AGREEMENT

 

         This Agreement is made and entered into this _______ day of June, 2008, by and between Gila Corporation, d/b/a Municipal Services Bureau, a Texas Corporation [hereinafter, "MSB"], and the City of Lawrence [hereinafter, the "City"], who agree as follows:

 

            I.            ADMINISTRATIVE RESPONSIBILITIES.

 

A.        Defendant Contact.  MSB will mail notices, telephone or otherwise contact those individuals who the City has identified to MSB as having outstanding and unpaid fines or similar items payable to the City (these individuals are referred to herein as the “Defendants”) in order to attempt to notify Defendants of their obligation to the City.  The purpose of the contact is to offer Defendants the opportunity to resolve their obligation voluntarily, before the City contemplates further action.  The City will provide the name and last known address of the Defendants, all information regarding the date(s) of the alleged violation(s), the date judgment was entered against the Defendants in the court having jurisdiction over the matter or the date the citation was filed, and the amount of any such fine(s).  The City, to the extent available, will also supply MSB with any other information about a Defendant such as driver license number, social security number and telephone number.  When appropriate, MSB will attempt to locate Defendants when the last known address is invalid.  The information supplied to MSB by the City must be in a format acceptable to MSB and shall be provided not less frequently than monthly.

                        B.      Correct Information.  MSB will rely completely on the City to provide correct information about the Defendants' existing cases and, specifically, about any dollar amount in question and the City will immediately update and correct any information it has provided to MSB.  In particular, the City will immediately notify MSB of any payment or other satisfaction of judgment made directly to the City or any other action affecting the amount or timing of monies owed by the Defendants to the City.

 

            C.         Defendants Referred to the City.  MSB will refer Defendants who wish to resolve their obligation with the City other than by payment to the person designated by the City to respond to the Defendants' request.

 

D.        Valid Debts.  The City agrees that Defendant accounts placed with MSB for collection will be valid and legally enforceable debts and not disputed or subject to any bankruptcy proceeding, unless otherwise disclosed in writing to MSB by the City.

 

II.                 COMMISSIONS ON FINES COLLECTED.

 

A.        Commission Rate.  In accordance with Kansas State Law, up to a 33% collection fee may be added to cases referred for collection after July 1, 2007.  All cases referred by the City following the execution of this contract will have a 25% collection fee added to the total balance due.  For all Defendant accounts referred by the City to MSB for which the City is paid (in whole or in part), regardless of whether payment is accepted directly by the City or by MSB on the City's behalf and regardless of whether twenty-five (25%) percent is added to the original balance or not, the City will pay to MSB, in Travis County, Texas, a twenty (20%) percent commission rate on the amount collected.  Example: $100 original balance x 125%= $125. $125 collected x 20% fee = $25 fee.

 

All non-parking cases referred for collection prior to the execution of this contract for which the City is paid, (in whole or in part), regardless of whether payment is accepted directly by the City or by MSB on the City’s behalf, the City will pay to MSB, in Travis County, Texas, a twenty-two and one-half (22.5%) percent commission rate on the amount collected.

 

All parking cases referred for collection prior to the execution of this contract for which the City is paid, (in whole or in part), regardless of whether payment is accepted directly by the City or by MSB on the City’s behalf, the City will pay to MSB, in Travis County, Texas, a thirty-three (33%) percent commission rate on the amount collected.

 

B.         Notification of Collections.  MSB will notify the City daily of any monies it receives from Defendants towards payments of fines.  The City, through the Municipal Court, may then accept or reject the payment offered by the Defendant.  By the fifteenth of each month, MSB will provide detailed reporting to the City to identify all cases known to be collected during the prior month and to remit monies collected on the City’s behalf.  MSB makes no warranties or representations, expressed or implied, about the amount of funds that will be collected and MSB shall have no liability for any amounts uncollected.  The City authorizes MSB to endorse negotiable instruments made payable to the City and provided to MSB in payment of fines collected. The only liability of MSB will be to forward any funds collected to the City and provide a monthly invoice for commissions due on the funds collected on the City’s behalf.

For funds collected by the City, on Defendant accounts referred, the City will notify MSB as soon as possible, but not less than weekly and MSB will invoice the City for commissions due.  The City agrees to review the invoice and forward payment to MSB within 30 days of receipt of the invoice.

 

III.      TERM AND TERMINATION.

 

            The term of the contract shall be for one (1) year commencing upon signature by both parties.   By mutual consent of the City and MSB, the contract may be renewed for two (2) additional one-year terms.  It is understood and agreed that the Contract shall be renewed at the same price and under the same conditions governing the original Contract. 

 

This Agreement will remain in full force and effect until terminated by either party in writing, with thirty (30) days prior notice, to the other at the addresses set out in this section.  If the Agreement is terminated, any case information then held by MSB will be returned to the Court ninety (90) days after the date of termination.  This agreement 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. The effective date of this contract shall be the later of the date indicated above or the date that actual (live) submissions are received by MSB.

 

Notices to MSB:            Municipal Services Bureau

6505 Airport Blvd., Suite 100

                                    Austin, Texas 78752

Attention: Dawna Aigner

 

Notices to City:             Vicki Stanwix, Court Administrator

                                    City of Lawrence Municipal Court

1006 New Hampshire Street

Lawrence, KS  66044

    

                                   

 

 

 

 

 

 

 

 

IV.       OTHER PROVISIONS.

 

A.    Indemnification. 

 

(i)         The City shall be liable for and shall indemnify, defend and hold MSB harmless from and against any and all suits, actions, claims and demands, and costs, expenses and attorney fees incurred in connection (a) with information provided to MSB by the City, (b) the failure to provide information to MSB or (c) with the failure of the City to disclose to MSB that the a Defendant account is disputed, paid in part or full, satisfied, or alleged to be subject to any defense or bankruptcy proceeding.

 

(ii)        MSB will indemnify and hold harmless the City from and against any and all loss, damages, liability, claims or injury resulting from all actions performed by MSB or its agents on MSB's behalf in connection with this Agreement; provided, however, that this Agreement shall not apply with respect to any erroneous information furnished to MSB by the City nor shall it apply to any act or omission of the City.

 

B.                 Applicable Law.  This Agreement will be construed in accordance with the laws of the State of Kansas.

C.         Force Majeure. No party shall be liable for any failure to perform its obligations in connection with any action described in this Agreement, if such failure results from any act of God, riot, war, civil unrest, flood, earthquake, or other cause beyond such party's reasonable control (including any mechanical, electronic, or communications failure, but excluding failure caused by a party's financial condition or negligence).

 

 IN WITNESS WHEREOF, the parties to this Agreement have signed and delivered this Agreement on the day and year first above written.

 

MUNICIPAL SERVICES BUREAU:

 

 

By:                                                                  

Name: Bruce Cummings                                   

Title: Chief Marketing Officer                           

 

 

CITY:

 

                                               

 

 

By:                                                                  

Its                                             and representative duly authorized to execute this Agreement.