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1994-113-RES WHEREAS, the City of Paris has need for tax assessment and collection services and the LAMAR COUNTY RESOLUTION NO. 94-113 WHEREAS, the City of Paris has need for tax assessment and collection services and the LAMAR COUNTY APPRAISAL DISTRICT has made a proposal for said services; and, WHEREAS, it is deemed to be in the best interest of the City of Paris that such Contract for Assessment And Collection Service in the form of Exhibit A attached hereto and made a part hereof be approved; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, that the proposal of the LAMAR COUNTY APPRAISAL DISTRICT for tax assessment and collection services described in Exhibit A attached hereto, be, and the same is hereby, accepted; and, BE IT FURTHER RESOLVED, that the Mayor of the City of Paris, Don Shelton, be, and he is hereby, authorized and directed on behalf of the City of Paris to execute the Contract For Assessment and Collection Service between the City of Paris and LAMAR COUNTY APPRAISAL DISTRICT, attached hereto as Exhibit A. PASSED AND ADOPTED this 12th day of September, 1994. )/~~ Don Shelton, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: J~A T. K. Haynes, City Attorney CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE STATE OF TEXAS } COUNTY OF LAMAR } THAT, the City of Paris, Paris, Texas, acting by and through its Mayor, Don Shelton, duly authorized, hereinafter called CITY and Lamar County Appraisal District, acting by and through its Chairman, Alan Weatherford, duly authorized, hereinafter called LCAD do hereby contract and agree as follows: 1. PURPOSE Pursuant to the authority granted by Section 6.24, Texas Property Tax Code, and V.T.C.A. Government Code Chpt. 791, the parties agree that LCAD will assess and collect ad valorem taxes on behalf of CITY, according to the terms and conditions recited herein. KNOW ALL MEN BY THESE PRESENTS: 2. TERMS I) This contract shall become effective on the 1st day of October, 1994, and shall continue in full force for each fiscal year thereafter and remain in effect until such time as either party delivers written notice of termination, such notice to be given no later than July I of the calendar year in which the contract is to terminate, said fiscal year shall begin on the 1st day of October and end on the 31st day of September. 2) In the event of expiration of this contract, LCAD shall furnish to CITY duplicates of all records kept in connection with the collection of CITY's ad valorem taxes, so as to enable CITY to proceed to collect those taxes and applicable penalties, interest and costs. Such records information to be delivered to CITY no later than the 1st day of August of the year of termination and LCAD will continue to update such information as such becomes available through the last day of such termination fiscal year. CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE - Page I EXHIBIT A 3. SERVICES TO BE PERFORMED I) LCAD agrees to prepare and timely mail all tax statements; provide monthly collection report to CITY; prepare tax certificates; develop and maintain current and delinquent tax rolls for CITY; and develop and maintain such other records and forms as are necessary or required by Law or State rules and regulations. LCAD agrees to make available to the CITY full information about the operation of LCAD and to promptly furnish written reports reasonably necessary to keep the CITY advised of all financial information affecting it. 2) CITY agrees to promptly notify LCAD of the adoption of any exemption not automatically imposed by the Law. Further, CITY will promptly notify LCAD of the adoption of any other provision under Law which would affect the assessment or collection of taxes for CITY. 3) The parties agree that the LCAD shall adopt CITY policy of not allowing a discount for early tax payment or the split payment of taxes. The parties further agree, and CITY expressly approves that the Chief Appraiser, in his capacity as tax collector for CITY, may adopt a policy of accepting partial payments of ad valorem taxes. Such policy shall include a provision to accept payment of taxes imposed on a property by a taxing unit separate from taxes imposed on that property by any other taxing unit that contracts with LCAD for collection services. Such policy shall also include a provision to accept partial payments of property taxes under the following conditions; (I) the property taxes are delinquent; (2) the property owner can prove financial inability to pay the taxes in full; and (3) the property owner enters into a payment agreement with LCAD. CONTRACT FOR ASSESSMENT AND COLLECI'JON SERVICE. Pase 2 4. DEPOSIT OF COLLECTION RECEIPTS I) The taxes collected and receipted by LCAD for CITY shall be deposited by LCAD into a depository and account designated in writing by CITY. Such deposits shall be made three times per week during the term of this contract or any extension thereof. 5. DELINOUENT TAX COLLECTIONS 1) CITY agrees to deliver or make available to LCAD all delinquent tax records necessary for the performance of the assessment and collection duties herein specified. CITY herein expressly agrees to assume all costs required to furnish such records. 2) The parties agree that CITY shall retain authority to contract with legal council to enforce the collection of delinquent ad valorem taxes for CITY's delinquent accounts. The parties further agree that the CITY's legal council shall have responsibility for all enforced delinquent collections including but not limited to foreclosure of tax liens, judgment and sale of property. 3) LCAD shall make the delinquent tax records available to CITY's delinquent tax collection attorney on or before July I of each year this contract remains in affect. All costs associated with records transmitted and enforced delinquent collection shall be payable by the delinquent tax collection attorney. 4) Fees payable to the delinquent tax collection attorney, as provided by Section 33.07 and 33.48, Texas Property Tax Code, as amended, shall be payable by CITY with all bills for delinquent tax collection attorney's fees being submitted to CITY for payment. CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE _ Pale 3 6. REFUNDS LCAD shall provide periodic reports of all refunds issued on behalf of CITY. CITY herein expressly grants LCAD authority to designate an "auditor" for the purpose of functions described under Section 31.11, Texas Property Tax Code and authorize LCAD to make refunds in amounts not to exceed $500.00. CITY shall retain authority to approve refunds in amounts that exceed $500.00. 7. PAYMENTS I) CITY shall make payments to LCAD for the performance of the services specified herein in accordance with EXHIBIT" A " attached hereto. Payment, for all years this contract remains in effect, shall be made in four equal payments to be made at the end of each calendar quarter, and the first payment shall be made before the first day of the fiscal year in which the budget takes effect. 2) In the event that payments received in anyone year exceed the actual cost of providing services pursuant to this contract, LCAD shall either reimburse CITY or credit future payments to be made by CITY to the extent of excess funds. 3) Reimbursements or credits shall be distributed in the same pro rata share as payments were made in the year in which payments exceed actual costs. 4) The parties agree that other taxing units may contract with LCAD for tax collection services. The parties further agree that costs shall be allocated to participating taxing units on a per current collection account basis. 5) Should CITY fail to adopt its tax rate by August 31st of the tax year or if CITY's adopted tax rate is rolled back, any additional costs that may be incurred by LCAD shall be strictly accounted for by LCAD and shall be payable by CITY upon CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE - Pase 4 submission of the accounting by LCAD. Additional costs may include but are not limited to, additional publications, notices, late or separate tax bill processing, issuance of corrected tax bills, tax refunds, or any other required functions. 8. BUDGET ADOPTION Each year, LCAD shall prepare a proposed collection budget for the following year and must submit a copy of the proposed collection budget to the presiding officer of the CITY on or before June 15. LCAD shall hold a public hearing to consider the budget and shall deliver written notice of the date, the time and place of the hearing not later than the 10th day before the date of the hearing. LCAD shall complete its hearing and finally approve a budget before August 15. If governing bodies of a majority of the taxing units participating in a collection contract with LCAD adopt resolutions disapproving a budget and file them with LCAD within thirty (30) days after its adoption, the budget does not take effect and LCAD shall adopt a new budget within thirty (30) days of the disapproval. 9. BONDING LCAD agrees to provide a surety bond covering LCAD's Chief Appraiser, acting in his capacity as tax assessor-collector for CITY, and all employees of LCAD engaged in the collection, receiving and disbursement of moneys on behalf of CITY, securing their faithful performance of their duties. Said bond shall be in an amount of at least $100,000.00. 10. AUDIT LCAD shall provide for an annual independent audit of its expenditures and of taxes collected as provided by this contract. Such accountant shall be authorized and directed to report directly to CITY's governing body. CONTRACT FOR ASSESSMENT AND COLLECTION SERVICE - Pase .5 11. NO LIABILITY CLAUSE LCAD shall not be liable to CITY because of any failure to collect taxes nor shall the Chief Appraiser be liable unless the failure to collect results from a failure on his part to perform, in good faith, the duties imposed upon him by Law or by this contract. Also, there shall be no liability of LCAD to CITY for any of its actions unless said actions involve collusion, fraud, malfeasance, or gross negligence. 12. NOTICES Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have bene duly served if either (I) delivered in person to the designated representative of the party for whom it is intended, or (2) deposited first class mail, postage prepaid in the United States mail, addressed to the respective parties, as indicated below: LCAD CITY Joe Welch Chief Appraiser Lamar County Appraisal District P. O. Box 400 Paris, TX 75460 W. E. Anderson Assessor/Collector City of Paris 119 N. Main Street Paris, Texas 75460 13. SEVERABILITY If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of said Agreement are declared to be severable. C'ONTRAC'T FOR ASSESSMENT AND COLLECTION SERVICE - Page 6 14. RELATIONSHIP OF PARTIES Nothing contained in this Agreement shall be deemed or construed to create the relationship of principal and agent, partnership, joint venture, landlord and tenant, or any relationship or association whatsoever between CITY and LCAD, other than as expressly set forth herein. THIS AGREEMENT is executed this 12th day of September, 1994, pursuant to enabling resolution adopted by the governing body of each party. CITY OF PARIS, PARIS, TEXAS ATTEST: Don Shelton, Mayor Mattie Cunningham, City Clerk APPROVED AS TO FORM: T. K. Haynes, City Attorney LAMAR COUNTY APPRAISAL DISTRICT Alan Weatherford, Chairman ATTEST: Bobby Smallwood, Secretary CONTRACT FOR ASSESSMENT AND COLLECfION SERVICE - hAc 7