HomeMy WebLinkAboutMinutes - City Council - Special - 10/22/2003CITY OF LUBBOCK
SPECIAL CITY COUNCIL MEETING
OCTOBER 22, 2003
9:30 A. M.
The City Council of the City of Lubbock, Texas met in regular session on the 22nd
day of October, 2003, in Committee Room 103, first floor, City Hall, 1625 13th
Street, Lubbock, Texas at 9:30 A. M.
9:34 A. M. CITY COUNCIL CONVENED
Committee Room 103, 1625 13th Street, Lubbock, Texas
Present: Mayor Marc McDougal, Mayor Pro Tem Victor Hernandez, Council
Member Gary O. Boren, Council Member Jim Gilbreath, Council
Member Tom Martin
Absent: Council Members Frank W. Morrison and T.J. Patterson
Council Member Morrison arrived at 9:45 A. M.
Council Member Patterson arrived at 9:55 A. M.
( 1.) Presentation to Council on 1999 Annexation Service Plan.
In 1999, the City of Lubbock annexed the land that is currently southwest
Lubbock. During that annexation process, a service plan was created for
services to be extended to that area. A copy of the service plan and the
south and west annexation study was provided in council backup.
FISCAL IMPACT:
None.
Not Applicable.
Randy Henson Senior Planner, made the presentation, which included a
progress report of what has been accomplished in the service plan.
Craig Farmer, Managing Director of Planning & Transportation and Don
Jennings, Superintendent of Streets and Chester Carthel, Chief Engineer,
Water Utilities, gave staff comments.
Mayor Pro Tern Hernandez asked Mr. Jennings for the annual cost
associated with maintaining an unpaved street, as opposed to a paved
street. Mr. Jennings stated that the unpaved street cost would be much
less.
Council Member Martin asked Interim City Manager Tommy Gonzalez if
there were any committees, boards or commissions currently existing,
which if directed by Council, could take a look at drainage, curb and
gutter, etc. and come up with some program.
Interim City Manager Gonzalez suggested that Council would need to
provide guidance and direction to enable staff to put this together.
Council Member Martin asked Mr. Gonzalez to have staff give Council
some options on this.
After some discussion of annexation, Council Member Boren asked if the
City of Lubbock should de -annex Carlisle? Craig Farmer recommended
that this doesn't happen.
Mayor Pro Tern Hernandez stated that one alternative to de -annexation
would be to do a cost benefit analysis on any area to be annexed in the
future and see if it is worthwhile to do. He also suggested taking a hard
look at instituting impact fees on annexed areas so that they pay their own
way.
The next item considered was Item 4.
Item 2 was the first item considered after City Council reconvened at
1:10 P. M.
( 2.) Presentation of the capital projects status report through September
30, 2003.
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October 22, 2003
Page 410
This item was considered following Item 4.
Melissa Trevino, Budget Manager, made a capital projects status report
through the 41h quarter of FY 2002-03 or September 30, 2003.
This document was created to assist the City Council in reviewing the
status of all current capital projects. The first report presented in this
format was prepared for the period ending December 31, 2002.
Currently, the City Council receives information on capital projects on a
monthly basis in the financial report. This report reflected the budget
amount for each project along with actual expenditures through respective
end date. Each project also showed an updated completion date.
The funds in the General Fund are:
1. 900 - Public Safety
2. 905 - Parks
3. 915 — Permanent Streets
4. 920 - Permanent Street (Seal Coating)
5. 925 - Street Lighting
6. 930 - Traffic
7. 940 - General Capital
8. 945 - General Facilities
The Enterprise and Internal Service Funds were included.
Council Member Martin talked about lighting and stated Council Member
Gilbreath had mentioned a fatality on North Quaker from 4`h Street to the
North Loop. Council Member Gilbreath stated from 4th to Erskine was
without lighting. Interim City Manager Gonzalez stated that he would
place this matter on a November agenda.
Council Member Martin asked about the west pressure zone (water) plan,
which calls for construction of a new water reservoir and pump station.
Terry Ellerbrook, Director of Water Utilities, gave comments. He stated
there should be an RFP this fall for the design of this construction and this
could be moved up and gotten back on track.
Council Member Martin asked if this would take a budget amendment.
Interim City Manager Gonzalez stated it would.
Council Member Martin then asked for a consensus of the Council to
direct staff to present this to the Water Commission and try to get an
expedited recommendation possibly to move the design phase of this up to
the current fiscal year.
Departmental staff was present to address any specific questions relative
to individual project status.
FISCAL IMPACT:
Not Applicable.
The next item considered was Item 7.
(3.) Presentation and discussion of proposed recommendation on the City
of Lubbock Group Health Plan.
This item was continued to the October 23, 2003 City Council
Meeting.
The City of Lubbock provides medical and dental insurance for all full-
time City of Lubbock employees. Employees have the option to purchase
medical and dental insurance for eligible dependents. Retired City of
Lubbock employees are allowed to retain medical coverage for themselves
and eligible dependents. The health insurance plan has been provided by
Blue Cross Blue Shield of Texas (BCBSTX) since December 1, 1999.
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October 22, 2003
Page 411
The City also offers two flexible spending accounts for all eligible
employees. The medical reimbursement account and dependent care
accounts are currently administered by CBCA Administrators.
A request for proposal (RFP) for the health insurance program and flex
administration was announced on August 8, 2003. The proposal requested
pricing for a minimum premium plan and/or an Administrative Service
Only (ASO) plan. The proposal requested reinsurance coverage with an
individual claims cap of $150,000 annually.
Fourteen proposals were received. The respondents submitting a package
for the medical, dental, prescription, and flex administration were:
Blue Cross Blue Shield of Texas
Dallas, TX
FirstCare
Lubbock, TX
ICON Benefit Administrators
Austin, TX
TML
Austin, TX
The City received 3 dental only proposals from:
Humana Dental
Dallas, TX
National Pacific Dental Insurance
Houston, TX
United Concordia Woodland Hills, CA
Three proposals were received from prescription benefit managers:
Walgreen Health Initiatives
Scott & White HP Pharmacy
Eckerd Health Services
Four flex administrators responded to the RFP:
Complink
Leggette Actuaries
The EPOCH Group
CBCA Administrators
Phoenix, AZ
Temple, TX
Pittsburgh, PA
Irving, TX
Dallas, TX
Overland Park, KS
Ft. Worth, TX
A Committee of employees, one retiree, and three citizens reviewed the
RFP results.
At the first Committee meeting, it was determined that the Texas
Municipal League (TML) response could not be considered, because it
provided only claims administration, with no insurance coverage. The
Committee decided that based on pricing, the top two proposals were the
proposals from Blue Cross and ICON. Annual funding for the two
finalists is:
Blue Cross — Minimum Premium Contract $14,780,340
Blue Cross — ASO Contract $14,378,443
ICON — ASO Contract $13,633,928
The FirstCare proposal excluded University Medical Center.
Presentations were scheduled to allow the two vendors to discuss their
proposal. After hearing the presentations, the Committee is concerned that
the ICON proposal was not particularly a monetary savings because it
only contains a 9 to 10 month claims liability proposal, that the discounts
quoted by ICON are substantially lower than Blue Cross, and that when
asked if the annual funding numbers in the quote were firm, the response
was that there are stipulations on the numbers.
Before the presentation, City staff was provided documentation by an
ICON representative stating that the discounts for the Lubbock area are
inpatient hospital 52%, outpatient 41.75%, and physicians 40.19%. Blue
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October 22, 2003
Page 412
Cross provided documentation stating that the discounts for the Lubbock
area are inpatient 72%, outpatient 55%, and physicians 41%.
During the presentation, the Committee was told by ICON representatives
that the numbers they provided were incorrect and ICON would secure a
contract with Covenant Health System to match the discounts offered by
Blue Cross.
The Committee met to discuss the information presented in the
presentations and unanimously determined that a final decision could not
be made until written verification is received that the discount contracts
are executed and that the numbers quoted are firm. It was determined that
Bill de Haas would negotiate with ICON to obtain a written guarantee.
Mr. de Haas will also request a final offering from Blue Cross.
FISCAL IMPACT:
None at this time.
There is no recommendation at this time.
( 4.) Presentation of an end of fiscal year report from the Interim City
Manager.
This item was considered following Item 1.
Tommy Gonzalez, Interim City Manager, presented a summary of the end
of the fiscal year report to Council. The purpose of the report was to
highlight the issues and solutions facing the City from an operational
perspective during the past seven months.
FISCAL IMPACT:
None.
Mayor Pro Tem Hernandez told Mr. Gonzalez he appreciated the report.
He stated that each month, issues arise which negatively impacts the City
of Lubbock. He suggested that in order to retain the public
trust/confidence, these be hit "head-on" in terms of the current issue that
hits the media and what is done to correct this issue.
11:28 A. M. CITY COUNCIL RECESSED
1:15 P. M. CITY COUNCIL RECONVENED
All council members were present except Mayor Pro Tem Hernandez
and Council Members Boren and Gilbreath.
Council Member Gilbreath arrived at 1:25 p.m.
Mayor Pro Tem Hernandez arrived at 1:55 p.m.
Council Member Boren arrived at 2:10 p.m.
The first item considered was Item 2.
( 5.) Presentation of the monthly financial reports for the month ending
August 2003.
This item was continued to the October 23, 2003 City Council
Meeting.
This information had been provided in council backup.
This information included:
1. Financial Analysis — Analysis provided in narrative form by Fund.
2. Financial Summary —
a. Balance Sheet; Statement of Revenue, Expenditures and
Changes in Fund Balance; Summary of Cash Balances; and
Monthly Financial Summary Reports for Airport Fund,
General Fund, Sewer Fund, Solid Waste Fund, Storm
Drainage Fund and Water Fund.
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Special City Council Meeting
October 22, 2003
Page 413
b. Capital Projects Summary by Fund (all funds).
Staff was prepared to address any questions.
FISCAL IMPACT:
None.
Staff recommended approval.
(6.) Presentation of the fourth quarter and annual investment report.
This item was continued to the October 23, 2003 City Council
Meeting.
As required by the Public Funds Investment Act (PFIA) and the City's
Investment Policy, this report must be given to the City Council on a
quarterly and annual basis. The presentation highlighted the City's
investment program meeting all criteria of the PFIA. The presentation
also provided summary information on the City's investment performance
and the current condition of the financial markets.
FISCAL IMPACT:
Not Applicable.
No action is required on this item.
(7.) Presentation of the final concept for the Pump Station 10 screening
wall located at 82"d and Memphis.
This item was considered following Item 2.
Mayor McDougal left the meeting at 2:30 P. M.
Chester Carthel, Chief Water Utilities Engineer, gave a presentation of the
final concept for the Pump Station 10 screening wall located at 82"d and
Memphis.
Due to structural problems, the existing 10,000,000-gallon drinking water
reservoir for Pump Station 10 (PS 10) needs replacement. Due to Texas
Commission of Environmental Quality (TCEQ) rules, the 7,000,000-
gallon replacement reservoir may not be buried below the groundwater
level. Therefore, it is necessary to place a significant portion of the new
reservoir above the surface, due to the high groundwater at the site.
A citizen's group was formed to advise City staff on the development of
methods to integrate the structure into the neighborhood. The citizen's
group recommended a screening wall with similar architecture to the
Kingsgate area. The City of Lubbock hired Chapman Harvey &
Associates to develop the selected alternative into a final concept.
Chapman Harvey & Associates will present the final concept to the
Council.
FISCAL IMPACT:
The architectural improvements are estimated to cost $400,000. Funding
for the project is from the Pump Station Rehab capital project in the Water
Capital Projects fund.
Staff recommended approval of the proposed concept.
(8.) Discuss the City of Lubbock's Federal legislative services.
This item was continued to the October 23, 2003 City Council
Meeting.
This Work Session item was to provide Council with the opportunity to
discuss contracting for federal legislative consulting services in the future.
Council does not currently have a contract in place for legislative
consulting services on the federal level. The possibility for a short-term
monthly contract as well as longer term contracts for this service exist.
FISCAL IMPACT:
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Special City Council Meeting
October 22, 2003
Page 414
The financial impact of the contract is dependent upon its terms.
Staff will act upon Council's recommendation.
3:00 P. M. COUNCIL ADJOURNED
There being no further business to come before Council, the meeting
adjourned.
Read and approved this ��— day of �i.th0,' _ 2005.
ATTEST:
R becca Garza, City Secretary
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