Loading...
R2024-081-2024-05-20 DocuSign Envelope ID:7CB5CBCF-3E02-4416-924C-2173E43ECBFF RESOLUTION NO. R2024-81 A Resolution of the City Council of the City of Pearland,Texas,authorizing the City Manager or his designee to enter into an interlocal agreement with Brazoria County for the annual collection and assessment of City taxes and Public Improvement District assessments BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS Section 1 That certain interlocal agreement by and between the City of Pearland and Brazoria County, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a contract with Brazoria County for the annual collection and assessment of taxes for the City PASSED, APPROVED and ADOPTED this the 20th day of May, A.D , 2024 dr,)‘ J IN COLE ;OT OR ATTEST DocuSlyned by: LgratA.a,s Q$ar oorctieavrrim... FRANCES AGUILAR, TRMC, MMC CITY SECRETARY rp� O o' APPROVED AS TO FORM z Ttr, DocuSigned by: DA klnT.OKER CITY ATTORNEY THE STA IL OF IEXAS COUNTY OF BRAZORIA INTERLOCAL COOPERATION AGREEMENT FOR COLLECTION OF TAXES AND PID ASSESSMENTS FOR CITY OF PEARLANI) This Interlocal Cooperation Agreement (the "Agreement") is made and entered into by and between BRAZORIA COUNTY, TEXAS (the "County") and CITY OF PEARLAND (the "City") (singularly and collectively, the "Party" and `Parties") pursuant to the Interlocal Cooperation Act, Texas Government Code chapter 791, Texas Property Tax Code sections 6 23 and 6.24, and Texas Local Government Code section 372.0175, with the agreement, consent, and participation of the Brazona County Tax Assessor -Collector (the "Tax Assessor -Collector"). I. RECITALS 1 1 The County is a political subdivision of the State of Texas, acting by and through its Commissioners Court. 1.2 The City is a political subdivision of the State of Texas, acting by and through governing body 1.3 The Tax Assessor -Collector is the duly elected tax assessor -collector for Brazona County, Texas. 1 4 Texas Property Tax Code section 6.24, Texas Local Government Code section 372.0175, and Texas Government Code chapter 791 authorize political subdivisions of the State of Texas to enter into interlocal contracts for the provision of tax assessment and collection services and public improvement district (`PID") assessment collection services 1.5 The County, with the approval of the Tax Assessor -Collector, has agreed to provide tax assessment and collection services and PID assessment collection services, as specified in this Agreement, for the City 1 6 The City has agreed to authorize the County to provide tax assessment and collection services and PID assessment collection services, as specified in this Agreement, for the City 1 7 The City has the authority to authorize the County to act as tax assessor -collector, as specified in this Agreement, and the County has the authority to act in that capacity 1 8 The County and the City agree It is in the best interest of the citizens of Brazoria County to enter into this Agreement. NOW, THEREFORE, for and in consideration of the premises and the mutual covenants 1 of 8 and agreements set forth in this Agreement, the County and the City agree as follows II. COUNTY OBLIGATIONS The County hereby agrees, during the term of this Agreement, to the following: 2.1 The County shall comply with all provisions of the Texas Property Tax Code and Local Government Code, as amended, regarding collection of ad valorem property taxes and PID assessments. 2.2 Except as otherwise provided in this Agreement, in all matters pertaining to the assessment and collection of taxes for the City, the County, through the Tax Assessor -Collector, shall perform the duties of tax assessment and collection and PID assessment collection for the City for accounts within the jurisdiction of the City The County's duties under this Agreement include, but are not 'muted to, entering into agreements for the payment of delinquent taxes by installment as provided by Texas Property Tax Code section 33 02. The Tax Assessor -Collector shall not be considered an officer or employee for the City and shall not be designated as an officer or employee of the City for the purpose of calculating tax rates, or for any other purpose under Texas Property Tax Code chapter 26 2.3 The Tax Assessor -Collector shall provide customary notices and billings concerning taxes and PID assessments owed to the City and will collect and process through the County's bank account all income received therefrom, in the general manner and at the same times in which the Tax Assessor -Collector assesses and collects taxes for the County and other taxing entities. 2.4 The taxes and assessments collected by the County for the City shall be remitted by electronic automated clearing house transactions ("ACH") to the City's designated depository Refunds to taxpayers and taxpayer checks returned from banks shall be deducted from County's remittance to the City The Tax Assessor -Collector shall remit to the City all tax proceeds and PID assessments collected for the City no less than twice weekly during heavy payment periods, as determined by the Tax Assessor -Collector, and no less than once weekly during slow periods. Actual funds collected by the Tax Assessor -Collector shall be remitted to the City within three (3) business days of receipt durmg heavy payment periods and within five (5) business days during slow periods. Disbursements shall be subject to the City bearing any ACH transfer fee required by an agreement between the County and the County's depository then in effect. 2.5 The Tax Assessor -Collector shall provide the City monthly and annual reports as required by Texas Property Tax Code section 31 10 2 6 The Tax Assessor -Collector shall provide the City annual reports, prepared by independent certified public accountants, on both the design of the system and compliance tests that are directed to specific objectives of internal accounting control. For the purpose of' these reports, the "system" is the internal control structure policies and procedures of the office of the Tax Assessor -Collector, which includes the control environment, the accounting system, and the 2of8 control procedures. These reports shall be in accordance with Statement of Auditing Standards Number 44, "Special -Purpose Reports on Internal Accounting Control at Service Organizations," as issued by the American Institute of Certified Public Accountants. 2 7 The Tax Assessor -Collector shall provide the City a copy of existing bonds required by Texas Property Tax Code section 6.28. 2 8 The County shall bill the City no later than the 31st day of December each year for the annual charge for assessing and collecting taxes and PID assessments under this Agreement. 2.9 In performing services under this Agreement, neither the Tax Assessor -Collector, nor any official, employee, or agent of the Tax -Assessor Collector or the County, shall be considered an officer or employee of the City CITY OBLIGATIONS The City hereby agrees, during the term of this Agreement, to the following• 3 1 The City shall comply with all provisions of the Texas Property Tax Code and Local Government Code, as amended, regarding collection of ad valorem property taxes and PID assessments. 3.2 The City shall designate an officer or employee to perform all tax rate calculations required by Texas Property Tax Code chapter 26 and adopt a tax rate in accordance with Texas Property Tax Code Section 26 05 The City shall reimburse the County for any additional costs incurred by County for any delay m adopting a tax rate. 3.3 For services related to the collection of ad valorem property taxes rendered pursuant to this Agreement, the City agrees to pay the County an annual charge of Thirty -Six Cents ($0.36) per parcel as the actual costs incurred. The Parties acknowledge and agree the compensation under this Agreement is reasonable compensation, as allowed by Texas Property Tax Code section 6.27, which does not exceed the actual costs mcurred, for assessing and collecting taxes for the City 3 4 For services related to PID assessment collection rendered pursuant to this Agreement. The City shall also pay the County the following for each PID (1) an annual charge of Thirty -Six Cents ($0.36) per parcel and (2) an initial set-up fee of One Thousand Dollars and No Cents ($1,000 00), as the actual costs incurred. The Parties acknowledge and agree the compensation under this Agreement is reasonable compensation, as allowed by Texas Property Tax Code Section 6.27, which does not exceed the actual costs incurred, for collecting PID assessments for the City 3 5 The Parties further agree the amount to be paid by the City to the County under this Agreement may be evaluated by the Tax Assessor -Collector, at a minimum, every three (3) years. The Parties agree the amount to be paid by the City to the County under this Agreement may be adjusted by the Tax Assessor -Collector after an evaluation. In the event of an adjustment, the Tax 3 of 8 CO Assessor -Collector shall notify the City, and this Agreement shall then renew at the adjusted rate without need to amend this Agreement. 3 6 The City shall pay the County amounts billed under this Agreement forty-five (45) days after the City's receipt of the bill. If such amounts are not timely paid, the County may withhold the amounts from future disbursements. 3 7 The City shall ensure the Tax Assessor -Collector is notified no later than May 1 of the applicable year when requested to collect assessments for a new PID The City shall also ensure the Tax Assessor -Collector is provided an assessment roll for each PID no later than September 1 of each year 3 8 The City shall promptly provide to the Tax Assessor -Collector, without charge, copies of all records necessary for the performance of the duties and responsibilities of the County pursuant to this Agreement. The City shall provide accurate information to the Tax Assessor - Collector to permit the timely and accurate calculations and publications of applicable tax rates. 3.9 The Parties acknowledge and agree that the City has and retains the exclusive authority to contract with private legal counsel for the collection of delinquent property taxes and PID assessments, as provided m Texas Property Tax Code section 6.30 The Tax Assessor - Collector shall cooperate with delinquent tax collection attomey(s) so designated and shall have the authority to pay said attomey(s) the fees or commissions agreed upon between the City and the attomey(s) out of the proceeds received from the collection of delinquent tax accounts and PID assessments. In the event the City does not designate private legal counsel for the collection of delinquent property taxes and PID assessments, the City shall utilize the same pnvate legal counsel as the County 3 10 In the event the County waives any penalty and/or interest on any parcel, pursuant to Texas Property Tax Code section 33 011, the City consents to the waiver of the penalty and/or interest on the same parcel and hereby authorizes the County to waive such penalty and/or interest on behalf of the City 3 11 The City's performance under this Agreement is conditioned on the appropnation of funds by the City on an annual basis for payment of the amounts owed to the County under this Agreement and shall constitute a commitment of current revenues only The failure by the City governing body to appropriate funds sufficient for payment of the County's collections and performance herein shall be grounds for termination of this Agreement. IV I'ERM AND TERMINATION 4 1 This Agreement shall be effective on May 1, 2024, and shall remain in full force and effect for one year, through April 30, 2025 This Agreement shall automatically renew on May 1, 2025, for a period of one (1) year, and shall automatically renew thereafter on an annual basis. 4of8 4.2 Either Party may terminate this Agreement for any reason by providing wntten notice to the other Party at least mnety (90) days pnor to the date of termination. This Agreement may also be terminated at any time and for any reason, without any prior notice, upon wntten agreement by the Parties. 4.3 In the event of termination of this Agreement by the City, the City shall assume all contractual obligations entered into with the County for services rendered under this Agreement to the City for the duration of the term of the Agreement and any renewal, and the County shall be relieved of all contractual obligations under this Agreement. V ENTIRETY 5 1 This Agreement and all promises contained in it supersede any and all other agreements, either oral or in writing, between the Parties with respect to the subject matter of this Agreement. 5.2 The Agreement contains all the covenants and agreements between the Parties relating in any way to their obligations under this Agreement. 5.3 Each Party acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, that are not set forth m this Agreement, and that no agreement, statement, or promise not contained in this Agreement shall be valid or binding. VI. FORCE MAJEURE 6 1 The Parties shall not be 1 able or responsible to each other for any delay, Loss, failure, or inability to perform their obligations as descnbed herein which is caused by "force majeure." The term "force majeure" includes, but is not limited to, acts of God, strikes, acts of a public enemy, wars, mines or other items of ordnance, blockages, public noting, lightning, fire, hurricanes, floods, storms, explosions, inability to obtain materials, supplies, labor pernuts, servitudes, or rights of way, acts or restraints of any governmental authority, epidemics, landshdes, lightning storms, earthquakes, washouts, arrests, restraints of rulers and peoples, civil disturbances, breakage or accident to machinery or lines of equipment, temporary failures of equipment, freezing of equipment, and any other causes, whether of the kinds specifically enumerated above or otherwise, which are not reasonably within the control of the Parties and which by the exercise of reasonable due diligence could not reasonably be prevented or overcome. 6.2 In the event time limits are not met under this Agreement as a result of force majeure, the Party whose performance is due shall have an extension of the time limit or deadline equal to the number of days for which the force majeure condition existed. After the force majeure condition has ended, the Agreement shall continue under the same operations and circumstances as existed prior to the force maj cure event. 5of8 0 Cal 6.3 Events reasonably within the control of the respective Party shall not constitute force majeure and shall be remedied with the exercise of due diligence. The Parties shall use all reasonable means to remove all contingencies affecting the performance of' this Agreement as quickly as is reasonably possible. This clause does not relieve any Party from its obligations to make any payments of amounts then due for previous work or obligations contemplated and performed under this Agreement, and neither Party's time for performance shall be extended for any event which is reasonably within the control of such Party VIl. LIABILITY SUPPLEMENTAL SURETY BOND, AND NO IMMUNITY WAIVER 7 1 Each party to this Agreement agrees that it shall have no liability whatsoever for the actions or omissions of an individual employed by another party, regardless of where the individual's actions occurred. Each party is solely responsible for the actions and/or omissions of its employees and officers 7.2 The County recommends that the City obtain an additional and adequate surety bond for the County and Tax Assessor/Collector specifically related to all services, actual and anticipated, to be performed and rendered hereunder The City agrees to pay all associated premiums for such bond. 7.3 The Parties expressly understand and agree that, in the execution of this Agreement and the performance of obligations herein, the Parties do not waive, nor shall they be deemed to have waived, any immunity or defense that would otherwise be available to the Parties or their officials, officers, employees, and/or agents against claims arising in the exercise of governmental powers and functions, including, but not limited to, sovereign and/or governmental immunity This Agreement is expressly made subject to the Parties' sovereign and/or governmental immunity, mcludmg, without limitation, Title 5 of the Texas Civil Practice and Remedies Code and all applicable federal and state laws. VIII. MISCELLANEOUS 8 1 Notices Any notice required under this Agreement shall be m writing and shall be duly served when deposited, with proper postage prepaid, and duly registered or certified, return receipt requested, in a United States Post Office, addressed as specified below If mailed, any notice of communication shall be deemed to be received three (3) days after the date of deposit in the United States mail. Unless otherwise provided in this Agreement, all notices shall be delivered at the following addresses THE COUNTY Kristin R. Bulanek Brazona County Tax Assessor -Collector 111 East Locust Angleton, TX 77515 6of8 THE CITY Victor Brownlees Assistant City Manager/ Interim Chief Financial Officer 3519 Liberty Drive Pearland, TX 77581 With a copy to Chief —Civil Division Brazoria County Criminal District Attomey's Office 11I E. Locust, Suite 408A Angleton, Texas 77515 8.2 Severability. If any term or provision in this Agreement is, for any reason, held invalid, illegal, or unenforceable by any court of competent jurisdiction, the Parties shall by written amendment make it valid, legal, or enforceable, however, if any term or provision in this Agreement cannot be amended to make it valid, legal, or enforceable while still providing the effect desired by both Parties, said term or provision shall be deemed a separate, distinct, and independent provision, shall be constructed as having never been contained in this Agreement, and shall not affect the validity, Legality, or enforceability of the remaining terms and provisions in this Agreement, which shall remain in full force and effect. 8.3 Amendment. No amendment, modification, or alteration of the terms or provisions of this Agreement shall be binding unless it is in writing, references this Agreement, is dated subsequent to the Effective Date of' this Agr ment, and is duly executed by authorized representatives of both Parties. 8 4 Authorized Representative. Each Party to this Agreement represents to the other Party that it is fully authorized to enter into this Agreement and to perform its obligations hereunder and that no waiver, consent, approval, or authorization from any third party is required to be obtained or made in connection with the execution, delivery, or performance of this Agreement in accordance with its terms, other than those that have been obtained. 8.5 No Joint Enterprise. Nothing in this Agreement shall be deemed or construed by the Parties, nor any third party, as creating a relationship of principal and agent, partnership, joint enterprise, common enterprise, joint venture, or joint owners between the Parties. This Agreement does not and shall not be construed to entitle either Party or any of their respective officials, employees, or agents, if applicable, to any benefit, privilege, or other amenities of employment from the other Party 8 6 Successors and Assigns Neither Party may assign or transfer its interest in or obligations under this Agreement, in whole or in part, without the prior written consent of the other Party This Agreement binds and is for the sole and exclusive benefit of the Parties and their legal successors, including, without limitation, any successor governmental agency or entity to either Party 8 7 Governing Law This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 8 8 Exclusive Jurisdiction and Venue. Exclusive jurisdiction and venue for all legal actions related to this Agreement shall be in Brazoria County, Texas. The Parties waive any objection to the adjudication of all court actions related to this Agreement in Brazoria County, 7of8 Date By - Texas. 8.9 Authorship This Agreement shall not be construed in favor of or against any Party on the basis that the Party did or did not author this Agreement. 8 10 Titles or Headings. Any titles or headings of sections and paragraphs m this Agreement are included solely for convenience, shall not be considered a part of the Agreement, shall not in any way serve to modify or restrict any term or provision, and shall not be considered in ascertaining intent. 8 II Including. Wherever the word "including" is used, it is deemed to mean "including, without limitation." 8 12 Counterparts. This Agreement may be executed in one or more counterparts, all o which together will be deemed an original. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their following properly authorized officers, having the necessary authority to execute this Agreement on behalf of the Parties, and made this Agreement effective as of the last date listed below• BRAZONTY, TEXAS By.p By. CITY OF PEARLAND L.M. "Matt" Sebesta;r COUNTY JUDGE Trent Epperson City Manager Y Date 5��_?/2 y tin R. Bulanek TAX ASSESSOR:C•-'LECTOR Date 8of8