HomeMy WebLinkAboutItem 02 - Overdue Municipal Court Fines and FeesITEM # 2 -
MEMO
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: SEPTEMBER 7, 2004
SUBJECT: RENEWAL OF CONTRACT FOR COLLECTION OF OVERDUE
MUNICIPAL COURT FINES AND FEES
RECOMMENDATION:
City Council to consider approving a resolution authorizing an extension of the contract for
court fees and fines collection services with Linebarger, Goggan, Blair and Sampson, LLP.
BACKGROUND:
In February of 2002 the City Council authorized the City Manager to execute a contract
with the law firm of Linebarger, Goggan, Blair and Sampson, LLP to collect delinquent
municipal court fines and fees. The initial term of the contract was for two years with the
contract continued on a month-to-month basis unless canceled or renewed.
The City has been very pleased with the work of the firm. In the 2 Y2 year period since the
contract inception, the law firm has collected 978 cases resulting in cash payments totaling
$261,934.03. There were also 219 cases that resulted in applied or forfeited bonds,
totaling $57,189.51. The resulting total of cash or equivalents received by the City is
$319,123.54. Funds received by the law firm for the same period total $40,964.19. A brief
summary of the collection efforts on our behalf is attached.
Staff recommends approval of authorization to renew the contract for an additional two
year period.
WAG/cjc
H:AGMMUIN ES&FEES9-7-04
September 1, 2004 (2:23PM)
LNEBARGER GOGGAN BLAIR & SAMPSON, LLP
ATTORNEYS AT LAW
1949 SOUTH I.H. 35 (78741)
P. O. BOX 17428
AUSTIN, TEXAS (78760)
512/447-6675
FAX 512/447-3923
August 25, 2004
Mr. Bill Gaither
Director of Administrative Services
City of Grapevine
200 South Main Street
Grapevine, Texas 76051
Re: Collection Services renewal
Dear Mr. Gaither,
The law firm was hired by the City Council on April 1, 2002 for a two-year term with the option
of the City to extend the initial term of the contract for an additional two-year period. The
contract term expired in April 1, 2004 and we are currently on a month-to-month basis. We
would like for the Council to consider renewing our current contract for another two-year term.
As of 07/31/04, the Municipal Court has placed with the law firm 7,626 citations for $2,366,459.
The law firm has collected 978 cases for $261,934.03 (cash payment cases) with a collection rate
of 11.07%. There was 219 cases that had applied and forfeit bonds totaling $57,189.51 (the firm
does not receive a fee on these cases). The total cash and equivalent collected is $319,123.54 at a
collection rate of 13.49%. The firm helped resolved 423 cases (non-cash credit) for $100,688.92.
The non-cash credit cases are time served / community services cases and the law firm does not
receive a fee on these cases. The total cases collected include cash payments, bonds and non-
cash credit for $419,812.46 at a collection rate of 17.74%.
Of those 7,626 citations, 3,595 were 3-6 years delinquent and 2,866 were 1-3 years delinquent.
Typically in the collection industry, the older the debt is - the harder it is to collect. The current
collection percentage is a total of all backlog cases (1+ years and older) and current cases (1 year
or less). As always, our goal is to maximize the collections of the Court's outstanding cases
I believe that we have started a good collections program with the Municipal Court and look
forward to continuing our services to the City of Grapevine.
If you have any questions or concerns regarding this matter, please let me know.
Sincerely,
Dan Romo
Account Representative
m
v_
(D
(D
co
R
m
U
(D
(D
(D
O Q
0)
LO
d
Vim'
G
N
G w to
E
R
r
o
Il -
J
=a C? o
0v
G.
�
ado
(oo
d
N
UL6
VJ
60 -VI
`�
L
N
V
M
N
4
'w
c
v
0
N
N
N
m
v_
(D
(D
co
R
m
U
o - o
(D N
r V•
c7 0
(D
0
z
0
m
S
Q
v
0
w
J
CL
CL
O
rn
0
N
M
llq
LO
C*
C
Ln
"It
0
z
0
m
S
Q
U
LU
LL
w
0
U-
O
0
V
R
i
O Q
y
V Q
G
N
G w to
E
3
a<
Q •�
J
=a C? o
0v
zU
U
o - o
(D N
r V•
c7 0
(D
0
z
0
m
S
Q
v
0
w
J
CL
CL
O
rn
0
N
M
llq
LO
C*
C
Ln
"It
0
z
0
m
S
Q
U
LU
LL
w
0
U-
O
0
V
R
I- r CID
pl.: � (q
0) T U)
tFk
RESOLUTION NO.
r-, -, v L--
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, APPROVING AN EXTENSTION OF
THE CONTRACT FOR COURT FINES AND FEES
COLLECTION SERVICES WITH LINEBARGER, GROGGAN,
BLAIR & SAMPSON, L.L.P. AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine City Council approved a contract for Court
Fees and Fines Collection Services with the firm Linebarger, Groggan, Blair &
Sampson, L.L.P. (the "Contract") on February 5, 2002; and
WHEREAS, the Contract provides for a two year initial term and a City option
to extend the Contract for two additional two year terms; and
WHEREAS, the City wishes to extend the Contract by one additional two-
year term.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the preamble are true and correct as
if copied herein in their entirety.
Section 2. That the City of Grapevine hereby approves the extension of
the Contract for one additional two year term, and authorizes the City Manager, or
his designee, to execute any documents necessary to execute such extension.
Section 3. That this resolution shall take effect from and after the date of
its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 7th day of September, 2004.
FINEROIN"
ATTEST:
F-111=110191111:1 M WWT; mil