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HomeMy WebLinkAboutPACKET OCT 1 2002 City ® e-a rat REGULAR MEETING OF TILE CITY COUNCIL COUNCIL CHAMBERS OCTOBER 1, 2002 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call Presentations and Recognition- Jefferson County Historical Commission * Public Comment: Persons may speak on scheduled agenda items Consent Agenda GENERAL BUSINESS 1. Consider a request to abandon a 20' x 84'portion of a general utility easement retained with the abandonment of the former Isla Avenue 2. Consider approval of a one year contract with Blue Cross Blue Shield of Texas for third party administration of the City's self funded Preferred Provider Organization (PPO) medical plan, self funded dental plan and a fully insured Health Maintenance Organization(HMO) with HMO Blue Texas 3. Consider approval to continue the contract with Eckerd Health Services for the City's prescription drug plan with a modified plan design 4. Consider a request to enact a new ordinance to provide for increased prior and current service annuities of 70% of the Consumer Price Index(CPI) for all retirees and beneficiaries of deceased retirees of the City who retired through the Texas Municipal Retirement System(TMRS) to become effective January 1, 2003 5. Consider granting the City Manager authority to implement the contribution rate changes for retirees in the medical plans 6. Consider approval of a two year contract for long term disability insurance COMMENTS * Councilmembers comment on various matter * Public Comment (Persons are limited to three minutes) Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Pat Buehrle at 880-3725 a day prior to the meeting. 1 October 1,2002 Consider a request to abandon a 20'x 84'portion of a general utility easement retained with the abandonment of the former Isla Avenue ti -72J-J City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Stephen C. Richardson, Planning Manager MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 25, 2002 REQUESTED ACTION: Council consider a request to abandon a 20'x 84'portion of a general utility easement retained with the abandonment of the former Isla Avenue. RECOMMENDATION The Administration recommends denial of the request to abandon a 20' x 84' portion of a utility easement, formerly Isla Avenue Street. The abandonment of a portion of the easement would interfere with the City's ability to maintain its existing facilities. BACKGROUND Reginald C. Wallace is requesting on behalf of Spur,LLC,the abandonment of a 30'x 150'portion of a general utility easement created through the abandonment of the most western part of Isla Avenue. This portion of Isla Avenue was abandoned in July, 1982. On October 23,2001,the City issued Spur,LLC a building permit to construct a convenience store to be located at 1610 I-10 East. A 20'x 84'portion of the store was constructed within the subject easement. Upon a recent review of the site plan submitted by the owner for the building permit, it was discovered that the plans did not show the existing sixty(60') foot easement. This request was sent to all interested parties. A number ofpublic and private utilities have facilities located in the easement. The City has a 27"storm sewer and a 12"sanitary sewer with two clean out in the easement. Energy has an electric transmission line in close proximity to the easement. Energy wants to keep a horizontal clearance for the transmission line. Southwestern Bell has a buried communication cable located in the easement. Energy and Southwestern Bell initially objected to the abandonment but have since agreed to allow it. BUDGETARY IMPACT None. PREVIOUS ACTION At a Regular Meeting held September 17,2002,the Planning Commission voted 7:0 to approve the request to abandon a 20' x 84' portion of a utility easement, formerly Isla Avenue, subject to an indemnity agreement being executed. SUBSEQUENT ACTION None. RECOMMENDED BY Planning Commission recommends approval. City Manager, Public Works Director and the Planning Manager recommends denial. RECOMMENDED MOTION Approve/Deny a request-to abandon a 20'x 84'portion of a utility easement, formerly Isla Avenue, subject to an indemnity agreement being executed. ORDINANCE NO. ENTITLED AN ORDINANCE ABANDONING A 20' X 84' PORTION OF A UTILITY EASEMENT, FORMERLY ISLA AVENUE, SUBJECT TO AN INDEMNITY AGREEMENT BEING EXECUTED, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR REPEAL. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT the south 20'x 84'portion of a sixty(60')foot general utility easement located between the west right-of-way line of Gulf Street and Babe Didrikson Zaharias Park, being the retained part of an abandoned portion of Isla Avenue closed July 27, 1982, Ordinance No. 82-81, and recorded in the Jefferson County Deed Records, Vol. 2402, Page 373, in Beaumont, Jefferson County, Texas as shown on Exhibit "A" attached hereto, be and the same is hereby abandoned, subject to an indemnity agreement being executed between the City of Beaumont and Spurg L.L.C. Section 2. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 3. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1st day of October, 2002. - Mayor Evelyn M. Lord FILE 638-OB: Request to abandon an 84'a 20' portion of a utility easement, formerly NORTH ' Isla St. Applicant: Reginald Wallace for Spurg, L.L.C. SCALE V=200' j TO .. . — 7 AVE" •M !s y MAPLE AVE milli • 7" AVC ISLA AVE- [TIM 3 f w >>t rryrrxST/tfF SUE TU UjiC INTERSTATE 10 . /71V /alb 0 0 Jot) INC iMI tK FIOOIN �1cY/r!�. L�'��[ �S_ tK !e 7 A19Ar>tr ciNE ✓"trs F�oOr�i' -...- .._ _ LOUISIANA AVE. i � � •� � ao. 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I CAW EXHIBIT 641377 Spurg L.L.C. 1610 IH-10 East Beaumont,Texas 77703 (40Y835-1163 City of Beaumont Attn: Planning Committee 801 Main Street Beaumont, Texas 77701 August 27,2002 RE: Application for Utility Easement Abandonment Dear Planning Committee: Attached is an Application for Utility Easement Abandonment. In the early 1980's,the city closed Isla Street when the City of Beaumont established the Babe Didrikson Zacharias Museum, 1750 111- 10 East. The former Isla Street was divided, and half was utilized by the Museum and the other portion was utilized by Spurg, L.L.C., formerly Spurg. Although the half portion was utilized by Spurg, a utility easement remained in effect. Pursuant to this easement, Entex maintained an underground gas line. Entex has moved their gas line and no longer utilizes the easement. The easement is generally described as a 30-foot by 160-foot strip of land being.103 acres,abutting the Museum,which is the southern portion of PL A 14TR A. For your convenience I have attached a copy of the deed as well as a map designating the area of the requested abandonment. On or about October 23, 2001, we were issued a building permit allowing for a structure to be erected on the utility easement. We would request the City abandon the 20' x 84 ` section of its current utility easement upon which our structure stands. Thank you in advance for your attention to this matter. Should you need to contact me, I may be reached at (409) 835-1163. Sincerely, R ginald C. Wallace General Manager Interoffice Memorandum City of Beaumont - Water Utilities /Administration Date: September 18,2002 To: Tom Warner, P.E.,Public Works Director From: Joseph Majdalani,P.E.,Water Utilities Manager Subject: Easement Abandonment on Isla Street The following information is provided in response to your request concerning the easement abandonment application on Isla Street. Approximately at the center of the sixty-foot right-of-way,and at a depth of eight feet,the City owns and maintains a ten-inch sanitary sewer line,two manholes and two cleanouts. The ten-inch sanitary sewer line serves approximately seventy lots. Any necessary maintenance on the line would require a large area to accommodate the use of heavy machinery and large trench boxes. Future developments on the sixty-foot easement will limit the construction area and increase the cost of surface restoration; therefore, it is my recommendation to deny the request for the easement abandonment. Jos h G.Majdalani Isla-abandonment 2 October 1,2002 Consider approval of a one year contract with Blue Cross Blue Shield of Texas for third party administration of the City's self funded Preferred Provider Organization(PPO)medical plan, self funded dental plan and a fully insured Health Maintenance Organization(HMO) with HMO Blue Texas ,�..- City of Beaumont •,,,;�;,; Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Marie A. Dodson, Human Resources Director MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 25, 2002 REQUESTED ACTION: Council approval of a one year contract with Blue Cross Blue Shield of Texas for third party administration of the City's self funded Preferred Provider Organization (PPO) medical plan, self funded dental plan and a fully insured Health Maintenance Organization (HMO) with HMO Blue Texas. RECOMMENDATION Administration recommends that council award a one year contract effective January 1, 2003 to Blue Cross Blue Shield of Texas (BCBSTX) for third party administration of the City's self funded Preferred Provider Organization (PPO) medical plan, self funded dental plan and a fully insured Health Maintenance Organization (HMO Blue Texas). BACKGROUND Full time city employees are offered medical and dental benefits. The medical benefit consists of a fully insured HMO plan, a self funded PPO plan and a self funded dental plan. There are 666 participants enrolled in the HMO plan, 580 active employees, 81 retirees and 5 COBRA participants. There are 802 participants enrolled in the PPO plan,713 active employees and 89 retirees. In the dental plan,there are 1,041 participants enrolled, 1,032 active employees, l retiree and 8 COBRA participants. In July 2002,City staff began analyzing the City's health care costs. Staff also began working with the City's health benefit consultant,McGriff, Siebels and Williams of Texas,Inc.,to determine if the City should request bid proposals for the City's HMO, PPO, and dental plans or remain with the current administrator,Blue Cross Blue Shield(BCBS)for 2003. The City has the option to negotiate new rates with BCBS without seeking bids because the prior year bid states the City has the option to request renewal rates from the current administrator, BCBS. BCBSTX Renewal September 25, 2002 Page 2 After researching the various plans offered in the area,McGriff concluded that BCBS offered the most cost effective plans. Because of the extensive BCBS network, deep BCBS provider discounts, ability to retain continuity of insurance and the lack of other extensive provider networks, staff requested BCBS renewal rates. Negotiations began in July for renewal of the contract that would be effective January 1, 2003. Initial renewal rates submitted by BCBS for the fully insured HMO plan increased 38%.Administration and stop loss rates for the self funded PPO medical plan increased 15%. Renewal rates for the self funded dental plan did not increase. The proposed rate increases are within industry trends, however the City was forced to seek ways to reduce these proposed increases. Discussions with BCBS and McGriff indicated that there are two effective means to reduce costs; either implement plan design changes or shift the cost of the plan to employees by implementing larger employee payroll contributions. Currently, employees are contributing approximately 14% towards the cost of medical coverage. See Attachment A for the monthly contributions for Jefferson County, BISD and City of Port Arthur employees. Due to Police and Fire union contracts,only limited increases in their members'payroll contributions can be implemented. The City is also contractually obligated by the union contracts to provide no less than an 80/20 indemnity medical plan, thus restricting modification of the 80/20 out of network PPO benefits. The HMO is offered as an alternative plan design and is not stipulated in the union contracts. Considering union contract limitations and that the City has rich plan designs compared to other cities, Jefferson County and BISD, staff recommends that plan design changes to the HMO and PPO be implemented. Modification of the PPO plan design and additional negotiations will result in a savings of 6%from the original renewal rates submitted. See Attachment B for proposed PPO plan design change. Likewise, HMO plan design changes resulted in a 23.8% increase in rates rather than a 38% increase. See Attachment C for proposed HMO plan design changes. Another potential savings to the PPO plan cost is currently BCBS provides stop loss coverage. The rate increase quoted by BCBS includes stop loss coverage. However for the 2003 contract the City retains the right to shop outside BCBS to secure competitive stop loss rates. Staff recommends implementation of the following negotiated HMO and PPO rates resulting from plan design changes: Current HMO Rates Negotiated HMO Rates Employee Only $166.82 $206.39 Employee+ 1 Dependent $402.04 $497.40 Employee+Family $572.18 $707.90 BCBSTX Renewal September 25, 2002 Page 3 Current PPO Rates Negotiated PPO Rates Employee Only $48.88 $53.59 Employee+ 1 Dependent $66.15 $73.07 Employee+Family $66.15 $73.07 BUDGETARY IMPACT Appropriation of funds is available in the Employee Benefits Fund. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Human Resources Director. RECOMMENDED MOTION Approve/Deny a request to award a one year contract with Blue Cross Blue Shield of Texas for third party administration of the City's self funded Preferred Provider Organization (PPO) medical plan, self funded dental plan and a fully insured Health Maintenance Organization(HMO)with HMO Blue Texas with the option to renew annually at mutually agreeable rates. Attachment A Monthly Medical Contributions Employee Only • Beaumont (PPO or HMO): $0 • Port Arthur(PPO): $0 • Jefferson County(PPO High or Low): $0 • BISD • POS High: $70 • POS Standard: $0 • HMO High: $45 • HMO Standard: $0 Employee+ 1 • Beaumont - PPO or HMO o Civilian: $96 Police: $46 Fire: $34 • Port Arthur- PPO o Civilian: $218.02 Police: $229.87 Fire: $229.87 • Jefferson County- PPO • Employee+Spouse - High Plan: $181.88 Low Plan: $162.79 • Employee+Child -High Plan: $140.83 Low Plan: $126.04 • BISD -POS or HMO o Employee+1 or more dependents - POS - High: $500 Standard: $400 HMO - High: $465 Standard: $375 Employee+ 2 or More Dependents • Beaumont-PPO or HMO o Civilian: $126 Police: $46 Fire: $34 • Port Arthur-PPO o Civilian: $272.64 Police: $288.99 Fire: $288.99 • Jefferson County -PPO • Family-High Plan: $231.39 • Family- Low Plan: $207.10 • BISD o Employee+1 or more dependents - POS - High: $500 Standard: $400 HMO -High: $465 Standard: $375 Attachment B Blue Cross Blue Shield Preferred Provider Organization (PPO) Current Plan Design Proposed Plan Design In-Network Out-of-Network In-Network Uut-of-Network Calendar Year $100 individual $250 individual $250 individual $250 individual Deductible $200 family $500 family $500 family $500 family Out-of-Pocket $1,000 individual $2,000 individual $1,500 individual $2,000 individual Maximum $2,000 family $4,000 family $3,000 family $4,000 family Physician Office $15 co-pay 80%of R&C after $25 co-pay 80%of R&C after deductible Visits deductible Inpatient Hospital 90%of eligible 80%of R&C after$100 90%after$100 80%of R&C after$100 Services(including charges hospital deductible hospital deductible per hospital deductible per year inpatient hospital year professional services) Emergency Room 90% 80%of R&C(deductible 90%after$50 co-pay 80%of R&C(deductible Emergency Situations waived for accidental (co-pay waived if waived for accidental injury) Facility Charge injury admitted) Attachment C HMO Blue Texas Current Proposed Out-of-Pocket Maximum $850 individual/$2,000 family $1,500 individual/$3,000 family Physician Office Visits $10 co-pay $20 co-pay Inpatient Hospital Services $100 per admission $500 per admission (including inpatient hospital professional services) Outpatient Hospital/Surgical Center $25 co-pay $200 co-pay Hospital Emergency Room $50 co-pay(waived if admitted) $75 co-pay(waived if admitted) Urgent Care Facility $25 co-pay $40 co-pay Serious Mental Health/Chemical $10 co-pay $20 co-pay Dependency Outpatient Services Serious Mental Health/Chemical $100 per admission 100 %after$500 co-pay per Dependency confinement Inpatient Services 3 October 1,2002 Consider approval to continue the contract with Eckerd Health Services for the City's prescription drug plan with a modified plan.design City of Beaumont �• Council • _ Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Marie A. Dodson, Human Resources Director MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 25, 2002 REQUESTED ACTION: Council approval to continue the contract with Eckerd Health Services for the City's prescription drug plan with a modified plan design. RECOMMENDATION Administration recommends that council approve to continue the contract with Eckerd Health Services for the City's prescription drug plan with a modified plan design effective January 1, 2003. BACKGROUND As prescription drug costs continue to rise, the City faces a challenge in providing the same level of drug benefits as in previous years without incurring substantial cost increases. For 2002, City drug costs are estimated to be $1.9 million which is a 21% increase. Industry trends predict drug costs to increase by 27% in 2003. In July 2002, City staff began analyzing the City's prescription drug cost. Staff also began working with the City's current prescription drug plan provider, Eckerd Health Services (EHS) to analyze the City's increased drug cost. Based on the information reviewed, staff requested that EHS recommend plan design changes that would control rising drug costs. After reviewing the various plan designs offered, staff recommends the City implement a 30% co-pay structure. The administrative fees charged by EHS to administer the plan will remain the same thru December 31, 2004, however the claims cost continue to rise. Details of the current and proposed co-pay structures can be found on Attachment A. Implementation of the recommended changes should reduce the 27% projected drug cost increase by 15%. Prescription Drug Plan September 25, 2002 Page 2 BUDGETARYIMPACT Based on the recommended plan design changes, the estimated annual plan savings is $299,661 for the prescription drug plan. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Human Resources Director. RECOMMENDED MOTION Approve/Deny a request to continue the contract with Eckerd Health Services for the City's prescription drug plan with a modified plan design effective January 1, 2003. Attachment A Eckerd Health Services Prescription Drug Plan Current Co-Pays Proposed Co-Pays* Retail Generic (30 day supply) $5.00 30%, $5.00 minimum Retail Brand with No Generic Available(30 day supply) $15.00 30%, $15.00 minimum Retail Brand with Generic Available (30 day supply) $25.00 30%, $25.00 minimum Mail Order Generic (90 day supply) $10.00 30%, $10.00 minimum Mail Order Brand with no Generic Available (90 day supply) $30.00 30%, $30.00 minimum Mail Order Brand with Generic Available (90 day supply) $60.00 30%, $60.00 minimum * $50 maximum at retail on life sustaining medications. $100 maximum at mail order on life sustaining drugs. • January- June 2002 data analysis is only an estimate based on current drug mix • The average cost of retail and mail order drugs used by: City employees - $58 EHS clients - $62.89 • The average number of drugs, retail and mail order purchased per year,per member: City Employees - 10.8 EHS clients - 9.96 4 October 1,2002 Consider a request to enact a new ordinance to provide for increased prior and current service annuities of 70% of the Consumer Price Index(CPI) for all retirees and beneficiaries of deceased retirees of the City who retired through the Texas Municipal Retirement System(TMRS)to become effective January 1, 2003 City of Beaumont • Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Marie A. Dodson, Human Resources Director MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 23, 2002 REQUESTED ACTION: Council consider a request to.enact a new ordinance to provide for increased prior and current service annuities of 70% of the Consumer Price Index (CPI) for all retirees and beneficiaries of deceased retirees of the City who retired through the Texas Municipal Retirement System(TMRS) to become effective January 1, 2003. RECOMMENDATION The administration requests approval of an ordinance to allow and provide for a cost of living adjustment(COLA)of 70% of the CPI for all retirees and beneficiaries of deceased retirees of the City who retired through TMRS to become effective January 1, 2003 and each subsequent year until the ordinance ceases to be in effect. BACKGROUND TMRS allows for cities to grant an increase (when the cost of living increases) to protect retiree benefits from the effects of inflation. Based on the Beaumont Police Officers Association Labor Agreement dated October 1, 2000 - September 30, 2003, the City agreed to a 70% CPI increase to annuitants effective January 1, 2003. The cost of living change is measured from the December before the employee's retirement through the December that is 13 months prior to the effective date of the CPI increase. The calculated annuity increase will be applied to the retiree's original annuity. Those employees who were retired on or before December 31, 2001 will be eligible to receive the January 2003 COLA. Subsequent retirees will be eligible to receive the COLA 13 months from the December of the year in which they retire. See Attachment A for the calculation of a monthly retirement annuity. The City last adopted an increase in TMRS retiree benefits in 2000 at a 30% rate as agreed to in the Beaumont Police Officers Association Labor Agreement dated October 1, 2000 - September 30, 2003. BUDGETARY IMPACT Based on an annual payroll of$39M, the projected cost for the plan improvement is approximately $242,000. The City's contribution rate for 2002 is 11.04% of payroll. TMRS is estimating that the City's contribution rate for 2003 will be 11.27% of payroll. The estimated contribution rate for a COLA for retirees is .61%. This would total 11.88% of payroll for 2003. PREVIOUS ACTION None. SUBSEQUENT ACTION By adopting this ordinance, the City will not have to adopt an ordinance each year to re-authorize calculations of these benefits and the Annuity Increase will remain in effect for future years until such time as it is discontinued or increased by an ordinance adopted by the City Council. RECOMMENDED BY City Manager and Human Resources Director. RECOMMENDED MOTION Approve/Deny a request to enact a new ordinance to provide for increased prior and current service annuities of 70% of the Consumer Price Index (CPI) for all retirees and beneficiaries of deceased retirees of the City who retired through the Texas Municipal Retirement System(TMRS) to become effective January 1, 2003. G:\BNBIDSPC\retcola.wpd 9/26/02 Attachment A Monthly Retirement Annuity Calculation In 1981, City of Beaumont retirees received a 20% CPI increase. The current police union contract allows for a 30% CPI increase in 2001 and a 70% increase in 2003. City staff has budgeted the TMRS rate to be 11.88% for 2003. This rate includes .61 for a 70% CPI annuity increase effective January 1, 2003. See the illustration below for the calculation of a 2003 monthly retirement annuity. Employee's original monthly annuity $1,896.54 Employee retired in March 1995 1. Compare Consumer Price Index (CPI) from the year prior to retirement to December 2001 CPI. 176.70 December 2001 CPI 149.70 December 1994 CPI (December before retirement date) 27.00 change 2. 27.00 change- 149.70 Dec 1994 CPI= .1803607 percentage of increase 3. 70% increase x .1803607 = .126252 4. .126252 x $1,896.54 (1994 original monthlyannuity) = $239.44 5. $1,896.54 original monthly annuity 239.44 increase based on 70% $2,135.98 January 2003 monthly annuity 1 1 4us 1 TMRS-CPI/R TEXAS MUNICIPAL RETIREMENT SYSTEM AN ORDINANCE PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY OF BEAUMONT, AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: Increase in Retirement Annuities. (a) On the terms and conditions set out in Sections 854.203 and 853.404 of Subtitle G of Title 8, Government Code, as amended (hereinafter referred to as the "TMRS Act"), 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 the City under current service annuities and prior service annuities arising from service by such employees to the City. An annuity increased under this section replaces any annuity or increased annuity previously granted to the same person. (b) The amount of the annuity increase under this section is computed as the sum of the prior service 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 the increase under this Section. (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 hereunder. (e) The amount by which an increase under this Section exceeds all previously granted increases to an annuitant is an obligation of the City and of its account in the Municipality accumulation fund of the System. Dates of Increases. The initial increase in retirement annuities hereunder shall be effective on January 1, 200_, subject to approval by the Board of Trustees of the System. An increase in retirement annuities shall be made hereunder on January 1 of each subsequent year until this ordinance ceases to be in effect under subsection (e) of Section 853.404 of the TMRS Act, provided that, as to such subsequent year, the actuary for the System has made the determination set forth in subsection (d) of Section 853.404 of the TMRS Act, and provided further that, as to such subsequent year, the City has an ordinance in effect that provides for a simultaneous increase in updated service credits as that term is used in the TMRS Act. Effective Date. Subject to approval by the Board of Trustees of the System, this ordinance shall be and become effective on the 1st day of January 200_. Passed and approved this the day of ATTEST: APPROVED: (City Secretary or Clerk) (Mayor) 5 October 1,2002 Consider granting the City Manager authority to implement the contribution rate changes for retirees in the medical plans City of Beaumont •� Council Agenda Item .......... - c_ TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Marie A. Dodson, Human Resources Director MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 19, 2002 REQUESTED ACTION: City Council consider granting the City Manager authority to implement the contribution rate changes for retirees in the medical plans. RECOMMENDATION Administration recommends that Council approve medical contribution rate changes for retirees including their dependents effective January 1, 2003. BACKGROUND Retirees and their dependents are allowed to elect continuation of medical coverage as provided by state statute. The retiree/dependent may continue coverage until the retiree/dependent is covered by Medicare/Medicaid but not beyond age 65. Currently, there are 170 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 (Consolidated Omnibus Budget Reconciliation Act) rate on January 1 st annually." This same formula is utilized when calculating the contribution rate for civilian retirees. As such, retiree rates effective January 1, 2003 based on each medical plan will be as follows: Total Current Retiree Plan Medical Prescription COBRA Retiree Contribution and Rate Drug Rate* Rate Rate Category 1/1/2003 1/1/2003 1/1/2003 1/1/2002 1/1/2003 PPO (EO) $256.88 $ 50.88 $307.76 $191.99 $212.35 (E1) 640.67 127.17 767.84 403.08 445.35 (E2) 832.95 165.53 998.48 488.09 539.18 HMO (EO) 206.39 50.88 257.27 143.96 177.52 (E1) 497.40 127.17 624.57 293.81 362.25 (E2) 707.90 165.53 873.43 382.45 471.65 * COBRA Total does not include BCBS administration fee. BUDGETARY IMPACT Appropriation of funds is available in the Employee Benefits Fund. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Human Resources Director. RECOMMENDED MOTION Approve/deny a request to authorize the City Manager to implement a medical contribution rate change for retirees effective January 1, 2003. G:\BNBIDSPC\C0NTR02.wpd 9/19/02 6 October 1, 2002 Consider approval of a two year contract for long term disability insurance City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes , City Manager PREPARED BY: Marie A. Dodson, Human Resources Director AGENDA MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 18, 2002 REQUESTED ACTION: Council consideration of a two year contract for long term disability insurance. RECOMMENDATION Administration recommends that the long term disability contract be awarded to the current carrier, Prudential Financial for two years effective January 1,2003. Prudential will provide the same level of long term disability benefits that are currently in effect and the long term disability benefit cost will remain the same for the employees. BACKGROUND The City received proposals from four insurance companies for long term disability insurance on August 29, 2002. The companies that submitted proposals were Standard Insurance Company, Prudential Financial,Unum Provident and Fort Dearborn Life Insurance Company. See Attachment A for a proposal comparison. Long term disability is an employee paid benefit offered to Police and Civilian employees with approximately 640 or 58% of the eligible employees participating. This benefit will provide the employee with up to 60% of his or her salary when disabled for a period in excess of 90 days. The apparent low bidder was Fort Dearborn Life Insurance Company,however,the proposal did not meet the total benefits specifications as outlined on Attachment A. An example of one exception is Dearborn's proposed pre-existing clause is more lenient than the City's current pre-existing clause which could lead to increased claims cost resulting in higher rates. The next lowest bidder which met the City's specifications was Prudential Financial. Prudential, the in force carrier, agreed to provide the same benefits at current rates. BUDGETARY IMPACT Long term disability insurance is an optional benefit offered to Police and Civilian employees. There is no monetary impact to the City because premiums are withheld from participating employees' paychecks to pay for the long term disability insurance coverage. Fiscal Year to date (8/02), the employees have paid premiums of$83,836. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Human Resources Director. RECOMMENDED MOTION Approve/Deny awarding a two year contract to Prudential Financial for long term disability insurance with an option to renew for two additional years at mutually agreeable rates. JRS G:\BNBIDSPC\LTD20031tr.wpd Attachment A Long Term Disability Company Comparison Prudential Unum Standard Insurance Fort Dearborn Life Financial Provident Company Insurance Company Age Bands Rate per$100 Rate per$100 Percent of Earnings Rate per$100 Age 40 or less .40 .43 0.804 .35 Age 41 -49 1.00 1.08 0.996 .88 Age 50+ 1.25 1.35 1.713 1.10 Contract Terms 2 Years 2 Years 2 Years 2 Years Proposal Meets Exceptions: Exceptions: Exceptions: Exceptions: Specifications Participant • Cost based on final • Cost determined on total • Different pre-existing requirement enrollment data volumes condition definition • Participation • Participation • Service guarantees not requirement requirement matched • Not willing to • Not willing to waive • Provides semi-annual waive actively at actively at work reports, not monthly work provision provision status. • Different pre- • Does not agree to • Participation requirement existing condition enforce service definition agreement • No service guarantees 7RS GABNBIDSPC\LTD2002ATT.wpd 9/26/02 �A c City ®f Beaurnont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS OCTOBER 1, 2002 1:30 P.M. CONSENT AGENDA * Approval of minutes Confirmation of committee appointments Ann Heidtke-Poynor would be reappointed to the Library Commission. The term will expire August 31, 2004. (Councilmember Andrew Cokinos) Dohn LaBiche would be reappointed to the Planning Commission. The term will expire September 9, 2005. (Councilmember Guy Goodson) Larry Grantham would be appointed to the Airport Advisory Committee. The term would commence October 1, 2002 and expire September 30, 2004. (Councilmember Becky Ames) A) Approve a resolution authorizing the City Manager to execute the Form ROW U-43, the Three Party Utility Agreement for the Huntsman Petrochemical Company, on the FM 364 Major Drive Improvement Project B) Approve a resolution authorizing the acceptance of a 112.5 square foot Water Line Easement across property owned by Habitat For Humanity, Inc. A Cit y of Beaumont Council Agenda Item 'm UE . g TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 25, 2002 REQUESTED ACTION: Council consider a resolution authorizing the City Manager to execute the Form ROW U-43, the Three Party Utility Agreement for the Huntsman Petrochemical Company, on the FM 364 Major Drive Improvement Project. RECOMMENDATION Administration recommends the City Manager be authorized to execute Form U-43. BACKGROUND The City of Beaumont, in cooperation with the Texas Department of Transportation has entered into an agreement to make improvements to FM 364/Major Drive from Humble Road to IH-10. Part of this agreement is to have any adjustments that may need to be made by both pipeline and utility companies submitted to the State for approval prior to authorizing any work to be done. The Form ROW U-43 must be executed by all parties involved as part of this process. BUDGETARY IMPACT None PREVIOUS ACTION None SUBSEQUENT ACTION None RECOMMENDED BY City Manager, Public Works Director and City Engineer RECOMMENDED MOTION Approve/Deny resolution authorizing the City Manager to execute the Form ROW U-43, the Three Party Utility Agreement for the Huntsman Petrochemical Company, on the FM 364 Major Drive Improvement Project. Councilsk.wpd 09-25-2002 Form ROW-U-4 1 7/217(111 (Replaces Form D-1�-43) (Llectronic version GSD-L11C Word 97) Page I or THREE PARTY UTILITY AGREEMENT Agreement No. County: Jefferson ROW CSJ No.: 0786-01-064 Federal Project No.: DPR 0057 (001 ) Highway No.: FM 364 Contract No.: Account No.: 9120-00-001 This Agreement by and between the State of Texas, acting by and through the Texas Transportation Commission, hereinafter called the State, and The City of Beaumont, Texas, acting by and through its duly authorized official under Ordinance No.: 92-192 dated the 28thday of July 1992 hereinafter called the City, and HUNTSMAN f PETROCHEMICAL acting by and through its duly authorized representative, hereinafter called the Owner, shall be effective on the date of approval and execution by the State. WHEREAS, it has been determined necessary to make certain highway improvements in the State Highway System as designated by the State and generally described as follows: Jefferson County; FM 364; located from SH 124 To SH 105. WHEREAS, the State and the City have previous to this date entered into a contractual agreement, agreeing to handle by separate agreement the adjustment, removal or relocation of certain utility facilities necessitated as a result of highway improvements on the hereinabove designated project on the basis of an 80/20 State to City funding/participation ratio with the 80%State portion being in fact federal funds in which the State acts as steward; and, WHEREAS,the State as steward, and the City will participate in the costs of relocating and adjusting certain facilities of the Owner to the extent as may be eligible for State participation under Transportation Code, Title 6, Chap. 203, Sec. 203.092;and. WHEREAS, the Owner, in Affidavit, Form D-I5-U 1, dated has asserted an interest in certain lands and that this proposed highway improvement will necessitate the adjustment, removal or relocation of certain facilities of the Owner now located upon such lands as indicated in the following statement of work: .� Extension of pipeline casings on (2) two pipelines approximately 38 feet, one being a six inch Propylene line with a 10 inch existing casing, and the other, an eight inch Ethylene pipeline with an existing 12 inch casi.ng. 'Approx, location at TXDOT St&tion Plus 62+80. WHEREAS. the State will administer federal funds in payment of the costs incurred in the adjusting of Owner's facilities under provisions of Title 23 Code of Federal Regulations, Part 6-45: arid. WHEREAS, the State and the City desire to accomplish the adjustment, removal or relocation of the Owner's utility facilities by entering into an agreement %�ith the Owner and such work is shown in more detail in Owner's preliminary which plans, specifications and cost estimates which are attached hereto and made a part hereof, and which are prepared in the form and manner required by Title 23 Code of Federal ReLyulations, Part 645 and; WHERE.,kS. the State. City, and Owner wish to document their agreement for the effectuation of these terms. NOVV. THEREFORE, BE IT MUTUALLY AGREED: Th Cit.N will pal, to the Owner the costs incurred in relocating and adjusting Owner's facilities up to the amount said costs ma% he cli_ible for state and tedcral cost participation �%ith the State then reimbursing the Cite The Owner has determined that the method to be used in developing the relocation or adjustment costs shall be as specified for the method checked and described hereafter: X (I) Actual direct and related indirect costs accumulated in accordance with a work order accounting procedure prescribed by the applicable federal or state regulatory body. _(2) Actual direct and related indirect costs accumulated in accordance with an established accounting procedure developed by the Owner and approved by the State. _(3) An agreed lump sum of S , as supported by the detailed itemization of estimated costs attached hereto. Upon execution of this agreement by the parties hereto the City will, by written notice, authorize the Owner to proceed with the necessary adjustment, removal or relocation, and the Owner agrees to prosecute such work diligently in accordance with the plans attached hereto, to completion in such manner as will not result in avoidable interference or delay in either the State's highway construction or in the said work. Such authorization to proceed shall constitute notice on the part of the State that the utility relocation has been included in an approved program as an item of right of way acquisition,that a project agreement which includes the work has or will be executed, and that the utility relocation or adjustment will be required by the final approved project agreement and plans. If costs are developed under procedure(I) or(2)as before specified, upon satisfactory completion of the relocation or adjustment and upon receipt of a final billing from the Owner prepared in form and manner as prescribed by Title 23 Code of Federal Regulations Part 645 and after the required audit, the City will pay to the Owner the full amount of costs found eligible by said audit and the costs paid by the City pursuant to this agreement shall be full compensation to the Owner for the costs incurred in making such adjustment, removal or relocation. Bills for work contemplated herein shall be submitted to the City not later than ninety(90)days after completion of the work. The State will reimburse the City in an amount equal to eighty(80%) percent of the payment to the Owner by the City upon receipt of evidence and certificate that payment in this amount has been made to the Owner. The City agrees that if requested by the Owner, it will pay ninety( 90%)percent of the total billed costs to the Owner upon receipt of Owner's final bill resulting in a ten (10%) percent retainage pending audit results. The City may elect to request its eighty(80%)percent reimbursement from the State if this option is elected. And, accordingly, upon conclusion of the audit and settlement of its findings all remaining retainaze is to be promptly paid the Owner by the City and the City agrees to promptly request final reimbursement from the State. If costs are developed wider procedure(3)as before specified, the City will, upon satisfactory completion of the relocation and adjustment by the Owner and upon receipt of a billing prepared in acceptable form, make a payment to Owner in the a freed to amount. And as before, the City may then claim eighty (80%) reimbursement from the State. In this instance, no audit shall be required prior to paymnent Form D-15--48 enclosed with Owner's preliminary estimate attached to this agreement, is approved as complying with Title Code of Federal Regulations, Part 645. Sec. 641 .1 15 and Owner is authorized, but not required, to contract such work. The preliminary estimate will indicate the extent to which work is to be performed under each contract. Other work shall be contracted by Owner only with approval of the State in accordance with Title 23, Code of Federal Re`_ulations, Part 645. In the event it is determined that a substantial change from the statement of work contained in this agreement is required, reimbursement therefor shall be limited to costs covered by a modification of this agreement or a written change or extra work order approved by the State ` li a e'<pressk- understood that this a_re:ment is subject to cancellation by the State at any time up to [he dute that urk under this agreement has been authonzed and that such cancellation will not create any liability on [lie part of the St:[te The Owner by execution of this agreement does not waive any of the rights which Owner may Ie�ally have within the limits of the law. City of Beaumont, Texas EXECUTION RECOMMENDED: By: Mayor District Engineer,Texas Department of Trans ATTEST: Beaumont District portation t THE STATE OF TEXAS Certified as being executed for the u activating and/or carrying out the o derrso Owner: established policies, i — '' or work programs heretofore approved and authorized by the Texas Transportation Commission By: �`�1e ft!`�Snq t",li� ?� By: �} Title: Director,Right of Way Division kL �� i" �,-7�,t 1 CtQ'1, Date: Date: , W B City of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Joris P. Colbert, City Engineer MEETING DATE: October 1, 2002 AGENDA MEMO DATE: September 25, 2002 REQUESTED ACTION: Council consider a resolution authorizing the acceptance of a 112.5 square foot Water Line Easement across property owned by Habitat For Humanity, Inc., being described as Lot 16, Block 2 of Pinebrook Place Unit l located on Bigner Road, F. Bigner Survey, Abstract No. 1. RECOMMENDATION The Habitat for Humanity, Inc. has donated a 112.5 square foot Water Line Easement across their property on Bigner Road. Administration recommends authorization to acquire the above named property. BACKGROUND This easement is needed to provide service to Pinebrook Place Unit 2 off of Bigner Road. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director and City Engineer. RECOMMENDED MOTION Approve/Deny resolution authorizing the acceptance of a112.5 square foot Water Line Easement across the Habitat for Humanity property on Bigner Road, F. Bigner Survey, Abstract No. 1. HabitatAgendask.wpd 09-25-2002 SUBJECT J r i RIVERS W f. W 2 pq U WATER LINE BENNETT EASEMENT TO THE QUI MAN NNIE LEDE7 CITY OF BEAUMONT U RO$1 50N F. BIGNER SURVEY, 90PERTH PL ABSTRACT 1 Pti� c LES LOT 16, BLOCK Z s PINEBROOK PLACE, UNIT 1 R 9A LpRILEE �r W o pN E` McHALE o - 3 oe J m p #p OWNER: RY .a E. L HABITAT FOR HUMANITY Q � 9 IF r <E TY ER p R TA LO LOCATION MAP LEGEND N.T.S. ® SUBJECT PROPERTY NUMBER BEARING DISTANCE LI N 84°39'34" W 4527 BIGNER ROAD L2 N 89°00'00" E 45.00 L3 S 00°57'38" E 5.00 EXIST, 8' WATER LINE P P. u w L3 50.13 RO I -PPf]SED EASEMENT w I 3 J I P.P CD 3 a a z W 3; 16 15 a a 15' UTILITY EASEMENT Q Lja a N.T.S.