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HomeMy WebLinkAboutRES 85-269 R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to execute a contract for the collection of delinquent taxes in the form attached hereto as Exhibit "A" . PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1985. V . v Mayor - CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES THE STATE OF TEXAS COUNTY OF JEFFERSON THIS CONTRACT is made and entered into by and between City of Beaumont acting by and through its governing body, hereinafter called First Party, and Blair, Williams, and Harrison, Attorneys at Law, of Houston, Texas, and Benckenstein, Oxford, Radford, & Johnson of Beaumont, Texas hereinafter called Second Party. I. First Party hereby retains Second Party to enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest owing to First Party which the First Party' s Tax Collector refers to Second Party. First party reserves the right to make the final decision as to whether or not to enforce by suit any delinquent tax account turned over to the Second Party for collection. Taxes becoming delinquent within the period of this contract shall become subject to its terms upon the fol- lowing conditions: A. Taxes that become delinquent during the term' of this contract that are not delinquent for any prior year become subject to the terms of this Contract on the first day of July, of the year in which they become delinquent; and B . Taxes that become delinquent during the term of this contract that are delinquent for prior years shall become subject to its terms on the first day of de- linquency. II . Second Party is to call to the attention of the col- lector or other officials any errors, double assessments or other discrepancies coming under its 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 taxing jurisdiction. Exhibit "A" t III. Second Party agrees to make progress reports to First Party on request, and to advise First Party of all cases where investigation reveals taxpayers to be financially unable to pay their delinquent taxes. IV. First Party agrees to pay to Second Party as compensa- tion for services required hereunder 15% of the total amount of all delinquent taxes , penalty and interest collected except the fee shall be 12.5% on all taxes for the year 1983 and prior for the first sixty ( 60 ) days after the first mailing of letter by the Second Party. After the expiration of the said sixty (60) days the fee shall revert to 15%. Also on all accounts if there is a payment agreement or suit, the fee shall be 15%. Such compensation shall become the property of the Second Party at the time such delinquent taxes , penalty and interest are actually paid to First Party' s Collector of Taxes. The Collector of Taxes shall pay such compensation to Second Party monthly by check. V. Other taxes, including current taxes, which are turned over to the Second Party by the First Party' s Tax Assessor- Collector because of the necessity for filing claims in Bankruptcy or for any other reason become subject to the terms of this contract at the time they are turned over to Second Party and Second Party is entitled to 15% of any amounts actually received by First Party. VI . In the event suit is necessary to collect any of the delinquent taxes, penalty and interest covered by this con- tract, Second Party agrees to recover as attorney' s fees on behalf of the First Party 15% of all such delinquent taxes, penalty and interest or if Section 33 .07 of the Property Tax Code has been adopted, 15% provided by the State Property Tax Code will be recovered as penalty as directed by the First Party. VII . First Party understands that Jefferson County will furnish the Second Party an updated copy of its delinquent tax roll on computer tape, printout or in a format agreeable to both parties. VIII . The Second Party agrees to hold First Party harmless in any suit or suits that may result in any liability from the collection of any delinquent tax or taxes. IX. It is expressly understood on all accounts where an Abstract of Judgment has been taken by Jefferson County, that the 15% attorney fee will be retained by the taxing units. Also on cases where property is being held for sale on foreclosure judgments for lack of an adequate bid , attorney fee's on any sums received shall be retained by the taxing units unless the Second Party is instructed to proceed to do further work on these accounts. It is further understood that any fees earned off the bankruptcy cases involving the Independent Refining Corporation shall be retained by the taxing units and excepted from the terms of this contract. X. It is expressely understood the first party will assume all pending law suits and will file the proper pleadings in order for the 15% attorney fees be collected. XI. This contract shall commence on July, 1985 , and end on June 30, 1986, provided, however, that the Second Party shall have an additional six months to reduce to judgment all suits filed prior to the last day of the contract term. The Second Party shall handle to conclusion all suits in which trial court judgments are obained during the period of this contract and which are appealed by any party. Either party to this agreement shall have the right to terminate this agreement by giving the other party thirty (30) days written notice of their desire and intention to terminate this agreement . Upon termination of this contract , the Second Party agrees to provide copies of all tax files to the Tax Collector. XII. In consideration of the terms and compensation here stated , Second Party hereby accepts said employment and undertakes the performance of this contract as above writ- ten. XIII. This contract is executed on behalf of First Party by the presiding officer of its governing body who is author- ized to execute this instrument by order heretofore passed and duly recorded in its minutes. WITNESS the signatures of all parties hereto in duplicate originals this day of City of Beaumont, Jefferson County, Texas City of Beaumont By Blair, Williams, and Harrison By Benckenstein, Oxford, Radford & Johnson By . ANALYSIS OF 2 1/2% FEE REDUCTION ON YEARS 1983 AND PRIOR 97,000 - Total fee estimated - 58 , 200 - 60% estimated under agreement or suit 39 ,800 - Paid direct - 6,606 - ( 2 1/2% reduction in fees = 16.6% 33,194 NOTE: INCREASED TAXES PAID TO CITY $650,000