HomeMy WebLinkAbout028660 RES - 06/29/2010Page 1 Fof 2
RESOLUTION
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A CONTRACT FOR
THE COLLECTION OF DELINQUENT ACCOUNTS 1N AUTOMATED RED LIGHT
ENFORCEMENT WITH LINEBARGER, GOGGAN, BLAIR & SAMPSON, LLP FOR A
FEE OF 25% OF AMOUNTS COLLECTED ON DELINQUENT ACCOUNTS TURNED
OVER TO LAW FIRM.
Whereas the City of Corpus Christi has legal authority to enter into contracts with outside
counsel; and
Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas, that:
SECTION 1. The City Manager or designee is authorized to execute the attached
contingent legal fee services contract with Linebarger, Goggan, Blair & Sampson, LLP
for the collection of delinquent accounts in automated red Tight enforcement for a fee of
25% of amounts collected on delinquent accounts turned over for collection.
SECTION 2. The City of Corpus Christi has substantial need for the legal services to be
provided by the attached contingent fee legal services contract. The legal services
cannot be adequately performed by the attorneys and supporting personnel of the City
of Corpus Christi due to insufficient collection resources.
SECTION 3. The 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 nature of the matter for which the services will
be obtained or because the City of Corpus Christi does not have appropriated or other
budgeted funds available to pay the estimated amounts required under a contract
providing only for the payment of hourly fees.
SECTION 4. This Resolution shall take effect and be in full force immediately after its
adoption by the City Council.
ATTEST:
CITY OF CORPUS CHRISTI
Armando Chapa, City Sectary Joe ABame, Mayor
APPROVED: June 23, 2010
Lisa A9 Assistant City Attorney
for the City Attorney
028680
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Corpus Christi, Texas
Day of
, 2010
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Brent Chesney
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John Marez
Nelda Martinez
Mark Scott
028660
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LAW FIRM CONTINGENT FEE CONTRACT
This Agreement ("Agreement") is made on this the day of , 2010, between City of
Corpus Christi, Texas, hereinafter referred to as "City", and Linebarger Goggan Blair &
Sampson, LLP, hereinafter referred to as "Law Firm";
In consideration of the mutual promises herein contained, the parties hereto agree as follows:
I. PURPOSE OF REPRESENTATION
1.01 City hereby retains and employs Law Firm for the non-exclusive collection of delinquent
accounts in automated red light enforcement hereinafter referred to as "Delinquent Accounts".
An account is delinquent when it remains unpaid after ninety (90) days of the date the violation
notice was mailed, and the vehicle owner has not responded to the violation notice.
1.02 The Law Firm shall pursue collection methods such as Tetters regarding the collection of
Delinquent Accounts. Exhibit 1 identifies specific tasks to be performed by Law Firm.
1.03 The Law Firm shall provide the City Director of Financial Services with written monthly
reports detailing its activities for the preceding month. No settlement agreement of any claim
shall be entered into without the approval of the City Director of Financial Services.
1.04 The Law Firm is to call to the attention of the City Director of Financial Services any errors
or other discrepancies coming under its observation during the progress of the work. Ownership
of information acquired by Law Firm concerning the services performed during this agreement
belongs to the City, and Law Firm shall only use such information as needed to perform required
services.
1.05 The Law Firm shall direct that all payments be made directly to the local office for the City
of Corpus Christi contractor for the automated red light traffic enforcement program.
1.06 The Law Firm shall maintain a file for each referred claim which shall be available to the
City at all times for inspection. Such file shall contain all data pertinent to the claim to support
its disposition. All documents, papers, or records pertaining to a file shall be retained after
conclusion of all legal proceedings for disposition as mutually agreed to by the City's Director of
Financial Services and Law firm.
II. LAW FIRM'S FEES AND EXPENSES
2.01 As compensation for services required under this contract, City hereby agrees to pay Law
Firm 25% of all Delinquent Accounts which are referred to Law Finn for collection and which
are actually collected and paid to the City during the term of this contract. All such
compensation shall become the property of the Law Firm at the time payment of the monies is
made to the City. The City shall pay over said funds monthly by check and include a collection
report summarizing the Delinquent Accounts for which payment was received by the City.
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2.02 It is understood that if the amount of Law Firm's fees under this Contract are regulated or
governed by law, and that law precludes any other fee arrangement other than the amount set by
law or regulation, then the amount payable to Law Firm is limited to the maximum allowed by
law.
III. REQUIRED RECITALS
3.01 This Agreement is effective only after review and approval by the Comptroller for the
State of Texas.
3.02 Law Firm shall keep current and complete written time and expense records that describe
in detail the time and money spent each day in performing under this Contract as required by
Section 2254.104 (a) Texas Government Code.
3.03 At any time upon request, Law Firm shall permit City, City's governing officials, the
Attorney General for the State of Texas, the State Auditor, or any other appropriate official, to
inspect or obtain copies of the time and expense records kept in accordance with Section 3.02, as
required by Section 2254.104 (b) Texas Government Code.
3.04 Upon conclusion of any matter for which Law Firm was retained, Law Firm shall provide
City with a complete written statement that describes the outcome of the matter, states the
amount of any recovery, shows Law Firm's computation of the amount of the contingent fee, and
contains the final complete time and expense records, as required by Section 2254.104(c) Texas
Government Code.
3.05 All time and expense records kept in accordance with Section 3.02 are public information
subject to required disclosure under Chapter 552 of the Texas Government Code. Information
contained in the time and expense records may be withheld from a member of the public under
Section 552.103 of the Texas Government Code only if, in addition to meeting the requirements
of Section 552.103 of the Texas Government Code, the chief legal officer or employee of City
determines that withholding the information is necessary to protect City's strategy or position in
pending or reasonably anticipated litigation. If any information is withheld in accordance with
the Section, City shall segregate said information from information that is subject to required
public disclosure.
3.06 Law Firm is responsible for the all expenses, including costs of mailing notices of
collection in accordance with Exhibit 1.
3.07 Any subcontracted legal or support services performed by a person who is not associated
with Law Firm is an expense subject to reimbursement only in accordance with Subchapter C,
Chapter 2254 of the Texas Government Code.
3.08 The amount of the contingent fee and reimbursement of expenses under this Contract will
be paid and limited in accordance with Subchapter C, Chapter 2254 of the Texas Government
Code.
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3.09 City and Law Firm agree that this Contract contemplates a series of recoveries, and that
each individual recovery will be less than $100,000.00. City and Law Firm agree that if a
recovery that exceeds $100,000 is possible, this Contract will not govern those legal services, but
rather a different arrangement under Chapter 2254 Texas Government Code will be reached
between the parties.
3.10 Payment of fees and expenses by City will be governed by the requirements set forth in
Section 2254.108 of the Texas Government Code.
3.11 The parties may replace this Article III with replacement Article III described in Exhibit
2, upon written determination by Texas Comptroller Office that this contract is not subject to
compliance with Chapter 2254 Subchapter C of the Texas Government Code.
IV. TERM
4.01 The term of this Agreement begins upon date of Comptroller approval, and continues for
one year, with three one year renewal periods. If the Comptroller determines that Comptroller
approval is not required for this contract, then the term of this Agreement begins upon date of
City Council approval. Either party may terminate this Agreement upon sixty (60) days prior
written notice. Upon termination, Law Firm will deliver all pending files on accounts referred to
it under this Contract to the City.
V. CITY RESPONSIBILITIES
5.01 City shall coordinate Law Firm access to the database of Delinquent Accounts.
5.02 City shall notify Law Firm of any forwarding address on returned mail received by City.
City shall enter address changes and updates to City records of Delinquent Accounts.
5.03 City shall respond to incoming telephone calls regarding Delinquent Accounts.
5.04 City in its sole discretion shall determine the accounts for referral to Law Firm for
collection under this Agreement.
VI. MISCELLANEOUS
6.01 This agreement shall be construed under and in accordance with Texas law, and all
obligations of the parties are performable in Nueces County, Texas.
6.02 This Agreement constitutes the sole and only Agreement between the parties and
supersedes any prior undertakings or written or oral agreement between the parties respecting the
subject matter of this agreement.
6.03 In case any one or more of the provisions contained in this Agreement shall, for any
reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality,
or unenforceability shall not affect any other provisions thereof and this Agreement shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained herein.
6.04 This Agreement may be amended only by written agreement signed by duly authorized
representatives of the parties hereto. The City Manager is authorized to execute amendments to
the Agreement.
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6.05 Law Firm agrees to comply with all applicable Federal, State, and Local laws, including
laws related to collections.
6.06 As desired by City, Law Firm agrees to an audit of files maintained by Law Firm
pertaining to this Contract.
6.07 Neither party may assign this Agreement without the prior written approval of other
party.
6.08 Notice may be sent by certified mail, postage prepared, and is deemed receive on the
third day after deposit if sent certified mail. Notice shall be sent as follows:
If to City: City of Corpus Christi, Attn: Director of Financial Services, P. 0. Box 9277,
Corpus Christi, Texas 78469-9277.
If to Law Firm: Linebarger Goggan Blair & Sampson, LLP, Attn: Paul D. Chapa, Partner,
500 N. Water Street, Suite 1111, Corpus Christi, Texas 78471.
6.09 The Law Firm will not commence work under this Contract until the Law Firm has
complied with the insurance requirements set out in the attached Exhibit.
6.10 If the City has not awarded a new contract for the collection of delinquent accounts upon
the expiration of this Contract, the contract will continue on a month-to-month basis, at the
current fees, until such time as either party provides the other party with sixty (60) days written
notice that it does not wish to continue the contract. This Contract automatically expires on the
effective date of a new contract for the collection of Delinquent Accounts . The City will
provide written notice of the effective date of the new contract to Law Firm.
6.11 The parties recognize that the continuation of any contract after the close of any fiscal
year of the City is subject to appropriations and budget approval providing for such contract item
as an expenditure in that budget. The City does not represent that said budget item will actually
be adopted, that determination is within the sole discretion of the City Council at the time of
adoption of each budget. If the budget item for this Contract is not adopted, City will notify Law
Firm and Law Firm may terminate the Contract at the end of the then current fiscal year
Agreed to by the City of Corpus Christi and Law Firm:
City of Corpus Christi
By:
`Angel R. Escobar, City Manager
Date:
Attest
By:
Armando Chapa, City Secretary
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Approved as to form:
By:
Lisa Aguilar, Assistant City Attorney
For the City Attorney
Linebarger Goggan Blair & Sampson , LLP
By:
Paul Chapa, Partner
Date:
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Approved by:
OFFICE OF THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS
By: Date:
Martin A. Hubert
Deputy Comptroller
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Exhibit 1
Services Performed by Law Firm
Collection of Delinquent Account
Mass mailings of delinquent bills as requested by City. Respond to incoming phone calls to Law
Firm regarding Delinquent Accounts.
Answer correspondence regarding Delinquent Accounts.
Law Firm will inform City of any forwarding addresses on returned mail received by Law Firm.
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Exhibit 2
Revised Article III
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3.01 This Agreement is effective only after review and approval by the City Manager.
3.02 Law Firm shall keep current and complete written records that describe in detail the
services provided in performing under this Contract.
3.03 At any time upon request, Law Firm shall permit City Manager or designee to inspect or
obtain copies of the Law Firm's records kept in accordance with this contract.
3.04Upon conclusion of any matter for which Law Firm was retained, Law Firm shall
provide City with a complete written statement that describes the outcome of the matter,
states the amount of any recovery, and shows Law Firm's computation of the amount of
the contingent fee.
3.05 Any records kept in accordance with Section 3.02 are public information subject to
required disclosure under Chapter 552 of the Texas Government Code. Information
contained in the time and expense records may be withheld from a member of the public
under Section 552.103 of the Texas Government Code only if, in addition to meeting the
requirements of Section 552.103 of the Texas Government Code, the chief legal officer
or employee of City determines that withholding the information is necessary to protect
City's strategy or position in pending or reasonably anticipated litigation. If any
information is withheld in accordance with the Section, City shall segregate said
information from information that is subject to required public disclosure.
3.06 There is no difference in the method by which the contingent fee will be computed if
any matter is settled, tried, or tried and appealed.
3.07Law Firm is responsible for the payment of litigation and all other expenses, including
costs of mailing notices of collection.
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EXHIBIT
INSURANCE REQUIREMENTS
I. CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this agreement until all insurance required
herein has been obtained and such insurance has been approved by the City. Contractor
must not allow any subcontractor to commence work until all similar insurance required
of the subcontractor has been obtained.
B. Contractor must furnish to the City's Risk Manager two (2) copies of Certificates of
Insurance, showing the following minimum coverage by insurance company(s)
acceptable to the City's Risk Manager. The City must be named as an additional insured
for the General liability policy.
TYPE OF INSURANCE
MINIMUM INSURANCE COVERAGE
30 -Day Notice of Cancellation, material change,
non -renewal or termination is required on all
certificates
Bodily Injury and Property Damage
Per occurrence - Aggregate
COMMERCIAL GENERAL LIABILITY
including:
1. Commercial Form
2. Premises — Operations
3. Products/ Completed Operations
4. Contractual Liability
5. Independent Contractors
$1,000,000 COMBINED SINGLE LIMIT
PROFESSIONAL LIABILITY to include :
1. Personal Injury
2. Errors and Omissions
$1,000,000 COMBINED SINGLE LIMIT
C. In the event of incidents / accidents of any kind, Contractor must furnish the Risk
Manager with copies of all reports of any claims within ten (10) days of the incident/
accident.
II. ADDITIONAL REQUIREMENTS
A. Certificate of Insurance:
* The City of Corpus Christi must be named as an additional insured on the
General liability coverage.
* The name of the project must be listed under "Description of Operations"
* At a minimum, a 30 -day written notice of material change, non -renewal,
termination or cancellation to the Risk Manager is required.
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