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HomeMy WebLinkAboutCC 2004-06-23 Minutes MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 - JUNE 23, 2004 - 4:00 P.M. City Council Present: Mayor Oscar Trevino Mayor Pro Tem David Whitson Councilman John H. Lewis Councilwoman Jo Cox Councilman Frank Metts, Jr. Councilwoman JoAnn Johnson Councilwoman Nancy Bielik Councilman Tim Welch (present at 4:22 p.m.) Staff Present: Larry J. Cunningham, City Manager Richard Torres, Assistant City Manager Ogden Bo Bass, Assistant City Manager Karen Bostic, Managing Director of Fiscal & Admin. Services Paulette Hartman, Assistant to the City Manager Patricia Hutson, City Secretary Larry Koonce, Director of Finance Clay Caruthers, Budget Manager Patrick Hillis, Human Resources Director Cameron Rowland, Human Resources Coordinator 1. CALL TO ORDER Mayor Trevino called the work session to order at 4:03 p.m. 2. IR 2004-066 DISCUSS CITY'S GROUP HEALTH PLAN City Manager Cunningham advised staff would be providing a mid-year update on the status of the city's health insurance program as well as discussing proposed changes to the health plan for 2005. Mr. Cunningham presented an outline of what staff would present. Mr. Patrick Hills, Human Resources Director, presented a PowerPoint presentation highlighting the performance of the health plan, major medical claims and projected health claims cost for fiscal year 2005. Mr. Hillis discussed the rising cost of health care cost in both the public and private sector and the challenges it presented. Council was briefed on the plan's performance and changes to the plan since presented last year. Council was provided with information on statistics for the group medical plan. Council was advised that about a nine percent increase was being budgeted for next year. The City Council Work Session Minutes June 23, 2004 Page 2 of 5 City is proposing to increase participant contributions and proposing cost sharing of 82% for City and 18% for the participants. Councilman Welch present at 4:22 p.m. Mr. Preston Pomykal, McGriff, Seibels & Williams of Texas, Inc., Health Advisor to the City, gave a general overview of self insuring a health plan, stop-loss insurance, and fully insuring a health plan. He discussed the definition of each, objectives and advantages and how each works. Mr. Pomykal discussed with Council the difference between self insurance and fully insuring a health plan. Mr. Pomykal explained when it is beneficial to be fully insured and why it is beneficial for the city to self-insure its medical plan. Council was provided with a cost analysis for a fully insured versus self- insured plan for fiscal year 2005. Mr. Larrry Koonce, Finance Director, briefed the Council on rebuilding the Health Plan reserves. Council was given information on the history of the reserves. Council was advised it was projected that $1.6 million would be needed in reserves by 2010. Mr. Koonce presented four funding options to rebuild the health insurance reserves. Mr. Hillis reviewed proposed strategies for the next year. Council was advised that the City would be seeking fully and self-insured quotes from large carriers, an increase in the monthly medical and dental premiums, adding a fourth premium tier and making various plan design changes to deductibles and medical co-pays. No changes are being proposed next year to the prescription program. Mr. Pomykal presented information on adding a third option to the city's plan - a Consumer Driven Healthcare Plan. Mr. Hills presented the proposed 2005 monthly premiums and the medical plan changes for 2005. Council was in favor of continuing with a self-insured plan, but Staff is to proceed with obtaining quotes on a fully-insured plan. Council consensus was to proceed with Option 1 for the reserving strategy and proceed with the changes to the health plan effective 2005. RECESS & BACK TO ORDER Mayor Trevino recessed the work session at 5:54 p.m. The work session was called back to order by Mayor Trevino at 6: 13 p.m. with all Council members present and the following staff members present: Larry J. Cunningham, City Manager; Richard Torres, Assistant City Manager; Ogden Bo Bass, Assistant City Manager; Karen Bostic, Managing Director of Fiscal & Admin. Services; Paulette Hartman, Assistant to the City Manager; Larry Koonce, Director of Finance; Clay Caruthers, Budget Manager; Margaret Ragus; and Budget Analyst; Ann Fuller, Financial Analyst. Mr. Cunningham presented opening comments. The purpose is to provide Council with preliminary information on the proposed 2004/05 budget, bring to Council's attention some pressing service and financial matters that will affect the budget and update the City Council Work Session Minutes June 23, 2004 Page 3 of 5 Council on the general outlook for the current fiscal year. The Mayor reiterated that information being presented is preliminary. Mr. Koonce, Finance Director, presented information on each of the fund balances for fiscal year ending 2003. Ms. Karen Bostic, Managing Director of Fiscal & Administrative Services, reviewed the current year revenues and expenditures. Ms. Paulette Hartman, Assistant to City Manager, provided an update on legislative issues that could impact the city's budget. Mr. Koonce provided Council with information on the preliminary tax roll for 2004/05. Mr. Koonce explained the effective tax rate and presented information on the preliminary effective tax rate calculation. Mr. Clay Caruthers, Budget Manager, highlighted the preliminary estimated 2004/05 revenues and expenditures. Staff presented Council with policy issues related to the preparation of the 2004/05 budget. Mr. Bass provided information on the Emergency Back-up System. Council was advised needs were largely identified in the recent storms and the resulting multiple day power outages. Staff is investigating options to provide expanded emergency back- up power. Policy questions to be considered are 1) should the city consider expanding its emergency back-up power protection; and 2) should the City consider expanding its emergency back-up power protection to include certain "non-first response" facilities and operations. Council expressed an interest in reviewing emergency response procedures in general. Council expressed interest in having TXU provide an update on what they are doing to prevent future multiple outages and length of time to restore power. Council would like for a TXU representative to update the Council at an upcoming Council meeting. Mayor Pro Tem Whitson asked that Citicable be included in the emergency response assessment. Ms. Bostic discussed the city's compensation plan and market adjustment policy. The policy question to be considered by Council: Is Council willing to consider options for maintaining a competitive compensation plan. Council consensus was they were willing to consider options to maintain competitive compensation. City Council Work Session Minutes June 23, 2004 Page 4 of 5 Mr. Torres provided information on expanding the city's emergency medical service by adding a third front line ambulance. Staff was asked to provide the Council with information on Northeast Transportation Services (NETS). Mr. Torres provided information on the expansion of the park system and the potential need for additional maintenance staff. Councilwoman Bielik brought up a question of neighborhood parks versus community parks and the city's maintenance of parks that are within walled neighborhoods. Councilwoman Bielik suggested using volunteers for maintenance of neighborhood parks through the Homeowners Associations. Mr. Cunningham suggested exploring the use of volunteers such as girls scouts and Keep North Richland Hills Beautiful Commission to help maintain the parks. Mr. Torres presented information on options to use public money to grow the city's economic base. Potential sources of funds could be the 4B sales tax, general fund, and utility fund. The primary use of the 4B sales tax has been for parks and recreation facilities but there are other eligible economic development uses possible. Council was asked to consider if they would be willing to explore the idea of utilizing 4B funds for various economic development incentives and would Council be willing to consider the use of general fund revenues or water and sewer fund revenues for similar economic development activities. Councilwoman Johnson requested a legal opinion on the use of 4B money for economic development versus parks before a decision is made by the Council. Staff presented updates on ongoing projects. Mr. Koonce provided an update on the long range replacement plans for building services and equipment. Mr. Bass updated the Council on the Impact Fee Study and the Water Master Plan. The impact fee process is expected to be complete by early January. Mr. Koonce presented an update on ongoing Utility Rate Study. The study was approved in the 2003/04 budget and began in January 2004. The 2004/05 proposed budget will include current rates and pass through increase. The result of the rate study is proposed for Council consideration in the fall and budget changes will be recommended at the same time. Mr. Bass presented an update on expansion of the Humane Services. Mr. Koonce provided service comparison information to other cities on general services and tax rates. Mr. Caruthers reviewed the budget calendar and key dates. City Council Work Session Minutes June 23, 2004 Page 5 of 5 ADJOURNMENT Mayor Trevino adjourned the work session at 9:17 p.m. ....',,'''\\\\\\\ .t='~~~ ~\CHL4~~III, .F~" ~~"" ATTEST: foQ::- n V=\ :~ \\í>~ ::I.L. r ,-:s ~o J~~ z m.... ~"T h x! \ ~y: 2:,.': ßI á.- ~I "'ß" atricia Hutson"~tit~~~ary ~\\\~,~" APPROVED: