1993-115E:\WPDOCS\ORD\TAX.O
ORDINANCE NO. 3 ~ 116
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR THE
COLLECTION OF DELINQUENT TAXES; PROVIDING FOR THE EXPENDITURE OF
FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the Mayor is authorized to execute a contract
for the collection of delinquent taxes with McCreary, Veselka,
Bragg and Allen, P.C. and Hayes, Coffey and Berry, P.C., a copy of
which is attached hereto and incorporated with reference herein.
SECTION II. That the Mayor is authorized to expend funds for
the above referenced professional services to the firms of
McCreary, Veselka, Bragg and Allen, P.C. and Hayes, Coffey and
Berry, P.C.
SECTION III. That this ordinance shall become effective immed-
iately upon its passage and approval.
PASSED AND APPROVED this the Z!L"__`day of IlAt~L 1993.
APPROVED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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
DENTON (The City), acting herein by and through its governing body, and
McCreary, Veselka, Bragg and Allen, P. C. and Hayes, Coffey & Berry, P. C. (for
the purpose of this contract only hereinafter jointly referred to as The Firm), 5929
Balcones Drive, P. O. Box 26990, Austin, Texas, 78755.
I.
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 lst 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
1st 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.
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III.
The Firm shall advise the City of errors, double assessments or other
discrepancies coming under observation during the progress of the work.
IV.
The Firm shall 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 monthly and quarterly in a format containing information as requested by The
City's Executive Director of Finance.
VI.
The City agrees to pay The Firm, for services rendered, Fifteen Per Cent
(15%) of all delinquent taxes, penalty and interest collected by The City for years
covered by this contract. The penalty imposed pursuant to Section 33.07 of the
Property Tax Code is not subject to this contractual fee. 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.
The Firm shall undertake the collection of delinquent accounts for paving
assessment liens, substandard housing demolition liens and weed liens. The
collection of these accounts shall be undertaken on the basis of attorney's fees
assessed to and collected from the debtors. The City agrees to pay to The Firm
as compensation all amounts received as attorney's fees on delinquent accounts for
paving assessment liens, substandard housing demolition liens, and weed liens.
VIII.
The Firm agrees not to represent any client who has an adversary position
with the City of Denton for the duration of this contract.
IX.
The City agrees to allow the Firm to use its tax office computer terminals
and to provide a working area for use by Firm employees. The City also agrees to
provide The Firm with computer tapes and tax file access upon request by The
Firm. The Firm agrees to reimburse The City for use of the working area, its
computer terminals, computer tapes, and tax file access. The payment by The
Firm for the above stated reimbursement and support services shall be in the
amount of Seven Hundred Fifty ($750.00) dollars each month.
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X.
This contract is drawn to cover a period of two (2) years beginning July 1,
1993, and ending June 30, 1995. Should The City give written notice to The Firm
of its desire to continue this contract, this contract shall continue in full force and
effect from month to month at the option of The City, unless either party delivers
written notice to the other party of its intent to terminate this contract at least
thirty (30) days prior to the date of the intended termination. The Firm shall have
an additional six months to reduce to judgment and sale all tax collection lawsuits
filed and collect all bankruptcy claims filed prior to the termination date and shall
have the exclusive right to compensation of fees earned due to these suits during
this six 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. The City shall have the right to sooner terminate
this contract for cause, giving thirty (30) days' written notice of such intention, with
a statement of the cause or reasons for such termination, after giving The Firm a
reasonable opportunity of explaining or rectifying the same. The City shall be the
sole judge of the existence of cause for the purpose of this termination provision.
In case of such termination, The Firm shall be entitled to receive and retain all
compensation due up to the date of said termination.
XI.
The Firm agrees to collect, between July 1, 1993 and June 30, 1994, not less
than sixty percent (60%) of the total dollar value of the base tax of the 1992
delinquency existing on July 1, 1993. The Firm agrees to collect, between July 1,
1994 and June 30, 1995, not less than sixty percent (60%) of the total dollar value
of the base tax of the 1993 delinquency existing on July 1, 1994. If The Firm does
not collect the above referenced amount each year, it shall provide The City with
legal services, programming and computer services, or data processing equipment
with a value not less than Seven Thousand Five Hundred Dollars ($7,500.00) or,
at the option of The City, it shall pay The City the sum of Seven Thousand Five
Hundred Dollars ($7,500.00) on or before August 15, of the year it fails to collect
the minimum amount' specified herein.
XII.
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.
etlay TNESS a signatures of all parties hereto in triplicate originals this the
Aof YZ" A.D. 1993, Denton County, Texas.
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THE CITY OF DENTON
BY
ATTEST:
e nifer alters, City Secretary
HAYES, COFFEY & BERRY, P.C
Attorneys at Law
101 S. Locust, Suite 601
Denton, Texas 76201
B Y~i~ e-.-
Richard Hayes, Pr ident
APPROVED AS TO LEGAL FORM
Debra A. Drayovitch, y Attorney
McCREARY, VESELKA, BRAGG
AND ALLEN, P. C.
Attorneys at Law
Gate Way Center
5929 Balcones Drive
P. O. Box 26990
Austin, Texas 78755
BY ~G~/r✓'
Gilbert T. Bragg
Managing Partner
Denton Branch Office
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