1993 09 23 CC MinutesMINUTES OF THE REGULAR SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
September 23, 1993
The City Council of the City of Baytown, Texas, met in regular session on
September 23, 1993, at 6:30 p.m. in the Council Chamber of the Baytown City Hall
with the following in attendance:
Eva Benavides
Manuel Escontrias
E. Frank Hinds, Jr.
Stephen DonCarlos
Rolland J. Pruett
Pete C. Alfaro
Bobby Rountree
Norman Dykes
Ignacio Ramirez
Lynda Kilgore
Absent: David Byford
Council Member
Council Member
Council Member
Council Member
Council Member
Mayor
City Manager
Asst. City Manager
City Attorney
Deputy City Clerk
Council Member
The meeting was opened with a quorum present, and Council Member
Escontrias offered the invocation, after which the following business was conducted:
Mayor Alfaro recognized a Boy Scout Troop in the audience.
Consider Approval of the Minutes for the Regular Session Held on September 9, 1993
Council Member DonCarlos moved for approval of the minutes of the regular
session held on September 9, 1993. Council Member Escontrias seconded the
motion. The vote follows:
Ayes: Council Members Benavides, Escontrias, Hinds,
DonCarlos and Pruett
Mayor Alfaro
Nays: None
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Minutes of the Regular Session - September 23, 1993
Consider Proposed Ordinance, Adopting the 1993 -94 City of Baytown Budget
Council Member Escontrias moved for approval of the 1993 -94 Budget. Council
Member Hinds seconded the motion. The vote follows:
Ayes: Council Members Benavides, Escontrias, Hinds,
DonCarlos and Pruett
Mayor Alfaro
Nays: None
ORDINANCE NO. 6774
AN ORDINANCE ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR,
BEGINNING OCTOBER 1, 1993, AND ENDING SEPTEMBER 30, 1994, IN
ACCORDANCE WITH THE CHARTER AND ORDINANCES OF THE CITY OF
BAYTOWN; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE
THEREOF. (Proposed Ordinance No. 930923 -1)
For memorandum regarding Health Insurance, see Attachment "A."
Receive 1993 Appraisal Roll as Certified by the Harris County Appraisal District
and
Receive Effective Tax Rate, Rollback Rate, and Collection Rate for 1993 Tax Year
and
Consider Proposed Ordinance, Fixing the Rate and Tax Levy for General Fund
Maintenance and Operation and Debt Service for the Fiscal Year Ending September
30, 1994
and
Consider Proposed Ordinance, Amending the Code of Ordinances, Chapter 15,
"Garbage, Trash and Brush," Section 14 -16 to Increase Collection Rate
and
Consider Proposed Ordinance, Amending Code of Ordinances, Chapter 31, "Utilities,"
Section Nos. 31 -56 and 31 -65 to Increase Water and Sewer Rates
and
Consider Proposed Ordinance, Modifying Agreement with BFI to Increase Routes for
Garbage Collection
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Minutes of the Regular Session - September 23, 1993
and
Consider Proposed Ordinance, Accepting Proposals Brokered Through J.E. Stone &
Associates for Administration of Medical and Dental Benefits Program for the City of
Baytown (For Proposal Review, see Attachment "B. ")
and
Consider Proposed Ordinance, Adopting the Baytown Area Water Authority Budget
for 1993 -94
and
Consider Proposed Ordinance, Approving A Contract with Sewell & Riggs for
Collection of Delinquent Ad Valorem Taxes for the City of Baytown
and
Consider Proposed Ordinance, Authorizing Agreement with Baytown Recycling Works
and
Consider Proposed Ordinance, Authorizing Agreement with Baytown /West Chambers
County Economic Development Foundation
and
Consider Proposed Ordinance, Authorizing Agreement With Goose Creek Stream
Development Committee
Council considered Agenda Items "3" through "14" as follows:
Receive 1993 Appraisal Roll as certified by the Harris County Appraisal District.
The Appraisal Roll was received September 4, 1993 from HCAD. In accordance
with Section 26.04 of the Texas Property Tax Code, the following values are
submitted:
Total Appraised Value $1,946,194,780
Total Taxable Value 1,640,417,950
Total Uncertified (Owner's value)
at Sept. 4, 1993 $34,008,135
We recommend approval.
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Minutes of the Regular Session - September 23, 1993
Receive effective tax rate, rollback rate, and collection rate for 1993 tax year.
In accordance with Section 26.04 of the Texas Property Tax Code, the Tax
Department submits for approval the effective tax rate and the rollback tax rate
of 0.78265 and 0.80018 per $ 100 valuation, respectively. These rates and
the method of calculation shall be published in accordance with Section 26.04
(e) of the Texas Property Tax Code. The Notice and Hearing Limit is 0.80612
(1.03 times the effective tax rate). If a proposed tax rate exceeds this amount,
the City must publish the required notice and hold a public hearing to discuss
the proposed tax rate. The City has historically used 100% of its collection
rate for its effective tax rate for calculation purposes. We recommend using
100% for fiscal year 1993 -94.
We recommend approval.
Proposed Ordinance No. 930923 -2 fixes the rate and tax levy for General Fund
Maintenance and Operation and for Debt Service for the fiscal year ending
September 30, 1994. This ordinance will fix the rate and tax levy for the
General Fund maintenance and operation for the fiscal year ending September
30, 1994 at $.44482 per $100.00 evaluation. This ordinance will fix the rate
and tax levy for Debt Service for the fiscal year ending September 30, 1994 at
$.29221 per $100.00 evaluation.
We recommend approval.
Proposed Ordinance No. 930923 -3 amends the Code of Ordinances, Chapter
14, "Garbage, Trash and Brush," Section 14 -16to increase collection rate. The
sanitation rate will increase $.16 per month as outlined in the proposed budget.
This will cover additional cost due to the increased volume of solid waste that
is taken to the landfill and the need to purchase a new garbage truck. The
monthly sanitation fee will increase from $11.66 to $11.82. The senior citizen
rate will increase from $8.90 to $9.06. The new rates will become effective
on October 1, 1993.
We recommend approval.
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Minutes of the Regular Session - September 23, 1993
Proposed Ordinance No. 930923 -4 amends the Code of Ordinances, Chapter
31, "Utilities" Section Nos. 31 -56 and 31 -65 to increase water and sewer
rates. Water and sewer rates are being increased (1) to cover increased water
costs for maintenance and operations, funding deficit in previous years and
funding the BAWA increase, and (2) bond debt service including reserve fund
requirements.
Water: From $1.91 to $2.08 per 1,000 gallons of water used.
Sewer: From $1.68 to $1.79 per 1,000 gallons of water used with
increase to the cap on residential from 10,000 to 12,000
gallons.
The minimum bill will change from $6.50 to $7.50 for the first 2,000 gallons
of water and sewer. The new rates will become effective October 1, 1993.
We recommend approval.
Proposed Ordinance No. 930923 -5 modifies our agreement with BFI to increase
routes for garbage collection. This will increase the number of collections from
5,912 to 7,868 beginning Monday, October 4, 1993. The contractor will be
collecting approximately 47% of our accounts with this increase. The new
contract areas are Middleton and Eva Maude.
The additional annual cost of the contract is $168,500. As discussed during
the budget work session, this contract will eliminate two positions in the Solid
Waste Division.
We recommend approval.
Proposed Ordinance No. 930923 -6 accepts proposals brokered through J.E.
Stone & Associates for administration of medical and dental benefits program
for the City of Baytown. This contract is for third party administration services
with (1) Philadelphia American Life Insurance Company (PALICO) for claims
administration which includes payment of claims and review for reasonable and
customary charges, (2) Cost Care a PPO network to manage claims on an
individual basis including direct contact with the patient's physician, and (3)
J.E. Stone & Assoc. for brokerage of our benefit program including stop loss
coverage.
J.E. Stone, our benefit consultant, received proposals from the following
providers and third party administrators:
930923 -6
Minutes of the Regular Session - September 23, 1993
Third Party Administrators PPO Networks
First Health
Healthcare Affordable
Boon - Chapman
Cost Care
Emperion
Emperion
PALICO
Managed Health Care
Provident
CAPP Care
After thorough review of our benefit needs, services provided and cost
consideration, we are recommending the services of Cost Care. The most cost
efficient way to utilize Cost Care is to pair their service with claims
administration /payment by Philadelphia American Life Insurance Company
( PALICO). The Cost Care Network includes San Jacinto Methodist, BayCoast
Hospital, as well as 27 additional hospitals in the Houston area. More
importantly, Cost Care includes six (6) of the top ten hospitals utilized by City
employees. The employee /retiree may continue to use his /her family physician.
The network is utilized at the point of referral to a specialist or hospitalization.
The estimated cost is: PALICO $72,890, Cost Care, $54,534, the stop loss
coverage brokered through J.E. Stone is $138,428 and J.E. Stone &
Associates is $ 19,032 for a total of $284,884. A proposal review is enclosed
in your packet.
We recommend approval.
Proposed Ordinance No. 930923 -7 adopts the Baytown Area Water Authority
Budget for 1993 -94. The BAWA budget is a total of $4,735,297, which is an
$8,105 increase (.0017 %) over fiscal year 92 -93. A copy of the budget is
attached to the ordinance. A brief history of BAWA is also included in your
packet. The budget has been reviewed and approved by the Baytown Area
Water Authority Board of Directors.
We recommend approval.
Proposed Ordinance No. 930923 -8 approves a contract with Sewell & Riggs
for collection of delinquent ad valorem taxes for the City of Baytown. Sewell
& Riggs will receive reasonable attorney's fees not to exceed fifteen percent
(15 %) as allowed by Section 33.48 of the Texas Property Tax Code. Council
made the decision at the August 26, 1993 to award the contract for collection
of delinquent ad valorem taxes to Sewell & Riggs. This ordinance approves the
contract.
We recommend approval.
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Minutes of the Regular Session - September 23, 1993
Proposed Ordinance No. 930923 -9 authorizes an agreement with Baytown
Recycling Works. This agreement specifies the City of Baytown pay $18,000
to Baytown Recycling Works to assist in funding the recycling drop off station.
We recommend approval.
Proposed Ordinance No. 930923 -10 authorizes an agreement with the
Baytown /West Chambers County Economic Development Foundation in the
amount of $25,000. The Foundation was formed for the purpose of promoting
and encouraging the formation of new businesses, the expansion of existing
businesses, the relocation of existing businesses, and the general diversification
of the economy in Baytown and West Chambers County. Funds were included
in the 1993 -94 budget. A copy of the Foundation's annual report is included
in your packet.
We recommend approval.
Proposed Ordinance No. 930923 -11 authorizes an agreement with the Goose
Creek Stream Development Committee in the amount of $7,500. This is the
fourth year for this contract. The Goose Creek Stream Development
Committee, Inc. has been working for three years to develop Phase I of the
Goose Creek Stream Greenbelt project along the stream between Decker Drive
and Texas Avenue. During the past year, the Committee has been working on
acquiring additional parcels for future phases of the Greenbelt and initiating site
development on Phase I. Completion of the playground through the Exxon
Volunteer Day program was one such effort undertaken by the committee
during the past year. The contractor for the greenbelt project recently began
site work on the remaining development elements of Phase I.
These funds are used for survey, title search, appraisal work, printing and
promotional expenses. A contract between the Goose Creek Stream
Committee and the City will provide a mechanism for funding a portion of these
expenses.
We recommend approval.
Council Member DonCarlos moved to approve agenda items "3" through "14,"
as recommended by the administration. Council Member Escontrias seconded
the motion.
930923 -8
Minutes of the Regular Session - September 23, 1993
Mr. Martin Hochberg, 4703 St. Andrews, addressed council to thank the city
for their continued support of the Baytown Recycling Works. He emphasized that the
original vision of the Baytown Recycling Works was to get recycling in the city. Now,
in this third year he challenges the leadership of this city to try to put them out of
business. The vision was never intended to be long term. The vote follows:
Council Member DonCarlos expressed his appreciation to Mr. Hochberg and his
volunteers for the job they do and for the success of the operation.
Ayes: Council Members Benavides, Escontrias, Hinds
DonCarlos and Pruett
Mayor Alfaro
Nays: None
ORDINANCE NO. 6775
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
FIXING THE RATE AND TAX LEVY FOR GENERAL FUND MAINTENANCE AND
OPERATION AND DEBT SERVICE FOR THE CITY OF BAYTOWN FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 1994, UPON ALL TAXABLE PROPERTY IN SAID CITY
OF BAYTOWN IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND
THE CHARTER PROVISIONS AND ORDINANCES OF SAID CITY; PROVIDING A
REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -2)
ORDINANCE NO. 6776
AN ORDINANCE AMENDING ARTICLE IV, "FINANCIAL ADMINISTRATION," SECTION
14 -16, "CHARGE FOR COLLECTION," OF CHAPTER 14, "GARBAGE, TRASH AND
BRUSH," OF THE CODE OF ORDINANCES TO PROVIDE FOR AN INCREASE IN
RATES; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF. (Proposed Ordinance No.930923 -3)
ORDINANCE NO. 6777
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AMENDING SECTION 31- 56(A)(1) OF CHAPTER 31, "UTILITIES" OF THE CODE OF
ORDINANCES TO INCREASE WATER RATES; AMENDING SECTION 31 -65(A) OF
CHAPTER 31, "UTILITIES" OF THE CODE OF ORDINANCES TO INCREASE SEWER
RATES; AND AMENDING SECTION 31- 65(B)(1) OF CHAPTER 31, "UTILITIES" OF
THE CODE OF ORDINANCES, CITY OF BAYTOWN, TEXAS; PROVIDING A
REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -4)
930923 -9
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6778
AN ORDINANCE AMENDING THE SOLID WASTE COLLECTION AND DISPOSAL
SERVICES CONTRACT TO INCLUDE ADDITIONAL ROUTES; AUTHORIZING PAYMENT
BY THE CITY OF BAYTOWN, THE SUM OF ONE HUNDRED SIXTY -EIGHT THOUSAND
FIVE HUNDRED AND NO /100 DOLLARS ($168,500.00); AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -5)
ORDINANCE NO. 6779
AN ORDINANCE ACCEPTING PROPOSALS BROKERED THROUGH J.E. STONE &
ASSOCIATES FOR INDIVIDUAL AND AGGREGATE STOP LOSS COVERAGE FOR
ADMINISTRATION OF THE MEDICAL AND DENTAL BENEFITS PROGRAM OF THE
CITY OF BAYTOWN; AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE
AND THE CITY CLERK TO ATTEST TO SAID CONTRACTS; AUTHORIZING THE
PAYMENT OF TWO HUNDRED EIGHTY -FOUR THOUSAND EIGHT HUNDRED EIGHTY -
FOUR AND NO /100 DOLLARS ($284,884.00) PURSUANT TO THE TERMS OF SAID
CONTRACTS; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -6)
ORDINANCE NO. 6780
AN ORDINANCE APPROVING THE BUDGET FOR THE BAYTOWN AREA WATER
AUTHORITY (BAWA) FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1993 AND
ENDING SEPTEMBER 30, 1994; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF. (Proposed Ordinance No. 930923 -7)
ORDINANCE NO. 6781
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND
THE CITY CLERK TO ATTEST TO A CONTRACT FOR THE COLLECTION OF
DELINQUENT TAXES WITH SEWELL & RIGGS, A PROFESSIONAL CORPORATION;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -8)
ORDINANCE NO. 6782
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND
THE CITY CLERK TO ATTEST TO A CONTRACT WITH BAYTOWN RECYCLING
WORKS, INC., AND AUTHORIZING PAYMENT OF THE SUM OF EIGHTEEN
THOUSAND AND NO /100 DOLLARS ($18,000.00) FOR THE PURPOSE OF
CONTINUING RECYCLING OPERATIONS IN THE CITY OF BAYTOWN; REPEALING
INCONSISTENT ORDINANCES; CONTAINING A SAVINGS CLAUSE AND
SEVERABILITY CLAUSE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -9)
930923 -10
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6783
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND
THE CITY CLERK TO ATTEST TO A CONTRACT WITH THE BAYTOWN AREA /WEST
CHAMBERS COUNTY ECONOMIC DEVELOPMENT FOUNDATION; AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF TWENTY -FIVE THOUSAND
AND NO /100 DOLLARS ($25,000.00); AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF. (Proposed Ordinance No. 930923 -10)
ORDINANCE NO. 6784
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND
THE CITY CLERK TO ATTEST TO A PROPERTY DEVELOPMENT CONTRACT WITH
GOOSE CREEK STREAM DEVELOPMENT COMMITTEE, INC. FOR LAND ACQUISITION
AND DEVELOPMENT OF THE GOOSE CREEK STREAM GREENBELT PROJECT;
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SEVEN
THOUSAND FIVE HUNDRED AND NO /100 DOLLARS ($7,500.00); AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -11)
Consider Proposed Ordinance, Accepting Proposal for Professional Consulting Services
for an Elevated Water Storage Tank Evaluation
A memo had been placed at council places recommending Tank Industry
Consultants. The memo contains some rules and regulations as they apply to public
water systems from the Texas Water Commission. Attached to the memo were two
letters informing the city that the elevated tank at Baker Road needed to be repainted,
and the tank near the Cedar Bayou Junior School needed to be repainted or removed.
Evaluations of the water tanks are required annually. The total amount of this project
will be $58,250, which will be broken down into four areas. One will be to perform
the evaluation of the Baker Road elevated storage tank, including interior and exterior
coatings at a cost of $7,495; two, to develop plans and specifications for the repairs
and painting of that same tank at a cost of $8,950; three, to develop plans and
specifications for the disassembly and removal of the Cedar Bayou elevated storage
tank at a cost of $4,950 and four, to perform an evaluation of all remaining elevated
storage tanks as required by the Texas Water Commission at a cost of $36,855.
Council Member DonCarlos moved for the adoption of the ordinance accepting
the proposal for professional consulting services for an elevated water storage tank
evaluation. Council Member Benavides seconded the motion.
Council Member DonCarlos inquired if the removal of the Cedar Bayou elevated
storage tank would effect the water pressure in that area. City Manger, Bobby
Rountree, responded that the tank has been out of service since the installation of the
large elevated tank on Massey Tompkins. All other tanks are in use.
930923 -11
Minutes of the Regular Session - September 23, 1993
The vote follows:
Ayes: Council Members Benavides, Escontrias, Hinds,
DonCarlos and Pruett
Mayor Alfaro
Nays: None
ORDINANCE NO. 6785
AN ORDINANCE ACCEPTING THE PROPOSAL OF TANK INDUSTRY CONSULTANTS
(TIC) FOR THE PROFESSIONAL CONSULTING SERVICES FOR AN ELEVATED WATER
STORAGE TANK EVALUATION AND AUTHORIZING THE PAYMENT BY THE CITY OF
BAYTOWN OF THE SUM OF FIFTY -EIGHT THOUSAND TWO HUNDRED FIFTY AND
NO /100 DOLLARS (558,250.00); MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -12)
Consider Proposed Ordinance, Authorizing Contract with Safeway Van Service
Bayshore Community Development, Inc. has gone out of business. This
contract will basically continue the services provided by that organization. Safeway
Van Service will provide transportation services to low income citizens of Baytown.
Funding for this contract will come from Community Development Block Grant funds.
This item in the amount of $26,000 was approved by council when the CDBG
application was submitted to HUD. This will continue the current low income
transportation services for persons in the city limits. Within the city, service is
provided with taxicabs, and trips are reimbursed for the actual fare charge.
Transportation service is provided to limited destinations in Pasadena and Channelview
several days per week at a cost of $6.00 per ride, while service to Houston is
provided several days per week at a cost of $12.00 per ride. This is a continuation
of the service initiated with Mr. Tommy Bright in August.
Council Member Pruett moved for adoption of the ordinance. Council Member
Benavides seconded the motion.
The City Manager mentioned that a taxicab application has been received from
another cab company. An item regarding this will be on the next agenda. This
company will have to prove a need for additional service. If at this time next year,
there are two companies providing this service, bids will have to be taken.
930923 -12
Minutes of the Regular Session - September 23, 1993
The vote follows:
Ayes: Council Members Benavides, Escontrias, Hinds,
DonCarlos and Pruett
Mayor Alfaro
Nays: None
ORDINANCE NO. 6786
AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
AND THE CITY CLERK TO ATTEST TO A CONTRACT WITH SAFEWAY VAN SERVICE
TO PROVIDE TRANSPORTATION SERVICES TO LOW INCOME CITIZENS OF
BAYTOWN; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF
TWENTY -SIX THOUSAND AND N01100 DOLLARS ($26,000.00); AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -13)
Consider Proposed Ordinance, Amending Chapter 7, "Buildings" of the Code of
Ordinances, Section 7 -6, "Building Permit Fee Schedule," by adding Section 7 -6(d)
"Demolition Permit Fees"
This ordinance will establish two permit fees. A $25 permit fee has always
been charged for a demolition permit, although the ordinance requiring a demolition
permit does not set one. This ordinance will also set a fee of $75 to allow the city
to collect administrative costs from a property owner who gets a demolition permit
after the Urban Rehabilitation Standards Boards has issued a notice to take bids for
demolition, and the staff has advertised for bids. A notice for demolition has to be
published twice in the paper before bids can be taken. The cost for this is
approximately $50. This fee will help recoup some of the expenses incurred when a
property owner comes to the Urban Board after these steps have been taken and then
wants to obtain a demolition permit.
Council Member Escontrias moved for adoption of the ordinance. Council
Member DonCarlos seconded the motion. The vote follows:
Ayes: Council Members Benavides, Escontrias, Hinds,
DonCarlos and Pruett
Mayor Alfaro
Nays: None
930923 -13
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6787
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AMENDING SECTION 7 -6, "BUILDING PERMIT FEE SCHEDULE" OF CHAPTER 7,
"BUILDINGS" OF THE CODE OF ORDINANCES OF THE CITY OF BAYTOWN, TEXAS
BY ADDING A SECTION 7 -6(d), "DEMOLITION PERMIT FEES" SETTING THE FEES
FOR DEMOLITIONS; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS
CLAUSE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -14)
Consider Proposed Resolution, Recognizing that the City Council of Baytown, Texas,
Understands that MWPP Environmental Audit for NPDES TX002017,TX0020109 and
TX0072834 (East, West and Central Sewer Districts) Has Provided Sufficient Funding
for the Proper Operation of the Treatment Plants and Collection Systems
A work session was held prior to the council meeting to receive this audit. The
audit is part of a nationwide program mandated by the Environmental Protection
Agency to provide them with information on an annual basis concerning the condition
of the infrastructure of sanitary sewer systems permitted by them. This resolution
states that council recognizes and understands the audit and has provided sufficient
funding for the proper operation of the treatment plants and collection systems.
Council Member Pruett moved for approval of this resolution. Council Member
Escontrias seconded the motion.
Council Member Escontrias commented that this is an excellent report, and in
one case we did better than the standard and probably set a new standard. He asked
the administration to provide that information to the regulating agencies.
The vote follows:
Ayes: Council Members Benavides, Escontrias, Hinds,
DonCarlos and Pruett
Mayor Alfaro
Nays: None
RESOLUTION NO. 1187
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
RECOGNIZING THAT THE CITY COUNCIL UNDERSTANDS THE AUDITS OF AND HAS
PROVIDED SUFFICIENT FUNDING FOR THE PROPER OPERATION OF THE CITY
TREATMENT PLANTS AND COLLECTION SYSTEMS; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
930923 -14
Minutes of the Regular Session - September 23, 1993
Consider Plans and Specifications for Development of Central Little League Baseball
Facilities and Authorize Advertisement for Bids
Plans and specifications for the Central Little League Park have been prepared
by Busch, Hutchison & Associates. Estimated cost of these facilities is $154,500.
The plans do not include construction of the restroom and concession facility, parking
areas, or labor for installation of the lighting systems. The Central Little League has
committed to seeking donations of funds and labor to complete these additional items.
Plans are to remove the light fixtures from the Pelly Field, retrofitting them for
replacement at the new site at a savings of $5,000. The Pelly Fields will be used as
practice fields.
Jim Bortner, a representative from Central Little League, addressed council to
confirm their commitment to this project.
Council Member Benavides expressed concern as to adequate lighting at Pelly
Park once the lights are removed. She also expressed concern about the "down time"
at all the parks when there are no games. Mayor Alfaro responded that the down
time issue is something that needs to be referred to the Youth Commission.
Council Member Pruett stated that Pelly Field is losing the little league, but
other groups may wish to utilize the facility; therefore, he opposed removal of the
lights.
Council Member DonCarlos stressed the need for two lighted fields and inquired
whether the $5,000 could come from another source.
David Black of Busch - Hutchison responded that we could bid the item with
them retrofitting and then bid it with a whole new set.
Council Member Hinds moved to approve the plans and specifications for
development of Central Little League Baseball Facilities and authorize advertisement
for bids with the understanding that council wants two bids on the lights - -one
retrofitting and the other to provide a new set of lights. Council Member Escontrias
seconded the motion.
Councilman Pruett stressed that he would be opposed to the removal of lights
from Pelly Park.
Mayor Alf aro acknowledged that Councilman Pruett had made his feelings very
clear, but reminded council that the motion included going out for two bids on the
lighting - -one for retrofitting and the other for new lights in order that council may
address the issue raised by Councilman Pruett. The vote follows:
930923 -15
Minutes of the Regular Session - September 23, 1993
Ayes: Council Member Escontrias, Hinds, DonCarlos
and Pruett
Mayor Alfaro
Nays: Council Member Benavides
20. Consent Agenda:
Council Considered the Consent Agenda as follows:
a. Proposed Ordinance No. 930923 -15 authorizes closure of through traffic
on a portion of Brownwood Drive. As the City has acquired property
along both sides of the roads in the Brownwood Subdivision, the City
has closed the roadway segments. Closure of the streets has reduced
illegal dumping, speeding, and other illegal activities. This proposed
ordinance will only involve closure of the road to through traffic. The
City does not own all property along both sides of the street; therefore,
only a barricade can be placed across the road. By doing so, property
owners may have access to all their property on either side of the
barricade. Schreck Street will then become the only entrance to
Brownwood. This is a recommendation of the Growth Management and
Development Advisory Commission.
We recommend approval.
b. Proposed Ordinance No. 930923 -16 establishes No Parking along
Huggins Street from its intersection with Wisconsin to the alleyway. A
request has been made that a No Parking Zone be designated in this area
to address problems of impassability due to parking along Huggins
Street, street flooding resulting from heavy rain, and visual obstructions
for traffic entering Huggins Street. This is a recommendation of the
Growth Management and Development Advisory Commission.
We recommend approval.
930923 -16
Minutes of the Regular Session - September 23, 1993
C. Proposed Ordinance No. 930923 -17 authorizes payment to Deloitte &
Touche for the 1993 Audit in the amount of $71,000. In accordance
with the agreement with Deloitte & Touche, the 1993 audit cost
represents year two of a five year agreement. The contract totals
$69,000. As provided for in the contract, an adjustment for inflation of
3% has been added for a total of $71,000 for the 1993 audit. Included
in your packet is a memo from Mr. Mercer regarding the audit.
We recommend approval.
d. Proposed Ordinance No. 930923 -18 approves final payment in the
amount of $13,350.61 to Tri -Tex Company for Cedar Crossing Phase II
Water and Sanitary Sewer Project. This project included installation of
water and sanitary sewer lines to serve Mobley Company, Inc. USX
Realty is paying all construction costs. The original contract amount
was $117,554.50. Three change orders totaling $12,459.61 made the
final contract amount $130,014.11.
We recommend approval.
e. Proposed Ordinance No. 930923 -19 approves final payment in the
amount of $28,812.75 to BRH- Garver Construction Company for the
Alamo School Sidewalk Project and Sidewalk Rehabilitation Project. This
project included removal and replacement of approximately 25,000 linear
feet of sidewalks in Britton Cravens, Craigmont, Allenbrook, Whispering
Pines and Kingsbend Subdivisions. The original contract amount was
$244,194.20. Two change orders totaling $43,466.39 plus an overrun
of $46.69 make the final contract amount $287,707.28.
We recommend approval.
f. Proposed Ordinance No. 930923 -20 authorizes a contract with Interface
Employee Assistance Program, Inc. in the amount of $16,260. Interface
Employee Assistance Program provides six free counseling sessions per
incident for the employee and their family members. It is designed to
help the employee and their immediate family members with any type of
personal problem(s) that may be affecting their life. The EAP program
also serves as a defense for our Drug Testing and Rehabilitation Program.
We recommend approval.
930923 -17
Minutes of the Regular Session - September 23, 1993
g. Proposed Ordinance No. 930923 -21 awards a contract for removing
pumps and plugging abandoned water wells to Bussell & Son, Inc. in the
amount $17,983 Two bids were received. This project includes plugging
four (4) wells, and removing the pumps and plugging seven (7) wells
located throughout the City. The Texas Water Commission requires all
abandoned wells to be plugged. These wells are no longer necessary.
Nine other city wells are still operational and are used for emergencies
only.
We recommend approval.
h. Proposed Ordinance No. 930923 -22 authorizes a contract with MPS
Group for Organizational /Supervisory Development and Training and
authorizes payment in the amount of $5,000 for the contract period of
Oct. 1, 1993 through March 31, 1994. The training will be conducted
on -site and is specifically geared to the needs of our first line
supervisors, crew leaders, foremen, and division heads. The follow
topics will be covered:
Communication: What is it? Why is it so hard?
Communication: Overcoming barriers
Communication: Nonverbal. Effective questioning.
Conflict Management
Decision Making
Getting Along: What's Wrong
Time Management
An evaluation will be conducted of the participants to determine the
effectiveness of the training project.
We recommend approval.
L Proposed Ordinance No. 930923 -23 authorizes renewal of a lease for
Houston HIDTA (High Intensive Drug Traffic Area) warehouse with
Trammell Crow Company in the amount of $30,396. This is a yearly
lease which is renewed for the existing HIDTA warehouse. The HIDTA
Steering Committee and Director have reviewed the lease amendment
and have approved the expenditure of HIDTA funds.
We recommend approval.
930923 -18
Minutes of the Regular Session - September 23, 1993
j. Proposed Ordinance No. 930923 -24 authorizes an agreement with the
Drug Enforcement Agency concerning management of HIDTA Funds by
the Director of the Harris County Organized Crime and Narcotics Task
Force. This ordinance will authorize a contract between DEA and the
City of Baytown authorizing the director of the Harris County Organized
Crime and Narcotics Task Force to renew their agreement with the
United States Department of Justice, Drug Enforcement Agency (DEA)
to accomplish the objectives of the Houston Metropolitan High Intensity
Drug Trafficking Program.
We recommend approval.
k. Proposed Ordinance No. 930923 -25 authorizes the sole source purchase
of surveillance equipment for the Harris County Organized Crime
Narcotics Task Force from Aspect Technology and Equipment, Inc. in the
amount of $4,195.
We recommend approval.
I. Proposed Ordinance No. 930923 -26 authorizes payment to McNaughton
Book Lease Service in the amount of $13,152.38. This is a base
subscription which promptly provides popular new fiction and non - fiction
titles which are already catalogued and processed. The list price is
$13,420.80. A discount of 2% is allowed for payment for 12 months'
service in advance, provided payment is made within 60 days from the
date of the invoice. The subscription is from December 1, 1993 to
November 30, 1994.
We recommend approval.
M. Proposed Ordinance No. 930923 -27 authorizes the sole source purchase
of a Utility Billing Program from Pentamation in the amount of $23,100.
The software will include the Utility Billing Manager, 80 hours of
training /implementation, 40 hours of program modification, travel,
lodging and meals. This utility billing system automatically updates the
accounting system on a monthly basis. This process is currently being
performed manually.
We recommend approval.
930923 -19
Minutes of the Regular Session - September 23, 1993
n. Proposed Ordinance No. 930923 -28 awards the bid for purchase of an
automobile for utility billing to Knapp Chevrolet, Inc. in the amount of
$15,976.00. Invitations to bid were mailed to six suppliers and we
received two bids and one no -bid. It will be used by the Utility
Department in servicing water meter accounts.
We recommend approval.
o. Proposed Ordinance No. 930923 -29 awards the annual hot mix asphalt
contract to Parker Lafarge, Inc. in the amount of $22,367.50.
Invitations to bid were mailed to three suppliers and we received two
bids. This asphalt is used for pothole patching of streets, city parking
lots, and various other applications.
We recommend approval.
P. Proposed Ordinance No. 930923 -30 awards the bid for purchase of
playground equipment to Thompson Recreation Products in the amount
of $4,956.06. Invitations to bid were mailed to six suppliers and we
received three bids. This playground equipment will be used to replace
old, worn out equipment in various parks.
The low bidder on Item #3 & 4, Miracle Recreation Products, does not
meet specifications. They bid plastic and we specified aluminum.
Therefore, we recommend the next low bidder meeting all specifications.
We recommend approval.
q. Proposed Ordinance No. 930923 -31 awards the annual trailer service
contract to Graham Towing and Recovery in the amount of $3,700.00.
Invitations to bid were mailed to two suppliers and we received two
bids. This bid is for a trailer, truck, and driver to haul a John Deere 690
Excavator Track Unit from one location to another within the City of
Baytown's jurisdiction for the Public Works Department.
We recommend approval.
930923 -20
Minutes of the Regular Session - September 23, 1993
r. Proposed Ordinance No. 930923 -32 awards the bid for purchase of
bulldozer tracks to Mustang Tractor & Equipment Co. in the amount of
$6,110.94. Invitations to bid were mailed to two suppliers and we
received three bids. This bid is for parts to repair a 1985 Caterpillar 13313
Dozer for the Public Works Department.
We recommend approval.
S. Proposed Ordinance No. 930923 -33 awards the annual fire retardant
uniform contract to Uniforms of Texas in the amount of $46,860.00.
Invitations to bid were mailed to six suppliers and we received three bids
and two no -bids. This contract is used by the Fire Department. This is
a one year contract that will be spent over two fiscal years during which
the Fire Department will replace worn out uniforms with new fire
retardant ones.
We recommend approval.
t. Proposed Ordinance No. 930923 -34 awards the bid for purchase of a
314 ton truck with a lift gate to Ron Craft Chevrolet -Geo- Olds - Cadillac
in the amount of $14,999.74. Invitations to bid were mailed to five
suppliers and we received two bids and one no -bid. This truck is for the
Police Department Animal Control Division.
We recommend approval.
U. Proposed Ordinance No. 930923 -35 awards the bid for purchase of a
vehicle mounted cage to Deerskin Manufacturing in the amount of
$4,440.00. Invitations to bid were mailed to one supplier and we
received one bid. This cage will be used by the Police Department
Animal Control Division. We researched the different brands available
and found the aluminum cages the most practical and cost effective for
our needs. The aluminum cages slide into the rear of the pickup and are
the same brand as our existing cages. The slide in cages will be used in
new trucks as we have to replace the vehicle. The fiberglass cages are
too expensive. The other brands available are chassis mounted. The
bed of the pickup would have to be removed for the cages to be
mounted.
We recommend approval.
930923 -21
Minutes of the Regular Session - September 23, 1993
V. Proposed Ordinance No. 930923 -36 awards the bid for purchase of a
314 ton truck with utility bed to Ron Craft Chevrolet -Geo -Olds- Cadillac
in the amount of $15,816.55. Invitations to bid were mailed to six
suppliers and we received two bids. This truck is in the Wastewater
Collection Division.
We recommend approval.
W. Proposed Ordinance No. 930923 -37 awards the bid for a high pressure
hot water washer to Adkins Equipment Co. in the amount of $6,650.00.
Invitations to bid were mailed to four suppliers and we received one bid.
This high pressure hot water washer to be used by the Public Works
Garage.
We recommend approval.
X. Proposed Ordinance No. 930923 -38 awards the bid for purchase of an
aerator to Watson Distributing Company, Inc. in the amount of
$3,195.00. Invitations to bid were mailed to seven suppliers and we
received one bid and three no -bids. This will be used by the Parks and
Recreation Department for use on athletic fields and compacted soils in
our parks.
We recommend approval.
Y_ Proposed Ordinance No. 930923 -39 accepts proposal for purchase of a
Microfilm Planetary Camera. Proposals were mailed to four suppliers
and we received one proposal and one no bid. The process of sealed
competitive proposals does not allow for pricing offered to be revealed
to the public until after the contract is awarded. A tabulation sheet will
be given to you at the council meeting. Information is available if council
wishes to review this prior to award. This camera will be used in the
Police Records Division to microfilm all records that go to the Police
Department. It will replace the old camera that is outdated and slow.
We recommend approval.
930923 -22
Minutes of the Regular Session - September 23, 1993
Z. Proposed Ordinance No. 930923 -40 awards the bid for purchase of a
side loading solid waste collection vehicle to Houston Peterbilt, Inc. in
the amount of $99,047.00. Invitations to bid were mailed to ten
suppliers and we received six bids, three bids from the same company.
This side loading vehicle is to be used by the Public Works Solid Waste
Department. This is the truck approved in the 93 -94 budget. It was bid
early because of the lengthy delivery time required. If council does not
approve this item for the 93 -94 budget, we will reject this bid item.
We recommend approval.
aa. Proposed Ordinance No. 930923 -41 awards the annual sulfur dioxide
contract to Jones Chemical, Inc. in the amount of $28,560.00.
Invitations to bid were mailed to four suppliers and we received two bids
and one no -bid. This contract is used by the Wastewater Treatment
Plants for dechlorination.
We recommend approval.
bb. Proposed Ordinance No. 930923 -42 awards the annual water meter
contract for a total of $54,473.73 as follows :
Badger Meter, Inc. - Sec. I, Item #1 $35,175.00
Golden Triangle - Sec. I, Item #2 2,450.00
Municipal Pipe & Fab. Co. - Sec. I, Items #3 and 4 2,260.26
Industrial International - Sec. II, Items 5a - 9b. 14,588.47
$54,473.73
Invitations to bid were mailed to eleven suppliers and we received five bids and
two no -bids.
We recommend approval.
CC. Proposed Ordinance No. 930923 -43 awards the annual traffic paint contract to
Trantex, Inc. in the amount of $8,866. Invitations to bid were mailed to six
suppliers and we received two bids and three no -bids. This contract is used by
the Traffic Department for street marking.
We recommend approval.
930923 -23
Minutes of the Regular Session - September 23, 1993
dd. Proposed Ordinance No. 930923 -44 awards the demolition project for
804 Martin Luther King to All Texas Demolishing in the amount of
$3,847. Ten bid packages were picked up and one bid was submitted.
We recommend approval.
Council Member Escontrias moved for the approval of the Consent Agenda,
items "a" through "dd." Council Member Hinds seconded the motion. The vote
follows:
Ayes: Council Members Benavides, Escontrias, Hinds.
DonCarlos and Pruett
Mayor Alfaro
Nays: None
For Bid Tabulations, see Attachments "c" through "r."
ORDINANCE NO. 6788
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE CLOSURE OF BROWNWOOD DRIVE IN BROWNWOOD
SUBDIVISION TO THROUGH TRAFFIC; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF. (Proposed Ordinance No. 930923 -15)
ORDINANCE NO. 6789
AN ORDINANCE DESIGNATING A NO- PARKING ZONE ALONG HUGGINS STREET
FROM ITS INTERSECTION WITH WISCONSIN TO THE ALLEYWAY; REPEALING
ORDINANCES INCONSISTENT HEREWITH; PRESCRIBING A MAXIMUM PENALTY OF
TWO HUNDRED AND NO /100 DOLLARS ($200.00) FOR EACH VIOLATION; AND
PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -16)
ORDINANCE NO. 6790
AN ORDINANCE AUTHORIZING THE PAYMENT OF SEVENTY -ONE THOUSAND AND
NO/100 DOLLARS ($71,000.00) TO DELOITTE & TOUCHE AS THE COST FOR THE
1993 AUDIT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -17)
930923 -24
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6791
AN ORDINANCE AUTHORIZING FINAL PAYMENT OF THE SUM OF THIRTEEN
THOUSAND THREE HUNDRED FIFTY AND 61/100 DOLLARS ($13,350.61) TO TRI-
TEX CO. FOR THE CEDAR CROSSING PHASE 11 WATER AND SANITARY SEWER
PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -18)
ORDINANCE NO. 6792
AN ORDINANCE AUTHORIZING FINAL PAYMENT OF THE SUM OF TWENTY -EIGHT
THOUSAND EIGHT HUNDRED TWELVE AND 75/100 DOLLARS ($28,812.75) TO
BRH- GARVER CONSTRUCTION CO. FOR THE ALAMO SCHOOL SIDEWALK PROJECT
AND SIDEWALK REHABILITATION PROJECT; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF. (Proposed Ordinance No. 930923 -19)
ORDINANCE NO. 6793
AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE
AND THE CITY CLERK TO ATTEST TO A PROFESSIONAL SERVICES CONTRACT
WITH INTERFACE EMPLOYEE ASSISTANCE PROGRAM, INC.; AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SIXTEEN THOUSAND TWO
HUNRED SIXTY AND N0 /100 DOLLARS ($16,260.00); AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -20)
ORDINANCE NO. 6794
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO
EXECUTE AND ATTEST TO A CONTRACT WITH BUSSEL & SON, INC. FOR THE
REMOVAL OF PUMPS AND PLUGGING OF ABANDONED WATER WELLS;
AUTHORIZING PAYMENT OF THE SUM OF SEVENTEEN THOUSAND NINE HUNDRED
EIGHTY -THREE AND NO /100 DOLLARS ($17,983.00); MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -21)
ORDINANCE NO. 6795
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND
THE CITY CLERK TO ATTEST TO AN ORGANIZATIONAL DEVELOPMENT AND
SUPERVISORY TRAINING CONSULTING CONTRACT WITH MPS GROUP;
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF FIVE
THOUSAND AND NO/100 DOLLARS ($5,000.00); AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -22)
930923 -25
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6796
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN AUTHORIZING
RENEWAL OF THE LEASE AGREEMENT ON BEHALF OF THE CITY OF BAYTOWN FOR
WAREHOUSE SPACE FOR THE TIME PERIOD OF NOVEMBER 1, 1993 THROUGH
OCTOBER 31, 1994; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 920923 -23)
ORDINANCE NO. 6797
AN ORDINANCE AUTHORIZING AND DIRECTING THE DIRECTOR OF THE HARRIS
COUNTY ORGANIZED CRIME AND NARCOTICS TASK FORCE TO EXECUTE AN
AGREEMENT WITH THE UNITED STATES DEPARTMENT OF JUSTICE; DRUG
ENFORCEMENT ADMINISTRATION (DEA) FOR THE MANAGEMENT OF HIDTA
FUNDS; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -24)
ORDINANCE NO. 6798
AN ORDINANCE AUTHORIZING THE PAYMENT OF THE SUM OF FOUR THOUSAND
ONE HUNDRED NINTY -FIVE AND N0 /100 DOLLARS ($4,195.00) TO ASPECT
TECHNOLOGY AND EQUIPMENT, INC. AS THE SOLE SOURCE FOR THE PURCHASE
OF SURVEILLANCE EQUIPMENT; MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -25)
ORDINANCE NO. 6799
AN ORDINANCE AUTHORIZING THE PAYMENT OF THIRTEEN THOUSAND ONE
HUNDRED FIFTY -TWO AND 38/100 DOLLARS ($13,152.38) TO McNAUGHTON
BOOK LEASE SERVICE FOR BOOK LEASING OF POPULAR NEW TITLES; MAKING
OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF. (Proposed Ordinance No. 930923 -26)
ORDINANCE NO. 6800
AN ORDINANCE AUTHORIZING THE PAYMENT OF THE SUM OF TWENTY -THREE
THOUSAND ONE HUNDRED AND NO /100 DOLLARS ($23,100.00) TO
PENTAMATION AS THE SOLE SOURCE FOR THE UTILITY BILLING SOFTWARE;
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -27)
930923 -26
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6801
AN ORDINANCE ACCEPTING THE BID OF KNAPP CHEVROLET, INC. FOR THE
PURCHASE OF A FOUR -DOOR SEDAN AND AUTHORIZING PAYMENT BY THE CITY
OF BAYTOWN, THE SUM OF FIFTEEN THOUSAND NINE HUNDRED SEVENTY -SIX
AND NO /100 DOLLARS ($15,976.00); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -28)
ORDINANCE NO. 6802
AN ORDINANCE ACCEPTING THE BID OF PARKER LAFARGE, INC. FOR THE ANNUAL
HOT MIX ASPHALT CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF
BAYTOWN, THE SUM OF TWENTY -TWO THOUSAND THREE HUNDRED SIXTY -
SEVEN AND 501100 DOLLARS ($22,367.50); MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -29)
ORDINANCE NO. 6803
AN ORDINANCE ACCEPTING THE BID OF THOMPSON RECREATION PRODUCTS FOR
THE PURCHASE OF PLAYGROUND EQUIPMENT AND AUTHORIZING PAYMENT BY
THE CITY OF BAYTOWN, THE SUM OF FOUR THOUSAND NINE HUNDRED FIFTY -SIX
AND 061100 DOLLARS ($4,956.06); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -30)
ORDINANCE NO. 6804
AN ORDINANCE ACCEPTING THE BID OF GRAHAM TOWING AND RECOVERY FOR
THE ANNUAL TRAILER SERVICE CONTRACT AND AUTHORIZING PAYMENT BY THE
CITY OF BAYTOWN, THE SUM OF THREE THOUSAND SEVEN HUNDRED AND
NO /100 DOLLARS ($3,700.00); MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -31)
ORDINANCE NO. 6805
AN ORDINANCE ACCEPTING THE BID OF MUSTANG TRACTOR & EQUIPMENT CO.
FOR THE PURCHASE OF TRACKS FOR BULLDOZER AND AUTHORIZING PAYMENT
BY THE CITY OF BAYTOWN, THE SUM OF SIX THOUSAND ONE HUNDRED TEN AND
94/100 DOLLARS ($6,110.94); MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -32)
930923 -27
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6806
AN ORDINANCE ACCEPTING THE BID OF UNIFORMS OF TEXAS FOR THE ANNUAL
FIRE RETARDANT UNIFORMS CONTRACT AND AUTHORIZING PAYMENT BY THE
CITY OF BAYTOWN, THE SUM OF FORTY -SIX THOUSAND EIGHT HUNDRED SIXTY
AND NO /100 DOLLARS ($46,860.00); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -33)
ORDINANCE NO. 6807
AN ORDINANCE ACCEPTING THE BID OF RON CRAFT CHEVROLET-GEO-OLDS-
CADILLAC FOR THE PURCHASE OF A 3/4 TON TRUCK WITH LIFT GATE AND
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF FOURTEEN
THOUSAND NINE HUNDRED NINETY -NINE AND 74/100 DOLLARS ($14,999.74);
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -34)
ORDINANCE NO. 6808
AN ORDINANCE ACCEPTING THE BID OF DEERSKIN MANUFACTURING FOR THE
PURCHASE OF THE VEHICLE MOUNTED CAGE AND AUTHORIZING PAYMENT BY
THE CITY OF BAYTOWN, THE SUM OF FOUR THOUSAND FOUR HUNDRED FORTY
AND NO /100 DOLLARS ($4,440.00); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -35)
ORDINANCE NO. 6809
AN ORDINANCE ACCEPTING THE BID OF RON CRAFT CHEVROLET-GEO-OLDS-
CADILLAC FOR THE PURCHASE OF A 3/4 -TON TRUCK WITH UTILITY BED AND
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF FIFTEEN
THOUSAND EIGHT HUNDRED SIXTEEN AND 55/100 DOLLARS ($15,816.55);
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -36)
ORDINANCE NO. 6810
AN ORDINANCE ACCEPTING THE BID OF ADKINS EQUIPMENT CO. FOR THE
PURCHASE OF A HIGH PRESSURE HOT WATER WASHER AND AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SIX THOUSAND SIX HUNDRED
FIFTY AND NO /100 DOLLARS ($6,650.00); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -37)
930923 -28
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6811
AN ORDINANCE ACCEPTING THE BID OF WATSON DISTRIBUTING COMPANY, INC.
FOR THE PURCHASE OF AN AERATOR AND AUTHORIZING PAYMENT BY THE CITY
OF BAYTOWN, THE SUM OF THREE THOUSAND ONE HUNDRED NINETY -FIVE AND
NO1100 ($3,195.00); MAKING OTHER PROVISIONS RELATED THERETO; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -38)
ORDINANCE NO. 6812
AN ORDINANCE ACCEPTING THE BID OF BUSINESS MICROGRAPHICS
CORPORATION FOR THE PURCHASE OF A MICROFILM PLANETARY CAMERA AND
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF SEVENTEEN
THOUSAND SEVEN HUNDRED TWENTY -FOUR AND NO /100 DOLLARS ($17,724.00);
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF. (Proposed Ordinance No. 930923 -39)
ORDINANCE NO. 6813
AN ORDINANCE ACCEPTING THE BID OF HOUSTON PETERBILT, INC. FOR THE
PURCHASE OF A SIDE LOADING SOLID WASTE COLLECTION VEHICLE AND
AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF NINETY -NINE
THOUSAND FORTY -SEVEN AND NO/100 DOLLARS ($99,047.00); MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF. (Proposed Ordinance No. 930923 -40)
ORDINANCE NO. 6814
AN ORDINANCE ACCEPTING THE BID OF JONES CHEMICAL COMPANY, INC. FOR
THE ANNUAL SULFUR DIOXIDE CONTRACT AND AUTHORIZING PAYMENT BY THE
CITY OF BAYTOWN, THE SUM OF TWENTY -EIGHT THOUSAND FIVE HUNDRED
SIXTY AND NO/100 DOLLARS ($28,560.00); MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -41)
ORDINANCE NO. 6815
AN ORDINANCE ACCEPTING THE BID OF BADGER METER, INC., GOLDEN
TRIANGLE, MUNICIPAL PIPE & FABRICATING COMPANY, AND INDUSTRIAL
INTERNATIONAL FOR THE ANNUAL WATER METER CONTRACT AND AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF FIFTY -FOUR THOUSAND,
FOUR HUNDRED SEVENTY -THREE AND 731100 DOLLARS ($54,473.73); MAKING
OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF. (Proposed Ordinance No. 930923 -42)
930923 -29
Minutes of the Regular Session - September 23, 1993
ORDINANCE NO. 6816
AN ORDINANCE ACCEPTING THE BID OF TRANTEX, INC. FOR THE ANNUAL
TRAFFIC PAINT CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF
BAYTOWN, THE SUM OF EIGHT THOUSAND EIGHT HUNDRED SIXTY -SIX AND
NO /100 DOLLARS ($8,866.00); MAKING OTHER PROVISIONS RELATED THERETO;
AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -43)
ORDINANCE NO. 6817
AN ORDINANCE ACCEPTING THE BID OF ALL TEXAS DEMOLISHING FOR THE
DEMOLITION OF STRUCTURES; AUTHORIZING EXECUTION OF A CONTRACT FOR
THE SUM OF THREE THOUSAND EIGHT HUNDRED FORTY -SEVEN AND NO /100
DOLLARS ($3,847.00); MAKING OTHER PROVISIONS RELATED THERETO; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
(Proposed Ordinance No. 930923 -44)
City Manager's Report
Goose Creek Stream - A lot of clearing has been done on the trails, and some
form work has been done on the pavilion and restrooms.
Marina - Rubble removal is continuing. The amount of rubble is less than
anticipated, and the job should be completed in about two weeks.
Citizen Participation - Items had been put at council places regarding citizen
participation. Mery Rosenbaum had submitted the Ron McLemore Substation to the
Midland Spirit Award group, and the city placed in the top five and will be receiving
a plaque. Also, the City received the merit award for its Comprehensive Plan.
An awards luncheon will be held on October 8 at the Annual Conference of Texas
Chapter of American Planning Association. Council is invited. These are two
examples of how our citizens are working with city government.
Adjourn
There being no further business to be transacted, the meeting was adjourned.
- MM-0
i
MEMORANDUM
Sept. 23, 1993
TO: Missy Davidson, Human Resources
Eileen Hall, City Clerk
Monte Mercer, Director of Finance
FROM: Bobby Rountree, City Manager
SUBJECT: 1993 -1994 Health Care Issue
The 1993 -1994 budget year was highlighted by the cost of health care and
"Who should pay ?" President Clinton revealed his National Health Care Plan on
Wednesday, 22, 1993. The administration provided several options to the City
Council regarding whether the employee and retiree should pay a portion of the health
benefits, and if so, how much. The future liability to the City for retiree benefits was
also discussed. The existing retirees felt they were "promised" that they would never
have to pay for their health care. Documentation provided by the administration
indicated differently. The final decision regarding health care for retirees and
employees was:
1. As of October 1, 1993, the employee and retiree will begin paying
$20.00 per month towards their health care benefits. This is in addition
to the cost of the dependents.
2. The City will discontinue financial support of health care benefits for
retired employees who are hired after October 1, 1993. Benefits will be
offered in accordance with state law. This will eliminate the City's
future financial liability regarding health care benefits for retirees who
were hired after October 1, 1993.
3. Due to the uncertainty of the national health care program, the absence
of any GASB requirements for cities, and a difficult budget year, action
on establishing a fund to offset the future financial liability was
postponed. This issue will continue to be worked this next year.
In summary, health care costs and future liability issues are not going away.
We will be addressing this subject each year during the budget session. Employees
and retirees may be required to pay more for health care in future years. The health
care plan will change as needed or required to keep it financially solvent.
THIS MEMO IS BEING WRITTEN IN AN EFFORT TO DOCUMENT THE HEALTH CARE
ISSUE FOR FUTURE REFERENCE. IT IS TO BE (1) ATTACHED TO ORDINANCE NO.
930923 -1, WHICH ADOPTS THE 93 -94 BUDGET, AND (2) ATTACHED TO THE
MINUTES OF THE SEPTEMBER 23, 1993 COUNCIL MEETING, (3) AND FILED IN THE
HUMAN RESOURCES DEPARTMENT.
cm /memos /HealthCare
Attachment "A"
MEMORANDUM
September 13, 1993
TO: Mayor and Council Members
FROM: Bobby Rountree, City Manager,
SUBJECT: Health Care Alternatives
- mid cI6 _ ice,
Attached are several alternatives regarding Health Care Benefits. The
alternatives are based on the proposed $43.70 per month employee /retiree cost which
will generate a total of $319,884. The far right of each alternative indicates the
monthly amount the City and the employee /retiree will contribute. The "Total Funds"
is the amount the City will be required to contribute on an annual basis.
Re -cap of health benefits funding:
The City currently contributes $2,115,408; the employees /retirees currently
contribute $327,957 for their dependent coverage. The budget proposes to fund the
projected deficit in the following manner:
City's Contribution * $345,461 # ;ros 70
Emp /Ret. Contribution * 319.884
$665,345
*Includes $59,500 proposed budget reduction
Alternatives I, II & III - 2% salary increase effective 4 -1 -94
Alternatives IV, V & VI - 2% salary increase effective 10- 1 -OWg3
Alternatives VII, VIII, IX & X - No salary increase
Alternative XI - City contributing total cost
Alternative XII - Salary increase of $20.00 across the board
cmihealth /HeatthCareAtter
City of Baytown
Recap of Alternatives for Health Benefits
RATE ADJUSTMENT REQUIRED
General
Water &
City
Employee/
Fund
Sewer
Sanitation u
Cost
Retiree
Alternative 1
2% salary increase 4/1
0.0085
0.0129
0.0556
13.70
30.00
Alternative II
2% salary increase 4/1
0.0110
0.0163
0.0710
23.70
20.00
Altemative 111
2% salary increase 4/1
0.0136
0.0196
0.0864
33.70
10.00
Alternative IV
2% salary increase 10/1
0.0135
0.0212
0.0900
13.70
30.00
Alternative V
2% salary increase 10/1
0.0160
0.0246
0.1054
23.70
20.00
Alternative VI
2% salary increase 10/1
0.0186
0.0279
0.1209
33.70
10.00
Alternative VII
No salary increase
0.0086
0.0113
0.0519
33.70
10.00
Alternative VIII
No salary increase
0.0061
0.0080
0.0365
23.70
20.00
Alternative IX
No salary increase
0.0048
0.0063
0.0288
18.70
25.00
Alternative X
No salary increase
0.0035
0.0046
0.0211
13.70
30.00
Alternative XI
No salary increase
0.0112
0.0147
0.0673
43.70
0.00
Alternative XII
Salary increase $20 ACB
0.0104
0.0137
0.0630
23.70
20.00
Altemeive !
Cost of 2% salary increase
for employees effective 4/1
Cost of supplementing health
Total Cost
Rate impact
Alternative Il .:
Cost of 2% salary increase
for employees effective 4/1
Cost of supplementing health
Total Cost
Rate impact
Aftemative 111
Cost of 2% salary increase
for employees effective 4/1
Cost of supplementing health
Total Cost
Rate impact
City of Baytown
Alternatives for Health Benefits
General Water & Total City
Fund Sewer Sanitation Funds I Cost
113,500 30,480 6,420 150,400
79,495
16,858
3,931
100,284 13.70
192,995
47,338
10,351
250,684
0.0085
0.0129
0.0556
General
Water &
Total City
Fund
Sewer
Sanitation
Funds Cost
113,500 30,480 6,420 150,400
137,521
29,163
6,801
173,484 23.70
251,021
59,643
13,221
323,884
0.0110
0.0163
0.0710
General
Water &
Total City
Fund
Sewer
Sanitation
Funds i Cost
MENEEMEMS
113,500 30,480 6,420 150,400
195,546 41,468 9,670 246,684 33.70
309,046 71,948 16,090 397.084
0.0136 0.0196 0.0864
M
Retiree
30
Retiree
20
Retiree
M
Alternative IV'
Cost of 2% salary increase
for employees effective 10/1
Cost of supplementing health
Total Cost
Rate impact
Alternative V
Cost of 2% salary increase
for employees effective 10/1
Cost of supplementing health
Total Cost
Rate impact
Alternative VI
Cost of 2% salary increase
for employees effective 10/1
Cost of supplementing health
Total Cost
Rate impact
City of Baytown
Alternatives for Health Benefits
General Water & Total City
Fund Sewer Sanitation Funds Cost
227,000 60,960 12,840 300,800
79,495
16,858
3,931
100,284 13.70
306,495
77,818
16,771
401,084
0.0135
0.0212
0.0900
General
Water &
Total City
Fund
Sewer
Sanitation
Funds Cost
227,000 60,960 12,840 300,800
137,521
29,163
6,801
173,484 23.70
364,521
90,123
19,641
474,284
0.0160
0.0246
0.1054
General
Water &
Total City
Fund
Sewer
Sanitation
Funds v Cost
227,000 60,960 12,840 300,800
195,546 41,468 9,670 246,684 33.70
422.546 102,428 22,510 547,484
0.0186 0.0279 0.1209
Retiree
30
Retiree
20
Retiree
10j
Altemative V11
No employee salary increase
Cost of supplementing health
Total Cost
Rate impact
Altemative VIII
No employee salary increase
Cost of supplementing health
I
Total Cost
Rale impact
Alternative 1X
No employee salary increase
Cost of supplementing health
Total Cost
Rate impact
Alternative X
City of Baytown
Altematives for Health Benefits
General Water & Total City
_Fund Sewer Sanitation Funds I Cost
MMMMMMM
0 0 0 0
195,546
41,468
9,670
246,684 33.70
/0
195,546
41,468
9,670
246,684
173,484 23.70
0.0086
0.0113
0.0519
6,801
General
Water &
Total City
Fund
Sewer
Sanitation
Funds I Cost
0 0 0 0
108,508
0
0
0
/0
108,508
137,521
29,163
6,801
173,484 23.70
0.0048
137,521
29,163
6,801
173,484
Water &
Total City
0.0061
0.0080
0.0365
Funds I Cost
General
Water &
Total City
Fund
Sewer
Sanitation
Funds I Cost
0 0 0 0
108,508
23,010
5,366
136,884 18.70
108,508
23,010
5,366
136,884
0.0048
0.0063
0.0288
General
Water &
Total City
Fund
Sewer
Sanitation
Funds I Cost
No employee salary increase 0 0 0 0
nployeet ,
Retiree i
10
Retiree
201
nployee/
Retiree
251
nployee/
Retiree
Cost of supplementing health 79,495 16,858 3,931 100,284 13.70 301
Total Cost 79,495 16.858 3,931 100,284
Rate impact 0.0035 0.0046 0.0211
Uve Xl
No employee salary increase
Cost of supplementing health
Total Cost
Rate impact
Alternative Xll
Employee salary increase ($20 ACB)
Cost of supplementing health
Total Cost
Rate impact
City of Baytown
AltematiV2s fnr Nanith Ranniae
Fund Sewer Sanitation Funds I Cost Retiree
o 0 0 0
253,572
53,773
12,539
319,884 43.70 0
253,572
53,773
12,539
319 884
0.0112
0.0147
0.0673
General
Water &
Total City Employee/
Fund
Sewer
Sanitation
Funds Cost Retiree
99,880
21,181
4,939
126,000
137,521 29,163 6,801 173,484 23.70
237,401 50,343 11,740 299 484
0.0104 0.0137 0.0630
201
GM Retirees
To Be Charged
For Insurance
Plan to Cut Health Costs
Would Raise Premiums
For Certain Managers
By JOSEPH B. WHITE
Staff Reporter of THE WALL STREET JOtMNAL
DETROIT — General Motors Corp.,
struggling to contain medical costs that
average nearly 51,500 a vehicle, will for the
first time charge retirees premiums for
health insurance. And GM is raising the
medical premiums it already charges
many active management personnel.
GM's decision to deduct as much as $107
a month from salaried retiree pension
checks and as much as 925 more a month
from active white - collar employees' pay-
checks comes as the auto giant is girding
for a battle over health -care costs with the
United Auto Workers. The move also will
reverberate in Washington, where the
Clinton administration is gearing up to win
passage of a national health -care program
aimed at reining in medical -cost infla-
tion.
In the absence of a national health -care
alternative, GM President John F. Smith
Jr. has vowed that GM will press its 267,000
blue - collar workers to join GM's 73.000 U.S.
salaried staffers in sharing the burden of
I escalating health costs. GM took a S21
i billion charge in 1992 to reflect its massive
j liability for retiree medical benefits. Its
continuing medical costs per vehicle are
more than double those of rivals Ford
Motor Co. and Chrysler Corp.
But the UAW has vowed to fight any
assault on its medical benefits, which
cover hospital charges from the first dol-
lar. The UAW and GM will negotiate a new
national labor agreement this fall, but only
after the union reaches a pattern - setting
deal with Ford. If Ford abandons its effort
to wring concessions from the UAW on
I medical coverage, that would strengthen
I the union's hand going into talks at GM.
Mr. Smith, meanwhile. risks undermin-
ing morale among a salaried staff already
I besieged by three years of canceled bo-
THE WALL STREET JOURNAL THURSDAY. SEPTEMBER 9.1993 A3
nuses. repeated management shuffles and
job cutbacks. GM's 102.000 salaried re-
tirees are sure to protest GM's decision to
start charging them premiums, which
could be as high as 5107 a month for family
coverage under a health maintenance or-
ganization.
I'm sure there are folks who are
i unhappy with any increase, but it's still a
very competitive package," a GM spokes-
: man said.
GINf'S salaried retirees were warned
last year that they could begin paying
premiums for health coverage. GM said in
letters mailed earlier this week that as of
i Jan. 1. 1994. an individual retiree on
Medicare who also enrolls in an HMO will
pay a maximum premium of 920 a month.
A retiree not eligible for Medicare could
pay a maximum of 939 a month for HMO
coverage. A retiree with dependents and
no Medicare coWd pay as much as S107 a
month for HMO coverage, or S31 a month
for GM's regular "enhanced" insurance
package.
Active employees who select GA1's "ba-
sic" coverage won't pay a monthly pre-
mium, but their annual deductibles and
copayments could be as high as S2,500 for
an individual and 55,000 for a family. In
1992. the maximum annual out -of- pocket
payment for an individual was 5750.
GM salaried workers who enroll in a
Preferred Provider Organization could pay
maximum monthly premiums of 5160 a
month for a family in 1994, up from a
maximum of S140 now. Dental coverage,
which had come without a monthly pre-
mium, now will cost a white-collar worker
with a family S5 a month.
WE
City of Baytown
Funding Alternatives for Health Benefits
Alternative I
Housing Authority Funds for
Capital acquisition
Increase property tax rate
to $74 per $100 0.003
Increase sanitation rate 0.014
Property & liability ins savings
Alternative II
Housing Authority Funds for
Capital acquisition
Increase sanitation rate
Property & liability ins savings
General Water &
Fund Sewer
70,035
67,486
Sanitation
2,601
29,163 4,200
137,521 29,163 6,801
General Water &
Fund Sewer Sanitation
137,521
SJrfoo
0.014 ff 2,601
29,163 4,200
137,521 29,163 6,801
173,4851
173
MEMORANDUM
September 7, 1993
TO: Mayor and Council Members
FROM: Bobby Rountree, City Manager 12
SUBJECT: Health Care Plan
The cost of health care is not only a current budgetary issue, but a future one
as well. Although limited, the following plan will begin to address the issue. I have
attached the August 18 memo "Health Benefit Issues" and will be referring to Issues
1,2,3 and 4.
Proposed Plan:
1. Share the cost of the projected deficit for the 93 -94 budget between the City,
employees, and retirees. This will also establish an additional revenue stream
for future funding (Issue No. 1).
Discontinue City support of health care benefits for retired employees who are
hired after October 1, 1993. Benefits will be offered in accordance with state
law. This will eliminate the City's future financial liability regarding health care
benefits for retirees who were hired after October 1, 1993 (Issue No. 4).
The third element of this plan is the most difficult because of the future
uncertainty. It addresses the existing employees and their health care benefits
upon retirement (Issue Nos. 2 & 3). The "window" proposed under Issue No.
2 could be initiated or even expanded, but the cost to the employee cannot be
guaranteed. At this time, I recommend that existing employees, upon
retirement, continue to be treated as current retirees. However, we need to
establish a process (similar to a retirement fund) by which funds are allocated
on an annual basis to fund the future retiree health care costs. During the next
year we will continue to work on a health benefit plan for current employees
who may retire from the City. Action on these two issues can be postponed
due to the uncertainty of the national health care program, the absence of any
GASB requirements for cities, and a difficult budget year. The future financial
liability still exists.
Memo
Page 2
In summary, the City can pay for the total cost of employee health benefits or
the cost can be distributed equitably as possible among the City (taxpayers), the
employees, and the retirees. Council must make that decision each year when
adopting the budget. We need to remain competitive in the job market, but at the
same time, be fiscally responsible.
Health care costs and future financial liability issues are not going away. We
will be addressing this subject each year during the budget process. The national
health care program may or may not be in effect this next year. This too, will impact
our costs. This proposed plan will not solve our health care problems, but it is a step
in addressing the issue.
Enclosure
cm /cmihealth/HealthCareftn
W
MEMORANDUM
August 18, 1993
TO: Mayor and Council Members
FROM: Bobby Rountree, City Manager /g<
SUBJECT: Health Benefit Issues
..... �**.#. �►.*. *�,►..�.... *,► *.. « *. *,►,► »,► * «# «,►•mot•• *••+�• +.. «...*
In an attempt to simplify a complicated subject,
benefits into four issues. Although all are intertwined, actionp am be taken care
separately. them
Issue #1: Funding the proposed deficit - The City currently contributes $2,115,408;
the employees /retirees currently contribute $327,957 for their dependent coverage.
The budget proposes to fund the projected deficit in the following manner:
City's contribution $287,936
Employees' contribution 271,359
Retirees' contribution 10
$665,345
Disadvantages: - Retirees on fixed income required to contribute.
Employees required to contribute without receiving a pay
increase resulting in less take home pay.
Low morale for employees.
Advantages: - The cost increase is shared by a# involved.
Increase revenue stream to fund health care.
Options:
(1) Share the cost of the projected increase, as indicated, or some other
combination.
(2) City fund the total amount, which will require reducing the proposed
budget or increasing revenue (tax or fee increase).
Memorandum
Page 2
Proposed Alternative for Issue #1:
I• 1 have identified three areas in the budget that can be eliminated:
1. Salary Study $25,000
2. Library Literacy Program 14,500
(funded by CDBG)
3. Dispatch Recorder 20,000
$59,500
II. If the deductible is changed from $300 to $500 for the employees and the
retirees, the estimated claims reduction would be $60,000.
The total of I and 11 is $119,500. If the $119,500 is deducted from the
employees /retirees contribution,
the monthly premium for all employees and retirees
will be reduced to $35.50 monthly (pre -tax approximately $2100).
If the $300 deductible remains unchanged, the monthly premium for all employees
and retirees will be $43.70 monthly (pre -tax approximately $35.00)
Issue n 2: Providing health care benefits for future retirees who are currently
employed by the City. A "one -year window" has been proposed for those who are
considering retirement prior to 10 -1 -94. They will be treated the same as current
retirees.
Disadvantages: The City may lose experienced employees sooner than
anticipated.
Future financial liability will increase by allowing additional
employees to retire under the existing system.
Advantages: Existing employees retiring prior to 10 -1 -94 will have an
opportunity to retire under the same program as the existing
retirees.
Issue #3: Current employees who retire after October 1, 1994, will pay the City
contribution plus the employee contribution (currently monthly - $234 employee or
$519 employee and dependant).
Memorandum
Page 3
Disadvantages: - The City could lose employees to other organizations who
may have more beneficial retiree health benefit plan.
Low morale for employees.
Advantages: - Future financial liability will be reduced.
Increase revenue stream to fund health plan.
Issue #4: Employees hired after October 1, 1993, will be offered health benefits plan
at cost upon retirement.
Disadvantages: - Employee hiring and retention may suffer.
Advantages: - Future financial liability is eliminated.
Summary - Issue #1 must be addressed. The projected deficit for 93 -94
requires some method of funding.
Issue #4 must be addressed. Future financial liability increases as
long as the City funds or subsidizes the future retirees health
benefits.
Issue #2 & 3 - Action on these two issues can be postponed;
however, the future financial liability still exists. The City's
responsibility may change because of the uncertainty of the
national health care program. (Refer to top of page 1 -46 and
page 1 -54 of budget document.)
Cm /Cm/ heal tniH ea Ith 8enetitis Sues
MEMORANDUM
August 18, 1993
TO: Mayor and Council Members
FROM: Bobby Rountree, City Manager /-K
SUBJECT: Health Benefit Issues
In an attempt to simplify a complicated subject, l have separated the health care
benefits into four issues. Although all are intertwined, action can be taken on them
separately.
Issue #1: Funding the proposed deficit - The City currently contributes $2,115,408;
the employees /retirees currently contribute $327,957 for their dependent coverage.
The budget proposes to fund the projected deficit in the following manner:
City's contribution $287,936
Employees' contribution 271,359
Retirees' contribution 106.050
$665,345
Disadvantages: - Retirees on fixed income required to contribute.
Employees required to contribute without receiving a pay
increase resulting in less take home pay.
Low morale for employees.
Advantages: - The cost increase is shared by all involved.
Increase revenue stream to fund health care.
Options:
(1) Share the cost of the projected increase, as indicated, or some other
combination.
(2) City fund the total amount, which will require reducing the proposed
budget or increasing revenue (tax or fee increase).
Memorandum
Page 2
Proposed Alternative for Issue #1:
I. 1 have identified three areas in the budget that can be eliminated:
1. Salary Study $25,000
2. Library Literacy Program 14,500
(funded by CDBG)
3. Dispatch Recorder 20.000
$59,500
11. If the deductible is changed from $300 to $500 for the employees and the
retirees, the estimated claims reduction would be $60,000.
The total of I and 11 is $119,500. If the $119,500 is deducted from the
employees /retirees contribution, the monthly premium for all employees and retirees
will be reduced to $35.50 monthly (pre -tax approximately $29.00).
If the $300 deductible remains unchanged, the monthly premium for all employees
and retirees will be $43.70 monthly (pre -tax approximately $35.00)
Issue #2: Providing health care benefits for future retirees who are currently
employed by the City. A "one -year window" has been proposed for those who are
considering retirement prior to 10 -1 -94. They will be treated the same as current
retirees.
Disadvantages: The City may lose experienced employees sooner than
anticipated.
Future financial liability will increase by allowing additional
employees to retire under the existing system.
Advantages: Existing employees retiring prior to 10 -1 -94 will have an
opportunity to retire under the same program as the existing
retirees.
Issue #3: Current employees who retire after October 1, 1994, will pay the City
contribution plus the employee contribution (currently monthly - $234 employee or
$519 employee and dependant).
is
Memorandum
Page 3
Disadvantages: - The City could lose employees to other organizations who
may have more beneficial retiree health benefit plan.
Low morale for employees.
Advantages: - Future financial liability will be reduced.
Increase revenue stream to fund health plan.
Issue #4: Employees hired after October 1, 1993, will be offered health benefits plan
at cost upon retirement.
Disadvantages: - Employee hiring and retention may suffer.
Advantages: - Future financial liability is eliminated.
Summary - Issue -=1 must be addressed. The projected deficit for 93 -94
requires some method of funding.
Issue -=4 must be addressed. Future financial liability increases as
long as the City funds or subsidizes the future retirees health
benefits.
Issue =2 & 3 - Action on these two issues can be postponed;
however, the future financial liability still exists. The City's
responsibility may change because of the uncertainty of the
national health care program. (Refer to top of page 1 -46 and
page 1 -54 of budget document.)
_m/cmihealth/HealthBenehtIssues
MEMORANDUM
August 18, 1993
TO: Mayor and Council Members
FROM: Bobby Rountree, City Manager 6f�
SUBJECT: Health Benefits Communication
******************************** * * * * * * * ** * * * * * * * * * * * * * * * * * * * * **
In an effort to give Council examples of how health benefits are communicated
to employees, the following historical information has been assembled:
1. Memo dated May 3, 1976, establishing times and dates for insurance
meetings and stating booklets will be distributed.
2. City of Baytown Employee Handbook 1978 - TMRS and Supplemental
Retirement document. Retiree insurance is not mentioned because it
was not offered at that time.
3. Memo dated September 13, 1982, explaining $50.00 support for retiree
insurance by the City.
4. City of Baytown Employee Handbook 1982 - Since booklets are not
printed each year, you see handwritten the $50.00 for retiree insurance
by the City.
5. Three letters dated October 12, Oct. 18, and Oct. 18, 1984 -
Oct 12 - Announces that retirees will be treated the same as current
employees and no longer have to pay the $ 19.07 amount towards their
health insurance.
Oct. 18 - Announces that those covered by medicare will no longer pay
the $5.13 and that the current policy treats the retiree the same as
current employees.
Oct. 18 - Retirees with dependent coverage, under the current new
policy, treats retirees the same as employees and they will receive free
personal coverage just like the employee.
Memo
Page 2
6. City of Baytown Benefit Plan 1990 - Top of third page outlines the
employers statement concerning modifying or terminating the plan.
It appears that the council in 1984 opted to treat the retiree the same as the
employee with regard to health insurance. The health insurance was paid for the
employee, therefore it was paid for the retiree. It also appears that "plan changes
may occur" has been communicated throughout the years.
anlem/heWth/Hea1th8enComm
M E M O R A N D U M
TO. ALL DEPARTMENT DIRECTORS
FROM: LARRY PATTERSON, PERSONNEL DIRECTORy�
SUBJECT: INSURANCE BOOKLET DISTRIBUTION
DATE: MAY 3, 1976
The Massachusetts Mutual Insurance booklets are now ready for
distribution. Distribution will be handled in group meetings
by Dan Savage and /or myself with groups of employees. This
type of distribution procedure will allow employees a chance to
ask any questions they may have regarding insurance coverage.
Attached is a schedule of times and places meetings will be held.
Please ensure your employees are informed of these and have the
opportunity to attend one.
f
Imo'
TIME
DAY
DATE
PLACE
2:00
Monday
May
3 Poliee•.Station
7:30
Tuesday
May
4 Municipal Service
Center
11:00
Tuesday
May
4 Civic Center Building
3:30
Tuesday
May
4 Parks & Rec. Work
Shed
7:00
Wednesday
May
5 Municipal Service
Center
2:00
Wednesday
May
5 City Hall Bldg.,
Conf. Rm.
7:30
Thursday
May
6 Municipal Service
Center
7 :30
Friday
May
7 Municipal Service
Center
CITY OF BAYTOWN
MEMORANDUM
TO: Fritz Lanham, City Manager
FROM: Richard Hare, Personnel Director
SUBJ: Health Insurance Support for Retirees
DATE: September 13, 1982 REF: RH/335/82
With rising health care costs a significant factor in
our retirees' fixed budgets it becomes increasingly apparent
that assistance from the City would enhance their financial
status. This type of support should be limited to those
already participating in the current group policy contract
and meeting the following criteria as a "retiree ":
An employee is eligible for retirement if the employee
has completed at least 28 years of service with the City
of Baytown, or 20 years of service and age 50, or 10
years of service and age 60 upon separation from City
service.
The criteria given is consistent with the eligibility
criteria for the Texas Municipal Retirement System. Admini-
stratively an employee presently participating in the health
insurance group policy would be eligible if they also meet
the criteria stated above. Subsequently all individuals
separated from the City for retirement and meeting the criteria
stated above would be eligible for health insurance support
payments if they elect upon separation from the City to
narticioate in the health insurance group policy.
Over the next five years, given that all those presently
employed reached retirement age and retired according to
the minimum criteria, a support payment of $50 per retiree
would cost the City a total of $22,800 in FY87 -88. This is
compared to an original cost of $4,200 in FY82 -83. It is
unlikely that participation will grow from 7 employees the
first year to 38 in the fifth year. Most employees do not
retire as soon as they meet the minimum requirement. A
--ore reasonable estimate would be 18 participants and a cost
of $10,800. This represents an annual rate of growth of 21 %.
:� li; l�Fi. " "'(tl��i�i+�i�� ?�f ir%!�A"a�. �d',iBl�i�di�+, �, .
;)_i:,y�(Ns:4 � i yam..
TM AND SCPPt_^ MAL RSTIREMEPr
The Iexas Municipal Retirement System to which you will contribute as a
city employee will help you provide for your old age or for dependents
upon your death.
The Iexas Municipal Retirement System cost, an a monthly basis. is 52 of
your first 5500 of salary or $25.00. When you became eligible for retirement
and apply for it, «tie City of Baytown matches Cho Local amount of vour
deposits on a two far one basis. Your monthly annuities upon retirement
will be determined based on your deposits and these matching funds.
To be eligible for service retirement. an employee must meet the following
' criteria: (1) 15 years of service and 60 years of age; (2) 25 years of
service and 30 veers of age; (J) 28 years of service; or (4) 14 veers
of service and 65 :ears of age.
The City of 8avtown offers a supplemental retirement plan for those employees
who are not eligible for TMRS or vno wish to add to their retirement pacsage.
To enroll in this plan. amployees must be employed by the City of Bavtown for
a period of six months or more. Enrollment is conducted around March 1 of
each year. For further information on the supplemental retirement plan you
should contact the ?arsenal Offire.
JOB RELA'_"^: :•:.'.:?.STS AND WORIOMM•S CO -VrKSA -ION
An employee i =pared in the line of duty shall receive Workman's C:_peneatioa
benefits a:i it2: -y leave. Workman's Compensation benefits shall be supple-
minted by :he C'M as necessary to ensure that employees not employed as a
Pollee Officer or Fi.- efighter receive full salary for a period of six months
Lod a disabled �toyee who is employed as a Police Officer or Firefigbter
receives ^ :: salary for a period of one year. '"hereafter. any supplemental
benefits stall be reduced as prescribed in the applicable programs.
crosrrIC.- : .,`: CF PCSM^I
Each posi:i:= of :: %y service is contained within the c'assificatior. plan.
This plan al::vs a general description of the position by duties, qualifi:s:iens.
and Job fazi lies.
These de=_i : ::ss alloy each employee a better understanding of :he required
talks of :=eir p:s::i:n. _t also allow the supervisor such an u= ersta=Izg.
thereby, a_:scc_g supervision.
These ciassifion -1-= also alloy each employee a gmerai source from which t:
understand vast :=ey must do concerning upgrading :heir skills and qualifies -
Clans to a ==ce : =eir ;-- .motibillty.
PROAAT2O!'
EVary pev crlcyee shall :e required to successfully complete a ;rtbationary
period of rix
Depart:= : zosis =d supervisors shall use the probationary period :: closely
observe a=.d evaaas:a the work sad fitness of employees a=d to encourage nd 3L-
cents :: :'=eir ;::s sad the city service. Cnly these employees vno meet
acceptab_e s:aa:ar -s drug probationary periods shall :e retained is ouch
politic =.
An employyee fsi_ _ : t ctatien shall have no right -- appeal except :.. :he
grounds _f I—'s:r6mao&%,-z:t mrchibited by law or as define: ':y : =e 2ersprrci
Civil Sez* =:e :- .:.Is.
October 12, 1984
The City Council has recognized the plight of many
of our retirees which have found it difficult to
maintain their health insurance coverage even with
the advantage of being in the city health insurance
pool.
For the last several years, the city has paid $50 each
month toward your health insurance coverage. This
left a remainder of $19.07 for you to pay. This year
the cost for health insurance is going up to $88 per
month. The City Council felt the $38 monthly premium
that you would have to pay was too great and has now
adopted a new policy.
All retirees presently in our
shall now be accorded the
benefit as current employees.
pay anything for your coverage.
benefit will be welcomed by
in our plan.
health insurance plan
same health insurance
You no longer have to
We are sure that this
all retirees presently
The basic health insurance plan remains the same and
we will update you concerning any changes that may
occur in the near future.
Best regards,
Richard Hare
Personnel Director
RH:sk
l�• C5(J� -� �� ,�, �l..�L j 1 f � iii M � Q _ a .1-
LU
Life insurance in an amount equal to your annual earnings adjusted to the next
lower multiple of $1,000.00 is included in the group policy at no cost to the
employee. Details may be obtained from the Personnel Office.
Both the group hospitalization and life insurance cover the employee in cases
Of illness, accidents, or death, whether the employee is on or off the job.
ElPloyees who retire have the option, at a cost to thee, to continua chair
8roup health insurance. Croup life insuranca in the sus of $3,000.00 is pro -
vide�ACCity• _ 'ice+ C.'� ,,ae If .+..rv't�.t 4 x$0.00 �r►Nk
�2Miv�+ y#W..N.4.
The Texas Municipal Retirement System, to which you will contribute as a
city employee, will help you provide for your old age or for dependents
upon your death.
You contribute to the Texas Municipal Retirement System on a monthly basis
52 of your gross salary. When you become eligible for retirement and apply
for it, the City of Baytown matches the total amount of your deposits on a
two for one basis. Your monthly annuities upon retirement will be deter-
mined based on your deposits, these matching funds, and interest.
To be eligible for service retirement, an employee must meet the following
criteria: (1) 10 years of service and 60 years of age; (2) 25 years of
service and 50 years of age; (3) 28 years of service.
JOB RELATED INJURIES AND WORKKAN'S COMPENSATION
An employee injured in the line of duty shall receive Workman's Compensation
benefits and injury leave. Worlomsm'a Compensation benefits shall be supple-
mented by the City as necessary to ensure that employees not employed as a
Police Officer or Firefighter receive full salary for a period of six months
and a disabled employee who is employed as a Police Officer or Firefighter
receives full salary for a period of one year. Thereafter, any supple ntal
benefits shall be reduced as proscribed in the applicable programs. ki r4.&L4.+ C
SIF CATION OP POSITION , IA ?4;+4C-09% --
4; . 0 U!
Each position of city service is contained within the classification plan.
This plan allow a general description of the position by duties, qualifies-
glass. and job families.
These definitions allow each employee a better understanding of the required
tasks of their position. It also allows the supervisor such an understanding,
thereby, enhancing supervision.
These classifications also allow each employee a general source from which co
understand what they must do concerning upgrading their skills and qualifica-
tions to enhance their promotibility.
PROBATION
Every new employee shall be required to successfully complete a probationary
period of six months.
Department heads and supervisors shall use the probationary period to closely
observe and evaluate the work and fitness of employees and to encourage adjust-
ments to their jobs and the city service. Only those employees who magic accept-
able standards during probationary periods shall be retained in such position.
An employee failing probation shall have no right of appeal except on the
grounds of discrimination prohibited by law or as defined by the Personnel!
Civil Service rules.
PERFORMANCE EVALUATION
Each employee shall receive periodic performance evaluations. here evalua-
tides will usually be on an annual basis. Performance evaluations are deaigned
to help supervisors and emplovees measure how well work is being performed and
co provide a tool for management decisions regarding merit increases, training.
assignment, promotion, and retention of empiovees. Every emplovee will receive
a copy of their performance evaluation and be allowed an opportunitv to discuss
October 18, 1984
The City Council recognizing the increasing cost to
retired employees to cover their dependents and
themselves for health insurance, have changed their
health insurance benefit. Previous to this change,
the city supplemented your coverage by $50 per
payment. This left a remainder of $141.66 cer month
to be covered by the employee or $118.53 if the
employee was also under medicare.
The health insurance re -rate would have resulted in
a 20% cost increase to the retirees. This was
unacceptable to the City Council. The current new
policy treats retirees the same as employees for
health insurance coverage. Now, all retirees
presently under our health insurance plan will receive
free personal coverage and will pay only 20% of the
cost of covering their dependents. This cost will
remain $29.42 per month from October 1984 through
September 1985.
We should receive payment no later than the first week
of each month. You can prepay your premium if you
wish.
Best regards,
Richard Hare
Personnel Director
RH:sk
- 31C V
4'7�
October 18, 1984
7
The City Council has approved a new policy regarding
retiree health insurance benefits. Prior to this
year, the council authorized the payment of $50 per
month to offset health insurance cost of retiree's
presently in our plan. In your case because of your
coverage under medicare, the $50 per month was
adequate to cover supplemental health insurance with
Prudential, however, with the new rates you would have
to pay $5.13 per month to continue supplemental
coverage.
This was unacceptable to the City Council, therefore,
they adopted our current new policy which treat
retirees presently in our plan the same as current
employees. You will continue to pay nothing for your
health insurance coverage.
Best regards,
Richard Hare
Personnel Director
RH:sk
ti
MOSIM
BENEFITS
PLAN
t Y � . • rr
City of Baytown intends the plan to be permanent, but since future
conditions affecting your employer cannot be anticipated or foreseen,
City of Baytown reserves the right to amend, modify or terminate the
plan at any time, which may result in the termination or modification
of your coverage. Expenses incurred prior to the plan termination will
be paid as provided under the terms of the plan prior to its
termination.
Special SItuation, Extension Of Coverage
If a dependent child is physically or mentally handicapped on the date
coverage would otherwise end, the child's eligibility will be extended
for as long as the handicap continues, and the child continues to
qualify for coverage in all aspects other than age. The plan may
require you at any time to obtain a physician's statement certifying the
physical or mental handicap.
If a physician certifies that a person is totally disabled on the date
coverage would otherwise end, expenses directly relating to the
disabling condition will continue to be eligible for consideration until
the earliest of the date the total disability ends, the date maximum
benefits have been paid, the date following 90 days of extended
benefits, the date the person becomes covered under another group
health plan or the date the plan ends.
WE
4
MEMORANDUM
August 11, 1993
TO: Mayor and Council Members
FROM: Bobby Rountree, City Manager ;3)�
SUBJECT: Health Benefit Options
I. I have identified three areas in the budget that can be eliminated or postponed.
The funds from these areas can be applied to the health benefits cost of the
non - exempt employees, fire fighters, and patrol officers. This will reduce the
monthly cost from $42.00 to $21.00 (pre -tax $17.00), thus giving the
employees on the lower end of the pay scale some relief to the increased costs.
The exempt employees and higher ranked police and fire employees will
continue to pay the $42.00 per month.
Areas eliminated or postponed:
1. Salary Study $25,000
2. Library Literacy Program 14,500
(funded by CDBG)
3. Dispatch Recorder 20,000
$59,500
II. If the deductible is changed from $300 to $500 for the employees and the
retirees, the estimated claims reduction would be $60,000. If this amount
were applied to the retirees monthly premium, it would be reduced from $100
per month to $45.00 per month per retiree.
III. If the deductible is changed from $300 to $500 and the $60,000 claims
reduction is added to $59,500 budget eliminations, it will total $119,500. If
the $119,500 is deducted from the employees /retirees contribution, the
monthly premium for all employees and retirees will be $35.50 (pre -tax
approximately $29.00)
Item III is more equitable for all employees and retirees; however, Items I & II
provide additional relief to the employees on the lower end of the pay scale and
the retirees.
cm /cmibuagetMealthOptions
W7
II. Brief history of retiree benefits:
October 1981 - Retirees allowed to continue coverage at their
expense. (Prior to the date, retiree coverage
not offered.)
October 1982 - Retiree coverage supplemented by the City at a
flat rate of $50.00 per month.
October 1984 - Retiree coverage paid for by the City at 100%
level.
III. The following is a listing of area cities and cities near
Baytown's size:
Cities that do not pay for retiree health benefits:
Killeen
Bryan
College Station
Abilene
Odessa
Beaumont
Bellaire McAllen
Galveston
League City
Pasadena--,,'
Webster
Mont Belvieu
Cities who share health benefits costs with retirees:
Midland
Carrollton
Richardson
Tyler
La Porte ✓
Cities who pay for retiree health benefits:
Deer Park'% *Victoria
Longview
*Nov. 1 - will share benefit costs.
cm /cm /budget /HealthBenefits
MEMORANDUM
TO: MAYOR AND CITY COUNCIL
FROM: BOBBY ROUNTREE, CITY MANAGER 0K
SUBJECT: HEALTH BENEFITS INFORMATION
DATE: AUGUST 9, 1993
I. The following is a summary of the Employee /Retirees health
benefits:
1. Change from traditional benefit plan to a managed care
program utilizing a Preferred Provider Network (PPO)
contracted with Cost Care. Benefits are paid at 80% for
"in network" services and 601i for "out of network"
services.
2. Current employees will be required to contribute $42.00
per month for Health Benefits (approximately $33.00
pre -tax basis) . Dependent coverage will remain the same.
3. City's contribution to the dental coverage will be
eliminated. Employees may choose a PPO plan offered, or
stay with existing plan and pay the full cost of $10.22
per month.
4. Existing retirees and those who retire prior to 10/1/94
(one year window) will contribute $100.00 per month.
Co- payments will be reduced in future years as follows:
IN NETWORK OUT OF NETWORK
199 X9480/20 1993/94 60/40
199/25 1994/95 55/45
199/30 1995/96 50/50
5. Current employees who retire after 10/1/94 will pay the
total of the employee and City's contribution, of an
active employee rate - currently $234.00 per month.
6. Future retirees hired after 10/1/93 will be allowed to
continue on the City's coverage but will pay the full
premium costs.
Benefits and cost are subject to change in the future.
No
J.E. Stone, our benefit consultant, has received proposals from the following providers and third
party administrators:
Third Party Administrators PPO Networks
First Health
Healthcare Affordable
Boon- Chapman
Cost Care
Emperion
Emperion
PALICO
Managed Health Care
Provident
CAPP Care
After thorough review of our benefit needs, services provided and cost consideration, we
are recommending the services of Cost Care (Exxon's current PPO Network). The most cost
efficient way to utilize Cost Care is to pair their service with claims administration /payment by
Philadelphia American Life Insurance Company ( PALICO). The Cost Care Network includes
San Jacinto Methodist, BayCoast Hospital, as well as 27 additional hospitals in the Houston area.
Most importantly, Cost Care includes six (6) of the top ten hospitals utilized by City employees.
The employee/retiree may continue to use his /her family physician. The network is utilized at
the point of referral to a specialist or hospitalization. Therefore, the employees are not in most
cases, required to change physicians in the event their family physician is not in the network.
The Cost Care Network currently provides the following:
1. The employee/retiree may continue to use his /her family physician;
2. The employee /retiree may choose either of Baytown's San Jacinto Methodist or
BayCoast Hospitals;
Other Major Houston area hospitals include:
Texas Children's Hospital
Sunbelt Regional Medical Center
Diagnostic Center Hospital
Humana Hospital - Clear Lake
St. Joseph Hospital
Women's Hospital of Texas
St. Luke's Hospital
Bayshore Medical Center
M.D. Anderson Memorial NW, SE, SW & NE
University of Texas Medical- Galveston
3. There are over 800 Specialty Physicians participating in the Cost Care
Network.
I -42
HEALTH CARE BENEFITS
THE PURPOSE OF THIS SECTION IS TO DISCUSS THE HEALTH CARE PLAN
CHANGES AND COST FOR THE CITY, EMPLOYEE, RETIREES AND FUTURE
RETIREES.
It is no secret that America faces a health care crises. State and federal lawmakers are
flooded with demands to fix the health care system. There is no quick fix or easy solutions.
The City of Baytown has always offered the traditional health care benefits to its
employees and retirees. In some of my discussions with local hospital administrations, I was
told that traditional plans like the city's are "paying for everyone else ". In other words, most
companies are going to managed care programs of some type, and those who do not, are
supplementing those who do. A study indicates that companies in Houston with traditional
health care insurance pay 28% higher premiums than the national average. Although only an
example, this is indicative of the health care cost in our area.
Currently, the city contributes $2,115,408 annually for employee /dependent and
retiree/spouse coverage. The employees and retirees contribute $327,957. This totals
$2,443,365. If the proposed plan changes are implemented, our projected medical claims for
93 -94 are Ste. The reasons for the increase include escalating medical costs, increased
number of c ems y users, a large number of catastrophic claims (high risk pregnancies, kidney
transplant, heart and lung conditions, and several long term cancer cases, etc.)
In an effort to resolve this issue, several members of the staff and I have done extensive
research and review of our program and other types of programs. We have met with and
discussed options with:
1. First Health - The Health Care Affordable Network who is the PPO Network for
the Goose Creek School District;
2. Cost Care Network - Exxon's PPO Network;
3. Memorial Healthnet - San Jacinto Methodist Hospital PPO Network;
4. BayCoast Medical Center and San Jacinto Methodist - We have met with both
administrators and staff, listened to their proposals, and discussed their role in the
City's program.
1 -41
,Sr
• A Mail Service Prescription Drug Program will be implemented on a cost - neutral
basis. The Mail Service Program will allow for employees to order up to a 90-
day supply of maintenance medication with a minimal co- payment. Maintenance
medications are drugs taken on a regular or long -term basis. A few examples of
maintenance medications are those for high blood pressure, arthritis, heart
conditions, and diabetes. The Mail Service Prescription Drug Program represents
a positive step toward effective health care cost management while providing a
quality prescription program for employees and their dependents without having
any impact on the plan. Eligibility and payment services will be provided by
PALICO and will require no involvement from the City of Baytown.
• The City funding for dental coverage will be eliminated. Two separate plans will
be offered:
1) If an employee chose to remain on the City's present dental plan the full
premium would be paid by the employee. Cost are as follows:
2) Denticare plan is a PPO network same type as the health plan. Denticare
offers approximately the same coverages at a discounted rate of 25% less than
Usual and Customary charges. Employees must seek service from dentist
participating in the Network. At present time their are only two Baytown dentists
in the network. Cost for the Denticare plan is listed below:
EMPLOYEE ONLY $ 8.50
EMP, 1 -2 DEP $ 16.50
EMP, 3.4 DEP $ 23.50
EMP, S+ DEP $ 28.50
la
1 -44
EMPLOYEE
EMPLOYEE
EMPLOYER
EMPLOYER
PRESENT
PROJECTED
PRESENT
PROJECTED
COST
COST
COST
COST
EMPLOYEE ONLY
$0.00
$ 10.22
$10.22
$ 0.00
EMP, 1 -2 DEP
$15.66
$25.88
$10.22
$ 0.00
EMP, 3-4 DEP
$16.44
$26.66
$10.22
$ 0.00
EMP, 5+ DEP
$17.24
$27.46
$10.22
$ 0.00
2) Denticare plan is a PPO network same type as the health plan. Denticare
offers approximately the same coverages at a discounted rate of 25% less than
Usual and Customary charges. Employees must seek service from dentist
participating in the Network. At present time their are only two Baytown dentists
in the network. Cost for the Denticare plan is listed below:
EMPLOYEE ONLY $ 8.50
EMP, 1 -2 DEP $ 16.50
EMP, 3.4 DEP $ 23.50
EMP, S+ DEP $ 28.50
la
1 -44
Any specialist used by the employeelred= not currently in the network will have an
opportunity to become a member of the network through a recommendation process,
provided the doctor agrees to contract discounts.
CURRENT'04FLUYEE RATES
The current employee will be responsible for a portion of the premium.
indicates the employee and City contribution.
1
" EMPLOYEE EMPLOYEE EMPLOYER
L %
EMPLOYEE ONLY
EMP, 1 -2 DEP
EMP, 3-4 DEP
EMP, 5+ DEP
PRESENT PROJECTED PRESENT
COST COST COST
The chart below
EMPLOYER
PROJECTED
COST
$ 0.00
$ 42.00
$160.00
$192.00
582.50
$124.50
$362.72
$394.72-
$86.64
$128.64
$362.72
$394.72
S90.76
$132.76
$362.72
$394.72
The pre -tax payment of premiums offsets the stated cost from the real cost. The true
cost to employees because of the preferred tax treatment is reduced.
Example:
$42 premium = approximately $33 real cost in the 20% tax bracket
PLAN CHANGES
Implementation of Preferred Provider Organization (PPO) network. PPO referral is
initiated with specialists referral and hospital admission. Primary care (family)
physicians services are not affected.
• Benefits are paid at 80% of reasonable and customary charges for "in network"
services Benefits are paid at 60% for "out of network" services
• Per hospital admission deductible for "out of network" provider - $300
1 -43
J M In December 1990 the FASB (Financial Accounting Standards 13oara) aeoptea accrual basis
- mandates for measurement of the obligation and accrual of cost during the working life cf
the employee. The GASB (Governmental Accounting Standards Board) has deferred
r r adoption of mandates similar to FASB 106 until other reporting issues have been fully
addressed. GASB is expected to adopt these similar guidelines in the near future.
Regardless of the time frame for adoption of these accounting deadlines, the important issue
is having the resources necessary to pay our bills.
EXISTING RETIREES:
• RATES FOR EXISTING RETIREES (and existing employees who retire prior to 10 -1 -94)
RETIREE
RETIREE
EMPLOYER
EMPLOYER
PRESENT
PROJECTED
PRESENT
PROJECTED
COST
COST
COST
COST
UNDER 65 RET
S 0.00
$ 100.00
$ 160.00
S509.28
1 -2 DEP
$82.50
$ 182.50
$362.72
$1018.56
OVER 65 RET
$ 0.00
$100.00
$160.00
-0-
1-2 DEP
$82.50
$ 182.50
$362.72
- 0 -
• Spouse of existing retiree will continue to be eligible for City of Baytown health benefits
(premium paid by retiree) until spouse is eligible for medicare. At the time the - spouse is
-, eligible for medicare, the City will discontinue pain i tion. Retiree must remain on the
City's coverage to maintain spouse's coverage until spouse reaches age 65 and is medicare
eligible.
• If the spouse of a retiree becomes widowed, the spouse continues at same premium payment
of a retiree only rate.
• Active employees with dependent coverage will be allowed to continue this coverage upon
retirement. No dependents will be added after the active employee retires. In the case of
two employees that are married to each other and they both retire, one may be added as a
dependent. If an active employee chooses to leave City employment before being vested and
their spouse is a retiree of the City they will be eligible to be covered under the retiree's
health plan as a dependent.
1 -46
RETIREE BENEFITS
Currently there are 85 City of Baytown retirees under the existing health benefits plan.
Forty-eight of these are under age 65 and not yet eligible for Medicare coverage. This group
represents a sizable financial liability to the plan. The liability is twofold; 1) Claims Costs
and 2) Future Liability.
1) CLAIMS COST
Of the $2,861,784 of claims paid during the previous 12 months (medical claims only), the
average monthly claim cost per retiree under 65 amounts to $1,045 while the average
monthly claim cost per active employee amounts to $356. Of the $1,447,035 claims paid
during the first 6 months of the 1992/93 policy year (medical claims only), claims totaling
S410,283 were paid on behalf of retirees under 65. The retirees under 65 represent 7% of
the total covered under the plan and over 28% of the claim dollars for this 6 month period.
2) FUTURE LIABILITY
Continuing to provide retiree medical benefits carries a future liability. The real cost for
claims over the remainder of each retiree's life time is $564,722 which in today's dollars
would require the City to invest $207,257 per retiree in an annuity to pay for future medical
costs. These figures are derived actuarially assuming a retiree age of 58 and life expectancy
of 84 years. Similar calculations would have to be made for each current retiree and each
future retiree if the City continues to pay for the retiree medical coverage.
The City has utilized a pay as you go philosophy in paying retiree health benefits. This
philosophy recognizes expenses when they are paid, rather than at the time the liability is
incurred. In order to properly fund the retiree health benefit cost, monies would need to be
budgeted each year the employee works, similar to a pension fund.
I V J •.
" l
1 -45
plan and pay premiums in order to conunue coverage for the spouse until the spouse reaches
age 65. If the retiree that reaches age 65 opts off the City's plan and doesn't continue to pay
the premium, the spouse will be dropped from coverage.
FUTURE RFTIRF.F_S9 hired after 10/1/93
Upon retirement employees hired after 10/1/93 will be eligible to continue medical coverage
under the City's plan in accordance with State Law which allows the City to charge the
actual cost.
MEDICAL DISABELITY RETIREES: (Usually young in age with dependent families)
• Under the age of 65 will retain same benefits as active employees until age 65 is attained.
cW=1bu4euHe&hhe= Revised 7/2M
1 -48
•
I
Reduce co-payment for existing and future retirees and spouses as follows:
IN NETWORK
1993/94 i 80/20
1994/95-. 75/25
1995/96 70130
OUT OF NETWORK
1993/94
60/40
1994/95
55/45
1995/96
50150
FUTURE REIZREES, hired prior to 10 /1 /93 (Current Employees)
• RATES FOR FUTURE RETMEES, hired prior to 10/1/93
Current employees retiring after 10 -1 -94 below the age of 65 with minimum of 10 years of
City of Baytown service will remain eligible for the City's health benefits coverage by
paying the total of the employee and City's contribution. (Retiree true premium $609 vs
active $234 and with retiree true dependent cost $1,218 vs active $519). They will be
allowed to remain on the plan if they so elect for payment of the full active employee rate.
RETIREE RETIREE EMPLOYER EMPLOYER TOTAL
PRESENT PROJECTED PRESENT PROJECTED RETIREE
COST COST COST COST COST
RErEUM ONLY $ 0.00 $ 42.00 $160.00 $192.00 $234.00
RETIM +DEP $82.50 $124.50 $362.72 $394.72 $S19M
• Reduce co- payment for existing and future retirees and spouses the same as existing retirees.
• If the spouse of a retiree becomes widowed, the spouse continues at same premium payment
of a retiree only rate.
• Active employees with dependent coverage will be allowed to continue this coverage upon
retirement. No dependents will be added after the active employee retires. In the case of
two employees that are married to each other and they both retire, one may be added as a
dependent. If an active employee chooses to leave City employment before being vested and
their spouse is a retiree of the City they will be eligible to be covered under the retiree's
health plan as a dependent.
1".
1 -47
Shifting Burden
ASOraq b a rulb�aarw►r400a taabaraa.11lale r e
comaataa Iraaabaedlarea9raap�a, haalYSae gets IM atttl4
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Raised Raised Ineretud
emeldyeea "Doloyeea employ"",
edwyment lee Portion of deductible
Iwaealm the oramfum
insurance payment
_wa: em"..a Heel- Remm mc...wenm. un.
Health care beneJirs for retirees are eroding in many ways and at a
considerable pace. according to a telephone survey of 1.057 employee
henent managers and 200 empiovees by Newark. N.J.-based account-
ine firm KPMG Peat Marwick.
In recent years, many employers have terminated retiree medical
enents. the survev finds. Specifically, the percentage of mid -size
empiovers (those with 200.999 workers) offering retiree health bent
nts fell from as percent in 1991 to 37 oercent in 1992. while the
percentage of large empiovers (1.000 -4.999 workers) offering mtiree
aoveraee declined from 56 Percent to 52 percent. In contrast, retiree
coverage remamed constant at 72 percent among "jumbo" employer.
those with 5.000 or more workers 1.
In addition to cutting benefits. employers are limiting their heal[)
oenefits liability by tightening eligibility standards. For example. th,
report says, many employers have begun implementing lengthol
opEService requirements. or increasing the minimum years of semc
mployees most have before they can receive benefice.
-AEAU OF NAT10NAL AFFAIRS. INC.. Wasnimon. D.C. 20037
McAJI
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Labor Letter'
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Ible to m mm,II rUlEm No Iheir deomOetQ The all atb ppY
due (1) a rt'mm who Is enable for hoth mEamm Woum amt
emoimc a not eligible (2) the ahvmag mlm oe aami Id)
remee Simll pay for the mvm;q (9) die an, may 9momme EIome
9"PrM an=r- if mpnmue (5) the am say wage me Im
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tides wmunoaiv amiiar W ceder mare If= aM1IT112e a em:
tam the hilPs provisions
— a G
. R -etiore obligations smear
Unfunded retiree health benefit liabilities uo 81 %: GAO
By JERRY GEISEL
IINGTON —The cost of
-e. medical benefits that
companies have promised, but
not funded. is rising even as
companies continue to cut or
eliminate benefits.
i'he General Accounting Office
estimates that unfunded em-
piover retiree health liabilities
-ow total $412 billion—$257
billion for active employees and
5155 billion for retirees.
That's an 81% increase from
total liability of 5227 billion —
including $127 billion in un-
funded benefits for active em-
ployees and $100 billion for re-
tirees—in 1988.
Rising health costs contributed
to that increase, as did more
early retirees and longer life ex-
pectancy, noted Donald C.
Snvder, an assistant director in
the GAO's human resources divi-
sion.
"Because early retirees (under
This article is an accurate description
of the retiree health care dilmnm.
A-Y-1
Business Insurance
7 -19 -93
age 65) are not yet eligible for
Medicare. employers pay three to
four times more for their health
care than for retirees" covered
by Medicare. the report noted.
Relatively few employers have
taken the drastic step of termin-
ating retiree health benefits. The
GAO. citing several consultant
surveys. estimates that up to 3%
of employers have terminated
benefits for current retirees and
3% to ME have done so for future
Continued on page 20
GAO report-
Continued from page 2
retirees.
But nearly 70% of empioyers
either have or plan to in the next
year raise retiree premium con-
tributions or otherwise air
their retiree health plans, acco,
ding to a forthcoming report
from A. Foster Higgins & Co.
And another recent survey of
216 plans found that half are in-
creasing retiree contributions.
That study, by William M.
Mercer Inc., indicated that 34%
of retirement plans now have
tighter eligibility standards.
while 26% have caps on company
contributions.
Mercer concluded that future
retirees stand to lose the most-
from an overall cutback in em- '
ployer- provided retirement
plans. Approximately 22% of re-
tiree health plans in the studv
have done away with coverage
for at least some future retirees
and /or their spouses.
Retiree benefit cuts generally
have passed court muster. the
GAO noted. Courts generally
have given employers a green
light to alter or terminate retiree
health care benefits as long as
they had reserved the right to do
so in plan documents.
Employers' freedom to cut .'
benefits means retiree health
benefits are not secure, the GAO
said. "Our review of available
data and health benefit consul. f
tant studies showed that reuree f
health benefits are not secure
under the present employer -
based system because under cer-
tain circumstances they can be
changed whenever and as em-
ployers deem necessary." the re-
port said.
As Congress considers various
health reform proposais. it.
should pav particular attention L
to retirees. especially those
under 65 not vet eligible for
Medicare. who could lose their
coverage, the report added.
The Clinton administration. n as
pa of its still- evolving reform
proposal. has been examining
what employers' responsibilities
will be to provide health care
coverage to retired workers. do
final decisions have oeen maoe.
•
Copies of "Retiree Health Plans:
Health Benefits Not Secure
Under Employer -Based System.
are available from the U.S. Gen.
eral Accounting Office. P.O. Box
60I5. Gaithersburg, Md. 20877;
202 -275 -6241. The first cony
free: additional copses are . ,,
each. Checks should be maae outm
to the Superintendent of Docu-
ments. Specify report .No. GAO,
HRD- 93 -I25. I
pr
Post Retirement Healthcare Liabilities {Estimated as of 12/1992
opk
Co. Name
# of
Actives
# of
Retirees
Retiree Health
Obligation
Obligation
Per EE
American Brands 39,900 Not Rep $275,000,000
$6,892
Ameritech
76,967
49,900
$2,500.000.000
$19.706
Arco
27,700
Not Rep
$600.000.000
$21,661
Am1oc
9200
15,700
$700,000,000
$28,112
AT &T
317,100
138,500
$6,000,000,000
$13,169
Atlantic Ener
2,032
Not Rep
$100,000,000
$49213
Baltimore Gas & Elec
9,000
Not Rep
$300.000,000
$33,333
Bell ABantic
75,700
Not Rep
$1,550,000,000
$20,476
Sell South
96,084
39,500
$2,000,000.000
$14,751
Boeing
159,100
Not Rep
$120010001000
$7,542
Catetpillar,lnc
38,669
Not Rep
$2,400,000,000
$62,085
Comsat
1,645
414
$40,300.000
$19573
Can Edison
19,087
Not Rep
$600,000,000
531,435
Conlin Sank
4,500
Not Rep
$87,000,000
$19,333
Dow Chem
62200
Not Rep
$950,000,000
$15273
DuPont
133,000
Not Rep
$4,000,000,000
$30,075
Enron Corp
7,000
Not Rep
$94,000,000
$13,429
-
Exxon
101,000
Not Rep
$1,000,0001000
$9,901
Gen Electric
284,000
165,000
$2,700,000,000
$6,013
Gen Motors
531,000
Not Rep
$22200,000,000
$41,808
GTE
162,000
Not Rep
$3,100,000,000
$19,136
IBM
344,396
60,905
$2200,000,000
$5,428
Long Island Light
6,600
2,100
$350,000,000
$40=0
Mobil
67AM
Not Rep
$600.000.000
$8,915
Monsanto
39281
18,000
$1200.000,000
$201949
NW Nat Gas
1,276
Not Rep
$8,000,000
$6270
NYNEX
83,900
Not Rep
$5,000,000,0011
$59,595
Occidental Petroleum
24,700
Not Rep
$600.000,000
$24291
Owens Coming
17,300
Not Rep
$344,000,000
519,884
Pacific Gas & Elec
26,700
Not Rep
$1,200,000,000
$44,944
Pacific Telesis
71 An
40,000
$2,500,000.000
$22,346
PepsiCo
338,000
Not Rep
$700,000,000
$2,071
Pub Ser Co of Colarado
6,565
2,375
$145,000,000
$16219
Rockwell
87,004
Not Rep
$1,500,000.000
517241
Sears
413,500
Not Rep
$2,500,000,000
$6,046
Southern Cos
30,402
Not Rep
$700,000,000
$23,025
Southwest Bell
61,200
Not Rep
$3,000,000,000
$49,020
Texas Utilities
15262
Not Rep
$310,000.000
520,312
TRW,
71,300
Not Rep
$750.000.000
510,519
opk
6
ss-
la
ft= CMh6 EdiorinGrief r.INW Pubfisher
fWnt L fidrR Aswdsu Pubisher ifffNa fl WWrt, EdfEor
frig WWmnmw Mw w0V E&x TOM NIm News Editor
Health care alliance
welcome first step
THE NEW FOUND ALLIANCE between President Bill Clinton
and the country's governors is welcome, if for no other reason
than because the White House door was closed for so long.
But we hope that Mr. Clinton. and frankly Mrs. Clinton as well, is
not just making noises of friendliness to his former gubernatorial
colleagues and is truly serious about trying to straighten out
America's health -care mess.
Health care is at the top of everyone's agenda these days, and
states have been trying to deal with the problems of out and care
for many years. Medicaid alone has been overwhelming state gov-
ernments. From a 6% share of state spending in 1980, the cost of
Medicaid has increased to 14% of
the budget in 1991 and is projected
• NMadl 00. J &VtthW to be 28% by 1995. Mr. Clinton cer-
" of. ---�011�'= tainly knows. about that, having
been a governor. much longer than
stakes hove- he has bees a president
bNltiy to As we have- often noted, it is the
out 0- a PI Roft states a`nd the counties that are
feeling the massive budgetary
�'�11���1fOr pinch resulting from a morass of
IMIN News. regulatioos•and an inarticulate vi-
sion of what health care should be
and whom it should serve. Mr.
Clinton took a long stride in trying to work with atates by announc-
ing that conditions for federal health waivers needed for state pro-
grams will be loosened. And Mrs. Clinton added three governors to
her task force to help.
What the president and Mrs. Clinton's task force should do next is
watch what is happening beyond the Beltway where a number
of programs may portend the future. .. .
Health -care reform is happening in the states: Florida, Georgia,
Minnesota, Pennsylvania, Oregon and Vermont among others, have
plans ranging from insurance regulation to managed care, rationing
and state - funded insurance.
U the Clintons want to get ahead on this issue, the place to look is
outside Washington. D.C. Keeping an eye on the states that are
moving ahead should be first priority.
f -51
CITY OF BAYTOWN - PROPOSAL REVIEW
ADMINISTRATION & PREFERRED PROVIDER ORGANIZATION SUBMISSIONS
cm /prefacefinsurance
PALICO & COST CARE $284,884.00
BOON- CHAPMAN & COST CARE $288,538.00
EMPERION $325,434.00
FIRST HEALTH & AFFORDABLE $376,363.00
PROVIDENT & CAPP CARE $416,668.00
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