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HomeMy WebLinkAboutResolution No. 04-46 CITY OF THE COLONY, TEXAS RESOLUTION NO. 04-~ A RESOLUTION OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF THE COLONY AND DENTON COUNTY FOR THE COLLECTION OF PROPERTY TAXES FOR THE CITY FOR 2004-2005 FISCAL YEAR; 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 Manager of the City of The Colony, Texas, is hereby authorized and empowered to execute an Interlocal Cooperation Agreement with Denton County for the collection of property taxes for fiscal year 2004-2005. Section 2. That a tree and correct copy of the Interlocal Cooperation Agreement is attached hereto and incorporated herein. Section 3. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED by the City Cotmcil of the City of The Colony, Texas, this 7th day of June 2004. Jc{~n-l~i~l~d, Ma~or - Ct~y of The Colony ATTEST: Christie Wilson, TRMC, City Secretary INTERLOCAL COOPERATION AGREEMENT - TAX COLLECTION THIS AGREEMENT is made and entered into this ~'~ ~ day of ~{ x,.~,_.~ 2004, by and bet~veen DENTON COUNTY, a political subdivision of the State of Texas, hereinafter referred to as "COUNTY," and CITY OF THE COLONY, DENTON COUNTY, TEXAS, also a political subdivision of the State of Texas, hereinafter referred to as "CITY." WHEREAS, COUNTY and CITY mutually desire to be subject to the provisions of V.T.C.A. Government Code, Chapter 791, the Interlocal Cooperation Act, and V.T.C.A., Tax Code, Section 6.24; and WHEREAS, CITY has the authority to contract with the COUNTY for the COUNTY to act as tax assessor and collector for CITY and COUNTY has the authority to so act; NOW THEREFORE, COUNTY and CITY, 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 1st day of October, 2004. The term of this Agreement shall be for a period of one year, from October 1, 2004, to and through September 30, 2005. This Agreement shall be automatically renewed for an additional one (1) year term at the discretion of the COUNTY and CITY, unless written notice of termination is provided by the terminating party to the other party prior to one hundred-fifty (150) days of the expiration date of the initial term of the Agreement. II. For the purposes and consideration herein stated and contemplated, COUNTY shall provide the following necessary and appropriate services for CITY to the maximum extent Page 1 of 9 authorized by this Agreement, without regard to race, sex, religion, color, age, disability, or national origin: 1. COUNTY, by and through its duly elected tax assessor-collector, shall serve as tax assessor-collector for CITY for ad valorem tax collection for tax year 2004, and each tax year for the duration of this Agreement. COUNTY agrees to perform all necessary ad valorem assessing and collecting duties for CITY and CITY does hereby expressly authorize COUNTY to do and perform all acts necessary and proper to assess and collect taxes for CITY. COUNTY agrees to collect base taxes, penalties, interest, and attorney% fees. 2. COUNTY agrees to prepare and mail all tax statements; provide monthly collection reports to CITY; prepare tax certificates; develop and maintain both current and delinquent tax rolls; meet the requirements of Section 26.04 of the Texas Tax Code; and to develop and maintain such other records and forms as are necessary or required by State law, roles, or regulations. COUNTY further agrees that it will calculate the effective tax rates and rollback tax rates for CITY and that such calculations will be provided at no additional cost to CITY. The information concerning the effective and rollback tax rates will be published in the form prescribed by the Comptroller of Public Accounts of the State of Texas, and as required by Section 26.04 of V.T.C.A. Tax Code. It is understood and agreed by the parties that the expense of publication ghall be borne by CITY and that COUNTY shall provide CITY's billing address to the newspaper publishing the effective and rollback tax rates. COUNTY agrees, upon request, to offer guidance and the necessary forms for posting notices of required hearing and quarter-page notices as required by Sections 26.05 and 26.06 of V.T.C.A. Tax Code. Should CITY vote to increase its tax rate above the rollback tax rate, or Page 2 of 9 more than three percent (3%) above the effective tax rote, whichever is lower, the required publication of quarter-page notices shall be the responsibility of CITY. 3. 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 County Tax Office to CITY, and to promptly furnish written reports to keep CITY informed of all financial information affecting it. 4. CITY agrees to promptly deliver to COUNTY all records that it has accumulated and developed in the assessment and collection of taxes, 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. 5. COUNTY agrees to allow an audit of the tax records of CITY 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. A copy of any and all such audits shall be furnished to COUNTY. 6. If required by CITY, COUNTY agrees to obtain a surety bond for the County Tax Assessor/Collector. Such bond will be conditioned upon the faithful performance of the Tax Assessor/Collector's lawful duties, will be made p~yable to CITY and in an amount determined by the governing body of CITY. The premium for any such bond shall be borne solely by CITY. 7. COUNTY agrees that it will place quarter-page advertisements in newspapers serving Denton County in January, 2005, as a reminder that delinquent tax penalties will apply to all assessed taxes which are not paid by January 31, 2005. The advertisements will be printed two times in each paper between January 5th and January 25th. Delinquent tax statements Page 3 of 9 itemizing all taxes due per property account will be mailed in May per V.T.C.A., Tax Code, Section 33.07. CITY will pay Fifty-Five Cents ($.55) for each delinquent tax statement. The statements will be mailed on or about May 1st. 8. COUNTY agrees that it will fax or mail collection reports to CITY listing current taxes, delinquent taxes, penalties and interest on a daily basis between October I, 2004 and March 31, 2005 and on a weekly basis between April 1, 2005 and September 30, 2005; provide monthly Maintenance and Operation (hereinafter referred to as "MO"), and Interest and Sinking (hereinafter referred to as "IS") collection reports; provide monthly recap reports; and provide monthly attorney fee collection reports. 9. CITY retains its right to select its own delinquent tax collection attorney and COUNTY agrees to reasonably cooperate with the attorney selected by CITY in the collection of delinquent taxes and related activities. III. 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. The County Tax Assessor/Collector, and/or his/her designated substitute, 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. Page4 of 9 IV. 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. V. CITY accepts responsibility for the acts, negligence, and/or omissions of all CITY 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 to the extent allowed by law. VI. CITY understands and agrees that CITY, 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. VII. For the services rendered during the 2004 tax year, CITY agrees to pay COUNTY for the receipting, bookkeeping, issuing, and mailing of tax statements as follows: 1. The current tax statements will be mailed on or about October 15th. This requirement will be deemed to have been met if the tax statement bears a postmark of not later than October 20th. The fee for this service will be Fifty-Five Cents ($.55) per statement. If CITY does not adopt a tax rate before September 29, 2004, the tax rate for CITY will be set at the lower of the effective tax rate calculated for that year or the tax rate adopted by CITY for the preceding tax Page 5 of 9 year. Before the fifth day after establishment of a tax rate under this provision, CITY must ratify the applicable tax rate in the manner required by Article 26.05(b) of the Texas Tax Code. 2. A second notice will be sent during the month of March following the initial mailing provided tha~ CITY has requested such a notice on or before February 28th. The fee for this service will be charged at the existing first class letter rate set by the United States Postal Service (currently $.37) plus a $.05 processing fee per statement. 3. At least 30 days, but no more than 60 days, prior to July 1st, and following the initial mailing, a statement meeting the requirements of Section 33.07 of the Texas Property Tax Code will be mailed. The fee for this service will be Fifty-Five Cents ($.55) per statement. 4. In event of a successful rollback election which takes place after tax bills for CITY have been mailed, CITY agrees to pay COUNTY a programming charge of $1,000.00 and an additional postage charge at the first class letter rate (currently $.37) plus a $.05 processing fee' per statement to comply with Property Tax Code Section 26.07 (f) and (g). Property Tax Code Section 26.07 requires refunds to be sent to those taxpayers who have already paid and requires a corrected statement to be sent to those taxpayers who have not yet paid their taxes. CITY understands and agrees that COUNTY will bill CITY following each mailing for which charges are permitted. Payment is due upon receipt of the statement. CITY further understands and agrees that COUNTY (at its sole discretion) may increase or decrease the amounts charged to CITY for any renewal year of this Agreement, provided that COUNTY gives written notice to CITY sixty (60) days prior to the expiration date of the initial term of the Agreement. Page 6 of 9 VIII. COUNTY agrees to remit all taxes, penalties, and interest collected on CITY's behalf or to deposit such funds into the depositories which CITY selects, as follows: 1. For deposits of tax, penalties, and interest, payment shall be wire transfer or by check sent by mail to CITY's accounts, and segregated into the appropriate MO and IS accounts. 2. I~' CITY uses the same depository as COUNTY, the deposits of tax, penalty and interest shall be by deposit transfer. 3. In anticipation of renewal of this Agreement, COUNTY fnrther agrees that from October 1, 2004 through March 3 I, 2005, deposits will be made daily and from April 1, 2005, through September 30, 2005, deposits will be made weekly. For end of month reporting, there will be a deposit made at the end of each month. 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. IX. 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 tax year in which notice is given. COUNTY shall be obligated to provide services pursuant to this Agreement, during such period. X. This Agreement represents the entire agreement between CITY 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 and COUNTY or those authorized to sign on behalf of those governing bodies. Page7 of 9 XI. 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 CITY: CITY OF THE COLONY 6800 Main Street The Colony, Texas 75056 Telephone: 972-624-1756 Contact: Patti Hicks XIII. CITY hereby designates Jack~.e Carroll to act on behalf of CITY, and to serve as Liaison for CITY to ensure the performance of all duties and obligations of CITY as stated in this Agreement. CITY's designee shall devote sufficient time and attention to the execution of said duties on behalf of CITY in full compliance with the terms and conditions of this Agreement; shall provide immediate and direct supervision of the CITY 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 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. Page 8 of 9 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 full force and effect. Executed in duplicate originals this, t~/ day of --m~ 2004. COUNTY CITY Denton County Texas CITY OF THE COLONY 110 West Hickory 6800 Main Street Denton, Texas 76201 The Colony, Texas 75056 BY~I°n°rable Mary 1~°~ 7"~;~ 0 '07 Printed Name: Denton County Juffge Title: ~ ATTEST: ATTEST: Name Dffnm~my Cl~k~~)"?%. Title Steve Mossmm ~ ~dnfdn doubt] Denton County Tax Assessor/Collector Assist~t District Att0mey Page 9 of 9