RE 2004-01-27.2RESOLUTION NO. 2002-0127.2
A RESOLUTION AUTHORIZING THE CITY OF COPPELL,
THROUGH ITS CITY COUNCIL, TO AMEND THE EXISTING SERVICES
CONTRACT WITH LINEBARGER GOGGAN BLAIR & SAMPSON, LLP IN
ASSOCIATION WITH NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P
WHEREAS, the City of Coppell contracts with Linebarger Goggan Blair & Sampson, LLP (formerly
known as Linebarger Heard Goggan Blair Graham Pe~a & Sampson, LLP) in association with
Nichols, Jackson, Dillard, Hager & Smith, L.L.P. to enforce the collection of all delinquent taxes,
penalty and interest owing to the City of Coppell, by virtue of a written contract dated May 19, 2001
("the Contract"); and
WHEREAS, the Texas Property Tax Code Sections 33.07 and 33.08 were amended by the Seventy
Seventh Legislature by Act of May 17, 2001; and
WHEREAS, under said Sections 33.07 and 33.08, the governing body of the City of Coppell is
empowered to authorize the addition of a collection penalty in an amount that does not exceed the
amount of the compensation specified in the contract with the private law firm; and
WHEREAS, the City of Coppell desires to amend the existing contract with Linebarger Goggan
Blair & Sampson, LLP as per the attached Amendment No. 1 to the Contract; and,
WHEREAS, said ad valorem taxes for the year 2003 and taxes for all future years that become
delinquent on or after February 1 but not later than May 1, that remain delinquent on July 1 of the
year in which they become delinquent, incur an additional penalty in the amount of twenty percent
(20%) of taxes, penalty and interest due, pursuant to Texas Property Tax Code Section 6.30 and
33.07, as amended has been approved by ordinance number 2003-1048 by the City Council on
September 9, 2003; and,
WHEREAS, said ad valorem taxes for the year 2003 and taxes for all future years that remain
delinquent on or after June 1 under Texas Property Tax Code Sections 26.07(f), 26.15(e), 31.03,
31.031, 31.032 or 31.04 incur an additional penalty in the amount of twenty percent (20%) of taxes,
penalty and interest due, pursuant to Texas Property Tax Code Section 6.30 and Section 33.08, as
amended in accordance with state law.
NOW, THEREFORE, BE IT RESOLVED by the City of Coppell, that the attached Amendment
No. 1 to Contract between City of Coppell and the law firm ofLinebarger Goggan Blair & Sampson,
LLP in association with Nichols, Jackson, Dillard, Hager & Smith, L.L.P. is hereby PASSED and
APPROVED on this day, and said firm shall collect in accordance with state law the penalties and
interest approved and authorized under the ordinances approved by the City of Coppell.
This resolution shall take effect immediately from and after its passage in accordance with the
provisions of the law.
PASSED AND APPROVED this Z~ay off>~t ~t4 a ,2004.
THE CITY OF COPPELL, TEXAS
By ~x_~
Do~t~s-N. StoVdr,~Mayor
Libtl~y ~) ~ity ~;e~'ary
ert I-iagerl ~Attomey
2
STATE OF TEXAS
COUNTY OF DALLAS
AMENDMENT NO. 1
TO THE CONTRACT BETWEEN
CITY OF COPPELL AND
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
IN ASSOCIATION WITH
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P.
WHEREAS, on June 27, 2001, the City of Coppell (hereinafter "CITY") approved a
Contract ("the Contract" between the CITY and the law firm ofLINEBARGER GOGGAN BLAIR
& SAMPSON, LLP, Attorneys at Law (formerly known as Linebarger Heard Goggan Blair Graham
Pefia 8,: Sampson, LLP) in association with NICHOLS, JACKSON, DILLARD, HAGER &
SMITH, L.L.P. (hereinafter "FIRM"); and
WHEREAS, the Texas State Legislature has found and declared, by its enactment of TEX.
TAX CODE § 6.30(c), that a twenty (20%) commission on the taxes, penalty and interest collected
is a reasonable fee for delinquent tax collection services of a private attorney; and
WHEREAS, TEX. TAX CODE §§ 33.07 and 33.08 were amended by the Seventy Seventh
Legislature, by Act of May 17, 2001, to provide that certain taxes, in order to defray the costs of
collection, may incur an additional penalty equal to the compensation specified in the contract with
private counsel; and
WHEREAS, the source of the funds for private counsel's compensation is the additional
penalty paid by the delinquent taxpayer, rather than the public treasury; and
WHEREAS, the CITY from time to time has the need to employ additional land-based and
miscellaneous receivable account collection services and by this amendment to the Contract
authorizes the FIRM to perform certain additional collection services on a selected basis;
NOW THEREFORE, for and in consideration of the recitals shown above, of the FIRM'S
increased costs of doing business, and of enhanced services by the FIRM that will result from the
devotion of additional technological and human resources toward collection of delinquent taxes, the
Contract, by execution of this Amendment No. 1, is amended hereby as set forth below.
1.1
PURPOSE
The purpose of this Amendment is:
a. to set the compensation of the FIRM for delinquent property tax
collections, and
b. to authorize the FIRM to collect certain land-based receivables and other
miscellaneous receivables, including but not limited to mowing liens, demolition
liens, paving assessments, health liens, hotel/motel occupancy taxes, delinquent
wastewater and sanitation bills, and other utility billings, and
c. to set the compensation of the FIRM for collection of land based and
miscellaneous receivables.
II.
THE AMENDMENTS
2.1 The following italicized language is hereby added between the first and second
sentences under Section I of the contract:
CITY further agrees to employ and does hereby employ FIRM on a mutually agreed upon basis, to
enforce by suit or otherwise the collection of select land- based receivables and other miscellaneous
delinquent receivable accounts that occur independently of property tax delinquencies. Employment
of FIRM in connection with the land-based and other receivables is on a selective basis and based
upon criteria jointly approved by CITY and FIRM. Costs associated with litigation and post-
judgment collection of the receivables, including court costs, abstracts of judgment, filing fees for
releases of judgment, and publication costs for citations shall be paid by CITY. On behalf of CITY,
FIRM will seek recovery of costs associated with such litigation and post judgment collection
activities. Pending property tax suits may be amended to include select land-based receivable
accounts identified by the CITY as becoming delinquent before such suits are reduced to
judgment.
2.2 The following italicized language is hereby added to Section III of the Contract,
immediately following the last sentence of same:
CITY further agrees to furnish FIRM with delinquent statements for land-based and other
miscellaneous receivable accounts and will furnish forms for said statements on request. CITY will
make available to FIRM information CITY has with regard to the name, identity, and location of the
debtors and the legal description of the property. In the event additional research is needed to
locate the necessary parties and to obtain the necessary property description and title information,
such research will be the responsibility of the FIRM. Provided however, that in cases that do not
have tax delinquencies, CITY shall be responsible for the costs associated in locating the necessary
parties and obtaining the necessary property description and title information. CITY further agrees
to provide FIRM land-based and miscellaneous receivable accounts which have been perfected in
accordance with state law and local ordinance, if any.
2.3
Contract:
The following italicized language is hereby substituted for Section VI of the
CITY agrees to pay to FIRM as compensation for services required herein the following
amounts:
fifteen (15%) of the amount collected of all 2002 and prior year delinquent taxes,
penalty and interest that are subject to the terms of this contract, actually
collected and paid to the collector of taxes during the term of this contract, as and
when collecte& and
twenty percent (20%) of the amount collected of all 2003 and subsequent year
delinquent taxes, penalty and interest that are subject to the terms of this
contract, actually collected and paid to the collector of taxes during the term of
this contract, as and when collected.
The CITY may at its sole discretion turn over to the FIRM selected accounts for collection
prior to duly 1. The CITY agrees to pay the FIRM as compensation for collection activities on these
accounts, including tax seizures pursuant to which the compensation is a cost of seizure, an amount
equal to twenty percent (20%) of the taxes, penalty and interest actually collected.
In bankruptcy proceedings, eminent domain proceedings or other federal receivership, the
FIRM will be entitled to a fee of twenty percent (20%) of all amounts actually collected and paid to
the CITY for the tax year 2003 and subsequent years. The CITY agrees to pay to FIRM as
compensation hereunder fifteen percent (15%) of the amount of all delinquent taxes, penalty and
interest for the tax years 2002 and prior.
CITY agrees to pay to FIRM as compensation for land-based and miscellaneous receivable
account collection services required hereunder twenty percent (20%) of all amounts (representing
the principal owed, plus interest thereon) collected from debtors or recovered through foreclosure
of liens on debtor's property under this section.
All compensation above provided for shall become the property of the FIRM at the time
payment of taxes, penalty and interest or other receivable is made to the collector. The CITY shall
pay over to FIRM said funds monthly by check.
IV.
EFFECT OF THE AMENDMENT
By execution of this Amendment No. 1, the Contract is amended. No other sections,
provisions, clauses or conditions of the Contract are waived or changed hereby, and they shall all
remain in full force and effect throughout the term of the Contract and any duly authorized
extensions.
IN WITNESS WHEREOF, by their signatures below, the duly authorized representatives
of the City of Coppell and of Linebarger Goggan Blair & Sampson, LLP in association with Nichols,
Jackson, Dillard, Hager & Smith, L.L.P. do hereby agree and append and incorporate this
Amendment No. 1 to the Contract dated June, 27, 2001.
WITNESS the signatures of all parties hereto in triplicate originals, this the ~__~ay of
.(~(z-~.~_~_A,,t ,AD 2004, DALLAS COUNTY, TEXAS.
By:
By:
PAI~-TlqER: Nic~~kson, Dillard, Hager & Smith, L.L.P.
CITY OF COPPELL, TEXAS
By: ~
ANAGER, Jim Witt
ATTEST:
CITY SECP~ARY, Libby Ball