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Ordinance No. 8,043970828 -2 ORDINANCE NO. 8043 is AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A DELINQUENT TAX COLLECTION CONTRACT WITH RANDALL B. STRONG; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 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 the City Clerk of the City of Baytown to execute and attest to a contract with Randall B. Strong for the collection of delinquent taxes. A copy of said contract 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 28th day of August, 1997. 14-z�c? 4q!�— PETE C. ALFA O, Mayor ATTEST: EILEEN P. HALL, City Clerk APPROVED AS TO FORM: 4Aa C5211t O RAMIREZ, SR., Attorn ey 0 0 1\4yDocuments\CounciIVAeetings\ August \StrongDeIinquentTaYK.28.doc ® CONTRACT FOR THE COLLECTION OF DELINQUENT 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 Chambefs 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 503 Ward Road, Baytown, Texas 77520, hereinafter called "Attorney." 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 or on the first day of July of the year in which the taxes become delinquent, whichever date is sooner. 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 and will intervene on behalf of the City in all suits for ad valorem taxes hereafter filed by any taxing unit on property located within City's corporate limits. City has authorized by ordinance, in a manner which complies with the Texas Property Tax Code Section 33.07(a), an additional penalty to defray costs of collection in an amount equal to 15% of the amount of taxes, penalty and interest due for taxes that remain delinquent on July 1 of the year in which they become delinquent. Attorney agrees to prepare and mail the notice of delinquency and of the additional penalty to the property owner pursuant to the Texas Property Tax Code Section 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. Contract for the Collection of Delinquent Taxes, Page l D(HIB(T A r� ® IV As part of Attorney's collection responsibilities, 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. 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. 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. Additionally, Attorney shall file proofs of claims necessary to ensure that the City's ad valorem taxes retain their secured status; and shall include in such proof of claims all other monies owed to the City. V. City agrees to pay Attorney as compensation for the services required hereunder the fees from Section 33.07 or Section 33.48 of the Texas Property Tax Code 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 of taxes is attributable to judgments obtained by Attorney. All compensation above provided for shall become the property of Attorney at the time payment of the taxes, penalty and interest is made to the tax collector. 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. VI. Attorney may request in writing that City adopt an ordinance which would impose the additional penalty for tax collection provided by Texas Property Tax Code Section 33.07 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 PARAGRAPH IS INDEMNITY BY THE ATTORNEY TO INDEMNIFY AND PROTECT THE CITY FROM THE CONSEQUENCES OF THE CITY'S Contract for the Collection of Delinquent Taxes, Pale 2 1I ® 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 DAMAGE(S). VII. 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 Attomey assign any monies due or to become due to him hereunder without the previous consent of the City. VIII. This Contract is drawn to cover a period of twenty -five (25) months beginning September 1, 1997. Thereafter, 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. This Contract may be renewed for additional two (2) year periods upon written agreement of the parties. 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. Attorney shall have six (6) months following termination of the Contract to reduce to judgment all suits filed prior thereto, but Attorney shall be entitled to the compensation described in Paragraph V hereof attributable to such judgments for twelve (12) months after termination of the Contract if such judgments shall be reduced to pay to the City. After expiration of the six -month period, Attomey agrees to 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. However, it is expressly understood and agreed that should this Contract be terminated by the City due to a breach of the same by the Attomey, 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 paragraph, after the termination of this Contract. In consideration of the terms and compensation herein stated, Attorney hereby accepts said employment and undertakes the performance of the Contract. IM .Each month, Attorney shall provide the City with a written report, which shall include at a minimum, the following information: Financial Information (on a cumulative and reporting period basis); 2. Payment Agreements with No Lawsuits Pending; 3. Lawsuits Filed during the Reporting Period; 4. Interventions Filed during the Reporting Period; Contract for the Collection of Delinquent Taxes, Pale 3 r 5. Lawsuits Pending; 6. Lawsuits Dismissed; 7. Lawsuits Nonsuited; 8. Judgments; 9. Foreclosures/Tax Sales; and 10. Tax Warrants /Writs of Execution. Included in the above - referenced information shall be a detailed listing of each lawsuit and its status. Furthermore, each lawsuit which has had activity during a reporting period shall be noted. Such report shall be due on or before the thirtieth (30 ") day of the month following the end of the monthly reporting period. Quarterly, Attorney shall provide 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. These quarterly reports shall be due on or before the sixtieth (60`h) day of the month following the end of the quarterly reporting period. F:4 This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Attorney and the City only. XI. This Agreement 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. XII. All notices required to be given hereunder shall be given in writing either by telecopter, 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 ® 503 Ward Road Baytown, Texas 77520 Contract for the Collection of Delinquent Taxes, Page 4 CITY City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 XIII. 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. XIV. This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. XV. All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. 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 day of August, 1997, in Harris County, Texas. Contract for the Collection of Delinquent Taxes, Page 5 CITY OF BAYTOWN, TEXAS PETE C. ALFARO, Mayor 0 ATTEST: EILEEN P. HALL, City Clerk APPROVED AS TO FORM: 4AITRAMIREZ, S ity Attorney ATTORNEY 1 RANDALL B. STRONG STATE OF TEXAS § COUNTY OF HARRIS § Before me 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 the same for the purposes and consideration therein expressed. SUBSCRIBEI i,QD SWORN before me this day of L V , 1997. `00% t/1ii/.% • _ 5 = N Pub in and for the to of exas v '% el OF It r••i IR c:klh53\ Contracts\' I' axCollcctionContrac [.IZandyStrong Contract for the Collection of Delinquent Taxes, Page 6 CONTRACT FOR THE COLLECTION OF DELINQUENT 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 503 Ward Road, Baytown, Texas 77520, 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 or on the first day of July of the year in which the taxes become delinquent, whichever date is sooner. 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 and will intervene on behalf of the City in all suits for ad valorem taxes hereafter filed by any taxing unit on property located within City's corporate limits. City has authorized by ordinance, in a manner which complies with the Texas Property Tax Code Section 33.07(a), an additional penalty to defray costs of collection in an amount equal to 15% of the amount of taxes, penalty and interest due for taxes that remain delinquent on July 1 of the year in which they become delinquent. Attorney agrees to prepare and mail the notice of delinquency and of the additional penalty to the property owner pursuant to the Texas Property Tax Code Section 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. Contract for the Collection of Delinquent Taxes, Page 1 IV. As part of Attorney's collection responsibilities, 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. 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. 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. Additionally, Attorney shall file proofs of claims necessary to ensure that the City's ad valorum taxes retain their secured status; and shall include in such proof of claims all other monies owed to the City. V. City agrees to pay Attorney as compensation for the services required hereunder the fees from Section 33.07 or Section 33.48 of the Texas Property Tax Code 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 of taxes is attributable to judgments obtained by Attorney. All compensation above provided for shall become the property of Attorney at the time payment of the taxes, penalty and interest is made to the tax collector. 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. VI. Attorney may request in writing that City adopt an ordinance which would impose the additional penalty for tax collection provided by Texas Property Tax Code Section 33.07 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 PARAGRAPH IS INDEMNITY BY THE ATTORNEY TO INDEMNIFY AND PROTECT THE CITY FROM THE CONSEQUENCES OF THE CITY'S Contract for the Collection of Delinquent Taxes, Page 2 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 DAMAGE(S). VII. 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. VIII. This Contract is drawn to cover a period of twenty-five (25) months beginning September 1, 1997. Thereafter, 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. This Contract may be renewed for additional two (2) year periods upon written agreement of the parties. 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. Attorney shall have six (6) months following termination of the Contract to reduce to judgment all suits filed prior thereto, but Attorney shall be entitled to the compensation described in Paragraph V hereof attributable to such judgments for twelve (12) months after termination of the Contract if such judgments shall be reduced to pay to the City. After expiration of the six-month period, Attorney agrees to 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. However, it is expressly understood and agreed that should this Contract be terminated by the City due to a breach of the same by the Attorney, 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 paragraph, after the termination of this Contract. In consideration of the terms and compensation herein stated, Attorney hereby accepts said employment and undertakes the performance of the Contract. IX. Each month, Attorney shall provide the City with a written report, which shall include at a minimum, the following information: 1. Financial Information (on a cumulative and reporting period basis); 2. Payment Agreements with No Lawsuits Pending; 3. Lawsuits Filed during the Reporting Period; 4. Interventions Filed during the Reporting Period; Contract for the Collection of Delinquent Taxes, Page 3 5. Lawsuits Pending; 6. Lawsuits Dismissed; 7. Lawsuits Nonsuited; 8. Judgments; 9. Foreclosures/Tax Sales; and 10. Tax Warrants/Writs of Execution. Included in the above -referenced information shall be a detailed listing of each lawsuit and its status. Furthermore, each lawsuit which has had activity during a reporting period shall be noted. Such report shall be due on or before the thirtieth (30th) day of the month following the end of the monthly reporting period. Quarterly, Attorney shall provide 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. These quarterly reports shall be due on or before the sixtieth (60th) day of the month following the end of the quarterly reporting period. X. This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Attorney and the City only. XI. This Agreement 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. XII. 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 503 Ward Road Baytown, Texas 77520 Contract for the Collection of Delinquent Taxes, Page 4 CITY City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 XIII. 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. XIV. This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. XV. All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. 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 ,2 f day of August, 1997, in Harris County, Texas. CITY OF BAYTOWN, TEXAS /4,6..GAS % -44.4' PETE C. ALFARO, Mayor Contract for the Collection of Delinquent Taxes, Page 5 ATTEST: EILEEN P. HALL, City Clerk APPROVED AS TO FORM: ACIO RAMIREZ, S ity Attorney ATTORNEY RANDALL B. STRONG STATE OF TEXAS COUNTY OF HARRIS Before me 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 the same for the purposes and consideration therein expressed. SUBSCRIBE Q D SWORN before me this;) ay of i, U, , 1997. =•_ za dr.i a -41/ff111o1111111�\��\ c: k1h53\Contracts\TaxCol IectionContract. RandyStrong Contract for the Collection of Delinquent Taxes, Page 6