Title
A resolution approving an Agreement for Professional Collection Services for Unpaid Closed Utility Accounts with Linebarger Goggan Blair & Sampson, LLP; providing certain findings; authorizing the City Manager to finalize, execute, and administer the Agreement on behalf of the City of Mesquite, Texas; and providing an effective date.
Body
As was briefed at the May 4, 2026, City Council Pre-meeting, the City currently has 1,550 closed and unpaid utility accounts with a combined balance of $786,393.49, and City staff does not have adequate resources to pursue collection from these past accountholders, many of whom no longer live in Mesquite.
Linebarger Goggan Blair & Sampson, LLP ("Linebarger") currently collects delinquent ad valorem property taxes for the City under a separate engagement, and the firm possesses the value-added infrastructure, technology and resources required for such collection efforts, such as advanced telephone collection software to manage collection calls, dedicated call center with toll-free number staffed by professional, bilingual collectors knowledgeable of collection laws in all 50 states, nationwide locator services to find past accountholders, and access to account information through modern web-based applications to name a few.
Linebarger would bear all operational costs of collection, and fees are contingency based. Linebarger would collect a fee equal to 30-percent of all monies actually collected on all referred closed utility accounts that are within the statute of limitation guidelines.
The proposed resolution approves an Agreement for Professional Collection Services for Unpaid Closed Utility Accounts with Linebarger and authorizes the City Manager to finalize and execute the Agreement. State law requires written notice whenever a political subdivision enters into a contingent fee contract for legal services, and such notice has been provided and posted in accordance with State law.
Recommended/Desired Action
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