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Ordinance No. 6,891930113 -5 ORDINANCE NO. 6891 • AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN ASSIGNMENT AND ASSUMPTION OF THE CONTRACT FOR COLLECTION OF DELINQUENT TAXES TO RANDALL B. STRONG; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, Sewell & Riggs, a professional corporation, (hereinafter "S &R ") and the City of Baytown entered into a Contract for the Collection of Delinquent Taxes on the 24th day of September 1993; and WHEREAS, S &R anticipated that Randall B. Strong, an individual attorney licensed to practice in the State of Texas, (hereinafter "Strong ") would supervise S &R's obligations under the Contract on behalf of S &R; and WHEREAS, effective December 31, 1993, Strong left the employment of S &R and has opened an office for the practice of law in Baytown, Texas; and WHEREAS, S &R desires to assign the Contract to Strong; and WHEREAS, Strong desires to assume the rights and obligations of S &R granted under the Contract; NOW THEREFORE, 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 and directs the Mayor and City Clerk of the City of Baytown to execute and attest to an Assignment and Assumption of Contract for Collection of Delinquent Taxes. A copy of said assignment and assumption is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: 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 affirmative vote of the City Council of the City of Baytown, this the 13th day of January, 1994. PETE C. ALFARO, Mayor ATTEST: EILE P. , City Clerk • ACIO RAMIRE , SR. lty Attorney 11 1 1 " I' / 1 This Assignment and Assumption Agreement ( "Agreement ") is entered into this /�17'1 day of January, 1994, by and among Sewell & Riggs, a professional corporation ( "S &R"), the City of Baytown, a municipal corporation, located in Harris and Chambers Counties, Texas (the "City "), and Randall B. Strong, an individual attorney licensed to practice in the State of Texas ( "Strong "). WHEREAS, S &R and the City entered into that certain Contract for the Collection of Delinquent Taxes dated the 24th day of September, 1993, a copy of which is attached hereto as Exhibit "A" (the "Contract "); and WHEREAS, S &R anticipated that Strong, an employee of S &R until December 31, 1993, would supervise S &R's obligations under the Contract on behalf of S &R; and WHEREAS, effective December 31, 1993, Strong left the employment of S &R and has opened an office for the practice of law in Baytown, Texas; and WHEREAS, S &R, the City and Strong have agreed to the assignment of the Contract from S &R to Strong and the assumption by Strong of all rights and obligations of S &R under the Contract. NOW, THEREFORE, S &R, the City and Strong agree as follows: 1. Assignment and Assumption. Pursuant to Paragraph VI of the Contract, S &R hereby assigns all of its rights and 1 of 3 AssiWVAssump for Collect of Delinq Taxes EXHIBIT A h:\users\dm oore\s&r\assign m e.bay • obligations under the Contract effective January 1, 1994, to Strong; and Strong hereby assumes all of S &R's rights and obligations under the Contract effective as of January 1, 0 1994. 2. Consent and Release. Pursuant to Paragraph VI of the Contract, the City hereby consents to the assignment of all of S &R's rights and obligations under the Contract to Strong and the assumption of such rights and obligations by Strong. In addition, the City hereby releases S &R from any and all obligations to the City under the Contract and S &R hereby releases the City from any and all obligations to S &R under the Contract. 3. Eugther Assurances. S &R, the City and Strong shall execute such additional agreements as may be reasonably necessary in the opinion of S &R or the City to reflect the foregoing assignment, assumption, consent and release among the parties hereto. This Agreement may be executed in multiple counterparts, all of which shall be considered one Agreement effective as of January 1, 1994. CITY OF BAYTOWN, TEXAS BY: x- aC, PETE C. AL FARO, MAYOR 2 of 3 Asslgn/Assump for CoUeet of Delinq Tam h:\users\dm oore`s&r\assignme.bay • SEWELL & RIGGS, A PROFESSIONAL CORPORATION 0 BY: v RANDALL . STRONG, T7VIDUALLY 3 of 3 Assign/Assump for Cotlect of Delinq Taxes h:\users\d moore\s&r\asslgn me. hay 0 EXHIBIT A C�i•7; ; � � • • i �i• � h� • • • � , . � Vii} �/, ;! : STATE OF TEXAS COUNTY OF HARRIS f 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 the law firm of SEWELL & AXGGS, A PROFESSIONAL CORPORATION, 333 Clay Avenue, Suite soo, Houston, Texas 77002, hereinafter called "Law Firm". Y. City agrees to employ and does hereby employ Law Firm to collect by lawsuit or otherwise all delinquent ad valorem tuxes, penalty and interest owing to city and all other taxing jurisdic- tions whose taxes are collecte4 by City. Delinquent taxes shall become subject to the terms of this contract when placed in litigation or thirty -one (31) days after the tax collector delivers notice of delinquency and of the additional penalty to the property owned whichever date is sooner. However, the taxes becoming delinquent in 1994 and subsequent years shall become subject to the terms of this contract when placed in litigation or on the first day of July of the year in which the taxes become delinquent, whichever date is sooner. Ii. Law Firm will endeavor to call to the attention of the collector or other officials any errors, double assessments or • other discrepancies in the City's tax rolls which it observes during the progress of the work and will intervene on behalf of • City in all suits for ad valorem taxes hereafter filed by any taxing unit on property located within City's corporate limits. III. City agrees to authorize by ordinance, in a manner which complies with Texas Tax Code Section 33.07(x), an additional penalty to defray costs of collection in an amount equal to 15V of the amount of taxes, penalty and interest due for taxes that remain delinquent on auly 1 of the year in which they become delinquent. Law Firm agrees to prepare and mail the notice of delinquency and or the additional penalty to the property owners pursuant to Texas Tax Code S 33.07(d)., City agrees to cooperate and cause collector to cooperate with zaw Firm in the preparation and delivery of such notices, including but not limited to providing complete and accurate delinquent tax rolls and related file's to Law Firm on or before April 30 of each year during the term of this Contract. IV. City agrees to pay to Law Firm as compensation for the services required hereunder the fees from Section 33.07 or Section 33.48 of the Texas Tax code actually recovered by City from the collection efforts of Law Firm as and when collected during the terra of this Contract and for one year after its expiration if the collection of taxes is attributable to judgments obtained by Law Firm. Law Firm agrees that neither- the additional penalty allowed by Section 33.07 nor the attorney fees allowed by Section 33.48 Will attach to payment agreements in existence and in good standing • as of the date of this Contract. All compensation above provided 2 • • for shall become the property of Law Firm at tha time payment of the taxes, penalty and interest is made to the collector. The collector shall pay all funds collected on behalf of Law Firm monthly, with payment by the 15th day of the month following collection by City. Interest on late payments shall be payable as provided in Tex. Rev. civ stet. art'. 601f. V. Law Firm may request that City adopt an ordinance which would impose the additional penalty for tax collection provided by Texas Tax Code § 33.07 applicable to all prior years. In return for City's approval of said ordinance at Law Firm's request, Law Firm Agrees to defend at no cost to City any litigation challenging the legality of said ordinance and further agrees to indemnify and hold harmless City from any litigation challenging the application of the additional penalty provided by Texas Tax Code S 33.07 to prior years. Vi. Law Firm shall not sell, assign, or transfer any of its rights or obligations. under this contract in whole or in part without written consent of City, nor shall Law Firm assign any monies due or to become due to it hereunder without the previous consent of City. VII. This contract is drawn to cover a period of two years beginning September 1, 1993. Thereafter, this contract will continue on a month -to -month basis until such time as city notifies 3 0 C7 Law Firm that it does not wish to continue the contract. During any period, this contract may be terminated by either party by the giving of thirty (30) days written notice thereof to the other party. Law Fiz-m shall have six months following termination of the contract to reduce to judgment all suits filed prior thereto, but Law Firm shall be entitled to the compensation described in Paragraph Iv hereof attributable to such judgments for twelve (12) months after termination of the Contract if such judgments shall be reduced to payment to the City. After the expiration of the six month period, Law Firm agrees to return any and all files, whether In lawsuit, judgment, or otherwise. In consideration of the terms and compensation herein stated, Law Firm hereby accepts said employment and undertakes the performance of the contract. This contract is executed on behalf of City by its Mayor, who has been authorized to execute this instrument. SIGNED. in duplicate originals this the 24 day of • ti H: WSERS \LHUBDARO \RBS\BAY70WN.CZ Printed September H. 1993 1993, at Harris county, Texas. N CITY OF BAYTOWN, TEXAS By • • Pete C. Al aro, Mayor SEWELL & RIGGS A Prof_eAsionai Co ration By: Randall B. Strop