Loading...
RESO 2009-09 - MuniCourt collections contract with MVBA, P.C. (McCreary Veselka)RESOLUTION TO IMPOSE ADDITIONAL FEE FOR COLLECTION COSTS ON FINES AND FEES WHEREAS, The City of Huntsville, Texas pursuant. to Article 103.0031, Texas Code of Criminal Procedure has entered into a contract with a private attorney for the provision of collection services for debts and accounts receivable such as fines, fees, restitution, and other debts or costs payable to the municipal court serving the City of Huntsville; and, WHEREAS, Article 103.003 1, Texas Code of Criminal Procedure, authorizes the City of Huntsville Council that contracts with a private attorney for the collection of fees listed above to impose an additional collection fee in the amount of thirty percent on each debt or account receivable that is more than sixty days past due and has been referred to the attorney for collection; and, WHEREAS, The City Council for The City of Huntsville has determined that it is in the public interests to insure the prompt payment of delinquent court imposed fines and fees as provided by Article 103.003 1, Texas Code of Criminal Procedure, NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL FOR THE CITY OF HUNTSVILLE THAT: In accordance with Article 103.003 1, Texas Code of Criminal Procedure, there shall be imposed on all debts and accounts receivable such as fines, fees, restitution, and other debts, or costs, payable to the municipal court serving The City of Huntsville that are more than sixty days past due and have been referred to an attorney a collection fee of thirty percent of each debt or account. RESOLVE 7T S �� DAY OF nr\� ; 2009. City Manager ATTEST: Ci lerl CITY COUNCIL MEETING of APRIL 7, 2009 BOOK "U" 199 STATUTORY AGENDA [Note: As some of the presenters were from out of town, Mayor Turner took several agenda items out of order.] g. Presentation, discussion and /or possible action to authorize the City Manager to execute a contract to retain McCreary, Veselka, Bragg and Allen, P.C. (MVBA) for collection services for City of Huntsville Municipal Court. Councilmember Ray moved to authorize the City Manager to execute a contract to retain McCreary. Veselka Bragg and Allen P.C. (MVBA) for collection services for City of Huntsville Municipal Court: and Councilmember Forbus seconded the motion. Mr. Duke introduced the firm's representative, and answered some general questions on the collections process and fees being considered in the proposed contract, including up front costs and collection rates. The motion passed 9 -0. f. Presentation, discussion and /or action with respect to Resolution 2009 -09, to impose an additional fee for collection costs on fines and fees. Councilmember Barrett clarified that approving this fee allows the City to add 30% to the fee owed, so when fees are collected, this doesn't come out of the City's bottom line. Councilmember Mahaffey stated that another firm had been handling this process until 2004 but they weren't being monitored by staff, and thanked Susan Embry, Municipal Court Coordinator. The motion passed 9 -0. a. Presentation, discussion and /or action with respect to Resolution 2009 -04, authorizing the City Manager to apply for and accept the Neighborhood Stabilization Grant through the Texas Department of Housing and Community Affairs in the amount of $1,000,000 with one -half being part of select pool allocation and one -half being part of request for reallocation of funds. Bill Baine, City Manager, stated the proposed program is designed to provide financing to disadvantaged folks to be able to buy homes. He stated he anticipates oversight of the grant performed by a committee of citizens to determine relative merit of each case. Dr. Sherry McKibben, Community Development Specialist, clarified that the grant would be for removal of blighted or abandoned homes and reconstruction on those sites, targeting assistance at those below the median area income, and adding that no residents can be displaced. Councilmember Forbus moved to apply for and accept the Neighborhood Stabilization Grant through the Texas Department of Housing and Community Affairs in the amount of $1,000,000 with one -half being part of select pool allocation and one -half being part of request for reallocation of funds: and Councilmember Ray seconded the motion. Councilmember Forbus asked about management of the grant; Mr. Baine stated a committee would handle most of the administration, but the City would be required to do the paperwork/reporting, through Dr. McKibben. Councilmember Woodward asked about removal of blighted structures; Dr. McKibben responded that only 10% of the grant can be used for demolition. Councilmember Mahaffey requested clarification on the "one -half being part of select pool allocation and one -half being part of request for reallocation of funds' ". Dr. McKibben explained that the select pool is part of regional group; inquired if the City has identified houses to be tom down [not yet]; if the City will decide on who gets the sub - grants [Mr. Baine responded that his intent is to start up a committee, that he has asked the County to help, and has talked to tax assessor and has him on board. Mr. Baine continued that he intends to go after grants until the City gets a million (dollars' worth of grants) going with a goal of 100 homes in a three -year period.]. Councilmember Mahaffey continued, asking if only cities can apply? Dr. McKibben explained the County allowed the City to apply, as they cannot because they've elected inclusion in a consortium. Discussion continued on how the homes have been built in the past; who will be lining in the homes; etc. Councilmember Forbus asked if these are for people below poverty line, is financing adjusted to income? Dr. McKibben stated they could only be in debt 45% of their gross income, and described briefly a few options for financing. Mr. Forbus asked who holds the note? Dr. McKibben responded it depends on the program and the individual/family's financial ability, but the City would not hold the note. Mr. Baine added that this grant is targeted at the working poor. Councilmember Woodward mentioned a few elements of the grant and process, such as it functions like an interim loan program, and that the owner would have to be approved before construction, etc., adding he thought it sounds like a reasonable deal. Councilmember Cole stated there must be more detail than a single sheet (as far as paperwork for the grant), and asked how is blight defined? Mr. Baine stated the City wouldn't seize abandoned properties. Councilmember Cole reiterated the City does not have a good track record of defining blighted areas and that he will vote against this measure as he sees an avenue for abuse. Mayor Turner asked if payment of taxes is a criterion? Dr. McKibben responded that a site can be called blighted if it is a health /safety issue even if taxes are paid. Councilmember Ray followed with a statement that there must be pretty rigid standards [Dr. McKibben = yes]; do they specifically define use [Dr. McKibben = yes]; and inquired if the Council might review standards for more information? Mr. Baine responded that there is a time limit on this grant, and that he didn't understand the business on the lots. Councilmember Ray stated no one questions the need for housing but did inquire as to what will be the standard and who will enforce? i CITY COUNCIL MEETING of APRIL 7, 2009 BOOK"U" 199 STATUTORY AGENDA [Note: As some of the presenters were from out of town, Mayor Turner took several agenda items out of order.] g. Presentation, discussion and/or possible action to authorize the City Manager to execute a contract to retain McCreary,Veselka Bra and Allen P.C. MVBA for collection services for Cit of Huntsville Municipal Court. 99 ( ) Y Councilmember Ray moved to authorize the City Manager to execute a contract to retain McCreary, Veselka Bragg and Allen P C (MVBA) for collection services for City of Huntsville Municipal Court; and Councilmember Forbus seconded the motion. Mr. Duke introduced the firm's representative, and answered some general questions on the collections process and fees being considered in the proposed contract, including up front costs and collection rates. The motion passed 9-0. f. Presentation, discussion and/or action with respect to Resolution 2009-09, to impose an additional fee for collection costs on fines and fees. Councilmember Woodward moved to a rove Resolution 2009-09 to impose an additional fee for pp p collection costs on fines and fees: and Councilmember Forbus seconded the motion. Councilmember Barrett clarified that approving this fee allows the City to add 30% to the fee owed, so when fees are collected, this doesn't come out of the City's bottom line. Councilmember Mahaffey stated that another firm had been handling this process until 2004 but they weren't being monitored by staff, and thanked Susan Embry, Municipal Court Coordinator. The motion passed 9-0. a. Presentation,discussion and/or action with respect to Resolution 2009-04, authorizing the City Manager to apply for and accept the Neighborhood Stabilization Grant through the Texas Department of Housing and Community Affairs in the amount of$1,000,000 with one-half being part of select pool allocation and one-half being part of request for reallocation of funds. Bill Baine, City Manager, stated the proposed program is designed to provide financing to disadvantaged folks to be able to buy homes. He stated he anticipates oversight of the grant performed by a committee of citizens to determine relative merit of each case. Dr. Sherry McKibben, Community Development Specialist, clarified that the grant would be for removal of blighted or abandoned homes and reconstruction on those sites, targeting assistance at those below the median area income, and adding that no residents can be displaced. Councilmember Forbus moved to apply for and accept the Neighborhood Stabilization Grant through the Texas Department of Housing and Community Affairs in the amount of $1,000,000 with one-half being part of select pool allocation and one-half being part of request for reallocation of funds: and Councilmember Ray seconded the motion. Councilmember Forbus asked about management of the grant; Mr. Baine stated a committee would handle most of the administration, but the City would be required to do the paperwork/reporting, through Dr. McKibben. Councilmember Woodward asked about removal of blighted structures; Dr. McKibben responded that only 10% of the grant can be used for demolition. Councilmember Mahaffey requested clarification on the "one-half being part of select pool allocation and one-half being part of request for reallocation of funds"'. Dr. McKibben explained that the select pool is part of regional group; inquired if the City has identified houses to be torn down [not yet]; if the City will decide on who gets the sub-grants[Mr. Baine responded that his intent is to start up a committee, that he has asked the County to help, and has talked to tax assessor and has him on board. Mr. Baine continued that he intends to go after grants until the City gets a million (dollars' worth of grants) going with a goal of 100 homes in a three-year period.]. Councilmember Mahaffey continued, asking if only cities can apply? Dr. McKibben explained the County allowed the City to apply, as they cannot because they've elected inclusion in a consortium. Discussion continued on how the homes have been built in the past;who will be lining in the homes; etc. Councilmember Forbus asked if these are for people below poverty line, is financing adjusted to income? Dr. McKibben stated they could only be in debt 45% of their gross income, and described briefly a few options for financing. Mr. Forbus asked who holds the note? Dr. McKibben responded it depends on the program and the individual/family's financial ability, but the City would not hold the note. Mr. Baine added that this grant is targeted at the working poor. Councilmember Woodward mentioned a few elements of the grant and process, such as it functions like an interim loan program, and that the owner would have to be approved before construction,etc., adding he thought it sounds like a reasonable deal. Councilmember Cole stated there must be more detail than a single sheet (as far as paperwork for the grant), and asked how is blight defined? Mr. Baine stated the City wouldn't seize abandoned properties. Councilmember Cole reiterated the City does not have a good track record of defining blighted areas and that he will vote against this measure as he sees an avenue for abuse. Mayor Turner asked if payment of taxes is a criterion? Dr. McKibben responded that a site can be called blighted if it is a health/safety issue even if taxes are paid. Councilmember Ray followed with a statement that there must be pretty rigid standards [Dr. McKibben = yes]; do they specifically define use [Dr. McKibben = yes]; and inquired if the Council might review standards for more information? Mr. Baine responded that there is a time limit on this grant, and that he didn't understand the business on the lots. Councilmember Ray stated no one questions the need for housing but did inquire as to what will be the standard and who will enforce? CITY COUNCIL MEETING of APRIL 7, 2009 BOOK"U" 198 MINUTES FROM THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 7TH DAY OF APRIL, 2009, IN THE CITY HALL, LOCATED AT 1212 AVENUE M IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS AT 6:OOPM. The Council met in a regular session with the following: COUNCILMEMBERS PRESENT: J. Turner, Wayne Barrett, Tom Cole, Charles Forbus, Clarence Griffin, Melissa Mahaffey, Lanny Ray, Mac Woodward, Dalene Zender OFFICERS PRESENT: Bill Baine, City Manager; Stephanie Brim, City Secretary; Interim Counsel Leonard Schneider REGULAR SESSION CALL TO ORDER[6:00pm] Mayor Turner called the meeting to order. PLEDGE OF ALLEGIANCE to US and TEXAS FLAGS, INVOCATION Councilmember Griffin led the invocation. PRESENTATIONS a. Mayor Turner read Proclamation 2009-09, Confederate History and Heritage Month, accepted by representatives of the Sons of Confederate Veterans, Jerry McGinty, Frances McGinty, Don Matthews, Woody Woods and Dr. Tom Cole. b. Mayor Turner read Proclamation 2009-10, Fair Housing Month, accepted by Sherry McKibben, Community Development Specialist. PUBLIC COMMENTS (regarding agenda items only) None. CONSENT AGENDA a. Approve the minutes of the City Council and Planning &Zoning Commission special joint work session held on February 28, 2009 and minutes of the City Council meetings held March 3 and 17,2009. b. Approve Ordinance 2009-31, amending the fiscal year 2008-2009 annual budget. C. Approve the Joint Election Agreement for the Regular Election to be held on May 9, 2009 with the Huntsville Independent School District. d. Approve the tax sale of trust property as submitted by Walker County Appraisal District. e. Approve Ordinance 2009-32, adopting Identity Theft Prevention Program to be effective May 1, 2009. f. Authorize the City Manager to execute the Interlocal Agreement with Walker County approving the City's participation in the 2009 JAG Recovery Grant and providing for disbursement of$51,246 of 2009 JAG funds to the City if awarded. g. Approve Ordinance 2009-34, Consideration and action with respect to"An Ordinance Confirming and Approving the Issuance of City of Huntsville, Texas General Obligation Refunding Bonds, Series 2009 and Confirming and Approving Pricing of the Refunding Bonds. Councilmember Woodward moved to approve the Consent Agenda: and Councilmember Forbus seconded the motion. Councilmember Woodward mentioned that item 'g' had already been approved, and that this document reflected the updated principal figures. Councilmember Mahaffey requested additional information on item 'd'; Winston Duke, Director of Finance, responded that the Finance Department role is generally to review the history of submitted parcels for a tax history to compare to the legitimacy of the bid. Councilmember Zender expressed concern over voting on parcels not in the city limits. Councilmember Ray moved to gull item 'd' from the Consent Agenda for further information: and Councilmember Mahaffey seconded the motion. The amendment passed 9-0. Councilmember Forbus inquired about the final savings on the bond refunding; Bill Baine, City Manager, responded around $40,000. Interim City Attorney Leonard Schneider stated the purpose of the ordinance [item 'g']is to reestablish the amount authorized. The original motion passed 9-0. -3"-L City Council fleeting Age nqjaI�terM Item Title: ate: Agenda Item No.: � � Contract for collection of delinquent fin ... 4/7/2009 6g Requested By: (��Qry_G ��yv.�`� Dept./Div: / Dept. Approval:t b ` Susan Kilgore Embry fZ -G 231 V WD Issue/Item Description: Collection agency that currently handles delinquent court cases (under contract since 1994) has shown poor performance and the court would like to enter into a contract with a new collection firm. The desired firm is McCreary, Veselka, Bragg, and Allen, P.C. (MVBA). MVBA is an attorney firm which specializes in delinquent court collection services. Background: The court has a large volume of uncollected delinquent cases,( e 60 days past due). No new cases have been sent to the current collections agency since ;200 , causing the large backlog. It is important that the court put into place a collections polic o begin aggressive attempts to collect on these delinquent cases. Changing to a new collections firm is the first step in initiating this policy. Equally important will be to then maintain that policy by regularly submitting new delinquent cases to the collections firm. 5 kp �� Facts to Consider: . 30% collection fee charged by the collections firm will be offset by the 30% collection fee C44-d11 44d . M that the court is allowed to charge (pending passing of Resolution). . The city would be "out of pocket" a collection fee by the firm of 15% which would not be offset on unadjudicated offenses that occurred before June 18, 2003. pt,s a i . Fiscal Impact/Funding Source(s): Revenues would be positively affected as the City would see the fines and fees assessed by the court actually collected. Fees charged by the firm would be offset by the fee assessed on the cases with the exception of the 15% fee on cases prior to June 18, 2003. W' Attachment(s): "rrn! . 103.0031 Code of Criminal Procedure . Contract t E Recommendation(s): . Authorize the City Manager to enter into contract with MVBA for a collection o delinquent court cases. MOTION: SECOND: VOTE: i P86 F RESENTED f APPROVED F DECLINED ACTION F TABLED F OTHER Lee Woodward From: Kristin Edwards Sent: Thursday, November 05, 2009 11:42 AM To: Lee Woodward Subject: contract Lee- From the April 7 minutes: I g. Presentation, discussion and/or possible action to authorize the City Manager to execute a contract to retain McCreary, Veselka, Bragg and Allen, P.C. (MVBA)for collection services for City of Huntsville Municipal Court. Councilmember Ray moved to authorize the City Manager to execute a contract to retain McCreary Veselka Bragg and Allen, P.C. _(MVBA)for collection services for City of Huntsville Municipal Court: and Councilmember Forbus seconded the motion. Mr. Duke introduced the firm's representative, and answered some general questions on the collections process and fees being considered in the proposed contract, including up front costs and collection rates. The motion passed 9-0. So the contract was approved that night, so that's the date that needs to be filled in. Do you want me to contact McCreary, etc. to see if I can PDF them a copy of the contract to be signed? Kristin L 0A 5�n I i P87 CONTRACT FOR THE COLLECTION OF DELINQUENT MUNICIPAL COURT FINES AND FEES STATE OF TEXAS § COUNTY OF WALKER § THIS CONTRACT is made and entered into by and between the CITY OF HUNTSVILLE, TEXAS, acting herein by and through its governing body, hereinafter styled, "City", and McCREARY, VESELKA, BRAGG AND ALLEN, P.C., hereinafter styled "MVBA". L The City agrees to retain and does hereby retain MVBA to provide collection services for City of Huntsville Municipal Court related to the enforcement of the collection of delinquent debt and accounts receivable including: fines, fees, court costs, forfeited bonds, restitution and other amounts in accordance with Article 103.0031, Texas Code of Criminal Procedure (hereinafter referred to in the agreement "Fines and Fees") pursuant to the terms and conditions in this contract. II. For purposes of this contract all Fines and Fees shall be referred to MVBA when determined to be delinquent as provided for in Article 103.0031, Code of Criminal Procedure. At least once each month on a date or dates agreed upon by the parties, the Court will provide MVBA with copies of or access to the information and documentation necessary to collect the delinquent fines and fees that are subject to this contract. The Court shall furnish the information to MVBA by electronic transmission or magnetic medium. The Court shall be responsible for the receipting of the payment of all �6es and fees pursuant to this contract whether received directly from the defendant or MVBA. III. MVBA shall forward all cashier checks or money order payments made payable to the City of Huntsville Municipal Court and any correspondence from defendants directly to the Court. 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 defendant by credit card or electronic draft which is deposited directly into the MVBA Trust Account. MVBA shall remit to the City all payments in full received into the MVBA Trust Account, at least twice monthly, along with an invoice detailing the docket number, name of defendant, amount paid to MVBA or Court, MVBA fee percentage and fees earned for each case. Page 1 of 4 P88 Contract for the Collection of Delinquent Municipal Court Fines and Feeswith McCreary, Veselka, Bragg, and Allen, P.C. IV. 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 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. V. For the collection of Fines and Fees, the City agrees to pay to MVBA, as compensation for the professional services rendered the following fees: 1. For those Fines and Fees imposed against Unadjudicated Offenses that \ occurred before June 2003, there a fee of fifteen (15%) MVBA on the amount of collected by the Court on those cases in which the data files are transmitted to / MVBA by electronic media. 2. For those Fines and Fees imposed against Adjudicated Offenses regardless of the date of the offense, and against Unadjudicated Offenses that occurred on or after June 18, 2003, a fee of thirty percent (30%) of the amount of the Fines and Fees collected by the City as provided by Article 103.0031 of the Code of Criminal Procedure. 3. In the event any case is disposed of by acquittal or dismissal, or if the fines, costs and/or fees are discharged through performance of community service, credit for jail time served, the discretionary removal of a collection fee by the Court or pursuant to §45.0491 of the Code of Criminal Procedure, no compensation shall be paid to MVBA by the City. I 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. VL MVBA reserves the right to return to the appropriate court 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. Page 2 of 4 l l P89 Contract for the Collection of Delinquent Municipal Court Fines and Feeswith McCreary, Veselka, Bragg, and Allen, P.C. VII. The initial term of this contract is two years, beginning on the date this contract is executed by the parties hereto, with the option to extend for up to two (2) additional years subject to the approval of MVBA and the City, 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 three (3) months from the date of receipt of the "Notice of Termination of Contract" and to payment of its fee, pursuant to Paragraph V 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. VIII. 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 1310, Round Rock, Texas 78680-1310, or delivered by hand or by courier, and address to: 700 Jeffrey Way, Suite 100, Round Rock, Texas 78665, and all notices to the City shall be sent by certified mail or delivered by hand or courier to the City of Huntsville, Attention: City Manager, 1212 Avenue M, Huntsville, Texas 77340-4608. IX. 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 le, 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. X. In consideration of the terms and compensation herein stated, MVBA hereby agrees to undertake 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. Page 3 of 4 i l P90 Contract for the Collection of Delinquent Municipal Court Fines and Feeswith McCreary, Veselka, Bragg, and Allen, P.C. WITNESS the signatures of all parties hereto this, the day of 2009. CITY OF HUNTSVILLE, TEXAS Bill Baine City Manager McCREARY, VESELKA, BRAGG & ALLEN, P.C. Harvey M. Allen Attorney at Law Page 4 of 4 I P90 E Contact for the Collection ofDelinquent Municlpel Court FJnes and Feesmth McCreary, Veselko,Bragg,and Allen,P.C. WITNE=SS the signatures of all parties hereto this, the day of 2009. CITY OF HUNTSVILLE, TEXAS Bili Balne City Manager McCREARY, VESELKA, BRAGG &ALLEN, P.C. Hanley Allen Attorn at Law I Page 4 of 4.