Title
Consider and take action on a resolution authorizing a three-year contract for the collection of delinquent accounts receivable with Linebarger Goggan Blair & Sampson, LLP (Assistant City Manager)
Background:
Approval of this item, will authorize a three-year contract between the City and Linebarger Goggan Blair & Sampson, LLP, for the collection of delinquent court fees and fines (warrants), water utility accounts and false alarm penalties that are more than sixty (60) days past due. The firm has been under contract with the City for these services since 2011 and staff has been satisfied with their performance.
The firm's fee for collecting outstanding court warrants is thirty (30) percent on warrants dated after June 18, 2003. There is no fee associated with collection of warrants dated on or prior to June 18, 2003. In 2011, Council approved Ordinance 2011-13 to add an additional charge of thirty (30) percent to all municipal court fines and fees dated after June 18, 2003. This is allowable per Article 103.0031 of the Texas Code of Criminal Procedures which states that a municipality that has entered into a contract with a vendor/firm for collection services may authorize an additional fee in the amount of thirty (30) percent on municipal court fines and fees originating after June 18, 2003 that are more than sixty (60) days past due. This additional charge for the collection cost provides the funds to pay the firm.
The City's process for warrants is that once a warrant is issued on an unpaid citation, the warrant officer attempts to serve the warrant within 30 miles of League City. After sixty (60) days past due, the warrant is turned over to Linebarger and the thirty (30) percent collection charge is added to the fines and court cost. Linebarger actively pursues the outstanding warrants, with phone calls, determining new addresses, and working the annual warrant round up. This saves Municipal Court staff time and postage costs.
The fee for delinquent utility bills and false alarm fees is thirty (30) percent of monies collected.
Since February 28, 2011, Linebarger has collected $2,287,212 in outstanding court fines and fees, $65,865 in delinquent utility bills and $14,930 in delinquent false alarm fees. The recommendation is to approve the contract through January 2020.
CONTRACT ORIGINATION: Linebarger Goggan Blair and Sampson, approved by City Attorney
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Contract
4. Citation flow chart
FUNDING
{ X } Funds are available from Accounts #1300000-53050, City Attorney/Services and Charges/Professional Fees and 10207100-53050 Utility Billing/Services and Charges/Professional Fees