CM-2020-107 - 4/17/2020CITY OF ROUND ROCK
PROFESSIONAL SERVICES AGREEMENT
FOR COLLECTION OF
DELINQUENT ACCOUNTS RECEIVABLE WITH
MVBA, LLC
STATE OF TEXAS §
CITY OF ROUND ROCK §
COUNTY OF WILLIAMSON §
COUNTY OF TRAVIS §
KNOW ALL BY THESE PRESENTS:
THIS AGREEMENT (hereinafter 5oferred to as the "Agreement") is made and entered
into on this LL ay of the month of , 2020 by and between the CITY OF
ROUND ROCK, a Texas home-r6le municipality, whose offices are located at 221
East Main Street, Round Rock, Texas 78664-5299 (hereinafter referred to as the "City"), and
MVBA, LLC, a Texas limited liability company, whose offices are located at 700 Jeffrey Way,
Suite 100, Round Rock, Texas 78665 (hereinafter referred to as "MVBA").
ARTICLE I.
The City agrees to retain and does hereby retain MVBA to provide legal services related
to the collection of delinquent accounts receivable, including but not limited to, library fines and
fees (hereinafter referred to as "Library Fines and Fees").
ARTICLE II.
For the purpose of this Agreement, Library Fines and Fees shall be considered delinquent
and referred to MVBA when not timely paid in accordance with any applicable contract,
ordinance or statute providing for the payment of the underlying debt.
At least once each month on a date or dates agreed upon by the parties, the City will
provide MVBA with copies of, or access to, the information and documentation necessary to
collect the Library Fines and Fees that are subject to this Agreement. The City shall transmit the
information to MVBA by electronic transmission, magnetic medium or copies of physical
records.
ARTICLE III.
MVBA shall forward to the City copies of any correspondence regarding a disputed debt
received from a debtor and the request for the verification of the debt. The City will provide to
MVBA within ten (10) days of the receipt for the request for verification of the debt, copies of
all records which will verify the debt which in turn will be forwarded to the debtor by MVBA.
00440164/ss2
a",202-0467
All collection activity will be suspended on any disputed debt until the appropriate verification of
the debt is delivered to the debtor.
ARTICLE IV.
Upon consultation and agreement by both parties hereto, MVBA may institute civil legal
proceedings, including seeking writs of execution to collect Library Fines and Fees. The City
shall pay in advance of the initiation of any writ of execution or collection lawsuit, any filing
fees charged by the Court or Clerk of the Court in which the writ of execution is to be issued or
the collection lawsuit is to be filed, including the costs for service of citation. MVBA may also,
after consultation and agreement by both parties, file proofs of claims in the United States
Bankruptcy Court on behalf of the City.
ARTICLE V.
MVBA shall forward all cashier checks or money order payments made payable to the
City and any correspondence from debtor directly to the City. Cashier checks or money order
payments made payable to MVBA will be deposited daily in the MVBA Trust Account. MVBA
may also collect the amount due from the debtor by credit card or electronic draft which is
deposited directly into the MVBA Trust Account. MVBA may set up payment arrangements
and accept partial payments on any Library Fines and Fees. MVBA shall remit to the City all
payments in full received into the MVBA Trust Account at least twice a month along with an
invoice detailing the account number, name of debtor, amount paid to MVBA or the City,
MVBA fee percentage and fees earned for each account.
ARTICLE VI.
MVBA shall indemnify and hold the City harmless from and against all liabilities, losses
and/or costs arising from claims for damages, or suits for losses or damages, including
reasonable costs and attorney's fees, which may arise as a result of MVBA's performance of the
services described in this Agreement. The indemnity provision of this Agreement shall have no
application to any claim or demand which results from the sole negligence or fault of the City, its
officers, agents, employees or contractors. Furthermore, in the event of joint and/or shared
negligence or fault of the City and MVBA, responsibility and indemnity, if any, shall be
apportioned in accordance with Texas law and without waiving any defenses of either party. The
provisions of this Article are intended for the sole benefit of the parties hereto and are not
intended to create or grant any right, contractual or otherwise, to any other persons or entities.
ARTICLE VII.
For the collection of Library Fines and Fees in which the data files are referred and
transmitted from the City to MVBA, the City agrees to pay MVBA as compensation for services
provided pursuant to this Agreement, a fee of fifteen percent (15%) of the amount of the Library
Fines and Fees collected.
All compensation shall become the property of MVBA at the time of payment. The City
shall pay to MVBA said compensation on a monthly basis by check.
ARTICLE VIII.
MVBA reserves the right to return to the City all accounts not collected within one (1)
year of referral by the City, or identified as being in bankruptcy. Upon return of these accounts,
neither party will have any obligation to the other party to this Agreement.
ARTICLE IX.
The effective date of the Agreement shall be the date upon which the binding signatures
of the parties to this Agreement are affixed. The term of this Agreement shall be for sixty (60)
months from the effective date.
ARTICLE X.
Either party may, for convenience and without cause, terminate this Agreement at any
time by giving the other party thirty (30) days written "Notice of Termination of Agreement"
In the event that the City terminates the Agreement, MVBA shall be entitled to continue
its collection activity on the Library Fines and Fees accounts previously referred to MVBA for a
period of six (6) months from the date of receipt of the "Notice of Termination of Agreement."
MVBA shall receive compensation as set forth herein, on all amounts collected during said six
(6) month period. The City may, at its discretion, refer additional accounts to MVBA after
"Notice of Termination of Agreement" has been received by MVBA. Upon expiration of the six
(6) month period, all Library Fines and Fees accounts shall be returned to the City by MVBA.
ARTICLE XI.
The City recognizes and acknowledges that MVBA owns all right, title and interest in
certain proprietary software that MVBA may utilize in conjunction with performing the services
provided in this Agreement. The City agrees and hereby grants to MVBA the right to use and
incorporate any information provided by the City ("City's Information") to update the databases
in this proprietary software and, notwithstanding that City Information has been or shall be used
to update the databases in this proprietary software, further stipulates and agrees that the City
shall have no rights or ownership whatsoever in and to the software or the data contained
therein, except that the City shall be entitled to obtain a copy of such data that directly relates to
the City's accounts at any time.
ARTICLE XII.
For purposes of sending notice under the term of this Agreement, all notices from the
City shall be sent to MVBA by certified United States mail to the following address or delivered
by hand or courier, to the following address:
MVBA, LLC
700 Jeffrey Way, Suite 100
Round Rock, Texas 78665
All notices to the City shall be sent by certified United States mail or delivered by hand
or courier, to the following address:
City of Round Rock, Texas
Attention: City Manager
221 East Main Street
Round Rock, Texas 78664
and to:
City Attorney
Attention: Stephan L. Sheets
309 East Main Street
Round Rock, TX 78864
ARTICLE XIII.
Arbitration. The City and MVBA hereby expressly agree that no claims or disputes
between the parties arising out of or relating to this Agreement or a breach thereof shall be
decided by any arbitration proceeding, including without limitation, any proceeding under the
Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute.
Entire Agreement. This Agreement contains the entire agreement between the parties hereto
and may only be modified in a written amendment, duly executed by the authorized representatives
for both parties.
Representation of Other Governmental Entities. The City acknowledges and consents to the
representation by MVBA of other governmental entities that may be seeking the payment of fines
and fees or other claims from the same person(s) as the City.
Jurisdiction and Venue. This Agreement is made and is to be interpreted under the laws of
the State of Texas. This Agreement shall be enforceable in Round Rock, Texas, and if legal action
is necessary by either party with respect to the enforcement of any or all of the terns or conditions
herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be
governed by and construed in accordance with the laws and court decisions of the State of Texas.
Compliance with Laws. Charters and Ordinances. MVBA, its agents and employees shall use
best efforts to comply with applicable federal and state laws, the Charter and Ordinances of the City
of Round Rock, as amended, and with all applicable rules and regulations promulgated by local,
state and national boards, bureaus and agencies. In accordance with Chapter 2270, Texas
Government Code, a governmental entity may not enter into a contract with a company for goods or
services unless the contract contains written verification from the company that it: (1) does not
4
boycott Israel; and (2) will not boycott Israel during the term of the contract. The signatory
executing this Agreement on behalf of MVBA verifies MVBA does not boycott Israel and will not
boycott Israel during the terns of this Agreement.
Severability. In the event that any provision(s) of this Agreement shall for any reason be held
invalid or unenforceable, the invalidity or unenforceability of that provision(s) shall not affect any
other provision(s) of this Agreement, and it shall be further construed as if the invalid or
unenforceable provision(s) had never been a part of this Agreement.
Multiple Originals. This Agreement may be executed in any number of counterparts, and
each such counterpart shall be deemed an original for all purposes.
IN WITNESS WHEREOF, City and MVBA have executed this Agreement on the dates
indicated.
City of and Rock, Texas
By
Printed N n
Title:
Date Signed: • r 7• 2 D
Attest:
By:
_M?AAaN&
Saral. White, City Clerk
For CityIL"
d as to
By: � . t
Stephan 1. Sheets, City Attorney
U1
By:
PrintedX:Pi
ie: / a
Title:d r
Date Signed: oZ 34
City of Round Rock
ROUND ROCK
TEXAS Agenda Item Summary
Agenda Number:
Title: Consider executing an agreement with MVBA, LLC for collection of
delinquent library fines and fees.
Type: City Manager Item
Governing Body: City Manager Approval
Agenda Date: 4/17/2020
Dept Director: Michelle Cervantes
Cost:
Indexes:
Attachments: MVBA Contract 040920.pdf
Department: Library Department
Text of Legislative File CM-2020-107
Consider executing an agreement with MVBA, LLC for collection of delinquent library fines and
fees. Library fines and fees in which data files are referred and transmitted from the City to
MVBA, the City agrees to pay MVBA as compensation for services provided pursuant to this
Agreement, a fee of fifteen percent (15%) of the amount of the Library fines and fees collected.
Cost: Fifteen percent (15%) of the amount of Library fines and fees collected.
Source of Funds: 100 00000 4515
City of Round Rock Page 1 Printed on 411512020