Ordinance No. 9,345ORDINANCE NO. 9345
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, REJECTING THE BIDS FOR THE ANNUAL COLLECTION OF
WARRANTS CONTRACT; AWARDING THE ANNUAL COLLECTION OF
WARRANTS CONTRACT — REBID TO STATE MUNICIPAL SERVICES, INC.,
AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF
FORTY -FNE THOUSAND AND NO /100 DOLLARS ($45,000.00); MAKING
OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
WHEREAS, the City Council of the City of Baytown did authorize the Purchasing
Department for the City of Baytown to advertise for bids for the Annual Collection of Warrants
Contract to be received December 18, 2001; and
WHEREAS, all bids were rejected and the City of Baytown's Purchasing Department
advertised again for bids for the Annual Collection of Warrants Contract to be received March 25,
2002;
WHEREAS, notice to bidders as to the time and place, when and where the contract would
be let was published pursuant to the provisions of Chapter 252 of the Texas Local Government
Code; and
WHEREAS, all bids were opened and publicly read at City Hall.at 2:00 p.m., Monday,
March 25, 2002, as per published notice to bidders; and
WHEREAS, upon rebidding this "contract State Municipal Services, Inc., submitted the most
economical bid; NOW THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown hereby rejects the bids that were
received on December 18, 2001, for the Annual Collection of Warrants Contract.
Section 2: That the City Council of the City of Baytown hereby accepts the bid of State
Municipal Services, Inc., for the Annual Collection of Warrants Contract - Rebid for the sum of
FORTY -FIVE THOUSAND AND NO /100 DOLLARS ($45,000.00) and authorizes payment
thereof.
Section 3: That pursuant to the provisions of Texas Local Government Code Annotated
§252.048, the City Manager is hereby granted general authority to approve any change order
involving a decrease or an increase in costs of TWENTY -FNE THOUSAND AND NO 1100
DOLLARS ($25,000.00) or less, subject to the provision that the original contract price may not be
® increased by more than twenty -five percent (25 %) or decreased by more than twenty -five percent
(25 %) without the consent of the contractor to such decrease.
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 1 It'' day of April, 2002.
PE E C. ALFARO, M or
ATTEST:
GA$4 W. , IITH, City Clerk ,
APPROVED AS TO FORM:
NACIO RAMIREZ, , City Attorney
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CONTRACT FOR THE COLLECTION OF WARRANTS
STATE OF TEXAS §
COUNTY OF HARRIS §
This Contract for the Collection of Warrants hereinafter known as "Agreement," is made and
entered into this day of April, 2002, by and between the City of Baytown, a municipal
corporation located in Harris and Chambers Counties, Texas, hereinafter known as the "City," and STATE
MUNICIPAL SERVICES, INC., a Texas corporation, hereinafter known as the "Company."
I. DEFINITIONS
As used in this Agreement, the following words and phrases are defined to mean:
City: means and refers to the City of Baytown, Texas, and all attendant boards, agencies,
commissions and related bodies, along with their respective officers, agents and
employees.
City Manager: means the City Manager of the City of Baytown or his designated representative.
Company: means State Municipal Services, Inc., its volunteers, officers, directors, agents,
employees and assigns.
Representative of
the Company: means JEFF HIEMENZ, or his duly designated representative.
II. COMPANY'S OBLIGATIONS
1. Warrant Collection: The Company is hereby authorized to collect outstanding Class C
Misdemeanor Warrants ("Warrants") issued by the City of Baytown and made available to the Company in
a professional, ethical, and lawful manner via the mail, telephone or any other means which the Company
deems appropriate.
a. Payment of Collections: The Company hereby agrees to remit any and all funds
collected as a result of this Agreement to the City on or before the tenth (IWh) day of each month
throughout the term of this Agreement. Additionally, at such time, the Company agrees to submit
a complete and accurate report detailing its collection efforts during the period and during the term
of the contract, which report shall include, but not be limited to, an accounting of the cases and
docket numbers cleared, the monies and the date collected, the cases in which a partial payment
has been received, the outstanding accounts to be collected, and any other information which the
City may reasonably require. The report shall be in a form and format approved by the City.
b. Form of Collections: The Company will use its best efforts to ensure that all monies
collected will be in the form of a cashier's check or money order made payable to the order of the
City. Personal checks and cash payments will be discouraged.
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2. General: The Company shall furnish, by fax, or e-mail, to the Municipal Court on a daily
basis, the name, docket number, and amount paid per warrant.
III. CITY'S RIGHTS AND DUTIES
1. Exclusivity of Warrant Collection Services: During the term of this Agreement, the City agrees
not to refer its warrants to any other party for the purpose of collecting the same. However, both the
Company and the City agree that nothing contained herein shall prohibit the City's Police Department, any
other public law enforcement agency or court personnel to serve or collect a Warrant, for the City
expressly reserves the right for the above-enumerated persons to collect Warrants.
2. City's Records of Warrant Collections Subject to Agreement: City will maintain a daily
record of the warrants and bills which have been assigned to the Company and collected and/or paid to the
City. Such report shall be made available to the Company upon request.
3. Other Available Information: The City will provide, through the Municipal Court, current lists of
outstanding warrants subject to this Agreement, along with out-of-town/out-of-state addresses, including
the names, dates of birth, home addresses, and telephone numbers, and business addresses and telephone
numbers,which the City may have in its open records.
4. Warrants Subject to Agreement: The City may, in its sole discretion, assign sixty (60) day
past-due warrants with local addresses to the Company for collection. Additionally the City may at any
time assign to the Company such other warrants as it deems advisable and in the best interest of the City.
Any warrant inactivated due to arrests, re-appearing before the Judge or paying before turned over to
Company will not be subject to this Agreement and shall not be charged to the City by Company.
IV. TERM
1. Initial Term: This Agreement shall be in effect and shall continue for an initial term of one year
from and after the date of this Agreement is executed by the City, unless sooner terminated under the
provisions of this Agreement.
2. Renewal Period: This contract may be renewed for three (3) additional one (1) year periods,
each additional year renewable upon the City of Baytown's approval and the receipt by the City of Baytown
of written notice from the Bidder of his desire to renew said contract at least thirty (30) days prior to the
expiration of the contract. Such renewal shall be for the same compensation set forth in the Invitation to Bid.
3. Extension: Additionally, the Company understands and agrees that, upon the City's written
request, the Agreement may be extended for a period of time not to exceed two (2) months after the
expiration of the initial term or any renewal thereof for the same compensation as the initial term or the
renewal period immediately preceding the extension. Nothing contained herein, however, shall obligate
the City during the extension period to renew and/or relet an agreement for collection services with the
Company.
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V. COMPENSATION FOR SERVICES
1. Fees:
a. Warrant Collection Services: The Company shall receive, as compensation for warrant
collection services to be rendered under this Agreement, a fee equal to twelve percent (12%) of
all funds and bills collected which have been turned over to the Company.
2. Invoices and Records Submitted: Company will send an invoice along with other billing
information and substantiating documentation to the City each month indicating the amount
allegedly due. The invoice shall be sent to:
City of Baytown
P.O. Box 424
Baytown, TX 77522-0424
Attention: ACCOUNTS PAYABLE.
And a copy to:
City of Baytown
P.O. Box 424
Baytown, TX 77522-0424
Attention: MUNICIPAL COURT
The City shall make the payment which the City deems in its sole discretion is appropriate within thirty
(30) days of the later of the receipt of the invoice or the receipt of the money due the City for the invoice
period.
VI. INDEPENDENT CONTRACTOR
It is mutually understood and agreed that nothing in this Agreement is intended or shall be
construed as in any way creating or establishing the relationship of partners or co-partners between the
parties hereto, or as constituting the Company as an agent or representative of the City for any purposes or
in any manner whatsoever. The relationship of the Company to the City shall be that of an independent
contractor.
VII. PARTIAL PAYMENTS
Company may propose a payment plan for Individuals with outstanding warrants. Such payment
plan shall consist of not more than two payments if the overall fine is $125.00 or less and not more than
four payments for any fine in excess of$125.00.
VIII. ACCESS TO COMPANY'S RECORDS AND FINANCIAL INFORMATION
Company will keep its records on a computer and will post payments on a daily basis. City can
contact Company from 7:00 a.m. to 6:00 p.m. Monday through Friday, exclusive of City holidays
concerning any and all Warrants. Furthermore, the City shall have the right through its agents and
employees to audit and examine at all reasonable times, the Company's books and financial and
operational records which may be reasonably required by the City in order to enforce the terms of this
Agreement or to evaluate the Company's performance. Financial records will be maintained with such
adequacy so as to allow identification of the source of all revenue and expenditures related to this
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Agreement. The Company shall make copies of information as and when requested by the City at no
additional charge to the City.
IX. INDEMNIFICATION
THE COMPANY AGREES TO AND SHALL INDEMNIFY, HOLD HARMLESS, AND
DEFEND THE CITY, ITS OFFICERS AGENTS AND EMPLOYEES, (HEREINAFTER
COLLECTIVELY 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 ATTORNEYS' FEES, FOR INJURY TO OR DEATH OF ANY
PERSON, OR FOR ANY AND ALL DAMAGES ARISING OUT OF OR IN
CONNECTION WITH THE WORK DONE OR SERVICES PERFORMED BY THE
COMPANY PURSUANT TO THIS AGREEMENT, THE CONDUCT OR
MANAGEMENT OF THE COMPANY'S BUSINESS OR ACTIVITIES, OR FROM ANY
ACT OR OMISSION BY THE COMPANY, WHERE SUCH INJURIES, DEATH OR
DAMAGES ARE CAUSED BY THE JOINT NEGLIGENCE OF THE CITY AND ANY
OTHER PERSON OR ENTITY. IT IS THE EXPRESSED INTENTION OF THE
PARTIES HERETO, BOTH THE COMPANY AND THE CITY, THAT THE
INDEMNITY PROVIDED FOR IN THIS PARAGRAPH IS INDEMNITY BY THE
COMPANY TO INDEMNIFY AND PROTECT THE CITY FROM THE
CONSEQUENCES OF THE CITY'S OWN NEGLIGENCE, WHERE THAT
NEGLIGENCE IS A CONCURRING CAUSE OF THE RESULTING INJURY, DEATH
OR DAMAGE. FURTHERMORE, THE INDEMNITY PROVIDED FOR IN THIS
PARAGRAPH SHALL HAVE NO APPLICATION TO ANY INJURY, DEATH OR
DAMAGE WHERE THE INJURY, DEATH OR DAMAGE RESULTS FROM THE
SOLE NEGLIGENCE OF THE CITY UNMIXED WITH THE NEGLIGENCE OF ANY
OTHER PERSON OR ENTITY. IN THE EVENT THAT ANY ACTION OR
PROCEEDING IS BROUGHT AGAINST THE CITY BY REASON OF ANY OF THE
ABOVE, THE COMPANY FURTHER AGREES AND COVENANTS TO DEFEND THE
ACTION OR PROCEEDING BY LEGAL COUNSEL ACCEPTABLE TO THE CITY.
It is agreed by both parties hereto that the indemnity provision hereinabove shall survive the expiration or
termination of this Agreement.
X. NOTICE
All notices required to be given hereunder shall be given in writing either by telecopier, overnight,
or facsimile transmission, certified or registered mail at the respective addresses of the parties set forth
herein or at such other address as may be designated in writing by either party. Notice given by mail shall
be deemed given three (3) days after the date of mailing thereof to the following addresses:
Company
STATE MUNICIPAL SERVICES, INC.
P. O. BOX 121107
ARLINGTON, TEXAS 76012-1107
ATTN: ROSS CRUTCHFIELD
TEL: 1-817-275-4737 OR 1-800-809-8875
FAX: 1-817-275.4988
EMAIL: rosscrutchfield(d)yahoo.com or state(aMash.net
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CITY
_ City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, TX 77522
XI. TIME OF THE ESSENCE
Both the Company and the City acknowledge that time is of the essence in this Agreement.
XII. LIQUIDATED DAMAGES
Both the Company and the City agree that time is of the essence in the payment of all monies due
the City pursuant to this Agreement and that the time allotted for each monthly payment described herein
is reasonable times for the payment of each, taking into consideration all conditions, including, but not
limited to, the economic environment and conditions prevailing in the City of Baytown. The City and the
Company understand and agree that a breach of this Agreement as to time of payment will cause damage
to the City and further agree that such damage cannot be accurately measured and that ascertainment will
be difficult. Therefore, as part of the consideration for the awarding of this Agreement, the parties agree
that for each and every calendar day any payment due hereunder or any portion thereof remains delinquent
as set forth in this Agreement, the City may charge and the Company shall pay, as part of the monthly
collection amount owed, the sum of one hundred dollars ($100) as minimum liquidated damages.
However, the foregoing agreement as to liquidated damages constitutes only an agreement by the City and
the Company as to the minimum amount of damages which the City will sustain in any event by reason of
the Company's failure to make payments within specified time periods. Should the City suffer damage
over and above the minimum amount specified by reason of the Company's failure to timely pay in strict
accordance with this Agreement, the City may recover such additional amount. The City will have the
right to recover such amount from the Company; all such remedies shall be cumulative and the City shall
not be required to elect any one nor deemed to have made an election by proceeding to enforce any one
remedy.
XIII. INSURANCE
The Company shall at all times during this Agreement maintain in full force and effect insurance as
provided herein and which meets the minimum amounts listed below. A certificate of insurance, or a copy
of the insurance policies, shall be furnished to the City and shall provide that the City shall receive thirty
(30) days' prior written notice before any change or cancellation of any policy.
(1) Commercial general liability: This coverage must have an aggregate of$2,000,000 with a
minimum of$1,000,000 per occurrence.
(2) Statutory workers'compensation: This coverage must comply with all statutory amounts
as required by Texas law and shall include a Waiver of Subrogation on behalf of the City.
(3) Automobile Liability: This coverage shall have combined single limits of$500,000.00, or
limits of $100,000/$300,000/$100,000 are acceptable. All automotive coverage is to include all owned
and hired autos, if applicable.
(4) All policies are to be of the occurrence form.
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5 Should an( ) y insurance required by this Agreement lapse, the Company shall immediately
cease all operations as of the time and date of such lapse, and shall not resume any operations until
authorized in writing by the City. If the lapse period extends fifteen (15) days, this Agreement shall
automatically terminate with no notice to the Company required and the Company shall be in breach of
this Agreement.
(6) The City of Baytown shall be named as an ADDITIONAL INSURED on said policies of
insurance. The Company shall provide the City with a certificate evidencing the City of Baytown as
ADDITIONAL INSURED for coverage after award of bid and prior to the performance of any services
pursuant to this Agreement.
(7) All insurance carriers providing coverage should have an A.M. Best rating of A or higher
and be licensed to do business in the State of Texas.
(8) All certificates of insurance required herein shall be provided to the City as soon as
practical and in no event later than ten (10) days prior to the performance of any services by the Company
under this Agreement.
XIV. BOND REQUIRED
Both the Company and the City agree that the Company will execute and deliver to the City a
fidelity bond in an amount of at least $50,000 to protect the City against fraud, embezzlement or
misappropriation of public funds by the Company. The parties hereto expressly agree that this Agreement
shall not be in effect until such bond is furnished to and approved by the City. The cost of the premium
for the bonds shall be borne by the Company. The bond required herein must be issued by a reliable surety
company authorized to do business in the State of Texas. No other bonds shall be required.
XV. TERMINATION
The City, besides all other rights or remedies it may have, shall have the right to terminate this
Agreement without cause upon thirty (30) days' written notice from the City Manager to the Company of
the City's election to do so. Furthermore, the City may immediately and without notice terminate this
Agreement if the Company breaches this Agreement. A breach of this Agreement shall include,but not be
limited to, the following:
(a) failing to pay insurance premiums, liens, claims or other charges;
(b) failing to pay any payments due the City, State or Federal Government from the Company
or its principals, including, but not limited to, any taxes, fees, assessments, liens, or any
payments identified in this Agreement;
(c) the institution of voluntary or involuntary bankruptcy proceeding against the Company;
(d) the dissolution of the Company;
(e) the violation of any provision of this Agreement; and/or
(f) the abandonment of the Agreement or any portion thereof and discontinuance of the
Company's services or any portion thereof.
Upon delivery of any notice of termination required herein, the Company shall discontinue all
services in connection with the performance of the Agreement and shall proceed to cancel promptly
existing orders and contracts insofar as such orders or contracts are chargeable to the City pursuant to this
Agreement.
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Within ten (10) days after receipt of the notice of termination, the Company shall forward all
revenues collected to date and submit a final statement showing in detail the services satisfactorily
performed.
XVI. COMPLIANCE WITH RULES AND REGULATIONS
The Company shall comply with all rules, regulations, and laws of the United States of America,
the State of Texas, and all laws, regulations, and ordinances of the City of Baytown as they now exist or
may hereafter be enacted or amended.
XVII. SALE OF INTEREST
The Company may not sell, transfer or assign all or part interest in its rights or obligations under
this Agreement to another party or parties without the prior express written approval of the City Manager
of such sale or assignment, nor shall Company assign any monies due or to become due to it hereunder
without the previous consent of the City Manager. The City may require any records or financial
statements necessary in its opinion to ensure such sale or assignment will be in the best interest of the
City; however, the City hereby reserves the right to withhold its consent for any reason or no reason
whatsoever.
XVIII. NON-WAIVER
Failure of either party hereto to insist on the strict performance of any of the agreements herein or
to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be
considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance
with any other obligation hereunder to exercise any right or remedy occurring as a result of any future
default or failure of performance.
XIX. GOVERNING LAW
This Agreement shall in all respects be interpreted and construed in accordance with and governed
by the laws of the State of Texas and the City, regardless of the place of its execution or performance. The
place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas.
XX. SEVERABILITY
All parties agree that should any provision of this Agreement be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Agreement, which shall continue
in full force and effect.
XXI. CONDITIONS BEYOND CONTROL
Neither the City nor the Company shall be required to perform any term, condition or covenant of
this Agreement so long as performance is delayed or prevented by force majeure, which shall mean acts of
God, drought, floods, material or labor restrictions by any governmental authority, and any other cause not
reasonably within the control of either party in which, by the exercise of due diligence, the City or the
Company is unable to prevent or overcome.
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3MI. VENUE
This Agreement shall in all respects be interpreted and construed in accordance with and governed
by the laws of the State of Texas and the City,regardless of the place of its execution or performance. The
place of making and the place of performance for all purposes shall be Baytown, Harris County,Texas.
XIi M. NO RIGHT TO ARBITRATION
Notwithstanding anything to the contrary contained in this Agreement, the City and the Company
hereby agree that no claim or dispute between the City and the Company arising out of or relating to this
Agreement shall be decided by any arbitration proceeding, including, without limitation, any proceeding
under the Federal Arbitration Act (9 U.S.C. Sections 1-14), or any applicable State arbitration statute,
including, but not limited to, the Tucas General Arbitration Act, provided that in the event that dre City is
subjected to an arbitration proceeding notwithstanding this provision, the Company consents to be joined
in the arbitration proceeding if the Company's presence is required or requested by the City of complete
relief to be recorded in the arbitration proceeding.
XXIV. MiSCELLANi✓OUS PROVISIONS
This Agreement shall not bestow any rights upon any third party,but rather, shall bind and benefit
the Company and the City only.
This Agreement contains all the agreements of the parties relating to the subject matter hereof and
is the full and final expression of the agreement between the parties. This Agreement shall not be
amended or modified without the express written consent of both parties hereto.
The parties agree that this Agreement shall not be construed in favor of or against any party on the
basis that the party did or did not author this Agreement.
XXV. AUTHORITY
The officers executing this Agreement on behalf of the parties hereby represent that such officers
have full authority to execute this Agreement and to bind the party he/she represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies,
each of which shall be deemed to be an original, but all of which shall constitute but one and the same
Agreement on the l 1 `r*+ day of April, 2002, the date of execution by the City Manager of the City of
Baytown,
STATE MUN IFAL SERVICES, INC.
by:
NZ, Vice P ident
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CITY OF BAYTOWN:
MONTE MERCER, City Manager
AM IAL—Snl
GAAY W. SbUrH., City Clerk
APPROVED AS TO FORM:
ACIO RAMIREZ, S ty Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
Before me, the undersigned notary public, on this day personally appeared JE,FF HIEMENZ, in his
capacity as Vice President of State Municipal Services, Inc,, a Texas corporation, and on behalf of such
corporation,
✓ vwn tv me;
proved to me on the oath of ; or
proved to me through his/her current
(description of identification card or other document issued by the federal government or
any state govemm=t that contains the photograph and signature of the acknowledging
person)
(�/onc)
to be the person whose name is subscribed to the foregoing inst:rv.ment, and acknowledged to me that
belshe executed that instrument for the purposes and consideration therein expressed.
Given under my hand and seal of office this day of April, 2002.
LESTA C.SAUER Noti6 Public * State of T L- X A S
e NOTARY PUBLIC My commission expires:
9 STATE OF TEXAS
My Comm.W.,l t•oa-20 5
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