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HomeMy WebLinkAbout033814 RES - 12/09/2025Resolution authorizing execution of an Interlocal Cooperation Agreement with Nueces County for Property Assessment and Collection for Whitecap Public Improvement District No. 1. Whereas, the Whitecap Public Improvement District No. 1 ("Whitecap PID No. 1") requires the administration of property tax assessments, mailing of statements, and the collection of assessments on an annual basis; Whereas, Nueces County, through its elected Tax Assessor -Collector, serves as the consolidated tax assessing and collection entity for local taxing jurisdictions and districts; Whereas, Chapter 791 of the Local Government Code allows the City of Corpus Christi ("City"), acting for the benefit of Whitecap PID No. 1, to enter into an interlocal cooperation agreement with Nueces County for the efficient and effective administration of the necessary services in exchange for the payment of a per parcel fee to be paid from collected revenues of the district; and Whereas, the City desires to secure the services of Nueces County. Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: Section 1. The City Manager, or his designee, is authorized to execute an Interlocal Cooperation Agreement with Nueces County for Property Assessment and Collection for Whitecap Public Improvement District No. 1. A copy of the Interlocal Cooperation Agreement is attached as ExhibitAto this resolution and is incorporated by reference as if fully set out here in its entirety. PASSED and APPROVED on the Paulette Guajardo Mayor City Secretary day of draS2.0\W , 2025. ATTEST: Rebecca Huerta SCANNED 033 814 EXHIBITA INTERLOCAL COOPERATION AGREEMENT WHITECAP PUBLIC IMPROVEMENT DISTRICT NO. 1 STATE OF TEXAS § COUNTY OF NUECES § INTERLOCAL COOPERATION AGREEMENT FOR PROPERTY ASSESSMENT AND COLLECTION BETWEEN THE CITY OF CORPUS CHRISTI AND NUECES COUNTY WHITECAP PUBLIC IMPROVEMENT DISTRICT NO. 1 This agreement ("Agreement") is made and entered into by and between the CITY OF CORPUS CHRISTI, a home -rule municipal corporation and political subdivision of the State of Texas ("CITY"), and NUECES COUNTY, also a political subdivision of the State of Texas ("COUNTY"). RECITALS WHEREAS, CITY and COUNTY mutually desire to be subject to the provisions of Texas Government Code, Chapter 791, the Interlocal Cooperation Act; WHEREAS, pursuant to Chapter 372 of the Texas Local Government Code, Subchapter A, CITY has created the WHITECAP PUBLIC IMPROVEMENT DISTRICT NO. 1 ("DISTRICT") and has levied special assessments on properties within the boundaries of the CITY; and WHEREAS, pursuant to Section 372.0175 of the Texas Local Government Code, CITY has the authority to contract with the COUNTY to perform the duties of CITY relating to collection of special assessments levied by DISTRICT under Chapter 372, Subchapter A. NOW, THEREFORE, CITY AND COUNTY, for and in consideration of the mutual promises, covenants, and agreements contained herein, do agree as follows: Throughout this Agreement, the following meanings apply: the phrase "Property Tax Code" means Title 1 of the Texas Tax Code; the phrase "tax year" means the calendar year in which the applicable tax lien attaches to the taxable property; and the phrase "collection year" refers to the period commencing October 1st of the applicable tax year and continuing through the end of the applicable term (September 30th of the following year) in which collection and billing services are to be performed pursuant to this Agreement. ARTICLE 1. The effective date of this Agreement is October 1, 2025. The initial term of this Agreement shall be for a period of one year beginning of the effective date and ending CC -NC Mutti-Year Fixed Lien PID Assessment ILA Page 1 of 7 September 30, 2026. Following the initial term, this Agreement shall automatically renew for subsequent one-year terms, unless written notice of termination is provided by COUNTY or CITY no later than 180 days prior to the expiration date of the then -current term of the Agreement. If said notice of non -renewal is provided, this Agreement shall terminate at the end of the then -current term. Each renewal term shall be for property tax rate calculation, billing, and collection services for the applicable tax year (with the first renewal term being for tax year 2026, the second renewal term for tax year 2027, etc.). ARTICLE 2. For the purposes and consideration stated and contemplated, COUNTY shall provide the following necessary and appropriate services for CITY to the maximum extent authorized by this Agreement, without regard to race, sex, religion, color, age, disability, or national origin; 1. COUNTY, by and through its duly qualified Tax Assessor -Collector, shall collect DISTRICT assessments for the current tax year. CITY does hereby expressly authorize COUNTY and COUNTY agrees to do and perform for CITY all acts necessary and proper to collect said DISTRICT assessments. COUNTY agrees to collect base assessments, penalties, interest, and attorney's fees. 2. COUNTY agrees to prepare and mail all assessment statements (included on the tax statement for each parcel); provide daily, monthly, and annual collection reports to CITY; maintain both current and delinquent assessment rolls; disburse assessment monies to DISTRICT monthly based on the prior month's assessment postings; and to develop and maintain such other records and forms as are necessary or required by State law, rules, or regulations to CITY. 3. If COUNTY determines, based on the DISTRICT assessment roll, that a person erred in paying a DISTRICT assessment by making a duplicate or erroneous payment, COUNTY agrees to refund the payment to the person who erred in making it from current DISTRICT assessment collections. COUNTY agrees that such refund shall be made as soon as practicable after COUNTY discovers the erroneous payment. The refund must be accompanied by a description of the property subject to the assessment sufficient to identify the property. If the property is assigned an account number, COUNTY shall include that number. 4. If COUNTY determines, based on the DISTRICT assessment roll, that there has been an overpayment of a DISTRICT assessment, COUNTY will issue, from current DISTRICT assessment collections, a refund of the overpayment. 5. COUNTY agrees to develop and maintain written policies and procedures of its operation. COUNTY further agrees to make available full information about the operation of the County Tax Office to CITY, and to promptly furnish written reports to keep CITY informed of all financial information affecting it. 6. CITY agrees to promptly deliver to COUNTY all records that it has accumulated and developed in the assessment and collection of assessments, and to CC -NC Multi -Year Fixed Lien PID Assessment ILA Page 2 of 7 cooperate in furnishing or locating any other information and records needed by COUNTY to perform its duties under the terms and conditions of this Agreement. 7. COUNTY agrees to allow an audit of the assessment collection records of CITY in COUNTY'S possession during normal working hours with at least 72 hours advance, written notice to COUNTY. The expense of any and all such audits shall be paid by CITY. A copy of any and all such audits shall be furnished to COUNTY. 8. COUNTY agrees that it will provide monthly collection recap reports listing current assessments, delinquent assessments, penalties and interest on a monthly basis through September 30th of the collection year and monthly attorney fee collection reports. 9. For assessments that become delinquent on February 1st of the tax year, COUNTY, in its sole discretion, may mail a reminder notice to the owner of each parcel having delinquent assessments. Delinquent collections will be handled by the delinquent tax collection law firm in accordance with the Property Tax Code. ARTICLE 3. COUNTY hereby designates the Nueces County Tax Assessor -Collector to act on behalf of the County Tax Office and to serve as liaison for COUNTY with CITY. The County Tax Assessor -Collector and/or his/her designee shall ensure the performance of all duties and obligations of COUNTY; shall devote sufficient time and attention to the execution of said duties on behalf of COUNTY in full compliance with the terms and conditions of this Agreement; and shall provide immediate and direct supervision of the County Tax Office employees, agents, contractors, subcontractors, and/or laborers, if any, in the furtherance of the purposes, terms, and conditions of this Agreement for the mutual benefit of COUNTY and CITY. This Agreement is subject to, and the parties named herein shall comply with, all applicable provisions of the Property Tax Code and all other applicable Texas statutes. ARTICLE 4. It is understood and agreed between COUNTY and CITY that the CITY, in performing its obligations hereunder, is acting independently, and the COUNTY assumes no responsibility or liabilities in connection therewith to third parties. It is further understood and agreed between COUNTY and CITY that the COUNTY, in performing its obligations hereunder, is acting independently, and the CITY assumes no responsibilities in connection therewith to third parties. Nothing in this AGREEMENT is intended to benefit any third -party beneficiary. ARTICLE 5. CITY understands and agrees that CITY, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of COUNTY. COUNTY understands and agrees that COUNTY, CC -NC Multi -Year Fixed Lien PID Assessment ILA Page 3 of 7 its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of CITY. ARTICLE 6. For the services rendered during the assessment year, CITY agrees to pay COUNTY for the receipting, bookkeeping, issuing, and mailing of assessment statements as follows: 1. The current assessment statements will be mailed by the COUNTY by October 1st of the assessment year or as soon thereafter as practical. CITY shall provide COUNTY with the fixed lien assessment levied and the assessment roll by CITY's governing body under Texas Local Government Code Section 372.017 on or before September 1st. If CITY does not provide COUNTY with the fixed lien assessment levied and assessment roll on or before September 1st, COUNTY may charge a $50.00 late processing fee. The assessment roll is to be accompanied by the resolution or ordinance passed by the governing body for the current assessment year. All assessments become due upon receipt of the assessment/tax statement year. The DISTRICT assessment shall be entered into the COUNTY records as a fixed lien and applied to the properties assessed in the DISTRICT as reflected on the Appraisal District records submitted to COUNTY. An additional notice will be sent during the month of March following the initial mailing, provided that, CITY has requested such a notice on or before February 28th of the collection year. During the initial term and each subsequent term of this Agreement, the fee for this service will be the per -parcel fee calculated each year for tax collection in accordance with Section 6.27 of the Texas Property Tax Code. 2. All unpaid assessments become delinquent on February 1st of the year following the assessment year. Penalty and interest fees accrue at the same rate and time schedule as the same year's ad valorem property tax. [Property Tax Code, Section 31.02(a) and 33.01(a)]. 3. Delinquent assessment collection attorneys become involved at the same times as do the delinquent ad valorem property tax attorneys. [Property Tax Code, Sections 6.30, 33.07, 33.08, 33.11, and 33.48)]. 4. At least 30 days, but not more than 60 days, prior to July 1st of the collection year and following the initial mailing, a delinquent assessments statement meeting the requirements of Section 33.07 of the Property Tax Code will be mailed to the owner of each parcel having delinquent assessments. 5. For accounts that have become delinquent on or after June 1st of the collection year, COUNTY shall mail a delinquent assessments statement meeting the requirements of Section 33.08 of the Property Tax Code to the owner of each parcel having delinquent assessments. 6. In the event CITY levies a supplemental corrected DISTRICT assessment by order of its governing body after the assessment statements have already been mailed, CITY shall provide COUNTY with an updated assessment roll identifying the corrected assessments levied for the DISTRICT by the governing body under Texas CC -NC Multi -Year Fixed Lien PID Assessment ILA Page 4 of 7 Local Government Code Section 372.017, as corrected by any supplemental assessments levied by its governing body under Section 372.019. COUNTY will mail corrected statements to the owner of each affected parcel. The DISTRICT assessment shall be entered into the COUNTY records and shall be applied to the properties assessed by the DISTRICT, as reflected on the records to be certified and submitted by the Appraisal District to the COUNTY. The corrected assessment is to be accompanied by the resolution or ordinance passed by the governing body for the assessment year. The fee for this service will be the same per statement rate described in Section 1 of this Article 6. Issuance of refunds, in the event of a corrected assessment roll, will be the responsibility of the COUNTY. 7. CITY understands and agrees that COUNTY will, not later than March 1st of the assessment year, invoice the DISTRICT the "Total Cost" of providing all services described in Sections 1 through 5 above.. During the initial and subsequent term of this Agreement, the "Total Cost" of providing all services described in Sections 1 through 5 above shall be the per -parcel rate multiplied by the total number of parcels listed on CITY's preceding assessment year's Assessment Roll on September 30th of the assessment's year. 8. The County Tax Assessor-Collector's Office establishes collection rates annually based on Estimates by the Tax Assessor Collector in accordance with Section 26.04 of the Property Tax Code, and will be the certified collection rate disclosed on the Truth in Taxation worksheet supplied to the City of Corpus Christi, Texas. ARTICLE 7. COUNTY agrees to remit all assessments, penalties, and interest collected on DISTRICT'S behalf and to deposit such funds into the DISTRICT'S depositories, as designated: 1. For deposits of assessments, penalties, and interest, payment shall be by wire transfer or check to DISTRICT'S depository accounts only as applicable, specified on a Direct Deposit Authorization executed by the CITY'S Director of Finance & Procurement. Only in the event of failure of electronic transfer protocol will a check for deposits of assessments, penalty, and interest be sent by mail to the DISTRICT. COUNTY may withhold from these deposits the amount sufficient to pay the per -parcel fees established under ARTICLE 6 Section 1 of this Agreement. 2. In the event that the annual deposits are not sufficient to pay the County for the per -parcel fees, then COUNTY shall notify the City of the shortage and the CITY agrees a payment in the amount of the shortage shall be made by check to COUNTY within 30 calendar days after notification of such shortage.. ARTICLE 8. In the event of termination, the terminating party shall be obligated to make such payments as are required by this Agreement through the balance of the assessments CC -NC Multi -Year Fixed Lien PID Assessment ILA Page 5 of 7 year in which notice is given. COUNTY shall be obligated to provide services pursuant to this Agreement during such period. ARTICLE 9. Pursuant to Texas Government Code Section 791.011(d)(3), each party paying for the performance of governmental functions or services hereunder must make those payments from current revenues available to the paying party. ARTICLE 10. This Agreement represents the entire agreement between CITY and COUNTY and supersedes all prior negotiations, representations, and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by the governing bodies of both CITY and COUNTY or those authorized to sign on behalf of those governing bodies. ARTICLE 11. Any and all written notices required to be given under this Agreement shall be delivered or mailed to the addresses listed: CITY: City of Corpus Christi Attn: Director of Finance & Procurement 1201 Leopard St. Corpus Christi, TX 78401 COUNTY: Nueces County Attn: County Judge 901 Leopard St. Room 303 Corpus Christi, TX 78401 DISTRICT: Whitecap Public Improvement District No. 1 Attn: City of Corpus Christi Director of Finance & Procurement 1201 Leopard St Corpus Christi, TX 78401 ARTICLE 12. CITY hereby designates P3Works, LLC to act on behalf of CITY and to serve as the liaison for CITY to ensure the performance of all duties and obligations of CITY as stated in this Agreement. . Notwithstanding the foregoing, the CITY agrees to provide CITY -employee to serve as a liaison between the COUNTY and P3Works, LLC, in order to facilitate any and resolve any issues that may arise. ARTICLE 13. CC -NC Multi -Year Fixed Lien PID Assessment ILA Page 6 of 7 In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties that the remaining portions shall remain valid and in full force and effect to the extent possible. ARTICLE 14. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall constitute an original, but such counterparts shall constitute one and the same instrument. ARTICLE 15. This Agreement may be executed and delivered electronically. Original signatures transmitted and received digitally or via facsimile or other electronic transmission of a scanned document (e.g., pdf or similar format), are true and valid signatures for all purposes hereunder and shall bind the parties to the same extent as that of an original signature. Any such digital, facsimile, or electronic mail transmission shall constitute the final agreement of the parties and conclusive proof of such agreement. ARTICLE 16. The undersigned officers and/or agents of the parties warrant that they are the properly authorized persons and have the necessary authority to execute this Agreement on behalf of the parties. Each party hereby certifies to the other that any resolutions necessary for this Agreement have been duly passed and are now in full force and effect. FOR CITY OF CORPUS CHRISTI FOR NUECES COUNTY Sergio Villasana, Director Date Finance & Procurement Dept. Approved as to form: Assistant City Attorney Connie Scott, Date Nueces County Judge Attest: Date Kara Sands, County Clerk Date CC -NC Multi -Year Fixed Lien PID Assessment ILA Page 7 of 7