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HomeMy WebLinkAboutPR 15216: OFFERMAN & KING, LLP - COLLECTION FIRMinteroffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney ~~ ~;Q~/ Date: May 1, 2009 Subject: P. R. No. 15216; Council Meeting May 5, 2009 Attached is P. R. 15216 as it pertains to retaining a collection firm, Offerman & King, L.L.P. This was tabled at the April 21, 2009 Council Meeting. The City Manager, the Director of Finance, the Director of Community Services, and the City Attorney met with Johnny Taylor and James King on April 30, 2009. Attached is an updated Proposal providing for a study to be completed on or about June 2, 2009, at a cost not to exceed $10,000. MTS:ts Attachment cc: VIA FACSIMILE (409) 860-9199 Johnny Taylor James King OFFERMAN & KING, L.L.P. z.pr15216 memo2 P. R. No. 15216 05/01/09 is updated RESOLUTION NO. A RESOLUTION AS IT PERTAINS TO RETAINING A COLLECTION FIRM WHEREAS, Offerman & King, L.L.P. specializes in serving the needs of creditors throughout the State of Texas, and is willing to assist the City in streamlining its internal process and in improving collection rates. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council approves the retention of Offerman & King, L.L.P. for a study of the City's collection process, as outlined in their proposal, attached hereto as Exhibit "A", with the total not to exceed $10,000 and for the report to be completed on or about June 2, 2009. Section 3. That an authorized representative of Offennan & King, L.L.P. will sign the Resolution agreeing to the terms thereof. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2009, at a Meeting of the City Council of z.pr15216_upda ted the City of Port Arthur, by the following vote: AYES: Mayor Councilmembers NOES: MAYOR ATTEST: CITY SECRETARY APPRO~VEDAAS~TaO eFORM/ CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER ROVED AS TO THE AVAIrLAB,IL,TY OF FUNDS: 1~ `-'l ASSISTANT CITY MANAGER/FINANCE DIRECTOR 001-1003-512.59-00 M97903 z.pr15216_updated AGREED TO: OFFERMAN & KING, L.L.P. SY: DATE: z.pr15216_updated EXHIBIT "A" Garry A. Offerman<t9ss-zoosl Lames W Kings Sohnny Taylor Board Certified - Texas Board of Legal Specialization. t Consumer Bankruptcy Law OEEERMAN & KING, L.L.P. Attorneys a[ Law 6420 Wellington Place Beaumont, Texas 77706 May 1, 2008 VIA EMAIL: MARKnu PORTARTHUR.NET City of Port Arthur c/o Mark Sokolow Of Counsel: Richard Battaglia Telephone: (409) 860-9000 Fax: (409) 860-9199 Re: Revised proposal for the Citv of Port Arthur to employ Offerman & King, L.L.P. to assist in the enforcementJcollection ofunpaid assessments Ladies & Gentlemen: It is our understanding that the City of Port Arthur (the "City") is facing the situation faced by so many creditors -the non-payment of outstanding balances owed to the City. Based on our conversation with the City Attorney and the City Manager, it is our understanding that one of the City's primary azeas of concern is the non-payment of assessments made by the City- against property owners for the maintenance of property, including but not limited to the mowing of weeds and the demolition of unsafe structures, and the ongoing problems caused by repeat offenders of the City's health and safety ordinances. Offerman & King, L.L.P. ("O&K") specializes in serving the needs of creditors throughout the State of Texas, and our firm stands ready and willing to assist the City in improving collection rates through the use of processes proven successful in collecting traditional accounts receivable and in improving the deterrent effect of existing policies and procedures to reduce the number and amount of such assessments. Consulting Services Although a weed or demolition assessment is a little different from the typical account receivable, it is fair to say that giving these assessments the time and attention traditionally devoted to the collection of outstanding accounts receivable will increase collection rates for the City and will defer others from creating the problems that lead to such assessments. The first step in increasing collection rates ofunpaid assessments and increasing the deterrent effect of the City's policies and procedures should be a thorough review of the City's existing policies and procedures, and in that regard, O&K proposes to conduct a study of the City's existing policies and procedures with an emphasis on identifying: 1. Areas where improved communications between departments will eliminate delays in the enforcement/collectionpmcess; 2. Areas where improved training will eliminate delays in the enforcement/collection process; 3. Areas where the application of additional resources will eliminate delays in the enforcemenbcollection process; 4. Areas where missed opportunities in the enforcement/collection process can be improved to increase the speed and efficiency of the enforcement/collection process. The next step in the process of streamlinine the City's enforcemendcollection process will be the development of an overall strategy to address the identified azeas of potential improvement. In that regard, O&K proposes to develop a set of recommendations to: I. Improve communications amongst the City's departments and personnel; 2. Improve communications between the City and legal counsel representing the City in tax suits; 3. Improve communications between the City and property owners against whom assessments have been made; 4. Create standardized guidelines to quickly identify and implement the proper course of action for individual accounts, including the collection of money judgments entered in favor of the City. 5. Develop a set of standardized forms far the internal use of the City in collecting unpaid assessments; 6. Create repayment plans to assist property owners in resolving delinquent assessments; and 7. Create beneficial working relationships with outside organizations to facilitate the collection of delinquent accounts. O&K proposes to conduct the aforementioned study and to develop the aforementioned recommendations and to present such findings and recommendations to the City on or about June 2, 2009. O&K proposes to chazge the City a fee of $175.00 per hour for such services, not to exceed $10,000.00. Conclusion O&K has assisted creditors throughout the State of Texas in collection millions of dollars in unpaid debts, and we stand ready and willing to assist the City of Port Arthur in identifying ways and developing processes to improve collection rates on unpaid assessments We would welcome the opportunity to address any questions the City may have in this regard and look forward to hearing from you.