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HomeMy WebLinkAboutMIN AUG 25 2009 M I N U T E S - CITY OF BEAUMONT W.L. Pate, Jr., At-Large BECKY AMES, MAYOR Gethrel Wright, Mayor Pro Tern Dr. Alan B. Coleman, Ward I CITY COUNCIL MEETING Nancy Beaulieu, Ward II Audwin Samuel, Ward III August 25, 2009 Jamie Smith, Ward IV Tyrone E. Cooper, City Attorney Kyle Hayes, City Manager Tina Broussard, City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on August 25, 2009, at the Beaumont Civic Center, 701 Main Street, Beaumont, Texas, at 1 :30 p.m. to consider the following: OPENING Invocation Pledge of Allegiance Roll Call Presentations and Recognition Public Comment: Persons may speak on scheduled agenda items 2 - 3 and 5-13/Consent Agenda Consent Agenda Mayor Ames called the council meeting to order at 1:30 p.m. Pastor David Brett of the Christ Community Church gave the invocation. MayorAmes led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Ames, Mayor Pro Tern Wright, Councilmembers Coleman, Beaulieu, Pate, Samuel and Smith. Also present were Kyle Hayes, City Manager; Tyrone Cooper, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentations, Recognitions Julie Rogers "Gift of Life" Prostate Cancer Awareness Month, and Prostate Cancer Awareness - September, 2009 - Proclamation read by Mayor Ames; accepted by Kathy Chesser with Gift of Life Program Public Comment: Persons may speak on scheduled agenda items 2 - 3 and 5 -13/Consent Agenda. None CONSENT AGENDA Approval of minutes - August 11, 2009 and August 13, 2009 Confirmation of committee appointments - Resolution 09 - 241 Minutes-August 25,2009 Lauren Williams Mason will fill the unexpired term of Chris Reed on the Planning and Zoning Commission. The term would commence August 25, 2009 and expire December 10, 2010. (Councilmember Alan B. Coleman) A) Authorize the City Manager to execute a contract with Lamar University for the lease of space in the Downtown Public Library located at 801 Pearl Street - Resolution 09 - 242 B) Approve the waiver of penalties and interest on three tax accounts processed by the Jefferson County Tax Assessor-Collector's Office - Resolution 09 - 243 C) Approve Change Order No. 1 and the final payment for the 2008 Asphalt Street Rehabilitation Program - Resolution 09 - 244 D) Approve a contract for the purchase of asphalts,oils and emulsions for use by the Streets and Drainage Division - Resolution 09 - 245 E) Adopt an alternative retirement plan for part-time, seasonal and temporary employees and appoint a Plan Administrator for the Public Agency Retirement System-Resolution 09- 246 F) Approve a contract for concession management services - Resolution 09 - 247 G) Authorize the acquisition of property in the N.A. McMillan Addition for the Downtown Park and Event Center - Resolution 09 - 248 H) Authorize the settlement of the claim of Edward E. Zachary - Resolution 09 - 249 Mayor Pro Tern Wright made a motion to approve the Consent Agenda. Councilmember Pate seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED GENERAL BUSINESS 1. Consider a request for an amended specific use permit to allow the expansion of a medical office in an RM-H (Residential Multiple Family Dwelling-Highest Density) District at 4229 Eastex Freeway. Administration recommended approval of the amended specific use permit to allow the expansion of a medical office in an RM-H (Residential Multiple Dwelling-Highest Density) District at 4229 Eastex Freeway. Page 2 of 19 Minutes-August 25,2009 Dr. John Webb, representing Beaumont Medical Clinic, has applied for an amended specific use permit. In August, 1986, City Council approved a specific use permit to allow a parking lot on the subject property. The parking lot was to serve the Medi-Quick Medical Care Centers medical office that was located at 5220 Eastex Freeway. Beaumont Medical Clinic,the current tenant, has moved a 2,016 sq.ft. portable commercial building onto a portion of the rear parking lot to augment the existing medical practice. Dr. Webb states that the building will be open from 8:30 a.m. to 6:00 p.m. A 7' tall wood screening fence exists along the north property line and a portion of the east property line. However, windstorm requirements require that the building be placed on a permanent foundation. With the placement of the building, the parking lot is being re-arranged to accommodate 39 parking spaces. Twenty-two parking spaces are required forthe existing building and the new addition. At a Joint Public Hearing held August 17, 2009, the Planning Commission recommended approval 6:0 of an amended specific use permit subject to the following condition: • The building shall meet all building code requirements and shall be securely fixed to a permanent foundation. Councilmember Pate moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC USE PERMIT TO BEAUMONT MEDICAL CLINIC TO ALLOW THE EXPANSION OF A MEDICAL OFFICE IN AN RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY) DISTRICT AT 4229 EASTEX FREEWAY. Councilmember Beaulieu seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SMITH AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 09 - 043 2. Consider approving the purchase of a fire truck. Administration recommended approval of the purchase from Martin Apparatus, Inc., of Houston in the amount of $832,497. Pricing for this fire truck is obtained through the Houston-Galveston Area Council. H-GAC is a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. H-GAC complies with the State of Texas procurement statutes. The purchase price of $832,497 includes the H-GAC administrative fee of $2,000. Page 3 of 19 Minutes-August 25,2009 The fire truck specified is a combination pumper and ladder truck. The truck is equipped with a one hundred five(105)foot ladder with a waterway. The ladder meets ISO standards for the area where it will be stationed. The truck is also equipped with a one thousand five hundred (1,500)gallon-per-minute pump, a foam injection system and a five hundred(500)gallon water tank. The truck will be placed into service at Fire Station No. 5., located at 6375 Walden Rd., and will replace unit 7056 which was stolen and wrecked. Delivery time for the new truck will be up to four (4) months. The purchase will be financed through a lease purchase agreement upon delivery. Councilmember Coleman made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED TO APPROVE THE PURCHASE OF A PIERCE LADDER TRUCK FROM MARTIN APPARATUS, INC., OF HOUSTON, TEXAS, IN THE AMOUNT OF $832,497 THROUGH THE HOUSTON-GALVESTON AREA COUNCIL(H-GAC)COOPERATIVE PURCHASING PROGRAM FOR USE BY THE FIRE DEPARTMENT. Councilmember Beaulieu seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 250 3. Consider amending Article 11 Sec. 26-23 of the Code of Ordinances by adding Tyrrell Park Road to the Schedule of Streets to increase the speed limit to a 40 miles per hour speed limit between the Hillebrandt Bayou Bridge and Fannett Road (SH 124). Administration recommended approval of an ordinance amending Article II Sec. 26-23. Maximum and minimum speeds established in certain zones that would add Tyrrell Park to the Schedule of Streets with a 40 miles per hour speed limit between Hillebrant Bayou and Fannett Road (SH 124). A speed limit study was requested to be performed on Tyrrell Park Road to determine if 30 miles per hour is an appropriate speed limit. State law dictates that speed limits be set at a safe and reasonable speed quantified by the prima facie speed limit or in accordance with a traffic engineering study. The Transportation Division conducted a traffic engineering study on Tyrrell Park in July, 2009. The study showed Tyrrell Park Road to have a good safety record and an 851h percentile speeds ranging from 46.5 to 55.5 miles per hour. Based on the study results, adjacent land use, and engineering judgement the Transportation Division concludes that 40 miles per hour is a safe and prudent speed limit. A follow up study will be conducted and reported to the Beaumont Police Department for on-going speed limit enforcement. No budgetary impact to the City of Beaumont. Page 4 of 19 Minutes-August 25,2009 Councilmember Beaulieu made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 23-23 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT BY ADDING R.F.D. ROAD AND TYRRELL PARK ROAD TO THE SCHEDULE OF STREETS, PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Smith seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Ordinance 09 - 044 4. Consider amending Article II Sec. 26-23 of the Code of Ordinances by adding R.F.D. Road to the Schedule of Streets to increase the speed limit to a 40 miles per hour speed limit between SH 105 and US 69/96 (Eastex Freeway). - Deferred by Council 5. Consider amending Article 11 Section 26-24 of the Code of Ordinances to update the locations and limits of school speed zones. Administration recommended Council approval of an ordinance amending Article II Sec. 26- 24. Speed limits decreased in school zones of the Code of Ordinances that would update the locations and limits of school speed zones. Sec. 26-24. Speed limits decreased in school zones. It is hereby determined upon the basis of an engineering and traffic investigation, that the speed permitted by state law upon those streets, or portions of streets described in the following schedule is greater than is reasonable or safe under the conditions found to exist upon such streets and it is hereby declared that the prima facie speed limit upon those streets or portions shall be decreased and the limits shall be effective at the times when signs are erected giving notice thereof. Mayor Pro Tern Wright made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 26, SECTION 26-24 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT BY MODIFYING AN EXISTING SCHOOL ZONE; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Pate seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE Page 5 of 19 Minutes-August 25,2009 MOTION PASSED Ordinance 09 - 045 6. Consider adopting an ordinance approving the institution of a Cost of Service Adjustment rate schedule by Centerpoint Energy Entex which provides for an annual rate cost of service and rate base adjustment based upon the Company's annual cost data. Administration recommended approval of an ordinance approving the institution of a cost of service adjustment rate schedule by Centerpoint Energy Entex which provides for an annual cost of service and rate base adjustment based upon the annual cost data of the Company. During the process of negotiating the Centerpoint gas franchise, Centerpoint and City representatives negotiated the proposed cost of service adjustment for the municipal regulation of the rates of Centerpoint within the City of Beaumont. The proposal before the City would allow the annual rate setting process to occur at the City level and caps the annual change in rates at 5% of the previous year's customer charge. Under the proposed rate making formula,the Company's rates would be adjusted annually to accountfor any increase or decrease in the Utility's cost of service. Calculation of the rate adjustment will be based upon calendar year operating expenses, return on investment, and Texas franchise tax. The calendar year operating expenses shall be those reported to the Railroad Commission of Texas in the annual report of the Company. Centerpoint would be required to file with the City each year and adjust it rates up or down depending on the last year's cost of service. The annual filing by Centerpoint would not become effective unless approved by the City. The City can approve in part, in total or deny in total any rate change request which retains to the City all regulatory oversight. Councilmember Samuel made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE APPROVING THE INSTITUTION OF A COST OF SERVICE ADJUSTMENT RATE SCHEDULE BY CENTERPOINT ENERGY ENTEX;APPROVING THE THREE-YEAR AMORTIZATION OF CENTERPOINT'S 2009 INCREASE IN PENSIONS AND BENEFITS EXPENSE, PROVIDING AN EFFECTIVE DATE; REPEALING ANY ORDINANCES INCONSISTENT WITH THIS ORDINANCE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY. Councilmember Pate seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Ordinance 09 - 046 7. Consider adopting an ordinance granting a public utility franchise to Centerpoint Energy Texas Gas Operations to operate a gas utility within the City of Beaumont. Administration recommended approval of an ordinance granting a public utility franchise to Centerpoint Energy Texas Gas Operations to operate a gas utility within the City of Beaumont. Page 6 of 19 Minutes-August 25,2009 The Charter of the City of Beaumont gives to the City Council authority to grant and renew franchises of all public utilities operating within the City of Beaumont. Ordinance No. 88-64 granted to Entex a 20-year franchise to operate a gas utility in the City of Beaumont. That franchise expired in June of 2008. Since that time City representatives have been negotiating with Centerpoint Energy Texas Gas Operations, successor in interest to Entex,for the renewal of a franchise to continue its operations in Beaumont. The proposed franchise provides for a term of operations for 25 years, providing for a payment by the Company to the City based upon four percent (4%) of the gross receipts from the sale of gas within the city limits and seven cents($.07) per MCF for the transportation of gas to transportation customers within the corporate limits of the city for consumption within the city. The fees will be calculated for the calendar quarters ending March 31,June 30, September 30 and December 31 and shall be payable on or before the 15th day of May, August, November and February following the quarter for which payment is due. Ordinances granting franchises requires three (3) readings at separate regular meetings of the City Council and shall not be considered finally passed until the third reading which shall not be less than thirty(30)days from the first reading. The ordinance will not take effect until sixty (60) days after its adoption on the third and final reading. For the year 2008, the City of Beaumont received $795,900 in franchise fees from Centerpoint Energy. Year to date, the City has received $691,468 in franchise fees. Councilmember Beaulieu made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS, ITS SUCCESSORS AND ASSIGNS, THE RIGHTS, PRIVILEGE AND FRANCHISE FOR A PERIOD OF TWENTY-FIVE (25) YEARS TO CONSTRUCT, LAY, MAINTAIN, OPERATE, EXTEND, REMOVE, REPLACE AND REPAIR A SYSTEM OF PIPELINES, GAS MAINS, LATERALS AND ATTACHMENTS AND ALL DESIRABLE INSTRUMENTALITIES IN,UNDER,OVER,ACROSS AND ALONG ANY AND ALL STREETS,AVENUES,PARKWAYS,SQUARES,ALLEYS AND ALL OTHER PUBLIC PLACES IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS, FOR THE PURPOSE OF TRANSPORTING, DISTRIBUTING,SUPPLYING AND SELLING GAS(NATURAL AND/OR ARTIFICIAL AND/OR MIXED)FOR HEATING, LIGHTING, POWER,AND FOR ALL OTHER PURPOSES FOR WHICH GAS MAY BE USED,TO THE MUNICIPALITY OF SAID CITY OF BEAUMONT, TEXAS, AND ITS INHABITANTS AND OTHERS; PROVIDING CONDITIONS CONTROLLING THE USE OF PUBLIC THOROUGHFARES AND EXTENSIONS THEREIN; ESTABLISHING STANDARDS OF SERVICES; PROVIDING FOR PAYMENT OF FOUR PERCENT (4%) OF THE GROSS RECEIPTS FROM THE SALE OF GAS WITHIN THE CITY OF BEAUMONT AND SEVEN CENTS (7¢) PER MCF FOR THE TRANSPORTATION OF GAS TO TRANSPORTATION CUSTOMERS; PROVIDING FOR ACCEPTANCE; PROVIDING A SEVERABILITY CLAUSE; MAKING MISCELLANEOUS PROVISIONS; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. Mayor Pro Tern Wright seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE Page 7 of 19 Minutes-August 25,2009 MOTION PASSED Ordinance 09 - 047 8. Consider adopting the 2009 Drought Contingency Plan and renewing the City's commitment to Chapter 28, Article III, Section 28-59 of the Code of Ordinances. Administration recommended adopting the 2009 Water Conservation and Drought Contingency Plan and renewing the City's commitment to Chapter 28,Article 111, Section 28-59 of the Code of Ordinances. The Texas Commission on Environmental Quality requires a wholesale public water supplier that holds a water right in the amount of 1,000 acre-feet or more for municipal use, and provides water service to 3,300 or more connections to have an Ordinance for a Drought Contingency Plan that should be renewed every 5 years. The plan must meet all of the minimum requirements as set forth in the TCEQ rules, Title 30 Texas Administrative Code Chapter 288. The Plan establishes water conservation goals and means to achieve them; establishes criteria forthe initiation and termination of drought response stages; establishes restrictions on certain water uses; establishes penalties for the violation of and provisions for enforcement of these restrictions, and establishes procedures for granting variances. The adoption of the 2009 Water Conservation and Drought Contingency Plan and renewal of the City's commitment to Chapter 28, Article I11, Section 28-59 of the Code of Ordinances is recommended by the City Manager and the Water Utilities Director. Councllmember Beaulieu made a motion to APPROVE A RESOLUTION THAT THE 2009 WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN IS HEREBY ADOPTED AND THAT THE CITY OF BEAUMONT HEREBY RENEWS ITS COMMITMENT TO CHAPTER 28, ARTICLE III, SECTION 28-59, "DROUGHT CONTINGENCY". Councilmember Coleman seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 251 9. Consider authorizing the City Manager to enter into contracts for the purchase of homes and the provision of relocation assistance for their owners of houses flooded during Hurricane Ike in conjunction with the approved Hazard Mitigation Grant Program's Acquisition and Demolition Program Administration recommended approval. Page 8 of 19 Minutes-August 25,2009 As a result of Hurricane Ike, some homes located within the floodplain, east of Pine Street, received flood damage. Because the City's floodplain land use ordinance requires that homes in the floodplain that are substantially damaged be elevated prior to repair, many residents have found elevating their homes and repairing them difficult if not impossible. In order to provide relief to the residents and avoid future, repetitive flooding of these homes, the City applied for Hazard Mitigation funds to acquire and demolish these homes. The City was successfully awarded this grant for acquisition and removal of sixteen (16) homes. To date, we have inspected and secured appraisals for each of the sixteen (16) homes and made purchase and relocation offers. Those addresses listed below represent offers accepted by the owners, up to this point. Please note that the purchase offer amounts are based on pre-storm appraisal values, less any proceeds from insurance and/or other disaster relief assistance. The amount of relocation assistance is based on the grant formula and differs, depending upon the resident's desire to secure rental housing or purchase a new home. Address Owners Name Purchase Amount Relocation Amount 410 Manning Dorothy Green $26,845.71 3105 Taliaferro Willis-Joubert $22,527.56 3150 Taliaferro Timmie Bell $22,738.60 385 E Delaware Marshall Terry $10,000.00 445 Manning Horace&Lilly Dean $22,500.00 Total: $82,111.87 $22,500.00 FEMA Grant Amount (at 75%) $61,583.90 $16,875.00 Local CDBG Match Amount (at 25%) $20,527.97 $5,625.00 This grant provides seventy-five percent(75%)of the costs,with a required twenty-five percent (25%) local match, which will be paid through a reallocation of 2008 Program Year CDBG demolition funds. It is expected that additional purchase contracts will be forthcoming as offers are accepted by the homeowners. Once these properties are acquired, the City will demolish these homes and deed restrict the properties, to prevent future flooding losses. These costs will also be covered by the grant. Funds this local match are available through the 2Q08 Program Year CDBG Budget. Councllmember Samuel made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE CONTRACTS WITH THE OWNERS OF HOMES FLOODED DURING HURRICANE IKE FOR THE PURCHASE OF THOSE HOMES AND THE PROVISION OF RELOCATION ASSISTANCE THROUGH THE HAZARD MITIGATION GRANT PROGRAM'S ACQUISITION AND DEMOLITION PROGRAM. Mayor Pro Tern Wright seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE Page 9 of 19 Minutes-August 25,2009 MOTION PASSED Resolution 09 - 252 10. Consider approving a resolution authorizing the City Manager to execute water and/or wastewater service agreements with City of Beaumont wholesale customers. Administration recommended approval of executing water and/or wastewater service agreements with Arkema, Inc., Equistar Chemicals, LP, Exxon Mobil Polyethylene Plant, Exxon Mobil Refinery, Exxon Mobil BCSP/OA, Lucite, Northwest Forest MUD, Peak Sulfur, Inc., Martin Resources, BASF Corporation, Republic Services,Texas Department of Criminal Justice, Cardinal Meadows Improvement District, Federal Bureau of Prisons, Gerdau Ameristeal of Beaumont, GE Betz, West Jefferson County MUD, and Meeker MUD. The Texas Commission on Environmental Quality, Chapter 290, Sub-Chapter D, Rules and Regulations for Public Water Systems, require municipalities to execute service agreements with wholesalers as well as non-transient non communities which are not a community water system by regularly serve at least 25 of the same persons at least six months out of the year. Once service agreements are executed with such entities, they will be required by state law to monitor and report the water quality inside of their property on a monthly basis. This procedure will prevent any possible contamination of the City of Beaumont water system and protect public health. The Water Utilities Department provides water and/or sanitary sewer services to 16 industrial customers and 4,800 commercial customers. The industrial and commercial facilities will be evaluated, and agreements will be executed for those who will be identified as wholesalers and non-transient non-communities. Councilmember Samuel made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO EXECUTE WATER AND/OR WASTEWATER SERVICE AGREEMENTS WITH ARKEMA, INC., EQUISTAR CHEMICALS, LP, EXXON MOBIL POLYETHYLENE PLANT, EXXON MOBIL REFINERY, EXXON MOBIL BCSP/OA, LUCITE, NORTHWEST FOREST MUD, PEAK SULFUR, INC., MARTIN RESOURCES, BASF CORPORATION, REPUBLIC SERVICES, TEXAS DEPARTMENT OF CRIMINAL JUSTICE, CARDINAL MEADOWS IMPROVEMENT DISTRICT, FEDERAL BUREAU OF PRISONS,GERDAU AMERISTEAL OF BEAUMONT,GE BETZ,WEST JEFFERSON COUNTY MUD, AND MEEKER MUD. Mayor Pro Tem Wright seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 253 Page 10 of 19 Minutes-August 25,2009 11. Consider approving a one year contract with Blue Cross Blue Shield of Texas for employee medical and dental insurance. Administration recommended that Council award to Blue Cross Blue Shield of Texas (BCBSTX)a one year contract effective January 1 , 2010 for third party administration of the City's fully insured Health Maintenance Organization(HMO Blue Texas), self funded Preferred Provider Organization (PPO) medical plan and a self funded dental plan. The City offers its full time employees medical and dental benefits. The medical and dental benefits consist of a self funded PPO plan, a fully insured HMO plan, and a self funded dental plan. There are 997 participants enrolled in the PPO plan, consisting of 861 active employees, 132 retirees, and 4 COBRA participants. There are 457 participants enrolled in the HMO plan, consisting of 403 active employees, 52 retirees, and 2 COBRA participants. In May 2009, City staff began analyzing the City's health care costs. In June 2009, staff also began working with the City's health benefit consultant, Holmes Murphy & Associates to determine if the City should request bid proposals for the City's HMO, PPO, and dental plans or remain with the current administrator, BCBSTX for 2010. The City has the option to negotiate new rates with BCBSTX without seeking bids. The prior year bid states the City has the option to request renewal rates from the current administrator, BCBSTX. The current agreement with BCBSTX started January 1, 2006 and can be renewed for up to five years. Initial renewal rates projected by BCBSTX for the fully insured HMO plan increased 10.4%. Final negotiations by Holmes Murphy&Associates resulted in the HMO plan renewal being held to a 4.5% increase. The HMO increase was a function of increasing utilization due to aging members and medical inflation. Staff recommends implementation of the following rates to be paid by the City for HMO coverage, PPO and Dental administration effective January 1, 2010: 2009 Monthly HMO Rates 2010 Monthly HMO Rates Employee Only $336.92 $352.08 Employee + 1 Dependent $811.94 $848.48 [Employee + Family $1155.56 j $1,207.56 2009 Monthly PPO Stop Loss 2010 Monthly PPO Stop Loss and Administration Rates and Administration Rates Employee Only $60.69 $60.69 Employee + 1 Dependent $86.47 $86.47 Employee + Family $86.47 $86.47 Page 11 of 19 Minutes-August 25,2009 2009 Monthly Dental 2010 Monthly Dental Administration Rates Administration Rates Employee Only $5.66 $5.66 Employee + 1 Dependent $5.66 $5.66 Employee + Family $5.66 $5.66 Funds are available for this expenditure in the Employee Benefits Fund. Councilmember Beaulieu made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO ENTER INTO A ONE-YEAR CONTRACT WITH BLUE CROSS BLUE SHIELD OF TEXAS (BCBSTX) FOR THIRD PARTY ADMINISTRATION OF THE CITY'S FULLY INSURED HEALTH MAINTENANCE ORGANIZATION(HMO BLUE TEXAS , SELF-FUNDED PREFERRED PROVIDER ORGANIZATION (PPO) MEDICAL PLAN AND A SELF-FUNDED DENTAL PLAN EFFECTIVE JANUARY 1, 2010. Councilmember Smith seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 254 12. Consider authorizing the City Managerto implement contribution rate changes for retirees in the medical plans. Administration recommended that Council approve medical contribution rate changes for retirees including their dependents, effective January 1, 2010. Retirees and their dependents are allowed to elect continuation of medical coverage as provided by state statue. The retiree/dependent may continue coverage until the retiree/dependent is covered by Medicare/Medicaid but not beyond age 65. Currently,there are 184 retirees on the City's medical plans. The retiree contribution rate for Police and Fire retirees is based on a provision in the Police and Fire contract agreements which states, "Any employee who retired on or after February 1, 1992 may be subject to an annual increase in contribution. The increase will be effected in accordance with the labor agreement. The single rate will be established at 69%; single rate+ 1 at 58%; and the family rate at 54%of the COBRA rate on January 15t annually." This same formula is utilized when calculating the contribution rate for civilian retirees. Page 12 of 19 Minutes-August 25.2009 The City requested Holmes Murphy&Associates, its benefits consultant,to analyze the City's health costs and to determine the 2010 medical COBRA rates. Based on Holmes Murphy& Associates analysis, it is recommended that retiree medical rates effective January 1, 2010 be as follows: Plan 2010 2010 2010 2010 2009 and Medical Prescription COBRA Retiree Retiree Category Rate Drug Rate Rate* Rate Rate PPO (EO) $308.79 $63.08 $371.87 $256.59 $256.59 (E1) $764.29 $156.16 $920.45 $533.86 $533.86 (E2) $1003.82 $205.11 $1208.93 $652.82 $652.82 HMO (EO) $352.08 $62.94 $415.02 $286.36 $275.90 (E1) $848.48 $151.70 $1000.18 $580.10 $558.91 (E2) $1207.56 $215.91 $1423.47 $768.67 $740.59 *Rate does not include COBRA administration fee. Appropriation of funds is available in the Employee Benefits Fund. Councllmember Pate made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO IMPLEMENT MEDICAL CONTRIBUTION RATES FOR RETIREES, INCLUDING THEIR DEPENDENTS, EFFECTIVE JANUARY 1, 2010. Councilmember Coleman seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, PATE, SAMUEL AND SMITH NAYS: NONE MOTION PASSED Resolution 09 - 255 13. Consider approving a contract with CVS Caremark for Pharmacy Benefit Manager services for City employees. Administration recommended that Council authorize a five(5)year agreement with the current vendor CVS Caremark,with an option to terminate,with or without cause, after the first year. As prescription drug costs continue to rise, the City faces a challenge in providing the same level of drug benefits as in previous years. The decision to recommend the agreement with CVS Caremark was based on their projected annual plan costs and continuity of services provided to City employees. For FY 2009, City drug costs are estimated to total $2.5 million which is approximately an eight percent (8%) increase over the prior year. This increase is Page 13 of 19 Minutes-August 25,2009 representative of industry trends which predicted an 8-10% increase in pharmaceutical costs for 2009. In May, 2009, City staff began analyzing the City's prescription drug costs and requested bid proposals from pharmacy benefit management companies. Nine (9) bid proposals were received and City staff along with the City's pharmacy benefit consultants, Action RX and Holmes Murphy interviewed the top three (3) companies. After evaluating the bid proposals, City staff,Action RX, and Holmes Murphy concluded that CVS Caremark offered the most robust and cost effective program. Besides placing first in the financial analysis, CVS Caremark offers high touch case management in its exclusive specialty pharmacy unit and placed an emphasis on adherence programs for five major disease states. Specialty Pharmacy is where some of the most expensive medications are dispensed to treat some of the sickest members. For example, medications to treat Multiple Sclerosis, Rheumatoid Arthritis, and Cancerwhich cost an average of$1,500 to$4,000 per month are dispensed through Caremark's Specialty Pharmacy division. Their national network of 61 speciality pharmacies provides continuous services 24/7/365; and supports emergency and/or disaster events. CVS Caremark also provides a case management team to each chronically ill member that includes a Registered Nurse who specializes in that disease state, a reimbursement specialist, and pharmacy tech support. For the rest of the utilizers who use pharmacy services, CVS Caremark has 12 certified call centers that provide 24 hour assistance and members also have the option to speak with a pharmacist. The other bidders could not offer this level or depth of service. While CVS Caremark is a national company, CVS contributes heavily to the communities they serve. CVS employs 102 full-time and 40 part-time employees in Beaumont. The pricing structure proposed by CVS Caremark projects a cost savings of approximately 16.97%from the current pricing structure. This is based upon improved pricing on discounts, fees, and rebates**. Bid tabulations for the top three (3) finalists are as follows.. VENDOR PROJECTED ANNUAL PROJECTED PLAN COST** MEMBER COST CVS Caremark (incumbent) $2,057,915 $881 ,964 Northbrook, Illinois Medco Health Solutions, Inc. $2,104,866 $902,085 Franklin Lakes, New Jersey Script Care $2,072,027 $888,012 Beaumont, Texas **An assumption based on actual plan year claims data. The current 30% co-pay plan design for City employees will remain the same. Funds are available in the Employee Benefits Fund. Page 14 of 19 Minutes-August 25,2009 Councilmember Beaulieu made a motion to APPROVE A RESOLUTION THAT THE CITY COUNCIL HEREBY APPROVES A FIVE (5)-YEAR AGREEMENT, WITH THE OPTION TO TERMINATE, WITH OR WITHOUT CAUSE, AFTER THE FIRST YEAR, WITH CVS CAREMARK AS THE CITY'S PHARMACY BENEFIT MANAGER (PBM). Mayor Pro Tern Wright seconded the motion. AYES: MAYOR AMES, MAYOR PRO TEM WRIGHT, COUNCILMEMBERS COLEMAN, BEAULIEU, SAMUEL AND SMITH NAYS: COUNCILMEMBER PATE MOTION PASSED Resolution 09 - 256 14. PUBLIC HEARING: Dangerous Structures - Deferred for 30 Days Consider approval of an ordinance declaring certain structures to be dangerous structures and ordering their removal within 10 days or authorizing the property owner to enroll the dangerous structure in a work program. Mayor Ames read the announcement regarding Executive Session being held at the conclusion of the General Business portion of the meeting. WORKSESSION Review and discuss the proposed FY 2010 Budget Kyle Hayes, City Manager, discussed the proposed FY 2010 Budget. The objectives of the budget were discussed first,which would be to maintain the excellent financial condition of the City, have well trained and equipped public safety departments, continue to develop a state of the art water and sewer system, invest more resources in City streets and public facilities, have an attractive and well- maintained park system, make Downtown more attractive as the main cultural, business and government sector of the City, and provide for a competitive wage and benefits package for all City employees. The General Fund Revenues were discussed in regards to sales and use taxes, property taxes, industrial payments, gross receipts, and utility fund in lieu. Other topics that the manager discussed were the general fund expenditures, general fund, debt service fund, water utilities fund revenues, water utilities fund expenditures, solid waste fund revenues, and the solid waste fund expenditures. Review and discuss the proposed FY 2010 Capital Program Tom Warner, Public Works Director, discussed the proposed FY 2010 Capital Program. The public works projects and design or construction phases were discussed street by street, along with an estimated cost as well as the completion percentage of the design and project. The general improvement projects design or construction phase was discussed in detail with cost estimates, and those projects that had not been started. Page 15 of 19 Minutes-August 25,2009 Dr. Hani Tohme, Water Utilities Director, discussed the water and sewer projects design or construction phase that would be done out of the Capital Program,with details on each project along with the estimated cost. Review and discuss the proposed 2009 (FY 2010) Tax Rate Kyle Hayes, City Manager, discussed the proposed 2009 (FY 2010)Tax Rate. The property value trends were discussed pertaining to the average homestead value for FY 2008 which was$115,184 and FY 2009 would be $115,612; the tax rate 0.64 would remain as it was in FY 2008. The tax liability in FY 2008 was $737.18 and in FY 2009 the tax liability would be $739.92. Property tax revenue is expected to increase $1 ,396,000 over FY 2009. New property added to the tax roll this year accounts for$1,339,600 of the increase. Dedication of property tax rates were discussed as well as the challenges in FY 2010 and FY 2011. The challenges would be sales taxes and industrial values that will be trending downward. Little growth will be seen in the FY 2009 appraised values and the impact of a slowing economy in the community will also be a challenge. The City Manager also discussed proactive measures to prepare for the FY 2010 budget. Those measures include reducing the general fund transfers, use prior year excess funds and eliminate several vacant positions. Proactive measures in anticipation of FY 2011, would be to continue to evaluate cost saving measures that can be instituted without impacting services to the citizens, continue to evaluate vacancies as they arise for possible elimination and design a voluntary separation program and offer it prior to December 31, 2009. PUBLIC HEARING Receive comments on the proposed FY 2010 Budget and proposed FY 2010 Capital Program Public Hearing Open: 3:43 p.m. None Public Hearing Close: 3:44 p.m. PUBLIC HEARING Receive comments on the proposed 2009 (FY 2010) Tax Rate Public Hearing Open: 3:44 p.m. None Public Hearing Close: 3:45 p.m. Page 16 of 19 Minutes-August 25,2009 COUNCILMEMBER COMMENTS COUNCILMEMBER COLEMAN- CONGRATULATED DEAN CONWELL, EXECUTIVE DIRECTOR OF THE CONVENTION AND VISITORS BUREAU, WHO WAS APPOINTED AS THE CHAIRMAN OF THE TEXAS ASSOCIATION OF CONVENTION AND VISITORS BUREAU FOR A ONE-YEAR TERM,ALSO TO THE NEW APPOINTEE TO THE PLANNING AND ZONING COMMISSION, LAUREN WILLIAMS MASON WHO WILL REPLACE CHRIS REED WHO IS NOW IN SEMINARY SCHOOL IN DALLAS, TX, ASKED THAT COUNCIL PUT THE WORKSESSION ON THE WEB SITE SO THAT THE CITIZENS ARE ABLE TO VIEW IT, WISHED SAFE TRAVEL TO ALL COLLEGE STUDENTS TRAVELING BACK TO COLLEGE, ESPECIALLY HIS SON,JOHN,WHO IS RETURNING TO TEXAS A&M FOR ANOTHER SEMESTER COUNCILMEMBER BEAULIEU - APPRECIATES STAFF WORK ON THE BUDGET AND THE INFORMATION THAT WAS EXPLAINED IN THE WORKSESSION, PROUD OF THE WAY DOWNTOWN AND THE CITY AS A WHOLE IS LOOKING, THANKED THE "GIFT OF LIFE" STAFF FOR ATTENDING THE MEETING AND RECEIVING THE PROCLAMATION, WISHED COUNCILMEMBER JAMIE SMITH A BELATED HAPPY BIRTHDAY MAYOR PRO TEM WRIGHT - APPRECIATES ALL OF THE CITIZENS OF BEAUMONT THAT ARE USING THEIR RIGHT AND LEFT TURN SIGNALS WHEN APPROACHING AN INTERSECTION, AS WELL AS THE CITY WORKERS THAT ARE DOING THE SAME THING, ASKED THAT EVERYONE LOOK OUT FOR THE CHILDREN THAT ARE GOING BACK TO SCHOOL, THANKED DR. HANI TOHME FOR THE INFORMATION ON THE GREASE TRAPS AND DRAINS, ALSO THANKED LAURA CLARK, TOM WARNER, HANI TOHME, CAROL WILSON AND ELIZABETH SHAKOUR FOR ALL OF THEIR HARD WORK ON THE BUDGET AND WORKSESSION, ANNOUNCED THAT THE LANE FAMILY REUNION WILL BE HAVING A HEALTH FAIR ON SATURDAY,AUGUST 29,2009, WHICH WILL BE OPEN TO THE PUBLIC AT THE BFW HALL ON CARDINAL DRIVE,THANKED HARVEST FOR LOST SOULS CHURCH FOR ALL THAT THEY DO, APOLOGIZED TO THE CHARLTON POLLARD NEIGHBORHOOD ASSOCIATION FOR NOT BEING IN ATTENDANCE FOR THEIR EVENT AS WELL AS CASH CIRCLE, DUE TO HER BEING IN THE HOSPITAL, ALSO THANKED JIM THOMPSON AND HIS STAFF FOR THE BEAUTIFICATION OF THE PARKS Page 17 of 19 Minutes-August 25.2009 COUNCILMEMBER PATE - COMMENTED ON THE TAX RATE REMAINING THE SAME AND NOT INCREASING,COMPLIMENTED THE CITY MANAGER AND HIS STAFF FOR ALL THE HARD WORK THEY PUT INTO EVERYTHING THEY DO FOR THE CITIZENS AND THE CITY, WISHED COUNCILMEMBER SMITH A HAPPY BELATED BIRTHDAY, CONGRATULATED DEAN CONWELL, DIRECTOR OF CVB, ON BEING APPOINTED CHAIRMAN OF THE TEXAS ASSOCIATION OF CONVENTION AND VISITORS BUREAU, STATED LAMAR UNIVERSITY WILL HAVE THE HIGHEST ENROLLMENT THAT THEY HAVE EVER HAD,ALSO ONE OF THE HIGHEST ALUMNUS OF LAMAR UNIVERSITY, LARRY BEAULIEU WILL BE RECOGNIZED AS AN OUTSTANDING ALUMNI IN SEPTEMBER, ALONG WITH TWO OTHER OUTSTANDING ALUMNI COUNCILMEMBER SAMUEL - CONGRATULATED THE CITY MANAGER FOR HAVING EXCELLENT STAFF, THANKED JIM THOMPSON AND EVERYONE AT PARKS AND RECREATION FOR A GREAT JOB OVER THE LAST THREE WEEKS WITH THE BACK TO SCHOOL DRIVE, NEIGHBORS IN THE PARK AND CONCERTS IN THE PARK,COMMENTED ON COUNCILMEMBER SMITH BEING ONE OF THE HARDEST WORKING COUNCILMEMBERS, ALSO VISITED WITH FELLOWSHIP BAPTIST CHURCH FOR THEIR RE-DEDICATION AND PRE-DEDICATION AND THEIR WEEKEND OF SERVICES,THE PASTOR AND MEMBERS HAVE BEEN OUT OF THEIR CHURCH FOR 1,252 DAYS DUE TO DAMAGE FROM HURRICANE RITA, THEY ARE FINALLY BACK IN THEIR FACILITYAND ARE VERY EXCITED,COMMENTED ON THE HIGH ENROLLMENT FOR LAMAR UNIVERSITY, THANKED JEANNE ARDOIN AND THE CHARLTON POLLARD NEIGHBORHOOD ASSOCIATION FOR INVITING HIM TO THEIR BLOCK PARTY, HAD A GREAT TIME COUNCILMEMBER SMITH - THANKED EVERYONE FOR THE BIRTHDAY WISHES, ANNOUNCED THAT SOUTH PARK NEIGHBORHOOD ASSOCIATION WOULD BE MEETING ON THURSDAY,AUGUST 27,2009 AT 6:30 P.M.AT SOUTH PARK BAPTIST CHURCH, THERE WILL BE A HEALTH CARE REFORM TOWN HALL MEETING AUGUST 25, 2009, AT 5:30 P.M. AT THE MONTAGNE CENTER, ALSO, MCCABE ROBERTS AVENUE UNITED METHODIST CHURCH WILL BE HAVING FAMILY AND FRIENDS DAY ON SUNDAY, AUGUST 30, 2009, THANKED THE PARKS AND RECREATION STAFF FOR THE GREAT JOB THEY DO, COMMENTED ON THE RE-DEDICATION AND PRE- DEDICATION SERVICE AT FELLOWSHIP BAPTIST CHURCH, Page 18 of 19 Minutes-August 25,2009 ENJOYED THE CHARLTON POLLARD NEIGHBORHOOD BLOCK PARTY AS WELL AS THE CASH CIRCLE BLOCK PARTY IN THE TYRRELL PARK AREA, STATED THAT A NEW RESTAURANT HAS OPENED IN BEAUMONT, MUNCHES, LOCATED AT 3297 COLLEGE ST. CITY ATTORNEY COOPER - NONE CITY MANAGER HAYES - NONE MAYOR AMES - THANKED THE CITY MANAGER AND STAFF FOR THE PREPARATION OF THE BUDGET, COMMENTED ON THE CHARLTON PARK NEIGHBORHOOD ASSOCIATION PICNIC AND HOW BEAUTIFUL THE PARK LOOKED,CONDOLENCES TO DON AND ANGIE LABICHE ON THE LOSS OF THEIR DAUGHTER Public Comments (Persons are limited to three minutes) Frank Kiefer 3190 Willowood Dr. Beaumont TX Asked that council consider exemptions on house taxes for seniors and disabled citizens, also thanked Mayor Pro Tern Wright for encouraging citizens to use their right and left turn signals when driving Open session of meeting recessed at 3:50 p.m. EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Douglas Manning, et al v. City of Beaumont Derrick Newman v. David Todd Burke, et al Fannett Entertainment, Inc. v. City of Beaumont, et al Eric Kvarme, et al v. City of Beaumont, et al There being no action taken in Executive Session, Council adjourned. A io available upon request in the City Clerk's Office. ,uMO,�y��t f AW B ky Am , M or �U� `'�` l�� .. CA., 61A AAav ;4 � i Tina Broussard, City Clerk �j � tt AV Page 19 of 19 t`' i Minutes-August 25,2009 AW