2003 12 11 WS Minutes City of Baytown
WORK SESSION
December 11, 2003
5:35 P.m.
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• NOTICE OF MEETING
(IN COMPLIANCE WITH SEC. 551.041, ET SEQ., TEX. GOV'T. CODE)
NOTICE is hereby given that the City Council of the City of Baytown will hold a work session
on the 11th day of December, 2003 at 5:35 p.m. in the Hullum Conference Room of Baytown
City Hall, 2401 Market Street, Baytown, Texas.
ITEM(S) to be discussed and acted upon by the Council at this meeting is/are listed on the
attached agenda.
C�fCi.c"J ZJ j7iIc
Clty Clerk
Posted: December 8, 2003
Time: 12:05 p.m.
AGENDA
Call to Order.
1. Discuss future retiree health care premiums.
P
2. Discuss sales tax election options.
• 3. Appointments
Baytown Industrial Development Corporation Board
Civil Service Commission
Chairperson, Reinvestment Zone Number One, City of Baytown
Planning and Zoning Commission
Juvenile Crime Enforcement Coalition
4. Adjourn.
agenda/worksession/2003/1 21 1
•
I
MINUTES OF THE WORK SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
• December 11, 2003
The City Council of the City of Baytown, Texas, met in joint work session with the Planning and
Zoning Commission on December 11, 2003, at 4:50 p.m. in the Council Chamber of Baytown
City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance:
Ronnie Anderson Council Member
Calvin Mundinger Council Member
Don Murray Council Member
Mercedes Renteria Ili Council Member
Scott Sheley Council Member
Pete C. Alfaro Mayor
Gary Jackson City Manager
Bob Leiper Assistant City Manager
Ignacio Ramirez, Sr. City Attorney
Gary W. Smith City Clerk
Absent: Coleman Godwin Council Member
• Also attending were the following members of the Planning and Zoning Commission:
Lewis McRee Chairperson
Gilbert Chambers Commissioner
Joe C. Floyd Commissioner
Jim Hutchison Commissioner
Shawn McDonald Commissioner
James Pricket Commissioner
Rolando Valdez Commissioner
Gregory Stubbs Director of Planning and Building Services
The meeting was opened with a quorum present after which the following business was
conducted:
Receive presentation and discuss overview of water and sewer master plan and capital
recovery fee process.
City Manager, Gary Jackson, introduced the topic to Council and the Commission by stating that
the meeting would provide an overview of the process. The Water and Sewer Master Plan is the
basis for the capital recovery fees. The discussion will involve the specific steps required to
adopt the capital recovery fees. The City wants new development, but the new development
Ishould pay its proportionate share of its impact on the water and sewer system.
Page2of3
Minutes of the Joint Work Session with Planning and Zoning Commission—December 11, 2003
Dale Conger, PBS&J, the City's consulting engineers, explained that the capital recovery fee is
intended to protect existing rate customers from the cost of expanding services to serve the
growing community. The capital recovery fees charge new users when they come into the
system. They pay for the existing equity and debt service so that they enter the system on a par
with existing customers.
Mr. Conger reviewed the steps for adoption and explained that the statute governs the process
and is explicit. The steps are as follows:
• Develop growth projections and land use assumptions (basis for computing the fee),
• Develop a capital improvement plan to support the assumption,
• Compute the fee,
• Appoint an advisory committee (Planning and Zoning Commission),
• Establish a date for a public hearing on the capital improvement plan and land use
assumptions,
• Approve the capital improvement plan within thirty days of the date of the public
hearing,
• The advisory committee comments on the proposed fees,
• A public hearing is held on the impact fees,
• Approve the impact fees within thirty days of the public hearing,
• Review and update the process, plan and fees each five years, and
• The Mayor annually certifies compliance with the procedure.
In response to comments and questions from the Council and Commission, Mr. Conger •
explained that the plan addresses all land uses. There are various ways to calculate the
equivalency unit (the base measure for calculating the fee) but many entities have used the size
of the meter serving the property. Several of the neighboring cities, including Houston, have
adopted impact fees. The impact fee is established at the time the property is platted and
collected when the meter is set. The homebuilders pay the fee and add it to the cost of the home.
The impact fees that are collected are kept in a separate account and used only for capital
expansions of the system. The city's extraterritorial jurisdiction is considered in the plan. There
are various options on how to deal with development in the ETJ. The Baytown Area Water
Authority was not included in the plan, therefore the impact fee will be lower than in other cities
that include capital expansions to the water treatment plant. The Master Plan includes the
projects that are necessary for the growth within the next ten years. The plan will include
improvements for service beyond the ten-year period. These improvements will be captured in
revisions to the impact fee.
Mr. Jackson reminded Council that the Master Plan is a part of the overall water and wastewater
plan for the city. This plan deals with new development, not current infrastructure. It does not
address the inflow and infiltration problems in the present system. It does not address the current
capacity problems. The statute provides a method for calculating the maximum impact fee. A
lower fee may be adopted.
Mr. Conger noted that the collected fees must be used to build the improvements or the fees must
be refunded.
Page 3 of 3
Minutes of the Joint Work Session with Planning and Zoning Commission—December 11, 2003
Adjourn.
There being no further business, Council Member Renteria moved adjournment. Council
Member Mundinger seconded the motion. The vote follows:
Aye: Council Members Anderson,Mundinger, Murray, Renteria and Sheley
Mayor Alfaro
Nay: None.
The motion carried and the meeting adjourned at 5:36 p.m.
G . Smith
City Clerk
•
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BAYTOWN CITY OF BAYTOWN
O 4
TO: Gary Jackson, City Manager
FROM: Alison Smith, Director of Human Resources
Ignacio Ramirez, Sr. City Attorney
Donna Sams, Director of Finance
DATE: December 4, 2003
SUBJECT: Change in implementation of retiree health plan tiered premiums
During the 2004 budget process, there were numerous discussions of the retiree healthcare change
adopted in 1993 which required all employees hired after 10/1/93 to pay 100% of their healthcare
premiums to participate in the City's health plan after retirement. After considerable review and study,
an ordinance was adopted on September 25, 2003 to create a tiered plan for retirees and to repeal the
1993 ordinance that had not been communicated to employees after adoption.
The Trustees for the City's medical benefits program have continued to monitor and research the
impact of changes made during the budget process and are recommending changing the
implementation of the tiered plan to cover only employees hired after January 1, 2004 for the
following reasons:
• The ordinance that was adopted in September gave less than desirable notice for employees to
• make lifetime career/retirement decisions.
• The savings that will be realized as a result of changing the City's Third Party Administrator
(TPA) and plan design changes will assist in offsetting the cost of this change . The plan will
be monitored closely to possibly take advantage of other cost saving options available to the
City.
• Since the majority of the retirees in Baytown have 25 years service with the City there would be
a nominal financial impact to the plan by allowing current employees with at least 10 years of
service to participate at the same levels as those that have been employed 25 years. That
precise impact is difficult to project because a) retirement decisions vary per individual and b)
some employees opt out of the retirement healthcare coverage because a spouse's plan or a
future employer covers them. However, it is anticipated that 2-3 employees could possibly
retire each year with less than 25 years of service with the City. This could potentially cost the
plan an additional $12,000 per year.
The proposed change allows all full time employees, employed on or before December 31, 2003,
without a break in service after such date and with a minimum of ten years of service with the City of
Baytown to pay the same premium as active employees. Current employees retiring with less than ten
years of service with the City can still participate by paying 100% of the total premium.
Rising health care costs continue to be a major concern across the nation and the City of Baytown is no
exception. The fiscal solvency of the City's self-funded program is a priority. The change in the
implementation of the tiered plan retains this priority as well as provides current employees time to
• make major career decisions.
* * * MEMORANDUM * * *
December 11, 2003
TO: Mayor and City Council
FROM: Gary Jackson, City Manager
SUBJECT: Possible Sales Tax Alternatives
In strategic planning sessions during FY 02-03 and in City Council Work Sessions for the FY
03-04 Budget, Council asked staff to research and develop alternative revenue sources that
could supplement and/or enhance the General Fund.
At the November 13, 2003 City Council Work Session, local option sales tax alternatives were
discussed. Also, at the November 25., 2003 City Council meeting, follow-up information
requested by Council was provided in the City Council Packet. For your convenience,
additional copies of this information are enclosed. Also enclosed is a scenario of how the
street maintenance sales tax could potentially be allocated if the Council wishes to pursue
this option.
• This agenda item will allow Council to discuss sales tax; alternatives, should you wish to dlo
so. Staff will provide additional information and/or answer questions if requested by Council.
3
•
* * * * MEMORANDUM * * * *
November 13, 2003
TO: Mayor and City Council
FROM: Gary Jackson, City Manager
SUBJECT: Local Option Sales Tax Alternatives
The current total sales tax rate in the City limits of Baytown is 8.25%. The components of the
sales tax are as follows:
State of Texas 6.25%
City of Baytown 1.00%
Municipal Development District (MDD) .50%
Crime Control Prevention District (CCPD) .50%
The sales tax for the CCPD is in place through December 31, 2003 for the current purpose of
retiring the outstanding liabilities of the District (i.e. Court and Jail and Radio System). The
earliest date that an election may be called for a new CCPD is February 2005, although the
City's May 2004 general election is an option for other sales tax referendums.
At the work session, we will begin discussion of three sales tax options that would supplement
or enhance the General Fund service levels as follows:
• Municipal Sales and Use Tax for Street Maintenance
• Fire Control, Prevention and Emergency Medical Service District
• Crime Control and.Prevention District
A chart summarizing these options is attached for your review.
•
SALES TAX OPTIONS
The prior CCPD debt obligations will be satisfied as of 12/31/03 and collection of that 1/2% sales tax will end. This will
result in the availability of 1/2% in local option sales tax on 1/1/04.
PURPOSE INCREMENTS TERM DATE ALLOWABLE USES
AVAILABLE
Municipal Sales and Use Tax 1/8%, 1/4% 4 years January 2004 Maintenance (including repair and
for Street Maintenance rehabilitation) of existing streets
Fire Control, Prevention and 1/8%, 1/4%, 3/8%, 5 years January 2004 Fire apparatus, ambulances, specialized
Emergency Medical District 1/2% training (i.e. haz-mat or paramedic),
equipment, construction and maint. of •
fire stations, emergency communications
enhancements, public education, public
health programs.
Crime Control and Prevention 1/8%, 1/4%, 3/8%, 5 years February 2005 Police and law enforcement related
District 1/2% programs, including communications,
crime prevention, jail operations, and
courts/prosecution
Uniform election dates for 2004 are: 1st Saturday in February: February 1, 2004;
Third Saturday in May: May 15, 2004; Second Saturday in September: September 11, 2004
First Tuesday after the first Monday in November: November 2, 2004 •
Estimated annual sales tax revenue
1/8% = $ 750,000
1/4% = $1,500,000
3/8% = $2,250,000
1/2% = $3,000,000 11/13/03
• • •
• •
* * * * MEMORANDUM`
November 13, 2003
TO: Mayor and City Council
FROM: Gary.Jackson, City Manager
SUBJECT: Local Option Sales Tax Alternatives Follow-up
As you recall, during the strategic planningsessions duringFY 02-03 and in work
9
sessions in the FY 03-04 budget, Council asked staff to research and develop
alternative revenue sources to supplement and/or enhance the General Fund. At the
work session on November 13, 2003, Council began discussion of sales tax options
that would meet that objective. Based on that discussion and the apparent consensus
of Council, staff will develop more specific information on the following allowable sales
tax utilization:
• Municipal Sales and Use Tax for Street Maintenance (1/4% or 1/8%)
• Fire Control, Prevention and Emergency Medical Service District (1/2%. 3/8%.
1/4%, 1/8%)
• • Crime Control and Prevention District (1/2%. 3/8%. 1/4%, 1/8%)
Four other sales tax options were discussed at the work session. The consensus
received from that meeting was that additional research into these alternatives was not
requested since they did not meet the criteria discussed during the budget work
session of being a new revenue source to provide support for or enhancement of
General Fund programs. These four options are:
• Metropolitan Transit Authority (1/4%, 1/2%, 3/4%, 1%)
• Sales Tax to Offset Property Taxes (1/2%. 3/8%. 1/4%, 1/8%)
• Job Training (1/2%. 3/8%. 1/4%, 1/8%)
• No sales tax to replace the expiring CCPD 1/2%
The statutory .allowable expenditures for each of the three alternatives on which
requested additional information are attached. Staff will provide additional information
or answer questions to their ability so that Council can provide them direction in any
future activity on this topic.
•
S •
CHAPTER 327. MUNICIPAL SALES AND USE TAX FOR STREET
MAINTENANCE
327.001. Definition
In this chapter, "municipal street" means the entire width of a way held by a
municipality in fee or by easement or dedication that has apart open for public
use for vehicular travel. The term does not include a designated state or federal
highway or road or a designated county road.
327.008. Use of Tax Revenue
Revenue from the tax imposed under this chapter may be used only to maintain
and repair municipal streets existing on the date of the election to adopt the tax
•
CHAPTER 344. FIRE CONTROL, PREVENTION, AND EMERGENCY
• MEDICAL SERVICES DISTRICTS
344.151. Financing District Programs
(a) The district may finance all costs of a fire control, prevention, and
emergency medical services district program, including costs for personnel,
administration, expansion, enhancement, and capital expenditures.
(b) The program may include:
(1) fire apparatus and equipment;
(2) a bomb disposal unit and related equipment;
(3) compensation of fire protection and prevention personnel for
specialized training regarding:
(A) arson;
(B) bomb disposal;
(C) hazardous materials;
(D) technical rescue;
(E) paramedic certification; and
(F) any other specialized training under the program;
(4) funding for turn-out gear, self-contained breathing apparatus, and
protective uniforms or other firefighter safety equipment;
(5) additional compensation for municipal fire-fighting personnel, including
overtime compensation for unforeseen staffing needs; and
• (6) funding for the construction and maintenance of fire stations, training
facilities, or the equipment needed for those stations or facilities.
(c) The program may include an enhanced emergency communications center or
other emergency communications programs and equipment, including:
(1) emergency medical dispatch training;
(2) additional fire and emergency medical service dispatchers;
(3) uniformed fire deployment and communications officers;
(4) real-time weather information; and
(5) computer databases and systems maintenance personnel for
hazardous materials responses.
(d) The program may include a public training program, including:
(1) a juvenile fire starter program;
(2) an urban survival program, including school programs for fire safety,
gun safety, and safety with strangers;
(3) a fire prevention program;
(4) a fire education program;
(5) a hazardous materials education program;
(6) a psychological intervention program; and
(7) a citizen's ride-along program or home inspection program.
•
(e) The program may include public preventive health programs, including:
(1)juvenile inoculations; •
(2) weekend health days;
(3) first aid and cardiopulmonary resuscitation training;
(4) injury prevention; and
(5) drug and alcohol awareness.
(f) The program may include response training programs, equipment, facilities,
and instructors, including:
(1) a regional training center for fire, rescue, hazardous materials, and
emergency medical services;
(2) staff personnel to support the center;
(3) equipment and apparatus to support the center;
(4) computer-aided continuing education training conducted in-station; and
(5) training regarding hazardous material storage and response.
(g) The program may include computers and other systems to support
information management systems to:
(1) maintain occupancy information;
(2) track incident analyses;
(3) track incident reports;
(4) track internal communications and reporting;
(5) maintain inventory; and
(6) serve other information management needs.
(h) The program may include capital items needed to improve emergency
response and increase service efficiency, including equipment, apparatus, •
vehicles, and training material or equipment.
•
• •
CHAPTER 363. CRIME CONTROL AND PREVENTION DISTRICTS
• 363.151. District Re
sponsibilities; Limitations on Expenditures
(a) The district may finance all the costs of a crime control and crime prevention
program, including the costs for personnel, administration, expansion,
enhancement, and capital expenditures.
(b) The program may include police and law enforcement related programs,
including:
(1) a multi jurisdiction crime analysis center;
(2) mobilized crime analysis units;
(3) countywide crime stoppers telephone lines;
(4) united property-marking programs;
(5) home security inspection programs;
(6) an automated fingerprint analysis center;
(7) an enhanced radio dispatch center;
(8) a computerized criminal history system;
(9) enhanced information systems programs;
(10) a drug and chemical disposal center;
(11) a county crime lab or medical examiner's lab; and
(12) a regional law enforcement training center.
(c) The program may include community-related crime prevention strategies,
including:
• (1) block watch programs;
(2) a community crime resistance program;
(3) school-police programs;
(4) senior citizen community safety programs;
(5) senior citizen anticrime networks;
(6) citizen crime-reporting projects;
(7) home alert programs;
(8) a police-community cooperation program;
(9) a radio alert program; and
(10) ride along programs.
(d) The program may include specific treatment and prevention programs,
including:
(1) positive peer group interaction programs;
(2) drug and alcohol awareness programs;
(3) countywide family violence centers;
(4) work incentive programs;
(5) social learning centers;
(6) transitional aid centers and pre-parole centers;
(7) guided group interaction programs;
(8) social development centers;
(9) street gang intervention centers;
(10) pre-delinquency intervention centers;
(11) school relations bureaus;
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(12) integrated community education systems;
(13) steered straight programs;
(14) probation subsidy programs;
(15) Juvenile Offenders Learn Truth (JOLT) programs;
(16) reformatory visitation programs;
(17)juvenile awareness programs;
(18) shock incarceration;
(19) shock probation;
(20) community restitution programs;
(21) team probation;
(22) electronic monitoring programs;
(23) community improvement programs;
(24) at-home arrest;
(25) victim restitution programs;
(26) additional probation officers; and
(27) additional parole officers.
(e) The program may include court and prosecution services, including:
(1) court watch programs;
(2) community arbitration and mediation centers;
(3) night prosecutors programs;
(4) automated legal research systems;
(5) an automated court management system;
(6) a criminal court administrator;
(7) an automated court reporting system; •
(8) additional district courts that are required by law to give preference to
criminal cases, judges, and staff; and
(9) additional prosecutors and staff.
(f) The program may include additional jails, jailers, guards, and other necessary
staff.
•
* * * MEMORANDUM * * *
•
December 11, 2003
TO: Mayor and City Council
FROM: Gary Jackson, City Manager
SUBJECT: Street Maintenance Sales Tax Allocation
The Street Maintenance Sales Tax is a possible option that Council may wish to consider
proposing to the voters at a future time. Attached is a chart that outlines a possible allocation
of the estimated $1.5 million in revenue that a '/4% sales tax would be expected to generate.
The work plan addresses the condition of our streets in three separate but interrelated
elements:
• Continuation of a contract concrete repair program to make minor to moderate
repairs caused by utility work or specific point failures. This annual program has been
in place for several years although it was nOt implemented in the 2002-2003 budget
due to revenue shortfalls. It was funded in the,recently.adopted 2003-2004 budget and
will be out for bid soon. When point or utility repairs are necessary, the contractor,
operating on an annual contract based on time and materials, is notified and a crew is
• sent to make the repairs. While the turnaround, on these jobs is currently days or a
matter of weeks, it was previously weeks or months when we tried to make these
repairs with limited City staff. By utilizing this service on a contract basis, it provides the
flexibility to expand or contract the service level as needed and/or as funding changes.
Under the possible allocation illustrated 'here, $200,000 (approximately two thirds of
the current general fund ;allocation ($291,000)) would be funded from the sales tax
revenue. The remaining genera) fund amount would pay for sidewalk repairs that are
not eligible under the sales tax legislation.
• The City does njii haves'a ,crack-sealing program for street maintenance. As asphalt
streets begin tol age, cracks ,develop which allow} rain water: to permeate the base
material and eventually cause- a street failure , Crack ,sealing minimizes the water
the infiltration throu h a t ,�rm na` 'g � sp�i altr.paving��to;the�base. tenal. brack sealing extends the
life of an asphalt street by 5-7 years by protecting the street from base failure. A new
program would be initiated to perform this crack and joint maintenance to extend the
useful life of our streets and maintain ride quality. By contracting out this maintenance,
a continual program to slow or stop the base deterioration caused by water infiltration
through cracks can be accomplished. It is estimated that $300,000 annually would
have a positive impact on street maintenance.
• The largest element of this program is direct street rehabilitation and repair. While
maintenance and point repair covered above are critical to the long-term condition of
• our streets, the majority of the revenue should be allocated directly to rehabilitation.
The City does not have manpower and equipment to resurface residential streets, nor
!_vim
is the capital and personnel investment for such a program recommended. This
program will be patterned after the successful contract concrete program discussed
above. An annual contract would be executed for a paving contractor to perform the
following work on a "time and materials" basis:
o Milling off the damaged/deteriorated surface of the street,
o Repairs to the sub-base, including crack sealing, to ensure a long life of the
overlay,
o Overlay with approximately 11/2" of asphalt.
Many of our residential streets have concrete curbs and gutters with an asphalt-driving
surface. If repairs to this concrete area were needed during rehabilitation, the existing
contract concrete crew could be utilized. Minimal, if any, engineering costs would be
incurred in this program and either Engineering or Street Department staff could
identify the areas for base repair after milling is complete. Using an average width of
22 feet and estimating 35% of the surface would require base repair, this program can
rehabilitate approximately six (6) miles of residential-type streets per year. The
construction impact on our citizens and other drivers is also greatly reduced in this
program. The job on a specific street, start to finish, can usually be completed in days
instead of weeks or months. In most cases, the streets remain passable during the
construction project. The longest closure period is during the overlay and that is for
hours, not days.
A three element street maintenance and repair program, as illustrated here, can improve a
significant number of a our residential-type streets each year while working to extend the
useful life of all of our streets through preventive maintenance and point repair programs. •
Staff is ready to provide any additional information regarding a street maintenance program.
• • •
Street Maintenance Sales Tax
Possible Budget Allocation and Work Plan
Estimated annual revenue based on 1/4% sales tax $1 ,500,000
Contract Crack Sealing/ Preventive Maintenance Program $300,000
Establishment of an annual contract to initiate a crack and joint sealing program to extend the useful life of street
paving. The cracks and joints would be cleaned and sealing compound injected to prevent deterioration of the
sub-base, leading cause of street failure. This process will extend the life and ride quality of our streets.
Contract Concrete Repair $200,000
Continuation of the General fund program to expedite repairs to streets, sidewalks and curbs. These repairs are
often necessitated by utility repairs and installation. Previously, it took city crews weeks or months to make these
repairs. By maintaining a contract for these repairs, the contractor makes them quickly on an as-requested basis
and cost is established by unit measures in the bid. By utilizing a contract for these repairs, we do not incur the
capital costs and utilize as much or little of the services as required and as budget funds are available. This has
been a very successful program and is appropriate for funding the street and curb portion with the street
maintenance tax, relieving the General fund of a portion of these expenses. The current contract amount is
$291,000.
Street Rehabilitation and Repair Program $1,000,000
By following the successful model used in the Contract Concrete Program, a street rehabilitation and repair
contract can be established on a "time and materials" basis to maximize the number of streets that can be
upgraded in this program. The target will be streets that need to be milled, have limited base repairs made, and
then receive an overlay of new asphalt paving. Using an average width of 22 feet, and estimating 35% of the
surface requiring base repair, this program can rehabilitate and resurface approximately 6 miles per year. Little or
no engineering would be required and an annual construction bid would establish the program for the entire year.
The imposition on residents would be minimal since this type of program can complete a section of street in days,
instead of weeks or months, and the street generally remains passable during most of the project time.
December 11,2003