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Home My WebLink About113560 0 1 RESOLUTION NO. 11,356 2 A RESOLUTION TO AUTHORIZE AN AGREEMENT WITH 3 COLLECTION SERVICE, INC., TO COLLECT OUTSTANDING 4 JUDGMENTS FOR FINES IN THE LITTLE ROCK MUNICIPAL COURT; 5 AND FOR OTHER PURPOSES. 6 7 WHEREAS, the City has a number of outstanding fines that have been assessed in B the various divisions of the Little Rock Municipal Court, but have never been collected, 9 and 10 WHEREAS, Arkansas law permits a City to use a collection agency to collect these 11 fines, and prior to January 1, 2002, the City indicated its interest in doing so and began 12 internal discussions to set up such a procedure, and 13 WHEREAS, after a competitive selection process it was determined that Collections 14 Services, Inc., of Little Rock, Arkansas, was the most qualified firm to perform this service, 15 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF 16 THE CITY OF LITTLE ROCK, ARKANSAS: 17 Section 1. The City Manager is authorized to enter into an agreement in Is substantially the form as that attached as Exhibit A to this resolution, and as approved by 19 the City Attorney, with Collection Services, Inc., to pursue municipal court judgments in 20 the form of outstanding fines that have not been paid. 21 Section 2. To the extent that any amounts collected constitute.ten percent (10 %) 22 of fines and forfeitures that would be collected by the City, such amount shall be 23 deposited into the City of Little Rock, Ark., Police Pension Fund. 24 Section 3. By entry into this agreement, the City and Collection Services, Inc., 25 understand that Collection Services, Inc., shall be responsible for compliance with all state [PAGE 1 OF 5] Resolution Contract with Collections, Inc. for outstanding municipal court judgments 0 0 1 laws that deal with the collection of municipal court judgments, and that should there be 2 any claim that Collection Services, Inc., failed to comply with state statute or constitutional 3 provisions, and the City is held liable for such failure that Collection Services, Inc., shall 4 indemnify the City for any costs, fees, judgments, or expenses of any nature whatsoever 5 incurred as a result of such claim. 6 Section 4. Severability. In the event any title, section, paragraph, item, sentence, 7 clause, phrase, or word of this resolution is declared or adjudged to be invalid or 8 unconstitutional, such declaration or adjudication shall not affect the remaining portions 9 of the resolution which shall remain in full force and effect as if the portion so declared or 10 adjudged invalid or unconstitutional was not originally a part of the resolution. 11 Section 5. Repealer. All ordinances and resolutions are hereby repealed to the 12 extent of such inconsistency. 13 ADOPTED: August 20, 2002 14 ATTEST: APPROVED: 15 16 1 17 Na 4y Woo/d, City Clerk Vrn Dailey, Mayor 18 APPROVED AS TO LEGAL FORM: 19 21 Thomas M. Carpenter, City Attorney 22 // 23 24 // 25 // 26 [PAGE 2 OF 51 Resolution Contras with CnRertiom, Im, for outstanding municipal mud judgments 0 0 AGREEMENT THIS AGREEMENT, made and entered into as of the 26th day of August, 2002, by and between Collection Service, Inc., an Arkansas corporation licensed to do business in Arkansas, hereinafter called "Collection Agency ", and the City of Little Rock, Arkansas, hereinafter called "Client." WITNESSETH WHEREAS, Client from time to time has unpaid judgments and accounts which it is unable to collect through ordinary processes of collection available to it, and desires Collection Agency to collect such judgments and accounts that City refers to Collection Agency; and WHEREAS, Collection Agency is equipped to collect unpaid judgments and accounts of Client and desires to handle such accounts as may be referred by Client; NOW, THEREFORE, it is mutually agreed as follows: 1. Collection Agency agrees to accept for collection such unpaid judgments and accounts as Client may refer to Collection Agency from time to time. 2. Collection Agency agrees to cancel and return judgments and accounts at Client's request. 3. Collection Agency will promptly remit to Client one hundred percent (100 %) of all collections collected by Collection Agency. Client will remit to Collection Agency its fee no later than ten (10) days after receiving a statement for such fees. 4. Client hereby agrees that fees for Collection Agency shall be the following: A. Twenty five percent (25 %) on all judgments or accounts deemed by Client to be less than one year old — i.e., a judgment or account that has not been owed to the Client for more than one calendar year from the date of referral; ' AGREEMENT: City of Little Rock ancjtnllection Service, Inc. . 26 AUG 2002: Page 2 of 3 B. Thirty percent (30 %) on all judgments or accounts deemed by Clint to be more than one year old — i.e., a judgment or account that has been owed to the Client for over one year. 5. On or about the fifth (51') day of the month, Collection Agency will submit its report to Client listing the judgments or accounts collected or caused to be paid directly to the Client, in whole or in part, during the proceeding month, accompanied by remittance to Client. 6. Collection Agency shall work as an independent contractor, shall use its own letterhead for all correspondence and at all times shall make clear to any judgment debtors, or account debtors, that it is acting for Client, but that it is not a part of the Client's organization. 7. Collection Agency agrees to supply Client with a monthly report, including monthly collection totals and percentages including year to date totals. 8. Collection Agency shall comply with all state and federal civil rights laws in the performance of this Agreement, and shall further comply with all rules, regulations and provisions of the federal bankruptcy laws; in the event any action by Collection Agency pursuant to this Agreement results in a successful state or federal civil rights or discrimination claim against Client, Collection Agency shall be responsible for, and shall indemnify Client for, all costs, judgments, fees, attorneys fees, or expenditures or expenses of any nature whatsoever, incurred by Client in the defense of such claim, notwithstanding the fact that Client may choose to use its own legal counsel to defend such claim. 9. Collection Agency, by entry into this Agreement, assures that it is aware of and shall comply with any and all special Arkansas statutes that deal with the collections of judgments and accounts from a municipal court, or the judgment of account of any court, on behalf of the City. AGREEMENT: City of Little Rock an *llection Service, Inc. • 26 AUG 2002: Page 3 of 3 10. This Agreement shall be in full force and effect for a period of one year from the date of its execution, provided: (A) Either party may voluntarily terminate this Agreement upon thirty (30 days written notice to the other of the intent to do so; if such termination occurs, Collection Agency shall be entitled to payment for any collections received after the date of termination which were received because of the actions of Collection Agency; further, Collection Agency shall turn over all records to the City on the date that the Agreement is terminated; (B) Either party may terminate this Agreement as quickly as possible for violation of the terms and provisions of this Agreement, and upon notice of such termination shall meet to arrange the return of all files to the City, and to negotiate the payment of any outstanding fees due to Collection Agency. WITNESS the signature of the parties as to the date and year noted above. COLLECTION SERVICES, INC. By: �N7�L`%i� CITY OF LITTLE ROCK, ARKANSAS pursuant to authority granted in Little Rock, Ark. Resolution No. 11,356 (August 20, 2002).