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1968 09 19 CC Minutes, Special4554 MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS September 19, 1968 The City Council of the City of Baytown, Texas met in special session on Thursday, September 19, 1968 at 6:30 p.m., in the Council Room of the Baytown City Hall with the following members in attendance: Glen Walker Don M. Hullum A. M. Braswell Albert Fanestiel * Lamar Kelley Seaborn Cravey Fritz Lanham William R. Laughlin Edna Oliver Absent: Ted L. Kloesel Councilman Councilman Councilman Councilman Councilman Mayor City Manager City Attorney City Clerk City Councilman The Mayor called the meeting to order and the Invocation was offered. He then opened the PUblic Hearing upon the proposed 1968 -69 budget which was scheduled for this date, and hour. Lester Alford - Evening Optimist Club of Baytown Lester Alford, spokesman for the Evening Optimist Club of Baytown, appeared to endorse the action of the Council in appropriating funds in the proposed budget to provide Juvenile Detention facilities at the City Jail. He read-a formal statement from the Club stating its conviction relative to Youth and the educational program which is needed to teach respect for the law which is one of the cornerstones of our nation. Furthermore, the Club urged the adoption of such a program in Baytown in order to show unwanted wayward boys and girls of the area, who are in contact with the Baytown Police Department, that the community does want them. The members pledged them- selves to support and assist in the administration of such a program. Hearing Continued City Manager Lanham reported that the changes made by the Council during the review have been incorporated in the budget. The totals were not changes. Any surplus which remained after the changes were incorporated was placed in the Street Improvement Fund in accordance with the instructions of the Council. The total of the Street Im- provement Fund - Captial Outlay now stands at $235,720.00. Recommended changes to finance the proposed expenditures included increasing the trash and garbage from $1.25 per month to $1.75; the sewer charge increased from $1.00 to $1.25 per month for residen- tial customers - commercial, by approximately 25 %; and, eliminating the 25, 20 and 18 cent brackets in the water rates. He concluded his remarks by presentation of an ordinance adopting the budget. After reading the ordinance, Councilman Fanestiel called for the caption and moved to adopt the ordinance as read. Councilman Walker seconded the motion. Councilman Braswell stated his position on the budget and his objection to a 4% pay raise to employees, he favored a 3% raise; the contingency for the Health League; purchase of park land - these could be eliminated for this year. Following his comments, Mayor Cravey called for the question. The vote follows: Ayes: Councilmen Walker, Hullum, Fandestiel and Kelley Mayor Cravey Nays: Councilman Braswell The caption of the ordinance follows: ORDINANCE NO. 934 AN ORDINANCE ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 1968, AND ENDING SEPTEMBER 30, 1969, IN ACCORDANCE WITH THE CHARTER AND ORDINANCES OF THE CITY OF BAYTOWN; AND PROVIDING FOR THE PUBLICATION OF THIS ORDINANCE. 4555 Ct I. Umholtz - 1968 Board of Equalization Report C. L. Umholtz, Chairman of the 1968 Equalization Board, presented the Council with a copy of the certified 1968 Tax Assessment roll and a report of proceedings of the Board in compliance with the Charter of the City of Baytown. The total assess- ment value based on Fair Market Value is appmximatly $153,562,675.00 based on a ratio of 508.. A total of 52 property owners came before the Board to be heard, one specifically being management of the San Jacinto Methodist Hospital. He referred to a special hearing which was held to obtain a property value of the hospital since the hospital had failed to submit an inventory of properties and a rendition to the Tax Assessor during the rendering period. The Hospital Board had claimed exemption from taxation because of its charity work. It was explained that the question of exemption is of a legal nature and handled only through tht Tax Assessor and his legal Counsel, the City Attorney; the Equalization Board's primary function to guarantee tax equality to the taxpayers of the City of Baytown. Other business conducted was the final Indus- trial District values based on the contract, reevaluation of properties in the Brown - wood area which is subject to flooding - reduction to be made by percentage based on elevation, increase in assessed value of utilities, an increase in the metes andbounds properties of the northeast section of town, specifically Christian Smith, J. W. Singleton and Whitney- Britton Surveys. This is part of the program by quadrant outline on an every four -year basis adopted by the Board to keep the values current. He concluded his report with a recommendation that some help be given the Tax Assessor . on the field and detail appraisals which make up the bulk of the assessment rolls. The Council expressed its appreciation to Dr. Umholtz for the work done by the Equalization Board of 1968. San Jacinto Memorial Hospital - Exemption Request Robert Morse, a Houston Attorney representing San Jacinto Methodist Hospital with several members of the official Board and some of the staff of the Hospital appeared at the Public Hearing in support of their plea that the exemption, given by the law to this hospital from ad valorem taxes, be recognized by the City of Bytown as it is by every other taxing agency including the School District, the State and County, the franchise division of the State and the United States REVenue Service. He pointed out that the hospital has been serving the community for the past 20- years. It was donated to the community by industry and has increased in growth under theleadership and guidance of a Board of Trustees from the community who have served without menetary compensation. It is owned by the Methodist Church, it is a non - profit corporation, no money will ever be taken for the benefit of any person, it is supported in terms of its projects for improvmenet by the Hill-Burton funds granted by the U. S. Government, by contributions by public- spirited citizens, foundations and charities and charges made to people who can afbrd to pay for the services as patients in the hospital. The threat of the ad valorem tax of $12,000 forces them to try and get an audience with the Equalization Board as to the basic question of the charitable nature of the hospital. In his opinion the City Council can exempt property from taxation as the State Statutes make this provision. Mr. Morse stated that he was of the opinion that if charity is given to every- one who seeks it and no one is turned away on the basis of financial inability to pay, a hospital has made itself a charitable organization within the law. This, he contended, is the position of San Jacinto Methodist Hospital. Mayor Cravey stated that he was not familiar with the statutes which gave the City Council authority to overrule the action of the Equalization Board, but he was familiar with the City Charter which seems rather clear in its intent to make a clear division of powers between the Council and the Tax Equalization Board; these shall be completely separated and the Council, after its appoints an equalization board, its only action under the charter is to set the tax rate. He was of the opinion that this seems to be highly proper that the Council divorce itself from interference with the action of the egalization board. Mr. Morse was of the opinion that the Charter grants the equalization board more authority than the City Attorney has instructed the equalization board to exercise. Mr. Morse stated that he did not think the tax- assessor can make a binding decision which cannot be corrected or overruled by the equalization board or the council. If the hospital has done something wrong in its admission practices, let this be known so that a correction an be made, but do not tax them as this takes money out of one beneficial place and puts it in another. For clarification, the City Attorney explained that the equalization .board does have the right to correct clerical errors, but does not have the authority to correct errors in judgement about exemption - this has been ruled upon by the Texas Supreme Cour. Mr. Morse, however, did not agree as the council sets procedures as long as there is no conflict with the statutes. In answer to a question presented by Council- man Walker, Mr. Morse stated that this is a mixed question of both law and fact. The application relative to the request for exemption of the hospital from ad valorem taxes based on it being a charitable corporation is a fact question. The Council cannot by whatever it decides, keep them from going to court if they have to do this to get the question answered, but he did suggest that the Council was not powerless to solve 4556 the problem before such action has to be taken. He further stated that he was of the opinion that the Council can stop this, the Equalization Board, the City Attorney and /or the Tax Assessor - Collector could have stopped it and if neither chooses to do so, the Courts will stop it. Now is the time to do it with the least expense involved. City Attorney Laughlin interrupted the presentation at this point to explain to the Council and those attending the meeting, the point of conflict and the difference of opinion. There is no State nor Federal law that prevents the taxing of a church hospital. He agreed the question was jointly of law and of fact - whether San Jacinto Hospital, or any other hospital, nursing home, etc., actually operates in a manner required by law to be entitled to an exemption as an institution of purely public charity. Mr. Morse a- greed this was the case in question. Mr. Laughlin stated that the questions he has asked and the statistical information he has requested was for the purpose of deter- mining, whether or not, the hospital has operated so as to qualify for an exemption. He was of the opinion that the appearance of Mr. Morse before the Council was for the purpose of asking them to accept the hospital's contention that it has completely op- erated as a charitable institution and is entitled to exemption by law - he was asking. the Council, at this point, to stop the City Tax Assessor or City Attorney from trying to make a legal determination about the taxability of the hospital. Mr. Morse contended that nothing has been presented to the Board to indicate that the hospital has not operated as a charitable institution. Councilman Braswell suggested that if it is not a question of law and the hospital will agree to operate so as to qualify for an exemption, to allow an exemption- this year and see that it is operated as such. Mayor Cravey stated that the City Attorney has advised them that the hospital has not qualified for the exemption according to his interpretation of the law and the Mayor is not convinced that the Council has the authority to make such a decision. Councilman Kelley stated that he felt that nothing could be gained by going to court - he suggested that the two parties get together once again and try to reach an agreement. If any agreement is not reached, the representatives of the hospital may then come back to the Council. Councilman Hullum felt that he needed more information since he was not familiar with the details of the misunderstanding. Other matters relating to the request for tax exemption were brought out. Councilman Kelley moved to table further discussion until the legal representatives of both the City and hospital have held another meeting. Councilman Braswell seconded the motion. The vote follows: Ayes: Councilmen Walker, Hullum, Braswell, Fanestiel and Kelley Mayor Cravey Nays: None The Council commended both parties for supplying information which better informed the Council of the basis of the conflict and the question which must be resolved by both parties before a staisfactory agreement can be reached. * Councilman Kelley excused from meeting.. Ordinance - Setting Tax Rate 1969 Councilman Walker moved to adopt an ordinance fixing the tax rate for the City of Baytown for the fiscal year ending September 30, 1969 of One and 49/100 ($1.49) Dollars on each One Hundred dollars worth of property. Councilman Hullum seconded the motion. The vote fellows: Ayes: Councilmen Walker, Hullum, Braswell, Fanestiel and Kelley Mayor Cravey Nays: None The caption of the ordinance follows: ORDINANCE NO. 935 AN ORDINANCE FIXING THE RATE AND TAX LEVY FOR THE CITY OF BAYTOWN, TEXAS, FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1969, UPON ALL TAXABLE PROPERTY IN SAID CITY OF BAYTOWN, TEXAS, IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE CHARTER PROVISIONS AND ORDINANCES OF SAID CITY; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT THEREWITH. 4557 Bids - Water Line Price, Sterling, Decker and Bayway Drive Sealed bids on the construction of 1,520 feet of S" water main on Price Street, West Sterling and Decker Drive, and construction of approximately 1,250 feet of 6" water main on Bayway Drive were received and tabulated as follows: Bayshore Constructors, Inc. $25,715.00 45 working days George Consolidated $28,157.43 20 working days Brown & Root, Inc. $32,562.00 60 working days Councilman Hullum moved to accept the low bid of Bayshore Constructors in the amount of $25,715.00. Councilman Walker seconded the motion. The vote follows: Ayes: Councilmen Walker, Hullum, Braswell and Fanestiel Mayor Cravey Nays; None Accept Report Equalization Board Councilman Fanestiel moved to accept the report of the 1968 Equalization Board and comend the members for its work. Councilman Hullum seconded the motion. The vote follows: Ayes: Councilmen Walker, Hullum and Fanestiel Mayor Cravey Nays: None Adjournment There being no further business to come before the Council, the motion was made and seconded that the meeting adjourn. The ayes were unanimous and the Mayor declared the meeting adjourned. mayorpypmy� ATTEST: l C�\ —r' �cMCIV Edna Oliver, City Clerk