14 - CONTRACT AMENDMENT-TRACY POUNDERSItem No. 14
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: LAND BASED RECEIVABLES CONTRACT
DATE: September 8, 2015
BACKGROUND: As you know, the city has a very large number of outstanding liens for
mowing, demolition, secured closure, etc. work performed by the city and /or contractors in our
employ. These "Land -Based Receivables" are extinguished when property is foreclosed and the
money we spend is lost. However, state law allows us to combine some of those liens with
delinquent tax collection lawsuits.
STATUS OF ISSUE: In many cases, we will likely never recover the liens anyway, but we are
asking the council to authorize our current tax delinquency attorney, Tracey Pounders, to attempt
collection on these Land -Based Receivables for certain select properties. The city will pay 20%
of whatever the Pounders Firm is able to collect, including principal and interest.
BUDGET: Should generate some new revenues.
RECOMMENDATION: Approve resolution and contract amendment.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
APPROVING AN AMENDMENT TO THE CONTRACT WITH THE POUNDERS
LAW FIRM TO INCLUDE COLLECTION OF LAND -BASED RECEIVABLES;
MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, on April 22, 2013, the City of Paris (the "CITY ") entered into a contract
with The Pounders Law Firm, PLLC, (the "LAW FIRM ") to enforce the collection of all
delinquent taxes, penalty and interest as authorized by the Texas Property Tax Code ( "the
Contract "); and
WHEREAS, the initial term of the Contract was extended through October 1, 2017
by and through the execution of the First Amendment to the Contract on March 9, 2015;
and
WHEREAS, the CITY has a number of outstanding receivables for mowing, secured
closure, paving, and other services performed by the CITY and secured by a lien against
real property ( "Land -Based Receivables "); and
WHEREAS, the CITY desires to authorize LAW FIRM to collect the Land -Based
Receivables, on a select basis, when authorized by law to be included in the CITY's
delinquent tax collection suits;
NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the City Council of Paris,
Texas, that:
Section 1. The attached Second Amendment to the Contract between the CITY and
the LAW FIRM is hereby APPROVED, authorizing the collection of select Land -Based
Receivables.
Section 2. This Resolution shall take effect immediately from and after its passage
in accordance with the provisions of law.
PASSED AND APPROVED this 12th day of October, 2015.
A.H. HASHMI, M.D., Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
THE STATE OF TEXAS § SECOND AMENDMENT
§ CONTRACT FOR THE
§ COLLECTION OF DELINQUENT
COUNTY OF LAMAR § PROPERTY TAXES
THIS SECOND AMENDMENT TO CONTRACT is made and entered into by
and between the CITY OF PARIS, a Texas munipality located in Lamar County, Texas,
acting herein by and through its City Council (hereinafter called the "CITY ") and THE
POUNDERS LAW FIRM, PLLC (hereinafter called the "LAW FIRM ") acting by and
through its duly authorized officers.
WITNESSETH:
WHEREAS, on April 22, 2013, the City of Paris (the "CITY ") entered into a
contract with The Pounders Law Firm, PLLC, (the "LAW FIRM ") to enforce the
collection of all delinquent taxes, penalty and interest as authorized by the Texas Property
Tax Code ( "the Contract "); and
WHEREAS, the initial term of the Contract was extended through October 1,
2017 by and through the execution of the First Amendment to the Contract on March 9,
2015; and
WHEREAS, the CITY has a number of outstanding receivables for mowing,
secured closure, paving, and other services performed by the CITY and secured by a lien
against real property ( "Land -Based Receivables "); and
WHEREAS, the CITY desires to authorize LAW FIRM to collect the Land -
Based Receivables, on a select basis, when authorized by law to be included in the
CITY's delinquent tax collection suits;
THEREFORE IT IS AGREED THAT:
SECTION 1. Section 1 of the Contract is amended, adding the following:
"(h) To the extent authorized by law, LAW FIRM is authorized to
include select receivable accounts, identified jointly by the CITY or
CITY's designated representative and LAW FIRM, and secured by liens
against real property ( "Land -Based Receivables "), in new and pending
delinquent tax collection law suits to which the CITY is a party. CITY
agrees to furnish LAW FIRM with statements of account for delinquent
Land -Based Receivables and will furnish forms for said statements on
request. CITY will make available to LAW FIRM all information CITY
has with regard to the name, identity, and location of the persons or
entities owing money and the legal description of the property. CITY
further agrees that the Land -Based Receivables which it turns over to the
LAW FIRM for collection will have been perfected in accordance with
state law and local ordinance, if any. LAW FIRM is authorized, if
Second Amendment: Contract For The Collection Of Delinquent Property Taxes, Page 1 of 2
mutually agreed to by LAW FIRM and the CITY or CITY's designated
representative, to draft releases of liens of record associated with
foreclosed or uncollectible Land -Based Receivables."
SECTION 2. Section 2 of the Contract is amended, adding the following:
"(e) CITY agrees to pay to LAW FIRM, as compensation for
collecting Land -Based Receivables, twenty (20) percent of all amounts
(representing the principal owed, plus interest thereon) collected from: (1)
persons or entities responsible for the payment of any delinquent land -
based receivable, or (2) recovered through the foreclosure of any lien
securing the payment of a delinquent land -based receivable."
SECTION 3. All other provisions of the Contract, as previously amended, shall
remain the same.
EXECUTED this day of , 2015 by the CITY OF
PARIS and by THE POUNDERS LAW FIRM, PLLC, acting by and through their
authorized representatives.
CITY OF PARIS, TEXAS
Dr. A. J. Hashmi
Mayor, City of Paris
THE POUNDERS LAW FIRM, PLLC
Mr. Tracy A. Pounders
Managing Member
Second Amendment: Contract For The Collection Of Delinquent Property Taxes, Page 2 of 2