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March 11, 2021 City Council Regular Meeting
Title
28. Authorize the City Manager to Execute a Cost Neutral Contract for the Collection of Delinquent Property Taxes from Delinquent Tax Services, Inc. for up to $104,800 (Event No. 4799)
Strategic Priority
Good Government
Description

Recommend approval to renew an annual contract for the collection of delinquent property tax from Delinquent Tax Services, Inc. for up to $104,800 This contract provides for the administration of the process used to issue property liens and conduct delinquent tax sales, which are necessary enforcement actions for the collection of property tax debt.

The contractor performs the following professional services:
•             Initial pursuit of delinquent taxes via standard collection notices
•             Secondary pursuit of delinquent taxes via filing of tax executions and all legally-required notices pertaining to such executions
•             Conduct thorough searches for bankruptcy filings and for all entities with an interest in the property in question
•             Prepare all legal notices, advertisements, and abstracts required throughout the levy process

The collection process will be cost neutral to the City with all costs for processing, materials, postage and services at the expense of the contractor. The costs will be recovered by a flat fee from the taxpayers when delinquent accounts are paid in full to the City. The flat fee is $30.00 per collection with a balance of less than $50.00 and $55.00 per collection with a balance of more than $50.00. For collections of accounts at the levy and tax sale status, fees will be $185.00 (maximum) per collection. Last year, two tax sales were held recovering $1.1 million for the City, of which $42,435 was paid to Delinquent Tax Services, Inc. for services provided in accordance with this agreement. 

This contract was initially bid and awarded in July 2017. This is the third of four renewal options available.

 Delinquent Tax Services, Inc   (Monroe, GA) (D)

(D)  Indicates non-local, non-DBE owned business.

 

Recommendation

Approval

Contact
David Maxwell, Chief Financial Officer
Financial Impact
Cost Neutral Expenditure of $104,800 (See Exhibit 1)
Review Comments
Attachments
Exhibit 1: Funding Verification - Delinquent Property Tax Collections.pdf
Exhibit 2: Purchasing Summary - Delinquent Property Tax Collections.pdf
Exhibit 3: Specifications.pdf
Agenda Plus