2004-071-RES IMPOSING AN ADDITIONAL PENALTY FOR 2003 AND SUBSEQUENT YEARS DELINQUENT TAXES AND EXTENDING TERM OF CONTRACT WITH LINEBARGER GOGGAN BLAIR & SAMPSON
RESOLUTION NO.
2004-071
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, IMPOSING AN ADDITIONAL PENALTY FOR 2003 AND
SUBSEQUENT YEARS DELINQUENT TAXES AND AUTHORIZING AN
AMENDMENT AND EXTENSION OF THE TERM OF SERVICE TO THE
EXISTING SERVICES CONTRACT WITH LINEBARGER GOGGAN
BLAIR & SAMPSON, LLP; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, The City of Paris contracts with Linebarger Goggan Blair & Sampson, LLP
("the private law firm") to enforce the collection of all delinquent taxes, penalties and interest by
virtue of a written contract dated February 5, 2002 ("the Contract"); and ,
WHEREAS, the Texas Property Tax Code Sections 33.07 and 33.08 were amended by the
Seventy Seventh Legislature by Act of May 17, 200 I; and,
WHEREAS, under said Sections 33.07 and 33.08, the governing body of the City of Paris
is empowered to authorize the addition of a collection penalty in an amount that does not exceed the
amount of the compensation specified in the contract with the private law firm; and,
WHEREAS, the source of the funds for private counsel's compensation is the additional
penalty paid by the delinquent taxpayer, rather than the public treasury; and
WHEREAS, the current contract for services between the parties is on a month to month
basis, and the parties desire to renew their contractual arrangements for a period of two (2)
consecutive one (1) year terms as was the parties' original contractual arrangement; and,
WHEREAS, the City of Paris desires to amend the existing contract with the private law
firm as per the attached Amendment No. 1 to the Contract; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the attached Amendment No.1 to Contract between the City of Paris and
the law firm of Linebarger Goggan Blair & Sampson, LLP is hereby passed and approved on this
day.
Section 3. That taxes for the year 2003 and taxes for all subsequent years that become
delinquent on or after February 1 but not later than May 1, that remain delinquent on July 1 ofthe
year in which they become delinquent, incur an additional penalty in the amount of twenty percent
(20%) of taxes, penalty and interest due, pursuant to Texas Property Tax Code Section 6.30 and
33.07, as amended.
Section 4. That the taxes for the year 2003 and taxes for all subsequent years that remain
delinquent on or after July I under Texas Property Tax Code Sections 26.07(f), 26.15(e), 31.03,
31.031, 31.032 or 31.04 incur an additional penalty in the amount of twenty percent (20%) of taxes,
penalty and interest due, pursuant to Texas Property Tax Code Section 6.30 and Section 33.08, as
amended.
Section 5. That this resolution shall take effect immediately from and after its passage in
accordance with the provisions of the law.
PASSED AND APPROVED this 12th day of April, 2004.
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Curtis Fendley,
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ATTEST:
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Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
STATE OF TEXAS ~
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR ~
AMENDMENT NO.1
TO THE CONTRACT BETWEEN
THE CITY OF PARIS, TEXAS AND
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
WHEREAS, on February 5, 2002, The City of Paris hereinafter ("First Party") approved
a Contract with the law firm of {Linebarger Heard Goggan Blair Graham Peiia & Sampson,
LLP} (now known as Linebarger Goggan Blair & Sampson, LLP and hereinafter "Second Party"),
under which Contract a fifteen (15%) percent commission on the taxes, penalty and interest
collected is provided as compensation for the Second Party; and
WHEREAS, the Texas State Legislature has found and declared, by its enactment of TEX.
TAX CODE ~ 6.30( c), that a twenty (20%) commission on the taxes, penalty and interest collected
is a reasonable fee for delinquent tax collection services of a private attorney; and
WHEREAS, TEX. TAX CODE ~~ 33.07 and 33.08 were amended by the Seventy Seventh
Legislature, by Act of May 17, 2001, to provide that certain taxes, in order to defray the costs of
collection, may incur an additional penalty equal to the compensation specified in the contract with
private counsel; and
WHEREAS, the source of the funds for private counsel's compensation is the additional
penalty paid by the delinquent taxpayer, rather than the public treasury;
WHEREAS, the current contract for services between the parties is on a month to month
basis, and the parties desire to renew their contractual arrangement for a period of two (2)
consecuti ve one (I) year terms as was the parties' original contractual arrangement;
NOW THEREFORE, for and in consideration of the recitals shown above, of Second
Party's increased costs of doing business, and of enhanced services by Second Party that will result
from the devotion of additional technological and human resources toward collection of delinquent
taxes, the Contract, by execution of this Amendment No.1, is amended hereby as set forth below.
I.
THE AMENDMENT
The following italicized language is hereby substituted for Section III of the Contract:
First Party agrees to pay to Second Party as compensation for services required herein the
following amounts:
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EXHIBIT A
(a) fifteen (15%) of the amount collected of all 2002 and prior year delinquent taxes,
penalty and interest that are subject to the terms of this contract, actually collected
and paid to the collector of taxes during the term of this contract, as and when
collected; and
(b) twenty percent (20%) of the amount collected of all 2003 and subsequent year
delinquent taxes, penalty and interest that are subject to the terms of this contract,
actually collected and paid to the collector of taxes during the term of this contract,
as and when collected
All compensation above providedfor shall become the property of the Second Party at the
time payment of taxes, penalty and interest is made to the collector. The collector shall pay over
said funds monthly by check.
The following italicized language is hereby substituted for Section VI of the Contract:
"This contract is drawn to cover a period of 1 (one) year(s) beginning May 1, 2004 and
ending April 30, 2005, and will renew automatically after the initial term for an additional 1 (one)
year term beginning May 1, 2005 and ending April 30, 2006 unless either party exercises it's right
to terminate or renegotiate the contract pursuant to the provisions set out herein. At the end of the
second term, this contract will continue on a month-to-month basis. Either party may terminate or
renegotiate this contract at the end of the initial contract term by giving the other party sixty (60)
days advance notice of termination in writing. In the case of termination at the end of the initial or
second term of this contract, Second Party shall be entitled to receive and retain all compensation
due up to the date o/said termination. Second Party shall have six (6) months/ollowing termination
of the contract to reduce to judgement all suits filed prior thereto and to receive compensation for
monies collected on behalf 0/ First Party pursuant to said suits. In consideration 0/ the terms and
compensation herein stated, Second Party hereby accepts and employment and undertakes the
performance of said contract as above written. "
II.
EFFECT OF THE AMENDMENT
By execution of this Amendment No.1, the Contract is amended. No other sections,
provisions, clauses or conditions of the Contract are waived or changed hereby, and they shall all
remain in full force and effect throughout the term of the Contract and any duly authorized
extensions.
IN WITNESS WHEREOF, by their signatures below, the duly authorized representatives
of The City of Paris and of Linebarger Goggan Blair & Sampson, LLP do hereby agree and
append this Amendment No. I to the Contract dated February 5, 2002.
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By:
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EXECUTED THIS the 12th day of April, 2004.
CITY OF PARIS
LINEBARGER GOGGAN BLAIR
& SAMPSON, LLP
By:
Curtis Fendley, Mayor
John R. Bolster, Partner