1991-0862715L
ORDINANCE NO 9l'ORO
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR THE
COLLECTION OF DELINQUENT TAXES, AND PROVIDING FOR AN EFFECTIVE
DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the Mayor is authorized to execute a con-
tract oar tle collection of delinquent taxes with Heard, Goggan,
Blair & Williams, a copy of which is attached hereto and incor-
porated with reference herein
SECTION II That this ordinance shall become effective immed-
iate y upon is passage and approval
PASSED AND APPROVED this the -A day of , 1991
ATTEST
JENNIFER WALTERS, CITY SECRETARY
r
BY W(X
APPROVED AS TO LEGAL FORM
DEBRA A DRAYOVITCH, CITY ATTORNEY
3061L
CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES
THIS CONTRACT is made and entered into by and between the CITY
OF DENTON, acting herein by and through its governing body, here-
inafter called First Party, and HEARD, GOGGAN, BLAIR & WILLIAMS,
Attorneys at Law, hereinafter called Second Party
I
First Party agrees to employ and does hereby employ Second
Party to enforce by suit or otherwise the collection of all de-
linquent taxes, penalty and interest, on behalf of the CITY OF
DENTON within the CITY OF DENTON, owing to the CITY OF DEMON
provided current year taxes falling delinquent within the period
of this contract shall become subject to its terms on the first
day of July of the year in which the same shall become delinquent
Suits and bankruptcy cases resolved before the first day of July
must include current year delinquent taxes, which are also subject
to the terms of this contract
The City may at its sole discretion turn over to the Firm
selected accounts for collection prior to July 1 The City agrees
to pay the Firm as compensation for collection activities on these
accounts, including tax warrant seizures pursuant to which this
compensation is a cost of seizure, an amount equal to fifteen
percent (15%) of the base tax, penalties and interest due on the
account In no event will the Firm be entitled to receive as
compensation from the City on these accounts more than fifteen
percent (15%) of the total taxes, penalties and interest actually
collected If Second Party files suit to collect these accounts,
it shall seek attorneys fees pursuant to Sec 33 48 of the Texas
Tax Code If the Court awards attorneys fees, the fees awarded
shall be applied toward the compensation due Second Party under
this paragraph
II
Second Party is to call to the attention of the collector or
other officials any errors, double assessments, or other discrep-
ancies coming under their observation during the progress of the
work, and is to intervene on behalf of First Party in all suits
for taxes hereafter filed by any taxing unit on property located
within its geographical limits
III
First Party agrees to furnish delinquent tax statements to
Second Party on all property within the taxing jurisdiction Sec-
ond Party will furnish forms for said statements on request and
will assume responsibility for having penalty and interest computed
on statements before such statements are mailed to property owners
IV
Second Party agrees to file suit on and reduce to judgment
and sale any property located with the CITY OF DENTON against
which a tax lien would prevail provided, First Party will furnish
the necessary data and information as to the name, identity, and
location of the necessary parties, and legal description of he
property to be sold Second Party agrees to sue for recovery of
the costs as court costs as provided by Tex Prop Tax Code Sec
33 48 (Vernon 1979)
V
Second Party agrees to make written progress reports to First
Party at least once a month, and to advise First Party of all
cases where investigation reveals taxpayers to be financially
unable to pay their delinquent taxes Such progress reports
shall notify the City of the disposition of all lawsuits First
Party filed If a lawsuit has been dismissed, the report shall
reflect the reason for dismissal
VI
First Party agrees to pay to Second Party as compensation for
services required hereunder fifteen (15) percent of the amount
collected of all delinquent taxes, penalty and interest of the
years covered by this contract, actually collected and paid to
the collector of taxes during the term of this contract as and
when collected All compensation above provided for shall become
the property of the Second Party at the time payment of taxes,
penalty and interest is made to the collector The collector
shall pay over said funds monthly by check
VII
Second Party shall undertake the collection of delinquent
accounts for paving assessment liens, substandard housing demo-
lition 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 First Party agrees to pay to
Second Party as compensation all amounts received as attorney's
fees on delinquent accounts for paving assessment liens, substan-
dard housing demolition liens, and weed liens
VIII
This contract is drawn to cover a period of two (2) years be-
ginning July 1, 1991, and ending June 30, 1993 First Party shall
have the option exercisable at any time that this contract is in
force to renew and extend this contract on its identical terms for
PAGE 2
one additional two (2) year increment commencing July 1, 1993 On
termination of this contract, Second Party shall have an addi-
tional six months after termination to reduce to judgment all
suits filed prior to the date last mentioned, and provided further
that Second Party shall handle to conclusion all suits in which
trial court judgments are obtained during the period of this con-
tract and which are appealed by any party In consideration of
the terms and compensation herein stated, Second Party hereby ac-
cepts said employment and undertakes the performance of this con-
tract as above written First Party shall have the right to
sooner terminate this contract for cause, giving thirty (30) days'
written notice of such intention, with a statement of the cause
or reasons for such termination, after giving Second Party a rea-
sonable opportunity of explaining or rectifying the same First
Party shall be the sole judge of the existence of cause for the
purpose of this termination provision In case of such termina-
tion, Second Party shall be entitled to receive and retain all
compensation due up to the date of said termination
IX
Second Party agrees to collect, between July 1, 1991 and June
30, 1992, not less than sixty percent (60%) of the total dollar
value of the base tax of the 1990 delinquency existing on July 1,
1991 Second Party agrees to collect, between July 1, 1992 and
June 30, 1993, not less than sixty percent (60%) of the total
dollar value of the base tax of the 1991 delinquency existing on
July 1, 1992 If Second Party does not collect the above
referenced amount each year, it shall provide the First Party
with legal services, programming and computer services, or data
processing equipment with a value not less than Seven Thousand
Five Hundred Dollars ($7,500 00) or, at the option of the City,
it shall pay the First Party the sum of Seven Thousand Five
Hundred Dollars ($7,500 00) on or before August 15 of the year it
fails to collect the minimum amount specified herein
X
This contract is executed on behalf of First Party by the
presiding officer of its governing body who is authorized to exe-
cute this instrument by ordinance heretofore passed and duly re-
corded in its minutes
WITNESS the signature f all part es hereto in triplicate
originals this, the day of 1991,
Denton County, Texas
CITY OF DENTON
BY
PAGE 3
ATTEST
W
JE E 'RS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
DEBRA A DRAYOVITCH, CITY ATTORNEY
BY LA~~2 L24~~
0
HEARD, GOGGAN, BLAIR & WILLIAMS
T v
BY TEVE IA R ~~PAGE 4