HomeMy WebLinkAboutContract 52986 CITY SECRETARY
%1ACONTRACT NO._ 5 a%6
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§ Agreement for the Collection of Special Assessments
COUNTY OF TARRANT §
Agreement made this Mday of 2019, by and between the Tarrant County Tax
Assessor/Collector,hereinafter referred to as"AS SSOR/COLLECTOR,"and Tarrant County,hereinafter referred to
as the"COUNTY,"both of whom are addressed at 100 East Weatherford Street,Fort Worth,Texas 76196-0301,and the
City of Fort Worth,hereinafter referred to as"City"whose address is 200 Texas Street,Fort Worth,TX 76102.
PURPOSE OF AGREEMENT
The purpose of this Agreement is to state the terms and conditions under which the ASSESSOR/COLLECTOR will
provide assessment and collection services of special assessments levied by the City for its public improvement districts,
which includes the City's Public Improvement District Nos. 1,6,7, 11, 12, 14, 15, 16, 17, 19,20,and 21 in accordance
with Chapter 372 of the Texas Local Government Code(the"Assessment(s)").
NOW,THEREFORE,in consideration of the mutual promises herein contained,the parties hereto agree as follows:
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SERVICES TO BE PERFORMED
The ASSESSOR/COLLECTOR agrees to bill and collect the Assessments due and owing on property upon which the
City has imposed said Assessments. The ASSESSOR/COLLECTOR shall perform the said services in the same manner
and fashion as Tarrant County collects its own taxes due and owing on taxable property. The services performed are as
follows: receiving the Certified Appraisal Roll from the appropriate Appraisal District and monthly changes thereto;
providing mortgage companies,property owners and tax representatives Assessment roll and payment data;providing all
necessary Assessments and Truth in Taxation calculations as required;the transmittal of tax statements,which include the
Assessments as a line item, via the U.S. Mail or electronic transfer of data; and payment processing. All City
disbursements,made by check or by electronic transfer(ACH),for collected tax accounts with Assessments will be made
to the City on the day the COUNTY Depository Bank indicates the mandatory assigned"float"period has elapsed and the
funds are posted to the collected balance. If any daily collection total is less than one hundred dollars ($100.00), the
disbursement may be withheld until the cumulative total of Assessments collected for the City equals at least one hundred
dollars($100.00),or at the close of the month.
II.
REPORTS
The ASSESSOR/COLLECTOR will provide the City the following reports via internet access:
Daily: Entity Distribution Report
Monthly: Assessment Roll Summary(Totals Only)
Year-to-Date Summary Report
Detail Collection Summary Report
Distribution Summary Report
Detail Collection Summary By Year
Entity Revenue and Expense Reports—as required by Property Tax Code Sec 3 1.10
Delinquent Tax Attorney Tape,which includes Assessments
Annual: Certified Tax Roll
Paid Assessment Roll
Delinquent Assessment Roll
Current Assessment Roll
The following weekly reports are available upon request only and provided via email:
Weekly: Detail Collection Summary Report E "'
t kAAL RECORD
Detail Collection Summary By Year ; TiECRETaRY
WORTH, TX
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III
COMPENSATION
In consideration of the services to be performed by the ASSESSOR/COLLECTOR,compensation for the services rendered
is a rate of ninety-eight cents ($0.98)per account located within Tarrant County, and two-dollars ($2.00)per account
located outside Tarrant County. The number of accounts will be based on the July 25 billing roll certified to the
ASSESSOR/COLLECTOR, net of subsequent account additions and deletions made by the Appraisal District. The
ASSESSOR/COLLECTOR will invoice for all these accounts by January 31 of each year of this Agreement with payment
to be received from the City by February 28 of each of the same years.
The scope of services identified in this Agreement does not include the administration of a rollback election. In the event
of a successful rollback election,these costs incurred by the Tarrant County Tax Office will be separately identified,billed,
and paid by the entity.
IV
AUDITS
The ASSESSOR/COLLECTOR will provide to the City auditor necessary explanations of all reports and access to
ASSESSOR/COLLECTOR in-house tax system computer terminals to assist the City auditor in verifying audit samples
of the financial data previously provided by the ASSESSOR/COLLECTOR during the past audit period. Additional
support for entity verification or entity auditor verification is not a part of this Agreement. Each request for support will
be reviewed individually. Costs for providing audit support will be determined by the ASSESSOR/COLLECTOR and
will be charged to and must be paid by the City.
V.
ASSESSMENT RATE REQUIREMENT
The City will provide the ASSESSOR/COLLECTOR copies of the resolution(s),ordinance(s),or order(s)signed
by the governing body adopting the City's current Assessment rates and exemption schedules to be applied for
assessing purposes along with a copy of the rate calculation worksheets,if applicable,by the third Wednesday in
September but, in no event, later than September 30 if the City adopts its Assessment rate after the third
Wednesday in September. Under authority of Section 31.01(h)of the Property Tax Code,any additional cost ofprinting
and mailing tax statements because of late reporting of the Assessment rates or the exemption schedules will be charged
to and must be paid by the City. Any additional cost or expense requiring recalculation or rebilling due to an inaccurate
or erroneous Assessment rate provided by City will be paid by City.
The Assessment rates and the exemption schedules,if any,for each of the last five(5)years in which an Assessment was
levied, or all prior years where there remains delinquent Assessments, must be furnished in writing to the
ASSESSOR/COLLECTOR at the time of the initial Agreement.
VI.
COMPLIANCE WITH APPLICABLE
STATUTES,ORDINANCES,AND REGULATIONS
In performing the services required under this Agreement,the ASSESSOR/COLLECTOR shall comply with all applicable
federal and state statutes, final Court orders and Comptroller regulations. If such compliance is impossible for reasons
beyond its control,the ASSESSOR/COLLECTOR shall immediately notify the City of that fact and the reasons therefore.
VII
DEPOSIT OF FUNDS
All funds collected by the ASSESSOR/COLLECTOR in the performance of the services stated herein for the City shall
be promptly transferred to the account(s)of the City at the City's depository bank(s). All payments to entities will be made
electronically either by the automated clearing house (ACH) or wire transfer. Wire transferred funds will incur an
additional fee,which will be charged back to the City and deducted from those collected funds. The transfer fees charged
will be the same fees charged to the COUNTY by its bank depository. If the City desires its Assessment disbursements to
be made by wire transfer,the ASSESSOR/COLLECTOR has no liability for the funds after initiation of the wire transfer
of the City's funds from the COUNTY Depository to the City's designated depository. ASSESSOR/COLLECTOR has
the authority to temporarily suspend payments to City due to unforeseen or unanticipated circumstances beyond the
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reasonable control of the ASSESSOR/COLLECTOR.
VIII.
INVESTMENT OF FUNDS
The City hereby agrees that the COUNTY,acting through the County Auditor,may invest collected Assessment funds of
the City during the period between collection and payment. The COUNTY agrees that it will invest such funds in
compliance with the Public Funds Investment Act. The COUNTY further agrees that it will pay to the City all interest or
other earnings attributable to Assessments owed to the City. All parties agree that this Agreement will not be construed to
lengthen the time period during which the COUNTY or the ASSESSOR/COLLECTOR may hold such funds before
payment to the City.
REFUNDS
Refunds will be made by the ASSESSOR/COLLECTOR except as set forth herein. The ASSESSOR/COLLECTOR will
advise the City of changes in the Assessment rolls which were mandated by the appropriate Appraisal District.
The ASSESSOR/COLLECTOR will not make refunds on prior year paid accounts unless the prior year paid accounts for
the past five(5)years are provided to the ASSESSOR/COLLECTOR.
If the amount of refunds processed for City exceeds collections for City, City will be placed in a negative status and no
distributions made to City until collections exceed the negative balance.
All refunds of overpayments or erroneous payments due,but not requested,and as described in Section 31.11 of the Texas
Property Tax Code, will after three (3)years from the date of payment, be proportionately disbursed to those entities
contracting with the ASSESSOR/COLLECTOR. The Agreement must have been in force, actual Assessment and
collection functions begun and the tax account was at the time of the over or erroneous payment within the City's
jurisdiction. The proportional share is based upon the City's percent of the tax account's total levy assessed at the time of
receipt of the over or erroneous payment.
In the event any lawsuit regarding the collection of Assessments provided for in this Agreement to which the City is a
party is settled or a final judgment rendered,and which final judgment is not appealed, and the terms of such settlement
agreement or final judgment require that a refund be issued by the City to the payer, such refund shall be made by
ASSESSOR/COLLECTOR by debiting funds collected by the ASSESSOR/COLLECTOR on behalf of the City and
remitting such refund to the taxpayer in conformity with the terms of the settlement agreement or final judgment.
X.
DELINQUENT COLLECTIONS
The ASSESSOR/COLLECTOR will assess and collect the collection fee pursuant to Sections, 33.07,33.08, 33.11 and
33.48 of the Property Tax Code, when allowed. The ASSESSOR/COLLECTOR will collect attorney fees that are
specified by the City through written agreement with a delinquent collection Attorney. The ASSESSOR/COLLECTOR
will disburse the amount directly to the City for compensation to a firm under contract to the City.
If the delinquent collection Attorney contracted by the City requires attendance of ASSESSOR/COLLECTOR personnel
at a court other than the District Courts in downtown Fort Worth,and the COUNTY is not a party,the employee's expenses
and proportionate salary will be the responsibility of the City and will be added to the collection expenses and charged to
the City.
The ASSESSOR/COLLECTOR will not be responsible for the collection of prior year delinquent accounts unless all
delinquent accounts information is provided to the ASSESSOR/COLLECTOR.
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TERM OF AGREEMENT
This Agreement shall become effective as of the date hereinabove set out,and shall continue in effect for three years during
the 2019,2020,and 2021 tax years,unless sooner terminated by providing sixty(60)days' written notice,as outlined in
paragraph XH.
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NOTICES
Any notices to be given hereunder by either party to the other may be effected by e-mail(if an email is listed below),or in
writing,either by personal delivery or by mail,registered or certified,postage prepaid with return receipt requested. Mailed
notices shall be addressed to the address of the parties as they appear in the introductory paragraph of this Agreement,but
each party may change this address by notice in accordance with this paragraph.
City: Assessor/Collector:
City of Fort Worth Tarrant County
Attn:Director of Finance Tax Assessor Collector
200 Texas Street 100 E.Weatherford
Fort Worth,Texas 76102 Fort Worth,Tx 76196
TAXOFFICE@tarrantcounty.com
With copy to: County
City of Fort Worth Tarrant County
Attn:City Attorney Attn:County Judge
200 Texas Street 100 E Weatherford
Fort Worth,Texas 76102 Fort Worth,Texas 76196
XIII.
MISCELLANEOUS PROVISIONS
This instrument hereto contains the entire Agreement between the parties relating to the rights herein granted and
obligations herein assumed. Any oral representations or modifications concerning this instrument shall be of no force or
effect.
This Agreement shall be construed under and in accordance with the laws of the State of Texas,and all obligations of the
parties created hereunder are performable in Tarrant County,Texas.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives
and successors.
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 enforceability shall not affect any other provision hereof and
this Agreement shall be construed as if such invalid,illegal,or unenforceable provisions had never been contained.
This Agreement and the attachments hereto 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.
Executed on day year first A ,"���•FOR
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E.�...,uted the , and,_ar f _hove written,Tarrant County,Texas.
B
WENDYBUR SS, DATE •�; :
TAX ASSESSOR/COLLECTOR
TARRANT COUNTY � IzQ�••
FOR,0TYVF,fORT WORTH er, City Secretary
S4NALANIS DA E
ASSISTANT CITYMANAGER
�--- OFFICIAL RECORD
APPRO - m AND LEGALITY: CITY SECRETARY
F14. WORTH,TX
Usi"t City Atturr e'y
FOR TARRANT COUNTY.•
BY.•
B. GLEN WHITLEY DATE
TARRANT COUNTYJUDGE
APPROVED AS TO FORM:
BY. .
CRIMINAL ISTRICT ATTORNEY'S OFFICE' DATE
"By law,the Criminal District Attorney's Office may only approve contracts for its clients. We reviewed this document as to form from our client's
legal perspective. Other parties may not rely on this approval.Instead those parties should seek contract review from independent counsel.
N
CIAL RECORD,SECRETARYWORTH, TX
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/06/19 M&C FILE NUMBER: M&C 19-0008
LOG NAME: 13TARRANTCO20-22
SUBJECT
Authorize Execution of Agreement with Tarrant County and the Tarrant County Tax Assessor-Collector for Ad Valorem Tax Assessment and
Collection Services for a Three Year Term Consist of Tax Years 2019-2021 (Fiscal Years 2020-2022)(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an Agreement with Tarrant County and the Tarrant County Tax Assessor-
Collector for assessment and collection services of ad valorem taxes levied by the City of Fort Worth for Tax Years 2019-2021 (Fiscal Years 2020-
2022),covering the period October 1 to September 30 of each subsequent year,with a unit-based cost of$0.98 per account for property located
within Tarrant County and$2.00 per account for property located outside the County.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to authorize engaging Tarrant County and the Tarrant County Tax Assessor-
Collector(together,County)to provide assessment and collection services for the City's property taxes.The City Council has designated the
County to act as the agent of the Finance Department by providing these services for well over a decade.The Agreement for the current fiscal year
was approved on June 5,2018(M&C C-28700).
The County uses a standard Agreement with all of the taxing entities for which it collects taxes.Prior to 2013,the County used a cost structure
involving a single standard per-account cost.However,as the City expanded,the County increased the scope of its services to include
assessment and collection for tax accounts for property located outside of Tarrant County but still within the City. Processing different data formats
and verifying data with multiple appraisal jurisdictions has resulted in additional expenses to the County.State law requires that the Tax Assessor-
Collector charge taxing entities the actual costs for tax collection.Therefore,for Tax Years 2019-2021 (Fiscal Year 2020-2022),the County will
again utilize a dual cost structure,one for accounts where the property is located within Tarrant County and another for accounts where the property
is located outside the County.
Terms of the Agreement for Tax Years 2019-2021 (Fiscal Years 2020-2022)will be held at a constant per account rate,fluctuating by the number of
in-county and out-of-county accounts each Tax Year. The per-account charge for in-county accounts remains the same at$0.98.The per-account
charge for out-of-county accounts has been reduced to$2.00 per account from$2.60,due to new efficiencies in technology.
The estimated number of accounts(in-county and out-of-county)has experienced an average increase of approximately 4%in each of the last
three years. It is anticipated that the annual growth in the number of accounts will remain at approximately 4%for Tax Years 2019-2021 (Fiscal
Years 2020-2022).
This contract will be with a governmental entity,state agency or public institution of higher education:(Tarrant County and Tarrant County Tax
Assessor-Collector).
A Form 1295 is not required for this contract because:This contract will be with a governmental entity,state agency or public institution of higher
education:Tarrant County
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and the adoption of the Fiscal Year 2020 Budget by the City
Council,funds will be available in the Fiscal Year 2020 Operating Budget,as appropriated,of the General Fund and that,prior to an expenditure
being made,the Financial Management Services Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Susan Alanis 8180
Originating Business Unit Head: Kevin Gunn 2015
Additional Information Contact: Trey Imes 8558