R-07-10-25-11F2 - 10/25/2007 RESOLUTION NO. R-07-10-25-1 1 F2
WHEREAS, the Texas Property Tax Code Section 6 . 30 authorizes the
City of Round Rock ( "City" ) to contract with a competent private
attorney to enforce the collection of all delinquent taxes, penalty and
interest, and
WHEREAS, the Texas Property Tax Code Sections 33 . 07 and 33 . 08
were amended by the Seventy-Seventh Legislature to authorize the
governing body of a city to impose a collection penalty in an amount
that does not exceed the amount of the compensation specified in the
contract with the private attorney, and
WHEREAS, the source of the funds for the private attorney' s
compensation is the additional penalty paid by the delinquent taxpayer,
rather than the public treasury, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City, Supplemental Agreement No. 1 to the Contract for
the Collection of Delinquent Taxes with Linebarger Goggan Blair &
Sampson, LLP, a copy of same being attached hereto as Exhibit "A" and
incorporated herein for all purposes .
IT IS FURTHER RESOLVED AND ORDERED that taxes for the year 2006
and taxes for all subsequent years that become delinquent on or after
February 1 but not later than May 1, that remain delinquent on July 1
of the year in which the become delinquent, incur an additional penalty
in the amount of twenty percent (200) of taxes, penalty and interest
due, pursuant to Texas Property Tax Code Section 6 . 30 and 33 . 07, as
amended.
0:'.wdox-RESOLUTPR71025H.WPD'rmc
IT IS FURTHER RESOLVED AND ORDERED that the taxes for the year
2006 and taxes for all subsequent years that become delinquent on or
after June 1 under Texas Property Tax Code Sections 26 . 07 (f) , 26 . 15 (e) ,
31 . 03 , 31 . 031, 31 . 032 or 31 . 04 incur an additional penalty in the
amount of twenty percent (200) of taxes, penalty and interest due,
pursuant to Texas Property Tax Code Section 6 . 30 and Section 33 . 08, as
amended.
The City Council hereby finds and declares that written notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
RESOLVED this 25th day of October, 2
i
W Mayor
A( City of Round Rock, Texas
CHRISTINE R. MARTINEZ, City Secr tary
2
SUPPLEMENTAL AGREEMENT NO. 1
TO "CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES"
WITH LINEBARGER GOGGAN BLAIR& SAMPSON, LLP
This Supplemental Agreement No. 1 to the "Contract for the Collection of Delinquent
Taxes" with Linebarger Goggan Blair Pena & Sampson, LLP, now known as Linebarger Goggan
Blair & Sampson, LLP, hereinafter called the "Supplemental Agreement No. 1" is made by and
between the City of Round Rock, a Texas home-rule municipal corporation, hereinafter styled
First Party and Linebarger Goggan Blair& Sampson, LLP„ hereinafter styled Second Party.
WHEREAS, the First Party and Second Party executed that "Contract for the Collection
of Delinquent Taxes," hereinafter called the"Agreement", on the 24`h day of January, 2002; and
WHEREAS, such Agreement provided for a fifteen percent (15%) commission on the
taxes, penalty and interest collected to be paid as compensation to Second Party; and
WHEREAS, the Texas State Legislature has found and declared, by its enactment of
Texas Tax Code Section 6.30(c), that a twenty percent (20%) commission on the taxes, penalty
and interest colleted is a reasonable fee for delinquent tax collection services of a private
attorney; and
WHEREAS, Texas Tax Code Sections 33.07 and 33.08 were amended by the Seventy-
Seventh Legislature to provide that certain taxes, in order to defray the costs of collection, may
incur an additional penalty equal to the compensation specified in the contract with private
counsel; and
WHEREAS, the source of the funds for private counsel's compensation is the additional
penalty paid by the delinquent taxpayer, rather than the public treasury; and
WHEREAS, it has become necessary to amend the Agreement to conform with such
statutory changes;
NOW THEREFORE, for and in consideration of the mutual promises contained herein
and other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, First Party and Second Party agree that said Agreement is amended as follows:
1. Paragraph III is amended to read as follows:
III
Compensation for services required under this contract shall be paid as follows:
(a) For 2006 and prior years, First Party agrees to pay to Second Party fifteen percent
(15%) of the amount of all taxes, penalty and interest that are subject to the terms
00123076ips EXHIBIT
Page 1 of 3
"An
of this contract as set forth in Paragraph I above, collected by the Second Party
and paid to the collector of taxes during the term of this contract, as an when
collected.
(b) For 2007 and subsequent years, First Party agrees to pay Second Party twenty
percent (20%) of the amount of all taxes, penalty and interest that are subject to
the terms of this contract as set forth in Paragraph I above, collected by the
Second Party and paid to the collector of taxes during the term of this contract, as
and when collected.
All compensation provided for above shall become the property of Second Party at the
time payment of taxes, penalty and interest is made to the collector. The collector shall pay over
said funds monthly by check.
2. Paragraph V is amended to read as follows:
V
The parties expressly acknowledge that the Agreement originally executed on January 24,
2002 had a three-year initial term ending on December 31, 2004; and that the contract was
renewed and extended for the first allowable three-year increment beginning January 1, 2005,
and said term is set to end on December 31, 2007. The parties expressly agree to renew and
extend for the second allowable three-year increment beginning January 1, 2008 and ending on
December 31, 2010.
3. Except as amended hereby, the Agreement as originally written remains in full force and
effect.
4. This Supplemental Agreement No. 1 may be executed in multiple counterparts, which,
when combined together, shall constitute an original of this Supplemental Agreement No. 1. In
addition, facsimile signatures of the parties shall be effective on all counterparts of this
Supplemental Agreement No. 1.
5. This Supplemental Agreement No. 1, together with the Agreement, embodies the entire
agreement of the parties hereto, and is binding upon and inures to the benefit of the parties to this
Supplemental Agreement No. 1 and their respective heirs, executors, administrators, personal
representatives, legal representatives, successors and assigns, and incorporates all previous
correspondence or communication, whether written or oral. The Agreement, as amended hereby,
can only be further modified or varied by written instrument subscribed to by the parties hereto.
IN WITNESS WHEREOF, First Party and Second Party have executed this
Supplemental Agreement No. 1 on the dates indicated.
Page 2 of 3
CITY OF ROUND ROCK
First Party
By:
Nyle Maxwell, Mayor
Date Executed:
ATTEST:
Christine R. Martinez, City Secretary
FOR CITY, APPROVED AS TO FORM:
Stephan L. Sheets, City Attorney
LINEBARGER GOGGAN BLAIR& SAMPSON, LLP
Second Party
By:
Printed Name:
Date Executed:
Page 3 of 3
DATE: October 18, 2007
SUBJECT: City Council Meeting - October 25, 2007
ITEM: 11F2. Consider a resolution approving an amendment to the
contract with Linebarger, Goggan, Blair & Sampson, LLP for
the collection of delinquent taxes.
Department: Finance
Staff Person: Cindy Demers, Finance Director
Justification:
The City contracts with Linebarger, Goggan, Blair & Sampson for the collection of
delinquent property taxes. This supplemental agreement extends the term for a
second allowable three-year term beginning January 1, 2008. The agreement also
allows the firm to increase their fee for the collection of delinquent taxes from 15%
to 20% on the taxes, penalty & interest collected. These fees are paid only if
collected from the delinquent taxpayer. The collection rate has been 15%
commission for delinquent taxes collected; the legislature updated Texas Tax Code
6.30(c) allowing a 20% commission on the delinquent taxes collected.
Funding•
Cost: N/A
Source of funds: N/A
Outside Resources: N/A
Background Information•
The Texas Property Tax Code sections 33.07 & 33.08 were amended by the 77th
state legislature to authorize the governing body to impose a collection penalty in an
amount that does not exceed the amount of compensation specified in the contract.
Public Comment: N/A
EXECUTED
DOCUMENT
FOLLOWS
SUPPLEMENTAL AGREEMENT NO. 1
TO "CONTRACT FOR THE COLLECTION OF DELINQUENT TAXES"
WITH LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
This Supplemental Agreement No. 1 to the "Contract for the Collection of Delinquent
Taxes" with Linebarger Goggan Blair Pena& Sampson, LLP, now known as Linebarger Goggan
Blair & Sampson, LLP, hereinafter called the "Supplemental Agreement No. l" is made by and
between the City of Round Rock, a Texas home-rule municipal corporation, hereinafter styled
First Party and Linebarger Goggan Blair & Sampson, LLP„ hereinafter styled Second Party.
WHEREAS, the First Party and Second Party executed that "Contract for the Collection
of Delinquent Taxes," hereinafter called the "Agreement", on the 24`x' day of January, 2002; and
WHEREAS, such Agreement provided for a fifteen percent (15%) commission on the
taxes, penalty and interest collected to be paid as compensation to Second Party; and
WHEREAS, the Texas State Legislature has found and declared, by its enactment of
Texas Tax Code Section 6.30(c), that a twenty percent (20%) commission on the taxes, penalty
and interest colleted is a reasonable fee for delinquent tax collection services of a private
attorney; and
WHEREAS, Texas Tax Code Sections 33.07 and 33.08 were amended by the Seventy-
Seventh Legislature to provide that certain taxes, in order to defray the costs of collection, may
incur an additional penalty equal to the compensation specified in the contract with private
counsel; and
WHEREAS, the source of the funds for private counsel's compensation is the additional
penalty paid by the delinquent taxpayer, rather than the public treasury; and
WHEREAS, it has become necessary to amend the Agreement to conform with such
statutory changes;
NOW THEREFORE, for and in consideration of the mutual promises contained herein
and other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, First Party and Second Party agree that said Agreement is amended as follows:
I. Paragraph III is amended to read as follows:
III
Compensation for services required under this contract shall be paid as follows:
(a) For 2006 and prior years, First Party agrees to pay to Second Party fifteen percent
(15%) of the amount of all taxes, penalty and interest that are subject to the terms
00123076/ps
01.10 Page 1 of 3
of this contract as set forth in Paragraph I above, collected by the Second Party
and paid to the collector of taxes during the term of this contract, as an when
collected.
(b) For 2007 and subsequent years, First Party agrees to pay Second Party twenty
percent (20%) of the amount of all taxes, penalty and interest that are subject to
the terms of this contract as set forth in Paragraph I above, collected by the
Second Party and paid to the collector of taxes during the term of this contract, as
and when collected.
All compensation provided for above shall become the property of Second Party at the
time payment of taxes, penalty and interest is made to the collector. The collector shall pay over
said funds monthly by check.
2. Paragraph V is amended to read as follows:
V
The parties expressly acknowledge that the Agreement originally executed on January 24,
2002 had a three-year initial term ending on December 31, 2004; and that the contract was
renewed and extended for the first allowable three-year increment beginning January 1, 2005,
and said term is set to end on December 31, 2007. The parties expressly agree to renew and
extend for the second allowable three-year increment beginning January 1, 2008 and ending on
December 31, 2010.
3. Except as amended hereby, the Agreement as originally written remains in full force and
effect.
4. This Supplemental Agreement No. 1 may be executed in multiple counterparts, which,
when combined together, shall constitute an original of this Supplemental Agreement No. 1. In
addition, facsimile signatures of the parties shall be effective on all counterparts of this
Supplemental Agreement No. 1.
5. This Supplemental Agreement No. 1, together with the Agreement, embodies the entire
agreement of the parties hereto, and is binding upon and inures to the benefit of the parties to this
Supplemental Agreement No. 1 and their respective heirs, executors, administrators, personal
representatives, legal representatives, successors and assigns, and incorporates all previous
correspondence or communication, whether written or oral. The Agreement, as amended hereby,
can only be further modified or varied by written instrument subscribed to by the parties hereto.
IN WITNESS WHEREOF, First Party and Second Party have executed this
Supplemental Agreement No. 1 on the dates indicated.
Page 2 of 3
CITY OF RO vD
First Party
By:
ell, Mayor
Date Executed:
T
ATEST:
1 i
r 446"n&/C l4alltbt6l�'
Christine R. Martinez, City Secretary
FOR j Y,APPROV D AS TO FORM:
Stepha L. Sheets, City Attorney
LINEBARGER GOGGAN BLAIR & SAMPSON, LLP
Second Party
By: 72
Printed Name:
Date Executed: O 02 0200
Page 3 of 3