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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: March 22, 2022 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Sawko and Burroughs, P.C., for delinquent tax collection services on behalf of the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFP 7907 – awarded to Sawko and Burroughs, P.C., for a three (3) year term). INFORMATION/BACKGROUND The proposed contract is for the collection of delinquent property taxes. The City currently contracts with Sawko and Burroughs, P.C. for delinquent tax collection services since 2005. City Council awarded Sawko & Burroughs, P.C. a three-year agreement that was extended for one-year and set to expire April 1, 2022. The City issued a Request for Proposals (RFP) in December 2021. After evaluating the initial responses, City staff conducted interviews with the top two ranked firms. According to state statute, law firms receive a 20% fee for collection services associated with delinquent property taxes. The collection service fee is in addition to the actual amount of delinquent taxes owed and is paid by the delinquent taxpayer, not the City of Denton. Since collection fees are established by statute, an evaluation of potential services is limited to a review of a law firm’s historical collection performance, professional qualifications, and collection procedures. According to the contract, collections are required to be at least 60% of current year delinquencies, and 30% of all prior year delinquent accounts. City staff has independently reviewed the performance of Sawko and Burroughs and determined that the firm has exceeded the contractual requirements. Staff has been satisfied with the performance of the firm and the services provided. Request for Proposals (RFP) for delinquent tax collection services was sent to 401 prospective firms, including 43 Denton firms, for these services. In addition, the RFQ was placed on the Procurement and Compliance website for prospective respondents to download and advertised in the local newspaper. Three (3) statement of qualifications (SOQ) were received. The SOQs were evaluated based on published criteria including collections records, experience and clarity of the proposal, and soundness of the approach. Based upon this evaluation, the recommended award is to Sawko & Burroughs, P.C., and is determined to be the most qualified firm for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com NIGP Code Used for Solicitation: 961 - (Service Only) - Miscellaneous Services, No. 1 (Not Otherwise Classified) Notifications sent for Solicitation sent in IonWave: 401 Number of Suppliers that viewed Solicitation in IonWave: 10 HUB-Historically Underutilized Business Invitations sent out: 35 SBE-Small Business Enterprise Invitations sent out: 182 Responses from Solicitation: 3 RECOMMENDATION Award a contract with Sawko and Burroughs, P.C., for delinquent tax collection services on behalf of the City of Denton, in a three (3) year term. PRINCIPAL PLACE OF BUSINESS Sawko and Burroughs, P.C. Denton, TX ESTIMATED SCHEDULE OF PROJECT This is a three (3) year contract. FISCAL INFORMATION The services are paid by the delinquent taxpayers and collection services are capped by state statute at 20%. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Sheet Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Cassey Ogden, 940-349-7195. Legal point of contact: Marcella Lunn at 940-349-8333.