HomeMy WebLinkAboutC2011-034 - 1/26/2011 - NAPage 1 of 8
AMENDMENT NO. 1 TO THE LAW FIRM CONTINGENT FEE CONTRACT WITH
LINEBARGER GOGAN BLAIR & SAMPSON, LLP
THIS AMENDMENT NO. 1 is made and entered into this 2L day of 4• , 2011, by the
CITY OF CORPUS CHRISTI, a municipal corporation and political subdivision of the State of
Texas, ( "City ") and Linebarger Goggan Blair & Sampson, LLP, ( "Law Firm ").
Whereas, the parties previously entered into Agreement approved by City Council on July 28,
2009;
Whereas, the parties desire to amend the Agreement to provide that the Law Firm will handle all
mailings, payments, and database at reduced collection fee;
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Sections 1.03, 1.06, 1.08, 2.01, 3.07, 6.01 j, 4.01 and Exhibit 1 of the Agreement are
revised., and new Section 1.09 is added, each to read as follows:
"1.03 The Law Firm shall pursue collection methods such as letters, telephone calls, in
person contact regarding the collection of Delinquent Accounts in Special Assessments.
The Law Firm agrees to contact the person who is legally responsible for the Delinquent
Account to collect amounts owed. This shall be accomplished by mailings to delinquent
accounts on intervals to be agreed upon by Law Firm and the Director of Financial
Services. Ci sM1 r - e i .,, ufse -L „ A...,, for °ewa eest ^fmailin Exhibit 1 identifies
specific tasks to be performed by Law Firm.
"1.06 The Law Fiaft sM1 dir that all payfaepAr, be made direc4y to the City of Ceppus
r•h t f,-e-- Fi natw i a S ery ees Divisio No settlement agreement of any claim, suit or
Vlll iJ �l a
proceeding shall be entered into without the approval of the City's Director of Financial
Services. The Law Firm shall accept all payments, including collection fees and filing .
fees from the property owners. Law Firm shall & osit all poments received daily into
City depository account, and send e-mail to Finance Collections staff of the deposit and
also provide_ collection report identifying ing the Delinquent accounts for which payment was
received by Law Finn. Law Firm shall prepare and email to City for City's signature the
release of lien form on ggy properties where pqyment was received in full by Law Firm.
On a monthly basis Law Firm shall invoice the Cijy for Law Firm's costs to provide
services under this agreement.
2011 -034
01/26/11
Linebarger Goggan Blair &Sampson I I)EM
Page 2 of 8
"1.08 Upon the written request of the City Director of Financial Services, the Law Firm
shall prepare affidavits of lien and release of lien documents at no additional charge to
City. Law Firm shall file the release of lien documents at the Nueces County
Courthouse. The City shall maintain escrow account at Nueces County Courthouse to be
used by Law Firm to pay filing fees when filing the release„ of lien. Law Firm will
p rovide Cit y with receipt of filing fees aid using the City escrow account.
"1.09. Law Firm shall maintain database of the Delin cent Accounts in Special
Assessments for mailing notices and collection purposes and provide City with real-time
access to the database at no chary retains ownership of all data provided to Law
Firm.
"2.01 As compensation for services required under this contract, City hereby agrees to
pay Law Firm U 20% of all Delinquent Accounts in Special Assessments which are
referred to Law Firm for collection and which are actually collected and paid to the City
during the term of this Contract, to be paid by and collected from the property owners.
All such compensation shall become the property of the Law Firm at the time payment of
the monies is made to the City. It is the intent of the parties that all payments for
Delinquent Accounts, including collection fees and filing„ fees, shall be paid directly to
Law Firm for processing. However, in the event that the Citreceives payments on these
Delinquent Accounts then the Cit y shall forward the pument (prior to deposit) to the
Law Firm for processing. In the event that the City deposits a payment from a
Delinquent_ Account, then City shall notify Law Firm of the deposited amount, and pay
Law Firm any collection fee owed to Law Firm. T#jg City sW1 pay
111 A.)k.,VVLUI paym was r by the City.
"3.07 Law Firm is responsible for the payment of litigation mailing postage, and all
other expenses. ° ep t th Cit 1,1,.,11 r ,,. b tose owes °fmailing n °tiees of ° too
d eAy to Law > Fi,.,,, n eeeipt.of i nvo i c e f r « .. b °1, ep A o f ,�,.,ili
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"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
Page 3 of 8
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 cases referred to it under this Contract to the City. The
Law Firm has six (6) months following termination of the contract to reduce to judgments
all suits fled prior thereto. Upon termination, Law Firm shall provide most recent
database of the Delinquent Accounts in Special Assessments to City in form that is usable
by the Cily, or Law Firm shall continue to make database available to City.
"6.01 J. 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. L Firm .,^u•,,,.v,yedges th the
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Manager designee.
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2. The insurance requirements are attached as Exhibit 2 to this agreement.
3. All other terms and conditions of the previously executed Agreement between the parties
which are not inconsistent herewith shall continue in full force and effect.
IN WITNESS WHEREOF, the parties hereto have themselves or through their duly authorized
officers executed this Amendment No. 1 effective as of the day and year above first written.
EXECUTED IN DUPLICATE ORIGINALS this day of jr,,, . , 2011, by the
authorized representative of the parties.
City of Corpus Christi, Texas
r
`A el R. Escobar
City Manager
APPROVED AS TO LEGAL FORM THIS c;� b
Lisa Aguil r
Assistant City Attorney
For the City Attorney
DAY OF , 2011:
Page 4 of S
Lineba er, Go g B ai Sampson, L.L.P
By:
Paul Daniel Chapa, Partner
Date: Z -
Page 5 of 8
Exhibit 1 Services performed by Law Firm
Collection of Lien
Maintain database of delinquent accounts for mailing and collection p=oses and provide Ci
with real -time access to the database at no charge
Include liens in delinquent tax suits
Mass mailings of delinquent bills as requested by City. City shall I—Ami Finn Si*ty
Respond to incoming phone calls to Law Firm regarding Delinquent Accounts.
Produce affidavits for law suit evidence.
Perform judgment lien research for tax sales.
Represent City in bankruptcy court when property owner in bankruptcy.
Perform telephone collections
Prepare deeds for resale.
Disburse tax sale and resale money.
Present resale bids to Council.
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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INSURANCE REQUIREMENTS
I. LAW FIRM'S INSURANCE
A. Law Firm must not commence work under this agreement until all insurance
required herein have been obtained and the City has approved such insurance.
Law Firm must not allow any subcontractor to commence work until all similar
insurance required of the subcontractor has been obtained.
B. Law Firm 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 and Automobile liability policies and a blanket waiver of
subrogation is required on all applicable policies.
TYPE OF INSURANCE
MINIMUM INSURANCE COVERAGE
30 -Day written notice of non- renewal,
Bodily Injury and Property Damage
termination or material change and 10 day
Per occurrence aggregate
written notice of cancellation is required on
all certificates
COMMERCIAL GENERAL LIABILITY
$1,000,000 COMBINED SINGLE LIMIT
including:
1. Commercial Broad Form
2. Premises — Operations
3. Products/ Completed Operations
4, Contractual Liability
5. Personal Injury — Advertising Injury
CRIME- EMPLOYEE DISHONESTY
$1.000,000 Per occurrence
WORKERS COMPENSATION
Which complies with the Texas Workers'
Compensation Act and Section II of this
exhibit
EMPLOYERS LIAB ILITY
$500,000/$500,000/$500,000
PROFESSIONAL LIABILITY including:
$1,000,000 COMBINED SINGLE LIMIT
Coverage provided must cover officers,
directors, employees and agents
1 . ERRORS and OMISSIONS
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In the event of accidents of any kind, Law Firm must furnish the Risk Manager
with copies of all reports of such accidents within 10 days of any accident.
ADDITIONAL REQUIREMENTS
A. Law Firm must obtain workers' compensation coverage through a licensed
insurance company in accordance with Texas law. The contract for coverage
must be written on a policy and endorsements approved by the Texas
Department of Insurance. The coverage provided must be in amounts sufficient
to assure that all workers' compensation obligations incurred will be promptly
met.
B. Law Firm's financial integrity is of interest to the City; therefore, subject to Law
Firms right to maintain reasonable deductibles in such amounts as are approved
by the City, Law Firm shall obtain and maintain in full force and effect for the
duration of this Contract, and any extension hereof, at Law Firm's sole expense,
insurance coverage written on an occurrence basis, by companies authorized
and admitted to do business in the State of Texas and with an A.M. Best's rating
of no less than A- (VII).
C. The City shall be entitled, upon request and without expense, to receive copies of
the policies, declarations page and all endorsements thereto as they apply to the
limits required by the City, and may require the deletion, revision, or modification
of particular policy terms, conditions, limitations or exclusions (except where
policy provisions are established by law or regulation binding upon either of the
parties hereto or the underwriter of any such policies). Law Firm shall be required .
to comply with any such requests and shall submit a copy of the replacement
certificate of insurance to City at the address provided below within 10 days of
the requested change. Law Firm shall pay any costs incurred resulting from said
changes. All notices under this Article shall be given to City at the following
address:
City of Corpus Christi
Attn: Risk Management
P.O. Box 9277
Corpus Christi, TX 78469 -9277
(361) 826 -4555- Fax #
D. Law Firm agrees that with respect to the above required insurance, all insurance
policies are to contain or be endorsed to contain the following required
provisions:
• Name the City and its officers, officials, employees, volunteers, and elected
representatives as additional insured by endorsement, as respects operations
and activities of, or on behalf of, the named insured performed under contract
with the City, with the exception of the workers' compensation and professional
liability polices;
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Provide for an endorsement that the "other insurance" clause shall not apply to
the City of Corpus Christi where the City is an additional insured shown on the
policy;
• Workers' compensation and employers' liability policies will provide a waiver of
subrogation in favor of the City; and
• Provide thirty (30) calendar days advance written notice directly to City of any
suspension, cancellation, non - renewal or material change in coverage, and not
less than ten (10) calendar days advance written notice for nonpayment of
premium.
E. Within five (5) calendar days of a suspension, cancellation, or non - renewal of
coverage, Law Firm shall provide a replacement Certificate of Insurance and
applicable endorsements to City. City shall have the option to suspend Law
Firm's performance should there be a lapse in coverage at any time during this
contract. Failure to provide and to maintain the required insurance shall
constitute a material breach of this contract.
F. In addition to any other remedies the City may have upon Law Firm's failure to
provide and maintain any insurance or policy endorsements to the extent and
within the time herein required, the City shall have the right to order Law Firm to
stop work hereunder, and/or withhold any payment(s) which become due to Law
Firm hereunder until Law Firm demonstrates compliance with the requirements
hereof.
G. Nothing herein contained shall be construed as limiting in any way the extent to
which Law Firm may be held responsible for payments of damages to persons or
property resulting from Law Firm's or its subcontractor's performance of the work
covered under this agreement.
H. It is agreed that Law Firm's insurance shall be deemed primary and non-
contributory with respect to any insurance or self insurance carried by the City of
Corpus Christi for liability arising out of operations under this contract.
It is understood and agreed that the insurance required is in addition to and
separate from any other obligation contained in this contract.
2010 Delinquent Accounts Collection agreement ins. req.
8 -5 -10 ep Risk Mgmt.