HomeMy WebLinkAboutResolution No. 06-021
RESOLUTION NO. 06- {) ~ ,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY,
TEXAS, APPROVING A CONTRACT BETWEEN THE CITY OF THE COLONY
AND MCCREARY, VESELKA, BRAGG AND ALLEN, PoCo TO PROVIDE
LEGAL SERVICES RELATED TO THE COLLECTION OF DELINQUENT
PROPERTY TAXES; A COPY OF WHICH IS ATTACHED HERETO AND
INCROPORATED HEREIN AS EXHIBIT "A"; AUTHORIZING THE CITY
MANAGER TO EXECUTE THE CONTRACT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City has determined that it is in the best interest of the City to
enter into a Contract with McCreary, Veselka, Bragg and Allen, P.C. (MVBA), which is
attached hereto and incorporated herein by reference as Exhibit "A, " under the terms
and conditions provided therein.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS THAT:
SECTION 1. The Contract, which is attached and incorporated hereto as Exhibit
"A", having been reviewed by the City Council of the City of The Colony, Texas, and
found to be acceptable and in the best interest of the City and its citizens, be, and the
same is hereby, in all things approved, and the City Manager is hereby authorized to
execute the Agreement on behalf of the City of The Colony, Texas.
SECTION 2. That this Resolution shall take effect immediately from and after its
adoption and it is so resolved.
PASSED, APPROVED and EFFECTIVE this 20th day of March, 20060
J n Dillard, Mayor
ty of The Colony, Texas
Attest: f)
{!l~fi-{ LJJ~
Christie Wilson, City Secretary
y
CONTRACT FOR THE COLLECTION OF
DELINQUENT PROPERTY TAXES
COUNTY OF DENTON
s
s
s
STATE OF TEXAS
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
& ALLEN, P.C. (The Firm), 5929 Balcones Drive, Suite 200, Austin, Texas 78731.
I.
The City agrees to employ and does hereby employ The Firm to enforce by suit or otherwise
the collection of all delinquent property taxes, penalty and interest owing to The City. Current year
property taxes which become delinquent with in the period of this contract shall become subject to the
terms of the contract upon the following conditions:
A. Taxes on real property 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 1 sl of the
year in which the taxes become delinquent.
S. Taxes on tangible personal property that become delinquent during the term of this contract
become subject to the terms of this contract if not paid within sixty days of the date on which
the taxes become delinquent.
C. Taxes on property that become delinquent during the term of this contract that are delinquent
for prior years and are the subject of a suit to collect the prior years' delinquent taxes become
subject to the terms of this contract on the first day of delinquency as defined by 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.
V.
The Firm agrees to make delinquent tax collection progress reports to The City on request.
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VI.
The City agrees to pay The Firm, for services rendered, a fee of Twenty Per Cent (20%) of all
delinquent taxes, penalty and interest collected by The City for years covered by this contract. The
penalty imposed pursuant to Sections 33.07, 33.08 and 33.11 of the Texas Property Tax Code is not
subject to this contractual fee. The City has previously adopted and does hereby reaffirm the adoption
of the additional penalty provided by Sections 33.07, 33.08 and 33.11 of the Texas Property Tax Code.
All fees provided for in this contract shall become the property of The Firm at the time payment of
taxes, penalty and interest is made to The City. The City shall pay fees due The Firm monthly by
check.
VII.
This contract is drawn to cover and initial term of one (1) year beginning April 1, 2006, and
ending March 31, 2007. Thereafter, The City shall have the option to renew this contract for four (4)
additional one year terms, the first term beginning April 1, 2007 and ending March 31, 2008; the second
term beginning April 1, 2008 and ending March 31, 2009; the third term beginning April 1, 2009 and
ending March 31, 2010; and the fourth term beginning April 1, 2010 and ending March 31, 2011. In the
event The City chooses to 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. On termination of this contract, The Firm shall have an additional six (6) months after
termination to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy
claims filed prior to the termination date, and provided further that The Firm shall handle to conclusion
all suits in which trial court judgments are obtained during the period of this contract and which are
appealed by any party. In case of such termination, The Firm shall be entitled to receive and retain all
compensation of fees due up to the date of said termination. 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.
The 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~~ay of
March, 2006.
CITY OF THE COLONY, TEXAS
By: Cd~~
C:ity MPuJAG6 R
McCREARY, VESELKA, BRAGG & ALLEN, P .C.
Attorneys at Law
5929 Balcones Drive, Suite 200
:::tin, Te!7~J &
Gilbert T. Bragg
Managing Partner, Denton Branch Of e
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