Loading...
2008 09 22 CC Minutes, Special MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF BAYTOWN September 22, 2008 The City Council of the City of Baytown, Texas met in a special meeting on September 22, 2008 at 5:00 P.M. in the Council Chamber of the City of Baytown with the following in attendance: Lynn Caskey Council Member Brandon Capetillo Council Member Terry Sain Council Member David McCartney Council Member Scott Sheley Council Member Stephen H. DonCarlos Mayor Garrison C. Brumback City Manager Bob Leiper Deputy City Manager Kevin Troller Assistant City Manager Ignacio Ramirez City Attorney Kaythie Darnell City Clerk Council Member Yepez was absent from the special meeting of September 22, 2008. 5:00 P.M. Mayor DonCarlos convened the September 22, 2008 special meeting with a quorum present. 1. Minutes – City Clerk a. Considered approval of the minutes from the August 28, 2008 regular City Council meeting. Motion was made by Council Member Capetillo, seconded by Council Member Caskey approving the minutes from the August 28, 2008 regular City Council meeting. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. Page 2 of 25 Minutes of September 22, 2008 2. MOTIONS a. Received the 2008 Appraisal Rolls certified by Harris Appraisal District and Chambers Appraisal District. City Manager Brumback summarized the agenda item. The 2008 Harris County Appraisal Roll was certified on August 28, 2008. In accordance with Section 26.04(b) of the Texas Property Tax Code, the following values are submitted: Total Appraised Value $2,897,138,734 Total Taxable Value $2,148,951,722 Total Uncertified (Taxable Value) $315,830,349 The 2008 Chambers County Appraisal Roll was certified on August 28, 2008. In accordance with Section 26.04(b) of the Texas Property Tax Code, the following values were submitted: Total Certified Taxable Value $152,380,360 Motion was made by Council Member Sain, seconded by Council Member McCartney accepting 2008 Appraisal Rolls certified by Harris Appraisal District and Chambers Appraisal District. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. b. Received the 2008 Anticipated Collection Rate certified by the City of Baytown Tax Assessor/Collector. City Manager Brumback summarized the agenda item. The City of Baytown Tax Assessor/Collector has certified the anticipated tax collections for the 2008 tax year to be 100%, in accordance with Section 26.04(b) of the Texas Property Tax Code. The Certified Collection rate is the tax assessor/collector's estimate of the total debt collections (current and delinquent years) divided by the current fiscal year's required debt payments. This rate is used in the calculation of the rollback rate and, if other than 100% is used, the following year's calculation would, in effect, be penalized. Motion was made by Council Member Caskey, seconded by Council Member Capetillo accepting the 2008 Anticipated Collection Rate certified by the City of Baytown Tax Assessor/Collector. Page 3 of 25 Minutes of September 22, 2008 Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. c. Received the 2008 Effective and Rollback Tax Rate Calculation for the 2008 tax year (Fiscal Year 2008-2009). City Manager Brumback summarized the agenda item. In accordance with Section 26.04 of the Texas Property Tax Code, the Governing Body must receive the effective tax rate and the rollback rates which are calculated at $0.75384 and $0.84665 per $100 valuation, respectively. These rates and the method of calculation shall be published in accordance with section 26.004 of the Texas Property Tax Code. Motion was made by Council Member Capetillo, seconded by Council Member Caskey accepting the 2008 Effective and Rollback Tax Rate Calculation for the 2008 tax year (Fiscal Year 2008-2009). Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. 3. PROPOSED ORDINANCES Agenda Items 3a through 3f are all related to the adoption of the 2008-2009 Budget for the City of Baytown and could be taken together, if the City Council so chooses, in one motion. City Manager Brumback summarized the Agenda Items 3a through 3f. Motion was made by Council Member Capetillo, seconded by Council Member Sain approving Agenda Items 3a through 3f which are all related to the adoption of the 2008- 2009 Budget for the City of Baytown. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. Page 4 of 25 Minutes of September 22, 2008 a. Ordinance 10,958 authorized emergency expenditures as an amendment to the FY2007-08 Budget due to the recovery and rehabilitation efforts resulting from the devastation caused by Hurricane Ike. Ordinance 10,958 authorizes an emergency expenditure as an amendment to the Fiscal Year 2007-08 due to the recovery and rehabilitation efforts resulting from the devastation caused by Hurricane Ike. The City of Baytown can amend its budget only in cases of grave public necessity to meet an unusual and unforeseen condition that could not have been included in the original budget through the use of reasonably diligent thought and attention. It is projected that the expenses associated with the clean-up efforts of Hurricane Ike will be in excess of $7,500,000. This ordinance places $7,500,000 in CIPF Hurricane Recovery -- $5,000,000 from the fund balance from the General Fund and $2,500,000 from the City's Water and Sewer Fund. ORDINANCE NO. 10,958 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AN EMERGENCY EXPENDITURE AS AN AMENDMENT TO THE FISCAL YEAR 2007- 08 BUDGET DUE TO THE RECOVERY AND REHABILITATION EFFORTS RESULTING FROM THE DEVASTATION CAUSED BY HURRICANE IKE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Ordinance 10,959 adopted the 2008-09 Municipal Budget. Ordinance 10,959 adopts the 2008-09 City of Baytown Budget totaling $110,900,060, which is a $10,738,698 increase or 10.7% over the 2007-08 Budget. The budget includes the technical adjustments discussed at the August 28, 2008 work session. The City of Baytown Charter, Article V., The Budget, Section 45, states the budget shall be adopted by the favorable votes of at least a majority of all members of the whole council. In Section 46, it states the budget shall be finally adopted not later than the twenty-seventh day of the last month of the fiscal year. Should the Council take no final action on or prior to such day, the budget as submitted by the City Manager, shall be deemed to have been finally adopted by the Council. General Fund $59,632,432 General Debt Service Fund 8,757,623 Hotel/Motel Fund 2,002,740 Water and Sewer Fund 32,751,924 Sanitation Fund 4,446,042 Storm Water Utility Fund 844,335 Garage Fund 2,197,282 Page 5 of 25 Minutes of September 22, 2008 Warehouse Operations Fund 267,682 Total $110,900,060 A copy of the budget has been previously provided to the City Council with copies placed in the Sterling Municipal Library and on the City's website. ORDINANCE NO. 10,959 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ADOPTING A BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2008, AND ENDING SEPTEMBER 30, 2009, IN ACCORDANCE WITH THE CHARTER AND ORDINANCES OF THE CITY OF BAYTOWN; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. c. Ordinance 10,960 ratified 2008-2009 Property Tax Increase reflected in the budget. Ordinance 10,960 ratified the property tax increase (as defined by State Law) reflected in the budget. This budget will raise more total property tax revenues than last year's budget by $2,280,247 or 13.84%. Section 102.007(c) of the Texas Local Government Code requires City Council in a vote separate from the adoption of a budget to ratify "the property tax increase" reflected in the budget. With respect to the City's budget, the "Property tax increase" is really an increase in property tax revenues which is a result of increased property values and new improvements due to annexation as well as new development, along with the additional ad valorem taxes necessary for the debt service on the General Obligation Bonds. Because the state statute addresses all increases in revenues as a "property tax increase", the ordinance has been drafted accordingly. ORDINANCE NO. 10,960 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS. RATIFYING THE PROPERTY TAX INCREASE REFLECTED IN THE BUDGET ADOPTED BY THE CITY COUNCIL FOR THE ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2008, AND ENDING SEPTEMBER 30, 2009; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. d. Ordinance 10,961 approved the Baytown Area Water Authority 2008-09 Budget. Ordinance 10,961 approves the 2008-09 Baytown Area Water Authority (BAWA) Budget totaling $6,981,327. The BAWA Board met and adopted the BAWA Budget on Wednesday, August 20, 2008. The Special District Local Laws Code, Section 8104.152 (5), states that the General Manager is to formulate a budget for the BAWA's fiscal year, Page 6 of 25 Minutes of September 22, 2008 as hereinafter provided, subject to the approval of both the BAWA board and the City Council of the City of Baytown. ORDINANCE NO. 10.961 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, APPROVING THE BUDGET FOR THE BAYTOWN AREA WATER AUTHORITY (BAWA) FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008, AND ENDING SEPTEMBER 30, 2009; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. e. Ordinance 10,962 amended the Code of Ordinances, Chapter 98, Utilities, Section 98-59 and 98-91 to increase water and sewer rates. Ordinance 10,962 amends the Code of Ordinances, Chapter 98, “Utilities,” Sections 98- 59 and 98-91 to increase water and sewer rates. Water Rates: • Inside City Base Rate – from $10.86 to $12.49 (includes first 2, 000 gallons) • Inside City Consumption Rate - from $4.12 to $4.74 per 1,000 gallons of water used • Volume User Rate – from $2.70 to $3.11 per 1,000 gallons of water used • Outside City Base Rate – from $21.72 to $24.98 (includes first 2, 000 gallons) • Outside City Consumption Rate - from $6.18 to $7.11 per 1,000 gallons of water used Sewer Rates: • Inside City Base Rate – from $10.86 to $12.49 (includes first 2, 000 gallons) • Inside City Consumption Rate - from $3.92 to $4.51 per 1,000 gallons of water used, with the cap of 12,000 gallons on residential usage. • Volume User Rate (all water purchased from City) – from $2.41 to $2.77 per 1,000 gallons of water used or wastewater delivered • Volume User Rate (all water not purchased from City) – from $2.51 to $2.89 per 1,000 gallons of water used or wastewater delivered • Outside City Base Rate – from $21.72 to $24.98 (includes first 2, 000 gallons) • Outside City Consumption Rate - from $5.88 to $6.76 per 1,000 gallons of water used Billing on or after October 1, 2008, will be calculated at the new rates. ORDINANCE NO. 10,962 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER 98 "UTILITIES," ARTICLE III "WATER SERVICE," SECTION 98-59 "RATES," SUBSECTION (A)(l) "RATE TABLE"; SECTION 98-59 "RATES," SUBSECTION (G) "VOLUME USERS"; ARTICLE IV "SEWER SERVICE," SECTION 98-91 "SEWER SERVICE CHARGE," Page 7 of 25 Minutes of September 22, 2008 SUBSECTION (A) "RATE SCHEDULE" AND SUBSECTION (B) "RESIDENTIAL DWELLING UNITS," SUBPARAGRAPH (1) "INDIVIDUALLY METERED FOR WATER CONSUMPTION"; AND SECTION 98-91 "SEWER SERVICE CHARGE," SUBSECTION (F) "VOLUME USERS" OF THE CODE OF ORDINANCES, BAYTOWN, TEXAS, TO INCREASE UTILITY FEES; CONTAINING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; PRESCRIBING A MAXIMUM PENALTY OF FIVE HUNDRED AND NO/100 DOLLARS ($500.00) FOR EACH VIOLATION THEREOF; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. f. Ordinance 10,963 amended the Code of Ordinances, Chapter 86 "Solid Waste," Article II "Residential Solid Waste," Division 3 "Fees and Charges and Billing Procedures," Section 86-101 "Charge for Collection," Subsections (a), (d) and (e); and Division 2 "Small Business Waste Collection Service," Section 86-166 "Contract for Garbage Collection" of the Code of Ordinances, Baytown, Texas, to increase the collection rate. Ordinance 10,963 amended the Code of Ordinances, Chapter 86 "Solid Waste," Article II "Residential Solid Waste," Division 3 "Fees and Charges and Billing Procedures," Section 86-101 "Charge for Collection," Subsections (a), (d) and (e); and Division 2 "Small Business Waste Collection Service," Section 86-166 "Contract for Garbage Collection" of the Code of Ordinances, Baytown, Texas, to increase the collection rate. The 2008-09 Budget includes a $1.00 per month increase in the sanitation rate. The increase is necessary to fund the increase in contract services provided by Waste Management and escalating operating expenses. The monthly residential sanitation charge will increase from $14.56 to $15.56. The senior citizen charge will increase from $11.80 to $12.80. The charges for those multifamily dwelling unit projects containing eight or fewer dwelling units will increase to $15.56 per unit. When implementing the rates in accordance with the 2006-07 budget ($1 per-month increase), the ordinance to increase the commercial rate was overlooked; however the billed commercial customer rate was increased by $1. An adjustment to the 44 accounts of the commercial customers will be made for the period October 2006 to the present to only apply the rate authorized in the previous ordinance. The new rate will increase $2, from $26.50 to $28.50, to capture the current $1 increase and the previous (2006-2007) $1 increase. Billing on or after October 1, 2008, will be calculated at the new rates. ORDINANCE NO. 10,963 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER 86 "SOLID WASTE," ARTICLE II "RESIDENTIAL SOLID WASTE," DIVISION 3 "FEES AND CHARGES AND BILLING PROCEDURE," SECTION 86-101 Page 8 of 25 Minutes of September 22, 2008 "CHARGE FOR COLLECTION," SUBSECTIONS (A), (D), AND (E) OF THE CODE OF ORDINANCES, BAYTOWN, TEXAS, TO INCREASE RESIDENTIAL COLLECTION RATES; AMENDING CHAPTER 86 "SOLID WASTE," ARTICLE III "COMMERCIAL SOLID WASTE," DIVISION 2 "SMALL BUSINESS WASTE COLLECTION SERVICE," SECTION 86-166 "CONTRACT FOR GARBAGE COLLECTION" OF THE CODE OF ORDINANCES, BAYTOWN, TEXAS, TO INCREASE THE COLLECTION RATE; CONTAINING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; PRESCRIBING A MAXIMUM PENALTY OF FIVE HUNDRED AND NO/100 DOLLARS ($500.00) FOR EACH VIOLATION THEREOF; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. g. Ordinance 10,964 scheduled City Council schedules public hearings on 2008- 2009 tax rate. Ordinance 10,964 proposed to increase tax revenues from property on the tax roll in the preceding year, setting two public hearings on such proposal to increase tax revenues for the 2008-2009 fiscal year; and setting the meeting at which the City Council will vote on the proposed tax rate. City Manager Brumback summarized the agenda item. The City recently received the certified tax rolls. In order to meet the State law that requires setting the tax rate within 60 days of receipt of the certified rolls, and to meet the required action requirements since our proposed tax rate exceeds the effective tax rate, it is necessary for us to begin this process at this meeting. The calculation of the effective and rollback tax rates is complicated and we will discuss the meaning of those "rates" at the Council meeting. Since the proposed tax rate ($0.78703) exceeds the effective tax rate ($0.75384), we are required to take the steps listed in this agenda item. The State law is very specific as to postings, actions, notices and ordinances under these circumstances. The record vote that is required on this ordinance places the consideration of the proposed tax rate on the October 23rd agenda. This ordinance also calls two Public Hearings on the proposed tax rate, one for October 2nd (after the MDD meeting) and one for October 9th. This schedule would allow the Council to set the tax rate on October 23rd which is within the 60-day requirement. Motion was made by Council Member Caskey, seconded by Council Member Capetillo approving Ordinance 10,964. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Page 9 of 25 Minutes of September 22, 2008 Nayes: None. The motion carried. ORDINANCE NO. 10,964 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, PROPOSING TO INCREASE TOTAL TAX REVENUES FROM PROPERTY ON THE TAX ROLL IN THE PRECEDING TAX YEAR BY 4.4 PERCENT; SETTING DATES, TIMES AND PLACES FOR TWO PUBLIC HEARINGS ON A PROPOSAL TO INCREASE TOTAL TAX REVENUES FROM PROPERTIES ON THE TAX ROLL IN THE PRECEDING TAX YEAR BY 4.4 PERCENT; SETTING THE MEETING AT WHICH THE CITY COUNCIL WILL VOTE ON THE PROPOSED TAX RATE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. h. Ordinance 10,965 for the first reading annexing property currently within the extraterritorial jurisdiction of the City of Baytown and being a 361-acre tract of land located west of Barkuloo Road, East of Garth Road, North of Archer Road and South of Interstate 10 in Harris County, Texas. City Manager Brumback summarized the agenda item. Ordinance 10,965 proposes to annex property currently within the extraterritorial jurisdiction of the City of Baytown and being a 360.22-acre tract of land located west of Barkuloo Road, East of Garth Road, North of Archer Road and South of Interstate 10 in Harris County, Texas. This is the first reading of the Ordinance required under the City's Charter. This is an Involuntary Annexation in order to reach the Second Baptist Church property on North Main Street. Motion was made by Council Member McCartney, seconded by Council Member Capetillo approving Ordinance 10,965. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. Page 10 of 25 Minutes of September 22, 2008 ORDINANCE NO. 10,965 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, MAKING CERTAIN FINDINGS; PROVIDING FOR THE EXTENSION OF CERTAIN BOUNDARY LIMITS OF THE CITY OF BAYTOWN, TEXAS, AND THE ANNEXATION OF A 361- ACRE TRACT OF LAND LOCATED WEST OF BARKULOO ROAD, EAST OF GARTH ROAD, NORTH OF ARCHER ROAD AND SOUTH OF INTERSTATE 10 IN HARRIS COUNTY, TEXAS, WHICH SAID TERRITORY LIES ADJACENT TO AND ADJOIN THE PRESENT BOUNDARY LIMITS FOR THE CITY OF BAYTOWN, TEXAS. i. Ordinance 10,966 approved Meet & Confer Agreement with the Baytown Municipal Police Association, Inc. City Manager Brumback summarized the agenda item. Ordinance 10,966 approves a Meet & Confer Agreement with the Baytown Municipal Police Association, Inc. The agreement is for a term of three years. The agreement provides for recruiting incentives in the form of academy reimbursement (up to $2,000), signing incentives (up to $1,500), relocation reimbursement (up to $2,000), and an alternative hiring process (up to 5 years credit for past service). The relocation reimbursement is also available to current employees to encourage them to move into the City if they currently live outside the city limits. At the time of agenda preparation, the Association was still voting on the agreement. It is anticipated that voting will be concluded prior to Council consideration of the agreement. The Association's bylaws require a minimum level of participation in order to ratify the agreement. Motion was made by Council Member Caskey, seconded by Council Member Capetillo approving Ordinance 10,966. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. ORDINANCE NO. 10,966 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING A MEET AND CONFER AGREEMENT WITH THE BAYTOWN MUNICIPAL POLICE Page 11 of 25 Minutes of September 22, 2008 ASSOCIATION; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. j. Ordinance 10,967 amended Chapter 18 “Buildings and Building Regulations,” Article I: In General, Section 18-1 “Registration” of the Code of Ordinances, City of Baytown, Texas, to require contractors performing tree trimming and debris removal services to register and to require persons registered to display and produce their registrations. City Manager Brumback summarized the agenda item. Ordinance 10, 967 amended Chapter 18 “Buildings and Building Regulations,” Article I “In General,” Section 18-1 “Registration” of the Code of Ordinances, City of Baytown, Texas, to require contractors performing tree trimming and debris removal services to register and to require persons registered to display and produce their registrations. The City currently has in place registration requirements for construction, electrical, plumbing, or mechanical work within the City. This ordinance expands the requirements to include tree trimming and debris removal services performed by contractors for a fee. The ordinance also requires that all registrants display their registration when soliciting business and or when requested by the chief building official or police chief. Lastly, the ordinance includes a provision that any required insurance shall include a provision which gives the city 30 days' notice prior to cancellation. Motion was made by Council Member Capetillo, seconded by Council Member McCartney approving Ordinance 10,967. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. ORDINANCE NO. 10,967 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER 18 "BUILDINGS AND BUILDING REGULATIONS," ARTICLE I "IN GENERAL," SECTION 18-1 "REGISTRATION" OF THE CODE OF ORDINANCES, CITY OF BAYTOWN, TEXAS, TO REQUIRE CONTRACTORS PERFORMING TREE TRIMMING AND DEBRIS REMOVAL SERVICES TO REGISTER AND TO REQUIRE PERSONS REGISTERED TO DISPLAY OR PRODUCE THEIR REGISTRATIONS; REPEALING CONFLICTING ORDINANCES; CONTAINING A SAVINGS CLAUSE; PRESCRIBING A MAXIMUM PENALTY OF FIVE HUNDRED AND NO/100 DOLLARS ($500.00) FOR EACH Page 12 of 25 Minutes of September 22, 2008 VIOLATION THEREOF; AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. k. Ordinance 10,968 amended Chapter 22 “Civil Emergencies” of the Code of Ordinances, City of Baytown, Texas, by adding a new article to be numbered and entitled Article III "Post-Disaster Management" to provide for post-disaster temporary accommodations for single-family residences and businesses rendered uninhabitable due to a disaster. City Manager Brumback summarized the agenda item. Ordinance 10,968 amends Chapter 22 “Civil Emergencies” of the Code of Ordinances, City of Baytown, Texas, by adding a new article to be numbered and entitled Article III "Post-Disaster Management" to provide for post-disaster temporary accommodations for single-family residences and businesses rendered uninhabitable due to a disaster. Motion was made by Council Member Captetillo, seconded by Council Member Caskey approving Ordinance 10,968. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. ORDINANCE NO. 10,968 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AMENDING CHAPTER 22 "CIVIL EMERGENCIES," OF THE CODE OF ORDINANCES, CITY OF BAYTOWN, TEXAS, BY ADDING A NEW ARTICLE TO BE NUMBERED AND ENTITLED ARTICLE III "POSTDISASTER MANAGEMENT"; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; PRESCRIBING A MAXIMUM PENALTY OF FIVE HUNDRED AND NO/100 DOLLARS ($500.00); AND PROVIDING FOR THE PUBLICATION AND EFFECTIVE DATE THEREOF. 4. PROPOSED RESOLUTION a. Resolution 1944 cancelled the Regular Council Meeting scheduled for September 25, 2008, and called a Special Council Meeting for Thursday, October 2, 2008, at 5:00 P.M. City Manager Brumback summarized the agenda item. Page 13 of 25 Minutes of September 22, 2008 Resolution 1944 cancels the Regular Council Meeting scheduled for September 25, 2008, and calls a Special City Council Meeting for Thursday, October 2, 2008, at 5:00 p.m. This special meeting is necessary in order for the City Council to hold a public hearing concerning its proposed tax rate for Fiscal Year 2008-09 and to take care of other important City business that may arise. Motion was made by Council Member Sheley, seconded by Council Member Capetillo approving Resolution 1944. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. RESOLUTION NO. 1944 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, CANCELING THE REGULAR COUNCIL MEETING TO BE HELD ON SEPTEMBER 25, 2008, AT 6:30 P.M. IN THE COUNCIL CHAMBERS OF CITY HALL, BAYTOWN, TEXAS; CALLING A SPECIAL COUNCIL MEETING TO BE HELD ON OCTOBER 2, 2008, AT 5:00 P.M. IN THE COUNCIL CHAMBERS OF CITY HALL, BAYTOWN, TEXAS: AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Resolution 1945 authorized the transfer of funds between departments in accordance with Section 68 of the City Charter. City Manager Brumback summarized the agenda item. Resolution 1945 authorizes transfer of funds between departments in accordance with Section 68 of the City Charter. "The City Manager may at any time with the approval of the Council transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department or agency. At the request of the City Manager and within the last three months of the budget year, the Council may by resolution transfer any unencumbered appropriation balance or portion thereof from one office, department or agency to another." This is primarily a "housekeeping" function. Primarily, the necessary transfers are for the purpose of allocating the compensation adjustments and workers compensation savings that was budgeted in the overhead divisions of the major funds. It is necessary to move these compensation adjustments and Page 14 of 25 Minutes of September 22, 2008 budget savings to the departmental budgets to properly allocate the budgets for the realized costs and savings. The financial impact related to the emergency of Hurricane Ike is not reflected in this action. Motion was made by Council Member Sheley, seconded by Council Member Caskey approving Resolution 1945. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. RESOLUTION NO. 1945 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING TRANSFERS OF TWO HUNDRED NINETY-TWO THOUSAND EIGHT HUNDRED EIGHTY- NINE AND NO/100 DOLLARS ($292,889.00) FROM VARIOUS DEPARTMENTS IN THE GENERAL FUND TO GENERAL OVERHEAD TO DISTRIBUTE THE WORKERS' COMPENSATION SAVINGS; AUTHORIZING THE TRANSFER OF FIFTY THOUSAND THREE HUNDRED EIGHTY-EIGHT AND NO/100 DOLLARS ($50,388.00) FROM VARIOUS DEPARTMENTS IN THE WATER AND SEWER FUND TO GENERAL OVERHEAD TO DISTRIBUTE THE WORKERS' COMPENSATION SAVINGS; AUTHORIZING TRANSFERS OF SIX HUNDRED FORTY-SEVEN THOUSAND NINE HUNDRED NINETY-EIGHT AND NO/100 DOLLARS ($647,998.00) FROM GENERAL OVERHEAD TO VARIOUS DEPARTMENTS IN THE GENERAL FUND FOR THE DISTRIBUTION OF COMPENSATION ADJUSTMENTS; AUTHORIZING TRANSFERS OF SIXTY-TWO THOUSAND SIX HUNDRED SIX AND NO/100 DOLLARS ($62,606.00) FROM GENERAL OVERHEAD TO VARIOUS DEPARTMENTS IN THE WATER AND SEWER FUND FOR THE DISTRIBUTION OF COMPENSATION ADJUSTMENTS; AUTHORIZING THE TRANSFER OF FORTY-FOUR THOUSAND SIX HUNDRED SEVEN AND NO/100 DOLLARS ($44,607.00) FROM GENERAL OVERHEAD TO THE HEALTH, PUBLIC WORKS AND FINANCE DEPARTMENTS FOR VARIOUS EQUIPMENT AND SERVICES; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 15 of 25 Minutes of September 22, 2008 5. CONSENT Motion was made by Council Member Sheley, seconded by Council Member Capetillo approving Consent Agenda Items 5a., 5b., 5c., 5.d., 5e., 5f., 5g., 5h., 5i., 5j., 5k., 5l. and 5m. Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley and Mayor DonCarlos. Nayes: None. The motion carried. a. Resolution 1946 authorized the Chambers County Mosquito Control department to use aerial application methods for the purpose of mosquito control within that portion of Baytown that is within Chambers County. Resolution 1946 authorized the Chambers County Mosquito Control department to use aerial application methods for the purpose of mosquito control within that portion of Baytown that is within Chambers County. This is an annual requirement of the Federal Aviation Administration (FAA) to obtain approval from various area communities concerning the Chambers County Mosquito Control District’s aerial spraying program. Since a portion of the City of Baytown is in Chambers County, the Chambers County Mosquito Control District must obtain this permission from the City of Baytown to apply pesticides for the purpose of mosquito control in this area. RESOLUTION NO. 1946 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CHAMBERS COUNTY MOSQUITO CONTROL DEPARTMENT TO USE AERIAL APPLICATION METHODS FOR THE PURPOSE OF MOSQUITO CONTROL WITHIN THAT PORTION OF THE CITY OF BAYTOWN THAT LIES WITH IN CHAMBERS COUNTY, TEXAS; DIRECTING THE MA YOR TO NOTIFY THE FEDERAL AVIATION ADMINISTRATION OF SUCH AUTHORIZATION; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Ordinance 10,969 authorized two agreements with Goose Creek Consolidated Independent School District for law enforcement services. Ordinance 10,969 authorized two agreements with Goose Creek Consolidated Independent School District (the "District") for law enforcement services. One agreement (TRUANCY OFFICER) provides for authorizing one police officer to act as a truancy officer for the District. Consideration for this service is $38,688.00, which is one-half (1/2) of the annual salary including benefits for an officer. Page 16 of 25 Minutes of September 22, 2008 The other agreement (BRIGHT STAR) provides for the City to furnish four police officers to the District to act as security and patrol. One officer shall be assigned to each of the following locations: 1.Lee High School 2809 Market Street Baytown, Texas 77520 2. Sterling High School 300 West Baker Road Baytown, Texas 77521 3. Alternative Learning Program/School Guidance Center 3922 Decker Drive Baytown, Texas 77521 4. Goose Creek Memorial High School 6001 E. Wallisville Rd. Baytown, Texas 77521 The consideration for these services is $211,891.20, which is based upon four officers working eight hours each day for 178 days in a school year based upon an average rate of $37.20. Both contracts cover the 2008-2011 school terms. These agreements will provide the City with additional funds while enabling the police department to maintain the officers on the force. Further, it provides an immediate means by which to respond to incidents at the schools and the officers' presence at the schools helps to prevent incidents. ORDINANCE NO. 10,969 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AN AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH THE GOOSE CREEK CONSOLIDATED INDEPENDENT SCHOOL DISTRICT FOR THE TRUANCY PROGRAM AND AN AGREEMENT FOR LAW ENFORCEMENT SERVICES WITH THE GOOSE CREEK CONSOLIDATED INDEPENDENT SCHOOL DISTRICT FOR THE BRIGHT STAR PROGRAM AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN AN AMOUNT NOT TO EXCEED TWO HUNDRED FIFTY THOUSAND FIVE HUNDRED SEVENTY-NINE AND 20/100 DOLLARS ($250,579.20); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. c. Ordinance 10,970 authorized an interlocal agreement with the Baytown Municipal Development District for funding up to $201,543 for the Baytown Nature Center, Crystal Bay Shoreline Stabilization and Fishing Pier Project. Page 17 of 25 Minutes of September 22, 2008 Ordinance 10,970 authorized an interlocal agreement with the Baytown Municipal Development District for funding of up to $201,543 for the Baytown Nature Center – Crystal Bay Shoreline Stabilization and Fishing Pier Project. This project includes: a. constructing: 1. a 500’ concrete riprap breakwater that connects to the existing breakwater on Burnet Bay (which was constructed using CMP Cycle 2 funding) to help control the ongoing erosion along the Crystal Bay shoreline; 2. a t-head pier over the breakwater into Crystal Bay, giving public access to the recreational and educational resources found at the Baytown Nature Center; 3. a shade structure and interpretive signage on the pier addressing coastal erosion issues to provide a small educational venue to teach the general public and students from surrounding school districts; and 4. a new 150 foot concrete trail, which will connect the existing parking area to the new facilities; and b. sprigging a Spartina alterniflora salt marsh between the breakwater and the shoreline for additional erosion control and to protect and preserve a coastal natural resource area. The base design of the t-head pier is 100 feet in length. The MDD authorized up to $50,000 in additional funding to extend the length of the "usable" portion of the pier, either in overall length or the length of the "T". The City has been awarded a $165,450 grant (CMP - $99,450, City of Baytown - $66,300) from the General Land Office – Coastal Management Program Cycle 13. The breakwater is not eligible for funding with the grant and, if the agreement is approved, will be funded with MDD dollars. A Corps of Engineers Permit will have to be obtained before construction can begin. The total project is estimated to cost $225,000, plus the additional cost for a longer pier. The grant contract with the General Land Office is expected to be complete before October 2008. ORDINANCE NO. 10,970 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INTERLOCAL AGREEMENT WITH THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FOR FUNDING OF THE BAYTOWN NATURE CENTER CRYSTAL BAY SHORELINE STABILIZATION AND FISHING PIER PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 18 of 25 Minutes of September 22, 2008 d. Ordinance 10,971 renewed the annual contract to Holmes Murphy for Benefits Consultant/Broker. Ordinance 10,971 authorizes Holmes & Murphy for Benefits Consultant/Broker in an amount not to exceed $ 40,000 for contract year October 1, 2008 through September 30, 2009. Holmes Murphy will provide the following services: Conduct comprehensive review of summary plan descriptions, contracts, and employee summaries to outline variances and inconsistencies which may lead to employee litigation; Clinical management for utilization monitoring, disease management, and wellness management; Provide annual claims review and recommendations on funding, projections, rate structures and required reserves to maintain financial viability of the health benefits program. This will include assisting the City staff in the preparation of projected new budget figures for the Health/Dental Benefits, Stop Loss, etc; Actuarial services and Underwriting expertise; Inform the City of health care benefits or industry practices, costs, and trends on a local, regional and national basis and its effects on the public and private sector. ORDINANCE NO. 10,971 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE RENEWAL OF THE CONSULTING/BROKERAGE AGREEMENT WITH HOLMES, MURPHY & ASSOCIATES, INC.; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF FORTY THOUSAND AND NO/100 DOLLARS ($40,000.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. e. Ordinance 10,972 renewed the annual contract with United Healthcare of Texas, Inc. for Third Party Administrator of the City of Baytown Medical and Dental Claims and Stop Loss Coverage. Ordinance 10,972 authorizes United Healthcare of Texas, Inc. for Third Party Administrator services in an amount not to exceed $ 876,409 for contract year October 1, 2008 through September 30, 2009. Since the City is self-insured, we utilize a TPA to pay the medical and dental claims, flexible spending accounts, PPO network fees, RX fees, and administrative fees will be directed through the TPA for payment. Additionally, the ordinance renews the annual contract with United HealthCare for Specific and Aggregate Stop Loss Coverage for the City's health benefit program. In April 2008, staff began the analysis of the City's health care costs with the assistance of our benefits consultants, Holmes Murphy. Page 19 of 25 Minutes of September 22, 2008 The City employs approximately 700 full-time employees who are eligible to participate in the City's benefit plans. All eligible dependents of active employees are allowed to elect health, dental, and vision coverage, provided the employee has also elected those coverages. The City also provides health benefits to approximately 200 retired employees and their dependents and to the surviving dependents of deceased employees/retirees. The City's strategy is to offer choice to employees in the form of two self-funded PPO products administered by United HealthCare (UHC). The current plan offerings and claim administrator have been in place since October 2004. Our goal is to offer quality and access at a reasonable price so that employees value the benefits offered. Wellness is an important part of the City's strategy. The City is developing a long-term strategy, which will encourage employees to make healthy decisions, and more effectively utilize their health coverage. The City has a long- standing relationship with UHC; however, the current contract expires October 1, 2008. Therefore, it was necessary to evaluate the market to determine if our current arrangement was the most efficient and effective with respect to pricing, network access, provider discounts, service, and improving the health of our employees. The City's key objectives are: • Maintain strong network access • Obtain aggressive network discounts • Obtain competitive administrative fees • Create a strategic partnership • Receive excellent service • Partner with a vendor to improve employee s health • Limit provider disruption The marketing process resulted in the receipt of six proposals including the renewal from UHC. After final negotiations and a thorough analysis of the costs, network discounts, provider networks, and possible disruption, staff concluded, the UHC renewal offered the most cost effective option for the City. The 2008 2009 UHC renewal for administration was 21.3% lower than the current rates with 3% caps for renewal in years two and three. The UHC stop loss quote was 3.6% lower than current. The total estimated savings over current costs is more than $109,000. Therefore, staff recommends renewing the medical contract with United Health Care with two one-year renewal options not to exceed a 3% administrative increase in each year. ORDINANCE NO. 10,972 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE AGREEMENT WITH UNITED HEALTHCARE OF TEXAS, INC., AS A THIRD PARTY ADMINISTRATOR OF MEDICAL AND DENTAL CLAIMS AND FOR Page 20 of 25 Minutes of September 22, 2008 NETWORK SERVICES ON BEHALF OF THE CITY OF BAYTOWN; AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED THREE HUNDRED TWENTY-NINE THOUSAND TWO HUNDRED FORTY-THREE AND NO/100 DOLLARS ($329,243.00) FOR THE THIRD PARTY ADMINISTRATOR SERVICES; RENEWING THE AGREEMENT WITH UNITED HEALTHCARE OF TEXAS, INC., FOR THE SPECIFIC AND AGGREGATE STOP LOSS COVERAGE; AUTHORIZING PAYMENT OF AN AMOUNT NOT TO EXCEED FIVE HUNDRED FORTY-SEVEN THOUSAND ONE HUNDRED SIXTY-SIX AND NO/100 DOLLARS ($547,166.00) FOR THE SPECIFIC AND AGGREGATE STOP LOSS COVERAGE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. f. Ordinance 10,973 renewed annual contract to OptumHealth Behavioral Solutions (formerly United Behavioral Health) for Employee Assistance Program Services (EAP). Ordinance 10,973 renewed the annual contract for Employee Assistance Program in an amount not to exceed $25,176 for contract year October 1, 2008 through September 30, 2009. There is no increase in price for the second year. The following services are provided: Six counseling sessions per incident or per problem for employees and their family members; Work/Life services (financial and legal services); Parenting and Adult/Elder Services; Critical incident stress debriefing; and training. ORDINANCE NO. 10,973 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE ADMINISTRATIVE SERVICES AGREEMENT WITH OPTUMHEALTH BEHAVIORAL SOLUTIONS, F/K/A UNITED BEHAVIORAL HEALTH FOR THE CITY'S EMPLOYEE ASSISTANCE PROGRAM; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF TWENTY- FIVE THOUSAND ONE HUNDRED SEVENTY-SIX AND NO/100 DOLLARS ($25,176.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. g. Ordinance 10,974 renewed the annual contract to San Jacinto Medical Group for City Physician Services. Ordinance 10,974 authorizes San Jacinto Medical Group for City Physician services in an amount not to exceed $ 113,100 for contract year October 1, 2008 through September 30, 2009. This is the fourth year the City has utilized Dr. Steven Melcher with San Jacinto Medical Group and they continue to provide excellent service to the City of Baytown. Page 21 of 25 Minutes of September 22, 2008 ORDINANCE NO. 10,974 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING CITY PHYSICIAN SERVICES WITH SAN JACINTO MEDICAL GROUP; AUTHORIZING PAYMENT FOR SUCH SERVICES IN AN AMOUNT NOT TO EXCEED ONE HUNDRED THIRTEEN THOUSAND ONE HUNDRED AND NO/100 DOLLARS ($113,100.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. h. Ordinance 10,975 removed the statutory maximum contribution rate limit on Texas Municipal Retirement System. Ordinance 10,975 will allow the city to impose its own "limit" on the contribution rate by using its discretion in determining which potential plan improvements to adopt, or not adopt, based on the calculated contribution rate. The TMRS actuary will calculate the cost of future adoptions and valuation studies each year and forward that rate to the City. By adoption of this ordinance, the City agrees to fully fund the costs of the pension benefits included in the City's plan on a yearly basis as part of the annual budget adoption. ORDINANCE NO. 10,975 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, ELECTING FOR THE CITY TO MAKE CURRENT SERVICE AND PRIOR SERVICE CONTRIBUTIONS TO THE CITY'S ACCOUNT IN THE MUNICIPAL ACCUMULATION FUND OF THE TEXAS MUNICIPAL RETIREMENT SYSTEM AT THE ACTUARIALLY DETERMINED RATE OF TOTAL EMPLOYEE COMPENSATION; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. i. Ordinance 10,976 renewed the Purchased Services Agreement with San Jacinto Medical Group for an employee health clinic including the medical services, supplies and location. Ordinance 10,976 renewed the Purchased Services Agreement with San Jacinto Medical Group for the City of Baytown Wellness Clinic in an amount not to exceed $120,000 for contract year October 1, 2008 through September 30, 2009. The ordinance authorized the City to enter into an agreement with San Jacinto Medical Group to reimburse for the expenses of the salary and benefits to hire a licensed physician's assistant or a nurse practitioner. This individual will provide free of charge wellness and medical services three days a week to City of Baytown employees and Page 22 of 25 Minutes of September 22, 2008 retirees only. The City of Baytown Employees Health & Wellness Clinic will provide education regarding healthy behaviors and see patients by appointment for acute care, prevention and screening. By providing these services, the employee and the City will save on the costs of a doctor office visit, unnecessary laboratory and x-ray fees and numerous other costs associated with office visits. The employee health and wellness clinic will be located at San Jacinto Medical Groups' current occupational health clinic under the direction of Dr. Steven Melcher. The clinic will be responsible for charting and documenting the visits and for tracking costs that the clinic has saved the employee benefits plan. ORDINANCE NO. 10,976 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS. RENEWING THE PURCHASED SERVICES AGREEMENT WITH SAN JACINTO MEDICAL GROUP FOR AN EMPLOYEE HEALTH CLINIC INCLUDING THE MEDICAL SERVICES, SUPPLIES AND LOCATION; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, IN AN AMOUNT NOT TO EXCEED ONE HUNDRED TWENTY THOUSAND AND NO/100 DOLLARS ($120,000.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. j. Ordinance 10,977 awarded the second renewal of the annual Thermo Pavement Markings Contract. Ordinance 10,977 awarded the second renewal of the annual thermo pavement markings contract to Highway Technologies, L.P., in the amount of $179,745.00. Highway Technologies, LP., submitted a written request to renew the current contract for the same pricing, terms and conditions. This contract will be used for restriping of thermoplastic reflectorized pavement markings, thermoplastic railroad crossing legends and lane markings. Highway Technologies continues to provide excellent service. ORDINANCE NO. 10,977 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE ANNUAL THERMO PAVEMENT MARKINGS CONTRACT WITH HIGHWAY TECHNOLOGIES, L.P., AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF ONE HUNDRED SEVENTY- NINE THOUSAND SEVEN HUNDRED FORTY-FIVE AND NO/100 DOLLARS ($179,745.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 23 of 25 Minutes of September 22, 2008 k. Ordinance 10,978 authorized expenditures for the residential solid waste collection and disposal services contract. Ordinance 10,978 authorized expenditures for the residential solid waste collection and disposal services contract to Waste Management of Texas in the amount of $2,338,857.12. Current per residential unit pricing is $10.08. Effective October 1st, the new pricing per residential unit will be $10.58 for 18,422 residential units. Monthly cost is $194,904.76. The initial term of the contract commenced on October 1, 2005, and expires September 30, 2010. The following chart indicates each year’s unit pricing under the terms of the contract: Year Commencing Price per Unit October 1, 2005 $9.06 October 1, 2006 $9.60 October 1, 2007 $10.08 October 1, 2008 $10.58 October 1, 2009 $11.11 ORDINANCE NO. 10,978 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING EXPENDITURES FOR THE RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL SERVICES CONTRACT TO WASTE MANAGEMENT OF TEXAS IN THE AMOUNT OF TWO MILLION THREE HUNDRED THIRTY- EIGHT THOUSAND EIGHT HUNDRED FIFTY-SEVEN AND 12/100 DOLLARS ($2,338,857.12); MAKING PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. l. Ordinance 10,979 awarded the third renewal of the annual gasoline and diesel fuel contract. Ordinance 10,979 awarded the third renewal of the annual gasoline and diesel fuel contract to Oil Products Distribution, Ltd., in the amount of $2,039,413.58. Due to the high cost of fuel, we recommend renewing this annual contract early and changing the term dates to avoid exceeding the allowable award total. Oil Products Distribution, Inc., submitted a written request to exercise their renewal option for another term for the same profit margin. The total amount includes a 25% increase to the original contract due to the increased cost for fuel implemented last year. The price per gallon of fuel is based on the daily Oil Publication Information Sheet (OPIS) price per gallon delivered. Currently, the City’s contract is for flat OPIS (+or-zero) margin. If the City were to go out for bid rather than renew, the OPIS profit margin would most likely be plus OPIS which would Page 24 of 25 Minutes of September 22, 2008 increase fuel costs considerably. The market for fuel is volatile and freight costs for fuel transport have increased considerably since initiation of this contract three years ago. The City of Baytown’s portion of this contract is $1,272,979.15. There is no guarantee which direction the market will go, however, it would be in the best interest of the City of Baytown to maintain the flat OPIS profit margin. The City of Baytown may terminate this contract with proper notice at any time and go out for bid. The awarded total includes all taxes and environment fees for all entities (City of Baytown, Goose Creek ISD, Barbers Hill ISD, Lee College, and City of Seabrook) included in the Interlocal Contract for fuel. ORDINANCE NO. 10,979 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, RENEWING THE CONTRACT OF OIL PRODUCTS DISTRIBUTION, LTD., FOR THE ANNUAL GASOLINE AND DIESEL FUEL CONTRACT AND AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF TWO MILLION THIRTYNINE THOUSAND FOUR HUNDRED THIRTEEN AND 58/100 DOLLARS ($2,039,413.58); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. m. Ordinance 10,980 authorized a professional services agreement for the Houston High Intensity Drug Trafficking Area Program with Stanley E. Furce, Individually and d/b/a Research International. Ordinance 10,980 authorized a professional services agreement for the Houston High Intensity Drug Trafficking Area Program with Stanley E. Furce, Individually and d/b/a Research International. Since September 1995, the City has administered federal funds designated for the operation of the Houston High Intensity Drug Trafficking Area ("HIDTA") Major Offender Project. This agreement is similar to that which was entered into last year and is contingent upon funding by grant/award made available through the Office of the National Drug Control Policy ("ONDCP"). The agreement obligates the contractor to provide professional services as directed by HIDTA Executive Committee and ONDCP. No City funds will be used. ORDINANCE NO. 10,980 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A PROFESSIONAL SERVICES AGREEMENT WITH STANLEY E. FURCE, INDIVIDUALLY AND D/B/A RESEARCH INTERNATIONAL; AUTHORIZING PAYMENT FOR SERVICES UNDER THE CONTRACT FROM GRANT FUNDS; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Page 25 of 25 Minutes of September 22, 2008 6. EXECUTIVE SESSION Public notice is given that the City Council may elect to go into executive session at any time during the meeting in order to discuss any matters listed on the agenda when authorized by the provisions of the Open Meetings Act, Chapter 551 of the Texas Government Code, and that the City Council specifically expects to go into executive session on the matters enumerated herein below, if any. In the event the Council elects to go into executive session regarding an agenda item, the section or sections of the Open Meetings Act authorizing the executive session will be publicly announced by the presiding officer. 7. CITY MANAGER'S REPORT a. Hurricane Ike Update 8. ADJOURN Motion was made by Council Member Sain, seconded by Council Member Caskey adjourning the September 22, 2008 special meeting. The vote was as follows: Ayes: Council Members: Caskey, Capetillo, Sain, McCartney, Sheley, and Mayor DonCarlos. Nayes: None. The motion carried. 6:00 P.M. Mayor DonCarlos adjourned the special City Council meeting of September 22, 2008. ____________________________________ Kaythie Darnell, City Clerk City of Baytown