Loading...
HomeMy WebLinkAboutOrdinance No. 01-1293 ORIGINAL Tax Collection May 7, 2001 CITY OF THE COLONY, TEXAS ORDINANCE NO. 0 J ' I ~ t:] AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH MCREARY~ VESELKA~ BRAGG AND ALLEN~ P.C. FOR PROVISION OF DELINQUENT TAX COLLECTION SERVCIES; ATTACHING THE APPROVED FORM OF CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony, Texas is hereby authorized to execute on behalf of the City a contract with McCrearv, Veselka, Bragg and Allen, P.C. for the provision of delinquent tax collection services. The approved form of contract is attached hereto as Exhibit "A", and made a part hereof for such purposes. SECTION 2. This Ordinance shall take effect immediately from and after its passage by the City Council of the City of The Colony, Texas. DULY PASSED AND APPROVED by the City Council of the City of The Colony, Texas this 7th day of May 2001. William W. Manning, Mayor ATTEST: Pamela J. Russell, Deputy City Secretary APPROVED AS TO FORM: ~f'~ Hikel, Cit~-- CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THE STATE OF TEXAS § COUNTY OF DENTON § THIS CONTRACT is made and entered into by and between THE CITY OF THE COLONY, TEXAS (The City), acting herein by and through its governing body, and McCreary, Veselka, Bragg and Allen, P.C. (The Firm), 300 E. McKinney Street, Suite B, Denton, Texas 76201. The City agrees to employ and does hereby employ The Firm to enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest owing to The City. Current year taxes which become delinquent within the period of this contract shall become subject to the terms of the contract upon the following conditions: A. Taxes that become delinquent during the term of this contract, that are not delinquent for any prior years, become subject to the terms of this contract on July 1st of the year in which they become delinquent. B. Taxes that become delinquent during the term of this contract, on property that is delinquent for prior years and is the subject of a suit to collect the prior years delinquent taxes, shall become subject to its terms on the first day of delinquency as defined by the Texas Property Tax Code. C. The Firm shall begin collecting current year personal property taxes on March 1 st of the year in which they become delinquent. Notwithstanding the provisions of paragraph VI of this contract, The City shall not owe The Firm a fee on the current year delinquent personal property taxes collected between March 1 st and June 30th unless attorney's fees are collected pursuant to Section 33.48 of the Texas Property Tax Code. II. The City agrees to furnish all necessary delinquent tax information to The Firm on all property within the boundaries of The City. The City hereby authorizes The Firm to determine the name, identity and location of necessary parties and to procure necessary legal descriptions of property and hereby assigns to The Firm the right to recover the costs of obtaining such information. III. The Firm is to advise The City of errors, double assessments or other discrepancies coming under observation during the progress of the work. IV. The Firm is to intervene on behalf of The City in all suits for ad valorem taxes hereafter filed by any other taxing unit on property located within its boundaries. Vo The Firm agrees to make delinquent tax collection progress reports to The City on a monthly basis. VI. The City has previously adopted and does hereby reaffirm the adoption of an additional penalty in the amount of Fifteen Per Cent (15%) pursuant to Section 33.07 of the Property Tax Code. The City agrees to pay The Firm, for services rendered, an amount equal to the amount of this penalty actually collected by The City's Tax Collector. The City shall pay fees due The Firm monthly by check. VII. This contract is drawn to cover an initial term of one (1) year beginning April 1, 2001, and ending March 31, 2002. Thereafter, The City shall have the option to renew this contract for four (4) additional one year terms, the first term beginning April 1, 2002 and ending March 31,2003; the second term beginning April 1, 2003 and ending March 31, 2004; the third term beginning April 1,2004 and ending March 31, 2005; and the fourth term beginning April 1, 2005 and ending March 31, 2006. In the event The City chooses the exercise its option to renew, this contract shall continue in full force and effect under the same terms and conditions during the term of such renewal. Each party shall have the right to review or terminate this contract by giving thirty (30) days written notice of such intention to the other party. Upon termination of this contract, The Firm shall have an additional six (6) months to reduce to judgment or sale all tax collection lawsuits filed, and collect all bankruptcy claims filed prior to the termination of this contract and shall have the exclusive right to compensation of fees earned due to these suits and bankruptcy claims during this six (6) month period. In consideration of the terms and compensation herein stated, The Firm hereby accepts said employment and undertakes the performance of this contract as above written. · ' VIII. This contract is executed on behalf of The City by the presiding officer of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes. WITNESS the signatures of all parties hereto in duplicate originals this the ~'~ day of x~/~1~ .... A.D. 2001, The Colony, Texas. CITYOF THECOLONY, TEXAS ~- McCREARY, VESELKA, BRAGG AND ALLEN, P.C. Attorneys at Law Gate Way Center 5929 Balcones Drive P.O. Box 26990 Austin, Texas 78755 ManagingPartner DentonBranchOffice