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Ordinance No. 9,568ORDINANCE NO. 9568 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INTERLOCAL CONTRACT FOR PROPERTY TAX COLLECTION SERVICES WITH THE GOOSE CREEK CONSOLIDATED INDEPENDENT SCHOOL DISTRICT, FOR THE OUTSOURCING OF THE CITY'S TAX COLLECTION OPERATIONS BEGINNING TAX YEAR 2003; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby approves an Interlocal Contract for Property Tax Collection Services with the Goose Creek Consolidated Independent School District and authorizes the City Manager and the City Clerk of the City of Baytown to execute and attest to said agreement. A copy of the agreement is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 22 "d day of May, 2003. PETE C. ALFARO, Mayor ATTEST: ll� G WW IT- TH, City Clerk APPROVED AS TO FORM: �1 ACIO RAMIREZ, SR., i Attorney FAKarcn \Files \City Council\ Ordinances\ OutsourcingTaxlnterloca lAgreement.doc ® STATE OF TEXAS . § § COUNTIES OF HARRIS § AND CHAMBERS § INTERLOCAL CONTRACT FOR PROPERTY TAX COLLECTION SERVICES On this the _ day of , 2003, Goose Creek Consolidated Independent School District, located in Harris and Chambers Counties Texas, hereafter called the "SCHOOL DISTRICT," and the City of Baytown located in Harris and Chambers Counties, Texas, hereinafter called the "TAXING UNIT," enter into the following agreement pursuant to the authority granted by Sections 6.23 and 6.24 of the Texas Tax Code and Chapter 791 of the Texas Government Code. WITNES SETH WHEREAS, the SCHOOL DISTRICT and the TAXING UNIT are local political subdivisions established and existing under the constitution and laws of the State of Texas and are governed by duly elected boards who are authorized to enter into interlocal agreements; and WHEREAS, the TAXING UNIT and the SCHOOL DISTRICT, the parties to this agreement, wish to consolidate the assessment and collection of property taxes under one agency, the SCHOOL DISTRICT, and the parties enter this Interlocal Contract for Property Tax Collection Services (this "Agreement ") to eliminate duplication of the existing systems and to promote governmental efficiency and economy; NOW THEREFORE, the parties do hereby agree as follows: I. TERM The initial term of this Agreement shall be from May 22, 2003 to September 30, 2004, and shall automatically renew thereafter for one -year terms, commencing on October I" of each year unless either party terminates this Agreement by providing the other party written notice of termination. Notice of termination must be provided on or before May 1 of the year prior to the date in which said termination is effective. Such notice shall be in writing and directed to the presiding officer of the governing body of the other party. Such termination shall be effective on October 1 of the year after which such notice is provided. Upon termination, the TAXING UNIT shall be liable for the remaining payments for the year of termination and the SCHOOL DISTRICT shall be responsible for providing the services required under this Agreement until such termination date. Upon termination, the SCHOOL DISTRICT shall provide to the TAXIING UNIT without charge copies of the TAXING UNIT's current and delinquent tax records in a tab delineated flat file format and other formats, as designated by the TAXING ® UNIT. E=ff A • H. SERVICES TO BE PERFORMED 101 The SCHOOL DISTRICT agrees to assess and collect the property taxes owing to the TAXING UNIT. 2.02 For each year that this Agreement is in effect, the SCHOOL DISTRICT shall perform all responsibilities required by law of the TAXING UNIT's Tax Assessor and Collector, including, but not limited to, the following: submission of the tax appraisal roll to the governing body of the TAXING UNIT; calculation of tax; preparation of current and delinquent tax rolls; proration of taxes; correction of tax rolls; collection of current and delinquent taxes; issuance of tax refunds; issuance of tax certificates; remittance of funds collected to the TAXING UNIT's depository; assist the TAXING UNIT in matters dealing with the tax roll and the Central Appraisal District, and furnish the TAXING UNIT collection reports as required by law as well as other reports required by the TAXING UNIT, including, but not limited to, reports concerning assessed values, corrections /supplements, collections, delinquent accounts, and top ten taxpayers. 2.03 The SCHOOL DISTRICT agrees to prepare current and delinquent tax statements, individual or consolidated, for each taxpayer within the TAXIING UNIT'S jurisdiction beginning with the 2003 tax statement. The SCHOOL DISTRICT shall mail said tax statements to each taxpayer or authorized agent for property within the TAXING UNIT in accordance with the Texas Property Tax Code. 2.04 The SCHOOL DISTRICT on behalf of the TAXING UNIT shall receive information from the appraisal districts for the purposes of the certified appraisal roll and monthly changes thereto and provide tax roll and payment data to mortgage companies, property owners and tax representatives 2.05 The SCHOOL DISTRICT shall be responsible for preparing and publishing all notices that are required for setting the TAXING UNIT'S tax rate. The TAXING UNIT expressly agrees to set and deliver notice of its tax rate to the SCHOOL DISTRICT, no later than November 1 of each year. If delivery of said notice is after November 1, the TAXING UNIT will pay to the SCHOOL DISTRICT such actual additional costs, which are actually incurred by the SCHOOL DISTRICT as a result of such late notice in fulfilling its obligations under this Agreement. Such payment shall be due within 30 days after the TAXING UNIT receives and approves an invoice from the SCHOOL DISTRICT detailing the SCHOOL DISTRICT'S actual expense directly attributable to the TAXING UNIT'S late submission. 2.06 The TAXING UNIT hereby designates the Tax Assessor - Collector of the SCHOOL DISTRICT as the person responsible for calculating the effective and rollback tax rates for the TAXING UNIT as required by Section of 26.04 of the Texas Tax Code. The TAXING UNIT shall provide the SCHOOL DISTRICT with the amount needed to pay principal and interest on debt and the amount needed to pay any contractual obligations for debt issued by ® the TAXING UNIT on behalf of another political subdivision, which amounts are required by law for calculation of the effective tax rate. The TAXING UNIT shall also furnish the SCHOOL DISTRICT with the estimated fund balances required to be published with the effective tax rate. FA • 2.07 The SCHOOL DISTRICT shall at all times maintain the TAXING UNIT'S tax roll on an appropriate computer system in the same manner and form as the SCHOOL DISTRICT's tax roll is maintained. The SCHOOL DISTRICT shall, at the TAXING UNIT'S option, provide on -line computer access at multiple sites on the TAXING UNIT's premises at the TAXING UNIT's expense and on the TAXING UNIT's collection attorney's premises at the TAXING UNIT's collection attorney's expense. 2.08 The SCHOOL DISTRICT shall provide values of all land and all other tangible property, real, personal or mixed, in all TAXING UNIT's industrial districts, including all amendments thereto and those created after the effective date hereof. LH. REMITTANCE OF FUNDS COLLECTED 3.01 The SCHOOL DISTRICT agrees to receive and post on a timely basis all tax payments, depositing such in the TAXING UNIT's depository in accordance with this article. 3.02 Any partial tax payments submitted to the SCHOOL DISTRICT for payment of taxes on any property located within the TAXING UNIT shall be applied on a pro rata basis between the Taxing Unit and other taxing entities in which the property lies and whose taxes are collected by the SCHOOL DISTRICT. The only exception shall be if the taxing entity or tax year to be credited with the payment on other than a pro rata basis is specified in accordance with the law or by the taxpayer in writing. 3.03 The SCHOOL DISTRICT agrees to electronically transfer to TAXING UNIT the taxes, penalties and interest collected by deposit into a depository selected by TAXING UNIT. Such payments shall be made when a total of $10,000.00 is collected, but not more often than once a day or less often than once a week during the entire collection year. A report of each deposit will be completed to show the amount and distribution of monies deposited. This report will be forwarded to TAXING UNIT weekly during the months from December to February and immediately after the close of month for all other months. :ekta The SCHOOL DISTRICT shall give bond conditioned on the faithful performance of its duties as Assessor and Collector of the TAXING UNIT. The bond will be payable to and shall be approved by the TAXING UNIT in an amount determined by the governing body of the TAXING UNIT. The TAXING UNIT shall pay the costs of such bond in addition to the payment of collection fees set out herein. k • V. ACCOUNTING 5.01 The SCHOOL DISTRICT shall provide a monthly and an annual accounting of all funds collected and payments received from the TAXING UNIT. A copy of the accounting report shall be provided to the TAXING UNIT at no additional cost. 5.02 The SCHOOL DISTRICT shall make available to the TAXING UNIT all records of funds collected and payments received from the TAXING UNIT. Such records shall be made available to the TAXING UNIT or its auditor upon request at no additional charge. 5.03 The SCHOOL DISTRICT shall provide make available to the TAXING UNIT all records which relate in any way to the initial one -time set -up fee assessed in Section 6.01 and any increase in the per account charge as authorized by Section 6.03. A copy of the records shall be provided to the TAXING UNIT at no additional cost. VI. PAYMENT 6.01 In consideration of the services to be provided to the TAXING UNIT by the SCHOOL DISTRICT pursuant to this Agreement, the TAXING UNIT will pay the SCHOOL DISTRICT: 9 a one -time initial start-up fee, based upon the set -up costs actually incurred by the SCHOOL DISTRICT to perform services required in this Agreement, not to exceed TEN THOUSAND AND NO/ 100 DOLLARS ($10,000); and. ➢ TWO AND NO /100 DOLLARS ($2.00) per annum per TAXING UNIT property account which is within the current boundaries of the SCHOOL DISTRICT, which amount the parties agree does not exceed the SCHOOL DISTRICT's actual cost incurred in performing the services required under this Agreement. 6.02 The SCHOOL DISTRICT shall provide the TAXING UNIT an invoice for the one -time initial start-up fee, which details each expenditure incurred by the SCHOOL DISTRICT for which the SCHOOL DISTRICT seeks reimbursement from the TAXING UNIT. The TAXING UNIT shall pay such invoice within thirty (30) days of receipt and approval of the same. 6.03 The SCHOOL DISTRICT shall have the option of increasing the per property account charge every year that the SCHOOL DISTRICT and the TAXING UNIT have contracted for tax collection services under the terms of this Agreement if the costs of collection increase provided that at all times during the term of this Agreement, (1) the per property account charge shall never exceed the SCHOOL DISTRICT's actual cost incurred in performing the services required under this Agreement, (ii) the per property account charge shall not exceed the per property account charge assessed to other taxing entities for which the SCHOOL DISTRICT rd • performs property tax collection services, and (iii) the per property account charge shall never increase more than $0.10 per year and not more than $0.25 over a three -year period. • 6.04 In the event such collection costs increase, the SCHOOL DISTRICT shall furnish the TAXING UNIT the calculations reflecting such increases thirty (30) days prior to May 1 in the year in which such increases are to take effect. 6.05 If the TAXING UNIT does not object to such increases by May 1 of such year, the increases shall go into effect on October 1 following such notice. This Agreement shall be modified by a signed written agreement reflecting such increase in charges. 6.06 The payments for services rendered by the SCHOOL DISTRICT under this Agreement shall be billed to the TAXING UNIT annually at the tax year -end. The TAXING UNIT agrees to pay for such services within thirty (30) days of receipt of such billing. 6.07 Further, if the TAXING UNIT does not have sufficient sums of money in its collected tax account at the SCHOOL DISTRICT to cover its share of taxes refunded, TAXING UNIT agrees to reimburse the SCHOOL DISTRICT for the TAXIING UNIT's share of the tax refunds within thirty (30) days of receipt of a notice this such refund has been paid. 6.08 Pursuant to Section 791.011 of the Texas Government Code, the TAXING UNIT shall pay all sums required herein from its then current revenues. VII. ADMINISTATIVE PROVISIONS 7.01 The SCHOOL DISTRICT shall retain all fees charged for the issuance of tax certificates and other charges made by the SCHOOL DISTRICT for collection of taxes. All such fees and charges shall not exceed the actual cost of the service provided and shall not exceed the charge assessed by the SCHOOL DISTRICT for the same services to its taxpayers 7.02 The TAXING UNIT may authorize the SCHOOL DISTRICT to contract with an attorney or law firm recommended by the SCHOOL DISTRICT for the collection of delinquent taxes due the TAXING UNIT or may retain its own attorney or law firm for the collection of delinquent taxes due the TAXING UNIT. The SCHOOL DISTRICT is authorized to forward from the funds collected under this Agreement, all sums payable to the TAXING UNIT'S collection attorney or law firm for the collection of the TAXING UNIT's delinquent taxes. 7.03 The TAXING UNIT shall provide to the SCHOOL DISTRICT, without charge, copies of all records necessary for performance by the SCHOOL DISTRICT under this Agreement, including, but not limited to, hard copies and computer files (if available) containing all current and delinquent tax records for the TAXING UNIT. Such records shall be kept in accordance with all applicable record retention policies. 5 VIII. MISCELLANEOUS PROVISIONS 8.01 This instrument contains the entire Agreement between the parties relating to the rights hereunder granted and the obligations herein assumed. Any oral representation or modifications concerning this Agreement shall be of no force or effect, excepting a subsequent modification in writing signed by all parties hereto. 8.02 The SCHOOL DISTRICT and the TAXING UNIT shall comply with all rules, regulations, and laws of the United States of America, the State of Texas, and all laws, regulations, and ordinances of the TAXING UNIT of Baytown as they now exist or may hereafter be enacted or amended. 8.03 The SCHOOL DISTRICT may not sell or assign all or part interest in activities to another party or parties without the express written approval of the City Manager of such sale or assignment. 8.04 Except as otherwise provided herein, all notices required to be given hereunder shall be given in writing either by telecopier, overnight, or facsimile transmission, certified or registered mail at the respective addresses of the parties set forth herein or at such other address as may be designated in writing by either party. Notice given by mail shall be deemed given three (3) days after the date of mailing thereof to the following addresses: DISTRICT Goose Creek Consolidated Independent School District Attn: Superintendent for Business Services P.O. Box 30 Baytown, TX 77522 Fax No. (281) 420 -4854 CITY City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Fax No. (281) 420 -6586 8.05 Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance with any other obligation hereunder to exercise any right or remedy occurring as a result of any future default or failure of performance. The rights and remedies contained in this Agreement shall not be exclusive but shall be cumulative of all other rights and remedies, now or hereinafter existing, whether by statue, at law, or in equity; ® provided that the parties shall not terminate this Agreement except in accordance with the provisions hereof. 8.06 This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City of Baytown, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. 8.07 All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. 8.08 Notwithstanding anything to the contrary contained in this Agreement, the TAXING UNIT and the SCHOOL DISTRICT hereby agree that no claim or dispute between the TAXING UNIT and the SCHOOL DISTRICT arising out of or relating to this Agreement shall be decided by any arbitration proceeding including, without limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. Sections 1 -14), or any applicable State arbitration statute, including, but not limited to, the Texas General Arbitration Act, provided that in the event that the TAXING UNIT is subjected to an arbitration proceeding notwithstanding this provision, the SCHOOL DISTRICT consents to be joined in the arbitration proceeding if the SCHOOL DISTRICT's presence is required or requested by the TAXING UNIT for complete relief to be recorded in the arbitration proceeding. 8.09 This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the SCHOOL DISTRICT and the TAXING UNIT only. 8.10 The article and section headings are used in this Agreement for convenience and reference purposes only and are not intended to define, limit or describe the scope or intent of any provision of this Agreement and shall have no meaning or effect upon its interpretation 8.11 In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 8.12 The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. 8.13 The SCHOOL DISTRICT is engaged as an independent contractor, and all of the services provided for herein shall be accomplished by the SCHOOL DISTRICT in such capacity. The TAXING UNITY shall have no control or supervisory powers as to the detailed method or manner of the SCHOOL DISTRICT's performance of this Agreement. All personnel supplied or used by the SCHOOL DISTRICT shall be deemed employees or subcontractors of the SCHOOL DISTRICT and will not be considered employees, agents or subcontractors of the TAXING UNIT for any purpose whatsoever. The SCHOOL DISTRICT shall be solely responsible for the compensation of all such personnel for the withholding of income, social security and other payroll taxes and for the coverage of all workers' compensation benefits. 7 • 8.14 The officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the party he /she represents. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies, each of which shall be deemed to be an original, but all of which shall constitute but one and the same Agreement on the day of 2003, the date of execution by the City Manager of the City of Baytown. GOOSE CREEK CONSOLIDATED INDEPENDENT SCHOOL DISTRICT DR. BARBARA SULTIS Superintendent of Schools Date: ATTEST: NOEMI GARCIA Board Secretary Date: CITY OF BAYTOWN GARY JACKSON City Manager Date: ATTEST: GARY W. SMITH City Clerk Date: IsP:\Karen\Piles\Contracts \Outsourcing Tax Services \Tax$ervicesContractFINAL.doe K.