Loading...
HomeMy WebLinkAbout028248 RES - 07/28/2009Page 1 of 2 RESOLUTION AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A CONTRACT FOR THE COLLECTION OF DELINQUENT SPECIAL ASSESSMENTS, DEMOLITION, AND WEED LIEN ACCOUNTS WITH LINEBARGER, GOGGAN, BLAIR & SAMPSON, LLP FOR A FEE OF 25% OF PRINCIPAL AND INTEREST 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 special assessments, demolition and weed lien accounts for a fee of 25% of principal and interest collected on delinquent accounts turned over to Law firm. A copy of the contract is attached as Exhibit A. 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. SECTION 3. The legal services cannot be adequately performed by the attorneys and supporting personnel of the City of Corpus Christi. SECTION 4. 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 5. 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 Secre ary APPROVED: July 20, 2009 vit Lisa Aguil�ij Assistant City Attorney for the Ci • Attorney Joe Aerame, Mayor L►2824$ H:\LEG-DIR\Lisa\2009 Resolutions\RES-authLinebarger contract.doc Page 2 of 2 Corpus Christi, Texas Day of , 2009 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 028248 H:\LEG-DIR\Lisa\2009 Resolutions\RES-authLinebarger contract.doc LAW FIRM CONTINGENT FEE CONTRACT This Agreement ("Agreement") is made on this the day of , 2009, 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 collection of all delinquent accounts in special assessments levied in connection with paving liens and liens filed under Chapter 342 of the Health and Safety Code, including principal and interest owing to the City thereby, hereinafter referred to as "Delinquent Accounts" or "Delinquent Accounts in Special Assessments". An account is delinquent when it remains unpaid after thirty (30) days of initial invoice. 1.02 The City authorizes and directs Law Firm to take all actions necessary to include the Delinquent Account in pending tax suit, including all necessary court appearances, research, investigation, correspondence, preparation and drafting of pleadings, and all related work necessary to properly represent the City's interest in these matters. If additional liens are filed after the initiation of the tax suit, but before final judgment, Law Firm shall amend the pleadings to include such additional liens. The Law Firm shall represent the City in all bankruptcies filed by delinquent property owners, including filing claims, monitoring the bankruptcy process, attending hearings as necessary, and otherwise insuring the City's interests are protected in the bankruptcy matter with respect to Delinquent Accounts. 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 the Law Firm and the Director of Financial Services. City shall reimburse Law Firm for actual cost of mailings. Exhibit 1 identifies specific tasks to be performed by Law Firm. 1.04 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, suit or proceeding shall be entered into without the approval of the City Director of Financial Services. 1.05 The Law Firm is to call to the attention of the City Director of Financial Services any errors, double assessments, or other discrepancies coming under its observation during the progress of the work. Ownership of information acquired by Law Firm k xln: L,;+ A- H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 1 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. 1.06 The Law Firm shall direct that all payments be made directly to the City of Corpus Christi, at the Financial Services Division. No settlement agreement of any claim, suit or proceeding shall be entered into without the approval of the City's Director of Financial Services. 1.07 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. 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. Fee for this service is $10 per document, plus reimbursement of filing fees. 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 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. The City shall pay over said funds monthly by check and include a collection report summarizing the Delinquent Accounts in Special Assessments for which payment was received by the City. 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. 2.03 Monthly invoices will be forwarded to City for any costs and expenses which may be associated with recovery of monies owed to City. 2.04 The Law Firm agrees to pay all court costs which the City would be legally obligated to pay and which are incurred in the performance of this Contract. Law Firm will attempt to collect from the delinquent property owner all such costs as are assessable against the delinquent property owner. Specifically, the Law Firm agrees to pay any such costs including citations by publication, services costs, and out of state costs if such collection cannot be made from property owner. III. REQUIRED RECITALS 3.01 This Agreement is effective only after review and approval by the Comptroller for the State of Texas. H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 2 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 Law Firm 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 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. 3.07 Law Firm is responsible for the payment of litigation and all other expenses, except that City shall reimburse costs of mailing notices of collection to delinquent property owners. Reimbursement of mailing notices expenses is not to be paid out of the contingent fee payment.. Rather, such reimbursement shall be issued directly to Law Firm upon City's receipt of invoice for reimbursement of mailing expenses. 3.08 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. 3.09 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. H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 3 3.10 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. 3.11 Payment of fees and expenses by City will be governed by the requirements set forth in Section 2254.108 of the Texas Government Code. 3.12 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 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 filed prior thereto. V. CITY RESPONSIBILITIES 5.01 City shall identify tax account number, owner name, street address, legal description and amounts owed on original list submitted to Law Firm. 5.02 City shall maintain payment agreements as computer capabilities allow. 5.03 City shall maintain database of Delinquent Accounts in Special Assessments. 5.04 City shall notify Law Firm of any forwarding address on returned mail received by City.. 5.05 City shall enter address changes and updates to City records of Delinquent Accounts as per updated Nueces County Appraisal District records. 5.06 City shall respond to incoming telephone calls regarding Delinquent Accounts in Special Assessments. 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. a. 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. H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 4 b. 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. c. 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. d. Law Firm agrees to comply with all applicable Federal, State, and Local laws, including lawsrelated to collections. e. As desired by City, Law Firm agrees to an audit of files maintained by Law Firm pertaining to this Contract. E Neither party may assign this Agreement without the prior written approval of other party. g. 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. O. 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. h. 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. i. 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 in special Assessments. The City will provide written notice of the effective date of the new contract to Law Firm. 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. Law Firm acknowledges that the City's budget establishes the budget for fees under this Agreement for mailing notices. Once the mailing expenses accumulate to these budgeted amounts for the fiscal year for these services, City will not have obligation to pay additional fee for such services without the prior written approval of the City Manager, nor will Law Firm have obligation to continue such mailings until receipt of prior written approval of City Manager or designee. H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 5 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 Approved as to form: By: Lisa Aguilar, Assistant City Attorney For the City Attomey Linebarger Goggan Blair & Sampson , LLP By: Paul Chapa, Partner Date: H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 6 Approved by: OFFICE OF THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS By: Date: Martin A. Hubert Deputy Comptroller H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 7 Exhibit 1 Services Performed by Law Firm Collection of Lien Include liens in delinquent tax suits. Mass mailings of delinquent bills as requested by City. City shall reimburse Law Firm sixty-three cents per mailing. 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. H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 8 Exhibit 2 Revised Article III 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. 3.04 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, 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, except that City shall reimburse costs of mailing notices of collection to delinquent property owners. Reimbursement of mailing notices expenses is not to be paid out of the contingent fee payment.. Rather, such reimbursement shall be issued directly to Law Firm upon City's receipt of invoice for reimbursement of mailing expenses. H:\LEG-DIR\Lisa\2009 Finance\ATTORNEY CONTINGENT FEE CONTRACT v5 (clean).doc 9