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HomeMy WebLinkAboutResolution No. 2011-011CITY OF THE COLONY, TEXAS RESOLUTION NO. 11- ()I I A RESOLUTION OF THE CITY OF THE COLONY, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF THE COLONY AND MCCREARY, VESELKA, BRAGG & ALLEN, P.C. FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES FOR THE CITY FOR 2011-2012 FISCAL YEAR; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED 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 and empowered to execute a contract with McCreary, Veselka, Bragg & Allen, P.C. for the collection of property taxes for fiscal year 2011-2012. Section 2, That The Colony has previously entered into an Interlocal Agreement with Denton County pursuant to the State Interlocal Cooperation Act, V.T.C.A. Government Code, Chapter 794, to enter into joint contracts and agreements for the performance of governmental functions and services. Section 3, That since McCreary, Veselka, Bragg & Allen, P.C. is selected to represent Denton County in its delinquent tax collection service, The Colony is hereby authorized to enter into a contract with McCreary, Veselka, Bragg & Allen, P.C. for collecting delinquent property taxes through such interlocal agreement. Section 4. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED by the City Council of the City of The Colony, Texas this 15th day of February, 2011. Yoe McC/ourry, Mayor City of the Colony, Texas A E T: hristie Wilson, TRMC, City Secretary t -5 CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES 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 & ALLEN, P.C. (The Firm), 700 Jeffrey Way, Suite 100, P.O. Box 1269, Round Rock, Texas 78680. 1. 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 within 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 1St of the year in which the taxes become delinquent. B. 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. Page 1 of 2 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 or its designated tax collector shall pay fees due The Firm monthly by check. VII. This contract is drawn to cover a period of one (1) year beginning April 1, 2011, and ending March 31, 2012. Thereafter, The City shall have the option to renew this contract for four (4) additional one year terms, the first term beginning April 1, 2012 and ending March 31, 2013; the second term beginning April 1, 2013 and ending March 31, 2014; the third term beginning April 1, 2014 and ending March 31, 2015; and the fourth term beginning April 1, 2015 and ending March 31, 2016. 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 l may of , 2011. CITY OF THE COLONY, TEXAS By: Mc ARY, VESELKA, BRAGG & ALLEN, P.C. Attorneys at Law 700 Jeffrey Way, Suite 100 Round Rock, Texas 78665 Gilbert T. Bragg Managing Partner, Denton Branch Page 2 of 2