HomeMy WebLinkAbout1999-10-25 Regular Meeting and Workshop Meeting
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MINUTES OF THE REGULAR MEETING,
AND WORKSHOP MEETING
OF LA PORTE CITY COUNCIL
OCTOBER 2S 1999
1. CALL TO ORDER
The meeting was called to order by Mayor Norman Malone at 6:05 p.m.
Members of City Council Present: Councilpersons Guy Sutherland, Chuck Engelken,
Howard Ebow, Peter Griffiths, Alton Porter, Deotis Gay, Charlie Young, Jerry Clarke,
and Mayor Norman Malone.
Members of Council Absent: None.
Members of City Executive Staff and City Emplovees Present: City Manager Robert T.
Herrera, Assistant City Attorney John Armstrong, Assistant City Manager John Joerns,
Assistant City Manager Jeff Litchfield, City Secretary Martha Gillett, Director of
Planning Doug Kneupper, Director of Public Works Steve Gillett, Director of Parks
and Recreation Stephen Barr, Director of Administrative Services Louis Rigby,
Administrative Assistant Carol Buttler, Purchasing Agent Susan Kelley, Administrative
Secretary Sharon Harris, Receptionist/Deputy Clerk Rose Hall, and Clark Askins.
Others Present: Spero Pomonis, Mike Mosteit, Linda Snyder, Neil Welch, Colleen
Hicks, Barry Abrahms and a number of citizens.
2. Councilperson Howard Ebow delivered the Invocation.
3. Council considered approving the minutes of the Regular Meeting and Public Hearing
on October 11, 1999.
Motion was made by Council person Ene:elken to approve the minutes of the Ree:ular
Meetine and Public Hearine as Dresented. Second by Councilperson Clarke. The
motion carried.
Ayes: Engelken, Ebow, Griffiths, Porter, Young, Clarke, and Mayor Malone
Nays: None
Abstain: Sutherland and Gay
4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND
TAXPAYERS WISHING TO ADDRESS COUNCIL.
There were no citizens wishing to address Council.
S. Proclamations:
No one was present to accept the Proclamation for Red Ribbon Week. Mayor Malone
will deliver it to the school district.
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City Council Minutes - October 25, 1999 - Page 2
6. Council considered approving a resolution authorizing the resale of certain property to
Arthur Kelly and Linda Snyder. This item was previously tabled at the September 27,
1999 meeting.
Assistant City Manager Jeff Litchfield presented summary and recommendation to City
Council.
Assistant City Attorney read: RESOLUTION 99-30 A RESOLUTION AUTHORIZING
THE RESALE OF CERTAIN PROPERTY TO ARTHUR KELLY AND LINDA
SNYDER.
Motion was made by Councilperson Engelken to approve the resolution as presented by
Mr. Litchfield. Second by Councilperson Griffiths. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
7. Council considered approving an ordinance amending ordinance number 1875, referring
to The Texas Municipal Retirement System, "Updating Service Credits" for service
performed by qualifying members of such system who presently are in the employment
of the City of La Porte.
Director of Administrative Services Louis Rigby presented summary and
recommendation and answered questions for City Council.
Assistant City Attorney read: ORDINANCE 99-1875-G AN ORDINANCE AMENDING
ORDINANCE NO. 1875, AN ORDINANCE AUTHORIZING AND ALLOWING,
UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT
SYSTEM, "UPDATED SERVICE CREDITS" IN SAID SYSTEM FOR SERVICE
PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO
PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY OF LA PORTE;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING
AN EFFECTIVE DATE HEREOF.
Motion was made by Councilperson Clarke to approve the ordinance as presented by Mr.
Rigby. Second by Councilperson Ebow. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
8. Council considered approving an ordinance amending ordinance 1000-1 by adding an
area at a restaurant where wine and lor beer for consumption on the premises may be
sold.
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City Council Minutes - October 25, 1999 - Page 3
City Secretary Martha Gillett presented summary and recommendation and answered
questions for City Council.
Assistant City Attorney read: ORDINANCE IOOO-I-F AN ORDINANCE OF THE CITY
OF LA PORTE, TEXAS, AMENDING CHAPTER 6, SECTION 6-78 OF THE CODE
OF ORDINANCES OF THE CITY OF LA PORTE, BY ADDING AN AREA AT A
RESTAURANT WHERE WINE AND lOR BEER FOR CONSUMPTION ON THE
PREMISES MAY BE SOLD; FURTHER PROVIDING A SAVINGS CLAUSE;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.
Motion was made bv Councilperson Gav to approve the ordinance as presented by Ms.
Gillett. Second by Councilperson Engelken. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
9. Council considered approving an ordinance vacating, abandoning and closing a portion of
the alley in block 718, Town of La Porte, Harris County, Texas.
Director of Planning Doug Kneupper presented summary and recommendation and
answered questions for City Council.
Assistant City Attorney read: ORDINANCE 99-2365 AN ORDINANCE VACATING,
ABANDONING AND CLOSING A PORTION OF THE ALLEY IN BLOCK 718,
TOWN OF LA PORTE, HARRIS COUNTY, TEXAS; FINDING COMPLIANCE
WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE
HEREOF.
Motion was made by Council person Engelken to approve the ordinance as oresented by
Mr. Kneupper. Second by Councilperson Gay. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Mayor
Malone.
Nays: None
Abstain: None
10. CONSENT AGENDA
A. Consider awarding contract to H-GAC for purchase of plastic garbage bags-
Steve Gillett
B. Consider awarding bid to Philpott Ford for purchase of new and replacement
vehicles - Steve Gillett
Councilperson Griffiths made a motion to vote on both Consent Agenda items together
and approve items presented. Seconded by Councilperson Porter. Motion carried
unanimously.
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City Council Minutes - October 25, 1999 - Page 4
11. The workshop was opened at 6:38 PM.
A. Received report from Director of Administrative Services Louis Rigby regarding
retiree health insurance matters.
B. Received report from City Manager Robert T. Herrera regarding space analysis
of Police DepartmentlMunicipal Court and EOC facilities architectural services
agreement with B2HK..
12. Close workshop and re-convene regular meeting at 7:31 PM.
13. ADMINISTRATIVE REPORTS
City Manager Robert T. Herrera reminded Council of the following events:
A. Chamber of Commerce Luncheon - Wednesday, November 17, 1999 - Houston
Yacht club at 11:45 AM.
B. Texas Municipal League Conference - November 17-20, 1999, Dallas, Texas.
C. Texas Deparbnent of Transportation new policy on State right-of-way usage.
14. COUNCIL ACTION
This item was taken out of order prior to the workshop. Councilpersons Young, Clarke,
Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, and Mayor Malone brought items
to Council's attention.
15. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN
MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, AND 551.084,
TEXAS GOVERNMENT CODE, - (CONSULTATION WITH ATTORNEY,
DELIBERATION REGARDING REAL PROPERTY, DELIBERATION
REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL
MATTERS, CONFERENCE WITH EMPLOYEES DELIBERATION
REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING
EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION)
A. 551.071 (CONSULTATION WITH ATIORNEY) MEET WITH ATIORNEY
AND CITY MANAGER REGARDING PENDING LITIGATION.
B.
551.074 (PERSONNEL MATIER) DISCUSS
ACCOMPLISHMENTS WITH CITY MANAGER.
GOALS
AND
Council retired into Executive Session at 7:45 PM under Section 551.071 (Consultation
with Attorney) and 551.074 (personnel Matters).
Council Adjourned Executive Session at 9:40 PM.
Council returned to the table at 9:41 PM, with no action taken.
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City Council Minutes - October 25, 1999 - Page 5
16. CONSIDERATION AND POSSIBLE ACTION ON ITEMS CONSIDERED
IN EXECUTIVE SESSION
No action taken.
17. ADJOURNMENT
There being no further business to come before Council, the Regular Meeting was duly
adjourned at 9:42 PM.
Respectfully submitted,
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Martha Gillett
City Secretary
;?=;~==rerl~9
Norman L. Malone, Mayor
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REOlsT FOR CITY COUNCIL AGENDA ITI
AGENDA DATE October 25.1999 REOUESTED BY Jeff Litchfield. Finance Director
_ REPORT; XX RESOLUTION; _ ORDINANCE;
On February 2, 1999, property located at the corner of Hazel and Bayshore Drive was offered for
public bid via a "Sheriff's Sale". These properties were offered because the property owner had not
paid taxes on the property for several years. When no one bid on the property, the title to the
property reverted to the La Porte Tax Office as Trustee for the City of La Porte, the La Porte
Independent School District and Harris County.
The property comprises 5 city lots and is 125' by 125', or 15,625 square feet. The property also
contains a house that appears to be in a state of disrepair.
The La Porte Tax Office has actively marketed this property for resale and received several bids on
the property. The first bid was for $45,000 and the final bid was for $91,300. The $91,300 bid is
a joint bid by Arthur Kelly and Linda Snyder, who own property adjacent to the property being resold.
The property is on the Harris County Appraisal District Roll with an appraised value of $117,000.
Delinquent Taxes on the property total approximately $102,000 (20 years worth). Since the offer
received for the resale is less than either of these values, The offer requires approval by each of the
three taxing entities before the resale can take place. If all three entities approve, the sale will occur
with each entity receiving its pro-rata share of the tax distribution.
The first cost paid will be the cost incurred by the La Porte Tax Office for reselling the property. This
amount is estimated at $1,000. Second, the City of La Porte has delinquent taxes due on the
property of $31,757.39. If the resale is approved by all three entities, the City will receive an
estimated $27,335 as their pro-rata share. The City's pro-rata share will pay in-full the base tax of
$12,231.37, leaving $15,103.63 to be applied to penalties, interest and attorney fees.
Even though we are reselling this property for less than is due on the property, staff believes the
absorption of the loss is necessary to get the property into the hands of a owner who will care for
and maintain the property as well as pay taxes on it in the future.
ACTION REQUIRED BY COUNCIL:
Approve resolution authorizing the resale of the tax properties to Arthur Kelly and Linda Snyder.
FUND N/A
ACCT NUM:
FUNDS AVAILABLE:
APPROVED FOR CITY COUNCIL AGENDA
Q~ -l \Lv_h -
, - -
ROBERT 1. HERRERA, CITY MANAGER
10"3.(" ,,~
DATE
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RESOLUTION 99-30
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RESOLUTION AUTHORIZING THE RESALE OF CERTAIN PROPERTY TO
ARTHUR KELLY AND LINDA SNYDER
WHEREAS the City of La Porte (City), in the course of its function as a taxing entity in the State of
Texas, obtains title to real property in the capacity as Trustee for itself and other taxing units that
tax the property; and
WHEREAS it is necessary for various reasons that some of the property so obtained must be resold
by the taxing units for less than the aggregate amounts of taxes, penalties, interest and costs; and
WHEREAS Section 35.05 of the Texas Property Tax Code requires that when real property is sold
for less than the aggregate amount of taxes, penalties, interest and costs, the sale must be
approved by all taxing units that tax the property; and
WHEREAS the City has adopted procedures designed to provide all parties the opportunity to
submit offers to purchase such real property and to secure the best offer for such property that is
sufficient to pay at least the costs of suit and sale of such property; and
WHEREAS it is desirable that resale of the property be free and clear of all claims of the taxing
units, for all taxes, penalties interest and costs that have accrued up to the date of resale
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
Section 1. That the City of La Porte, as Trustee, resell the real property described in the attached
Exhibit "A", for the amounts set for on said Exhibit "A", in full satisfaction of taxes, penalties, interest
and costs that have accrued on the property up to the date of sale, subject to the approval of such
resales by official action by the governing bodies of the La Porte Independent School District and
Harris County.
Section 2. That the City Council officially finds, determines, recites and declares that a sufficient
written notice of the date, hour, place and subject of this meeting of the City Council was posted at
a place convenient to the public at the offices of City of La Porte for the time required by law
preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government
Code; and that this meeting has been open to the public as required by law at all times during which
this resolution and the subject matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms such written notice and the contents
and posting thereof.
PASSED AND APPROVED this the 25th day of October 1999.
-. 1TT~ST^ Lf' tJ Ill.' l,
C/ III f (fa ~ t.-(,l/'?f::{.,
Martha Gillett, City Secretary
EXHIBIT A
TAX RESALE PROPERTY TO BE SOLD TO ARTHUR KELLY AND LINDA SNYDER
FOR A TOTAL AMOUNT OF
$91,300 (NINETY-ONE THOUSAND THREE HUNDRED DOLLARS).
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TRACT 1: LOTS 10.11,12 & 13, BLOCK 6, SYLVAN BEACH, ACCORDING TO THE MAP OR
PLAT THEREOF RECORDED IN THE MAP RECORDS OF HARRIS COUNTY. TEXAS, AND
COMMONLY KNOWN AS 333 BA YSHORE DRIVE, LA PORTE, TEXAS 77571.
TRACT 2: LOTS 9, BLOCK 6, SYLVAN BEACH ACCORDING TO THE MAP OR PLAT
THEREOF RECORDED IN THE MAP RECORDS OF HARRIS COUNTY, TEXAS AND
COMMONLY KNOWN AS 333 BA YSHORE DRIVE, LA PORTE, TEXAS 77571.
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lREQ.lT FOR CITY COUNCIL AGENDA ~M
Agenda Date Requested: October 25
Administrative Services
Requested By:
Report
x
Ordinance
Exhibits:
Ordinance
SUMMARY & RECOMMENDATION
The Texas Municipal Retirement System Act allow member cities to adopt Updated Service Credits
and annuity increases, providing cities the opportunity to upgrade retirement benefits for both active
employees and retirees who are currently receiving a monthly annuity from the System.
By adopting the 100% Updated Service Credit effective January 1, 2000, member's retirement
benefit will be recalculated based on the member's average monthly salary for the previous three
years. The member's retirement benefit is "updated" based on the higher wages earned in recent
years.
Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The
increase that can be granted is calculated based on a maximum of 70 % of the change in the
Consumer Price Index, less any previously granted increases.
This ordinance is non-repeating and will be effective January 1, 2000. Any future updates will
require adoption of a new ordinance. Should the City choose to not adopt this ordinance, our
contribution will still decrease $128,260 in the year 2000. We were anticipating such a decrease
when we adopted the 20 year retirement option. By adopting this ordinance, the City's contribution
rate will be $114,518 less than the 1999 contribution.
Action Required by Council: Adopt Ordinance 99-1875-G, authorizing Updated Service Credits
and increased annuities for 2000.
Availability of Funds:
General Fund
_ Capital Improvement
Other
Water/Wastewater
_ General Revenue Sharing
Account Number:
Funds Available:
Yes
No
Approved for City Council Al!enda
~~ -r: ~~
Robert T. Herrera
City Manager
\0. ~O.C\'\
Date
_ORDINANCE NO. 99-1875 - G e
AN ORDINANCE AMENDING ORDINANCE 1875, AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER
THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS" IN
SAID SYSTEM FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO
PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY OF LA PORTEj FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. Authorization of Updated Service Credits.
(a) On the terms and conditions set out in Sections 853.401 through 853.403 of Subtitle G
of Title 8, VT.C.A., Government Code, as amended (hereinafter referred to as the 'TMRS Act"),
each member of the Texas Municipal Retirement System (hereinafter referred to as the "System")
who has current service credit or prior service credit in the System in force and effect on the 1 st
day of January of the calendar year preceding such allowance, by reason of service in the
employment of the City, and on such date has at least 36 months of credited service with the
System, shall be and is hereby allowed "Updated Service Credit" (as that term is defined in
subsection (d) of Section 853.402 of said title) in an amount that is 100% of the "base Updated
Service Credit" of the member (calculated as provided in subsection (c) of Section 853.402 of said
title). The Updated Service Credit hereby allowed shall replace any Updated Service Credit, prior
service credit, special prior service credit, or antecedent service credit previously authorized for
part of the same service.
(b) On the terms and conditions set out in Section 853.601 of said title, any member of the
System who is eligible for Updated Service Credits on the basis of service with this City, and who
has unforfeited credit for prior service and/or current service with another participating municipality
or municipalities by reason of previous service, and was a contributing member on the 1 st day of
January of the calendar year preceding such allowance, shall be credited with Updated Service
Credits pursuant to, calculated in accordance with, and subject to adjustment as set forth in said
853.601.
(c) In accordance with the provisions of subsection (d) of Section 853.401 of said title, the
deposits required to be made to the System by employees of the several participating departments
on account of current service shall be calculated from after the date aforesaid on the full amount of
such person's earnings as an employee of the City.
Section 2. Increase in Retirement Annuities.
(a) On terms and conditions set out in Section 854.203 of Subtitle G of Title 8, VT.C.A.,
Government Code, as amended, the City hereby elects to allow and to provide for payment of the
increases below stated in monthly benefits payable by the System to retired employees and to
beneficiaries of deceased employees of this City under current service annuities and prior service
annuities arising from service by such employees to this City. An annuity increased under this
Section replaces any annuity or increased annuity previously granted to the same person.
(b) The amount of annuity increase under this Section is computed as the sum of the prior
and current service annuities on the effective date of retirement of the person on whose service
the annuities are based, multiplied by 70% of the percentage change in Consumer Price Index for
All Urban Consumers, from December of the year immediately preceding the effective date of the
person's retirement to the December that is 13 months before the effective date of this ordinance.
ORDINANCE NO.
PAGE 2
99-1875~
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(c) An increase in an annuity that was reduced because of an option selection is reducible
in the same proportion and in the same manner that the original annuity was reduced.
(d) If a computation hereunder does not result in an increase in the amount of an annuity,
the amount of the annuity will not be changed hereby.
(e) The amount by which an increase under this Section exceeds all previously granted
increases to an annuitant is an obligation of this City and of its account in the municipality
accumulation fund of the System.
Section 3. The City Council finds, determines, recites and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of the City Council was posted at a place
convenient to the public at the City Hall of the City for the time required by law preceding this
meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that
this meeting has been open to the public as required by law at all times during which this
ordinance and the subject matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 4. Subject to approval by the Board of Trustees of Texas Municipal Retirement
System, the updated service credits and increases in retirement annuities granted hereby shall be
and become effective on the 1 st day of January 2000.
PASSED AND APPROVED, this the 25th day of October 1999.
ATTEST:
'-1r/dtt1l~, AI/it! .
Martha Gillett
City Secretary
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REOUEST &. CITY COUNCIL AGENDA ITE'
i' a ' I I
Agenda Date Requested: October 25, 1999
Requested By: M. Gillett Department: Administration - City Secretary
_ Report _ Resolution X Ordinance
Exhibits: Ordinance lOOO-l-F
, , I II I "
SUMMARY & RECOMMENDATION
Ordinance 1000-I-F, if approved, would allow a new applicant to sell wine and/or beer. The City has processed the new
application of Joseph Lee Walker and has determined that it meets qualifications as outlined in Ordinance 1000-1. The
permit will be issued in the name of Millenium Club. This location was previously permitted in the name of Alvin
Artis/Goodfellow's.
Ordinance 1000-1- will be amended by adding the following:
STREET ADDRESS OF THE PROPERTY: 517 N. Broadway St., La Porte, Harris County, Texas 77571.
LEGAL DESCRIPTION OF THE PROPERTY: Lots 25 thru 28, Block 108, Town of La Porte, Harris County,
Tx.
PROPERTY OWNER: Joseph Lee Walker
NAME OF APPLICANTS: Joseph Lee Walker
ADDRESS OF APPLICANT: 8523 Collings dale Rd., La Porte, Texas 77571
TRADE OR BUSINESS NAME OF RESTAURANT BUSINESS: Millennium Club
Action Required by Council:
Consider approval of Ordinance lOOO-l-F.
Availability of Funds:
General Fund_ Water/Wastewater
_ Capital Improvement_ General Revenue Sharing
Other
Account Number: Funds Available: YES NO
-.-. -:"
Approved for City Council A2enda
~~ -r: ~ \O~d.l"~'1
Robert T. Herrera Date
City Manager
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ORDINANCE NO. 1000-1---E-
AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, AMENDING CHAPTER 6,
SECTION 6-78 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, BY
ADDING AN AREA AT A RESTAURANT WHERE WINE AND/OR BEER FOR
CONSUMPTION ON THE PREMISES MAY BE SOLD; FURTHER PROVIDING A
SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City of La Porte has, in Chapter 6 of the Code of Ordinances of
the City of La Porte, regulated the location, closing hours, and sale of wine and/or beer
on premises in accord with provisions of Texas Codes Annotated, Alcoholic Beverage
Code, Chapter 105, Section 105.05 and Section 105.06; and in accord with the
provisions of Texas Codes Annotated, Alcoholic Beverage Code, Chapter 109,
Subchapter C, Section 109.31 et seq; and
WHEREAS, the Code of Ordinances of the City of La Porte expressly limits the
locations at which wine and/or beer may be sold in the City, and further expressly
identifies the names of establishments and permit holders authorized to sell wine and/or
beer under the terms of said Code; and
WHEREAS, a new applicant desires to sell wine and/or beer at a location not
previously permitted in the Chapter 6 of the Code of Ordinances of the City of La Porte;
and
WHEREAS, the City has, pursuant to the terms of said Code, made its
investigation to ascertain whether said new applicant has qualified for a beer and/or
wine permit from the City; and
WHEREAS, the City has determined that the new applicant qualifies for a beer
and/or wine permit from the City;
Ordinance No. 1000-1- Fe
Page 2
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF LA PORTE:
Section 1. Chapter 6, Section 6-78 of the Code of Ordinances of the City of La Porte is
hereby amended by granting a new permit for the operation of a restaurant, as defined
in said Code, at the following location, which permit shall be personal to the applicant,
and non-transferable, and shall be further conditioned that the permittee shall comply
with the provisions of the Texas Alcoholic Beverage Code, and all other applicable
federal, state, and local laws and ordinances, including other provisions of this
ordinance and the Code of Ordinances of the City of La Porte;
STREET ADDRESS OF PROPERTY: 517 N. Broadway St., La Porte, Harris
County, Texas 77571
LEGAL DESCRIPTION OF PROPERTY: Lots 25 thru 28, Block 108, Town of La
Porte, Harris County, TX
PROPERTY OWNER: Joseph Lee Walker
NAME OF APPLICANT: Joseph Lee Walker
ADDRESS OF APPLICANT: 8523 Collingsdale Rd., La Porte, Texas
TRADE OR BUSINESS NAME OF RESTAURANT BUSINESS: Millennium
Club
Section 2. It is the intent of the City Council of the City of La Porte that this
Ordinance merely permit the sale of wine and/or beer during the hours set by the
general laws of the State of Texas by retailers selling wine and/or beer for consumption
on premises at the locations established in Section 1 of this Ordinance. This Ordinance
is not an attempt to create zoning or other land use rights in property owners at said
location, such that the provisions of Chapter 106 of the Code of Ordinances of the City
of La Porte, the City of La Porte Zoning Ordinance, together with all amendments
thereto (as such provisions impose standards on premises or businesses within the City
of La Porte, regardless of whether such business or premises are required to have a
Ordinance No. 1000-1- ~e
Page 3
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license or permit under the Texas Alcoholic Beverage Code) govern and supersede the
provisions of this Ordinance, in the event of a conflict between this Ordinance and the
provisions of the Zoning Ordinance and amendments thereto. This application for wine
and/or beer for consumption on premises shall be subject to the provisions of:
a. The Texas Alcoholic Beverage Code;
b. Chapter 6 of the Code of Ordinances of the City of La Porte;
c. This Ordinance insofar as this Ordinance does not conflict with the provisions
of the Texas Alcoholic Beverage Code; and
d. The Zoning Ordinance of the City of La Porte, and all amendments thereto,
as such provision apply to all businesses within the City of La Porte, regardless
of whether or not such businesses are required to obtain a license or permit
under the provisions of the Texas Alcoholic Beverage Code.
Section 3. If any section, sentence, phrase, clause, or any part of any section,
sentence, phrase, or clause, of this ordinance shall, for any reason, be held invalid,
such invalidity shall not affect the remaining portions of this ordinance, and it is hereby
declared to be the intention of this City Council to have passed each section, sentence,
phrase or clause, or part thereof, irrespective of the fact that any other section,
sentence, phrase or clause, or part thereof, may be declared invalid.
Section 4. The City Council officially finds, determines, recites and declares
that a sufficient written notice of the date, hour, place and subject of this meeting of the
City Council is posted at a place convenient to the public at the City Hall of the City for
the time required by law preceding this meeting, as required by the Chapter 551, Tx.
Gov't Code; and that this meeting has been open to the public as required by law at all
Ordinance No. 1000-1- Fe
Page 4
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times during which this ordinance and the subject matter thereof has been discussed,
considered and formally acted upon. The City Council further ratifies, approves and
confirms such written notice and the contents and posting thereof.
Section 5. This Ordinance shall be effective from the date of its passage and
approval, and it is so ordered.
PASSED AND APPROVED this the ;.,S~/... day of Ovros,,(
,1999.
CITY OF LA PORTE
)/7 ~~
j~JJ)tz'.. ;:... ~ '_
Norman L. ~alone, . ayor
ATTEST:
~dtr/i'-' ;:tUff
M rtha Gillett,
City Secretary
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PUBLIC NOTICE
ORDINANCE lOOO-I-F
AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, AMENDING SECTION 6-
78 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY ADDING
AN AREA RESTAURANT AT AN AREA WHERE WINE AND/OR BEER FOR
CONSUMPTION ON THE PREMISES MAY BE SOLD FURTHER PROVIDING A
SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW;
PROVIDING A SEVERABllJTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE
DATE.
CITY OF LA PORTE
s/Norman Malone Mayor
ATTEST:
s/Martha A. Gillett City Secretary
APPROVED:
s/Knox W. Askins, City Attorney
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REOIT FOR CITY COUNCIL AGENDA ITE'
Agenda Date Requested:
October 25 1999
Requested By:
Dou
Department:
Planning
Report
x
Ordinance
Exhibits:
1.
2.
Ordinance
Exhibit" A" - Closing Requested
I!' .! 't., '.' -.,., .,..,., .""......_, .",... ,., .,.,.... ..n .,.. .
.. ...,....- .
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SUMMARY & RECOMMENDATION
The City has been petitioned by Ponderosa Precision Plastics, Inc. to close, vacate, and abandon a
portion of the alley in Block 718, Town of La Porte. The purpose of this request is to facilitate the
company's plan for future development. The Planning and Public Works Departments have reviewed
this request and have determined that the City has no current or future plans for the alley in question.
Additionally, each of the City's franchised utility companies has reviewed this request and has
expressed no objection to the closing.
In accordance with Article II, Section 62-35 of the Code of Ordinances, Staff has arranged for an
independent appraisal of the property in question. As a result, the alley, containing 4,144 square feet,
has been appraised at $1.00 per square foot. As per the ordinance, the applicant has submitted
payment in the amount of 75% ($3,108.00) of the appraised value as compensation to the City.
Recommendation
Staff recommends closing, vacating, and abandoning the portion of the alley in Block 718, Town of La
Porte, situated between lots 1 through 10 and lots 21 through 30, Town of La Porte to facilitate
future development by the applicant;
Action Required by Council:
Consider approval of an ordinance to close, vacate, and abandon the portion of the alley in Block 718,
Town of La Porte situated between Lots 1 through 10 and 21 through 30.
Availability of Funds: N/A
General Fund
Capital Improvement
Other
VVatertvVastevvater
General Revenue Sharing
Account Number:
Funds Available:
YES
NO
. n. .... ~"
" . .' , . I..... . . . .... . ....... ".. ,....~., ........ ... .... .. ....
..,
Approved for City Council Agenda
DATE
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ORDINANCE NO. 99- .l3lDS'
AN ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF
THE ALLEY IN BLOCK 718, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING
AN EFFECTIVE DATE HEREOF.
WHEREAS, the City Council of the City of La Porte has been requested by
record owner of all of the property abutting the hereinafter described portion of the alley
in Block 718, Town of La Porte, Harris County, Texas; to vacate, abandon, and
permanently close that portion of the alley in Block 718, Town of La Porte, Harris
County, Texas; and
WHEREAS, the City Council of the City of La Porte has determined and does
hereby find, determine and declare that the hereinafter described portion of the alley in
Block 718, Town of La Porte, Harris County, Texas, is not suitable, needed, or beneficial
to the public as a public road, street and alley, and the closing of the hereinafter described
portion of the alley in Block 718, Town of La Porte, Harris County, Texas, is for the
protection of the public and for the public interest and benefit, and that the hereinafter
described portion of the alley in Block 718, Town of La Porte, Harris County, Texas,
should be vacated, abandoned, and permanently closed.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1.
Under and by virtue of the power granted to the City of La Porte
under its home rule charter and Chapter 253, Section 253.001, Texas Local Government
Code, the hereinafter described portion of the alley in Block 718, Town of La Porte,
Harris County, Texas, is hereby permanently vacated, abandoned and closed by the
9Gf-J. ~(.,(
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2
City of La Porte, to-wit:
That portiolll of the alley in Block 718, Town of La Porte, Harris
County, Texas, lying and being situated between Lots 1 through 10,
and Lots 21 through 31, Block 718, Town of La Porte, Harris County,
Texas, and containing 4,144 square feet.
Section 2.
The City Council officially finds, determines, recites, and declares
that a sufficient written notice of the date, hour, place and subject of this meeting of the
City Council was posted at a place convenient to the public at the City Hall of the City
for the time required by law preceding this meeting, as required by the Open Meetings
Law, Chapter 551, Texas Government Code; and that this meeting has been open to the
public as required by law at all times during which this ordinance and the subject matter
thereof has been discussed, considered and formally acted upon. The City Council
further ratifies, approves and confirms such written notice and the contents and posting
thereof.
Section 3.
This ordinance shall be effective from and after its passage and
approval, and it is so ordered.
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3
PASSED AND APPROVED, THIS 25th DAY OF OCTOBER 1999.
CITY OF LA PORTE
1; ~.
:' v'" i
By;. /YJJI(~.~ _ _~.~i.
. Norman'" . Malone, Mayor
A TrEST:
11Irf:/-/Jib.. Ji U'jjt
Martha Gillett, City Secretary
APPR6VED: ,,<>/
O:J~~
Knox W. Askins, City Attorney
\
6 (~) 8 6(J7 6 (-J 6 ,
(.J (><) N.T.S.
-
REQUESTED CLOSING
(4,144 SQUARE FEET)
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W. POLK ST. ~ 16'
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EXHIBIT nAn
SAC-97-09
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A
REOUlEST FI CITY COUNCIL AGENDA ITEM e
Agenda Date Requested:
Requested By: S. Gille
Public Works
xxx Report _ Resolution _ Ordinance
Exhibits:
Recommend21tion from Purchasing Division
SUMMARY & RECOMMENDATION
The City of La Porte issued bids for plastic garbage bags in May 1999. The price available from H-GAC was
lower than the bids received, and Council authorized the purchase through H-GAC. Purchasing has confirmed
that the H-GAC price is still in effect. The proposed purchase is for 135,000 pounds of plastic garbage bags for
the January handout.
In order to receive bags in time for the handout, the bags need to be ordered now. The H-GAC price is $0.391
per pound, for a purchase price of $52,785.00. The administrative fee would be $1,047.85, for a total purchase
price of $53,832.85. It is recommended that the City Council authorize the purchase of 135,000 pounds of
plastic garbage bags through H-GAC, for a total cost of $53,832.85. Funds for this purchase are available in the
FY 99-00 Residential Solid Waste Operating Budget.
Action Required by Council: Award contract for purchase of plastic garbage bags to H-GAC for a total
estimated cost of$53,832.85.
Availability of Funds:
xx General Fund Watell"lWastewater
_ Capital Improvement_ General Revenue Sharing
Other
Account Number: 001-7072-532-2015 Funds Available: X YES NO
Approved for City Council At!enda
~ 'T. ~... \O.c~",.,'\
Robert T. Herrera Date
City Manager
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CITY OF LA PORTE
INTEROFFICE MEMORANDUM
PUF-{G'i-IASING DIVISION
TO:
FROM:
STEVE GILLETT, DIRECTOR OF PUBLIC WORKS
SUSAN KELLEY, PURCHASING MANAGER ,Jk,
SUBJECT: PLASTIC GARBAGE BAGS
DATE:
OCTOBER 8, 1999
In May 1999, the City of La Porte requested formal bids on the purchase of plastic
garbage bags. We received four (4) quotes from suppliers. Bemis Corp. submitted their
bid as the Houston-Galveston Area Council (HGAC) contract. Even with the HGAC
administrative fee, their price was still $1,000 lower than the next bid.
Phil Webb, Solid Waste Supervisor recently notified me of a request for 135,000 Ibs. of
bags prior to December 17, 1999. I have contacted Diane Domagas at HGAC, and the
contract we purchased from in May is still in effect. The price for 135,000 Ibs. at $.391
per lb. is $52,785.00. The administrative fee would be $1,047.85 for a total of
$53,832.85.
If this expenditure is considered at the Council meeting on October 25, 1999, there
should be no problem receiving delivery prior to December 17th.
If you have any questions, please do not hesitate to contact me.
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B
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REQUEST FOR CITY COUNCn.. AGENDA ITEM
Requested By: S. Gillett
ment: Public Works
xxx Report _ Res
Ordinance
Exhibits:
Bid Tabulation and Bidder's List
SUMMARY & RECOMMENDATION
Sealed bids were received on October 11, 1999 for new and replacement vehicles. Bids were sent to sixteen (16) vendors, with six (6)
returning bids. Low bid for all vehicles meeting specifications was submitted by Philpott Ford, as follows:
DEPT ITEM ADDIREPLACE BID BUDGETED
POLICE (Six) Patrol Cars OnelFive $125,922.00 $138,162.00
UTILITY (Two) Y2 Ton Pickup Replace $ 27,542.00 $ 32,540.00
UTILITY (Two) Y2 Ton Pickup w/AC Replace $ 28,682.00 $ 32,540.00
GOLF COURSE
SOLID WASTE (Two) Y2 Ton Bi-fuel Replace $ 38,854.00 $ 38,272.00
EQUIP. SERVICES
PARKS (One)1 Ton Crew Cab Replace $ 20,962.00 $ 31,595.00
UTILITY (One)1 Ton wIWork Box Replace $ 22,870.00 $ 25,460.00
PARKS (One) Minivan Replace $ 17,352.00 $ 18,700.00
PARKS (One) 1 Ton Step Van Replace $ 26,766.00 $ 22,000.00
PARKS (One) 15 Passenger Van Replace $ 25,295.00 $ 24,000.00
PLANNING (One) % Ton Suburban Replace $ 26.688.00 $ 25.000.00
TOTAL $360,933.00 $388,269.00
Action Required by Council: Award bids for new and replacement vehicles to Philpott Ford, for a total cost of $360,933.00.
Availability of Funds:
xx General Fund XX Water/Wastewater
_ Capital Improvement XX Motor Pool
Other
Account Number: Various FUDlds Available: X YES NO
Approved for City Council Ae:enda
~~ ,. l~ lo.a~.,')
Robert T. Herrera Date
City Manager
BID TABULA TION
BID # 0781 - VEHICLES
JOE CAMP
FORD
LES MARKS
CHEVROLET
McREE
FORD
LAWRENCE
MARSHALL
ORANGE
FORD
PHILPOTT
FORD
No Bid
No Bid
No Bid $20,981.05 $21,000.00
No Bid $125,886.30 $126,000.00
Old not bIc:I Old not meet all
anUIock brakes specs
$21,496.05
$128,976.30
$20,987.00
$125,922.00
QTY
6
Total
DESCRIPnON
Patrol Cars
1)
e
$15,329.75
$30,659.50
$14,750.00
$29,500.00
$15,051.25
$30,102.50
$14,444.00
$28,888.00
$14,593.78
$29,187.56
$13,771.00
$27,542.00
2
Comments
1/2 Ton Pickup - Crew
2)
$16,013.25
$32,026.50
$15,400.00
$30,800.00
$15,051.25
$30,102.50
$15,280.00
$30,560.00
$15,268.73
$30,537.46
$14,341.00
$28,682.00
2
Tota
Supervisor's
3) 1/2 Ton Pickup
No Bid
No Bid
No Bid
No Bid
$20.092.25
$40,184.50
$19,980.00
$39,960.00
$20,317.56
$40,635.12
$19,427.00
$38,854.00
2
Total
4) 1/2 Ton BI-fueled Pickup
No Bid
No Bid
$21,750.00
$21,750.00
$22,135.70
$22,135.70
$20,990.00
$20,990.00
$21,304.56
$21,304.56
$20,962.00
$20,962.00
1
Total
5) 1 Ton Crew Cab & Chassis
No Bid
No Bid
$22,950.00
$22,950.00
$23,596.70
$23,596.70
$23,417.00
$23,417.00
$23,041.56
$23,041.56
$22,870.00
$22,870.00
1
Total
Ton Cab & Chassis w/Servlce Body
1
6)
No Bid
No Bid
$18,650.00
$18,650.00
No Bid
No Bid
$18,279.00
$18,279.00
$18,239.76
$18,239.76
$17,352.00
$17,352.00
1
Total
Minivan
7)
e
No Bid
No Bid
No Bid
No Bid
No Bid
No Bid
$29,648.00
$29,648.00
$27,189.65
$27,189.65
$26,766.00
$26,766.00
1
Total
Wheel Step Van
8) 1 Ton Dual Rear
No Bid
No Bid
No Bid
No Bid
$26,080.80
$26,080.80
$25,789.00
$25,789.00
$27,416.89
$27,416.89
$25,295.00
$25,295.00
1
Total
9) 15 Passenger Van
No Bid
No Bid
No Bid
No Bid
No Bid
No Bid
$29,188.00
$29,188.00
$27,615.43
$27,615.43
$26,688.00
$26,688.00
1
Total
Total
10) 3/4 Ton Suburban
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BIDDER'S LIST
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SEALED BID #0781 VEHICLES
A C COLLINS FORD
4242 E. SAM HOUSTON PRKY SOUTH
PASADENA, TX 77505
SA YOU CITY FORD
PO BOX 21321
HOUSTON, TX 77226
BILL HEARD CHEVROLET
PO BOX 530
HOUSTON TX 77487-0530
BOB PAGAN FORD
7626 BROADWAY
GALVESTON, TX 77553
CASA FORD
47011-10 EAST
SA YTOWN TX 77521
.INTERSTATE FORD
20405 1-45
SPRING, TX 77388
JACK ROACH - FORD
2727 SOUTHWEST FREEWAY
HOUSTON, TX 77098
JOE CAMP FORD.
621 HWY 146 SOUTH
LA PORTE, TX 77571
KNAPP CHEVROLET
PO BOX 4179
HOUSTON, TX 77210
LAWRENCE MARSHALL CHEVROLET
PO BOX 983 .
HEMPSTEAD, TX 77445
LES MARKS CHEVROLET
PO BOX 1119
LA PORTE, TX 77572-0119
MCREE FORD
P.O. BOX 577
DICKINSON, TX 77539
ORANGE COUNTY FORD
1601 GREEN AVE
ORANGE, TX 77630
PHILPOTT FORD
PO BOX 876
PORT NECHES TX 77651
RON CRAFT CHEVROLET/OLDS
3401 NORTH MAIN
BA YTOWN TX 77521
TIMMERS CHEVROLET
816 W PASADENA FWY
PASADENA TX 77506
CHAMBER OF COMMERCE
PO BOX 960
LA PORTE TX 77572-0960
SA YSHORE SUN PUBLISH DATES:
SEPTEMBER 26, 1999
OCTOBER 3, 1999
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A
REOUEST & CITY COUNCIL AGENDA ITE~
Agenda Date Requested: October 25. 1999
Requested By: Louis Rigby
Department: Administrative Services
X Report _ ResoDution _ Ordinance
Exhibits:
Letter from Neal Welch with attachments
Letter from Knox Askins
SUMMARY & RECOMMENDA nON
During the Council meeting of September 8th, approval was given to hire Mr. Neal Welch, a consultant in the health care
field, to review the current policy of providing medical insurance to retirees. Mr. Welch was asked to investigate what
other entities were doing and make recommendations to the Council for review.
Mr. Welch originally stated that it would take 90 days to complete the initial report and Council asked that, ifpossible,
this be done on a quicker pace. Mr. Welch has submitted a letter with items that need to be discussed in a workshop
setting and he is prepared tonight to discuss these matters.
Action Required by Council: Workshop retiree health insurance matters.
Availability of Funds:
General Fund WaterlWastewater
_ Capital Improvement_ General Revenue Sharing
Other
Account Number:
Funds Available: YES NO
Approved for City Council Aeenda
~~
Robert T. Herrera Date
City Manager
.
.
.
September 28, 1999
1"Q ~ J(s-E>t'Llj ft
e l-.. At/.... h -ef
(('.J41 (7:~
RETIREE HEALTH INSURANCE OPTIONS
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The following suggestion is a recommended starting point in developing a policy to present to
City Council on retiree medical insurance.
I believe the City should consider a two-tier approach. The fIrst tier is to provide a level of insurance
that protects the employee who dedicates all or a majority of their useful work career with the City of
La Porte. The second tier is to provide a similar level of protection to an employee who enters the work
force and dedicates a minimum of 15 years of service to the City and meets the provisions of Texas
Municipal Retirement Act as adopted by the City.
In both cases, this benefIt is forfeited if the following occur:
1) If a retired employee obtains full-time employment after they retire from the City, they forfeit
this benefit. The City has no obligation to continue retiree coverage in this event.
2) If the retiree works for an employer who offers health coverage, the City's health coverage will
end automatically.
TIER I
This tier will utilize the concept of adopting a "point system" consisting of a combination of age and
continuous years of service with the City of La Porte. In order to qualify under this level, the employee
will need to have a minimum of 80 points.
Example:
New hire at 20 years of age - qualifIes at age 50 with 30 years of service
New hire at 30 years of age - qualifIes at age 55 with 25 years of service
New hire at 40 years of age - qualifIes at age 60 with 20 years of service
The City of La Porte will pay 100% of the employee premiums in these examples.
TIERll
This tier will utilize the concept of years of service with the City of La Porte and meeting the
requirements of the Texas Municipal Retirement Act. The intent here is to help a dedicated employee
receive or procure medical insurance upon retirement, if they do not meet the eligibility requirements of
the Tier I concept.
Example:
Years of Service
Retiree Cost City Cost
At least but less than:
15 years 20 years
20 years 25 years
25 years 30 years
30 years or more
60%
50%
25%
o
40%
50%
75%
100%
The above plan recommendations will need to be consistent with State Law as it pertains to Chapter 175.
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The Welch Company
Employee Benefits Consulting and Brokerage
Memorial City Plaza
820 Gessner, Suite 1470
Houston, Texas 77024
(713) 827-8755
Fax (713) 461-5788
October 13, 1999
Louis Rigby
Director of Administrative Services
City of La Porte
P.O. Box 1115
La Porte, Texas 77572-1115
RE: Retiree Health Insurance
Dear Louis,
In response to background information provided on September 13th, and our meeting with
the City's staff on October 6th, I am providing the following thoughts for your
consideration.
Two Tier ElieihilDtv
I believe the two-tier eligibility concept as introduced by Bob Herrera and refined by the
staff is a sound one. It accomplishes the goals of the City as relates to retention of long
term valued employees in Tier I. In Tier II, benefits are also extended to valued
employees, while protecting City contribution dollars. The combination of Tier I and
Tier II may meet with some resistance from existing and future retirees, but its design
compares favorably to other municipal plans in the area.
Other Benefit Questions
In response to Mr. Herrera's questions sighted on the second page of his September 28th
meeting outline, I offer the following thoughts for consideration.
1. If a retired employee obtains full time employment after they retire from the City,
they forfeit this benefit. The City has no obligation to continue retiree coverage
in this event.
Yes. Per Section 175.002, Right to Purchase Continued Coverage, a person is entitled to
purchase continued health benefits unless the person is eligible for group health benefits
coverage through another employer.
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Keep in mind the spirit of all the laws relating to continued medical coverage are focused
on the loss of coverage. In the case of a retiree who secures gainful employment after
retirement, there is no loss of coverage. In active plans, for example, coverage usually
follows the primary employer. Therefore, not only does the law allow for this criteria of
coverage, it also closely follows an active employee eligibility model.
2. If the retiree works for an employer who offers health coverage, the City's health
coverage will automatically end.
Yes. The only exception might be an existing retiree who cannot secure his current
employers coverage due to a late entrant underwriting requirement. In this case the
City's retiree coverage may need to continue until the anniversary date of the active
group plan.
3. The surviving spouse of a retiree will be allowed to continue with medical
insurance if they pay a proportionate premium associated with dependent
coverage.
Yes. Dependent rates will carry actuarially sound premiums. Annual rates established
for COBRA benefits are often a non-discriminatory guideline to follow for retiree
dependent contributions.
4. Is there any benefit to the City or retiree if a Medicare supplement policy is
available for purchase? If so who will purchase the supplement policy?
No. My experience has shown the Medicare supplement plans do not benefit either the
City or retiree. This is primarily due to two factors. F', Medicare Supplement Plans will
not accept the under 65 retiree population. This group poses the largest claims exposure
to your plan. Therefore, a carve-out or supplemental plan only benefits the insurance
company. 2nd, If a retiree wishes to purchase a supplemental plan upon retirement, they
can do so on an individual basis.
5. Our existing retiree workforce will probably fall into one of the tiers suggested. I
believe that they need to be notified of the changes and how they may be affected,
and be given a reasonable amount of time to make other provisions for coverage
before the new rules go into effect. We will need to define reasonable.
My definition of a reasonable time is one year. This time frame allows those retirees who
made a lifestyle decision to cover themselves under the retiree plan, and who now must
begin contributing toward the coverage, ample time to prepare for the contribution or
make other coverage arrangements.
6. How would we handle an employee who gets injured on the job and can not full-
fill their duties? Let's say that workers compensation recommends the employee
no longer work, and the City due to a business necessity has to fill the position.
Should the employee be allowed to fall into one of the recommended tiers?
2
The Welch COmpany
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Yes. An employee who must retire as a result of a disability should be afforded coverage
just like a disabled active employee. To prevent discrimination, you should charge the
same rate for the disabled retiree as any other retiree. Please keep in mind that a
disabled retiree should be happy to receive full medial benefits, regardless of the
premium, given their retiree and disabled status.
7. We need to analyze the impact this proposal will have on our existing workforce
as well as our retirees.
The emotional impact from an employee/retiree perspective may be hard to measure from
my vantagepoint. Certainly we will measure the downstream impact of these eligibility
changes on the claims experience versus premium contributions.
My experience with other public entities has been that existing and near retirees are
more concerned about the availability of the coverage than its cost. lfthey (retirees) are
informed that certain measures are required to maintain the availability of the coverage
to existing andfuture retirees, they are less critical than if they are threatened by the loss
of the coverage.
Active employees don't necessarily make career decisions about employment based on
retiree health insurance availability in the future.
8. We also need to understand how COBRA will impact this benefit.
COBRA will not impact the proposed changes directly. Of course any employee choosing
COBRA benefits at retirement can do so. COBRA status does not contemplate any
contribution by the employer. There is no COBRA benefit to a retiree if he chooses to
leave the plan.
I hope these observations help in the decision making process, and of course I plan on
being at the City Council meeting on Monday, October 25th.
Best regards,
Neal W. Welch
fax copy: Bob Herrera, City Manager
3
The Welch Companv
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City of La Porte Current Retiree Information
City of La Porte 1 City of La Porte 2 City of La Porte 3
Eligibility 10 yrs with CLP 15 yrs with CLP 20 yrs with CLP
Requirement
Draw Annuity ~ Yes Yes Yes
Cost to Employer 80% - $3,600/yr 90% - $4,050/yr 100% - $4 500lvr
Retiree Contribution $900/yr $450/yr 0
Dependent $598/yr , $598/yr $598/yr
Contribution
Over/Under 65 Diff No No No
Plan of Benefits Same Same Same
Insured or Self- Self Self Self
funded
The Welch Com
Baytown Deer Park Pasadena Friendswood Sugar Land Missouri City Pear/and Harris County League City La Porte ISD Victoria
Ramt of Eliaibilitv # years TMRS Retiree 25 TMRS 10 DP TMRS Retiree TMRS Retiree TMRS Retiree Age 65 & 10 yrs TMRS Retiree TCDRS Retiree To age 65 only TMRS Retiree
Draw Annunitv yes no no no no no no yes no no no
'her: (but they all do)
Cost to Retiree
Employer Contribution 95% 100% 0% ~h:;m1imm 0% 100% 0% 50% 0% $185 .
m1~~~ _:~~ --':.~_.~--
Retiree Contribution $20 0 $210-$295 1:&-:.:;t~~~.[ $141 171 0 (150%) $336.09 $204.56 $240 $44 --:':'jw.t ..' ':.':: ::m:.:
:'~:'~~~ '.' ~'...~-:-. ,,: -
Dependent Contribution $103 to 111 $275 $370-$628 lli1U_l. :--- $330-502 (39%) $78.02 (ee&dep) $750.78 $105.03 $240 $351 to $489 ~~.\ .:~~.~.: :: ~:;
Over/Under 65 Differential City pays difference same H_..:~~'<.:~.:'" : :;~ nla no no no :. 'm1~:*r" .<:". .... ..
no . ::....:::r:: ...:-.......... ..
Plan of Benefits same same same same same same same same same
Insured or Self-Funded self-funded insured insured insured insured insured insured self-funded
Over /Under 65 Differential yes
Notes: no benefit at this looking at pre- PPOITML Vesting and
time; they have scription card Over/Under 65
been consider- to add to plan
J ing it. of benefits
"
CITY OF LA PORTE
RETIREE HEAL THCARE COMPARISON
PUBLIC ENTITIES
CITY OF LA PORTE
RETIREE HEAL THCARE COMPARISON
PUBLIC ENTITIES
$185
$44
$351 ~S489
no
Hams County
TCDRS
yes
Pear/and
TMRS Retiree
no
Baytown Deer Park Pasadena Friendswood Sugar Land Missouri City
TMRS Retireel25 TM~ 10 DPITMRS Retireel TMRS Retiree I TMRS Retiree I Age 65 & 10 yrs
yes no no no no no
(but they all do)
Rqmt of Eligibility # years
Draw Annunity
Other:
0%
$240
5240
no
50%
$204.56
$105.03
no
0%
150%)5336.09
(ee&depl 5750.78
100%
()
(39%) 578.02
no
0%
S14G171
S330-502
nla
0% '--l
S21Q:i295
$370-$628
same
100%
o
$275
95%
$20
$103t0111
ity pays difference
Cost to Retiree
Employer Contribution
Retiree Contribution
Dependent Contribution
Over /Under 65 Differential
same
self-funded
yes
same
insured
same
insured
same
insured
same
insured
same
insured
same
insured
same
same
self-funded
Plan of Benefits
Insured or Self-Funded
Over /Under 65 Differential
Vesting and
OverlUnder 65
PPOITML
ooking at pre-
scription card
~Ian
of benefits
no benefrt at this
time: they have
been consider-
in~rt.
Notes:
-
any
The Welch Com
CITY OF LA PORTE
RETIREE HEAL THCARE COMPARISON
CORPORA TE ENTITIES
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-
Reliant Dow DuPont PPG Roman-Haas Equistar Shell Enron
Ramt of Elioibi/itv # years 5 vrs after age 50 10 yrs & aae 50 58 yrs full 10 years & age 55-57
Draw Annunity no no no
Other:
Cost to Retiree
Employer Contribution 1 x active rate 75% 80% 80%
Retiree Contribution 2x active rate 25% 20% 20%
Dependent Contribution 2x active rate 5% (spouse & minor chlldn 20% 20% (spouse onlv)
Over/Under 65 Differential ves yes yes ves
Plan of Benefits same same same same
Insured or Self-Funded self under 65 self-funded self-funded insured
Over/Under 65 Differential Medicare carve-out Medicare carve-out
Notes: Over 65 are two PPO 2 HMOs coordinate
HMOs after 65 medicare wi Medicare as primary
primary after 65 years
1/1/93 no more
retiree benefits
'FASB 106)
The Welch Com
e
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The Welch Company
Employee Benefits Consulting and Brokerage
Memorial City Plaza
820 Gessner, Suite 1470
Houston, Texas 77024
(713) 827-8755
Fax (713) 461-5788
September 13, 1999
Louis Rigby
Director of Administrative Services
City of La Porte
P.O. Box 1115
La Porte, Texas 77572-1115
RE: Retiree Health Insurance
Dear Louis,
If the City Council's agenda on the above issue is fairly voiced by Mr. Porter, then the
objective of this study and the resulting recommendations will concentrate on the
removal of as much retiree health liability as allowed by the law. My outline of
recommendations is based on my interpretation of Chapter 175 of the Local Government
Code. Your City Attorney and/or outside counsel must review my opinions and
recommendations for legal compliance.
Based on my letter of July 28, 1999, I would recommend approaching the question of
retiree health coverage using four disciplines: Law, Eligibility, Contributions, and Risk.
Disciplines within each of these categories will contribute to the solution. With this
approach in mind the following observations and recommendations are presented with
the goal of eliminating as much retiree health liability as possible.
Law (See Enclosurre)
Section 175.001 Apylicability
1. Any retiree whose employment was based in a municipality with a population
of25,000 or more
2. Any retiree entitled to retirement benefits from a retirement plan
From these two requirements, it appears that anyone qualifying for retirement
benefits (TMRS) in the City of La Porte would be eligible.
e
e
Section 175.002 Right to Purchase Continued Coverage
(a) ... unless the person is eligible for group health benefits coverage through
another employer.
My interpretation of this section is anyone who works after retirement for an
employer who offers health coverage, can be denied retiree health coverage
from the City. This section does not say that the person has to enroll in the
new employer's plan, it just says that if the coverage is available then the
retiree plan is not offered. I do not interpret this section as requiring the new
employer's plan to be primary and therefore, the retiree plan to be secondary.
I believe it allows for no continued retiree coverage in the presence of an
employer-sponsored group health plan.
(b) Election of the benefit should be spelled out in your plan document and other
employee communications.
(c) The important word in the paragraph is "elect." Can you extend an
interpretation to say, if a person looses eligibility via any requirement of your
plan, they no longer will be eligible for future coverage.
(d) Same as (c). Today an active dependent who is gainfully employed as well as
a dependent ofa retiree would be covered secondarily. As I interpret the plan,
the secondary coverage would be tenninated when the retiree's eligibility
tenninates. Two questions for us to resolve is the question of on-going
eligibility of a surviving spouse of an eligible retiree. If your plan presently
covers these dependents, can you distinguish on-going eligibility with and
without gainful employment.
Section 175.003 Level of Coverage
(a) No questions here. ... no gain of coverage as a result of retirement.
(b) . .. does not say essentially the same, it says same. This has negative
connotations if we use a carve-out (Medicare supplement) since the burden on
the City would be to constantly test the parallel benefits of both plans.
(c) We should discuss the Medicare supplement carefully. It may be a good idea
to carve-out the over 65 retirees. However, we know from experience that
insurance companies will not take the under 65 retirees in the same group.
Therefore, you may be better served by retaining the over 65-year olds since
they pose far less risk with their primary Medicare coverage.
Section 175.004 Payment for Coverage
Regardless of the plan, self-funded or insured carve-out, premiums must be paid
to the City versus an insurance company directly.
The Welch COmpany
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Section 175.005 Duty to Inform Retiree of Rights
I believe there should be complete disclosure via letter to all employee/retirees of
all decisions reached as a result of this study. We will also have to amend the
self-funded plan document. The amendment could be distributed as an
attachment to the letter. The amendment would also become part of the plan
document language.
Section 175.006 Certain Matters not Affected
(4) This paragraph spells out quite clearly that the City has no requirement to pay
for any of the cost of retiree coverage.
(5) The paragraph clearly allows for rate changes for the entire plan should
benefits be altered; and more importantly paragraph (7) allows for special
rating for retiree coverage.
Eligibility
As a result of this review of the law we can expand the limits of eligibility. Some
issues to consider include the following.
1. If you do not offer surviving dependent coverage now, you need not offer it in
the future?
2. If retiree dependent and surviving dependent eligibility is included in your
plan's eligibility, can you impose Section 175.002 (d) gainful employment
coverage as superceding the retiree coverage?
3. A retiree who is not covered by a medical plan through an employer must then
be self-employed or not employed. For those who are self-employed, can you
exclude any occupational illness or injury from coverage since worker's
compensation is available to all workers (self-employed or not) and includes a
medical component? This exclusion would be based once again on Section
175.002 (a). A contesting point could be made relating to the tenn "group
health benefits" as it relates to workers' compensation.
4. A big question relates to the applicability of eligibility changes to existing
retirees versus future retirees. I won't offer any guidance on this issue other
than to say it is difficult to take away eligibility on a retrospective basis. I
believe you can impose some of the other recommendations on existing
retirees. However, eliminating existing eligibility can be difficult since
current retirees were not allowed to make other provisions for coverage before
the new rules went into effect.
S. If you were to adopt a plan change that encompassed other group coverage for
retirees, we must solicit TML' s active involvement in checking for other
coverage. This discipline for the claims administrator follows closely with
The Welch Company
e
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scrutiny of coordination of benefits. I would recommend that we get Cheryl
Wessels actively involved in a discussion of how this eligibility. issue is
monitored.
Contributio!lD.S
As we learned from Section 175.006 (4) and (5) the City has no responsibility to
pay for any retiree benefits. My experience has been that Cities that comply with
the law, but provide no contribution, have very minimal retiree enrollment. I
would compare their retiree enrollment levels to COBRA.
With or without full or partial employer contribution, rates can be actuarily based
on claims experience, and/or widely accepted rate multipliers. Additionally, rates
could be subset to over versus under age 65. This separation is made due to the
presence of Medicare in the over 65 population.
To add to the two potential changes to contribution levels sighted above, a vesting
schedule could possibly be added. Obviously, this schedule would reward longer
term employees. However, you should be clear with your intent, since Cities
often encourage early retirement without regard to the downstream cost of retiree
health inSUI1lllce. There is no language in Section 175 that enables or prohibits a
premium vesting schedule for retiree health coverage. Once again, I would
recommend your attorney's opinion on my comments. I know that one of my
City clients uses a vesting schedule based on time in municipal government, time
at that particular City, and Medicare eligibility.
Please be aware that carve out plans using a group benefit concept can be difficult
to secure without an employer contribution. This scenario would logically lean
toward an illldividual Medicare supplement program, left to the election of the
retiree where no City contribution is offered. From my survey of other City's
response to Section 175, this offer of an individual Medical supplement plan has
been a widely used approach. Be aware that this alternative is not extended to
retirees under age 65.
Risk
If existing and future retirees remain in the City's self-funded plan, then claims
experience should be separated from active employee experience. This separation
will allow the plan to track actual claim experience and subsequently justify
weighted contribution levels. A subset of the retiree experience would then be
separated into over versus under 65. Again, this 'data provides justification for
further premium delineation.
The Welch ComQ!Y!!
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The isolation of risk into subcategories and commensurate response in plan
contributions is, by itself, no guarantee of cost neutrality to the Plan. Keep in
mind with a group the size of La Porte, one large retiree claim could dramatically
effect the balance between cost and contribution. We're only as good as 064r last
re-rate! So, if the goal is to minimize or eliminate retiree health cost from the
City's self-funded plan by annually weighing claims cost against contribution, be
aware that it is an imperfect world. The greater the number of control elements
that are introduced from the eligibility, risk and contribution arena, the lower the
potential liability to the plan.
I look forward to discussing these and other ideas with you at your earliest
convenience. I hope this initial response more closely aligns with your required
timeframes for completion.
Best regards,
Neal W. Welch
Enclosure
The Welch Company
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PUBLIC OFFICERS A.'ID E:\-IPLOYEES
(2) declare the compensation or other conditions
of employment required by Section 174.021 for the
period. not to .e:'Cceed one year, as to which the
parties are bargaining; and
(3) award the association reasonable attorney's
fees.
. (c) The court costs of an action under this section.
including costs for a master if one is appoiiu.ed, shall
be taxed to, the public employ,er.. ,
Added by Acts 1993. 73rd Leg.. clL 269, i 4. ef!. Sept.' 1.
1993.
I Section 17".151 et seq.
~ 174.253. Judicial Review of ..\rbitration Award
(a) An award of, an arbitration board may be re-
viewed by a district court for the judicial district in
which the municipality is located only on the grounds
that:
. (1) the arbitration board was without jurisdiction;
(2) the arbitration board e."Cceeded its jur.sdiction;
(3) the order is not suPported by competent,
material, and substantial evidence on the whole
record; or
(4) the order was obtained by fraud. coUusion. or
similar unlawful means.
(b) The pendency of a review proceeding does not
automatically stay enforcement ,of the, arbitration
board's order.
Added by Acts 1993, 'i3rd Leg., c:h. 269, f 4, eif: Sept. 1.
1993.
CHAPTER 175. RIGHT eF CERTAIN MtiNICI-
PAL AND COUNTY E~IPLOYEES TO PUR-
CHASE CONTINUED HEALTH C01-'"ERAGE
AT RETIREMENT
Section
175.001.
175.002.
-.: 175.003.
;& 175.004.
175.005.
1 is.006.
175.007.
Applicability.
Right to Purchase Continued Coverage.
Level of Coverage.
Payment Cor Coverage.
Duty to Intonn Retiree of Rights.
Certain Matters not AfI'ected.
Exemptions.
Acts 1993, 73rd. Leg., ck. 663, i 1 added
this chapter CZ8 Chapter 174, ctm.8i3ting 01
~i 17~001 to 174.007. Acta 1995, 74th. Leg.,
ch. 76, i 17.01(38) renumbered this chapter
CZ8 Chapter 175, ctm.8i3ting 01 U 175.001 to
li5.007.
f. 1 i5.00 1. -.J\PP!icabilitr
This chapter applies to a person who:
EnClosure 1
~ 175.002
(1) retires from county emolovrnent in a county
with a DODulation of ;5.000 or more or municiPl!!
emolovrnent in a municioaIitv with a DODulation ,of
25,000 or more: and
(2) is entitled to receive retirement benefits from'
a county or munic::iDal reCrement Dlan.
Added by .~ 1993, 13rd Leg., ch. 663, f 1, efr. Sept. 1,
1993. Renumbered from V.T.C.-\., Local Gove."1ID1ent Code
f 174.001 by Acts 1995, 74th Lo!g., ch. 76, f 17.01(38), eft
Sept. 1, 1995.
Sections :! me! 3 of the 1993 A.c:t provide:
"See:. 2. (al Chapter 174. Loc::U Government Code. as added by
this Act. appiies 3CeOrding to ita terms to all eligible persons who
leave eount'/ or muniCpal employml!llt on or after January 1, 1994.
Meb) A eouncy or mwW:ipality that is required by Chapter, 174,
Local Government Code. as added by this .-\ct. to Dl'OYide eontiilued'
health bene!'its eover:1I1'!! but that is not allowed to Drovide the
~Ver:lUnder t!le :.erms or" the county's or muniClca.licy's exislintf
group he:llt!l ;llan snall ensure t!13t the l'eOwred conanued beat
oenents eover:lr- IS ProVIded lor III any new plan that is aGODted by
tile eount=.:or:'IIWUClpauty on or ~lIl'Y I. 1994. wuess t!ii
i:'OuiitYO;-mti.~p&iit:/iS e.'tempted willer ;)eCon 11'4.007. LOcal
Government Cooe. as added b)' this .-\c:t.
MSee:. 3. l.1e Te.us ~unicipal Retirement System established by
Subtitle G. W\'ernmelu Code. the Te."laS Municipal League, and
municipal emplo)'ee :lS&ociations ma)' conduct 3 study of the feasibility'
of aeating 3 stateWide municipal retiree health benedta risk poolllld
submit their =dings :0 t.~e Legislacure Dot later than SeDtember 30,
1994.- .
~ 175.002
LOCAL GOVERNlVIENT CODE
For appliobility pro\isions oC the 1993 .-\c:t. and pro\isions relating
to the e.~ting health plans oC loc:U governments, see note foUowing
V.T.C_\.. Loc:U Go\'eminent Code ~ 1iS.001.
~ 175.003. Level of Coverage
(a) The person mav elect to cover the same persons
who were covered under the countv's or municicalitv's
g!:Quc health insurance plan or group health cove~sre
plan throulZ'h the person at the time the person left
co.ttntV or municipal emclovment. or the person may
elect to discontinue coverage for one or more persons.
A oerson who was not covered under the ohm at the
time the oerson to whom this chapter aoolies left
county or municipal emplovment is not eli'gible for
- ..
coverage under this chapter.
(b) Except as provided by Subsections (c) and (d),
the level of coverage provided under this chao tel' at
any given time is the same level of coverag-e provided
to current emolovees of the county or municioalitv at
-- --------
that time.
(c) A county or municioalitv mav substitute ~edi-
care suoolement health benefits coverall."e as the cov-
erage provided for a person who receives health bene-
fits COVer.ll?;e under this ch.epter. including- a deoen-
dent. after the date that the person becomes eligible
for federal Medicare benefits..:
(d) The person may elect to continue coverage at a
reduced level. if offered by the county or municipality.
Added by Acts 1993, i3rd .Leg., ch. 663. ~ 1. ef!. Sept.. 1,
1993. Renumbered from V.T.C_';'" Local Gove.'"tUI1ent Code
g 174.003 by Acts 1995, 74th Leg., ch. 76; g 17.01(381, elf.
Sept. I, 1995. .
For applicability provisions of the 1993 Act, and pro\;sions reloiting
to the existinlr health ptans of 10c:U governments. see note foUowing
V.T.C_\.. Local Government Code ~ 1iS.001.
~ 175.004. Payment fol' Coverage
~ person who is entitled to continued coverage
under this chapter is t!ntitled to make payments for
t:he coverage at the same time and to. the same entity
t.hat payments for the coverage are made bv current
employees of the county 01' 'municipalitv.
Added by Acts 1993, 73rd Leg.. ch. 663, ~ 1. eff. Sept. 1,
1993. Renumbered from V.T.CA, Local Government Code
~ 174.004 by Acts 1995, 74th. Leg.. ch. 76, g 17.01(381. etI.
Sept. 1. 1995.
For applicability provisions of the 1993 Act.' and pro\isions relating
to the existing health plans of loc:u governments. see note foUowing
V.T.C_\.. Loc:U Government Code ~ 175.001.
~ 175.005. Duty to Inform Retiree of Rights
A county and a municipality shall provide writ....en
notice to a person to whom this chapter may apply of
th~ person's rights under this chapter not later than
( 1 )
pality. A county or municipalit'J may fulfill its re-
quirements under this section by placing the written
notice required by this section in a personnel manual
or employee handboo!c that is available to all employ-
ees.
Added by Acts 1993. 73rd Leg~ ch. 663. 9 1, eft Sept. 1.
1993. Renumbered from V,T.C_';'" Local Government. Code
~ 174.005 by .-\cts'1995, 74th Leg., ch. 76, ~ 17.01(38), eft
Sept. 1. 1995. . , .'
Fo!' lIpplli::l.bility provisions o( the 1993 Ai:t. and pnMsiODS relating
to the e:cisting health plans of Ioc:aI governmen~ see note (oUawing
V.T.C_\.. Local Government CQde ~ 173.001.
~ 175.006.. Certain Matters not Affected
This chanter does not:
(1) prohibit a county 01' municioalit'! from, uni-
formly changing the group health insurance Plan 01'
j!T'ouo health coveral?;e plan ol'Ovided fol' its empioy-
ees and retirees:
f 175.0'
l: (a) A
health .
I or a pi
quired
county
pl11'ciw
I. require .
'. authori:
~.
establis
; :1f provide
....-
~
- ;; (b) A
:':'-:
~ .~. age sui:
J ';t
. age ref
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... chapter
.~ :~.
. Added t
1993. R
.;A- ~ 174.00'
:i Sept. 1.
For ap!
.~ t.a tIle eX!
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CHAP1
SI(
PL
TII
ER
Section
180.001.
180.002.
180.003.
f 180.01
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(a) A:
al coerc
pate 01'
campaig
(b) A.
and is I
more th
not mOl"
ment.
Acts 198'
PUBLIC OFFICERS AJ.'ID E;}lPLOYEES
~ 175.007. Exemptions
(a) A county or municipality that does not provide
~ealth benefits coverage through a self-insured pian
)r 3 plan authorized under Chapter" 172 is not re-
:tuired to provide coverage under thiS chapter if the
:ounty or municipality makes a good faith effort to
oUl'chase insurance coverage that includes coverage
~quired by this chapter from an insurance company
luthorized to do business in this state and from pools
~st:l.blished under Chapter 172 but is unable to fmd a
pro\;der for the coverage.
(b) .-\. county Qr municipality that is providing cover-
1ge substantially similar to 01' better than the cover-
1ge required by this chapter is e.'tempt from this
:hapter.
:\dded by Acts 1993. i3rd Leg.. ch. 663. ~ 1. err. Sept. 1.
1993. Renumbel'ed fl'om V.T.CA. Local Government Code
i 17~.007 by Acts 1995. 74th Leg.. cn. 76. ~ 17.01(381. ef!.
St!pt. 1. 1995.
For appliC30ilit)' pl'O\isions of the 1993 .~ and pl'O\isions relating
:0 t.'le eldsting health plans of local go\'ernmenlS, see note Collo\\ing
If.T.G-\.. Local (;.)"el"llment Code ~ 175.001.
[Chapters 176 to 179 resel'\'ed for e.'tpansion]
CHAPTER 180. MISCELLAL'fEOUS PROVI-
SIONS AFFECTING" OFFICERS A.J.~D EM-
PLOYEES OF MUNICIPALITIES. COUN-
TIES. A."-o, CERTAIN OTHER LOCAL GOV-
E R='- ,)-IE :'iTS
5ection
l80.001. Coercion of Police Officer or Fire Fighter in Con-
nection With Political Campaign.
l80.002. Defense of Civil Suits Against Peace Officers. Fire
Fighters. and Emergency Medicni Pe1'SonneL
180.003. ~a.'cimum Duty Hours of Peace Officers.
i 180.001. Coercion of Police Officer or Fire
Fighter in Connection With Political
Campaign
(a) An indi,,;dual commits an offense if the individu-
Ll coerces a police officer or a fire fighter to partici-
late or to refrain from participating in a political
:ampaign.
(b) An offense under this section is a misdemeanor
Ind is punishable by a fine of not less than $500 or
nore than $2.000, confinement in the county jail for
lot m01'e than two yea1"S, or both a fine and confine-
nent.
LCts 1987. 70th Leg.. ch. 149. ~ 1. err. St!pt. 1. 1987.
~ 180.003
g 180.002. Defense of Civil Suits Against Peace
Officers, Fire Fighters. and Emer-
gency Medical Personnel
(a) In this section. "peace officer" has the meaning
assigned by Article 2.12, Code of Criminal Procedure.
(b) A municipality or special purpose district shall
. provide a municipal or district employee who is a
peace officer, fire fighter, or emergency medical ser-
vices employee with lepl counsel without cost to the
employee to defend the employee against a suit for
-damages by a-party other than a governmental entity
if:
(1) legal counsel is requested by the employee;
and
(2) the suit involves an official act of the employ-
ee \\;thin the scope of the employee's authority.
(c) To der"end the employee against the suit, the
municipality or special purpose district ma:; provide
counse! already employed by it or may employ private
counseL
(d) If the municipality or special purpose district
fails to pro"ide counsel as required by Subsection (b),
the employee may recover from it the reasonable
attorney's fees incurred in defending the suit if the
trier of fact finds:
(1) that the fees were incun-ed in defending a suit
covered by Subsection (b); and
(2) that the employee is without fault or that the
employee acted with a reasonable good faith belief
that the employee's actions \'-ere proper. -
Acts 1987. 70th Leg., ch. 149. 9 1. ef!. Sept. 1. 1987. Amend-
ed by Acts 1989. 7lst Leg.. ch. 1. 9 42(a), ef!. Aug. 28. 1989.
g 180.003. Ma.ximum Duty Hours of Peace Offi-
cers
(a) In a county with a population of 191,500 to
200.000, a sheriff. deputy, constable, or other peace
officer of the county or a municipality located in the
county may not be required to be on duty more than
48 hours a week unless the peace officer is called on
by a superior officer to serve during an emergency as
determined by the superior officer.
(b) Hours of duty over 48 hours a week, compiled
by a peace officer under Subsection (a). may be treat-
ed as overtime and may be deducted from future
required hours of duty if:
(1) the overtime is used within one year after it is
compiled; and
295
(1)
I
"
e
ASKINS & ARMSTRONG,
ATTORNEYS AT LAW
702 W. FAIRMONT PARKWAY
P.O. BOX 1218
LA PORTE, TEXAS 77572-1218
e
P. C.
KNOX W. ASKINS
.JOHN D. ARMSTRONG
TELEPHONE 281 471-1886
TELECOPIER 281 471-2047
CHARLES R. HUBER. .JR.
BOARD CERTIf'IED . CIVIL TRIAL LAW
TEXAS BOARD Of" LEGAL SPECIAL.IZATION
October 7, 1999
Mr. Louis Rigby
Director of Administrative Services
city of La Porte
City Hall
La Porte, Texas
Re: Retiree Health Insurance
Dear Louis:
At your request, I have reviewed letter dated September 13, 1999,
from Mr. Neal W. Welch, a copy of which you furnished to me on
October 5, 1999, for review. My review has been limited to the law
points in the letter. The law points are based on Mr. Welch's
review of Chapter 175 of the Local Government Code. My review is
limited to the sections of that Chapter which Mr. Welch discusses,
and I express no opinion as to the application of other state law,
or Federal law on this matter.
I agree with Mr. Welch's comments on section 175.001. I agree with
Mr. Welch's comments on section 175.002(a) and (b).
I do not believe you can extend the interpretation of 175.002(c),
beyond the clear language of the code section. My same comment
would apply to subsection (d). As to the comments on the final
section of subsection (d), I do not think that the death of the
retiree, per se, would be an election by that person to discontinue
coverage. If you will refer back to subparagraph (a), the
qualifying phrase in the first sentence is "unless the cerson is
eligible for group health benefits coverage through another
employer. " The question would be, does the word person include the
person's eligi~le dependents? The issue of the person's
eligibility would have been determined, of course, during the
person's lifetime, based on whether or not the person was eligible
for group health benefits coverage through another employer. This
to me would be conclusive as to the dependent.
Section 175. 003 . I agree with the comments as to subparagraph (a).
I agree. as to subparagraph (b).
Subsections (c) and (d) under the terms of subsection (b), are an
excection to the language in subparagraph (b) establishing parity
of coverage "at any given time" at "the same level of coverage
provided to current employees." wi th the carve out language in
subparagraph (b), it would appear that a plan could legally provide
e
ASKINS & ARMSTRONG, P. C.
e ATTORNEYS AT LAW
Louis Rigby
October 7, 1999
Page 2
a medicare supplement which would not have to provide the same
level of coverage as other employees. This gets to be a tricky
question of Federal preemption, as I believe there are about eight
different levels of medicare supplement pOlicies which are approved
by medicare. Federal law on medicare would preempt this, and other
state laws, to the extent of any conflict. In my opinion, the City
of La Porte would be wise to select a medicare supplement which,
together with medicare benefits, would most closely mirror the then
level of benefits prov~ded to current employees. Subparagraph (d)
is not discussed by Mr. Welch, although I would comment that the
election here to continue coverage at a reduced level, if offered
by the City, is strictly that of the "person" and not the City.
section 175.004 provides for payment for coverage. I agree with
Mr. Welch's comments.
section 175.005 Duty to Inform Retiree of Rights. I agree with Mr.
Welch's comments. In addition, I would assume that most retirees
go through a notice to the City of intended retirement, together
with notice to TML, and processing by the Human Resources office.
The notices as to a prospective retiree's rights as to insurance
options, which by statute must be exercised by the date of
retirement, should, in my opinion, be reiterated to the prospective
retiree during this notice and processing period, in addition to
the other requirements.
Section 175.006 certain Matters not Affected. I disagree with Mr.
Welch's interpretation of subparagraph 4. As I understand
subparagraph 4, it does not prohibit the City from aareeina with a
person to pay for the coverage provided under this Chapter,
provided the person reimburses the county or municipality for the
actual cost of the coverage. I do not interpret this paragraph to
give the City the power to unilaterally deny coverage: I agree
with Mr. Welch's interpretation of subparagraphs 5 and 7.
I would welcome the opportunity to review plans which have been put
in place by other Texas municipalities on retiree coverage.
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Knox W. Askins
City Attorney
City of La Porte
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cc: Mr. Neal W. Welch
The Welch Company
820 Gessner, Suite 1470
Houston, TX 77024
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September 14, 1999
CITY fvlJ.\iN}aG'~~~t
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TO:
Robert T. Herrera, City Manager
FROM:
John Joerns, Assistant City Manager
Jeff Litchfield, Director of Finance
Space Analysis: Police Department/ Ipal Court & EOC Facilities
Architectural Services Agreement with B2HK
SUBJECT:
When discussions and budgeting for an EOC began several years ago there was no
active project identifying the future needs of the PD/Municipal Court.
Now, as we consider the planning for these facilities, it has become apparent that there
may be definite advantages to combining the future police/court complex with the EOC.
This would eliminate the need for having redundant features, Le.
dispatch/communications equipment, emergency generators, etc. Additionally, the
police/court complex will have conference rooms and court rooms, etc. that could
double as an operations center in emergencies.
If we pursue incorporating the EOC into the future police/court complex, then the
building at the Fire Training Center would return to its original intent - a classroom
facility supporting the training field.
We believe this idea has significant cost saving potential and warrants further
consideration. Staff will move in this direction unless otherwise directed.
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I Texas Department ,of Transportation
P.O. BOX 1388. HOUSTON, TEXAS'77251-1388 ."(713) 802-5000
September 28, 1999
Use of State Right-of-Way Request
Decorative Ligli~g and Banners
on Traffic SigDal Poles and Light Poles
on State Riglit-of-Way
The Honorable Norman L. Malone
Mayor, City of La Porte
p, O. Box 1115
La Porte, Texas 77572-1115
CONTACT: TRF ENG
In ~ ~ lEU W
OCT 0 5 1999
PUBUC WORI(S
OCT 0 4 1999
CITY SECRETARY'S
OFFICE
Dear Mayor Malone:
As the planning for festive decorations for the upcoming holiday season approaches, I would like to
provide a clarification of the Texas Department of Tr.ansPortation's procedure regarding decorative
lighting and banners on signal and light poles within the State's right-of-way.
While the Departnient does not want to detract from the festive atmosphere that comes from this
time of the_year, safety issues as well as some functional issues remain a concern of the Department.
Under the Use of State Ri2ht-of-Way Policy dated July 28,1999, as set by the Texas Transportation
Commission, cities should request a permit under the category of temporary banners and signs for
placing seasonal decorations on State right-of-way for seasonal decorations. '
In order to review fOur permit request in a timely manner, we ask that you submit your request to
this office 30 ~ys m advance of planned installation date, In handling this type of permit request,
the following information will be required:
8 Drawings of the proposed decorations with product specifications and the
recommended or proposed connections
· If the proposed decorations are to be on utility poles owned by others 1 a letter from
the owner allowing the installation of the additional lighting and/or aecorations on
their poles
· An ap~p'riate traffic control plan (letter from a law enforcement agency,
acceptable Department standard or a signed, sealed, and dated traffic control plan)
for the installation and removal of the decorations
Upon receipt of this aforementioned material is received, the permit request will be reviewed, We
mow that l'QU are committed to a safe and joyous season and that you Will work with us to achieve
this goal. If you should have any questions concerning this matter or need any further assistance,
please call me at (713) 802-5171 or Mr, A, J. (Skip) Stayton at (713) 802-5187.
Sincerely,
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-Cr Sally G. We P,E.
Director of ransportation Operations
Houston District
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cc: Mr, A, J. Stayton
Mr. Gary K. Trietsch, P.E.
An Equal Opportunity Employer