Loading...
HomeMy WebLinkAboutMinutes City Council - 02/09/1999I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Council Meeting of the City of Corpus Christi of February 9, 1999, which were approved by the City Council on February 16, 1999. WITNESSETH MY HAND AND SEAL, this 16th day of February, 1999. Armando Chapa City Secretary SEAL MINI JTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting February 9, 1999 2:05 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Melody Cooper Council Members.: Javier D. Colmenero Alex L. Garcia Jr.* Dr. Arnold Gonzales Betty Jean Longoria John Longoria Edward A. Martin Dr. David McNichols City Staff: City Manager David R. Garcia City Attorney James R. Bray Jr. City Secretary Armando Chapa Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. Edward Seeger, Corpus Christi Metro Ministries, following which the Pledge of Allegiance to the flag of the United States was led by Council Member Gonzales. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the regular Council meeting of January 26, 1999. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * * Mayor Neal called for petitions from the audience. Mr. Jack Ussery, 6234 Norchester, presented plans to the Council members on how to build a house for purple martin birds, which he said are dependent on humans for their shelter. Mr. Jack Gordy, 7226 Owen Court, said he had appeared before the Council several times and written 29 letters regarding illegal signs in the rights of way (ROW). He said the sign ordinance went before the Planning Commission but no action has been taken on their recommendations. He said the Council and staff should enforce the ordinance. Mayor Neal asked City Manager Garcia about the status of the sign ordinance. Mr. Garcia said the Planning Commission, after holding several meetings on the issue, opted to retain the existing ordinance. Council Member John Longoria said Mr. Gordy's complaint is that the sign Minutes Regular Council Meeting February 9, 1999 Page 2 ordinance is in effect but it is not being enforced with regard to illegal signs in the ROW. Mr. Garcia noted that there are a variety of signs that are illegally placed in the ROW, and the issue is the level of effort and expense that will go into enforcing the ordinance. He added that that provision is enforced on a complaint basis. Council Member Martin said the Council had referred the issue to the Planning Commission for their review and they have not yet brought their report back to the Council. Mr. Garcia said they will provide a report. Ms. Kay Noyes, 930 Coral, said she had spoken with her neighbor regarding several issues that had come before the Council, including lobbyists, consultants, renaming Agnes Street and leaks in City Hall. Mrs. Agnes Horn, 1525 Clodah, said the G.I. Forum has an office located in the same building as the Joe Garza Recreation Center (3204 Highland). She said she was in the office recently when a delegation of people began inspecting a portion of the building as a possible site to house curfew violators. Mrs. Horn strongly objected to that idea, saying it would be detrimental to the young people who use the center and to the students at Zavala Elementary located down the street. Mayor Neal replied that some members of the delegation to whom Mrs. Horn was referring were on the Crime Control and Prevention District Board. He said her concerns would be relayed to the board members, and he added that no proposals of that kind have been brought to the Council. Council Member Betty Jean Longoria asked about the status of the Crime Control Board's project. City Manager Garcia explained that no decisions have been made on the establishment of a center for curfew violators, although it is a priority of the Crime Control District. He said a partnership is being developed with the city's Park and Recreation Department, Corpus Christi Independent School District and the Crime Control Board to address that issue. Mr. Garcia said the delegation has looked at several sites, including a portion of the Joe Garza Center. Mrs. Horn continued to object to the idea of placing the Crime Control District's center there and she urged the Council to reject it. Responding to Council members' questions about the issue, Mr. Garcia said the Crime Control Board is working to combine two existing programs --a truancy program that operates during the day and a center for curfew violators that operates in the evening. Council Member Gonzales said he agreed with Mrs. Horn that the Joe Garza site would not be appropriate for the Crime Control Board's curfew center. Mr. Roy Martinez, 1440 Dahlia, referred to the previous issue about illegal signs in the ROW. He said he attended the Planning Commission meeting where they recommended sending the sign ordinance back to the City Council with the recommendation that the Council provide funding Minutes Regular Council Meeting February 9, 1999 Page 3 for enforcement of it. Mr. Martinez also said the Crime Control District Board budgeted $557,604 for a program director, case manager, counselors, and operational costs for FY 98-99 but the funds have not been expended. He said state law requires an annual audit of the Crime Control District, and he recommended that the Council and the Crime Control Board postpone any expenditures for a juvenile assessment center until an audit has been conducted. Mr. Isaac Valencia, President of the Corpus Christi Police Officers Association, commented on the police resource utilization study that was released that day. He said that in 1997 the POA conducted its own survey (at no cost to the city), and many of the same conclusions were drawn by the management study. However, he said, the consultant's study does not portray some problems that exist in the Police Department which have been evidenced by recent lawsuits. He distributed copies of the POA's study and he said they look forward to the process continuing. Council Member McNichols asked if Mr. Valencia was speaking on behalf of the POA or himself, and he replied that he was representing the association. Mr. J.E. O'Brien, 4130 Pompano, referred to a memo to the Council regarding the status of the L -Head bait stand construction project, which he said he hopes will be underway soon. Mr. O'Brien also asked when the cost of raw water and gas will be included on the new utility bills, and he suggested that the recycling schedule could have been included in the same mailing as the utility bills. He added that electric competition is needed in Corpus Christi, referring to the situation where Central Power and Light accused a retired nun of tampering with her electric meter. Mr. Phil Rosenstein said the recent clean up day in Corpus Christi uncovered the problem that senior citizens have with disposing of their hazardous materials, such as paint thinner and turpentine. He said many of them cannot deliver the materials to the landfill on the designated quarterly collection days and he suggested that some provision be made to address that concem. Mr. R.F. Hasker, 1813 Wallace, said the City Manager had stated that Mr. Glynn Pugh had never won an issue at the Texas Public Utility Commission. Mr. Hasker said that was incorrect because he said Mr. Pugh successfully presented Mr. Hasker's case to the PUC, which resulted in a refund of $71 million to the ratepayers of Corpus Christi. A citizen said Corpus Christi is supposed to be a Christian city to the rest of the world, and she said she has been persecuted for not being Catholic. She said the "rock idol" statue needs to be removed. Mr. Joe Alley, a juvenile probation officer with the Nueces County Juvenile Department, said he is one of the people who has been working with city staff in an advisory capacity on the creation of a curfew center. He said youth who would use the center are currently being housed at the TRIP Center and, contrary to Mrs. Horn's concerns, they are not out of control while they are being detained. He said the main reason for trying to locate the new center in an existing facility is to avoid Minutes Regular Council Meeting February 9, 1999 Page 4 the expense of constructing a new facility. Mr. Alley pointed out that the layout of the Joe Garza Center makes it impossible to mix the youth populations --the youth using the recreation center and the curfew and truancy violators. Rev. Bob Jones said he was addressing the Council because he had received calls from residents who live near the Joe Garza Center. He said they are concerned about the possibility of the curfew center being located there. Rev. Jones said the center's director, Mr. Joe Garza (no relation), has worked hard to make the center a safe haven for youth in that neighborhood and the curfew center would create a negative image. Council Member John Longoria pointed out that the youth who would use the new center would be curfew violators and truants. Mr. Alley added that if a youth becomes disruptive, he would be charged with resisting arrest and he would be taken to the Juvenile Justice Center. Mr. Longoria also said Mrs. Horn and Rev. Jones have a point about the need to be sensitive to the stigma that is associated with the curfew center being located in a Westside neighborhood. Mr. Longoria suggested that the Crime Control District Board provide regular reports to the Council. * * * * * * * * * * * * * Mayor Neal called for consideration of consent motions, resolutions, ordinances and ordinances from previous meetings on Items 2-6. Council members requested that Items 3 and 5 be withheld for discussion. There were no comments from the audience. City Secretary Chapa polled the Council for their votes and the following were passed: 2. M99-029 Motion approving the purchase of steel traffic signal structures from Structural & Steel Products Inc., Fort Worth, Texas, based on low bid, in accordance with Bid Invitation No. BI -0054-99 for a total of $58,231. These steel traffic structures, which include 22 masts, 16 luminaire extensions, 16 luminaire arms, 22 mast arms and 22 sets of anchor bolts will be used by the Traffic Signals Division of the Street Department. Funds have been budgeted in FY 98-99 by the Street Department. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. 4. M99-031 Motion authorizing the City Manager or his designee to execute a contract for consulting services with the Nueces County Soil and Water Conservation District in an amount not to exceed $30,000 for soil assessment, planting design, planting methodology, planting Minutes Regular Council Meeting February 9, 1999 Page 5 installation, and interpretative signage for the Falcon Park/Oso Creek Wetland Demonstration project. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. 6. FIRST READING ORDINANCF Amending the Code of Ordinances, City of Corpus Christi, Chapter 53 - Traffic, Section 53- 250 - Schedule I, One-way Streets and Alleys, Section (A-1) School Areas, by establishing a one-way traffic pattern on (a) Devon Drive in the direction of Gollihar Road to Alexander Street, and on (b) Alexander Street in the direction of Devon Drive to Spring Street during the school hours of Fannin Elementary School. The foregoing ordinance passed on first reading by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 3, engineering services for Sector 8 of the landfill. Responding to Council Member McNichols, Mr. Kevin Stowers, Senior Engineering Contracts/Funds Administrator, said Mr. Andy Leal, Director of Solid Waste Services, was out of town. Mr. Stowers said construction on Sector 8 is scheduled to begin in April 1999, and the life cycle of Sector 7 is expected to end in August 1999. He added that the Elliott Landfill can still be used for approximately five more years. City Secretary Chapa polled the Council for their votes: 3. M99-030 Motion authorizing the City Manager or his designee to execute an engineering services contract with Shiner, Moseley and Associates, Inc. in an amount not to exceed $61,000 for the J.C. Elliott Landfill Sector 8 development project. The foregoing motion passed by the following vote: Colmenero, Cooper, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia and Gonzales absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 5, acquisition of land parcel at water treatment plant. Minutes Regular Council Meeting February 9, 1999 Page 6 Council Member McNichols asked about the timing of acquiring properties near the Stevens Water Treatment Plant. City Manager Garcia said parcels which are in the perimeter of the plant's future expansion are acquired when they are placed on the market and a reasonable purchase price can be negotiated. Council Member Martin asked about the location of another piece of property that the city acquired 17 years ago which has a house on it. Mr. Angel Escobar, Acting Director of Engineering, referred to a map of the site to point out the location. Responding to other questions from Mr. Martin, Mr. Ed Garafia, Water Superintendent, said there are no immediate plans for the land being acquired. Referring to the proposed contract summary, Mr. Martin also questioned the provision which states that the buyer has the right to possess the property 90 days after closing. He said he thought that would create liability concerns. City Attorney Bray replied that the seller is essentially in the position of a tenant in that case. He said there are liability concerns to the extent that there could be an injury to a tenant for which the landlord could be responsible in some circumstances, although the exposure is not that great. Mr. Martin suggested that the city enter into a contract with specific performance provisions, obtain the Council's approval, but wait to close until the seller is ready to leave. Mr. Bray said staff will look into that. Mr. Garafia added that when that property is acquired, the inground pool will be filled in. City Secretary Chapa polled the Council for their votes as follows: 5. M99-032 Motion authorizing the acquisition of Parcel No. 5 located at 12902 Hearn Road between Brooklane Drive and Perry Lane for $167,000 in connection with the O.N. Stevens Water Treatment Plant expansion project. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal opened the public hearing on the following zoning case: 7. Case No 199-2. David Grant dba Illusions: A change in zoning from an "A-1" Apartment House District and "A-2" Apartment House District to a `B-1" Neighborhood Business District on Bayview, Block 2, Lots 6, 7, and 8, located on the northwest corner of Craig and Second Streets. Minutes Regular Council Meeting February 9, 1999 Page 7 City Secretary Chapa said the Planning Commission and staff recommended denial of the "B-1" District, and in lieu thereof, approval of an "AB" Professional Office District. No one appeared in opposition to the zoning change. Council Member Cooper made a motion to close the public hearing, seconded by Council Member McNichols, and passed (Garcia absent). Mr. Chapa polled the Council for their votes as follows: 7. ORDINANCE NO. 023556 Amending the Zoning Ordinance upon application by David Grant dba Illusions, by changing the zoning map in reference to Lots 6, 7, and 8, Block 2, Bayview Addition from "A-1" Apartment House District and "A-2" Apartment House District to "AB" Professional Office District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal opened the public hearing regarding reenacting the minor curfew. He then called for comments from the audience, and there were none. Council Member John Longoria made a motion to close the public hearing, seconded by Council Member Cooper, and passed (Garcia absent). Mr. Longoria pointed out that since the implementation of a daytime curfew and increased enforcement of the nighttime curfew, juvenile arrests have decreased 43% for violent crimes and 46% for non-violent crimes from 1995 to 1998. Council Member Martin said state law requires that a city review its curfew ordinance every three years, hold public hearings, and determine whether to continue it. Mr. Bray said the ordinance was readopted in October 1995. Mr. Martin asked if there was a problem with the citations that were issued in the interim. Mr. Bray said staff is reviewing that. City Secretary Chapa polled the Council for their votes as follows: 8. FIRST READING ORDINANCE Continuing, re-enacting, and adopting Corpus Christi City Code Sections 33-40, 33-41, 33- 42, and 33-42.1 relating to curfew for minors, duties of parents respecting minor curfews, inducement of minor curfew violations, and permitting violation of minor curfew on certain premises; providing for penalties under City Code Section 1-6. Minutes Regular Council Meeting February 9, 1999 Page 8 The foregoing ordinance passed on first reading by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal said he would postpone Item 9 until 4 p.m. that day. He proceeded with the rest of the regular agenda and opened discussion on Item 10, Leopard Street improvements project. He called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 10. M99-036 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the contract with Goldston Engineering Inc. in the amount of $50,500 for engineering services associated with the Leopard Street improvements project. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 11, commercial paper interim financing for utility projects. He called for comments from the audience, and there were none. Council Member McNichols questioned why the amounts of the short-term commercial paper financing would need to be changed since the city has a Combined Utilities Fund and the financing is for projects within that fund. City Manager Garcia said the city generally has some flexibility to do as Dr. McNichols suggested within the major cost categories; for example, within the stormwater fund the city can issue construction projects as the monies become available. He said there was an allocation of the $50 million cap among the three major utilities: stormwater, wastewater and water. He said they are now changing the aggregate allocation which is based on the cumulative effect of a number of different construction projects within each of the funds. Mr. Garcia said the commercial paper appropriation is modified on an annual basis according to the needs in the capital improvement program. Mr. Joe Montez, Director of Management and Budget, pointed out that a revenue bond sale is anticipated in April 1999. Mr. Garcia also referred to an exhibit in the agenda material which illustrates the adopted budget for the stormwater, wastewater, and water programs, the proposed amendments; and the subsequent amended budgets. Responding to Council Member Martin, Ms. Grace McNett, Capital Budget Officer, said this Minutes Regular Council Meeting February 9, 1999 Page 9 action is necessary due to the requirement for awarding contracts and certifying funds according to the City Charter. Mr. Martin agreed with Dr. McNichols' suggestion about interim funding for public utilities in general without having to specify the amounts in the various utilities funds. Council Member Colmenero asked about the proposed reduction of $5.1 million in the wastewater program. Mr. Garcia replied that the amendment would lower the budget in the wastewater program because there are $21.6 million of wastewater projects for which those funds need to be encumbered during the year. City Secretary Chapa polled the Council for their votes: 11. ORDINANCE NO. 023557 Ordinance amending Ordinance No. 023206 which appropriated $50,000,000 from the sale of commercial paper to increase the No. 895 Commercial Paper -Storm Water Capital Improvements Project Fund by $870,000 to $2,800,000; to increase the No. 805 Commercial Paper -Water Capital Improvements Project fund by $4,230,000 to $25,530,000; and to decrease the No. 850 Commercial Paper -Wastewater Capital Improvements Project Fund by $5,100,000 to $21,670,000 to fund various eligible water, wastewater, and stormwater projects on the FY 97-98 and FY 98-99 capital improvements project lists. An emergency was declared and the foregoing ordinance passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 12, drainage and bridge improvements. He called for comments from the audience, and there were none. Council Member Martin said he has an interest in property on Corn Products Road, and he asked if the Hopkins Road drainage improvement project will serve Corn Products Road; Mr. Escobar said it will not. City Secretary Chapa polled the Council for their votes as follows: 12. M99-037 Motion authorizing the City Manager or his designee to execute a contract for engineering services with Shiner, Moseley & Associates Inc. for a total fee not to exceed $36,000 for the Hopkins Road drainage improvements, Wooldridge timber bridge replacement, and Rojo Street drainage improvements. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. Minutes Regular Council Meeting February 9, 1999 Page 10 Mayor Neal opened discussion on Item 13, Salt Flats and Leopard/Brownlee drainage improvements. He called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 13. M99-038 Motion authorizing the City Manager or his designee to execute a contract for engineering services with Urban Engineering for a total fee not to exceed $161,000 for the Salt Flats drainage system improvements and Leopard/Brownlee drainage improvements. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * ** Mayor Neal opened discussion on Item 14, pre -planning for post hurricane/disaster recovery operations. He called for comments from the audience, and there were none. Responding to Council Member McNichols, Mr. Stowers said this item is part of the annual management, preparation and readiness program to ensure that the companies involved are still able to perform and that they possess the necessary insurance certificates. He said the contract also requires that Shiner, Moseley & Associates review all of the changes that may have occurred through the Federal Emergency Management Agency, Department of Public Safety and the Department of Emergency Management. He said the consultant will also conduct a training exercise with city staff and the contractors. City Secretary Chapa polled the Council for their votes as follows: 14. M99-039 Motion authorizing the City Manager or his designee to execute Amendment No. 3 to the contract for engineering/consulting services with Shiner, Moseley and Associates Inc. in an amount not to exceed $20,000 for pre -planning for post hurricane/disaster recovery operations for 1999. The foregoing motion passed by the following vote: Colmenero, Cooper, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye"; Garcia absent. * * * * * * * * * * * * * Mayor Neal opened discussion on Item 15, drainage improvements and sewer installations in specific subdivisions. He called for comments from the audience, and there were none. Minutes Regular Council Meeting February 9, 1999 Page 11 *Council Member Garcia arrived at the meeting at 3:37 p.m. Responding to Council Member Martin, Mr. Escobar said the Bass Subdivision had been developed while it was located outside the city limits and the city subsequently annexed it and identified it as needing sanitary sewers. He also briefly discussed specific fees associated with the proposed contract. In response to another question from Mr. Martin, Mr. Escobar said that Mr. Randy Thompson of J.R. Thompson Engineering is a local engineer. He added that Bass & Welsh Engineering, part of the selected engineering team, is not associated with Bass Subdivision. City Secretary Chapa polled the Council for their votes as follows: 15. M99-040 Motion authorizing the City Manager or his designee to execute a contract for engineering services with J.R. Thompson Engineering for a total fee not to exceed $405,500 for the Glen Arbor and Crossgate subdivision drainage improvements; Mary Carroll Channel widening from Rodd Field Road to Oso Creek, drainage system water quality improvements; and sanitary sewer installations in developed areas: Bass Subdivision. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." ************* Mayor Neal opened discussion on Item 16, wastewater microwave communication system. He called for comments from the audience, and there were none. Responding to Council Member McNichols, City Manager Garcia said that as expansions to the city's existing treatment facilities are designed, the automated control system is being incorporated. City Secretary Chapa polled the Council for their votes as follows: 16. M99-041 Motion authorizing the City Manager or his designee to execute a contract for engineering services with Bath Engineering for a total fee not to exceed $124,816 for the wastewater microwave communication system. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." * * * * * * * * * * * * * Minutes Regular Council Meeting February 9, 1999 Page 12 Mayor Neal opened discussion on Item 17, Oso Treatment Plant projects. He called for comments from the audience, and there were none. City Secretary Chapa polled the Council for their votes as follows: 17. M99-042 Motion authorizing the City Manager or his designee to execute a contract for engineering services with HDR/Simpson for a total fee not to exceed $267,600 for the Oso Plant grit chamber and troughs structure rehabilitation and lift station overhead crane/rail system projects. The foregoing motion passed by the following vote: Colmenero, Cooper, Garcia, Gonzales, B. Longoria, J. Longoria, Martin, McNichols, and Neal voting "Aye." ************* Mayor Neal called for a brief recess. * * * * * * * * * * * ** Mayor Neal opened discussion on Item 9, group health insurance. City Secretary Chapa stated that Council Members Colmenero and McNichols had filed conflict of interest affidavits and would abstain from discussing or voting on Item 9. The Mayor then called for comments from the audience. Mr. Jake Henry Jr., President of Christus Spohn Health System, urged the Council to reject the motion to enter into a contract with Humana Insurance Company. He said the Humana contract would require an additional $400,000 of unbudgeted city funds when instead a surplus can be achieved if the Council awards the contract to Entrust/Spohn. Mr. Henry said that 85% of employers with 500 or more employees are generally self-funded, as was the City of Corpus Christi for several years prior to its current fully funded contract with Humana. Mr. Henry pointed out that city staff had recommended the Entrust/Spohn contract when it was first presented to the Council on January 19, 1999. He pledged Spohn's commitment to serve the health care needs of city employees. Ms. Debra Smith, the new Executive Director for Humana Corpus Christi, said their proposal offers city employees access to two hospital systems--Spohn and Columbia --and the majority of the area's physicians. She said that during the past three years that Humana has insured city employees, they have spent more in claims costs than they have collected in premiums. Ms. Smith then passed out a comparison of the fully insured Humana bid and the self-insured Entrust/Spohn bid, which she said has an additional cost risk to the city of $1.9 million if claims costs increase. Minutes Regular Council Meeting February 9, 1999 Page 13 Ms. Cathy Green, Commercial Sales Director for Humana Corpus Christi, said the Humana proposal is the lowest guaranteed bid and offers the best value for city employees through a variety of health care services, which she described. Mayor Neal referred to the comparison of the Humana and Entrust/Spohn bids which Ms. Smith had distributed to the Council members. According to that information, under the Humana proposal the fixed premium is $11.4 million and the projected claims costs to Humana is $9.85 million (estimated at a 4% trend over current claims costs), resulting in a projected yield to Humana of $1.59 million, or 13.9%. The Entrust/Spohn proposal includes total estimated costs of $11.3 million, projected claims of $9.87 million, and administrative costs of $1.49 million, or 13.2%. With regard to Humana's projections, the Mayor asked if Humana had negotiated favorable pricing with both hospital systems to get their claims costs to that level, and Ms. Smith said that was correct. Mayor Neal said it was the first time he had seen any figures which indicated that both networks were nearly equal in the claims costs. Mr. Ed Jacobson, President of Entrust, said the projected yield to Humana of $1.59 million is not broken out. He said in Entrust's proposal, any claims over $150,000 on any one individual would not be included as a risk to the city's self-funded claims account. He questioned where the stop -gap measure is to protect against future increases in the Humana proposal. Mr. Jacobson also commented that lower cost family coverage can be offered to city employees. He then introduced Mr. Pat Hajovsky, General Counsel and Chief Operating Officer at Entrust. Mr. Hajovsky distributed a comparison of Humana's and Entrust/Spohn's proposals, showing a 2.5% savings and an 8% savings. He said Humana's annualized premium is estimated to be $11.44 million and their five-month cost would be $4.77 million; however, Entrust/Spohn's estimated annual cost with a 2.5% discount is $11.36 million (a difference from Humana's proposal of $85,884), and their five-month cost is $3.09 million, a net difference of $1.68 million. Mr. Hajovsky said Entrust believes the discount will actually be greater than 2.5%, and he reviewed the figures with an estimated discount of 8%, which would result in a total estimated annual cost of $10.8 million, annualized savings of $642,520, and a five-month cost for Entrust/Spohn of $2.95 million, for a net difference from Humana's cost of $1.81 million. Responding to Mayor Neal, Mr. Hajovsky said that originally Entrust negotiated with a network called Ethix, which included both the Spohn and Columbia hospital systems. However, that cost was $3 million higher and Entrust officials concluded that it would not be competitive. He said Entrust negotiated with Spohn to see if a contract for a single hospital system would provide a more competitive bid, which it did. He said Spohn then went further to negotiate deeper discounts to provide greater savings to the city. The Mayor asked if an attempt was made to both provider networks to bring their pricing more in line. Mr. Jacobson replied that there was an attempt to do that, but one of the providers said they could not do it. Minutes Regular Council Meeting February 9, 1999 Page 14 In reply to another question from Mayor Neal, Mr. Pat Alba, Director of Risk Management, pointed out that two of the original proposals --from Blue Cross/Blue Choice and Entrust/Ethix-- included combined hospital networks. However, the estimated claims cost for Blue Choice was $11.13 million and for Ethix it was $12.81 million. The Mayor reiterated that the Council was told for the first time that day that Humana's estimated claims cost for a combined hospital network is $9.85 million. He also asked if the city was precluded from receiving the same discounts in a self- insured plan that Humana is offering in a fully insured plan. Mr. Alba replied that Humana did not submit a self-insured proposal. He added that the Humana discounts are not as deep as the Spohn discounts, and if $9.8 million is Humana's actual paid claims, the city will probably come in $300,000 to $500,000 less than that. A brief discussion ensued. Responding to Council Member Garcia, Ms. Smith of Humana discussed the issue of proprietary information. Mr. Andrew Lacroix, President of the Corpus Christi Firefighters Union, said it has been falsely portrayed that the city will save $1.5 million by awarding the contract to Entrust/Spohn, adding that it could end up costing the city nearly $2 million a year more. He said the quality of life for firefighters and their families will be affected by the Council's choice of insurance plans, particularly with regard to whether one hospital system or two will be available. Mr. David Jacobson, also representing Entrust, said he does marketing in this area and is familiar with the hospitals and discounts with providers. He said that through a self-funded arrangement, there are employers which negotiate discounts and contracts with both providers; however, the discounts are going to warrant that. He added that the Columbia hospital network is not excluded from the Entrust/Spohn proposal --it just means that if an employee chooses to use a Columbia hospital they will have to pay out -of -network prices. Responding to Mayor Neal and other Council members, Mr. Alba said under the Citicare plan (civilian employees), the in -network agreement is 80% paid by the plan and 20% paid by the employee; the out -of -network cost is 50-50. The regular coverage under the police plan is 85-15 for in -network and 80-20 for out -of -network; for the fire plan, the in -network cost is 80-20 and 70-30 out -of -network. Mr. Alba added that both the Humana and Spohn networks have approximately 600 physicians, and there are approximately 180 physicians throughout the service area (Corpus Christi and surrounding communities) that are exclusive to one network or the other. In reply to Council Member John Longoria, Mr. Reese Jackson, representing Spohn Health System and Spohn Health Network, said the reason rates were different between Spohn and Spohn Plus is because a third party administrator worked more closely with Spohn in achieving greater discounts for the city. Mr. Alba also answered Council members' questions concerning retired employees' health Minutes Regular Council Meeting February 9, 1999 Page 15 care benefits and the number of physicians included in the hospital networks. He said he stands by his original recommendation to award the contract to Entrust/Spohn for several reasons: it is a four- year contract which will stabilize costs; it will result in a $1 million fund balance in July; and since premiums will not increase until August 1, 1999, the impact to employees will be delayed five months. He noted that the Humana proposal would require an additional $400,000 in funds since the premium increase would be effective March 1, 1999. Responding to Council Member Cooper, Mr. Alba and Mr. Hajovsky discussed Mr. Alba's estimate of a 2.5% savings with the Entrust/Spohn proposal and the underwriters' estimate of an 8% savings. Mr. Alba said with the information he has now, he would estimate the savings to be 5%, which is $500,000. Mr. Isaac Valencia, President of the POA, said that during the open enrollment process last week, he concluded that there was a calculation error in the premiums under the Humana proposal, which he discussed. He said the error needs to be corrected and he recommended awarding the contract to Humana and to go out for proposals again when that contract expires in one year. Mr. Alba noted that the error involves the premiums for "Employee Only" under the Humana public safety plan, which was the only rate that decreased rather than increased: the current biweekly rate is $0.00 for "Employee Only" while the city's contribution is $69.55. Humana's proposed new rate is still $0.00 for "Employee Only" and $54.08 for the city, a biweekly difference of $15.47. As a result, the city's contribution for the rest of the public safety plan ("Employee/Spouse," "Employee/Children," and "Employee/Family") was reduced since the same contribution is applied to each. Ms. Green of Humana further explained how the error occurred. Responding to Council Member Martin, City Manager Garcia discussed the savings that would result from shifting from a fully insured program to a self-insured one. A discussion ensued. Mr. Winston Borland, CEO of Columbia Northwest Regional Hospital, urged the Council to reaffirm their decision to continue the employee medical benefit coverage with Humana. He said Northwest Regional recently added a $10 million expansion to improve their services. He said the majority of the hospital's active staff physicians have courtesy or network affiliations with Spohn facilities; however, 95% of them do not admit patients or follow them to Spohn's facilities due to the distance from Northwest Regional Hospital. He said that arrangement will affect the city employees who live in the northwest area if the Entrust/Spohn proposal is selected. Referring to Mr. Borland's comments, Mr. Jackson of Spohn said he thought the benefit plan differential for emergency services is the same for both networks. He added that Spohn's patient migration studies differ from those discussed by Mr. Borland. Mr. Steve Woemer, CEO of Corpus Christi Medical Center, questioned whether this is the Minutes Regular Council Meeting February 9, 1999 Page 16 kind of competitive process that other cities use and whether it will ensure that they are doing the right job for the citizens. He said there is $2 million more risk with the Entrust/Spolm proposal than with Humana, and he added that the city employees are pleased with the Humana contract. Mr. Woemer said that the Columbia network in Corpus Christi was not approached by Entrust for a bid. Mr. Tomas Duran, the broker for both the Entrust/Spohn and Humana proposals, said he contacted and met with Columbia representatives to tell them that he had some very aggressive discount arrangements with Spolm, which would place Columbia out of the network. He said he asked Columbia to provide similar discounts for the city. He also asked Humana Insurance to provide a self-insured proposal and a four-year contract, which Humana declined to do. Mr. Duran said the Council has the choice between two good proposals, self-insured and fully insured, both of which offer benefits. Ms. Cruz Colomo, 6138 Camwood, noted that the FBI is conducting an investigation into this process. She suggested options to the Council, including waiting 60 to 90 days to make a decision on this issue. She said if they had to make a decision that day, they should accept the recommendation of city staff. Ms. Julie Wilson, a nurse at Columbia Doctors Regional Medical Center, said she was speaking as a citizen and she encouraged the Council to think about the group of employees at the Columbia hospitals, who probably will be affected if the contract is awarded to Entrust/Spohn. Mr. Gary Hall, a health care attorney in Corpus Christi, said he represents many providers who participate in both networks. He said there are some who participate exclusively with Columbia facilities and they are concerned about this contract. He also raised the issue of on -demand sterilizations. Mr. Valencia said that since the calculation error will lower the police officers' premiums, the union supports the Humana proposal. Mr. Henry said Spohn is a very legitimate health care provider and they are approached frequently by third party administrators to participate in their networks or to be an exclusive provider. He added that Spohn's discounts in this proposal are very aggressive. Mr. Ruben Bonilla said that in an era of escalating costs, they need to look at a proposal that offers fixed costs for four years. He noted that the Humana proposal was the fifth highest proposal. Responding to Council Member Garcia, City Manager Garcia described the Council's options as he had outlined them in the agenda material. He also discussed issues relating to Driscoll Children's Hospital's coverage and the cancellation provisions in the proposals. City Attorney Bray briefly commented on the Council's vote on the contract that occurred on January 19`". Minutes Regular Council Meeting February 9, 1999 Page 17 Mrs. Cooper said she supports the Humana proposal for the benefit of city employees and the employees at Columbia hospitals. She also noted that Northwest Regional Hospital is the only facility in the northwest area. Mrs. Cooper then made a motion to approve Items 9.a. and 9.b. on the day's agenda, seconded by Mr. Longoria. City Secretary Chapa polled the Council for their votes. Mayor Neal and Council Member Cooper cast their votes, but prior to casting his vote, Council Member Garcia read a prepared statement. He referred to the investigation that is underway and he said the Local press has inaccurately communicated the facts. Mr. Garcia said he is unhappy that a lobbying effort directed at him was made through a business associate, and he added that he did not seek an investigation nor does he believe one is necessary. Mr. Garcia then voted "No" on Items 9.a. and 9.b. Mr. Chapa proceeded to poll the Council for their votes as follows: 9.a FAILED TO PASS Ordinance appropriating $282,395 f.e.,, the Unreserved Fuad Balance in—the--No. 102 $125,070 from a.eneas.,d employcc and r..tirc, eai.tribut:ei,s to IIealth Insurance;n th., Ne. . :.. ..•- ;.. .. . Insurance, contract; amending the FY 98-99 Budgct, adopted by Ordinance 138 Group IIealth Fund. : . The foregoing ordinance failed to pass by the following vote: Cooper, J. Martin voting "Aye"; Garcia, Gonzales, B. Longoria, and Neal voting "No"; McNichols abstaining. 9.b. FAILED TO PASS No. 023387, .: Longoria, and Colmenero and Mot;oi1 to -select a p,el eaal t„ pre%;dc a group health plan fen the City of Ctpus Clniati, by eest-erf--$44-745370-5-5r The foregoing motion failed to pass by the following vote: Cooper, J. Longoria, and Martin voting "Aye"; Garcia, Gonzales, 13. Longoria, and Neal voting "No"; Colmenero and McNichols abstaining. Minutes Regular Council Meeting February 9, 1999 Page 18 Council Member Gonzales made a motion to approve Items A., B., and C. (as proposed on page 96 of the February 9`h agenda packet), which was the original Entrust/Spohn proposal. The motion was seconded by Council Member Betty Jean Longoria. Referring to Item C. of that proposal, Mayor Neal asked if the aggregate stop loss insurance would have to be bid at the end of one year; Mr. Alba replied that it would have to be. Mr. Bray pointed out that the three items were bid as one proposal for third party administration, the Spohn health network, and the stop loss insurance --he said they cannot be broken up or "unbundled." Mr. Alba noted that any of the contracts can be canceled under certain provisions. Responding to Mr. Martin, Mr. Alba said the Spohn network contract (Item B.) is the one that guarantees the discount and the rates for four years. Mr. Chapa polled the Council for their votes on Dr. Gonzales' motion as follows: A. M99-033 Motion authorizing the City Manager of his designee to execute a contract with Entrust Inc. for the Third Party Administration of the City's group health program for a term of four years beginning March 1, 1999 at an estimated annual cost of $794,037 Year 1; $833,698 Year 2; $875,028 Year 3; and $918,446 Year 4. The foregoing motion passed by the following vote: Garcia, Gonzales, B. Longoria, and Neal voting "Aye"; Cooper, J. Longoria, and Martin voting "No"; Colmenero and McNichols abstaining. B. M99-034 Motion authorizing the City Manager of his designee to execute a contract with Spohn Health Network for network access, precertification and utilization management services for the City's group health program for a term of four years beginning March 1, 1999 at an estimated annual amount of $112,185 each year. The foregoing motion passed by the following vote: Garcia, Gonzales, B. Longoria, and Neal voting "Aye"; Cooper, J. Longoria, and Martin voting "No"; Colmenero and McNichols abstaining. C. M99-035 Motion authorizing the City Manager or his designee to execute a contract with TPAC Underwriters Inc. for individual and aggregate stop loss insurance for the City's group health Minutes Regular Council Meeting February 9, 1999 Page 19 program for a term of one year beginning March 1, 1999 at an estimated annual premium of $589,899 with a contract provision to renew for three additional one-year terms. The foregoing motion passed by the following vote: Garcia, Gonzales, 13. Longoria, and Neal voting "Aye"; Cooper, J. Longoria, and Martin voting "No"; Colmenero and McNichols abstaining. * * * * * * * * * * * * * Mayor Neal announced the closed session, pursuant to Texas Government Code Section 551.071 regarding Texas Attorney General Opinion No. DM -494 and the request for reconsideration thereof by the Advisory Commission of State Emergency Communications, with possible action related thereto in open session. The Council went into closed session. The Council returned from closed session. * * * * * * * * * * * * * Mayor Neal called for the City Manager's report. Mr. Garcia introduced Mr. Tony Cisneros, the new director of Park and Recreation, who began working for the city on February Pt. Mr. Garcia also noted that the Council is scheduled to have a joint meeting with the board of the Crime Control and Prevention District next week beginning at noon. Council Member Martin suggested that that meeting be postponed to give the board members an opportunity to review the police resource utilization study. Mayor Neal said he would not be able to attend that noon meeting. Mr. Garcia agreed to postpone it. Mr. Garcia said staff is also delaying the issue of the Alameda Street hospital zone. He said the Transportation Advisory Committee had recommended modifying the zone and now they are asking that it be reconsidered. Mr. Martin pointed out that the TAC is an advisory board, and he said he has not witnessed pedestrians crossing Alameda in front of the hospitals there. Mr. Garcia said staff's recommendation is to shorten the hospital zone area and the amount of time it is in effect. Council Member John Longoria made a motion that the Council direct the City Manager to ask the City Attorney to look into developing a lobbying ordinance; seconded by Mayor Neal The Mayor called for a voice vote, and the motion failed to pass. There being no further business to come before the Council, Mayor Neal declared the Council meeting adjourned at 7:10 p.m. on February 9, 1999.