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Home My WebLink AboutO-2021-3839 approving & authorizing a contract with Perdue, Brandon, Fielder, Collins, & Mott LLP for the collection of delinquent Ad Valorem taxesORDINANCE NO. 2021- 3839 AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT WITH PERDUE, BRANDON, FIELDER, COLLINS & MOTT LLP FOR THE COLLECTION OF DELINQUENT AD VALOREM TAXES; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, there is a substantial need for the legal services specified in the contract described below; and WHEREAS, these legal services cannot be adequately performed by the attorneys and supporting personnel of the City of La Porte; and WHEREAS, these legal services cannot reasonably be obtained from attorneys in private practice under a contract providing only for the payment of hourly fees, without regard to the outcome of the matter, because of the nature of the matter for which these services will be obtained or because the City of La Porte does not have funds to pay the estimated amounts required under a contract providing only for the payment of hourly fees. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. The City Council of La Porte, Texas, hereby approves and authorizes a contract with Perdue, Brandon, Fielder, Collins & Mott, LLC, for the collection of delinquent ad valorem taxes, a copy of which contract is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor is hereby authorized and empowered to execute said contract on behalf of the City of La Porte, Texas. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City of La Porte to such document. Section 3. 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 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED and APPROVED, this, the 12' day of JULY, 2021 ATTEST: jeejoqhward, City Secretary CITY OF L PORTE, TEXAS �-4� Lo is R 'gby, M tr APPROVED AS TO FORM: Ti4L— -..`..e Clark T. Askins, Assistant City Attorney CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES THE STATE OF TEXAS § COUNTY OF HARRIS § THIS CONTRACT is made and entered into by and 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 Finn. I. Taxing Authority agrees to employ and does hereby employ the Finn 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 tern 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 is 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 Finn for collection. D. All delinquent personal property taxes shall become subject to this contract and are to be tamed over to the FIRM for collection 60 days after the delinquency date for said taxes. A 20% penalty shall be assessed to defray the cost of collecting those taxes as provided by §33.11, Texas Property Tax Code. All collection penalties or attorney fees collected on those taxes are the property of the firm and shall be paid in the same manner as all other collection penalties or attorney fees under this contract. II. The Firm is to call to the attention of the collector or other officials any errors, double assessments or other discrepancies coming under their observation 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. The Firm agrees to make progress reports to the Taxing Authority on request and to advise the Taxing Authority of all cases where investigation reveals taxpayers to be financially unable to pay their delinquent taxes. IV. Taxing Authority agrees to furnish to the Firm all data and information 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. Section 33.48(a) (4) of the Texas Property Tax Code provides: "In addition to other costs authorized by law, a taxing unit is entitled to recover... reasonable expenses that are incurred by the taxing unit in determining the name, identity and location of necessary parties and in procuring necessary legal descriptions of the property on which a delinquent tax is due:..." The Finn agrees to advance on behalf of Taxing Authority such costs and expenses. In consideration of the advancement of such costs and expenses by the Firm, Taxing Authority assigns its right to recover the same to the extent approved by the Court and/or customarily and usually approved by the Court. The Firm expressly waives any claim against Taxing Authority for uncollected costs or expenses. V. Taxing Authority agrees to pay the Firm as compensation for services rendered hereunder, the percentage as set forth below, 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 an equal amount of Section 33.07 or 33.08 penalties 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 shall be entitled to the appropriate percentage, as set forth below, of any amounts of delinquent taxes, penalties, and interest actually received by the Taxing Authority, and also the appropriate percentage, as set forth below, of current taxes actually received by the Taxing Authority when such percentage is actually recovered from the taxpayer, if collected prior to July P of any tax year. Compensation Amounts 15% of tax year 2001 and prior year collections; 20% of tax year 2002 and subsequent year collections. V1. Taxing Authority agrees to fumish to the Firm all data and information 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 July 12, 2021 and continue in force and effect until July 12, 2024 at which time this contract shall continue on a month to month basis, except that either party to this agreement may 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 reduce to payment or judgment all tax litigation and bankruptcy claims filed prior to the date this agreement becomes terminated. VIII. Every provision of this Agreement is intended to be severable. If any tern 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. The Firm verifies that it is in compliance with and will comply with all provisions of Texas Government Code Section 2270.002 during the term of this contract. 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 the governing body who is authorized to execute this instrument by Order heretofore passed and duly recorded in its minutes. WITNESS the signatures of all panics hereto in duplicate originals this the IV� day of 2021, Harris County, Texas. PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P. Attorneys At Law 1235 North Loop West, Suite 600 Houston, Texas 77008 (713) 862-1860 or 1 ( 00) 933-5886 (713) 8_ x By: JASON L. CITY OF LA PO By: � ! ) � , ] ! | f! ff E!!| \ \ |)§ \ \\{}\ | ! . ; � : � | ■ ! § _ ) � _ { . §\ � \! !�`! 0 1 \ \ EE f! ! •:•, .11..,! }.� :; ` •Rein! ; !•, ! ..:..| • !!! ; ,��• l.l... , . !, .. ....., ! .,l,,! ! }|! . �.� . ...;,| ! !|! • ,.--•� , ` <| Sol !` NJ !211T/ ` | ,.��•| }� �.� ;