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Home My WebLink AboutO-2004-2696 . e ORDINANCE NO. 2004- 9lltJ q6 AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND THE LAW FIRM OF PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P., FOR THE COLLECTION OF DELINQUENT TAXES; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETING LAW; 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 officialIy 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. e e ORDINANCE NO. 2004- ~ Ii QS PAGE 2 PASSED AND APPROVED this 26th day of January, 2004. CITY OF LA PORTE, TEXAS !hA!?tI-~ Norman Malone, ayor ATTEST: c-rn t1AJ-j, ~ &iu Martha Gillett, City Secretary APPROVED: Knox Askins, City Attorney . e CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES THE STATE OF TEXAS ~ ~ ~ COUNTY OF HARRIS 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 caIled the Firm. I. Taxing Authority agrees to employ and does hereby employ the Pirm 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 ColIector refers to the Pirm, provided current years taxes becoming delinquent within the period of this contract shaIl 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, ofthe 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 first 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 Pirm for collection. II. The Pirm 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. . e III. The Firm agrees to make progress reports to the Taxing Authority on request, and the advise the Taxing Authority of all cases where investigation reveals taxpayers to be financially unable to pay their delinquent taxes. IV. The Firm 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 publication costs are at no out of pocket costs to the taxing authority). V. Taxing Authority agrees to pay the Firm as compensation for services required hereunder twenty (20%) 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 twenty 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 of filing 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 Firm is entitled to twenty (20%) of any amounts of delinquent taxes, penalties, and interest actually received by the Taxing Authority and twenty (20%) percent of current taxes actualIy received by the Taxing Authority when such twenty percent is recovered from the taxpayer if collected prior to July 1 st of any tax year, upon order of the Court. VI. 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. VII. This Contract shall commence on APRIL 1.2004, and continue in force and effect until MARCH 31. 2007; provided, however, that Taxing Authority shall have the right to terminate this agreement for cause by giving the Firm 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. On April 1, 2007 this contract, and all of its terms and conditions, shall automatically renew for an additional two (2) year term unless terminated pursuant to this provision. After the renewal this contract, and alI of its terms and conditions, shall automatically renew and be effective on a month to month basis until terminated by the other parties hereunder. . e VIII. Every provision of this Agreement is intended to be severable. If any term or provision hereof is hereafter deemed by a Court to be illegal, invalid, void or unenforceable, for any reason or to any extent whatsoever, such illegality, invalidity, or unenforceability shall not affect the validity of the remainder of this Agreement, it being intended that such remaining provisions shall be construed in a manner most closely approximating the intention of the Parties with respect to the illegal, invalid, void or unenforceable provision or part thereof. In consideration of the terms and compensation here stated, the Firm hereby accepts said employment and undertakes the performance 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 the a~ day of GO n fl t1 r II , A.D., 2004, Harris County, Texas. I PERDUE, BRANDON, FIELDER COLLINS & MOTT, L.L.P. Attorneys at Law 1235 North Loop West, Suite 600 Houston, Texas 77008 (713) 862-1860 (713) 862-14 Fax BY: CITY OF LA PORTE By4~k1/..- MAYOR NORMAN MALONE ATTEST: ~a.,liclj;(j MARTHA GILLETT CITY SECRETARY . . REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Januar Appropriation Requested By: . Source of Funds: N/A Department: Financp. Account Number: Report: Resolution: Ordinance: xx Amount Budgeted: Exhibits: Contract for the Collection of Delinquent Taxes Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The City currently has an agreement with Perdue, Brandon, Fielder, Collins & Mort, L.L.P., for the collection of Delinquent Taxes. When we initially entered into this agreement, we structured the term to end at the same time as their contract with the school district ended. The La Porte Independent School District (LPISD) issued a new contract at its November 11, 2003, Board Meeting to become effective April I, 2004. Accordingly, since it is to our advantage to utilize the same firm, we are requesting the same term that the school agreed to, which is three years. This fIrm has represented the City in a professional and courteous manner, and has consistently improved the collection rate of delinquent taxes. They have collected over $700,000 in the last three years and assisted the La Porte Tax Office in selling numerous Tax Foreclosure Properties. We are extremely pleased with our relationship, and would like to continue it. ACTION REQUIRED BY COUNCIL: Adopt Ordinance approving and authorizing a Contract for the Collection of Delinquent Taxes with Perdue, Brandon, Fielder, Collins & Mort, L.L.P. for a three-year term beginning April 1, 2004, and ending March 31, ~th a two-year renewal, and on a month-to-month basis thereafter. FUND N/A ACCTNUM: FUNDS AVAILABLE / -026 -{)'f DATE