generally required of a professional ional firm in the business of collecting delinquent fines, fees, restitution, and ether debts and costs for a municipality. At a minimums Contractor shall: 1. Make at least three contacts within a -month period from the date the Contractor receives the referral data from the City. 2. Make at least one 1 written contact with the debtor via postal services within 60 days of receiving the referral data from the City, unless the Contractor receives written approval from the Director of Municipal Court Services to waive this requirement. The format and language of all written correspondence shall be expressly approved by the City. 3. Make at least one 1 telephone contact with the debtor within thirty (30) days of receiving the referral data from the City unless the Contractor receives written approval from the Director of Municipal Court Services to waive this requirement. The general format of all telephone scripts shall be expressly approved by the City. For purposes of this section, "'contact" shall mean exhausting (subject to the limitations established by Section 1 b all available means to communicate with the debtor using the postal service, telephone, or any other method that is reasonably accessible to the Contractor, r IAL RECORD Y SECRETARY 07-27-12 A09 : 06 IN Tj FT3 WORTH,TX i (b) Limitations on Contact No contacts will be made in person by the Contractor to the debtor. Any and all written or telephone contacts shall cease upon notice from the City that the referral has been withdrawn or that the underlying case has been handled in some moray that precludes contact. No contacts shall be made after the effective date of termination r expiration of this Agreement. (c) Allocation of Costs Contractor shall bear all costs associated with its collection efforts, including, but not limited to, personnel salaries, document reproduction and mailing costs, mileage charges, costs of postal or other delivery service, and charges for telephone and iDternet service, (d-) Standards of Care and Conduct All services provided by the Contractor hereunder shall be performed with the degree of ease and skill ordinarily exercised under similar circumstances by competent members of the debt collection services profession in the State of Texas, and Contractor shall be responsible for all services provided hereunder. Contractor shall perform all duties and services and make all decisions called for under this Agreement promptly and without unreasonable delay and will give its obligations under this Agreement such priority as is necessary to cause the Services to be timely and properly performed. In communicating with debtors, Contractor shall make no promises or offers of delay or stay of execution of any unpaid citation or warrant, nor shall Contractor eater into any agreement purporting to authorize a delay of payment, suspension of rrant, or suspension of fine owed. Vie) Trainina of Personnel Contractor is responsible for the hiring, training, and supervising of all personnel necessary for the performance of this Agreement. Contractor hereby represents, promises, and warrants to the City that Contractor is financially solvent and possesses sufficient experience, authority, personnel, and working capital to complete the Services. (f) Reports and Information from Contractor a Contractor shall prepare and provide to the City reports once each calendar quarter documenting the performance of Services by the Contractor under this Agreement. The report shall be submitted to the Director of Municipal Court Services in the months of April, July, October, and January, in a Microsoft Excel Spreadsheet electronic format Agreement for Professional Coljcction Services Page 2 of 18 (.x1s) format and contain all information for the preceding calendar quarter as required herein. The reports shall indicate the number of new referrals received by the Contractor from the City dun*ng the preceding three months as well as the total number of referrals on which any activity occurred during the preceding three months "active referrals"). For each active referral, the report shall include: the d ebtord efend ant's name and date of birth; the Municipal Court case number (s); the City- reported case amounts due; and the number, types, and date(s) of any contacts made "active referral information" . In addition, if the Contractor received any direct payments from debtors during the preceding three months, the report shall indicate the total amount of such payments and for each such payment shall include all of the active referral information as well as the amount of payment(s) due to Contractor. At least once per month the Contractor shall provide the City with any updated debtor contact information that the Contractor has obtained; this information shall be furnished on portable electronic media in an Extensible Markup Language (.ml) format. Further, Contractor shall provide such information on its activities concerning the referred debts and accounts receivable as may be reasonably requested by the Director of I Municipal Court Services or that person's designee. Contractor shall work with the City to develop customized reports which will be available for the City to access and print, at no cost to the City, through the Contractor's "Clientview" system. Contractor agrees that on a wily basis it will provide the City with any updated documentation provided by debtors that's related to citations referred to Contractor for collection. The Contractor agrees to provide such documentation in a pdf format to a City e-mail address selected by the City. (g) Termination of Collection At least once a month Contractor shall provide the City with a report listing the cases that Contractor would life to cease its efforts at collection. The report should contain the case number, name of debtor, the amount due, and the reason why the Contractor believes It is in the best interest of the City and Contractor to cease collection efforts. If the City lodges no objection within thirty days of its receipt of the report, then the Contractor can administratively terminate collection efforts. 2. Term; T r in ti on a Pn'mary Term Agreement for Professional Co)Ie tion Services Page 3 of 1 The primary term of this Agreement shall be for a period of sixty 60 months beginning August 1, 2012, and ending July 31, 2017, unless terminated sooner in accordance with this section. b Renewal Options In addition to the primary term the City may, at its discretion, renew this Agreement for up to two additional, one-year renewal periods on the same terms and conditions by providing written notice to Contractor at least ninety 0 days before the end of the then- current term. c Termination at will City may terminate this Agreement at any time, with or without cause, by giving thirty (30.) days' written notice to the Contractor. Following receipt of the notice, the Contractor will continue to perform collection services under the terms of this Agreement through the effective date of termination. Within one month of the effective date of termination, Contractor shall provide City with a final statement showing a detailed history of each referred debt and account receivable that remains outstanding. d Termination for Cause In the event of breach of any the provisions of this Agreement by Contractor, the City agrees to notify the Contractor within 30 days of its discovery of the breach and give the contractor an additional 30 days to cure the breach. In the event that the City is not satisfied with the Contractor's attempt to cure the breach, the City may terminate this Agyreement thereafter by giving written notice to Contractor. 3. Referrals (a) General Referral Criteria The City may, in its discretion and pursuant to the criteria listed herein, refer to the Contractor debts and accounts receivable (such as unpaid fires, fees, court costs, forfeited bonds, or restitution) ordered paid by the Port worth Municipal Court or by a hearing officer serving the City under Chapter 682 of the Texas Transportation Code. No debt or account receivable will be referred to the Contractor until such amount is more than 6 days past due. For purposes of this Agreement, an amount is considered more than 60 days past due if it remains unpaid on the 61't day after the date on which the debt or account receivable must be paid in full as determined by the court or bearing officer, (b) Addition of Collection Service Fee In accordance with A rtiele 103.0031 b o f the Texas Code of Criminal Procedure, prior to making a referral to the Contractor, the Port worth Municipal Court Services Agreement for Professional Collection services Page 4 of 1 Department shall calculate and assess a thirty percent (30%) collection fee on all eligible debts and accounts receivable. For purposes of calculating and assessing the collection fee, the eligible debt or account receivable shall not include a charge imposed pursuant to Chapter 706 of the Texas Transportation Code. For purposes of this Agreement, are eligible debt or account receivable is one that is more than 60 days past due and that relates to an offense that occurred on or after June 18, 2003. A debt or account receivable is not eligible if it relates to an offense that occurred prior to June 1 , 2003. Both eligible and non-eligible debts and accounts receivable may, in the City's discretion, be referred to the Contractor for collection services. (c) Limits on Referrals No debt or account receivable shall be submitted to the Contractor if such amount relates to a "JV" case or any other case involving an individual who is less than eighteen 18 years of age.1n the event such a debt or account receivable is inadvertently referred to the Contractor, the Contractor shall immediately notify the City, and the debt or account receivable shall be withdrawn. The City shall retain complete discretion regarding the number and types of debts and accounts receivable to be submitted to the Contractor for collection services. (d) Character and Use of Referred Information City makes no express or implied warranty to the Contractor regarding the accuracy of any data provided on any referred debt or account receivable, nor does it make any express or implied warranty concerning the value or collectability of any such debt or account receivable. All information supplied by the City to the Contractor shall be kept confidential and disclosed to Contractor's employees only on a creed-to-know basis for use solely for the purpose of performance of the Services, ]disclosure of information by Contractor or its employees to a debtor or spouse of a debtor shall occur only in accordance and compliance with applicable debt-collection laws and regulations. (e) withdrawal of]deferrals The City may at any time and in its sole discretion withdraw any debt or account receivable that was previously referred to the Contractor. (f) Method of Making Referrals All data regarding debts and accounts receivable being referred to the Contractor shall be provided on portable electronic media in an extensible Mark-up Language .xrnl format, Agreement for Professional Collection Services Page 5 of 18 it or through an interface with the City's case management system. If the City opts to enhance or upgrade Municipal Court's electronic document management software to include a collections module, the City and Contractor shall negotiate in good faith to amend this Agreement to allow for use of data compatible with such module. Beginning on August 1, 2012, the City shall provide Contractor with an initial group of referrals, which shall include all eligible debts and accounts receivable that were outstanding as of July 31, 2012. The Contractor shall not contact more than Seventy-five Thousand ,000 individual debtors/defendants per month, unless prior approval is obtained from the Director of the Municipal Court Services Department. At least once every three months City shall provide Contractor with new referrals and updated information on existing referrals, including notice of withdrawals. The City shall provide the Contractor with daily updates on any activity for uses that have been referred. (g) Pa eats b Debtors In all written and telephone contacts, the Contractor shall instruct debtors to make all payments and direct all inquiries regarding the debts and accounts receivable and their associated cases to the City of Fort worth Municipal Court Services Department at the following address: A.D. Marshall Public Safety & Courts Building 1000 Throkmorton Street Fort worth, Texas 7 6102)-63 8 2 (817) 392-6700 The Contractor shall not solicit or accept any payment from a debtor. if the Contractor receives any payment, the Contractor shall immediately remit the full amount of such payment to the Municipal Court Services Department at the address listed above, If Contractor receives a payment related to are active warrant, Contractor shall require the debtor to execute a waiver releasing and absolving the City of liability for any actions that might occur between the time of payment to Contractor and the time such payment is received by the City and entered into City records. 4. Consideration (a) In General In exchange for providing the Services detailed above, the Contractor shall be entitled to that portion of the thirty percent % collection fee assessed in accordance with Section 3(b) of this Agreement and Article 103.003 1 b of the Texas Code of Criminal Procedure that is actually received by the City. (b) Limitations on Collection Fee Agreement for Professional Collection Services Page 6 of 1 No collection fee shall be assessed, collected, or paid to Contractor for any debt or account receivable that is not "eligible" as that term is defined in Section b of this Agreement, nor shall any collection fee be assessed, collected, or paid to Contractor on a charge imposed pursuant to Chapter 706 of the Texas Transportation Code. In accordance with Article 103.0031 d of the Texas Code of Criminal Procedure, if the court or hearing officer of original jun*sdiction has determined the debtor is indigent, or has insufficient resources or income, or is otherwise unable to pay all or part of the underlying fine or costs, the debtor is not liable for and the Contractor shall not receive the collection fees. City is under no obligation to pay collection fees under these circumstances. If, for any reason, the City receives less than the full amount of a debt or account receivable (including all fines, fees, restitutions, administrative and court costs, any other court-ordered or hearing-officer-ordered debt or cost, and the collection fee), the allocation to the Texas Comptroller, the City, and the Contractor shall be reduced proportionately in accordance with Article 103.0031(e) of the Texas Code of Criminal Procedure. Pursuant to Article 103.003 1 b the Texas Code of Criminal Procedure, no collection fee shall apply or be paid to the Contractor if i the underlying case has been dismissed by a court or hearing officer of competent jurisdiction or 11 underlying amounts have been satisfied through time-served credit or community service. City is under no obligation to pay collection fees under these circumstances. In the event an eligible debt or account receivable is settled partially through time-served credit and partially through monetary payment, the collection fee shall apply to the portion of the debt that is paid, and the Contractor shall be entitled to such collection fees to the extent they are actually received by the City. The parties agree that the 0% collection fee may be waived during the statewide warrant Roundup on a portion of the delinquent accounts, as agreed upon by the parties by January I" of each year of the contract. Only debtors who come to one of the Municipal Court payment locations in person and pay their citations in full will be eligible for the collection fee waiver. _ (c) Pa nients to Contractor City sball make payments to the Contractor once per calendar quarter of all collection fees that have been imposed under Section b of the Agreement and that have been actually received by the City. These payments will be accomplished in coordination with the quarterly payments made to the State of Texas by City. Quarterly payments from the City shall be accompanied by a report in a Microsoft Excel Spreadsheet (.is) format documenting referrals that were resolved in the preceding three months. For referrals that were resolved by full or partial payment, the report shall include the following information: the debtor/defendant's name and date of birth, the Municipal Court case number(s), the original City-reported case amount due, the Agreement for Professional Collection Services Page 7 of 1 } t amount of money actually received (including any modified case amount(s) due), and the amount of payment being remitted to Contractor. For referrals that were resolved by any non-monetary means (including but not limited to, dismissal, a finding of indigence, and debtor/defendant serving jail time), the report shall include the following information: the debtor/defendant's name and date of birth, the Municipal Court case number(s), the original City-reported case amounts due, and a brief explanation of the nor-monetary resolution. (d) Additional Consideration In addition to providing Services under this Agreement, Contractor agrees to: 1. Fay the City Twenty-Five Thousand Dollars ,o .00 no later than October 1 of each year this Agreement is in effect for use by the City for promotional and special enforcement efforts associated with collections of debts and accounts receivable. Fay the City Fifteen Thousand Dollars 15,000.00) no later than October 1 of each year this Agreement is in effect for use by the City for supplemental law enforcement services during Warrant Round-Ups or special initiatives as designated by the City Marshal. 3. Be responsible for an on-line internet payment portal capable of processing check and electronic funds transfers from a bank or credit card account of debtor/defendant directly to one or more specifically designated City accounts. No payment processed through such portal shall be passed through or deposited in any account belonging to or associated with the Contractor. 4. Explore an appropriate method of utilizing social media cutlets to aid in the collection of debts and accounts receivable. The use and operation of such social media outlets must be in compliance with the City's regulations on use of social media. 5. Be responsible for a specialized dialing system that will be utilized during Warrant Round-Ups or special initiatives designated by the City Marshal to contact individuals with warrants and provide information about the round-up or special initiatives and payment opportunities. 6. Provide funding for the cost of posting a list compiled by Municipal l Court of the top 50 offenders in the local newspapers on a quarterly basis. 7. Explore options and provide assistance related to the implementation of the Texas Scofflaw program. 8. Develop, maintain, and host an ors--line portal that would provide the opportunity for recipients of a collection letter to access information about their citation . Agreement for Professional Collection Services Page 8 of 1 9. Coordinate with the City and be responsible for the costs of any future interfaces related to external collections within the current case management system or with any new case management system selected by the City during the term of this Agreement. 10. Designate an employee of Contractor who will research debtor disputes and ill provide updated information related to the dispute, including documents, contact inform ation, addresses, and phone numbers to the City. These payments and costs shall be made out of Contractor's separate farads and not from any monies that Contractor receives as compensation under this Agreement. These payments shall be due and payable regardless of whether Contractor's collection efforts result in any recovery of the accounts receivable or of Contractor's fee. Agreement Axministrator The Director of Municipal Court Services shall serve as administrator of this Agreement cement for the City and is authorized to act on behalf of and bind the City with respect to all day-to-day matters related to administration of this Agreement. Any presentation of collection information provided to City Boards and/or City Council must receive prior approval from the Director of Municipal Court Services. However, the Director of Municipal Court Services is not authorized to execute this Agreement, any amendment hereto, or any assignment hereof; such action shall require the signature of the City Manager or are Assistant City Manager in order to be binding on the City. All Services shall be coordinated with and performed to the satisfaction of the Director of Municipal Court Services, who may meet with Contractor on a monthly basis to reconcile all collected accounts. For purposes of this Agreement, the term "Director of Municipal Court Services" shall also include that person's authorized representative. In emnl fleati n and Release Contractor covenants and agrees to indemnify, hold harmless, and defend the City, its officers, agents, and employees from any and all claims or suits for property damage or loss and/or personal injury (including death) to any and all persons, o f whatsoever kind or character, whether real or asserted, arising out of the work and services to be performed hereunder by Contractor, its officers, agents, employees, or subcontractors, WHETHER OR NOT CAUSED, IN WHOLE OR IN PART, BY THE ALLEGED NEGLIGENCE OF THE OFFICERS., AGENTS, OR i OY S OF THE CITY. Contractor covenants and agrees to indemnify, hold harmless, and defend the City, its officers, agents, and employees from any and all claims or suits or for any expense an'sing out of or in connection with, directly or indirectly, the collection Agreement for Professional Collection Services Page 9 of 1 services performed under this Agreement WHETHER OR NOT SAID LOSS, DAMAGE, LIABILITY, OR EXPENSE IS A RESULT of THE ALLEGED NEGLIGENCE of THE CITY, ITS OFFICERS, AGENTS, OR EMPLOYEES. This indemnity shall include without limitation any reasonable and necessary attorney's fees for the defense of any claim hereunder including any appeal of said claims. The Indemnity provision of this Agreement shall have no application to any claim or demand that is the result of the sole negligence or fault of'the City, its officers, agents, or employees. In the event that litigation is initiated against the City by a defendant contacted by the Contractor in the collection activity of the Contractor, then the Contractor agrees to represent the City in such litigation as a part of the services compensated in this Agreement. In addition, by executing this Agreement, Contractor releases the City, its officers, agents, and employees from any liability for property damage or loss ardor personal injury (including death) incurred during performance of this Agreement. "7. Insurance and Bonding Contractor shall take out and maintain such policies of insurance and bonds as may be required by the City for Contractor's operations under this Agreement. At present, such insurance and bonding shall consist of at least the following: Workers' Compensation Insurance Contractor must provide workers' Compensation Employer's Liability insurance for all of its employees and, in the event any work is subcontracted, Contractor will require each subcontractor to provide workers' Compensation insurance in accordance with the requirements of the City; including Coverage B. Minimum coverage amounts for Workers' Compensation/Employer's Liability insurance are as ollo rs: 1 — Bodily Injury by Disease per employee $5001000 —Bodily Injury by Disease aggregate $1001000 —Bodily Injury by Accident Professional Liability Insurance Contractor is required to procure insurance providing the following minimum coverage amounts: 17 —per claim or event Agreement for Professional Collection Serviccs Page 10 of 18 1, 00 — annual aggregate Any deductible will be the sole responsibility of the Contractor and may not exceed $50,000 without the written approval of the City. The retroactive or prior acts date of such coverage shall not be after the effective date of this Contract. This policy will provide coverage for all claims the Contractor may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Contractor's professional services required under the contract, and include an extended reporting period provision of a minimum of three years following completion of the work. General Reauirements Applicable to All Insurance: Certificates of insurance shall be delivered to the City of Fort Worth error to commencement of work, addressed to the attention of Sue Haupt, Risk MaDagement, 1000 Throc rnorton Street, Fort worth, Texas 76102. • The City's Risk Manager shall have the right to review and evaluate Contractor"s insurance coverage and to make reasonable requests for deletion, revision, or modifications of particular policy terms, conditions, limitations, or exclusions when deemed necessary and prudent by the City based upon charges in statutory la w, court decision, or the claims history of the industry and/or of the Contractor. Contractor shall comply with such requests as a condition precedent to the effectiveness of this Agreement. Contractor shall be afforded ninety days to implement such changes, provided, however, that no change shall be required where policy provisions are established by later or regulations binding upon the Contractor, its insurer', or the policy underwriter. • The City, its officers, employees, and servants shall be endorsed as an additional insured on each insurance policy required under this Agreement with the exception of Contractor's worker's er's compensation insurance policy. • Each insurance policy shall be endorsed to provide the City a minimum thirty o days' notice of cancellation, non-renewal, and/or material change in policy terms or coverage. Each certificate shall be signed by an agent authorized to bond coverage on behalf of the insured, be complete in its entirety, and slow complete insurance carrier names as listed In the most-recent A.M. Best Property & Casualty Guide. • All policies shall include a waiver of Subrogation (Rights of Recovery)ery) in favor of the City of Fort Worth. • Any deductible in excess of $5,000.00, for any policy that does not provide coverage on a first-dollar basis, must be acceptable to and approved by the City's Risk Management Division Agreement for Professional Collection SeTvices Page 1 1 of 18 a Contractor's insurance policies shall each be endorsed to provide that such insurance is primary protection and that any self-funded or commercial coverage maintained by City shall not be called upon to contribute to loss recovery • The insurers for all policies must be licensed and/or approved to do business in the State of Texas. Except for workers" compensation, all insurers must have a minimum rating of A VII in the current A. M. Best Key Rating Guide or have reasonably equivalent financial strength and solvency to the satisfaction of Risk Management. If an insurer's rating does not meet the minimum requirement, written approval of Risk Management is required. • If insurance policies are not written for specified coverage limits, an Umbrella or Excess Liability insurance for any differences is required. Excess Liability shall follow form of the primary coverage. • Unless otherwise stated, all required insurance shall be written on an "'occurrence basis." if coverage is underwritten on a "claims made" basis, the retroactive date shall be coincident with or prior to the date of this Agreement, and the certificate of insurance shall state that the coverage is "claims made" and indicate the retroactive date. • All insurance coverage shall be maintained for the duration of this Agreement and for three years following completion of the services or for the warranty period, hichever is longer. • Contractor shall annually provide the City's Risk Management Division with current certificates of insurance to evidence coverage in accordance with this Agreement. • policies shall contain no exclusions by endorsements that nullify the required lines of coverage or that decrease the limits of coverage unless such endorsements have been approved in advance, in writing by the City's Risk Managex. With the exception of worker's compensation insurance, the City may consider alternative coverage or risk treatment measures through insurance pools or risk retention groups in lieu of traditional insurance, prior to employing such alternative coverage, Contractor must obtain City"s written approval. City shall not be responsible for the direct payment of insurance premium costs for Contractor's insurance. • During any team of this Agreement, Contractor shall report to the Risk Management Division in a timely manner any loss occurrence that could give rise to a liability claim or lawsuit or that could result in a property loss. Agreement for Professional Collection Services Page 12 of 1 dk • Contractor's liability shall not be limited to the specified amounts of insurance required herein. • Any failure on part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirements specified herein. Employee Dishonesty Bond Contractor shall provide an employee dishonesty bond in an amount of at least One Million Dollars 1.000,000.00) per event, to run in favor of the City as its interest may appear. For a bond to be acceptable it must be executed by a corporate surety authorized to do business in the State of Texas and otherwise acceptable to the City. Performance Woad or Irrevocable Standby Letter of Credit Before commencing work under this Agreement, Contractor shall furnish City with a performance Bond or Irrevocable Standby fetter of Credit in the amount of Fifty Thousand Dollars o,000.00 guaranteeing Contractor's performance of the terms and conditions of this Agreement. For a letter of credit to be acceptable it must be irrevocable and be issued by a federally insured (FDIC) banking institution with a debt rating of"]A" or higher by the FDIC, "A" or higher by Standard & Foor's, or "A"' or higher by Moody's Investors, or a comparable rating by a comparable rating system acceptable by the City. For a bond to be acceptable it must be issued by a corporate surety authorized to do business in the State of Texas and otherwise acceptable to the City. 8. Independent Contractor Contractor shall perform all work and services hereunder as an independent contractor, and not as an officer, agent, or employee of the City. Contractor shall have exclusive control of, and the exclusive right to control, the details of the work per formed hereunder and all persons performing same, and Contractor shall be solely responsible for the acts and omissions of its officers, agents, employees, and subcontractors. Nothing herein shall be construed as creating a partnership or joint venture between the City and Contractor, their respective officers, agents, employees, subcontractors, or any of them. The doctrine of porgy deat superior shall have no application as between City and Contractor. 9. Compliance with Law Agreement.for Professional C ol I ea ion servi ces Page 13 of 1 In performing collection services hereunder, Contractor shall comply at all times with all federal, state, and local laws, regulations, and ordinances (including policies of the City) that in any manner affect the Contractor or the Services, including in particular those related to debt collection. In accordance with Section 6 of this Agreement, Contractor shall indemnify and bold harrW ss the City, its officers, agents, employees, and separate contractors against any claim arising from the alleged violation of such a law, ordinance, or regulation by the Contractor, its officers, agents, employees, directors, owners, or separate contractors. 1 . Permits Contractor shall obtain, at its expense, any necessary permits from any goexmmental authority for the performance of the services hereunder. 11. Records, Statements, Reports For a period of three years after final payment under this Agreement or any subcontract, Contractor and its permitted subcontractors shall keep and maintain accurate records relating to activity on debts and accounts receivable referred by the City to Contractor. 1 * Right to Audit (a) Contractor agrees that the City shall, until the expiration of three years after final payment under this Agreement, have access to and the right to examine any books, documents, papers, and records of the Contractor involving transactions relating to this Agreement. Contractor agrees that the City shall have access during normal working hours to all necessary Contractor facilities and shall be provided adequate and appropriate workspace in order to conduct audits in compliance with the provisions of this section. (b) Contractor further agrees to include in any subcontractor agreements hereunder a provision to the effect that Subcontractor agrees that the City shall, until the expiration of three years after final payment under the subagreernent, have i access to and the right to examine any books, documents, papers and records of such subcontractor, involving transactions relating to the ubagreement; and ii access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate workspace in order to conduct audits in compliance with the provisions of this section. (c) Nothing herein shall be construed as limiting City's rights of access to any examination of books, documents,papers, and records that may exist independently of this provision. 1 . Notices Agreement for Professional Collection Services Page 14 of 1 Notices required or allowed to provided hereunder shall be sufficient if forwarded to the other party by hand-delivery or via U.S. Postal Service certified mail, postage prepaid, to the address of the other party shown below; Charles W. Daniels, Assistant City Manager Stephen T. Meeks., Managing Partner City of Fort North Lineb r er Goggan Blair & Sampson, LI P 1000 Throcknmorton St. 100 Throckmorton, Suite 300 Port worth, Texas 76102 Port Worth, Texas 76102 (817) 392=6153 (817) 1 -9515 Such notice shall be deemed to have been received on the third day after it was deposited with the United States Postal Service, directed to the last known address of the ogler party, with applicable postage charges prepaid. 1 . Force Majeure If either party is unable, either in whole or part, to fulfill its obligations under this Agreement due to acts of God; strides, lockouts, or other industrial disturbances; acts of public enemies; wars; blockades; insurrections; mots; epidemics; public health cases; earthquakes; fires; floods; restraints or prohibitions by any court, board, department, commission, or agency of the United States or of any state; declaration of a state of disaster- or of emergenc y by the federal, state, counter, or City government in accordance with applicable law; issuance of a Level Orange or Level Red Alert by the United States Department of Homeland Security; any arrests and restraints; civil disturbances; or explosions; or some other reason beyond the party's reasonable control (collectively, "Force Majeure Event"'), the obligations so affected by such Force Majeure Event will be suspended only during the continuance of such event, 1 . MiWBE Participation Contractor agrees to comply with the City's Minoru /women's Business Enterprise (M/WBE) Ordinance and any subsequent amendments thereto by committing to five percent (5%) MIWBE participation, 1 . Assignment • with the exception of subcontracting work to arable Contractor to comply with M/WBE requirements of this Agreement, Contractor may not assign or transfer any interest in the Agreement nor delegate the performance of any duties hereunder without the written consent of the City Manager or an Assistant City Manager. Any such attempted assignment without prior written consent shall be void. Consent of the City to an assignment shall not relieve the Contractor of liability in the event of default by its assignee. Agreement for Professional Collection Services Page 15 of 1 17. Nondiscrimination As a condition of this Agreement, Contractor covenants that it will take all accessary action to insure that in connection with any work under this Agreement, the Contractor, will not discriminate in the treatment or employment of any individual or groups of individuals on the grounds of race, color, religion, national origin, age, sex or physical handicap unrelated to job performance, either directly or indirectly or through contractual or other arrangements. 1 . Choice of Law; Venue This Agreement shall be construed in accordance with lave of the State of Texas. Should any action at law or in equity arise, directl y or indirectly, out of the terms of this Agreement, venue shall be in the state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort worth Division. 1 . Parties Bound This Agreement shall be binding upon and inure to the benefit to the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and permitted assigns. Each undersigned signatory represents and warrants that he or she is the duly authorized representative of the party on whose he or she is signing and is authorized to execute this Agreement. Nothing herein shall be construed as creating a personal liability on the part of an City officer, employee., or agent. o. S v rahilit In the event any one or more of the provisions contained in this Agreement should for an reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 1. Amendment i i No amendment, modification, or alteration of the terms hereof shall be binding unless the same is in writing, dated subsequent to the date hereof, and duly executed by the parties hereto. Agreement fY Professional Collection Services Page 16 of l � w 22, Rights and Remedies Cumulative The rights and remedies provided by this Agreement are cumulative, and the use of any one right or remedy by either party shall not preclude or waive that party's r'ght to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. 2 . Waiver of Default No waiver by either party hereto of any default or breach of any term, condition, or covenant of this Agreement shall be deemed to be a waiver of any other breach of the same or any other term, condition., or covenant contained herein. 24. Governmental Powers Both parties agree and understand that the City does not waive or surrender any of its governmental powers by execution of this Agreement. 25, Headinors Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 2 . Entire Acyreement This written instrument (together with any attachments, exhibits, and appendices) constitutes the entire understanding between the parties concerning the work and services to he performed hereunder, and any prior or contemporaneous, oral or written agreement that purports to vary from the terms hereof shall be void. [SIGNATURES APPEAR OIL FOLLOWING PAGE� i Agreement for Professional Collection Services Page 17 of 19 EXECUTED in multiple originals on this, the 04ay of , 201 2) CITY of FORT WORTH, TEXAS LINEBARGER GoGGAN GLAIR SAMPSON, L.L.P. Ch W. Daniels Stephen T. Meeks Assistant City Mara er Managing Partner Date Signed: 24 /0 Date Signed: ATTEST: WITNESS. °00 Wa(y Ka yser City Secretary 00 0 0 AQ' 00000 APPROVED AS TO FORD 44 A* AND LA 'TY: a titia Coleman roar Assistant City Attorney M&C C-25713 OFFICIAL RECORD CITY SECRETARY Agreement for Professional Collection Services FT-9 WORTHs TIC Page 18 of 18 M&C Review littp://apps. fwn t. rg/council—Pa et/m _re ie . '?[ 17 79& un ll... Offick)l ste of the Cty of Fart Wodhj Tex% CITY COUNCIL AGENDA FORT WORT I I COUNCIL ACTION: Approved on 7110/2012 DATE: 7110/2012 REFERENCE ENCE C-25713 LOG EXTERNALC LLECTI l S2 No.: NAME: 1 CODE: C TYPE: NON-CONSENT PUBLIC N HEARING: SUBJECT: Authorize Execution of a Professional Services Agreement with Linebarger Goggan Blair and Sampson, LLB, for Collection of Delinquent Parking and Criminal Citations (ALL COUNCIL DISTRICTS) f �Flil6i.+'i"'. �:'P24iRL =lyli}-'I41-°IYi k'r-\.i}"1NAE � RECOMMENDATION: ION. It is recorr mended that the City Council authorize the execution of a Professional Services Agreement with Linebarger Goggan Blair and Sampson, LLP,for collection of delinquent parking and criminal citations. DISCUSSION: In an effort to improve collection of delinquent civil parking and criminal citations, the Municipal Court Services Department secured external collections services with Linebarger Goggan Blair and Sampson, LLP, in August 2009. The current contract will expire on July 31, 2012. In advance of this expiration, Municipal Court Services staff, in coordination with the Purchasing Division of Financial Management Services, began the competitive process to select ar vendor to continue this program. The Purchasing Division issued a Bequest for Proposals FP on April 18, 2012, soliciting qualified f irms for collection services for delinquent civil parking and criminal citations. The evaluation criteria included several factors including relevant experience and success in collecting for similar entities, a cpedence, resources and qualifications of the company, delinquent collection philosophy, ability to provide the necessary reporting, amount of additional assistance required from the Staff and cost of the services to be provided to the City. An evaluation panel was made up of representatives from Municipal Court, Financial Management Services and Housing and Economic Development Departments. Proposals were received from 12 vendors. The recommended vendor, Linebarger Goggan Blair and Sampson, LLP, was determined to be the most qualified to perform the services required. Article 103.0031 of the Code of Cominal Procedure allows the City Council to enter into a collections contract with a third party and to authorize the addition of a 30 percent collection fee on certain hypes of dents referred for collection. 0 n June 25, 2002, the Fort Wo rth City Council adopted 0 rdinance N o. 15144, which authorized imposition of the collection fee on court-o rdered debts. lender the proposed contract, delinquent a mo unts with an offense date on or afterJune 18, 2003 that are subject to the 30 percent fee wo uld be referred to the collection agency. Defendants would receive collection notices indicating amounts due (including the collections fee)and waould make payments directly to the Municipal Court. If less than full payrnent is received, amounts due to the collection agency would be reduced proportionately. The Municipal Court will be responsible for processing payments made by defendants acrd for tracking and monitoring activity and reconciring the collection fee due to L i ne ba rg er Goggan Blair and Sarnpson, LLP. BID ADV EBTISEMENT - This bid was advertised in the Fort f orth Star-Tole ram from April 1 : 2012 through May 16, 2012. The Purchasing Division solicited 14 vendors from the purchasing system database and 12 proposals were received. MfBE —Linebarger Goggan Blair and Sampson, LLP, is in compliance with the City's M1VBF Ordinance by 1 of 2 7/27/2012 11:38 AM M&C Review http://apps.c f v net.org/counc i I_pac ket/mc—r vi . sp`I 1707 9& ounciL. committing to five percent /WBE participation on this project. The City's goal on this project is five percent. AGREEMENT TERM -The initial term of the Agreement will begin August 1, 2012 and expire July 31, 2017. RENEWAL OPTIONS -This Agreement may be renewed for up to two successive one-gear terms at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to s atifr the C ity's obligations during the renewal term. FISCAL I lFOR ATION EITTIFI ATION The Financiai Management Services Director certifies than Binds are available in the current operating budget, as appropriated, of the General Fund. The Municipal Court Se ry ices Department i s responsible for the collection and deposit of funds due to the C itr. To Fund/Account/Centers FROM Fund/Account/Centers 01 431 041 0381000 $2,000,000.00 Got 538140 0381000 $2,000,000.00 Submitted for City Mananees office by: Charles Daniels (6199) originating D cart ent Head: Deidra Emerson 11 Additional Information Contact: Daki ha R. Boone (6737) ATTACHMENTS of 7/27/2012 11:38 AM COLLECTION AGENCY BOND Argonaut Insurance Company (License or Permit - Definite Term) 10101 Reunion Place, Suite 500 San Antonio, TX 78216 Bond No. SUR0013991 KNOW ALL MEN BY THESE PRESENTS: THAT WE, Linebarger, Go an Blair & Samp son LLP, as Principal, and Arq2naut Insurance Com , a corporation duly incorporated under the laws of the State of Illinois and authorized to do business in the State of Illinois, as Surety, are held and firmly bound unto City of Fort Worth ', as Obligee, in the penal sum of Fifty Thousand Dollars ($50,000) Dollars, for the payment of which we hereby bind ourselves, our heirs, executors and administrators, jointly and severally, firmly by these presents. WHEREAS, the Principal has obtained or is about to obtain a license or permit for Collection A..e._C. Pr incipal NOW, THEREFORE, THE CONDITIONS OF THIS OBLIGATION ARE SUCH, that if the ,P I shall faithfully perform all duties and protect said Obligee from any damage caused by the Principal's non-compliance with or breach of any laws, statutes, ordinances, rules or regulations, pertaining to the license or permit issued, then this obligation shall be null and void; otherwise to remain in full force and effect. This bond is for a definite term beginning August 5, 2012, and ending August 5, 2013,, and may be continued at the option of the Surety by Continuation Certificate. PROVIDED, that regardless of the number of years this bond is in force, the Surety shall not be liable hereunder for a larger amount, m in the aggregate, than the penal sure listed above. PROVIDED FURTHER, that the Surety may terminate its liability hereunder as to future acts of the Principal at any time by giving thirty (30) days written notice of such termination to the Obligee. SIGNED SEALED AND DATED this 5th day of Auciust. 2012. Line ger og an, Blair & Sampson, LLP By: Principal Argonaut Ins tiprice comp a'h y By: e John W. Schullar, Attorney-in-Fact 7- Argonaut Insurance Company AS-0025510 25 W. Washington, 6th Floor Bond Number: SURQ Q 1 3 9 9 1 Chicago, 1 60606 POWER OF .ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the Argonaut Insurance Company,a Corporation duly organized and existing under the laws of the State of Illinois and having its principal office in the County of Cook.,Illinois does hereby nominate,constitute and appoint: Joh .Schuler Stephen,.Smi h Tom Mulanax its true and lawful agent and attorney-in-fact,to make,execute,seal and deliver for and on its behalf as surety,and as its act and deed any and all , contracts,agreements of indemnity and other undertakings in suretyship provided,however,that the penal sum of any one such instrument ed hereunder shall not exceed the sum of 15 000 000.00 This Power of Attorney is granted and is signed and sealed under and by the authority of the following Resolution adopted b the hoard erfb irectors of .Argonaut Insurance Company.- "RESOLVED,That the President,Senior Vice President,Vice President,.Assistant Vice President,Secretary,Treasurer Bpd each of them hereby is authorized to execute powers of attorney,and such authority can be executed by use of facsimile signature,which may bed sted or acknowledged by any officer or attorney,of the Company,qualifying the attorney or attorneys named in the given power of attorney,to ecu in behalf of,and acknowledge as the act and deed of the Argonaut Insurance Company,all bond undertakings and contracts of suretyship, d to ax the corporate seal thereto." IN WITNESS WHEREOF,Argonaut Insurance Company has caused its official seal to be h± 6 -ti"of Ti d and these presents to be signed by its duly authorized officer on the 15th day of September,2008. Argonaut Insurance Company "A By: Michael E,Arledge President STATE OF TEXAS COUNTY OF BEXAR SS: On this 15th day of September,2008 A.D.,before rae. a.,rotary,public of the State of Texas,in and for the County of Bexar,duly commissioned and qualified,came THE ABOVE OFFICER OF THE C MP1N ,to me personally known to be the individual and officer described in,and who executed the preceding instrument,and he acknowledged the execution of same,and being by me duly sworn,deposed and said that he is the officer of the said Company aforesaid,and that the seal affixed to tie priding instrument is the Corporate Seal of said Company,and the said Corporate Seal and his signature as officer were duly affixed and subscrtbd to the said instrument by the authority and direction of the said corporation,and that Resolution adopted by the Board of Directors of said 1:;v npany,i feared to in the preceding instrument is now in force. IN TESTIMONY W OF I have hereunto set my hand,and affixed my Official Seal at the County of Bexar,the day and year first above written. BECK JIMENEZ Notary PubfiC.State of TeX98 vrvv,Cor 30.2011 (Notary Public) I,the undersigned Officer of the Argonaut Insurance Company,Illinois Corporation,do hereby certify that the original POWER OF ATTORNEY of which the foregoing is a full,true and correct copy is still in full force and effect and has not been revoked_ IN WITNESS WREREOF,I have hereunto set my hand,and affixed the Seal of said Company,on the day of Au.CtI.S t r--2_&1 2 JOY Robert F.Thornag 'V'ice President THIS DOCUMENT IS NOT VALID UNLESS PRINTED CAN BLADED BACKGROUND WITH BLUE SERIAL NUMBER IN THE UPPER RIGHT HAND CORNER.IF YOU HAVE QUESTIONS ON AUTHENTICITY OF THIS DOCUMENT CALL(210)321 -8400.