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1999R05- EXECUTION OF CONTRACT RESOLUTION NO. ff-;!-S RESOLUTION AUTHORIZING EXECUTION OF CONTRACT WITH COUNTY OF GUADALUPE FOR COLLECTION OF AD VALOREM TAXES WHEREAS, the County of Guadalupe is able and willing to collect current and delinquent ad valorem taxes on behalf of City of Schertz at a considerable cost savings over the current collection contract; and WHEREAS, the City of Schertz finds it to be in the public interest to enter into a contract with the County of Guadalupe for collection of ad valorem taxes; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Schertz, that: SECTION 1. The City Manager of the City of Schertz is hereby authorized and directed to enter into a contract with the County of Guadalupe for the collection of the City's current and delinquent ad valorem taxes, that contract to be in the form next hereto as Exhibit A and incorporated herein for all purposes. SECTION 2. The City Manager of the City of Schertz is hereby authorized and directed to cancel all existing contracts for the collection of ad valorem taxes for the City, those contracts including one with the law firm James L. Brister, PLLC, but not limited to those, at the earliest date allowable under those contracts and in the manners prescribed therein. On motion of f; /f JA-ePJAd and seconded by ..::]";E f?rErrJr'A, the foregoing Resolution was adopted by the City Council of the City of Schertz on J11A- y ~ ' 1999. VOTING AYE: {!OUtJe.fLI'1JE/l1.8.&e.5 :;;;e.p,A-ftij f?T.E/J1~;4j 5:uIAJAfL:: y J9,(J.D Ge.EEN pj 11--1.- D . VOTING NAY: ;VotJE. 4~ Mayor ~~J City Secretary - 7 - ~"~~--------"~--""."""-""---"'-'-"'~-'- .' .. ~._,-,,".._..".._-,.,-.-_._.,,~-,_._-----,-~--" EiY\.'D',+ H STATE OF TEXAS COUNTY OF GUADALUPE ~ ~ ~ AGREEMENT FOR ASSESSMENT AND COLLECTION SERVICES This AGREEMENT made and entered into this 4th day of May, 1999, by and between the County of Guadalupe (herein after called "County"), and City of Schertz (hereinafter called "City"), both political subdivisions of the State of Texas, duly organized and existing under the laws of the State of Texas, each acting herein by and through its duly authorized officials, along with the Tax Assessor-Collector of Guadalupe County. I. WITNESSETH: WHEREAS, the parties to this Agreement wish to consolidate the assessment and collection of property taxes into one agency, i.e., the Tax Assessor-Collector of the County of Guadalupe; and; WHEREAS, the parties enter into this Agreement in order to eliminate the duplication of the existing system for collection of taxes and to promote governmental efficiency; and; WHEREAS, the parties enter into this Agreement pursuant to the authority granted by Section 6.22(c), 6.23, 6.24, and 6.30 TEXAS PROPERTY TAX CODE (Vernon 1981). NOW THEREFORE, in consideration of the premises and of the terms, provisions, and mutual promises herein contained, it is mutually agreed as follows: II. PERFORMANCE Performance by the County, of the assessment and collection of each year's property taxes shall commence not earlier than October 1 and shall be completed not later than September 30 of the following tax year unless the County and the City find extension to be necessary. III. SERVICES TO BE PERFORMED (1) The County shall collect the current ad valorem property taxes owing to the City. The County shall also collect, including the enforcement of the collection, the delinquent taxes owing to the City, except as provided in Section VIII herein. The County further agrees to perform for the City all the duties provided by the laws of the State of Texas relating to the assessment and collection of taxes for the City. (2) The County shall perform all the functions set out in the Definitions section of this Agreement. Specifically, the County agrees to prepare consolidated tax statements for each taxpayer. The tax statement shall include taxes owed to all taxing units to which the taxpayer owes taxes and for which the County collects taxes. The County shall mail said tax statements to each taxpayer or authorized agent of property located within the City. (3) The City hereby designates the Tax Assessor-Collector of the County of Guadalupe as its tax assessor and tax collector for all purposes under the Texas Property Tax Code. - 1 - (4) The County shall provide the governing body of the City a copy of the tax roll each year that this Agreement is in effect. (5) The County shall issue tax certificates in accordance with the Texas Tax Code to persons so requesting and shall charge a fee for the issuance of such certificates as provided by the Texas Tax Code. Fees shall be retained by the County. (6) The County shall calculate and furnish to the City, information regarding the (a) effective tax rate, (b) rollback tax rate, and (c) notice and hearing rate within statutory guidelines, then with the City's approval, publish all required notices at the City's expense. (7) The County, at the City's request, shall assist the City in calculating proposed tax levies based on the (a) effective tax rate, (b) Truth in Taxation rollback tax rate, and (c) Notice and Hearing Rate, timely. (8) The County shall complete the State Report of Property Values report and forward copies to the State Comptroller's Office and to the City. IV. PAYMENT A. Amount of Payment The City agrees to pay the County the cost of performing the services specified in this Agreement. The fee for the collection of ad valorem property taxes will be set at $.15 per parcel in Guadalupe County and $.75 per parcel outside Guadalupe County for this year. If the actual collection fees are less, the County agrees to reimburse the City for the difference. Collection fees for all subsequent years will be based on these actual collection costs until such time that the County proposes and the City agrees to a change in the collection fee amount. The County shall initiate a change in the collection fee amount, by written notice to the City, no later than May 1st of each year. Changes in the collection fee must be reasonable based upon increase in operating costs to the County. B. Methods of Payment Subject to acceptance, approval, and execution of this contract between the County and the City, payments for collection services for the 1999-2000 year will be made in a single lump sum payment payable to the County. Payment will be made within a reasonable time period but before the end of October, 1999. All subsequent payments for such collection services will be made in a single lump sum payment within the first month following the beginning of each fiscal year. V . REMITTANCE OF COLLECTION (1) The taxes collected for the City shall be remitted to the City daily, after the proper amounts of payment previously established or taxpayer refunds have been withheld. Taxes collected shall be remitted to the City on the day after they are processed and credited by the County Tax Office, but no later than when the taxes collected for the County have been remitted to the County Treasurer. (2) The taxes collected by the County which are owed to the City shall be remitted to the City's Accounts in the following manner: - 2 - (A) Taxes obliged to the retirement of bonds shall be deposited to the Interest and Sinking (I&S) Fund Account, Schertz Bank & Trust, Account #67512; and, (B) Taxes obliged to the maintenance and operation of the City shall be deposited to the Maintenance and Operations (M&O) Account, Schertz Bank & Trust, Account #51012. The distribution of funds to these accounts will be based on the tax rate set annually by the City. The County retains liability for deposits to the respective accounts. VI. ADMINISTRATIVE PROVISIONS (1) All expenses incurred by the County for the assessment of and collection of taxes shall be recorded and kept on the official records of the County. The City or their representatives which have been so designated in writing are authorized to examine the records to be kept by the County at such reasonable times and intervals as the City deems fit. Such books and records will be kept in the offices of the Guadalupe County Tax Assessor-Collector. (2) If the City requires the County to obtain a surety bond for the Tax Assessor-Collector acting in his/her capacity as Assessor-Collector for the City, the premium for said bond shall be paid in full by the City. VII. MISCELLANEOUS PROVISIONS (1) The City agrees to transfer to the possession and control of the County, without charge, copies of all records necessary for the performance of the duties and responsibilities of the County pursuant to this Agreement. These records shall include all tax records, including tax rolls or records available to the City. (2) The County shall not be liable to the City for any failure to collect taxes nor shall the County Tax Assessor-Collector be liable unless the failure to collect taxes results from some failure to perform the duties imposed by law and by this agreement. (3) Payments for services under this agreement shall be made from current revenues. (4) If the City has not established the tax rate as required by law for that City by the first regularly scheduled meeting of the City in September, then this Agreement becomes voidable by action of the County. The County may then declare this Agreement null and void by written notice from the Tax Assessor-Collector. (5) Authorized refunds to property owners will be deducted from collections and withheld. If funds are not available from collections, a statement will be sent to the City and payment will be made to the County within seven (7) days of notification of funds due. (6) The County shall provide the City with a daily report that will contain the dollar amount that was deposited into the M&O and I&S accounts. (7) The City shall provide the County with the prior ten (10) years of tax rates (M&O) and (I&S) which will enable the County to properly account for prior year taxes collected. - 3 - VIII. DELINQUENT TAXES Pursuant to Sections 6.24 and 6.30 of the Texas Tax Code, the City hereby relinquishes to the County its right to designate and select a delinquent tax attorney to enforce the collection of delinquent taxes for the City. However, in the event the County contemplates a change in the delinquent tax attorney, the City reserves the right to participate in the selection process. IX. DEFINITIONS 1. For the purposes of this Agreement the terms "assessment" and "collection" shall include the following: calculation of tax, preparation of tax rolls, proration of taxes, correction of clerical errors in tax rolls, collection of tax liabilities, issuance of refunds and calculation of an effective tax rate required by Section 26.04 of the Texas Property Tax Code, for the years as provided above. The term "assessment" shall not include those functions defined as "appraisal" by the Texas Property Tax Code. The County shall bear all expenses incurred in performing such services. 2. For the purpose of this Agreement, the term "current taxes" shall include only those taxes legally due and payable without penalty and interest. 3. The term "delinquent taxes" is defmed as any taxes which have not been received by the County on or before January 31 of any given tax year and on which penalty and interest are due. X. REGULATIONS AND LAWS This Agreement shall be subject to all valid rules, regulations and laws applicable thereto passed or promulgated by the United States of America, State of Texas, or any governmental body or agency having lawful jurisdiction or any authorized representative or agency of them. XI. INDEMNITY The County agrees and shall, to the extent allowed by law, indemnify and hold harmless City, its trustees, officers, employees and agents from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attorney's fees, for any acts of malfeasance by the County, its commissioners, officers, employees or agents in the performance of any of the obligations set forth in this Agreement. XII. SOVEREIGN IMMUNITY It is expressly understood and agreed that, in the execution of this Agreement, neither the County nor the City waives or shall be deemed hereby to waive any immunity or defense that would otherwise be available to it against claims arising in the exercise of governmental powers and functions. XIII. TERMINATION This Agreement shall continue in full force and effect from year to year until such time as either party hereto, by written notice to the other, may terminate the same, such termination to be effective on or before the date the City adopts its budget for the following year. XIV. AMENDMENTS Any amendments, alterations, deletions or waiver of the provisions of this Agreement shall be valid only when expressed in writing and agreed to by official action of the governing bodies of both parties, and will be effective only if the amendments, alterations, deletions or waivers do not adversely affect the prompt fulfillment of contract obligations. All amendments concerning or affecting an - 4 - increase in the amount of payment or cost under this Agreement shall be effective only if they are agreed upon on or before July 1 of the year in which they are to become effective. xv. GENERAL PROVISIONS A. Notices Except as otherwise provided in this Agreement all notices required or permitted herein shall be in writing and shall be deemed to be delivered when deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, to the party's office or usual mailing address. B. Parties Bound This Agreement shall be binding upon the parties, their legal representatives, successors in office, and assigns. C. Copies This Agreement is executed in multiple copies, anyone of which or a true copy thereof, shall have the same evidentiary value. D. Integration It is understood and agreed that the entire agreement of the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. E. Severability The provisions of this Agreement are severable. If any paragraph, section, subdivision, sentence, clause or phrase of this Agreement is for any reason held to be contrary to law or contrary to any rule or regulation having the force and effect of law, such decision shall not affect the remaining portions of the Agreement. However, upon the occurrence of such event, either party may terminate this Agreement, forthwith upon the delivery of written notice of termination to the other party. F. Effective Date This Agreement shall be effective as of May 15, 1999. EXECUTED at County Seat at Guadalupe, Texas, on the day and year first written above. - 5 - CITY OF SCHERTZ By: City Manager Printed Name GUADALUPE COUNTY, TEXAS By: Guadalupe County Judge Printed Name ATTEST: Guadalupe County Clerk By: Guadalupe County Attorney By: Guadalupe County, Texas By: Tax Assessor-Collector Guadalupe County Printed Name - 6 - By: ~~ ~~ City Secretary ~bJJ.4 ATJI{)U..s~ Printed Name