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2003 05 08 WS MinutesMINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN May 8, 2003 The City Council of the City of Baytown, Texas, met in work session on May 8, 2003, at 5:50 p.m. in the Hullum Conference Room of Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Ronnie Anderson Council Member Coleman Godwin Council Member Calvin Mundinger Council Member Don Murray Council Member Mercedes Renteria III Council Member Scott Sheley Council Member Pete C. Alfaro Mayor Gary M. Jackson City Manager Ignacio Ramirez, Sr. City Attorney Gary W. Smith City Clerk The meeting was opened with a quorum present after which the following business was conducted: Discuss outsourcing ad valorem tax collection to Goose Creek Consolidated Independent School District. City Manager Gary Jackson responded to an inquiry from Council Member Renteria concerning the applicability of the conflict of interest statute to an employee of the school district who served on City Council. Mr. Jackson referred to an opinion from the Texas Attorney General, a copy of which was provided to the members of Council, which held that a school district was not a business entity and that the conflict of interest provisions did not apply in such case. Mr. Jackson continued to relate that staff is looking for ways to reprogram funds, outsource services, increase revenues and other means to provide services more efficiently and effectively. Assistant Superintendent Paul McLarty of Goose Creek Consolidated Independent School District has met with City staff to review the potential of joint activities between the City and School District, including joint tax collection. Donna Sams, Finance Director, reviewed the proposal with City Council. The benefits of the program include the elimination of duplicate efforts (both the City and School District mail tax bills and employ personnel to receive payments), provide a single location for the payment of local taxes, simplification of activity for taxpayers (one tax bill, one payment location), and redirect staff to the utility billing/collection function. In order to properly perform tax collection, the City would be required to make additional expenditures. The School District has made the expenditures and is currently collecting taxes for Lee College. The net savings to the City are projected to be $74,500. No disadvantages have been determined. The Finance Committee has reviewed the proposal. Council Member Anderson noted that additional savings might result from the redirecting of staff activity to the utility billing/collection activities. Page 2 of 2 Minutes of the Work Session — May 8, 2003 Ms. Sams introduced Suzi Tallent. Ms. Tallent has headed tax collections for the City and if the joint program is approved, will serve as the liaison for tax collection. Council Member Murray asked staff to study whether using a single law firm to collect taxes would bring additional savings. Mr. Jackson responded that the legal activities could be made joint or could remain separate. The contract will allow that flexibility. Mayor Alfaro stated that he has received assurances that the School District office will be able to do the job. He then asked about the proposed duration of the agreement and if there would be provisions related to increases in fees. Ms. Sams responded that the initial term would be for one year. Ignacio Ramirez, Sr., City Attorney, responded that the School District did not want to use a Consumer Price Index factor for increases. The contract will contain a provision to establish a maximum increase in fees. The School District has expressed a desire to cover their costs and not make a profit from the activity. Mr. Jackson noted that any increases would be the same for the City and Lee College. Mr. McLarty stated that the intent was to simplify the process and ask for an increase only if the cost increased. The contract would contain an annual ceiling on increases and a three -year cumulative increase ceiling. Mr. Jackson informed Council that the timeline for the program is to present an inlerlocal agreement to Council for approval at the next Council meeting, without the topic being included in another work session. The goal is to have the program in place for the next tax collection cycle. Council Member Anderson stated that the Finance Committee recommends the program. Mr. Ramirez noted that separate attorneys might be better. The firm for each entity could focus on different taxpayers, thereby generating greater collections. Adjourn. There being no further business, Council Member Anderson moved adjournment. Council Member Mundinger seconded the motion. The vote follows: Aye: Council Members Anderson, Godwin, Murray, Mundinger, Renteria and Sheley Mayor Alfaro Nay: None. The motion carried and the meeting adjourned at 6:09 p.m. G W. Smith City Clerk