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HomeMy WebLinkAboutResolution No. 04-23 RESOLUTION NO. 04- ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING A CONTRACT BETWEEN THE CITY OF THE COLONY AND MCCREARY, VESELKA, BRAGG AND ALLEN, P.C. TO PROVIDE LEGAL SERVICES RELATED TO THE COLLECTION OF DELINQUENT ACCOUNTS RECEIVABLE; A COPY OF WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "A"; AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City has determined that it is in the best interest of the City to enter into a Contract with McCreary, Vcselka, Bragg and Allen, P.C. (MVBA), which is attached hereto and incorporated herein by reference as Exhibit "A," under the terms and conditions provided therein. WHEREAS, with this contract the City of The Colony is agreeing to compensate MV8A a fee of twenty percent (20%) of the amount of delinquent accounts receivable collected or a fee of thirty percent (30%) of the amounts collected by the city in which the accounts are not transmitted by electronic media, to be paid on a monthly basis. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THAT: Section 1. The Contract Amendment, which is attached and incorporated hereto as Exhibit "A", having been reviewed by the City Council of the City of The Colony, Texas, and found to be acceptable and in the best interest of ~he City and its citizens, be, and the same is hereby, in all things approved, and the City Manager is hereby authorized to execute the Agreement on behalf of the City of The Colony, Texas. Section 2. That this Resolution shall take effect immediately from and after its adoption and it is so resolved. PASSED, APPROVED and EFFECTIVE this 19th day of April, 2004. ~ ~.E~: J~°~'~D_ i 11 ar c~, ~'~a Yor ( -_.~,~~?f ~ /t ~,(j~.~, //~ty of The ~olony, Texas / C~i~tie Wils"on, City~ecretary [CITY SEAL] Rober(E. Hyity Attorney 63918 CONTRACT FOR THE COLLECTION OF DELINQUENT ACCOUNTS RECEIVABLE STATE OF TEXAS § COUNTY OF DENTON § THIS CONTRACT is made and entered into by and between the CITY OF THE COLONY, TEXAS, acting herein by and through its governing body, hereinal~er styled, "City", and McCREARY, VESELKA, BRAGG AND ALLEN, P.C., hereina~er styled "MVBA". I. The City agrees to employ and does hereby employ MVBA to provide legal services related to the collection of delinquent accounts receivable, including but not limited to delinquent utility bills; emergency medical services; and the cost incurred by the City or authorized by the City Code to be imposed by the City to bring any property into compliance with the City Code including, assessments for the mowing of vacant lots, removal of trash and debris from vacant lots, demolition of substandard structures and abatement of other nuisances by the City ("Delinquent Accounts Receivable"). II. For purposes of this contract Delinquent Accounts Receivable shall be considered delinquent and referred to MVBA when not timely paid in accordance with any applicable contract, ordinance or statute providing for the payment of the underlying debt or as provided by the attached directive letter. At least once each month on a date or dates agreed upon by the parties, the City will provide MVBA with copies of, or access to, the information and documentation necessary to collect the Delinquent Accounts Receivable that are subject to this contract. The City shall furnish the information to MVBA by electronic transmission, magnetic medium or copies of physical records. III. MVBA shall forward to the City copies of any correspondence regarding a disputed debt received from a debtor and a request for verification of the debt. The City will provide to MVBA within ten (10) days of the receipt for the request for verification of the debt, copies of all records which will verify the debt which in turn will be forwarded to the debtor by MVBA. All collection activity will be suspended on any disputed debt until the appropriate verification of the debt is delivered to the debtor. IV. Upon request of the City, MVBA shall institute civil proceedings, including the filing of collection lawsuits to collect Delinquent Accounts Receivable, if the amount due to the City is at least two thousand five hundred dollars ($2,500.00) on any said account. The City shall pay in advance of the initiation of any collection lawsuit any filing fees charged by the Court in which the collection lawsuit is to be filed including the c~sts for service of citation. MVBA shall file proofs of claims in the United States Bankruptcy Court on behalf of the City if the amount due the City on any account is at least five hundred dollars ($500.00). MVBA shall forward all cashier cheeks or money order payments made payable to the City and any correspondence from debtor directly to the City. Cashier checks or money order payments made payable to MVBA will be deposited daily into the MVBA Trust Account. MVBA may also collect the amount due from the debtor by credit card or electronic check which is deposited directly into the MVBA Trust Account. MVBA may set up payment arrangements and accept partial payments on any delinquent accounts receivable. MVBA shall remit to the City all payments received into the MVBA Trust Account, bi-monthly, along with appropriate documentation to facilitate processing of the payments by the City. The City shall be responsible for the receipt of the payment of all accounts receivable pursuant to this contract. MVBA will invoice monthly for paid cases and will include a statement of the fees due the Firm. VI. MVBA shall indemnify and hold the City 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 MVBA'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 the City, its officers, agents, employees or contractors. And furthermore, in the event of joint and/or shared negligence or fault of the City and MVBA, 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. VII. For the collection of Delinquent Accounts Receivable in which the data files are transmitted to MVBA by electronic media, the City agrees to pay to MVBA as compensation for services provided, pursuant to this contract, a fee of twenty percent (20%) of the amount of the Delinquent Accounts Receivable collected or a fee of thirty percent (30%) of the amounts collected by the City in which the accounts are not transmitted by electronic media. All compensation shall become the property of MVBA at the time of payment. The City shall pay to MVBA said compensation on a monthly basis by check. VIII. MVBA reserves the right to return to the City all accounts not collected within one (1) year of referral by the City, or identified as being in bankruptcy. Upon return of these accounts, neither party will have any obligation to the other party to this contract. IX. Contract for the Collection of Delinquent Accounts Receivable - Page 2 of 2 The initial term of this contract is two years, beginning on the date that this contract is executed by the parties hereto and shall thereafter continue 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 of Contract" at least thirty (30) days prior to the intended termination date. In the event that the City terminates this contract, MVBA shall be entitled to continue its collection activity on all accounts previously referred to MVBA for six (6) months from the date of receipt of the "Notice of Termination of Contract" and to payment of its fee, pursuant to Paragraph VII of this contract for all amounts collected on accounts referred to MVBA. The City may, at its discretion, refer additional accounts to MVBA after notice of termination has been received by MVBA. At the end of the six (6) month period, all accounts shall be returned to the City by MVBA. For purposes of sending notice under the terms of this contract, all notices from the City shall be sent to MVBA by certified United States mail, McCreary, Veselka, Bragg & Allen, P.C., Attention: Harvey M. Allen, P. O. Box 26990, Austin, Texas 78755-0990, or delivered by hand or by courier, and addressed as follows: 5929 Balcones Drive, Suite 200, Austin, Texas 78731, and all notices to the City shall be sent by certified United States mail or delivered by hand or courier to The Colony, Attention: Dale A. Cheatham, City Manager, 6800 Main Street, The Colony, TX 75056-1133. XI. 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 or unenforceable, the invalidity 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 or unenforceable provision(s) had never been a part of this contract. In consideration of the terms and compensation herein stated, MVBA hereby accepts said employment and undertakes performance of said contract as set forth above. The City has authorized by order heretofore passed and duly recorded in its minutes the chief executive officer to execute this contract. 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. Contract for the Collection of Delinquent Accounts Receivable - Page 3 of 3 I WITNESS the signatures of all parties hereto this, the ] H day of {.k,/fl/b~ ,A.D. 2004. CITY OF THE COLONY, TEXAS Dale Cheatham, Ctty Manager McCREARY, VESELKA, BRAGG & ALLEN, P.C. ~Y: ~n~~' ~ra~ ~ Contract for the Collection of Delinquent Accounts Receivable - Page 4 of 4