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HomeMy WebLinkAboutO-1998-2227 - e ORIGINAL ORDINANCE NO ~ - 2 2 2 7 AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT FOR COLLECTION OF DELINQUENT TAXES BETWEEN THE CITY OF LA PORTE AND PERDUE, BRANDON, FIELDER, COLLINS & MOTI, LLP FOR A THREE YEAR TERM, COMMENCING APRIL I, 1998, AND TERMlNATING MARCH 31,2001, PROVIDING FORA lWO YEAR RENEWAL OPTION AND ON A MONTH TO MONTH BASIS THEREAFTER, MAKING VARIOUS FINDINGS AND PROVISION 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 I. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form shown in the document which is attached hereto and incorporated herein by this reference. The Mayor 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 convenieI'!-t 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 in effect from and after its passage and approval. PASSED and APPROVED this the 23rd day of March, 1998. ~~~~~ Norman Malone, Mayor Knox Askins, City Anorney . . ~ 1) rc5J\\f ~~u li CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES THE STATE OF TEXAS COUNTY OF HARRIS I I I THIS CONTRACT is made between the CITY OF LA PORTE a political subdivision of the State of Texas, acting by and through its CITY COUNCIL, hereinafter called Taxing Authority, and PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P., Attorneys at Law, Houston, Texas, or their duly authorized representatives, hereinafter called the Firm. L Taxing Authority agrees to employ and does hereby employ the Firm to enforce by suit or otherwise, the collection of all delinquent taxes, penalty and interest, owing to the Taxing Authority which the Taxing Authority's Tax Collector refers to the Firm, provided current years taxes becoming delinquent within the period of this contract shall become subject to its terms upon the following conditions: A. Taxes that become delinquent during the term of this Contract that are not delinquent for any prior year become subject to the terms of this Contract on the 1st day of July, of the year in which they become delinquent; and B. Taxes that become delinquent during the term of this Contract on property that is delinquent for prior years shall become subject to its term on the ftrst day of delinquency when such property under litigation or comes under litigation or is referred to the Firm for collection by the Taxing Authority's Tax Collector. C. Taxing Authority reserves the right to make the final decision as to whether or not to enforce by suit any delinquent tax account turned over to the Firm for collection. n. The Firm is to call to the attention of the collector or officials any errors, double assessments or other discrepancies coming under their observance during the progress of the work and is to intervene on behalf of the Taxing Authority in all suits for taxes hereafter filed by any taxing unit on property located within its taxing jurisdiction. m. The Firm agrees to make progress reports to the Taxing Authority on request, and advise the Taxing Authority of all cases where investigation reveals taxpayers to be financially unable to pay their delinquent taxes. e e IV. ~1:YrBJ~ '67 ~ [j--' U The Finn further incorporates its written proposal to collect delinquent taxes into this contract and agrees to perform in accordance thereto. All activities performed by the Firm in connection with this contract (i.e. title research and publications costs are at no out of pocket costs to the taxing authority). v. The Finn recognizes Taxing Authority's desire to obtain Final Judgments and Orders of Sale on certain parcels of real property, more particularly described on Exhibit "A" attached hereto. Firm agrees to research titles, file suits, and diligently prosecute suits to final judgments and sale, on said parcels. These accounts will be worked evenly over the term of the agreement. VI. Taxing Authority agrees to pay the Firm as compensation for services required hereunder fifteen (15%) percent of the total amount of all delinquent taxes, penalty and interest which are subject to this contract and which are actually collected and paid to the Taxing Authority's Collector of Taxes, when such fifteen percent is recovered from the taxpayer. Other taxes, including current taxes, which are turned over to the Firm by the Taxing Authority's Tax Assessor- Collector because of the necessity offiling claims in Bankruptcy, with other federal authorities, or for other reasons, shall become subject to the terms of this contract at the time they are turned over to the Firm and the Finn is entitled to fifteen (15%) of any amounts of delinquent taxes, penalties, and interest actually received by the Taxing Authority and fifteen (15%) percent of current taxes actually received by the Taxing Authority when such fifteen percent is recovered from the taxpayer if collected prior to July 1st of any tax year, upon order of the Court. vn. Taxing Authority agrees to furnish to the Firm all data and information in its possession as to the name and address of the taxpayer, the legal description of the property, years and amount of taxes due. Taxing Authority further agrees to update said information by furnishing a list of paid accounts and adjustments to the Tax Roll as necessary. vm. This Contract shall commence on APRIL 1. 1998, and continue in force and effect until MARCH 31. 2001 with an option to Taxing Authority to renew for one additional two year term, and shall thereafter continue on a month to month basis; provided, however, that either party to this agreement shall have the right to terminate this agreement by giving the other party thirty (30) days written notice of their desire and intention to terminate this agreement; and further provided that the Firm shall have an additional six (6) months to collect or reduce to judgment all tax suits and/or claims filed prior to the date this agreement becomes terminated. e e ~(Q)~Yr In consideration of the tenns and compensation here stated, the Finn hereby accepts said employment and undertakes the perfonnance of this Contract as above written. This Contract is executed on behalf of the Taxing Authority by the presiding officer of its governing body who is authorized to execute this instrument by Order heretofore passed and duly recorded in its minutes. WITNESS the signatures of all parties hereto in duplicate originals this theJ3/fJ day of ~11!)J,~ , A.D., 199 L. Harris County, Texas. PERDUE, BRANDON, FIELDER COLLINS & MOTI', L.L.P. Attorneys at Law 2600 Citadel Plaza Dr., Suite 110 Houston, Texas 77008 (713) 862-1860 (713) 862-1429 Fax By:!LdojJ:~ CITY OF LA PORTE BY:~~~~_ ATTEST~j,~ () 1J4J1b;t1 e e C@[P)W EXHIBIT A UST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION 0061360000005 UNKNOWN lT5BLK46 BAY FRONT TO LA PORTE 0061860000050 UNKNOWN TRS 3A 4A 5A & 6A BAYRIDGE PARK 0061400000007 CURRENT PROPERTY OWNER TR 7 BlK 50 S 1/2 OF l T 7 BAY FRONT TO LA PORTE 0231410000475 UNKNOWN PT Ol 475 476 TRS 475A 476A LAPORTE OUTLOTS 0061640740033 CURRENT PROPERTY OWNER lTS 33 & 34 BLK 74 BAY FRONT TO LA PORTE 0231410000477 CURRENT PROPERTY OWNER PT OL 477 478 TR 477 478A LAPORTE OUTLOTS 0061640740038 CURRENT PROPERTY OWNER lTS 35 & 36 BlK 74 BAY FRONT TO LA PORTE 0231410000630 CURRENT OWNER TR 441 N OUTLOT 441 (020*TR L) LA PORTE OUTLOTS 0061770000023 CURRENT PROPERTY OWNER IT 23 BlK 87 BAY F~ONT TO LA PORTE 0231440000634 CURRENT PROPERTY OWNER .0416 U1D INT IN TR 580C LA PORTE OUTlOTS 0061780880001 CURRENT PROPERTY OWNER lTS 1 THRU 5 BlK 88 BAY FRONT TO LA PORTE 0231470000921 CURRENT PROPERTY OWNER TR 907 (IMPS ONLY) (LAND*0231470000904) LA PORTE OUTLOTS 0061780880021 CURRENT PROPERTY OWNER LTS 22 & 23 BLK 88 BAY FRONT TO LA PORTE 0061860000049 UNKNOWN TRS 9A-1 & 10A BAYRIDGE PARK 0231690310010 UNKOWN L TS 9 & 10 BLK 31 LA PORTE 0231870000008 UNKNOWN L T 8 BLK 54 LA PORTE Page 1 of 7 e e (QXQ)fPJ1f EXHIBIT A LIST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION 0231950000003 UNKOWN lTS 3 &4 BLK62 LA PORTE 0240080190019 CURRENT PROPERTY OWNER IT 2-9 BlK 219 IMPS ONLY LAPORTE 0232080880008 UNKNOWN l T 8 BLK 88 LA PORTE 0240230760005 UNKNOWN l TS 5 & 6 BlK 276 LA PORTE 0232080880009 CURReNT PROPERTY OWNER l TS 9 10 11 & 12 BlK 88 LA PORTE 0240280940008 CURRENT PROPERTY OWNER IT 8 BlK 294 LA PORTE 0232080890003 CURRENT PROPERTY ONWER l TS 3 & 4 BlK 89 LA PORTE 0240370270005 CURRENT OWNER l TS 5 & 6 BlK 327 LA PORTE 0232090000027 CURRENT OWNER lTS 27 & 28 BlK 90 LA PORTE 0240370270007 CURRENT PROPERTY OWNER l TS 7 & 8 BlK 327 LA PORTE 0232150010017 UNKNOWN l TS 17 THRU 24 BlK 101 LA PORTE 0240440750008 CURRENT PROPERTY OWNER l TS 8 & 9 BlK 375 LA PORTE 0232160040028 UNKNOWN l TS 28 THRU 32 BlK 104 LA PORTE 0240460110018 CURRENT PROPERTY OWNER .333 UJD INT IN l TS 18 THRU 23 BlK 411 LA PORTE 0240020890015 CURRENT PROPERTY OWNER lTS 1516 & 17 BlK 189 LA PORTE 0240460110021 CURRENT PROPERTY OWN .333 UJD INT IN l TS 18 THRU 23 BlK 411 LA PORTE Page 2 of 7 e e ~rF'0fQ)~ ~~l: 0 ,~,. 1J EXHIBIT A LOST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD LEGAL DESCRIPTION 0240700500011 CURRENT PROPERTY OWNER lTS 11 THRU 16 BLK 650 LA PORTE 0241470730007 CURRENT PROPERTY OWNER l TS 7 & 8 BLK 973 LA PORTE 0240800890008 CURRENT PROPERTY OWNER l TS 8 & 9 BlK 689 LA PORTE 0241470730014 CURRENT PROPERTY OWNER IT 14 BLK 973 LA PORTE 0240800890029 CURRENT PROPERTY OWNER lTS 29 30 & 31 BlK 689 LA PORTE 0241470730029 UNKNOWN lTS 29 & 30 BlK 973 LA PORTE 0240840000011 UNKOWN IT 11 BlK 709 LA PORTE 0241550000024 CURRENT PROPERTY OWNER IT 24 BLK 986 LA PORTE 0240900210013 CURRENT PROPERTY OWNER lTS 13 THRU 18 BlK 721 LA PORTE 0241560000017 CURRENT PROPERTY OWNER IT 17 BlK 987 LA PORTE 0241030930030 CURRENT RESIDENT IT 30 BlK 793 LA PORTE 0241570000001 CURRENT PROPERTY OWNER l TS 1 & 2 BlK 988 LA PORTE 0241040950004 CURRENT PROPERTY OWNER .50 UfO INT IN l TS 4 THRU 29 BlK 795 LA PORTE 0241570000047 CURRENT PROPERTY OWNER IT 3 BLK 988 LA PORTE 0241040950006 CURRENT PROPERTY OWNER .50 UfO INT IN l TS 4 THRU 29 BlK 795 LA PORTE 0241570000048 CURRENT PROPERTY OWNER l TS 5 6 7 & 8 BlK 988 LA PORTE 0241570000049 CURRENT PROPERTY OWNER lTS 11 & 12 BlK 988 LA PORTE Page 3 of 7 e e EXHIBIT A UST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS (GCQ)[PW HCAD ACCOUNT NUMBER OWNER PER HCAD LEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD LEGAL DESCRIPTION 0241570000050 CURRENT PROPERTY OWNER IT 13 BlK 988 LA PORTE 0241910000020 BOYLER E PEST IT 20 BLK 1114 LA PORTE 0241570000051 CURRENT PROPERTY OWNER IT 14 BLK 988 LA PORTE 0241910000021 BARRETT MRS F 0 lTS 21 22 & 23 BLK 1114 LA PORTE 0241570000052 CURRENT PROPERTY OWNER lTS 15 & 16 BlK 988 LA PORTE 0241910000024 HARRIS CO FLOOD CONTROL IT 24 BlK 1114 LA PORTE 0241910000001 SKELTON B DON & SARAH K lTS 1 & 2 BLK 1114 LA PORTE 0241910000026 REED JENNIE EST IT 25 BlK 1114 LA PORTE 0241910000003 TEXAN LAND AND CATTLE CO lTS 3 THRU 8 BlK 1114 LA PORTE 0241910000028 WOLF EDWARD P l TS 28 & 29 BlK 1114 LA PORTE 0241910000009 LA PO~TE ISO IT 9 BlK 1114 LA PORTE 0241910000032 LA PORTE LAND CO lTS 32 33 34 & 35 BlK 1114 (PT NM) LA PORTE 0241910000010 EISEMANN CHAS M IT 10 BLK 1114 LA PORTE 0241910000036 BOONE J J lTS 36 & 37 BlK 1114 (NM) LA PORTE 0241910000011 MURPHY l YNN J & TR ETAl lTS 11 THRU 17 BlK 1114 LA PORTE 0241910000018 PURDY CURTIS R lTS 18 & 19 BlK 1114 LA PORTE Page 4 of 7 e e ~(Q)[jQ)W EXHIBIT A UST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS HCAD ACCOUNT NUMBER OWNER PER HCAD LEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD LEGAL DESCRIPTION 0241910000038 UNKNQWN L TS 38 39 40 & 41 BLK 1114 (NM) LA PORTE 0241920000003 CITY OF LA PORTE LTS 3 & 4 BLK 1118 LA PORTE 0241910000046 LA PORTE IND SCHOOL DIST LT 46 BLK 1114 (NM) LA PORTE 0241920000005 WOLF EDWARD P LTS 5 & 6 BLK 1118 LA PORTE 0241910000047 UNKNOWN LTS 47 & 48 BLK 1114 (NM) LA PORTE 0241920000007 OBERWETTER ALZINA M ESTAT LTS 7 & 8 BLK 1118 LA PORTE 0241910000049 TEXAN LAND AND CATTLE CO LT 27 BLK 1114 LA PORTE 0241920000009 WEEMS ELIZABETH .75 UfO INT IN LTS 91011 & 12 BLK 1118 LA PORTE 0241910000050 TEXAN LAND AND CATTLE CO LTS 424344 & 45 BLK 1114 (NM) LA PORTE 0241920000013 LA PORTE ISO LTS 13 & 14 BLK 1118 LA PORTE 0241910000051 LA PORTE ISO LT 26 BLK 1114 LA PORTE 0241920000015 EVANS SUSAN L LTS 15 THRU 22 BLK 1118 LA PORTE 0241910000052 CURRENT PROPERTY OWNER LTS 30 & 31 BLK 1114 LA PORTE 0241920000023 HAPPY HARBOR METH HOME L TS 23 & 24 BLK 1118 LA PORTE 0241920000001 PALMER S B LTS 1 & 2 BLK 1118 LA PORTE 0241920000025 SILHA HELEN F LTS 25 26 27 & 28 BLK 1118 LA PORTE Page 5 of 7 e e (CCQ)rPW EXHIBIT A UST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION 0241920000029 SilVA ROBERTA M & lTS 29 30 & 31 BLK 1118 LA PORTE 0241920000044 WEEMS ELIZABETH .75 UlD INT IN lTS 45 46 47 & 48 BlK 1118 LA PORTE 0241920000032 DEClUITT MART MAY IT 32 BLK 1118 LA PORTE 0241920000045 FIRST CITY NATIONAL BANK .25 UlD INT IN lTS 910 11 & 12 BlK 1118 LA PORTE 0241920000033 MAY JAMES IT 33 BlK 1118 LA PORTE 0241920000046 FIRST CITY NATIONAL BANK .25 UlD INT IN l TS 45 46 47 & 48 BlK 1118 LA PORTE 0241920000034 CITY OF LA PORTE lTS 34 35 & 36 BlK 1118 LA PORTE 0241950250017 UNKNOWN lTS 171819 & 20 BlK 1125 LA PORTE 0241920000037 MOTE MRS VESTA M lTS 37 & 38 BlK 1118 LA PORTE 0242120000001 ROHMFElD SHERON l TS 1 2 3 & 4 BLK 1161 LA PORTE 0241920000041 MAYES W D & JIM F l TS 41 42 43 & 44 BlK 1118 LA PORTE 0242120000005 CARPENTER JOHN TR 5 BlK 1161 LA PORTE 0241920000042 ROSENFIELD MAX H .50 UlD INT IN lTS 3 & 4 BlK 1118 (PRORATED 3-29-96) LA PORTE 0242120000009 ROPER MRS ZULA STANFORD lTS 9 THRU 16 BlK 1161 LA PORTE 0241920000043 WEEMS ELIZABETH lTS 39 & 40 BlK 1118 LA PORTE 0242120000017 CURRENT PROPERTY OWNER lTS 17 THRU 22 BlK 1161 LA PORTE Page 6 of 7 e e ~@rPW EXHIBIT A LIST OF PROPERTIES WITH SUSPECTED TITLE PROBLEMS HCADACCOUNTNUMBER OWNER PER HCAD lEGAL DESCRIPTION HCAD ACCOUNT NUMBER OWNER PER HCAD lEGAL DESCRIPTION 0242120000023 HARRIS COUNTY ROW DEPT lTS 23 24 25 & 26 BlK 1161 LA PORTE 0242670000004 UNKNOWN IT 25 BlK 1304 LA PORTE 0242120000027 MOURSUND SR KENNETH C N 1/2 OF lTS 27 28 29 & 30 BlK 1161 LA PORTE 0242920290005 CURRENT PROPERTY OWNER lTS 5 & 6 BlK 1429 LA PORTE 0242120000031 WILDER H B lTS 31 THRU 35 BlK 1161 LA PORTE . 0382340010005 CURRENT PROPERTY OWNER TR 5B SLK 1 PAYNE W J 0242120000036 ROHMFElD SHARON lTS 36 & 37 BlK 1161 LA PORTE 0580460030009 UNKNOWN lT9BlK3 SHOREACRES 0242120000038 EVANS SUSAN l lTS 38 39 40 & 41 BlK 1161 LA PORTE 0580510130005 CURRENT OWNER l T 5 BlK 13 SHOREACRES 0242120000042 WOLF EDWARD P lTS 42 & 43 BlK 1161 LA PORTE 0953370000018 GARZA JOSE & MllKA l TS 18 19 & 20 BlK 5 GREENDALE U1R 0242120000044 MOURSUND SR KENNETH C S 1/2 OF l TS 2728 29 & 30 BlK 1161 LA PORTE 1005540000016 CURRENT PROPERTY OWNER IT 16 BlK 16 COllEGE PARK SEC 7 0242120000045 SUROFCHEK STEPHAN R lTS 6 7 & 8 & TR 5A BlK 1161 LA PORTE 1139660000005 CURRENT PROPERTY OWNER l T 5 BlK 9 MEADOW VilLAGE SEC 1 Page 7 of 7 e e (C(Q)[j2)W City of La Porte Interoffice Memorandum To: Bob McLaughlin, City Councilman Alton Porter, City Councilman Howard Ebow, City Councilman Robert T. Herrera, City Manger ~J1 Jeff Litchfield., Director of Finance/ACM () -, \ March 18, 1998 From: Date: Subject Analysis ofRFP for Delinquent Ta."< Collection Attorney On January 16, 1998, the City and School District sent out a joint Request for Proposal (RFP) for the collection of delinquent taxes. The closing deadline for the request was February 16, 1998. On that date, the City received proposals from three providers. The City's current provider, Dexter Joyner, elected not to respond. The three proposers were: Askins & Armstrong, P.C. in Association with Linebarger Heard, Groggan, Blair, Graham, Pena & Sampson, LLP (Askins) Perdue, Brandon, Fielder, Collins & Molt, L.L.P. (Perdue) Tracey Foster (Foster) The proposals from the three firms were reviewed by Kathy Powell, Ta.x Assessor/Collector for the City and by David Webb, Chief Financial Officer for the School District. The selection criteria as published in the RFP is as follows: C. Selection Criteria The following criteria will be used by the City to evaluate the proposals and to make a selection: 1. Completeness and clarity of the proposal. 2. Soundness of the proposal specifications and methodology with respect to meeting the City"s objectives. 3. Capability and sufficiency of the Finn's computer resources and staff to process approximately 1,800 delinquent accounts each year. 4. Compatibility of the Firm's computer system with the City's computer collection system. 5. Reasonable expectation of results as sho\\n in the Firm's specification responses. 6. Professionalism and conduct of the Firm. 7. Stability of the Firm's financial standing. 8. Costs to be borne by the City. 9. Costs to be borne by the ta.'l:payer. 10. R.esponses to all items under proposal specifications. . e ~CQ)~W Kathy Powell, David Webb and J made site visits and asked a series of questions of each proposers. As a result of that process, we believe each proposer is qualified to provide Delinquent Tax Collection Services to the City and the School District. A brief summary of each proposer follows: City Attorney Knox Askins and John Armstrong submitted a joint proposal with the firm of Linebarger Heard, Groggan, Blair, Graham, Pena & Sampson, LLP, which is the largest Delinquent Tax Collection Finn in the State, representing 1,350 clients, including the City of Houston, Houston ISD and Harris County. In visiting with Linebarger, we found it is common for them to team with a local attorney firm when responding to RFP's. Since this firm is the Delinquent Tax Collector for Harris County, the City currently receives benefit on suits they file on properties in La Porte. They have offices in La Porte and downtown Houston. Perdue, Brandon, Fielder, Collins & Mott, L.L.P is also a large firm, having 800 clients. They are the second largest firm in the Houston market. Their offices are located across from the appraisal district. Tracey Foster is a sole practitioner. Her background includes several years ofTa"< Collection experience before going to school to obtain her law degree. Her offices are near Ellington Field. In approaching the selection process, one item of importance to us was the use of a single firm for the collection of taxes. I ask you to remember that our last contract with Dexter Joyner was specifically designed to end at the same time the School's contract ended. Attached is a letter sent to the School District which supports this position. By using one firm, it provides office efficiencies that are important to keep our cost down and our customer turn around time as quick as possible. If we dealt with two firms, we would have areas of duplicity of effort. We believe the joint collection agreement with the School District has been of big benefit to the taxpayer. By collecting local taxes out of one office, savings to the taxpayer are probably in the $125,000 per year range. I know for the City alone, our annual net costs would go up by about $35,000 if we were not joint venturing with the School. With this in mind, Kathy Powell and David Webb visited and agreed upon the Perdue finn. As mentioned earlier, each of the three firms proposing were qualified and would do us a good job. The selection of the Perdue fum was based primarily on familiarity with the rrrm. Both Kathy and David have worked with the Perdue finn before and have had good relationships with them. Dr. Sawyer has also utilized them. In addition, I worked with Perdue when I was the Tax Collector for the City of University Park. Since 75% of the total delinquent tax balance belongs to the School District, we listened very strongly to their needs. They specifically wanted Perdue and we had no reason to not want them. Please remember the City incurs no costs for the Delinquent Tax Collection Process. It is all born by the Delinquent Taxpayer with a state mandated 15% add-on fee. A brief summary of changes from the current provider include: The rum will provide title work on all property before suit is :filed and will incorporate all past owners as part of the suit. This step will assist in providing clean title to property that otherwise would remain uncollectable and unsaleable. Under our current provider, no title work was done on the property before it was filed upon which has resulted in the City obtaining title to property via a Constables Sale and the title we obtain is clouded by past owners. The rum will load our delinquent tax information into their own computer system and provide us with access to that system. This will allow us to keep track with the work they are doing and we can get up to the minute status reports. Under our current provider, all information was provided to us on hard copy and we were required to update the system ourselves. We were essentially operating the clerical portion of his office. . e (CCQ)rPW The fum will visually inspect aU property before suit is filed. Under our current provider, suits were filed and judgements were obtained on property (houses) that did ~fexist. If the property had been visually inspected, we could have saved ourselves a lot of time and effort and would not have overstated the amount of our delinquent tax roll. These are just a few areas we believe the new provider will be able to assist in cleaning up our rolls. We will enjoy an increase in suit filing activity and tax warrants while still maintaining control over the operation. The new firm will start effective April 1, 1998 for a three year term. Under the term of his contract, the current provider will have until December 31, 1998 to bring to completion all suits he has previously filed. In preparing a contract, with the firm, we considered including a performance measurement criteria but were unable to fmd one that would fairly and accurately provide a comparison. We considered basing it on the amount of delinquent taxes that were collected but rejected that idea because of outside influences. For example, at the last City Council meeting, a street closing netted the City and School $19,514 in delinquent taxes. The tax attorney had nothing to do with that however he will get credit for the collection and even make $2,532 in attorney fees. In reviewing the collection efforts of our current provider, I fmd that they range from a high of 36% a year to a low of 8% a year. The high year of 36% was a year when the City purchased a lot of property for the construction of bond projects. Another measurement criteria we considered was to base it on the number of suits fLIed and again did not believe that would be a good tool. It does not take much to file a suit, just fill in the blanks and file. The real work is what happens before and after the suit is fIled. While the contract is not tied specifically to a performance indicator, we did add a Section and Exhibit that listed properties that we specifically want worked over the three year period. We would have asked any of the three firms to agree to this. The properties are those we strongly suspect have title problems. In conclusion, it is our recommendation the City of La Porte engage the law firm of Perdue, Brandon, Fielder, Collins & Mott, L.L.P. as its Delinquent Ta"< Collector for a three year period starting April 1, 1998 and ending March 31, 2001 and providing for one two year renewal option ( our choice). The School District approved their contract with Perdue at their School Board meeting of March 11, 1998. XC: John looms, Assistant City Manger Kathy Powell, Tax Assessor/Collector