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HomeMy WebLinkAboutIR 8340 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8340 July 24, 2001 To the Mayor and Members of the City Council SUBJECT: DELINQUENT TAX COLLECTION CONTRACT The current contract with Perdue, Brackett, Flores, Utt, and Burns, A Joint Venture, to collect delinquent property taxes expires December 31, 2001. A Request for Qualifications (RFQ) for the Legal Collection of Delinquent Revenue is attached. Staff presented this RFQ to the Governmental Relations Committee on July 10. The schedule for receiving responses from interested firms and awarding this contract is outlined below: August 1 - Distribute and advertise RFQ August 15 - Pre-response conference with interested firms September 28 - Responses received in Finance October 1- 31 - Responses reviewed by Law and Finance November 6 - City Attorney recommendation to GRC November 20 - Council approves new contract December 31 - Current-contract expires January 1 - New contract begins The new contract will be for a period of three years, with two, one-year renewal options. The MNVBE goal proposed for this contract is 20%. The fees received by the collection firm are estimated at $625,000 annually. Gary W. Jackson City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS REQUEST FOR QUALIFICATIONS LEGAL COLLECTION OF DELINQUENT REVENUE CITY OF FORT WORTH I. Introduction The City of Fort Worth is requesting qualifications of attorneys and/or law firms to collect delinquent property taxes for the City of Fort Worth and to assist as requested in the collection of delinquent hotel/motel taxes, bankruptcy claims and other miscellaneous delinquent accounts. The City intends to enter into a contact with the individual or fin-n judged most qualified to perform the services described below for a three-year period beginning January 1, 2002 through December 31, 2004, with an option to renew the contract for two one-year periods. Background The City of Fort Worth has approximately 209,000 tax accounts with a market value of $28,876,279,695. The net taxable value is $19,747,570,120, and with a tax rate of $0.875/$100, the current year (200 1) tax levy is expected to be $189,535,000. Typically, 95 percent of the levy is collected by July 1. The City has contracted with the Tarrant County Tax Assessor/Col lector's Office to collect current taxes. The Tarrant County tax data base utilizes an DEC NT Alpha SQL Server 7000 Model 7305, quad processor. The County now ftp's and emails zipped transmittal files. Delinquent data files are transmitted weekly. The City utilizes an IBM Multiprise 3000 computer to maintain its records of other delinquent accounts. Data magnetic cartridges are in EBCDIC format utilizing IBM 3490 Tape Drives. All delinquent data files are transmitted once each month on an IBM 3490 magnetic cartridge. Scope of Services Required A. To enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest. Suits going to judgment shall include all relevant delinquent taxes not otherwise protected. Before a lawsuit is filed or property seized. the Tarrant County Tax Assessor-Collector must review for compliance and verification with the records kept in that office. B. To notify the Tarrant County Tax Assessor-Collector, Tarrant County Appraisal District or other appropriate parties or governmental agencies/departments of errors, double assessments, name and address corrections or any other discrepancies coming to the firm's attention. C. To intervene on behalf of the City of Fort Worth in all suits for taxes hereafter filed by any taxing unit on property located within the City of Fort Worth and having delinquent taxes due and owing. D. To represent the City of Fort Worth in regard to any ad valorem tax matters in such courts as State and Federal District Courts, Bankruptcy Courts and all State and Federal Appellate Courts, E. To report as requested on the status of all unresolved delinquent accounts referred to the firm that are one year or older. To provide information concerning 1) the status of the account; 2) the reasons why the case has not been concluded; 3) whether or not a lawsuit was filed and, if not, why not; and 4) what further action the firm is contemplating. F. To receive via FTP or email a zipped ASCII format of delinquent accounts computer magnetic tapes from the Tarrant County Tax Assessor/Collector of delinquent tax accounts and from that data make the necessary demand mailings, telephone contacts, suit filings, or reducing such to conclusion that results in all applicable taxes, interest, penalties and fees being paid. 'G. To have the capacity to accurately calculate all necessary interest, penalties, and fees based upon the various dates of delinquency, pre- and post-petition bankruptcies, date of judgment, 33.07 notice or lack thereof, delinquent installments, failure to make second-half payments, deferrals and abatements, delinquencies having certain exemptions and all other various calculations necessary to arrive at the correct amount of the tax lien subject to foreclosure. H. To provide periodic and special management reports as required. Said reports shall include. but not be limited to, summaries of the delinquent tax accounts referred, number (as well as total dollars involved) collected before suit, number collected after suit had been filed, aging of suits filed, aging of tax accounts remaining unpaid which are to be grouped by year of the original assessment. I. To file all bankruptcy claims, amended claims, administrative claims, represent the City of Fort Worth in all hearings, appeal adverse decisions that are contrary to prevalent law, and pursue taxes, penalties, interest and fees not discharged. J. To file, serve and administer tax warrant seizures and storage thereof until sale or settlement of the delinquent account. K. To enter and delete suit numbers and bankruptcy case numbers on the County tax office computer through remote application in the firm's office. To supply reports as requested to monitor and audit data entries. 11010*` L. To enter and delete addresses in the County tax office Computer through remote access from the firm's office. To provide reports as requested for monitoring of this activity. M. To immediately notify the County tax office of dismissal or discharge of litigation IM that prohibited tax billings. N. To receive and research returned County tax office mailings because of bad names and/or addresses and update the County tax office computer as needed and in a timely fashion and provide the Tarrant Appraisal District with written notification of the new owner/address information. 0. To allow and provide the County tax office as the City's tax collector, complete access to the attorney data base of the accounts referred to the firm, which indicate the current status of how each account is being pursued and the date of each activity. Such data base should show demand mailings, telephone contacts and suit status information. Access should allow multiple terminals within the County tax office to inquire simultaneously and the firm's equipment must support and be compatible with the County tax office software and hardware configuration. Any costs of needed hardware/software to allow for existing County tax office terminals to access the attorney's delinquent data base shall be entirely at the expense of the attorney's office. P. To operate and maintain multiple terminals (minimum of 5) with the capability of accessing the County tax office data base to provide the necessary inquiries, updates and taxpayer assistance as requested. The equipment installed in the attorney's office, modems, routers, data lines are a cost to the attorney's office, and must, in all instances, be compatible with the County tax office hardware and have the approval of the County tax office before any installation. Use of a web browser to access the County tax office web site may also meet this requirement Q. To utilize print and electronic advertising to promote the payment of ad valorem taxes, impending deadlines, and the potential of litigation. R. To ensure that tax payments are to be directed to the Tarrant County Tax Assessor/Collector and all payments from taxpayers are to be made payable to the Tarrant County Tax Assessor/Collector. S. To clear any major mass mailing effort through the County Tax Assessor/Collector's Office for review of the data's accuracy. T. To prepare documents and seek injunctions to enjoin hotels/motels from operating in the City of Fort Worth, after other methods of collecting hotel occupancy taxes have failed. as prescribed by Section 351.004 of the Texas Tax Code. U To file all bankruptcy claims, amended claims, administrative clams, represent the City of Fort Worth in all hearings, appeal adverse decisions that are contrary to prevalent law, and pursue principal amounts, penalties, interest and fees not discharged pertaining to the delinquent revenue accounts. IV. Format for Response A. Executive Summary of the Response B. Description of the Firm 1. Provide the name and address of the home office of the firm. Provide the name and address of the local or branch office responsible for providing the services requested (if different from the home office). 2. Provide a brief history of the firm, to include the date founded, the experience of the local or branch office providing the services, the primary source of revenue for the firm, etc. 3. Identify the firm's principals and include resumes which provide the name of the law school from which graduated, the date admitted to the Texas Bar, and Board Certification, if applicable. 4. List all personnel, including data processing personnel, to be assigned to this project by job title,job description and number of years of experience in the field of delinquent tax collections and/or other delinquent revenue collections. Indicate the percent of time each individual will be assigned to this project. Provide resumes of all key individuals. Include current and any new personnel that may be hired if contract is obtained by your firm. 5. Identify any joint venture firms or subcontractors which will be involved in the project. Describe their qualifications. Explain their involvement and provide an organization chart to demonstrate how all the firms will work together. C. Relevant Experience of the Firm 1. Provide detailed description of the firm's experience in delinquent tax collections for public entities by type of entity (County. City, Special/School District, Other) and in descending order of number Of Current tax accounts. Included in this description Should be a list of jobs currently Linder contract and/or completed within the last two years, including-, the governmental entity served. approximate annual budget of the entity, annual tax levy, number of property tax accounts. contact reference, address and telephone number. 4 re , 2. For the firm's five largest delinquent tax collection clients, provide the following information (in descending order by number of current tax accounts). If the firm has fewer than five clients, please indicate the number of clients for which your firm provides service, if any, and provide information for those clients.: NAME OF CLIENT: Tax Year Tax Year Tax Year 1998 1999 2000 a) Total Current Tax Accounts of this Client: b) Number of current year delinquent tax accounts referred by this client to your firm on July Ist c) Amount of current year delinquent taxes due for accounts referred to your firm on July 1st: d) Percentage of delinquent tax accounts referred to in "b"that are now collected: e) Dollar amount of delinquent taxes collected by your firm of the amount referred to in"c": f) Number of delinquent tax suits filed: ppk g) Number of tax suits collected on: h) Amount of delinquent taxes due on accounts for which suits were filed: i) How many tax seizures performed: j) Amount of taxes due in seizures: k) Amount of taxes collected as a result of seizures: I) Number of properties in bankruptcy handled: m) Amount of delinquent taxes due from property in bankruptcy: n) Amounts of delinquent taxes due from properties owned by federal agencies: D. Capabilities of the Finn 1. Provide detailed description of the Firm's computer hardware and software. Describe the software that your firm has developed to handle the various stages of delinquent revenue and tax collection programs, such as taxpayer notifications. address research, litigation. monitoring of partial payments, and reporting for accountability and statistics. Also, describe the software that your Finn has available to facilitate an automated interface between your 5 Or, computer and the County's computer and between your computer and the City's computer. For hardware, information should include brand name and model, capacity, how long in use, and plans for upgrading if necessary to accommodate this contract. 2. Describe the firm's present workload with a statement outlining how the workload will affect the firm's capability to perform the services and functions required under the contract, 3. Provide a statement as to the firm's ability to begin full and complete operations on this project as of January 1, 2002. Respondents to this RFQ who have had no experience within the last two calendar years of providing legal services in the enforced collection of delinquent ad valorem taxes for a taxing jurisdiction must provide written detailed assurances that they have the expertise, experience, technical ability, and the financial ability to specifically perform all of the services required in this RFQ. 4. Provide a statement detailing the existence of lawsuits filed against the firm or any joint venture partner within the last two years including the nature of such action, cause number,jurisdiction in which filed and current status. 5. Provide a statement detailing any recent occurrences in which there was 1) an inability to timely perform or 2) the performance was inaccurate or 3)) not in accordance with existing law. E. Approach to Providing Services Z:1 I. Describe the firm's philosophical approach to collecting delinquent taxes and other delinquent revenue. Explain in detail how the firm would (1) collect the City's delinquent property taxes and (2) assist the City in the legal collection of other delinquent revenue accounts. 2. Suggest performance measures to assist the City in monitoring the firm's performance and determining its effectiveness. F. Involvement of Minority and Women Business Enterprises (M/"E) 1. I It is the City's policy to involve Minority and Women Business Enterprises (M/VaE's) in its procurement of professional services. The City's goal on this project is twenty percent (20%) of the dollar volume of the contract for M/WBE participation. Indicate how the firm intends to meet the a'oal of 20% by listing the narne(s) of the certified or certifiable M/WBE firms to be involved. their scope of work and the estimated dollar amount of each firm. These firms must be certified by the City of Fort Worth before a recommendation for award being made to the City Council. The City of Fort Worth utilizes the North Central 6 10 r11 Texas Regional Certification Agency (NCTRCA) as its certifying entity and also accepts certification from the Texas Department of Transportation, highway division. 2. If unable to meet the goal, the response must include documentation of a "Good Faith Effort" to have done so. The City will not execute professional services contracts in excess of a $25,000 fee without the goal being met or the documentation of a good faith effort. I M/WBE participation is part of the selection criteria. G. Compensation 1. The City expects that the collection of delinquent property taxes will be accomplished at no cost to the City. Collection fees, court costs and any other costs related to the collection of these delinquent accounts must be paid by the debtor. 2. Confirm that there will be no cost to the City and that all collection fees will be paid by the debtors. Specify that the only fees billed to the City will be the statutory fees as set out in the Texas Property Tax Code or "reasonable attorney's fees" awarded by a court. H. Contract - Include a draft contract between the City and the firm. V. Submission Information A. Twelve (12) copies of the response should be submitted no later than 5:00 P.M., September 28, 2001 to: Linda Brown Deputy Treasurer City of Fort Worth 1000 Throckmorton Fort Worth, Texas 76102 B. A pre-submission conference is scheduled for August 15, 2001, at 10:00 A.M. in the Finance Conference Room on the third floor of the City's Municipal Building at 1000 Throckmorton to discuss the RFQ and answer questions. Attendance at the pre-submission conference is not mandatory. C. Questions occurring after the pre-submission conference must be submitted in writing to Linda Brown at the above address or faxed to 817-871-8966 no later than August 22. Written questions with answers will be distributed by August 29 to all firms who have picked up or received a copy of this RFQ. 7 D. Qualifications will be reviewed and ranked by a staff committee. Oral interviews and site visits may be arranged between October 15-19. A recommendation will be made to the Government Relations Committee of the City Council on or about November 6. The City Council will approve a new contract on or about November 20. E. The City reserves the right to reject any and all responses submitted and to request additional information from any or all submitters. The City further reserves the right to waive any non-material irregularities or informalities in the RFQ and to accept or reject any item or combination of items. VI. Selection Criteria A. Qualifications and experience of the firm to successfully perform a contract of this size and scope. B. Past experience of the firm in the field of delinquent property tax collection. C. Reputation of the firm with past clients. D. Overall completeness and quality of the response. E. Compliance with the City's DBE policy. F. Sufficiency and capability of the firm's computer resources. 8