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06-F Tax Attorneys AISAGENDA INFORMATION SHEET PROJECT: Discuss proposals for and consider a resolution approving and authorizing a professional services contract to provide delinquent tax collection services for the City of Paris. BACKGROUND: By adoption of Resolution No. 2001-154, the City Council authorized the City Attorney to solicit proposals from qualified attorneys and law firms to represent the City in the collection of delinquent taxes. The Professional Services Contract with the current attorney collecting the City's taxes is at an end and the City Council authorized proposals to select legal representation for this important function. The City Attorney prepared a Request for Proposal and solicited suggestions from the Texas Municipal League as well as researched other source material to identify firms within the state of Texas qualified to do municipal tax collection. As a result of this process, five law firms in addition to the attorney currently performing the tax collection services were forwarded Requests for Proposals. Of those solicitations, the City received five (5) proposals. Section 6.30(b) of the Texas Tax Code authorizes the governing body of a taxing unit other than the County to determine who represents the unit to enforce the collection of delinquent taxes. Therefore, although the City Charter envisions involvement of the City Attorney in this process, the governing body must make the final determination as to who will provide representation for this most important function. DESCRIPTION: The City is currently represented in its tax collection efforts by Mr. Terry K. Haynes, Attorney at Law. Mr. Haynes has submitted his proposal to continue his services, a copy of which is included with the agenda materials. In addition to Mr. Haynes's proposal, the City received a proposal from Linebarger Heard Goggan Blair Graham Pena and Sampson, LLP; the firm of McCreary, Veselka, Bragg & Allen; the firm of Perdue Brandon Fielder Collins & Mott; and the firm of Gay, McCall, Isaacks, Gordon & Roberts, P.C.. Copies of the Request for Proposal, along with the proposals of each of the five attorneys or law firms responding are included in the agenda package and are recommended for your review. Based on a review of these materials, the City Attorney has reached the following conclusions: 1. All the firms and the individual submitting proposals meet or exceed the minimum qualifications and requirements as set out in the RFP, and in fact each of the proposers appears to be highly qualified and experienced in the process of tax collection; 2. Each of the proposers is willing to work for the compensation which the City is offering, that being the fifteen percent (15%) additional penalty authorized under the Tax Code, plus other fees likewise authorized under State Law, such that all costs of the collection process should be paid for by the delinquent taxpayer; 3. Each of the proposers has responded in some fashion favorably to the City's ongoing and developing homestead program, and it does not appear that the fees collected by delinquent tax attorneys will in any way inhibit that program; 4. The City Attorney believes he can work with and would indeed be honored to work with any of the attorneys or law firms submitting proposals. To enable Council to get the most direct information regarding the individual proposals, the City Attorney has requested each proposer to have one or more representatives available during the City Council meeting of November 12, 2001, to discuss and answer any questions raised by the City Council regarding the individual proposals. STAFF CONTACT: City Attorney Larry W. Schenk COST: All costs of providing the services should be paid for out of the special fees and penalties collected in the tax collection process, and paid by the delinquent taxpayer without additional cost to the City of Paris. RECOMMENDED ACTION: Review and discuss the proposals submitted for delinquent tax collection, pose any questions necessary to representatives of the proposers, and authorize the City Attorney to negotiate a contract with the proposer most qualified in the determination of the City Council to perform this most important function. COUNCII, DATE: Consider for action at City Council's November 12, 2001, City Council meeting. ADDITIONAL INFORMATION: See attached Request for Proposal, proposals of each individual or law firm, Resolution approving and authorizing the City Attorney to negotiate a contract for tax collection purposes, and other related materials. DRAFT ALICE\RESWORK\CiJRRENT\Tax AtTy Awd & ContractRes November 9, 2001 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, APPROVING AND AUTHORIZING A PROFESSIONAL SERVICES CONTRACT WITH TO SERVE AS THE DELINQUENT TAX COLLECTION ATTORNEY FOR THE CITY OF PARIS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris, Paris, Texas, did heretofore, on the 9th day of May, 1988, in Resolution No. 88-044, authorize a 15% penalty to be added to the delinquent tax accounts in accordance with Section 33.07 of the Texas Property Tax Code; and, WHEREAS, in order to add the 15% penalty to tax accounts which are delinquent on July 1 of each year, it is necessary for the governing body to direct that the same be added thereto and that the governing body enter into a contract with an attorney for the purpose of collection of the delinquent tax accounts; and, WHEREAS, the City Council of the City of Paris deems it to be in the best interests of the citizens of Paris to engage as Delinquent Tax Collection Attorney; and, WHEREAS, the City Attorney should be authorized to negotiate a contract for delinquent tax collection services, and the Mayor should be authorized to execute the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Attorney is hereby authorized to negotiate, and the Mayor is hereby authorized to execute and the City Clerk to attest to, a Professional Services Contract by and between the City of Paris and for Delinquent Tax Collection Services. Section 3. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 12th day of November, 2001. Michael J. Pfiester, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney Request for Proposals For Delinquent Tax Collection Attorney For the CITY OF PARIS, PARIS, TEXAS The City of Paris, Texas is requesting proposals from qualified attorneys or firms to serve the City as Delinquent Tax Collection Attorney. Requested Services: The attorney or firm selected will be required to perform all services incident to the process of collecting delinquent ad valorem taxes due and payable to the City of Paris. The attorney or firm selected will be required to interface directly with the Lamar County Appraisal District, officials of the City of Paris, and other taxing entities. The attorney or firm selected will report directly to the City Attorney of the City of Paris, who shall have direct oversight and provide input and direction where necessary to the selected proposer. The attorney or firm selected will be required to provide written progress reports to the City Attorney on a monthly basis, detailing activity during the previous month with regard to the collection of taxes, tax suits filed, tax suits resolved, and other dispositions of pending matters. In addition, the attorney or firm selected will be expected to interface with the City Attorney on a frequency as deemed necessary or appropriate by the City Attorney. The attorney or firm selected should be prepared to respond to inquiries from the City Attorney regarding specific properties or the disposition of same, the taxes owed thereon, or other related matters on a daily basis. The attorney or firm selected will also be expected to provide occasional legal advice and counsel to the City Attorney on matters related to taxation and tax collection. Background: The City of Paris is a thriving community of approximately 27,000 population, and is the County Seat of Lamar County, Texas. Paris is located approximately ninety (90) miles north and east of the McKinney/Greater Dallas Metro Area and is approximately twenty (20) miles south of the Texas-Oklahoma border. The City has several large industrial taxpayers, including Campbell Soup, Turner Pipe, Kimberly-Clark, Sarah Lee/Earthgrains, Phillips Lighting, and others. Tax collection issues, the amount of delinquency, and the tax collection rate are within the norm for cities of a similar size. The attorney or firm selected will be expected to interface with an ongoing program in which the City is participating called the Homestead Program, whereby delinquent properties which have failed to be purchased through the Sheriff's Sale and have passed the redemption period are pooled for resale to low to moderate income citizens who in turn are required by the terms of the sale to construct new residences on the property. Qualifications: The attorney or firm selected will be a current member of the State Bar of Texas in good standing, with professional memberships in associations, or other Bars as necessary related to the collection of taxes. The attorney or firm selected will be required to provide a proposal and a detailed firm or individual resume with special emphasis on the proposer's experience in the area of taxes and tax collection. The proposal should include all Information necessary to demonstrate the proposer is fully qualified, well experienced, and well versed in the area of collection of ad valorem taxes on behalf of municipalities. Individuals or firms currently providing such services in the surrounding counties or areas adjacent to Paris are preferred, but a current actual presence is not required. Proposers will be required to provide specific resumes as to the individual or individuals who will actually be providing the tax collection services. The proposers should also indicate the accessability of the individuals performing the tax collection, where they will office, how often they will be available in the City of Paris, etc. The proposer should also provide other information demonstrating the proposer is aggressive, has a high percentage collection rate, or other indicia of success in the tax collection area. FIRMS OR INDIVIDUALS WITHOUT ONGOING, CURRENT TAX COLLECTION ACTIVITIES AND WITHOUT THEDEMONSTRATED BACKGROUND, EXPERIENCE, AND QUALIFICATIONS NEED NOT APPLY. Compensation: The City of Paris has already adopted necessary resolutions authorizing a fifteen percent (15%) penalty to be added to delinquent tax accounts in accordance with Section 33.07 of the Texas Property Tax Code. The City is authorized to offer as compensation for tax collection services the fifteen percent (15%) of additional penalty assessed against ad valorem taxes payable to the City of Paris and delinquent on July 1 of each year, as well as all other attorney fees to be charged by the Texas Property Tax Code upon which tax suits have been filed, as compensation for the services to be provided hereunder. Contract: The proposer selected to serve as the City's Delinquent Tax Collection Attorney will be required to sign a professional services contract of a minimum of one year duration setting out the obligations of the attorney in performance of the duties as required. Selection Process: Proposers are encouraged to respond by fax or where possible e-mail to speed the process of selection. The City's fax number is (903) 782-9721 and the City's e-mail address is apinaltoglstarnet.com. Proposals by U.S. Mail will likewise be received. All proposals should be forwarded to the City of Paris no later than Friday, November 2, 2001. As proposals are received, they will be reviewed by the City Attorney and those deemed to qualify will be scheduled for personal interviews as soon as possible. THE CITY OF PARIS IS AN EQUAL OPPORTLJNITY EMPLOYER. Any questions regarding this proposal, the scope of services, or other related matters, should be directed in writing by fax or other means to the above-referenced fax number and/or e-mail address. Following the interview process, formal selection will be made by the City Council of the City of Paris, Texas.