Ordinance No. 13,251ORDINANCE NO. 13,251
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AN AGREEMENT WITH RANDALL B. STRONG FOR
THE COLLECTION OF DELINQUENT TAXES AND PAYMENTS IN LIEU OF
TAXES AND BANKRUPTCY COLLECTIONS; AUTHORIZING PAYMENT BY
THE CITY OF BAYTOWN IN THE AMOUNT OF THE ADDITIONAL
PENALTY PROMULGATED BY THE CITY COLLECTED PURSUANT TO THE
TAX CODE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes an
agreement with Randall B. Strong for the collection of delinquent taxes, payments in lieu of taxes
and bankruptcy collections. A copy of said agreement is attached hereto as Exhibit "A" and
incorporated herein for all intents and purposes.
Section 2: That the City Council of the City of Baytown authorizes payment in the
amount of the additional penalty promulgated by the City collected pursuant to the Tax Code for the
agreement authorized in Section 1 hereof.
Section 3: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmativete of the City Council of the City
of Baytown, this the 11 to day of August, 2016. / 1
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APPROVED AS TO FORM:
NACIO RAMIREZ, S ity Attorney
HEN H. DONCARLOS,
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Exhibit "A"
CONTRACT
FOR THE COLLECTION OF
DELINQUENT TAXES AND PAYMENTS IN LIEU OF TAXES
STATE OF TEXAS
COUNTY OF HARRIS
THIS CONTRACT is made and entered into by and between the CITY OF BAYTOWN, a
municipal corporation located in Harris and Chambers Counties, Texas, hereinafter called "City," and
RANDALL B. STRONG, an attorney licensed to practice law in the State of Texas, whose office is
located at 407 W. Baker Road, Suite T, Baytown, Texas 77521, hereinafter called "Attorney."
I.
City agrees to employ and does hereby employ Attorney to collect by lawsuit or otherwise all
delinquent ad valorem taxes, penalty and interest owing to City and all other taxing jurisdictions whose
taxes are collected by City. Delinquent taxes shall become subject to the terms of this Contract when
placed in litigation, on the first day of July of the year in which the taxes become delinquent, 21 days after
a notice of delinquency is sent by the tax collector for the City as provided in TEx. TAx CODE §33.08, or
on the date of filing of an application for tax warrant where recovery of the tax or estimated tax is sought
and where the filing of an application for tax warrant by Attorney is at the request of the City's Tax
Assessor /Collector, whichever date is sooner.
Additionally, City agrees to employ and does hereby employ Attorney to collect by lawsuit or
otherwise all delinquent industrial district payments and payments in lieu of taxes (PILOT) together with
all penalties and interest owing to City, when the same are turned over to the Attorney by the City. Such
delinquent payments by virtue of the Industrial District Agreement and /or PILOT are subject to the
same penalties, interest, attorneys' fees and costs of collection as recoverable by the City in the
case of delinquent ad valorem taxes. As such, Attorney shall send notices in accordance with
Article IV of this Agreement and shall be paid as compensation for services the fees actually
collected pursuant to TEX. TAX CODE §§ 33.07 and 33.48.
City agrees to employ and does hereby employ Attorney to represent it in all bankruptcy
proceedings. Attorney shall file proofs of claim necessary to ensure that the debts owed to the City,
including, but not limited to, ad valorem taxes, fees for water, sewer, garbage, and storm water utility
accounts together with fees for library fines, mowing services, and nuisance abatements are appropriately
included in the proceedings and retain their secured status, if applicable.
II.
Attorney will endeavor to call to the attention of the tax collector of the City or other City
officials any errors, double assessments or other discrepancies in the City's tax rolls which he observes
during the progress of the work. On behalf of the City, Attorney will initiate lawsuits concerning those ad
valorem taxes subject to this agreement and intervene in all suits for ad valorem taxes hereafter filed by
any taxing unit on property located within City's corporate limits. Attorney also shall provide skip trace
service for the City's contract assessor /collector, which is currently the assessor /collector of the Goose
Creek Consolidated Independent School District ( "GCCISD "), or the City's successor contract
assessor /collector.
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes. Page 1
rip
Attorney shall meet or exceed the following benchmarks for each year that this Contract is in
effect:
First year delinquent collections as a percentage of beginning delinquent
levybalance ....................................................................................... ............................55%
(i.e. first year = 2016 taxes, collections from 7/1/16 — 6/30/17)
2. Second year delinquent collections as a percentage of beginning delinquent
levybalance ................................................................................... ............................... 30%
(i.e., second year= 2015 taxes, collections from 7/1/15 — 6/30/16)
Failure to meet such standards is grounds for the City to terminate this Contract for cause pursuant to
Article XI hereinbelow.
IV.
City has authorized by ordinance, in a manner which complies with the TEX. TAX CODE
§33.07(a), an additional penalty to defray costs of collection pursuant to TEX. TAX CODE §33.08 and the
Code of Ordinances, Baytown, Texas. Attorney agrees to prepare and mail the notice of delinquency and
of the additional penalty to the property owner pursuant to TEX. TAX CODE §33.07(d). City agrees to
cooperate and cause its tax collector to cooperate with Attorney in the preparation and delivery of such
notices, including, but not limited to, providing complete and accurate delinquent tax rolls and related
files to Attorney on or before April 30 of each year during the term of this Contract.
V.
As part of Attorney's collection responsibilities, Attorney shall coordinate sales with other tax
entities and attorneys' offices, including gathering pay off information, collection of funds, and letters
from purchaser for Council approval. Attorney shall, unless instructed otherwise by the City, order
executions of all judgments, regardless of the time the same were taken. Judgments taken on or after the
effective date of this Contract shall be executed within sixty (60) days after the date the judgment
becomes final, unless a written payment agreement has been signed as to the property. If property is
struck off to the City or has been seized by the City pursuant to a writ of execution or a tax warrant,
Attorney shall diligently attempt to sell such property in satisfaction of the amount of the judgment. Such
diligence shall include, but not be limited to, updating at least monthly the list of foreclosed properties
available for resale and providing the same for posting on the website to both GCCISD tax office and the
City Attorney's office. Attorney shall coordinate each tax foreclosure sale and ensure that the property
seized or ordered sold pursuant to foreclosure of a tax lien shall be sold in the manner as provided by law.
The City will pay the publication and sale costs charged by the Sheriff or Constable, and be entitled to
reimbursement of these amounts upon sale of the property.
VI.
City agrees to pay Attorney as compensation for the services required hereunder the fees from
TEX. TAX CODE §§ 33.07 and 33.08 actually recovered by City from the collection efforts of Attorney as
and when collected during the term of this Contract and for one year after its expiration if the collection
Contract for the Collection of Delinquent Taxes, Page 2
of taxes is attributable to judgments obtained by Attorney. The City shall pay all funds collected on
behalf of Attorney monthly, with payment by the 15th day of the month following collection by City.
Interest on late payments shall be payable as provided in Texas Government Code Section 2251.025.
VII.
Attorney may request in writing that City adopt an ordinance which would impose
the additional penalty for tax collection provided by TEx. TAx CODE §§ 33.07 and
33.08 applicable to all prior years. In return for City's approval of said ordinance
at Attorney's request, ATTORNEY AGREES TO AND SHALL INDEMNIFY,
HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS AND
EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES,
DAMAGES, CAUSES OF ACTION, SUITS AND LIABILITY OF EVERY KIND,
INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND
ATTORNEYS' FEES, FOR ANY AND ALL DAMAGES ARISING OUT OF OR
IN CONNECTION WITH ANY CHALLENGE TO THE LEGALITY OF SAID
ORDINANCE, WHERE SUCH DAMAGES ARE CAUSED IN WHOLE OR IN
PART BY THE NEGLIGENCE OF THE CITY AND /OR CAUSED IN WHOLE
OR IN PART BY THE NEGLIGENCE OF THE ATTORNEY. IT IS THE
EXPRESSED INTENTION OF THE PARTIES HERETO, BOTH THE
ATTORNEY AND THE CITY, THAT THE INDEMNITY PROVIDED FOR IN
THIS ARTICLE IS INDEMNITY BY THE ATTORNEY TO INDEMNIFY AND
PROTECT THE CITY FROM THE CONSEQUENCES OF THE CITY'S OWN
NEGLIGENCE AND /OR THE ATTORNEY'S OWN NEGLIGENCE
REGARDING THE ADOPTION OF THE REQUESTED ORDINANCE OR
APPLICATION OF THE SAME, WHETHER THAT NEGLIGENCE IS THE
SOLE OR A CONCURRING CAUSE OF THE RESULTING DAMAGES). IN
THE EVENT THAT ANY ACTION OR PROCEEDING IS BROUGHT AGAINST
THE CITY BY REASON OF ANY OF THE PROVISIONS CONTAINED IN THIS
ARTICLE, THE ATTORNEY FURTHER AGREES AND COVENANTS TO
DEFEND THE ACTION OR PROCEEDING BY LEGAL COUNSEL
ACCEPTABLE TO THE CITY. THE PROVISIONS OF THIS ARTICLE SHALL
SURVIVE THE EXPIRATION OR TERMINATION OF THIS CONTRACT.
VIII.
Attorney shall not sell, assign or transfer any of his rights or obligations under this Contract in
whole or in part without written consent of City, nor shall Attorney assign any monies due or to become
due to him hereunder without the previous consent of the City.
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes, Page 3
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Attorney, personally and professionally, shall not be delinquent on any payment of taxes to the
City of Baytown, GCCISD, Harris County, Chambers County or the United States Department of the
Treasury - Internal Revenue Service.
X.
This Contract shall be effective upon the execution of the same by the City Manager and, with the
exception of the reporting requirements, shall expire, if not before terminated, on September 30, 2018.
Thereafter, this Contract may be renewed for three successive one -year terms upon (i) receipt of a request
therefor by the Attorney on or before May 31' of the year in which the Contract expires and (ii) the
approval of the City of such continued representation. The terms during such renewal periods shall be the
same as during the initial term hereof.
After the expiration of the Contract if the same is not renewed, this Contract will continue on a month -to-
month basis until such time as City notifies Attorney that it does not wish to continue the Contract. The
parties understand and agree that any such notification by the City pursuant to this paragraph occurring
after September 30`h of the year in which the contract expired, shall not be deemed to be a notice of
termination without cause.
XI.
During any period, this Contract may be terminated, for cause or for convenience, by either party
by the giving of ninety (90) days' written notice thereof to the other party. If the Contract is terminated
by the City without cause, Attorney (i) shall have six (6) months following the date of such termination to
reduce to judgment all suits, which the Attorney filed prior thereto, (ii) shall be entitled to compensation
pursuant to Article VI hereinabove for any such judgments actually paid to and received by the City
during the twelve month period after the date of such termination, and (iii) shall return in good order any
and all files, whether in lawsuit, judgment or otherwise, relating in any way to the collection of delinquent
taxes pursuant to this Contract six months following the date of such termination. However, it is
expressly understood and agreed that should this Contract be terminated by the City due to a breach of
any term of this Contract by the Attorney or should the Attorney terminate this Contract, with or without
cause, Attorney shall return in good order any and all files relating in any way to the collection of
delinquent taxes pursuant to this Contract on the termination date hereof and shall be entitled to no further
compensation, as described in this article or elsewhere in this Contract, after the termination of this
Contract, other than collection penalties already received by the City prior to the date of termination. In
consideration of the terms and compensation herein stated, Attorney hereby accepts said employment and
undertakes the performance of the Contract.
XII.
Each month, Attorney shall provide the City with a written report, which shall include at a
minimum, the following information:
Delinquent litigation collection analysis;
The analysis of the collections of each yearly tax roll shall include the beginning tax levy
receivable, the levy paid, and the ending tax levy receivable (beginning - paid = ending).
Contract for the Collection of Delinquent Taxes. Page 4
This information is contained in the Monthly Tax Collectors report. Included with this
information shall be a calculation of the percent collections for each tax year for that
month, quarter -to -date and year -to -date (calculated as collections / beginning balance =
% collections).
Lawsuits (Original Petitions) filed during the reporting period;
3. Interventions filed during the reporting period;
4. Lawsuits pending;
Lawsuits dismissed;
6. Lawsuits nonsuited;
7. Judgments;
8. Judgments Released;
9. Foreclosures/Tax sales;
10. Tax warrants/Writs of execution; and
11. Tax bankruptcies.
Included in the above - referenced information shall be a detailed listing of each lawsuit
which has had activity during a monthly reporting period and a description of such activity. Such
report shall be due on or before the thirtieth (30a') day of the month following the end of the
monthly reporting period.
Quarterly, Attorney shall provide written management reports with comparative performance
measurements on delinquent tax collections. In order to make an informed evaluation regarding
collections and the performance of Attorney, such quarterly reports will include that information from
both the current and prior years required by the tax collector. Additionally, Attorney along with the
management report shall provide on a quarterly basis a count of correspondence sent to holders of
delinquent accounts, including, but not limited to, billings and notices. These quarterly reports shall be
due within thirty (30) days after the end of the quarterly reporting period.
Annually, Attorney shall provide the City with a written report, which shall include at a
minimum, the following information:
1. Top twenty -five (25) delinquent accounts for both real and personal property for the four
most recent tax years;
2. List of accounts (with balances due) that are deemed uncollectible and why; and
Annual Collection Fees received by Attorney.
This annual report shall be due on November 30d' of each year.
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes, Page 5
Failure to provide a report, when due is grounds for the City to terminate this Contract for cause.
pursuant to Article XI hereinbelow.
XIII.
This Contract shall not bestow any rights upon any third party, but rather, shall bind and benefit
the Attorney and the City only.
XIV.
This Contract contains all the agreements of the parties relating to the subject matter hereof and is
the full and final expression of the agreement between the parties and supersedes all prior written or oral
understandings.
XV.
All notices required to be given hereunder shall be given in writing either by telecopier,
overnight, or facsimile transmission, certified or registered mail at the respective addresses of the parties
set forth herein or at such other address as may be designated in writing by either party. Notice given by
mail shall be deemed given three (3) days after the date of mailing thereof to the following addresses:
ATTORNEY
Randall B. Strong
Attorney at Law
407 W. Baker Road, Suite T
Baytown, Texas 77521
Fax: 281 - 427 -0864
CITY
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, TX 77522
Fax: 281 -420 -6586
XVI.
Failure of either party hereto to insist on the strict performance of any of the agreements herein or
to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be
considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance
with any other obligation hereunder to exercise any right or remedy occurring as a result of any future
default or failure of performance.
KM
This Contract shall in all respects be interpreted and construed in accordance with and governed
Contract for the Collection of Delinquent Taxes, Page 6
by the laws of the State of Texas and the City, regardless of the place of its execution or performance.
The place of malting and the place of performance for all purposes shall be Baytown, Harris County,
Texas.
This Contract constitutes the entire agreement and all understandings between the parties
concerning the subject matter hereof and supersedes all prior proposals or other communications between
the parties, oral or written. No modifications and amendments hereto shall be binding upon either party
unless in writing and signed by a duly authorized representative of the parties.
K►114
All parties agree that should any provision of this Contract be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Contract, which shall continue in
full force and effect.
M
In the event of any ambiguity in any of the terms of this Contract, it shall not be construed for or
against any party hereto on the basis that such party did or did not author the same.
►:0:10
It is understood and agreed that this Contract may be executed in a number of identical
counterparts each of which shall be deemed an original for all purposes.
SIGNED in duplicate originals this the day of a 2016, in Harris
County, Texas.
CITY OF BAYTOWN, TEXAS
RICHARD L. DAVIS, City Manager
ATTEST:
LETICIA BRYSCH, City Cleric
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes, Page 7
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR., City Attorney
STATE OF TEXAS
COUNTY OF HARRIS §
Before me, f DClaf & A). `V� +-�-, _, the undersigned notary public, on this day personally
appeared Randall B. Strong, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed that instrument for the purposes and consideration
therein expressed.
Given under my hand and seal of office thi day of '2016.
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Contract for the Collection of Delinquent Taxes, Page 8