Loading...
10-TAX ATTORNEYSmemo�andum TO: Mayor & Council FROM: John Godwin, City Manager SUBJECT: TAX ATTORNEYS DATE: Apri12, 2013 BACKGROLJND: At the City Council meeting of March llth, city staff asked Council to consider moving our delinquency business to the law firm of Tracy Pounders. The City Council approved the request and directed the city attorney to draft a professional services agreement with Mr. Pounders. STATUS OF ISSUE: An agreement was reached with Mr. Pounders. BUDGET: Costs for these services generally derive from attorney collection activity. RECOMMENDATION: Approve the professional services agreement between the City of Paris and the law firm of Tracy Pounders for the collection of delinquent taxes. �4 THE STATE OF TEXAS COUNTY OF LAMAR . CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THIS CONTRACT is made and entered into by and between the CITY OF PARIS, a Texas municipality located in Lamar County, Texas, acting herein by and through its City Council (hereinaft�r called the "CITY") and THE POUNDERS LAW FIRM, PLLC (hereinafter called the "LAW FIRM") acting by and through its duly authorized officers. WITNESSETH: WHEREAS, the Lamar County Appraisal District (collectively with any successor hereinafter called the "LCAD") by separate agreement annually collects the ad valorem taxes due to the CITY; and WHEREAS, a portion of the ad valorem taxes due to the CITY are not paid when due to the CITY and become delinquent; and WHEREAS, the CITY desires to provide for the collection of these delinquent ad valorem taxes; and WHEREAS, the CITY is authorized to hire a lawyer or law firm of the CITY's choice to collect its delinquent ad valorem taxes; and WHEREAS, the CITY has previously authorized the imposition of the Additional Collection Penalty at a rate of twenty percent (20%) from which it may compensate its lawyer or law firm for collecting its delinquent property taxes; and WHEREAS, the CITY has authorized the early collection of personal property taxes in accordance with Texas Property Tax Code Section 33.11, starting with the 2013 tax year; and WHEREAS, the CITY desires to hire the LAW FIRM to collect its delinquent ad valorem property taxes; and WHEREAS, the LAW FIRM desires to collect the CITY's delinquent ad valarem taxes as set forth in this Contract; THEREFORE IT IS AGREED THAT: SECTION 1. Employment of the LAW FIRM. CITY agrees to employ LAW FIRM to collect all delinquent taxes, penalties and interest, by lawsuit or otherwise, owed to the CITY. The Law Firm agrees to accept said employment. CON�I�RAC"I�: Collection of D�linquent Prooert � T�, Page I of �3 �� (a) Except as otherwise provided for herein, current year taxes that become delinquent will not be subject to this Contract until the first day of July of the year in which they become delinquent. (b) Starting with the 2013 taac year, current year ad valorem taxes assessed against personal property that become delinquent will not be subject to this Contract until the 60th day after the date on which they become delinquent. (c) Should an unpaid tax account become subject to lawsuit or bankruptcy prior to the dates specified in subsections (a) and (b) hereinabove, the unpaid tax account shall be subject to this Contract to the extent permitted by law. (d) The LAW FIRM agrees to file suit against those taxpayers and those properties subject to a tax lien, relating to an unpaid tax account subject to this Contract, when deemed necessary by the LAW FIRM for the collection of that unpaid tax account. A suit filed under this subsection is made subject to the CITY (either in its own capacity or acting by and through the LCAD) adequately identifying the name, identity and location of the necessary parties, and the legal description of any property subject to the ta�c lien. Where appropriate, the LAW FIRM will reduce any judgment to sale. (e) The LAW FIRM agrees to sue for recovery of expenses and court costs as authorized by Texas Property Tax Code Sec. 33.48. (� The LAW FIRM will intervene on behalf of the CITY in all suits for taxes hereafter filed by other taxing units to the extent that the subject of the suit relates to property located within the CITY's taxing jurisdiction. This obligation is subject to the LAW FIRM receiving adequate notice of the suit. The LAW FIRM may intervene on behalf of the CITY in suits for taxes hereafter filed by other taxing units against taxpayers who are responsible for the payment of taxes that are subject to this Contract, whether or not the subject of the suit relates to property located within the CITY's taxing jurisdiction. (g) The CITY may, at its sole discretion, turn over to the LAW FIRM delinquent tax accounts for collection, including but not limited to accounts that the LAW FIRM may reasonably decide to collect by tax warrant or tax seizure, prior to the dates specified in subsections (a) and (b) hereinabove, and these accounts shall be subject to this Contract to the extent permitted by law. SECTION 2. Pa.�. The CITY agrees to pay the LAW FIRM, as compensation for services required hereunder, twenty percent (20%) of the amount of all delinquent taxes, penalty, and interest, actually collected and paid to the LCAD during the term of this Contract, as and when collected. CON"I�RAC�I�: Collection of Deli��uent Propertv �Caaes, Page 2 of 4 �� (a) The CITY agrees to pay the LAW FIRM for collecting those accounts turned over to it pursuant to Subsection 1(g) hereinabove an amount equal to twenty percent (20%) of the taxes, penalties and interest actually collected. (b) The CITY agrees to pay the LAW FIRM for collecting those accounts turned over to it pursuant to bankruptcy and other proceedings (including but not limited "to eminent domain, probate and federal receiverships) an amount equal to twenty percent (20%) of the taxes, penalties and interest actually collected. (c) The LAW FIRM shall be paid not less frequently than monthly. (d) All compensation provided for herein shall become the property of the LAW FIRM at the time payment of taxes, penalty and interest is made to the CITY (or the LCAD on behalf of the CITY). SECTION 3. Notice of Discrepancies. The LAW FIRM will call to the attention of the LCAD or other officials any errors, double assessments, or other discrepancies that reasonably come to its attention during the exercise of its work pursuant to this Contract. SECTION 4. Re�ular Pro re� ss Reports. The LAW FIRM will provide the CITY with regular progress reports not less than annually, and at CITY's request. SECTION 5. Taxpaver's Inabilit ty o Pay. The LAW FIRM will advise the CITY of accounts for which, after investigation, it reasonably believes a taxpayer is financially unable to pay their delinquent tax obligation. SECTION 6. Outside Counsel. The Law Firm may engage other attorneys to assist it at its sole expense and at no additional cost to the CITY. SECTION 7. Term. The Term of this Contract shall commence on May 1, 2013 and shall expire on October 1, 2015. The term of this Contract shall automatically renew on a year to year basis unless a party provides written notice of non-renewal to the other pariy by no later than thirty days prior to the October 1 S` renewal date. SECTION 8. Termination. Either party may terminate this agreement for cause or convenience by giving no less than thirty calendar days written notice of the termination to the other; to the extent that the termination is for cause, the cause or reason for termination shall be included in the notice of termination, along with a reasonable opportunity to cure. The LAW FIRM will be entitled to all compensation due to it through the date of termination. Following the expiration or termination of this Contract the LAW FIRM will have six months to handle to conclusion and reduce to judgment all suits filed prior to the expiration or termination date, and shall be entitled to the compensation due to it for collecting the tax accounts relating to these suits as if there had there been no expiration or termination. CUN�I�RACI�: Collection of Delinuuent Nropert�� �I�aaes, Page 3 of 4 2� SECTION 9. Notice. Any notices required or permitted to be given hereunder shall be given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, or (c) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and such notices shall be addressed as follows: For CITY: CITY MANAGER City of Paris 135 First SE Street Paris, Texas USA 75460 For LAW FIRM: Mr. Tracy A. Pounders Managing Member The Pounders Law Firm, PLLC Knox Central Place, Suite 200 Dallas, Texas USA 75205 or to such other address as either party may from time to time specify in writing to the other party. Any notice shall be effective only upon actual delivery to the party. SECTION 10. Venue. This Contract shall be construed in accordance with the laws of the State of Texas. Exclusive venue for any action shall be Lamar County, Texas. SECTION 11. Multiple Ori i� nals. This Contract shall be executed in no less than triplicate originals, and each shall be considered the original document. EXECUTED this day of , 2013 by the CITY OF PARIS and by THE POUNDERS LAW FIRM, PLLC, acting by and through their authorized representatives. CITY OF PARIS, TEXAS : A.J. Hashmi Mayor, City of Paris THE POUNDERS LAW FIRM, PLLC : Mr. Tracy A. Pounders Managing Member CONTRAC'1�: Collcction of Delinauent Propertv Taxes, Paae 4 of 4 � Q � ���