Resolution 2004-16
RESOLUTION 2004-16 (R)
A RESOLUTION IMPOSING ADDITIONAL PENALTY FOR 2003 AND
SUBSEQUENT YEARS DELINQUENT TAXES AND AUTHORIZING AN
AMENDMENT TO THE EXISTING SERVICES CONTRACT WITH
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP, ATTORNEYS AT
LAW, IN ASSOCIATION WITH NICHOLS JACKSON DILLARD
HAGER & SMITH, ATTORNEYS AND COUNSELORS AT LAW
WHEREAS, the City of Wylie contracts with LINEBARGER GOGGAN BLAIR & SAMPSON,
LLP (formerly known as Linebarger Heard Goggan Blair Graham Peiia & Sampson, LLP) Attorneys
at Law, in association with NICHOLS JACKSON DILLARD HAGER & SMITH, Attorneys and
Counselors at Law ("the private law firm") to enforce the collection of all delinquent taxes, penalty
and interest by virtue of a written contract dated June 26, 2001 ("the Contract"); and
WHEREAS, the Texas Property Tax Code Sections 33.07 and 33.08 were amended by the Seventy
Seventh Legislature by Act of May 17, 2001; and
WHEREAS, under said Sections 33.07 and 33.08, the governing body of the City of Wylie is
empowered to authorize the addition of a collection penalty in an amount that does not exceed the
amount of the compensation specified in the contract with the private law firm; .
WHEREAS, the source of the funds for private counsel's compensation is the additional penalty paid
by the delinquent taxpayer, rather than the public treasury; and
WHEREAS, the City of Wylie desires to amend the existing contract with the private law firm as per
the attached Amendment NO.1 to the Contract.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of the City of
Wylie that the attached Amendment NO.1 to Contract between the the City of Wylie and the private
law firm is hereby PASSED and APPROVED on this day.
IT IS FURTHER RESOLVED AND ORDERED that taxes for the year 2003 and taxes for all
subsequent years that become delinquent on or after February 1 but not later than May 1, that remain
delinquent on July 1 of the year in which they become delinquent, incur an additional penalty in the
amount of twenty percent (20%) of taxes, penalty and interest due, pursuant to Texas Property Tax
Code Section 6.30 and 33.07, as amended.
IT IS FURTHER RESOLVED AND ORDERED that the taxes for the year 2003 and taxes for all
subsequent years that remain delinquent on or after June 1 under Texas Property Tax Code Sections
26.07(f), 26.15(e), 31.03, 31.031, 31.032 or 31.04 incur an additional penalty in the amount of
twenty percent (20%) of taxes, penalty and interest due, pursuant to Texas Property Tax Code
Section 6.30 and Section 33.08, as amended.
Resolution #2004-16 (R)
Delinquent Tax Collection Fee Amendment
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STATE OF TEXAS §
COUNTY OF COLLIN §
AMENDMENT NO. 1
TO THE CONTRACT BETWEEN
CITY OF WYLIE AND LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
IN ASSOCIATION WITH
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P.
WHEREAS, on June 26, 2001, City of Wylie hereinafter ("CITY") approved a Contract with the law
firm of Linebarger Heard Goggan Blair Graham Pena & Sampson, LLP (now known as Linebarger Goggan
Blair & Sampson, LLP) in association with Nichols, Jackson, Dillard, Hager & Smith, L.L.P. (hereinafter
"FIRM"), under which Contract a fifteen (15%) percent commission on the taxes, penalty and interest
collected is provided as compensation for the FIRM; and
WHEREAS, the Texas State Legislature has found and declared, by its enactment of TEX. TAX
CODE § 6.30(c), that a twenty (20%) commission on the taxes, penalty and interest collected is a reasonable
fee for delinquent tax collection services of a private attorney; and
WHEREAS, TEX. TAX CODE 33.07 and 33.08 were amended by the Seventy Seventh
Legislature, by Act of May 17, 2001, to provide that certain t~es, in order to defray the costs of collection,
may incur an additional penalty equal to the compensation specified in the contract with private counsel; and
WHEREAS, the source of the funds for private counsel's compensation is the additional penalty
paid by the delinquent taxpayer, rather than the public treasury;
NOW THEREFORE, for and in consideration of the recitals shown above, of the FIRM' S increased
costs of doing business, and of enhanced services by the FIRM that will result from the devotion of
additional technological and human resources toward collection of delinquent t~es, (as detailed in exhibit
A) the Contract, by execution of this Amendment No. 1, is amended hereby as set forth below.
I.
THE AMENDMENT
The following italicized language is hereby substituted for Section VI of the Contract:
CTTYagrees to pay to FIRMas compensation for services required herein the following amounts:
(a) fifteen (1 S%) of
the amount collected of
all 2002 and prior year delinquent taxes, penalty
and interest that are subject to the terms of this contract, actually collected and paid to
the collector of taxes during the term of this contract, as and when collected; and
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(b) twenty percent (20%) of the amount collected of all 2003 and subsequent year delinquent
taxes, penalty and interest that are subject to the terms of
this contract, actually collected
and paid to the collector of taxes during the term of this contract, as and when collected.
All compensation above provided
for shall become the property of
the FIRMat the time payment of
taxes, penalty and interest is made to the collector. The collector shall pay over said funds monthly by
check.
II.
EFFECT OF THE AMENDMENT
By execution of this Amendment No. 1, the Contract is amended. No other sections,
provisions, clauses or conditions of the Contract are waived or changed hereby, and they shall all
remain in full force and effect throughout the term of the Contract and any duly authorized
extensions.
IN WITNESS WHEREOF, by their signatures below, the duly authorized representatives of
City of Wylie and of Linebarger Goggan Blair & Sampson, LLP in association with Nichols,
Jackson, Dillard, Hager & Smith, L.L.P. do hereby agree and append this Amendment No. 1 to the
Contract dated June 26, 2001.
EXECUTED THIS the 8th day of June, 2004.
LINEBARGER GOGGAN
CITY OF WYLIE BLAIR & SAMPSON, LLP
By: By:
John Mondy Partner
Mayor
NICHOLS, JACKSON, DILLARD
HAGER & SMITH, L.L.P.
By:
Partner
Dated:
ATTEST
By:
Carole Ehrlich, City Secretary
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This resolution shall take effect immediately from and after its passage in accordance with the
provisions of the law.
PASSED AND APPROVED this 8th day of June, 2004.
ATTEr
442~~.
Carole Ehrlich,
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Resolution #2004-16 (R)
Delinquent Tax Collection Fee Amendment
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