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ORDINANCE NO. a1T,9-/7SO
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH
LINEBARGER, GOGGAN, BLAIR, PENA & SAMPSON, LLP AND GREGORY &
CONNER P.C. FOR PROFESSIONAL SERVICES RELATED TO COLLECTION
SERVICES FOR DELINQUENT TAXES ON BEHALF OF THE CITY OF DENTON;
AND PROVIDING FOR AN EFFECTIVE DATE. (RFSP 2847)
WHEREAS, the City Council deems that it is in the public interest to engage
Linebarger, Goggan, Blair, Pefia & Sampson, LLP and Gregory & Conner, P.C., to provide
professional services pertaining to the collection of delinquent taxes on behalf of the City
of Denton; and
WHEREAS, the City staff has solicited, received and evaluated proposals
according to the criteria set forth in the request; and
WHEREAS, Chapter 2254 of the Texas Government Code, known as the
"Professional Services Procurement Act," generally provides that a City may not select a
provider of professional services on the basis of competitive bids, but must select the
provider on the basis of demonstrated competence, knowledge, and qualifications, and for
a fair and reasonable price; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1: That the City Manager is hereby authorized to execute a
Professional Services Agreement with Linebarger, Goggan, Blair, Pena &Sampson, LLP
and Gregory & Conner, P.C.; in substantially the form of the Professional Services
Agreement attached hereto and incorporated herewith by reference.
SECTION 2: That the award of this Agreement by the City is on the basis of the
demonstrated competence, knowledge, and qualifications of these firms and the
demonstrated ability of these firms to perform the services needed by the City for a fair and
reasonable price.
SECTION 3: That the expenditure of funds as provided in the attached
Professional Services Agreement is hereby authorized.
SECTION 4: That this ordinance shall become effective immediately upon its
passage and approval.
PASSED AND APPROVED this the day of�%� 2002.
EULINE BROCK, MAYOR
A.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
Lo
SAOur Documents\Ordinances\02\Linebarger delinquent tax RFP 2847.doc
CONTRACT FOR THE COLLECTION OF
DELINQUENT PROPERTY TAXES
THE STATE OF TEXAS §
COUNTY OF DENTON §
THIS CONTRACT is made and entered into by and between the City of Denton, 215 E.
McKinney, Denton, Texas 76201 ("CITY"), acting herein by and through its governing body, and
the Law Finn of Lineberger, Goggan, Blair, Pena, & Sampson, LLP, Oil and Gas Bldg. Suite 1414,
309 W. 7`h Street, Fort Worth, Texas 76102-5113 and the Law Firm of Gregory & Conner, P.C.,
303 N. Carroll Boulevard, Suite 100, Denton, Texas. ( Hereinafter referred to as the "FIRM").
1. EMPLOYMENT OF FIRM
CITY agrees to employ and does hereby employ FIRM, as an independent contractor, and
FIRM hereby agrees to enforce by suit or otherwise the collection of all delinquent taxes, penalty
and interest owing to CITY. Current year taxes which become delinquent within the period of this
Contract shall become subject to the terms of the Contract upon the following conditions and FIRM
shall perform the following services:
A. Taxes that become delinquent during the term of this Contract, that are not delinquent
for any prior years, become subject to the terms of this Contract on July 1st of the year in which
they become delinquent.
B. Taxes that become delinquent during the term of this Contract on property that is
delinquent for prior years shall become subject to its terms on the first day of delinquency as
defined by the Texas Property Tax Code.
C. FIRM shall begin collecting current year personal property taxes on March 1st of the
year in which they become delinquent. CITY shall not owe FIRM a fee on the current year
delinquent personal property taxes collected between March 1 st and June 30th unless attorney's fees
are collected pursuant to Section 33.48 of the Texas Property Tax Code.
D. FIRM shall perform all those services set forth in CITY's Request for Proposals ("RFP")
dated April 25, 2002 and FIRM's response to the RFP dated May 13, 2002 which are attached
hereto and made a part hereof respectively as Exhibits "A" and "B" as if written word for word
herein, as well as all other services set forth in the Contract.
E. If there is any conflict between the terms of this Contract and conditions of the attached
exhibits, this Contract will control over the terms and conditions of the attached exhibits.
FIRM hereby agrees to perform the services herein with diligence and in accordance with
the highest professional standards customarily obtained for such services in the State of Texas.
Linebarger Contract page I
2 PROVISION OF INFORMATION
CITY agrees to famish all necessary delinquent tax information to FIRM on all property
within the boundaries of CITY.
3 INVESTIGATION AND ASSISTANCE
FIRM agrees to conduct investigations as to the address of each taxpayer and the location of
the property where such information may be incorrect on the delinquent tax record. FIRM shall
bring to the attention of the appropriate tax official of CITY any errors, double assessments,
discrepancies, or inaccuracies in the information provided on the delinquent tax record detected by
FIRM. FIRM further agrees to provide CITY with any advice or assistance in connection with
updating the tax rolls. CITY shall make available to FIRM information which CITY may have with
regard to the name, identity, location of necessary parties and descriptions of property in connection
with each delinquent tax account upon request by FIRM.
4 PROCEDURES FOR COLLECTION
Upon initial receipt of the delinquent tax records by FIRM in computer readable form,
FIRM agrees to initiate procedures for the collection of the full amount due from each taxpayer.
Within a reasonable time frame but not more than sixty (60) days from FIRM's receipt of the
delinquent tax records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to
each and every delinquent taxpayer where the taxes have not been deferred nor involved in a lawsuit
against the appraisal district to determine value, requesting said taxpayer to remit the full amount
due and owing to CITY.
5 REVIEW AND AUTHORIZATION TO SUE
Following transmittal of the notice of delinquency as specified hereinabove, FIRM will
commence procedures in anticipation of litigation for aggressive pursuit of collection. CITY shall
have absolute discretion over those accounts on which suit should be filed. The transmittal of the
delinquent tax information to FIRM from CITY shall constitute authorization to file suit following
the mailing of the initial notice of delinquency. Upon written notice, CITY may at any time
withdraw authorization to file suit. CITY may at any time withdraw authorization to foreclose and
sell the property and said withdrawal shall be in writing.
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A. FIRM agrees to commence litigation, prosecute, and reduce to judgment all delinquent
accounts including all pending lawsuits that FIRM deems to warrant or on which CITY has
specifically requested action in writing. Each suit filed shall seek: personal judgment against the
individual taxpayer(s) for all taxes for which the taxpayer can be held personally liable, penalty and
interest; foreclosure of any tax lien which may exist by operation of law; and any and all court costs
incurred in prosecuting the lawsuit, and any collection fees or attorney's fees which the taxpayer is
obligated to pay. FIRM shall perform litigation responsibilities and protect CITY's legal remedies
including appeals, preparation of any documents required, post -judgment activities, and any other
actions necessary in order to collect the delinquent taxes.
Linebarger Contract page 2
B. FIRM will assume the representation of CITY in all lawsuits, including all pending
lawsuits, involving the collection of delinquent taxes and enforcement of the tax lien including, but
not limited to bankruptcy litigation, claims and actions required to be filed with federal agencies
such as FDIC, FSLIC and RTC, interventions in suits filed on behalf of any other taxing unit's
current suits, and any other suit or litigation which may involve or relate to the collection of
delinquent taxes. FIRM will inform CITY of any counterclaims or cross -actions filed against
CITY.
C. Upon request, provide legal advice and assistance to CITY in the acquisition of property
pursuant to the Property Code for public purpose use.
7 TAXPAYER SERVICES
hi addition to litigation, FIRM further agrees to provide taxpayer service without charge. As
such, FIRM agrees (1) to provide CITY tax collector legal advice and written opinions regarding tax
matters upon request; (2) to respond to taxpayer inquiries and to advise CITY, in writing, or, and
make any recommendations concerning installment payment agreements and settlement agreements
proposed by the taxpayer. CITY shall have final determination in acceptance of all installment
payments or settlement agreements within parameters established by CITY. FIRM shall have
discretion to enter into installment agreements subject to CITY's prerogative of final determination.
In all demand letters and all communications with taxpayers, FIRM shall inform and instruct the
taxpayer to remit its payment to CITY. If remittance is received by FIRM, it must be transmitted in
its entirety to CITY and received for processing by 11:30 a.m. of the following business day.
Checks made payable to FIRM shall be endorsed by FIRM to CITY. No check, cash or money
order for payment of delinquent taxes shall be deposited in any FIRM account.
8 PROGRESS REPORTS
FIRM agrees to make delinquent tax collection progress reports to CITY monthly and
quarterly, in a format containing information as requested by CITY's Assistant City Manager for
Fiscal and Municipal Services. Progress reports may include, without limitation:
1. First demand letters mailed;
2. Number and value of suits filed;
3. Number and value of suits dismissed
a. due to collection,
b. other - specify reason;
4. Number and value of judgments entered;
5. Number and value of bankruptcies filed;
6. Copiesofjudgments;
7. Copies of proof of claims filed in bankruptcy court;
8. Copies of Foreclosure Sale Deeds; and
9. Number and value of delinquent accounts not collected as a percentage of
total delinquent accounts provided by CITY for collection.
Within parameters established at the initiation of the collection program, FIRM shall advise CITY
of any case in which FIRM's investigation has revealed that the taxpayer cannot be found, the
Linebarger Contract page 3
enforcement of the tax lien cam -tot be accomplished, or further attempts at tax collection would be
futile and FIRM's recommendation relative to the proper disposition of the case. In such cases, the
CITY shall advise FIRM as to the appropriate disposition of the account.
9. COMPENSATION
A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees to
pay FIRM 15 percent (15%) of the total amount of all delinquent taxes, penalty and interest for the
tax years covered by this Contract as authorized by §33.48(a)(5) of the Property Tax Code. All
compensation set forth above shall become the property of FIRM at the time payment of taxes,
penalty and interest are received by CITY. The 15 percent (15%) collection fee will only be paid on
taxes which remain delinquent after July 1 of the year on which they became delinquent, pursuant to
the Property Tax Code §33.07. Said collection fee will only be paid to FIRM after it has been
received by CITY from taxpayer or from forced sales. FIRM shall not be entitled to the aforesaid
15 percent (15%) unless and until FIRM has taken some action in connection with recovering
delinquent taxes. The transmittal of a notice of delinquency shall constitute sufficient action in
order to entitled FIRM to the fee aforesaid. As compensation for the services rendered hereunder by
FIRM for the collection of taxes which are not eligible for the additional penalty as authorized by
Property Tax Code §33.07 and upon which suit has been filed, the compensation shall be reasonable
attorney's fees approved by the court and not exceeding fifteen percent (15%) of the total amount of
taxes, penalties and interest due CITY. In no event shall FIRM be entitled to any fee unless and
until CITY actually collects the delinquent taxes, penalty, interest, court costs or collection costs or
attorney's fees from the taxpayer or from the proceeds of a forced sale or foreclosure. In no event
shall FIRM be entitled to any fee unless said fee is collected by CITY during the term of this
Contract or fee is collected by CITY on account(s) upon which FIRM is attorney of record at the
time of judgment. CITY shall pay said fees to FIRM by check monthly. No interest shall be
accrued on any late payment.
B. The compensation set forth in paragraphs 9 10 and 13 of this Contract shall be the total
compensation due from CITY to FIRM for all services provided pursuant to this Contract and in no
event shall FIRM seek any additional compensation from CITY.
10. COLLECTION OF OTHER DELINQUENT ACCOUNTS
FIRM shall, upon written request of City, undertake the collection of delinquent accounts
for paving assessment liens, substandard housing demolition liens, and weed liens. The collection
of these accounts shall be undertaken on the basis of attorney's fees assessed to and collected from
the debtors. CITY agrees to pay FIRM, as compensation, all amounts received as attorney's fees on
delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed
liens which are collected during the term of this Contract as a result of FIRM's collection efforts.
11. CONFLICTS OF INTEREST
FIRM agrees not to represent any client who has an adversary position with the City of
Denton, engage in any conflict of interest to fully comply with the Texas Disciplinary Rules of
Professional Conduct (Subtitle G - Texas Government Code) for the duration of this Contract.
Linebarger Contract page 4
12. TERM
This Contract shall have a term of three (3) years, beginning on July 1, 2002 and ending on
June 30, 2005 This Contract may be extended for two additional one-year terms upon the CITY
giving written notice to FIRM of its desire to continue this Contract at least thirty (30) days prior to
the expiration of the initial three-year term, This Contract shall continue in full force and effect
from month to month at the option of CITY, unless either party delivers written notice to the other
party of its intent to terminate this Contract at least thirty (30) days prior to the date of the intended
termination. FIRM shall have an additional six months to reduce to judgment and sale all tax
collection lawsuits filed and collect all bankruptcy claims filed prior to the termination date, and
shall have the exclusive right to compensation of fees earned due to these suits during this six month
period. CITY shall have the right to sooner terminate this Contract by giving thirty (30) days'
written notice of such intention, or in the event of any of the events tatting place under Section 33
Termination of Agreement". In case of such termination, FIRM shall be entitled to receive and
retain all compensation due up to the date of said termination. Upon termination, FIRM shall
immediately deliver all files in their entirety to CITY at no cost to CITY.
13. ATTORNEY'S FEES
In eminent domain and other judicial proceedings, FIRM will be entitled to only those
attorneys fees awarded by the court and then only if collected by CITY. hi bankruptcy
proceedings, FIRM shall be entitled to a fee of 15% of the tax, interest, and penalty actually
collected by CITY. FIRM agrees to file and diligently pursue all claims on behalf of CITY in
bankruptcy, eminent domain and other judicial or administrative proceedings whether federal or
state in nature.
14. TAX WARRANTS
Upon request and authorization of CITY, FIRM shall prepare and pursue the issuance of tax
warrants. FIRM shall then coordinate the seizure of personal property pursuant to warrant and
actually accompany the Tax Collector to the location of the personal property which is to be seized
to insure the necessary procedures have been followed.
15. SETTLEMENTS
No settlements or compromises of taxes, penalty or interest shall be effected where
prohibited by law and where authorized by law, only upon approval by CITY. If a taxpayer
requested waiver is upheld as provided by §33.011 of the Tax Code, FIRM will bear the costs of
suit if it failed to notify the taxpayer of the delinquency prior to filing of the suit.
16. NOTICE
Any notice or other written instrument required or permitted to be delivered pursuant to the
terms of this Contract shall be deemed to have been delivered, whether actually received or not,
when deposited in the United States mail, postage prepaid, registered or certified, return receipt
requested, addressed to CITY or FIRM, as the case may be, at the following addresses:
Linebarger Contract page 5
CITY
City of Denton, Texas
ATTN: Assistant City Manager for
Fiscal and Municipal Services
215 E. McKinney
Denton, Texas 76201
Linebarger, Goggan, Blair, Pena & Sampson,
Attn: Stephen T. Meeks
Oil & Gas Bldg., Suite 114
309 W. 7°i Street
Fort Worth, Texas 76102-5113
Either parry may change its mailing address by sending notice of change of address to the
other at the above address by certified mail, return receipt requested.
17 COLLECTION REQUIREMENTS
FIRM agrees to collect, between July 1, 2002 and June 30, 2005, not less than sixty percent
(60%) of the total dollar value of the adjusted base tax of the 2001 delinquency existing on July 1,
2002. FIRM agrees to collect, between July 1, 2003 and June 30, 2004, not less than sixty percent
(60%) of the total dollar value of the adjusted base tax of the 2002 delinquency existing on July 1,
2003. FIRM agrees to collect, between July 1, 2004 and June 30, 2005, not less than sixty percent
(60%) of the total dollar value of the adjusted base tax of the 2003 delinquency existing on July 1,
2005. Furthermore, should the CITY invoke the option to extend this contract beyond June 30,
2005 as prescribed in Section 12, then the FIRM agrees to collect between the July 1 and
subsequent June 30 time period, for each year the contract is extended, not less than sixty percent
(60%) of the total dollar value of the adjusted base tax from the most recent tax year of the
delinquency existing on July 1 of each respective year. If FIRM does not collect the above
referenced amount each year, it shall provide CITY with legal services, programming and computer
services, or data processing equipment with a value not less than Ten Thousand Dollars
($10,000.00) or, at the option of CITY, FIRM shall pay CITY the sum of Ten Thousand Dollars
($10,000.00) on or before August 15 of the year it fails to collect the minimum amount specified
herein.
18. VENUE
The terms, obligations and requirements of this Contract shall be construed in accordance
with the laws of the State of Texas. The obligations and requirements of the parties hereto are
performable in Denton County, Texas. Any litigation involving this Contract shall be tried in a
court of competent jurisdiction sitting in Denton County, Texas.
19. ACCEPTANCE OF EMPLOYMENT
In consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM
hereby accepts the employment of CITY and undertakes the performance of this Contract as above
stated.
20. DIRECTIVES
All directives between FIRM and CITY shall be confirmed in writing.
Lineberger Contract page 6
21. COVENANT NOT TO SUE
FIRM further agrees not to bring any cause of action against CITY relative to this Contract.
Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall
not exceed $1.00 and the filing of such cause of action shall be considered a material breach of this
Contract.
22. AMBIGUITY
Any ambiguity within this Contract shall be liberally interpreted in favor of CITY.
23. ASSIGNMENT
The rights and responsibilities of CITY under this Contract may be assigned by the City
Council to another governmental unit in Denton County without approval of FIRM. It is
understood and agreed that this is a professional services contract and CITY is contracting for the
unique services of FIRM. FIRM's rights and responsibilities under this Contract may not be
assigned by FIRM to another law firm or collection agency without written approval of the
assignment by the City Council.
24. INDEMNITY AGREEMENT
The FIRM shall indemnify and save and hold harmless the CITY and its officers, agents,
and employees from and against any and all liability, claims, demands, damages, losses, and
expenses, including, but not limited to court costs and reasonable attorney fees incurred by the
CITY, and including, without limitation, damages for bodily and personal injury, death and property
damage, resulting from the negligent acts or omissions of the FIRM or its officers, shareholders,
agents, or employees in the execution, operation, or performance of this Contract.
Nothing in this Contract shall be construed to create a liability to any person who is not a
party to this Contract, and nothing herein shall waive any of the parties' defenses, both at law or
equity, to any claim, cause of action, or litigation filed by anyone not a party to this Contract,
including the defense of governmental immunity, which defenses are hereby expressly reserved.
25. INSURANCE
During the performance of the services under this Contract, FIRM shall maintain the
following insurance with an insurance company licensed to do business in the State of Texas by the
State Insurance Cormnission or any successor agency that has a rating with Best Rate Carriers of at
least an A- or above:
Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate.
The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to
evidence such coverages. The insurance policies shall name the CITY as an additional insured on
all such policies, and shall contain a provision that such insurance shall not be canceled or modified
Linebarger Contract page 7
without 30 days prior written notice to CITY and FIRM. hi such event, the FIRM shall, prior to the
effective date of the change or cancellation, serve substitute policies furnishing the same coverage.
26. EXHIBITS
RFP #2847attached hereto as Exhibit "A" and the FIRM's response to the RFP attached
hereto as Exhibit "B" are incorporated herein as if set fords at length and made a part hereof. The
provisions of Exhibit "A" and Exhibit "B" shall set forth obligations and duties of the FIRM to the
extent that they do not conflict with other provisions set forth in this Contract, which contractual
provisions shall control.
27. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION
The parties may agree to settle any disputes under this Contract by submitting the dispute to
arbitration or other means of alternate dispute resolution, such as mediation. No arbitration or
alternate dispute resolution arising out of or relating to this Contract, involving one party's
disagreement, may include the other party to the disagreement without the other's approval.
28. ENTIRE AGREEMENT
This Contract, consisting of 11 pages and 2 exhibits, constitutes the complete and final
expression of the agreement of the parties, and is intended as a complete and exclusive statement of
the terms of their agreements, and supersedes all prior contemporaneous offers, promises,
representations, negotiations, discussions, communications, and agreements which may have been
made in connection with the subject matter hereof.
29. COMPLIANCE WITH LAWS
The FIRM shall comply with all federal, state, and local laws, rules, regulations, and
ordinances applicable to the work covered hereunder as they may now read or hereinafter be
amended.
30. DISCRIMINATION PROHIBITED
In performing the services required hereunder, the FIRM shall not discriminate against any
person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical
handicap.
31. PERSONNEL AND EQUIPMENT
A. The FIRM represents that it has or will secure, at its own expense, all personnel required to
perform all the services required under this Contract. Such personnel shall not be
employees or officers of, or have any contractual relations with the CITY. FIRM shall
inform the CITY of any conflict of interest or potential conflict of interest that may arise
during the term of this Contract.
Linebarger Contract page 8
B. All services required hereunder will be performed by the FIRM or under its supervision. All
personnel engaged in work shall be qualified, and shall be authorized and permitted under
state and local laws to perform such services.
C. The FIRM represents that it has or will secure, at its own expense, the hardware, software,
and other resources required to perform, in a timely manner, all the services required under
the terms of this contract.
32. ASSIGNABILITY
The FIRM shall not assign any interest in this Contract, and shall not transfer any interest in
this Contract (whether by assignment, novation, or otherwise) without the prior written consent of
the CITY.
33. TERMINATION OF AGREEMENT
A. Notwithstanding any other provision of this Contract, either party may terminate by giving
thirty (30) days advance written notice to the other party.
B. This Contract may be terminated in whole or in part in the event of either party substantially
failing to fulfill its obligations under this Contract. No such termination will be affected
unless the other party is given (1) written notice (delivered by certified mail, return receipt
requested) of intent to terminate and setting forth the reasons specifying the
nonperformance, and not less than 30 calendar days to cure the failure, and (2) an
opportunity for consultation with the terminating party prior to termination.
C. If the agreement is terminated prior to completion of the services to be provided hereunder,
FIRM shall immediately cease all services and shall render a final bill for services to the
CITY within 30 days after the date of termination. The CITY shall pay FIRM for all
services properly rendered and satisfactorily performed and for reimbursable expenses to
termination incurred prior to the date of termination, in accordance with Article 9
"Compensation". Should the CITY subsequently contract with a new consultant for the
continuation of services on the Project, FIRM shall cooperate in providing information. The
FIRM shall turn over all documents prepared or furnished by FIRM pursuant to this
Contract to the CITY on or before the date of termination, but may maintain copies of such
documents for its use.
34. MODIFICATION
No waiver or modification of this Contract or of any covenant, condition, or limitation
herein contained shall be valid unless in writing and duly executed by the party to be charged
therewith, and no evidence of any waiver or modification shall be offered or received in evidence in
any proceeding arising between the parties hereto out of or affecting this Contract, or the rights or
obligations of the parties hereunder, and unless such waiver or modification is in writing and duly
executed; and the parties further agree that the provisions of this section will not be waived unless as
herein set forth.
Linebarger Contract page 9
35. INDEPENDENT CONTRACTOR
FIRM shall provide services to CITY as an independent contractor, not as an employee of
the CITY. FIRM shall not have or claim any right arising from employee status.
36. MISCELLANEOUS
A. The following exhibits are attached to and made a part of this Contract: Exhibit "A' -
Request for Proposals; Exhibit "B"-FIRM's proposal.
B. FIRM agrees that CITY shall, until the expiration of three (3) years after the final payment
under this Contract, have access to and the right to examine any directly pertinent books,
documents, papers, and records of the FIRM involving transactions relating to this Contract.
FIRM agrees that CITY shall have access during normal working hours to all necessary
FIRM facilities and shall be provided adequate and appropriate working space in order to
conduct audits in compliance with this section. CITY shall give FIRM reasonable advance
notice of intended audits.
C. For the purpose of this. Contract, the key persons who will perform most of this work
hereunder shall be Debra Patton. However, nothing herein shall limit FIRM from using
other qualified and competent members of its firm to perform the services required herein.
D. FIRM shall commence, carry on, and complete any and all projects with all applicable
dispatch, in a sound, economical, efficient manner and in accordance with the provisions
hereof. In accomplishing the projects, FIRM shall take such steps as are appropriate to
ensure that the work involved is properly coordinated with related work being carried on by
the CITY.
E. The CITY shall assist the FIRM by placing at the FIRM's disposal all available information
pertinent to the Project, including previous reports, any other data relative to the Project, and
arranging for the access thereto, and make all provisions for the FIRM to enter in or upon
public and private property as required for the FIRM to perform services under this
Contract.
37. TIME OF THE ESSENCE
Time is of the essence with respect to all matters covered by this Contract.
38. CAPTIONS
The captions appearing at the first of each numbered section are inserted and included solely
for convenience and shall never be considered or given any effect in construing this Contract.
This Contract is executed on behalf of CITY by the presiding officer of its governing body
who is authorized to execute this instrument by order heretofore passed and duly recorded in its
minutes and by a partner of FIRM who, by execution of this Contract, represents and warrants that
he or she has the authority to execute this document on behalf of FIRM.
Linebarger Contract page 10
WITNESS the signature of all parties hereto in triplicate originals this the day of
P 2002, Denton County, Texas.
CITY OF DENTON, TEXAS
4 ym
MICITAEL A.O F
C
CITY MANAGER[0z
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:c
Linebarger, Goggan, Blair, Pena & Sampson, LLP
f
BY:
Gregory & Conner, P.C.
BY:
Linebarger Contract page I I
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RFSP # 2847
CITY OF DENTON
REQUEST FOR PROPOSALS FOR
DELINQUENT TAX COLLECTION ATTORNEYS
The City of Denton is seeking to hire legal counsel to collect delinquent taxes for all tax years.
The City is seeldng proposals from law firms with experience in property tax collections, and
with adequate personnel and data processing capacity to process and collect the city's delinquent
tax accounts.
SCOPE OF SERVICES
Tax collection attorneys will be responsible for the following duties and services:
Preparing monthly status reports and updates on pending suits, judgments,
foreclosures, installment agreements, and collection efforts.
2. Preparing and sending such notices to delinquent taxpayers as may be required
by law or as may be advisable for the purpose of expediting collections.
3. Bringing lawsuits against delinquent taxpayers to foreclose tax liens and
otherwise facilitate collection of delinquent taxes.
4. Firm shall be responsible for filing of delinquent tax claims in bankruptcy
proceedings; including claims and actions required to be filed with Federal
agencies such as the FDIC: and consult with the City of Denton City
Attorney's office on such matters.
5. Advising the city on legal issues that arise in the process of delinquent tax
collection. This includes legal support, advice, written opinions, and research
upon request.
6. Providing such additional services as the Denton City Council or the
Treasury & Tax Manager may deem advisable to expedite the collection of
delinquent taxes.
7. Provide total and complete delinquent tax collection and coordinate these
efforts with the City of Denton Tax Department. Firm will indemnify and
hold the City harmless from any suits or liabilities that may result from the
fmm's delinquent tax collection activities.
Provide all supplies, postage, court filing fees and all other costs necessary to
handle billing and necessary mailings and obtain appropriate title research
and relevant ownership records of all property upon which a suit is to be
filed, at firms expense.
9. Intervene in delinquent tax suits filed by Denton County and/or the Denton
Independent School District, if applicable.
10. Only collect those groups or individuals accounts which the City of Denton
determines in its discretion are to be collected by firm.
8:prch/bidspec/2847rfsp.doc
RFSP # 2847
EVALUATION OF PROPOSALS
The city will make its selection based on an evaluation of all of the information provided.
Completeness of information sought will be an important factor in the evaluation process.
Proposals will be evaluated by the city's staff, and the resulting selection will be presented to the
City Council for approval. All proposals will remain confidential until an award is made by the
City.
By this request, the city has not committed itself to employ delinquent tax collection counsel nor
does the suggested scope of services require that delinquent tax collection counsel be employed
for any or all of those purposes. The city reserves the right to make those decisions after it
receives all proposals, and the city's decision on such matters is final.
CRITERIA FOR SELECTION
40% Established history of maintaining performance goal, which is equal to, but not less than
60% of the total dollar value of the base taxes collected as of July 1 of each year.
20% Established history of expertise in delinquent tax collection field and organization's
personnel expertise in ad valorem tax matters.
20% Delinquent tax collection services (i.e., work plan, taxpayer communications program,
bankruptcy collection program, taxpayer assistance, tax suits, tax sales, tax seizures)
10% Ability to establish a Denton office or functional equivalent
10% Collection Technology (i.e., computer hardware/software, interaction with city's
computer system, and technical support available to the city).
TERMS
This request, is for a contract term for three (3) years, beginning on July 1, 2002, and ending on
June 30, 2005. The contract term may be extended for two additional one-year terms upon the
City giving written notice to the awarded firm of its desire to continue it service at least thirty
(30) days prior to the expiration of the initial three-year term. The City may terminate contract
for any reason, with or without cause, upon thirty (30) day's written notice to the firm. The City
will allow firm an additional six (6) months to reduce to judgment all suits filed prior to the
expiration of the contract. The Firm must provide for the orderly delivery of copies of all
complete tax files to be turned over to the City Attorney when the contract is terminated.
The Firm must have an established history of expertise in the delinquent tax collection field and is
agreeable to the performance goal, which is equal to, but not less than 60% of the total dollar
value of the base taxes collected as of July 1 of each year of the contract and can show
established history of maintaining the performance goal.
The City will pay the law firm a fee not to exceed Sec. 33.07 of the Property Tax Code on all
delinquent taxes, penalty and interest actually collected and paid the city during the term of this
contract. The city shall pay said funds to the firm monthly by check.
Firm will have, or will establish, a Denton office or functional equivalent by the date the
delinquent accounts are tamed over to firm, and will provide a 1-800 number, or other toll -free
service, to its main office.
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RFSP # 2847
SUBMISSION OF PROPOSALS
Please submit three (3) copies of your proposal before 2:00 PM on the bid opening date in sealed
envelopes to the following:
City of Denton
Purchasing Department
901-B Texas Street
Denton Texas, 76201
Attention: Tom Shaw, Purchasing Agent
Proposals must be sealed and clearly marked: "RFP # 2847 PROPOSALS FOR DELINQUENT
TAX COLLECTION ATTORNEYS".
There is no expressed or implied obligation on the part of the city to reimburse responding firms
for any expenses incurred in preparing proposals in response to the request.
The following items must be included as part of your proposal:
I. Cover Letter
RFP number and title
Firm name, address, phone, and fax
Signed and dated by authorized representative of firm
II. Executive Summary
Describe your organization's background and experience in delinquent tax
collections.
Please include years in the business.
List local office(s) and resources
Convey your organizations plan for conferring on a regular basis with the City of
Denton City Council and the Treasury & Tax Manager
Overview of proposed services to be offered based on the information attached.
M. Delinquent tax collection services
Proposed work plan
Taxpayer communications program
Address research and taxpayer location program
Bankruptcy collection program
Taxpayer assistance
Include descriptions of the following processes:
Tax Suits - process and pre -suit process
Tax Sales - process
Tax Seizures - process and samples if available
IV. Describe your organization's personnel expertise in ad valorem tax matters:
Specify the number of full-time employees for firm
Specify the number of full-time attorneys employed by your firm
Identify the personnel who would handle collections for the city
Provide biographies of key management and attorneys
Provide information concerning minority involvement regarding the work to be
performed by your firm pursuant to this request. Indicate the ethnic makeup and the
gender of your staff. Also indicate your compliance with EEOC regulations and
guidelines.
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RFSP # 2847
V. Collection Technology
• Describe the computer hardware and software used to collect delinquent taxes
• Describe how it will interact with the city's computer system
• Identify the law firni's technical personnel and technical support available to the city
VI. References - Provide a complete list of past and current Texas clients. In addition, provide
at least five references where delinquent tax collection services are provided to entities
similar to the City of Denton. These references should include the name of the contact
person, address, phone number, and a five-year summary of delinquent tax collections listed
as a percent of base tax, excluding P&I, submitted to the firm for collection.
VII. Any other information you consider germane to collection of delinquent taxes or this
request.
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RFSP # 2847
CONTRACT FOR THE COLLECTION OF
DELINQUENT PROPERTY TAXES
THE STATE OF TEXAS §
§
COUNTY OF DENTON §
THIS CONTRACT is made and entered into by and between the City of Denton, 215 E. McKinney,
Denton, Texas 76201 ("CITY"), acting herein by and through its governing body, and
("FIRM").
iM 5161 1G]'Iu 1a1►Y 1[1a y Q1 1,131
CITY agrees to employ and does hereby employ FIRM, as an independent contractor, and FIRM
hereby agrees to enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest owing to
CITY. Current year taxes which become delinquent within the period of this Contract shall become subject to
the terms of the Contract upon the following conditions and FIRM shall perform the following services:
A. Taxes that become delinquent during the term of this Contract, that are not delinquent for any prior
years, become subject to the terms of this Contract on July 1st of the year in which they become delinquent.
B. Taxes that become delinquent during the term of this Contract on property that is delinquent for
prior years shall become subject to its terms on the first day of delinquency as defined by the Texas Property
Tax Code.
C. FIRM shall begin collecting current year personal property taxes on March 1st of the year in which
they become delinquent. CITY shall not owe FIRM a fee on the current year delinquent personal property
taxes collected between March 1st and June 30th unless attorney's fees are collected pursuant to Section 33.48
of the Texas Property Tax Code.
D. FIRM shall perform all those services set forth in CITY's Request for Proposals ("RFP") dated
, 2002 and FIRM's response to the RFP dated 2002 which are attached hereto
and made a part hereof respectively as Exhibits "A" and "B" as if written word for word herein, as well as all
other services set forth in the Contract.
E. If there is any conflict between the terms of this Contract and conditions of the attached exhibits,
this Contract will control over the terms and conditions of the attached exhibits.
FIRM hereby agrees to perform the services herein with diligence and in accordance with the highest
professional standards customarily obtained for such services in the State of Texas.
CITY agrees to famish all necessary delinquent tax information to FIRM on all property within the
boundaries of CITY.
3 INVESTIGATION AND ASSISTANCE
FIRM agrees to conduct investigations as to the address of each taxpayer and the location of the
property where such information may be incorrect on the delinquent tax record. FIRM shall bring to the
attention of the appropriate tax official of CITY any errors, double assessments, discrepancies, or inaccuracies
in the information provided on the delinquent tax record detected by FIRM. FIRM further agrees to provide
CITY with any advice or assistance in connection with updating the tax rolls. CITY shall make available to
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MMEW :ilu
FIRM information which CITY may have with regard to the name, identity, location of necessary parties and
descriptions of property in connection with each delinquent tax account upon request by FIRM.
4 PROCEDURES FOR COLLECTION
Upon initial receipt of the delinquent tax records by FIRM in computer readable form, FIRM agrees to
initiate procedures for the collection of the full amount due from each taxpayer. Within a reasonable time
frame but not more than sixty (60) days from FIRM's receipt of the delinquent tax records, FIRM hereby agrees
to send, by first class mail, a notice of delinquency to each and every delinquent taxpayer where the taxes have
not been deferred nor involved in a lawsuit against the appraisal district to determine value, requesting said
taxpayer to remit the full amount due and owing to CITY.
5 REVIEW AND AUTHORIZATION TO SUE
Following transmittal of the notice of delinquency as specified hereinabove, FIRM will commence
procedures in anticipation of litigation for aggressive pursuit of collection. CITY shall have absolute discretion
over those accounts on which suit should be filed. The transmittal of the delinquent tax information to FIRM
from = shall constitute authorization to file suit following the mailing of the initial notice of delinquency.
Upon written notice, CITY may at any time withdraw authorization to file suit. CITY may at any time
withdraw authorization to foreclose and sell the property and said withdrawal shall be in writing.
6 IMGATION RESPONSIBMITIES
A. FIRM agrees to commence litigation, prosecute, and reduce to judgment all delinquent accounts
including all pending lawsuits that FIRM deems to warrant or on which = has specifically requested action
in writing. Each suit filed shall seek: personal judgment against the individual taxpayer(s) for all taxes for
which the taxpayer can be held personally liable, penalty and interest; foreclosure of any tax lien which may
exist by operation of law; and any and all court costs incurred in prosecuting the lawsuit, and any collection
fees or attorneys fees which the taxpayer is obligated to pay. FIRM shall perform litigation responsibilities and
protect CrIY's legal remedies including appeals, preparation of any documents required, post -judgment
activities, and any other actions necessary in order to collect the delinquent taxes.
B. FIRM will assume the representation of CITY in all lawsuits, including all pending lawsuits,
involving the collection of delinquent taxes and enforcement of the tax lien including, but not limited to
bankruptcy litigation, claims and actions required to be filed with federal agencies such as FDIC, FSLIC and
RTC, interventions in suits filed on behalf of any other taxing units current suits, and any other suit or litigation
which may involve or relate to the collection of delinquent taxes. FIRM will inform CITY of any
counterclaims or cross -actions filed against CITY.
C. Upon request, provide legal advice and assistance to CITY in the acquisition of property pursuant
to the Property Code for public purpose use.
7 TAXPAYER SERVICES
In addition to litigation, FIRM further agrees to provide taxpayer service without charge. As such,
FIRM agrees (1) to provide CITY tax collector legal advice and written opinions regarding tax matters upon
request; (2) to respond to taxpayer inquiries and to advise CITY, in writing, or, and make any recommendations
concerning installment payment agreements and settlement agreements proposed by the taxpayer. CITY shall
have final determination in acceptance of all installment payments or settlement agreements within parameters
established by CITY. FIRM shall have discretion to enter into installment agreements subject to CTFY's
prerogative of final determination. In all demand letters and all communications with taxpayers, FIRM shall
inform and instruct the taxpayer to remit its payment to CITY. If remittance is received by FIRM, it must be
transmitted in its entirety to CITY and received for processing by 11:30 a.m. of the following business day.
Checks made payable to FIRM shall be endorsed by FIRM to CITY. No check, cash or money order for pay-
ment of delinquent taxes shall be deposited in any FIRM account.
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RFSP # 2847
8 PROGRESS REPORTS
FIRM agrees to make delinquent tax collection progress reports to CITY monthly and quarterly, in a
format containing information as requested by CI a Executive Director of Finance. Progress reports may
include, without limitation:
1. First demand letters mailed;
2. Number and value of suits filed;
3. Number and value of suits dismissed
a. due to collection,
b. other -specify reason;
4. Number and value of judgments entered;
5. Number and value of bankruptcies filed;
6. Copiesofjudgments;
7. Copies of proof of claims filed in bankruptcy court;
8. Copies of Foreclosure Sale Deeds; and
9. Number and value of delinquent accounts not collected as a percentage of total
delinquent accounts provided by CITY for collection.
Within parameters established at the initiation of the collection program, FIRM shall advise CITY of any case
in which FMM's investigation has revealed that the taxpayer cannot be found, the enforcement of the tax lien
cannot be accomplished, or further attempts at tax collection would be futile and FIRM's recommendation
relative to the proper disposition of the case. In such cases, the CITY shall advise FIRM as to the appropriate
disposition of the account.
9. COMPENSATION
A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees to pay FIRM
percent L21o) of the total amount of all delinquent taxes, penalty and interest for the tax years
covered by this Contract as authorized by §33.48(a)(5) of the Property Tax Code. All compensation set forth
above shall become the property of FIRM at the time payment of taxes, penalty and interest are received by
CITY. The percent
_%) collection fee will only be paid on taxes which remain delinquent after July 1 of the year on which they
became delinquent, pursuant to the Property Tax Code §33.07. Said collection fee will only be paid to FIRM
after it has been received by CITY from taxpayer or from forced sales. FIRM shall not be entitled to the
aforesaid percent C°/u) unless and until FIRM has taken some action in connection with recovering
delinquent taxes. The transmittal of a notice of delinquency shall constitute sufficient action in order to entitled
FIRM to the fee aforesaid. As compensation for the services rendered hereunder by FIRM for the collection of
taxes which are not eligible for the additional penalty as authorized by Property Tax Code §33.07 and upon
which suit has been filed, the compensation shall be reasonable attorneys fees approved by the court and not
exceeding fifteen percent (151/u) of the total amount of taxes, penalties and interest due CITY. In no event shall
FIRM be entitled to any fee unless and until CITY actually collects the delinquent taxes, penalty, interest, court
costs or collection costs or attorneys fees from the taxpayer or from the proceeds of a forced sale or
foreclosure. In no event shall FIRM be entitled to any fee unless said fee is collected by CITY during the term
of this Contract or fee is collected by CITY on account(s) upon which FIRM is attorney of record at the time of
judgment. CITY shall pay said fees to FIRM by check monthly. No interest shall be accrued on any late
payment.
13. The compensation set forth in paragraphs 9 10 and 13 of this Contract shall be the total
compensation due from CITY to FIRM for all services provided pursuant to this Contract and in no event shall
FIRM seek any additional compensation from CTTY.
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RFSP # 2847
10. COLLECTION OF OTHER DELINQUENT ACCOUNTS
FIRM shall, upon written request of City, undertake the collection of delinquent accounts for paving
assessment liens, substandard housing demolition liens, and weed liens. The collection of these accounts shall
be undertaken on the basis of attorneys fees assessed to and collected from the debtors. CITY agrees to pay
FIRM, as compensation, all amounts received as attorneys fees on delinquent accounts for paving assessment
liens, substandard housing demolition liens, and weed liens which are collected during the term of this Contract
as a result of FIRMS collection efforts.
11. CONFLICTS OF INTEREST
FIRM agrees not to represent any client who has an adversary position with the City of Denton,
engage in any conflict of interest to fully comply with the Texas Disciplinary Rules of Professional Conduct
(Subtitle G - Texas Government Code) for the duration of this Contract.
12. TERM
This Contract shall have a term of three (3) years, beginning on , 2002 and ending on
, 2005 This Contract may be extended for two additional one-year terms upon the CITY giving
written notice to FIRM of its desire to continue this Contract at least thirty (30) days prior to the expiration of
the initial three-year term, This Contract shall continue in full force and effect from month to month at the
option of CITY, unless either party delivers written notice to the other party of its intent to terminate this
Contract at least thirty (30) days prior to the date of the intended termination. FIRM shall have an additional
six months to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy claims
filed prior to the termination date, and shall have the exclusive right to compensation of fees earned due to these
suits during this six month period. CITY shall have the right to sooner terminate this Contract by giving thirty
(30) days' written notice of such intention, or in the event of any of the events taking place under Section 33
Termination of Agreement". In case of such termination, FIRM shall be entitled to receive and retain all
compensation due up to the date of said termination. Upon termination, FIRM shall immediately deliver all
files in their entirety to CITY at no cost to CITY.
13. ATTORNEY'S FEES
In eminent domain and other judicial proceedings, FIRM will be entitled to only those attorney's fees
awarded by the court and then only if collected by CITY. In bankruptcy proceedings, FIRM shall be entitled to
a fee of 15% of the tax, interest, and penalty actually collected by CITY. FIRM agrees to file and diligently
pursue all claims on behalf of CITY in bankruptcy, eminent domain and other judicial or administrative
proceedings whether federal or state in nature.
14. TAX WARRANTS
Upon request and authorization of CITY, FIRM shall prepare and pursue the issuance of tax warrants.
FIRM shall then coordinate the seizure of personal property pursuant to warrant and actually accompany the
Tax Collector to the location of the personal property which is to be seized to insure the necessary procedures
have been followed.
15. SETTLEMENTS
No settlements or compromises of taxes, penalty or interest shall be effected where prohibited by law
and where authorized by law, only upon approval by CITY. If a taxpayer requested waiver is upheld as
provided by §33.011 of the Tax Code, FIRM will bear the costs of suit if it failed to notify the taxpayer of the
delinquency prior to filing of the suit.
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RFSP # 2847
W-lo CsyNcem
Any notice or other written instrument required or permitted to be delivered pursuant to the terms of
this Contract shall be deemed to have been delivered, whether actually received or not, when deposited in the
United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or
FIRM, as the case may be, at the following addresses:
CITY FIRM
City of Denton, Texas
ATTN: Assistant City Manager
Fiscal & Municipal Services
215 E. McKinney
Denton, TX 76201
Either party may change its mailing address by sending notice of change of address to the other at the
above address by certified mail, return receipt requested.
17 COLLECTION REQUIREMENTS
FIRM agrees to collect, between July 1, 2002 and June 30, 2005, not less than sixty percent (60%) of
the total dollar value of the adjusted base tax of the 2001 delinquency existing on July 1, 2002. FIRM agrees to
collect, between July 1, 2003 and June 30, 2004, not less than sixty percent (60%) of the total dollar value of
the adjusted base tax of the 2002 delinquency existing on July 1, 2003. FIRM agrees to collect, between July 1,
2004 and June 30, 2005, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of
the 2003 delinquency existing on July 1, 2005. Furthermore, should the CITY invoke the option to extend this
contract beyond June 30, 2005 as prescribed in Section 12, then the FIRM agrees to collect between the July 1
and subsequent June 30 time period, for each year the contract is extended, not less than sixty percent (60%) of
the total dollar value of the adjusted base tax from the most recent tax year of the delinquency existing on July 1
of each respective year. If FIRM does not collect the above referenced amount each year, it shallprovide CITY
with legal services, programming and computer services, or data processing equipment with a value not less
than Seven Thousand Five Hundred Dollars ($10,000.00) or, at the option of CITY, FIRM shall pay CITY the
sum of Seven Thousand Five Hundred Dollars ($10,000.00) on or before August 15 of the year it fails to collect
the minirraim amount specified herein.
18. VENUE
The terms, obligations and requirements of this Contract shall be construed in accordance with the
laws of the State of Texas. The obligations and requirements of the parties hereto are performable in Denton
County, Texas. Any litigation involving this Contract shall be tried in a court of competent jurisdiction sitting
in Denton County, Texas.
19. ACCEPTANCE OF EMPLOYMENT
In consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM hereby
accepts the employment of CITY and undertakes the performance of this Contract as above stated.
20. DIRECTIVES
All directives between FIRM and CITY shall be confirmed in writing.
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RFSP # 2847
21. COVENANT NOT TO SUE
FIRM further agrees not to bring any cause of action against CITY relative to this Contract. Should
FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1.00 and
the filing of such cause of action shall be considered a material breach of this Contract.
22. AMBIGUITY
Any ambiguity within this Contract shall be liberally interpreted in favor of CITY.
23. ASSIGNMENT
The rights and responsibilities of CITY under this Contract may be assigned by the City Council to
another governmental unit in Denton County without approval of FIRM. It is understood and agreed that this is
a professional services contract and CITY is contracting for the unique services of FIRM. FMM's rights and
responsibilities under this Contract may not be assigned by FIRM to another law firm or collection agency
without written approval of the assignment by the City Council.
24. INDEMNITY AGREEMENT
The FIRM shall indemnify and save and hold harmless the CITY and its officers, agents, and
employees from and against any and all liability, claims, demands, damages, losses, and expenses, including,
but not limited to court costs and reasonable attorney fees incurred by the CITY, and including, without
limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts
or omissions of the FIRM or its officers, shareholders, agents, or employees in the execution, operation, or
performance of this Contract.
Nothing in this Contract shall be construed to create a liability to any person who is not a party to this
Contract, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause
of action, or litigation filed by anyone not a party to this Contract, including the defense of governmental
immunity, which defenses are hereby expressly reserved.
25. INSURANCE
During the performance of the services under this Contract, FIRM shall maintain the following
insurance with an insurance company licensed to do business in the State of Texas by the State Insurance
Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above:
Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate.
The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to evidence
such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and
shall contain a provision that such insurance shall not be canceled or modified without 30 days prior written
notice to CITY and FIRM. In such event, the FIRM shall, prior to the effective date of the change or
cancellation, serve substitute policies furnishing the same coverage.
RFP # 2847 attached hereto as Exhibit "A" and the FIRM's response to the RFP attached hereto as
Exhibit "B" are incorporated herein as if set forth at length and made apart hereof The provisions of Exhibit
"A" and Exhibit "B" shall set forth obligations and duties of the FIRM to the extent that they do not conflict
with other provisions set forth in this Contract, which contractual provisions shall control.
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RFSP # 2847
27. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION
The parties may agree to settle any disputes under this Contract by submitting the dispute to
arbitration or other means of alternate dispute resolution, such as mediation No arbitration or alternate dispute
resolution arising out of or relating to this Contract, involving one party's disagreement, may include the other
party to the disagreement without the other's approval.
28. ENTIRE AGREEMENT
This Contract, consisting of _ pages and 2 exhibits, constitutes the complete and final expression of
the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their
agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations,
discussions, communications, and agreements which may have been made in connection with the subject
matter hereof.
29. COMPLIANCE WITH LAWS
The FIRM shall comply with all federal, state, and local laws, rules, regulations, and ordinances
applicable to the work covered hereunder as they may now read or hereinafter be amended.
30. DISCRIMINATION PRORIBITED
In performing the services required hereunder, the FIRM shall not discriminate against any person on
the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap.
31. PERSONNEL AND EQUIPMENT
A. The FIRM represents that it has or will secure, at its own expense, all personnel required to perform
all the services required under this Contract. Such personnel shall not be employees or officers of, or
have any contractual relations with the CITY. FIRM shall inform the CITY of any conflict of interest
or potential conflict of interest that may arise during the term of this Contract.
B. All services required hereunder will be performed by the FIRM or under its supervision All
personnel engaged in work shall be qualified, and shall be authorized and permitted under state and
local laws to perform such services.
C. The FIRM represents that it has or will secure, at its own expense, the hardware, software, and other
resources required to perform, in a timely manner, all the services required under the terms of this
contract.
32. ASSIGNABILITY
The FIRM shall not assign any interest in this Contract, and shall not transfer any interest in this
Contract (whether by assignment, novation, or otherwise) without the prior written consent of the CITY.
33. TERMINATION OF AGREEMENT
A. Notwithstanding any other provision of this Contract, either party may terminate by giving thirty (30)
days advance written notice to the other party.
B. This Contract may be terminated in whole or in part in the event of either party substantially failing to
fulfill its obligations under this Contract. No such termination will be affected unless the other party is
given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate
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and setting forth the reasons specifying the nonperformance, and not less than 30 calendar days to cure
the failure, and (2) an opportunity for consultation with the terminating party prior to termination
C. If the agreement is terminated prior to completion of the services to be provided hereunder, FIRM
shall immediately cease all services and shall render a final bill for services to the CITY within 30
days after the date of termination. The CITY shall pay FIRM for all services properly rendered and
satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of
termination, in accordance with Article 9 "Compensation". Should the CITY subsequently contract
with a new consultant for the continuation of services on the Project, FIRM shall cooperate in
providing information. The FIRM shall tum over all documents prepared or furnished by FIRM
pursuant to this Contract to the CITY on or before the date of termination, but may maintain copies of
such documents for its use.
34. MODIFICATION
No waiver or modification of this Contract or of any covenant, condition, or limitation herein
contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no
evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising
between the parties hereto out of or affecting this Contract, or the rights or obligations of the parties hereunder,
and unless such waiver or modification is in writing and duly executed; and the parties further agree that the
provisions of this section will not be waived unless as herein set forth.
35. INDEPENDENT CONTRACTOR
FIRM shall provide services to CITY as an independent contractor, not as an employee of the CITY.
FIRM shall not have or claim any right arising from employee status.
36. MISCELLANEOUS
A. The following exhibits are attached to and made a part of this Contract: Exhibit "A" - Request for
Proposals; Exhibit "B"-FIRM's proposal.
B. FIRM agrees that CITY shall, until the expiration of three (3) years after the final payment under this
Contract, have access to and the right to examine any directly pertinent books, documents, papers, and
records of the FIRM involving transactions relating to this Contract. FIRM agrees that CITY shall
have access during normal working hours to all necessary FIRM facilities and shall be provided
adequate and appropriate working space in order to conduct audits in compliance with this section
CITY shall give FIRM reasonable advance notice of intended audits.
C. For the purpose of this Contract, the key persons who will perform most of this work hereunder shall
be Debra Patton. However, nothing herein shall limit FIRM from using other qualified and competent
members of its firm to perform the services required herein.
D. FIRM shall commence, carry on, and complete any and all projects with all applicable dispatch, in a
sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing
the projects, FIRM shall take such steps as are appropriate to ensure that the work involved is properly
coordinated with related work being carried on by the CITY.
E. The CITY shall assist the FIRM by placing at the FIRM's disposal all available information pertinent
to the Project, including previous reports, any other data relative to the Project, and arranging for the
access thereto, and make all provisions for the FIRM to enter in or upon public and private property as
required for the FIRM to perform services under this Contract.
37. TIME OF THE ESSENCE
Time is of the essence with respect to all matters covered by this Contract.
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RFSP # 2847
91JK4K1WV($Rf9
The captions appearing at the first of each numbered section are inserted and included solely for
convenience and shall never be considered or given any effect in constnting this Contract
This Contract is executed on behalf of CITY by the presiding officer of its governing body who is
authorized to execute this instrument by order heretofore passed and duly recorded in its minutes and by a
partner of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to
execute this document on behalf of FIRM.
WITNESS the signature of all parties hereto in triplicate originals this the day of
. 2002, Denton County, Texas.
CITY OF DENTON, TEXAS
EULINE BROOK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
M
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
(Name of Firm)
BY:
(Name and Title of Signer)
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LINEBARGER GOGGAN BLAIR PENA & SAWSON, LLP
ATTORIVEVs AT LAW
Oil & Gas Bldg., Suite 1414
309 W. 7th Street
Fort Worth, Texas 76102-5113
(817) 877-4589 or (800) 262-9271
FAX (817) 877-0601 or (940) 458-4353
May 13, 2002
City of Denton
Purchasing Department
901-B Texas Street
Denton, Texas 76201
Attn.: Mr. Tom Shaw, Purchasing Agent
Re: RFP #2847 PROPOSAL FOR DELINQUENT TAX COLLECTION ATTORNEY
Dear Mr. Shaw:
On behalf of Linebarger Goggan Blair Pena & Sampson, LLP (Linebarger Goggan) and Gregory
& Conner, P.C. we are pleased to submit our proposal to the City of Denton for the renewal of our
contract to provide ad valorem tax collection services. Our firm represented the City of Denton
from 1986 to 1992, after which the firms of McCreary Veselka Bragg & Allen and Hayes Coffey &
Berry were awarded the contract for 5 years. After comparing the performance of the two law firms,
the City rehired our law firm in 1997. I have personally supervised our City of Denton collection
program since 1997 and look forward to the opportunity to continue to represent the City. I can
assure you our program for the City of Denton has remained one of the best overall programs
statewide, with our delinquent tax collection percentage rate reaching an all time high this past year.
Linebarger Goggan and Mike Gregory have collected taxes for various taxing entities within Denton
County and been a part of the Denton community since 1986. We are uniquely positioned to offer
the City of Denton the most effective delinquent tax collection program available, as we also
represent Dallas County, Tarrant County, Grayson County, Rockwall County, Wise County and
hundreds of other taxing jurisdictions throughout North Texas. Our established local office, our Fort
Worth and Dallas support offices, and our on -site personnel, allow us to commit substantial
resources to the collection effort for your City. Debbie Patton represents us on -site by coordinating
our efforts with the City of Denton and the Denton County Courts, as well as working as a liaison for
the City of Denton with the Denton County Tax Office.
Linebarger Goggan represents over 1,650 cities, counties, school districts, appraisal districts and
special districts throughout Texas. We are the largest delinquent tax collection firm in the state and
employ over 70 attorneys and more than 700 support staff in 26 offices throughout Texas. Our
dedicated staff can find delinquent taxpayers wherever they move, handle complex litigation and
Austin • Beaumont • Brownsville • Comae • Corpus Christi • Corsicana • Dallas • Edinburg • El Paso • Fort Worth • Houston • Jacksonville
Knoxville • Lu&in • New Orleans • Odessa • Philadelphia • San Angelo • San Antonio • The Woodlands • Tyler • Waco
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difficult bankruptcy cases, provide taxpayer assistance and work directly with your tax office staff to
resolve issues the City of Denton may encounter. Because we have such a large network of clients
and staff statewide, the City of Denton benefits from collection strategies and ideas that have proven
successful in other areas. We are quite proud that this past year, the U.S. Conference of Mayors
awarded our law firm and the City of Dallas the Award of Excellence in Public/Private
Partnerships for our delinquent tax collection program.
Our proposal tells our story in detail. We are proud of the effective program, that together with the
City of Denton, we have built. Highlights of our successful program include:
• Collecting $1,627,559 in delinquent base tax, penalties, interest and attorney fees for the
City of Denton since 1997.
• We have collected $254,012 of the current year receivable during the first ten months of this
year's collection cycle, which represents a 42% increase over our prior year collections of
$178,919 for the same time period.
• Last year, we collected 75.45% of the most recent year delinquent taxes turned over to our
law firm for collections. This represents our "best ever performance" for the City of
Denton.
• Filing suits involving 325 properties for approximately $300,000 in delinquent taxes,
penalties and interest during the previous two years.
• Conducting on -site visits to delinquent business personal property accounts.
• Issuing Orders of Sale and Writs of Execution only in those cases where we were unable
to resolve the lawsuit in any other manner.
• Working with each taxpayer individually, if necessary, to establish an installment payment
schedule they can afford, without causing undue hardship.
• Acting as liaison between the City of Denton Tax Office and the Denton County Tax Office
to resolve issues involving tax certificates on mobile homes.
• Providing address research for the tax office to assist them in maintaining a high current tax
collection rate. '
• Protecting the City's interests in 131 bankruptcy accounts totaling over $200,000 and
negotiating large bankruptcy settlements, such as the Montgomery Wards case.
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Our Denton County and North Texas Presence
Linebarger Goggan is pleased to be affiliated with the Denton law firm of Gregory & Conner, P.C.
This Denton law firm has assisted Linebarger Goggan with our contracts in Denton County since
1986. Mr. Gregory has continually practiced law in Denton since 1974 and maintains his own law
office at 303 North Carroll Boulevard, Suite 100. As a former Denton ISD Trustee and an active
member of the Denton County community, Mr. Gregory's assistance in our collection effort
significantly enhances our program.
Since the beginning of our service to Denton taxing jurisdictions, Mr. Gregory has assisted
Linebarger Goggan by acting as a liaison with local officials and in our litigation of tax cases. Mr.
Gregory is directly involved with our collection program by sharing responsibility for litigating the
city's tax cases with Linebarger Goggan attorneys. His partner, Charla Conner, assists him in these
efforts.
Linebarger Goggan provides delinquent tax collection services to hundreds of clients throughout
North Texas through our Fort Worth and Dallas offices. We have maintained an office in Fort
Worth since 1982 that employs a staff of 25 attorneys, collectors and litigation specialists. Dallas
employs 65 tax professionals and has served the City of Dallas, Dallas ISD, Dallas County and
numerous other clients within Dallas County since 1983. Both offices have an excellent reputation
for maximizing the delinquent tax revenue for their clients. Key individuals from both offices
support our City of Denton collection efforts. Deborah Patton, our Denton County Coordinator,
handles our day-to-day collection and litigation activities on -site in Denton County.
Approach to Collections
Together, Linebarger Goggan and Gregory & Conner, P.C., have customized our collection program
to fit the individual needs of the City of Denton. We are uniquely positioned to offer the City of
Denton the most effective delinquent tax collection program available while employing multiple
collection strategies to maximize your revenue.
We offer a comprehensive delinquent tax collection program that has proven highly effective.
Our success is largely attributable to the extent of personal and professional attention we expend in
our collection and litigation efforts. The City of Denton can be assured that Linebarger Goggan has
in the past and will continue to treat your taxpayers with the highest level of courtesy, while at
the same time providing highly effective collection services.
Linebarger Goggan's delinquent tax collection program is unsurpassed. Our performance is proven
and predictable. Our proposal is unique in that it offers the City of Denton many factors and
benefits that cannot be matched by our competitors including:
➢ Our affiliation with Gregory & Conner, P.C. as local counsel for the City of Denton
➢ Our proven performance, collection results and knowledge of City of Denton tax issues
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➢ Our historical track record of improving collections
➢ Our comprehensive collection program which emphasizes locating,and contacting delinquent
taxpayers prior to the filing of lawsuits
➢ Our statewide bankruptcy representation
➢ Our use of technology to support our collection efforts
➢ Our ability to provide legislative support
➢ Our local involvement and participation in the Denton community
➢ Our commitment to minority and women ownership and participation
We would consider it a pleasure to continue to represent the City of Denton. Our law firm is
committed to continuing to provide a delinquent tax collection program that maximizes your
collections and serves as a model for other cities statewide. We share your goal of providing the City
of Denton taxpayers with the best services available and we will continue to strive to help you fulfill
that obligation. We look forward to discussing our proposal with you.
Thank you for your consideration.
Respectfully,
4L
Stephen T. Meeks
Partner
Table of Contents
Executive Summary
Linebarger Goggan Background...................................................................1
Overview of Services Proposed for Collecting Delinquent Taxes for the
Cityof Denton............................................................................................1
Local Offices & Legal Resources.......................................................2
Services Proposed for the City of Denton..........................................4
Additional Services Provided.............................................................5
Conclusion....................................................................................................6
I. Collection Services
Levelof Expertise.........................................................................................1
Professional Recognition..............................................................................1
Collection Program.......................................................................................2
Proposed City of Denton Work Plan..................................................2
Taxpayer Communications Program.................................................4
Address Research / Taxpayer Location Program ..............................6
Bankruptcy Representation..........................................................................7
National Bankruptcy Services............................................................8
Taxpayer Assistance Program....................................................................12
Information Brochures......................................................................12
CallCenter.......................................................................................12
Correspondence..............................................................................13
Hardships.........................................................................................13
Other Taxpayer Services.................................................................13
Payment Agreements......................................................................14
Litigation Tax Sales & Seizures..................................................................14
Litigation Process............................................................................14
Foreclosure Marketing Program......................................................18
Procedures for Tax Re -sale Properties............................................21
Business Personal Property Collections..........................................21
II. Personnel Expertise
Proposed City of Denton Collection Management Team ..............................1
The City of Denton Collection Support Team...............................................1
The City of Denton Specialized Collection Teams........................................2
Central Support Group.................................................................................3
Biographies...................................................................................................3
The Linebarger Goggan Affirmative Action Policy........................................6
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
0 2002
Executive Summary
The law firm of Linebarger Goggan Blair Pena & Sampson, LLP (Linebarger Goggan) in
association with Gregory & Conner, P.C. (Gregory & Conner) is pleased to submit this
proposal to continue providing delinquent tax collection services for the City of Denton
(City).
The team of Gregory & Conner and Linebarger Goggan offers the City our national and
local expertise and award winning experience in the collection of delinquent taxes. Our
firms know and understand the collection of delinquent property taxes and offer tumkey
collection programs. Together, we offer the City a unique, comprehensive set of services
and a partnership that will maximize the revenue collected for the City of Denton.
LINEBARGER GOGGAN BACKGROUND
Linebarger Goggan has 26 offices in Texas and over 700 support personnel, including
more than 70 attorneys who practice ad valorem tax law exclusively. We pride ourselves
on a thorough, professional understanding of property tax law at every level. Our
attorneys and staff are committed to meticulous attention to detail throughout the
collection process, whether examining records in the tax office, prosecuting lawsuits in
the courtroom, or appearing before governing bodies to report the results of our efforts.
Our law firm provides full -service property tax representation to more than 1,650 taxing
entities statewide, including 112 Texas counties, 492 Texas school districts and the Cities
of Houston, Dallas, El Paso, and San Antonio.
In our 25 years of collecting delinquent taxes, we have developed proprietary collection
software programs that integrate mass and specialized mailings, telecommunications,
address and ownership research, traditional trial advocacy, and post judgment
enforcement using advanced computer technologies. Our firm has invested more than $25
million in data processing and digital communications technologies for the sole purpose
of collecting government receivables.
OVERVIEW OF SERVICES PROPOSED FOR COLLECTING
DELINQUENT TAXES FOR THE CITY OF DENTON
Linebarger Goggan in association with Gregory & Conner proposes a contract renewal
with the City of Denton (the City) to provide a comprehensive delinquent tax collection
program. While the formula for collecting delinquent taxes is standardized, every client
has different situations and needs. The services listed on the following pages are offered
to the City of Denton, to address the City's RFP requirements. We will be glad to discuss
any additional services it may also desire.
LinebargerGoggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Executive Summary - Page 3
City of Denton Proposal — Executive Summary
Regular Performance Reports
We will submit regular reports to the City to maintain collection program accountability.
Any other reports will be provided in writing as requested, or presented orally at the
City's discretion.
Taxpayer Assistance
We have an exclusive 800-number for taxpayer assistance in Austin that will serve as a
backup system for our Fort Worth 800-number in the event of any temporary, unexpected
local office phone system failures.
National Address Research/Taxpayer Locator Service
We use several national electronic database programs to increase the likelihood of finding
delinquent taxpayers that move frequently. Our delinquent tax address research service
has on-line access to state and national databases, giving us a greater likelihood of
locating your delinquent taxpayers. Once located, they are notified of their delinquent
status, and put into an active collection program.
Bankruptcy Expertise
We have developed a highly successful bankruptcy pkactice for delinquent tax
collections. The features of our bankruptcy program include:
➢ We have a professional team focused exclusively on national bankruptcy collection
efforts.
➢ We aggressively seek payment of all bankruptcy claims in Chapters 7, 11, 12, and 13.
We maintain a close working relationship with bankruptcy trustees and staff, allowing
us to provide an even greater level of protection for our clients.
➢ Our firm has established procedures to protect our clients' interests by timely filing
claims, responding to objections to claims, contesting interest rates and valuation of
collateral proposed by debtors (which are used to determine the payment actually
received), and objecting to plans of re -organization.
➢ We regularly conduct client seminars to familiarize tax office personnel with
bankruptcy issues and instruct them in the handling of these accounts.
Qualified Counsel
Mr. Stephen T. Meeks, Partner, will serve as our attorney on all day-to-day matters
pertaining to the City of Denton collection program. Mr. Meeks is also the managing
partner of the Linebarger Goggan Fort Worth office and will provide oversight and
assistance in complex issues.
Mike Gregory of Gregory & Conner will act as local counsel for the firm. Mr. Meeks and
Mr. Gregory have considerable experience in ad valorem tax matters and will be
available to assist the City with any questions it may have regarding our delinquent tax
program. They will also advise the City on other collection issues as requested.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Executive Summary -Page 5
City of Denton Proposal — Executive Summary
Title Work and Lien Holder Notices: We will obtain a complete title report on
every real property lawsuit. We will also notify all lien holders and interested parties of
any lawsuits filed.
Taxpayer Locator Service: Using local, state, and nationwide database search tools,
we will research bad addresses until the City of Denton delinquent taxpayers are located,
notified of their delinquent status, and put into an active collection program.
Local Representation: We are immediately available by telephone or in person for
meetings, conferences, consultations, hearings, or other related tax matters on a daily
basis. Our collection program will be customized to fit the specific needs of the City.
Personal Service for the City of Denton Taxpayers: Partner Steve Meeks, Local
Counsel Mike Gregory, and Area Manager Debbie Patton. will focus their attention
exclusively on the City of Denton collections. In addition, all of our Fort Worth office
personnel are available to assist taxpayers in person and to respond to all phone inquiries
and letters from taxpayers. We will regularly meet with taxpayers to help them arrange
payment of their delinquent taxes.
Regular Performance Reports: We will submit regular performance reports
describing collection efforts and our results achieved on behalf of the City of Denton at
whatever schedule the City desires. All other periodic reports will be provided in writing
if requested or presented orally at the City's discretion.
Additional Services Provided
Collections Analysis: We will prepare an in-depth analysis of the delinquent tax roll
in order to develop the most effective collection work plan for the City.
Complex Civil and Civil Appellate Litigation: We will represent the City of
Denton in all types of lawsuits arising from collection activities, such as counterclaims,
injunction suits, eminent domain proceedings, declaratory judgment actions, and all types
of complex property tax related litigation.
Publications & Media Relations: Our firm's quarterly newsletter will be distributed
to City of Denton officials to keep them apprised of changes in legislation and recent
judicial decisions that may affect tax operations. With the City's approval, experienced
public relations professionals will also integrate media coverage into the City of Denton
collection program to inform property owners of their responsibilities and deter
delinquency.
Taxpayer Assistance/Education: Our local staff will make presentations to
community groups or organizations interested in learning more about property taxation
and taxpayers' rights as requested by the City of Denton.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
1. Collection Services
LEVEL OF EXPERTISE
Linebarger Goggan Blair Pena & Sampson, LLP (Linebarger Goggan) is one of the
largest private law firms collecting delinquent government receivables in the United
States. Our highly qualified attorneys and professional collection teams have over 25
years' experience in the industry and focus solely on collecting delinquent government
debts.
We currently represent over 1,600 governmental clients, including the U.S. Department
of Treasury/Financial Management Services (FMS), the Cities of Dallas, Houston,
Knoxville, New Orleans, and Philadelphia, and counties such as Miami -Dade, Florida
and Shelby County, Tennessee. We offer our clients turnkey debt collection programs,
including delinquent taxes, court fees and fines, parking violations, federal delinquencies,
student loans, utility fees, and other miscellaneous government receivables.
Our experience includes:
■ More than 25 years' experience in collecting delinquent property taxes.
■_ More than 700 dedicated professionals, including over 70 attorneys.
■ 32 offices, including Austin, Dallas, Fort Worth, Houston, Jacksonville, Knoxville,
Los Angeles, Memphis, New Orleans, Philadelphia, and San Antonio, just to name a
few.
■ Customized collection programs that are aggressive but fair, consisting of demand
letters, collection calls, litigation, post judgment enforcement, etc., all resulting in
maximum revenue collections for our clients.
■ Nationwide bankruptcy representation.
■ Industry leader in computer systems and software support for governmental
collections.
PROFESSIONAL RECOGNITION
Many independent parties have professionally evaluated our law firm, and we have
consistently received high reviews.
■ In January 2001 the United States Conference of Mayors presented its Award for
Excellence in Public -Private Partnerships to our firm in recognition of the successful
collection efforts we have achieved with the City of Dallas. Our firm has collected
over $543,000,000 in delinquent receivables during the 18 years that we have
represented Dallas and the Dallas school district.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter I -Page 5
City of Denton Proposal — Collection Services
Special Mailings
Accounts that remain unresolved after receipt of our first two demand letters require more
specialized collection efforts. We carefully analyze the profile of the remaining
delinquency and implement a detailed work plan to maximize collections on behalf the
City.
We target select accounts for special mailings which occur from time to time throughout
the collection process. These include specialized mailings to multiple property owners,
absentee owners, business taxpayers, etc. Each mailing is designed to focus the taxpayer
on the need to promptly address his or her delinquency. Examples of these specialized
target mailings include:
■ Intent to seize letters,
■ Intent to sue letters,.
■ Letter to payment arrangement violators,
■ Set for Trial notification letters,
■ Letters to debtors who have received an
Chapter 11 or 13 Bankruptcy Plan,
■ Intent to Foreclose letters,
■ Order of Sale notification letters, and,
■ Other targeted mailings.
Order of Discharge or defaulted under the
Mailing Costs
We absorb all costs related to the production and mailing of written taxpayer notifications.
These costs include, but are not limited to, tax statements, stationery, postage, penalty and
interest computation, and printing. We also can provide the City of Denton with printouts
of the delinquent tax roll either in its entirety or by selected groups of delinquent accounts
at no additional cost.
Telephone Notification and Personal Contact
We have found that personal contact is an essential component of an effective collection
program. A team of highly skilled personnel is employed for the sole purpose of
contacting taxpayers personally in order to collect delinquent accounts.
High dollar and complex accounts, including accounts involving federal agencies, are
assigned to our specialized telephone collection unit. Our telephone collection unit is
trained to be courteous and understanding, yet persistent. During mailings and other peak
season activities, these professional collectors monitor our phone bank operations,
answering the more difficult taxpayer questions with complete and concise information.
Our telephone collection unit tracks assigned delinquent accounts until the tax balance is
satisfied.
Linebarger Goggan Blair Pena & Sampson, I✓ P in Association with Gregory & Conner, P.C.
Chapter I -Page 7
City of Denton Proposal — Collection Services
■ Identifying business personal property accounts, and
■ Locating accounts on the tax roll that lack address information.
Maintenance of Records on File
■ Address corrections completed in-house are entered in our files,
■ "N" code is placed on the account noting a new address,
■ Updated address is used in place of the outdated address on the tax roll,
■ Accounts identified as having a bad address are compiled within our system and
cross-referenced by taxpayer name, address, account number and amount owed, and
■ Name and address listings of the entire tax file are used for multiple account research.
Business Personal Property and Related Accounts
Some tax collection firms file business personal property tax lawsuits using only the
ownership information and address contained on the tax roll.- Unlike other law firms, we
include secured creditors in the business personal property lawsuits. This encourages
creditors with an interest in the business personal property to protect that interest by
payment of all amounts owed.
■ Personal property accounts are researched for identification and ownership,
■ Research staff finds the correct name and address of the owner, president, or registered
agent for these personal property accounts,
■ Staff compiles and transfers all relevant information required to produce the lawsuit, and
■ The litigation support department produces the lawsuit.
Title Research
1 We use qualified local vendors or staff abstract personnel to prepare complete title reports
on real property accounts. We estimate the cost for abstract of title at $175 per report. Our
firm pays the initial cost for title research. All title costs are handled in accordance with
Section 33.48 of the Property Tax Code; the City of Denton will not incur any costs.
BANKRUPTCY REPRESENTATION
When an individual or business files for bankruptcy, ordinary procedures used to collect
t delinquent taxes may no longer be used. Federal law expressly prohibits any continued
l attempt by creditors to collect from a bankruptcy debtor by any means other than the
procedures specifically set forth in the United States Bankruptcy Code.
We have four comprehensive Bankruptcy Departments throughout Texas (Houston,
Austin, Dallas and San Antonio), fully prepared to actively pursue collections of ad
valorem taxes in bankruptcy proceedings. We are in an excellent position to respond
promptly to any bankruptcy developments within these jurisdictions from our local offices
in these four major cities. We also actively pursue bankruptcies throughout the United
States, with our attorneys routinely appearing at hearings held outside the State of Texas.
We currently represent clients in bankruptcies pending in 38 states. Our attorneys
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter I -Page 9
City of Denton Proposal — Collection Services
■ Information available through the legal community, and,
■ Bankruptcy Court's computer system (PACER).
Once a debtor is clearly identified, a "notice of appearance" and a "proof of claim" on
behalf of the client are prepared and filed with the court. The proof of claim is essential to
protecting the client's interest since this document puts the debtor on notice that taxes are
owed according to tax. records. Once the notice of appearance and proof of claim are filed,
several varying events can occur in the proceeding, which determine whether and how
much payment the client will receive. Our lawyers are skilled in this specialized area to
handle all aspects of the bankruptcy proceeding, such as objections to claims,
subordination of tax liens and re -determination of tax liability.
p Claim Objections
l Common to all bankruptcy chapters is the claim objection process. Depending on the
chapter of bankruptcy and the circumstances of the case, we either defend attacks against
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
1
Chapter I -Page 11
City of Denton Proposal — Collection Services
March 1997, and we appealed to the District Court in Arizona. The District Court
affirmed the bankruptcy court's ruling in September 1998.
An attempt at a negotiated settlement was made in January 1999. Our client refused the
offer, and Linebarger Goggan appealed this decision to the 9`h Circuit Court of Appeals in
San Francisco in February 1999. At the present time only the 1991 taxes remain unpaid;
all other years are current. While the bankruptcy court has closed the case, America West
remains under the shadow of the bankruptcy court.
Montgomery Ward & Company, Inc. Real & Personal Property Tares
Montgomery Wards is the largest single pending bankruptcy case affecting our clients to
date. Ward's filed its first bankruptcy in 1997. In that case, the debtor objected to all tax
claims and sought reductions of the amounts owed for 1997 taxes. Linebarger Goggan
clients' claims were allowed and paid at 100% of the base tax; whereas other clients were
only allowed 80% of their tax amounts. Our clients also received interest in addition to the
base tax amount.
Ward's filed its second bankruptcy in late December 2000 and immediately commenced to
close all of its stores. Throughout January and February 2001, our bankruptcy attorneys
participated in court proceedings in Wilmington, Delaware to protect our clients' interests.
As originally proposed, all of the going -out -of -business sale proceeds were to be paid to a
bank lender. However, due to our early involvement in the case, to date, over $4,000,000
in pre -petition personal property taxes have been paid to our North Texas clients since the
case was filed. Furthermore, we spearheaded an effort to convince the mortgage holder
for most of the real property to pay the 2000 taxes in March 2001, rather than waiting for
the Debtor to pay after the sale of the property. Finally, over $1,400,000 in 2001 personal
property taxes was paid to our clients in April 2001.
JumboSports
This big retail sports outlet filed bankruptcy in Tampa, FL. The debtor filed motions to
approve going -out -of -business sales free and clear of our liens. The liens were to attach to the
proceeds, but there was no tracking of proceeds or what account they went into. We objected
on behalf of: our clients: City of DallasIDISD, Dallas County (TX), and Jefferson County (TX).
Linebarger Goggan also hired local counsel to represent our clients in the Tampa court.
The court ordered over $479,000 set aside in a segregated account to adequately protect
the claims of our clients. No money can be distributed from this account without notice to
our law firm, so the funds cannot be diminished, and we will not have to argue issues
regarding tracing & co -mingling later in the case.
Barry's Jewelers
This national retail jewelry store filed for bankruptcy in Los Angeles. Linebarger Goggan
tax clients received $213,780 in delinquent tax payments. Only one other law firm's
clients received interest payments on the claims out of all the secured tax claimants in the
country.
Linebarger Goggan Blair Pella & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter I -Page 13
City of Denton Proposal — Collection Services
During peak periods our phone bank responds to scores of calls each day. The nature of
the incoming calls varies and includes ownership changes, mortgage company problems,
bankruptcy, appraisal problems, exemptions, and hardships. The most common problem
encountered is confusion on the part of taxpayers who have paid one entity's taxes but not
another's, or vice versa. We provide taxpayers with a single contact point for information
on taxes due to the appropriate taxing authorities. Because of our experience in dealing
with taxpayers and their related problems, we can provide prompt problem resolution by
telephone, saving your taxpayer time and frustration.
Correspondence
Our collection activities result in thousands of letters on an annual basis from taxpayers
who have questions and concerns about their delinquent accounts. All written
correspondence received from City taxpayers or representative attorneys will be
immediately answered in writing from our office. We place great emphasis on responding
to any inquiry in a direct and friendly manner.
Hardships
Our in-depth collection activities will help us identify taxpayers who need special attention
to address their delinquent tax accounts. Our policy is to work individually, one to one,
with each taxpayer who may be experiencing a hardship situation. Our primary goal is to
design a payment arrangement, according to the City's guidelines, that meets the taxpayers
needs and available resources. We also assist the taxpayer in using exemptions and
community assistance programs that are available. We will comply with City and tax
office policies for handling payment arrangements.
Homeowners who may have severe hardships and cannot meet the minimum requirements
to comply with the City's payment arrangement program are counseled regarding several
alternatives. Homeowners are advised to consider home equity loans, refinancing, and
where applicable, homeowners are directed to the Denton County Appraisal District to
apply for an over-65 exemption.
Other Taxpayer Services
We believe that an effective tax collection program must combine aggressive collection
methods with taxpayer assistance and education. The scope of services routinely provided
by our firm to taxpayers includes:
■ Taxpayer education seminars covering the taxpayer's rights and responsibilities,
■ Taxpayer assistance in obtaining exemptions and in correcting ownership information,
and
■ Assistance to taxpayers facing hardships in obtaining payment arrangements.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter I -Page 15
City of Denton Proposal — Collection Services
(when using service by certified mail) in accordance with the Texas Rules of Court, Texas
Property Tax Code and local court rules.
Information Gathering
Before personal property lawsuits are filed, information extracted from the delinquent tax
roll is merged with updated ownership and address data obtained by our address research
staff. Our system is designed to prepare literally hundreds of personal property lawsuits
within a matter of days.
Before filing any real property lawsuits, every account is sent to a title or abstract
company for title verification. We then merge the title information, together with the last
known address of the defendant, with accounts receivable information, which will be ex-
tracted from the City's delinquent tax rolls.
TAX SUIT PROCEDURES
Service of processis -
issued in�
Linebarger Goggan Blair Pefia & Sampson, IT P in Association with Gregory & Conner, P.C.
Chapter! - Page l7
City of Denton Proposal — Collection Services
service on all defendants. Our lawyers and legal assistants utilize a state-of-the-art lawsuit
tracking system to monitor and manage the litigation volume that we have undertaken.
Once service of process is obtained on all defendants in a particular case, we immediately
set that lawsuit for trial.
Collection of Judgments by Execution and Sale
Real Property
At times it becomes necessary to reduce a judgment to sale. Delinquent tax suits are the
last alternative to enforce collections. A suit to foreclose a tax lien and permit the sale of a
property to recover taxes is a remedy available to all taxing jurisdictions under the
Property Tax Code. While selling someone's property is not desirable, it becomes a
necessity if other efforts fail. Quality litigation on accounts worthy of suit often produces
excellent results and maintains collection momentum as it sends a highly visible message
to the public about the need to resolve outstanding tax bills quickly.
Pre -Foreclosure Procedures
Linebarger Goggan uses non-discriminatory methods in the selection of property for suit,
based upon the individual requirements of each client. While we make recommendations
from our analysis of the delinquent tax roll and any applicable statute of limitations, we
adhere to the guidelines as set out by the client.
It is the policy of Linebarger Goggan to order and review title on any real property before
filing suit. If our attorney did not file the original lawsuit, as in the case of interventions,
title must be ordered and reviewed before we will participate in any judgment taken on
said lawsuit. Before judgment is taken or any property is sold at one of our tax sales, our
staff is required to update the title to make. sure that there have been no changes in the
chain of title since the original title review.
Because of the potential for liability resulting from judgment or tax sale and the potential
for malpractice claims, there are no exceptions to these rules at our firm.
With respect to physically inspecting the property, our staff always survey the property in
question prior to sale for a couple of reasons. First, a personal visit to the site provides a
potential opportunity for locating the owner/occupier and making payment arrangements
for delinquent taxes. Our staff are always courteous and professional, and they are often
more effective in one-on-one situations than any mailing or telecollection program when it
comes to settling actual tax bills.
We also insist on site visits in order to determine the actual condition of the property and
to familiarize us with the location and potential buyers, in the event a suit is filed, and the
property sold at a tax sale. As part of this process, we frequently photograph the site, both
for our records and for future advertising at a tax sale if needed.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter! -Page 19
City of Denton Proposal — Collection Services
Tax Sales Procedures
Once we have a judgment, we prepare the property for a tax sale. If there is no final effort
to pay the amount due by the delinquent property owner, specific procedures are followed
as listed below.
We have had considerable success with this program in other areas in Texas.
■ Files are assembled approximately 75 days before the sale,
■ Files are carefully reviewed again, to identify any changes, which may occur with the
title work, service or judgment on the defendants,
■ Staff checks for payments or service on all tracts,
■ Staff checks for recent bankruptcy filings on all defendants,
■ Notice of foreclosure is sent to all defendants,
■ Property inspection is conducted on each tract and the owner or resident is .contacted_
If they are not home, a business card is left and the neighbors are contacted. Neighbors
are quite often the most likely buyers for tax sale properties,
■ Commercial property tracts are checked with the local office of the Texas Natural
Resources Conservation Commission to see if the property is on any list for known
hazardous waste contamination. If the property is listed, it should not be posted for
sale, as the potential liability to the taxing unit is much too great if the property gets
"struck off',
■ FDIC properties are checked for lienholder defendants on judgments. If so, the
property may not be eligible for sale,
■ Files are sent to the attorney for review,
■ Files are turned over to the post judgment department for preparation,
■ Pages are carefully proofed to ensure accuracy in the Notice and Order of Sale,
■ Notice and Orders of Sale are delivered to the district clerk's office, the sheriff and to
the tax office(s) involved,
■ Notice of Sale is delivered to the newspaper for publication. The first publication must
appear no later than 20 days before the sale,
■ Bid sheets are sent out to interested bidders, to the sheriff, and tax office,
■ Staff arrives in advance of the tax sale to inform the buyers of any post judgment taxes
or municipal liens, which may be due outside the opening bid amount on the day of the
tax sale, and
■ Documentation resulting from the tax sale is immediately prepared and filed.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter I -Page 21
City of Denton Proposal — Collection Services
long ago that it makes very little sense to hold out for sometimes thousands of delinquent
dollars, which will probably never be collected, while the property languishes year after
year on the exempt roll. However, to obtain the maximum benefits of this alternative
requires prompt and thorough preparation and action. We have pioneered this procedure
throughout the state, which can benefit the City.
We operate a comprehensive tax sales program, including enhanced marketing strategies
for the re -sale of any properties that do not sell at tax foreclosure sales. These properties
are marketed through the Internet, real estate offices, and a national list we maintain of
interested buyers.
Procedures for Tax Re -Sale Properties
As with our tax sales, we adhere to specific procedures in order to thoroughly explore all
avenues for returning these properties to the tax roll. The following steps are taken once a
property is struck off at a tax sale and a sheriffs deed is filed with all appropriate
authorities for the affected taxing entities:
■ Create a re -sale property list and bid procedure outline. Update the list after each tax
sale and when re -sale property is sold;
■ Include the re -sale list with the tax sale bid sheet mailing at least three times a year.
Provide the post judgment department with all phone inquiries;
■ Put signs up on the property to identify it as a tax re -sale property. Include a contact
name and phone number;
■ Walk the neighborhood around the property to inform local residents of the property's
availability;
■ Secure the property either with locks or contact the appropriate city/county department
to board it up, to prevent unauthorized access;
■ Make sure all local-realtors have a current re -sale property list. Ask to address the
group at its next meeting to promote these properties. Put these properties up on the
law firm web page and link to other real estate pages;
■ Create a "Re -sale Book" of properties for walk-ins; include pictures, maps and copies
of the sheriffs bid sheets; and,
■ Work closely with the client's real estate broker in the advertising and selling these
properties.
Business Personal Property Collections
The most common remedy for personal judgment collections on delinquent personal
property taxes is a writ of execution with a levy and seizure upon any of the judgment
debtor's non-exempt property. The key to a successful execution is identifying through
post judgment discovery procedures which property of the debtor is subject to a levy. Our
firm is experienced in this area and will use the appropriate processes to full advantage in
these cases.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter I -Page 23
City of Denton Proposal — Collection Services
and exposure to sanction than to seize property only to discover that the owner is
protected by the federal bankruptcy court;
■ Inspect the location of the property to be seized prior to applying for a tax warrant in
order to verify that the business is in existence and that there is property available for
seizure. Our normal procedure is to notify the targeted taxpayer that tax warrants are
being filed and that without additional notice, the property could be seized and sold for
non-payment of taxes;
■ Send a notice to the property owner demanding payment and warning that seizure
proceedings are imminent unless payment arrangements are made;
■ Prepare seizure documents, file them with the appropriate court and obtain a court
order to begin the seizure. Submit an inspection report to the client;
■ Coordinate with the tax office and constable's office to schedule a time and date for
the seizure;
■ Arrange for the moving and storage of any property that is expected to be seized in the
event an actual seizure is necessary;
■ Conduct the seizure. The objective is to collect the delinquent taxes due. If the total
amount cannot be paid, but reasonable arrangements are possible, we will generally
recommend that a payment plan, of limited duration, be approved. Only when it
appears that this will prejudice the client's ability to recover in full, the taxes owed,
will actual seizure be recommended;
■ Move any property seized to a secure location that is bonded if necessary, and stored;
■ Issue a Notice to the property owner and all parties having an interest in the property
according to a search of the Uniform Commercial Code and other records on file. at the
county clerk's office, that the property will be sold at public auction after ten days,
unless the taxes are paid;
■ . Determine whether any state agency should be notified, such as the Texas Alcohol and
Beverage Commission, if property that is regulated, such as liquor, is to be sold; and,
■ Arrange for the auction of the property. Publish the notice of the date and time of the
auction to promote interest in the sale, and if necessary, conduct the auction as
promptly as possible to minimize the storage costs.
Success Rate
Although the publicity that is normally received as a result of a seizure of property for
taxes is of significant benefit to improving collections, the primary purpose of a tax seizure
is to collect taxes that, quite likely, would otherwise be lost. We have found that more
than 80% of our seizures result in immediate payment of delinquent taxes. We are usually
successful in recovering most of the taxes due on the remaining 20% from the sale
proceeds.
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Ill. Collection Technology
COMPUTER RESOURCES AND SERVICES
Linebarger Goggan is dedicated to
optimizing tax collection efficiency while
upholding the highest professional
standards. We pioneered the application of
high technology to delinquent tax collection
when we entered the field over two decades
ago. Our representation of the largest
taxing jurisdictions in Texas, as well as
taxing jurisdictions in Philadelphia,
Knoxville, and New Orleans, has led us to
invest more than $25 million to develop the
very latest, most sophisticated data
processing and communications technology
for collections.
Network Administrators and Oracle Programmer Operations
Over the past 25 years, our in-house Information Technology group has developed an
automated collection system to manage delinquent tax accounts and other government
receivables. To accomplish this task, we have focused on the automation, centralization,
security, and standardization of our computer systems. We have our own IBM mainframe and
various computer server systems (SUN, AMD, Intel, Dell) and proprietary software
developed specifically for use in collecting receivables for our clients. Our system currently
manages over $1.1 billion worth of receivables for Texas clients, and tracks over 50,000
related bankruptcy cases throughout the United States. More than 80 programmers and
technical personnel support our Information Technology collection operations.
No other law firm has duplicated our delinquent tax collection technology. The software
applications we have developed, described in more detail below, enable us to continuously
meet the changing needs of the tax collection process.
Computer Personnel
Data Processing
This group provides statewide data processing support. Data
processing personnel will read the City of Denton's tax roll
and verify the contents of the data by producing a series of
random statements for its tax office. Once the City of Denton
confirms the tax statement information as being accurate, the
job will be forwarded to the mailroom team
Data Processing
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter III -Page 3
City of Denton Proposal — Collection Technology
Oracle Internet Application Server 1.0.2.2.0
Oracle Test/Development Application Server
AMD server (ORFORMS02) — 1 1.2GHz processor with 512 MB RAM
Oracle Internet Application Server 1.0.2.2.0
Oracle Production WEB Server
DELL Poweredge 1300 (SAACTIASSERVER) — 2 450 MHz processors with 768 MB
RAM
Oracle Internet Application Server 1.0.2.0.0
Development Tools
Oracle Forms 6.0.8.15.0
Oracle Reports 6.0.8.15.0
SQR 4.3.2.1
IBM System Equipment
1 IBM 9221-170 CPU 6 MIPS
1 IBM 3990-006 Disk Drive Controller
1 IBM 9391-A10 ramac frame
IBM 9392-B23 Disk Drives (configured virtually to 32 IBM 3390-3's)
capacity for each 3390 is 2.8GB, for a total of 89.6GB
1 Storage Tech 4674 9-track tape drive/controller
1 Storage Tech 4670 9-track tape drive
1 IBM 3480-A22 tape drive controller
2 IBM 3480-B22 tape drive units (has 2 tape drives per unit)
4 IBM 9336-020 FBA disk drives
IBM 3274-D41 terminal controller
3 IBM 3179 terminals
1 Xerox 4050 printer (online configuration) 50 pages per minute
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P. C.
Chapter III -Page 5
City of Denton Proposal — Collection Technology
Proprietary Software
Our systems designers and computer programmers have developed specialized applications,
using the latest technology to meet our clients' growing and specific needs for sophisticated
software applications. The fruit of our labor has been the development of several proprietary
software systems specially designed to support all aspects of delinquent tax collection,
including mass and special mailings, research, litigation, bankruptcy, and taxpayer assistance.
Our computers can process updates whenever a mailing is done for the City of Denton. This
computer system can provide activity reports, identified by specific codes, for the tax
databases. Our activity reports can break out a delinquency by year, property category, and
collection codes, such as bankruptcy, litigation, etc.
Litigation Tracking Software
We believe we have created the most effective software system available for the management
and processing of collection lawsuits pending in the various court systems. We use a refined
on-line tracking system specifically designed for use by our attorneys, paralegals, and
litigation assistants to manage lawsuits filed on behalf of our clients. This multi-access system
allows litigation staff to query and update all information regarding defendants, plaintiffs, tax
amounts, legal descriptions, account numbers, and the general litigation status of each lawsuit.
Functions include:
■ Monitoring all mailings,
■ Monitoring the filing of original petitions and other legal pleadings,
■ Monitoring the status of service of lawsuits,
■ Monitoring the progress of tax litigation in the court system,
■ Preparing amended petitions, motions to set for trial, dismissals, judgments, motions
for substitute service, citations, discovery requests and responses, affidavits requesting
citation by publication, motions to appoint attorney ad litem, requests for orders of
sale, orders of sale, sheriffs sale listings, transmittal notice letters and other legal docu-
ments; and,
■ Monitoring account status, including exemptions, pending litigation between the
taxpayer and taxing entity, and payment arrangements.
All information from the computer -generated plaintiffs' petitions is imported into the litigation
tracking system the same day the lawsuits are filed. This system also generates reports that
heighten the accountability of our litigation activities and help us meet our clients' collection
goals.
Bankruptcy Tracking Software
Linebarger Goggan's bankruptcy -management software is an on-line tracking and document
generation system that coordinates all bankruptcy -related collection activities. The system's
centralized file design facilitates the consolidation of multiple client and account cases into
one bankruptcy case entry. This consolidation permits easy tracking, quick analysis, and fast
Linebarger Goggm Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
Chapter Ill -Page 7
City of Denton Proposal — Collection Technology
we do not allow direct data transfers to or from our main computer system. Our system
accepts data transfers twenty-four hours a day, seven days a week.
We also accept many electronic tape formats including:
■ 8min (with capacity up to 5 GB),
■ 1/2 Inch nine track @ 1600 5600 BPI, maximum block size 32K standard,
■ 1/4 Inch streaming tape,
■ Labeled (standard IBM, Custom) or unlabeled,
■ ASCII or EBCDIC, and
■ Fixed record length or variable.
We can also accommodate transfer files in most standard PC file structures in addition to
client -defined fixed length formats. When the account media is received, it is logged into the
media receipt log. It is then loaded onto the system using customized load programs tailored
to individual client requirements.
Wide Area Network/Local Area Network
The Houston office is an integral part of the Linebarger Goggan Wide Area Network
(WAN), which electronically links all of our offices together with state-of-the-art
technology. Our wide area network consists of 49 nodes or offices, connecting our offices
to our data center.
This network is made up of over 750 personal computers, 47 servers, and 66 routers. The
technologies that are employed in our network are Frame Relay, ISDN, Tl lines, and
VPN. Geographically, our network spans from as far as Philadelphia, Pennsylvania to El
Paso, Texas and Jacksonville, Florida.
lLineharger Goggan Blair Pefia & Sampson, LLP in Association with Gregory & Conner, P.C.
IV. References
J On the following pages we have provided references for several taxing entities represented
by Linebarger Goggan. A listing of over 1,600 clients is attached as Exhibit B. We invite
1 you to contact any of our clients to discuss our law firm, our collection efforts and
services, and the results we achieve for them.
REFERENCE CONTACT INFORMATION
City of Denton
Ms. Carolene Folse
Tax Analyst
City of Denton Tax Office
601 E. Hickory St., Suite G
Denton, TX 76205
(940)349-7889
City of Rockwall
Mr. Ray E. Helm
Chief Appraiser
Rockwall CAD
841 Justin Rd.
Rockwall, TX 75087
(972) 771-2034
City of Carrollton
Ms. Beverly Murphy
RTA Tax Assessor Collector
1945 E. Jackson Rd.
Carrollton, TX 75011-5125
(972)466-3127
City of Grand Prairie
Ms. Elizabeth Walley
Finance Director
P.O. Box 534045
Grand Prairie, TX 75053-4045
(972) 237-8067
City of Sherman
Mr. Larry Ward
Chief Appraiser
Grayson CAD
205 N. Travis
Sherman, TX 75090-5922
(903)893-9673
Linebarger Goggan Blair Pena & Sampson, LLP in Association with Gregory & Conner, P.C.
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Enron: A Cautionary Tale
by John Dillman, Managing Attorney of the Houston Bankruptcy Department
and Marguerite Dover M.B.A., Client Services
The post-9/1 I economic environment is hosting some dark financial
forces. The recession is now official. Unemployment is at its highest
point in six years (5.8%) while Oct. and Nov. of 2001 had the largest
job -loss mm (799,000) of any two -month period in 20 years. County
and municipal governments face massive losses in sales tax revenue
due to growth in
Internet purchases M14DE08&VVE
(see Figure I on Page
3) while city income-
tax revenues are grow-
ing at their lowest
rates in four decades.
These forces threaten
revenue streams
(Figure 2 on Page 8)
of the nation's coun-
ties and municipali-
ties as they struggle to
fund essential public
services and meet unbudgeted expenses for security and public health
measures resulting from the terrorist attacks.
Bankruptcy-as-business-strateV. Perhaps the most sinister eco-
nomic trend facing our clients is the meteoric rise in bankruptcies.
Most important to the entities that we represent are the large business
bankruptcies which involve large current tax dollars (Table I on Page
7). The most disturbing bankruptcy trend we have noticed is the pur-
poseful use of bankruptcy by large diversified corporations as a strate-
gic business move. Originally designed to restructure failing enterpris-
es, bankruptcy (specifically Chapter 11 Reorganization) has instead
become a strategic
by C3rarks P09ft FhcbW' move by companies to
shed debt, improve bal-
eepdnfed wM pe.iuW. of Chcdu Finches Fnr mere of his wok eo to www.Nmdeucandwwc.wm and
www.lowcomu.cam.
ance sheets, sell assets
and write off unused
facilities, resulting in
corporate bankruptcies
that are larger and
more numerous than in
the past. In 2001, a
record number of pub-
lic companies (231)
filed for Chapter I I se the country slid into the first recession in a
decade. Thirty-six bankrupt companies listed debts in excess of $1 bil-
lion —another record. Enrols bankruptcy offers us a cautionary tale.
(Continued on Page 3, "Enron')
Dallas County Consolidation Will Save
Taxpayers $1 Million
I
Dr. David Childs, Tax Assessor Collector for
into the existing Dallas County tax collection
Additionally, -property taxes may be paid
Dallas County, announced the consolidation
of the City of Dallas and the Dallas
program. These two taxing entities join 33
other suburban cities, school districts, and
online at the site via electronic check, debit
card, or Visa, MasterCard, or Discover cred-
1
A®
Independent School District tax collections
other taxing entities that have chosen Dallas
County for the collection of
I ....
it card.
fCnntinued on Paae d_ Mnllns County"1
[I]
C1
It
I
P
C
p
I
U
LJ
"Enron"
(Coninued from Page 1)
Largest bankruptcy case in history. Enron's case is the
largest and most complex bankruptcy ever filed, with $60 bil-
lion in assets and $40 billion in liabilities. It looks like it will
also be the most investigated bankruptcy ever. No less than
eleven congressional subcommittees and three government
oversight agencies (Departments of Justice, Labor and the
SEC) are looking into allegations of criminal behavior, com-
mercial fraud, insider trading, inaccurate and misleading dis-
closures, unlawful accounting practices, and illegal partner-
ships used to keep debt off their books. Everyone wants to
know why Enron executives were able to cash in $1 billion
in company stock prior to Enron's problems being made
public while investors lost $1.2 billion and employee 401(k)
Plans lost $850 million — a theme captured in the Tadeus
and Weez metaphor depicting Enron executives jumping to
safety in their golden parachutes while creditors go down
with the ship.
watch for additional entities fling for bankruptcy so that we
may update our claims quickly. Finally, Enron's choice to file
bankruptcy in New York further complicates matters, and
means that litigation becomes more difficult and expensive
because it takes place in another state. In fact, our firm is one
of many patties that asked the court to transfer these cases to
Houston — a request that was denied.
In our Houston office alone, we filed claims in excess of $3
million within two business days of Enrols bankruptcy.
Fortunately, almost all of these claims are for current -year
taxes, giving them a higher priority with the bankruptcy
Mission impossible. Beyond its sheer size, this case, or
more correctly, these cases (since approximately 35 Enron
affiliates have filed bankruptcy) are made extremely difficult
to manage because of the complexity created by several ele-
ments: Enron's numerous subsidiaries; the numerous
accounts owed by all of these subsidiaries; the fact that not
all Enron entities are in bankruptcy; the fact that the Debtors
were in many vaned businesses; and the Debtors' shopping
around for a favorable out-of-state bankruptcy court.
Before filing claims for current -year taxes against Enron in
bankruptcy court, these.complexities.had to be sorted out
and thoroughly understood — and very quickly, too.
What's in a name? Like most empires, Enron's kingdom
was built with many smaller pieces. Unfortunately, some
pieces of this empire have names that suggest no ties to
Enron, and many are in Ear -Flung locations. As a result, we
have had to spend a great deal of time researching entities
and ownership. These subsidiaries each tend to have multi-
ple accounts, many with no outward hint of Emmn involve-
ment. Some of these entities worked in the traditional Enron
oil -and -gas arena, others in power trading and still others in
everything from water treatment to broadband services.
These things made research on our clients' systems more dif-
ficult. Many, but not all, of these entities filed bankruptcy,
further complicating our task of determining what accounts
should be included in the bankruptcy cases, and what should
be collected otherwise.
Additional waves of filings. Even more troubling am the
subsequent waves of Enron filings taking place, with 22
additional entities placed in bankruptcy since the initial fling
on December 2, 2001. Because of this, we must continually
Figure 1.
2001 Tax Dollars Lost to Internet Sales
TX FL LA TN PA
S..: Nadonal Anodadoo of Cowda
court. Of all the parties owed money by Enron in these
cases, the taxing authorities will likely fare better than other
creditors.
Mechanism for shedding liabilities. There is no doubt the
Enron cases are significant in and of themselves, and we can
only hope that they don't come along very often. But beyond
the masons for Enron's demise, these cases are significant
because they represent a growing trend of more complex
business bankruptcy cases with higher dollars at stake.
Bankruptcy has gone from the graveyard for insolvent enti-
ties to a mechanism for corporations to shed large liabilities
and emerge with substantial competitive advantages over
their competition. Bankruptcy has been transformed into
what is being called a'business strategy' to obtain clear title
to assets to facilitate sales that could never have been
arranged without it. The bad news for us is that these types
of cases mean our clients have more dollars at stake at any
given time and that the level of legal sophistication required
in handling the situation is enormous. The good news is that
(Continued on next page)
1
Joe Hubenak
July 2, 1937 - November 14, 2001
Our heartfelt condolences go out to the friends and family of Joe Hubenak who died on
November 14, 2001 after a long battle with cancer. We are all so saddened by his passing
thoughts his Sandra, thew
and our are with wife, and with children.
Joe Hubenak led a long and distinguished career of public service and was a member of
the Lamar Consolidated Independent School District board of trustees at the time of his
death at the age of 64.
Hubenak served Fort Bend and Brazoria counties as a member of the Texas House of
Representatives from 1968 to 1979 and is remembered for his many contributions to his
community. He held a wide variety of positions in organizations as diverse as the March
122011111
of Dimes, the Knights of Columbus, the Texas National Guard, the Fort Bend County
Fair Association and the Board of Pardons and Paroles of the Texas Department of
Criminal Justice. His accomplishments include his successful effort to create the 6,000-
acre Brazos Bend State Park and the passage of legislation that created benefits for sur-
vivors of volunteer firefighters killed in the line of duty.
Managing Partner Bill King reflected on Hubenak's death: "Joe was always an absolute
gentleman. I considered him a friend and will miss him — this world would be a better
place with more Joe Hubenaks in it"
Partner Mike Siwierka remembers Hubenak with fondness: "I met Joe at the Fairgrounds
years ago when he was the agricultural extension agent. He came over to meet me, a face
NJ
he didn't know. We became immediate friends and enjoyed going out for Chinese food
during our lunch hours over the past couple of years. Joe was someone who you could real-
ly know after just meeting him for the first time. No hidden agendas; nothing but siz_ _
ty. I liked him as an older brother and will miss him dearly. He had a presence about him
Alk
that extended far beyond his home of Fort Bend County."
Attorney Vince Ryan spoke for all of us who knew Joe — "Jae was a big man with a big
heart Heaven will finally be a place equal to him."
Kaufman County
TAC Honored
Kaufman County TAC Donna Sprague was
named 2001 Tax Assessor -Collector of the Year
by the Tax Assessor Collector Association
(TACA) at their November A&M conference.
Donna has been the Kaufman County TAC
since January 1985, where she collects taxes for
Kaufman County and 25 other taxing jurisdic-
tions. Other awards garnered by Donna include
the 1988 Super Texas Award from the
Secretary of State; the 1990 Outstanding
Service Award from the Secretary of State; the
1991 Yellow Rose of Texas Award from
Governor Am Richards; and the 1992 City of
Terrell Mayoral Award. Our congratulations go
to Donna for these honors in recognition of her
professional contributions to her field. *
Joe Hubenak
��... this world
would be a
better place
with more Joe
Hubenaks in
it*"
•
-- William E. King, Managing
Partner
TACA Tax Assessor -Collector of the Year Donna Sprague, TAC Kaufman County
and Austin Office Manager Bob Caudill.
Ili
Et Cetera 5
Bankruptcy Court = the Quick and the Dead
.by Partners David Aelvoet and Beth Weller
Although the Linebarger Law Firm is well known for suc-
cessfully collecting delinquent taxes and other delinquent
government receivables, few realize that our attorneys also
collect current -year taxes when businesses declare bankrupt-
cy. Last year alone, the bankruptcy department collected $6
million in current -year taxes from just a handful of cases
managed by our firm — money that would likely go uncol-
lected without the quick intervention of our bankruptcy attor-
neys.
Bankruptcy alert. Collection of tax dollars in the bank-
ruptcy forum is risky; and the recent surge in bankruptcy fil-
ings, up 20% in 3rd Quarter 2001 over the same period in
2000, has compounded the financial exposure for local gov-
ernments. Worse yet, it comes at a time when local govern-
ments are struggling with the dual problems of declining rev-
enues and unbudgeted post-9/1 I expenses (see ENRON: A
CAUTIONARY TALE on Page 1). In fact, the nation's cities
have spent more than $1.5 billion on additional security and
public health measures since the terrorist attacks. Add to
that the disturbing trend of bankruptcy cases with assets
exceeding $1 billion (Table 1) and the amount of tax dollars
at risk becomes significant. To preserve their revenues in this
environment, taxing entities need bankruptcy collection pro:
grams that are aggressive, comprehensive, responsive and
quick — especially when it comes to collecting current -year
taxes in bankruptcy court.
Bad news/good news. In the past, some bankruptcy courts
viewed current -year taxes as a post -petition debt that the
debtor would eventually have to pay in the ordinary course
of business, while other courts pro -rated the taxes for the year
based upon the date the bankruptcy was filed. A ruling by
the Fifth Circuit Court several years ago resolved this issue
by declaring the entire current -year tax as a pre -petition debt
— thereby placing current -year ad valorem taxes at risk by
now being subject to repayment through the bankruptcy
process. This was bad news in that a bankruptcy court could
now order tax money destined for public coffers to be
reduced in amount and even subordinate its payment to the
claims of junior crediton. As a result of this ruling, the col-
lection of current -year taxes has become a critical component
of our bankruptcy operations.
But the courts ruling also has a silver lining to it. The good
news is that it allows local taxing jurisdictions to immediate-
ly join in the bankruptcy proceedings while assets we being
divided up and to take legal steps to object to any action that
would compromise the collectibility of their revenue.
Timing is everything. As with most things in life, timing is
everything in a bankruptcy proceeding. When a business
files for Chapter I 1 (reorganization) bankruptcy, debmrs
routinely begin selling assets while creditors rush into court
to ask that their debts be prioritized above those of other
creditors. This competition among creditors combined with
the sell-off of assets creates an urgent need to get into court
quickly in order to protect our clients' lien interests in the
property itself, and to safeguard the sale proceeds by seeking
immediate payment and/or an escrow, of an amount equal to
the tax debt. Being slow to get into court could mean that the
debtor's assets (and the money from their sale) are gone.
Cases in point. Montgomery Ward's second bankruptcy fil-
ing is an example of why speed is so important in this legal
arena. Within just four months of filing, Montgomery Ward
was able to dispose of all of its inventory and other personal
property assets; and within twelve months they sold most of
their fee title properties as well. Aware of the likelihood of
this speedy sell-off of assets, within the first month of Ward's
bankruptcy filing, two Lineberger attorneys flew to
Delaware (where the case was filed), hired local counsel
(required to take part in local court proceedings) and
appeared in bankruptcy court to preserve our clients' finan-
cial claims. As a result of this quick intervention, our clients
ware paid $1.4 million in 2001 personal property taxes
alone, with most of this money disbursed to the respective tax
units prior to June 2001 (several months prior to the year
2001 taxes even being billed). Similarly, in Payless
Cashway's second bankruptcy, a Linebarger attorney went
to Kansas City and fought for the prompt repayment of our
(Continued on next page)
Et Cetera 7
r7'
Too Young for Jury Duty?
How old do you need to be to serve on a jury in the state of TeassP Surprisingly few people can answer that
question with any certainty. Most are amazed to learn that I8-year-olds can be called to jury duty — which is why
the Ed Rachal Foundation, a non-profit organization in Corpus Christi, funded a 25-minute educational video proj-
ect on the topic for Texas high school students for the purpose of encouraging young adults to participate in the jury
system.
Ernest C. Garcia, a new attorney with Linebarger's Austin office, gave an on -camera interview in the Austin office's
law library for the production company filming the project. Garcia is a former State District Judge for the 126th
Judicial District Court where he presided over civil proceedings including family matters, business cases and contract
disputes.
"This may be a child's only contact with the court
system, and I purposefully try to demystify the
field of law in the hopes of opening the door as a
career option to children who may come from
backgrounds where the law is not considered a
career possibility."
wi Pictured: APCO Worldde video production crew members with
L' b tt E st C G in The Austin office's law libra -IL-
Jury impacts fairness of decision. In his expe- ne urger a orney me . arc i ry
rience on the bench, Garoia estimates that fully R) Rob Davis, Chris Philips, Ernest C. Garcia and producer Marilyn
Panther
one-third of those summoned to jury duty fail to
show up, preferring, instead, to take their chances
with a contempt citation that can cost anywhere from $100 to $1,000. "The judicial system in the U.S. provides for
a court trial with a jury of our peers. It can impact the fairness of the decision in a court case. If the system is to work,
we need all segments of a community to participate so that a jury of peers is possible. This includes young adults."
Qualifications for jurors. Jury pools are gathered from two sources: voter registration roles and drivers licenses.
There are eight qualifications necessary to sit on a jury:
I ) must he 18 years old;
2) a citizen of the state and county in which he is to serve as a juror;
3) is qualified to vote in the county in which he is to serve;
4) is of sound mind and good moral character;
5) is able to read and write;
6) has not served as a petit juror for six days during the preceding three months in the county court or during the
preceding six months in the district court;
7) has not been convicted of a felony; and
8) is not under indictment or other legal accusation of misdemeanor or felony theft or any other felony.
The video production company, APCO Worldwide, also interviewed a court clerk, an attorney and past jurors for G the project. The finished video will be shown in public high schools in Corpus Christi where arcia grew up and
where his mother teaches at St. Patrick's Catholic School.
Taking the responsibility seriously. "We have the privilege of living in the United States with all the rights and
civil liberties that come with that. However, with these rights come responsibilities, and it's disappointing to see just
how apathetic we are about fulfilling the responsibility of jury duty. Hopefully, this video will impress on young adults
how important it is to take that responsibility seriously." *
Et Cetera 9
Recent Appointments
Managing Partner DeMetris A. Sampson was recently appointed to the Dallas Chamber of Commerce
Board of Directors.
' Partner Mike Siwierka of our Houston office was recently appointed Legal Counsel for the Fort Bend
Managing Chamber of Commerce. He will also serve as an ex-officio member of their Board. Mike has been a resident
PartnerDeMetris A. of Fort Bend County since 1983 and is also active in the St. Laurence Knights of Columbus, the
� Sampson Brazoria/FoK Bend County Rural Railroad Commission and the Fort Bend Business Alliance.
Partner Barbara Williams of our Fort Worth office has been appointed as a Business Representative to the
her committee is mandated by Chapter I 1 of the Education Code to assist the principal in developing the
Campus, Improvement Plan to assess the academic achievement for each smden4 set the campus performance
objectives, and identify the campus goals including parental involvement and violence prevention. Williams
will serve a two-year term in this position.
Partner
Barbara Attorney Ernest C. Garda of Austin has been appointed to the board of directors of the Womeri s Advocacy
Williams Project, Inc. Among the services this statewide non-profit organization provides are legal resources For women
and their children who have been victims of family violence or physical abuse. About 85% of the Texas
women served by this organization fall below the national poverty guidelines. Garcia will be one of only two
men appointed to serve on the board of directors. Over 300 attorneys in Teas volunteer to give free legal
consultations to women seeking advice on matters such as consumer problems, landlord tenant disputes, and
employment discrimination law. Their Family Violence Legal Hot Line number is: 1$00-374-HOPE. l$
New Capital Partners. Named
Partner Mike
Site Based Decision Making Committee at Arlington High School in Arlington, Texas. The twenty-mem-
Siwierka
f
Attorney
Ernest C.
Garcia
J
1
PI
David Aelvmt works out of our San Antonio office managing our Bankruptcy
Collection Program.
Sharon Humble manages our Philadelphia office.
Mike Siwierka is based in our Houston office and is the attorney for the Southwest Team
as well as manager of our Richmond office.
® Et Cetera 11
If you have questions about the bills, please call
Bruce Anderson at 800-262-7229 x 1226
1
Linebarger Goggan Blair Pena & Sampson, LLP
Legislative Report
House Bills
Appraisals
HB 16-Corte Tax Code §11.43
Adds § 11.439 to Tax Code § 11.43 to allow for an application for a disabled veterans exemption up to the earlier of the
fast anniversary of the date the taxes were paid or the first anniversary of the date the taxes became delinquent. Effective
September 1, 2001.
HB 394-Keffer Business and Commerce Code
Adds Section 17.835 to the Business & Commerce Code requiring a person to file an original inventory with the chief
appraiser if they are going to conduct a going out of business sale. The chief appraiser must send notice of the filing to the
comptroller and the taxing units affected within five business days after the inventory is filed with their office. Effective
September 1, 2001.
HB 506-Smith Todd Tax. Code § 11.26
Amends § § 11.26 (g) and (h) to allow surviving spouses to transfer their over 65 tax freeze. For anyone qualifying for the
exemption, they should be treated as if it went into effect on August 25, 1997. Effective January 1, 2002.
HB 824-Ellis, Dan Tax Code § 11.23
Section 11.23, Tax Code, is amended to exempt county fair associations from ad valorem taxation concerning the
buildings it owns and uses to hold agricultural fairs. This bill would make certain that horse and dog racing facilities do
not qualify. Effective January 1, 2002.
HB 1100-Lewis. Ron Tax Code § 21.031
Section 21.031, Tax Code, is amended to clarify that a vessel or other watercraft to be used as an instrumentality of
commerce or a special-purpose vessel or other watercraft that is under construction in this state is presumed to be in
interstate commerce and therefore not located in this state for longer than a temporary period. This same test is applied to
vessels under construction and tangible personal property that will be incorporated into the vessel. Effective January 1,
2002.
I HB 1194-Brimer Tax Code
Amends Section 312, Tax Code, regarding the eligibility of certain property owned or leased by a local official for ad
valorem tax abatement or tax increment financing. It clarifies that property, subject to a tax abatement agreement in effect
when the person becomes a member of the governing body or of the zoning or planning board or commission, does not
become ineligible for the tax increment financing. Effective September 1, 2001.
HB 1392-Keffer Tax Code § 11.43
Section 11.43(c), Tax Code, is amended to provide that once an ad valorem tax exemption for certain community housing
development organizations is allowed, it need not be claimed in subsequent years. Amendment requires a Community
Housing Development Organization to notify the chief appraiser if a property receiving an exemption under § 11.182 is
acquired or sold. Effective June 14, 2001.
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Bruce Anderson at 800-262-7229 x 1226
HB 3121-Ritter Tax Code 11.31
Requires TNRCC to adopt rules to implement the pollution control exemption. Such rules must ensure that the
determinations made are equal and uniform and ensure that property used for the production of goods and services is not
exempt. A chief appraiser or property owner would be allowed to challenge the determination of the TNRCC. Effective
September 1, 2002.
HB 3123-Alexander
Adds new Section 23.521, which authorizes Parks and Wildlife Department, with the assistance of the Comptroller, to
develop standards to determine qualification under §23.51(7) (wildlife management). The Comptroller shall adopt the
standards and distribute to appraisal districts, and they must be followed by the districts and by ARBs. The standards may
specify minimum acreage required for wildlife management appraisal, taking into account factors such as the activities
conducted, the type of indigenous wildlife propagated, the region of the state, or other relevant factors. The standards may
also require a written wildlife management plan upon request of a chief appraiser. Repeals Section 23.52(g), which
currently requires the Comptroller, with assistance of Parks and Wildlife, to develop rules for appraisal districts to use in
determining wildlife management qualification. Effective September 1, 2001.
HB 3383-Davis Yvonne Tax Code § 11.182
1 Section 11.182(f), Tax Code, is added to allow the governing body of a taxing unit to require an organization entitled to
an exemption under subsection (a) to show that at least, forty percent of the exemption value will be expended on social,
educational, or economic development services for the residents of the property. Effective January 1, 2002.
HJR 44-Flores Tex. Const. Art. VIII § 1
Allows the legislature to exempt travel trailers from ad valorem tax effective January 2002. Election November 6, 2001.
House Bills
Collections
HB 337-Hawlev Alcoholic Beverage Code
Alcoholic Beverage Code is amended to allow the Alcoholic Beverage Commission to cancel or deny a permit for the
retail sale or service of alcoholic beverages if it finds that the permit holder or applicant have not paid delinquent ad
valorem taxes due on the permitted premises or due from a business operated on the premises. Effective September 1,
2001.
HB 468-Solomons Tax Code § 32.015
Section 32.015, Tax Code, is amended to provide that tax liens will no longer be filed with the Department of Housing
after September 1, 2001. Instead, a tax lien on a manufactured home will be established in the manner provided by
Sections 32.01 and 32.05. The Transportation Code is amended to require each application for a permit to transport a
manufactured home be accompanied by a certificate from the tax assessor -collector for each taxing unit in which the
home is located stating that there are not unpaid ad valorem taxes on the home due. If the home is not listed on the most
recent tax roll of each taxing unit, the permit must also be accompanied by evidence showing the home was moved into
the taxing unit after January 1 or a certificate from the appraisal district stating the owner has provided the appraisal
district with information sufficient to list the home on a supplemental appraisal roll. There is a $500 fine for moving a
manufactured home with out the accompanying permits and certificates. Effective September 1, 2001.
HB 490-Heflin Tax Code
An individual may not serve on the appraisal district board of directors, ARB, or be chief appraiser if they own property
with delinquent taxes. A tax collector may continue to collect vehicle inventory tax even if taxes are assessed and
collected by another taxing unit or the appraisal district. An ARB member may be removed from their position for ex
parte communications or conflicts of interest. In cases of litigation, taxpayer information held by the appraisal district,
otherwise confidential, may be disclosed to the attorney representing a taxing unit in the collection of delinquent taxes. A
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Bruce Anderson at 800-262-7229 x 1226
HB 1876-Grav Tax Code § 33.71
Section 33.71, Tax Code, is amended to allow an attorney appointed a master to practice law in the referring court if
qualified to do so. Effective May 24, 2001.
HB 2185-Goolsbv Local Government Code
Amends Section 130.0045, Local Government Code, to allow the county tax assessor -collector to set the fee for
processing certain payments by credit card. Effective June 11, 2001.
fHB 2832-Smithee Tax Code § 31.11
Section 31.11(g), Tax Code, is added to provide that if a taxpayer submits a payment of taxes that exceeds by $5 or more
the amount of taxes owed, the collector shall mail written notice of the amount of overpayment accompanied by a refund
application form. This same language is in HB 490, which is effective on September 1, 2001. Effective January 1, 2002.
HB 3162-Brown Local Government Code
Authorizes municipalities to accept payment of fees, fines, court costs, and other charges by credit card or other electronic
` means without charging an additional fee. Effective June 11, 2001.
HB 3364-Menedez Tax Code 33.06
Allows an individual who is disabled as defined in 11.13(m) to defer or abate a suit to collect delinquent taxes. Effective
June 14, 2001.
HB 3626-Puente
This bill relates to the ratification of the creation of the Tri-County Groundwater Conservation District, including the
administration, powers, duties and operation of the district. The district has the authority to levy an ad valorem tax in the
amount of I cent per $100 of assessed valuation. Effective September 1, 2001.
HB 3634-Farrar Local Government Code
Amends the Local Government Code to create the North Side Management District. The District has the authority to
impose an ad valorem tax and issue bonds. Effective June 16, 2001.
House Bills
Schools
HB 1532Kuemoel Education Code
Section 42.302, Education Code, is amended to provide that the total amount of maintenance and operations taxes
collected by a school district with alternate tax dates is the amount of taxes collected on or after January 1" of the year in
which the school year begins. Earliest effective date September 1, 2001.
HB 3343-Sadler Education Code
Amends the Insurance Code and Education Code to provide for the operation and funding of certain group coverage
programs for certain school and educational employees and their dependents. All school districts would receive $75 per
month to cover insurance costs. School district size determines the group or local insurance plans. The rollback tax rate
formula for school districts receiving funds for teaching health benefits is changed. This bill also raises the allowable
wealth per student and provides additional state aid. Effective September 1, 2001.
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Bruce Anderson at 800-262-7229 x 1226
1
HB 1081-Cook Water Code
Amends the Water Code to create the Fayette County Groundwater Conservation District. To pay the maintenance and
operating costs of the district and to pay any bonds or notes issued by the district, the district may impose an ad valorem
tax at a rate not to exceed two cents on each $100 valuation of taxable property. Effective September 1, 2001.
HB 1200-Brimer Tax Code
Amends Chapter 313, Tax Code, as it relates to the enactment of the Texas Economic Development Act. The Act would
authorize the continuation of the Property Redevelopment and Tax Abatement Act, including the authorization of certain
ad valorem tax incentives for economic development, including authorizing school districts to provide tax relief for
certain corporations and limited liability companies that make large investments and create or maintain jobs. At least 80
percent of the jobs created must be "qualified jobs" and the property owner may create as few as 10 jobs to qualify for the
incentives. This bill is aimed at high-tech clean rooms. Effective September 1, 2001.
HB 1448-Oliveira Tax Code § 312.204
Amends the Tax Code to allow a governing body to agree with the owner of a leasehold interest in tax-exempt real
property that is located in a reinvestment zone, but that is not in an improvement project financed by tax increment bonds,
to exempt a portion of the value of tangible personal property located on the real property, if the owner agrees to make
specific improvements. Effective June 13, 2001.
HB 1449-Oliveira Tax Code § 312 and 320
Amends the Tax Code to continue the life of the Property Redevelopment and Tax Abatement Act until December 31,
2009. This bill also prohibits school districts from granting tax abatements after September 1, 2001. Effective June 13,
2001.
I HB 1833-Giddings Government Code
Amends the Local Government Code to set forth provisions regarding the enforcement of certain health and safety
ordinances, including access to property owner information, and alternate methods of the delivery of notice of violations
1 of health and safety ordinances. Effective September 1, 2001.
I HB 1842-Callegari
This bill relates to the creation, administration, powers, duties, operation, and financing of the West Harris County
Regional Water Authority. Effective May 28, 2001.
HB 1869-Wohl egemuth Manufactured Housing Act
A manufactured home is considered to be real property and therefore to be treated as attached to the land, unless the
consumer designates the home as personal property. Effective September 1, 2001.
HB 1922-McCall Government Code
Adds Chapter 559, Government Code, relating to state government privacy policy. An individual would have a right to be
informed about information collected on themselves and a right to correct any incorrect information. The bill would also
establish a privacy task force to study issues related to the information practices of governmental bodies. Effective
September 1, 2001.
I HB 1990-Turner, Sylvester Local Government Code
1 Amends the Local Government Code to provide for the creation of the Near Northwest Management District with the
authority to impose taxes and issue bonds. Effective May 28, 2001.
1
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Bruce Anderson at 800-262-7229 x 1226
1
HB 3552-Raymond
Amends the Texas Manufactured Housing Act to change language relating to when a new HUD -code manufactured home
is permanently affixed to real estate; and as to when a notice of attachment or certificate of attachment is filed in the real
property records of the county. The state agency handling certificates of attachment must provide a report to the tax
1 collector containing certain information on the owner and mobile home. Effective September 1, 2001.
HB 3634-Farrar
This bill creates the North Side Management District and authorizes the levy of an ad valorem tax. Effective June 14,
2001.
BB 3642-Counts
` This bill creates the Lower Seymour Groundwater Conservation District and authorizes the district to levy an ad valorem
1 tax not to exceed 5 cents for each $100 of taxable value. Effective June 17, 2001.
HJR 45-Tillery Tex. Const. Art. IV § 8
The Governor shall convene the Legislature to appoint presidential electors if the Governor determines that a reasonable
likelihood exists that a final determination of electors will not occur before the deadline. Passed. Election November 6,
1 2001.
HJR 75-Mowery
Amends the Texas Constitution to eliminate obsolete, archaic, redundant, and unnecessary provisions and to clarify,
update, and consolidate certain other provisions. Passed. Election November 6, 2001.
Senate Bills
Appraisals
SB 247-Shapleieh Tax Code § 25.025
Section 25.025, Tax Code, is added relating to confidentiality of certain appraisal records. Specifically makes the home
address of peace officers and other criminal justice employees confidential if the individual chooses to restrict public
access to the information. The Comptroller is charged with creating the form. This bill makes the same changes in the
Open Records Act. Effective September 1, 2001.
SB 248-Carona Tax Code § 11.252
Adds § 11.252 to exempt leased vehicles that are used primarily (at least 50 percent of the use) for activities that do not
involve the production of income. The comptroller must create a form to be completed by the lessee, and the form must be
maintained by the owner of the leased vehicle. The lessor must file a report with the Chief Appraiser covering all leased
vehicles and information as to whether it is used for production of income. Effective January 1, 2002.
SB 650-Carona Tax Code § 6.41
This bill amends Sections 6.41(b) and (e), Tax Code, to allow for the increase in size of the ARB from 15 to 40 members
in counties with a population of 250,000 or more. It would also allow for the increase in the size of an ARB in counties
with a population in excess of 500,000 from 30 to 75. Effective January 1, 2002.
SB 862-Staples Tax Code § 11.251
Section 11.251(h), Tax Code, is amended to allow a property owner requesting an exemption for Freeport goods to have
additional time to provide requested information. The property owner will not be late if they file before the date the
appraisal review board approves the appraisal records. If the property owner does not deliver the requested information
before the 3l' day after the date the notice is delivered, but does deliver the information before the appraisal records are
approved, the property owner is liable to each taxing unit for a penalty in an amount equal to 10 percent of the amount
imposed by the taxing unit on the inventory or property and the amount that would otherwise have been imposed. The
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SB 1710-Van Putte Tax Code 312.206
Deletes the requirement that other taxing units execute a tax abatement agreement within 90 days of a municipal
agreement. Provides that the execution, durations and terms of an agreement are governed by those provisions applicable
to a municipality. Effective September 1, 2001.
SB 1737-Cain Tax Code 25.195
Amends 25.195 to provide that for property appraised by a private appraisal firm pursuant to an appraisal district contract,
the property owner is entitled to inspect and copy, at the office of the appraisal firm, all information the firm considers in
appraising the property, including calculations, personal notes, correspondence, working papers, and thought processes.
The information must be made available within 15 days after a written request. If the property owner requested the
information, the ARB may not hold a hearing concerning the property until the firm has allowed inspection and copying
or the owner withdraws the protest or motion. Effective May 26, 2001.
SJR 6-Duncan
Article VIH § 1-n exempts the same type of goods as the freeport exemption, except that the definition of property which
qualifies includes property that is acquired or imported in order to be forwarded outside the state or to another location in
the state. Goods in transit can be exempt under this bill if they are detained at a location not owned or under the control of
the property owner for assembling, manufacturing, processing, or fabricating, and are transported out of the state, or to
another location in the state within 270 after acquisition. This constitutional amendment was proposed in the 1998 session.
Passed. Election November 6, 2001.
Senate Bills
Collections
SB 201-Carona Local Government Code
Amends the Local Government Code to authorize counties and municipalities to provide access to information and to
enter into contracts for the payment of taxes, fees, or other charges through the Internet. The county or municipality may
charge a fee for the access to recover direct and reasonable costs. Effective May 11, 2001.
SB 256-Carona Tax Code Sec. 34.21(g)(2)
Section 34.21(g)(2), Tax Code, is amended to add to the list of reimbursable costs on the resale of property struck off to a
taxing entity. A taxing unit would be entitled to be reimbursed for the personnel and overhead costs reasonably incurred
by the purchaser in connection with maintaining, preserving,. safekeeping, managing and reselling the property, which are
similar to those costs for which a purchaser at a tax sale can be reimbursed. Effective May 22, 2001.
SB 732-Barrientos Local Government Code
Amends the Local Government Code to address the receipt of money by a county after the start of the fiscal year. The
commissioners court may adopt a special budget for the limited purpose of spending revenue not included in the budget
for that fiscal year. In addition, at least 60 days before the first day of the county's fiscal year, the assessor -collector shall
prepare a budget for the expenditure of the funds maintained and controlled by a county tax assessor -collector that are not
included in the county budget. The budget is not subject to approval by the commissioners court. Funds in those accounts
may not be used to supplement the salary or cover the personal expenses of the assessor -collector. Effective September 1,
2001.
i SB 1736-Cain Tax Code 33.011
Allows a taxpayer to qualify for a waiver of penalty and interest under this section if the taxpayer pays the taxes within
three years of the date the taxpayer knows or should have known of the delinquency (currently is 21 days). Waiver of
interest is mandatory upon a finding by the governing body. Effective June 30, 2001.
To receive this report via e-mail rather than U.S. Post, 11
e-mail marla.gostisha@publicans.com 5/9/2002 4:18 PM
If you have questions about the bills, please call
Bruce Anderson at 800-262-7229 x 1226
SB 275-Shanleieh Government Code
The comptroller is required to collect and make available before the beginning of the session information that details all
economic development activities or projects. Included in the information is to be an analysis of the effectiveness of certain
ad valorem tax exemptions. Effective June 15, 2001.
SB 694-Wentworth Government Code
Provides that a credit card, debit card, charge card, or access device number that is collected by a government body is
confidential. E-mail addresses are also confidential. Effective September 1, 2001.
SB 695-Wentworth Government Code
Amends the Government Code as it relates to consultations between a governmental body and its attorney and authorizes
a governmental body to conduct meetings by telephone conference call, video conference call, or communications over
the Internet. Effective May 7, 2001.
SB 985-Duncan Tax Code § 312
Amends the Tax Code to authorize the governing body of a municipality to enter into an agreement with the owner of a
leasehold interest in real property that is located in a reinvestment zone. It would allow the exemption of a portion of the
value of tangible personal property located on the real property, for a period not to exceed 10 years, on the condition that
the owner of the leasehold make improvements or repairs. Effective June 15, 2001.
SB 986-Duncan Tax Code § 312
Amends the Tax Code to allow certain tax abatement agreements to provide for the recapture of lost ad valorem tax
revenue if a property owner fails to comply with a tax abatement agreement requirement for creating jobs. Effective Jane
13, 2001.
SB 1125-Armbrister Various Codes
Amends various codes that relate to technical and non -substantive changes to statutes involving taxes or fees administered
by the Comptroller of Public Accounts. Effective September 1, 2001.
SB 1167-Madla Health and Safety Code
Amends the Health and Safety Code regarding the operations of certain emergency service districts. Effective September
1, 2001.
SB 1168-Madla Water Code
l Amends the Water Code to authorize counties to have a referendum to increase or decrease flood control taxes or the use
of the funds generated by the taxes. Effective May 22, 2001.
SB 1171-Madla Local Government Code
The Commissioners Court of a county may authorize the collection of a transaction fee, equal to the amount charged by a
vendor, for credit card payments. Effective May 15, 2001.
SB 1226-Lindsay Local Government Code
Creates the Energy Corridor Management District with the same powers granted to municipal management districts,
including the right to levy an ad valorem tax to support its functions. Effective June 16, 2001.
SB 1444-Brown Water and Local Government Code
IAmends the Water Code to provide for additional powers and authority regarding water districts. Provisions regarding the
submission of an appraisal roll to a governing body, effective and rollback tax rates, tax rate, and election to repeal a tax
increase exceeding the rollback tax rate do not apply to a tax levied and collected for payment of the interest on bonds
issued by a district. Effective June 17, 2001.
To receive this report via e-mail rather than U.S. Post, 13
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DELINQUENT TAX CLIENT LIST
CITIES REPRESENTED BY
1
LINEBARGER GOGGAN BLAIR PENA & SAMPSON LLP
1 _ AGUADULCE
— ALAMO
— BLOOMING GROVE
— COPPELL
— ALBA
— BLOSSOM
— CORINTH
— ALIDO
— BOGATA
— CORPUS ammm
_ ALTO
— BONHAM
— CORRIGAN
— ALTON
— BOYD
— CORSICANA
— ALVORD _
— BRACKMTVILIE
— COTULLA
AMHERST
— BRADY
— CRANDALL
— ANNONA
— BRAZORIA
— CRANE
—ANTHONY
— BRE B)ND
— CRANFIL S GAP
— ARANSASPASS
— BRENHAM
— CRAWFORD
— ARCOLA
— BRIDGE CITY
— CROCKETT
— ARLINGTON
— BRIDGEPORT
— CROWLEY
— ARP
— BROWNSVILLE
— CRYSTAL CITY
— ASHERTON
— BROWNWOOD
— CUERO
— ATLANTA.
— BRUCEVILE-EDDY
— CUMBY
— AUSTWELL
— BRYSON
— DAWGERFIELD
— AVERY
— BUDA
_ DALLAS
11 — AVINGER
— BULLARD
— DALWORTIDNGTON GARDENS
— BAH£Y
— BURTON
— DAWSON
_ BALCHSPRINGS
— BYERS
— DECATUR
— BALCONES HEIGHTS
— CADDO MESS
— DEL RIO
— BALLINGER
— CALVERT
— DELL CITY
— BANGS
— CARROLLTON
— DENISON
— BANQUETE
1
— CELESTE
— DENTON
— BARRY
— CENTER
— DEPORT
— BAY CITY
— CHATEAU WOODS
— DESOTO
_ BAYSIDE
— CHICO
— DETROIT
— BEASLEY
— CHILLICOTHE
— DIBOLL
— BEAUMONT
— CIHNA GROVE
— DODD CITY
— BECKVI LE CITY
— CLARKSVIf r E (RED RIVER)
— DOMINO
— BEDFORD
— CLARKSVILLE CITY (GREGG)
— DONNA
— BEEVI LE
— CLINT
— DOUBLE OAK
— BELLEVUE
— CLUTE
— DRISCOLL
_ BELLMEAD
— COCKRELL HILL
— DUNCANVI LE
— BELLS
— COLEMAN
— EARLY
- BELLVILLE
— COLLINSVILLE
— EARTH
— BEVHRLYHIIJS
— COMBES
— EAST MOUNTAIN
— BIG LAKE
— COMMERCE
— EAST TAWAKONI
— BIG SANDY(UPSEUR)
— COMO
— EASTON
_ BISHOP
— CONROE
— ECTOR
— BLANCO
— CONVERSE
— EDCOUCH
— BLANKET
— COOLIDGE
— EDINBURG
— BLOOMBURG
— COOPER
— EDNA
Mey 09, 2002 1 / 4
DELINQUENT TAX CLIENT LIST
CITIES REPRESENTED BY
LINEBARGER GOGGAN BLAIR PENA & SAWSON LLP
- MARLIN
- OMAHA
- RHOME
- MARQUEZ
- ONALASKA
- RICE
- MART
- ORANGE
- RICHARDSON
- MARTINDALE
- ORANGE GROVE
- RICH AND
- MASON
- ORCHARD
- RICHLAND SPRINGS
- MATHIS
- ORE CITY
- RICHMOND
- MCALLEN
- OVERTON
- RIO HONDO
- MCLEAN
- PALACIOS
- RIO VISTA
- MEGARGEL
- PALM VALLEY
- ROBINSON
- MELVIN
- PAIMER
- ROBSTOWN
- MERCEDES
- PAIMVIEW
- ROCKPORT
- MERIDIAN
- PAMPA
- ROCKWALL
- MEXIA
- PANTEGO
- ROCKY MOUND
- MIDLOTHIAN
- PARADISE
- ROMA
- MILFORD
- PARIS
- ROSE CITY
- MONAHANS
- PATTON VILLAGE
- ROSEBUD
- MONTBELVIEU
- PEARLAND
- ROUND ROCK
- MOODY
- PEARSALL
- ROWLETT
- MORGAN
- PECAN GAP
- - ROYSE CITY
- MORGANS POINT
- PECAN Hal
- RUNAWAYBAY
- MOULTON
- PECOS CITY
- RUNGE
- MT ENTERPRISE
- PETROLIA
- RUSK
- MULLIN
- PHARR
- SAN ANGELO
- MUSTANGRIDGE
- PINE FOREST
- SAN ANTONIO
- NAPLES
- PINEBURST
- SAN AUGUSTINE
- NASSAU BAY
- PINELAND
- SAN BENITO
- NATALIA
- PITTSBURG
- SAN3UAN
- NEDERLAND
- POINT
- SAN PBRLITA
- NEEDVE.LE
- PORT ARANSAS
- SAN SABA
- NEW BRAUNFEGS
- PORT ARTHUR
- SANSOM PARK
- NEW LONDON
- PORT ISABEL
- SANTA ANNA
- NEW ORLEANS (LA)
- PORTLAND
- SANTA ROSA
- NEWARK
- POTH
- SAVOY
- NEWTON
- POTTSBORO
- SEABROOK
- NIXON
- PRAIRIE VIEW
- SEAGOVILLE
- NORDBEII
- PRIMERA
- SEALY
- NORMANGEE
- PROGRESO
- SAAVANO PARK
- NORTH RICHLAND IM * c
- PROSPER
- SHENANDOAH
- NOVICE
- QUEENCITY
- SHERMAN
- OAK LEAF
- QUINLAN
- SHINER
- OAK RIDGE
- RAYMONDVILLE
- SINION
- OAKRIDGENORTH
- RED OAK
- SME,EY
- ODEM
- RENO
- SOCORRO
May 09, 2002 3 1 4
— ACTON MUD
— ALAMO COMM COLL DIST
— ANDERSONMILLMUD
— ANGELINA CO FWD
— ANGELINA COLLEGE DIST
— ARANSAS CO MUD # 01
— ARANSAS CO ND # 01
— AUDS CREEK WD
— AUSTIN CO RFD # 03
— BEACHED MUD
— BEAUMONINAV DIST
— BEE CO FPD # 03
— BEEVI I E WATER SUPPLY DIST
— BELLVI LE HD
— BEVIL OARS MUD
— BEXAR CO FLOOD DIST
— BEXAR CO HD (UNIV HLTH SYSTEM)
— BEXAR CO RD & RD DIST
— BEXAR CORD DIST
— BEXAR CO RD DIST # 01
— BEXAR CO RD DIST # 02
— BEXAR CO RD DIST # 03
— BEXAR CO RD DIST # 04
— BEXAR CO WTR DIST # 17
— BI STONE MUNICIPAL WSD
— BLACKJACK RD DIST
— BLANCO -PEDERNALES GWCD
— BLANCO CO EST)
— BLANCO FM DIST
— BLINN IR COLLEGE
— BOLINGMWD
— BONHAM WATER AUTHORITY
— BRAZORIA CO FRESH WD # 01
— BRLSTOLFD
— BROWN CO WED # 01
— BROWNSVILLE I & DD
— BROWNSVI LE NAV DIST
— BRUSHY CHEER MUD
— CAMERON CO DRAIN DIST # 01
— CAMERON CO DRAIN DIST # 03
— CAMERON CO DRAIN DIST # 04
— CAMERON CO DRAINDIST # 05
— CAMERON CO EMER SERVS DIST
— CANEY CREEK MUD
DELINQUENT TAX CLIENT LIST
SPECIAL TAXING DISTRICTS REPRESENTED BY
LINEBARGER GOGGAN BLAIR PENA & SAMPSON LLP
— CENTRAL FPD
— CHAMBERS CO HID (BAYSIDE COMM HOSE)
— CHAMBERS -LIBERTY COUNTIES ND
— CHATEAU WOODS MUD
— CHOCIAW WD
— CISCO JC
— CLAPP RD
— CLAYCOUNTYFD#01
— CLAY COUNTY ED # 02 -
- CLEAR CREEK WD
— CLEAR CREEK WTRSHD DIST
— COASTAL BEND COLL (BEE CO COLL)
— COLEMANED
— COTMESNPR. ED # 07
— COMMERCE WD
— COPPELLMUD
— CORPUS CHRISTI DOWNTOWN MG_MT
— CRANE CO WD
— CUERO HD
— CULBERSON CO HOSP DIST
— CULBERSON GWCD
— CUMMINS CREEK WCID # 01
— DALLAS CO HD (PARKLAND)
— DALLAS COMM COLL DIST
— DALLAS DWNTWN PREMID
— DALLAS DWNTWN STD ID
— DALLAS UPTOWN PREM ID
— DALLAS UPTOWN STD ID
— DEEP ELLUM STD ID
— DEL MAR COLLEGE
— DELTA CO EMG # 01
— DELTA COUNTY MUD
— DELTA LAKE IRRGDIST
— DELTA LAKE ➢1RGDIST (BONDS)
— DELTA LAKE IiRG DIST (FLAT RATE)
— DENTON CO LID # 01
— DEWITT CO MEDICAL DIST
— DUVAL CO CONSV RECLAM DIST
— DUVAL CO ESD # 01
— DUVAL CO WD
— EAST DWNTWNMGMT DIST
— ECLETO CREEK WATERSHED AUTHORITY
— EDWARDS UWD
— EL PASO CO RFPD # I(ESD # 2)
— EL PASO CO WTR AUTHORITY
— EL PASO COMM COLL
— EL PASO COUNTY WED # 01
— EL PASO DWNTWN MGMT DIST
—FTT COFD#09
—WTI.RCOFD#10
— ELM CREEK WTR SHED
— EMERALD BAY MUD
— ENGELMAN ID # 06
— ESCONDIDO WD
—ESD#01
— EVERGREENUWCD
— FAIIWAYBEND IMPROV DIST
— FALLS CO ED # 01
— FALLS CO ED # 02
— FALLS CO ED # 03
— FALLS CO WCID # 01
— FANNIN CO WTRAUTHORITY
— FARMER'S CREEK WD
— FERRIS ED
— FORNEYFD # 06
— FORT BEND CO FWSD # 01
— FORT BEND CO MUD # 26
— FORT BEND CO RFD # 01
— FORT BEND CO RFD # 02
— FORT BEND CO UNLIMITED RDS
— FORTBEND CO WCID# 02 -
- FORTBEND CO WCED # 03
— FORT BEND PARKWAY RD
— FORT CLARK SPRGS MUD
— FORT HANCOCK WCID # 01
— FRED FIRE DIST
— FRIO HD
— WNLflL1.J l:V CMJU # UI
— GONZALES CO ED
— GONZALES HEALTHCARE
— GONZALES WD
— GRAY COUNTY WD
— GRAYSON CO JR COLLEGE
— GREGG CO RURAL FED # 01
— GREGG ESD # 01
- HACIENDA DEL NORTE WD
May 09, 2002 1 / 4
l
DELINQUENT TAX CLIENT LIST
SPECIAL TAXING DISTRICTS REPRESENTED BY
LINEBARGER GOGGAN BLAIR PENA & SAWSON LLP
- MILES CO SPEC RD & BRIDGE
- NUECES CO FED # 05
- REAGAN CO WSD
- MILES CO WD # 01
- NUECES CO HOSE DIST
- REAL ESTATE STATE TAX 79 & 80 (LA)
- MONTGOMERY CO DO # 06
- NUECES CO WCID # 4 (PA)
- RED CREEK WUD
- MONTGOMERY CO ESD # 01
- NUECES CO WICD # 5 (BANQ)
- RED OAR PD
- MONTGOMERY CO ESD # 02
- OAKIM I DEVELOPMENTRD DIST
- RID RIVER CO WD
- MONTGOMERY CO ESD # 03
- OAR RIDGE MUD
- REEVES CO HD
- MONTGOMERY CO ESD # 04
- ORANGE CO DRAINAGE DIST
- REFUGIO CO DRAIN DIST # 01
- MONTGOMERY CO ESD #05
- ORANGE CO EMG DIST #01
- REFUGIO CO MEMORIAL HD
- MONTGOMERY CO ESD # 06
- ORANGE CO EMGDIST # 02
- REFUGIO CO WCID # 02
- MONTGOMERY CO ESD # 07
- ORANGE CO FD # 03
- ROBERT'SON CO RFD
- MONTGOMERY CO ESD # 08
- ORANGE CO FD # 04
- RUSK CO FPD # 0l
- MONTGOMERY CO ESD # 09
- ORANGE CO NAV & PORT DIST
- SABINE CO HD
- MONTGOMERY CO ESD # 10
- ORANGE 00 WCID # Ol
- SABINE PASSPORT AUTH
- MONTGOMERY CO ESD # 11
- ORANGE CO WCID # 03
- SAN ANTONIO MUD # 01
- MONTGOMERY CO ESD #12
- PALACIOS SEAWALL COM
- SAN ANTONIO RIVERAUTH
- MONTGOMERY CO ESD # 14
- PARES IR COLL DIST
- SAN AUGUSTINE CO HOSP DIST
- MONTGOMERY CO FD # 01
- PARK CENTRAL MUD
- SANFELIPE FD
- MONTGOMERY CO FD # 12
- PARKER CO HD
- SAN PATRICIO CO DRAIN DIST
- MONTGOMERY CO FD # 14
- PARKER CO UD
- SAN PATRICE) CO NAV
-MONTGOMERY 00 HD
- PASEO DE LA,RESACA MUD #01
- SANTA CRUZ IRRIGDEST#15
- MONTGOMERY CO MUD # 08
- PASEO DE LA RESACA MUD # 02
- SANTA MARIA IRRGDIST # 04
- MONTGOMERY CO MUD # 09
- PASEO DE LARESACA MUD # 03
- SANTA RTTA UWCD
- MONTGOMERY CO MUD # 42
- PAWNEE FED
- SCURRY- ROSSER FD # 05
- MONTGOMERY CO UD # 03
- PETTUS MUD
- SEALY FD
- MONTGOMERY CO UD # 04
- PINE CREEK WD
- SEES LAGOS UD
- MORRIS CO HD
- PLUM CREEK CONS DIST
- SMITH CO REED # 01
- MOULTON COMM MED CLINIC
- POLK COUNTY FWD # 02
- SMITH CO WD # 01
- N HARRiS-MONTGOMEKY COMM COLL DIST
- PORT MANSFIELD UD
- SOUTH MONTGOMERY CO RD DIST # 01
- NAVARRO COLLEGE
- PORT OF BAY CITY AUTH
- SOUTH TEXAS WTR AUTH
-NEW CANEY MUD
- PORT OFBEAUMONT AUTH
- SOUTHTX COMMCOLL(STARR)
-NIXON HOSE DIST
- PORT OF CORPUS CHRISTI
- SOUTH TX COMM COLL(HIDALGO)
- NORTHBEE CO FPD
- PORT OF HARLINGEN
- SOUTHERN MONTGOMERY CO MUD
- NORTHEAST TX COMM COLLDIST(CAW)
- PORT OF HOUSTON AUTH
- SOUTHWESTTXIRCOLLDIST
- NORTElEA.STTX COMM COLLDIST
- PORT OFPORT ARTHUR AUTH
- SPRINGTOWN FIRE DIST #01
WORM)
- PORTER MUD
- SPURGE@ FD # 01
- NORTHEAST TX COMM COLL DIST (TTTUS)
- PRESIDENTS PARKRD DIST
- TAFT HD
- NORTHWEST FOREST MUD
- PRESTONWOOD STD ID
- TARRANT CO ESD
- NUECES CO DRAIN DIST # 2(U2T)
- QUAIL CREEK MUD
- TARRANT CO FWSD # 01
- NUECES CO DRAINDIST#3(BLSHOP)
- RE THOMASONHOSP DIST
-TARRANT CO HD
- NUECES CO FED # 01
- RAINS COUNTY FD
- TARRANT CO 3R COLL
- NUECES CO FPD # 02
- RAYBURN COUNTRY MUD
- TARRANT CO REG WTR DIST
- NUECES CO FPD # 03
- REAGAN CO HD
- TARRANT CO RFD
- NUECES CO FPD # 04
- REAGAN CORD DIST
- TERRELL RURALFIRE DIST # 03
1 M&Y 09, 2002 3 / 4
DELINQUENT TAX CLIENT LIST
INDEPENDENT SCHOOL DISTRICTS REPRESENTED BY
LINEBARGER GOGGAN BLAIR PENA & SAMPSON LLP
— AGUADULCELSD
— ALAMO HEIGHTS LSD
— BREMOND ISD
— CUNT ISO
— ALBA-GOLDEN LSD
— BRENHAM LSD
— COAHOMAISD
— ALEDO LSD
— BRIDGE CITY LSD
— COLEMANISD
— ALTOISD
— BRIDGEPORTISD
— COLLINSVILLE ISD
— ALVARADO LSD
— BROADDUS LSD
— COT MESNFR ISD
— ALVORD ISD
— BROCK ISD
— COLUMBIA-BRAZORIAISD
— AMHERST ISD
— BROOKELAND ISD
— COMMUNITYISD
— ANTHONY ISD
— BROOKESMITH LSD
— CONNALLY ISD
— APPLE SPRINGS LSD
— BROOKS CO ISD
— CONROE LSD
—ARANSAS CO LSD
—BROWNSBORG ISD
—COOLIDGE ISD
1— ARANSAS PASS ISD
— BROWNSVILL.EISD
— COOPERISD
— ARP LSD
— BROWNWOOD LSD
— COPPELL LSD
— ATLANTAISD
— BRUCEVBLLE-EDDY LSD
— CORPUS CHRISTI LSD
— AUSTWELL-TIVOLIISD
— BRYSON LSD
— CORRIGAN-CAMDENLSD
— AVERYISD
— BUENA VISTA ISD
— CORSICANA LSD
— AVINGER ISD
— BULLARD ISD
— CRANDALL LSD
» AXTELLISD
— BUNA LSD
— CRANE LSD
— BANGS ISD
— BURXEVILLB ISD
— CRANFILLS GAP LSD
— BANQUETBISD
— BURTON LSD
— CRAWFORD ISD
j — BAY CITY LSD -
— BYERS LSD
— CROCKETT ISD
— BEAUMONI ISD
— CADDO MILLS ISD
— CROWLEY ISD
» BECKVILLE ISD
— CALALLEN ISD
— CRYSTAL CITY LSD
— BEEVILLE ISD
— CALVERT ISD
— CUERO LSD
— BELLS ISD
— CANUTILIA ISD
— CULBERSON CO - ALLAMOORE ISD
— BELVILLE LSD
— CARLISL.E ISD
— CUMBY ISD
— BENBOLT-PALITO BLANCO ISD
— CAYUGA LSD
— CYPRESS -FAIRBANKS LSD
— BENAVIDES LSD
— CENTER ISD
— DAINGERFB7A-LONE STAR ISD
» BIG SANDY ISD (POLK)
— CENTERVI LLE ISD (TRU-TIM
— DALLAS LSD
» BIG SANDY ISO(UPSHUR)
— CENTRAL ISO
— DAWSON ISD
— BLRDVILLE ISD
— CHAMBERS CO SCHOOLEQUAL
— DECATUR LSD
— BISHOP CISD
— CHAPEL BILL ISD
— DEER PARK ISD
— BLANCO ISD
— CHARLOTTE ISD
— DELL CITY LSD
— BLAND ISD
— CHEROKEE ISD
— DENISON ISD
» BLANKET ISD
— CHESTERISD
— DETROIT LSD
» BLOOMBURG ISD
— CHICO ISD
— DEWEYVILLE ISD
— BLOOMING GROVE ISD
— CHMUCOTHE LSD
— DLBOLL ISD
l—BLOOMINGTONISD
—CHILTON ISD
—DIME BOX LSD
f — BLUFF DALE ISD
— CHINA SPRING ISD
— DODD CITY LSD
— HOLING LSD
— CHLSUM ISD
— DONNA LSD
BOYDISD
— CHRISTOVAL LSD
— DRISCOLL ISD
I»
— BRACKETT ISD
— CISCO ISD
— DUNCANVILLE ISD
— BRADY ISD
— CLARKSVILLE LSD
— DUVAL CO VOCATIONAL DIST
— BRAZOS ISD
— CLEVELAND ISD
— EARLY ISD
lMay 09, 2002 I / 4
I
DELINQUENT TAX CLIENT LIST
INDEPENDENT SCHOOL DISTRICTS REPRESENTED BY
LINEBARGER GOGGAN BLAIR PENA & SAIVIPSON LLP
- LOS FRIENDS CISD
- NEDERLAND LSD
-PORT NECHES - GROVES ISD
- LOUISE LSD
- NEIDVE ELSD
- POTHISD
- LOVEJOY LSD
- NEW BRAUNFELS LSD
- PRAIRBLEAISD
- LOVELADY LSD
- NEW DIANA ISD
- PRAEULAND ISD
- LUFKIN LSD
- NEW SUMMERKELLD ISD
- PREMONT ISD
- LULING ED
- NIXON -SMILEY CISD
- PRIDDY ISD
- LYFORD CISD
- NORDBEIM LSD
- PROGRESO LSD
- MABANKISD
- NORMANGEE LSD
- PROSPERED
- MADISONVILLE CISD
- NORTHEAST ISD
- QUEEN CITY ISD
-MALAKOFF LSD
-NORTH FOREST ISD
-QUINLAN LSD
- MARIETTA CISD
- NORTHHOPKINS LSD
- RAINS LSD
- MARLIN LSD
- NORTH LAMAR LSD
- R nMmaz COMMON SCH DIST
- MART LSD
- NORTH ZULCHLSD
- RAYMONDVILLE ISD
- MASON ISO
- NORTHSIDE ISD (BEKAR)
- REAGAN CO ISD
- MATHIS ISD
- NORTHWEST ED
- RED OAK ISO
- MAY ISD
- NOVICE ISD
- REFUGIO ISD
- MCALLEN LSD
- NURSERY ISD
- RICARDO ISD
- MCFADDEN ISD
ODEM-EDROYISD
- RICE ISD
- MCEAN ISD
- ONALASKAISD
- RICHLAND SPRINGS ISD
- MCLEOD ISD -
- ORANGE GROVE LSD
- RLESEL LSD
- MCMULLEN CO ISD
- ORANGEETEL.D LSD
- RIO GRANDE CITY CISD
- MEDINA ISD
- ORE CITY LSD
- RIO HONDO ISD
- MEGARGEL LSD
- OVERTONISD
- RIVERCREST LSD(TALCO-BOGATA CISD)
- MELISSA ISD
- PALACIOS LSD
- ROBINSON ISD
- MERCEDES ISD
- PAMPA ISD
- ROBSTOWN ISD
- MERIDIAN ISD
- PANTHER CREEK CISD
- ROCHELLE LSD
- MEYERSVILLE ISD
- PARADISE LSD -
- ROCKWALL LSD
- MIDLOTHIANISD
- PARIS ISD
- ROMAED
- MIDWAY ISD
- PAWNER LSD
- ROSEBUD -LOTTED
- MILDRED ISD
- PEARSALL ISD
- ROUND ROCK ISD
- MILFORD ISD
- PEASTERISD
- ROXTONISD
- MILLER GROVE ISD
-PECOS-BARSTOW-TOYAHISD
-ROYSE CITY ISD
- ME.LSAP ISD
- PERRIN- WETIT CISD
- RUNGE ISD
-MONAHANS-WICKETT-PYOTE ISD
-PETROLIA LSD
-RUSK LSD
- MONTE ALTO ISD
- PETTUS ISD
- SABINE ISD
- MONIGOMERY LSD
- PEWITTISD
- SALTILLO LSD
- MORGAN ISD
- PHARR-SAN]UAN-AIAMO ISD
- SAM RAYBURN LSD
- MORGAN MILLED
- PITTSBURG LSD
- SAN ANGELO ISD
- MOULTON ISD
- PLEASANTON ISD
- SAN ANTONIO LSD
- MOUNT VERNON ED
- POINT ISABEL LSD
- SAN AUGUSTINE ED
- MI ENTERPRISE ED
- POOLVILLE LSD
- SAN BENITO CISD
- NWLLM ISD
- PORT ARANSAS ISD
- SAN DIEGO ISD
- MUMFORD ISD
- PORT ARTHUR LSD
- SAN ELIZARIO LSD
1 May 09, 2002
3ia
DELINQUENT TAX CLIENT LIST
COUNTIES REPRESENTED BY
LINEBARGER GOGGAN BLAIR PENA & SAMPSON LLP
` - ANGEUNA COUNTY
J - ARANSAS COUNTY
- JEFFERSON COUNTY
- SABINE COUNTY
- ARCHER COUNTY
- RM HOGG COUNTY
- SAN AUGUSTINE COUNTY
- AUSTIN COUNTY
- KARNES COUNTY
- SAN PATKICIO COUNTY
- BEE COUNTY
1
- KAUFMAN COUNTY
- SAN SABA COUNTY
- BEXARCOUNTY
- KENEDY COUNTY
- SHELBY COUNTY
- BLANCO COUNTY
- RING COUNTY
- SMITH COUNTY
- BROOKS COUNTY
- KINNEY COUNTY
- STARR COUNTY
- BROWN COUNTY
- KLEBERG COUNTY
- TARRANT COUNTY
-CAIDV=COUNTY
-LABATT COUNTY
-TOM GREEN COUNTY
- CAMERON COUNTY
- LAMAR COUNTY
- TRINITY COUNTY
- CAMP COUNTY
- LAMB COUNTY
- TYLER COUNTY
- CHAMBERS COUNTY
- LAMPASAS COUNTY
- UPSHUR COUNTY
! - CLAYCOUNTY
- IAVACACOUNTY
- VALVERDE COUNTY
- COLEMAN COUNTY
- LEE COUNTY
- VICTORIACOUNTY
- CRANE COUNTY
- - LIMESTONE COUNTY
- WALLER COUNTY
- CULBERSON COUNTY
- LIVE OAK COUNTY
- WARD COUNTY
- DALIAS COUNTY
- LLANO COUNTY
- WASHINGTON COUNTY
- DELTA COUNTY
- LAVING COUNTY
- WHARTON COUNTY
- DEWTTT COUNTY
- MADISON COUNTY
- WI.LACY COUNTY
- DIMMTT COUNTY
- MARION COUNTY
- WILSON COUNTY
- DUVAL COUNTY
- MASON COUNTY
- WINKLER COUNTY
- ECTOR COUNTY
- MATAGORDA COUNTY
- WISE COUNTY
- EL PASO COUNTY
- MCCULLOCH COUNTY
- WOOD COUNTY
- ELLL4 COUNTY
- MCLENNAN COUNTY
- ZAPATA COUNTY
- FALLS COUNTY
- MCMULLEN COUNTY
- ZAVALA COUNTY
- FANNIN COUNTY
- MILLS COUNTY
- FORT BEND COUNTY
- MONTAGUE COUNTY
- FRIO COUNTY
- MONTGOMERY COUNTY
- GONZALES COUNTY
- MORRIS COUNTY
- GRAY COUNTY
- NAVARRO COUNTY
- GRAYSON COUNTY
- NUECES COUNTY
- GREGG COUNTY
- ORANGE COUNTY
- HAMI.TON COUNTY
- PARKER COUNTY
- HARRIS COUNTY
- PECOS COUNTY
.
- HIDALGO COUNTY
- POLK COUNTY
- HOOD COUNTY
- RAINS COUNTY
- HOPKINS COUNTY
- REAGAN COUNTY
- HUDSPETH COUNTY
- RED RIVER COUNTY
- HUNT COUNTY
- REEVES COUNTY
j - TACKCOUNTY
- REFUGIO COUNTY
1 - JACKSON COUNTY
- ROBERTSON COUNTY
- JASPER COUNTY
- ROCKWALL COUNTY
- JEFF DAVIS COUNTY
- RUSK COUNTY
1 May 09, 2002 I / I