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Council approves contingency lien-collection contract and adds 20% collection fee to code
Summary
The council approved a contingency contract with Purdue, Brandon, Collins & Mott LLP to pursue delinquent municipal liens and adopted an ordinance adding a 20% collection fee to liens and demolition costs; staff said the program will use Texas Tax Code Sec. 33.91 for expedited sales of vacant, abandoned properties.
The Nacogdoches City Council on Nov. 19 approved a contingency contract with Purdue, Brandon, Collins & Mott LLP to assist in collecting delinquent municipal liens and adopted an ordinance adding a 20% collection fee to liens and to costs assessed after city demolitions.
City Attorney Jerry Baker described the contract as a contingency fee arrangement that would add a 20% collection fee to outstanding liens to compensate the firm for collection services. "To defray the cost of collections, the city shall impose an additional collection fee of 20% added on all debts and accounts receivable from the expenses incurred to bring any property in compliance with city code once the lien has been filed of record," Baker said while presenting the ordinance.
Danny Barrett of Purdue Brandon told council the firm uses Texas Tax Code Sec. 33.91 to group qualifying vacant and abandoned properties (12 months vacant, three years delinquent taxes plus a municipal lien) for expedited sale as a redevelopment tool. Barrett said the firm cross-references the delinquent tax roll with the city—iled liens, prepares a searchable database for staff, performs title searches and runs the required notices and auctions. "We take advantage of that 33 91," he said, describing how those sales can move otherwise dormant properties back into productive use.
Council members asked about safeguards for occupied homes, code-enforcement capacity to verify vacancy, outreach to heirs and how trust properties would be handled after sales that do not meet the minimum bid. Staff and the presenter said the process requires verification of vacancy and that homesteads are not targeted: properties must be vacant for at least 12 months to be eligible.
Councilmember (speaker 5) moved to approve the contract; Councilmember (speaker 10) seconded. The motion passed unanimously. Later, council voted unanimously to adopt the ordinance amending Chapters 34 and 14 to include the fee.
City staff said the collection program and the ordinance are intended to reduce recurring code-enforcement costs by recovering expenses or returning properties to the tax roll; any specific property actions will follow required notice and title searches.
