HomeMy WebLinkAboutContract 54087-R1CSC No. 54087-R1
CITY OF FORT WORTH
CONTRACT RENEWAL NOTICE
May 14, 2025
Linebarger, Goggan, Blair & Sampson, L.L.P.
Attn: Tina Mulholland
100 Throckmorton
Fort Worth, Texas 76102
Re: Contract Renewal Notice
Contract No. 54087 ("Contract'
Renewal Term No. 1: July 1, 2025 to June 30, 2027
The above -referenced Contract with the City of Fort Worth expires on June 30, 2025
("Expiration Date"). Pursuant to the Contract, the Contract may be renewed at the City's sole
discretion for up to two, two-year renewal terms. This letter is to inform you that the City is
exercising its right to renew the Contract for an additional two-year period, which will begin
immediately after the Expiration Date. All other terms and conditions of the Contract remain
unchanged. Please return this signed acknowledgement letter to the address set forth below
acknowledging receipt of the Contract Renewal Notice. Failure to provide a signed
acknowledgment does not affect the renewal.
Please log onto PeopleSoft Purchasing at htto://fortworthtexas.aov/nurchasina to ensure
that your company information is correct and up-to-date.
If you have any questions concerning this Contract Renewal Notice, please contact me at
the telephone number listed below.
Sincerely,
Jacob Lohse
Lau,61---
817.392.2080
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Contract Renewal Pagel of 2
ACCEPTED AND AGREED:
CITY OF FORT WORTH:
By;
William 4ohnson ( y 15, 202510:46 CDT)
Name:
William M. Johnson
Title:
Assistant City Manager
Date:
05/15/2025
APPROVAL RECOMMENDED:
By:
U
Name:
Juan Paredes
Title:
Acting Municipal Court Director
ATTEST: �oFe.o �oaao
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V Dann °Eoo5�4
By:
Name: Jannette Goodall
Title: City Secretary
VENDOR:
Linebarger, Goggan, Blair & Sampson, L.L.P.
By: 4; �
Name: C Ickes
Title: Managing Partner
Date: S — ly- 25
CSC No.
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all performance
and reporting requirements.
By:
'1Gfi.Gf!`f7 L.C4
Name:
Jacob Lohse
Title:
Administrative Services Manager
APPROVED AS TO FORM AND LEGALITY:
By:
A-d- D"4—
Name: Andrea Phillips
Title: Assistant City Attorney
CONTRACT AUTHORIZATION:
M&C: 20-0397
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Contract Renewal Page 2 of 2
7/13/2020
M&C Review
CM COUNCIL AGENDA
Official site of the CSty of Fort Worth, Texas
FoR�Wax�m
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 (1 Sk%) is applied to delinquent property tax for the 2002 and prior year property taxes,
and a collections surcharge of twenty percent (201%) 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 -Collector. 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
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authorization for the firm to file tax collection lawsuits on the City's behalf as needed.
Lineberger 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. Lineberger 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. Lineberger'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. Lineberger'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:
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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.
eneml Terms
M1WBE - 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 INFOiRI�l4 AT1914tCERTIFICATION;
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.
M
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Submitted far *. Managgfs Office by.: Jay Chaps (5804)
Qrlg n i g Department Head:
ATTACHMENTS
Lkwb=ar rawlufifln 2020 docx
Reginald Zeno (8517)
John Samford (2318)
aPps.cfwnet.org/councll_packetlmc_review.asp?ID=27965&coundldete=611612020 M