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HomeMy WebLinkAboutMIN SEP 13 2011 M I N U T E S - CITY OF BEAUMONT W.L. Pate,Jr.,At-Large BECKY AMES, MAYOR Gethrel Wright,At-Large Dr.Alan B.Coleman,Ward I CITY COUNCIL MEETING Michael D.Getz,Waal II Audwin Samuel,Ward III September 13,2011 Jamie Smith, Mayor Pro Tom 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 September 13, 2011, at the City Hall Council Chambers, 801 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 1-6/Consent Agenda Consent Agenda Mayor Ames called the council meeting to order at 1:30 p.m. Pastor James Blackwell of South Park Baptist Church gave the invocation. Mayor Ames led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Ames, Mayor Pro Tern Smith, Councilmembers Coleman, Getz, Wright, Pate and Samuel. Absent: City Attorney, Tyrone Cooper. Also present were Kyle Hayes, City Manager; Quentin Price, 1st Assistant City Attorney; Tina Broussard, City Clerk. Proclamations, Presentations, Recognitions None Mayor Ames read the announcement regarding Executive Session being held at the conclusion of the General Business portion of the meeting. Public Comment: Persons may speak on scheduled agenda items 1-7/Consent Agenda. None CONSENT AGENDA Approval of minutes - Confirmation of committee appointments — Resolution 11 - 258 Nnutes—September 13,2011 Davion Harris would be appointed to the Library Commission. The term would commence September 13, 2011 and expire September 12, 2013. (Councilmember Gethrel Williams-Wright) Damion Diaz-Plumber would be appointed to the Construction Board of Appeals (Building). The term would commence September 13, 2011 and expire September 12, 2013. (Mayor Becky Ames) Kathleen L. Leaf would be reappointed to the Library Commission. The current term would commence September 13, 2011 and expire February 15, 2013. (Councilmember Mike Getz) A. Approve Change Order No. 2 for the Cartwright/Corley Drainage Project—Resolution 11 - 259 B. Authorize the City Manager to execute all documents necessary, specifically including an interagency agreement, to trade vehicles between the City of Beaumont and Jefferson County— Resolution 11 -260 C. Authorize the City Attorney to bring suit to collect delinquent hotel occupancy taxes due the City of Beaumont by Candlewood Suites/KJP Hospitality, LLC/Prendiville Revocable Trust — Resolution 11 - 261 Councilmember Pate made a motion to approve the Consent Agenda. Councilmember Samuel seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED GENERAL BUSINESS 1. Consider authorizing a contract for third party administration of the City's self funded Dual Option Preferred Provider Organization medical plan and a self funded dental plan. Administration recommended that Council award to Blue Cross Blue Shield of Texas (BCBSTX) a one year contract effective January 1, 2012 for third party administration of the City's self funded Dual Option 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 Dual Option PPO plan and a self funded dental plan. There are 1469 participants enrolled in the PPO plan, consisting of 1257 active employees, 207 retirees, and 5 COBRA participants. Minutes—September 13,2011 In May 2011, City staff began analyzing the City's health care costs. In June 2011, 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 PPO, and dental plans or remain with the current administrator, BCBSTX for 2012. The City has the option to negotiate new rates with BCBSTX without seeking bids. The current agreement with BCBSTX started January 1, 2011 and can be renewed for up to five years. After analyzing and negotiating the BCBS renewal rates, City staff and Holmes Murphy concluded that BCBSTX, the incumbent carrier, offered the most cost effective plans with an extensive provider network and deep provider discounts. Initial renewal rates projected by BCBSTX for the self funded PPO plan increased 12.0% for fixed costs which include stop loss and administration. Actual claims experience resulted in the high initial renewal projection. Renewal rates for the self funded dental plan did not increase. Final negotiations by Holmes Murphy&Associates resulted in the PPO plan renewal increases being less than 7%. The PPO plan increase was a function of increased utilization due to aging members, rising trend factors and increasing provider payments. Holmes Murphy &Associates recommends that the City remain with BCBSTX because it offers cost effective plans with an extensive network and deep provider discounts.The final negotiated rates are lower than the projected industry trend of 8.5%. Funds are available for this expenditure in the Employee Benefits Fund. Councilmember Wright moved to APPROVE A RESOLUTION THAT THE CITY MANAGER BEANO HE IS HEREBY AUTHORIZED TO ENTER INTO A ONE-YEAR AGREEMENT WITH BLUE CROSS BLUE SHIELD OF TEXAS(BCBSTX)FOR THIRD PARTY ADMINISTRATION OF THE CITY'S SELF-FUNDED DUAL OPTION PREFERRED PROVIDER ORGANIZATION (PPO) MEDICAL PLAN AND SELF-FUNDED DENTAL PLAN EFFECTIVE JANUARY 1, 2012. Mayor Pro Tern Smith seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Resolution 11 - 262 2. Consider approving medical insurance premiums for retirees. Administration recommended approval of medical contribution rates for retirees including their dependents, effective January 1, 2012. 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 207 retirees on the City's medical plans. Minutes—September 13,2011 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 affected 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 1 st annually." This same formula is utilized when calculating the contribution rate for civilian retirees. The City requested Holmes Murphy&Associates, our benefits consultant, to analyze the City's health costs and to determine the 2012 medical COBRA rates. Holmes Murphy recommends no change in rates for 2012. Appropriation of funds is available in the Employee Benefits Fund. Councilmember Coleman made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO IMPLEMENT THE FOLLOWING MEDICAL CONTRIBUTION RATES FOR RETIREES INCLUDING THEIR DEPENDENTS EFFECTIVE JANUARY 1, 2012. Councilmember Getz seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEM13ERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Resolution 11 — 263 3. Consider approving a three-year contract with Cigna for Basic Life and Accidental Death and Dismemberment, Supplemental Life and Accidental Death and Dismemberment and Dependent Life Insurance. Administration recommended that Council award to Cigna a three-year contract effective January 1, 2012 for Basic Life and Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and Dismemberment(AD&D)and Dependent Life Insurance. Currently, the City provides basic life and accidental death and dismemberment (AD&D) insurance for approximately 1264 employees. The City sponsored basic life and accidental death and dismemberment insurance is provided at no cost to the employee. The amount of basic life/AD&D insurance is 100%of the employee's annual base salary rounded to the next highest $1000 to a maximum benefit of$50,000. Employees may elect to purchase supplemental life and accidental death and dismemberment and dependent life at a group rate. The group rate is usually more cost effective than an individual policy for the employee. Supplemental life, which includes AD&D and dependent life, is offered to all employees with approximately 947 currently participating. Minutes—September 13,2011 In July 2011, City staff began analyzing the City's life insurance cost. Staff also began working with the City's benefit consultant, Holmes Murphy & Associates to solicit bid proposals on the City's behalf. The City received two proposals including the incumbent's quote for basic life and AD&D, supplemental life and AD&D, and dependent life insurance. The proposers were incumbent carrier, Cigna and Minnesota Life. Upon receipt and review of the proposals, Minnesota Life was eliminated from consideration because their proposed rates were higher for basic and supplemental life coverage. Cigna's renewal rates for both basic life/AD&D, supplemental life/AD&D and dependent life remained the same as the current rates. Funds are available for this expenditure in the Employee Benefits Fund. Mayor Pro Tern Smith made a motion to APPROVE A RESOLUTION THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED TO ENTER INTO A THREE-YEAR CONTRACT WITH CIGNA FOR BASIC LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D), SUPPLEMENTAL LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT AND DEPENDENT LIFE INSURANCE EFFECTIVE JANUARY 1, 2012. Counciimember Get seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Resolution 11 - 264 4. Consider approving an amendment to the promissory note from Crockett Street Development, Ltd. Administration recommended Council approve an amendment to the promissory note from Crockett Street Development, Ltd, to restructure the terms of the note,specifically reducing the interest rate to 3.25% and consistent monthly payments of $24,332.99, beginning October 1, 2011, until the payoff on February 1, 2018. Crockett Street Development, Ltd., entered into a promissory note with the City of Beaumont on November 23, 1999. The note had an original interest rate of 5%and stated that"the rate of interest payable hereunder shall be subject to adjustment from time to time and may be increased as provided in the Loan Agreement to an amount equal to the rate of interest charged to Payee pursuant to the Contract for Loan Guarantee Assistance under Section 108, dated February 5, 1999." Subsequently the interest rate was increased to 7.76582% pursuant to Amendment No. 1, dated February 1, 2002. Crockett Street Development, Ltd., has requested a reduction in the current interest rate to 3.25%, down from 7.76582%. The City's HUD Section 108 Loan was refinanced in July of 2010, resulting in a lower interest rate. The loan has a serial structure with a separate interest rate for each installment we make. We pay interest twice a year and principle once a year. The rates range from .56% at August 1, 2011 to 3.12% upon payoff August 1, Minutes—September 13,2011 2018. Administration recommends granting the request. The note is currently structured the same way as the City's Section 108 Loan which includes principal payments that increase every twelve (12) payments and interest calculated accordingly, resulting in the monthly payment varying each month. Administration recommends the note be restructured to be equal monthly payments, maturing the same date as the original loan: monthly payments of$24,332.99 and payoff on February 1, 2018. This will allow Crockett Street Development, Ltd., to better plan for their payments. The original Promissory Note, Amendment No. 1, proposed Amendment No. 2, and the proposed amortization schedule is attached for review. The payments from the promissory note are applied to the City's semiannual payments on the Section 108 Loan. Reducing the interest rate will result in $288,664 less in interest to be received over the remainder of the loan, but does not adversely affect the City due to the reduction in the amount of interest owed on the Section 108 Loan as a result of the refinancing. Councilmember Pate made a motion to APPROVE A RESOLUTION THAT THE CITY COUNCIL OF THE CITY OF BEAUMONT APPROVES AN AMENDMENT NO.2 TO THE CITY'S LOAN AGREEMENT WITH CROCKETT STREET DEVELOPMENT, LTD. Councilmember Coleman seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Resolution 11 - 265 5. Consider granting a new solid waste collection and transportation service franchise to Liquid Vacserv, LLC. Administration recommended granting a solid waste collection and transportation service franchise to Liquid Vacserv, LLC. According to City Ordinance 22.05.101, no person shall engage in the business of collecting, hauling or transporting, in the city, any garbage, waste or refuse, without first having obtained a franchise from the City. Five (5) entities currently have nonexclusive franchise agreements with the City and are doing business in this area. Liquid Vacserv, LLC has requested that the City Council grant the company such franchise agreement. Liquid Vacsery is locally owned and operated with its corporate office located at 2715 Laurel Street in Beaumont. The requested franchise is generally the same as those previously approved by City Council. It provides for a term of one year from its effective date and a franchise fee of seven percent (7%) of gross revenues received for service. It also requires the entity to Minutes—September 13,2011 indemnify the City of Beaumont and provide insurance which names the City of Beaumont as a named insured. According to City Charter, franchise ordinances require readings at three (3) separate Council meetings, with the third not less than thirty (30) days from the first reading. The ordinance does not take effect until sixty (60) days after its adoption on the third and final reading.After passage,the ordinance must be published for four(4)consecutive weeks in a newspaper of general circulation in the city. All publication costs are paid by franchisee. Attached, is a copy of the franchise agreement for your review. This is third and final reading of the franchise ordinance. A franchise fee of seven percent (7%) of gross receipts is paid into the General Fund. Mayor Pro Tern Smith made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE GRANTING A FRANCHISE FOR SOLID WASTE COLLECTION AND TRANSPORTATION SERVICES TO LIQUID VACSERV, L.L.C. Councilmember Pate seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMSERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 11 - 066 6. Consider adopting an ordinance establishing the 7% contribution rate for Civilian employees who are members of the Texas Municipal Retirement System. Administration recommended approval. The City of Beaumont participates in the Texas Municipal Retirement System (TMRS), which is a pension system for municipal employees in the state of Texas. Participation in TMRS is mandatory and automatic for all regular full-time Police officers and Civilian employees.The City's existing retirement plan calls for Civilian employees to contribute 5% of their gross salary to TMRS and for Police officers to contribute 7% of their gross salary. The plan requires a 2 to 1 matching contribution from the City. Effective January 1, 2012,the City will increase the retirement contribution rate for Civilians to 7%. Increasing this rate will allow Civilian employees and Police officers to have comparable retirement plans. This change also allows the City to offer a competitive retirement plan that is offered by most sister cities. The TMRS ordinance requires the signature of the Mayor and City Clerk. The change has an estimated cost of$763,067, across all funds,which has been included in the FY 2012 budget. Minutes—September 13,2011 Mayor Pro Tern Smith made a motion to ADOPT AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM. "UPDATED SERVICE CREDITS" IN SAID SYSTEM ON AN ANNUAL BASIS FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO AT THE EFFECTIVE DATE OF THE ALLOWANCE ARE IN THE EMPLOYMENT OF THE CITY OF BEAUMONT; PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY;TO INCREASE THE RATE OF DEPOSITS TO THE TEXAS MUNICIPAL RETIREMENT SYSTEM BY THE EMPLOYEES OF THE CITY; AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE. Councilmember Pate seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 11 - 070 WORKSESSIONS * Review and discuss the Code Enforcement Process—Chris Boone Topics Discussed The Code Enforcement Division General Nuisance Abatement Program Goals and Objectives Environmental Court Activity Staffing Proactive Enforcement Enforcement Activities Special Projects Statistics for FY 2010 Program Challenges Weed Abatement Program Accomplishments Litter Abatement Junk Motor Vehicle Abatement * Review and discuss the Street Rehabilitation Program — Patrick Donart Topics Discussed Department Overview Blocking Cracking Surface Type of Beaumont Roadways Patches and Potholes Pavement Condition Survey Utility Cuts Longitudinal Street Cracking Roadway Ranking Criteria Alligator Cracking Budget for Streets Rutting Future Plans Ponds or Dips Edge Deterioration Minutes—September 13,2011 * Review and discuss the delivery of Emergency Medical Services—Ingrid Holmes Topics Discussed Month of August—call volume 1,463 Month of August - 5 Units on Street 90% of the time July— hired nine Paramedics, three completed training and have been assigned Two started training on Monday, September 12, 2011 Four will start training on September 26, 2011, by the end of September,2011 there will be five units on the street full time with one Fox truck full time In the process of hiring part time or casual paramedic as well as advanced EMT to increase the part time pull November, 2011 — Six trucks will be on the street Currently working on improving response time which has increased 80% Continue to look over the goals of improving clinical excellence * Review and discuss a request from Lighthouse United, Inc. —Chris Boone (Transformation Beaumont) Topics Discussed Mission- Empower and equip youth families and communities as agents of positive individual institutions and positive change To create the best Beaumont possible Rehab and paint 4 homes Funding Request— 2 events a year Budget— $1,250 for four wards —Totaling $10,000 Equipment - $5,000 COUNCILMEMBER COMMENTS COUNCILMEMBER COLEMAN- CONGRATULATED THE BEAUMONT POLICE DEPARTMENT ON A SUCCESSFUL 5K RUN ON LAST WEEK, ANNOUNCED THE AMERICAN CANCER SOCIETY"BARK FOR LIFE"WALK FOR YOUR DOG ON SEPTEMBER 24, 2011, YOU MAY CONTACT JOSH DAVIS, WITH THE AMERICAN CANCER SOCIETY AT 998-0056 FOR A REGISTRATION FORM, ALSO THE GIFT OF LIFE 5K RUN FOR JULIE RICHARDSON PROCTER WILL BE OCTOBER 1, 2011,ASKED THAT PAM BESSER,PASTOR OF WESLEY UNITED METHODIST CHURCH BE LIFTED IN PRAYER COUNCILMEMBER GETZ- COMMENTED ON THE 9/11 REMEMBRANCE CEREMONY GIVEN BY THE BEAUMONT COUNCIL OF GARDEN CLUBS AT TYRRELL PARK COUNCILMEMBER WRIGHT- COMMENTED ON THE 9111 PROGRAM HELD AT TYRRELL PARK, THANKED PATRICK DONART, CHRIS BOONE AND INGRID HOLMES FOR THEIR PRESENTATIONS Minutes—September 13,2011 COUNCILMEMBER PATE- COMMENTED ON 9111 AND THE SACRIFICES THAT HAVE BEEN MADE SINCE THAT TIME, ALSO THE LOSS OF JIM NICHOLS WHO IS THE GRANDFATHER OF CITY MANAGER KYLE HAYES, THOUGHTS AND PRAYERS ARE WITH THE FAMILY COUNCILMEMBER SAMUEL- ANOTHER GREAT DAY IN BEAUMONT MAYOR PRO TEM SMITH - CONDOLENCES TO THE HAYES FAMILY, HAPPY BELATED BIRTHDAY TO THE MAYOR, ANNOUNCED THAT THIS SATURDAY, SEPTEMBER 17, 2011, WILL BE TAKE YOUR LOVED ONE TO THE DOCTOR DAY, FROM 9:OOA.M.TO 1:00 P.M., CONCERT IN THE PARK AT CENTRAL PARK ON SATURDAY, SEPTEMBER 17, 2011, FROM 2:OOP.M. TO 8:OOP.M. CITY ATTORNEY COOPER- ABSENT CITY MANAGER HAYES- NONE MAYOR AMES - COMMENTED ON 9111 AND HOW THE CITIZENS OF SOUTHEAST TEXANS ARE VERY PATRIOTIC AND CARE A LOT ABOUT THE MILITARY AND FIRST RESPONDERS, RECAPPED THE CEREMONIES THAT OCCURRED DURING THE WEEK AND WEEKEND FOR 9111 Public Comments (Persons are limited to three minutes) None Open session of meeting recessed at 3:36 p.m. There being no action taken in Executive Session, Council adjourned. dio available pon request in the City Clerk's Office. _ Becky ArVs, hMybr ac Tina Broussard, City Clerk Minutes—September 13,2011