Contract - Travis County - 7/24/2014 fit'�t
AGREEMENT FOR ASSESSMENT AND COLLECTION SERVICES
BETWEEN TRAVIS COUNTY AND
CITY OF ROUND ROCK
This agreement ("Agreement") is between the County of Travis (the "County"), a
political subdivision of the State of Texas, the Travis County Attorney, and the City of
Round Rock (the "City"), a Texas home rule city, duly organized and existing under Texas
laws.
RECITALS
This Agreement's parties wish to consolidate the assessment and collection of property
taxes into one agency, the Tax Assessor/Collector of Travis County, except for those taxes
on property located outside of the County. This is done to eliminate duplication of services,
which promotes governmental efficiency. The parties intend that the County, through its
Tax Assessor/Collector, assess and collect the ad valorem property taxes owing to City and
that the Travis County Attorney represent the City in enforcing the taxes. This Agreement is
authorized by Texas Property Tax Code sections 6.23, 6.24 and 6.30, and by Texas
Government Code Chapter 791, which is known as the Interlocal Cooperation Act. Given
this, the parties mutually agree as follows:
1.0 Performance. County's assessment and collection of each year's property taxes will
begin not earlier than October 1 of the current tax year and will be completed not later than
September 30 of the following tax year, unless the County finds extension to be necessary.
2.0 Services to be Performed.
2.01 Assessment and Collection of Ad Valorem Property Taxes and Delinquent
Taxes. The County will assess and collect the ad valorem property taxes owing to
the City with regard to all properties on the City's tax roll, except for those
properties on the City's tax roll that are located outside of the County. The County
will also collect the delinquent taxes owing to the City, as this Agreement provides,
including enforcing the collection of the delinquent taxes, except for delinquent
taxes on properties locate outside of the County. The County, however, will handle
pending lawsuits for the collection of delinquent taxes on properties located outside
of Travis County as provided in this Agreement's subsection 9.02. For ad valorem
property taxes, including delinquent taxes that the County collects as specified in
this subsection the County further agrees to perform for the City all the duties
related to assessing and collecting taxes for the City that Texas law provides.
2.02 Performing Functions and Consolidated Tax Statements. For ad valorem
property taxes and delinquent taxes that the County collects for the City under this
Agreement, the County will perform all the functions set out in subsection 12.01. In
connection to that, the County agrees to prepare consolidated tax statements for each
taxpayer. The tax statement will include taxes owed to all taxing units to which the
00305931.DOC
R-2014-1612
taxpayer owes taxes, except those units that have not contracted with the County for
the assessment and collection of its taxes and except for taxes owed to the City on
properties located outside of the County. The County will mail the tax statements to
each taxpayer or authorized agent of property within the City that is covered under
this Agreement.
2.03 Tax Assessor/Collector for City. The City designates the Travis County Tax
Assessor-Collector as its tax assessor and tax collector for all purposes under the
Texas Tax Code, with respect to the collection of ad valorem taxes on property
within the City, except for property located outside of the County.
2.04 Copy of Tax Roll. The County will provide the City's governing body with a
copy of the tax roll for each year that this Agreement is in effect, with respect to ad
valorem property taxes that this Agreement covers.
3.0 Payment.
3.01 Amount of Payment. City agrees to pay the County the costs of performing the
services that this Agreement specifies. These costs will be allocated among the City
and the other taxing units contracting for assessment and collection services in the
same manner so that the City and each of the other taxing units pay the same rates
approved by the Travis County Commissioners Court.
3.01.01 For the 2014 tax year, the City will pay the rate approved by the
Travis County Commissioners Court in 2014, per parcel for all parcels
located in Travis County and on the City's tax roll; and, for each year
thereafter during this Agreement, the City will pay the rate approved by the
Travis County Commissioners Court for the tax year in question, per parcel
for all parcels located in Travis County and on the City's tax roll.
3.01.02 The County will notify the City in writing in subsequent years of
this Agreement of the amount that the City will pay to the County for
performing tax assessment and collection services under to this Agreement.
3.02 Method of Payment. The County will withhold from the remittances to the
City the amount of money necessary to pay for the cost of assessing and collecting
current taxes for the City, until the County has received the amount of payment
authorized under Subsection 3.01 above.
4.0 Remittance of Collection. The taxes collected for the City will be remitted to the City
daily, after the proper amount of payment authorized under Subsection 3.01 above and/or
taxpayer refunds have been withheld. Taxes collected will be remitted to the City on the
day after they are processed and credited by the County Tax Office, but no later than when
the taxes collected for the County have been remitted to the County Treasurer.
2
5.0 Delinquent Taxes.
5.01 Collection of Delinquent Taxes. Under Texas Property Tax Code section 6.24,
City authorizes the County, by and through the County's Tax Assessor/Collector, to
collect delinquent taxes covered by Subsection 2.01 of this Agreement, for City, as
the County deems necessary. In addition, the City authorizes the County, by and
through the County's Tax Assessor/Collector, to waive penalties and interest for the
City in delinquent tax cases where the County, by and through the County's Tax
Assessor/Collector, determines that Texas Property Tax Code section 33.011
requires or authorizes such waiver as advised by the Travis County Attorney's
Office.
5.02 Delinquent Tax Suits.
5.02.01 Under Texas Property Tax Code section 6.30, City authorizes the
Travis County Attorney's Office to institute delinquent tax suits for the
collection of delinquent taxes covered by Subsection 2.01 of this Agreement.
5.02.02 If the County chooses to have the Tax Office represented by a
private attorney, City agrees that the private attorney selected by the County
will also represent City in delinquent tax cases. City is not directly
responsible for compensation of the private attorney selected by the County,
although such attorney will receive compensation in accordance with the
Texas Property Tax Code for representing City in delinquent tax cases. If
City selects an attorney to represent it in delinquent tax cases, other than the
County Attorney or a private attorney selected by the County, City will
notify the County in writing of such fact at least thirty (30) days before
implementing such decision, in accordance with the notice provisions set
forth in Subsection 13.01 of this Agreement.
5.03 Costs, Expenses and Fees in Delinquent Tax Suits. All legal services rendered
by the Travis County Attorney will be included as part of the services to be
performed under this Agreement's terms and provisions, for the consideration given
by City under this Agreement, and for the costs, expenses, and fees recovered by
County under this Subsection. Under Texas Property Tax Code section 33.48, the
County, in collecting delinquent taxes for City, may recover, in addition to other
costs authorized by law, the following costs, expenses, and fees in a suit to collect a
delinquent tax:
5.03.01 All usual court costs, including the cost of serving process;
5.03.02 Costs of filing for record a notice of lis pendens against property;
3
5.03.03 Expenses of foreclosure sale;
5.03.04 Reasonable expenses that are incurred by the taxing unit in
determining the name, identity, and location of necessary parties and in
procuring necessary legal descriptions of property on which a delinquent tax
is due;
5.03.05 Attorney's fees in the amount of fifteen percent (15%) of the total
amount of taxes, penalties, and interest due City; and
5.03.06 Reasonable attorney ad litem fees approved by the Court that are
incurred in a suit in which the Court orders the appointment of an attorney to
represent the interests of a defendant served with process by means of
citation by publication or posting.
The costs, expenses, and fees recovered by the County under Texas Property Tax
Code section 33.48 will be payment to the County for the County's collection of
delinquent taxes for City under Subsection 2.01 of this Agreement; provided,
however, under sections 33.71, 33.72 and 33.73 of the Texas Property Tax Code,
the County, for collecting delinquent taxes for City under Subsection 2.01 of this
Agreement, may also recover the reasonable costs of a tax master for any tax suits
instituted by the County under this Agreement.
6.0 Administrative Provisions.
6.01 Books and Records. All expenses incurred by the County for the assessment
and collection of taxes under this Agreement will be clearly kept on the books and
records of the County. City or its designated representatives, upon written request
submitted to the Travis County Tax Assessor/Collector, are authorized to examine
the books and records to be kept by the County at such reasonable times and
intervals as City deems fit. Such books and records will be kept in the office of the
Travis County Tax Assessor/Collector.
6.02 Surety Bond. The County agrees to obtain a surety bond in the amount of
$100,000 for the Tax Assessor/Collector acting in his capacity as assessor/collector
for City as provided in this Agreement. City agrees to pay the premium for such
bond.
6.03 Change in Tax Rate. In case City's tax rate is rolled back or otherwise changed
after the County begins collections for City in any given year, the County will
continue to act for City in providing refunds to taxpayers or sending corrected
billing statements only if City assumes all additional costs of collection arising from
such rollback or other change in the tax rate. These costs will be the actual costs of
providing those extra services required by the rollback or other change in the tax
4
rate, and such costs will be withheld in the same manner as provided in Subsection
3.02 of this Agreement.
7.0 General Provisions.
7.01 Books and Records Held by City. City agrees to transfer to the possession and
control of the County, without charge, copies of all books and records necessary for
performing the County's duties and responsibilities under this Agreement. These
books and records will include all tax records, including existing tax rolls or other
records available to City.
7.02 Limit on Liability. The County will not be liable to City for any failure to
collect taxes under this Agreement; neither will the County Tax Assessor/Collector
be liable to City for any failure to collect taxes, unless the Tax Assessor/Collector's
failure to collect taxes results from his failure to perform the duties imposed upon
the Tax Assessor/Collector by law and by this Agreement. The Tax
Assessor/Collector, however,will not be liable to City for any failure to collect taxes
where his failure to perform duties imposed by law and by this Agreement arises out
of circumstances beyond his control.
7.03 Current Revenue Funds. Payments by the parties for services under this
Agreement will be made from current revenues available to the parties.
7.04 Agreement Voidable. For each year during the term of this Agreement, if City
has not established the tax rate as required by law for City and notified the Tax
Assessor/Collector accordingly within sixty (60) days after the Central Appraisal
District Appraisal Review Board has certified to City the assessed values on the
property in City, or by September 30, whichever is later, this Agreement becomes
voidable at the County's option. In the event County chooses to void this
Agreement, County will give written notice of such action to City, in accordance
with the notice provisions set forth in Subsection 13.01 of this Agreement.
7.05 Authorized Refunds. Authorized refunds to property owners will be made so
that each property owner receiving refunds will receive a single check covering all
refunds for all taxing units contracting for assessment and collection services,
except for any refunds applicable to property located outside of the County.
Refunds may become necessary because of changes that include late exemption
claims, clerical errors, overpayment, etc. Refunds from the City to the property
owners within the City, except for refunds applicable to property located outside of
the County, will be deducted from the collections and withheld from the City in the
same manner as provided in Subsection 3.02 of this Agreement; or, if no collections
are available, City will remit such refunds to the County within seven (7) days of
notification of such sums due. In accordance with Texas Property Tax Code section
5
31.11(a)(2)(B), the County is authorized to approve refunds not exceeding $2,500.
All refunds exceeding$2,500 must be approved by the City Council of the City.
8.0 Sovereign Immunity. By executing this Agreement, neither the County nor the City
waives or will be deemed to have waived any immunity or defense that would otherwise be
available to it against claims arising in the exercise of governmental powers and functions.
9.0 Termination.
9.01 Termination of Agreement. Unless the County declares this Agreement null
and void under Subsection 7.04, this Agreement will continue in full force and
effect from year to year until such time as either party terminates it by written notice
to the other party under Subsection 13.01 of this Agreement. But such termination
will be effective only if notice is given to the other party on or before July 1 of the
year in which the party intends this Agreement to terminate, and only if notice is
given at least thirty (30) days prior to the effective date of termination. However,
the City may, at its option, declare this Agreement null and void by giving written
notice from the City to the Tax Assessor/Collector, in accordance with the Notice
provisions set forth in Subsection 13.01 of this Agreement, in the event the County
chooses to have the Tax Office represented by a private attorney and the City does
not agree with the County's choice. If either party terminates this Agreement
according to this Agreement's terms, this Agreement will terminate in its entirety,
except as otherwise expressly provided by Subsection 9.02 below.
9.02 Pending Cases. In the event either party terminates this Agreement for any
reason, the County reserves the right to continue to handle pending cases for the
collection of delinquent taxes on properties located in the City, for a six (6) month
period following the effective date of termination. As used in this Subsection 9.02,
"Pending Cases" are cases where the City is the taxing unit and include the
following:
9.02.01 - Each case for which the County has sent a demand letter to the
delinquent taxpayer;
9.02.02 - Each delinquent tax suit filed in court or intervened in court by
County; or
9.02.03 - Each case in which the County and the delinquent taxpayer have
agreed that the delinquent taxpayer will pay the delinquent tax in partial
payments over a specified period of time.
9.03 Transfer. Upon the expiration of the six (6) month period specified in
Subsection 9.02 above,the County will transfer all remaining, pending cases to the
6
City's new legal representative, and upon such transfer, this Agreement will
terminate in its entirety.
10.0 Amendments. Any amendments, alterations, deletions or waiver of the provisions of
this Agreement will be valid only when expressed in writing and agreed to by official action
of the governing bodies of both parties, and will be effective only if they do not adversely
affect the prompt fulfillment of contract obligations. However, in the performance of
services under this Agreement, the County, the County Tax Assessor/Collector, and/or the
County Attorney's Office may institute changes,as required or authorized by applicable law.
11.0 Regulations and Laws. This Agreement will be governed, interpreted, construed,
and enforced in accordance with all applicable laws of the United States of America and
the State of Texas (statutory law, case law, rules and regulations), including the provisions
of the Texas Property Tax Code.
12.0 Definitions.
12.01 Assessment and Collection. For purposes of this Agreement, the terms
"assessment" and "collection" will include the following:
12.01.01 Calculation of tax;
12.01.02 Preparation of tax rolls;
12.01.03 Proration of taxes;
12.01.04 Correction of clerical errors in tax rolls;
12.01.05 Collection of tax liabilities;and
12.01.06 Issuance of refunds and calculation of an effective tax rate as
required by Texas Property Tax Code section 26.04, for the years covered by
this Agreement.
The term "assessment" does not include those functions defined as "appraisal" by
the Texas Property Tax Code.
12.02 Current Taxes. For purposes of this Agreement, the term "current taxes"
includes only those taxes legally due and payable without penalty and interest.
12.03 Delinquent Taxes. For purposes of this Agreement, the term "delinquent
taxes" includes any taxes that have not been received by the County on or before
January 31 of any given tax year and on which penalty and interest are due.
7
12.04 Tax Year. For purposes of this Agreement, the term "tax year" refers to the
twelve (12) month period that runs from October 1 of one year through
September 30 of the following year.
13.0 Miscellaneous Provisions.
13.01 Notice. Except as otherwise provided in this Agreement, all notice required
or permitted under this Agreement will be in writing and will be hand delivered or
sent by certified or registered mail, postage prepaid, return receipt requested. For
purposes of sending notice under this Agreement, the address of the County is:
Honorable Bruce Elfant (or his successor), Travis County Tax Assessor/Collector,
5501 Airport Boulevard, Austin, Texas 78751. For purposes of sending notice
under this Agreement, the address of the City is: The City of Round Rock C/O
Stephan L. Sheets (or his successor) at Sheets & Crossfield, P.C.; 309 E. Main St.;
Round Rock, Texas 78664. Either party may change its address by giving written
notice as provided in this subsection or by notifying the City and all other entities by
a general mass mail-out. In the case of notice sent by registered or certified mail,
notice will be deemed effective three days after deposit in a United States mailbox
or a United States post office. In the case of notice made by hand delivery, notice
will be deemed effective immediately. This Section does not preclude the County
Tax Assessor/Collector from providing the City and all other entities general notice
concerning the Tax Assessment and Collection Agreements or any related matter
through general mass mail-outs by regular mail.
13.02 Parties Bound. This Agreement is binding upon the parties to it and their
executors,heirs, legal representatives, successors, and assigns.
13.03 Copies. This Agreement is executed in multiple copies, any one of which is
a true copy, having the same evidentiary value.
13.04 Integration. This represents the entire Agreement and supersedes all prior
agreements and negotiations, either written or oral, between the parties relating to
the subject matter here.
13.05 Severability. The provisions of this Agreement are severable. If any
paragraph, section, subsection, sentence, clause, or phrase of this Agreement is held
by a court of competent jurisdiction, for any reason, to be invalid, illegal, or
unenforceable, such invalidity, illegality, or unenforceability will not affect the
remaining provisions of this Agreement. If such an event occurs, however, either
party may terminate this Agreement by providing written notice of termination to
the other party under Subsections 9.0 and 13.01.
13.06 Venue. All obligations and undertakings under this Agreement are fully
performable in Travis County, Texas. Venue for any dispute arising out of this
8
Agreement will lie in the courts of appropriate jurisdiction in Travis County, Texas
exclusively.
13.07 Effective Date. This Agreement will take effect on the date this Agreement
is approved by the Travis County Commissioners Court.
13.08 Titles, Headings and Subheadings. The titles, headings, and subheadings set
forth in this Agreement are intended for the convenience of the parties and are not
intended for use in the construction or interpretation of the provisions contained in
it.
13.09 Gender and Number. As used in this Agreement, unless the context
indicates otherwise, a masculine, feminine, or neuter gender include the other, and
the singular or plural number include the other.
13.10 Instruments. Each party agrees that it will execute, in a timely manner, all
instruments and documents needed to implement this Agreement's terms,
conditions, and provisions, or that are needed for the other party's performance of
its duties and responsibilities under this Agreement.
EXECUTED in triplicate by the County of Travis and by the City of Round Rock, on this
the 2411-day of July, 2014.
CITY OF ROUND ROCK
By: \-.L..)1.16_ I^ ,
meft4C7:4=_
dM,ayv►c* fltv-1eii
Date: �•Z-1 •�
Appr.v-d as to form:
Stephan X. Sheets, City Attorney
9
TRAVIS COUNTY,TEXAS
By: _,„.„(;&44. 4-444.;(2_
Honorable Samuel T. Biscoe
Travis County Judge
Date: 8 ' l4 "
y:
•iliott Beck
Assistant County Attorney
For: David Escamilla
Travis County Attorney
Date: Ad u5'f' c a a)l �{
10