Ordinance No. 14,596ORDINANCE NO. 14,596
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO
ATTEST TO AN INTERLOCAL CONTRACT FOR PROPERTY TAX COLLECTION
SERVICES WITH GOOSE CREEK CONSOLIDATED INDEPENDENT SCHOOL
DISTRICT; AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED
SEVENTY-FIVE THOUSAND TWO HUNDRED AND NO'100 DOLLARS ($75,200.00)
PURSUANT TO SUCH INTERLOCAL AGREEMENT; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
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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 authorizes the City
Mayor to execute and the City Clerk to attest to an Interlocal Contract for Property Tax Collection Services
with Goose Creek Consolidated Independent School District.
Section 2: That the City Council of the City of Baytown authorizes payment to Goose Creek
Consolidated Independent School District in an amount not to exceed SEVENTY-FIVE THOUSAND TWO
HUNDRED AND NO 100 DOLLARS ($75,200.00) for services in accordance with the agreement authorized
in Section 1 hereinabove.
Section 3: That the City Manager is hereby granted general authority to approve a decrease or an
increase in costs by FIFTY THOUSAND AND NO:`100 DOLLARS ($50,000.00) or less, provided that the
amount authorized in Section 2 hereof may not be increased by more than twenty-five percent (25° o).
Section 4: 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 affirma ' vote of the City Council of the City of
Baytown this the 1711, day of November, 2020.
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KAREN L. HORNER, City Attorney
RAKaren Homer\DocumentsTiles City Council Ordinances\2020Wovember 17\GCCISDTaxCollectionServices.doc
Exhibit "A"
INTERLOCAL CONTRACT FOR PROPERTY TAX COLLECTION SERVICES
STATE OF TEXAS §
COUNTY OF HARRIS §
On this the 7th day of December, 2020, Goose Creek Consolidated Independent School
District, located in Harris and Chambers Counties, Texas, hereafter called the "SCHOOL
DISTRICT," and City of Baytown, located in Harris and Chambers Counties, Texas, hereinafter
called the "TAXING UNIT," enter into the following Interlocal Contract for Property Tax
Collection Services (this "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.
WITNESSETH
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 or councils 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 TAXING UNIT enter- 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
1.1. The initial term of this Agreement shall be from December 7th 2020, to July 31,
2023 and shall automatically renew thereafter for one-year terms, commencing on August
1 st 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 April
1 st of the year for 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 August I st of the year in which such notice is provided. Upon the
effective date of 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 TAXING UNIT without charge
copies of the TAXING UNIT's current and delinquent tax records in a tab delineated flat
file format and/or other formats, as designated by the TAXING UNIT and approved by
SCHOOL DISTRICT, which approval shall not be unreasonably withheld, conditioned or
delayed.
Interlocal Contract for Property Tax Collection Services, Page 1
II.
SERVICES TO BE PERFORMED
2.1. The SCHOOL DISTRICT agrees to assess and collect the property taxes and public
improvement district assessments, including all interest, penalties and additional penalties
related thereto, owing to the TAXING UNIT.
2.2. The TAXING UNIT expressly authorizes the SCHOOL DISTRICT to do and perform all
acts necessary and proper to collect taxes for the TAXING UNIT. 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 proration of taxes;
correction of tax rolls; collection of current and delinquent tax rolls; 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. TAXING UNIT shall provide all records and such cooperation as
necessary to permit the proper performance of SCHOOL DISTRICT's duties under this
Agreement.
2.3. The SCHOOL DISTRICT agrees to prepare current and delinquent tax statements,
individual or consolidated, for each taxpayer within the TAXING UNIT's jurisdiction. 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.
2.4. The SCHOOL DISTRICT on behalf of the TAXING UNIT shall receive information from
the appraisal district 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.
2.5. The SCHOOL DISTRICT shall be responsible for preparing and publishing all notices that
are required for setting the TAXING UNIT's tax rate unless taxing unit notifies school
district in writing to the contrary. The TAXING UNIT expressly agrees to set and deliver
notice of its tax rate to the SCHOOL DISTRICT within sixty days (60) of receipt of
certified roll delivery provided by appraisal district.
2.6. The TAXING UNIT hereby designates the Tax Assessor -Collector of the SCHOOL
DISTRICT as the tax assessor/collector for TAXING UNIT (1) for the collection of public
improvement district assessments and ad valorem taxes, including, as applicable, penalties,
interest, additional penalties, and attorney's fees for the collection of taxes owed TAXING
UNIT and (2) as the party responsible for calculating the no -new -revenue tax rate and
voter -approval tax rate for the TAXING UNIT as required by Section 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
Interlocal Contract for Property Tax Collection Services, Page 2
obligations for debt issued by the TAXING UNIT on behalf of another political
subdivision, which amounts are required by law for calculation of the no -new -revenue tax
rate. The TAXING UNIT shall also furnish the SCHOOL DISTRICT with the estimated
fund balances required to be published with the no -new -revenue tax rate. SCHOOL
DISTRICT's duties shall not include any of those that are the responsibility of the appraisal
district.
2.7. 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 TAX UNIT's option, provide
the TAXING UNIT's collection attorney data and reporting capabilities through access to
the SCHOOL DISTRICT's computer system at the expense of the TAXING UNIT's
collection attorney, which expense shall not exceed that charged to the SCHOOL
DISTRICT's collection attorney.
2.8. The SCHOOL DISTRICT shall provide values of all land and all other tangible property,
real, personal or mixed, in TAXING UNIT.
III.
REMITTANCE OF FUNDS COLLECTED
3.1. 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.
3.2. 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 share of the
total delinquent levy owed to 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.
3.3. 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.
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 with each electronic deposit
transfer to TAXING UNIT.
IV.
BOND
4.1. The SCHOOL DISTRICT shall maintain a 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.
Interlocal Contract for Property Tax Collection Services, Page 3
V.
ACCOUNTING
5.1. The SCHOOL DISTRICT shall provide a monthly and 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.
5.2. 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.
5.3. The SCHOOL DISTRICT shall provide and make available to the TAXING UNIT all
records which relate in any way to the fee referenced in 6.1 and any increase in the per
account charge as authorized by Section 6.2. A copy of the records shall be provided to the
TAXING UNIT at no additional cost.
VI.
PAYMENT
6.1. 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 TWO AND 40/100 DOLLARS ($2.40) per annum per TAXING UNIT
property account which is within the current boundaries of the TAXING UNIT or any
future account(s) which is within the boundaries of the TAXING UNIT, which amount the
parties agree does not exceed the SCHOOL DISTRICTs actual cost incurred in performing
the services required under this Agreement.
6.2. 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 collections services under the terms of this Agreement if the costs of collection
increase, provided that at all times during the term of this Agreement, (i) the per property
account charge shall never exceed the SCHOOL DISTRICTs actual cost incurred in
performing the services required under this Agreement, and (ii) the per property account
charge shall never increase more than $0.10 per year and not more than $0.20 over a three-
year period.
6.3. 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 and the TAXING UNIT may prior to
May 1 terminate this Agreement by giving notice in writing to the SCHOOL DISTRICT.
6.4. The payments for services rendered by the SCHOOL DISTRICT under this Agreement
shall be billed to the TAXING UNIT annually one month before the fiscal year-end. The
TAXING UNIT agrees to pay for such services within thirty (30) days of receipt of such
billing, nonpayment will result in applicable interest being charged in accordance with
Section 2251.025 of the Texas Government Code.
Interlocal Contract for Property Tax Collection Services, Page 4
6.5. 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 TAXING UNIT's share of the tax
refunds within thirty (30) days of receipt of a notice this such refund has been paid.
6.6. The TAXING UNIT shall pay all sums required herein from its then current revenues.
6.7. This Agreement is expressly contingent upon sufficient appropriations and authorization
being made by the TAXING UNIT for the performance of this Agreement. If at any time
during the period of performance under this Agreement the TAXING UNIT does not make
sufficient appropriations and authorizations, this Agreement shall terminate upon written
notice being given by the TAXING UNIT to the SCHOOL DISTRICT. The TAXING
UNIT's decision as to whether sufficient appropriations are available shall be accepted by
the TAXING UNIT and shall be final.
VII.
ADMINISTRATIVE PROVISIONS
7.1. 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.
7.2. The TAXING UNIT may authorize the SCHOOL DISTRICT to contract with an attorney
at law 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.
7.3. 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.
VIII.
MISCELLANEOUS PROVISIONS
8.1. 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 inwriting signed by all parties hereto.
Interlocal Contract for Property Tax Collection Services, Page 5
8.2. 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 applicable laws,
regulations, and ordinances of the TAXING UNIT and SCHOOL DISTRICT as they now
exist or may hereafter be enacted or amended.
8.3. Except as otherwise provided all notices required to be given hereunder shall be given in
writing either by , 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 received five
(5) days after the date of mailing thereof to the following addresses:
DISTRICT
Goose Creek CISD
Attn: Superintendent
P.O. Box 30
Baytown, TX 77522
Fax No. (281) 420-4854
TAX ENTITY
City of Baytown
Attn: City Manager
P. O. Box 424
Baytown, TX 77522
Fax No. (281) 420-6586
8.4. Failure of either party hereto 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.
8.5. This Agreement shall in all respects be interpreted and construed in accordance with and
governed by the laws of the State of Texas. The place of making and the place of
performance for all purposes shall be Baytown, Harris County, Texas, venue for any legal
proceeding relating to this Agreement shall be in Harris County, Texas.
8.6. 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.
8.7. 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.
Interlocal Contract for Property Tax Collection Services, Page 6
8.8. 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.
8.9. 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.
8.10. 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.
8.11. The parties acknowledge that they have read, understand and intend to be bound by the
terms and conditions of this Agreement.
8.12. 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 UNIT 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.
8.13. Each party to this Agreement agrees that it shall have no liability whatsoever for the actions
or omissions of an individual employed by another party, regardless of where the
individual's actions occurred. Each party is solely responsible for the actions and/or
omissions of its employees and officers.
8.14. This Agreement may not be assigned by either party.
8.15. 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.
[Signature Page to Follow]
Interlocal Contract for Property Tax Collection Services, Page 7
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 this 7th day of December, 2020.
GOOSE CREEK CONSOLIDATED CITY OF BAYTOWN
INDEPENDENT SCHOOL DISTRICT
JESSICA WOODS, Board President
ATTEST:
HOWARD SAMPSON, Board Secretary
BRANDON CAPETILLO, Mayor
ATTEST:
LETICIA BRYSCH, City Clerk
VKaren iforncfDocumentS'.Files\Contracts`Outsourcing Tax Services'City of Baytown Revised Interlocal Tax Collection Agreement SB2 l 1052020.docx
Interlocal Contract for Property Tax Collection Services, Page 8