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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Materials Management CM: Todd Hileman DATE: April 3, 2018 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute a three (3) year Professional Services Agreement with Sawko and Burroughs, P.C., for Professional Services related to collection of delinquent taxes on behalf of the City of Denton; and establishing an effective date. (File 6770) BACKGROUND The City of Denton’s contract for delinquent property tax collection services was originally awarded to the law firm of Sawko & Burroughs, LLP, on July 1, 2005. The City of Denton approved a new contract for delinquent tax collection services with Sawko & Burroughs on November 4, 2008, following an extensive Request for Proposal (RFP) process. The original contract stipulated an initial term beginning December 1, 2008, and ending June 30, 2011, and it now expires in June 2016 as a result of various contract extensions. On June 28, 2016, the City Council, following an extensive Request for Qualifications (RFQ) process, awarded Sawko & Burroughs a two (2) year contract that is due to expire on June 30, 2018. According to state statute, law firms receive a 20% fee for collection services associated with delinquent property taxes. These fees are in addition to the actual amount of delinquent taxes owed and are paid by the delinquent taxpayers, not the City of Denton. Since collection fees are established by statute, an evaluation of potential services is limited to a review of a particular law firm’s historical collection performance, professional qualifications, and collection procedures. On March 20, 2018, staff briefed the City Council in a work session on options related to this service. Council directed staff to bring back a 3 year agreement with Sawko & Burroughs for their consideration in light of the firm’s past performance and good standing. According to the contract, collections are required to be at least 60% of current year delinquencies, and 30% of all prior year delinquent amounts. City staff has independently reviewed the performance of Sawko & Burroughs and determined that the firm has exceeded the contractual requirements. Consequently, staff has been satisfied with the performance of the firm. RECOMMENDATION Staff recommends approval of a three (3) year contract, expiring April 3, 2021. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract, expiring April 3, 2021. PRINCIPAL PLACE OF BUSINESS Sawko and Burroughs, P.C. Denton, TX STRATEGIC PLAN RELATIONSHIP The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS 1. Agenda Information Sheet 2. Contract 3. Staff Memorandum 4. March 20th City Council Presentation 5. Ordinance Respectfully submitted: Karen Smith, 349-7100 Purchasing Manager For information concerning this acquisition, contact: Tony Puente, Jr. at 940-349-7283.