I got solution well it's a bit clumsy but still it does the job so I guess it is ok.
First I get list of all the Accounts roughly around 2500. Then I get all contacts from the accounts and add them to a collection. Then that becomes my $contacts variable for the view. I si actually pretty silly way of doing this but still the job is done and when you add cache on top of it it actually is not so clumsy.
If someone has better solution please feel free to post it here so other members can use it
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