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HomeMy WebLinkAboutO-1996-2091 . ORDINANCE NO. 96-2091 . AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT FOR COLLECTION OF DELINQUENT TAXES BY AND BETWEEN THE CITY OF LA PORTE AND DEXTER D. JOYNER; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 12th day of February, 1996. A~~ Sue Lenes City Secretary Al'~: ~~ Knox W. Askins City Attorney d. CITY OF lA PORTE . BY ?JJ(i", ./II/t1~.I.'( , ( Norman L. Malone, Mayor e e THE STATE OF TEXAS fi fi COUNTY OF HARRIS fi CONTRACT FOR COLLECTION OF DELINQUENT TAXES This contract is made and entered into by and between the City of La Porte, Texas, acting herein by and through its governing body, hereinafter styled "City" and Dexter D. Joyner, duly licensed by the Supreme Court of Texas, as an Attorney at Law, hereinafter styled "Attorney". WITNESSETH: I. City hereby agrees to employ and does hereby employ Attorney to enforce by suit or other appropriate legal remedies, the collection of all delinquent taxes, penalty and interest owing to City. Current year taxes of all taxpayers falling delinquent within the period of this contract shall become subject to its terms on the first day of July of each year, unless such delinquency date is extended by state law. II. City performs the tax billing and collecting process for the La Porte Independent School District, hereinafter styled "District". Attorney represents said District as its Delinquent Tax Attorney. III. Attorney hereby acknowledges that the processing of the delinquent tax accounts is a major time consuming task and agrees to reimburse to City expenses for a tax collection data processing software system and miscellaneous hardware for the processing of all Tax Accounts, as outlined in Section IX, with the following limitations: Software system to be limited to a one time charge of $20,000 for license fees; a one time fee not to exceed $6,120 for training costs; a one time fee not to exceed $3,400 for data conversion; and $5,000 annually for software maintenance fees. Miscellaneous hardware shall be limited to a one time charge not to exceed $21,000 for the purchase of equipment to facilitate the collection of delinquent taxes. Equipment to be purchased by City includes printers and a reel to reel tape drive. City will assume maintenance fees for the miscellaneous hardware. Legal title to all software licenses and all hardware shall vest in City. City currently has an IBM AS/400 on which to operate the tax software system and the miscellaneous hardware will be connected to this system. City agrees to order tax software within one week of approval of this contract. City further agrees to follow the implementation plan as outlined in Exhibit A. 1 e e The reimbursements for the above system will be deducted from the amounts owed the Attorney for collections efforts for the City/District, on an annual basis, with the costs for the non recurring charges split over two years and the cost for the recurring charge in each of the two years. IV. City hereby agrees to furnish the amount of delinquent taxes to Attorney on all property within the taxing jurisdiction of City, along with a copy of City's delinquent tax roll, in accordance with the schedule shown in Exhibit B. City hereby agrees to furnish forms for delinquent tax statements and compute penalty and interest on said statements before such statements are prepared for mailing to delinquent property owners. V. City and Attorney hereby agree that prior to the filing of any suits for collection of delinquent taxes, both parties are to review the delinquent tax roll for any errors, double assessments or other discrepancies on said roll, the City's Assessor-Collector to represent the City in such reviewing procedure. Attorney is to intervene on behalf of the City in all suits for taxes, hereafter filed by any taxing unit on property located within its jurisdictional limits. VI. Attorney hereby agrees to represent the City and file appropriate pleadings on all bankruptcy notices regarding taxes on delinquent taxpayers. VII. Attorney hereby agrees to file suit on and reduce to judgment and sale all delinquent property located within City's taxing jurisdiction with the necessary data and information as to name, identity, location of all necessary parties, and legal description of the property being derived from the City's tax system. When a title search is required, Attorney hereby agrees to supervise said title search, with costs to be reimbursed to attorney out of court costs. Attorney hereby agrees to sue for recovery of the costs as court costs as provided by Section 33.48 of the Texas Property Tax Code. VIII. Attorney hereby agrees to make written progress reports to City on a monthly basis, and to advise the City of all cases when investigation reveals delinquent taxpayers to be financially unable to pay their delinquent taxes. Monthly progress reports shall be in a format mutually agreeable to both parties and shall contain the information listed in Exhibit C. City agrees to make progress reports to Attorney on a monthly basis. City monthly progress reports shall contain information listed in Exhibit C. 2 e e IX. City hereby agrees to pay Attorney as compensation for services required hereunder Fifteen Percent (15%) of the amount collected of all delinquent taxes, penalty and interest of the years covered by this contract, (or the legal percentage, if said percentage change is required by operation of law during the term 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 Attorney at the time payment of taxes, penalty and interest is made to the Tax Collector of City. Amounts payable to Attorney shall be offset by refunds to Delinquent Taxpayers of collection fees as required by state law and reimbursements to City for Tax System as described in Section III. For each twelve month period, the reimbursement to City for Tax System shall be equal to 50% of the collection fees collected on City accounts with the minimum reimbursement in each period being $15,000 and the maximum being $30,000, payable as follows: . The first $15,000 of compensation to Attorney shall be held by City as reimbursement; . The second $15,000 of compensation to Attorney shall be held by Attorney; . Fifty percent of the next $30,000 of compensation to Attorney shall be held by City as reimbursement; and . Attorney shall be entitled to full payment of all amounts in excess of $60,000. City hereby agrees to pay over said funds due Attorney by the 20th of the month following collection of said funds. Funds not submitted by the required date shall incur interest at the rate of 8% per annum. X. This is a personal contract, and shall not be assignable by Attorney. This contract shall be effective from February 26, 1996, through February 28, 1998, and where permitted by law and mutual agreement of both parties, may be extended, at one year intervals, for an additional three years. Written notice must be given by each party as to their intent to extend the agreement 30 days prior to termination date. After termination, Attorney shall have an additional 10 months, plus necessary time for any appeals, to reduce to completion all valid suits outstanding at the date of termination as provided herein, provided, however, such additional period shall not preclude City from entering into a delinquent tax collection contract with another attorney. In consideration of the terms and compensation herein stated, Attorney hereby accepts said employment and undertakes the performance of this contract as above written. 3 e . XI. This contract is executed on behalf of City by its City Manager, who is authorized to execute this agreement by ordinance heretofore passed and approved by City's City Council. Witness, the Signature of both parties hereto, in duplicate originals, this the .~ day of February, 1996, at La Porte, Harris County, Texas. CITY OF LA PORTE By: 6<~ T. ~ Robert T. Herrera City Manager Attest: ~ Sue Lenes City Secretary ?cJ ~~ By: Knox W. Askins City Attorney 4 e e Exhibit A Implementation Plan for Tax Software The following is the implementation plan for installation of the new tax system. The City agrees to follow this plan to the best of its abilities and only delays outside of the City's control will alter the plan. 1. Within one week of contract approval, order the Tax Software. 2. Negotiate with Tax Software provider the earliest installation, conversion and training dates. 3. Order the miscellaneous hardware to coincide with the Tax System installation. 4. Within 30 days after the City is utilizing the new Tax Software System, provide Attorney guidance on how to connect to the City's Tax System via phone line and modem. 5. Within 15 days after hookup by the Attorney, City staff will provide 8 hours of training to Attorneyjs staff on the use of the system for inquiring data and printing reports which contain the information Attorney needs to answer Delinquent Taxpayer's questions and processing of Suits and other legal maneuvers. 6. Within 15 days after Attorney has received training, Attorney will be able to respond to Delinquent Taxpayer's inquiries. 5 e e Exhibit B Because of the current volume of delinquent tax accounts (in excess of 3,000), the following schedule will be followed for the preparation for mailing of delinquent tax statements. January February March April M~ June July August September October November December No delinquent statements, current year tax collection workload Delinquent Personal Property One half of Delinquent Real Property Second half of Delinquent Real Property No delinquent statements, May notice's will be mailed Delinquent Personal Property One half of Delinquent Real Property Second half of Delinquent Real Property Delinquent Personal Property One half of Delinquent Real Property Second half of Delinquent Real Property No delinquent statements, current year tax collection workload The above schedule provides for statement preparation three times per year for all delinquent accounts and will be effective once the HTE computer system has been installed and placed in operation by City. 6 " ' . e e Exhibit C Monthly Progress Reports The monthly progress reports prepared by the Attorney and submitted to the City shall contain, at a minimum, the following information. 1. Number and types of communication with Delinquent Taxpayers. 2. Number of suits filed. 3. Number of judgements rendered. 4. Number of properties submitted to Court's for auction. 5. Number of properties sold. 6. Number of warrants issued/served. 7. Detailed list of suits filed. 8. Detailed list of judgements rendered. 9. Detailed list of properties sold or reverting to taxing entity because of non sale. 10. Status of bankruptcies. 11. Cumulative list of properties submitted to Courtjs for auction, with date submitted and most recent status. The monthly progress reports prepared by the City and submitted to the Attorney shall contain, at a minimum, the following information. ~ Beginning Balance of Delinquent Taxes. 2. Summary total of amounts collected. 3. Summary total of adjustments to Delinquent Taxes caused by HCAD or court ordered adjustments. 4. Ending Balance of Delinquent Taxes. 5. Total amount of fees collected on behalf of Attorney. 6. Detail list of accounts paid during the period which had Attorney Fees. 7