Loading...
HomeMy WebLinkAbout2007-08-14-2:00PM-WORKSHOP SESSIONBRAZOS COUNTY BRYAN TEXAS NOTICE OF MEETING AND AGENDA s r D 4: 2q BRAZOS COUNTY COMMISSIONERS COURT WORKSHOP SESSION THE COMMISSIONERS COURT OF BRAZOS COUNTY WILL MEET IN A WORKSHOP SESSION ON TUESDAY 14 AUGUST 2007 AT 2:00 P.M. IN THE COMMISSIONERS COURTROOM OF THE BRAZOS COUNTY COURTHOUSE, 300 E. 26TH STREET, SUITE 115, BRYAN, TEXAS. 1. Call to Order 2. Presentation by the County Treasurer on Compulsory Direct Deposit. 3. Adjourn The Brazos County Courthouse is wheelchair accessible. Handicap parking spaces are available. Any request for sign interpretive services must be made two business days before the meeting. To make arrangements, call (979) 361 -4102. Office of the County Judge . 300 East 26" St. • Suite 114 . Bryan, Texas 77803 . Fax: (979) 361 -4503 �J rr -•. Q , V L 11 ^ 1-: l - �V I of 16 COMMISSIONERS' COURT WORKSHOP SESSION August 14, 2007 The Commissioners' Court of Brazos County, Texas met in a Workshop Session in the Commissioners' Courtroom in the Courthouse in Bryan, Brazos County, Texas, beginning at 2:00 p.m. on Tuesday August 14, 2007, with the following members of the Court present: Randy Sims, County Judge, Presiding; Lloyd Wassermann, Commissioner of Precinct l; Duane Peters, Commissioner of Precinct 2; Kenny Mallard, Commissioner of Precinct 3; Carey Cauley, Commissioner of Precinct 4; Karen McQueen, County Clerk. Attached is a list of the citizens and officials in attendance. Attached is a transcript of the meeting. Vol �g Page a-1 2of16 BRAZOS COUNTY COMMISSIONERS COURT Compulsory Direct Deposit August 14th, 2007 Sims: It is 2:00 p.m. on Tuesday the 14th of August, 2007 and I will call this workshop into session. The first item on the agenda is, `Presentation of the County Treasurer on Compulsory Direct Deposit.' Ms. Kay? Hamilton: This is just sort of an outline of what I'm going to talk to you about in case you want to make any notes or have something in the form of a reference. The purpose of the workshop is to give all of you some information so that you can make a decision regarding whether or not you would entertain making direct deposit a requirement of employment in Brazos County. The basis for considering this is the cost of issuing a check, printing a check. At one time John Reynolds had come up with $7.00 per check. I have tried to find statistics for that but I have not been able to find anything definitive but it is an expense to the County to write a check. Also, when you issue a check then you have an opportunity for it to be lost or misplaced which create unclaimed funds issues. Not so much with payroll checks but there are occasions when checks are lost or misplaced. Normally if it's a vendor, we ask that they wait a month. But with a payroll check, you don't want them to have to wait that month. Mallard: How many lost checks do you have a month? Hare: Well sometimes we go months without having any. Mallard: How many a year? Hare: Maybe a half dozen. Six to eight a year, maybe. Hamilton: It just becomes a little more expensive there because we don't ask our employees to do the stop payment. The County absorbs that $25.00 cost. Vol a$ Page 3of16 Mallard: You say we absorb that, so we require a stop payment? The County ... I mean somebody is doing a stop payment. Hamilton: If you're going to reissue a check, we're going to stop payment on the original. Mallard: All right. Hamilton: There are also times when employees are away from the work place on the day that checks are distributed for illness or vacations and that can present a problem for the employee not to be able to get the check on the day of the issue. So the solution for some of these issues is to make direct deposit compulsory. Most Federal and State Government funds are not issued with checks and Texas A &M payroll checks are direct deposit. I'm not sure about the Cities of Bryan or College Station. Hare: I know College Station is. I believe the other two are direct deposit. Salazar: They don't encourage checks. They don't tell you that they won't issue you a check but they don't offer it unless you ask for it. There is a very small percentage of people that have checks issued. Hamilton: I know many Counties are going to this and most of them that I'm familiar with are just doing this in regard to new hires. If you're already in place, that's fine. But from now on, as a condition of your employment with Brazos County, this would be a requirement of your salary ... to be on direct deposit. Attached is an email I received from Dallas County. (Attached email read aloud.) The online viewing or printing is something that we were told would be available when we went to this newer Pentamation module that we are on, but it turned out that wasn't the case. That may be something that will be available to us soon ... the ability to email the pay stubs directly to the employees or to the department head or elected official to distribute to the employees there. That brings me to another item and there is an issue of the employee who does not have a bank account. One solution is that our current depository bank, CitiBank has said that they would be happy to open personal checking accounts for any of the County employees at no charge. Cauley: They will open the account? But what about the other charges? Vol l3 Page � 4of16 Sims: Dropping below a certain balance? Cauley: Checking cashing charge and all of that? Hamilton: They said that they would not charge for cashing... that's what I was saying; if we go to this we'll certainly get all the answers pinpointed. Cauley: There's just no charge in perpetuity? Mallard: I doubt that. Hamilton: I doubt it too. It might be just as long as they are the depository. Cauley: What if we change endorsers? Hamilton: Then that could change. Sims: What are paycards? Hamilton: Ok. That is probably the best solution. Mallard: Debit card. Hamilton: I talked to the bank and they are quite willing to come and make a presentation so they could answer all the specifics to that. But, briefly, it's like a debit card. If you're familiar with Aggie Bucks, it's similar to that. You have a card and every time there is a pay period they load up that amount on your card. Now you can either go directly to the bank and present your card ... now you have to take it to CitiBank, I'm assuming... another bank may cash it in for a charge... and it will cash, just like a check. Sims: Well now wait, if it's like a debit card, you can use that at vendors? Hamilton: I think so, I'm not... Mallard: Yes. It'll be like a Visa or MasterCard and you can go and present that and every time you use it, it dials into the bank or finds out what your balance is and then reduces it. If it zeros out, then it's zeroed out. But the next month it's got your check in it. Hamilton: And like I said, that's the other option that Dallas County had gone to for their employees... new hires ... who did not have a checking account and did not want one. So every time there is a payroll it just gets loaded into the card. And I know there's a little charge to the initial card and if you Vol q$ Page a+ 5of16 lose a card there's a charge but when you think about the charges to cash a check at a check cash place that charges a percentage. Hare: If you take your check to Citibank where we issue it, there's no charge to cash it. McLeod: But if you take it to another bank, they charge you. Sims: Maybe we need to send another alert out to those people that are getting checks and this type of thing. Gallego: Some of it may be that they're doing it after hours or something and the bank is closed. Because a lot of those places you can do it at the grocery store... Mallard: They get their check and they get home at 5:00 o'clock, they can't go to the bank. Hamilton: Employees will still receive a copy of the check stub, even if you're on direct deposit or if you went to the paycard. And as I mentioned, they would be happy to come and make a presentation regarding to paycards. Conner: I'd be curious to find out if they could use it at an ATM machine and withdraw down to zero. Mallard: I bet they could but it would charge them whatever... they usually charge you a dollar or two dollars or whatever. Just like any... Gallego: Unless it's Citibank's. Mallard: Most of those cards, though ... if you're using it in a bank, they only allow you to draw out so much money. You couldn't draw out your entire check amount. You could probably draw out two hundred dollars. Gallego: Normally there's a limit like two or three hundred dollars a day. Sims: But what if they were using that to pay for their rent and their food for that next couple of weeks? Gallego: Well, they'd have to take a check to a bank just like they would a paycard. Mallard: You probably wouldn't pay your rent with that card because I doubt if the rental place would... Vol q$ Page � 6of16 Sims: Well, you'd have to draw the money out and go pay the rent is what I'm saying. Mallard: Correct. Sims: Could you draw out enough to be able to pay your rent? Conner: If you wanted to make it just like a check though, they should be able to let you draw it down to zero. Mallard: At the bank. Conner: At the bank. Mallard: But the impact card, I doubt that they'll do that. Because, otherwise, somebody will go in there and suck all of the money out of it. Hare: And most of those don't pay less than a $10.00 ... you can't get change, you know? I don't think you can get $5.00. Gallego: That's true. Mallard: Yeah, it couldn't give you so many ones and change and all that. Gallego: Twenty on this one. McLeod: So see if they wanted to cash it in here... Gallego: They could do in $20.00 increments but they couldn't do down to the... Mallard: To zero it out, they probably have to go to CitiBank or ...did you say another bank would honor those? Hamilton: I don't know. I would assume that if they're like a debit card, they would just read on a card reader... Gallego: Or if it worked likes the bank cards that you can buy as a gift card and just load it on there. They take them anywhere they take Visa or MasterCard or American Express. Mallard: Then I assume it would be more like that. Hamilton: I'm not sure. I talked to the bank about making a presentation and they are happy to do that. If yall are not interested in going this direction, we Vol qg Page a� 7of16 don't need them here. But if we are then they will certainly come and answer all of this. These are questions that I don't have the fine details to. Mallard: I'd be interested in hearing from our guys from Road and Bridge on their thoughts on this. Arnold: I use direct deposit but that's me. We have a whole bunch of guys out in the field that they get their paycheck, they go straight to the bank, cash it, and that's what they live off o£ Mallard: Do they go to the bank or do they go to the check cashing place? Arnold: Both places. They don't necessarily go to the bank and they're not going to have a bank account, don't want one, never had one, they've survived for 50, 60 years. Mallard: If we could give them a card that would have that amount and they would take that to the bank, do you think they could... Arnold: What they're going to question is what Commissioner Cauley said; "Is it gonna cost me money to do this ?" Mallard: Only if it's costing them money now to go to a check cashing place or something like that. If they're going to CitiBank then they wouldn't be charged. Gallego: I can only see more flexibility with the card over the check. I don't see any... Mallard: But I'm sure there's going to be some resistance but if it equaled... and they just went down to CitiBank and it zeroed out and they handed them that in cash money. Arnold: I agree with you. Mallard: Do you think they would be ok with that? And I know there's resistance to any kind of change. Arnold: I think it's the greatest thing on earth, you know. I don't have to mess with it. But there's people that... McLeod: If they could go to the drive in they would go but if they have to walk in to a bank ... because if they get off work dirty, they're not gonna go in the bank. They won't even come up here. Vol �� Page o % 8of16 Hamilton: The other question I had from HR was because setting up someone on direct deposit and then when their employment ends ... it might be for a while a least, our temporary employees, we might not want to do that. I don't know if that would be... McLeod: What are you going to do if a couple gets divorced and he goes down and closes his account and don't tell us, which they do now. Hamilton: I know we've always had some issues with people that aren't timely in letting us know that there's been something that's changed with an account. So those are all things that... Arnold: Can you mandate that in Texas? Is Texas a state that you can mandate that in? Hamilton: Evidently. If Dallas has a requirement for ... now they said they still pay... Sims: A hundred of them. Arnold: So they might not mandate, they might just... Sims: What are our numbers here, do you know? Hamilton: This last payroll on August 3'd, we paid 762 people total and 172 of that were actual checks with 590 were direct deposit. Sims: 172 were checks and what...? Hare: 590. Mallard: Well why don't we just maybe try to help educate and see how many more people we can get on there by sending them information. Do we know where most of the folks are? Are they in a few departments or... Hare: They're spread out. I normally make a deal with them ... if they lose their check or it gets washed or their dog eats it ... I'll tell them, "I'll cut you another check but you have to promise you'll go downstairs right now and sign up for direct deposit and that normally works. Mallard: Well I would think that we just offer direct deposit and when we get hires we tell them this is the program. Sims: I think some of them don't know what direct deposit is. I guess that's going to fall on HR, trying to explain to them what direct deposit is and Vol �8 Page � 9of16 the timing of the direct deposit which it goes in at 9:00 o'clock on payday. Mallard: If you lose the card is there some recovery method there? Hamilton: I'm sure it would be like stopping the payment. Sims: Do they have a customer code that you have to plug in when you put the card in? Mallard: Yeah, it's a password. Hare: Yeah, like a PIN number when it's issued, just like a bank card. Hamilton: If you would like, I'll get a representative of the bank come and make that presentation. Sims: I think that would be a good idea. It took me a while to adjust to direct deposit but I've done it for long enough now, it doesn't make any difference. The thing about it is, I like choice for people. Is that not right? And, ah, I hate to see it cost them money and us money too. But still I think we should try all we can to give them that choice and hopefully we can convince some more that maybe they will go on the direct deposit or, at least, go the card route. Gallego: Could you add the card and the option instead of requiring it and just see how many would take to that. Mallard: Well you'd still have to sell it. Nobody would know about it unless you... Gallego: But right now you're only choice is direct deposit or not. Sims: It's got to be explained to them. Gallego: If they had that option of the card, it would be like getting a check to me, with more options and not having to go to... Mallard: And to reassure them that just because they lost the card itself, it doesn't lose their funds. They're secured. So if somebody stole it or they lost it then that's actually a little more protection than carrying a lot of cash in your pocket. But I don't like to be without a little cash in my pocket. Hamilton: And you would think that if someone were to steal it, if they don't know the PIN number they wouldn't be able to... Vol a K Page 99 10 of 16 Sims: If somebody does want that card, we've got to tell them that the PIN is important to keep to yourself. Mallard: Well, and they can use it as a credit card. So someone could go and use that card in purchasing items at a store. So they have to know what protections you have is it then I charge you if it's a fraud or do they charge you the first $50.00. I mean, there's so sort of penalty. Gallego: Well there may not even been a PIN number. On the bank cards that you get for gift card, there's no PIN number. Mallard: I understand. Gallego: I'm just saying (overtalking) Mallard: But if you go to a store and buy $100.00 worth of groceries, they're going to run that through the machine. Gallego: But I'm saying there may not even be that security as far as a PIN number. Because I know the bank cards that we've gotten as a gift, they don't have a PIN number, it's like a credit card on it. Mallard: So there would be that. Wassermann: How many are they issued? What if there's a man and a wife ... each one is going to have one, right? Arnold: And I had a guy tell me that. I take money home and give it to my wife, she don't know what I make. Wassermann: How many cards would they be issued? I didn't mean it that way. Arnold: Well I had a guy tell me that. Wassermann: If you only issue one, who's going to have it. Sims: He's talking about a card. If I got a card, my wife would want one and I'd want one. And we'd be using out of the same account. Wassermann: Yeah. Mallard: They would take the check or the card and just cash the whole thing in every month. There are people that a check is the only way it's going to work. Vol c Page &6 11 of 16 Wassermann: I'm talking about one. With only one card that means only one person in the family can use it. Gallego: Yeah, but they could cash it. A debit card on that checking account. Arnold: It would be good for the bank to educate us but I think the people that we need to educate are the ones that aren't on the card or the direct deposit. I mean, they've got some kind of hang up why they don't want to bank. Mallard: Is there a way that if we do some of the people in the different departments that we could ask some questions of them and see if... Sims: Could yall guys find out if you know of some that are getting checks and see if you can find out what they're aversion is to having a direct deposit or a card or whatever? Arnold: Yes. Sims: Yes sir. Jeans: Ask them if they've ever used a Wal -Mart gift cards, because that's about what that check cash card will be. Mallard: Yeah. That's what it will be. Jeans: And 99% of everybody from this County has used a Wal -Mart gift card. Sims: But do you have a validation number? Gallego: No. Jeans: Not on a Wal -Mart gift card. Sims: See if that card gets out it doesn't make any difference. If I get your card, I can go to Wal -Mart and I can use that card and buy as much as it'll let me get. Mallard: But this one would have more security on it. This would be more like a credit card, but there's still usually at least a minimum penalty on that if it's lost or stolen and used by someone else. Hamilton: And those are things we'd need to find out from the bank. Vol 119 Page 31 12 of 16 Mallard: I guess one question would be; do they have a credit card in addition to that and have they used the gift card and would they be willing to get their check that way. Arnold: I can poll them at the yard because I imagine that a bunch of that 172 is at Road and Bridge. Sims: It would be interesting to know what they have against the direct deposit. Arnold: Yes sir. Sims: If they say, `I don't have a bank account.', then they can't get direct deposit. Mallard: You wouldn't have to have a back account to have that card. Sims: Yeah, but you would with direct deposit. Arnold: No, the bank would set up an account on that card wouldn't it? Jeans: We really need that information before we go out there to them. Sims: When do you think we can get them? Hamilton: It'll probably be next month. Gallego: See, I understood that it would be a card you could go anywhere and cash it but you understood it would be a bank account... Arnold: It would have to be some kind of account set up at CitiBank. Gallego: I thought the whole thing was that they loaded it on that card and you can cash it anywhere? Hamilton: I don't know if they track that to a number that is sort of like an inactive account or whatever they call it. Mallard: If you lost it or it got stolen, you'd have to have somebody track it so CitiBank would have to have some accounting. Arnold: I think they have to have individual accounts for their cards to account for that money on each card. Mallard: Whether they're a charge for it or not...? Vol aK Page 3,2- 13 of 16 Arnold: I don't know. It wouldn't be a big pool of money they were drawing all of these cards out of. Gallego: But all these Wells Fargo bank cards that you get for Christmas, those are a million different accounts? I mean how do they do it? (General discussion among attendees.) Hamilton: I have a little gray area about temporary employees ... I don't about know setting all this up for somebody that you know is only going to work a month. I don't know, I haven't thought through all of that. Do we just leave them on a check system? Sims: Of course, right now, Road and Bridge has temporary employees working 80 hours a pay period. Don't know how long that's going to last. Mallard: But still, they're temporary. Sims: They're temporary, but they're working 80 hours every two weeks. Mallard: That doesn't worry me but if they're only working for two month, then there's only going to be four checks so you wouldn't want to put them on a bank draft for four checks. Hamilton: In our discussion at Treasurer's meetings, I've heard some Counties say that they don't. They just keep that as a separate group. For one thing, it takes on whole pay period before it will cycle into the direct deposit. What do you call that Rhonda? Hare: Pre -note. Hamilton: Pre- note. Ok. Mallard: Temporary people, I just wouldn't go there, if they were six months or less. McLeod: But see, you don't know if they're going to be six months or less, you really don't. (General discussion among attendees.) Sims: Is there anymore out here that have any questions? Please ask them. Vol q&_Page 33 14 of 16 Richardson: If somebody owes the bank money and that's why they don't have a checking account ... how is that going to work? Will the bank take their money from the card? Mallard: If they can. Conner: I do know that if you have a loan and delinquent, it'll swipe that account like that. Richardson: That might be why some people don't have direct deposit. Arnold: IRS garnishment and all of that... all of the above. Gallego: And why they use the check cashing place. Hamilton: Let's do this; if you all would get some information for us and then we'll have the bank come some time... Mallard: We need to find out more from you and the bank. Hamilton: At the end of September, we'll have another, we'll let them come make a presentation so they can answer because I don't know the details. Sims: Why don't you get CitiBank to brief you very thoroughly on this? But we'd like to have CitiBank come in too. Hamilton: Right. Right. Sims: But it would be helpful to you, I'm sure, to be completely briefed. Surely they have accounts out there that have numbers of employees like we do and there may be some things that they can do other than what we've already heard that Dallas is doing. Yes ma'am, Becky? Stephens: Couldn't we find out how A &M handles it? Hamilton: She said that she felt like they still have an option. Sims: It's not mandatory? Salazar: From my understanding (inaudible) because they were doing all their HR stuff (inaudible). I'll check. Sims: Thank you. Vol 99 _ Page 24. 15 of 16 Hamilton: Ok. That's where we'll head from here then with getting more information and having a good presentation from the bank. And then we'll make a determination if this is something we would put on the agenda for the Court to vote for with this as a condition for hiring. Sims: If we choose to do this. Right. Hamilton: Thank you so much. Sims: Ok. Thank you. Any other question on this item? All right. We will adjourn this workshop session. Vol q S Page 35 16 of 16 The foregoing minutes of the Commissioners Court Workshop held August 14th, 2007, have been examined and approved in open Court this the day of &V, , 20 , in Bryan, Brazos County, Texas. Duane Peters Commissioner, Precinct No. 2 U b 5u'1 t' Carey Cauley, Jr. Commissioner, Precinct 4 Attest: G aren McQueen County Clerk Vol q�_ Page ftX Lloyd Wassermann Commissioner, Precinct No. 1 Kenny Mal Ard Commissioner, Precinct No. 3 Pg I_ or V. BRAZOS COUNTY COMMISSIONER'S COURT DAY OF 920 F� -AA44M9 Name (PLEASE PRINT) qua ,qC- & .1Zc 2D Az?Ai Organization (PLEASE PRINT) &, (.&A/l te-� �g� 37