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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