R-85-740 - 7/25/1985BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
That the Mayor be and is hereby authorized to execute a contract with
Calame, Linebarger & Graham for the purpose of collecting delinquent taxes.
RESOLVED this 25th day of July, 1985.
ATTEST:
LAND, City Secretary
RESOLUTION NO. 14ag
MIKE ROBINSON, Mayor
City of Round Rock, Texas
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES
x
x
x
THLS CONTRACT is made and entered into by and between the CITY OF ROUND ROCK,
acting herein by and through its governing body, hereinafter styled First Party, and the law
firm of CALAME, LINEBARGER & GRAHAM, 5432 South I. H. 35, Austin, Texas, hereinafter
styled Second Party.
First Party agrees to employ and does hereby employ Second Party to enforce by suit or
otherwise the collection of all delinquent taxes, penalty and interest owing to First Party and
all other taxing jurisdictions whose taxes are collected by First Party. Current taxes falling
delinquent within the period of this contract shall become subject to its terms when placed in
litigation or on the first day of July of the year in which the taxes become delinquent,
whichever date is sooner.
Second Party is to call to the attention of the collector or other officals any errors,
double assessments or other discrepancies coming under its observation during the progress of
the work, and is to intervene on behalf of First Party in all suits for taxes hereafter filed by
any taxing unit on property located within its corporate limits.
CITY OF ROUND ROCK
First Party
II
III
First Party agrees to pay to Second Party as compensation for the services required
hereunder fifteen (15 %) percent of the amount collected of all delinquent taxes, penalty and
interest for the years covered by this contract, actually collected and paid to the collector of
taxes during the term of this contract, as and when collected. Provided, however, Second
Party's fees on current year delinquent taxes that are collected between February 1 and July 1
of each year shall be limited to the amount of attorneys fees actually collected in all tax suits
pursuant to the authority of Section 33.48 of the Property Tax Code. All compensation above
provided for shall become the property of Second Party at the time payment of the taxes,
penalty and interest is made to the collector. The collector shall pay over said funds monthly
by check.
IV
This contract is drawn to cover a period of two years, beginning
and ending ty. 1 , provided, however, this agreement may be terminated by
First Party by the giving of thirty (30) days written notice thereof to Second Party. Second
Party shall have six months following termination of the contract to reduce to judgment all
suits filed prior thereto. In consideration of the terms and compensation herein stated, Second
Party hereby accepts said employment and undertakes the performance of said contract as
above written.—
This contract is executed on behalf of First Party by the presiding officer, of its
governing body who is authorized to execute this instrument by order heretofore passed and
duly recorded in its minutes.
WIT SS the signatures of all parties hereto in duplicate originals this the ,,25
day of 4 Q , 1985, Williamson County, Texas.
CALAME, LINEBARGER & GRAHAM
Second Party
LARRY M. GALAME
DALE LINEBARGER
RUSSELL R. GRAHAM
BRIAN E. BROWN
PRANK B. WALKER
KATHLEEN D. MORRISON
Mr. Sam Huey
Assistant City Manager
City of Round Rock
214 E. Main Street
Round Rock, Texas 78664
Dear Mr. Huey
LAW OFFICES
CALAME, LINEBARGER & GRAHAM
Austin, Texas
July 10, 1985
BACKGROUND
GENERAL PROCEDURES
Aam OBv
5131 South IN 35
PO. Box 17460
Awun, Teta 71760
512 5576675
Caps Clxiatt Office
505 Swuh Water s. Sae 537
PO Box2991
Caps Chwl. Tm 78101
512 6513.6899
El Paw OS,
601 Mp,k
FJ Paw. T 79901
915 5536637
Houston Office
955 Dairy Ashford. sue 377
0.,orn. T 77079
7/3 5560555
Mffiand Office
7910 LaFOrs Rowland. State 703
PO Bea6174
MIAwy Texas 79711
915 5634583
Pursuant to our telephone coversation of this date, I am pleased to write you to
outline our services in the collection of delinquent taxes.
Our law practice is exclusively limited to representing appraisal districts, cities,
schools, counties and other political subdivisions of the State of Texas in ad valorem
tax matters, including the collection of delinquent taxes. I am enclosing a list of
references. We will provide a complete client listing should you desire.
Although we arrange our tax collection program to meet the needs and desires
of each particular client, we usually follow certain general practices that have proven
successful in improving collections in the past.
Each year, we begin our collection efforts by mailing notices to all taxpayers
whose addresses are available. These are form letters on our letterhead and
accompanied by a statement that includes the essential data as to the property and
amount owed. Between 30 and 60 days after the first letter is mailed, a reminder is
sent to those who have not paid. Following the first and second letters, mailings are
continued so that taxpayers annually receive four notices of their delinquent taxes.
Those against whom suits will be filed receive a special "Notice of Suitt' letter telling
them they have one last chance'to pay before a lawsuit will be filed against them. ,
1,1 a ?- �i '. ;, 6 ; i ,:. }��j ?: k�: '
Many taxpayers get so far behind that they c pay everything at once.
Subject to the tax office's approval, we try to work with those who want to arrange
a payment schedule by letting them pay one tax year each month or during some
other specified period of time. Before we file suit or go to trial, we review
everything to make sure that everyone who is making a conscientious effort will be
treated fairly.
It is inherently unfair for the large majority of taxpayers to timely pay their
taxes while a small percentage take advantage of the low interest on delinquent taxes
and wait for the statute of limitations to expire. As such, our general policy is to
file suit on all personal property assessments before the expiration of the statute of
limitations and on all tracts of real estate having more than five years or more than
$500.00 due in delinquent taxes. Of course, we would be governed by your instructions
and would file suit at your request regardless of the number of years due or amounts
involved.
Properly foreclosing a tax lien on a tract of property involves a number of
procedural steps including title research, filing suit, issuing citations, issuing and
publishing a citation by publication, personal inspection of the property, investigation
as to addresses of absentee owners, trial, order of sale, notice of sale, and
preparation of sheriff's deeds. We have the capability and experience to follow
through with all these procedures systematically and in a large volume of cases.
The capability to prosecute significant numbers of lawsuits does not, however,
prevent a concurrent and lengthy list of problems from arising. We have faced these
problems and have developed methods to deal with them. For example, when you file
suit, you can expect a certain percentage of defendants to answer and contest tax
claims. Since the vast majority of tax contests involve similar defenses, we can
overcome these defenses and proceed easily to judgment.
SPECIFIC PROPOSAL
We are enclosing a sample contract for your review. Except for three
amendments, the contract follows the "standard" contract that was once set out in
Section 23.98 of the Texas Education Code. The amendments are:
(1) Under the code contract, the taxing jurisdiction paid for the cost of
compiling and preparing the tax statements. In our proposal, we agree to pay all
costs that are incurred.
(2) bur contract has a thirty day cancellation clause that permits our services
to be terminated without cause.
(3) We are not paid on current year delinquent taxes that are not in litigation
until July 1, of the year in which they become delinquent.
Our fee is 15% of the delinquent taxes, penalties, and interest that are
collected. This fee will be the total cost for our services. We are not paid until after
the money has been collected. For example, if we were to prosecute a suit on fifty '
tracts of real estate and no bids were received at the tax sale, we would not be paid
a fee.
In addition to our collection efforts, our services include providing continuing
guidance with regard to the implementation of the Property Tax Code. An
accumulation of property tax laws which have developed both through the legislature
and through interpretation by the courts have now been completely replaced by the
provisions of the Property Tax Code. The changes brought about by the code are both
substantive and procedural, and will require interpretation by the courts. In the area
of procedural changes, are such items as new record and reporting requirements
imposed by the state, new notice requirements and communicating proposed values to
the taxpayers, and new deadlines set out for various actions taken during the tax
year. In this regard, the advice of expert legal counsel would be valuable in the
planning stages such as review of content and format of forms, notices, and records,
to insure compliance with requirements set forth by the tax code.
As a result of a change in the law brought about by the Property Tax Code,
our fee will be passed on to the taxpayer as an added cost of collection. This
provision of the law results in our working at no cost to you.
We would pay or advance all expenses of the delinquent tax collection program,
including, but not limited, to:
(1) stationery, postage, and all related mailing expenses;
(2) computer services;
(3) abstractor's fees;
(4) court costs;
(5) publication costs;
(6) executive and support personnel.
In addition to the collection of delinquent taxes, as part of our services we will
provide advice and opinions at your request in all matters affecting property taxation.
Thank you for the opportunity to present this proposal.
LMC /cc
Enclosures
Yours v�}j� 7uly,
Larry /li. Calame
e
BASTROP COUNTY
Barbara Brinkmeyer
Tax Assessor - Collector
P. O. Box 579
Bastrop, Texas 78602
(512)321 -2589
BASTROP COUNTY APPRAISAL DISTRICT
Ms. Lorraine Perry
Chief Appraiser
705 Spring Street
Bastrop, Texas 78602
(512)321 -3925
CLIENT LISTING
BLANCO INDEPENDENT SCHOOL DISTRICT
Joy Brussel
Tax Assessor - Collector
P. O. Box 328
Blanco, Texas 78606
(512)833 -4414
HAYS COUNTY APPRAISAL DISTRICT
Ruth Clayton
Chief Appraiser
Courthouse Annex 102 LBJ, Blair Room
San Marcos, Texas 78666
(512)396 -4777
LIBERTYFULL INDEPENDENT SCHOOL DISTRICT
Rosa Lee Hyman
Tax Assessor - Collector
P. O. Box 68
Liberty Hill, Texas 78642
(512)259 -1389
ROUND ROCK INDEPENDENT SCHOOL DISTRICT
Forrest C. Child, Jr.
Tax Assessor - Collector ,
1300 -A North Mays
Round Rock, Texas 78664
(512)255 -4451 -
WILLIAMSON COUNTY APPRAISAL DISTRICT
Dusty Thames
Chief Appraiser
Box 1085
Georgetown, Texas 78627 -1085
(512)863 -7569