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Home My WebLink AboutO-2013-3502 CLP/LPISD Property Tax Collection Operations contractORDINANCE NO. 2013 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND LA PORTE INDEPENDENT SCHOOL DISTRICT, FOR THE CITY OF LA PORTE TO PROVIDE THE TAX COLLECTING OPERATION OF THE LA PORTE INDEPENDENT SCHOOL DISTRICT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETING LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contact, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the city to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statues Annotated; and that this meeting has been open to the public as required at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, THIS 9t' DAY OF December, 2013 City 01 By: A EST: o - Patrice Fogarty, C' y ecretary CIM s ns, A sistant City Attorney #C14-099 STATE OF TEXAS COUNTY OF HARRIS THIS AGREEMENT for tax collection is entered into between the City of La Porte, Texas, a municipal corporation, hereinafter called "City", and the La Porte Independent School District, hereinafter called "District", acting herein by and through their governing bodies; and it is hereby agreed as follows: I. The City hereby agrees to collect current ad valorem taxes and delinquent ad valorem taxes for the District through its tax collector and tax office, and to act as the collection agency for the district, performing all such duties related thereto. The services performed shall include, but not be limited to: receiving information from the Harris County Appraisal District (HCAD) for purposes of the Certified Appraisal Roll and monthly changes thereto; providing tax roll and payment data to mortgage companies, property owners and tax representatives; providing all necessary assessments of taxes and Truth in Taxation calculations; and periodic deposits of payments into Districts account. 1I. BILLINGS The City will send billing notices to the District's accounts in accordance with applicable state laws. The City will mail original bills on behalf of the District in October followed by delinquent bills mailed in February and May. 'Ihe City will take necessary steps to assure that billings are timely and accurate. Both the City and the District recognize the accuracy and timeliness of billings is dependent upon information received from the HCAD. Funds collected by the City on behalf of the District will be deposited into an account specified by the District. City assumes no responsibility for the funds once they have been deposited into the District's account. The District recognizes its responsibility for assuring its bank balances are fully collateralized in accordance with appropriate state laws. City will notify District of such deposit amounts that will be made on Tuesdays and Thursdays during October through January and weekly during February through September. Refunds of previously paid funds caused by changes in the tax roll as reported by the HCAD will be made in accordance with applicable state laws. Refunds of previously paid funds will be invoiced to the Distnct no less than once every three months. Funds that have been deposited in the District account as collected that later are deemed uncollected by the City's bank will be invoiced to the District as needed. The City will perform the collection of such funds in the same manner the City follows to collect similar funds it is due. IV. The City will provide the District the following reports: Periodic: Billing amounts created by the original roll or monthly updates from HCAD. Weekly: Summary totals of the previous week's collections/deposits Monthly: Summary totals of all monthly transactions with reconciliations to previously reported balances. Annual: Paid Tax Roll Delinquent Tax Roll If requested in writing the City will provide the District with any specialized reports the District might require. City will provide said specialized reports for the District at a cost of $40.00 per hour spent compiling said specialized reports. The City will provide necessary documents so that the District can complete the Texas Comptrollers report for State Funding in October LIA The City will provide to the District's auditor necessary explanation for all reports and access to the District records kept and maintained by the City. In addition, if requested in writing by the District, City will provide audit schedules for the District at a cost of $40.00 per hour spent compiling said schedules. VI. 6, NPIM�LOT� A it In performing the services required under this Agreement, the City shall comply with all applicable federal; and state statues, case law, opinions of the Texas State Attorney General, Court orders and Comptroller regulations. If such compliance is impossible for reasons beyond its control, the City shall immediately notify the District of that fact and the reasons therefor. The City shall assess and collect the Twenty percent (20%) collection fee pursuant to Section 33.07 of the Property Tax Code, when permitted by law. The City will disburse the amount directly to the firm the District has contracted with for it Delinquent Tax Collections. The City and the District currently utilize the same firm as their individual Delinquent Collection Attorney. Upon expiration of the Attorneys contract, the respective governing bodies of the City or the District can make continuance with the firm or selection of a new firm separately. However, recommendations for selection of one firm to provide tax collection services for both the City and the District may be made by a committee consisting of two City Council Members and two District Trustees. Staff will recommend the aforementioned committee qualified candidates. This agreement shall be for a term of three (3) years, commencing on October 1, 2013 and continuing through September 30, 2016. Either party may cancel this agreement by providing 180 days written notice to the City Manager or District's Superintendant of the other party. After the expiration of the three-year term, the agreement will automatically renew on a year-to-year basis unless terminated pursuant to this provision. IX. The City hereby agrees to accept as compensation and the District hereby agrees to pay to the City as full compensation, the sum of Six Dollars and Eighty-five Cents (;6.85) for each separate assessed item on the Districts certified roll, as reported by the 14CAD on its fust roll and includes both those accounts certified and uncertified, for the 2013-14 District fiscal year. The compensation shall increase each year by twenty-five cents ($0.25) for each separate assessed item with a cap of seven dollars and thirty-five cents ($7.35) in the third year of the contract. City shall invoice District, and District shall pay City by February 281h for the tax year just billed. City may retain all fees received for issuance of such District tax accounts, to compensate for the cost of the issuance of such tax certificates. The District will be responsible for reimbursing the City for any modifications that need to be made to existing software system to accommodare any special exemptions or incentives that only the District grants. WITNESS OUR HANDS, this Lday of UPJAIhEC 2013. Kathy Board La Porte '// llzz Charlrya Wheelof Secretary Board Trustee Patrice Foge , ity Secre City of La Porte