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HomeMy WebLinkAboutContract 1165 Dallas County, Property Tax Assessment and Collection Services8/07/01 * ** ADD NEW C.O.R.P. ENTRY * ** COAR01FB 14:13:55 C- 01165 -000 Date Passes: 062601 Beginning Date: 062601 Ending Date: Contractor: DAT,T,AS COUNTY Subject: PROPERTY TAX/ OTT TTON SF _ Detail: CONTRACT FOR PROPERTY TAX ASSESSMENT AND COT,TF TTON qFRVTCFq Press ENTER to ADD, CMD1 to Exit w/o ADD COURT ORDER ORDER NO. 2 0011205 DATE JUN 2 6 2001 STATE OF TEXAS § COUNTY OF DALLAS § 2() BE IT REMEMBERED, at a regular meeting of the Commissioners Court of Dallas County, held on the 26th day of June , 2001, on motion made by Mike Cantrell, Commissioner of District No. 2 and seconded by Jim Jackson, Commissioner of District No. 1 , the following Order was adopted: WHEREAS, the Dallas County Commissioners Court has worked with the Dallas County Tax Assessor /Collector, David Childs to implement various improvements to the County's tax collection operations; and WHEREAS, as part of such enhancement, the Commissioners Court agreed with the Tax Assessor /Collector, that the fee charged to the various taxing units, for tax collection services should be increased from $1.00 to $1.15 per account; and WHEREAS, the Tax Assessor /Collector has notified all of the taxing units that utilize the County's tax collection service of the required fee increase. NOW THEREFORE BE IT ORDERED, ADJUDGED AND DECREED that the Dallas County Commissioners Court does approve the attached contracts for Property Tax Assessment and Collection Services between Dallas County and the following cities, school districts and special districts: City of Cockrell Hill City of Duncanville City of Farmers Branch City of Hutchins City of Sachse City of Seagoville Dallas County Community College District Dallas County Hospital District Duncanville Independent School District Highland Park Independent School District Irving Flood Control District Section I Irving Flood Control District Section III Lancaster Independent School District The Town of Highland Park IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Dallas County Judge is authorized to sign such contracts on behalf of Dallas County. DO N OPEN COURT this the 26th day of ,Tune 01. Lee F. c on Jim ckson —� Mike Cantrell County Judge Co issio r, strict 1 Commissioner, District 2 ABSENT John iley ric Kenneth A. Mayfield Co issione t 3 Commissioner, District 4 Recommended by 0 4 -z, CONTRACT FOR PROPERTY TAX ASSESSMENT and COLLECTION SERVICES THE STATE OF TEXAS § COUNTY OF DALLAS § On this the 21" day of May, 2001, Dallas County, Texas, hereinafter called "County," and the City of Farmers Branch, hereinafter called "Taxing Unit," enter into the following Agreement: WITNESSETH WHEREAS, the parties to this Agreement desire the assessment and collection of property taxes for the City of Farmers Branch to be handled by the Tax Assessor - Collector of the County of Dallas; and, WHEREAS, the parties enter into this Interlocal Cooperative Contract ( "Agreement ") in order to eliminate duplication of the costs of assessment and collection of taxes and associated administrative functions to increase governmental efficiency; and, WHEREAS, the parties enter into this Agreement pursuant to the authority granted by Sections 6.23, 6.24, 6.29, and 6.30, Texas Property Tax Code, and Texas Government Code, Section 791.001 et. seq., known as the Interlocal Cooperation Act; NOW THEREFORE, in consideration of the premises and of the terms, provisions, and mutual promises herein contained, it is mutually agreed as follows: SECTION I: PURPOSE The purpose of this Agreement is to secure the services of the County to assess, bill and collect ad valorem property taxes for the Taxing Unit and to perform related governmental and administrative functions and services. SECTION II: TERM This Agreement shall continue in full force and effect from year to year until such time as either party hereto, by written notice to the other, may terminate the same; such termination to be effective only if such written notice is provided to the other party on or before April 1 of the year in which the party intends for the Agreement to terminate. Such termination shall be effective September 30 following such notice. SECTION III: DESCRIPTION OF SERVICES The Taxing Unit hereby authorizes and designates the Dallas County Tax Assessor- Collector as the Tax Assessor and Collector for the Taxing Unit. The Taxing Unit hereby specifically authorizes and designates Dallas County, Texas, its employees and officers to perform any and all acts which the County, its employees and officers determine necessary and proper in the best interest of the Taxing Unit in order to accomplish the services hereby agreed to be performed by the County. The County through the Dallas County Tax Assessor - Collector, hereby agrees to provide the following ad valorem tax related services: A. Prior to July 31 of each tax year compute the effective tax rate in accordance with the Texas Property Tax Code; B. Establish the tax roll based on property values and exemptions certified by the Dallas Central Appraisal District; and, based on the tax rate, exemptions, and discounts authorized by the Taxing Unit; C. Prepare and mail all statutorily required current and delinquent tax statements, deeds and supplements for all Taxing Unit tax accounts (and in addition prepare and mail a January mortgage company clean-up and a February delinquent tax statement; August and September supplements from DCAD will be processed prior to mailing annual current real property statements;) D. Receive and deposit payment of taxes on behalf of the Taxing Unit. E. Disburse tax monies to the Taxing Unit daily based on prior day tax postings (and disburse the Taxing Unit's pro rata share of interest earned during any month on the investment of collected balances no later than the 10th business day after month end;) F. Approve and refund overpayment or erroneous payment of taxes for the Taxing Unit's governing body pursuant to Texas Property Tax Code Annotated, Sections 3 1. 11 and 31.12, from available current tax collections or from funds appropriated by the Taxing Unit for making refunds; G. Approve waiver of penalty and interest for a delinquent tax owed to the Taxing Unit strictly in accordance with Texas Property Tax Code, Section 33.011; H. Prepare and issue Tax Certificates in accordance with Texas Property Tax Code, Section 31.08; I. Prepare and submit reports as required, pursuant to Texas Property Tax Code, Section 31.10, to the Taxing Unit, accounting for all taxes collected or delinquent. The County further agrees to prepare and/or provide information and reports for state agencies, auditors and other interested parties that have been designated by the Taxing Unit or required by law regarding the assessment, collection, and disbursement of ad valorem taxes; J. Services requested by Taxing Unit, other than those listed, may result in additional costs to be paid by the Taxing Unit to County. Prior to performing such additional services, a letter of agreement between the Parties setting forth the amount of the charges must be executed. Any charges in excess of $50,000 for additional service shall require amendment to this Agreement; K. To the extent available in Dallas County's system, other duties associated with collection of ad valorem taxes as shown in Attachment A, Proposed Services; and L. The County will retain a law firm to represent itself and the Taxing Unit for the collection of delinquent taxes. The Taxing Unit may utilize a firm different than the one selected by the County and retain another firm to represent its interest in delinquent tax collections. Should the Taxing Unit select a different firm than the County, it agrees to pay the County any and all additional costs the County may incur by administering additional tax collection law firms. Such additional costs shall be determined by the County and added to the rate charged per tax account as allowed by Section VII of this agreement after Taxing Unit is notified of such costs and provided with supporting documentation. Written authorization by the Taxing Unit will be required if such additional costs are expected to exceed $1,000 annually. For purposes of this agreement, the Taxing Unit does elect to utilize the firm of Perdue, Brandon & Fielder to represent its interest in delinquent tax collections. To the extent permitted by law, the County in connection with any suit to recover the Taxing Unit's taxes has the right to sue in its own name for the use and benefit of the Taxing Unit or in the name of the Taxing Unit. M. As requested, provide a monthly report on the following workload, activity and performance measures: • Monthly collection percentage • February mailing cut -off percentage • July cut -off (turnover to law firm) • Funds deposited/transferred • Penalty and interest waived • Telephone unit activity N. Any open records requests for information shall be complied with in accordance with State law. SECTION IV: EXCLUSIONS The following duties and responsibilities of the Taxing Unit are specifically excluded from this Agreement: A. Any obligation of the Dallas Central Appraisal District; B. Adoption of the tax rate by the Taxing Unit and related publications; C. Any other obligation imposed by law or other authority upon the Taxing Unit not specifically stated in this Agreement. SECTION V: LIMITATION OF LIABILITY County and Taxing Unit agree and acknowledge that the County's liability to the Taxing Unit for any claims or damages relating to the subject matter of this Agreement shall not exceed the cost of mailing the Taxing Unit's tax statements, which includes the cost of statements, processing and mailing. The County and Taxing Unit agree and acknowledge that County will not be liable for any other direct, special, incidental, or consequential damages and that the aforesaid costs of mailing constitute liquidated damages under this Agreement. Notwithstanding anything contained herein, the County's limitation of liability shall not extend to any claim the Taxing Unit may have hereunder with respect to a loss of public funds due to the negligence or misconduct of the County Assessor - Collector, or any other loss sustained by the Taxing unit, and which are recoverable under the County or County Assessor - Collector surety bonds. SECTION VI: COOPERATION The Taxing Unit agrees to transfer to the possession and control of the County, without charge, copies of all records, in the format and/or medium in which they currently exist, that are necessary for the performance of the duties and responsibilities of the County pursuant to this Agreement. Taxing unit agrees to inform County of tax rates, exemptions, governing body orders, and any other decision of the Taxing Unit that will impact ad valorem tax collection policy and /or procedures no later than the last Friday of September of each year. The parties hereto agree to grant the other free and open access, at reasonable times and without charge, to whatever information is needed for the mutual performance of the terms of this Agreement. All notices provided to be given under this Agreement shall be given in writing and delivered by certified mail addressed to the proper party, at the following address: IF TO COUNTY: With copies to: IF TO TAXING UNIT: Dallas County Judge County Administration Building 411 Elm Street Dallas, Texas 75202 Dallas County Tax Assessor - Collector Records Building - 1 st Floor Dallas, Texas 75202 Charles S. Cox — Finance Director City of Farmers Branch 13000 William Dodson Parkway Farmers Branch, Texas 75234 The County Tax Assessor - Collector, in the performance of his or her duties under this Agreement, shall comply with the requirements of Vernon's Article 8885, the Property Taxation Professional Certification Act and the Code of Ethics promulgated by the Board of Tax Professional Examiners as required by Vernon's Article 8885. SECTION VII: PAYMENT The Taxing Unit hereby agrees to pay, and the County hereby agrees to accept for the services it renders pursuant to this Agreement the following: A. The sum of $1.15 per tax account billed in Dallas County and in the Taxing Unit that is appraised and/or certified by the Dallas Central Appraisal District (DCAD). B. The sum of $2.00 per tax account billed outside of Dallas County and in the Taxing Unit that is appraised and/or certified by the DCAD. C. The sum of $3.00 per tax account billed outside of Dallas County and in the Taxing Unit that is not appraised and /or certified by the DCAD. D. The sum of $2.00 per tax account billed for Public Improvement Districts (PID's) or Special Districts that are in the Taxing Unit and appraised and/or certified by the DCAD. The County will also reconcile annually the accounts included in the PID's using the procedures defined in Attachment A: Proposed Services. E. The sum of $3.00 per tax account billed outside of Dallas County for PID's or Special Districts in the Taxing Unit that are not appraised and/or certified by the DCAD. Accounts added and billed on behalf of the Taxing Unit on supplemental tax rolls shall be similarly payable when billed by the County. The one time cost of converting the entities' records will be calculated and may be paid in one payment or paid out during the first year. To pay for the cost of assessing and collecting taxes for the Taxing Unit, the County shall bill the Taxing Unit on March 1, 2002 and each March 1 thereafter the cost per tax account set forth above. This shall include, but not be limited to, all accounts added to the tax collection system from the certified Tax Roll received from DCAD in the prior July and accounts added through supplements through February. One hundred percent of all costs billed is due by April 1 of each year. Payment not received by April 1 shall be subject to any late payment penalty allowed under Texas law. Any errors which overstate the costs billed shall not be liable for any late payment penalty. When collection fees are less than the aggregate collection cost incurred by the County, the County Auditor will reevaluate the per parcel collection fee. Each Taxing Unit shall be provided written notice of any change in fee prior to March 1 of any year. If for any reason the Taxing Unit is unable to provide the County with any necessary tax rate account or related information prior to the last Friday of September of each year, the Taxing Unit agrees to assume the entire cost for such additional statement, processing and mailing. It is understood, however, that the Taxing Unit will be charged only a prorated amount if another Taxing Unit is included on such billing. If the Taxing Unit requires the County to obtain an additional surety bond for the Tax Assessor - Collector, the Taxing Unit agrees to pay the premium for such bond. In the case that the Taxing Unit's tax rate is rolled back or otherwise changed after the County begins collections for the Taxing Unit in any given year, the County will continue to act for the Taxing Unit in providing refunds to taxpayers or sending corrected billings only if the Taxing Unit, by written agreement, assumes the actual cost. This cost shall be the actual cost of providing those extra services required by the rollback or change in the tax rate and such cost shall be paid in the same manner as herein above established. The Taxing Unit will be charged only a prorated amount if another taxing unit is included on such refunds or billings. The County will also provide, at cost of service, any special requests from Taxing Units or requirements, such as locally mandated changes that apply only to a city or school, or special district; response to natural disasters; requests for special computer reports. The County agrees, except for the Dallas County School District, not to provide tax assessment and collection services to other cities and school districts on terms that are more favorable than the terms of this agreement unless the County gives prior written notice of the terms of such tax assessment and collection agreement to the Taxing Unit and grant the Taxing Unit the right and option to amend the terms of this agreement to equal the more favorable terms of such other agreement. Each party paying for the performance of governmental functions or services must make those payments from current revenues available to the paying party. SECTION VIII: GENERAL PROVISIONS Terminology used in the Agreement shall be defined as interpreted by the Texas Property Tax Code. This Agreement shall be construed under and in accordance with the laws of the State of Texas and exclusive venue for any legal actions between the parties arising from this Agreement shall be in Dallas County, Texas. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein: This Agreement constitutes the sole and only Agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. In performing the services hereunder, the parties agree that the local law of the County shall apply to the procurement process of ancillary services and goods. SECTION IX: AMENDMENTS Any amendments, alterations, deletions or waiver of the provisions of this Agreement shall be valid only when expressed in writing and agreed to by both parties. F DALLAS 6/26/01 Dallas Co my Judge Lee F. Jac n ,?�A_A,, :z dd'J'a - Dallas County Tax Assessor - Collector David Childs APPROVED AS TO John Attorney OF FARMERS BRANCH docJ Richard L. C__'_1 City Attorney 5 -z9 -0 / Attachment A PROPOSED SERVICES Dallas County will offer to the extent available in Dallas County's system a high quality of comprehensive assessment and collection services. Because we strive to maximize the tax revenue generated, we are continually expanding and improving upon our services. In summation, the following are services that Dallas County will provide. Assessments • Assessment of each entity's taxable values, calculating their particular exemptions. • Calculating each entity's effective tax rate. • Tax roll maintenance, including updating mortgage company accounts, DCAD changes, corrections and updates. Collections • Calculation, preparation, printing and mailing of consolidated tax statements as required by the Texas Property Tax Code. • Lock box depositing of tax payments. • Volume processing for mortgage companies, tax agents and multi - property taxpayers, utilizing tape -to -tape, disc or listing exchanges. • Calculation, preparation, printing and mailing of February and May, Section 33.07(b), Five Year Delinquent Notice. • Calculation, preparation, printing and mailing of supplemental statements. • Notification, calculation and posting of over 65 quarterly payments. Disbursal and Accounting Online calculation of account balance. Acceptance, posting, accounting and re- calculating balances for partial payments. a • Disburse funds on a daily basis to a jurisdiction based on collected funds. • Wire transferring of collected funds to the Taxing Unit's accounts. • Teller balancing and double -entry ledger balancing daily. • Accounting for adjustments, reconciliation, refunds, partial payments, multiple accounts, etc. • Approving and refunding overpayment or erroneous payment of taxes, penalties and interest. • Oversight of all fiscal records by Dallas County Auditor. Reports • Standard daily, monthly, annual to -date reports. • Annual listing of all delinquent accounts, both current and prior years. • Reports per account, pre jurisdiction, per fund within jurisdiction, and/or per tax year. • Extract data file — monthly. • Top 100 taxpayers — to be developed from the highest 100 market appraised values plus their additional values developed from a name search for additional values. • Property files for LBR. • Daily list of refunds. Other Services • Online 1 -D and 1 -D -1 calculating and updating. • Online tax receipts and certificates. • Rollback calculating and account updating. • Certified copies of all public records. I • Handling of bankruptcy and government foreclosure accounts. • Constant research and updating of records. • Full legislative updates and modifications. • File back up with off -site storage of all records. • Multi -line telephone and in- person customer service department to handle all inquiries. • The Taxing Unit at their expense may connect one or more terminals to the County's consolidated tax collection system. PID Reconciliation Procedure • Take all accounts within a PID on the current tax roll and compare to the new Certified Tax Roll. • Assure that all accounts within a PID are accounted for (splits, combines, etc.). • Produce an appraisal roll for each PID and send to the Taxing Unit no later than August of each year. New PID's • If the Taxing Unit creates a new PID, the Tax Unit must supply the specific boundaries in a manner that will allow the County to be able to identify the DCAD account numbers and assessment information.