06-27-11 Regular Meeting of La Porte City Council

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IV. The Firm further incorporates its written proposal to collect delinquent taxes into this contract and agrees to perform in accordance thereto. All activities performed by the Firm in connection with this contract (i.e. title research and publications costs are at no out of pocket costs to the taxing authority). V. Taxing Authority agrees to pay the Firm as compensation for services rendered hereunder twenty (20 %) percent of the total amount of all delinquent taxes, penalty and interest which are subject to this contract and which are actually collected and paid to the Taxing Authority's Collector of Taxes, when an equal amount of Section 33.07 or 33.08 penalties is recovered from the taxpayer. Other taxes, including current taxes, which are turned over to the Firm by the Taxing Authority's Tax Assessor - Collector because of the necessity of filing claims in Bankruptcy, with other Federal authorities, or for other reasons, shall become subject to the terms of this contract at the time they are turned over to the Firm and the Firm shall be entitled to the appropriate percentage, as set forth above, of any amounts of delinquent taxes, penalties, and interest actually received by the Taxing Authority, and also the appropriate percentage, as set forth above, of current taxes actually received by the Taxing Authority when such percentage is actually recovered from the taxpayer, if collected prior to July 1 st of any tax year. VI. Taxing Authority agrees to furnish to the Firm all data and information in its possession as to the name and address of the taxpayer, the legal description of the property, years and amount of taxes due. Taxing Authority further agrees to update said information by furnishing a list of paid accounts and adjustments to the Tax Roll as necessary. Section 33.48(a) (4) of the Texas Property Tax Code provides: "In addition to other costs authorized by law, a taxing unit is entitled to recover... reasonable expenses that are incurred by the taxing unit in determining the name, identity and location of necessary parties and in procuring necessary legal descriptions of the property on which a delinquent tax is due:..." Attorney agrees to advance on behalf of Taxing Authority such costs and expenses. In consideration of the advancement of such costs and expenses by the Attorney, Taxing Authority assigns its right to recover the same to the extent approved by the Court and /or customarily and usually approved by the Court. Attorney expressly waives any claim against Taxing Authority for uncollected costs or expenses. VII. This Contract shall commence on JULY 1, 2011 and continue in force and effect until JUNE 30, 2014 provided, however, that Taxing Authority shall have the right to terminate this agreement by giving the Firm thirty (30) days written notice of their desire and intention to terminate this agreement; and further provided that the Firm shall have an additional six (6) months to collect or reduce to judgment all tax suits and /or claims filed prior to the date this agreement becomes terminated. On June 30, 2014 this contract, and all of the terms and conditions, shall automatically renew for an additional two (2) year term unless terminated pursuant to this provision by the Taxing Authority in writing delivered to the Firm not less than 60 days prior to the expiration date of the intitial 3 year term. After the renewal this contract, and all of its terms and conditions, shall automatically renew and be effective on a month to month basis until terminated by the other parties hereunder.