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06 - Lien Release AuthorityItem No. 6 TO: Mayor & Council FROM: John Godwin, City Manager SUBJECT: LIEN RELEASE AUTHORITY DATE: June 29, 2018 BACKGROUND: We unfortunately deal with a significant number of abatement liens related to code enforcement cases in which the city must do the work when the owner fails to do so. The city invoices the owner for such work, and then if the owner does not pay, files a lien against the property so we can collect if and when the property sells. STATUS OF ISSUE: When a municipal abatement lien becomes uncollectible because a tax suit has foreclosed it, a need exists to release that lien as soon as is reasonably possible. The attached resolution will authorize the city manager or his/her designee to execute a release of the lien in those instances. BUDGET: NA RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE RELEASE OF LIEN DOCUMENTS WHEREAS, the City of Paris (the "CITY") files liens against real property within the city limits of the City to secure payment for the abatement of nuisances, secured closures, and paving assessments under Texas Health & Safety Code Chapter 342, Texas Local Government Code Chapter 214, and Texas Transportation Code Chapter 313 (a "Lien" or the "Liens"); and WHEREAS, some of these Liens are foreclosed upon, or otherwise made uncollectible, by judgment and sale in delinquent tax suits that the City is a party to; and WHEREAS, it is in the City's best interest that if a Lien has been foreclosed upon, or otherwise made uncollectible, that it be released as soon as is reasonably possible, upon request; NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL THAT: Section 1. Should the City Attorney or the City's delinquent tax collection attorney determine that a Lien has been foreclosed upon or otherwise made uncollectible due to the prosecution of a delinquent tax collection suit, delinquent tax sale, or the re -sale of previously bid -off tax properties, then the City Manager or his designee is hereby authorized to execute a release of that Lien for filing in the deed records of the county in which the real property is located. The City Attorney or the City's delinquent tax collection attorney shall prepare the release of Lien and approve it as to form prior to the City Manager or his designee executing it. Section 2. This Resolution shall take effect immediately from and after its passage in accordance with the provisions of the law. PASSED AND APPROVED this 9th day of July, 2018. CITY OF PARIS, TEXAS BY Dr. Steve Clifford, Mayor ATTEST: APPROVED AS TO FORM: BY BY Janice Ellis, City Secretary Stephanie Harris, City Attorney Resolution: release of liens made uncollectible, b deliniluent tax collections actions, Page 1 of 1