Loading...
HomeMy WebLinkAbout2005-164ORDINANCE NO. o?M,5- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH SAWKO & BURROUGHS, LLP, FOR PROFESSIONAL SERVICES RELATED TO COLLECTION OF DELINQUENT TAXES ON BEHALF OF THE CITY OF DENTON; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND ESTABLISHING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: That the City Manager is hereby authorized to execute a Professional Services Agreement with Sawko & Burroughs, LLP, in substantially the form attached and incorporated herein by reference. SECTION 2: That the expenditure of funds as provided in the attached Professional Services Agreement is hereby authorized. SECTION 3: That this ordinance. shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2005. zazi'� Ae'� EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPRO D AS LEGAL FORM: EDWIN SNYDER, INT-jRIM CITY ATTORNEY C SAW, Documemsbrdinan¢s\OS\delinquent tss rollcmion ordinance. dun CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THE STATE OF TEXAS COUNTY OF DENTON THIS CONTRACT is made and entered into by and between the City of Denton, 215 East McKinney, Denton, Texas 76201 (hereinafter, "CITY"), acting herein by and through its governing body, and the Law Firm of Sawko & Burroughs, L.L.P., I100 Dallas Drive, Suite 100, Denton, Texas 76205 (hereinafter, "FIRM"). 1. EMPLOYMENT OF FIRM CITY agrees to employ, and does hereby employ, FIRM as an independent contractor. FIRM hereby agrees to enforce, by suit or otherwise, the collection of all delinquent taxes, penalties, and interest owing to CITY. A. FIRM shall initiate collection on current and prior year delinquencies as of July 1, 2005, and shall initiate collection on subsequent delinquencies as of each subsequent July ls` anniversary. B. With respect to delinquent personal property taxes only, FIRM shall have the option to initiate collection on March 1'a of the year in which they become delinquent; however, CITY shall not owe FIRM a fee on current year delinquent personal property taxes collected between March I" and June 30t', unless attorney fees are collected pursuant to Tex. Prop. Tax Code §33.48. C. FIRM shall perform all those services set forth in CITY's Request for Proposals ("RFP") dated April 12, 2005 (Exhibit A), the addendum dated April 28 2005 (Exhibit B) and FIRM's response to the RFP dated May 10, 2005 (Exhibit C), which are attached hereto and made a part hereof, as if written word for word herein. D. The terms of this Contract control over the terms and conditions of the attached exhibits, in the event of a conflict. FIRM hereby agrees to perform these services with diligence and in accordance with the highest professional standards customarily associated with such services in the State of Texas. 2. PROVISION OF INFORMATION CITY agrees to furnish its delinquent tax information to FIRM on all property within the boundaries of CITY, including name, identity, location of necessary parties, and property descriptions. 3. INVESTIGATION AND ASSISTANCE FIRM agrees to investigate the address of each taxpayer, and the location of the property, where such information may be incorrect on the delinquent tax record. FIRM shall bring to the attention of the appropriate tax official of CITY any errors, double assessments, discrepancies, or inaccuracies detected by FIRM in the delinquent tax record. FIRM further agrees to provide CITY any advice or assistance in updating the tax rolls. Page 1 4. COLLECTION Upon initial receipt of computer readable delinquent tax records, FIRM agrees to initiate collection of the full amount due from each taxpayer. Within a reasonable time frame, but not more than 60 days from FIRM's receipt of the delinquent tax records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to each and every delinquent taxpayer, requesting said taxpayer to remit the full amount due and owing to CITY, except in cases where the taxes have been deferred or made the basis of a lawsuit against the Denton County Appraisal District to determine value. 5. REVIEW AND AUTHORIZATION TO SUE Following transmittal of the notice of delinquency as specified above, FIRM will aggressively pursue collection, in anticipation of litigation. CITY shall have absolute discretion over the decision to file suit. Transmittal of the delinquent tax information from CITY to FIRM shall constitute authorization to file suit, following the mailing of the initial notice of delinquency. Upon written notice, CITY may, at any time, withdraw authorization to file suit. CITY may at any time withdraw authorization to foreclose and sell the property, and said withdrawal shall be in writing. 6. LITIGATION RESPONSIBILITIES A. FIRM agrees to commence litigation, prosecute, and reduce to judgment all delinquent accounts, including all pending lawsuits that FIRM deems to warrant, or upon which CITY has specifically requested action in writing. Each suit filed shall seek: personal judgment against the individual taxpayer for all taxes upon which the taxpayer can be held personally liable; penalty and interest; foreclosure of any tax lien which may exist by operation of law; any and all court costs incurred in prosecuting the lawsuit; and any collection fees or attorney fees which the taxpayer is obligated to pay. FIRM shall perform litigation responsibilities and protect CITY's legal remedies, including appeals, preparation of any documents required, post -judgment activities, and any other actions necessary in order to collect the delinquent taxes. B. FIRM will assume the representation of CITY in all lawsuits, including all pending lawsuits, involving the collection of delinquent taxes and enforcement of tax liens, including, but not limited to bankruptcy litigation, claims, and actions required to be filed with federal agencies such as FDIC, FSLIC and RTC, interventions in suits filed on behalf of any other taxing units' current suits, and any other suit or litigation which may involve or relate to the collection of delinquent taxes. FIRM will inform CITY of any counterclaims or cross -actions filed against CITY. C. Upon request, FIRM agrees to provide legal advice and assistance to CITY in the acquisition of property for public purpose use, pursuant to the Property Tax Code. 7. TAXPAYER SERVICES In addition to litigation, FIRM further agrees to provide taxpayer service without charge. As such, FIRM agrees: (1) to provide CITY legal advice and written opinions regarding tax matters upon request; (2) to respond to taxpayer inquiries and to advise CITY, in writing; and (3) make any recommendations concerning installment payment agreements and settlement agreements proposed by the taxpayer. CITY shall have final determination in acceptance of all installment payments or Page 2 settlement agreements within parameters established by CITY. FIRM shall have discretion to enter into installment agreements, subject to CITY's prerogative of final determination. In all demand letters and all communications with taxpayers, FIRM shall inform and instruct the taxpayer to remit payment to CITY. If remittance is received by FIRM, it must be transmitted in its entirety to CITY and received for processing by 11:30 a.m., the following business day. Checks made payable to FIRM shall be endorsed by FIRM to CITY. No check, cash, or money order for payment of delinquent taxes shall be deposited in any FIRM account. 8. PROGRESS REPORTS FIRM agrees to make delinquent tax collection progress reports to CITY monthly and quarterly, in a format containing information requested by CITY's Assistant City Manager for Fiscal and Municipal Services. Progress reports may include, without limitation: a. Number and type of communication with delinquent taxpayers; b. Summary of all delinquent accounts collected; C. Number of suits filed; d. Detailed list of suits filed; e. Number of judgments rendered; f. Detailed list of judgments rendered; g. Number of warrants issued/served; h. Detailed list of bankruptcies and status of those properties; i. Number of properties submitted to courts for auction; j. Detailed list of properties submitted to courts for auction, with date submitted and most recent status; k. Number of properties sold; and I. Detailed list of properties sold or reverting to taxing entity because of non -sale. Within parameters established at the initiation of the collection program, FIRM shall advise CITY of any case in which FIRM's investigation has revealed that the taxpayer cannot be found, the enforcement of the tax lien cannot be accomplished, or further attempts at tax collection would be futile, and shall provide FIRM's recommendation regarding the proper disposition of the case. In such cases, CITY shall advise FIRM as to the appropriate disposition of the account. 9. COMPENSATION A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees to pay FIRM 20% of the total amount of all delinquent taxes, penalties, and interest for the tax years 3covered by this Contract, as authorized by Tex. Prop. Tax Code §6.30(c). All compensation set forth above shall become the property of FIRM at the time payment of taxes, penalties, and interest are received by CITY. The 20% collection fee will only be paid on taxes which remain delinquent after July 151 of the year on which they became delinquent, pursuant to Tex. Prop. Tax Code §33.07. Said collection fee will only be paid to FIRM after it has been received by CITY from taxpayer, or from forced sales. FIRM shall not be entitled to the aforesaid 20% unless and until FIRM has taken some action in connection with recovering delinquent taxes. The transmittal of a notice of delinquency shall constitute sufficient action in order to entitle FIRM to the aforementioned fee. As compensation for the services rendered hereunder by FIRM for the collection of taxes which are not eligible for the additional penalty authorized by Tex. Prop. Tax Code §33.07, and upon which suit has been filed, the compensation shall be reasonable attorney fees approved by the court, not exceeding 15% of the total amount of taxes, penalties, and interest due CITY. In no event shall FIRM be entitled to any fee, unless and until CITY actually collects the delinquent taxes, penalties, Page 3 interest, court costs, collection costs, or attorney fees from the taxpayer, or from the proceeds of a forced sale or foreclosure. In no event shall FIRM be entitled to any fee, unless said fee is collected by CITY during the term of this Contract, or fee is collected by CITY on accounts upon which FIRM is attorney of record at the time of judgment. CITY shall pay said fees to FIRM monthly by check. No interest shall accrue on any late payment. B. The compensation set forth in paragraphs 9, 10, and I3 of this Contract shall be the total compensation due from CITY to FIRM for all services provided pursuant to this Contract, and in no event shall FIRM seek any additional compensation from CITY. 10. COLLECTION OF OTHER DELINQUENT ACCOUNTS FIRM shall, upon written request of City, undertake the collection of delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens. The collection of these accounts shall be undertaken on the basis of attorney fees assessed to and collected from the debtors. CITY agrees to pay FIRM, as compensation, all amounts received as attorney fees on delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens which are collected as a result of FIRM's collection efforts during the term of this Contract. 11. CONFLICTS OF INTEREST FIRM agrees not to represent any client who has an adversary position with the City of Denton or engage in any conflict of interest, and agrees to comply fully with the Texas Disciplinary Rules of Professional Conduct (Subtitle G - Texas Government Code) for the duration of this Contract. 12. TERM This Contract shall have a term of three years, beginning on July 1, 2005, and ending on June 30, 2008. This Contract may be extended for two additional one-year terms, upon CITY giving written notice to FIRM of its desire to continue this Contract at least 30 days prior to the expiration of the initial three-year term. This Contract shall continue in full force and effect from month to month at the option of CITY, unless either party delivers written notice to the other party of its intent to terminate this Contract at least 30 days prior to the date of the intended termination. FIRM shall have an additional six months to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy claims filed prior to the termination date, and shall have the exclusive right to compensation of fees earned due to these suits during this six month period. CITY shall have the right to sooner terminate this Contract by giving 30 days' written notice of such intention, or in the event of any of the events taking place under Section 33 `Termination of Agreement" of this Contract. In case of such termination, FIRM shall be entitled to receive and retain all compensation due up to the date of said termination. Upon termination, FIRM shall immediately deliver all files in their entirety to CITY at no cost to CITY. 13. ATTORNEY FEES In eminent domain and other judicial proceedings, FIRM will be entitled to only those attorney fees awarded by the court, and then only if collected by CITY. In bankruptcy proceedings, FIRM shall be entitled to a fee of 20% of the tax, penalties, and interest actually collected by CITY. FIRM agrees to file and diligently pursue all property tax claims on behalf of CITY in bankruptcy, eminent domain, and otherjudicial or administrative proceedings, whether federal or state in nature. Page 4 14. TAX WARRANTS Upon request and authorization of CITY, FIRM shall prepare and pursue the issuance of tax warrants. FIRM shall then coordinate the seizure of personal property, pursuant to warrant. FIRM shall accompany the Tax Collector to the location of the personal property which is to be seized to insure that all necessary procedures have been followed. 15. SETTLEMENTS No settlements or compromises of taxes, penalties, or interest shall be effected where prohibited by law, and only upon approval by CITY where authorized by law. If a taxpayer requested waiver is upheld as provided by Tex. Prop. Tax Code §33.011, FIRM will bear the costs of suit if it failed to notify the taxpayer of the delinquency prior to filing of the suit. 16. NOTICE Any notice or other written instrument required or permitted to be delivered pursuant to the terms of this Contract shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or FIRM, as the case may be, at the following addresses: CITY City of Denton, Texas ATTN: Assistant City Manager 215 E. McKinney Denton, Texas 76201 yV Sawko & Burroughs, L.L.P. ATTN: Gregory J. Sawko & Mark A.Burroughs 1100 Dallas Drive, Suite 100 Denton, Texas 76205 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. 17. COLLECTION REQUIREMENTS FIRM agrees to collect, between July 1, 2005 and June 30, 2006, not less than 60% of the total dollar value of the adjusted base tax of the 2004 delinquency existing on July 1, 2005, and not less than 30% of the aggregate delinquent tax roll each 12 months. FIRM agrees to collect, between July 1, 2006 and June 30, 2007, not less than 60% of the total dollar value of the adjusted base tax of the 2005 delinquency existing on July 1, 2006, and not less than 30% of the aggregate delinquent tax roll each 12 months. FIRM agrees to collect, between July 1, 2007 and June 30, 2008, not less than 60% of the total dollar value of the adjusted base tax of the 2006 delinquency existing on July 1, 2007, and not less than 30% of the aggregate delinquent tax roll each 12 months. Furthermore, should CITY invoke the option to extend this Contract beyond June 30, 2008, as Prescribed in Section 12, FIRM agrees to collect, between July Is` and subsequent June 30` each year the contract is extended, not less than 60% of the total dollar value of the adjusted base tax from the most recent tax year of the delinquency existing on July I" of each respective year, and not less than 30% of the aggregate delinquent tax roll each 12 months. If FIRM does not collect the above referenced amount each year, it shall provide CITY with legal services, programming and computer services, or data processing equipment with a value not less than ten thousand dollars ($10,000.00), or, at the option of CITY, FIRM shall pay Page 5 CITY the sum of ten thousand dollars ($10,000.00) on or before August 15`h of the year it fails to collect the minimum amount specified herein. 18. VENUE The terns, obligations, and requirements of this Contract shall be construed in accordance with the laws of the State of Texas. The obligations and requirements of the parties hereto are performable in Denton County, Texas. Any litigation involving this Contract shall be tried in a court of competent jurisdiction sitting in Denton County, Texas. 19. ACCEPTANCE OF EMPLOYMENT In consideration of the terms, covenants, and mutual agreements hereinabove stated, FIRM hereby accepts the employment of CITY, and undertakes the performance of this Contract as above stated. 20. DIRECTIVES All directives between FIRM and CITY shall be confirmed in writing. 21. COVENANT NOT TO SUE FIRM further agrees not to bring any cause of action against CITY relative to this Contract. Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1.00, and the filing of such cause of action shall be considered a material breach of this Contract. 22. AMBIGUITY Any ambiguity within this Contract shall be liberally interpreted in favor of CITY. 23. ASSIGNMENT The rights and responsibilities of CITY under this Contract may be assigned by the City Council to another governmental unit in Denton County without approval of FIRM. It is understood and agreed that this is a professional services contract, and CITY is contracting for the unique services of FIRM. FIRM's rights and responsibilities under this Contract may not be assigned by FIRM to another law firm or collection agency without written approval of the assignment by the City Council. 24. INDEMNITY AGREEMENT FIRM shall indemnify, save, and hold harmless CITY and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of FIRM or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Contract. Nothing in this Contract shall be construed to create a liability to any person who is not a party to this Contract. Nothing herein shall waive any of the parties' defenses, both at law or equity, Page 6 to any claim, cause of action, or litigation filed by anyone not a party to this Contract, including the defense of governmental immunity, which defenses are hereby expressly reserved. 25. INSURANCE During the performance of the services under this Contract, FIRM shall maintain the following types of insurance, meeting the minimum dollar requirements stated below, with an insurance company licensed to do business in the State of Texas by the State Insurance Commission (or its successor), having a Best Rate Carriers rating of A- or above: Professional liability insurance with limits of not less than $100,000.00 per occurrence and $300,000 annual aggregate. Automobile and Comprehensive General Liability insurance with bodily injury limits of not less than $1,000,000 for each person and aggregate of $2,000,000.00 and with property damage limits of not less than $50,000 per accident. FIRM shall furnish insurance certificates or insurance policies at CITY's request to evidence such coverages. The Automobile and General Liability insurance policies shall name CITY as an additional insured, to the extent legally possible. All such policies of insurance shall not be canceled or modified without 30 days prior written notice to CITY and FIRM. In such event, FIRM shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. 26. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Contract by submitting the dispute to arbitration or other means of alternate dispute resolution, such as mediation. No arbitration or alternate dispute resolution arising out of or relating to this Contract, involving one party's disagreement, may include the other party to the disagreement without the other's approval. 27. ENTIRE AGREEMENT i This Contract, consisting of 12 pages and two exhibits, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements. This Contract supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. 28. COMPLIANCE WITH LAWS FIRM shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. 29. DISCRIMINATION PROHIBITED In performing the services required hereunder, FIRM shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 30. PERSONNEL AND EQUIPMENT Page 7 A. FIRM represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Contract. Such personnel shall not be employees or officers of, or have any contractual relations with, CITY. FIRM shall inform CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Contract. B. All services required hereunder will be performed by FIRM, or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. C. FIRM represents that it has or will secure, at its own expense, the hardware, software, and other resources required to perform, all the services required under the terms of this contract in a timely manner. 31. ASSIGNABILITY FIRM shall not assign any interest in this Contract, and shall not transfer any interest in this Contract (whether by assignment, novation, or otherwise) without the prior written consent of CITY. 32. TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Contract, either party may terminate by giving 30 days advance written notice to the other party. B. This Contract may be terminated, in whole or in part, in the event of either party substantially failing to fulfill its obligations under this Contract. No such termination will be effective unless the other party is given: (1) written notice, delivered by certified mail, return receipt requested, of intent to terminate, setting forth the reasons, specifying the nonperformance, and giving the other party not less than 30 calendar days to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. C. If the Contract is terminated prior to completion of the services to be provided hereunder, FIRM shall immediately cease all services and shall render a final bill for services to CITY within 30 days after the date of termination. CITY shall pay FIRM for all services properly rendered and satisfactorily performed, and for reimbursable expenses to termination incurred prior to the date of termination, in accordance with Article 9 "Compensation". Should CITY subsequently contract with a new consultant for the continuation of services outlined in this Contract, FIRM shall cooperate in providing information. FIRM shall turn over all documents prepared or furnished by FIRM, pursuant to this Contract, to CITY on or before the date of termination, but may maintain copies of such documents for its use. 33. MODIFICATION No waiver or modification of this Contract, or of any covenant, condition, or limitation herein contained shall be valid, unless in writing and duly executed by the party to be charged therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto, out of, or affecting this Contract, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing and duly Page 8 executed. The parties further agree that the provisions of this section will not be waived unless as herein set forth. 34. INDEPENDENT CONTRACTOR FIRM shall provide services to CITY as an independent contractor, not as an employee of CITY. FIRM shall not have or claim any right arising from employee status. 35. MISCELLANEOUS A. The following exhibits are attached to and made a part of this Contract: Exhibit "A" - Request for Proposals; Exhibit "B" — Addendum, Exhibit C - FIRM's proposal. B. FIRM agrees that CITY shall, until the expiration of three years after the final payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of FIRM involving transactions relating to this Contract. FIRM agrees that CITY shall have access, during normal working hours, to all necessary FIRM facilities, and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. CITY shall give FIRM reasonable advance notice of intended audits. C. For the purpose of this Contract, the key persons who will perform most of this work hereunder shall be Gregory J. Sawko and Mark A. Burroughs. However, nothing herein shall limit FIRM from using other qualified and competent members of its firm to perform the services required herein. D. FIRM shall commence, carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, efficient manner, and in accordance with the provisions hereof. In accomplishing the services hereunder, FIRM shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by CITY. E. CITY shall assist FIRM by placing at FIRM's disposal all available information pertinent to the services outlined in this Contract, including previous reports and any other data relative to the services outlined in this Contract, and arranging for the access thereto. CITY shall make all provisions for FIRM to enter in or upon public and private property as required for FIRM to perform services under this Contract. 36. TIME OF THE ESSENCE Time is of the essence with respect to all matters covered by this Contract. 37. CAPTIONS The captions appearing at the first of each numbered section are inserted and included solely for convenience, and shall never be considered or given any effect in construing this Contract. This Contract is executed on behalf of CITY by the presiding officer of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes and by a partner of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to execute this document on behalf of FIRM. Page 9 WITNESS the signature of all parties hereto in triplicate originals this the day of 2005, Denton County, Texas. CITY OF DENTON, TEXAS MICHAEL A. CONDUFF CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: , 4 APPROVED AS TO LEGAL FORM: EDWIN SNYDER, INTERIM CITY ATTORNEY SAWKO & BURROUGHS, L.L.P. GREGORY J. SAWKO Page 10 Exhibit A Purchasing Department 901-B Texas St. Denton, TX 76209 (940)349-7100 RFP #3335 Request for Proposals For Delinquent Tax Collection Attorneys PROPOSALS DUE MAY 107 2005 2:00 P.M. Bid submitted by: Company Name 6/21/2005;1:44 PM SPECIAL NOTICES #1 - ADDENDUM #1 FORTHCOMING: SAMPLE CONTRACT TO BE SENT UNDER SEPARATE COVER #2 - QUESTIONS REGARDING THIS RFP MUST BE SUBMITTED IN WRITING FIVE (5) WORKING DAYS PRIOR TO THE BID OPENING. ALL QUESTIONS SUBMITTED AFTER THAT DATE WILL NOT BE CONSIDERED TO ENSURE ALL BIDDERS ARE GIVEN EQUAL ACCESS TO THE INFORMATION PROVIDED. ALL QUESTIONS SHOULD BE DIRECTED TO: DIANA ORTIZ, DIRECTOR OF FISCAL OPERATIONS 215 EAST MCKINNEY ST. DENTON TX 76201 EMAIL: Diana.Ortiz(cDcitvofdenton.com Phone: (940) 349-8224 Fax: (940) 349-7206 CARBON COPY TO: TOM SHAW, C.P.M., PURCHASING AGENT 901-B TEXAS ST. DENTON, TX 76209 EMAIL: Tom.ShawO-citvofdenton.com Phone: (940) 349-7100 Fax: (940) 349-7302 6/21/2005:1:44 PM NOTICE TO VENDORS Proposals will be received by the City of Denton, Texas at the office of the Purchasing Agent prior to 2:00 p.m., Mav 10, 2005 for the following: RFP # 3335 -REQUEST FOR PROPOSALS FOR DELINQUENT TAX ATTORNEYS A Pre -Bid Conference in reference to this RFP will be held on Wednesday, April 27, 2005 at 10 a.m. at the City of Denton Municipal Building, Finance Conference Room, 215 E. McKinney Street, Denton, TX, 76201. 940.349.7100. Qualified prospective suppliers may obtain copies of the proposal with information at the office of the Purchasing Agent, located at 901-B Texas Street, Denton, Texas 76209 in the Service Center complex. The City of Denton, Texas reserves the right to reject or accept any proposal and award to the most advantageous proposal received. No officer or employee of the City of Denton shall have a financial interest, direct or indirect in any contract with the City of Denton. Minority and small business vendors are encouraged to submit proposals. CITY OF DENTON, TEXAS (940)349-7100 TOM D. SHAW, C.P.M. PURCHASING AGENT This advertisement to run- April 13 and April 20 2005 6/21/2005;1:44 PM CITY OF DENTON REQUEST FOR PROPOSALS FOR DELINQUENT TAX COLLECTION ATTORNEYS INTRODUCTION The City of Denton's intent of this Request for Proposal and resulting contract is to obtain services of a qualified professional law firm with extensive experience in the collection of delinquent taxes. SCOPE OF SERVICES Tax collection attorneys will be responsible for the following duties and services: Preparing monthly status and performance reports to the City indicating the progress of tax collections. The monthly progress reports prepared by the firm shall contain, at a minimum, the following information: a. Number and types of communication with delinquent taxpayers b. Summary of all delinquent accounts collected c. Number of suits filed d. Detailed list of suits filed e. Number of judgments rendered f. Detailed list of judgments rendered g. Number of warrants issued/served h. Detailed list of bankruptcies and status of those properties i. Number of properties submitted to Court's for auction j. Detailed list of properties submitted to Court's for auction, with date submitted and most recent status k. Number of properties sold I. Detailed list of properties sold or reverting to taxing entity because of non sale 2. Preparing and sending such notices to delinquent taxpayers as may be required by law or as may be advisable for the purpose of expediting collections. Bringing lawsuits against delinquent taxpayers to foreclose tax liens and otherwise facilitate collection of delinquent debt. 4. Firm shall be responsible for filing of delinquent and current property tax claims in bankruptcy and other judicial or administrative proceedings; which directly affect collectability of outstanding City property taxes, and consult with the City of Denton City Attorney's office on such matters. Advising the city on legal issues that arise in the process of delinquent tax collection. This includes legal support, advice, written opinions, and research upon request. 6. Providing such additional services as the Denton City Council or the City staff may deem advisable to expedite the collection of delinquent taxes. Provide total and complete delinquent tax collection and coordinate these efforts with the City of Denton Tax Department. Firm will indemnify and hold the City harmless from any suits or liabilities that may result from the firm's delinquent tax collection activities. 6/21/2005;1:44 PM Request for Proposal #3335 Delinquent Tax Collection Attorney Page 5 of 19 8. Provide all supplies, postage, court filing fees and all other costs necessary to handle billing and necessary mailings and obtain appropriate title research and relevant ownership records of all property upon which a suit is to be filed on behalf of the City, at no cost to the City. 9. Intervene in delinquent tax suits filed by other taxing entities involving property on which City taxes are outstanding. 10. Only collect those groups or individual accounts, which the City of Denton determines in its discretion, are to be collected by firm. 11. Representing the City in collection enforcement of other (non -tax) City assessment for which a lien is asserted against property subject to a delinquent property tax suit. 12. All costs incurred by the firm under its contract with the City shall be the sole responsibility of the firm to collect from the subject taxpayers or to absorb, unless specifically provided otherwise in the contract. EVALUATION OF PROPOSALS The City will make its selection based on a review of all of the information provided. Completeness of information sought will be an important factor in the review process. Proposals will be compiled and presented to the City Council for selection. All proposals will remain confidential until an award is made by the City. By this request, the City has not committed itself to employ delinquent tax collection counsel nor does the suggested scope of services require that delinquent tax collection counsel be employed for any or all of those purposes. The City reserves the right to make those decisions after it receives all proposals, and the City's decision on such matters is final. EVALUATION CRITERIA The award of the contract shall be made to the firm whose proposal is determined to be the best evaluated offer. The evaluation criteria will be grouped in percentage factors as listed below: 35% History of Achieving Performance Levels and Demonstrated Capability to Perform 20% History of Expertise. 1. Firms qualifications/experience/credentials 2. Financial stability 3. Demonstrated prior experience in providing similar services 4. Adherence to the requirements of Request for Proposal 25% Delinquent Collection Enforcement Services 1. Collection procedures for accounts in bankruptcy 2. Legal services for the City's delinquent accounts (i.e., lawsuits, Judgments, foreclose sales, etc) Request for Proposal #3335 Page 6 of 19 Delinquent Tax Collection Attorney 3. Firms participation and responsibility clearly defined 4. Collection technology 20% Local Staffing, Availability and Experience 1. Denton office or functional equivalent 2. Denton County experience (Formal courtroom hearings with successful final dispositions) TERMS AND CONDITIONS Contract Term: This request, is for a contract term for three (3) years, beginning on July 1, 2005, and ending on June 30, 2008. The contract term may be extended for two additional one-year terms at the discretion of the City Council upon written notice to the awarded firm of its desire to continue services at least thirty (30) days prior to the expiration of the initial three- year term. Contract Condition: Firm will have, or will establish, a Denton office by the date the delinquent accounts are turned over to firm, and will provide a 1-800 number, other toll -free service, to its main office if same is not local to Denton. OR The firm will be required to provide at least one full time staff member of the firm to the City of Denton Tax Office. The firm shall pay rent for the space in an amount of one thousand ($1,000) dollars monthly, adjusted annually based on CPI. The City shall provide a working area and computer. Right to Reject: The City reserves the right to waive any irregularities in any proposal, to request additional information, and to accept or reject an item of any proposal. Termination: The City may terminate the contract for any reason, with or without cause, upon thirty (30) days' written notice to the firm. The City will allow firm an additional six (6) months to reduce to judgment all suits filed prior to the expiration of the contract. The firm must provide for the orderly delivery of copies of all complete tax files to be turned over to the City Attorney when the contract is terminated. Performance Levels: The firm must have an established history of expertise in the delinquent tax collection field and is agreeable to the performance goal, which is equal to, but not less than a. Current Year Delinquent Collections: 60% of the total dollar value of the adjusted base tax for each "current year" delinquency which will be turned over to the firm for collection on July 1 of each year covered by the contract. The sixty percent (60%) collection percentage will be determined as of June 30, of each year following the July 1 turnover and will be adjusted for any accounts that have been deleted from the roll by either the Denton County Appraisal District or a Court of competent jurisdiction. The firm must show an established history of maintaining a collection rate of at least 60% of the current year turnover for its existing clients by submitting Exhibits A-1 through A-5. b. Prior Year Delinquent Collections: 30% of the aggregate delinquent tax roll. The firm must show an established history of maintaining a reduction rate of at least 30% of the gross delinquent tax roll as of June 30. The firm must illustrate the reduction in percentages and numeric for its existing clients by submitting Exhibit B-1 through B-5. Request for Proposal #3335 Delinquent Tax Collection Attorney Page 7 of 19 Fee: The City will pay the law firm a fee not to exceed Sec. 33.07 of the Property Tax Code on all delinquent taxes; penalty and interest actually collected and paid the City during the term of this contract. The City shall pay said funds to the firm monthly by check. SUBMISSION OF PROPOSALS Please submit five (5) copies of your proposal in sealed envelopes to the following: City of Denton Purchasing Department 901-B Texas Street Denton Texas, 76209 Attention: Tom Shaw, Purchasing Agent Proposals must be sealed and clearly marked: "PROPOSALS FOR DELINQUENT TAX COLLECTION ATTORNEYS — RFP #3335". Proposals received in the Purchasing Department after submission deadline shall be returned unopened and will be considered void and unacceptable. Incomplete proposals will be considered void and unacceptable. All interested firms may obtain a data file of the City's Delinquent Tax Roll by submitting a request to the Tax Office for a fee of $200.00. Contact: Lee Ann Bunselmeyer 601 E. Hickory St., Ste. G, Denton, TX 76210, Phone: (940) 349-7743. There is no expressed or implied obligation on the part of the city to reimburse responding firms for any expenses incurred in preparing proposals in response to the request. The following items must be included as part of your proposal: Executive Summary • Describe your organization's background and experience in delinquent tax collections. Please include years in the business. • List local office(s) and resources. • Convey your organizations plan for conferring on a regular basis with the City of Denton City Council and the Treasury & Tax Manager. • Overview of proposed services to be offered based on the information attached. Delinquent Tax Collection Services • Proposed work plan • Taxpayer communications program • Address research and taxpayer location program • Bankruptcy collection program • Taxpayer assistance • Include descriptions of the following processes: • Tax Suits - process and pre -suit process • Tax Sales - process • Tax Seizures - process and samples if available III. Describe your organization's personnel expertise in ad valorem tax matters: • Identify the office location where the City's accounts will be primarily serviced. (your principal City Office) Request for Proposal #3335 Delinquent Tax Collection Attorney Page 8 of 19 • Specify the number of full-time employees for firm at your principal City office location. • Specify the number and principal office location of all full-time attorneys employed by your firm that will be primarily servicing the City of Denton. • Specify how many taxing units you currently represent with the legal staff who will directly perform the services for the City. • Identify the personnel who would handle collections for the City and state their principal office location. • Provide biographies of key management and attorneys who you anticipate will directly represent the City in collections enforcement services. • Provide information concerning minority involvement regarding the work to be performed by your firm pursuant to this request. Indicate the ethnic makeup and the gender of your staff. Also indicate your compliance with EEOC regulations and guidelines. IV. Collection Technology • Describe the computer hardware and software used to collect delinquent taxes • Describe how it will interact with the City's computer system • Identify the law firm's technical personnel and technical support available to the City • Provide a sample of the status and performance reports and correspondence that will be provided to the City V. References - Provide a complete list of past and current Texas clients. In addition, provide at least five references where delinquent tax collection services are provided to entities similar to the City of Denton. At least one should be comparable in size and regionally located to the City of Denton (i.e., population, square miles, number of parcels). These references should be listed on the VENDOR REFERENCE form and include the name of the contact person, address, phone number, and period of time for which your firm has represented the entity. Additionally, for each entity selected, include a five-year (1999 — 2003) summary of delinquent tax collections per Exhibits Al-A5 and B1-B5. VI. Any other information you consider germane to collection of delinquent taxes or this request. Request for Proposal#3335 Delinquent Tax Collection Attorney Page 9 of 19 VENDOR REFERENCE Please list five (5) references of current clients who can verify the quality of service your firm provides. THIS FORM MUST BE RETURNED WITH YOUR PROPOSAL. REFERENCE ONE Name of Taxing Unit: Address: Contact Person and Telephone: Contract Period: REFERENCE TWO Name of Taxing Unit: Address: Contact Person and Title: Telephone: Contract Period: REFERENCE THREE Name of Taxing Unit: Address: Contact Person and Title: Telephone: Contract Period: REFERENCE FOUR Name of Taxing Unit: Address: Contact Person and Title: Telephone: _ Contract Period: REFERENCE FIVE Name of Taxing Unit: Address: Contact Person and Title: Telephone: Contract Period: Request for Proposal #3335 Delinquent Tax Collection Attorney Page 10 of 19 EXHIBIT A-1 NAME OF TAXING UNIT If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ Amount of 2003 tax due 6-30-04 $ Amount of 2003 tax due 3-31-05 (Partial Yr) $ Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31/05 $ 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ Amount of 2002 tax due 6-30-03 $ Amount of 2002 tax due 6-30-04 $ Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/1/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ Amount of 2001 tax due 6-30-02 $ Amount of 2001 tax due 6-30-03 $ Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 — 6/30/03 $ 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 is Amount of 2000 tax due 6-30-01 $ Amount of 2000 tax due 6-30-02 $ Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01 — 6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ Amount of 1999 tax due 6-30-00 $ Amount of 1999 tax due 6-30-01 $ Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30101 $ 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 11 of 19 EXHIBIT A-2 NAME OF TAXING UNIT If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ Amount of 2003 tax due 6-30-04 $ Amount of 2003 tax due 3-31-05 Partial Yr $ Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31/05 $ 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ Amount of 2002 tax due 6-30-03 $ Amount of 2002 tax due 6-30-04 $ Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/1/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ Amount of 2001 tax due 6-30-02 $ Amount of 2001 tax due 6-30-03 $ Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 — 6/30/03 $ 2000 Tax Year F/Y 2001 original 2000 tax levy 10-1-00 $ Amount of 2000 tax due 6-30-01 $ Amount of 2000 tax due 6-30-02 $ Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01 — 6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ Amount of 1999 tax due 6-30-00 $ Amount of 1999 tax due 6-30-01 $ Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30101 $ 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 12 of 19 EXHIBIT A-3 NAME OF TAXING UNIT If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ Amount of 2003 tax due 6-30-04 $ Amount of 2003 tax due 3-31-05 Partial Yr $ Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31 /05 $ 2002 Tax Year F/Y 2003 Original 2002 tax le 10-1-02 $ Amount of 2002 tax due 6-30-03 $ Amount of 2002 tax due 6-30-04 $ Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/1/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ Amount of 2001 tax due 6-30-02 $ Amount of 2001 tax due 6-30- 33 $ Total Collections in F/Y 2002 2001 tax collections in FY2002, 711/02 — 6/30/03 $ 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 $ Amount of 2000 tax due 6-30-01 $ Amount of 2000 tax due 6-30-02 $ Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01 — 6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ Amount of 1999 tax due 6-30-00 $ Amount of 1999 tax due 6-30-01 $ Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30/01 $ , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 13 of 19 EXHIBIT A-4 NAME OF TAXING UNIT If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ Amount of 2003 tax due 6-30-04 $ Amount of 2003 tax due 3-31-05 (Partial Yr) $ Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31/05 $ 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ Amount of 2002 tax due 6-30-03 $ Amount of 2002 tax due 6 30-04 $ Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/1/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ Amount of 2001 tax due 6-30-02 $ Amount of 2001 tax due 6-30-03 $ Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 — 6/30/03 $ 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 $ Amount of 2000 tax due 6-30-01 $ Amount of 2000 tax due 6-30-02 $ Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01 — 6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ Amount of 1999 tax due 6-30-00 $ Amount of 1999 tax due 6-30-01 $ Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30101 $ 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 14 of 19 EXHIBIT A-5 NAME OF TAXING UNIT If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ Amount of 2003 tax due 6-30-04 $ Amount of 2003 tax due 3-31-05 Partial Yr) $ Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31/05 $ 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ Amount of 2002 tax due 6-30-03 $ Amount of 2002 tax due 6-30-04 $ Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/l/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ Amount of 2001 tax due 6-30-02 $ Amount of 2001 tax due 6-30-03 $ Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 — 6/30/03 $ 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 $ Amount of 2000 tax due 6-30-01 $ Amount of 2000 tax due 6-30-02 $ Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/O1 — 6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ Amount of 1999 tax due 6-30-00 $ Amount of 1999 tax due 6-30-01 $ Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30/01 $ 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 15 of 19 EXHIBIT B-1 NAME OF TAXING UNIT If the taxing unit of Appraisal district collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as $ of June 30, 2004 2003 & Prior Year Taxes Due Total 2003 tax collections in F/Y 2004 $ (July 1, 2004 — Mar 31, 2005 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as $ of June 30, 2003 2002 & Prior Year Taxes Due Total 2002 tax collections in F/Y 2003 $ (July 1,2003 — June 30, 2004 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as $ of June 30, 2002 2001 & Prior Year Taxes Due Total 2001 tax collections in F/Y 2002 $ (July 1, 2002 — June 30, 2003 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as $ of June 30, 2001 2000 & Prior Year Taxes Due Total 2000 tax collections in F/Y 2001 $ (July 1, 2001 — June 30, 2002 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due a$ $ of June 30, 2000 1999 & Prior Year Taxes Due Total 1999 tax collections in F/Y 2000 $ (July 1, 2000 — June 30, 2001 , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Date Request for Proposal #3335 Delinquent Tax Collection Attorney Page 16 of 19 EXHIBIT B-2 NAME OF TAXING UNIT If the taxing unit of Appraisal district collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as $ of June 30, 2004 2003 & Prior Year Taxes Due Total 2003 tax collections in F/Y 2004 $ (July 1, 2004 — Mar 31, 2005 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as $ of June 30, 2003 2002 & Prior Year Taxes Due Total 2002 tax collections in F/Y 2003 $ (July 1,2003 — June 30, 2004 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as $ of June 30, 2002 2001 & Prior Year Taxes Due Total 2001 tax collections in F/Y 2002 $ (July 1, 2002 — June 30, 2003 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as $ of June 30, 2001 2000 & Prior Year Taxes Due Total 2000 tax collections in F/Y 2001 $ (July 1, 2001 — June 30, 2002 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as $ of June 30, 2000 1999 & Prior Year Taxes Due Total 1999 tax collections in F/Y 2000 $ (July 1, 2000 — June 30, 2001 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 17 of 19 EXHIBIT B-3 NAME OF TAXING UNIT If the taxing unit of Appraisal district collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as $ of June 30, 2004 2003 & Prior Year Taxes Due Total 2003 tax collections in F/Y 2004 $ (July 1, 2004 — Mar 31, 2005 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as $ of June 30, 2003 2002 & Prior Year Taxes Due Total 2002 tax collections in F/Y 2003 $ (July 1,2003 — June 30, 2004 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as $ of June 30, 2002 2001 & Prior Year Taxes Due Total 2001 tax collections in F/Y 2002 $ (July 1, 2002 — June 30, 2003 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as $ of June 30, 2001 2000 & Prior Year Taxes Due Total 2000 tax collections in F/Y 2001 $ (July 1, 2001 —June 30, 2002 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as $ of June 30, 2000 1999 & Prior Year Taxes Due Total 1999 tax collections in F/Y 2000 $ (July 1, 2000—June 30, 2001 , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Request for Proposal #3335 Delinquent Tax Collection Attorney Page 18 of 19 EXHIBIT B-4 NAME OF TAXING UNIT If the taxing unit of Appraisal district collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as $ of June 30, 2004 2003 & Prior Year Taxes Due Total 2003 tax collections in F/Y 2004 $ (July 1, 2004 — Mar 31, 2005 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as $ of June 30, 2003 2002 & Prior Year Taxes Due Total 2002 tax collections in F/Y 2003 $ (July 1,2003 — June 30, 2004 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as $ of June 30, 2002 2001 & Prior Year Taxes Due Total 2001 tax collections in F/Y 2002 $ (July 1, 2002 — June 30, 2003 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as $ of June 30, 2001 2000 & Prior Year Taxes Due Total 2000 tax collections in F/Y 2001 $ (July 1, 2001 —June 30, 2002 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as $ of June 30, 2000 1999 & Prior Year Taxes Due Total 1999 tax collections in F/Y 2000 $ (July 1, 2000 — June 30, 2001 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Request for Proposal #3335 Delinquent Tax Collection Attorney Page 19 of 19 EXHIBIT B-5 NAME OF TAXING UNIT If the taxing unit of Appraisal district collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: _ 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as $ of June 30, 2004 2003 & Prior Year Taxes Due Total 2003 tax collections in F/Y 2004 $ (July 1, 2004 — Mar 31, 2005 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as $ of June 30, 2003 2002 & Prior Year Taxes Due Total 2002 tax collections in F/Y 2003 $ (July 1,2003 — June 30, 2004 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as $ of June 30, 2002 2001 & Prior Year Taxes Due Total 2001 tax collections in F/Y 2002 $ (July 1, 2002 — June 30, 2003 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as $ of June 30, 2001 2000 & Prior Year Taxes Due Total 2000 tax collections in F/Y 2001 $ (July 1, 2001 — June 30, 2002 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as $ of June 30, 2000 1999 & Prior Year Taxes Due Total 1999 tax collections in F/Y 2000 $ (July 1, 2000 — June 30, 2001 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Exhibit B C Materials Management 901-B Texas St. Denton, TX 76209 (940)349-7100 ADDENDUM #1 RFP #3335 Request for Proposals For iauent Tax Collection Attorn BIDS DUE: May 10, 2005 2:00 P.M. Proposal submitted by: Company Name Request for Proposal #3335 Delinquent Tax Collection Attorney ADDENDUM #1 Addendum #1 to be returned with Bid Proposal The following are changes to the bid specifications: Replace attached pages 15-19 - Exhibit B-1 through B-5 Add attached Exhibit C - Performance Measurement Analysis Add attached Sample Contract — Exhibit D NO OTHER CHANGES AT THIS TIME. This form shall be signed and returned with your hid. Name: Signature: Company: Title: Date: Request for Proposal 43335 Delinquent Tax Collection Attorney EXHIBIT B-1 NAME OF TAXING UNIT If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ ' June 30, 2004 2003 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ March 31, 2005 2003 & Prior Year Taxes Due , Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 % 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due Amount of cumulative prior years taxes one as of $ June 30, 2004 2002 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2002 &prior) June 30, 2003 thru June 30, 2004 % 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as of $ June 30, 2002 (2001 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2003 2001 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2001 & prior) June 30, 2002 thru June 30, 2003 % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes one as of June 30, 2001 2000 & Prior Year Taxes Due) $ Amount of cumulative prior years taxes due as of June 30, 2002 2000 & Prior Year Taxes Due) $ Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of June 30, 2000 1999 & Prior Year Taxes Due) $ Amount of cumulative prior years taxes due as of June 30, 2001 1999 & Prior Year Taxes Due $ Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thru June 30, 2001 % ( , am the Tax Assessor -Collector of the above named taxing unit; do certify that 1 have reviewed the tax collection data given above and that it is correct. Signature Date Request for Proposal#3335 Delinquent Tax Collection Attorney EXHIBIT B-2 NAME OF TAXING UNIT If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: x Year F/Y 2004of cumulative prior years taxes due as of2004 2003 & Prior Year Taxes Dueof cumulative prior years taxes due as of r $ 12005 2003 &Prior Year Taxes Due) n rate of cumulative tax roll (2003 & prior) 2004 thm March 31, 2005 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thm June 30, 2004 % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ June 30, 2001 2000 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2002 2000 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2001 1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thru June 30, 2001 % 1 , am the Tax Assessor -Collector of the above named taxing unit; do certify that 1 have reviewed the tax collection data given above and that it is correct. Signature Date Request for Proposal 43335 Delinquent Tax Collection Attorney EXHIBIT B-3 NAME OF TAXING UNIT If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ June 30, 2004 2003 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ March 31, 2005 2003 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 % 2002 Tax Year (FIV 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thru June 30, 2004 aka 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as of $ June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior) June 30, 2002 thru June 30, 2003 % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ June 30, 2001 2000 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2001 1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thru June 30, 2001 % 1 , am the Tax Assessor -Collector of the above named taxing unit; do certify that 1 have reviewed the tax collection data given above and that it is correct. Signature Date Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT B-4 NAME OF TAXING UNIT If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ June 30, 2004 2003 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ March 31, 2005 2003 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 % 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thru June 30, 2004 % 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as of $ June 30, 2002 2001 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior) June 30, 2002 thru June 30, 2003 % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ June 30, 2001 2000 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ June 30, 2000 1999 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2001 1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thru June 30, 2001 % 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Date Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT B-5 NAME OF TAXING UNIT If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ June 30, 2004 2003 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ March 31, 2005 2003 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31. 2005 % 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2004 2002 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thru June 30, 2004 % 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as of $ June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2003 2001 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2001 & prior) June 30, 2002 thru June 30, 2003 % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ June 30, 2001 2000 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2002 2000 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ June 30, 2000 1999 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ June 30, 2001 1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thru June 30, 2001 % 1, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature Date EXHIBIT C CITY OF DENTON DELINQUENT TAX ATTORNEY PERFORMANCE MEASUREMENT ANALYSIS as of June 30th Current Year Delinquent Taxes Fiscal Year Tax Year Beginning Amount Outstanding Ending Amount Outstanding Amount Collected 2004-05 2003-04 2002-03 2001-02 2000-01 2003 (1) 2002 2001 2000 1999 538,517 486,530 602,436 459,499 308,758 196,530 132,522 215,170 186,086 113,492 358,683 361,403 387,390 295,810 245,271 Cumulative Delinquent Taxes Fiscal Year Tax Year Beginning Amount Outstanding Ending Amount Outstanding Amount Collected 2004-05 2003-04 2002-03 2001-02 2000-01 2003 & Prior (1) 2002 & Prior 2001 & Prior 2000 & Prior 1999 & Prior 1,089,307 1,163,407 1,244,877 1,171,510 1,020,769 651,718 546,790 676,878 642,441 638,279 642,791 888,112 658,149 533,560 432,496 (1) The 2003 Tax Year ending amount outstanding and amount collected is as of March 30, 2005. 4/28/2005; 10: 19 AM Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT D CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THE STATE OF TEXAS COUNTY OF DENTON THIS CONTRACT is made and entered into by and between the City of Denton, 215 E. McKinney, Denton, Texas 76201 ("CITY"), acting herein by and through its eovemine body, and the Law Firm of ( Hereinafter referred to as the "FIRM"). 1. EMPLOYMENT OF FIRM CITY agrees to employ and does hereby employ FIRM, as an independent contractor, and FIRM hereby agrees to enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest owing to CITY. Current year taxes which become delinquent within the period of this Contract shall become subject to the terms of the Contract upon the following conditions and FIRM shall perform the following services: A. Taxes that become delinquent during the term of this Contract, that are not delinquent for any prior years, become subject to the terms of this Contract on July 1 st of the year in which they become delinquent. B. Taxes that become delinquent during the term of this Contract on property that is delinquent for prior years shall become subject to its terms on the first day of delinquency as defined by the Texas Property Tax Code. C. FIRM shall begin collecting current year personal property taxes on March I st of the year in which they become delinquent. CITY shall not owe FIRM a fee on the current year delinquent personal property taxes collected between March Ist and June 30th unless attorney's fees are collected pursuant to Section 33.48 of the Texas Property Tax Code. D. FIRM shall perform all those services set forth in CITY's Request for Proposals ("RFP") dated and FIRM's response to the RFP dated which are attached hereto and made a part hereof respectively as Exhibits 'Wand "B" as if written word for word herein, as well as all other services set forth in the Contract. E. If there is any conflict between the terms of this Contract and conditions of the attached exhibits, this Contract will control over the terms and conditions of the attached exhibits. FIRM hereby agrees to perform the services herein with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. Request for Proposal#3335 Delinquent Tax Collection Attorney 2. PROVISION OF INFORMATION CITY agrees to furnish all necessary delinquent tax information to FIRM on all property within the boundaries of CITY. 3. INVESTIGATION AND ASSISTANCE FIRM agrees to conduct investigations as to the address of each taxpayer and the location of the property where such information may be incorrect on the delinquent tax record. FIRM shall bring to the attention of the appropriate tax official of CITY any errors, double assessments, discrepancies, or inaccuracies in the information provided on the delinquent tax record detected by FIRM. FIRM further agrees to provide CITY with any advice or assistance in connection with updating the tax rolls. CITY shall make available to FIRM information which CITY may have with regard to the name, identity, location of necessary parties and descriptions of property in connection with each delinquent tax account upon request by FIRM. 4. PROCEDURES FOR COLLECTION Upon initial receipt of the delinquent tax records by FIRM in computer readable form, FIRM agrees to initiate procedures for the collection of the full amount due from each taxpayer. Within a reasonable time frame but not more than sixty (60) days from FIRM's receipt of the delinquent tax records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to each and every delinquent taxpayer where the taxes have not been deferred nor involved in a lawsuit against the appraisal district to determine value, requesting said taxpayer to remit the full amount due and owing to CITY. 5. REVIEW AND AUTHORIZATION TO SUE Following transmittal of the notice of delinquency as specified hereinabove, FIRM will commence procedures in anticipation of litigation for aggressive pursuit of collection. CITY shall have absolute discretion over those accounts on which suit should be filed. The transmittal of the delinquent tax information to FIRM from CITY shall constitute authorization to file suit following the mailing of the initial notice of delinquency. Upon written notice, CITY may at any time withdraw authorization to file suit. CITY may at any time withdraw authorization to foreclose and sell the property and said withdrawal shall be in writing. 6. LITIGATION RESPONSIBILITIES A. FIRM agrees to commence litigation, prosecute, and reduce to judgment all delinquent accounts including all pending lawsuits that FIRM deems to warrant or on which CITY has specifically requested action in writing. Each suit filed shall seek: personal judgment against the individual taxpayer(s) for all taxes for which the taxpayer can be held personally liable, penalty and interest; fore- closure of any tax lien which may exist by operation of law; and any and all court costs incurred in prosecuting the lawsuit, and any collection fees or attorney's fees which the taxpayer is obligated to pay. FIRM shall perform litigation responsibilities and protect CITY's legal remedies including appeals, preparation of any documents required, post judgment activities, and any other actions necessary in order to collect the delinquent taxes. Request for Proposal #3335 Delinquent Tax Collection Attorney B. FIRM will assume the representation of CITY in all lawsuits, including all pending lawsuits, involving the collection of delinquent taxes and enforcement of the tax lien including, but not limited to bankruptcy litigation, claims and actions required to be filed with federal agencies such as FDIC, FSLIC and RTC, interventions in suits filed on behalf of any other taxing unit's current suits, and any other suit or litigation which may involve or relate to the collection of delinquent taxes. FIRM will inform CITY of any counterclaims or cross -actions filed against CITY. C. Upon request, provide legal advice and assistance to CITY in the acquisition of property pursuant to the Property Code for public purpose use. 7. TAXPAYER SERVICES In addition to litigation, FIRM further agrees to provide taxpayer service without charge. As such, FIRM agrees (1) to provide CITY tax collector legal advice and written opinions regarding tax matters upon request; (2) to respond to taxpayer inquiries and to advise CITY, in writing, or, and make any recommendations concerning installment payment agreements and settlement agreements proposed by the taxpayer. CITY shall have final determination in acceptance of all installment payments or settlement agreements within parameters established by CITY. FIRM shall have discretion to enter into installment agreements subject to CITY's prerogative of final determination. In all demand letters and all communications with taxpayers, FIRM shall inform and instruct the taxpayer to remit its payment to CITY. If remittance is received by FIRM, it must be transmitted in its entirety to CITY and received for processing by 11:30 a.m. of the following business day. Checks made payable to FIRM shall be endorsed by FIRM to CITY. No check, cash or money order for payment of delinquent taxes shall be deposited in any FIRM account. 8. PROGRESS REPORTS FIRM agrees to make delinquent tax collection progress reports to CITY monthly and quarterly, in a format containing information as requested by CITY's Assistant City Manager for Fiscal and Municipal Services. Progress reports may include, without limitation: a. Number and types of communication with Delinquent Taxpayers b. Summary of all delinquent accounts collected. C. Number of suits filed d. Detailed list of suits filed e. Number ofjudgments rendered f. Detailed list of judgments rendered g. Number of warrants issued/served h. Detailed list of Bankruptcies and Status of those properties i. Number of properties submitted to Court's for auction j. Detailed list of properties submitted to Court's for auction, with date submitted and most recent status k. Number of properties sold I. Detailed list of properties sold or reverting to taxing entity because of non sale Request for Proposal 43335 Delinquent Tax Collection Attorney Within parameters established at the initiation of the collection program, FIRM shall advise CITY of any case in which FIRM's investigation has revealed that the taxpayer cannot be found, the enforcement of the tax lien cannot be accomplished, or further attempts at tax collection would be futile and FIRM's recommendation relative to the proper disposition of the case. In such cases, the CITY shall advise FIRM as to the appropriate disposition of the account. 9. COMPENSATION A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees to pay FIRM _ percent (_°/u) of the total amount of all delinquent taxes, penalty and interest for the tax years covered by this Contract as authorized by §33.48(a)(5) of the Property Tax Code. All compensation set forth above shall become the property of FIRM at the time payment of taxes, penalty and interest are received by CITY. The _ percent (_%) collection fee will only be paid on taxes which remain delinquent after July I of the year on which they became delinquent, pursuant to the Property Tax Code §33.07. Said collection fee will only be paid to FIRM after it has been received by CITY from taxpayer or from forced sales. FIRM shall not be entitled to the aforesaid _ percent C2%) unless and until FIRM has taken some action in connection with recovering delinquent taxes. The transmittal of a notice of delinquency shall constitute sufficient action in order to entitled FIRM to the fee aforesaid. As compensation for the services rendered hereunder by FIRM for the collection of taxes which are not eligible for the additional penalty as authorized by Property Tax Code §33.07 and upon which suit has been filed, the compensation shall be reasonable attorney's fees approved by the court and not exceeding percent C21o) of the total amount of taxes, penalties and interest due CITY. In no event shall FIRM be entitled to any fee unless and until CITY actually collects the delinquent taxes, penalty, interest, court costs or collection costs or attorney's fees from the taxpayer or from the proceeds of a forced sale or foreclosure. In no event shall FIRM be entitled to any fee unless said fee is collected by CITY during the term of this Contract or fee is collected by CITY on account(s) upon which FIRM is attorney of record at the time of judgment. CITY shall pay said fees to FIRM by check monthly. No interest shall be accrued on any late payment. B. The compensation set forth in paragraphs 9 10 and 13 of this Contract shall be the total compensation due from CITY to FIRM for all services provided pursuant to this Contract and in no event shall FIRM seek any additional compensation from CITY. 10. COLLECTION OF OTHER DELINQUENT ACCOUNTS FIRM shall, upon written request of City, undertake the collection of delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens. The collection of these accounts shall be undertaken on the basis of attorney's fees assessed to and collected from the debtors. CITY agrees to pay FIRM, as compensation, all amounts received as attorney's fees on delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens which are collected during the term of this Contract as a result of FIRM's collection efforts. Request for Proposal #3335 Delinquent Tax Collection Attorney 11. CONFLICTS OF INTEREST FIRM agrees not to represent any client who has an adversary position with the City of Denton, engage in any conflict of interest to fully comply with the Texas Disciplinary Rules of Professional Conduct (Subtitle G - Texas Government Code) for the duration of this Contract. 12. TERM This Contract shall have a term of three (3) years, beginning on July 1, 2005 and ending on June 30, 2008. This Contract may be extended for two additional one-year terms upon the CITY giving written notice to FIRM of its desire to continue this Contract at least thirty (30) days prior to the expiration of the initial three-year term, This Contract shall continue in full force and effect from month to month at the option of CITY, unless either party delivers written notice to the other party of its intent to terminate this Contract at least thirty (30) days prior to the date of the intended termination. FIRM shall have an additional six months to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy claims filed prior to the termination date, and shall have the exclusive right to compensation of fees earned due to these suits during this six month period. CITY shall have the right to sooner terminate this Contract by giving thirty (30) days' written notice of such intention, or in the event of any of the events taking place under Section 33 Termination of Agreement". In case of such termination, FIRM shall be entitled to receive and retain all compensation due up to the date of said termination. Upon termination, FIRM shall immediately deliver all files in their, entirety to CITY at no cost to CITY. 13. ATTORNEY'S FEES In eminent domain and other judicial proceedings, FIRM will be entitled to only those attorney's fees awarded by the court and then only if collected by CITY. In bankruptcy proceedings, FIRM shall be entitled to a fee of 15% of the tax, interest, and penalty actually collected by CITY. FIRM agrees to file and diligently pursue all claims on behalf of CITY in bankruptcy, eminent domain and other judicial or administrative proceedings whether federal or state in nature. 14. TAX WARRANTS Upon request and authorization of CITY, FIRM shall prepare and pursue the issuance of tax warrants. FIRM shall then coordinate the seizure of personal property pursuant to warrant and actually accompany the Tax Collector to the location of the personal property which is to be seized to insure the necessary procedures have been followed. 15. SETTLEMENTS No settlements or compromises of taxes, penalty or interest shall be effected where prohibited by law and where authorized by law, only upon approval by CITY. If a taxpayer requested waiver is upheld as provided by §33.011 of the Tax Code, FIRM will bear the costs of suit if it failed to notify the taxpayer of the delinquency prior to filing of the suit. Request for Proposal #3335 Delinquent Tax Collection Attorney 16. NOTICE Any notice or other written instrument required or permitted to be delivered pursuant to the terms of this Contract shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or FIRM, as the case may be, at the following addresses: CITY FIRM City of Denton, Texas ATTN: Assistant City Manager for Fiscal and Municipal Services 215 E. McKinney Denton, Texas 76201 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. 17 COLLECTION REQUIREMENTS FIRM agrees to collect, between July I, 2005 and June 30, 2006, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 2004 delinquency existing on July 1, 2005 and not less than thirty percent (30%) of the aggregate delinquent tax roll each twelve months. FIRM agrees to collect, between July 1, 2006 and June 30, 2007, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 2005 delinquency existing on July 1, 2006 and not less than thirty percent (30%) of the aggregate delinquent tax roll each twelve months. FIRM agrees to collect, between July 1, 2007 and June 30, 2008, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 2006 delinquency existing on July 1, 2007 and not less than thirty percent (30%) of the aggregate delinquent tax roll each twelve months. Furthermore, should the CITY invoke the option to extend this contract beyond June 30, 2005 as prescribed in Section 12, then the FIRM agrees to collect between the July I and subsequent June 30 time period, for each year the contract is extended, not less than sixty percent (60%) of the total dollar value of the adjusted base tax from the most recent tax year of the delinquency existing on July I of each respective year and not less than thirty percent (30%) of the aggregate delinquent tax roll each twelve months. If FIRM does not collect the above referenced amount each year, it shall provide CITY with legal services, programming and computer services, or data processing equipment with a value not less than Ten Thousand Dollars ($10,000.00) or, at the option of CITY, FIRM shall pay CITY the sum of Ten Thousand Dollars ($10,000.00) on or before August 15 of the year it fails to collect the minimum amount specified herein. 18. VENUE The terms, obligations and requirements of this Contract shall be construed in accordance with the laws of the State of Texas. The obligations and requirements of the parties hereto are performable in Denton County, Texas. Any litigation involving this Contract shall be tried in a court of competent jurisdiction sitting in Denton County, Texas. Request for Proposal #3335 Delinquent Tax Collection Attorney 19. ACCEPTANCE OF EMPLOYMENT In consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM hereby accepts the employment of CITY and undertakes the performance of this Contract as above stated. 20. DIRECTIVES All directives between FIRM and CITY shall be confirmed in writing. 21. COVENANT NOT TO SUE FIRM further agrees not to bring any cause of action against CITY relative to this Contract. Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1.00 and the filing of such cause of action shall be considered a material breach of this Contract. 22. AMBIGUITY Any ambiguity within this Contract shall be liberally interpreted in favor of CITY. 23. ASSIGNMENT The rights and responsibilities of CITY under this Contract may be assigned by the City Council to another governmental unit in Denton County without approval of FIRM. It is understood and agreed that this is a professional services contract and CITY is contracting for the unique services of FIRM. FIRM's rights and responsibilities under this Contract may not be assigned by FIRM to another law firm or collection agency without written approval of the assignment by the City Council. 24. INDEMNITY AGREEMENT The FIRM shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of the FIRM or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Contract. Nothing in this Contract shall be construed to create a liability to any person who is not a party to this Contract, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Contract, including the defense of governmental immunity, which defenses are hereby expressly reserved. , Request for Proposal #3335 Delinquent Tax Collection Attorney 25. INSURANCE During the performance of the services under this Contract, FIRM shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate. The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without 30 days prior written notice to CITY and FIRM. In such event, the FIRM shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. 26. EXHHIITS RFP #_attached hereto as Exhibit "A" and the FIRM's response to the RFP attached hereto as Exhibit "B" are incorporated herein as if set forth at length and made a part hereof. The provisions of Exhibit "A" and Exhibit "B" shall set forth obligations and duties of the FIRM to the extent that they do not conflict with other provisions set forth in this Contract, which contractual provisions shall control. 27. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Contract by submitting the dispute to arbitration or other means of alternate dispute resolution, such as mediation. No arbitration or alternate dispute resolution arising out of or relating to this Contract, involving one party's disagreement, may include the other parry to the disagreement without the other's approval. 28. ENTIRE AGREEMENT This Contract, consisting of _ pages and _ exhibits, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. 29. COMPLIANCE WITH LAWS The FIRM shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. Request for Proposal #3335 Delinquent'rax Collection Attorney 30. DISCRIMINATION PROHIBITED In performing the services required hereunder, the FIRM shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 31. PERSONNEL AND EQUIPMENT A. The FIRM represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Contract. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. FIRM shall inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Contract. B. All services required hereunder will be performed by the FIRM or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. C. The FIRM represents that it has or will secure, at its own expense, the hardware, software, and other resources required to perform, in a timely manner, all the services required under the terms of this contract. D. FIRM will have, or will establish, a Denton office by the date the delinquent accounts are turned over to FIRM, and will provide a 1-800 number, other toll - free service, to its main office if same is not local to Denton: or the FRIM will be required to provide at least one full time staff member of the FIRM to the office in the City of Denton Tax Office. The FIRM shall pay rent for the space in an amount of one thousand ($1,000) dollars monthly, adjusted annually based on CPI. The City shall provide a working area and computer 32. ASSIGNABILITY The FIRM shall not assign any interest in this Contract, and shall not transfer any interest in this Contract (whether by assignment, novation, or otherwise) without the prior written consent of the CITY. 33. TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Contract, either party may terminate by giving thirty (30) days advance written notice to the other parry. B. This Contract may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Contract. No such termination will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance, and not less than 30 calendar days to cure the failure, and (2) an opportunity for consultation with the terminating party prior to termination. Request for Proposal #3335 Delinquent Tax Collection Attorney C. If the agreement is terminated prior to completion of the services to be provided hereunder, FIRM shall immediately cease all services and shall render a final bill for services to the CITY within 30 days after the date of termination. The CITY shall pay FIRM for all services properly rendered and satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of termination, in accordance with Article 9 "Compensation". Should the CITY subsequently contract with a new consultant for the continuation of services on the Project, FIRM shall cooperate in providing information. The FIRM shall turn over all documents prepared or furnished by FIRM pursuant to this Contract to the CITY on or before the date of termination, but may maintain copies of such documents for its use. 34. MODIFICATION No waiver or modification of this Contract or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Contract, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as herein set forth. 35. INDEPENDENT CONTRACTOR FIRM shall provide services to CITY as an independent contractor, not as an employee of the CITY. FIRM shall not have or claim any right arising from employee status. 36. MISCELLANEOUS A. The following exhibits are attached to and made a part of this Contract: Exhibit "A" - Request for Proposals; Exhibit "B"-FIRM's proposal. B. FIRM agrees that CITY shall, until the expiration of three (3) years after the final payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the FIRM involving transactions relating to this Contract. FIRM agrees that CITY shall have access during normal working hours to all necessary FIRM facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. CITY shall give FIRM reasonable advance notice of intended audits. C. For the purpose of this Contract, the key persons who will perform most of this work hereunder shall be . However, nothing herein shall limit FIRM from using other qualified and competent members of its firm to perform the services required herein. D. FIRM shall commence, carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing the projects, FIRM shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the CITY. Request for Proposal#3335 Delinquent Tax Collection Attomey E. The CITY shall assist the FIRM by placing at the FIRM's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the FIRM to enter in or upon public and private property as required for the FIRM to perform services under this Contract. 37. TIME OF THE ESSENCE Time is of the essence with respect to all matters covered by this Contract. 38. CAPTIONS The captions appearing at the first of each numbered section are inserted and included solely for convenience and shall never be considered or given any effect in construing this Contract. This Contract is executed on behalf of CITY by the presiding officer of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes and by a partner .of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to execute this document on behalf of FIRM. WITNESS the signature of all parties hereto in triplicate originals this the day of , 2005, Denton County, Texas. CITY OF DENTON, TEXAS MICHAEL A. CONDUFF CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Request for Proposal 43335 Delinquent Tax Collection Attorney APPROVED AS TO LEGAL FORM: CITY ATTORNEY M, FIRM: C Exhibit C • Purchasing Department 901-B Texas St. Denton, TX 76209 (940) 349-7100 RFP #3335 Request for Proposals For Delinquent Tax Collection Attorneys PROPOSALS DUE: MAY 10) 2005 2:00 P.M. Bid submitted by: S,4-OKo 4-6C22®vyf/ s . � . Z . Company Name 4/12/2005;3:36 PM Materials Management 901-B Texas St. Denton, TX 76209 (940) 349-7100 ADDENDUM #1 RFP #3335 Request for Proposals For Delinquent Tax Collection Attorneys _---B-1-DS-D-U- -May 1-02-005- 2:00 P.M. Proposal submitted by: •; l l�1 /dr�� Company Name 0 Request for Proposal#3335 Delinquent Tax Collection Attorney • ADDENDUM #1 41 Addendum #1 to be returned with Bid Proposal The following are changes to the bid specifications: Replace attached pages 15-19 - Exhibit B-1 through B-5 Add attached Exhibit C - Five -Year Collections History Add attached Sample Contract —Exhibit D NO OTHER CHANGES AT THIS TIME. This form shall he signed and returned with your hid. Name: Axe 14. Signature: j _ %% Company:y_3Aft lro 4 Title: Date: ,ay U5, 2P-S • Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT A-1 Page 10 of 19 NAME OF TAXING UNIT Toi" C'E (Q06) If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: G,1 c Fax Number: 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ ao `l4. 3C\4 . 1 Amount of 2003 tax due 6-30-04 $ s3-S . Amount of 2003 tax due 3-31-05 Partial Yr $ S yq L,3 . Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31/05 $ 3� U 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ 3 l Amount of 2002 tax due 6-30-03 $ , S .1 Amount of 2002 tax due 6-30-04 $ Total Collections in F/Y 2003 (2002 tax collections in FY2003, 7/1/03 — 6/30/04) $ S 2001 Tax Year F/Y 2002 Ori inal 2001 tax levy 10-1-01 $ �4 GYi-3 1 kA , G Amount of 2001 tax due 6-30-02 $ Amount of 2001 tax due 6-30-03 $ Total Collections in F/Y 2002 2001 tax collections in FY2002, 02 - 6/30/03 $ �)ct cL c1-> 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 Amount of 2000 tax due 6-30-01 $ a tn535. Amount of 2000 tax due 6-30-02 $ 3 S Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01 — 6/30102 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ 13 1 Amount of 1999 tax due 6-30-00 $ Amount of 1999 tax due 6-30-01 $ Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30101 $ • I, JV Jlle am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given abov -and that it is correct.) Signatur _-�/? Date a G oS Request for Proposal #3335 Delinquent Tax Collection Attorney Page 11 of 19 • EXHIBIT A-2 NAME OF TAXING UNIT A t L lF 1 h_b C5o 1 If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: ff1I-1G Fax Number: U'A 2003 Tax Year F/Y 2004 Ori final 2003 tax lev 10-1-03 $ 3 0 Amount of 2003 tax due 6-30-04 $ Amount of 2003 tax due 3 31-05 Partial Yr $ Total Collections in F/Y 2004 2003 tax collectionsin FY2004, 7/1/04 - 3131/05 $ t 1 14 s3. qq 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ --Sa 1 l U Amount of 2002 tax due 6-30-03 $ A-6k, Amount of 2002 tax due 6-30-04 $ Total Collections in F/Y 2003 {2002 tax collections in FY2003, 7/1/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ qq Amount of 2001 tax due 6-30-02 $ s . Amount of 2001 tax due 6-30-03 $ 53-4 Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 — 6/30/03 $ 3a 3 i5a.so 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 $ to _ Q S` Amount of 2000 tax due 6-30-01 $ Amount of 2000 tax due 6-30-02 $ UB Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01—6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ S So � Amount of 1999 tax due 6-30-00 $ Lt qn b Amount of 1999 tax due 6-30-01 $ cl Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1101 — 6/30/01 $ q °t , 1) •I,� %2 %o i f7v:- , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given ab ve and that it is correct. Signatur u Date S d 43 - • • Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT A-3 Page 12 of 19 NAME OF TAXING UNIT �E_v A l',;_N) (`_) \O,) If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: (Gyc) -�>`\A- Fax Number: (G'vc) 3yG- 3�c�t 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 Amount of 2003 tax due 6-30-04 $ v. Amount of 2003 tax due 3-31-05 Partial Yr $ 3 a Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 - 3131105 $ `\ Oa, 34to t to 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ C Amount of 2002 tax due 6-30-03 $ l Amount of 2002 tax due 6-30-04 $ 1 q O . i Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/1/03 - 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 Amount of 2001 tax due 6-30-02 $ �A 1 s Amount of 2001 tax due 6-30-33 $ O Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 - 6/30/03 $ -20 ri t 9 D'1 .'lS 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 $ c 9'A Amount of 2000 tax due 6-30-01 $ 1k _ Amount of 2000 tax due 6-30-02 $ i Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1/01 - 6/30102 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ . Amount of 1999 tax due 6-30-00 $ o Amount of 1999 tax due 6-30-01 Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30/01 $ t l `l • I, J yletle ,-� vntc _ am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given abo e-and that it is correct. Signature •--� Date 1 Request for Proposal #3335 Delinquent Tax Collection Attorney Page 13 of 19 r1 • EXHIBIT A-4 NAME OF TAXING UNIT l ArF TAu�aS If the taxing unit or Appraisal District collects for more than one faxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: Qyo Fax Number: qk l— VA- 2003 Tax Year F/Y 2004 Ori inal 2003 tax levy 10-1-03 $ t k.7 Amount of 2003 tax due 6-30-04 $ 25 -I q01,-\ Amount of 2003 tax due 3-31-05 Partial Yr $ Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 — 3/31/O5 $ a U-9 1-VNy a 2002 Tax Year F/Y 2003 Ori final 2002 tax le 10-1-02 $ 5 \ 3 Amount of 2002 tax due 6-30-03 Amount of 2002 tax due 6-30-04 $ o Total Collections in F/Y 2003 2002 tax collections in FY2003, 711/03 — 6l30/04 " $ 3>0l 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 Amount of 2001 tax due 6-30-02 $ S o33 .S Amount of 2001 Tax due 6-30-03 $ 4 s .B Total Collections in F/Y 2002 2001 tax collections in FY2002, 7/1/02 — 6/30103 $ 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 �n Amount of 2000 tax due 6-30-01 Amount of 2000 tax due 6-30-02 Total Collections in F/Y 2001 ' 2000 tax collections in FY2001, 7/1/01 — 6/30/02 $ I l0 1 , 1 Q51•orl 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ -,I, \tj 3N. Amount of 1999 tax due 6-30-00 $ vk L'�A Amount of 1999 tax due 6-30-01 $ b �c1o.S Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01 — 6/30/01 $ t Q b rl • 1, 15161x'e fY yr, , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above -and that it is correct. Signature Date r 1 U Is Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT A-5 Page 14 of 19 NAME OF TAXING UNIT \' If the taxing unit or Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: ; F �F M05S ti 1 A Telephone Number: qy 3 - X Fax Number: OtLAO 3L\q_�tSC\ 2003 Tax Year F/Y 2004 Original 2003 tax levy 10-1-03 $ ?"A 0 \ I . Amount of 2003 tax due 6-30-04 $ A Amount of 2003 tax due 3-31-05 Partial Yr $ G � U. y Total Collections in F/Y 2004 2003 tax collections in FY2004, 7/1/04 - 3/31/05 $ l , s 10 DL `a b 2002 Tax Year F/Y 2003 Original 2002 tax levy 10-1-02 $ ' q yg. Amount of 2002 tax due 6-30-03 $ Amount of 2002 tax due 6-30-04 $ -. t . Total Collections in F/Y 2003 2002 tax collections in FY2003, 7/1/03 — 6/30/04 $ 2001 Tax Year F/Y 2002 Original 2001 tax levy 10-1-01 $ 5 la e Amount of 2001 tax due 6-30-02 $ S Amount of 2001 tax due 6-30-03 $ t Total Collections in F/Y 2002 2001 tax collections in FY2002, 711/02 — 6/30/03 $ . 1 S 6 Q 2000 Tax Year F/Y 2001 Original 2000 tax levy 10-1-00 $ Amount of 2000 tax due 6-30-01 Amount of 2000 tax due 6-30-02 Total Collections in F/Y 2001 2000 tax collections in FY2001, 7/1101 — 6/30/02 $ 1999 Tax Year F/Y 2000 Original 1999 tax levy 10-1-99 $ Amount of 1999 tax due 6-30-00 $ 1 3 Amount of 1999 tax due 6-30-01 $ ko8 Total Collections in F/Y 2000 1999 tax collections in FY2000, 7/1/01—6/30/01 $ U°1 e ;k 6 • I, tt�✓ ,��6_r'Sm , am the Tax Assessor -Collector of the above named taxing unit: do certify that I have reviewed the tax collection data given aboveyand that it is correct. Signature Date o o • • Request for Proposal #3335 Delinquent Tax Collection Attomey EXHIBIT B-1 NAME OF TAXING UNIT Tc,ty \ C: F If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: YF F t 1cS` t A N Telephone Number: Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ \Ac'8 0� June 30, 2004 2003 & Prior Year Taxes Due - Amount of cumulative prior years taxes due as of $ 1 `�� �{ Q''� C March 31, 2005 2003 & Prior Year Taxes Due t Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 % 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ ay IF ` �, lo�l . lc—D-) June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulativetax roll (2002 & prior) - - June 30, 2003 thin June 30, 2004 5' t- % 2001 Tax Year /Y 2002 Amount of cumulative prior years taxes due as of $ �j3'3 _quy . \R June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ y . pA June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior) - June 30, 2002 thin June 30, 2003 Lod . % . 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ y 3 \ -. \ 5 une4o,--2-00d--20o0-&-P-r-iorY-ear-Faxes-Du —...__..-----------------_.--- - - Amount of cumulative prior years taxes due as of c\ 9 t-1S . Q�1 June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 i % 1999 Tax Year 1Y 2000 Amount of cumulative prior years taxes due as of $ 3d� v 1Q rl -Zi3 June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ a 1 -\ 1 O'% tr \ 3 June 30, 2001 1999 & Prior Year Taxes Due - Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thm June 30, 2001 Sri-t % • I, cS /1z f, _ , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signatures�� Request for Proposal#3335 Delinquent Tax Collection Attorney • EXHIBIT B-2 • NAME OF TAXING UNIT 6 LC-v l 1t3b If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: (r-l`\c)'>�AG Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ June 30, 2004 2003 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ Cl March 31, 2005 2003 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 2002 Tax Year 1Y 2003 Amount of cumulative prior years taxes due as of $ y 65 c353 June 30, 2003 2002 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ tg LQ \t,° 5 6 June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thru June 30, 2004 I5 .r-1 I % 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as of $ of %7 June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior). June 30, 2002 thru June 30, 2003 5 . % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ a`)3\Q'1 .une.3D,-200 2000-&-P-rior-Yea�Taxes-Du — ------ Amount of cumulative prior years taxes due as of $ t A `A \Iq'-A, -7�> June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ a \(. , ril-1 O June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ td �Ct \rl b June 30, 2001 (1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thm June 30, 2001 % • I, .c,7�`ec�4 �f /b1J✓.�� - am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature ,a 1] • C � J Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT B-3 NAME OF TAXING UNIT L A kz-- a? A Lt. R -, l S7 If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: �3 `E_ —�— t-1CtSS" Rom_ Telephone Number: ')S OC' Fax Number: 1 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of $ u{ Q June 30, 2004 2003 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ March 31, 2005 (2003 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 y S . % 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ 1 O-j s�3�k June 30, 2003 2002 & Prior Year Taxes Due) Amount of cumulative prior years taxes due as of $ 3195 ; Oyu June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) - June 30, 2003 thru June 30, 2004 S % 2001 Tax Year F/Y 2002 Amount of cumulative prior years taxes due as of $ \ ,O June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior) June 30, 2002 thru June 30, 2003 % 2000 Tax Year F/Y 2001 mount-oftumulatve-pnoryears-taxes-dueasof— June 30, 2001 2000 &Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ atQy June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thru June 30, 2002 LACj .C, % 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ 3 j y LA June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ "a-'�-& O7�s 1 O 1 June 30, 2001 1999 & Prior Year Taxes Due , Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thru June 30, 2001 S % I ,<16k �S1wi�- , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature E • • Request for Proposal 43335 Delinquent Tax Collection Attorney EXHIBIT B-4 NAME OF TAXING UNIT If the taxing unit of Appraisal District collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: Telephone Number: (Cl Fax Number: 2003 Tax Year F/Y 2004 Amount of cumulative prior years taxes due as of June 30, 2004 2003 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ -1 March 31, 2005 2003 & Prior Year Taxes Due) Reduction rate of cumulative tax roll (2003 & prior) June 30, 2004 thru March 31, 2005 % 2002 Tax Year F/Y 2003 Amount of cumulative prior years taxes due as of $ June 30, 2003 2002 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thru June 30, 2004 31c .rl 2001 Tax Year /Y 2002 Amount of cumulative prior years taxes due as of $ rA-D, June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ �� . q© June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior) - - June 30, 2002 thni June 30, 2003 S 3 O % 2000 Tax Year F/Y 2001 mountuf-Lmnmlative-prioryears-taxesdueasnf-- —V- k�l,-( D"Y�- �o --- ----- June 30, 2001 2000 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ 30 10, 03�1 June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thin June 30, 2002 % 1999 Tax Year T1Y 2000 Amount of cumulative prior years taxes due as of $ LA y 1, ` 5 O --;k- June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ to, I June 30, 2001 1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thin June 30, 2001 3�.u\ am the Tax Assessor -Collector of the above named taxing unit, do certify that I have rev wed tl}e tax collection data given above and that it is correct. Signature 0 0 Request for Proposal#3335 Delinquent Tax Collection Attorney EXHLBIT B-5 NAME OF TAXING UNIT \ -\7 If the taxing unit of Appraisal Distract collects for more than one taxing unit and the figures shown below are an aggregate of multiple taxing units, give the name of each taxing unit. (Use additional pages if necessary.) Name of Tax Assessor Collector: 5i 'ja MC) Se, Telephone Number: \ct--'sSO� Fax Number: Year F/Y 2004 cumulative prior years taxes due as of 004 2003 & Prior Year Taxes Due $ 5.� \C \'1 f cumulative prior years taxes due as of 2005 2003 & Prior Year Taxes Due FA $ \ , C) �A 1. rate of cumulative tax roll (2003 & prior) 004 thin March 31, 2005 �3 2002 Tax Year fY 2003 Amount of cumulative prior years taxes due as of June 30, 2003 2002 & Prior Year Taxes Due $ S , l°�A tSC Amount of cumulative prior years taxes due as of June 30, 2004 2002 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2002 & prior) June 30, 2003 thm June 30, 2004 - . O 2001 Tax Year fY 2002 Amount of cumulative prior years taxes due as of $ June 30, 2002 2001 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of June 30, 2003 2001 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2001 & prior) June 30, 2002 thin June 30, 2003 % 2000 Tax Year F/Y 2001 Amount of cumulative prior years taxes due as of $ y 71 "7S tine-30,N01-3000-&-Mor—Y-ear Taxes Duc- -- -- Amount of cumulative prior years taxes due as of $ d , 9 SS _t yO�O . June 30, 2002 2000 & Prior Year Taxes Due Reduction rate of cumulative tax roll (2000 & prior) June 30, 2001 thin June 30, 2002 1999 Tax Year F/Y 2000 Amount of cumulative prior years taxes due as of $ 3 , y IQy \ 1A-;)'5 Z\ G June 30, 2000 1999 & Prior Year Taxes Due Amount of cumulative prior years taxes due as of $ June 30, 2001 1999 & Prior Year Taxes Due Reduction rate of cumulative tax roll (1999 & prior) June 30, 2000 thin June 30, 2001 a�-5 I, '-<� :1�e , am the Tax Assessor -Collector of the above named taxing unit; do certify that I have reviewed the tax collection data given above and that it is correct. Signature . n LAW OFFICES OF SAWKO & BURROUGHS, L.L.P. PROPOSAL FOR THE TAX ATTORNEY CONTRACT DELINQUENT TAX COLLECTIONS PROPOSAL SAWKO& BURROUGHS, L.L.P. DELINQUENT PROPERTY TAX COLLECTIONS FOR CITY OF DENTON RFP #3335 SUBMITTED BY: GREGORY J. SAWKO and MARK A. BURROUGHS SAWKO & BURROUGHS, L.L.P. 1100 Dallas Drive, Suite 100 Denton, Texas 76205 (940) 382-4357 office Bid Due May 10, 2005, 2:00 p.m. INTRODUCTION COMPETITIVE ADVANTAGES OF OUR FIRM We are the only Denton County law firm capable and experienced in performing all tax collections services in-house. WE KEEP LOCAL TAXPAYER DOLLARS LOCAL. We developed all of our own software and are dependent on no one outside of Denton for our legal work. Being a wholly local firm with strong commitments to this City and Region, we have a strong personal stake in performing this contract in a superior manner. Since we already collect for Denton ISD, there would be zero start-up time, as we are ALREADY enforcing collections against the very same tax accounts. Adding the City of Denton to our collections procedures, suits, etc. would be extremely efficient. Further, we have unequalled access to information to aid us in enforcing collections against area delinquencies without ANY transitions, delays or costs. Our attorneys and staff are located RIGHT HERE. Any taxpayer, City Council member or Administrator can get immediate, personal attention on any tax matter. No one else offers access to expert tax attorneys right here in Denton. We have total flexibility to accommodate any collections performance request made by the CITY OF DENTON without delay. Our attorneys are not "circuit riders" attempting to service taxing units around the state as our competitors do. Competitors, including the City's current tax law firm, with so called "local counsel" retain all substantive cognizance, control and performance with the non -local firm. . Since we are the cognizant attorneys and are focused only on this local area, we can work much more closely with delinquent taxpayers, including but not limited to, making pay -out arrangements and helping taxpayers to sort out the myriad of legal problems that often have caused the delinquency in the first place. None of the City's current firm's legal work is produced here in Denton, or even in Denton County. The Texas Property Tax Code sets out the "rules of the game" for all tax collections services across our state. All Texas tax attorneys must operate under these rules. What sets one firm apart from another is the time and attention they give to their local accounts. All of our attention is focussed here, not spread out all over the region or state. We have statewide experience without the major negative of having to divert our attention to widespread, unrelated taxing units as do all other competing tax firms, including the City's current firm. Our tax statements mailed to taxpayers encompass all legal costs and fees due. Virtually all other tax attorneys' statements only show tax, penalty and interest, or no amounts at all. If court costs, filing fees, citation costs and the like are also due, the taxpayer is forced to find these out on their own. Not only does this impose an undue hardship on the average local taxpayer, this often results in a failure to pay the amounts not appearing on those statements. The result is that the Court will force a trial for court costs only. 10 DELINQUENT TAX COLLECTIONS PROPOSAL SAWKO& BURROUGHS, L.L.P. Our attorneys have legal background in all areas of law necessary to optimize collections and answer complex taxpayer questions, such as real estate, business, bankruptcy and corporate law. We provider "turn -key" collections enforcement. We have even authored tax legislation and • testified before the Texas Legislature regarding property taxes and other issues. There is nothing in tax collections performance that Sawko & Burroughs, L.L.P. cannot do, and do better than any competing firm for services performed in Denton County, Texas. We are the most aggressive, comprehensive tax collections firm providing service to North Texas. Although we have statewide experience in tax collections, we have chosen to concentrate our services right here in the Denton region. n LJ 10 DELINQUENT TAX COLLECTIONS PROPOSAL $AWKO & BURROUGHS, L.L.P. Executive Summary 0 1. Our Background We have a long history of extremely successful collections services provided to a number of different taxing entities statewide. Mark Burroughs began his tax collections work in the Houston area in 1982, working for Fluke & Burroughs, P.C. The law firm's senior partner worked in property tax collections since the mid-1970s. (Lewisville ISD was Mr. Huke's largest client at that time.) For efficient sake and to enable us to be more responsive to each of our client's needs, we have concentrated our collections services the last 10+ years in North Texas. Since all tax firms essentially offer the same services under the Tax Code, it is how these services are rendered that is most telling. Further, we have worked many years with the Denton Central Appraisal District, Denton County Tax Office, Denton County Sheriffs Department, the District Clerk, District and other Courts, the Denton County Deed Records office and all other supporting entities essential to efficient tax collections enforcement in Denton County. We have maintained very positive relationships with all of these supporting entities, often going 'above and beyond the call' to remove 'bottlenecks' (e.g. we often help prepare suit folders for the District Clerk to expedite suit filings). 2. Descriptive Literature We have provided as part of our Proposal a thorough narrative describing many elements of our ad valorem property tax collections services. We offer complete "turn -key" services at no cost to the City, all in-house. In the Appendix to our proposal is an accounting from the Denton • County Sheriffs Department listing all property tax foreclosures by all taxing entities in this County from 1987 to the present. Note: Of the 579 properties auctioned for back taxes in Denton County since 1987, even though our firm has represented only one-third of all taxing units and delinquent accounts, 63% (364 properties) were taken to sale by Sawko & Burroughs, L.L.P. Although a tax sale is a last resort undertaken only after numerous attempts to resolve the tax debt, this is a good indicator of the level of effort your attorneys are willing to engage in to enforce collections. We receive no more attorneys fees for this highest level of effort than if payment is received with one phone call or letter; but we feel that is vital that each property owner take seriously their duty to timely pay their taxes. Only through filing suit, taking judgment and foreclosure on some consistent basis will this purpose be fully effected. Taking judgment and selling "dead-end" property is also the only way to avoid ultimately losing taxes through statutes of limitation and putting them back on the paying tax rolls. 3. Communications With City This firm is available any time for communications with City staff and the City Council. We are familiar with all key City personnel and already have established clear, open and direct lines of communication with all requisite parties. DELINQUENT TAX COLLECTIONS PROPOSAL SAWKO & BURROUGHS, L.L.P. 4. Overview of Services (Some Unique) A. This firm performs every element of tax collections legal services as authorized by • law: mass mailing, telephone communications, in -office taxpayer visits with Tax Attorneys here in Denton (unique to our bid), deed research, probate research, assumed name and entity research, site visits, lawsuit filings (most by any bidding law firm), bankruptcies, judgments, appellate work, seizures, reporting services, advice services, etc. B. Sawko & Burroughs, L.L.P., at no cost to any party (without any attorneys fees unless suit is filed), offers to aggressively pursue current -year delinquent personal property and mobile home accounts between February and July 1, the latter being the date other law firms begin all such collections activity (as attorney's fees only then automatically apply). We do this to engender maximum early collections of accounts, soon after they go delinquent, on those tax accounts that by definition are mobile and might be permanently lost due to move -out, closure, bankruptcy, etc. Collaterally, real property also owned by these taxpayers are often paid at this time. C. Our tax statements are the most "taxpayer friendly' in that (1) they are sent out from our local offices, not from San Antonio, Austin or elsewhere as is our competition; and (2) our statements list all costs due. Other tax firms avoid the great deal of time, expense and attention we employ to keep up with court and other costs due and so inform the taxpayer. Our competition merely instruct the taxpayer that other legal costs may be due along with the taxes their letter reflects. This lack of effort routinely leads to the unfortunate situation that the taxes are paid but lawsuits are continued for unpaid court costs only. D. We simply do more legal work, based upon numbers of accounts, to enforce collections. We perform tremendous amounts of title research, file suits, take judgements and go to foreclosures (when all else fails) more than other, tax firms. Our profit margin may be smaller as a result, but our results are at the highest levels. We do this, of course, ever mindful of what our taxing unit clients want in the nature of collections services. E. Everything that we do is with the utmost respect and fair treatment of taxpayers. We live and work in Denton and are very mindful of the political image we cast as representatives of our City. We have personal knowledge of MANY of the businesses and other taxpayers falling delinquent because we live here. This gives us a great advantage in communications, expertise and protection of our taxing unit clients in our collection activities. F. No tax firm has greater local knowledge and expertise than do we. We are able to cater our services to suit your changing needs and priorities because we are centered right here. Your satisfaction is most important to us because we live and work here, and each of our local clients represent an important percentage of our work. Since we depend on you for more, you can expect and will receive more from us. G. We have excellent collections rates and high levels of client satisfaction, primarily based in and around Denton County. DELINOUENTTAX COLLECTIONS PROPOSAL $AWKO& BURROUGHS, L.L.P. H. We are local attorneys performing all of your collections enforcement services in house. Our main competitors either have no local legal presence or are Denton County law • firms, which must subcontract out the essential tax collections services to non -local tax firms. Either way, money, control, expertise, jobs and property tax management flow out of the local area. Sawko & Burroughs, L.L.P. is located at 1100 Dallas Drive, Suite 100, Denton, Texas 76205, where we staff three attorneys and ten staff members. 0 DELINQUENT TAX COLLECTIONS PROPOSAL SAWKO& BURROUGHS, L.L.P. TABLE OF CONTENTS: DELINQUENT TAX COLLECTIONS SERVICES Page I. ENFORCEMENT PROGRAM......................................................... 1 • A. Approach to Superior Service ............................................... 2 B. Computer Hardware and Software ....................................... 3 C. Communicating with Taxpayers ............................................ 5 D. Collection Letters and Notices .............................................. 6 E. Research................................................................................. 7 F. Working with Taxpayers........................................................ 8 G. Lawsuits................................................................................ 9 H. Judgments/Foreclosures....................................................... 10 I. Tax Warrants/Enforcement.................................................... 11 J. Bankruptcies.......................................................................... 12 II. RESUMES....................................................................................... 13 III. REFERENCES................................................................................ 24 IV. PROGRAM POINTS........................................................................ 27 A. Compensation....................................................................... 28 B. Reports and Appearances.................................................... 28 C. Specialization/Expertise........................................................ 29 V. OTHER POINTS GERMANE TO OUR PROPOSAL ....................... 30 VI. PROPOSED CONTRACT FORM VII. APPENDIX A. CITY OF DENTON ACCOUNT ANALYSIS ............................ B. COMPREHENSTIVE TAX FORECLOSURE ACCOUNTING - ALL ATTORNEYS (1987-2004) C. SAMPLE TAX WARRANT/SERVICE FORMS •DELINQUENT TAX COLLECTIONS PROPOSAL SAWKOS BURROUGHS, L.L.P. DELINQUENT TAX COLLECTIONS .DELINQUENT TAX COLLECTIONS PROPOSAL PAGE l of 32 SAWKO& BURROUGHS, L.L.P. ENFORCEMENT PROGRAM DELINQUENT TAX COLLECTIONS ENFORCEMENT PROGRAM • A. OUR APPROACH TO SUPERIOR SERVICE The guiding principle behind our program of collections is to get the taxes paid at the earliest possible time, with the least cost to the taxpayer, and without any cost to our taxing unit clients. We have accomplished this goal with consistently excellent results for our tax clients since we began our efforts in Denton County in the 1970's starting with Lewisville I.S.D. Further, our collection success is accomplished while treating taxpayers with respect, thus minimizing taxpayer angst. We have acquired and developed over the years of representing taxing entities all the required hardware, software, office staff, procedures and highly specialized know-how to accommodate you as a City operating in Denton County. We understand that Tax Collection takes a great commitment of time, financial resources, personnel and many other specific elements to create a successful volume tax collections law practice. We undertook this commitment decades ago when we made tax collections a primary area of specialty. The fruit of our knowledge and history of collections experience in the area is unsurpassed by any competing tax collection law firms. Although we have extensive statewide tax experience, we have concentrated our tax practice in Denton and Cooke Counties. We have established close working relationships with the County Courts, Tax Office and Appraisal District personnel, and all the various administrative and enforcement personnel vital to an effective tax collections practice. There is no substitute for this background and experience in working with collections enforcement personnel locally. Our collections procedures have been catered to accommodate the resources, nuances and idiosyncrasies extant in this community. Having gained experience representing taxing units across the state for over 20 years as a specialty, we have been able to learn and employ a complete array of collections techniques. In this way we are able to approach collections in a manner that will accomplish the highest collections rates, and we avoid making the mistakes history has taught us to avoid. Ad valorem property tax collections is a highly specialized field of legal practice. A non -specialist attorney simply cannot perform this work as efficiently and successfully as one who has devoted a career to this area of work. No other local attorney(s) are qualified to perform these services, including "local counsel" used by some of our competitors. Because of a long history of tax collections experience, we are able to take action on thousands of delinquent accounts while simultaneously devoting the time necessary to address individual taxpayer problems and the numerous exceptions to each rule of law. It is absolutely critical to an effective collections program to handle each delinquency with utmost speed and efficiency. It is our speed and efficiency which allow us to process all delinquent accounts in an equal and uniform manner (as the Tax Code and Texas Constitution require), rather than merely working on a few, "cream -of -the -crop" type accounts. Finally, since we are a local Denton County law firm, all fees paid for these legal services will be kept in Denton County. If equivalent services are available locally, it would strongly benefit the entire community to choose such a local source. •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 2of 32 SAWKOP BURROUGHS, L.L.P. B. COMPUTER HARDWARE AND SOFTWARE 1. HARDWARE AND SUPPORTING EQUIPMENT • We have 15 complete computer work stations designed to operate the delinquent tax collections program. These, in turn, are tied into a network supported by hard drives capable of maintaining records for and processing hundreds of thousands of undivided delinquent accounts, including suit information, payment agreements, telephone contacts, histories, etc. This networked computer server also operates as a back up to support the collections program. The aforementioned stations are fully integrated but independently operated computer systems, each capable of performing any task in our collections work. This enables various tax functions, e.g., printing, file maintenance and inquiries, to take place at the same time as well as to provide redundant back-up systems in cases of emergency, etc. Our systems are highly efficient and have been adapted to accommodate our software so as to provide the most efficient data processing support practicable. In addition to the CPUs, we employ laser printers to accommodate the various types of information dissemination required. We have redundant printing systems also in order to avoid delays for hardware maintenance and repair, not to mention accommodating simultaneous print functions, which is very important during times of mass mailings and other large printings. Other supporting equipment includes scanners, a tape reader for converting Tax Office data transfers by tape, drives for reading cassettes, disks, an automated folding machine to accommodate mass mailings, an automated postage metering and envelope sealing machine, several copy machines and other support equipment. We employ fax/modem equipment in our • computer system to assist in Secretary of State, directory, Court docket and other research to which we are linked. We are linked to various bankruptcy courts for electronic filings, bankruptcy records research, etc. Our computer system is complete in every way to support instantaneous and comprehensive tax collections services. No other law firm offers more in the way of tax collections legal enforcement utilizing computer support than does Sawko & Burroughs, L.L.P. We have made a large, continuing commitment to maintain this level of collections sophistication. •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 3of 32 SAWKO & BURROUGHS, L.L.P. 2. SOFTWARE No property tax law firm has as comprehensive software to support collections as does Sawko & Burroughs, L.L.P. We send out complete delinquent tax bills to taxpayers for every is mailing. No other competing law firm provides taxpayers complete tax information including tax, penalty and interest, court costs, legal description and other explanatory information. This greatly simplifies payments and reduces taxpayer misunderstanding. We have ourselves developed the software programs designed exclusively by and for us to perform tax collections services for Denton County taxing units. We have adapted and fine-tuned this program over the years at great expense in order to provide efficient, comprehensive and versatile functional support of our legal enforcement techniques. Our software readily provides for maintenance and updates for all subject delinquent accounts. Expeditious and reliable account/file maintenance is the most important aspect of our computer processing in tax collections due to the fact that it represents the greatest commitment of time and labor on a per day average over any other aspect of this volume collections practice. Our software provides for printing of tax statements which include all relevant Tax Office information identifying the account, the property, the owners, the base tax, year(s) of delinquency, penalties and interest calculated for any particular month, attorney's fee calculation, all lawsuit information, all filing fees and other costs of court, lienholder information and special notations made regarding the account. As information changes, e.g. changes in ownership, owner's address, partial payments, bankruptcy, suit filing, etc., we make corresponding changes in our database. Additionally, our database structure is flexible, allowing us to add fields for new types of information to be kept with ease. In many instances, our account information may be more • comprehensive and up to date than that of the Tax Office itself. In addition to the day to day processing and file maintenance functions of our software, we are capable of generating many varieties of reports based upon the data on file. Since the record of payment, deletions, property descriptions and totals of outstanding tax are wholly dependent on the City Tax Office, reports on these areas are obtained directly from the City Tax Office. Again, we are capable of presenting some reporting services to the CITY OF DENTON that the Tax Office does not offer, such as breakdowns of real property, business personal property and mobile home delinquencies, listings of accounts by amount of delinquency, legal processing, status of accounts, etc. We retain local software programmers with background in our existing programs to support updates to software (to take advantage of advances made in the computer industry), as well as to overcome any problems encountered in this area per special requests for information and collections processing that our taxing unit client might make. Again, our size gives us a tremendous advantage in that we are large enough to afford only the best in the way of software upgrades, yet we are small and concentrated enough regionally to adapt to whatever our clients need (whereas large tax firms respond only to "big fish" clients and cannot economically adapt to the needs of each one of their clients). DELINQUENT TAX COLLECTIONS PROPOSAL - PAGE 4of 32 SAWKO & BURROUGHS, L.L.P. C. COMMUNICATING WITH TAXPAYERS It is our highest priority, if the delinquent taxes are not immediately paid, to establish actual, open communication with delinquent taxpayers. No "statewide" firm can match our commitment in • this regard in that any taxpayer can speak directly to the tax attorney on a routine basis. NO OTHER LAW FIRM provides expert tax attorney access right here in Denton. We offer the following taxpayer contacts as part of our daily Denton services: ♦ multiple written communications ♦ attempts to make contact by telephone ♦ induce a response by filing suit and sheriffs citation ♦ personal, face to face contact Since the remedies available to force collection of taxes are so onerous and devastating to the taxpayer, we take great strides to fully inform each taxpayer of their responsibilities regarding the property tax due, the available sources of information if a question, misunderstanding, or potential error exists, and what upcoming legal action is scheduled so that the taxpayer has every reasonable opportunity to resolve their delinquency at the earliest time and prior to attachment of additional legal and other costs. Further, if taxpayers, Tax Office or City officials on any level wish to speak directly to an attorney to answer a question or clarify issues, etc., the attorney does and will continue to make himself personally available for such calls. Since our staff is so well acquainted and experienced in Denton County collections, most questions can be answered by those cognizant staff members. Our principal office is located at: • 1100 Dallas Drive, Suite 100, Denton, Texas Additionally, we offer the following toll -free telephone number to accommodate non -local taxpayers (which encompass many on the delinquent tax roll) in answering their questions regarding delinquencies: 1-800-499-7477. Our internet web site is www.dentonlawVers.com and our e- mail address for tax services is taxes@dentonlawyers.com. •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 5of 32 SAWKO tip BURROUGHS, L.L.P. D. COLLECTION LETTERS AND NOTICES We precede every significant step in legal processing, e.g. before the filing of a lawsuit, issuance of sheriffs citation, scheduling of trial, etc., with a courtesy letter or notice (sent at our • expense, of course). Although the Texas Property Tax Code does not require such preliminary contact by your attorney, we have adopted the approach that more attempted contacts are always better than fewer such attempts. It should be noted that we follow this same pattern even on low dollar delinquencies where often the attorney's fee may be less than the mailing costs alone. Although this is true, we do not discriminate against larger accounts by concentrating exclusively on them while ignoring other accounts simply due to their size of delinquency. We make a great effort to maintain an even-handed approach so as to convey to the public, on your behalf, a rigid rule of fairness in our collections program. The success of our collections program and the high volume of actual collections we have achieved allows us to average out our expenses over the many accounts being collected. Our letters and notices often change yearly to reflect changing circumstances within the area. Our program is such that we maintain complete flexibility to adapt to your particular needs at any given time. And given that we perform our tax services in Denton and Cooke Counties only, we can devote 100% of our attention to locally changing needs. All letters, notices and tax statements that we send out are generated internally without reliance on the Tax Office or other entity to provide same to us. This allows for immediate processing of information mailings and responses to taxpayer inquiries. It further allows us to take immediate legal action on any given account(s) no matter the complexity of such action and no matter the availability of Tax Office or other sources of information. Such independence is • essential to efficient performance of tax collections functions. We maintain a close working relationship with the Tax Office, especially where mass mailings are concerned. No such mailings are sent without first notifying the Tax Office of the numbers involved and the content thereof. In this way we can adjust the timing or other circumstances surrounding the mailing so as to avoid scheduling conflicts and other coordination problems. It is of particular importance to the research area of our work that your attorney possesses a background in real estate law, business and corporate law, and even oil and gas law. Otherwise, a great deal of time and effort might be wasted attempting to determine who is actually an interested and/or responsible party on a delinquent account. Ascertaining current interested parties and contacting them is the surest way of securing a prompt payment of delinquent taxes. Costs of our research are never passed on to our taxing unit client, and are generally borne by us. If a lawsuit is filed, it is possible to collect the reasonable costs of research directly from the taxpayer(s) involved as a separate expense. The charge assessed a suited account for research is kept at a minimum and is usually well below market cost. •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE W32 SAWKO tS BURROUGHS, L.L.P. E. RESEARCH OF DELINQUENT ACCOUNTS An absolutely critical element of our collections program is our research of delinquent accounts. We know that if all interested, responsible parties are fully informed of their tax liability • on any particular account, this usually results in payment of the tax. It is for this reason that we place a heavy emphasis in our program on property account research. The goal of our research is identification of the names and addresses of all true owners of the property subject to the tax, all lienholders to the property, and all other interested parties to the subject property (e.g. heirs, corporate officers, former owner(s) if owned during the year(s) of delinquency, etc.). The steps taken in our research routines include, but are not limited to: 1. Use of mailings to identify bad addresses and incorrect ownership information. 2. Obtaining updates from the Denton County Appraisal District and/or City of Denton and/or Denton County Tax Office(s). 3. Searching telephone directories for new information. 4. Review of County Plat Office, Appraisal District records, County Deed Probate and District Court records for available information from lienholders to heirs. 5. Personal contacts with neighbors, lienholders, Tax Office and other personnel who may be familiar with the subject owner(s) of the property. 6. Contacts with closing agents, attorneys or other parties reflected in the last title transfer of record. • 7. Contacts with the Secretary of State, Comptroller or other record -keepers, usually on businesses or business accounts. 8. Contacts with oil & gas production companies to determine ownership of taxable mineral interests through updated division orders, etc. 9. Internet public data filings and directories DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 7of 32 SAWKO& BURROUGHS, L.L.P. F. WORKING WITH TAXPAYERS To AVOID SUIT The filing of lawsuit obligates the property owner to pay additional costs directly related to the suit. Together with the embarrassment factor, potential effect on credit, and risk of loss of their property through foreclosure, the impact of a suit filing can be great on the taxpayer as well as the property burdened with the tax lien. It is for this reason that we endeavor to resolve the account prior to filing suit. Since taxing units are themselves exempted from being assessed the costs of suit, however, there is no significant "cost' to you as our client in filing a tax suit. At all steps in our collections process, we strongly encourage taxpayers to contact us or the Tax Office prior to filing suit. Our policy, unless directed otherwise by our taxing unit client, is to work with taxpayers who do communicate with us to help accommodate any reasonable arrangement to pay their overdue taxes. The penalty and interest continue to accrue on any unpaid balances, however, so that the taxing unit does receive an offsetting benefit when a workout over time is arranged. The Tax Office, of course, may enter into payment plans with taxpayers under certain circumstances. We generally have no objection to such plans. Our intended close working relationship with the Tax Office will include daily communications which help avoid any conflicting policies regarding payout arrangements being made for any particular delinquent account. Again, our overriding goal is to collect taxes as quickly and as "painlessly" to all concerned, not to sue and foreclose upon taxpayers. If a payment plan is breached, however, we take immediate legal action against the • offending delinquent account. We do make this fact known to the taxpayer before we arrange to accept installment or other time payments. •DELINQUENT TAx COLLECTIONS PROPOSAL PAGE W 32 SAWKO tS BURROUGHS, L.L.P. G. PURSUING LAWSUIT In order to achieve our primary goal of maintaining high rates of tax collection, our collections efforts must be taken seriously. The objective is to make payment of property taxes the top priority of the responsible property owners. To achieve this result, we must and do follow through with the filing of lawsuits after reasonable alternatives thereto have been exhausted. At any one time we have several hundred tax accounts under suit in Denton County District Court. It is expected that the great majority of these accounts will pay their taxes prior to judgment. Still other cases will be abated for bankruptcy of the property owner or due to receipt of tax deferral and abatement on the homesteads of elderly persons. In a few cases, even though forced to file a lawsuit, we will agree to delay legal processing pending a payout over time given a compelling reason to do so. In the final analysis, however, judgment will be taken if no other result is reasonably forthcoming. If the CITY OF DENTON wishes for us to pursue either a more or less aggressive approach to collections at any particular time, we have virtually an unlimited capacity to initiate or otherwise alter our volume legal processing on very short notice. We encourage your input as to the level of services and amount of formal legal activity being undertaken on your behalf. This activity can take the form of any of the various collections techniques authorized by the Texas Property Tax Code. Of course, notices would already have been attempted before suit was instituted and additional notices are attempted thereafter before each subsequent step in legal processing. We strongly believe in providing taxpayers every reasonable opportunity to pay their account(s) before attachment of cumulative court costs. 0 •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE M 32 SAWKO& BURROUGHS, L.L.P. H. OBTAINING JUDGMENT AND FORECLOSURES The final two steps of our standard program of legal processing are: 1) proceeding to trial to obtain a judgment against the subject property and its owner(s) and 2) conducting a foreclosure • sale of the property, as may be necessary. These are the two most exhaustive and expensive (to the law firm) steps (aside from appeals, which are extremely rare, and some bankruptcy workouts) undertaken by tax law firms. As stated elsewhere herein, we are the most aggressive collections firm in following through on legal work for our tax clients. A property tax foreclosure has the force and effect of divesting the ownership interest of a delinquent taxpayer, even if homesteaded, and has the power to pre-empt a "first' mortgage lien, any other voluntary lien of record, even an IRS tax lien. For this reason, we view such a foreclosure as a final alternative to be taken only when no other means to induce collections is evident. Even so, we have foreclosed and sold property on the "courthouse steps" for back taxes on many occasions over the years. Very rarely, however, are properties actually sold for taxes that have any improvement or persons residing upon same. It should be noted that, at least in some instances, tax foreclosure may be the only realistic alternative to clearing title on a property or to otherwise take an idle property and transfer it to others who will once again make the property productive. Such activity, then, achieves a significant public good over and above collecting the taxes accrued. In any event, it is our intent to pursue judgments, foreclosures and similar collections techniques with caution and with the input of the City and its Administrative staff to the greatest extent possible. • isDELINQUENT TAX COLLECTIONS PROPOSAL PAGE 1 OOf 32 SAWKO& BURROUGHS, L.L.P. 1. SEIZURES By TAX WARRANT AND OTHER ENFORCEMENT TECHNIQUES This firm is well versed in all methods of enforcing collection of property taxes authorized under the Texas Property Tax Code, and has actively utilized them from time to time in Denton • County. Among these enforcement techniques, we have performed: 1. Filing of lawsuits and conducting of foreclosure sales of property per §§33.41 et seq. and 34.01 et seq. of the Tax Code; 2. Conducting seizure of personal property pursuant to tax warrants issued under §33.21, et seq. of the Tax Code; 3. Pursuit of secured, priority claims in Bankruptcy Court per §507(a)(7) of the Bankruptcy Code; 4. Obtaining division orders and directing reallocation of same to provide for payment of delinquent taxes on mineral interest; and 5. Tracing of proceeds of property sold by a former property owner or lienholder in a distress sale. The use of tax warrants to seize the personal property of a delinquent taxpayer is probably the most severe, and most immediately effective, collections technique available to a taxing unit. When used correctly, such a seizure, although sparingly employed, can generate a great deal of collections as well as increased respect for tax collections enforcement. However, due to the objective harshness of this collections tool, it is one that we intend to take only in appropriate circumstances and with as much prior input of our taxing unit clients as possible. • .DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 110r32 SAWKO& BURROUGHS, L.L.P. J. BANKRUPTCY SERVICES We currently handle hundreds of delinquent property accounts now under bankruptcy in Denton County. As a general rule, base taxes survive bankruptcy. Part of our collections • service encompasses the filing and pursuit of claims in Bankruptcy Court. Personal property taxes of a bankrupt taxpayer are often only recoverable through the Bankruptcy itself, as personal liability can be cut off and the property taxed may become untraceable. • We perform all requisite bankruptcy representation concerning property taxes as part of our basic service to the City. It is a fact that very often no attorneys fees are paid out on bankrupt accounts. We undertake this work without compensation as a general cost of doing the City's business. We receive daily batches of bankruptcy filings, often totaling dozens of documents. Each of these must be reviewed, the impact on tax claims analyzed, and a course of action, if any, prescribed and initiated by the Tax Attorney. We perform any required appearances, motions, responses, objections and other actions for pursuit and preservation of your tax debt. For these reasons, a background in bankruptcy law is very critical in tax collections work. Our bankruptcy experience dates back to 1982 with respect to property tax collections. DELINOUENT TAX COLLECTIONS PROPOSAL PAGE 12of 32 SAWKO &BURROUGHS, L.L.P. RESUMES DELINQUENT TAX COLLECTIONS PROPOSAL PAGE ] 30P 32 SAWKO &BURROUGHS, L.L.P. SAWKO & BURROUGHS, L.L.P. ATTORNEYS AT LAW The attorneys of Sawko & Burroughs, L.L.P. are proud to offer professional legal services of the highest quality. We are committed to keeping pace with the increasingly complex needs of our taxing jurisdiction client base. Our offices incorporate the latest advances in management and office technology, including modem; CD Rom, laser printers; high -volume dot matrix printers; scanning capacity, internet access, and a fully networked computer system wherein each employee has their own computer terminal. Specifically in the area of delinquent property tax collections, the firm utilizes software that we ourselves specially developed to accommodate legal processing of taxes in Denton County. Our software is proprietary and Windows based. We encourage the development of expertise in areas of practice according to each attorney's individual interests and talents. In addition, Sawko & Burroughs, L.L.P. has committed itself to community involvement and development. The following briefly summarizes both professional and community involvement of key members of our firm. Current Make -Up of Firm (we are an equal opportunity employer): Gender 25% male 75% female Ethnici 17% minority (includes one African -American and one Asian -Indian) 83% Caucasian All of our office staff and attorneys are available for and perform services for our tax clientele, with varying percentages of time commitment. Since all of our taxing units are located in the northern Metroplex, we do not allocate personnel by taxing units or region. At this time the Firm employs a total of 12 persons, with three full-time attorneys (plus one "of counsel", Burt Solomons, who is not counted in our breakdowns due to his "as -needed" work status) who are available in Denton to provide services for the City contract. The Firm currently represents 13 other taxing unit clients, all in Denton and Cooke Counties. DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 14of 32 SAWKO & BURROUGHS, L.L.P. MARK A. BURROUGHS MARK A. BURROUGHS received his Bachelor of Business Administration for Select Students degree from Stephen F. Austin State University and his law degree from the University of Texas School of Law. He is licensed to practice in all Texas Courts, the United States District Court for the Northern District of Texas, the United States Court of Federal Claims and the United States Court of Appeals for the Federal Circuit. Mr. Burroughs is a member of State Bar of Texas, Denton County Bar Association and the U. S. Court of Federal Claims Bar Association. He primarily practices in the areas of real estate, construction, general business and property tax law. Mr. Burroughs is an extremely active member in the Denton Community, in which he lives with his wife, Diana. He has two children, ages 12 and 14. Not only is Mr. Burroughs active in the organizations and committees on which he serves, he is often either in a leadership role or is otherwise a significant contributor to the good works of same. Among the community organizations and committees in which Mr. Burroughs has participated are: DENTON CITY COUNCIL, COUNCILMAN AT LARGE NORTH TEXAS CLEAN AIR STEERING MAYOR PRO TEM COMMITTEE • DALLAS REGIONAL MOBILITY COALITION REPRESENTATIVE REGIONAL TRANSPORTATION COUNCIL (DRMC) (RTC) DENTON ROTARY CLUB PAST PRESIDENT JUVENILE DIVERSIONARY SERVICES OF DENTON, INC. BOARD OF DIRECTORS (4 YEARS) CABLE T.V. ADVISORY BOARD OF DENTON PAST CHAIRMAN KERA — PUBLIC BROADCASTING BOARD OF DIRECTORS DENTON HUMANITARIAN ASSOCIATION, INC. BOARD OF DIRECTORS DENTON CHAMBER OF COMMERCE EX-OFFICIO DIRECTOR DELINOUENTTAX COLLECTIONS PROPOSAL SAWKO & BURROUGHS, L.L.P. DENTON PUBLIC SCHOOLS FOUNDATION, PAST PRESIDENT CUMBERLAND PRESBYTERIAN CHILDREN'S HOME PAST PRESIDENT PARTNERS IN MOBILITY (DALLAS AREA) GREATER DENTON ARTS COUNCIL BOARD OF DIRECTORS LEADERSHIP DENTON GENERAL CHAIR (2 YEARS), PROGRAM CHAIR, GRADUATE NORTH TEXAS CLEAN AIR COALITION (President -Elect) PAGEI5of32 GREGORY J. SAWKO Gregory J. Sawko received his Bachelor of Business Administration in Financial SManagement from St. Mary's University with honors and his law degree from St. Mary's University School of Law. He is licensed to practice in all Texas Courts, the United States District Court for the Northern District of Texas, the United States District Court for the Eastern District of Texas, and the Texas Supreme Court. He practices in the areas of personal injury, business law, property tax, insurance, employment, governmental and civil trial litigation. Mr. Sawko is a member of the Denton County Bar Association, State Bar of Texas, Texas Trial Lawyers Association and the College of the State Bar of Texas. Mr. Sawko, his wife Ellen, son Jackson and daughter Emma live in the City of Denton and are extremely active in their community. Mr. Sawko is not only active in the following organizations and committees, but has also taken a leadership role in many: 1999 BLUE RIBBON BOND COMMITTEE City of Denton, Treasurer for Bond Vote "Yes" Committee CITY OF DENTON 2000-2001 BOND OVERSIGHT COMMITTEE LAKE FOREST GOOD SAMARITAN VILLAGE BOARD OF DIRECTORS DENTON NOON KIWANIS BOARD OF DIRECTORS AND FORMER CLUB PRESIDENT TEXAS WOMEN'S UNIVERSITY PIONEER FUND RAISING ADVISORY COMMITTEE CHAIRMAN 1998-1999 SUPPORT OUR SHIELDS POLICE ORGANIZATION TREASURER (FORMER) LEADERSHIP DENTON GRADUATE, 1995-96 DENTON COUNTY BOND COMMITTEE, 2003 10 DELINQUENT TAX COLLECTIONS PROPOSAL SAWKO & BURROUGHS, L.L.P. UNITED WAY OF DENTON COUNTY Board of Directors 2003-2004; Treasurer,. Executive Committee member; 2005-2006 Campaign Executive Committee in Role of Resource Development Chair DENTON CHAMBER OF COMMERCE BOARD OF DIRECTORS (FORMER) LEADERSHIP DENTON ALUMNI DENTON BUSINESS & EDUCATION COALITION CITY OF DENTON TRAFFIC SAFETY COMMISSION (THREE TERMS) DENTON INDEPENDENT SCHOOL DISTRICT CITIZENS ADVISORY COMMITTEE 2002; CHAIR FOR 2004 BOND COMMITTEE, ADVISORY COMMITTEE TO OVERSEE BOND EXPENDITURES FOR 2002 AND 2004 BONDS DENTON COUNTY TRANSPORTATION COMMITTEE PAGE 16of32 TRACY GUNSTANSON is a Tax Specialist. She has been with the firm for 21/2 years and has a BA in English from Texas Woman's University. GINNY FOX has been with the firm since August 2000 and has extensive knowledge of the courts system given her previous employment, especially with regards to tax filings. PREYAL SHAH has her BA in International Economics and Finance from Austin College. She has extensive knowledge of bankruptcy procedures. We represent a variety of governmental units, corporations, businesses, and individuals. We concentrate our practice in delinquent property tax collections, as well as governmental law, administrative law, contract disputes, liability and collection issues, personal injury matters, and real estate. Sawko & Burroughs, L.L.P., represents the following governmental entities for delinquent tax collection: Denton ISD Little Elm ISD Lake Dallas ISD Town of Flower Mound Town of Little Elm City of Lake Dallas Lake Cities .MUA North Central Texas College Argyle ISD Denton Municipal Utility District No. 4 City of Roanoke Town of Northlake City of Lewisville DELINQUENT TAX COLLECTIONS PROPOSAL SAWKO& BURROUGHS, L.L.P. (8 years) (23 years) (22 years) (18 years) (23 years) (22 years) (22 years) (13 years) (5 Y years) (1 year) (< year) (8 years) (4 1/2 years) PAGE 17of 32 In addition, our statewide" collections experience has been built upon our having worked with the following taxing units: Lewisville I.S.D. Frisco I.S.D. Arp I.S.D. Callisburg I.S.D. Era I.S.D. Denton County Fort Bend County City. of Arp City of Arcola City of Gainesville Gainesville I.S.D. Humble I.S.D. Klein I.S.D. Lindsay I.S.D. Cooke County Valley View ISD Gainesville Hospital District City of Frisco Town of Marshall Creek Walnut Bend ISD The delinquencies represented by all of these entities have amounted to hundreds of thousands of accounts and many millions of dollars, spanning some two decades of collections expenence. We have anticipated the future needs of our clients by planning for growth. Sawko & Burroughs, L.L.P. is committed to meeting the challenges of the future and continuing its record of professional excellence. We balance our professional development with major involvement in community development. Sawko & Burroughs, L.L.P. is committed to providing excellence in our legal services in North Texas. Further, our personnel have a long history of tax collections experience. We have experience collecting for large taxing units (over 30,000 delinquent accounts) and for small units, both with exceptionally high rates of collection. The CITY OF DENTON would fit well into our tax collections program. DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 1 Hof 32 SAwKO & BURROUGHS, L.L.P. MARK ALAN BURROUGHS, ATTORNEY Job Description 116 Partner, Sawko & Burroughs, L.L.P. As Principal Tax Attorney, Mr. Burroughs will maintain personal, direct and daily control of delinquent collections enforcement procedures for the CITY OF DENTON contract. Background Professional: First employed by ad valorem tax attorney in Houston area in 1982. Moved to Fort Worth in March, 1983 to join with Theodore C. Huke, P.C. to conduct delinquent tax collections work for North Texas (Denton) area. Became partner in law firm soon thereafter. Became managing partner of Huke & Burroughs, P.C. in 1989. Merged with Hayes, Coffey & Berry, P.C. in October, 1993, and established Sawko & Burroughs, L.L.P. in September, 1994. Licensed to practice law before all Courts of the state of Texas, before the U.S. District Court, U.S. Court of Appeals for the Federal Circuit and U.S. Court of Federal Claims. Tax Collections: Statewide experience in tax collections as specialty. Personally expert in all phases of collections enforcement including research, direct taxpayer contact, utilizing media, filing of lawsuits, conducting trial and foreclosure, seizures by tax warrant, bankruptcy work, etc. Has conducted seminars in tax collections for tax offices and other organizations since 1984. Law School: Juris Doctor received in 1982 from the University of Texas School of Law in Austin, Texas. Undergraduate: Stephen F. Austin State University, Honors Graduate with majors in Business, Political Science and History; Student Body President, Vice - President, Freshman President; Graduated in three years. Family: Wife Diana McKee Burroughs, children Madeline and Mark Jr. •DELINQUENT -FAX COLLECTIONS PROPOSAL PAGE 190f 32 SAWKO& BURROUGHS, L.L.P. GREGORY J. SAWKO, ATTORNEY Job Description • Partner, Sawko & Burroughs, L.L.P. Mr. Sawko practices in the area of corporate and business, property tax, personal injury, employment, governmental and has vast civil trial litigation experience. Background Professional: First employed by the Denton County law firm of Hayes, Coffey Berry, P.C. , Mr. Sawko practiced in the area of personal injury, business, insurance, employment, property tax, governmental and civil trial litigation. Mr. Sawko has been directly involved with the firm's tax collection clients and enforcement since 1994. In September of 1994, established the firm of Sawko & Burroughs, L.L.P. Mr. Sawko is licensed to practice law before all Courts of the State of Texas, before the U:S. District Court and the Texas Supreme Court. Law School: Juris Doctorate received in 1989 from St. Mary's University School of Law in San Antonio, Texas. Undergraduate: St. Mary's University, Bachelor of Business Administration in Financial Management with honors. Family: Wife, Ellen Sawko, Jackson Sawko, and daughter, Emma Sawko Tax Collection: Mr. Sawko is involved in all aspects of the tax collection program and particularly, in the litigation of tax cases and foreclosures. Mr. Sawko is also involved in the tax collection computer technology used by the firm. •CIELINQUENTTAx COLLECTIONS PROPOSAL PAGE i0Of 3Z SAWKO & BURROUGHS, L.L.P. VIRGINIA C. FOX EXPERIENCE CURRENT: DENTON COUNTY and COOKE COUNTY TAX ASSISTANT: Sawko & • Burroughs, L.L.P. 2000 to present ■ Assist in all aspects of ad valorem collections program and procedures (full time) TAX: DEPUTY TAX CLERK: Denton County District Clerk's Office Denton. Texas 1999 to 2000 ■ Handled various aspects of delinquent tax lawsuits for all of Denton County. This included correspondence with attorneys and taxpayers as well as computer data input for all delinquent tax suits filed in Denton County. I also maintained all court files for delinquent tax suits and handled the filing of all documents associated with each suit. OTHER: ADMINISTRATIVE ASSISTANT: BCI CONSRUCTION, INC. Denton, Texas, 1998-1999 ■ As assistant for two Project Managers, I was responsible for organizing and filing all documents and paperwork associated with the construction of several assisted living homes. I was also responsible for handling and coding pay out orders and pay requests for several construction projects as well as assisting the Project Managers in various other aspects related to the construction of the assisted living homes. COMPUTER LAB MANAGER: AUBREY ELEMENTARY SCHOOL Aubrey, Texas 1992 to 1998 ■ Responsibilities included the general upkeep and maintenance of 23 work stations in a ethernet -networked computer lab, assisting teachers with student instruction and inputting lesson data as requested by faculty and administration, running student progress reports weekly or upon request of either teachers or administrators. I was also responsible for creating and implementing lesson plans involving internet usage for students in grades K-5. 46 DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 2lof 32 SAWKOE BURROUGHS, L.L.P. PREYAL D. SHAH • CURRENT: DENTON COUNTY and COOKE COUNTY TAX ASSISTANT: Sawko & Burroughs, L.L.P. 2003 — present ■ Assist in all aspects of ad valorem collections program and procedures (full time) PREVIOUS: Mana Enterprises, Fort Worth, TX Summer 2002 Business Management Intern • Participated in the management of new clients • Assisted in payroll, tax and account processing • Developed several spreadsheets to help relieve accounting errors Fort Worth Sister Cities International, Fort Worth, TX Summer 2001 Senior Cultural Relations Intern • Organized cultural orientations • Developed programs for international students • Created essential documents using MS Office • Assist the Educators of the International Leadership Academy EDUCATION: Austin College, Sherman, TX Bachelor of Arts Degree May 2003 011 Major: International Economics and Finance Minor: French DELINQUENT TAx COLLECTIONS PROPOSAL PAGE 22of 32 SAWKO& BURROUGHS, L.L.P. TRACY GUNSTANSON EXPERIENCE • CURRENT: DENTON COUNTY and COOKE COUNTY TAX ASSISTANT: Sawko & Burroughs, L.L.P. 1998 to Present. Assist in all aspects of ad valorem collections program and procedures (full time) PREVIOUS: ASSISTANT MANAGER: One Price Clothing Denton, Texas 4/98-8/98 Responsible for operating all aspects of mall -based clothing store. Duties included preparing weekly employee schedule, coordinating clothing displays, preparing nightly bank deposits, entering all accounting information into register and performing all opening and closing procedures. ADMINISTRATIVE ASSISTANT: North Texas Cardiopulmonary Denton, Texas 10/97 to 4/98 Responsible for assisting proprietor of a respiratory clinic in all areas of business. Duties included preparing patient charts, issued respiratory equipment, contacted insurance companies to ensure coverage for procedures, answered phones, greeted patients and visitors in addition to performing other office tasks. ASSISTANT MANAGER: Professional Research on Business Enterprises, Inc., Denton, Texas 10/95 to 4/97 Responsible for assisting Manager of a Market Research office in all areas of business. Duties included interviewing prospective employees, training new employees, preparing weekly employee schedule, compiling market research data for daily reports, handling all client complaints/requests in addition to performing all office tasks. EDUCATION: Texas Woman's University, BA, English May, 1997 40 DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 23of 32 SAWKO& BURROUGHS, L.L.P. 0 TAX CLIENT REFERENCES DELINQUENT TAX COLLECTIONS PROPOSAL PAGE Z40f 3Z SAWKOR BURROUGHS, L.L.P. A. CURRENT TAX CLIENTS • SAWKO & BURROUGHS, L.L.P. DENTON COUNTY: Town of Flower Mound Denton Independent School District & C.E.D. Lake Dallas Independent School District & C.E.D. City of Lake Dallas Denton Municipal Utility District No. 4 Town of Little Elm Little Elm Independent School District & C.E.D. Argyle ISD & CED Town of Northlake Lake Cities MUA City of Roanoke City of Lewisville COOKE COUNTY: North Central Texas College DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 25of 32 SAWKO& BURROUGHS, L.L.P. B. REFERENCE LIST - SAWKO & BURROUGHS, L.L.P. DENTON INDEPENDENT SCHOOL DISTRICT (940) 369-0004 Ray Braswell, Superintendent • Denton Independent School District 1307 N. Locust Denton, Texas 76202 TOWN OF FLOWER MOUND (972) 874-6020 Harlan Jefferson, Deputy City Manager Town of Flower Mound 2121 Cross Timbers Road Flower Mound, Texas 75028 LAKE DALLAS INDEPENDENT SCHOOL DISTRICT (940) 497-4039 Tom Davenport, Superintendent P. O. Box 548 Lake Dallas, Texas 75065 LITTLE ELM INDEPENDENT SCHOOL DISTRICT (972) 292-1847, x15005 William ("Bill') Moeller 500 Lobo Lane Little Elm, Texas 75068 • ARGYLE INDEPENDENT SCHOOL DISTRICT (940) 464-7241 Carolyn Pierel, Superintendent 800 Eagle Drive Argyle, Texas 76226 DENTON CENTRAL APPRAISAL DISTRICT (940) 349-3800 Rudy Durham or Connie Bradshaw Denton Central Appraisal District (DCAD) 3911 Morse Street P. O. Box 2816 Denton, Texas 76201 •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 260f 32 SAWKO& BURROUGHS, L.L.P. IV. MISCELLANEOUS PROGRAM POINTS C� •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 270f 32 SAWKOR BURROUGHS, L.L.P. A. FIRM COMPENSATION Under no circumstances do we as your attorneys expect to be compensated for any of our services rendered to The CITY OF DENTON except from payments made for such services by the delinquent taxpayers themselves. The Texas Property Tax Code, under §§33.07 and 33.48, specifically provides for legal costs of tax collections to be added, over and above the taxes, penalty and interest, to the total due on the delinquency. We intend to seek our attorney's compensation directly from the delinquent taxpayers as the Code provides. Further, if no attorney's fees are found to be recoverable from any particular taxpayer by ruling of a Court, no such fees shall be due and payable by the City notwithstanding that our efforts might enable the City to collect its tax, penalties and interest. Therefore, our services are, in effect, free to the CITY OF DENTON. B. REPORTS AND SPECIAL APPEARANCES We shall generate and submit reports regarding delinquent tax processing and status of legal action taken as and when requested. Figures directly related to total tax outstanding and base tax paid during any specific time period are necessarily derived from information provided by the City Tax Office. A report encompassing such information, then, is to that extent dependent on Tax Office response. We are capable of identifying any number of distinctive features and classes of delinquent accounts with our computer system. For this reason, if a report is required and you have some specific questions about the character and nature of your delinquency roll, we can in many • instances provide you with a breakdown of the tax roll for ease of review. We encourage an open line of communication in order that we may assist in reducing superfluous paperwork that is unnecessary and unhelpful to you and results in wasted efforts on our part. It is our objective to be there when and if you need us. If a personal appearance by your Tax Attorney would be helpful to field potential questions of members of the City Council or members of the public at upcoming meetings, workshops or public hearings, etc., just let us know. We can and shall be "on call", on little or no notice, to address such needs and special circumstances. You will be a very important, "key" client to this firm, thus commanding the attention, access and service from you that such a position deserves. Our local presence makes us very sensitive and flexible to your changing needs. •DELINQUENT TAx COLLECTIONS PROPOSAL PAGE 28of 32 SAWKO & BURROUGHS, L.L.P. C. SPECIALIZATION OF PROGRAM, EXPERIENCE AND EXPERTISE We are North Texas tax collections specialists. We developed, from "scratch" and at high cost, a complex computer program specifically for processing delinquent tax accounts within the •Denton County area. We incorporated our expertise from having performed tax collections work in Denton, Cooke, Collin, Smith, Harris, Montgomery and Fort Bend Counties in developing the basic principles behind the program. We then adapted that program to accommodate the particular circumstances of taxpayers and the various Tax Offices in Denton, utilizing knowledge gained from working closely with Tax Office personnel. We have continuously adapted our program to supply the best overall service possible under the limitations existing here. Due to recent major shifts in collections procedures and responsibilities, Tax Office computer reprogramming, hardware changes and other circumstances that have directly impacted Tax Office support, we have attempted to make our computer program and database as independent as possible from that of the Tax Office. We have gone to great lengths to take correct up-to-date information from the tax rolls, while simultaneously retaining separate information that we have accumulated on each particular account. Although this process is expensive, it does help to keep our system reliable and as complete as possible where access to up-to-date taxpayer and property information is concerned. There are many facets of our collections program that have been adapted and enhanced over the years of our experience in handling both local tax collections and tax collections regionally. No law firm performs more collections services under the tax laws of this State than do we. At the same time, we maintain a conservative approach to our work, and make every attempt to maximize collections without causing adverse taxpayer reaction whenever possible. The goal • here is to make taxpayers take your collections enforcement efforts seriously while treating all taxpayers fairly, justly and with courtesy and respect. The balancing of these interests when collecting hundreds or thousands of accounts is part of what makes tax collections a unique area of legal practice and one that is learned through experience. A trial and error approach to collections can have very long-lasting adverse effects on taxpayers' willingness to voluntarily and promptly pay their tax bills. No law firm has more experience or more positive results in collecting taxes in Denton County than ours. We represent success, stability and continuity in your tax collections work, and we hope very much that you take this into account as a key factor in your tax attorney decision - making process. •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE Z90f 3Z SAWKO & BURROUGHS, L.L.P. V. OTHER POINTS GERMANE TO OUR PROPOSAL •DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 30of 32 SAWKO & BURROUGHS, L.L.P. Our collections services are unsurpassed in Denton County and Cooke County by any of our competitors, and so Sawko & Burroughs, L.L.P. deserves your tax business based on • performance alone. Sawko & Burroughs, L.L.P. is the only locally owned and operated law firm that specializes in tax collections services. We can appear to staff and the Council with little or no prior notice to answer detailed questions on the City's tax collections program. As our other tax clients can attest, we have historically performed superior legal services at no cost to our taxing unit clients. We are already pursuing collections against the very same City tax accounts under our Denton ISD representation. Therefore, adding the City of Denton to our clientele would be more efficient than having separate attorneys for the School and City, and taxpayers would benefit by having to deal with one less law firm for their tax problems. Our software (and hardware) is readily adaptable to various, practically unlimited, media. We have already converted the City's tax roll to our system in preparing our "City of Denton Analysis" in Appendix "A" to this proposal, so updating and electronic communications poses no problem. We have the history, experience and capacity to collect many, many times the number of delinquent accounts outstanding with The CITY OF DENTON. This contract poses no difficulty to Sawko & Burroughs' collections program. Further, no "down time" during turnover is anticipated as we actually already receive the City's delinquent accounts from the tax office and must delete them • as with all other taxing units we do not represent to date, leaving only our clients' tax rolls. Having demonstrated our competence to perform equivalent or superior services for The CITY OF DENTON on a "turn key' basis, Sawko & Burroughs, L.L.P. should be your first choice as being the only competing firm that is 100% owned and operated here in Denton. *IMPORTANT NOTE Sawko & Burroughs, L.L.P. has, for well over the past five years, initiated delinquent collections activities on all newly delinquent personal property and mobile home accounts beginning in February each year. This is key information, in that it is assumed in the City's comparative statistical analysis, Exhibits B1-B5 to the RFP, that all taxes are first turned over to the tax attorney on or about July 1 of the first year of delinquency. We have already collected many of those PIP and M/H accounts that will ever pay by the time July 1 comes, thus leaving the vast majority as uncollectable accounts as part of our Exhibit B1-135 figures. Other firms that do nothing before July 1 have inflated figures when only July 1-June 30 collections are reviewed. We perform our early P/P and M/H collections without any attorney's fees (unless suit is filed) as a service to our clients to try and force payment before the PIP and M/H property leave the County, go bankrupt or otherwise are forever lost. The City's delinquent tax roll as of May 1, 2005 is comprised of 1/3 PIP and M/H accounts and 2/3 Real Property (RIP) accounts for all years due (approximately 20% of current -year delinquents are PIP and M/H accounts). DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 31 of 32 SAWKO& BURROUGHS, L.L.P. Also, as an explanatory note, tax year 1999 (F/Y 2000) figures for our client Denton ISD on your Exhibits A5 and B5 reflect the reality that DISD imposed its greatest single tax levy increase ever that year (jumping $14 million, some 26%, in one year) from $52.9 million to $66.9 million. • All collections were impacted for DISD as a result for that year. Finally, it might be helpful for purposes of "comparing" client satisfaction for the City to know that Sawko & Burroughs, L.L.P. replaced the City's current tax collections firm in representing Denton ISD (1997) and also for the City of Roanoke (starting the end of last year). I believe you will find a very high level of customer satisfaction in our firm's efforts directly comparative to our competition. 0 DELINQUENT TAX COLLECTIONS PROPOSAL PAGE 32Of 32 SAWKo& BURROUGHS, L.L.P. C� VI. C� PROPOSED CONTRACT FORM • Request for Proposal #3335 Delinquent Tax Collection Attorney EXHIBIT D • CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THE STATE OF TEXAS § COUNTY OF DENTON § THIS CONTRACT is made and entered into by and between the City of Denton, 215 E. McKinney, Denton, Texas 76201 ("CITY"), acting herein by and through its govemine body, and the Law Firm of ( Hereinafter referred to as the "FIRM"). 1. EMPLOYMENT OF FIRM CITY agrees to employ and does hereby employ FIRM, as an independent contractor, and FIRM hereby agrees to enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest owing to CITY. Current year taxes which become • delinquent within the period of this Contract shall become subject to the terms of the Contract upon the following conditions and FIRM shall perform the following services: A. Taxes that become delinquent during the term of this Contract, that are not delinquent for any prior years, become subject to the terms of this Contract on July I st of the year in which they become delinquent. B. Taxes that become delinquent during the term of this Contract on property that is delinquent for prior years shall become subject to its terms on the first day of delinquency as _defined by the Texas Property Tax Code. C. FIRM shall begin collecting current year personal property taxes on March I st of the year in which they become delinquent. CITY shall not owe FIRM a fee on the current year delinquent personal property taxes collected between March 1st and June 30th unless attomey's fees are collected pursuant to Section 33.48 of the Texas Property Tax Code. D. FIRM shall perform all those services set forth in CITY's Request for Proposals ("RFP") dated and FIRM's response to the RFP dated which are attached hereto and made a part hereof respectively as Exhibits "A" and "B" as if written word for word herein, as well as all other services set forth in the Contract. E. If there is any conflict between the terms of this Contract and conditions of the isattached exhibits, this Contract will control over the terns and conditions of the attached exhibits. FIRM hereby agrees to perform the services herein with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. Request for Proposal #3335 Delinquent Tax Collection Attorney • 2. PROVISION OF INFORMATION CITY agrees to firmish all necessary delinquent tax information to FIRM on all property within the boundaries of CITY. 3. INVESTIGATION AND ASSISTANCE FIRM agrees to conduct investigations as to the address of each taxpayer and the location of the property where such information may be incorrect on the delinquent tax record. FIRM shall bring to the attention of the appropriate tax official of CITY any errors, double assessments, discrepancies, or inaccuracies in the information provided on the delinquent tax record detected by FIRM. FIRM further agrees to provide CITY with any advice or assistance in connection with updating the tax rolls. CITY shall make available to FIRM information which CITY may have with regard to the name, identity, location of necessary parties and descriptions of property in connection with each delinquent tax account upon request by FIRM. 4. PROCEDURES FOR COLLECTION Upon initial receipt of the delinquent tax records by FIRM in computer readable. form, FIRM agrees to initiate procedures for the collection of the full amount due from each taxpayer. Within a reasonable time frame but not more than sixty (60) days from FIRM's • receipt of the delinquent tax records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to each and every delinquent taxpayer where the taxes have not been deferred nor involved in a lawsuit against the appraisal district to determine value, requesting said taxpayer to remit the full amount due and owing to CITY. 5. REVIEW AND AUTIIORIZATION TO SUE Following transmittal of the notice of delinquency as specified hereinabove, FIRM will commence procedures in anticipation of litigation for aggressive pursuit of collection. CITY -shall -have absolute discretion over those accounts on wh ch suit should be filed. The transmittal of the delinquent tax information to FIRM from CITY shall constitute authorization to file suit following the mailing of the initial notice of delinquency. Upon written notice, CITY may at any time withdraw authorization to file suit. CITY may at any time withdraw authorization to foreclose and sell the property and said withdrawal shall be irl writing. 6. LITIGATION RESPONSIBILITIES A. FIRM agrees to commence litigation, prosecute, and reduce to judgment all delinquent accounts including all pending lawsuits that FIRM deems to warrant or on which CITY has specifically requested action in writing. Each suit filed shall seek: personal judgment against the individual taxpayer(s) for all taxes for • which the taxpayer can be held personally liable, penalty and interest; fore- closure of any tax lien which may exist by operation of law; and any and all court costs incurred in prosecuting the lawsuit, and any collection fees or attorneys fees which the taxpayer is obligated to pay. FIRM shall perform litigation responsibilities and protect CITY's legal remedies including appeals, preparation of any documents required, post -judgment activities, and any other actions necessary in order to collect the delinquent taxes. Request for Proposal 43335 Delinquent Tax Collection Attorney • B. FIRM will assume the representation of CITY in all lawsuits, including all pending lawsuits, involving the collection of delinquent taxes and enforcement of the tax lien including, but not limited to bankruptcy litigation, claims and actions required to be filed with federal agencies such as FDIC, FSLIC and RTC, interventions in suits filed on behalf of any other taxing unit's current suits, and any other suit or litigation which may involve or relate to the collection of delinquent taxes. FIRM will inform CITY of any counterclaims or cross -actions filed against CITY. C. Upon request, provide legal advice and assistance to CITY in the acquisition of property pursuant to the Property Code for public purpose use. 7. TAXPAYER SERVICES In addition to litigation, FIRM further agrees to provide taxpayer service without charge. As such, FIRM agrees (1) to provide CITY tax collector legal advice and written opinions regarding tax matters upon request; (2) to respond to taxpayer inquiries and to advise CITY, in. writing, or, and make any recommendations concerning installment payment agreements and settlement agreements proposed by the taxpayer. CITY shall have final determination in acceptance of all installment payments or settlement agreements within parameters established by CITY. FIRM shall have discretion to enter into installment agreements subject to CITY's prerogative of final determination. In all demand letters and all communications with taxpayers, FIRM shall inform and instruct the taxpayer • to remit its payment to CITY. If remittance is received by FIRM, it must be transmitted in its entirety to CITY and received for processing by 11:30 a.m. of the following business day. Checks made payable to FIRM shall be endorsed by FIRM to CITY. No check, cash or money order for payment of delinquent taxes shall be deposited in any FIRM account. 8. PROGRESS REPORTS FIRM agrees to make delinquent tax collection progress reports to CITY monthly and quarterly, in a format containing information as requested by CITY's Assistant City .Manager for Fiscal_and_Murii6gal Services.— Progress reports may include, without limitation: a. Number and types of communication with Delinquent Taxpayers b. Summary of all delinquent accounts collected. C. Number of suits filed d. Detailed list of suits filed e. Number of judgments rendered f. Detailed list of judgments rendered g. Number of warrants issued/served h. Detailed list of Bankruptcies and Status of those properties i. Number of properties submitted to Court's for auction j. Detailed list of properties submitted to Court's for auction, with date . submitted and most recent status k. Number of properties sold 1. Detailed list of properties sold or reverting to taxing entity because of non sale Request for Proposal #3335 Delinquent Tax Collection Attorney • Within parameters established at the initiation of the collection program, FIRM shall advise CITY of any case in which FIRM's investigation has revealed that the taxpayer cannot be found, the enforcement of the tax lien cannot be accomplished, or further attempts at tax collection would be futile and FIRM's recommendation relative to the proper disposition of the case. In such cases, the CITY shall advise FIRM as to the appropriate disposition of the account. 9. COMPENSATION A. As compensation for the services rendered hereunder by FIRM, CITY hereby agrees to pay FIRM _ percent L21o) of the total amount of all delinquent taxes, penalty and interest for the tax years covered by this Contract as authorized by §33.48(a)(5) of the Property Tax Code. All compensation set forth above shall become the property of FIRM at the time payment of taxes, penalty and interest are received by CITY. The _ percent L%) collection fee will only be paid on taxes which remain delinquent after July 1 of the year on which they became delinquent, pursuant to the Property Tax Code §33.07. Said collection fee will only be paid to FIRM after it has been received by CITY from taxpayer or from forced sales. FIRM shall not be entitled to the aforesaid _ percent (_%) unless and until FIRM has taken some action in connection with recovering delinquent taxes. The transmittal of a notice of delinquency shall constitute sufficient action in order to entitled FIRM to the fee aforesaid. As compensation for the services rendered hereunder by FIRM for the collection of taxes which are not eligible for the additional penalty as authorized by • Property Tax Code §33.07 and upon which suit has been filed, the compensation shall be reasonable attorney's fees approved by the court and not exceeding percent C°/u) of the total amount of taxes, penalties and interest due CITY. In no event shall FIRM be entitled to any fee unless and until CITY actually collects the delinquent taxes, penalty, interest, court costs or collection costs or attorney's fees from the taxpayer or from the proceeds of a forced sale or foreclosure. In no event shall FIRM be entitled to any fee. unless said fee is collected by CITY during the term of this Contract or fee is collected by CITY on account(s) upon which FIRM is attorney of record at the time of judgment. CITY shall pay said fees to FIRM by check monthly. No interest shall be accrued on any late B. The compensation set forth in paragraphs 9 10 and 13 of this Contract shall be the total compensation due from CITY to FIRM for all services provided pursuant to this Contract and in no event shall FIRM seek any additional compensation from CITY. 10. COLLECTION OF OTHER DELINQUENT ACCOUNTS FIRM shall, upon written request of City, undertake the collection of delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens. The collection of these accounts shall be undertaken on the basis of attorney's fees assessed to and collected from the debtors. CITY agrees to pay FIRM, as compensation, all amounts received as attorney's fees on delinquent accounts for paving assessment liens, substandard • housing demolition liens, and weed liens which are collected during the term of this Contract as a result of FIRM's collection efforts. Request for Proposal #3335 Delinquent Tax Collection Attorney • 11. CONFLICTS OF INTEREST FIRM agrees not to represent any client who has an adversary position with the City of Denton, engage in any conflict of interest to fully comply with the Texas Disciplinary Rules of Professional Conduct (Subtitle G - Texas Government Code) for the duration of this Contract. 12. TERM This Contract shall have a term of three (3) years, beginning on July 1, 2005 and ending on June 30, 2008. This Contract may be extended for two additional one-year terms upon the CITY giving written notice to FIRM of its desire to continue this Contract at least thirty (30) days prior to the expiration of the initial three-year term, This Contract shall continue in full force and effect from month to month at the option of CITY, unless either party delivers written notice to the other party of its intent to terminate this Contract at least thirty (30) days prior to the date of the intended termination. FIRM shall have an additional six months to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy claims filed prior to the termination date, and shall have the exclusive right to compensation of fees earned due to these suits during this six month period. CITY shall have the right to sooner terminate this Contract by giving thirty (30) days' written notice of such intention, or in the event of any of the events taking place under Section 33 Termination of Agreement". In case of such temrination, FIRM shall be entitled to receive . and retain all compensation due up to the date of said termination. Upon termination, FIRM shall immediately deliver all files in their entirety to CITY at no cost to CITY, 13. ATTORNEY'S FEES In eminent domain and other judicial proceedings, FIRM will be entitled to only those attorney's fees awarded by the court and then only if collected by CITY. In bankruptcy proceedings; FIRM shall be entitled to a fee of 15% of the tax, interest, and penalty actually collected by CITY. FIRM agrees to file and diligently pursue all claims on behalf_of_CITY__u1_hankntpTcy, eminent domain and other judicial or administrative proceedings whether federal or state in nature. 14. TAX WARRANTS Upon request and authorization of CITY, FIRM shall prepare and pursue the issuance of tax warrants. FIRM shall then coordinate the seizure of personal property pursuant to warrant and actually accompany the Tax Collector to the location of the personal property which is to be seized to insure the necessary procedures have been followed. 15. SETTLEMENTS No settlements or compromises of taxes, penalty or interest shall be effected where • prohibited by law and where authorized by law, only upon approval by CITY. If a taxpayer requested waiver is upheld as provided by §33.011 of the Tax Code, FIRM will bear the costs of suit if it failed to notify the taxpayer of the delinquency prior to filing of the suit. Request for Proposal P3335 Delinquent Tax Collection Attorney • 16. NOTICE Any notice or other written instrument required or permitted to be delivered pursuant to the terms of this Contract shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or FIRM, as the case may be, at the following addresses: CITY FIRM City of Denton, Texas ATTN: Assistant City Manager for Fiscal and Municipal Services 215 E. McKinney Denton, Texas 76201 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. 17 COLLECTION REQUIREMENTS FIRM agrees to collect, between July 1, 2005 and June 30, 2006, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 2004 delinquency existing on July 1, 2005 and not less than thirty percent (30%) of the aggregate delinquent tax roll each twelve months. FIRM agrees to collect, between July 1, 2006 and June 30, 2007, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 2005 delinquency existing on July 1, 2006 and not less than thirty percent (30%) of the, aggregate delinquent tax roll each twelve months. FIRM agrees to collect, between July 1, 2007 and June 30, 2008, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 2006 delinquency existing on July 1, 2007 and not less than thirty percent (30%) of the aggregate delinquent tax roll .—each_twete-months. Fnrthermore,—,;hauld the—CITY_invotce_the option t0extend_ this .___ contract beyond June 30, 2005 as prescribed in Section 12, then the FIRM agrees to collect between the July 1 and subsequent June 30 time period, for each year the contract is extended, not less than sixty percent (60%) of the total dollar value of the adjusted base tax from the most recent tax year of the delinquency existing on July I of each respective year and not less than thirty percent (30%) of the aggregate delinquent tax roll each twelve months. If FIRM does not collect the above referenced amount each year, it shall provide CITY with legal services, programming and computer services, or data processing equipment with a value not less than Ten Thousand Dollars ($10,000.00) or, at the option of CITY, FIRM shall pay CITY the sum of Ten Thousand Dollars ($10,000.00) on or before August 15 of the year it fails to collect the minimum amount specified herein. 18. VENUE The terms, obligations and requirements of this Contract shall be construed in accordance with the laws of the State of Texas. The obligations and requirements of the parties hereto are performable in Denton County, Texas. Any litigation involving this Contract shall be tried in a court of competent jurisdiction sitting in Denton County, Texas. Request for Proposal #3335 Delinquent Tax Collection Attorney • 19. ACCEPTANCE OF EMPLOYMENT In consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM hereby accepts the employment of CITY and undertakes the performance of this Contract as above stated. 20. DIRECTIVES All directives between FIRM and CITY shall be confirmed in writing. 21. COVENANT NOT TO SUE FIRM further agrees not to bring any cause of action against CITY relative to this Contract. Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1.00 and the filing of such cause of action shall be considered a material breach of this Contract. 22. AMBIGUITY Any ambiguity within this Contract shall be liberally interpreted in favor of CITY. 23. ASSIGNMENT The rights and responsibilities of CITY under this Contract may be assigned by.the City Council to another governmental unit in Denton County without approval of FIRM. It is understood and agreed that this is a professional services contract and CITY is contracting for the unique services of FIRM. FIRM's rights and responsibilities under this Contract may not be assigned by FIRM to another law firm or collection agency without written approval of the assignment by the City Council. 24. INDEMNITY AGREEMENT The FIRM shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of the FIRM or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Contract. Nothing in this Contract shall be construed to create a liability to any person who is not a party to this Contract, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Contract, including the defense of govermnental immunity, which defenses are hereby expressly reserved. 0 Request for Proposal #3335 Delinquent Tax Collection Attorney • 25. INSURANCE During the performance of the services under this Contract, FIRM shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate. The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without 30 days prior written notice to CITY and FIRM. In such event, the FIRM shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. 26. EXHIBITS RFP #_attached hereto as Exhibit "A" and the FIRM's response to the RFP attached hereto as Exhibit "B" are incorporated herein as if set forth at length and made a part hereof. The provisions of Exhibit "A" and Exhibit "B" shall set forth obligations and duties of the FIRM to the extent that they do not conflict with other provisions set forth in this Contract, which contractual provisions shall control. 27. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Contract by submitting the dispute to arbitration or other means of alternate dispute resolution, such as mediation. No arbitration or alternate dispute resolution arising out of or relating to this Contract, involving one party's disagreement, may include the other party to the disagreement without the other's 28. ENTIRE AGREEMENT This Contract, consisting of _ pages and _ exhibits, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. 29. COMPLIANCE WITH LAWS The FIRM shall comply with all federal, state, and local laws, rules, regulations, and . ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. Request for Proposal #3335 Delinquent Tax Collection Attorney • 30. DISCRIMINATION PROHIBITED In performing the services required hereunder, the FIRM shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 31. PERSONNEL AND EQUIPMENT A. The FIRM represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Contract. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. FIRM shall inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Contract. B. All services required hereunder will be performed by the FIRM or under its supervision. All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. C. The FIRM represents that it has or will secure, at its own expense, the hardware, software, and other resources required to perform, in a timely manner, all the services required under the terms of this contract. D. FIRM will have, or will establish, a Denton office by the date the delinquent accounts are turned over to FIRM, and will provide a 1-800 number, other toll - free service, to its main office if same is not local to Denton: or the FRIM will be required to provide at least one full time staff member of the FIRM to the office in the City of Denton Tax Office. The FIRM shall pay rent for the space in an amount of one thousand ($1,000) dollars monthly, adjusted annually based on CPI. The City shall provide a working area and computer 32. ASSIGNABILITY The FIRM shall not assign any interest in this Contract, and shall not transfer any interest in this Contract (whether by assignment, novation, or otherwise) without the prior written consent of the CITY. 33. TERMINATION OF AGREEMENT A. Notwithstanding any other provision of this Contract, either party may terminate by giving thirty (30) days advance written notice to the other party. B. This Contract may be terminated in whole or in part in the event of either party substantially failing_ to fulfill its obligations under this Contract. No such termination will be affected unless the other party is given (1) written notice • (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance, and not less than 30 calendar days to cure the failure, and (2) an opportunity for consultation with the terminating party prior to termination. Request for Proposal #3335 Delinquent Tax Collection Attorney • C. If the agreement is terminated prior to completion of the services to be provided hereunder, FIRM shall immediately cease all services and shall render a final bill for services to the CITY within 30 days after the date of termination. The CITY shall pay FIRM for all services properly rendered and satisfactorily performed and for reimbursable expenses to termination incurred prior to the date of termination, in accordance with Article 9 "Compensation". Should the CITY subsequently contract with a new consultant for the continuation of services on the Project, FIRM shall cooperate in providing information. The FIRM shall turn over all documents prepared or furnished by FIRM pursuant to this Contract to the CITY on or before the date of termination, but may maintain copies of such documents for its use. 34. MODIFICATION No waiver or modification of this Contract or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver.or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Contract, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as herein set forth. 35. INDEPENDENT CONTRACTOR • FIRM shall provide services to CITY as an independent contractor, not as an employee of the CITY. FIRM shall not have or claim any right arising from employee status. 36. MISCELLANEOUS A. The following exhibits are attached to and made a part of this Contract: Exhibit "A" - Request for Proposals; Exhibit "B" -FMM's proposal. B. FIRM agrees that CITY shall, until the expiration of three (3) years after the final payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the FIRM involving transactions relating to this Contract. FIRM agrees that CITY shall have access during normal working hours to all necessary FIRM facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section. CITY shall give FIRM reasonable advance notice of intended audits. C. For the purpose of this Contract, the key persons who will perform most of this work hereunder shall be . However, nothing herein shall limit FIRM from using other qualified and competent members of its firm to perform the services required herein. • D. FIRM shall commence, carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, efficient manner and in accordance with the provisions hereof. In accomplishing the projects, FIRM shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the CITY. Request for Propo4al #3335 Delinquent Tax Collection Attomey • E. The CITY shall assist the FIRM by placing at the FIRM's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the FIRM to enter in or upon public and private property as required for the FIRM to perform services under this Contract. 37. TIME OF THE ESSENCE Time is of the essence with respect to all matters covered by this Contract. 38. CAPTIONS The captions appearing at the first of each numbered section are inserted and included solely for convenience and shall never be considered or given any effect in construing this Contract. This Contract is executed on behalf of CITY by the presiding officer, of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes and by a partner of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to execute this document on behalf. of FIRM. • WITNESS the signature of all parties hereto in triplicate originals this the day of , 2005, Denton County, Texas. ATTEST: JENNIFER WALTERS, CITY SECRETARY M. is CITY OF DENTON, TEXAS MICHAEL A. CONDUFF CITY MANAGER . Request for Proposal #3335 Delinquent Tas Collection Attorney • APPROVED AS TO LEGAL FORM: CITY ATTORNEY 4b 0 11 APPENDIX • • VII A. • City of Denton Summary by Year by Property Type 1983 Real Estate 3 properties $377.85 Totals 1984 Real Estate 3 properties 11 properties $377.85 $682.19 Totals 11 properties $682.19 1985 Real Estate 14 properties $2,015.12 Totals 14 properties $2,015.12 1986 Real Estate 20 properties $3,046.12 - Totals 20 properties $3,046.12 1987 Personal Property 1 properties $161.24 Real Estate 24 properties $3,892.54 Totals - 25 properties $ ,053.78 1988 Personal Property 1 properties $161.24 Real Estate 29 properties $5,610.62 Totals 30. properties $5,771.86 . 1989 Personal Property 1 properties $168.18 Real Estate 39 properties $6,702.64 Totals 40 properties $6,870.82 1990 Personal Property 2 properties $204.71 Real Estate 41 properties $7,125.41 . Totals 43 properties $7.330.12 1991 Mobile Home 1 properties $91.31 Personal Property 5 properties $773.82 Real Estate 41 properties $8,063.22 Totals 47 properties $8,928.35 1992 Mobile Home 2 properties $158.73 Personal Property 5 properties $959.44 Real Estate 44 properties $7,192.54 Totals 51 properties $8,310.71 1993 Mobile Home 2 properties $154.12 Personal Property 9 properties $2.603.39 Real Estate 53 properties $8,083.54 Totals 64 properties $10,841.05 1994 Mobile Home - 86 properties $4,215.94 Personal Property 103 properties $14,895A1 Real Estate 54 properties $6,509.12 Totals 243 properties $25,620.47 1995 Mobile Home 90 properties $4,435.56 Personal Property 114 properties $15,282.99 Real Estate 57 properties $6,082.38 Totals 261 properties $25,800.93 Tuesdav, May 03, 2005 Pagel of 2 • • City of Denton Summary by Year by Property Type 1996 Mobile Home 66 properties $3,362.71 Personal Property 145 properties $14,457.48 Real Estate 74 properties $10,339.10 Totals 285 properties $28,159.29 1997 Mobile Home 75 properties $3,821.44 Personal Property 131 properties $12,149.88 Real Estate 80 properties $17,918.12 Totals 286 properties $33.889.44 1998 Mobile Home 75 properties $3,743.09 Personal Property 180 properties $17,535.83 Real Estate 104 properties $16,346.11 Totals 359 properties $37,625.03 1999 Mobile Home 91 properties $4,701.31 Personal Property 172 properties $18,986.41 Real Estate - 99 properties _ $13,798.61 Totals 362 properties $37.486.33 2000 Mobile Home 123 properties $6,602.62 Personal Property 229 properties $32,322.48 Real Estate 164 properties $19,137.43 Totals - 516 properties. $58,062.53 2001 Mobile Home 136 properties $8,783.26 Personal Property 236 properties $32,672.55 Real Estate 260 properties $31,383.58 Totals 632 properties $72,739.39 2002 Mobile Home 163 properties $11,193.51 Personal Property 186 properties $41,243.53 Real Estate 225 properties $42,579.14 Totals 574 properties $95,016.18 2003 Minerals 3 properties $15.71 Mobile Home 247 properties $14,555.40 Personal Property 249 properties $58,380.36 Real Estate 397 properties $122,805.83 Totals 896 properties $195,757.30 2004 Minerals 48 properties $6,986.27 Mobile Home 486 properties $36,520.68 Personal Property 405 properties $152,692.68 Real Estate - 1516 properties $734,172.82 Totals 2455 properties $930,372.45 Totals 7217 properties $1,598,757.31 Tuesday, May 03, 2005 Page 2of 2 City of Denton All Accounts , Account Status Properties Tax Due BN K 56 $43, 910.17 JDG 73 $80,061.15 NoAct 3808 $1,288,470.13 Suit 151 $186,315.86 Totals 4088 $1,598,757.31 Tuesday, May 03, 2005 Page I of I S City of Denton Real Estate Accounts Account Status Properties Tax Due BNK 16 $13,135.49 JDG 22 $32,235.04 NoAct 1580 $904,089.83 Suit 89 $124,403.67 Totals 1707 $1,073,864.03 • Tuesday, May 03, 2005 Page I of I • City of Denton Personal Property Accounts Account Status Properties Tax Due BNK 31 $29,949.45 JDG 36 $43,622.09 NoAct 1263 $280,892.33 Suit 57 $61,087.75 Totals 1387 $415,551.62 0 Tuesdav, May 03, 2005 Page I of I City of Denton Mobile Home Accounts Account Status Properties Tax Due BNK 9 $825.23 JDG 15 $4,204.02 NoAct 916 $96,485.99 Suit 5 $824.44 Totals 945 $102,339.68 0 wd Tuesday, May 03, 1005 - Page I of I 11 Account Status NoAct U City of Denton Mineral Accounts Properties 49 Totals Tax Due $7,001.98 49 $7,001.98 • Tuesday, May 03, 2005 Page I of I VII B. 11 b N Q N N C N— C1 N ' t�1 t1 F oo O F o fi Q isC� E Q —0e G Q 3' ° 3°° oaA w E y Q a b A .A �° �W n.—Y� y �Q �.. N.. O N • — M O � � ' N N N N p p N r O O < O N N ♦ C. O N O CD ° N � .07 y en N rn r r r N vl r .-. n N N v b . r b a � N N �- h ° cn N N r C O� n C N ch O r N r b b a rn 0 a T N — N a O N cc 00 r a . . o = 6 Q y A a- Q Wrn o C ca Q Q m� mV ° a° ° o �•� mfl �� o � a oL] o mQ Q�N� o ° W--_Q� ;� tQ� P� d� VII C. 0 CAUSE NO. 97-0086-362 11 i 0 DENTON INDEPENDENT SCHOOL § IN THE 362°d JUDICIAL DISTRICT § VS. CHARLES HIGH § DISTRICT.COURT IN AND FOR DENTON COUNTY, TEXAS ORIGINAL APPLICATION FOR TAX WARRANT TO THE HONORABLE JUDGE OF SAID COURT: Now comes DENTON INDEPENDENT SCHOOL DISTRICT (hereinafter referred to as "Applicant" or "the taxing unit(s)) pursuant to Section 33.22, Texas Property Tax Code, and files this Original Application for a Tax Warrant. As grounds for issuance of a Tax Warrant, Applicant respectfully shows the Court as follows: follows: The name and last known addresses of CHARLES HIGH (hereinafter "Defendant") are as CHARLES HIGH 4937 STUART ROAD, LOT 120 DENTON, TEXAS 76207-4211 II. The Defendant is the owner of the following property located in this County upon which taxes have been or will be imposed or is otherwise subject to seizure as a result of the Defendant's owing delinquent taxes, penalties and interest to the taxing unit: PROPERTY: SOUTHFORK-DENTON, SPACE 120 (MH ONLY) SERIAL NUMBER TXFLV12A28511-FDI I The amount of taxes, penalties and interest owed by Defendant, or the estimated amount of taxes to be imposed on this and other property for which Defendant is responsible stands at S as of the date of this application. These taxes, penalties and interest are delinquent and unpaid by the Defendant, and/or the Applicant has reason to believe that this property is about to be removed from the County and the Applicant knows of no other personal property owned by the Defendant and located in this County from which the aforesaid taxes may be satisfied. 1411T6101J41.Y M1 11D1014 WHEREFORE, PREMISES CONSIDERED, Applicant prays that this Court issue a Tax Warrant to any Peace Officer in this County directing him to seize as much of the Defendant's personal property as may be reasonably necessary for the payment of all taxes, penalties, and interest as alleged herein, together with all costs incident to the seizure and sale of that property, and for such other and further relief to which the • Applicant may show justly entitled hereunder. • DATE: APPLICANT: us MN MARK A. BURROUGHS Attorney at Law State Bar ID 03464400 1100 Dallas Drive, Suite 100 Denton, Texas 76205 (940)382-4357 ATTORNEY FOR APPLICANT G:\G,NNY\Forms\Ww nt.DOC CAUSE NO.97-0086-362 AFFIDAVIT IN SUPPORT OF APPLICATION FOR TAX WARRANT • STATE OF TEXAS § 9' COUNTY OF DENTON ®i� BEFORE ME, the undersigned notary public, personally appeared MARY HORN who being by me first duly sworn upon oath stated that (s)he is duly qualified and serving as the Tax Assessor Collector for the DENTON INDEPENDENT SCHOOL DISTRICT, and is authorized to make this affidavit, has personal knowledge of the facts alleged in the foregoing Original Application for Tax Warrant as they relate to Affiant's taxing unit(s), and says that those facts are true and correct. 0 SIGNATURE OF AFFIANT SUBSCRIBED AND SWORN TO before me this day of to certify which witness my hand and seal of office. PRINT/TYPE/STAMP NAME Notary Public in: My Commission Expires G:\GINNY\Fo=s\Wa ant.DOC CAUSE NO. 97-0086-362 DENTON INDEPENDENT SCHOOL § IN THE 3620" JUDICIAL DISTRICT § • VS. DISTRICT COURT IN AND FOR CHARLES HIGH DENTON COUNTY, TEXAS ORDER FOR TAX WARRANT On the day and year indicated below came on to be heard in the above -styled and numbered cause the Original Application for a Tax Warrant filed by MARY HORN, Tax Assessor -Collector for DENTON INDEPENDENT SCHOOL DISTRICT pursuant to Section 33.22, Texas Property Tax Code. The Court; having considered the Affidavit of the Applicant as contained in said Original Application, and finding that grounds exist pursuant to Section 33.22 for the issuance of a Tax Warrant against the property of. CHARLES HIGH It is therefore, ORDERED, ADJUDGED AND DECREED that a Tax Warrant shall be issued directing any Peace Officer in this County, to seize as much of the Defendant's personal property as may be reasonably necessary for the payment of all taxes, penalties and interest included in the aforesaid application, together with all costs of seizure and sale, those amounts being found by the Court to total the approximate amount of $ It is further ORDERED, ADJUDGED AND DECREED pursuant to Section 33.23 (b), Texas Property Tax Code, that no bond shall be required of the Applicant for the issuance or delivery of the Tax Warrant authorized by this Order by any Court, Sheriff, Constable or Peace Officer of the State of Texas. • It is further ORDERED, ADJUDGED AND DECREED that the amount of the cash or surety bond required to prevent seizure or sale of property under the Tax Warrant authorized by this Order shall be $ , provided that such bond be conditioned on payment of the taxes sought by the Applicant before delinquency. Approval of this bond shall be by the Applicant as authorized by Section 33.24, Texas Property Tax Code. 0 It is finally ORDERED, ADJUDGED AND DECREED that if: CHARLES HIGH the Defendant herein, has not paid the taxes and costs asserted or posted the bond in the amount set herein within ten (10) days after service of the Tax Warrant on the Defendant, then MARY HORN, as Tax Assessor -Collector, individually or through an authorized agent, is further authorized to sell all or so much of the property seized under said Tax Warrant as may be required to pay the delinquent taxes, and interest and allowable costs now owed by the Defendant. This sale shall occur between the hours of I0:00 a.m. and 4:00 p.m. for cash to the highest bidder at such public place in Denton County, Texas as designated by the Tax Assessor -Collector in written notice published at least once in two (2) consecutive weeks in a newspaper of general circulation in Denton County, Texas, and also forwarded by certified or registered United States mail, return receipt requested, postage paid, addressed to the Defendant at the most recent mailing address shown on the records of the Tax Assessor -Collector and to all other persons who the Tax Assessor -Collector may hereafter determine to have an interest in the property seized, pursuant to Section 33.25, Texas Property Tax Code. SIGNED THIS DAY OF Judge Presiding tACH I 1 J �1Y LL I�\:� HHH CAUSE NO. 97-0086-362 DENTON INDEPENDENT SCHOOL § DISTRICT § • VS. CHARLES HIGH q� § THE STATE OF TEXAS: IN THE 362°a JUDICIAL DISTRICT COURT IN AND FOR DENTON COUNTY, TEXAS TAX WARRANT To the Sheriff or any Constable or any Peace Officer in Denton County, of the State of Texas, GREETINGS: WHEREAS, in the above styled case, MARY HORN as Tax Assessor -Collector for DENTON INDEPENDENT SCHOOL DISTRICT has brought an Application for Tax Warrant against: CHARLES HIGH for the purpose of collecting delinquent ad valorem property taxes owing to the DENTON INDEPENDENT SCHOOL DISTRICT and has made affidavit that the Defendant is delinquent in the paying of taxes, penalties and interest owing to the Plaintiff or that Defendant is about to remove from this County personal property on which a tax has been or will be imposed and no other personal property is known to be owned by the Defendant in this County from which the tax may be satisfied. You are therefore to take into your possession as much of the personal property of Defendant as you find in this County as may be reasonably necessary for the payment of all taxes, penalties and interest and all costs of seizure and sale in an amount estimated as $ , and delivery same to MARY HORN, pending its sale subject to further order of this Court unless replevied according to law. • You are further instructed to direct the person whose property is seized or their agent to disclose the name and address if known of any other person having an interest in the property. Herein fail not, and due return make. Issued under my hand in Denton County, Texas on , • Clerk of the Court Denton County, Texas G:\GINNY\Forms\We m1.D0C OFFICER'S RETURN • CAME TO HAND, the day of at o'clock .m., and executed at in County, Texas, on the day of I , at T o'clock .m., by levying upon and seizing the following described property as property of the Defendant, and situated in County, Texas: • • Officer's Signature G:\GtNNY\Fo ms\W=ant.DOC THE STATE OF TEXAS CAUSE NO. 99-0772-16 DENTON INDEPENDENT SCHOOL DISTRICT § IN THE 393t n JUDICIAL vs. § § LARRY HODGES and H.J. HODGES; DENTON § DISTRICT COURT IN AND FOR AREA TEACHERS CREDIT UNION, THOMAS P. § STOVER and THE STATE OF TEXAS, THROUGH ITS § AGENCY AND INSTRUMENTALITY, ATTORNEY § GENERAL -THE ENVIRONMENTAL PROTECTION § DIVISION (IN REM ONLY) §g &NTON COUNTY, TEXAS WRIT OF?SSESSION TO ANY SHERIFF OR ANY CONSTABLE OF THE STATE OF TEXAS, GREETINGS: On November 9 ", 2001, in the above numbered and styled cause, judgment was granted against defendant entitling plaintiff to possession of the premises described below: BRIERCLIFF EST, BLOCK 3, LOT 5, 5/285-3///MEP&PRR 950 (Account No. R0021663) DENTON COUNTY, TEXAS Also generally known as 3412 Briercliff Drive, Denton, Texas YOU ARE THEREFORE COMMANDED TO: • 1. Enter such premises and deliver possession thereof to the plaintiff, 2. Instruct the defendant and all persons claiming under the defendant to leave the premises immediately, and, if the persons fail to comply, physically remove them; 3. Instruct the defendant to remove or to allow the plaintiff, the plaintiffs representatives, or other persons acting under the officer's supervision, to remove all personal property from the premises other than personal property claimed to be owned by the plaintiff; and 4. Place, or have an authorized person place, the removed personal property outside the premises at a nearby location, but not a public or private sidewalk, passageway street, or parking area and not while it is raining, sleeting, or snowing. YOU ARE HEREBY AUTHORIZED AT YOUR DISCRETION TO: 5. Post a written warning on the exterior of the front door of the premises, notifying the defendant that this writ has been issued and that it will be executed on or after a specific date and time stated in the warning; and/or 6. Engage the services of a bonded warehouseman to remove and store, subject to applicable law, part or all of the property at no cost to the plaintiff or the office executing the writ. 0 MAKE DUE RETURN of this writ, and certify how you have executed the same. Witness my hand officially, and the seal of said court hereto affixed, Sherri Adelstein, District Clerk 1450 E. McKinney, 1" Floor Denton, Texas 76209 Deputy Clerk Date 0 Came to hand the day of RETURN OF WRIT and executed in Denton County, Texas this day of o'clock M. By: , Sheriff or Constable Denton County, Texas Deputy L 0 2002 at o'clock M. A.D. 2002 at Fee for Service of Writ: $