2006-06-07 Special Called Regular Meeting of the La Porte City Council

Browse Search

City Council Special Called Regular Meeting - June 7, 2006 Page 2 Ayes: Mosteit, Moser, Ebow, Engelken, Rigby, Beasley, Clausen and Mayor Porter. Nays: None Abstain: Councilmember Mosteit and Rigby abstained from Item A. 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. There were no citizens wishing to address Council. 7. Assistant City Manager John Joerns provided a report on Foreign Trade Zone. Ron Carey of Port Crossing provided Council with an overview of the proposed Foreign Trade Zone. He further informed Council of the benefits and indirect benefits. The Foreign Trade Zone incentives will remain consistent with Industrial District Agreements and have the same seven (7) year term. It was the consensus of Council for staff to put on agenda for June and authorize staff to send a letter of intent by the following Tuesday requesting an additional 2-3 weeks time. The letter is to include statements on abatements. A copy of the letter is attached as exhibit A. 8. Human Resource Manager Robert Swanagan and Health Consultant Neal Welch provided council a presentation on Employee Retiree/Health Insurance. Human Resources Manager Robert Swanagan reported since he first advised Council the Chapter 172 had not met, they have since met and made it a priority to meet and discuss relevant issues, gather related information, and to understand the complexities of the health insurance issues. They have made an attempt at making informed decisions regarding benefits for active retired employees in the City of La Porte. We are attempting to meet all 7 chapter 172 Texas Political Subdivision Uniform Group benefit program requirements through review, evaluation, and making recommendations to the City of La Porte Management regarding the employee and retiree benefit program. In 2006, we've met 3 times and will be scheduling another meeting shortly. Retirees and active employees are encouraged to attend our meetings even though they cannot participate. They can observe the discussions and deliberations of all relevant issues. Mr. Swanagan then turned the presentation over to Neil Welch of Hilb Rogal & Hobbs. Mr. Neal Welch's comments: Mr. Welch informed Council they have some tough decisions to make. He noted some budget decisions have to be made and taking into consideration some new federal guidelines relating to accounting principles for our retirees and our health plan. Council needs to consider some issues for this coming year. He noted he met with the chapter 172 and had an active and lively discussion of the retiree and active health program so the information provided in the book is similar or probably identical to what was given to you before but a few items were added. Tab 1 was discussed. It was noted the City of La Porte is not alone with health care concerns. He informed Council this is a brand new study that mercer just completed it just came out about the whole issue of health care costs and specifically retiree health care costs