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Ordinance No. 16,105 ORDINANCE NO. 16,105 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS AUTHORIZING A PROFESSIONAL SERVICES AGREEMENT WITH PERDUE, BRANDON, FIELDER, COLLINS & MOTT, LLP FOR THE COLLECTION OF DELINQUENT FINES, FEES, COURT COSTS, AND OTHER DEBTS PURSUANT TO ARTICLE 103.0031 OF THE TEXAS CODE OF CRIMINAL PROCEDURE AND SECTION 1-16 OF THE CITY OF BAYTOWN CODE OF ORDINANCES; AUTHORIZING PAYMENT TO PERDUE, BRANDON, FIELDER, COLLINS & MOTT, LLP IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE THEREFORE. ************************************************************************* WHEREAS, Article 103.0031 of the Texas Code of Criminal Procedure authorizes the City of Baytown to contract with a private attorney for the collection of the fees listed above and to impose an additional fee in the amount of thirty percent on each debt or account receivable that is more than sixty days past due and which has been referred to an attorney for collection; and WHEREAS, the City of Baytown has determined that it is in the public interest to ensure the prompt payment of delinquent court-imposed fines, fees, court costs, and other debts as provided by said statute and has authorized collection of said fee via Section 1-16 of the City of Baytown Municipal Code of Ordinances; and WHEREAS, the City of Baytown, pursuant to Article 103.0031, Texas Code of Criminal Procedure,desires to contract with a private firm, Perdue, Brandon, Fielder,Collins & Mott L.L.P. (Perdue), to provide services for the collection of debts and accounts receivables, i.e.: fines, fees, court costs, restitution, and other debts ordered to be paid by a court serving the City of Baytown; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF BAYTOWN THAT: Section 1: The foregoing recitals are hereby found to be true and correct and are hereby adopted by the City of Baytown and made a part of this ordinance for all purposes and findings of fact. Section 2: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the City Manager to execute and the City Clerk to attest to a Professional Services Agreement with the Perdue Firm to provide services for the collection of fines, fees, court costs, and other debts as detailed in Section 1-16 of the City of Baytown Municipal Code of Ordinances. A copy of said agreement is attached hereto as Exhibit "A"and incorporated herein for all intents and purposes. Section 3: That the City Council of the City of Baytown hereby authorizes payment to the Perdue Firm in accordance with the payment provision of the agreement referenced in Section 1. Section 4: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED,READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 27"'day of March, 2025. yj'�— 12-- —— CHARLES OH ON, Mayor AM. ,! j2lt'; ° ANGELA C ,tCQt�'clerk APPROVED AS TO fl� SCOTT LEM D, City Attorney R:Ordinances and Resolutions Ordinance Drafts 2025-03-27 Authorizing Collections Contract with Perdue and Authorizing Collection Fee.kh.docx EXHIBIT "A" CONTRACT FOR COURT FINES AND FEES COLLECTION SERVICES STATE OF TEXAS § COUNTY OF HARRIS § SECTION I. PARTIES TO THE CONTRACT THIS CONTRACT, hereinafter called "Contract", is made and entered into by and between the City of Baytown, Texas, acting herein by and through its governing body, hereinafter called "the City" and Perdue, Brandon, Fielder, Collins & Mott, L.L.P., hereinafter called "Perdue". THIS CONTRACT supersedes all prior oral and written agreements between the parties and can only be amended if done so in writing and signed by all parties. Furthermore, this Contract cannot be transferred or assigned by either party without the written consent of all parties. The City agrees to contract with Perdue to enforce the collection of delinquent court fines, fees, and court costs pursuant to the terms and conditions described in this Contract. This CONTRACT is entered into pursuant to and as authorized by Section 103.0031 (a) of the Texas Code of Criminal Procedure. The parties hereto acknowledge that this CONTRACT creates an attorney-client relationship between the City and Perdue. NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereinafter set forth, the adequacy of which is hereby acknowledged, the City and Perdue agree as follows: SECTION II. CITY'S COLLECTION OBLIGATIONS A. The City agrees to employ and does hereby employ Perdue to provide specific legal services provided herein and enforce the collection of delinquent court fees and fines that are subject to this CONTRACT, pursuant to the terms and conditions described herein. Such legal services shall include but not be limited to recommendations and legal advice to the City to take legal enforcement action; representing the City in any dispute or legal challenge over authority to collect such court fees and fines; defending the City in litigation or challenges of its collection authority. B. The City agrees to refer selected delinquent accounts, as defined below, to Perdue for collection each month. The City shall refer delinquent accounts by electronic or magnetic medium, if available, or in any other way that is most favorable to the City. Delinquent accounts should be in a specified format that will allow Perdue to process the account data. C. An account is considered delinquent when not paid within sixty(60)days of the scheduled appearance date (if the defendant failed to appear), or from any granted extension, or from the date of conviction or judgment, or other court specified due date. D. The City will provide Perdue with copies of,or access to,the information and documentation necessary to collect the fines, fees, and court costs that are subject to this Contract. SECTION III. PERDUE'S COLLECTION OBLIGATIONS A. Perdue agrees to refer all payments and correspondence directly to the court that has assessed or levied the fines, fees, and court costs being collected pursuant to this Contract. Perdue reserves the right to return any accounts not collected within one (1) year of referral by the City. Neither party will have any obligation to the other regarding returned accounts. B. Perdue agrees to use its best efforts to collect the delinquent accounts received from the City and to comply with all provisions of state and federal law and regulations promulgated pursuant thereto in the rendition of collection services contemplated by this Contract. C. If requested by the City, Perdue agrees to provide legal advice to the City on its delinquent accounts. SECTION IV. COLLECTION FEE The City agrees to pay Perdue as follows: (1) No charge for the collected fines, fees, and court costs referred to Perdue by the City imposed on all unadjudicated offenses committed on or before June 18, 2003. (2) Thirty percent (30%) of the collected fines, fees, and court costs referred to Perdue imposed on all adjudicated offenses committed on or before June 18, 2003; and (3) Thirty percent (300o) of the collected fines, fees, and court costs referred to Perdue imposed on all offenses occurring after June 18, 2003. The thirty percent (30%) collection fee shall be added to the amount owed by a defendant that is more than 60 days past due pursuant to Article 103.0031, Texas Code of Criminal Procedure. 2 SECTION V. EXCEPTIONS TO THE COLLECTION FEE Pursuant to Article 103.0031(b), Texas Code of Criminal Procedure, Perdue cannot collect from a defendant the percentages referred to in Section IV. COLLECTION FEE if the defendant has been determined by the court of original jurisdiction to be indigent, or has insufficient resources or income, or is otherwise unable to pay all or part of the underlying fine or costs. The collection fee does not apply to a case that has been dismissed by a court of competent jurisdiction or to any amount that has been satisfied through time-served credit or community service. The collection fee shall, however, be applied to any balance remaining after a partial credit for time served or community service if the balance is more than 60 days past due. SECTION VI. INVOICING Each month of the contract, Perdue will provide an invoice and a listing of cases in which the 301 o collection fee was paid or partially paid, pursuant to Section IV above, to the City for review and remittance. Upon receipt, the City will have 30 days to remit payment of the invoice to Perdue. All compensation shall become the property of Perdue at the time of payment to the City. SECTION VII. COMMENCEMENT AND TERMINATION OF CONTRACT This Contract shall commence on April 1,2025,and continue in force and effect until March 30, 2028, except that either party to this agreement may terminate this agreement by giving the other party sixty(60) days written notice of their desire and intention to terminate this agreement. This contract will be automatically renewed on its identical terms for four (4)one-year terms commencing on the anniversary date of this contract,unless written notice of intent not to automatically renew is delivered by the City to the firm not less than sixty (60) days prior to the expiration date of the initial three(3) year term or the anniversary date of any one-year renewal period. Thereafter, the contract shall automatically renew for successive periods of one(1) year under the terms and conditions stated herein,unless either party gives prior notice of termination. Upon termination, Perdue shall have an additional six (6) months to complete work on all delinquent accounts referred by the City prior to the notice of termination and will be entitled to compensation on such accounts if collected. SECTION VIII. NOTICES For purposes of sending notice under the terms of this Contract, all notices from the City shall be sent to Perdue by certified United States mail, or delivered by hand or courier, and addressed as follows: 3 Perdue, Brandon, Fielder, Collins & Mott, LLP Attn: Michael J. Darlow BY U.S. MAIL OR BY COURIER DELIVERY: 1235 North Loop West, Suite 600 Houston, Texas 77008 Telephone Number: 713-862-1860 All notices from Perdue shall be sent to the City by certified United States mail, or delivered by hand or courier, and addressed as follows: City of Baytown Attn: Teresa McKenzie Finance Director 2401 Market Street Baytown, Texas 77520 Telephone Number: 281-420-6535 SECTION IX. VENUE AND CONTROLLING LAW This Contract is made and is to be interpreted under the laws of the State of Texas. Venue for any disputes involving this Contract shall be in the appropriate courts in Harris County, Texas. SECTION X. INDEPENDENT CONTRACTOR STATUS Perdue will perform the services in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. Perdue shall act in accordance with its own expertise, experience, manner, and methods and through its own duly authorized employees or agents and shall comply with all applicable laws, rules, and regulations governing the performance of the services contemplated under this Contract. The parties recognize that Perdue is an independent contractor and not an employee of the City. The personnel performing the services shall always be under Perdue's exclusive direction and control and will be employees of Perdue and not employees of the City. SECTION XI. OTHER PROVISIONS Pursuant to Chapters 2252, 2271 and 2274 of the Texas Government Code, the Firm verifies that it does not and will not, for the term of this contract boycott Israel or energy companies; that it does not have a policy which discriminates against a firearm entity or firearm trade association nor will it create such a policy for the term of this contract; and that it is not engaged in business with Iran, Sudan, or a foreign terrorist organization. 4 The State Bar of Texas investigates and prosecutes professional misconduct committed by Texas attorneys. If you have a complaint against or dispute with this firm involving professional misconduct,the State Bar's Office of Chief Disciplinary Counsel will provide you with information about how to file a complaint. SECTION XII. CONFIDENTIALITY The Parties to this Contract agree that each shall treat as confidential all information provided by a party to the others regarding such party's business and operations including proprietary technology and systems. SECTION XIII. SEVERABILITY Every provision of this Contract is intended to be severable. If any term or provision hereof is hereafter deemed by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, for any reason or to any extent whatsoever, such illegality, invalidity, or unenforceability shall not affect the validity of the remainder of this Contract, it being intended that such remaining provisions shall be construed in a manner most closely approximating the intention of the parties with respect to the illegal, invalid, void or unenforceable provision or part thereof. This Contract is executed on behalf of the City by the presiding officer of its governing body who is authorized to execute this instrument by Ordinance heretofore passed and recorded in its minutes. This Contract may be executed in any number of counterparts, and each counterpart shall be deemed an original for all purposes. Signed facsimiles or electronically signed Contracts executed on behalf of the City by the presiding officer of its governing body authorized to execute this instrument shall be binding and enforceable. SECTION XIV. ENTIRE AGREEMENT This Agreement, which constitutes the entire Agreement between the City and Perdue and supersedes all previous agreements, whether oral or written. This Agreement will not be modified or amended except by a written document signed by the parties hereto. SECTION XV. INSURANCE Perdue shall procure and maintain at its sole cost and expense for the duration of the Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by Perdue, its agents, representatives, volunteers, and employees; and require its subcontractors to carry same. a. Perdue 's insurance coverage shall be primary insurance with respect to the City, its officials, employees and agents. Any insurance or self-insurance maintained by the 5 City, its officials, employees or agents shall be considered in excess of Perdue's insurance and shall not contribute to it. Further, Perdue shall include all subcontractors, agents and assigns as additional insureds under its policy or shall furnish separate certificates and endorsements for each such subcontractor, person or entity. All coverages for subcontractors and assigns shall be subject to all of the requirements stated herein. The following is a list of standard insurance policies along with their respective minimum coverage amounts required in this Agreement: i. Commercial General Liability ■ General Aggregate: $2,000,000 ■ Products & Completed Operations Aggregate: $2,000,000 ■ Personal & Advertising Injury: $1,000,000 ■ Per Occurrence: $1,000,000 ■ Fire Damage $500,000 ■ Waiver of Subrogation required ■ Coverage shall be broad form ■ No coverage shall be deleted from standard policy without notification of individual exclusions being attached for review and acceptance. ii. Business Automobile Policy ■ Combined Single Limits: $1,000,000 ■ Coverage for "Any Auto" ■ Waiver of Subrogation required iii. Workers' Compensation ■ Statutory Limits ■ Employer's Liability$500,000 ■ Waiver of Subrogation required b. The following shall be applicable to all policies of insurance required herein: i. Insurance carrier for all liability policies must have an A.M. Best Rating of A:VIII or better. ii. Only insurance carriers licensed and admitted to do business in the State of Texas will be accepted. iii. Liability policies must be on occurrence form. iv. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except after thirty(30) days prior written 6 notice by mail, return receipt requested, has been given to the City. V. The City, its officers, agents and employees are to be added as Additional Insureds to all liability policies,with the exception of the Workers' Compensation and Errors and Omissions Policies required herein. i. Upon written request and without cost to the City, certified copies of all insurance policies and:or certificates of insurance shall be furnished to the City. vii. Upon written request and without cost to the City, loss runs (claims listing) of any and or all insurance coverages shall be furnished to the City. viii. All insurance required herein shall be secured and maintained in a company or companies satisfactory to the City, and shall be carried in the name of Perdue. Perdue shall provide Certificates of Insurance and endorsements required hereunder to the City on or before the effective date of this Agreement. SECTION XVI. INDEMNIFICATION AND RELEASE PERDUE AGREES TO AND SHALL INDEMNIFY AND HOLD HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES (HEREINAFTER REFERRED TO AS THE "CITY") FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, SUITS AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS,AND ATTORNEY'S FEES,FOR INJURY TO OR DEATH OF ANY PERSON, FOR DAMAGE TO ANY PROPERTY OR FOR ANY BREACH OF CONTRACT TO THE EXTENT ARISING OUT OF OR IN CONNECTION WITH AN ACT OF NEGLIGENCE, INTENTIONAL TORT, INTELLECTUAL PROPERTY INFRINGEMENT, OR FAILURE TO PAY A SUBCONTRACTOR OR SUPPLIER COMMITTED BY PERDUE OR THE PERDUE'S AGENT, PERDUE UNDER CONTRACT, OR ANOTHER ENTITY OVER WHICH THE PERDUE EXERCISES CONTROL (COLLECTIVELY, PERDUE 'S PARTIES). IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO, BOTH PERDUE AND THE CITY, THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH IS INDEMNITY BY PERDUE TO INDEMNIFY AND PROTECT THE CITY FROM THE CONSEQUENCES OF PERDUE'S PARTIES' OWN WILLFUL MISCONDUCT, JOINT OR SOLE NEGLIGENCE AS WELL AS THE PERDUE 'S PARTIES' INTENTIONAL TORTS, INTELLECTUAL PROPERTY INFRINGEMENTS, AND FAILURES TO MAKE PAYMENTS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT. SUCH INDEMNITY SHALL NOT APPLY, HOWEVER, TO LIABILITY ARISING FROM THE PERSONAL INJURY,DEATH,OR PROPERTY DAMAGE OF PERSONS THAT IS CAUSED BY OR RESULTS FROM THE NEGLIGENCE OF ANY PERSON OTHER THAN THE PERDUE'S PARTIES. THE INDEMNITY PROVIDED HEREINABOVE SHALL SURVIVE THE TERMINATION AND/OR EXPIRATION OF THIS AGREEMENT. 7 By this Agreement,the City does not consent to litigation or suit,and the City hereby expressly revokes any consent to litigation that it may have granted by the terms of this Agreement or any other contract or agreement, any charter, or applicable state law. Nothing herein shall be construed so as to limit or waive the City's sovereign immunity. Perdue assumes full responsibility for its services performed hereunder and hereby releases, relinquishes and discharges the City, its officers, agents, and employees from all claims, demands, and causes of action of every kind and character, including the cost of defense thereof, for any injury to or death of any person(whether they be either of the parties hereto, their employees, or other third parties) and any loss of or damage to property (whether the property be that of either of the parties hereto, their employees, or other third parties) that is caused by or alleged to be caused by, arising out of, or in connection with Perdue's services to be performed hereunder. This release shall apply with respect to Perdue's services regardless of whether said claims, demands, and causes of action are covered in whole or in part by insurance. WITNESS the signature of all parties hereto this day of , 2025. City of Baytown, Texas By: Name Title PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P. By: For the Firm K