City Commission Terminates Longtime Contract with Tax Collector Services

Request Review of All Vendor Contracts & Inter-local Agreements

by Mary Beth Wright, LFN Editor

La Feria City Commissioners were split in their decision to terminate a long standing contract for tax collection services at a recent meeting held at the end of February. John Guevara, representing Linebarger, Goggan Blair & Sampson, LLP, spoke to the commission about the firm’s long relationship with the community as did resident Gloria Casas. Casas said, “As a citizen of La Feria, I want to know why this item for termination is even on the agenda?”

After returning from executive session, Commissioner Esmeralda Lozano moved to proceed with terminating the contract with Linebarger and the motion was seconded by Commissioner Olga H. Maldonado. The motion was approved with Commissioners Lozano, Maldonado and Julian Guevara. Jr. casting their vote for the motion, and Commissioners John Betancourt and John Hernandez voting against the item.

“Linebarger has served as the City of La Feria Tax Attorneys since November 1, 1998 after merging with the firm of Young & Young LLP who had the contract with the City since May 27, 1984,” according to City Secretary Olga Oberwetter.

The current Linebarger contract, which the City has mailed a non-renewal notice on, was entered into effective April 28, 2010 and will terminate on that date this year. The firm has an A+ rating with the Better Business Bureau with 30 offices in Texas and 10 out of state locations.

The commission approved a motion to authorize City Manager Sunny K. Philip to publish a request for a law firm to provide delinquent tax collection services for the City of La Feria. The commission has requested a review of all vendor contracts and inter-local agreements that are now in place. A recent scheduled meeting of the commission was canceled on March 24, with the next meeting set for April 14 at 6:30 p.m. in the city commission meeting room.

The following are excerpts from the official minutes of the City Commission meeting that deal with the agenda item mentioned above:

Commissioner Esmeralda Lozano read the item and asked that this item be discussed in executive session. Mayor Victor Gonzalez, Jr. declared the meeting in executive session at 7:04 P.M. under Section 551.071, Government Code, to consult with the City Attorney on legal matters concerning this item. After executive session, Mayor Victor Gonzalez, Jr. declared the meeting back in open session at 7:30 P.M. and asked for discussion from the City Commissioners.

Commissioner John Betancourt inquired if there were any issues with Linebarger’s performance, and Mr. Philip responded that there had been none. He added that the firm has performed their responsibilities above and beyond their contract. Mr. Philip said that interaction with the firm is not as it used to be due to the fact that the City transferred the tax collection services to the County and their contact is with the County. He said he had received no complaints about the firm. Commissioner Betancourt inquired if Mr. Philip would have any issues if the Commission continued with the contract. Mr. Philip said he has no issues with Linebarger, but he will work with the contract that the City Commission approves. Commissioner Betancourt said that Linebarger has improved their performance through the years.

Commissioner John Hernandez asked Commissioner Esmeralda Lozano for the reason why she had asked that this item be placed on the agenda. Commissioner Esmeralda Lozano said that in her opinion it is important for the Commission to be aware of what the opportunities are for their constituents. She said the services that Linebarger is providing right now she would imagine in a bidding opportunity that Linebarger would be able to offer the same services to the City, but at that point the Commission would be able to vet other firms and see what offerings they bring to the community. Commissioner Lozano said that if there are other agencies that want a shot at providing services to the City, the Commission owes it to their constituents to be good ensurers of opportunities and to use its fiduciary oversight in the best manner possible. Commissioner Lozano said that before this action, she had no idea of the contract and it has served to educate her on what the current contract obligations are and what services Linebarger is offering to the City. Commissioner John Hernandez asked if Commissioner Lozano had talked with other firms that she felt they might be able to provide a better service to the City. Commissioner Lozano responded that she had not. Mayor Victor Gonzalez, Jr. said that Commissioner Lozano had no problem with the contract; she just wants to see what is out there. The current contract is due to expire in April. Commissioner Lozano said the year is up in April and this is the opportunity to vet other firms that might be willing to come in at a lower percentage. She said she had no personal pet peeves against Linebarger, but it is up to the Commission to pass it or not. Commissioner Julian Guevara, Jr. said he, too, would like to see what other firms might be out there and would like to have the opportunity to compare.

Mayor Victor Gonzalez, Jr. invited Mr. John Guevara, partner with Linebargar Goggan Blair & Sampson LLP to comment if he wished. Mr. Guevara thanked the Mayor and Commissioners for all the comments and he thanked Ms. Gloria Casas for her comments about his firm. He said he was not aware that she would be at the meeting to speak about their firm, but he was humbled that she did. He said that Linebarger Goggan Blair and Sampson has done an excellent job for the City. Mr. Guevara said that when his law firm first began working with the City of La Feria the collection rate was approximately 20% and since then they have been able to increase it considerably every year. It is not always 35 or 45%, but it is close. Mr. Guevara said every year more delinquent accounts are added and they have been able to decrease that amount by about $100,000.00 in the last three or four years.

Regarding the vetting of firms, Mr. Guevara said he appreciated their desire to do so, and by all means that is one of their responsibilities. He said the legislature has set a ceiling of 20% to pay the tax attorney; the lower the percentage, the less likely that the City will be paid. He said that when you start messing with price, you will have less of an incentive for people to pay their taxes before becoming delinquent. Mr. Guevara said he welcomed the competition, but he assured the Commission that all they would hear about his firm would be mudslinging and that his firm would not engage in any part of that. Mr. Guevara said he appreciated the audience and the opportunity to speak tonight and would like to continue to do a great job for the City.

Mayor Gonzalez, thank Mr. Guevara for his comments. Commissioner Esmeralda Lozano moved to proceed with terminating the contract with Linebarger Goggan Blair & Sampson, LLP. Commissioner Olga H. Maldonado seconded the motion, and the motion carried by majority vote. Commissioners Esmeralda Lozano, Olga H. Maldonado, and Julian Guevara, Jr. voted for the motion, and Commissioners John Betancourt and John Hernandez voted against the motion.