Ordinance No. 6,450921123 -3
ORDINANCE NO. 6450
AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY
• MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A
CONTRACT WITH CAPITAL ASSISTANCE GROUP FOR THE
COLLECTION OF OUTSTANDING CLASS C WARRANTS; AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF TWENTY
THOUSAND AND N01100 DOLLARS ($20,000.00); AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown,
Texas, hereby authorizes and directs the City Manager and City
Clerk of the City of Baytown to execute and attest to a
Contract with Capital Assistance Group for the collection of
outstanding Class C warrants. A copy of said contract is attached
hereto, marked Exhibit "A," and made a part hereof for all intents
and purposes.
Section 2: That the City Council of the City of Baytown
authorizes payment to Capital Assistance Group of the sum of
TWENTY THOUSAND AND N01100 DOLLARS ($20,000.00), pursuant to the
Contract.
Section 3: This ordinance shall take effect immediately
from and after its passage by the City Council of the City of
Baytown.
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INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 23rd day of
November, 1992.
O BY J C I E, Mayor
ATTEST:
ILEEN P. HALL, City Clerk
ACIO RAMIREZ, R., City Attorney
• legal /council /11- 23- 92contractWARRANTS
CONTRACT
• This contract is made and entered into by and between Capital
Assistance Group of 801 East Border Street, Suite B, Arlington,
Texas 76010, with a mailing address of P.O. Box 639, Arlington,
Texas 76004, hereinafter called Capital Assistance Group, and the
City of Baytown of 2401 Market St., Baytown, Texas 77522
hereinafter called "City ".
WHEREAS, City has various outstanding Class C Warrants in its
Municipal Courts, and
WHEREAS, City is desirous of collecting for said warrants, and
WHEREAS, Capital Assistance Group is engaged in the business
of collecting Outstanding Class C Warrants for the cities and
municipalities.
NOW THEREFORE, Capital Assistance Group and City hereby agree
to the following:
1. City agrees that Capital Assistance Group is authorized
to collect on its Outstanding Class C Warrants and that
Capital Assistance Group is authorized to contact the
people named in the Warrants (Defendants) by mail and /or
telephone.
2. City agrees to make available to Capital Assistance Group
in a manner to be mutually agreeable, any Class C
Warrants that the City wishes to turn over to Capital
Assistance Group for collection.
3. Capital Assistance Group, when contacting the defendant,
will instruct the defendant to pay the City directly.
4. Capital Assistance Group will charge a fee of $20,000 for
pursuing collection activities for monies owed to the
City of Baytown.
5. Capital Assistance Group agrees that this fee is payment
in full for collection activities performed on 2500
backlog warrants with no additional charges.
6. Capital Assistance Group guarantees the purchase of the
collection service. The City will receive through our
collection effort a minimum of three times ($60,000) the
total purchase price of the accounts purchased within 120
days after submitting the last account for collection,
or Capital Assistance Group will refund in cash the
difference between the amount collected and triple the
amount invested for the above accounts to the purchaser.
(This Guarantee only applies to orders where the account
• balances average $50 or more.)
EXHIBIT A
•
7. Capital Assistance Group will contact the defendant six
times in a 90 -day period through our rotating telephone
and letter cycle.
8. Capital Assistance Group will send a Thank You letter on
behalf of the City to all paying defendants.
9. Capital Assistance Group agrees to keep in force a one
million dollar errors and omissions policy during the
term of the contract.
10. Capital Assistance Group shall indemnify and save
harmless the City from and against any and all loss,
cost, damage, claims, or injury on account of any matter
or thing made, done, permitted, or neglected by Capital
Assistance Group in connection with its attempts to
collect debts forwarded to or assigned to Capital
Assistance Group by the City, provided, however, that
this Agreement shall not apply to any act or omission of
the City.
11. The City agrees to indemnify and save harmless Capital
Assistance Group from and against any and all loss, cost,
damage, claims, or injury on account of any matter or
thing made, done, permitted, or neglected by the City in
connection with the information forwarded to Capital
Assistance Group on Warrants.
12. Capital Assistance Group agrees to collect on all
outstanding warrants issued by the City from November 1,
1992 through September 30, 1993 at no additional cost to
the City.
13. Capital Assistance Group agrees to collect on all backlog
ambulance bills at no additional cost to the City.
14. This contract shall become effective the 24th day of
November, 1992, and shall be in force and effect until
the 30th day of September, 1993.
EXECUTED IN DUPLICATE ORIGINALS by the CITY OF BAYTOWN and
CAPITAL ASSISTANCE GROUP, acting by and through their duly
authorized representatives, this the day of
, 1992.
CITY OF BAYTOWN
BOBBY ROUNTREE, CITY MANAGER
legal /contracts /CAPITALassistGROUP
40 2
CAPITAL ASSISTANCE GROUP
KENNY HANSMIRE, PRESIDENT