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R2022-251 2022-10-24RESOLUTION NO. R2022-251 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into a contract with Perdue, Brandon, Fielders, Collins and Mott, LLP for collection services associated with delinquent fines and fees, and delinquent property taxes. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain contracts for collection services, copies of which are attached hereto as Exhibits “A” and “B” are hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest the contracts for collection services. PASSED, APPROVED and ADOPTED this the 24th day of October, A.D., 2022. ________________________________ J.KEVIN COLE MAYOR ATTEST: ________________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ________________________________ DARRIN M. COKER CITY ATTORNEY DocuSign Envelope ID: 996D882B-9F5A-4798-BE9C-3AED63E3470D DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES THE STATE OF TEXAS COUNTY OF BRAZORIA SECTION I. PARTIES THIS CONTRACT is made and entered into by and between. the CITY OF PEARLAND, a political subdivision of the State of Texas, acting by and through its City Council, hereinafter called Taxing Authority, and PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P., Attorneys at Law, Houston, Texas, or their duly authorized representatives, hereinafter called the Firm. SECTION II EMPLOYMENT AGREEMENT Taxing Authority agrees to employ and does hereby employ the Firm to enforce by suit or otherwise, the collection of all delinquent taxes, penalty and interest, owing to the Taxing Authority which the Taxing Authority's Tax Collector refers to the Firm, provided current years taxes becoming delinquent within the period of this contract shall become subject to its terms upon the following 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 1st day of July, of the year in which they become delinquent; and B. Taxes that become delinquent during the teen of this contract on property that is delinquent for prior years and upon which the firm initiates or has initiated legal activity shall become subject to its tern on the first day of delinquency. C. Taxing Authority 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 Firm for collection. D. All delinquent personal property taxes shall become subject to this contract and are to be turned over to the FIRM for collection 60 days after the delinquency date for said taxes. A 20% penalty shall be assessed to defray the cost of collecting those taxes as provided by §33.11, Texas Property Tax Code. All collection penalties or attorney fees collected on those taxes are the property of the firm and shall be paid in the same manner as all other collection penalties or attorney fees under this contract. SECTION III. THE FIRM'S COLLECTION OBLIGATIONS The Firm is to call to the attention of the collector or other officials any errors, double assessments or other discrepancies coming under their observation during the progress of the work DocuSIgn Envelope. ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D and is to intervene on behalf of the Taxing Authority in all suits for taxes hereafter filed by any taxing unit on property located within its taxing jurisdiction. The Firm agrees to make quarterly progress reports and one annual report to the Taxing Authority and any other information as requested and to advise the Taxing Authority of all cases where investigation reveals taxpayers to be financially unable to pay their delinquent taxes. SECTION IV. COLLECTION FEE Taxing Authority agrees to pay the Finn as compensation for services rendered hereunder, the percentage as set forth below, of the total amount of all delinquent taxes, penalty and interest which are subject to this contract and which are actually collected and paid to the Taxing Authority's Collector of Taxes, when an equal amount of Section 33.07 or 33.08 penalties is recovered from the taxpayer. Other taxes, including current taxes, which are turned over to the Firm by the Taxing Authority's Tax Assessor -Collector because of the necessity of filing claims in. Bankruptcy, with other Federal authorities, or for other reasons, shall become subject to the terms of this contract at the time they are turned over to the Firm and the Firm shall be entitled to the appropriate percentage, as set forth below, of any amounts of delinquent taxes, penalties, and interest actually received by the Taxing Authority, and also the appropriate percentage, as set forth below, of current taxes actually received by the Taxing Authority when such percentage is actually recovered from the taxpayer, if collected prior to July 1" of any tax year. Compensation Amounts 15% for tax year 2002 and prior year collections; 20% for tax year 2003 and subsequent year collections. SECTION V. TAXING AUTHORITY'S OBLIGATIONS Taxing Authority agrees to furnish to the Firm all data and information in its possession as to the name and address of the taxpayer, the legal description of the property, years the property is delinquent and the amount of taxes due. Taxing Authority further agrees to update said information by furnishing a list of paid accounts and adjustments to the Tax Roll as necessary. Section 33.48(a)(4) of the Texas Property Tax Code provides: "In addition to other costs authorized by law, a taxing unit is entitled to recover...reasonable expenses that are incurred by the taxing unit in determining the name, identity and location of necessary parties and in procuring necessary legal descriptions of the property on which a delinquent tax is due:..." The Firm agrees to advance on behalf of Taxing Authority such costs and expenses. In consideration of the advancement of such costs and expenses by the Firm, Taxing Authority assigns its right to recover the same to the extent approved by the Court and/or customarily and usually approved by the Court. The Firm expressly waives any claim against Taxing Authority for uncollected costs or expenses. 2 DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D SECTION VI. COMMENCEMENT AND TERMINATION OF THE CONTRACT This Contract shall commence on January 1,2023, and continue in force and effect until December 31, 2025, except that either party to this agreement may terminate this agreement by giving the other party thirty (30) days written notice of their desire and intention to terminate this agreement, this contract will be automatically renewed on its identical terms for four (4) one year terms commencing on the anniversary date of this contract unless written notice of intent not to automatically renew is delivered by the City to the firm not less than sixty (60) days prior to the expiration date of the initial 3 year term or the anniversary date of any one year renewal period. At conclusion of the initial term and all renewals, this contract shall continue on a month to month basis until terminated. Upon termination, the Firm shall have an additional six (6) months to reduce to payment or judgment all tax suits and bankruptcy claims filed prior to the date this agreement becomes terminated. SECTION VII. NOTICES For purposes of sending notice under the terms of this Contract, all notices from the City shall be sent to Perdue by certified United States mail, or delivered by hand or courier, and. addressed as follows: Perdue, Brandon, Fielder, Collins & Mott, LLP Attn: Michael Darlow BY U.S. MAIL OR BY COURIER DELIVERY: 1235 North Loop West, Suite 600 Houston, Texas 77008 Telephone Number: 713-862-1860 All notices from Perdue shall be sent to the City by certified United States mail, or delivered by hand or courier, and addressed as follows: City of Pearland Attn: Amy Johnson 3519 Liberty Drive Pearland, Texas 77581 Telephone Number: 281-652-1671 SECTION VIII. SEVERABILITY Every provision of this Agreement is intended to be severable. If any term or provision hereof is hereafter deemed by a Court to be illegal, invalid, void or unenforceable, for any reason or to any extent whatsoever, such illegality, invalidity, or unenforceability shall not affect the validity of the remainder of this Agreement, it being intended that such remaining provisions shall be construed in a manner most closely approximating the intention of the Parties with respect to the illegal, invalid, void or unenforceable provision or part thereof. 3 DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D SECTION IX. CONFIDENTIALITY The Parties to this Contract agree that each shall treat as confidential all information provided by a party to the others regarding such party's business and operations including proprietary technology and systems. SECTION X. MANDATORY PROVISIONS Pursuant to Chapters 2252, 2271, and 2274 of the Texas Government Code, the Firm verifies that it does not and will not for the tern of this contract boycott Israel or energy companies; that it does not have a policy which discriminates against a firearm entity or firearm trade association nor will it create such a policy for the term of this contract; and that it is not engaged in business with Iran, Sudan, or a foreign terrorist organization. The State Bar of Texas investigates and prosecutes professional misconduct committed by Texas attorneys. If you have a complaint against or dispute with this firm involving professional misconduct, the State Bar's Office of Chief Disciplinary Counsel will provide you with information about how to file a complaint. SECTION XI. ACCEPTANCE OF CONTRACT In consideration of the terms and compensation here stated, the Firm hereby accepts said employment and undertakes the performance of this Contract as above written. This Contract is executed on behalf of the Taxing Authority by the presiding officer of the governing body who is authorized 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 the Z 7 y of 0 t7,okt , 2022, Brazoria County, Texas. ATTEST: PERDUE, BRANDON, FIELDER COLLINS & MOTT, L.L.P. CITY OF PEARLAND DocuSigned by: i Docusigned by: grouts l(r_tular BY: I " cz2c31r r41c... i 303209069CC6469... 4 Pt arsnvi, DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D SECRETARY CITY MANAGER DocuSIgn Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D CONTRACT FOR COURT FINES AND FEES COLLECTION SERVICES STATE OF TEXAS § COUNTY OF BRAZORIA § SECTION 1. PARTIES TO THE CONTRACT THIS CONTRACT, hereinafter called "Contract", is made and entered into by and between the City of Pearland, Texas, acting herein by and through its governing body, hereinafter called "the City" and Perdue, Brandon, Fielder, Collins & Mott, L L P , hereinafter called "Perdue". THIS CONTRACT supersedes all prior oral and written agreements between the parties and can only be amended if done so in writing and signed by all parties. Furthermore, this Contract cannot be transferred or assigned by either party without the written consent of all parties. The City agrees to employ anddoes hereby employ Perdue to enforce the collection of delinquent court fines, fees, and court costs pursuant to the terms and conditions described in this Contract. NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereinafter set forth, the adequacy of which is hereby acknowledged, the City and Perdue agree as follows: SECTION II. CITY'S COLLECTION OBLIGATIONS A. The City agrees to refer all delinquent accounts, as defined below, to Perdue for collection on or about the first (Is`) or the fifteenth (15th) of each month. The City shall refer all delinquent accounts by electronic or magnetic medium, if available, or in any other way that is most favorable to the City. All delinquent accounts should be in a specified format that will allow Perdue to process the account data. B. An account is considered delinquent when not paid within sixty (60) days of the scheduled appearance date (if the defendant failed to appear), or from any granted extension, or from the date of conviction or judgment, or other court specified due date. C. The City will provide Perdue with copies of, or access to, the information and documentation necessary to collect the fines, fees, and court costs that are subject to this Contract. DocuSIgn Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D SECTION III. PERDUE'S COLLECTION OBLIGATIONS A. Perdue agrees to refer all payments and correspondence directly to the court that has assessed or levied the fines, fees, and court costs being collected pursuant to this Contract. B. Perdue agrees to use its best efforts to collect the delinquent accounts received from the City and to comply with all provisions of state and federal law and regulations promulgated pursuant thereto in the rendition of collection services contemplated by this Contract. C. If requested by the City, Perdue agrees to provide legal advice to the City on its delinquent accounts. D. Perdue agrees to coordinate with the City for two warrant roundup events annually to include: 1. Pay for printing, mailings and publicity. 2. Provide research for arrest lists to be used by the warrant officers during the enforcement period. 3. In exchange for these services, city agrees all collection fees willremain in place pursuant to Article 103.0031 during Warrant Round Ups. E. Perdue agrees to reimburse the City of Pearland for one full time entry level court clerk for the term of the contract and all renewals not to exceed $25,000 per annum. This shall be payable to the City each month the contract is in force. Perdue's obligation to reimburse the City each month is conditioned uponthe city sending an invoice for reimbursement to Perdue. F. Perdue agrees to provide customized reports as requested by the court. G. Perdue agrees that it will utilize other defendant contact methods as allowable by law and approved by the court as new technology is developed (ex. text messaging). H. Perdue agrees to assist the City in the implementation of a scofflaw program with Brazoria County, Texas. SECTION IV. COLLECTION FEE The City agrees to pay Perdue as follows: (1) No charge for the collected fines, fees, and court costs referred to Perdue by the City imposed on all unadjudicated offenses committed on or before June 18, 2003. (2) Thirty percent (30%) of the collected fines, fees, and court costs referred to Perdue imposed on all adjudicated offenses committed on or before June 18, 2003; and DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D (3) Thirty percent (30%) of the collected fines, fees, and court costs referred to Perdue imposed on all offenses occurring after June 18, 2003. The thirty percent (30%) collection fee shall be added to the amount owed by a defendant that is more than 60 days past due pursuant to Article 103.001, Texas Code of Criminal Procedure. SECTION V. EXCEPTIONS TO THE COLLECTION FEE Pursuant to Article 103.0031(b), Texas Code of Criminal Procedure, Perdue cannot collect from a defendant the percentages referred to in Section IV. COLLECTION FEE if the defendant has been determined by the court of original jurisdiction to be indigent, or has insufficient resources or income, or is otherwise unable to pay all or part of the underlying fine or costs. The collection fee does not apply to a case that has been dismissed by a court of competent jurisdiction or to any amount that has been satisfied through time -served credit or community service. The collection fee shall, however, be applied to any balance remaining after a partial credit for time served or community service if the balance is more than 60 days past due. SECTION VI. METHOD OF PAYMENT Absent an agreement otherwise, the City shall calculate and receive the amount of any collection fee due to Perdue. Said fee shall be paid to Perdue by check on a monthly basis. All compensation shall become the property of Perdue at the time of payment. SECTION VII. COMMENCEMENT AND TERMINATION OF CONTRACT This Contract shall commence on January 1, 2023, and continue in force and effect until December 31, 2025, except that either party to this agreement may terminate this agreement by giving the other party thirty (30) days written notice of their desire and intention to terminate this agreement; this contract will be automatically renewed on its identical terms for four (4) one year terms commencing on the anniversary date of this contract unless written notice of intent not to automatically renew is delivered by the City to the firm not less than sixty (60) days prior to the expiration date of the initial. 3 year term or the anniversary date of any one year renewal period. At conclusion of the initial tern and all renewals, this contract shall continue on a month to month basis until terminated. Upon termination, Perdue shall have an additional six (6) months to complete work on all delinquent accounts referred from the City prior to the notice of termination and will be entitled to compensation on such accounts if collected. SECTION VIII. NOTICES For purposes of sending notice under the terms of this Contract, all notices from the City shall be sent to Perdue by certified United States mail, or delivered by hand or courier, and addressed as follows: DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D Perdue, Brandon, Fielder, Collins & Mott, LLP Attn: Michael Darlow BY U.S. MAIL OR BY COURIER DELIVERY: 1235 North Loop West, Suite 600 Houston, Texas 77008 Telephone Number: 713-862-1860 All notices from Perdue shall be sent to the City by certified United States mail, or delivered by hand or courier, and addressed as follows: City of Pearland Attn: Amy Johnson 3519 Liberty Drive Pearland, Texas 77581 Telephone Number: 281-652-1671 SECTION IX. VENUE AND CONTROLLING LAW This Contract is made and is to be interpreted under the laws of the State of Texas. Venue for any disputes involving this Contract shall be in the appropriate courts in Brazoria County, Texas. SECTION X. SEVERABILITY Every provision of this Contract is intended to be severable. If any term or provision hereof is hereafter deemed by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, for any reason or to any extent whatsoever, such illegality, invalidity, or unenforceability shall not affect the validity of the remainder of this Contract, it being intended that such remaining provisions shall be construed in a manner most closely approximating the intention of the parties with respect to the illegal, invalid, void or unenforceable provision or part thereof. This Contract is executed on behalf of the City by the presiding officer of its governing body who is authorized to execute this instrument by Ordinance heretofore passed and recorded in its minutes. This Contract may be executed in any number of counterparts, and each counterpart shall be deemed an original for all purposes. Signed facsimiles or electronically signed Contracts executed on behalf of the City by the presiding officer of its governing body authorized to execute this instrument shallbe binding and enforceable. SECTION XL CONFIDENTIALITY The Parties to this Contract agree that each shall treat as confidential all information provided by a party to the others regarding such party's business and operations including proprietary technology and systems. DocuSign Envelope ID: 602D49C9-A1A3-46AD-97DE-F2D29AD5603D SECTION XII. MANDATORY PROVISIONS Pursuant to Chapters 2252, 2271, and 2274 of the Texas Government Code, the Finn verifies that it does not and will not for the term of this contract boycott Israel or energy companies; that it does not have a policy which discriminates against a firearm entity or firearm trade association nor will it create such a policy for the term of this contract; and that it is not engaged in business with Iran, Sudan, or a foreign terrorist organization. The State Bar of Texas investigates and prosecutes professional misconduct committed by Texas attorneys. If you have a complaint against or dispute with this firm involving professional misconduct, the State Bar's Office of Chief Disciplinary Counsel will provide you with information about how to file a complaint SECTION XIII ACCEPTANCE OF EMPLOYMENT In consideration of the terms and compensation herein stated, Perdue hereby accepts said employment and undertakes performance of said Contract as set forth above. WITNESS the signature of all parties hereto this Z 1 day of O V+ , 2022. City of Pearland, Texas ,-DocuSlgned by: f t, tvs&ln. By: �'� Sb • 1U.Se15`J(. W 4tlU.,. Name City Manager Title PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P. By: till ow Dtarc-- For the Firm