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HomeMy WebLinkAboutItem 09 - Interlocal Agreement with GCISDMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL 1 FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: DECEMBER 2, 2014 SUBJECT: INTERLOCAL AGREEMENT BETWEEN CITY OF GRAPEVINE AND GRAPEVINE COLLEYVILLE INDEPENDENT SCHOOL DISTRICT (GCISD) FOR TAX COLLECTION SERVICES RECOMMENDATION: City Council to consider approval of an Interlocal Agreement with Grapevine Colleyville Independent School District (GCISD) to assess and collect the City's current and delinquent taxes. FUNDING SOURCE: In accordance with the proposed Interlocal Cooperative Agreement with GCISD; the City will compensate GCISD for the City's portion of the costs of assessing and collecting said taxes on a "Per account" basis. The Tax assessors operating costs shall include all salaries, supplies, tax software and maintenance, bonding fees and other miscellaneous costs attributed directly to the tax office. The annual estimated tax collection charges are submitted to the City by May 31 each year prior to the tax year beginning October 1. These annual fees are budgeted each year in account 100-44535-105-2. Mem The City of Grapevine has been contracting with GCISD, since January 1980, to assess and collect the City's current and delinquent taxes; perform other related tax services that include monthly tax revenue reports; assisting with the annual Effective Tax Rate Worksheet and Notice of Annual Proposed Property Tax Rate. Staff recommends approval. 21, 2014 (1:54PM) STATE OF TEXAS This Agreement is made and entered into by and between the City of Grapevine, a Texas home -rule municipal corporation located in Tarrant County (hereinafter referred to as "GRAPEVINE"), and Grapevine-Colleyville Independent School District, also located in Tarrant County (hereinafter referred to as "GCISD"), both of which may be referred to herein collectively as the "Parties". WHEREAS, the Texas Government Code Chapter 791 permits agreements between political subdivisions to provide governmental functions and services; and WHEREAS, the Parties wish to increase their efficiency and effectiveness by contracting with one another to provide services; NOW, THEREFORE, GRAPEVINE and GCISD do hereby contract, agree, and covenant for good and valuable consideration, the mutual promises and agreements made in the body of this agreement, as follows: The initial term of the agreement is for a term commencing January 1, 2015 and ending on December 31, 2015. This agreement shall be continued automatically for additional one (1) year terms for a period of ten (10) years or until termination by either party by giving sixty (60) days written notice to the other party. In the event the agreement is terminated prior to the end of a term, the compensation provided in Section III shall be provided through the date of termination. II. DUTIES OF PARTIES GCISD agrees to provide to GRAPEVINE, and GRAPEVINE agrees to pay for, the governmental functions and services as defined in Government Code Chapter 791 as the Parties may agree upon from time to time. Upon mutual agreement of a governmental function or service, an addendum will be attached hereunto that defines the nature and scope of services or functions, effective date, and termination date for that function or service. The addendum will also define the compensation GRAPEVINE will provide GCISD for that function or service as further defined in Section III. III. COMPENSATION GCISD may assess GRAPEVINE a fee for each function or service it provides in an amount that fairly compensates GCISD for the services or functions performed under this Agreement. IV. CURRENT REVENUE All payments, contributions, fees and disbursements to be paid by a Party hereunder shall be made from current revenues budgeted and available to said Party. V. NEGLIGENCE APPORTIONMENT In the event of negligence on the part of either Party, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any governmental immunity available to either party individually under Texas law. The provisions of this paragraph are solely for the benefit of the parties hereto and are not intended to create or grant any rights, contractual or otherwise, to any third person. VI. VENUE This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Any legal action or proceeding brought or maintained, directly or indirectly, as a result of this Agreement shall be heard and determined in Tarrant County, Texas EXECUTED this day of 2014 by the City of Grapevine. (Name) (Title) EXECUTED this day of 2014 by the Grapevine-Colleyville Independent School District. (Name) (Title) APPROVED AS TO FORM: Attorney for the City of Grapevine Attorney for Grapevine-Colleyville ISD ADDENDUM FOR TAX COLLECTION SERVICES 1. GCISD agrees that its Tax Assessor -Collector will assess and collect the city taxes for GRAPEVINE and perform all necessary services in assessments and collections of city taxes beginning with the 2014 tax year and subsequent years and for all delinquent tax accounts. 2. GRAPEVINE agrees to pay GCISD the cost of assessing and collecting said taxes on a percentage of parcels basis to be computed as follows: a. The operating costs shall include all salaries, supplies, tax software and maintenance, bonding fees and other miscellaneous costs attributed directly to the tax office. b. The percentage of the costs to be paid by GRAPEVINE shall be determined by the number of GRAPEVINE parcels divided by the total number of parcels for the GCISD, GRAPEVINE and the City of Colleyville. (GCISD also provides tax collection services for the City of Colleyville) C. The costs paid by GRAPEVINE shall be reduced by the amount of interest earned by GCISD in the Tax Clearing Account based on the same percentage of parcels used for costs. d. Any items agreed upon by GCISD and GRAPEVINE as being for the exclusive benefits of either entity shall be excluded from the total operating cost and charged to the entity receiving such exclusive benefit. The parties do hereby agree that legal fees incurred that are based on a percentage contingent fee contract with the attorney filing delinquent tax suits are for the exclusive benefit of each entity and shall be charged to each such entity receiving said exclusive benefit. e. The charges for tax collections shall be invoiced and paid quarterly. 3. The annual estimated tax collection charges will be submitted to the City by May 31 st each year prior to the tax year beginning October 1 St 4. The taxes collected by GCISD for GRAPEVINE shall be remitted monthly or more frequently depending on deposit activity in order to ensure coverage of refunds made at month-end. During the peak tax collection season (defined as the period of November 1St through March 1s) remittances will be made weekly or more frequently depending on deposits. Remittances may not be made when District offices are closed for Thanksgiving and Winter breaks. The City and its auditors shall have the right, upon giving reasonable notice, to review, inspect, copy and audit all of the District's books, records, ledgers, accounts, bank records and accounts and all other matters relating to this contract. The City shall have the right to make copies of all cards, files, rolls, accounts or statements pertaining to City accounts during the term of this agreement and for one year thereafter.