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HomeMy WebLinkAboutContract 54120 Fort Worth City Secretary Contract No. 5`ClQ-0 STATE OF TEXAS § 202 § AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION G § SERVICES COUNTY OF TARRANT § This AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES (Agreement) is made and entered into by and between the City of Fort Worth (City), a home rule municipal corporation of the State of Texas, acting by and through its duly authorized Assistant City Manager, and Linebarger Goggan Blair & Sampson, L.L.P. (Firm), a Texas law firm, acting by and through its duly authorized Managing Partner, executed on the Th day of ]U�U , 2020. 1. J Scope of Services (a) Firm hereby agrees to provide City with professional services for the purpose of (i) collection of all delinquent property taxes and any public improvement district (PID) assessments, including penalty and interest, (ii) collection of delinquent hotel and motel taxes, (iii) filing of related bankruptcy claims, and (iv) collection of other miscellaneous delinquent accounts, as defined in Exhibit "A". For purposes of this Agreement and any attachments or exhibits hereto, any reference to "property tax" shall be understood and interpreted to also include PID assessments unless the context clearly dictates otherwise. Attached hereto and incorporated for all purposes incident to this Agreement is Exhibit "A", Statement of Work, more specifically describing the services to be provided hereunder. Firm shall provide to City a quarterly performance report in the same or substantially same format as that attached in Exhibit "B", Performance Report, attached hereto and incorporated for all purposes incident to this Agreement, as such format and content.may be amended from time to time by agreement of the parties. (b) The City may from time-to-time specify in writing additional actions to be taken by the Firm in connection with the collection of taxes that are owed to the City. City further constitutes and appoints the Firm as City's attorneys to sign all legal instruments, pleadings, drafts, authorizations and papers as shall be reasonably necessary to prosecute the City's claim for taxes. (c) Taxes owed to the City shall become subject to this Agreement upon the following dates,whichever occurs first: 1. On February 1 of the year in which the taxes become delinquent if a previously filed tax suit is then pending against the property subject to the tax; 2. On the date any lawsuit is filed with respect to the recovery of the tax if the tax is delinquent and is required to be included in the suit pursuant to TEX. TAX CODE § 33.42(a); 3. On the date of filing any application for tax warrant where recovery of the tax' or estimated tax is sought and where the filing of an application for tax warrant L - by the Firm is at the request of City's Tax Assessor-Collector; 4. On the date of filing any claim in bankruptcy where recovery of the tax is sought; or 5. In the case of tangible personal property, on the 60th day after the February 1 delinquency date; or 6. On July 1 of the year in which the taxes become delinquent. Notwithstanding the generality of the paragraphs 1 — 6, the City may at any time and in its sole discretion opt to exclude or withdraw any debt or account receivable from being subject to collection under this Agreement. 2. Term; Termination (a) Primary Term This Agreement shall commence upon July 1, 2020 ("Effective Date") and shall expire on June 30, 2025, unless terminated earlier in accordance with the provisions of this Agreement. (b) Renewal Options In addition to the Primary Term, the City may, at its discretion, renew this Agreement for up to two additional, two-year option periods on the same terms and conditions of the Primary Term by providing written notice to Firm at least ninety (90) days before the end of the Primary Term or the end of the first two year option term. If no parry to this Agreement provides written notice of termination and no renewal pursuant to the terms above are approved by the City, this Agreement shall automatically extend until some action is taken to either renew the Agreement, terminate the Agreement or enter into a new Agreement. (c) Termination at Will City may terminate this Agreement at any time, with or without cause, by giving forty-five (45) days' written notice to the Firm. Following receipt of the notice, the Firm will continue to perform collection services under the terms of this Agreement through the effective date of termination. (d) Termination for Cause In the event of breach of any the material provisions of this Agreement by Firm, AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 2 of 18 Linebarger Goggan Blair&Sampson, LLP the City agrees to notify the Firm within 30 days of its discovery of the breach and give the Firm an additional 30 days to cure the breach. In the event that the City is not satisfied with the Firm's attempt to cure the breach, the City may immediately terminate this Agreement thereafter by giving written notice to Firm. (e) Non-Appropriation of Funds In the event no funds or insufficient funds are appropriated by City in any fiscal period for any payments due hereunder, City will notify Firm of such occurrence, and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds shall have been appropriated. (f) Effect of Termination/Expiration In the event that this Agreement is terminated prior to the end of the term or any renewal period,City shall pay Firm for services actually rendered up to the effective date of termination, and Firm shall continue to provide City with services requested by City and in accordance with this Agreement up to the effective date of termination. Whether this Agreement expires or is terminated, the Firm shall, for any debt or account that the City has not withdrawn under Section 1(c),be entitled to continue to prosecute any tax suits, applications for tax warrants or bankruptcy claims pending on the termination date or expiration date for an additional six months following termination or expiration. The City agrees that the Firm shall be compensated as provided by Section 3 for any base tax,penalties and interest collected in the pending matters during the six-month period. The City agrees that the Firm shall be reimbursed for any costs advanced and shall be paid for any services performed pursuant to Section 4, below, when such costs are recovered by or on behalf of the City,regardless of the date recovered. It is expressly agreed that neither the expiration nor the termination of this Agreement constitutes a waiver by the Firm of its entitlement to be reimbursed for such costs and to be paid for such services. It is further expressly agreed that the expiration of any six-month period under this section does not constitute any such waiver by the Firm. 3. Compensation (a) City agrees to pay to the Firm, as compensation for the services required herein, as follows: 1. fifteen(15%)percent of the amount of all 2002 and prior year property taxes, penalty and interest subject to the terms of this Agreement as set forth in AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 3 of 18 Linebarger Goggan Blair&Sampson, LLP Paragraph 1(c) above, collected and paid to the collector of taxes during the term of this Agreement, as and when collected; and 2. twenty(20%)percent of the amount of all 2.003 and subsequent year property taxes, penalty and interest subject to the terms of this Agreement as set forth in Paragraph I(c)above, collected and paid to the collector of taxes during the term of this Agreement, as and when collected. (b) All compensation above provided for shall become the property of the Firm at the time payment of the taxes, penalty and interest is made to the collector. City shall pay said funds to Firm monthly by automated clearing house (ACH) transfer, check, or other method mutually agreed to by the parties. 4. Costs (a) The Firm and City recognize that publication costs for citations and notices of sale and title abstract costs will be incurred in the process of providing the litigation services contemplated in this Agreement. All such costs shall be billed to the City, in care of the Firm, and the Firm will advance the payment of such costs on behalf of the City. Upon recovery of such costs from the defendants or from the tax sale of defendants'property,the Firm shall be reimbursed for the advance payment at actual cost with no markup or overhead.Alternatively,the Firm may arrange with the vendor or agency providing the service that actual payment of the costs of services is wholly contingent upon recovery of such costs by the City or the Firm from the defendants or from the tax sale of defendants' property. In such contingent arrangements, the City has no responsibility or liability for payment or advancement of any costs, other than forwarding to the vendor or service provider any cost amounts received from defendants or from the tax sale of defendants'property. This provision is not intended to bind any future City Council of the City and any costs owed which exceed those collected are not subject to payment unless approved in the City's current budget. (b) The City acknowledges that the Firm may provide services, such as title research, with its own employees or with other entities or individuals who may be affiliated with the Firm, but the Firm agrees that any charges for such services will be reasonable and consistent with what the same services would cost if obtained from a third party. The City agrees that upon the recovery of such costs,the City will: (i)pay the Firm for any such costs which have been advanced by the Firm or performed by the Firm, and (ii) pay any third party agency or vendor owed for performing such services. 5. Disclosure of Conflicts and Confidential Information Firm hereby warrants to City that Firm has made full disclosure in writing of any existing or potential conflicts of interest related to Firm's services under this Agreement. AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 4 of 18 Linebarger Goggan Blair&Sampson, LLP In the event that any conflicts of interest arise after the Effective Date of this Agreement, Firm hereby agrees immediately to make full disclosure to City in writing. Firm, for itself and its officers, agents and employees, further agrees that it shall treat all information provided to it by City as confidential and shall not disclose any such information to a third party without the prior written approval of City. Firm shall store and maintain City information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City information in any way. Firm shall notify City immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. 6. Indemnification and Release Firm shall be liable and responsible for any and all property loss, property damage, and/or personal injury (including death) to any and all persons, of any kind or character,whether or not real or asserted,to the extent caused by the act(s)or omission(s) of Firm, its officers, agents, servants, employees, or separate contractors. Firm covenants and agrees to defend, indemnify, and hold the City, its officers, agents, servants, employees, and separate contractors harmless against any and all claims, lawsuits, actions, costs, and expenses of any kind, including, but not limited to, those for property damage or loss (including alleged damage or loss to owner's business and any resulting lost profits) and/or personal injury (including death)that may relate to, arise out of, or be occasioned by (i) Firm's breach of any of the terms or provisions of this Agreement or (ii) any negligent act or omission or intentional misconduct of Firm, its officers, agents, associates, employees, separate contractors (other than City) or subcontractors related to the performance of this Agreement, except that the indemnity provided for in this section shall not apply to any liability resulting from the sole negligence of the City or its officers, agents, employees, or separate contractors, and in the event of joint and concurrent negligence of both Firm and City,responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas. Nothing herein shall be construed as a waiver of the City's governmental immunity as further provided by the laws of the State of Texas. In the event that litigation is initiated against the City by a defendant contacted by the Firm in the collection activity of the Firm, then the Firm agrees to represent the City in such litigation as a part of the services compensated in this Agreement. In addition, by executing this Agreement, Firm releases the City, its officers, agents, and employees from any liability for property damage or loss and/or personal injury (including death) incurred during performance of this Agreement. 7. Insurance Firm shall provide City with certificate(s) of insurance documenting policies of the AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 5 of 18 Linebarger Goggan Blair&Sampson, LLP following minimum coverage limits that are to be in effect prior to commencement of any work pursuant to this Agreement: (a) Commercial General Liability $1,000,000 Each Occurrence $2,000,000 Aggregate (b) Automobile Liability $1,000,000 Each accident on a combined single limit basis or $2505000 Bodily injury per person $500,000 Bodily injury per person per occurrence $1005000 Property damage Coverage shall be on any vehicle used by Firm, its employees, agents, representatives in the course of providing services under this Agreement. (c) Commercial Crime Insurance $1,000,000 Occurrence $2,000,000 Annual Aggregate To cover the risk of loss due to the wrongful conversion of any funds and assets of City by Firm, its officers, agents, servants, employees, or separate contractors. Firm shall maintain said insurance for a period of two (2) years after the expiration of this Agreement. (d) Worker's Compensation—statutory limits or as permitted by law. (e) Professional Liability(Errors &Omissions) Firm shall maintain Professional Liability (Errors & Omissions) insurance in the amount of$1,000,000 per claim and$1,000,000 aggregate limit. (f) Certificates Certificates of Insurance evidencing that Firm has obtained all required insurance shall be delivered to City prior to Firm proceeding with any work pursuant to this Agreement. All policies except Professional Liability shall be endorsed to include a Waiver of Subrogation on behalf of the City. The term City shall include its employees, officers, officials, agent, and volunteers in respect to the contracted AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 6 of 18 Linebarger Goggan Blair&Sampson, LLP services. Any failure on the part of City to request required insurance documentation shall not constitute a waiver of the insurance requirement. Such terms shall be endorsed onto Firm's insurance policies. Notice shall be sent to the Risk Manager, City of Fort Worth, 200 Texas Street,Fort Worth,Texas, 76102,with copies to City at the notice address provided herein. 8. Independent Contractor It is expressly understood and agreed that Firm and its employees, representatives, agents, servants, officers, contractors, subcontractors, and volunteers shall operate as independent contractors as to all rights and privileges and work performed under this Agreement, and not as agents, representatives or employees of the City. Subject to and in accordance with the conditions and provisions of this Agreement,Firm shall have the exclusive right to control the details of its operations and activities and be solely responsible for the acts and omissions of its employees,representative, agents, servants, officers, contractors, subcontractors, and volunteers. Firm acknowledges that the doctrine of respondeat superior shall not apply as between the City and its officers, representatives, agents, servants and employees, and Firm and its employees, representative, agents, servants, officers, contractors, subcontractors, and volunteers. Firm further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Firm. It is further understood that the City shall in no way be considered a Co-employer or a Joint employer of Firm or any employees, representative, agents, servants, officers, contractors, subcontractors, and volunteers of Firm. Neither Firm, nor any officers, agents, servants, employees or subcontractors of Firm shall be entitled to any employment benefits from the City. Firm shall be responsible and liable for any and all payment and reporting of taxes on behalf of itself, and any of employees, representative, agents, servants, officers, contractors, subcontractors, and volunteers. The Firm, through its authorized representatives and employees, shall have the sole and exclusive right to exercise jurisdiction and control over the Firm's employees. Firm represents that all of its employees and subcontractors who perform Services under this Agreement shall be qualified and competent to perform the Services set forth herein. The City reserves the right to refuse to permit any employee of Firm from providing the Services set forth herein for any reason. 9. Compliance with Law In performing collection services hereunder, Firm shall comply at all times with all federal, state, and local laws, regulations, and ordinances (including policies of the City) that in any manner affect the Firm or the Services, including in particular those related to debt collection. In accordance with Section 6 of this Agreement, Firm shall indemnify and hold harmless the City, its officers, agents, servants, employees, and separate contractors against any claim arising from the alleged violation of such a law, AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 7 of 18 Linebarger Goggan Blair&Sampson, LLP ordinance, or regulation by the Firm, its officers, agents, employees, directors, owners, or separate Firms. Firm acknowledges that in accordance with Chapter 2270 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this Agreement, Firm certifies that Firm's signature provides written verification to the City that Firm and any wholly owned subsidiary, majority-owned subsidiary,parent company, or affiliate of the Firm (1) do not boycott Israel, and(2) will not boycott Israel during the term of the Agreement. 10. Permits Firm shall obtain, at its expense, any necessary permits from any governmental authority for the performance of the services hereunder. 11. Records, Statements,Reports For a period of three (3) years after final payment under this Agreement or any subcontract, Firm and its permitted subcontractors shall keep and maintain accurate records relating to activity on debts and accounts receivable referred by the City to Firm. 12. Right to Audit (a) Firm agrees that the City shall, until the expiration of three (3)years after final payment under this Agreement, have access to and the right to examine any books, documents, papers, and records of the Firm involving transactions relating to this Agreement. Firm agrees that the City shall have access during normal working hours to all necessary Firm facilities and shall be provided adequate and appropriate workspace in order to conduct audits in compliance with the provisions of this section. (b) Firm further agrees to include in any subcontractor agreements hereunder a provision to the effect that subcontractor agrees that the City shall,until the expiration of three (3) years after final payment under the sub agreement, have: (i) access to and the right to examine any books, documents, papers and records of such subcontractor, involving transactions relating to the sub agreement; and (ii) access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate workspace in order to conduct audits in compliance with the provisions of this section. (c) Nothing herein shall be construed as limiting City's rights of access to any AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 8 of 18 Linebarger Goggan Blair&Sampson, LLP examination of books, documents, papers, and records that may exist independently of this provision. 13. Notices Notices required or allowed to be provided hereunder shall be sufficient if forwarded to the other parry by hand-delivery or via U.S. Postal Service certified mail, postage prepaid,to the address of the other parry shown below: To the City: To the Firm: Jesus "Jay" Chapa, Barbara M. Williams Deputy City Manager Managing Partner City of Fort Worth Linebarger Goggan Blair& 200 Texas St. Sampson, LLP Fort Worth, Texas 76102 100 Throckmorton, Suite 300 Fort Worth, Texas 76102 (817) 392-6183 (817) 317-9511 with copy to City Attorney's Office at same address Such notice shall be deemed to have been received on the third day after it was deposited with the United States Postal Service, directed to the last known address of the other parry, with applicable postage charges prepaid. 14. Force Majeure If either party is unable, either in whole or part,to fulfill its obligations under this Agreement due to acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; wars; blockades; insurrections; riots; epidemics; public health crises; earthquakes; fires; floods; restraints or prohibitions by any court, board, department, commission, or agency of the United States or of any state; declaration of a state of disaster or of emergency by the federal, state, county, or City government in accordance with applicable law; issuance of a Level Orange or Level Red Alert or comparable alert by the United States Department of Homeland Security; any arrests and restraints; civil disturbances; or explosions; or some other reason beyond the party's reasonable control (each a"Force Majeure Event"),the obligations so affected by such Force Majeure Event will be suspended only during the continuance of such event. 15. M/WBE Participation Firm agrees to comply with the City's Minority/Women's Business Enterprise AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 9 of 18 Linebarger Goggan Blair&Sampson, LLP (M/WBE) Ordinance and any subsequent amendments thereto by committing to five percent (5%)M/WBE participation. 16. Assignment and Subcontracting With the exception of subcontracting work to enable Firm to comply with M/WBE requirements of this Agreement,Firm may not assign or transfer any interest in the Agreement nor delegate the performance of any duties hereunder without the written consent of the City Manager or an Assistant City Manager. Any such attempted assignment without prior written consent shall be void. Consent of the City to an assignment shall not relieve the Firm of liability in the event of default by its assignee. by the duties and obligations of Firm under this Agreement. Firm and Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If City grants consent to a subcontract, the subcontractor shall execute a written agreement with Firm referencing this Agreement under which the subcontractor shall agree to be bound by the duties and obligations of Firm under this Agreement as such duties and obligations may apply. Firm shall provide City with a fully executed copy of any such subcontract. 17. Nondiscrimination As a condition of this Agreement, Firm covenants that it will take all necessary action to ensure that in connection with any work under this Agreement, the Firm will not discriminate in the treatment or employment of any individual or groups of individuals on the grounds of race, color, religion, national origin, age, sex, physical handicap unrelated to job performance, or any other basis prohibited by law, either directly or indirectly or through contractual or other arrangements. If any claim arises from an alleged violation of this non-discrimination covenant by Firm, its officers, agents, employees, personal representatives, assigns, separate contractors, subcontractors, or successors in interest, Firm agrees to assume such liability and to indemnify and defend City and hold City harmless from such claim. 18. Choice of Law; Venue This Agreement shall be construed in accordance with law of the State of Texas. Should any action at law or in equity arise, directly or indirectly, out of the terms of this Agreement, venue shall be in the state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas,Fort Worth Division. 19. Parties Bound This Agreement shall be binding upon and inure to the benefit to the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 10 of 18 Linebarger Goggan Blair&Sampson, LLP and permitted assigns. Each undersigned signatory represents and warrants that he or she is the duly authorized representative of the parry on whose he or she is signing and is authorized to execute this Agreement. Nothing herein shall be construed as creating a personal liability on the part of any City officer, employee, or agent. 20. Representation of Other Governmental Entities The City acknowledges and consents to the representation by the Firm 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. 22. Severability In the event any one or more of the provisions contained in this Agreement should for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 23. Amendment No amendment, modification, or alteration of the terms hereof shall be binding unless the same is in writing, dated subsequent to the date hereof, and duly executed by the parties hereto. 24. Rights and Remedies Cumulative The rights and remedies provided by this Agreement are cumulative, and the use of any one right or remedy by either parry shall not preclude or waive that parry's right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. 25. Waiver of Default No waiver by either parry hereto of any default or breach of any term, condition, or covenant of this Agreement shall be deemed to be a waiver of any other breach of the same or any other term, condition, or covenant contained herein. 26. Governmental Powers AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 11 of 18 Linebarger Goggan Blair&Sampson, LLP Both parties agree and understand that the City does not waive or surrender any of its governmental powers by execution of this Agreement. 27. Review by Counsel The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto. 28. Signature Authority The person signing this Agreement hereby warrants that he/she has the legal authority to execute this Agreement on behalf of the respective parry, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation in entering into this Agreement. 29. Headings Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 30. Entire Agreement This written instrument(together with any attachments, exhibits, and appendices) constitutes the entire understanding between the parties concerning the work and services to be performed hereunder, and any prior or contemporaneous, oral or written agreement that purports to vary from the terms hereof shall be void. EXECUTED in multiple originals on this, the `�"� day o , 2020. CITY OF FORT WORTH, TEXAS LINEBARGER, GOGGAN, BLAIR & SAMPSON, L.L.P. Barbara M. Williams Assistant City Manager Managing Partner AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 12 of 18 Linebarger Goggan Blair&Sampson, LLP (o 1W0KV111'k ,TA -_z — — ---r.-h Date: Date: J it k/ ORS . ATTEST: �..••••••••• 12, '_. WITNESS: Mary Kays ` �J Name: City Secreta �. Title: APPROVED AS TO FORM AND LEGALITY: r-- Sarah J. Fullen der City Attorney M&C: 20--0 31-+ Date Approved: 26 H15 Ia aoa� 3 OFFICIAL RELU,RD CITY SECRETARY FT. WORTH,TX AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 13 of 18 Linebarger Goggan Blair&Sampson, LLP Exhibit "A" Statement of Work Scope of Services Required 1. To enforce by suit or otherwise the collection of all delinquent property taxes, including penalty and interest. Suits going to judgment shall include all relevant delinquent taxes, assessments, and referred balances not otherwise protected. For ad valorem taxes, before a lawsuit is filed or property seized, the County Tax Office must review for compliance and verification with the records kept in that office. 2. To notify County Tax Office, Appraisal District or other appropriate parties or governmental agencies/departments of errors, double assessments, name and address corrections or any other discrepancies coming to Firm's attention. 3. To intervene on behalf of City in all suits for taxes hereafter filed by any taxing unit on property located within City and having delinquent taxes due and owing. 4. To represent City in regard to any ad valorem tax matters in such courts as State and Federal District Courts, Bankruptcy Courts and all State and Federal Appellate Courts. 5. To report as requested on the status of each unresolved hotel occupancy tax account and miscellaneous delinquent accounts referred to Firm that are one year or older and to provide information concerning: (1) the status of the account; (2) the number of days that have elapsed since the account was first referred to Firm; (3) the reasons why the case has not been concluded; (4) whether or not a lawsuit was filed and, if not, why not; and (5) what further action Firm is contemplating. 6. To provide City quarterly performance reports as outlined in Exhibit `B" and other special management reports on request, including: the status of all unresolved delinquent property tax accounts referred to the Firm; aggregate collection data including collection rates; litigation data: collection and communication activity; and aging information. 7. To receive data from the County Tax Office of delinquent tax accounts and from the City of delinquent hotel tax accounts and from that data make the necessary demand mailings, telephone contacts, suit filings, or reducing such to a conclusion that results in applicable taxes, interest, penalties and fees being paid. 8. To have the capacity to accurately calculate all necessary interest, penalties, and fees based upon the various dates of delinquency, pre- and post- petition bankruptcies, date of judgment, delinquent installments, failure to make second- half payments, deferrals and abatements, delinquencies having certain exemptions and all other various calculations necessary to arrive at the correct amount of the tax lien subject to foreclosure. 9. To file and pursue all bankruptcy claims, amended claims, and administrative AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 14 of 18 claims, and to represent City at all hearings, appeal adverse decisions, and to pursue taxes, penalties, interest and fees, including hotel and motel occupancy taxes, that were not discharged or are not dischargeable. 10. To file, serve and administer tax warrant seizures and storage thereof until sale or settlement of the delinquent account. 11. To enter and delete suit numbers and bankruptcy case numbers on the County Tax Office computer through remote application in Firm's office. To supply reports as requested to monitor and audit data entries. 12. To immediately notify the County Tax Office of dismissal or discharge of litigation that prohibited tax billings. 13. To receive and research returned County Tax Office mailings because of inaccurate names and/or addresses, update the County Tax Office computer as needed and in a timely fashion, and provide the appropriate Appraisal District with written notification of the new owner/address information. 14. To operate and maintain an automated interface between Finn's computers and the County Tax Office's computers. The interface must have sufficient capability to access the County Tax Office database to provide the necessary inquiries, updates and taxpayer assistance. Any equipment installed in the Firm's office to achieve such capability are at the sole cost of Firm, and must,in all instances,be compatible with the County Tax Office software and hardware and have the approval of the County Tax Office before any installation. Use of a web browser to access the County Tax Office web site may also meet this requirement. 15. To maintain a database of the accounts referred to Firm, the status of how each account is being pursued, and the date of each activity, including but not limited to demand mailings,telephone contacts and suit status information. 16. To utilize print and electronic advertising to promote the payment of ad valorem taxes, impending deadlines, and the potential of litigation. 17. To ensure that tax payments are to be directed to the County Tax Office and all payments from taxpayers are to be made payable to the Tarrant County Tax Assessor/Collector. 18. To clear any major mass mailing effort through the County Tax Office for review of the data's accuracy. 19. To prepare documents and seek injunctions to enjoin hotels/motels from operating in City of Fort Worth, after other methods of collecting hotel occupancy taxes have failed, as prescribed by Section 351.004 of the Texas Tax Code. 20. To enforce by suit or otherwise the collection of all delinquent Public Improvement District assessments, penalties and interest and to treat in all regards these delinquent assessments as delinquent property taxes are treated as delineatedin AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 15 of 18 the previous sections. 21. To pursue collection of all delinquent taxes from available funds paid into the court registry in condemnation proceedings. 22. To enforce by suit or otherwise the collection of other delinquent revenue accounts that may include delinquent weed liens and other revenues, as referred to Firm by City. 23. To expedite the processing of certain delinquent accounts at the request of City. AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 16 of 18 Exhibit "B" Performance Report QUARTERLY REPORT FOR QUARTER CITY OF FORT WORTH CURRENT YEAR a. Number of City's delinquent property tax accounts handled by Firm b. Amount due for accounts in(a) above,broken out to reflect amounts attributable to tax, penalties, and interest. c. Dollar amount of delinquent taxes collected by Firm in the current calendar year d. Collection rate of cases turned over in current year. e. Collection rate of cases turned over prior to current year. d. Number of delinquent tax suits filed e. Number of tax suits collected on f. Amount of delinquent taxes due on accounts for which suits were filed g. Number of tax seizures performed h. Amount of taxes due in seizures i. Amount of taxes collected as a result of seizures j. Number of properties in bankruptcy k. Amount of delinquent taxes due from property in bankruptcy 1. Amount of delinquent taxes collected through bankruptcy in.Amount uncollectible due to exemption n.Amount uncollectible due to holds o.Amount uncollectible-statute of limitations p.Amount uncollectible-appraisal dispute q.Amount uncollectible-deferral r.Amount uncollectible-half/quarter pay s.Amount uncollectible-bankruptcy t.Amount uncollectible-other uncollectible factors as noted u.Balance of delinquent amounts,less uncollectibles v.Number of Foreclosure Sales Performed w.Amount Due in Foreclosure Sale x.Number of Properties Sold at Foreclosure Sale y.Number of Properties Struck off to City at Foreclosure Sale z.Number of hotel/motel occupancy tax accounts turned over to Firm for collection aa.Number of contacts made on hotel/motel occupancy tax accounts during preceding quarter bb. Average number of days between date of referral to Firm and date of collection for accounts listed in z-as cc. Median number of days between date of referral to Firm and date of collection for AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 17 of 18 accounts listed in z-as dd. Number of PID assessment accounts handled by Firm ee. Amount of delinquent assessments due for accounts in(z) above. ff. Dollar amount of PID assessments collected by Firm in the current calendar year gg.Number of other miscellaneous revenue accounts,e.g.,Code liens,referred to Firm hh. Amount of revenue due for accounts in(gg) above. ii. Dollar amount of miscellaneous revenues collected by Firm in the current calendar year AGREEMENT FOR PROFESSIONAL AD VALOREM TAX COLLECTION SERVICES Page 18 of 18 7/13/2020 M&C Review Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORTH DATE: 6/16/2020 REFERENCE NO.: M&C 20-0397 LOG NAME: 13DELINQUENTTAX CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO SUBJECT. Authorize Two Professional Services Agreements with Linebarger Goggan Blair& Sampson, LLP for Collection of Delinquent Taxes and Collection of Delinquent Court Fines, and Adopt Resolution Authorizing Employment of Firm to Serve as the City's Outside Counsel for Tax Collections (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute a Professional Services Agreement with the law firm of Linebarger Goggan Blair& Sampson, LLP for the collection of certain delinquent taxes and miscellaneous revenues; 2. Authorize the City Manager to execute a separate Professional Services Agreement with Linebarger Goggan Blair& Sampson, LLP for the collection of delinquent court fines; and 3. Adopt the attached resolution authorizing employment of Linebarger Goggan Blair& Sampson, LLP to serve as the City's outside counsel for tax collections. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to take actions associated with engaging the law firm of Linebarger Goggan Blair& Sampson, LLP (Linebarger)to continue serving as the City's authorized representative and collection agent for certain delinquent taxes, delinquent court fines, and other miscellaneous revenue. The City currently has contracts with Linebarger-one for the collection of delinquent property taxes and other miscellaneous delinquent revenues and another for delinquent court fines and related amounts. The final renewal under each of these contracts will expire on June 30, 2020. Tax Contract Under both the current and proposed contracts, Linebarger collects delinquent property taxes, Public Improvement District (PID) assessments, and hotel occupancy taxes for the City of Fort Worth, filing suit and conducting foreclosures as necessary and pursuing recoveries in bankruptcy when the debtor has filed. The firm also assists, as requested, in the collection of other miscellaneous delinquent accounts. In accordance with state law and the adopted ad valorem tax ordinances, a collections surcharge of fifteen percent (15\%) is applied to delinquent property tax for the 2002 and prior year property taxes, and a collections surcharge of twenty percent (20\%) applies to delinquent property taxes for the 2003 tax year and all subsequent tax years. The state law governing PID assessments provides that they are to be collected in the same manner as property tax, meaning these same surcharges would apply for delinquent PID assessments. The proceeds from the collection of these surcharges are owed and payable to the outside firm providing the collection services as provided under applicable law. All delinquent property tax payments, including interest, penalties, and the associated collection surcharge are collected by the Tarrant County Tax Assessor-Col lector. The County remits the collection surcharge revenues directly to the collection firm and sends all other property tax related funds to the City. The firm has agreed to continue to assist the City with the collection of a relatively low volume of other delinquent accounts at no additional cost to the City. As staff continues to enhance revenue collection efforts and increases the volume of the other delinquent accounts to be collected by the firm, a future contract amendment with a separate fee structure will likely be required. Under the terms of the attached resolution, the firm will be designated as the City's outside counsel for tax collection matters under the proposed contract. Approval of this M&C also serves as apps.cfwnet.org/council_packet/mc_review.asp?ID=27965&councildate=6/16/2020 1/3 7/13/2020 M&C Review authorization for the firm to file tax collection lawsuits on the City's behalf as needed. Linebarger has served in this role for a number of years, and staff is very satisfied with the firm's performance. After weighing the vendor's performance and considering other alternatives, staff is recommending executing a new contract. Among the criteria staff relied on in making its recommendation are the following: 1. Linebarger has extensive qualifications and experience collecting for the City of Fort Worth and for clients similar to the City and currently collects for the largest taxing entities in Texas; 2. Linebarger has a Fort Worth Office of experienced professionals with impressive credentials and has a dedicated Fort Worth Collections Team; 3. Linebarger's Fort Worth office has strong technology resources and is online with the County Tax Office, County District Clerk and various bankruptcy courts throughout the nation; and 4. Linebarger's Fort Worth office collects for 45 taxing jurisdictions in Tarrant County, and staff believes that having the City's collections with the same firm as other local taxing jurisdictions has simplified matters for taxpayers and enhanced collection efforts overall. Under the terms of the proposed new agreement, Linebarger will provide enhanced reporting that will help the City and firm to monitor performance, better identify trends, and make adjustments as needed. Required Statutory Findings Because of changes made by the 86th Legislature (2019), the City Council is required to make certain written findings in connection with approving this type of contract. In approving this M&C and the tax collection contract, the City Council finds that: (1)there is a substantial need for the tax collection legal services; (2)the legal services cannot be adequately performed by the City's attorneys and supporting personnel; and (3)the tax collection legal services cannot reasonably be obtained from attorneys in private practice under a contract providing only for the payment of hourly fees, without regard to the outcome of the matter, because of the specialized nature of tax collection services, for which state allows imposition of a contingency, percentage-based collection fee that may only be imposed if the services are performed by an external, third-party vendor.. Courts Contract In an effort to improve collection of delinquent civil parking and criminal citations, the Municipal Court Services Department is requesting to secure external collections services with Linebarger. Article 103.0031 of the Code of Criminal Procedure allows the City Council to enter into a collections contract with a third party and to authorize the addition of a 30 percent collection fee on certain types of court-related debts referred for collection. On June 25, 2002, the Fort Worth City Council adopted Ordinance No. 15144, which authorized imposition of the collection fee on court-ordered debts. Under the proposed contract, delinquent amounts with an offense date on or after June 18, 2003 that are subject to the 30 percent fee would be referred to the collection agency. Defendants would receive collection notices indicating amounts due (including the collections fee) and would make payments directly to the Municipal Court. If less than full payment is received, amounts due to the collection agency would be reduced proportionately. The Municipal Court will be responsible for tracking and monitoring activity, reconciling the collection fee due to Linebarger, and remitting payment for the collection fee due to Linebarger. Linebarger has served as the City's vendor for these collection services for a number of years. Staff has been satisfied with the firm's performance and is recommending they be re-engaged under a new contract. Staff has worked with Linebarger to improve reporting and performance metrics in connection with the new agreement. Required Statutory Findings Because of changes made by the 86th Legislature (2019), the City Council is required to make certain written findings in connection with approving this type of contract. In approving this M&C and the court collection contract, the City Council finds that: apps.cfwnet.org/council_packet/mc_review.asp?ID=27965&councildate=6/16/2020 2/3 7/13/2020 M&C Review (1)there is a substantial need for the court collection legal services; (2)the legal services cannot be adequately performed by the City's attorneys and supporting personnel; and (3)the court collection legal services cannot reasonably be obtained from attorneys in private practice under a contract providing only for the payment of hourly fees, without regard to the outcome of the matter, because of the specialized nature of court collection services, for which state allows imposition of a contingency, percentage-based collection fee that may only be imposed if the services are performed by an external, third-party vendor. General Terms M/WBE - Linebarger Goggan Blair& Sampson, LLP, is in compliance with the City's M/WBE Ordinance by committing to five percent (5 percent) M/WBE participation. on each of these contracts, which corresponds to the goal approved by the Business Equity Division of the Department of Diversity and Inclusion. TERM - Following Council approval, each contract will be for an initial term of five years. RENEWAL OPTIONS - Each contract includes two renewal options of two years each. Exercising the option under either contract does not require specific City Council approval. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and execution of the agreements, funds will be deposited into the appropriate City Fund, as required, based on the revenue type. The Municipal Court and Financial Management Services Departments are responsible for the collection and deposit of funds due to the City. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference# Amount ID I I ID I I Year Chartfield 2 Submitted for City Manager's Office by_ Jay Chapa (5804) Originating Department Head: Reginald Zeno (8517) Additional Information Contact: John Samford (2318) ATTACHMENTS Linebarger resolution 2020.docx apps.cfwnet.org/council_packet/mc_review.asp?ID=27965&councildate=6/16/2020 3/3 LINEBARGER GOGGAN BLAIR&SAMPSON,LLP ATTORNEYS AT LAW 100 THROCKMORTON, SUITE#300 FORT WORTH,TEXAS 76102 817.877.4589 FAX 817.877.0601 MEMORANDUM DATE: July 17, 2020 TO: Jay Rutledge VIA FEDEX 8109 9097 1882 City of Fort Worth Department of Financial Management Services FROM: Tina Mulholland RE: Current Performance Bond Collection Contracts Jay,please find the enclosed Performance Bond that is required for our collections contracts with you. Please deliver to the appropriate party at the City. Thank you for assisting me with this. Tina Mulholland Director of Operations-Fort Worth COLLECTION AGENCY BOND Liberty CONTINUOUS Mutual., SURETY Bond: 022227681 LICENSE OR PERMIT BOND KNOW ALL BY THESE PRESENTS,That we, Linebarger Goggan Blair& Sampson, LLP as Principal,and the Liberty Mutual Insurance Company ,a Massachusetts corporation, as Surety,are held and firmly bound unto City of Fort Worth as Obligee, in the sum of Fifty Thousand and No/100 --------------------------- Dollars( $50,000.00 ) for which sum,well and truly to be paid,we bind ourselves,our heirs,executors,administrators,successors and assigns,jointly and severally,firmly by these presents. Signed and sealed this 5th day of August 2020 THE CONDITION OF THIS OBLIGATION IS SUCH,That WHEREAS,the Principal has been or is about to be granted a license or permit to do business as Collection Agency by the Obligee. NOW,Therefore,if the Principal well and truly comply with applicable local ordinances,and conduct business in conformity therewith, then this obligation to be void;otherwise to remain in full force and effect. PROVIDED,HOWEVER; 1.This bond shall continue in force until canceled as herein provided. 2.This bond may be canceled by the Surety by the sending of notice in writing to the Obligee, stating when, not less than thirty days thereafter, liability hereunder shall terminate as to subsequent acts or omissions of the Principal. Linebarger G gar lair& Sampson, LLP Principal By %N S UR JP opaor?'T 3` �o�� Liberty Mutual Insurance Company_ 1912 0 d�ps3A CHUs .aa By ''�/ Ryan Kinlin Aticmey-in-Fact LMS-10908 10/06 This Power of Attorney limits the acts of those named herein,and they have no authority to bind the Company except in the manner and to the extent herein stated. Liberty Liberty Mutual Insurance Company Mutual. The Ohio Casualty Insurance Company Certificate No: 8203239-973354 SURETY West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS:That The Ohio Casualty Insurance Company is a corporation duly organized under the laws of the State of New Hampshire,that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts,and West American Insurance Company is a corporation duly organized under the laws of the State of Indiana(herein collectively called the'Companies"),pursuant to and by authority herein set forth,does hereby name,constitute and appoint, Douglas X.Brcwka,Cory Brookc,Brannon Brookc,Byron R.Dudncy,Ryan Kinlin,Stephen Smith,Janis Winklcr all of the city of New Braunfels state of TX each individually if there be more than one named,its true and lawful attomey-in-fact to make, execute,seal,acknowledge and deliver,for and on its behalf as surety and as its act and deed,any and all undertakings,bonds,recognizances and other surety obligations,in pursuance of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons. IN WITNESS WHEREOF,this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed thereto this 4th day of March 2020 Liberty Mutual Insurance Company F�1NSIJ P�ZY INS&R 1Nsuy The Ohio Casualty Insurance Company j2c° POp4rFn�� �°pKP°gro9y� �Pz°A On9r�yn West American Insurance Company ui ; 1912yo 021919� o a 1991 ° o" Yd3�SS4cNUS�(aa3 y0�hhnrnPS�day s 'noinNa ya3 "" _ n 9j7 * *� �til * 7`� �M • ti� By c`o David M.Carey,Assistant Secretary m State of PENNSYLVANIA c &County of MONTGOMERY ssCo 42 o On this 4th day of March 2020 before me personally appeared David M.Carey,who acknowledged himself to be the Assistant Secretary of Liberty Mutual Insurance L co Company,The Ohio Casualty Company,and West American Insurance Company,and that he,as such,being authorized so to do,execute the foregoing instrument for the purposes Fo mtherein contained by signing on behalf of the corporations by himself as a duly authorized officer. 0 U IN WITNESS WHEREOF,I have hereunto subscribed my name and affixed my notarial seal at King of Prussia,Pennsylvania,on the day and yearfirst above written. C: n CII p, PAS l:C`� O L Q4i� ONwk-4rF� COMMONWEALTH OFPENNSYLVANIA fi A/_ , Q� W CU p U t� y Notarial Seal ��//w'. -I C CU OF Teresa Pastella.Notary Public .C✓LGw-F� �� Upper Marion Twp.,Montgomery County By: � E My Commission Expires March 28.2021 Teresa Pastella,Notary Public a W ARY Member,Pennsylvania Assocallm or Notaries C:) CID C>3� �• This Power of Attorney is made and executed pursuant to and by authority of the following By-laws and Authorizations of The Ohio Casualty Insurance Company,Liberty Mutual Insurance w c Company,and West American Insurance Company which resolutions are now in full force and effect reading as follows: O >_ ARTICLE IV—OFFICERS:Section 12.Power of Attorney. o 20 Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President,and subject to such limitation as the Chairman or the President.@- may prescribe,shall appoint such attorneys-in-fact,as may be necessary to act in behalf of the Corporation to make,execute,seal,acknowledge and deliver as surety any and all >C:, CU>C: undertakings,bonds,recognizances and other surety obligations.Such attomeys-in-fact,subject to the limitations set forth in their respective powers of attorney,shall have full t w o L power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation.When so executed,such instruments shall E N Z� be as binding as if signed by the President and attested to by the Secretary.Any power or authority granted to any representative or attomey-in-fact under the provisions of this - article may be revoked at any time by the Board,the Chairman,the President or by the officer or officers granting such power or authority. o 0 ARTICLE XIII—Execution of Contracts:Section 5.Surety Bonds and Undertakings. Uo CD Any officer of the Company authorized for that purpose in writing by the chairman or the president,and subject to such limitations as the chairman or the president may prescribe, shall appoint such attomeys-in-fact,as may be necessary to act in behalf of the Company to make,execute,seal.acknowledge and deliver as surety any and all undertakings, bonds,recognizances and other surety obligations.Such attomeys-in-fact subject to the limitations set forth in their respective powers of attorney,shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company.When so executed such instruments shall be as binding as if signed by the president and attested by the secretary. Certificate of Designation—The President of the Company,acting pursuant to the Bylaws of the Company,authorizes David M.Carey,Assistant Secretary to appoint such attomeys-in- fact as may be necessary to act on behalf of the Company to make,execute,seal,acknowledge and deliver as surety any and all undertakings,bonds,recognizances and other surety obligations. Authorization—By unanimous consent of the Company's Board of Directors,the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the Company,wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds,shall be valid and binding upon the Company with the same force and effect as though manually affixed. I,Renee C.Llewellyn,the undersigned,Assistant Secretary,The Ohio Casualty Insurance Company,Liberty Mutual Insurance Company,and West American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full,true and correct copy of the Power of Attorney executed by said Comparieo,is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF,I have hereunto set my hand and affixed the seals of said Companies this 5th day of A„gust_ 202r P�1NStj P�11 INS& a 1NSUR4 tiJ oo��"�r yP 5J o°aPo�T�y `4P4Oft 0 1T LC� f J 3 "o tr v = m 4 Fo 1912 19 n+ g ; g o c = 19� o di1991 c Nd;/+a'44CHUg�.daS S0 MPg .d� 'rs '"olnNp as By Renee C.Llewellyn,Assistant Secretary LMS-12873 LMIC OCIC WAIC Multi Co 12/19