HomeMy WebLinkAboutContract 33333 CITY SECRETARYr r
vONTRACT NO.
AMENDMENT No. 1 TO THE CONTRACT
FOR THE COLLECTION OF DELINQUENT TAXES AND OTHER
MISCELLANEOUS DELINQUENT REVENUE
STATE OF TEXAS §
COUNTY OF TARRANT §
WHEREAS, on May 27, 2005, the City of Fort Worth (the "City") and
Linebarger, Goggan, Blair & Sampson, LLP (the "Attorneys"), entered into City
Secretary Contract No. 31884 (the "Contract"), which provides for the collection of
delinquent taxes and other miscellaneous revenue; and
WHEREAS, the CITY wishes to turnover delinquent tangible personal property
taxes at the earliest practicable date and wishes to defray its costs of collection as
authorized by Texas Property Tax Code Section 33.11; and
WHEREAS, the City and the Attorneys have mutually agreed to amend the
contract to allow for the early collection of tangible personal property taxes that become
delinquent on February 1 S`and remain delinquent on the 60`h day thereafter.
NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
That, for and in consideration of the mutual covenants, promises and agreements
contained herein, the City of Fort Worth, hereinafter referred to as "City", acting by and
through Charles Boswell, its duly authorized City Manager, and Linebarger Goggan Blair
& Sampson, LLP, hereinafter referred to as "Attorneys", acting by and through Steve
Meeks,its duly authorized Partner, do hereby covenant and agree as follows:
1) That the aforesaid contract for delinquent tax collection services in the City of Fort
Worth, between the City and the Attorneys, dated May 27, 2005, referred to as City
Secretary Contract No. 31884, be and is hereby amended as provided herein.
2) Section I is amended to read as follows:
" City agrees to employ and does hereby employ Attorneys to enforce by
suit or otherwise the collection of all delinquent property taxes, penalty
and interest, on behalf of the City and on behalf of the City's collector of
taxes, within the City and owing to City, provided current year taxes
falling delinquent within the period of this contract shall become subject
to its terms on the first day of July of the year in which the same shall
become delinquent except that suits resolved before the first day of July
must include current year delinquent taxes, which are also subject to the
terms of this contract, but not include accounts with delinquent tax
installment agreements or accounts of over-65 homeowners who have
filed deferments or abatements of taxes. In cases of delinquent personal
property taxes that become due on February I" and remain delinquent on
the 60th day after the February 1 delinquency date , such taxes are subject
to this contract."
3) Section XI is amended to read as follows:
As allowed by law, city agrees to pay Attorneys as compensation for all
services provided under this Agreement as follows:
(a) fifteen (15) percent of the amount of all 2002 and previous
years delinquent taxes, penalty and interest collected and paid
to the collector of taxes during the term of this contract; and
(b) twenty (20) percent of the amount of all 2003 and subsequent
year delinquent taxes,penalty and interest collected and paid to
the collector of taxes during the term of this contract.
(c) For tax year 2005, and subsequent years, twenty(20)percent of
the amount collected and paid to the collector for the early
collection of tangible personal property taxes that become
delinquent on February 1St and remain delinquent on the 60th
day thereafter.
All compensation above provided for shall become the property of the
ATTORNEYS at the time payment of the attorney fees are made to the
collector. The collector shall pay over said funds monthly by check.
4) That except as hereby amended, the provisions of such contract shall remain
unchanged and in full force and effect.
WI S the si atures of all parties hereto in triplicate originals, this�Q day
of I) , 2006,Tarrant County, Texas.
THE CITY OF FORT WORTH LINEBARGER GOGGAN BLAIR&
SAMPSON, LLP
By: By.
Charles Boswell St a Meeks
Assistant City Manager Partner
ATTESTED
Marty Hendrix r
City Secretary �1
Contract nsthoriaati- o--
Approved to Fo and Legality: �� ,
Date
By:
Cynthia Garc
Assistant City Attorney
2
R u^iG 'All
i �r
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/31/2006 - Resolution No. 3308-1-2006
DATE: Tuesday, January 31, 2006
LOG NAME: 13ATTYFEEAMEND1 REFERENCE NO.: **C-21277
SUBJECT:
Adopt Resolution Imposing a 20% Penalty for the Early Collection to Tangible Personal Property
Taxes and Amendment to the Contract with Linebarger, Goggin, Blair and Sampson to Allow Early
Collection of Tangible Personal Property Taxes
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached Resolution imposing a 20% penalty on the early collection of delinquent tangible
personal property taxes for Tax Year 2005 and subsequent years, as provided in Section 33.11 of the
Texas Property Tax Code; and
2. Amend the contract with Linebarger, Goggan, Blair and Sampson, LLP ("Linebarger") (City Secretary
Contract Number 31884) to include as compensation, the twenty percent (20%) penalty on the early
collection of tangible personal property taxes.
DISCUSSION:
During the 2005 Legislative Session, the Legislature added Section 33.11 to the Texas Property Tax
Code. Under this new section, a governmental entity with an outside attorney collecting delinquent taxes
can impose an additional penalty on tangible personal property taxes that become delinquent on or after
February 1st and remain delinquent for 60 days. Under the statute, the penalty imposed may not exceed
the amount of compensation specified in the contract with the outside attorney.
On May 17, 2005, (M&C C-20744) the City entered into a contract with Linebarger for the collection of
delinquent taxes. As compensation for the services provided under the contract, Linebarger receives 20%
of the delinquent tax, penalty and interest collected By the adoption of this Mayor and Council
Communication, the city will impose the 20% penalty on the early collection of tangible personal property
taxes, and allow Linebarger to begin the early collection of delinquent personal property tax accounts.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action requires no material expenditures of City funds. All costs are
borne by the law firm and recovered from the delinquent taxpayer as provided by law.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by Richard Zavala (Acting) (6222)
Originating Department Head: Jim Keyes (8517)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 4/19/2006
Page 2 of 2
Additional Information Contact: Cynthia Garcia (7611)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 4/19/2006