Ordinance No. 14,798 ORDINANCE NO. 14,798
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, PAYMENTS IN LIEU
OF TAXES, PUBLIC IMPROVEMENT DISTRICT ASSESSMENTS, 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, public improvement district assessments, 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 aftirinative vote of the City Council of the
City of Baytown, this the 12"' day of August, 2021.
ANDON CAPETILL0.1 Mayor
ATTEST: e NYTOWV
0
•
ANGELA J CKSON, i tam le
•1
APPROVED AS TO FORM:
KA L. HORNER, City Attorney
R:\Karen Hornee Doc uments`FileslCity CounciC,.ordinances,20211Augusl 12,TaxCollectioaContract.docx
Exhibit "A"
CONTRACT
FOR THE COLLECTION OF
DELINQUENT TAXES AND PAYMENTS IN LIEU OF TAXES
STATE OF TEXAS ti
COUNTY OF HARRIS ti
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 Z, 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,twenty-one(2 1)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, payments in lieu of taxes (PILOT), and public
improvement district assessments,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 valorern
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
III.
Each year during the term of this Agreement,Attorney shall meet or exceed collection benchmarks
established by the Director of Finance (the "Director") in writing. Should Attorney believe that the
benchmarks established are not reasonable, Attorney provide written notice to the Director within ten(10)
days of receipt of the same and set forth the reasons that the benchmarks are not reasonable. Thereafter the
Director and Attorney shall meet and agree in writing on collection benchmarks. Failure to meet the
established benchmarks is grounds for the City to terminate this Contract for cause pursuant to Article X1
hereinbelow.
IV.
City has authorized by ordinance, in a manner which complies with the TEX.TAX CODE 533.07(a),
an additional penalty pursuant to TEX.TAX CODE§33.08 and the Code of Ordinances, Baytown, Texas,to
defray costs of collections for all services required herein. 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 payoff 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.
V1.
City agrees to pay Attorney as compensation for the services required hereunder the fees from TEX.
TAX CODE ti§ 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 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 fifteenth (151h) day of the month following collection by City.
Interest on late payments shall be payable as provided in Texas Government Code Section 2251.025.
Contract for the Collection of Delinquent Taxes, Page 2
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 EXPRESS
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 DAMAGE(S). 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.
IX.
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.
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes,Page 3
X.
This Contract shall be effective on October 1, 2021, and, with the exception of the reporting
requirements, shall expire, if not before tenninated,on September 30,2023. 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 tenn 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 3011' 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 tenninated by
the City without cause, Attorney (1) 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(12)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 tenn 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:
1. 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).
This information is contained in the Monthly Tax Collectors report. Included with this
information shall be a calculation of the percent of collections for each tax year for that
month,quarter-to-date and year-to-date(calculated as collections/beginning balance=%
collections).
2. Lawsuits(Original Petitions) filed during the reporting period;
3. Interventions filed during the reporting period;
Contract for the Collection of Delinquent Taxes, Page 4
4. Lawsuits pending;
5. 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 (30111) 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 infonned 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
3. Annual Collection Fees received by Attorney.
This annual report shall be due on November 30",of each year.
Failure to provide a report, when due is grounds for the City to terminate this Contract for cause.
pursuant to Article XI.
XIII.
This Contract shall not bestow any rights upon any third party, but rather, shall bind and benefit
the Attorney and the City only.
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes,Page 5
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 Z
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 perfonnance.
XVII.
This Contract 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 perfonnance for all purposes shall be Baytown, Harris County,Texas.
XVIII.
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.
Contract for the Collection of Delinquent Taxes,Page 6
XIX.
All parties agree that should any provision of this Contract be detennined to be invalid or
unenforceable,such determination shall not affect any other term of this Contract, which shall continue in
full force and effect.
XX.
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.
XXI.
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 ,2021,in Harris County,
Texas.
CITY OF BAYTOWN,TEXAS
RICHARD L. DAVIS,City Manager
ATTEST:
ANGELA JACKSON, Interim City Clerk
Contract for the Collection of Delinquent Taxes
and Payments in lieu of Taxes,Page 7
APPROVED AS TO FORM:
KAREN L. HORNER,City Attorney
ATTORNEY
RANDALL B. STRONG
STATE OF TEXAS §
§
COUNTY OF HARRIS §
Before me, , the undersigned notary public, on this day personally
appeared Randall B. Strong, known to me to be the person whose naive 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 this day of ,2021.
Notary Public in and for the State of
Texas
My commission expires:
RAKaren Horner\Documents\Files\Contracts\Tax Collection Agreement\TaxCollectionContract RandyStrong2021-2023.doc
Contract for the Collection of Delinquent Taxes, Page 8