1993-09-29 CC MinutesCITY OF FARMERS BRANCH
CITY COUNCIL
SPECIAL MEETING
SEPTEMBER 29, 1993
COUNCIL CONFERENCE ROOM
CITY HALL PLAZA
4:00 P.M.
The following members of the City Council were present:
Mayor:
Mayor Pro Tem
Councilmembers:
The following members
City Manager
Assistant City
Assistant City
City Attorney
City Secretary
Personnel Dire
Dave Blair
Calla Davis
Bob Phelps
Nancy Hardie
Bill Moses
Ron Pyle
of the City Staff were present:
Richard L. Escalante
Manager Steve Carpenter
Manager John Burke
John Boyle
Ruth Ann Parish
::tor Judy Conley
A.1 MEETING CALLED TO ORDER
Mayor Blair called the meeting to order at 4:03 p.m.
A.2 CONSIDER ADOPTING RESOLUTION NO. 93-150
AUTHORIZING THE CITY TO ENTER INTO A CONTRACT
WITH CIGNA CORPORATION FOR LONG TERM
DISABILITY INSURANCE AND TAKE THE APPROPRIATE
ACTION.
Mayor Blair presented the following information for
consideration. On August 19, 1993, the City solicited
proposals for a Long Term Disability Insurance Plan
from various insurance providers.
A Group Long Term
extremely important
benefit package.
Insurance Plan will
long term disability
Disability Insurance Plan is an
amployee benefit as part of a total
A Group Long Term Disability
lessen the financial impact of a
by replacing a substantial portion
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of an employee's earnings that are lost. The Social
Security System provides benefits for long term
disabilities. However, the City withdrew from the
system in 1980. Therefore, these benefits are not
available to city employees.
A total of sixteen providers responded and submitted
proposals. Of these, fourteen meet all specifications,
two providers did not provide all requested
information. One proposal could not be accepted as it
was submitted after the deadline.
CIGNA Corporation was the lowest proposal meeting
specifications based on providing an income protection
of 66 2/3% of monthly salary for disabled employees
after a 280 day elimination period. The total cost
would be in the amount of $.47 per $100 of payroll for
an estimated annual cost of $59,600 or a monthly
premium of $4,965.
At the September 20, 1993 City Council meeting, the
City Council asked staff to examine an additional
option that might be available. Provident-TML will
provide an LTD plan based on 60% of monthly salary
after a 180 day elimination period at a cost of $.39
per $100 of payroll for an estimated cost of $52,040 or
a monthly premium of $4,336.
Another question raised was whether it was feasible for
the city to select the lower cost TML option and
partially self-fund the difference between the 60% and
66 2/3 % of monthly salary.
Personnel Director Judy Conley responded to this
question. According to CIGNA and TML, if the city did
self-fund a portion of the LTD plan, the city's funding
would be considered an off-set to the amount that the
insured plan would pay to disabled employees. The
amount that the insurance company would pay in benefits
would be lowered by the equivalent percentage which is
funded by the city. Therefore, instead of paying 66
2/3 CIGNA would pay 60%, or TML would pay 53 1/3 %
of the employee's salary. Thus it would not be
cost-effective to partially self-fund a portion of the
LTD plan.
After a brief discussion, Ms. Conley recommended the
adoption of Resolution No. 93-150 authorizing the city
to enter into a contract with CIGNA Corporation for a
Long Term Disability Insurance Plan in the estimated
amount of $59,600.
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A motion by Councilman Phelps, a second by Mayor Pro
Tem Davis, all voting "aye", adopted Resolution No.
93-150 authorizing the city to enter into a contract
with CIGNA Corporation for a Long Term Disability
Insurance Plan in the estimated amount of $59,600.
AT 4:05 P.M., MAYOR BLAIR ANNOUNCED THAT THE COUNCIL
WILL CONVENE INTO EXECUTIVE SESSION. THE MEETING WILL
RECONVENE INTO GENERAL SESSION AFTER THE ITEM HAS BEEN
DISCUSSED IN THE EXECUTIVE SESSION. ARTICLE 6252-17,
SECTION 2 OF THE OPEN MEETING LAW PROVIDES THAT SUCH
ITEM AS PERSONNEL MATTERS MAY BE DISCUSSED IN CLOSED
SESSION.
B.1 DISCUSS PERSONNEL MATTERS-ARTICLE 6252-17,
SEC.2(g)
1. DISCUSS APPOINTMENT FOR MUNICIPAL COURT
JUDGE.
Council Committee Chairman Phelps presented the
recommendation for the Municipal Court Judge.
COUNCIL RECONVENED TO GENERAL SESSION AT 4:11 P.M.
B.2 CONSIDER NECESSARY ACTION ON PERSONNEL MATTER
DISCUSSED IN THE EXECUTIVE SESSION.
A motion by Councilman Phelps, a second by Councilman
Moses, all voting "aye", adopted Resolution No. 93-161
appointing Albert Fenton as the Municipal Court Judge
and Terry Carnes as the Alternate Municipal Court
Judge.
C.1 ADJOURNMENT.
A motion by Councilman Pyle, a second by Councilman
Moses, all voting "aye", adjourned the September 29,
1993 City Council Special Meeting at 4:18 p.m.
Mayor
City Secretary
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