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HomeMy WebLinkAbout2000-04-17 Special Called Workshop Meeting• C~ MINUTES OF THE SPECIAL CALLED WORKSHOP OF LA PORTE CITY COUNCIL APRIL 17, 2000 1. CALL TO ORDER The meeting was called to order by Mayor Norman Malone at 6:00 p.m. Members of City Council Present: Councilpersons Guy Sutherland, Chuck Engelken, Alton Porter, Peter Griffiths, Deotis Gay, Chazlie Young, Jerry Clazke, and Mayor Norman Malone. Members of Council Absent: Councilperson Howard Ebow. Members of City Executive Staff and City Employees Present: City Manager Robert T. Herrera, Assistant City Manager John Joerns, City Secretary Martha Gillett, Director of Administrative Services Louis Rigby, Fire Chief Joe Sease, Fire Suppression Supervisor Champ Dunham, Lieutenant Cazl Crisp, Fire Marshal Paul Hickenbottom, Assistant Police Chief Aazon Corrales, Police Chief Richazd Ref£ Director of Public Works Steve Gillett, Fire Department Jim Vann and Jim Bridge. Others Present: Mr. and Mrs. Dorsett and family and a number of citizens. 2. Mayor Norman Malone delivered the Invocation. 3. Council considered approving the minutes of the Regulaz Meeting and Public Hearing on April 17, 2000. Motion was made by Councilperson Engelken to approve the minutes of the Regular Meeting and Public Hearing as presented. Second by Councilperson Clarke. The motion carried. Ayes: Sutherland, Engelken, Griffiths, Porter, Gay, Young, Clazke, and Mayor Malone Nays: None Abstain: None 4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAXPAYERS WISHING TO ADDRESS COUNCIL. There were no citizens wished to address Council. 5. The special called workshop meeting was called to order by Mayor Norman Malone at 6:00 PM. A. DISCUSS MEDICAL COVERAGE FOR RETIREES Director of Administrative Services Louis Rigby presented report on medical coverages for retirees to City Council. Mr. Sutherland noted for the record that he was not present when this was previously discussed in October. • City Council Minutes -April 17, 2000 -Page 2 Mayor and Council requested Louis Rigby to do the following items outlined below and bring this matter back to a future Council Meeting. 1) Calculate numbers suggested by Councilman Peter Griffiths and determine the budget impact over the next five (5) years. 2) Review supplemental insurance policies to cover employee medical costs. 3) Review changing retroactive date of January 1, 2001. Mayor and City Council permitted employees in the audience to share their concerns. Retiree Jim Vann informed Council he had concerns with insurance costs changing after an employee retires. Retirees base their budget and retirement decisions. Lt. Carl Crisp shared his concerns with Council regarding the retiree medical insurance. He pointed out that he believes City employees work for less money than private sector employees in return for better benefits. B. DISCUSS HOTEL PROJECT AT SYLVAN BEACH City Manager Robert T. Herrera briefed City Council on the history of the Hotel Project at Sylvan Beach and previous studies conducted. Mr. Herrera reminded Council the City previously hired a firm on November 11, 1996. The City entered into a contract with them to do a study of the hospitality industry in La Porte and to research the convention center side as well. The study came back indicating La Porte had a positive hotel market study. The market for financing has been very weak. The study cost was approximately $20,000 and was paid for from hoteUmotel funds. In addition, the City reached an agreement with Benchmark Corporation to pick up fifty percent (50%) of the cost of the study. Over time, the City has met with the County Commissioner and he is in favor of a project at Sylvan Beach, but the City has not been able to launch this project. Mr. Herrera reported he had a previous meeting with Jeff Litchfield, former Assistant City Manager and David Hawes of Hawes, Hill and Patterson regarding the Tax Reinvestment Increment Zone (T1.RZ) helping this project. It was determined the TIRZ could help in this project. Mr. Herrera also reported he visited with the Harris County Corporation for Economic Development and they would like to participate in this project on the hotel or convention side. Mr. Herrera informed Council the two things he will be asking Council to consider approving in the future are as follows: City Council Minutes -April 17, 2000 -Page 3 1) Complete an update study of the hospitality market analysis with the same firm who conducted the initial study. The City's portion of the study would be $10,000.00. 2) The City of La Porte consider underwriting a portion or all of the convention center. This could be accomplished through utilizing the hoteVmotel funds. Mr. Herrera introduced Mr. Cabanas of Benchmark Hospitality to inform Council his about his role and investment in this project. Mr. Cabanas explained the first study was an overview of the corporations and market place and their needs for within the community. He indicated he felt this project could be a facility that could step up a grade and be a conference hotel or a conference resort due to its connection with Sylvan Beach. He explained the difficulties in finding financing for this project and no financing could be found for a conference hotel. In 1998 considerations were given to the tax approach of financing a facility of this type. His firm could develop the hotel operation and the conference facility could be done by the City and between the two reach a point to make this a viable project. He indicated this type of project could be compared to the Woodlands and Del Lago. The additional study is needed to get one more view of the market place today and consider a large volume of day meetings. His firm would again share fifty percent (50%) of the cost of the study. Also by adding the day meetings as a component, financing may be available because the project would not be just a conference center. Mr. Herrera informed City Council he requested Mr. Litchfield come back to and provide a report on his analysis of the financial impact of this project on the City of La Porte. Mr. Litchfield reviewed his analysis and report with City Council. His report included the past and future performance of the hoteVmotel fund. The revenues reflected the increase from 4% to 7% and the new hotels recently opened in the City. Mr. Litchfield explained the estimated financial condition of the City should this project be funded from City funds. The consensus of Council was to direct Mr. Herrera to move forward with a second study and continue to explore a financing mechanism for the convention center and move forward with this project. Items will be recommended to City Council to vote on at a future meeting. The estimated time frame for this is approximately five (5) weeks. Workshop adjourned at 8:05 PM. 6. ADMIlVISTRATIVE REPORTS City Manager Robert T. Herrera reminded Council of the following events: A. City Holiday -Good Friday, Friday, Apri121, 2000. B. Sylvan Beach Day -Saturday, April 29, 2000. • City Council Minutes -April 17, 2000 -Page 4 C. Early voting -Council Chambers -April 19 through May 2, 2000, 8:00 AM to S:OOPM. 7. COUNCIL ACTION Councilpersons Sutherland, Engelken, Griffiths, Porter, Gay, Young, Clarke brought items to Council's attention. 8. 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) There were no items to be discussed in Executive Session. 9. CONSIDERATION AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION Due to no Executive Session, there was no action taken. 10. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 8:15 PM. Respectfully submitted, ~~Ql' ~~4~C~ Martha Gillett City Secretary Passed and approved on this 24 day of Apri12000. ~j~ ~~ o~L. alone, Mayor • ~ • • • A FOR CITY Agenda Date Requested: April 17, 2000 ITEM Requested 13y: Louis Ruby Department: Administrative Services Report Resolution Ordinance Exhibits: SUMMARY dt RECOMMENDATION On December 13, 1999, City Council approved Ordinance Number 99-2369, an ordinance adopting an amendment to the City's Medical Plan by providing for the terms and conditions of retiree medical coverage. The ordinance passed by a vote of seven to one with Councilman Porter absent from the meeting and Councilman Gay casting the nay vote. Council has asked staff to revisit the amendment in a workshop setting. Attached to this agenda request is information of where we were and the changes that were adopted, demographic information, as well as other questions from employees that have arisen since adoption. Action Requited by Council: Review the amendment to the medical plan as it pertains to retiree coverage and provide direction to staff. Availability of Funds: _ General Fund _ Water/Wastewater _ Capital Improvement _ General Revenue Sharing Other Account Number: Funds Available: Yes No Approved for City Council Agenda ~c~~ 1 ~ ~~.,v~.~e~ ~{-1~- 2,00 Robert T. Herrera Date City Manager • EXHIBIT A Copy of agenda request for meeting of December 13, 1999 EXHIBIT B Copy of minutes of December 13th meeting EXHIBIT C History and Information EXHIBIT D Demographic Information EXHIBIT E Specific Concerns From Retirees and Employees EXHIBIT F Other Questions That Have Arisen Since Adoption • • EXH/BI T A COPY OF AGENDA REQUEST FOR MEETING OF DECEMBER 73, 7999 REQ~ FOR CITY COUNCIL AGENDA l~M Agenda Date Requested: December 13. 1999 Requested By: L. Rigby Department: Administrative Services Report Resolution X Ordinance Exhibits: Ordinance Retiree Medical Coverage Plan SUMMARY & RECOMMENDATION Council has asked that staff review the current policy of providing health insurance to retirees. The proposed changes and additions aze attached for your review. During the workshop sessioq there was discussion regazding those retirees, who retired in 1993 and before, who Council, at that time, agreed to cover at 100%. There were sixteen (16) retirees at that time on the City's medical plan. All but one (1) are currently age 65 or older and eligible for Medicare. Staff recommends that this group of retirees remain on their current plan since Medicare is primary with the one exceptioq and the City's coverage is secondary. The proposed policy would affect fourteen (14) employees who retired in 1994 and later, and all employees retiring after adoption. Staff recommends that if this policy is approved, it go into affect one year from date of adoption. All current employees will be notified in writing and through employee meetings. All affected retirees will immediately be notified by mail, allowing them sufficient time to make any necessary arrangements. Action Required by Council: Consider approving ordinance to change the City of La Porte Medical Plan as it pertains to retiree medical coverage. Avar7ability of Funds: _ General Fund_ Water/Wastewater _ Capital Improvement General Revenue Sharing _ Other Account Number: N/A Funds Available: _ YES _ NO y rY g A roved for ouncil A enda ~• - - 9 y ert T. rrera D e i Ma er • ORDINANCE NO. 99-~.3~0 AN ORDINANCE ADOPTING AN 'AMENDMENT TO T8E CITY OF LA PORTE MEDICAL PLAN; SY PROVIDING FOR T8E TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE; PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT; PROVIDING A SEVERABILITY CLAIISE; FINDING COMPLIANCE WITH T8E OPEN MEETINGB LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City of Medical Plan is hereby amended, by adding the terms and conditions of "Retiree Medical Coverage" in form attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. Section 2. The "Retiree :Medical Coverage" provisions, as contained in this Ordinance, shall be effective January 1, 2001. Section~+3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance or amendment of the City of La Porte Personnel Policy Manual hereby adopted, shall for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, or said Personnel Policy Manual, 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 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 9R-z 369 ~ ~~ 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 5. This Ordinance shall be effective January 1, 2001, and it is so ordered. PASSED AND APPROVED, this 13th day of December, 1999. CIT~ OF LA PORTE r . By• • N an L. alo ~e, Mayor Knox W~. Askins, City Attorney Y 2 ATTEST: a tha A. Gillett, City Secretary • RETIREE MEDICAL COVERA~ ELIGIBILITY Medical Plan shall be changed as follows: "You may also participate in this plan if you are a retiree of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System of and have completed at least 3 ~"~""~'~"~~ consecutive ears of service with La Porte immediately prior to retirement. `< ~ aC~; PREMIUMS The City of La Porte utilizes a self funded medical plan so there are no formal premiums paid for health insurance. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. The current amount is $4,500 per employee. Costs to the retiree shall be based on a three tier plan: The first tier shall be based on a point system consisting of a combination of age and continuous years of service with the City of La Porte. Qualification for this coverage requires age and years of service to total at least S0. The City will pay 100°~ of coverage for eligible retirees. Dependent coverage shall be charged at the active employee dependent rate. For example: New hire at 20 years of age -Qualifies at age 50 with 30 years of service. New hire at 40 years of age -Qualifies at age 60 with 20 years of service. Retiree Medical Coverage • Page 2 The second tier will be utilized for retirees not meeting the eligibility of the first tier. The percentages paid by the retiree shall be based on the budgeted amount discussed in paragraph one of this section. Continuous Years of Service with La Porte Retiree Cost City Cost At {east 10 but less than 15 70% 30°~ At least 15 but less than 20 60°~ 40% At least 20 but less than 25 50°~ 50°~ At least 25 but less than 30 25% 75°~ At least 30 0 100°~ Dependent coverage shall be charged at the active employee dependent rate. 1 Any employee meeting the eligibility requirements for disability retirement under the Texas Municipal Retirement System Act shall be eligible for medical benefits, provided they have worked for the City of La Porte for five (5) continuous years. Costs associated with retirement under this tier shall be the same as Tier 2, with the addition of: At least 5 but less than 10, retiree cost shall be 75%. Dependent coverage shall be charged at the active employee dependent rate. • 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 your or placed in your home for adoption; 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. ~ ~ EXHIBIT B COPY OF MINUTES OF DECEMBER 13~'' MEETING • • MINUTES OF THE REGULAR MEETING, WORKSHOP MEETING, AND PUBLIC HEARING OF LA PORTE CITY COUNCIL DECEMBER 13,1999 1. CALL TO ORDER The meeting was called to order by Mayor Norman Malone at 6:00 p.m. Members of City Council Present: Councilpersons Guy Sutherland, Chuck Engelken, Howard Ebow, Peter Griffiths, Deotis Gay, Charlie Young, Jerry Clarke, and Mayor Nonman Malone. Members of Council Absent: Councilman Porter. Members of City Executive Staff and City Employees Present: City Manager Robert T. Herrera, City Attorney Knox Askins, Assistant City Manager John Joerns, City Secretary Martha Gillett, Director of Public Works Steve Gillett, Director of Parks and Recreation Steven Barr, Director of Planning Doug Kneupper, Director of Administrative Services Louis Rigby, Assistant Chief of Police Aaron Corrales, Fire Chief Joe Sease, City Planner Masood Malik, Accounting Manager Kathy Hutton, Fire Marshal Paul Hickenbottom, Assistant Finance Director Cynthia Alexander, Administrative Assistant Carol Buttler, and Purchasing Agent Susan Kelley. Others Present: Spero Pomonis, Bill Hall, Karl Paulissen, Toby Kroeger, Mike Mosteit, Jean Young, Colleen Hicks, and a number of citizens. 2. Councilman Peter Griffiths delivered the Invocation. 3. Council considered approving the minutes of the Regular Meeting on November 22, 1999. Motion was made by Councilperson Clarke to approve the minutes of the ReQUIaz Meeting as presented. Second by Councilperson Engelken. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Clarke, and Mayor Malone Nays: None Abstain: None Councilman Young was not present when the vote was taken. 4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAXPAYERS WISHING TO ADDRESS COUNCIL. Toby Kroeger -10030 Antrim Lane -Speed Hump complaint. Due to traffic study, city will not install speed hump on his street. -Requesting the City to re-evaluate the speed hump policy due to the number of small children on his street. 5. Open Public Hearing -Mayor Malone opened the Public Hearing at 6:10 PM. ~ ~ City Council Minutes -December 13, 1999 -Page 2 Review by Staff- Director of Planning Doug Kneupper presented summary and recommendation outlining rezoning Lot 109, Block 8, Spencer Highway Estates from Low Density Residential (R-1) to General Commercial (GC). Mr. Kneupper noted that the Planning and Zoning Commission unanimously approved the request. Public Input -Frank Pickens -102 Eastway, Galena Park, Texas 77547 addressed the Council to support this request. Recommendation of Staff - To approve rezoning of Lot 109, Block 8, Spencer Highway estates from Low Density Residential (R-1) to General Commercial (GC). Close Public Hearing -Mayor Malone closed the Public Hearing at 6:21 PM. 6. Council considered approving an ordinance amending ordinance number 1501, more commonly referred to as the Zoning Ordinance, by changing classification of that certain parcel of land herein described. Director of Planning Doug Kneupper presented summary and recommendations and answered questions for City Council. City Attorney read: ORDINANCE 1051-GG - AN ORDINANCE AMENDING ORDINANCE NO. 1501, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTS, BY CHANGING CLASSIFICATION OF THAT CERTAIN PARCEL OF LAND HEREIN DESCRIBED; MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. :~~ Motion was made by Councilperson Sutherland to approve the ordinance as presented by .:' Mr. Kneupper. Second by Councilperson Engelken. The motion carried unanimously. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 7. Council received a report concerning the new Library. Administrative Assistant Carol Buttler provided an overview and introduced Bill Hall, Hall/Barnum Architects. Mr. Hall provided Council with an overview of the site plan and answered City Council questions. City Manager Robert T. Herrera reminded City Council the public has been involved throughout this project. City Council advised staff to move forward with the bid process. 8. Council received a report concerning outstanding purchase orders and provided Director of Finance with direction on budget amendments. • City Council Minutes -December 13, 1999 -Page 3 Accounting Manager Kathy Hutton presented summary and recommendations to City Council. Motion was made by Councilperson Engelken to instruct the Director of Finance to amend the various operating budgets for outstanding_purchase orders. Second by Councilperson Griffiths. The motion carried unanimously. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 9. Council received a report concerning Fairmont Parkway expansion and provided staff with direction on city's level of participation in the project. Director of Planning Doug Kneupper presented summary and recommendations to City Council. Mr. Engelken made a motion for staff to continue with 16s' street expansion and to negotiate expenditures with Harris County. Second by Councilperson Griffiths. The motion carried unanimously. 10. Council considered approving an ordinance authorizing a contract for the Fairmont Park Baseball complex concrete sidewalk and slab work. Director of Parks and Recreation Steven Barr presented summary and recommendations and answered questions for City Council. ';City Attorney read: ORDINANCE 99 - 2368 AN ORDINANCE APPROVING AND .AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTS AND 'BROOKS CONCRETE, INC. FOR CONSTRUCTION OF THE FAIRMONT PARK BASEBALL COMPLEX CONCRETE SIDEWALK AND SLAB WORK PROJECT; APPROPRIATING $54,615.76 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING " COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Counciperson Ebow to approve the ordinance as presented by Mr. Ban. Second by Councilperson Engelken. The motion carried unanimously. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 11. Council considered approving an ordinance amending the retiree medical plan coverage. Director of Administrative Services Louis Rigby presented summary and recommendations and answered questions for City Council. • • City Council Minutes -December 13, 1999 -Page 4 City Attorney read: ORDINANCE 99 - 2369 - AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTS PERSONNEL POLICY MANUAL DATED JANUARY 1, 1992, AND THE CITY OF LA PORTS MEDICAL PLAN BY PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE; PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT; PROVIDING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Griffiths to approve the ordinance with the chance that all tiers should read "Dependent coverage shall be charged at the active employee rate for dependents." Second by Councilperson Ebow. The motion carried unanimously. Ayes: Sutherland, Engelken, Ebow, Griffiths, Young, Clarke, and Mayor Malone. Nays: Gay Abstain: None 12. Council considered approving an ordinance authorizing the execution by the City of La Porte of an Industrial district Agreement with Dolima Properties, L.P., for the term commencing January 1, 1999 and ending December 31, 2000. Director of Planning Doug Kneupper presented summary and recommendations. City Attorney read: ORDINANCE 93-IDA-55 - AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTS OF AN INDUSTRIAL DISTRICT AGREEMENT WITH DOLIMA PROPERTIES, L.P., FOR THE TERM COMMENCING JANUARY 1, 1999, AND ENDING DECEMBER 31, 2000; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING '.'~ AN EFFECTIVE DATE HEREOF. Motion was made by Councilnerson Engelken to approve the ordinance with change in effective date which should be January 1.2000 to December 31.2000. Second by Councilperson Isbow. The motion carried unanimously. _ Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 13. Council considered approving an ordinance authorizing a water service agreement between the Cit;/ of La Porte and Dolima Properties, L.P., for provision of potable water service. Director of Planning Doug Kneupper presented summary and recommendations. City Attorney read: ORDINANCE 99-2370 - AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTS AND DOLIMA PROPERTIES, L.P., FOR PROVISION OF POTABLE WATER SERV:[CE; MAKING VARIOUS FINDINGS AND PROVISIONS • • City Council IV[inutes -December 13, 1999 -Page 5 RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS L.AW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Gay to approve the ordinance as presented by Mr. Kneupper. Second by Councilperson Griffiths. The motion carried unanimously. Ayes: Sutherla~id, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 14. Council consid~:red approving an ordinance amending local amendments to the adopted Fire Code of the City of La Porte, being the standard Fire Prevention Code-1994 edition, by amending Chapter 3 of the local amendments to said code-recognized standazds and publications. Fire Marshal P~iul Hickenbottom presented summary and recommendations. City Attorney read: ORDINANCE 99-2222-A - AN ORDINANCE AMENDING LOCAL AMENDMENTS TO THE ADOPTED FIRE CODE OF THE CITY OF LA PORTE, BEING THE STANDARD FIRE PREVENTION CODE-1994 EDITION, BY AMENDING CHAPTER 3 OF THE LOCAL AMENDMENTS TO SAID CODE- RECOGNIZE)r- STANDARDS AND PUBLICATIONS. PROVIDING A PENALTY FOR THE VIOLATION THEREOF; PROVIDING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Sutherland to approve the ordinance as presented by Mr.. Hickenbott~~m. Second by Councilperson Engelken. The motion carried ;~ unanimously. ..} `Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clakke, and Mayor Malone. Nays: None . Abstain: None 15. Council considered approving an ordinance appointing members of the Board of Directors of City Reinvestment Zone Number One. Assistant City 1\~Ianager John Joerns presented summary and recommendations. City Attorney read: ORDINANCE 99-2371- AN ORDINANCE APPOINTING MEMBERS OF THE BOARD OF DIRECTORS OF CITY OF LA PORTE REINVESTMENT ZONE NUMBER ONE; FINDING COMPLIANCE WITH THE OPEN MEETIr1GS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was mane by Councilperson Clarke to approve the ordinance as presented by Mr. Joerns. Second by Councilperson Young. The motion carried unanimously. • ~ • City Council N[inutes -December 13, 1999 -Page 6 Ayes: Sutherla~~d, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 16. Council considered approving an ordinance authorizing a concession agreement between the City of La forte and Linda Darnell Witt, to operate and manage the Sylvan Beach Park Pier and authorize the City Manager to execute said concession agreement. Director of Parlks and Recreation Steven Barr presented summary and recommendations. City Attorney read: ORDINANCE 99-2372 - AN ORDINANCE AUTHORIZING A CONCESSION' AGREEMENT BETWEEN THE CITY OF LA PORTE AND LINDA DARNELL W1TT,.TO OPERATE AND MANAGE THE SYLVAN BEACH PARK PIER AND AUTHORIZE THE CITY MANAGER TO EXECUTE SAID CONCESSION' AGREEMENT MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS L~~W; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Engelken to approve the ordinance as presented by Mr. Barr. Second by Councilperson Ebow. The motion carried unanimously. Ayes: Sutherla~id, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 17. Consent Agenda A. Consider awarding bid to Vallen Safety for replacement air packs and air cylinders - J. Sease. B. Consider awarding bid to Frazer Ambulance for ambulance unit - J. Sease. C. Consid~:r awarding bid to Baker Equipment for truck-mounted hydraulic cleanin;; and vacuum unit - S. Gillett. D. Consid~;r awarding bid to Jones Oil for annual supply of oils, fluids and lubrica~its - S. Gillett. E. Consid~;r awarding bid to Questmark Information Management for the printing, insertion and mailing of utility bills - J. Litchfield. Councilperson Gay made motion to vote on all Consent Agenda items together and approve items presented. Seconded by Councilperson Young. Motion carried unanimously. • • City Council Minutes -December 13, 1999 -Page 7 Ayes: Sutherlazid, Engelken, Ebow, Griffiths, Gay, Young, Clarke, and Mayor Malone. Nays: None Abstain: None 18. ADMINISTRATIVE REPORTS City Manager Robert T. Herrera reminded Council of the following events: A. Christmas Holidays -December 23 - 24, 1999. B. Council. Meeting scheduled for December 27, 1999 has been cancelled. C. New Yc:ars Eve -The Emergency Operation Center will be open on New Years Eve from 9:00 PM to 1:00 AM in case any emergencies arise. 19. COUNCIL ACTION Councilpersons Sutherland, Engelken, Ebow, Griffiths, Young, Clarke, Gay, and Mayor brought items to Council's attention. 20. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS L.AW, CHAPTER 551.071 THROUGH 551.076, AND 551.084, TEXAS GOVERNMENdT 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 ~:•.EXAIVIINATTON OF ANOTHER WITNESS IN AN INVESTIGATION) •.r " A. 551.071 (CONTRACTUAL MATTER) Meet with Attorney and City Manager to discuss contractual matter: Council retired into Executive Session at 7:55 PM under Section 551.071 (Contractual- matter). Council Adjourned Executive Session at 8:46 PM. Council returneci to the table at 8:48 PM, with no action taken. 21. CONSIDERA'T'ION AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION No action taken, 22. ADJOURNMENT • • City Council Minutes -December 13, 1999 -Page 8 There being no further business to come before Council, the Regular Meeting was duly adjourned at 8:49 PM. Respectfully submitted, Martha Gillett City Secretary Passed and approved on this 10th day of January 2000. Norman L. Malone, Mayor • EXHIBIT C • HISTORYAND INFORMATION • City of La Porte Previous Retiree Information Prior to 1993 Cit of La Porte 1 Eligibility Re uirement None Draw Annuit Yes Cost to Cit $2,720 Retiree Contribution $977/ r Dependent Contribution $598/yr Over/Under 65 Diff No Plan of Benefits Same Ciity of La Porte Current Retiree Information 1993 to December 31, 2000 Cit of La Porte 1 Cit of La Porte 2 Cit of La Porte 3 Eligibility Re uirement 10 yrs with CLP 15 yrs with CLP 20 yrs with CLP Draw Annuit Yes Yes Yes Cost to Cit 80°~ - $3,600/ r 90% - $4,050/ r 100°~ - $4 500/ r Retiree Contribution $900/ r $450/ r 0 Dependent Contribution $598/yr $598/yr $598/yr Over/Under 65 Diff No No No Plan of Benefits Same Same Same City of La Porte Adopted Retiree Information Effective January 01, 2001 Cit of La Porte 1 Cit of La Porte 2 Cit of La Porte 3 Eligibility Re uirement 10 yrs with CLP 15 yrs with CLP 20 yrs with CLP Draw Annuit Yes Yes Yes Cost to Cit 30% - $1 350/ r 40% - $1 800/ r 50% - $2 250/ r Retiree Contribution $3 150/ r $2,700/ r $2,250 Dependent Contribution $598/yr $598/yr $598/yr Over/Under 65 Diff No No No Plan of Benefits Same Same Same • • HISTORY OF RETIREE MEDICAL INSURANCE In 1993, Council asked staff to review the policy of covering retirees and their spouses on the Cii:y's medical plan. At that time the cost to the retiree was: Retiree Only $ 81.39 per month Retiree and Spouse $203.46 per month City Council made a policy decision that retirees' medical insurance should be paid by the City. 11: was pointed out that someone could work for another city for 23 years and comE3 to work for the City of La Porte for two years and "retire" with paid medical. Thi.~ was based on the 25 year any age option of the Texas Municipal RetiremE~nt System. The policy was revised, based on the number of years the employee worked for La Porte. Each year, an amount of money is budgeted for current employees and retirees, which is placed in 'the medical fund to pay claims. The amount for each employee has been static the past few years at $4,500. The adopted policy states that: Retirees with less than 10 years service with the City of La Porte are not eligible for coverage with the City, except for those provided by COBRA. Retirees with at least 10 years service with the City of La Porte, pay 20% of the annual amount, or $900. ($4,500 x 20% _ $900) Retirees with at feast 15 years service with the City of La Porte, pay 10°~ of the annu<~I amount, or $450. ($4,500 x 10% _ $450) Retirees with at feast 20 years service with the City of La Porte, pay nothing. In addition to any c,ption above, dependents are covered at a rate equal to the amount charged to~ current employees for dependent coverage. Child or children only $520 per year Spouse only $598 per year Family $676 per year In all options, retiree shall mean that an employee has met the requirements outlined in the Texas Municipal Retirement Act and is receiving a monthly annuity from TMRS. An employee who elects to take a lump sum distribution from TMRS, regardless of years of service with the City of La Porte, is not eligible for retiree medical coverage. That lump sum distribution is the entire amount the employee has conl:ributed and its accrued interest. None of the City's contribution is included in any lump sum. i • The City of La Porte recently adopted a TMRS option, allowing employees to retire, at any age, ~Nith 20 years service. This revised the formed adopted policy of 25 years at any .age. The medical coverage policy did not change. At a recent Council meeting, the City recognized an employee who retired at the end of June. He head worked for the City 16 years and had bought his military time (4 years), whir.,h allowed him to retire with 20 years in the TMRS system. His insurance will be covered per the policy above and he will pay the City $450 per year. His spouse is covered where she works and he declined coverage for her. Another example i;~ a current employee who is 42 years old with 22 years of service with the City. If he retired now, his monthly annuity would be $1,682. His insurance would be paid by the City due to him having more than 20 years with the City. The City has a total of 27 retirees, 25 of which have remained on the City's insurance. Fifteen of those have dependent coverage. • • EXH/BI T D DEMOGRAPHIC INFORMATION • DEMOGRAPHIC INFORMATION There are 361 full times positions in the 1999-2000 budget. There are currently: • 67 employe~:s with at least 5 years of service but less than 10. • 59 employees with at least 10 years of service but less than 15. • 45 employe~ss with at least 15 years of service but less than 20. • 22 employees with at least 20 years of service but less than 25. • 4 employee: with at least 25 years of service. At the time of the ado~~tion of the amendment to the medical plan: • Total number of retirees 29 • Deceased retirees 3 • Active retirees 27 (includes on surviving spouse) • Oldest retiree 83 • Youngest retiree 45 • Average retiree age 64 Since the adoption of the amendment, there have been 3 other employee who have retired with two others pending. EXHlBI T E SPECIFIC CONCERNS FROM RETIREES AND EMPLOYEES SPECIFIC CONCEcRNS FROM RETIREES/EMPLOYEES • The current plan allows an employee with 20 years of service with the City to retire with fully paid benefits for the retiree. The new plan, which goes into effect January 'I , 2001 states that the same employee, assuming his or her age plus years of service total less than 80, would pay $2,250 per year for the same insurance. • An employee with 15 years of service with the City, but enough time in the TMRS system to retire, would currently pay $450 per year which would change to $2,700 under the new system. • An employee with 10 years of service with the City, but enough time in the TMRS system to retire, would currently pay $900 per year which would change to $3,1;50 under the new plan. ACTUAL EXAMPLES • We have a retiree, who retired in 1994 with 15 years, 4 months service with the City of La Porte. He actually retired and did not seek employment elsewhere. He currently pays $450 per year for his coverage and $598 per year for his spouse's coverage, a total of $1,048. Under the new system, this amount would increase to $3,298 per year. He has stated that his fixed income would riot cover this increase. • We have a current employee who is planning to retire in May of this year with 11 years, 4 months service with the City. Under the current system he would pay $900 per year for his coverage and $598 per year for his spouse, a total of $1,498 per y~aar. Under the new system, this amount would increase to $3, 748 per year. EXHIBIT F OTHER QUESTIONS THAT HAVE ARISEN S/NCE ADOPTION ~ • OTHER QUESTIOIVS THAT HAVE ARISEN SINCE ADOPTION 1. Should the premiums be reduced when the retiree reaches age 65 and Medicare eligible? Staff Recommendation: The premium should be reduced since the City's coverage becomes secondary. Although the risk exposure is less (Medicare pays 80°r6), utitizati~m of prescription drugs is more prevalent in that age group and prescriptions are not covered by Medicare. Recommend that the premium be reduced by 50°r6, at age 65. 2. If the retiree dies, does the spouse continue to pay dependent rate or is it increased to what the retiree was paying? Staff Recommendation: The surviving spouse should pay the higher of the two. 3. If an employee retires and goes to work for another employer, would they be eligible for City insurance when they are no longer working for that employer? Staff Recommendation: Per our definition, an employee is not a retiree unless they actually retire I;do not go #o work elsewhere) and take a monthly annuity from TMRS. They :should not be eligible unless they meet the criteria. 4. If an employee retires but does not immediately take annuity, are they eligible for City insurance at separation or when they actually take annuity, if at all? Staff Recommendation: Same answer as number 3. 5. ff an employee retires with veteran benefits from the federal government, can they waive their coverage but elect to cover their spouse? Staff Recommend~artion: Someone who retires from the military continues health coverage for them and their spouse. However, the employee who asked this question did not retire from the service. While serving in the Army, he developed a medical condition that allows him continued coverage but it does not cover his spouse. Under these circumstances, staff would recommend that the spouse be allowed to remain on the City's medical plan provided that the employee meets the current criteria for retiree coverage and that the premium paid meet the conditions of questi+~n number 2 above. • n B NO BACKUP FOR ITEM B • MEETING HANDOUTS DEFINITIONS: retire: to nclu a one:'s work or professional career retired: having conclu~ied one's working or professional career retirement: withdraws[ from one's position or occupation or from active working life: the age at which one no retires vesting: conveying to ;~n employee the right to share in a pension fund / in the event of termination o f employment prior to normal retirement age BENEFITS THAT 1W~PROVIDE: We put aside $ 2.00 fair every $ 1.00 that our employees put into TMRS . (upto7%) We contnbute 7.65 % for Social Security and Medicare benefits for our employees. This is a contnbution of 21.65 % of each employees taxable wages throughout their employment with the City of La Porte. We provide a very good medical benefits package through a self fiuided program. We have shown that we are committed to providing excellent benefits for our employees. I firmly believe that this is the proper thing to do. I do not believe that 1t is the responsibility of the City of La Porte or more importantly the responsibility of the citizens / taxpavers of this city to bear the bw~den of insurance benefits for. employees that leave the City of La Porte to go to work somewhere else. That is not retirement! If we have any legitimate retiree(s) that might suffer a severe financial hardship then that shoal be addressed.