Number
001773
Version
Substitute 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing an Amendment to the Collection Services Contract between the City and the Kohn Law Firm.
Analysis
This resolution authorizes an Amendment to the City's January 1, 1997 contract with the Kohn Law Firm ("Kohn") for Collection Services for City Receivables. The Amendment expands the scope of services of the Kohn contract by adding "collection of delinquent City real property taxes from owners whom the City Attorney has determined should be subject to in personam actions in accordance with sec. 304-48-4, Milwaukee Code of Ordinances." It is anticipated that the expanded collection efforts will net substantial additional unanticipated 2001 revenue for the City. Approximately $5,000,000 in delinquent real property taxes attributable to properties on the environmental do-not-acquire list would be turned over to Kohn. Kohn estimates gross collections of $450,000 with net proceeds of $365,000 to the City. The Kohn Firm's fees and expenses for those collection efforts would be netted out from funds collected by the firm. There will be no General Fund fiscal impact because the delinquent tax receivables collected by Kohn are held by the Delinquent Tax Fund created under sec. 304-30 and written off at the time those receivables are transferred to the Fund in exchange for the proceeds of general obligation notes sold to cover revenue deficiencies occasioned by the delinquencies. Collection of these delinquent tax receivables will have a positive budgetary impact in subsequent years since it will reduce the tax levy needed to cover the debt service requirements of the delinquent tax general obligation notes.
Body
Whereas, The City and the Kohn Law Firm entered into a January 1, 1997 Collection Services for Receivables of City of Milwaukee contract (the "Contract"); and
Whereas, The City now desires to expand the scope of services of the Contract to include the collection of delinquent City real property taxes which the City Attorney has determined should be collected through an in personam action against the property owner as provided in sec. 304-48-4, Milwaukee Code of Ordinances; now, therefore, be it
Resolved, That the proper City officers are hereby authorized and directed to execute the Amendment to Collection Services for Receivables of City of Milwaukee Contract attached to this file.
Requestor
Drafter
City Attorney
PBMcD:dms
June 8, 2001
1049-2001-1105
39597