HomeMy WebLinkAbout06-27-1989
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AGENDA
CITY OF DENTON CITY COUNCIL
June 27, 1989
Special Called Session of the City of Denton City Council on
Tuesday, June 27, 1989, at 7:00 p.m, in the Civil Defense Room
of City ilall, 215 E. McKinney, Denton, Texas at which the
following items will be considered:
7:00 p.m.
1. Ordinances
A. Consider adoption of an ordinance authorizing the ,
Mayor to execute a contract for the collection of
delinquent taxes.
2. Consider approval of an appointment to the Civil
service commission.
3. Consider Mayor's appointments to the Denton Housing
Authority.
II 4. Discuss Council rankinj of City Goals.
{ S. Council-Manager discussion of major issues relative to
1 the 1989-90 budget.
E, Executive Session:
A. Legal Matters Under Sec. 2(e), Art. 6252-17
V.A.T.S.
B. Real Fstate Under Sec. 2(f), Art. 6252-17
V.A.T.S.
C. Personnel/hoard Appointments Under Sec. 2(g),
Art 6252-17 V.A.T.S.
1. Consider appointments to the Board of
Adjustment, Building Code Board, Cable T. V.
Advisory Board, Citizens ^raffic Safety
Support Commission, Electr j~ Code Board,
Historic Landmark Commission, and the Human
Services Committee.
C E R T I F I C A T E
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I certify that the above notice of meeting was posted on the
bulletin board at the City Hall of the City of Denton, Texas,
on the _ _ day of i 1989 at o'clock
(a.m.) (p.m.)
CITY SECRETARY J~
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CITY of DRAITON, TEXAS lib E. MCKfNNEY / DENTON, TEXAS 762011 TELEPHONE (817) 668.8200
MEMORANDUM
DATEI June 22, 1989
TOI Lloyd V. Harrell, City Manager r
THRUI John F. McGrane, Executive Director of Finance
FROMI Jim L. Bunyard, Treasurer
SUBJECrI RECOMMENDATION OF LAW FIRM FOR THE COLLECf1ON OF DELINQUENT PROPERT1f
l TAMI
f As you realize, one of the major revenue sources to the General Fund is from
property taxes. This is in the form of current year taxes and delinquent tax
collections.
i j As the Texas economy has been in an economic "trough" the past several. years,
increases in bankruptcies, layoffs, and further declining sob opportunities
have been factors in the amount of increasing delinquent tares and the
collection of those taxes has become an important role and challenge for the
city of Denton.
This year we were fortunate to attract proposals for the collection of
delinquent taxes from three firms that have solid reputations in the area of
delinquent tax collections. There were Sallinger, Nichols, Jackson, Kirk &
Dillard McCreary, Veselka, Beck & Allen, and Heard, Goggan, Blair &
Williams. Each of these firms has as clients, cities, school districts and
appraisal districts in and around the metroplex area. Each firm's proposal
has been analyzed as to the specific requests made by the City.
Each firm has been checked as to references and their ability to handle the
City of Denton account. Two of the threa firms submitting proposals have
offices located in Denton, the third would open an office in Denton. All
three firms would charge the City 15X of the amount of all delinquent tax
amounts collected. However, in this area of compensation, the bidding became
creative and certain incentives became apparent. One firm offered cash
assistance while another offered assistance in the upgrading of our current
tax system and additional computer hardware. Both of these proposals enable
the City to make improvements in the current tax system which has been a
priority item for the vast several years.
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Memo to Lloyd V. Harrell
June 22, 1989
Pug(; 2
Th: firms of McCreary, Veselka, Beck & Allen and Heard, Goggan, Blair &
Willisms became the key competitors with ea4:h havLng a Denton office, each
being cognizant of the Denton tax environment and each being a major player in
tix collection state wide.
's'he McCreary firm made an excellent preaentatton, and was willing and able to
provide assistance regarding any questions on the submitted proposal. Their
documentation was complete and they submitted impressive charts relating to
their collection experience in Denton county and several other
municipalities. The McCreary firm represects Denton County, DISD, Argyle ISO,
Ponder, Ponder ISb, Sanger, Sanger ISO. Aubrey, Aubrey ISO, Pilot Point ISO
and Corinth MUD dl. The total number of accounts on the tax roll for these
entities is 174,400D. Of this total, approximately 52,500 are delinquent
accounts. ConsJdering a staff of live, this breaks down to approximately
10,500 delinquent accounts per employee. References from these entities
ranged from good; pleased with the jobs satisfactory performance and, would
like to see the attorney more.
Clearly, them were no negative comments regarding the McCreary firm and I
would have no hesitancy in recommending their firm based on performance,
1 ability to nark with the City, references, their creativity in the bidding
process and their overall desire to do business with the City of Denton.
Their bid was very professionally handled.
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The Hcaed firm likewise has proved from past performance, not only in Denton
but tnroughuut the state, that they also have an extremely good performance
recore. In reviewing these firm's proposals, the key focus has been and will
continue to be "what is in the best interest of the City as a whole". Using
thia criteria and based on three years of performance, the continulty of a
successful program and using competitive balance as a factor, it Is
recommended that we enter into a new two year contract with a two-year City
option with the law firm of Heard, Goggan, Blair & Williams for the collection
of delinquent taxes.
The first year the City of Denton employed HG B&W, collectiou of delinquent
taxes increased by 2222. For a two year period, HGB&W collected 41,397,000.
The thitd year totals showed 42,209,434 collected by HGB&W for the City. The
annual increases in collection have average over 20%.
This past year, HGB&W sent 8,701 demand letters, filed 377 lawsuits to collect II
4733,581 and currently has 28 pending bankruptcies from a total of 325 J
bankruptcy filings.
HGB&W have been very aggressive in filing lawsuits as the following points
out. Of the 378 lawsuits filed by the DISD, 371 of those were initiated by
the City and the school district later enjoined. During the past six months,
Courthouse records from December 1988 to May 1989, indicate tax lawsuits filed
on behalf of Denton County were 37, DISD 29, and 68 on behalf of City. I
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Memo to Lloyd V. Harrell
June 22, 1989
Page 3
As the City of Denton is the only Denton account of HGB&W, their staff of one 1
regular full-time employee and one regular part-time employee is devoted to 1
our tax delinquencies. This relates to 5,400 accounts per employee.
Competitive balance is also a factor in this recommendation. If all three
Denton entities used the same firm, comparative analysis would be lost and
appraisal of the system could only be judged on previous history not on
current situations, economic conditions, or current competition.
Our decision, taking all these tWora into consideration, warrants the
continuation of a successful collection program with F:eard, Goggan, Blair and
W1111ams.
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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR THE
COLLECTION OF DELINQUENT TAXES; AND PROVIDING FOR AN EFFECTIVE
DATE.
THE-COUNCIL OF THE CITY 0'? OENTON HEREBY ORDAINS:
SECTION I. That the Nayor is authorized to execute a
contract for the collection of delinquent taxes with Heard,
Goggan, Blair & Williams, a copy of which is attached hereto and
incorporated with reference herein.
SECTION II. That this ordinance shall become effective
immediate-Iy upon its passage and approval.
PASSED AND APPROVED this the _ day of
1989.
YOR
RAY -STEPHEAS,I
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APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY:
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CONmcr FOR THE COLLECTION OF DELINQUENT TXXES
THE STATE OF TEXAS
t
COUNTY OF DENTON
THIS CONTRACT is made and entered into by and between the CITY OF
Par yTa d, HEARD, RD, herein GOCGYAN, through & t egMLLWIS, gg Attorneys at hereinafter i aw, First
ter
_ called Second Party, ,a
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First Party agrees to employ and does hereby employ Second Party to enforce
by suit or otherwise the collection of all delinquent taxes, ppenalty and interest, on
behalf of the CITY OF DEMON within the CITY OF DEN ON, owing to the CITY
OF DENTON provided current year taxes falling delinquent within the period of this
contract shall become subject to its terms on the first day of July of the year in
which the same shall become delinquent except that suits and banlvuptcy cases
resolved before the first day of July must include current year delinquent taxes,
which are also subject to the terms of this contract.
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Second Party is to call to the attention of the collector or other officials any
errors, double assessments, or other discrepancies coming under their observation
during the txes progress hereafter the filed work, by any is IWng intervene
suits for
on on
prrbehal operty located pwithin its
geographical limits.
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First Party agrees to furnish delinquent tax statements to Second Parry on all
property within the taxing jurisdiction, Second Party will furnish forms Tor said
statements on request and will assume responsibility for having penalty and interest
computed on statements before such statements are mailed to property owners.
!v.
Second Party agrees to file suit on and reduce to judgment and sale any
property located with the CITY OF DENTON against which a tax lien would prevail
provided, First Patty will furnish the necessary data and information as to the
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name, identity, and location of the necessary parties, and legal description of the
property to be sold Second Party agrees to sue for recovery of the costs as court
costs as provided by Tex. Prop. Tax Code Sec. 33.48 (Vernon 1979).
V.
Second Party agrees to make progress reports to First Party on request, and
to advise First Party of all cases where investigation reveals taxpayers to be
6nancially unable to pay their delinquent taxes.
Vi.
First Party agrees to ppaay to Second Party as compensation for services
required hereunder fifte-.n (3S) percent of the amount collected of all delinquent
collected
taxes, penalty and interest of the yeah covered by this contract, actually
and paid to the coU vtor of taxes during the term of this contract as and when of the collected. All compensation above provided for& become er~t
propene to the
Second Y rty+ at the time payment of taxes, penalty check.
collector. The collector shall pay over uld funds monthly by
VII.
Second Party shall undertake the collection of delinquent accounts for paving
assessment Uens, substandard housing demolition liens and weed liens. The
collection of these accounts shall be undertaken on the basis of attorneys fees
assessed to and collected from the debtors. First Party agrees pay Second
liens, substandard housing demolition liens, andgweed
accounts for paving amoun
liens.
VIII.
This contract is drawn to cover a period of two (2) years beginning July 1,
1989, and ending June 30. 1991. First Party shall We the option exercisable at
any time that this contract is in force to renew and extend this contract 1 on it
identical terms for one additional two (2) yyeeaarr
On termination of this contract, Second Party shall have in additionshesix ~tQo thsst
after termination to reduce to Judgment all suits filed prior mentioned, and provided further that Second Party shall handle to conclusion all
suits in which trW court judgments are obtained during the period of this contract
and which are appealed by my parry. In consideration of the terms and
said empl oym eat ancompensation hetein stated, Second Party hereby accepts, Y
undertakes the performance of this contract as above wrtten. First sbell
have the right tsooner terminate this coctrut for cause, giving thirty (30 dn.
written notice, of such intention, with it a tecentt of the ca~otyr tasoeu s f6ingu such
termination, after giving Second P" Second Party A411 be entitled to
rectifying the same. In case of such termination, receive and retain all compeaudon due up to the date of said termination.
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IX.
Second Party agrees to assist First Party with the installation and implementation of
a computerized tax collection system ("System"). Such assistance shall include but not be
limited to the following:
1. Reimbursement of First Party's fees for the purchase costs, programming costs
and expenses for the Installation and customization of the system for a sum not
to exceed $6,000. First Party shall is voice Second Party for the monies due the
City pursuant to this section. Second Party shall reimburse the City within
thirty (30) days.
2. Payment to First Party of the sum of $2,000 for the purchase of additional
hardware for First Party's Finance Department.
3. Upon request, Second Party's Data Processing Manager and programming staff
will provide consulting expertise and project oversight for Installation of the
system.
X.
This contract is executed on behalf of First Party by the presiding officer of its
governing body who is authorized to execute this instrument by order heretofore passed
i and dully recorded in its minutes.
WITNESS the signatures of all parties hereto In triplicate originals this, the _ day
of AD 1989, DENTON COl1NTY, TEXAS,
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i, CITY C:? DENTON HEARD, GOGGAN, BLAIR & WILLIAMS
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BY: BY:
RAY STEPHENS, MAYOR STEVE BLAIR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
- APPROVED AS TO LEGAL FORM:
j DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY: +
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C1TYo10ffNT0N, TEXAS MUNICIPAL BUiLDINO / DENTON, TEXAS 78200 / TELEPHONE (St?) 688.8307
Office of the City Manager
M E M O R A N D U M
TO: Mayor and Mombers of the City Council
FROM: Lloyd V. Harrell, City Manager
DATEI June 16, 1969
f SUBJECT: RECOMMENDATION FOR APPOINTMENT TO THE CIVIL
SERVICE COMMISSION
Poe consideration by the City Council, I would recommend that
Dr. Derrell Bulls be reappointed to the Civil Service
Commission. Terms on the Commission are for three yP,ars. Dr.
Bulls was appointed to Place 1 in 1983 and 0 completing his
second term.
For youe information, the other members and their terms are as
follows:
Place 2 Frank Davila 1988-90
Place 3 Jack Miller 1968-91
Should you have any concerns regarding this reappointment,
please contact me. Otherwise, t will make a formal
recommendation at the June 20, 19E9 meeting. Thank you for
your consideration of this appointment.
Lloyd V. Harrell
City Manager
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CITY of DENTON. TEXAS
CITY HALL. 215 E WKiNNEY S7., DENTON, TEXAS 76201
Omce of the Mayor, Say Stephens (817) 5M-W7
CERTIFICATE OF APPOINTMENT OF COMMISSIONERS
OF THE HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS
WHEREAS. the City Council of the City of Denton passed
a resolution on the 14th day of April, 1980 creating the
Housing Authority of the City of Denton, Texas; '
NOW, THEREFORE, pursuant to the provisions of said
` resolution and Article 12691, Section 5, V.A.C.S. and by virtue
of the authority vested in me as Mayor:
I hereby appoint the following individual(s) to serve
as Commissioners of the Housing Authority of the city of
Denton, Texas, and to serve for the t4rm of office as indicated:
Rev. George Edwards, Jr. 1989-91
William Wilson 1909-91
Barbara Fisher 1989-91 -
Weston Blair 1988-90
Charles Glasgow 1988-90
I hereby certify that none of the above designated
Commissioners is an officer or employee of the City of Denton,
Texas.
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IN WITNESS WHEREOF, I have hereunto signed my name as
Mayor of the City of Denton, Texas, and caused the official
seal of said City of Denton, Texas, to be attached hereto
this day of 19
MAYOR -
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ATTEST:
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CITY SECRETARY
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MUNIC(PAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 666-8307
CITY of DENTON, TEXAS office of the City Manager
P
MEMORANDUM ~
TO: Lloyd V. Harrell, City Manager
FROM, Jesus Nava, it.. Assistant to the City Manager
DATE: June 22, 1989
SUBJECT: Council Ranking of City Goals
at sthof the e Council's Council/Staff Retreatgoals and
Attached
pr are results
k k Public Safety received the highest ranking of 5.8, followed by
Economic Development and Illegal Drugs which ranked equally at
areas of Please that the previously items with goal sent new
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ato the Cit Manager
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Attachment
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June 22, 2989
CITY OF DEN1'ON
COUNCIL RANKING OF CITY GOALS
RANK: GOAL TOTAL AVERAGE,
SCORE SCORE:
1 PUBLIC SAFETY 35 5.8
2 ECONOMIC DEVELOPMENT 33 5.5
3 ILLEGAL DRUGS * 33 5
4 CITY BEAUTJFICATION 30 5 0
5 EMPLOYEE HLALTH CARE * 29 4.8
6 SOLID WASTE * 29 4.8
7 ENERGY ISSUES 29 4.0
9 IMPROVE RELATIONS WITH MINORITIES 27 4.5
9 ANALYZE DEVELOPMENT PROCESS 26 4.3
10 FINANCIN3 OPERATION; 26 4.3
It SPACE FLAN 26 4.3
12 TRANSPORTATION 26 4.3
13 EMPLOYEE SALARY S WAGE GUIDELINES * 25 4.2
14 IMPROVE CITY II✓AGE 25 4.2
15 DATA PROCESSING * 24 4.0
16 DOWNTOWN DEVELOPMENT 24 4.0
17 MUNICIPAL COUR'E OF riECC.IRD 23 3.8
1B NEIGHBORHOOD IDENTITY 22 3.7
19 CITIZEN INVOLVEMENT IN CITY GOVT * 20 3.3
20 LIBRARY EYPANSION * 20 3.3
21 HOUSING GOALS 19 3.2
22 LALOR TAX * 18 3.0
23 INIERLOCAI./INTERGOV'T RELATIONS 18 3.0
24 HISTORICAL PRESERVATION * 17 2.8
25 REGIONAL WATER SYSTEMS 17 2.8
26 USER FEES 17 2.8
i17 PUBLIC HEALTH SERVICES 17 2.8
28 ANNEXATIO14 & CITY SERVICES * 16 2.7
29 CITY COUNCIL REDISTRICTING * 14 2.3
:30 HUMAN 6ERVICES FUNDING * 14 2.3
31 INTERDEPA'4ThENTAL COMMUNICATIONS * 12 2.0
AVERA3E SCORE 23 3.8
* DENOTES A NEW GOAL
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CITY Of DENTON 1215 E, McKinney/ Denton, Texas 76201
~E~~it~IVDU~
DATE: June 27., 1989
TO: The Honorable Mayor and Members of the City Council
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FROM: John F. McGrane
SUBJECT: AGENDA BACKUP FOR MAJOR BUDGET ISSUES DISCUSSION
The Major Budget Issues Report for fiscal year 1989/90 is being
i submitted with your agenda package under separate cover. This
document and the discussion of budget issues at Tuesday's V
Council meeting begins the Council's budgetary review process.
If you need any additional information prior to Tuesday's
meeting, please feel free to contact me.
t
n crane
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