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Res 078-87 5/5/1987RESOLUTION NO. 21-/77 RESOLUTION APPROVING A CONTRACT WITH THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT FOR COLLECTION OF TAXES . WHEREAS, for many years the City of Wichita Falls and the Wichita Falls Independent School District have had contracts whereby the City collected taxes for the School District; and, WHEREAS, the two parties desire to make certain changes in the contract under which they are now operating, and it appears that the best way to do this is to enter into a new contract. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: That certain contract, a copy of which is attached hereto, between the City and the Wichita Falls Independent School District, whereby the City Assessor and Collector of Taxes shall act as an agent and instrumentality for collecting taxes for the Wichita Falls Independent School District, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls . PASSED AND APPROVED this the 5th day of May, 198 ' . 1011 / a M A Y O R MgrA ATTEST: City Clerk j /L 71-B7, 5 I7 44 . RcCEIvED IN CITY CLERKS OFFICE 47-p724-L cie 4/L(2y Date THE STATE OF TEXAS 2,2,,,a2 3 /G By f Tiftrti-nt-r_ MEN BY THESE PRESENTS: COUNTY OF WICHITA THAT THIS CONTRACT AND AGREEMENT MADE AND ENTERED INTO BY AND BETWEEN THE CITY OF WICHITA FALLS, A MUNICIPAL CORPORATION,AND THE BOARD OF TRUSTEES OF THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT. WITNESSETH: I . IT IS AGREED BY THE PARTIES HERETO THAT THE CITY ASSESSOR AND COLLECTOR SHALL ACT AS AN AGENT AND INSTRUMENTALITY FOR COLLECTING THE TAXES FOR THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT AND SHALL PERFORM ALL THE DUTIES IMPOSED AND POSSESS ALL THE POWER AND AUTHORITY GRANTED BY THE STATUTES OF THE STATE OF TEXAS,FOR COLLECTING SCHOOL TAXES OF WICHITA FALLS INDEPENDENT SCHOOL DISTRICT. II . IT IS FURTHER AGREED THAT AS CONSIDERATION FOR THE SERVICES HEREIN PROVIDED BY SAID CITY,THE DISTRICT SHALL PAY TO THE CITY FIFTY PERCENT(50Y ) OF THE TOTAL DIRECT AND INDIRECT COSTS TO COLLECT TAXES FOR THE CITY AND SCHOOL DISTRICT TO BE COMPUTED AS FOLLOWS: 1 ) AS DIRECT COSTS,THE TOTAL APPROVED BUDGET FOR THE CITY TAX COLLECTION OFFICE. 2) AS INDIRECT COSTS FOR ADMINISTRATION AND OVERHEAD SUPPORT-10% OF THE APPROVED BUDGET FOR THE CITY TAX COLLECTION OFFICE. 3) AS INDIRECT COSTS FOR DATA PROCESSING-6% OF THE TOTAL APPROVED BUDGET FOR THE CITY DATA PROCESSING DEPARTMENT. THE CITY WILL MAKE AVAILABLE TO THE SCHOOL DISTRICT THE PROPOSED BUDGETS AS DESCRIBED ABOVE AND THE FINAL BUDGETS AS APPROVED BY CITY COUNCIL.THE CITY WILL INVOICE THE DISTRICT AND ACCORDINGLY THE DISTRICT SHALL THEN MAKE FOUR EQUAL INSTALLMENTS OF THE TOTAL AMOUNT DUE BEGINNING ON NOVEMEBER 10 OF EACH YEAR AND ENDING ON FEBRUARY 10 OF EACH YEAR. III . THE CITY OF WICHITA FALLS AGREES TO MAINTAIN THE RECORDS AND LEDGERS OF THE TAX OFFICE IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINICIPLES AND TO MAINTAIN ALL FORMS AND RECORDS REQUIRED BY THE TEXAS STATE PROPERTY TAX CODE IN SUCH A MANNER THAT ALL TAXES ASSESSED AND COLLECTED MAY BE IDENTIFIED.THE CIT`( FURTHER AGREES TO PROVIDE MONTHLY REPORTS TO THE DISTRICT SHOWING THE AMOUNT OF TAXES,PENALTY, AND INTEREST COLLECTED BY THE CITY TAX OFFICE FOR THE DISTRICT. IV. IT IS AGREED AND UNDERSTOOD THAT THE WICHITA FALLS SCHOOL BOARD IS RESPONSIBLE FOR THE SETTING OF THE TAX RATE FOR THE SCHOOL AND THAT THE CITY HAS NO AUTHORITY IN THIS REGARD . V. IT IS AGREED THAT THE SAID CITY ASSESSOR/COLLECTOR SHALL FURNISH A BOND IN THE STATUTORY AMOUNT OF $ 25,000.00 OR SUCH GREATER AMOUNT AS MAY BE SUBSEQUENTLY REQUIRED BY LAW; SAID BOND TO BE PAYABLE TO THE BOARD OF TRUSTEES OF THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT,AND CONDITIONED THAT SAID COLLECTOR WILL FAITHFULLY COLLECT THE TAXES DUE FOR THE DISTRICT IN ACCORDANCE WITH THE LAWS OF THE STATE AND SHALL PAY SAID COLLECTIONS OVER TO THE SCHOOL DISTRICT IN ACCORDANCE WITH THE TERMS SET OUT IN SECTION VI OF THIS AGREEMENT,AND WILL FAITHFULLY PERFORM THE DUTIES IMPOSED UPON HIM BY LAW AND THIS CONTRACT. SAID BOND SHALL COVER THE PERIOD FROM OCTOBER 1 TO SEPTEMBER 30 OF EACH YEAR THAT THIS CONTRACT IS IN EFFECT,AND SHALL BE EXECUTED BY AN APPROVED SURETY COMPANY ACCEPTABLE TO THE DISTRICT.THE COST OF SUCH BOND WILL PAID FOR BY THE DISTRICT. VI . IT IS AGREED THAT THE SAID CITY OF WICHITA FALLS TAX OFFICE WILL PAY TO THE SCHOOL DISTRICT OR ITS DEPOSITORY ALL COLLECTIONS AS FOLLOWS: 1 ) FOR CHECKS OF LESS THAN $100,000.00,THE CITY WILL TELEPHONE THE DISTRICT OF THE AMOUNT AS PROCESSED BY THE COMPUTER. THE DISTRICT WILL HAVE THE OPTION TO PICK UP THE CHECK OR INSTRUCT THE CITY TO MAIL THE CHECK. 2) THE CITY TAX OFFICE WILL NOTIFY THE SCHOOL DISTRICT BY TELEPHONE BY NOON OF THE DAY OF COMPUTER PROCESSING FOR ALL AMOUNTS IN EXCESS OF $ 100,000.00 AND WILL HAVE A CHECK PREPARED FOR THE DISTRICT TO PICK UP AND DEPOSIT. 3) DURING SLACK TAX COLLECTION PERIODS THE CITY MAY ACCUMULATE FUNDS TO THE MAXIMUM OF $ 10 ,000.00 BEFORE ISSUING A CHECK OTHERWISE, A CHECK IS TO BE WRITTEN DAILY BASED ON COMPUTER PROCESSING. 4) ALL AMOUNTS COLLECTED BY THE CITY OF WICHITA FALLS FOR THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT SHALL BE DEPOSITED INTO AN INTEREST BEARING ACCOUNT UNTIL THE TOTAL FUNDS CAN BE PROCESSED TO THE SCHOOL DISTRICT. ANNUALLY AFTER THE ACCOUNTING RECORDS OF THE CITY ARE CLOSED,THE CITY WILL DISBURSE TO THE DISTRICT THE DISTRICT'S SHARE OF THE INTEREST EARNED DURING THE YEAR,SAID SHARE TO BE DETERMINED BY THE RATIO OF DISTRICT COLLECTIONS COMPARED TO TOTAL COLLECTIONS. 5) ALL MONIES SHALL BE AVAILABLE BY NOON EACH DAY,WHEN PROCESSED BY THE COMPUTER FOR THE DATE OF COLLECTION. VII . IT IS AGREED THAT THE CITY MAY IN THE NAME OF SAID SCHOOL DISTRICT,BRING AND PROSECUTE ANY AND ALL SUITS WHICH MAY BE FOUND NECESSARY FOR THE COLLECTION OF SAID SCHOOL TAXES;BUT SAID CITY SHALL NOT HAVE THE POWER OR AUTHORITY TO COMPROMISE OR DISMISS WITHOUT FULL PAYMENT ANY SUITS INVOLVING SCHOOL TAXES WITHOUT FIRST OBTAINING THE CONSENT OF THE BOARD OF TRUSTEES OF THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT. VIII . ATTORNEY'S SERVICES FOR THE COLLECTION OF DELINQUENT TAXES SHALL BE PROVIDED BY A THIRD PARTY ATTORNEY SELECTED BY THE CITY. PROVIDED HOWEVER THAT ANY CONTRACT WITH SUCH ATTORNEY SHALL BE SUBJECT TO APPROVAL AND SIGNATURES OF BOTH THE CITY AND THE SCHOOL DISTRICT AND PROVIDED FURTHER THAT THE SCHOOL DISTRICT SHALL RETAIN THE RIGHT TO WITHDRAW ANY ACCOUNTS FROM SAID ATTORNEY AND PLACE THEM WITH ANY ATTORNEY SELECTED BY THE SCHOOL DISTRICT. IX . THIS CONTRACT AND AGREEMENT CREATES AN AGENCY RELATIONSHIP ONLY, AND IS NOT TO BE CONSTRUED AS THE FORMAL APPOINTMENT OF THE CITY TAX ASSESSOR/COLLECTOR AS THE TAX COLLECTOR FOR THE WICHITA FALLS INDEPENDENT SCHOOL DISTRICT. X . IT IS AGREED THAT THE DISTRICT RESERVES THE RIGHT TO HAVE THE BOOKS OF THE CITY TAX OFFICE REFLECTING THE DISTRICT'S ACCOUNTS AUDITED AT ANY TIME UPON REASONABLE NOTICE. XI . IT IS AGREED THAT THE CITY TAX OFFICE WILL BE ALLOWED TO ENTER INTO AGREEMENTS WITH TAXPAYERS FOR THE PAYMENT OF DELINQUENT TAXES OVER A PERIOD OF TIME AS PRESCRIBED IN THE TEXAS PROPERTY TAX CODE. SUCH INSTALLMENT PAYMENT OF TAXES SHALL BE DESTRIBUTED AMONG THE TAXING UNITS IN ACCORDANCE WITH THEIR PRORATA SHARE OF THE TAXES DUE AS REFLECTED BY THE RECORDS OF THE CITY TAX OFFICE. XII . IT IS AGREED THAT THIS CONTRACT SHALL BECOME EFFECTIVE ON THE FIRST DAY OF OCTOBER,A.D. , 1986,AND SHALL BE AND REMAIN IN FORCE UNTIL THE EXPIRATION OF THE 30TH DAY OF SEPTEMBER, 1987. THEREAFTER THIS CONTRACT SHALL BE RENEWABLE AUTOMATICALLY FOR A LIKE PERIOD OF TIME ON A YEAR- TO-YEAR BASIS UNLESS EITHER PARTY GIVES WRITTEN NOTICE OF INTENTION TO TERMINATE AT LEAST 30 DAYS BEFORE EXPIRATION. PROVIDED,THAT IF AT ANY TIME,EITFIER OF THESE CONTRACTING PARTIES SHALL FAIL TO COMPLY WITH THEIR OBLIGATIONS HEREUNDER,THE PARTY SO AGGREIVED SHALL GIVE THE DEFAULTING PARTY WRITTEN NOTICE OF ITS NONCOMPLIANCE WITH THE TERMS OF THIS CONTRACT,AND SUCH DEFAULTING PARTY SHALL HAVE THIRTY(30 ) DAYS IN WHICH TO CORRECT THE NON-COMPLIANCE. IN TESTIMONY WHEREOF THE PARTIES HERETO HAVE EXECUTED THIS INSTRUMENT IN DUPLICATE,THIS /.6 DAY OF fx2YA A.D. 1982 . i CITY' OF WI ITA F= LS BY 494/ 1 / -- C TY M;' AGER f '/ATTEST: Rk r WICHITA FALLS INDEPENDENT SCHOOL DISTRICT BY: 1-4_, PRESI ENT OF BOAR OF EDUCATION ATTEST: 7AL.114-04: SECRETARY,BOARD OF -DUCATION WICHITA FALLS INDEPENDENT SCHOOL DISTRICT iZt L V /1 c mi >nof 4 /SY- 17 cg