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HomeMy WebLinkAboutItem 15 - E-FilingMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: NOVEMBER 3, 2020 SUBJECT: APPROVAL OF MEMORANDUM OF UNDERSTANDING FOR THE ELECTRONIC FILING OF DOCUMENTS RECOMMENDATION: City Council to consider the execution of a Memorandum of Understanding with Tarrant County for the purpose of electronically filing plats and documents within Tarrant County. FUNDING SOURCE: BACKGROUND: City Council approved a Memorandum of Understanding (MOU) with Tarrant County for the e -filing of plats and documents on January 16, 2018. Tarrant County is upgrading their e -filing system and converting to a new process and web portal. Tarrant County is asking the City to update their MOU in order to access this new process and portal. The new e -filing process requires authorization through the creation of department specific logins. Public Works, City Secretary's Office and Finance all have staff that will access this new web portal. The agreement also sets out respective responsibilities, obligations, and expectations for e -filing activities. The agreement requires approval by the Grapevine City Council and the Tarrant County Clerk's Office. Staff recommends approval. ELECTRONIC RECORDING MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("MOU") is between Mary Louise Nicholson, Tarrant County Clerk, ("CLERK"), and the City of Grapevine ("SUBSCRIBER") with offices at 200 South Main Street, Grapevine, Texas CLERK desires to offer the recording of real property documents by electronic means providing for the receiving and transmitting of documents electronically in substitution for conventional paper-based documents. CLERK also desires to assure that transactions are not legally invalid or unenforceable as a result of the use of available electronic technologies, to the mutual benefit of the parties to the transactions. For purposes of this Memorandum of Understanding ("MOU"), Electronic Recording is defined as the electronically based submission of documents from SUBSCRIBER to CLERK and electronically based receipt of confirmation of recording from CLERK to SUBSCRIBER based on the level of automation and structure of the transaction. Electronic Recording is characterized by four levels of automation and structure as follows: Level 1 — Submitting organizations transmit scanned image copies of ink signed documents to CLERK. CLERK completes the recording process in the same way as paper using the imaged copy as the source document. An electronic recording endorsement is returned to the organization in the form of a label or printing process in order for the submitting organization to append that information to the original paper document. Level 2 — Submitting organizations transmit scanned images of ink signed documents along with electronic indexing information to CLERK. CLERK performs an electronic examination of the imaged documents and indexing data, and then completes the recording process using the imaged copy and electronic indexing information. The electronic version of the recorded document is returned electronically to the submitting organization along with the electronic recording data. Level 3 — Submitting organizations transmit documents which have been created, signed, and notarized electronically along with the electronic indexing information. Electronic signatures must comply with the UETA and E -Sign specifications. CLERK performs an electronic examination of the electronic documents and indexing information then completes the recording process using the electronic documents. The electronic version of the recorded documents and electronic recording data is returned to the submitting organization. Page 1 of 10 Program Eligibility State Licensed Attorneys, Mortgage Bankers, Title Insurance Companies, and other trusted entities may, directly or through a trusted third -party electronic recording service provider, submit real property records for Electronic Recording. Electronic Recording mandates a close working relationship as well as mutual trust between the CLERK, SUBSCRIBER, and any third party electronic recording service provider. All parties to the Electronic Recording transaction desire to operate and maintain a secure recording system that safeguards parties to recordation from deceit, fraud, and forgery. This Memorandum of Understanding outlines the procedures and rules for the trusted relationship between the parties involved in Electronic Recording in order to facilitate a safe and secure Electronic Recording relationship. CLERK Requirements The Electronic Recording Program of CLERK is defined by the requirements attached to this Memorandum of Understanding. Attachment A defines the technical specifications including format, levels of recording supported, transmission protocols, and security requirements of the electronic records required by CLERK. SUBSCRIBER agrees to provide the transmission to CLERK following the specifications. SUBSCRIBER understands that the specifications may change from time to time. In the event changes to the specifications are required, CLERK will provide a written notice to SUBSCRIBER within a reasonable timeframe. Attachment B contains the document and indexing specifications for the Electronic Recording Program. For each document, a CLERK specific document code is provided along with the required indexing information. Any CLERK specific editing rules will also be described in this attachment. Attachment C contains the processing schedules and hours of operation for the Electronic Recording Program. No party shall be liable for any failure to perform processing of the transactions and documents where such failure results from any act of Nature or other cause beyond the party's reasonable control (including, without limitation, any mechanical, electronic, or communications failure which prevents the parties from transmitting or receiving the electronic recording transactions) or if the CLERK system causes delays or power failures that interfere with the normal course of business. By the agreement CLERK is assuming no contractual liability whatsoever for any failure to record any document, delay in recording any document, or for the quality or content or lack thereof of any document presented for recording. Attachment D provides the payment options supported for the Electronic Recording Program. Page 2 of 10 CLERK Responsibilities CLERK shall attempt to protect the integrity of the Recordation process through ongoing monitoring of documents received and recorded through Electronic Recording means. CLERK shall work with third party electronic service provider and SUBSCRIBER to install, configure, and administer necessary infrastructure components to facilitate Electronic Recording. CLERK shall test and maintain Electronic Recording software and hardware required to operate the Electronic Recording capability. CLERK, however, shall be held harmless and not liable for any damages resulting from software or equipment failure and assumes no contractual liability for any damages whatsoever via any part of this document. CLERK shall apply the level of diligence in handling documents submitted electronically that she would apply to documents submitted manually. SUBSCRIBER Responsibilities SUBSCRIBER shall work to ensure that all security measures and credentials implemented are protected. SUBSCRIBER assumes all responsibility for documents submitted through unique credentials provided to SUBSCRIBER for the purposes of engaging in Electronic Recording. SUBSCRIBER shall be diligent in ensuring that documents submitted for Electronic Recording have been checked before submission, for errors, omissions, scanning defects, illegible areas, and other deformities that would impact the validity of the document. SUBSCRIBER acknowledges that Electronic Recording permits them to prepare, sign, and/or transmit in electronic formats documents and business records, and that the document or records shall be considered the "original" record of the transaction in substitution for, and with the same intended effect as paper documents, and that any digital or electronic signature has the same intended effect of paper documents bearing handwritten signatures. By use of electronic or digital certificates to sign documents, SUBSCRIBER intends to be bound by those electronic signatures affixed to any documents and such electronic signature shall have the same legal effect as if that signature was manually affixed to a paper version of the document. By use of the digital certificates to seal electronic files containing images of original documents or documents bearing manual signatures, SUBSCRIBER shall recognize such sealed images for all purposes as fully as the original paper documents and shall be responsible for any failure by Users to comply with quality control procedures for assuring the accuracy and completeness of the electronic files. Page 3 of 10 The SUBSCRIBER and/or its employees attest to the accuracy and completeness of the electronic records and acknowledge responsibility for the content of the documents submitted through the Electronic Recording Program. Should a dispute or legal action arise concerning an electronic transaction, CLERK will be held harmless and not liable for any damages. SUBSCRIBER is responsible for accepting receipt of documents recorded by CLERK and for ensuring that the source of the receipt is known to be CLERK. SUBSCRIBER is responsible for forwarding these documents to CLERK ensuring that the source of the documents is known to be the SUBSCRIBER who has been authenticated and that the documents to be recorded pass from SUBSCRIBER to CLERK without modification. SUBSCRIBER must maintain an audit trail of all activity available to CLERK upon request to resolve issues or investigate potential fraudulent activity. The audit trail must contain, at a minimum, submitter ID, submitted content at point of receipt from SUBSCRIBER, submitted content at point of delivery to CLERK, date and time submitted, size, and checksum. SUBSCRIBER is responsible for supporting any technical issues associated with Electronic Recording. SUBSCRIBER shall work, in good faith, with third party electronic service provider and CLERKto resolve issue with the Electronic Recording process. SUBSCRIBER shall provide end user support to both third party electronic recording service provider a n d CLERK through which problems or issues can be reported and addressed. In the event that problem is determined to be with the Electronic Recording software and not the infrastructure provided, the SUBSCRIBER shall work to resolve issues with CLERK and third party electronic recording service provider. SUBSCRIBER is solely responsible for any and all costs of the system or services that enable SUBSCRIBER to meet the Electronic Recording Program requirements. SUBSCRIBER is responsible for coordinating all technical problems and issues through CLERK. General Understandings CLERK will not incur any liability for the information electronically transmitted by the SUBSCRIBER to CLERK. CLERK will incur any liability for any breach of security, fraud, or deceit as a result of Electronic Recording. Neither CLERK nor SUBSCRIBER shall be liable for any special, incidental, exemplary, or consequential damages arising from or as a result of any delay, omission, or error in the Electronic Recording transmission or receipt. Page 4 of 10 CLERK and SUBSCRIBER will attempt in good faith to resolve any controversy or claim arising out of or relating to Electronic Recording through either negotiation or mediation prior to initiating litigation. Either party may terminate this Memorandum of Understanding for any reason by providing 30 days written notice of termination. CLERK and SUBSCRIBER acknowledge that the Electronic Recording process is an emerging technology and that State and National standards will continue to evolve. Agreed and Accepted: TARRANT COUNTY CLERK SUBSCRIBER Mary Louise Nicholson, Tarrant County Clerk Subscriber Representative Date: Date: APPROVED AS TO FORM (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 see review from independent counsel.) Criminal District Attorney's Office Date: Page 5 of 10 Attachment A Technical Specifications Format of the Transmitted File Property Records Industry Association (PRIA) file format standard will be used. Images will be in multi -page Group IV TIFF format. CUSTOMER can work with third party electronic recording service provider and COUNTY to provide additional fields (extensions) to the current PRIA standard. Communications Protocol and Options TCP/IP, HTTP, and HTTPS Security Framework Encryption will be 128 bit file and image encryption. SSL and user login/password will be employed. User passwords will be changed on a quarterly basis. Returned File Format PRIA file format standard will be used. Images will be in multi -page Group IV TIFF format. Levels of Electronic Recording Supported Level 2 and 3 Electronic Signatures and Use of Digital Certificates The use of Electronic or Digital signatures, notary seals, and notary signatures are supported but are not required. SUBSCRIBER must work with the CLERK to accommodate their use. Digitized signatures, notary signatures, and notary seals are immediately acceptable. Imaging Standard Minimum 2" margin at top page Documents will be scanned at a minimum of 300dpi. Documents will be scanned in portrait mode. Plats will be scanned at 300dpi, or higher. Plats will be scanned in landscape mode. All images will be captured as multi -page GROUP IV TIFF images. Images will be legible. Legible in this instance means a clear, readable image — including signature and notary seals — and in which all portions of each page are captured. Document font size must meet PRIA minimum standards. Page 6 of 10 Attachment B Documents and Indexing Specifications Documents shall be accepted for filing according to the provision of Texas law and PRIA standards. Notary Requirements per Document It is the responsibility of the SUBSCRIBER to confirm that original notary signatures and seals are present on all documents that require them. Inked notary seals of a scannable color are strongly recommended, in place of embossed notary seals which require "darkening" by the SUBSCRIBER prior to submittal. Eligible Document Batches In no event will electronic document batches exceed 25 documents in any batch. Indexing Requirement Company Name must be indexed in the Returnee field. Notary Name must be indexed in the Notary field. Rejection Comments back to Customer Any documents rejected will have a comment/reason field completed. These comments must be sent to the customer in their entirety in an effort to eliminate unnecessary phone calls between the customer and the Recording Division. Page 7 of 10 Attachment C Service Offering Hours of Operation Documents may be submitted at any time during the week. Documents will only be processed on those days and hours that the CLERK Recording Office is open to the public for business. Documents will not be processed on county holidays, weekends, "snow days", on days on which the county is closed to due emergency public necessity, etc., or in the event of network or equipment failure. CLERK will attempt to notify SUBSCRIBER of any disruption in service if known in advance. Processing Schedules Documents received prior to 3:00 PM CST will be processed the same business day. Documents received after 3:00 PM CST may be processed the next working day. Turnaround Timeframe Documents received prior to the times listed above will be processed (accepted or rejected) the same business day. Alternate Delivery Options There are no other electronic delivery options at this time. Traditional recording methods are available. Return to Options Submitted documents that are accepted for recording will be provided to SUBSCRIBER in electronic format after acceptance. Confirmation of acceptance and recordation will be provided to SUBSCRIBER in electronic format after recordation is complete. This confirmation will include the document image and CLERK indexing data. CLERK reserves the right to make changes to the index at a later date. Submitted documents that are rejected will be returned to SUBSCRIBER in electronic format after rejection, along with a description of the reason(s) for rejection. Page 8 of 10 Attachment D Payment Options Payment Options SUBSCRIBER initiated ACH or Escrow Account. Account Setup Procedures Upon execution of the MOU, SUBSCRIBER must contact the County Clerk Accounting department a t 817-884-2580 to setup an account. CLERK will provide electronic ACH or Escrow deposit instructions necessary for funds settlement. Account must be in place in advance of any Electronic Recording submissions. Payments SUBSCRIBER agrees to settle account the same day Electronic Recordings are submitted by established Escrow Account or by sending one payment via ACH to the designated CLERK bank account. Account settlement will be for the full amount of daily Electronic Recordings. SUBSCRIBER will provide CLERK with fiscal documentation to support each payment in electronic format at time of daily settlement. Fiscal documentation must contain the document number, document date and document amount for each transaction associated with the payment. Reporting and Reconciliation Electronically Recorded documents will not be accepted if prior day's ACH settlement is not complete. CLERK will be responsible for maintaining and reconciling CLERK records. SUBSCRIBER will be responsible for submitting account information with each document batch and for reconciling SUBSCRIBER records. Exception Handling Discrepancies in fees discovered by CLERK after document acceptance will be corrected by CLERK within five county business days. SUBSCRIBER will be provided notification of the error. Page 9 of 10 Service Support Contact Information COUNTY CLERK RECORDING CONTACT: Manager, Recording and Records Preservation Michelle Moore (817) 884-1061 Email: MMoore(@tarrantcountv.com Terri Bates (817) 884-1060 Email: TJBatesl@tarrantcounty.com Alternate email: CountyClerk--ERecording@tarrantcounty.com ELECTRONIC RECORDING SERVICE PROVIDER: Kofile, Inc. 6300 Cedar Springs Dallas, TX 75235 Customer Care: 888-608-1808 Support email: gssupport@kofile.us SUBSCRIBER BUSINESS CONTACT: Subscriber Name Contact Public Works/Engineering Name Lorna Gibson Telephone 817-410-3139 Alt Telephone 817-410-3135 Email Igibson@grapevinetexas.gov SUBSCRIBER TECHNICAL CONTACT: Subscriber Name Public Works/Engineering Contact Name Suja Joseph Telephone 817-410-3386 Alt Telephone 817-410-3135 Email sioseph(o)grapevinetexas.gov Any changes to the above Subscriber contacts, must be provided to the Tarrant County Clerk Recording contacts within 10 business days. Page 10 of 10