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2008-09-16 CC MinutesCity of Farmers Branch City Council Regular Meeting Agenda City Hall Plaza 13000 William Dodson Parkway Farmers Branch, Texas Tuesday, September 16, 2008 6:30 P.M. The following members of the City Council were present: Mayor Mayor Pro Tem Deputy Mayor Pro Tem Councilmembers Jim Smith Harold Froehlich Tim O'Hare Ben Robinson David Koch Tim Scott The following members of the Administration were present: City Manager Assistant City Manager Assistant City Manager City Secretary City Attorney Communications Director City Engineer Director of Community Services Director of Public Works Library Director Police Chief Fire Chief Gary Greer Greg Vick Shanna Sims-Bradish Cindee Peters Michael Kallas Tom Bryson Jerry Murawski Michael Spicer Mark Pavageaux Danita Barber Sid Fuller Kyle King Mayor O'Hare called the City Council meeting of September 16, 2008 to order at 6:30 p.m. the meeting was televised. A.1 INVOCATION AND PLEDGE OF ALLEGIANCE. Bill Glancy gave the invocation and Jerry Murawski led the pledge of allegiance. A.2 CONSIDER ACCEPTANCE OF A DONATION OF $10,000 TO THE MANSKE LIBRARY FROM LORRAINE AND DAVE BLAIR FOR A HOMEBOUND DELIVERY PROGRAM. Lorraine and Dave Blair wish to donate $10,000 to the Farmers Branch Manske Library to establish a homebound delivery program. Mr. and Mrs. Blair are advocates in Volume 101, page 93 providing library services to Farmers Branch residents who are unable to leave their homes. Former Mayor Blair and his wife, a former Library Board member, have been long-time community activists who support a variety of causes throughout the community. The homebound delivery program will be a free service to Farmers Branch residents who are unable to visit the library on a permanent or temporary basis. Materials will include books, magazines, DVDs, recorded books, and music. Materials will be delivered by volunteers, staff and by mail... all at no charge to the resident. The donation covers the estimated start-up expenses as well as funding for the first two years of the program. The Friends of the Library have also committed to provide funding if the program is highly successful and additional funds are needed. In addition, a family has expressed interest in providing additional funding in future years to continue the program if needed. Ms. Brenda Blair presented the check to Mayor O'Hare. A motion by Councilman Koch, a second by Councilman Froehlich, all voting "aye", accepted the $10,000 donation from Dave and Lorraine Blair. A.3 CONSIDER ACCEPTING THE DONATION FROM MR. BRONSON BLACKSON TO PROVIDE VENEER BRICK FOR THE CONSTRUCTION OF THE CITY OF FARMERS BRANCH ANIMAL ADOPTION CENTER AND TAKE APPROPRIATE ACTION. Mr. Blackson is a resident of Farmers Branch and a member of the Planning and Zoning Commission. His family owns and operates the Blackson Brick Company. When he learned that escalating costs could potentially affect the design and construction of the new Animal Adoption Center, Mr. Blackson, on behalf of his family's company, volunteered to furnish the full amount of exterior brick required to clad the building as designed. The value of Mr. Blackson's generous donation is estimated to be approximately $22,000. Mr. Blackson's stated he had lived here his entire life and wanted to do something for the Farmers Branch Animal Adoption Center and since his family owns a brick company he felt this was the least he could do. A motion by Councilman Smith, a second by Councilman Scott, all voting "aye" accepted Mr. Blackson's donation of veneer brick to be used for the construction of the Farmers Branch Animal Adoption Center. A.4 PRESENTATION OF SERVICE AWARD - ROSS PITTMAN, PARKS AND RECREATION - 15 YEARS. Volume 101, page 94 Mayor O'Hare presented a 15 year employee service award to Ross Pittman of the Parks and Recreation Department. A.5 PRESENTATION OF SERVICE AWARD - MANUEL SOTO, PARKS AND RECREATION - 20 YEARS. Mayor O'Hare presented a 20 year employee service award to Manuel Soto of the Parks and Recreation Department. A.6 PRESENTATION OF BOARD APPLICATIONS AND BOARD AND COMMISSION APPOINTMENTS AND TAKE APPROPRIATE ACTION. There were no appointments made. A.7 REPORT ON STUDY SESSION ITEMS. The City Council gave a brief summary of items discussed in Study Session prior to the Regular meeting. B.0 CONSIDER THE FOLLOWING AS CONSENT ITEMS AND TAKE APPROPRIATE ACTION. Mayor O'Hare stated consent items are items that are to be considered that may not need discussion individually. Any member of the City Council or the audience may request to withdraw any item from the consent items and place the item before the Council for full discussion. The concept for consent items is to speed up discussion for those items that need more time for discussion. A motion by Mayor Pro Tern Robinson, a second by Councilman Scott, all voting "aye", approved the Consent Agenda as submitted. B.1 APPROVED OF MINUTES OF CITY COUNCIL MEETING OF SEPTEMBER 2, 2008. B.2 ADOPTED RESOLUTION NO. 2008-072 REJECTING ALL BIDS FOR THE LIBERTY PLAZA. B.3 ADOPTED RESOLUTION NO. 2008-076 TO MAINTAIN THE CITY'S INVESTMENT POLICY BA ADOPTED RESOLUTION NO. 2008-077 AUTHORIZING THE ELIMINATION OF 1985 VOTER-AUTHORIZED, BUT UNISSUED GENERAL OBLIGATION BONDS IN THE AMOUNT OF $27,985,000 AND END THE CITY'S DISCLOSURE REQUIREMENTS ON THE UNISSUED BONDS. Volume 101, page 95 B.5 ADOPTED ORDINANCE NO. 2986 PROVIDING NOTICE OF INTENT TO TERMINATE COVERAGE UNDER, AND DISCONTINUE PARTICIPATION IN, THE SUPPLEMENTAL DEATH BENEFITS FUND OF THE TEXAS MUNICIPAL RETIREMENT SYSTEM FOR THE PURPOSE OF PROVIDING POST-RETIREMENT DEATH BENEFITS TO ANNUITANTS AND PROVIDE AN EFFECTIVE DATE. ORDINANCE NO. 2986 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, PROVIDING NOTICE OF INTENT TO TERMINATE COVERAGE UNDER, AND DISCONTINUE PARTICIPATION IN, THE SUPPLEMENTAL DEATH BENEFITS FUND OF THE TEXAS MUNICIPAL RETIREMENT SYSTEM FOR THE PURPOSE OF PROVIDING POST-RETIREMENT DEATH BENEFITS FOR ANNUITANTS AND PROVIDING AN EFFECTIVE DATE. B.6 ADOPTED RESOLUTION NO. 2008-079 AMENDING THE CHAPTER 380 ECONOMIC DEVELOPMENT POLICY OF THE TEXAS LOCAL GOVERNMENT CODE. B.7 ADOPTED ORDINANCE NO. 2996 APPROVING GAS RATES FOR ATMOS ENERGY ORDINANCE NO. 2996 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FARMERS BRANCH, TEXAS, ("CITY") APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE AND ATMOS ENERGY CORP., MID-TEX DIVISION ("ATMOS MID-TEX" OR "THE COMPANY") REGARDING THE COMPANY'S RATE REVIEW MECHANISM FILING IN ALL CITIES EXCERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; ADOPTING ATMOS' PROOF OF REVENUES; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL. B.8 ADOPTED ORDINANCE NO. 2998 AMENDING THE CITY OF FARMERS BRANCH CODE OF ORDINANCES, AUTHORIZING THE INSTALLATION OF STOP SIGNS ON EASTBOUND AND WESTBOUND WINDMILL LANE AT COCHISE LANE; DESIGNATING A SCHOOL SPEED ZONE ALONG COCHISE LANE FROM WINDMILL LANE TO FYKE ROAD. Volume 101, page 96 ORDINANCE NO. 2998 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING THE CITY OF FARMERS BRANCH CODE OF ORDINANCES, CHAPTER 82, TRAFFIC AND VEHICLES, ARTICLE II, DIVISION 5, SECTION 82-73, SPECIFYING THE PLACEMENT OF STOP SIGNS ON EASTBOUND AND WESTBOUND WINDMILL LANE AT COCHISE LANE; AND DIVISION 7, SCHOOL ZONES, 82- 122, DESIGNATING A SCHOOL ZONE AND SPEED LIMIT IN SCHOOL ZONES ALONG COCHISE LANE FROM WINDMILL LANE TO FYKE ROAD; REPEALING ALL CONFLICTING ORDINANCES; PROVIDING FOR A PENALTY CLAUSE; PROVIDING FOR A SEVERABILITY CLAUSE AND PROVIDING AN EFFECTIVE DATE. B.9 ADOPTED RESOLUTION NO. 2008-085 AUTHORIZING AN AMENDMENT TO SECTION 3-L OF THE CONTRACT FOR PROPERTY TAX ASSESSMENT AND COLLECTION SERVICES WITH DALLAS COUNTY TO PROVIDE FOR THE UTILIZATION OF DALLAS COUNTY'S LAW FIRM FOR DELINQUENT TAX COLLECTIONS. B.10 ADOPTED RESOLUTION NO. 2008-089 AWARDING BIDS FOR THE ANNUAL PROCUREMENT OF TRAFFIC SIGNAL MATERIALS AND EQUIPMENT IN THE AMOUNT OF $147,497.20. C.1 PUBLIC HEARING: 2008-09 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET. Charles Cox stated that a public hearing is being held to consider the 2008-09 operating and capital improvement program budget. The proposed budget was filed with the City Secretary on July 31, 2008 and copies of the proposed budget were made available for public inspection at the Farmers Branch Manske Library, the Farmers Branch Police Department and on the City's website. A public work session of the City Council was held on August 12, 2008 to discuss the budget; the meeting was televised and has been regularly rebroadcast on the City's Cable Channel 16. The proposed budget does not include a property tax rate increase. Overall property values increased by 5.25%. The proposed 2008-09 operating and capital improvement program budget will raise more total property taxes than last year's budget by $434,900 or 2.25% and of this amount $359,620 is tax revenue to be raised from new property added to the tax roll this year. The procedure tonight will be as follows: The Mayor will open the public hearing. Comments will be heard from citizens. The hearing will be closed. City Council discussion will follow. Volume 101, page 97 Mayor O'Hare opened the public hearing on the proposed budget. A motion by Councilman Scott, a second by Mayor Pro Tem Robinson, all voting "aye", closed the public hearing. D.1 CONSIDER ADOPTING ORDINANCE NO. 2987 AMENDING THE CITY'S OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE 2007-08 FISCAL YEAR AND TAKE APPROPRIATE ACTION. Charles Cox gave a brief presentation. Ordinance No. 2987 amends the 2007-08 fiscal year operating and capital budget to a level that is consistent with the City's most current estimate of revenues and expenditures. City Administration recommends the adoption of Ordinance No. 2987 amending the 2007-08 fiscal year operating and capital improvement budget. A motion by Mayor Pro Tem Robinson, a second by Councilman Scott, all voting "aye", adopted the following captioned Ordinance No. 2987 amending the 2007-08 fiscal year budget. ORDINANCE NO. 2987 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING THE CITY'S 2007-08 FISCAL YEAR OPERATING AND CAPITAL BUDGET AND DIRECTING THAT CITY EXPENDITURES BE MADE IN ACCORDANCE WITH THE BUDGET AS AMENDED. D.2 CONSIDER ADOPTING ORDINANCE NO. 2988 APPROVING THE 2008 TAX ROLL CERTIFIED BY THE DALLAS CENTRAL APPRAISAL DISTRICT AND TAKE APPROPRIATE ACTION. Proposed Ordinance No. 2988 approves the 2008 tax. roll certified by the Dallas Central Appraisal District. The certified tax roll sets forth the taxable value, after qualified exemptions for residential and commercial real property and business personal property in the City of Farmers Branch at $4,019,807,491 (four billion, nineteen million, eight hundred seven thousand, four hundred ninety-one dollars). This amount includes new construction, but excludes properties still under protest. This represents a $200,409,514 increase (approximately a 5.25% increase) in taxable value from the July 25, 2007 certified tax roll. City Administration recommends the adoption of Ordinance No. 2988 approving the tax roll certified by the Dallas Central Appraisal District. A motion by Councilman Smith, a second by Councilman Scott, all voting "aye", adopted the following captioned Ordinance No. 2988 approving the tax roll. Volume 101, page 98 ORDINANCE NO. 2988 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, TO APPROVE THE 2008 TAX ROLL CERTIFIED BY THE DALLAS CENTRAL APPRAISAL DISTRICT. D.3 CONSIDER ADOPTING ORDINANCE NO. 2989 AMENDING ORDINANCE NO. 2700 - SECTION IA OF THE EXISTING GAS FRANCHISE AGREEMENT BETWEEN THE CITY OF FARMERS BRANCH AND ATMOS ENERGY CORPORATION TO PROVIDE FOR A DIFFERENT CONSIDERATION, PROVIDE FOR AN EFFECTIVE DATE AND PROVIDE FOR ACCEPTANCE BY ATMOS ENERGY. Charles Cox gave a brief presentation. Pursuant to a settlement agreement between Atmos Energy and the Atmos Steering Committee, Atmos Energy has agreed to increase the franchise fee from four percent (4%) of gross revenues to five percent (5%) of gross revenues for gas sold within the city limits as resolution to Atmos' 2007 rate case. According to Atmos, based on a gas cost recovery factor of $8.75, a one percent (1%) increase in the franchise amount means that residential customers will pay approximately $0.50 per month. An average commercial customer, using 35 Mcf, will pay approximately $3.50 more per month. City Administration recommends adopting Ordinance No. 2989 amending Ordinance No. 2700 - Section 1 A of the existing gas franchise agreement to provide for an increase of one percent (1%) in the gas franchise fee. A motion by Mayor Pro Tern Robinson, a second by Councilman Koch, all voting "aye", adopted the following captioned Ordinance No. 2989. ORDINANCE NO. 2989 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING ORDINANCE NO. 2700 - SECTION 1 A OF THE EXISTING GAS FRANCHISE AGREEMENT BETWEEN THE CITY OF FARMERS BRANCH AND ATMOS ENERGY CORPORATION TO PROVIDE FOR A DIFFERENT CONSIDERATION, PROVIDE FOR AN EFFECTIVE DATE AND PROVIDE FOR ACCEPTANCE BY ATMOS ENERGY. DA CONSIDER ADOPTING ORDINANCE NO. 2990 AMENDING APPENDIX A - FEE SCHEDULE, CHAPTER 86 - UTILITIES OF THE FARMERS BRANCH CODE OF ORDINANCES AND TAKE APPROPRIATE ACTION. Charles Cox gave a brief presentation. The 2008-2009 proposed budget includes an increase of 12% in water and sewer rates. Water and sewer rates were last increased on October 1, 2005 and were decreased on October 1, 2006. This increase is necessary due Volume 101, page 99 to increased costs for purchased water, wastewater treatment, fuel, and electricity. Lower than planned water consumption levels and fund balance depletion below required levels also factored into this recommendation. The monthly utility bill of an average residential customer with 10,000 gallons water consumption, considering both the water and sewer rate change, will increase from $55.83 to $62.53 for a change of $6.70 per month. Even with this increase, Farmers Branch rates remain low compared to area cities and state averages. In addition to these rate increases, a number of fee increases are proposed in order to allow the City to partially recover its cost of providing water and sewer taps and water and sewer line extensions to accommodate private property owners. Service deposits are recommended to increase and the charges for water bill non-payment and meter tampering are also recommended to increase. Most of these fees have not been increased in 10-20 years and will now be consistent with fees charged by area cities. Mayor Pro Tem Robinson asked if the rates had gone up due to solids and chemicals being found in the wastewater. Mark Pavageaux, Director of Public Works, stated that had been the case in other cities but not in Farmers Branch. A motion by Councilman Scott, a second by Councilman Koch, all voting "aye", adopted the following captioned Ordinance No. 2990. ORDINANCE NO. 2990 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING UTILITY FEES BY AMENDING THE FARMERS BRANCH CODE OF ORDINANCES, APPENDIX A - FEE SCHEDULE, CHAPTER 86. D.5 CONSIDER ADOPTING ORDINANCE NO. 2994 AMENDING AMBULANCE RATES BY AMENDING THE FARMERS BRANCH CODE OF ORDINANCES, CHAPTER 30 - EMERGENCY SERVICES, ARTICLE II, SECTION 30-35 AND APPENDIX A - FEE SCHEDULE, CHAPTER 30 - EMERGENCY SERVICES, ARTICLE II, SECTION 30-33, AND TAKE APPROPRIATE ACTION. The City of Farmers Branch provides emergency ambulance service through the Fire Department at an annual cost exceeding $2.5 million. During the budget workshop, City staff discussed increasing the City's emergency ambulance service transport rates as a measure to reduce the subsidy to the cost of providing ambulance service and to maximize Medicare, Medicaid and private insurance revenues while minimizing a patient's out-of-pocket expenses. Since October 2003, the City has charged emergency ambulance service fees of: Volume 101, page 100 - Non- Service Resident Resident Basic Life Support $350 $400 Advanced Life Support, Level 1 $400 $475 Advanced Life Support,, Level 2 $450 $550 Mileage charge for transport from nearest $8 $8 City limit to any hospital outside of the city. Staff proposes an increase in rates for residents to: Non- Service Resident Resident Basic Life Support $400 $500 Advanced Life Support, Level 1 $550 $600 Advanced Life S upport, Le% el 2 $600 $700 Mileage charge for transport from nearest $10 $10 City limit to any hospital outside of the City. One (1) mile charge for transport to any hospital within City. These increased rates are projected to increase ambulance fee revenues by approximately $83,000 and are consistent with fees currently charged by area cities. A motion by Councilman Scott, a second by Councilman Koch, all voting "aye", adopted the following captioned Ordinance No. 2994. ORDINANCE NO. 2994 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING THE FARMERS BRANCH CODE OF ORDINANCES, APPENDIX A - FEE SCHEDULE, CHAPTER 30 - EMERGENCY SERVICES, ARTICLE II, SECTION 30-33. D.6 CONSIDER ADOPTING ORDINANCE NO. 2991 APPROVING THE OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET FOR THE 2008-09 FISCAL YEAR AND TAKE APPROPRIATE ACTION. On July 31, 2008, the proposed 2008-09 fiscal year operating and capital budget was delivered to the City Council and copies were delivered to the Farmers Branch Manske Library and the Farmers Branch Police Department. A copy of the budget was also placed on the City's Web site for review. The proposed budget was discussed with City Council during a budget workshop held August 12, 2008 and citizen comments were requested at a public hearing held earlier this evening. Ordinance No. 2991 approves the operating and capital improvement program budget for the 2008-09 fiscal year. Ordinance No. 2992, which follows adoption of the budget, Volume 101, page 101 ratifies the property tax revenue increase reflected in this budget. All applicable laws and City Charter provisions necessary for adoption of the budget have been followed. A motion by Councilman Smith, a second by Councilman Scott, all voting "aye", adopted the following captioned Ordinance No. 2991 approving the 2008-09 budget. ORDINANCE NO. 2991 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, PROVIDING FUNDS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2008 AND ENDING SEPTEMBER 30, 2009, BY APPROVING THE BUDGET FOR SAID PERIOD AND APPROPRIATING AND SETTING ASIDE THE NECESSARY FUNDS OUT OF THE GENERAL AND OTHER REVENUES OF THE CITY OF FARMERS BRANCH FOR SAID FISCAL YEAR FOR THE MAINTENANCE AND OPERATION OF VARIOUS DEPARTMENTS AND FOR VARIOUS ACTIVITIES AND IMPROVEMENTS OF THE CITY. D.7 CONSIDER ADOPTING ORDINANCE NO. 2992 RATIFYING THE PROPERTY TAX REVENUE INCREASE REFLECTED IN THE 2008-09 FISCAL YEAR BUDGET IN ACCORDANCE WITH AND PURSUANT TO H.B. 3195, TEXAS LEGISLATURE, 2007, AND TAKE APPROPRIATE ACTION. A bill was passed during the 2007 legislative session affecting this year's budget and tax adoption process. Specifically, any budget to be enacted after September 1, 2007 must meet certain requirements. In particular, adoption of a budget that raises more property tax revenue than was generated the previous year requires two separate votes: (a) vote to adopt the budget; and (b) vote to "ratify" the property tax revenue increase reflected in the budget. These changes affect the budget process only; the legislature made no changes that affect the adoption of a property tax rate. The 2008-09 fiscal year budget, adopted just prior to this council item, raises more total property taxes than last year's budget by $434,900 or 2.25%, and of that amount $359,620 is tax revenue to be raised from new property added to the tax roll this year. Public hearings concerning the proposed tax rate were held on August 26th and September 2nd and all applicable laws and City Charter provisions necessary for adoption of the budget have been followed. A motion by Mayor Pro Tern Robinson, a second by Councilman Froehlich, all voting "aye", adopted the following captioned Ordinance No. 2992 ratifying the property tax revenue increase reflected in the 2008-09 budget. ORDINANCE NO. 2992 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, RATIFYING AND APPROVING THE PROPERTY TAX INCREASE REFLECTED IN THE 2008-09 FISCAL YEAR BUDGET HERETOFORE ADOPTED WITH THE PASSAGE OF ORDINANCE Volume 101, page 102 NO. 2991 IN ACCORDANCE WITH AND PURSUANT TO H.B. 3195, TEXAS LEGISLATURE, 2007. D.8 CONSIDER ADOPTING ORDINANCE NO. 2993 TO LEVY THE TAX RATE FOR 2008-09 AND TAKE APPROPRIATE ACTION. Ordinance No. 2993 sets the tax rate for the 2008 tax year at $0.4945 per $100 of assessed value on residential and commercial real property and business personal property within the city. This represents the same tax rate in place as the 2007 tax year. The City of Farmers Branch has one of the lowest tax rates in Dallas County. The $0.4945 tax rate will be distributed as follows: $0.442341 per $100 of assessed value for general fund maintenance and operations distribution and $0.052159 per $100 of assessed value for debt service distribution. Mayor Pro Tern Robinson moveed that property taxes be increased by the adoption of a tax rate of $0.4945, which is the same rate adopted for the 2007 tax year. Councilman Scott seconded the motion with all voting "aye". ORDINANCE NO. 2993 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, TO LEVY THE TAX RATE FOR THE 2008-2009 FISCAL YEAR. D.9 CONSIDER ADOPTING RESOLUTION NO. 2008-083 AWARDING THE BID FOR MIDWAY ROAD, WEBB CHAPEL ROAD, AND MARSH LANE PAVEMENT REPAIRS AND RESURFACING PROJECT TO JIM BOWMAN CONSTRUCTION COMPANY, LP; IN THE AMOUNT OF $4,034,305 AND TAKE APPROPRIATE ACTION. Jerry Murawski gave a brief presentation. The 2007-2008 Capital Improvement Program provides $5,377,000 for the rehabilitation of Midway Road between IH-635 and Spring Valley Road, Webb Chapel Road between IH-635 and the north City limits, and Marsh Lane between Valley View Lane and Brookhaven Club Drive. The rehabilitation will consist of replacing portions of the concrete pavement and resurfacing the streets with asphalt. On August 19, 2008, three bids were received and opened, with all bids meeting specifications. The low bid was received from Jim Bowman Construction Company, LP in the amount of $4,034,305. The contract time is 240 calendar days. Jim Bowman Construction Company, LP has submitted adequate qualifications and references and has done similar work for the City of Farmers Branch and other cities within the Metroplex. A motion by Councilman Koch, a second by Councilman Scott, all voting "aye", adopted Resolution No. 2008-083 awarding the bid for the rehabilitation of Midway Road, Webb Chapel Road and Marsh Lane to Jim Bowman Construction Company, LP. Volume 101, page 103 D.10 CONSIDER ADOPTION RESOLUTION NO. 2008-090 AWARDING AND AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACTS FOR EMPLOYEE AND RETIREE INSURANCE AND BENEFIT PROGRAMS, INCLUDING MEDICAL, DENTAL, LONG-TERM DISABILITY, LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT, LONG-TERM CARE, ADMINISTRATIVE SERVICES, AND AN EMPLOYEE ASSISTANCE PROGRAM AND TAKE APPROPRIATE ACTION. The City has historically provided a competitive and innovative benefits package to employees, offering a selection which best suits employee individual and family needs. Providing these benefit options has aided in achieving Core Value 6 of the Council developed Strategic Plan, Provide for the recruitment, retention and continual motivation of educated and experienced employees. These options include primary benefits consisting of major medical (cost shared with employees), long-term disability (LTD), term life/accidental death and dismemberment (AD&D), employee assistance program (EAP), and administrative services for flexible spending accounts (FSA), and health savings accounts (HSA) (City paid). The City also offers optional voluntary coverage for dental, supplemental life insurance, and related coverage. AFLAC coverage is voluntary and is offered separately. On June 25, 2008, Human Resources staff, with the assistance of Graham Consulting, released Requests for Proposals for both core and optional coverage (excluding AFLAC), and administrative services for spending and savings accounts, COBRA, retiree premium and HIPAA administration. In addition, the package included one additional voluntary benefit for employees and their families - Long Term Care. An employee committee was formed to review all proposals, interview finalists, and prepare recommendations to the City Manager. The committee consisted of representatives from the Human Resources Department, the Finance Department, and the City Manager's Office. FINANCIAL CONSIDERATION: The 2008-2009 budget for life and health insurance coverage and program administration is proposed at $3,295,000, a 5% increase from Fiscal Year 2007-2008. Contracts negotiated for Plan Year 2009 services meet budget expectations, and attached are rate sheets which outline payments and expected costs for both the City and the employees. Recommendations to contract with the following carriers were submitted to the City Manager and endorsed for presentation to the Mayor and Council. Details for each are explained below. Coverage Proposed Vendor Medical Coverage United Healthcare Dental Coverage Delta Dental Life and Accidental Death Cigna Volume 101, page 104 Long Term Disability Long Term Care Flexible Spending Account COBRA, HIPAA, Retiree Billings Health Savings Accounts Employee Assistance Program Major Medical Cigna Med America United Healthcare United Healthcare Optum Health Financial Alliance Work Partners Proposals were received from six carriers: United Healthcare (current carrier), Humana, Blue Cross Blue Shield, Cigna, Aetna, and Group and Pension Administrators, Inc. Carriers submitted proposals that included both fully insured and fully/partially self- insured alternatives. After evaluation of the proposals, Administration recommends United Healthcare as the fully insured group health carrier for employees and retirees under age 65 and their dependents. Recommendations are based on the following: Plan Design - United Healthcare's design includes the following four plans: Preferred Provider Organization (PPO) with $500 deductible and $10 copays Preferred Provider Organization (PPO) with $1000 deductible and $25 copays Health Savings Account (HSA) with $1150 deductible and 90% coinsurance Health Savings Account (HSA) with $2000 deductible and 100% coinsurance Access - Employees will continue to access the current provider network of physicians, hospitals and facilities. Service - United Healthcare's customer service is considered excellent (from employee feedback) which allows employees less worry about claim issues. City Cost - United Healthcare's proposal is a fully insured plan that protects the City from exposure to unexpected negative claims experience, and meets the FY2008-2009 budget. United Healthcare also provided a tiered performance rate guarantee, which will be based on the City's losses. These plans continue to support the City's consumer-driven health philosophy, and meet the Core Values as identified in the Strategic Plan. Dental Care Proposals were received from eight carriers: Aetna, Ameritas, Cigna, Delta Dental, Guardian (current carrier), Humana, United Healthcare and QCD of America. Dental insurance is funded by employees and participation is currently approximately 70%. The analysis of the proposals focused on access, cost, plan design, and rate guarantee. Delta Dental is recommended as the City's group dental carrier. Recommendations are based on the following: Plan Design - Delta Dental's design include three plans: Volume 101, page 105 Preferred Provider Organization (PPO) with an orthodontic benefit Preferred Provider Organization (PPO) without an orthodontic benefit Managed Dental Plan (DMO) requiring the selection of a network dentist Access - Delta Dental offers a comparable network of dental offices and has individuals whose focus is assigned to increasing the size of the managed care network. Plan Design- Delta Dental's proposal was comparable to the City's current dental provider. City Cost - Although costs will increase, Delta Dental provided a rate reduction compared to our renewal with the current dental care provider, and included a two year rate guarantee with a third year rate cap. Life / Accidental Death and Dismemberment / Long-term Disability Proposals were received from three carriers: Lincoln Financial (current carrier), Cigna, and United Healthcare. The City currently pays 100% for life, accidental death and dismemberment (AD&D), and long-term disability (LTD). Life and AD&D coverage equals annual salary (with a minimum $30,000 and maximum $200,000). LTD has a 60% of salary benefit to age 65, with a 180 day waiting period. Cigna is recommended as the life, AD&D, and LTD carrier. Recommendations are based on the following: Plan Design - Cigna matched current benefits and enhanced long term disability services to include assisting qualified employees with social security disability applications. City Cost - Cigna's rate proposal was less than the current provider and will result in an annual savings of an estimated $20,000. Cigna also included a three year rate guarantee for all products. Long-term Care One proposal was received for long-term care insurance, which is an additional benefit offering for Plan Year 2009, offering coverage primarily for nursing home costs for employees and/or family members. Med America is recommended as the carrier for long-term care insurance. Recommendations are based on the following: Plan Design - Employees will have the flexibility to create individual plans, with benefits based on the total amount of coverage. Eligibility - Employees will be given a simplified health questionnaire for insurance underwriting to determine eligibility. If the employee does not meet underwriting guidelines, Med America will assist the employee in locating potential comparable coverage options. There will be no additional cost for this service. City Cost - This benefit is voluntary and individually rated, with costs based on coverage. Administration Services The City offers health savings accounts (HSA) and flexible spending accounts (FSA) that provide employees with the ability to use pre-tax money to pay for health and/or dependent care related expenses. The City currently administers COBRA, HIPAA and Volume 101, page 106 retiree billings internally. Proposals were requested to incorporate all administrative services under one umbrella. Proposals were received from Aetna, United Healthcare and OptumHealth Financial Services. United Healthcare and OptumHealth Financial Services are recommended as the administration service providers for COBRA, HIPAA, HSA, FSA, and retiree premium billing. Recommendations are based on the following: Program Management - United Healthcare and OptumHealth Financial Services have demonstrated stability in the administration of FSA and HSA claims. They also provide online account inquiry, convenience debit card transactions, and based on service feedback, have a history of resolving issues in a timely manner. Satisfaction with both United Healthcare and OptumHealth Financial Services is extremely high. City Cost - United Healthcare's rate proposal for FSA administration was less than the current provider, and administration service fees for COBRA, HIPAA and retiree premiums are included and will be based on per participant costs, which is minimal. OptumHealth Financial Services is the current HSA provider and service fees will remain as current. Employee Assistance Program The City offers employee and eligible dependent access to an employee assistance program that includes six office visits with a certified counselor or mental health professional, ten hours of free training, legal assistance (excluding employment related matters), financial assistance, discounts to network providers, and referrals for a variety of ancillaries which may include pregnancy information, child and elder care. Proposals were received from five providers: Alliance Work Partners (current provider), Deer Oaks, United Healthcare, Aetna, and Cigna. Alliance Work Partners is recommended for employee assistance program services for the following reasons. Recommendations are based on the following. Program Services - Alliance Work Partners is our current vendor and has partnered with the City to expand employee services to include training and wellness initiatives. Employee feedback indicates satisfaction is high, not only for individual employees, but for services provided to management. City Cost - Alliance Work Partners proposed a three-year rate guarantee. A motion by Councilman Koch, a second by Councilman Smith, all voting "aye" adopted Resolution No. 2008-090. D.11 CONSIDER COUNCIL REPORTS. Mayor O'Hare stated that last week the City held the groundbreaking for the new Animal Shelter Adoption Center. D.12 CONSIDER COUNCIL TRAVEL REPORTS AND REQUESTS AND TAKE APPROPRIATE ACTION. Volume 101, page 107 There were no travel reports or requests. MAYOR O'HARE ANNOUNCED THAT THE ITEMS ON THE AGENDA FOR THE EXECUTIVE SESSION WERE DISCUSSED AFTER THE 4:00 P.M. WORK SESSION. MAYOR O'HARE EXPLAINED THE CITY COUNCIL CONVENED INTO EXECUTIVE SESSION AT 5:40 P.M., RECESSED AT 6:20 P.M., RECONVENED AT 7:20 P.M. AND CONCLUDED AT 7:30 P.M. TEXAS GOVERNMENT CODE CHAPTER 51 OF THE OPEN MEETING LAW PROVIDES THAT SUCH ITEMS AS PERSONNEL MATTERS, LAND ACQUISITION AND PENDING AND CONTEMPLATED LITIGATION MAY BE DISCUSSED IN CLOSED SESSION. E.1 DISCUSS LAND ACQUISITIONS - TEXAS GOVERNMENT CODE SECTION 551.072. Discuss purchase, exchange, lease or value of real property in the vicinity of Pepperwood Street and Bee Street. Mayor O'Hare explained the City Manager Gary Greer discussed possible land acquisition possibilities and proposals with the City Council. E.2 DISCUSS PENDING AND CONTEMPLATED LITIGATION - TEXAS GOVERNMENT CODE SECTION 551.071. Ramos v. City of Farmers Branch, 06-12227; 07-04936; 08-01277 Barrietos, et.al., v. Farmers Branch Villas at Parkside Partners, et. al., v. Farmers Branch, 06-2371; 08-1551 Alfredo Vasquez, et. al., v. Farmers Branch Valentine Reyes, et.al., v. City of Farmers Branch Mayor O'Hare stated the City Attorney's from Strasburger and Price were present to discuss pending litigation. E.3 DISCUSS PERSONNEL MATTERS - TEXAS GOVERNMENT CODE SECTION 551.074. Discuss city manager's evaluation. Mayor O'Hare stated the Council discussed the annual performance review of the City Manager. F.1 CONSIDER NECESSARY ACTION ON ITEMS DISCUSSED IN THE EXECUTIVE SESSION. Mayor O'Hare called for necessary action on items discussed in executive session. A motion by Councilman Smith, a second by Councilman Koch, all voting "aye", authorized the City Manager to negotiate the purchase of land in the vicinity of Pepperwood Street and Bee Street. Volume 101, page 108 A motion by Mayor Pro Tern Robinson, a second by Councilman Froehlich, all voting "aye", adopted Resolution No. 2008-087 regarding the City Manager's contract. F.2 ADJOURNMENT. A motion by Councilman Scott, a second by Councilman Koc all voting "aye", adjourned the City Council meeting of Septe er 16, 2008 a 7 31 p.m. r Tim O'Hare, Mayor Cindee Peters, City Secretary Volume 101, page 109