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Home My WebLink About10-18-04 Special Called Workshop Meeting of La Porte City Council STATE OF TEXAS )( COUNTY OF HARRIS )( CITY OF LA PORTE )( CITY COUNCIL AGENDA NOTICE IS HEREBY GIVEN OF A SPECIAL CALLED WORKSHOP MEETING OF LA PORTE CITY COUNCIL TO BE HELD OCTOBER 18, 2004 AT 6:00 P.M. IN THE COUNCILCHAMBERS OF CITY HALL, 604 WEST FAlRMONT PARKWAY, LA PORTE, TEXAS, REGARDING THE ITEMS OF BUSINESS ACCORDING TO THE AGENDA LISTED BELOW Next Ord. 200~2784 Next Res. 200~22 1. CALL TO ORDER 2. INVOCATION - Mayor Porter 3. PLEDGE OF ALLEGIANCE / 4. DISCUSS AN ORDINANCE AMENDING ORDINANCE NO. 2004-2779, AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT WITH HUMANA INSURANCE COMPANY, FOR ADMINISTRATIVE SERVICES OF THE CJIY'S MEDICAL PLAN, EFFECTIVE JANUARY 1, 2005, ADOPTING "HEALTH SERVICE PLAN DESIGN" OPTION, APPROVING AN EMPLOYEE CONTRIBUTION SCHEDULE, APPROPRlATINGIHESUM OF $130,000.00 - S. Sampson 5. DISCUSS AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE EMPLOYEE POLICIES-HANDBOOK RV ADDlNG-SECTION 9A, "REIJREEMEDJCAL COVERAGE", PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE - S. Sampson 6. ADMINISTRATIVE REPORTS - D. Feazelle TML CONFERENCE - OCTOBER 27-29,2004 - CORPUS CHRISTI, TEXAS 7. COUNCIL COMMENIS_-Griffiths, Ebow, Engelken, Mosteit Clausen, Rigby, Moser, Beasley, and Porter 8. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551~OZ6,551.08Z,TEXA&GOVERNMENT CODE, (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR-DONATION, PERSONNEL MATTERS, DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION, DEUBERATION REGARDlNG ECONOMIQDEVELOPMENT NEGOTIATIONS) 551.071 - (POTENTIAL LITIGATION) - MEET WITH CITY ATTORNEY AND CITY MANAGER TO DISCUSS POTENTIAL LITIGATION 9. CONSIDERATIONS AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION 10. ADJOURNMENT If during the course of the meetiflg covered by this agenda the Council should determine that a closed or executive meeting or session of the Council should be held or is required in relation to an item noticed in this agenda, then such closed or executive meeting-Gf sessiens authorized by the Open Meetings Law, Chapter 551, Texas Government Code; will be held by the Council at that date, hour and place given in the meeting notice or as soon after the commencement of the meeting-covered by the meeting notice as the Council may-GOflveniently meet in such closed or executive meeting or session concerning any and all subjects and for any and all purposes permitted by Sections 551.071 througl1551.076, aoo$1..007 of said Open MeetiAQs-law, including, but not limited to: Section 551.071 - For the purpose of a private consultation with the Council's attorney on any subject or matter authorized by law. Section 551.072 - For the purpose of deliberating the purchase, exchange, lease or value of real property. Section 551.073 - For the purpose of deliberating a negotiated contract for a prospective gift or donation to the City. Section 551.074- For the purpose of deliberating the appointment employment, evaluation, reassignment, duties, discipline or dsmissal ofapubJi~officer or employeaoL tcLhear complaints or charges against a public officer or employee, unless the officer or employee requests a public hearing. Section 551.075 - for the purpose of conferring with an employee or employees of the City, only for the purpose of receiving information from the employee or employees or to ask questions of the employee or employees; provided, however, that no discussion of public business or City potic.y that affects public business shall take place between the members of the City Council during the conference. Section 551.076 - To consider deployment or specific occasions for implementation, of security personnel or devices. Section 551.086 - To discuss or deliberate regarding commercial or financial information that the governmental body has received from a business.prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or tel deliberate the offer of aJinancial or other incentive to a business prospect described by Subdivision (1). THIS FACIUTY HAS DISABIUTY ACCOMMODAnoNS AVAILABLE. REQUESTS FOR ACCOMMODA noNS OR INTERPRETIVE SERVICES AT MEETINGS SHOUW BE MADE 48 HOURS PRIOR TO THIS MEEnNG. PLEASE CONTACT CITY SECRETARY'S OFFICE AT 281-471- 5020 OR TOO UNE28U71-5030 FOR FURTHER INFORMA noN. JJid: . MarlhaA1;!:1~c j)~ cf' City Secretary Posted: • • Workshop Agenda: October 18, 2004 The following issues need to be addressed in order to complete the Retiree and Employee Health related Ordinances: 9 A Retiree Medical Coverage 1. The following persons aze eligible for retiree medical coverage: A. Present retirees of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, who have retired in accordance with the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health caze coverage available through the new employer may not continue health coverage.:with the City of La Porte. For those retirees who aze self- employed, occupational illnesses or injuries shall not be covered. B. City employees who retire from the City of La Porte employment on or before December 31, 2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 10 yeazs of service with the City of La Porte, and aze currently employed by the City of La Porte at the time of their retirement. Retirees re- employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte. For those retirees who aze self-employed, occupational illnesses or injuries shall not be covered. C. City employees who retire from City of La Porte employment on or after January O1, 2006 and (1) who have a combination of yeazs of service with the City of La Porte, plus age, totaling 80; and (2) who retire as a qualified annuitant under the Texas Municipal Retirement • • System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 yeazs of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. For those retirees who aze self-employed, occupational illnesses or injuries shall not be covered. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declazed permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicaze. The coverage will be secondary for those retirees and retirees' dependents who aze Medicaze eligible. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicaze. Surviving dependents shall pay the same percentage dependent coverage rate that they paid prior to death of the spouse. • • 3. 4. Retirees who work for another employer offering health coverage shall not be eligible for retiree health coverage from the City after their subsequent employment ends, regardless of the length of service with the subsequent employer. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 5. Premiums: The City of La Porte utilizes aself-funded medical plan so there aze no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Costs to the retiree shall be based on a cost schedule determined by years of service: At least 20 years of service At least 21 years of service At least 22 years of service At least 23 years of service At least 24 yeazs of service At least 25 yeazs of service At least 26 yeazs of service At least 27 yeazs of service Retiree pays 60% of city cost + Dependent premiums Retiree pays 55% of city cost + Dependent premiums Retiree pays 50% of city cost + Dependent premiums Retiree pays 45% of city cost + Dependent premiums Retiree pays 40% of city cost + Dependent premiums Retiree pays 35% of city cost + Dependent premiums Retiree pays 30% of city cost + Dependent premiums Retiree pays 25% of city cost + Dependent premiums ~~ At least 28 years of service At least 29 years of service At least 30 years of service • Retiree pays 20% of city cost + Dependent premiums Retiree pays 15% of city cost + Dependent premiums Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 19, or until age 25 if enrolled as a full-time student in a university, college, vocational or secondary school. A dependent child under the age of 25 who has graduated from a university, college, vocational or secondary school but has not become gainfully employed will be covered for an additional 2 months from graduation. Failure to pay part or all of the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. 6. Retirees may not add dependents once retired. There are no qualifying events to add dependents. Dependents maybe dropped at any time. • MEETING HANDOUTS ~. ~.~~L®~.~ l ~ Y 1R~~ i~'1~~~~riL il\ S~tit\ ~1'~ ~Y FACTS° 1) The City has contributed $ 5,000.00 for each employee and retiree each year 2) Employees nor retirees have contributed anything in the past (spouses /family excepted) 3) The fund hss been subsidized for ~ $1,250.000.00 in past years. 4) There are no funds available to transfer in this year. 5) If we do not get contributions from plan beneficiaries the plan fund balance will be completely gone and if we have an eatraordinariiy high claims year the plan will not be solvent. ~ To save the plan and to be able to continue to provide access to good health care for employees and retirees in the future it is imperative that we take some immediate, positive action to reduce the demand on the plan and to incorporate a contribution pla® that is fair and adequate to not draw down the faand balance. 7) We must also be prepared to move the contribution levels up another level neat year unless we are very successful in containing.claims costs and are able to build the fund balance backup. 8) It has been suggested that employees /retirees were "guaranteed" that they world not have to pay for insurance. There is nothing to suggest that a promise was made. It would be an ideal situation if ~e could provide the insurance at no cost to anyone but the reality is we have some very real fiscal constraints. 9) It has been suggested that it is not fain" to charge the retirees on f aed incomes. The a c -' s (undea~ 6~) is te~+ice (2' des) that of the regular employees. To me it seems unfair to put the entire cost load on the worldng employee that is not on a fixed income but may be trying to raise a family on $10.00 to $12.00 /hour with the cost of living increasing rapidly ini some areas (i.e. gasoline @ $ 2.00 /gallon). 10) We need to try and find a reasonable, fairly distrsbuted rate that will save the plan and .allow ns to continue to provide access to a good, reasonably priced insurance plan. 11) The current proposal-has four plans available and the "premium" plan ($300.00 / PPO) is what is currently available so we have provided a top of the line plan at no cost for a long time, The reality is that if we had been cost sharing before now we might never have reached this point. 12) The City of La Porte is contributing ~ $ 2,100.000.00 to this plan. This equates to about 14.29 cents of our 71 cent Tag fl2ate (~ 20.13 % ). Schedule C -Retiree Coverage Coverage 1st - Schedule C PPO aDD = schedule c Current Rates Current Rates Monthly Annual Monthly , , . Annual Mo~Mh .Annual Em o ee + Child $95.24 $1 142.88 5215.99 ~ ... 12 591.88 $86.67 $1 040.04 Em I + Famil 5120.69 $1 448.28 5239.56 ~ • • $2 874.72 $28.17 $350.00 Em 1 + Famil 5120:69 $1 448.28 5239.58 $2,874.72 1276.75 $2 601.00 Em to ee+ Famil 5720.69 51,448.28 5239.56 - ~ $2,874.72 5112.87 51 352.04 Em I ee+ Femil 5120.68 51,448.28 5239:56 - .'.. $2 87A.72 156.33 $676.00 Em ee + Fami $120.89 $1 448.28 ~ $259:59 =~~ ~ ~• .:~ 874.72 558.33 5675.96 Em to ee + Famil 5120.69 $1 448.28 5239:59 ~ . -~ ' '; $2 874.72 5'162.58 $3,151.00 Em I ee+S se 5105.00 $1;260.00 ~ 1225.79 ^+:~..~ • .$2;709.48 5143.58 $1,723.00 Em I + S use 5105.00 . $1 260.00 1228:78 ~ - " $2 709.48 149.83 $598.00 Em 1 ee + S use 5105.00 .51,260.00 1225.79 •> 12,709.48 549.83 1598.00 Em + use 5105.00 $1260.00 .5225.79 • : ' $2 709.48 549.83 $598.OD Em I + S use 1105.00 $1 260.00 5225.79 ~:, • 12 709.48 149.83 1597.96 Em 1 + use 5105.00 . $1260.00 5225.79 :...: $2 709.48 549.83 5597.96 Em to ee+S use E105.00 11260.OD 5225.79 12709.48 5104.83 $1,257.96 Em ee + S Dose 1105.00 11 26D.00 "1225:79 •. -' 51709.48 . 549.83 1597.96 Em I + use 5105.00 51.260.00 5225.79 ~• 52.709.48 549.83 $597.96 Em to ee + S use 5105.00 $1 260.00 5225.79 :. ` 12 209.48 549.83 $598.00 Em I ee + S use 5105.00 $1,260.00 SZl5.79 ~ 12 709.48 549.83 1598.00 Em I + se 5105.00 $1,260.OD S?15.79 ' ~ 12 709.48 549.83 1598.00 Em to + use 5105.00 11,26D.00 5225.79 :~ ~- 12;708.48 549.83 $598.00 Em ee+S use 1105.00 S1 260.00 ~ 1225.78 = '-• , 12,709.48 149.83 $598.00 Em + se 5105.00 51 260.00 ~ 5225.79. : ~ :: ~~: 52,709.48 549.83 $597.96 E + S use 5105.00 $1 260.00 ..1225:79 i .. - >' 51709.48 5328.83 $3 946.00 Em + use 5105.00 $1 260.00 5225:79 :- ~~.•~= 12°209.48 549.83 ~ $598.00 Em to ee + S use 5105.00 $1 260.00 - 5225.79 ` ~ $2 709.48 549.83 $598.00 Em to ee+S use ~ 5105.00 $1260.00 5225:79 .:.' .. $2709.48 599.67 $1 196.04 Em o + use 5105.00 $1 260:00 ~ 5225.79 .. 12 709.48 579.00 $948.00 Em + S use 5105.00 $1 260.OD M25.79 ~ ~ - $2 709.48 5154.00 $1,848.00 Em I ee+S use 5105.00 $1,260.00 5225.79 '.: 51709.48 549.83 $598.00 Em I e Onl 514.65 $175.80 578:14 . $9A9.68 556.33 1676.00 Em I ee Onl 514.65 1175.80 179:14 5949.68 50.00 10.00 Em ee On 514.65 5175.80 579.14 ~.. $949.68 527.50 $330:00 Em to ee On 114.65 1175.80 579:14 . 1949.68 10.00 10.00 Em 1 ee Onl 514.65 5175.80 579..74 ~ ~ • '5949.68 50.00 $0.00 Em I ee Onl 114.65 1175.80 379.14 - 1949.68 149.83 1598.00 Em to On 574.65 $175.80 579.14 ~. ~ . ~• $949.68 50.00 50.00 Em to ee Onl 514.65 5175.80 ~ 578.14 5949.68 129.17 5350.04 Em to Onl 514.65 1175.80 578:14 ` ~ $949.68 50.00 10.00 Em o ee Onl 574.65 ~ $175.80 578:14 :'-. - 5949.68 549.83 $597.96 Em to Onl 514.65 . $1.75.80 .,'578:14 .ro ~'-'' $949.68 529.17 1350.04 Em to Onl 514.65 $1.75.80 ' •579.14 s.'. •.`.•' •- 5949.68 50.00 $0.00 Em o Onl 514.65 1175.80 579.14 ;.. • '. ~ $949:68 50.00 $0.00 Em to eeOnl 514.65 $175.80 '." 579:14 .:.' •' ~. $949.68 50.00 10.00 Em to ee On 574.65 $175.80 579.14 = ' ~- $949.68 558.33 . 5700.00 Em to Onl 514.65 5175.80 .579.14 - 5949.68 511.00 .$O.OD Em I ee Onl 514.65 $175.80 579:14 - ~ $949:68 50.00 10.00 Employee Only 514.65 $175.80 - 579.14 ..:. $949.68 SD.00 $0.00 140,716.86 • '196,543.00 $33,934.88