2017-02-13 Regular Meeting of the La Porte City Council Minutes

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6. CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests an item be removed and considered separately.) (a) Consider approval or other action regarding minutes of meeting held on January 23. 2017 — P. Fogarty (b) Consider approval or other action regarding a Memorandum of Agreement with Shady River Homeowners Association of a community cooperation project providing for playground replacement equipment for a total City contribution of$5,000.00 —T. Leach (c) Consider approval or other action regarding a Resolution authorizing the City of La Porte to partner with Texas Department of Transportation to commence improvements at the La Porte Municipal Airport—T. Leach (d) Consider approval or other action regarding a Resolution authorizing the resale of tax delinquent properties located at Lots 1-3, Block 17 Sylvan Beach — S. Wolny (e) Consider approval or other action regarding the 2016 City of La Porte Police Department Racial Profiling Report— K. Adcox Regarding Item D, Councilmember Zemanek questioned the process for moving forward with the resale of tax delinquent properties, that sometimes they go to an auction and sometimes they go through a situation like this today. City Manager Corby Alexander informed him that when properties initially go delinquent, the initial process is the delinquent tax attorney files suit to collect payment, goes to court, and wins a judgment. After that judgment is secured, the properties are then auctioned off at a monthly public auction conducted by the Constable's Office. The properties the City is dealing with now didn't sell at the initial auction; so, he believes the City holds on to them for six months and makes them available, provided someone comes in with either the total taxes and fees or the adjudged amount, whichever is less. That's all prescribed by law. Councilmember Zemanek stated he is looking at the Foreclosure Summary Statement, and it says that the judgement is against Creed Corporation. But in November 1, 1995, title of that property changed to La Porte First Corporation. Who is that? Finance Director Michael Dolby responded the delinquent tax attorney will have to answer that question. Councilmember Zemanek asked why Creed Corporation is listed as who the judgment is against in this case when there is another title holder in between the time of 1987 and the time of the sale in 2015. Mr. Dolby stated they would have to talk to the delinquent tax attorney to get answers to the title questions. He stated we do know, however, that it was struck-off after the auction, and it did revert back to us as the trustee and now someone has come in and put a bid on the property. All of the proper title transfers have occurred in order for the sale to go forward. Councilmember Zemanek stated that the title transferred from La Porte First to the City of La Porte and not Creed Corporation to the City of La Porte. City Manager Alexander stated that typically when the tax attorney files suit, they are required to notify anyone who has an ownership interest in the property before they go to court. He further stated if the documents Council has received in the packet are unclear, the summary form can be easily revised since it is a City-produced form. Councilmember Zemanek stated the bidder is Knox Askins, Trustee; and the person who prepared the resolution is Clark Askins. Is that a conflict of interest? Should someone else have prepared the resolution? Assistant City Attorney Clark Askins stated there is no conflict; Knox Askins was acting as a trustee for a buyer and was not the buyer, not acting in the role of city attorney. Councilmember Zemanek asked City Manager Alexander what his thoughts are on this. City Manager Alexander stated there is nothing different than if it was Joe Citizen. If a councilmember has any misgivings, though, we can run it by a third party attorney. Councilmember Zemanek stated it just does not pass the sniff test. He also asked how someone finds out about these properties. Shelley Wolny stated there is a link to the properties listed, and it will be sent to him. Page 2 of 4 Feb. 13, 2017, Council Meeting Minutes