HomeMy WebLinkAboutResolution No. 2016-045CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2016-0 4S
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER
TO EXECUTE AN INTERLOCAL COOPERATION
AGREEMENT WITH THE DENTON COUNTY TAX ASSESSOR
COLLECTOR FOR COLLECTION OF PUBLIC
IMPROVEMENT DISTRICT NUMBER 1 ASSESSMENTS;
PROVIDING AN EFFECTIVE DATE
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
Section 1. That the City Council of the City of The Colony, Texas, has duly
reviewed and considered the Interlocal Cooperation Agreement by and between the City
of The Colony and the Denton County Tax Assessor Collector for the purpose of
collection of the 2016-17 Public Improvement District Number 1 assessments.
Section 2. That this Interlocal Cooperation Agreement, attached hereto as
Exhibit "A", is found to be acceptable and in the best interest of the City and its citizens,
and the City :Manager is hereby authorized to execute the Agreement on behalf of the City
of The Colony, Texas, with the terms and conditions as stated therein.
Section 3. That this resolution shall take effect immediately from and after
its passage.
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 1" day of August, 2016.
J e M�oMayor
City of The Colony, Tex
0Tima Stewart, TRMC, City Secretary
APPROVED AS TO FORM:
THE STATE OF TEXAS §
COUNTY OF DENTON §
INTERLOCAL COOPERATION AGREEMENT FOR PUBLIC IMPROVEMENT ASSESSMENT
COLLECTION BETWEEN DENTON COUNTY, TEXAS AND
The Colony PID No. 1 PUBLIC IMPROVEMENT DISTRICT
THIS AGREEMENT is made and entered into this _ day of Awqq&T
20 \ V by and between DENTON COUNTY, a political subdivision of the State of Texas,
hereinafter referred to as "COUNTY," and MUNICIPALITY NAME , Denton County,
Texas, also a political subdivision of the State of Texas, hereinafter referred to as "CITY/TOWN."
WHEREAS, COUNTY and CITY/TOWN mutually desire to be subject to the provisions
of V.T.C.A. Government Code, Chapter 791, the Interlocal Cooperation Act; and
WHEREAS, pursuant to Chapter 372 of the Texas Local Government Code, Subchapter A,
CITY/TOWN has created The Colony PID No. 1 , hereinafter referred to as
"DISTRICT," and has levied special assessments on properties within the boundaries of the
CITY/TOWN, and;
WHEREAS, pursuant to § 372.0175 of the Texas Local Government Code, CITY/TOWN
has the authority to contract with the COUNTY to perform the duties of CITY/TOWN relating to
collection of special assessments levied by DISTRICT under Chapter 372, Subchapter A; and
r NOW THEREFORE, COUNTY and CITY/TOWN, for and in consideration of the mutual
promises, covenants, and agreements herein contained, do agree as follows:
I.
The effective date of this Agreement shall be the 1 st day of October, 2016. The term of
this Agreement shall be for a period of one year, from October 1, 2016, to and through
September 30, 2017. This Agreement shall be automatically renewed for an additional one (1) year
term at the discretion of the COUNTY and CITY/TOWN, unless written notice of termination is
provided by the terminating party ,prior to one hundred -fifty (150) days of the expiration date of the
cuiTent term of the Agreement. CITY/TOWN agrees to deliver this agreement no later than
September 5, 2016 or the first Monday of September 2016 in manner regwred by COUNTY to fully
execute said collection services by COUNTY
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II.
For the purposes and consideration herein stated and contemplated, COUNTY shall provide
the following necessary and appropriate services for CITY/TOWN to the maximum extent
authorized by this Agreement, without regard to race, sex, religion, color, age, disability, or national
origin:
1. COUNTY, by and through its duly qualified tax assessor -collector, shall collect
DISTRICT assessments for tax year 2016. CITY/TOWN does hereby expressly authorize
COUNTY and COUNTY agrees to do and perform for CITY/TOWN all acts necessary and proper
to collect said DISTRICT assessments. COUNTY agrees to collect base assessments, penalties,
interest, and attorney's fees.
2. COUNTY agrees to prepare and mail all assessment statements (included on the tax
statement for each parcel, provide monthly collection reports to CITY/TOWN, maintain both
current and delinquent assessment rolls, disburse assessment monies to CITY/TOWN daily
(business day) based on prior day assessment postings, and to develop and maintain such other
records and forms as are necessary or required by State law, rules or regulations.
3. If COUNTY determines, based on DISTRICT assessment roll, that a person erred in
paying a DISTRICT assessment by making a duplicate payment or payment on the wrong account,
COUNTY agrees to refund the payment to the person who erred in making it from current
DISTRICT assessment collections. COUNTY agrees that such refund will be made as soon as
practicable after COUNTY discovers the erroneous payment. The refund shall be accompanied by a
description of the property subject to the assessment sufficient to identify the property. If the
property is assigned an account number, COUNTY shall include that number.
4. If COUNTY determines, based on DISTRICT assessment roll, that there has been
an overpayment of a DISTRICT assessment, COUNTY shall send the owner a refund application.
Upon owner's return of the accurate and fully completed refund application, COUNTY will issue,
from current DISTRICT assessment collections, a refund of the overpayment.
5. COUNTY agrees to develop and maintain written policies and procedures of its
operation. COUNTY further agrees to make available full information about the operation of the
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'County Tax Office to CITY/TOWN, and to promptly furnish written reports to keep CITY/TOWN
informed of all financial information affecting it.
6. CITY/TOWN agrees to promptly deliver to COUNTY all records that it has
accumulated and developed in the collection of assessments, and to cooperate in furnishing or
locating any other information and records needed by COUNTY to perform its duties under the
terms and conditions of this Agreement.
7. COUNTY agrees to allow an audit of the assessment collection records of
CITY/TOWN in COUNTY'S possession during normal working hours with at least 48 hours
advance, written notice to COUNTY. The expense of any and all such audits shall be paid by
CITY/TOWN. A copy of any and all such audits shall be furnished to COUNTY.
8• COUNTY agrees that it will post a notice on its website, as a reminder that
delinquent assessment penalties will apply to all assessments which are not paid by January 31, 2017.
COUNTY agrees to mail a reminder notice to delinquent assessment accounts in the month of
February 2017 notifying that delinquent penalties will apply to all assessments which are not
paid by January 31, 2017 The reminder notices will be mailed between February 5, 2017 and
February 28, 2017.
9. COUNTY agrees that it will post to a secure website collection reports for
CITY/TOWN listing current assessments, delinquent assessments, and penalties and interest on a
daily basis through September 30, 2017. COUNTY will provide monthly collection reports,
monthly recap reports, and monthly attorney fee collection reports.
10. CITY/TOWN retains its right to select its own delinquent assessment/collection
attorney and COUNTY agrees to reasonably cooperate with the attorney selected by CITY/TOWN
in the collection of delinquent assessments and related activities.
11. CITY/TOWN will provide COUNTY with notice of any change in collection
attorney on or before the effective date of the new collection attorney contract.
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COUNTY hereby designates the Denton County Tax Assessor/ Collector to act on behalf of
the County Tax Office and to serve as Liaison for COUNTY with CITY/TOWN. The County Tax
Assessor/Collector, and/or his/her designee, shall ensure the performance of all duties and
obligations of COUNTY; shall devote sufficient time and attention to the execution of said duties on
behalf of COUNTY in full compliance with the terms and conditions of this Agreement; and shall
provide immediate and direct supervision of the County Tax Office employees, agents, contractors,
subcontractors, and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this
Agreement for the mutual benefit of COUNTY and CITY/TOWN.
IV.
It is understood and agreed between COUNTY and CITY/TOWN that the CITY/TOWN,
in performing its obligations hereunder, is acting independently, and the COUNTY assumes no
responsibility or liabilities in connection therewith to third parties. It is further understood and agreed
between COUNTY and CITY/TOWN that the COUNTY, in performing its obligations hereunder,
is acting independently, and the CITY/TOWN assumes no responsibilities in connection therewith
to third parties. Nothing in this AGREEMENT is intended to benefit any third party beneficiary.
CITY/TOWN agrees that it will protect, defend, indemnify, and hold harmless COUNTY and all of
its officers, agents, and employees from and against all claims, demands, causes of action, damages,
judgments, losses and expenses, including attorney's fees, of whatsoever nature, character, or
description that any person or entity has or may have arising from or on account of any injuries or
damages received or sustained by person, persons, or property, on account of or arising out of, or in
connection with the performance of the services, including without limiting the generality of the
foregoing, any negligent act or omission of the CITY/TOWN or any employee, officer, agent,
subcontractor, servant, invitee, or assignee of the CITY/TOWN in the execution or performance of
this AGREEMENT. This provision shall survive the termination of this AGREEMENT.
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V.
COUNTY accepts responsibility for the acts, negligence, and/or omissions of all COUNTY
employees and agents, sub -contractors and /or contract laborers, and for those actions of other
persons doing work under a contract or agreement with COUNTY to the extent allowed by law.
VI.
CITY/TOWN accepts responsibility for the acts, negligence, and/or omissions of all
CITY/TOWN employees and agents, sub -contractors and/or contract laborers, and for those of all
other persons doing work under a contract or agreement with CITY/TOWN to the extent allowed by
law.
all
CITY/TOWN understands and agrees that CITY/TOWN, its employees, servants, agents,
and representatives shall at no time represent themselves to be employees, servants, agents, and/or
representatives of COUNTY. COUNTY understands and agrees that COUNTY, its employees,
servants, agents, and representatives shall at no time represent themselves to be employees, servants,
agents, and/or representatives of CITY/TOWN.
VIII.
k
For the services rendered during the 2016 assessment year, CITY/TOWN agrees to
pay COUNTY for the receipting, bookkeeping, issuing, and mailing of assessment statements as
follows:
1. The current assessment statements will be mailed by October 10, 2016 or as
soon thereafter as practical. if CITY/TOWN does not provide COUNTY with an assessment
roll identifying the assessments levied by CITY/TOWN's governing body under Local
Government Code Section 372.017 on or before September 10, 2016, COUNTY may charge a
$5,000.00 late processing fee, plus the per statement fee not to exceed $0.72 each. The assessment
roll is to be in the form of a spreadsheet as required by the Tax Assessor/Collector and
delivered to the Tax Assessor/Collector; delivery may be by CD, or FTP. All assessments
become due on receipt of the tax statement each year. Assessment roll is to be accompanied by
the governing body resolution for the 2016 assessment year.
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2016 FIXED LIEN PID INTERLOCAL AGREEMENT
2. All unpaid assessments become delinquent on February ist of the year following the
assessment year. Penalty and interest fees accrue at the same rate and time schedule as the same
year's ad valorem property tax. (Tax Code, Section 31.02(a), and 33.01(a)).
3. Delinquent assessment collection attorneys become involved at the same times as do
the delinquent ad valorem property tax attorneys. (Tax Code, Sections 6.30, 33.07, 33.08, 33.11, and
33.48)
4. An additional notice will be sent during the month of March following the initial
mailing provided that CITY/TOWN has requested such a notice on or before February 28, 2017.
The fee for this service will be a rate not to exceed $0.72.
5. At least 30 days, but no more than 60 days, prior to April I st, and following the
initial mailing, a delinquent assessment statement meeting the requirements of Section 33.11 of the
Texas Property Tax Code will be mailed to the owner of each parcel having delinquent assessments.
6. At least 30 days, but no more than 60 days, prior to July I st, and following the initial
mailing, a delinquent assessment statement meeting the requirements of Section 33.07_ of the Texas
Property Tax Code will be mailed to the owner of each parcel having delinquent assessments.
7. For accounts which become delinquent on or after June 1st, COUNTY shall mail a
delinquent tax statement meeting the requirements of Section 33.08 of the Texas Property Tax Code
to the owner of each parcel having delinquent assessments.
8. In the event DISTRICT levies a supplemental assessment by order of its governing
body after the assessment statements have already been mailed, CITY/TOWN shall provide
COUNTY with an updated assessment roll identifying the assessments levied by DISTRICT'S
governing body under Local Government Code Section 372.017, as corrected by any
supplemental assessments levied by its governing body under Section 372.019. CITY/TOWN
agrees COUNTY may charge a programming charge of $5,000 00. COUNTY will mail corrected
statements to the owner of each affected parcel. County will charge a fee for preparing and
mailing will be at rate not to exceed $0.72 per corrected statement. Supplemental Assessment Roll
will be accompanied by a resolution passed by the governing body authorizing the
supplemental assessement(s).
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9. CITY/TOWN understands and agrees that COUNTY will, no later than January 31, 2017
deduct from current collections of DISTRICT the "Total Cost" of providing all services described
in paragraphs 1-7 above. This "Total Cost" includes any such services that have not yet been
performed at the time of deduction. The "Total Cost" of providing all services described in
paragraphs 1-7 above shall be the total of:
$ 0.72 x the total number of parcels on DISTRICT Assessment Roll as reported on
September 30, 2016 end of year assessment roll for assessment year 2015. In the event costs for
additional delayed tax statements, processing and mailing are incurred as described in paragraph 1,
COUNTY shall bill CITY/TOWN for such amounts.
CITY/TOWN shall pay COUNTY all billed amounts within 30 days of its receipt of said bill.
CITY/TOWN further understands and agrees that COUNTY (at its sole discretion) may increase or
decrease the amounts charged to CITY/TOWN for any renewal year of this Agreement, provided
that COUNTY gives written notice to CITY/TOWN sixty (60) days prior to the expiration date of
the initial term of the Agreement. The County Budget Office establishes collection rates annually
based on a survey of actual annual costs incurred by the COUNTY in performing tax collection
services. The collection rate for each year is approved by County Commissioners' Court. All entities
are assessed the same per parcel collection rate.
IX.
COUNTY agrees to remit all assessments, penalties, and interest collected on CITY/TOWN
behalf and to deposit such funds into the CITY/TOWN depositories, as designated:
1. For deposits of assessments, penalties, and interest, payment shall be by wire transfer
or ACH to CITY/TOWN depository accounts only. Only in the event of failure of electronic transfer
protocol will a check for deposits of assessments, penalty and interest be sent by mail to
CITY/TOWN.
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2. If CITY/TOWN uses the same depository as COUNTY, the deposits assessments,
penalty and interest shall be by deposit transfer.
3. In anticipation of renewal of this Agreement, COUNTY further agrees that deposits
will be made daily through September 30, 2017. It is expressly understood, however, that
this obligation of COUNTY shall not survive termination of this Agreement, whether by
termination by either party or by failure of the parties to renew this Agreement.
4. In event that COUNTY experiences shortage in collections as a result of an outstanding
assessment debt of CITY/TOWN, the CITY/TOWN agrees a payment in the amount of shortage
shall be made by check or ACH to COUNTY within 15 days after notification of such shortage.
X.
In the event of termination, the withdrawing party shall be obligated to make such payments
as are required by this Agreement through the balance of the assessment year in which notice is
given. COUNTY shall be obligated to provide services pursuant to this Agreement, during such
period.
XI.
This Agreement represents the entire agreement between CITY/TOWN and COUNTY and
supersedes all prior negotiations, representations, and/or agreements, either written or oral. This
Agreement may be amended only by written instrument signed by the governing bodies of both
CITY/TOWN and COUNTY or those authorized to sign on behalf of those governing bodies.
94"
Any and all written notices required to be given under this Agreement shall be delivered or
mailed to the listed addresses:
COUNTY:
County Judge of Denton County
110 West Hickory
Denton, Texas 76201
Telephone 940-349-2820
8 of 10 2016 FIXED LIEN PID IN7E.RLOCAL AGREEMENT
CITY/TOWN: City of The Colony
Address: 6800 Main Street
City, State, zip: The Colony, TX 75056
Telephone: _972-625-1756 Email: tcmayor@thecolonytx.gov'-
:,
XIII.
a ` .
CITY/TOWN hereby designates Troy Powell T to act on behalf of
CITY/TOWN, and to serve as Liaison for CITY/TOWN to Viftre the performance of all duties and
obligations of CITY/TOWN as stated in this Agreement. CITY/TOWN designee shall devote
sufficient time and attention to the execution of said duties on behalf of CITY/TOWN in full
compliance with the terms and conditions of this Agreement; shall provide immediate and direct
supervision of the CITY/TOWN employees, agents, contractors, subcontractors, and/or laborers, if
any, in the furtherance of the purposes, terms and conditions of this Agreement for the mutual benefit
of CITY/TOWN and COUNTY.
XIV.
In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of
the parties that the .remaining portions shall remain valid and in full force and effect to the extent
possible.
XV.
The undersigned officers and/or agents of the parties are the properly authorized officials and have
the necessary authority to execute this agreement on behalf of the parties. Each party hereby certifies
to the other that any resolutions necessary for this Agreement have been duly passed and are now in
frill force and effect.
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Executed in duplicate originals this _ ' 2016. _ _ day of _ ����
9 of 10 2016 1 IXE.D LIEN PID INTERLOCAL AGREEMENT
COUNTY CITY/TOWN
Denton County City of The colony
110 West Hickory Address: 6800 Main Street
Denton, 6201 City, State, Zip: - The colony. TX 75056
BY: �B
_ -90—wHonorable ry o Nt Nam
Denton County Ju
ril Una8-c
ATTEST- : TEST-
BY:
--Juli Li tom' = `•O x o S t�CuWc;�rf 1
l�#ame �'� q enton my C erk �/>0 ., .� �� -Title g7r-Agnm C; -rISeY�}� r
Tax Assessor/Collector
Denton County Assistant District Attorney
10 of 10 2016 FIXED LIEN PIU INTERLOCAL AGREEMENT