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2001-09-10 CITY COUNCIL REGULAR MEETING MINUTES - 7:00PM121 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON SEPTEMBER 10, 2001, AT 7:00 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. The meeting was called to order with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Larry Marcott Richard Tetens Woody Owens Klaus Seeger Larry Wilkins Bill Eisen Darrin Coker Young Lorfing Others in attendance: Deputy City ManagerAlan Mueller; Executive Director of Community Services Tobin Maples; Police Chief J.C. Doyle; City Engineer John Hargrove; Community Relations Liaison Phibi Vassallo; Director of Finance Jim Causey; Director of Human Resources and Safety Management Mary Hickling; Works Director Jerry Burns; Assistant City Attorney Nghiem Doan; Benefits Specialist Yesenia Garza and Assistant Director of Finance Cindy Soto. The invocation was given by Reverend Barnett and the Pledge of Allegiance was led by City Manager Bill Eisen. MAYOR'S ACTIVITY REPORT: Mayor Reid presented a proclamation to Delores Fenwick, Director of Keep Pearland Beautiful, proclaiming the month of September, "Commute Solutions Month." Mayor Reid reported on August 28 he met with developers on SH 288 property, attended a PEDC Board Meeting and a Chamber of Commerce Open House -Today's Vision; August 29 he attended a Special Council Meeting; August 30 he attended a ribbon cutting for Pearland Financial Advisors; August 31 he met with SH 288 developers; September 4 he attended the AARP Monthly Meeting; September 5 he attended a Chamber of Commerce reception for Billye Everett; September 6 he attended a Council Public Forum Special Meeting; September 7 he presented a proclamation to B.J. Hill, Adult Reading Executive Director, and also attended a Pearland Community Hospital Board of Directors Meeting; Page 1 of 18 - 09/10/2001 7:00 127 September 8 he gave a presentation for Trinity Oaks Senior Care; September 10 he attended a meeting with Friendswood on flood issues. COUNCIL ACTIVITY REPORTS: Councilmembers Tetens, Owens, Seeger and Mayor Pro -Tem Marcott passed on giving a report. Councilmember Wilkins reported he spoke to City Manager Bill Eisen regarding an idea that resulted from a Special Meeting on September 6, 2001 at which Council heard concerns from citizens regarding flooding issues. The idea was to formulate a task force or committee of Councilmembers, Staff and Citizens to discuss relevant issues regarding solutions to flooding. He would like to volunteer to be on this committee and would like to get the blessing of Council at some point to do that. He stated it would certainly be a plus to have such a committee formulated to work with citizens and it would also be great to have the Staff, or a Councilmember or two, as well. CITY MANAGER'S REPORT: City Manager, Bill Eisen, reported City Council's Special Meeting scheduled for September 13 has been cancelled. This meeting will be rescheduled for either Monday or Tuesday of the following week. The same topics on the agenda for September 13 will be discussed. A Political Action Committee has been formed and is putting together a list of organizations that might be interested in hearing a presentation regarding the Bond Election being held November 6, 2001. If anyone is a member of a neighborhood association, civic group or other organization that would like to hear a presentation from the PAC, they may contact the head of the Political Action Committee, Helen Beckman. Interested parties may call City Hall for information on how to contact Ms. Beckman. CITIZENS: Steven Friedman, 1134 Woodbridge, reported he is with the Exchange Club and they and Neighborhood Centers will be sponsoring a monthly blood drive in Pearland. Currently, there is no place in Pearland to give blood on a regular basis and there is a great need in the Houston area. The blood drive will be the 3'd Tuesday of every month at the Neighborhood Centers from 1:00 p.m. to 8:00 p.m. Mayor Reid stated the Exchange Club also provides flags on special flag days. Page 2 of 18 - 09/10/2001 7:00 123 DOCKETED PUBLIC HEARING: None. CONSENT AGENDA: A. CONSIDERATION AND POSSIBLE ACTION - APPROVAL OF MINUTES: 1. Minutes of the August 13, 2001, Joint Public Hearings held at 6`30 p.m. 2. Minutes of the August 20, 2001, Special Council Meeting held at 6:30 p.m. 3. Minutes of the August 27, 2001, Public Hearing held at 7:15 p.m. 4. Minutes of the August 27, 2001, Regular Council Meeting held at 7:30 p.m. 5. Minutes of the August 29, 2001, Special Council Meeting held at 6:00 p.m. B. CONSIDERATION AND POSSIBLE ACTION - EXCUSE ABSENCE OF COUNCILMEMBER WOODY OWENS FROM THE REGULAR MEETING HELD ON AUGUST 27, 2001. City Council. C. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 509-533 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING ORDINANCE NO. 509, THE LAND USE AND URBAN DEVELOPMENT ORDINANCE OF THE CITY OF PEARLAND, TEXAS, FOR THE PURPOSE OF CHANGING THE CLASSIFICATION OF CERTAIN REAL PROPERTY LOCATION BEING LOT 18, GARDEN ACRES, SECTION 3, AS RECORDED IN VOLUME 10, PAGE 77, OF THE PLAT RECORDS OF BRAZORIA COUNTY, TEXAS (APPLICATION NO. 982)(2632 O'DAY ROAD) FROM CLASSIFICATION SUBURBAN DEVELOPMENT DISTRICT (SD) TO SINGLE FAMILY DISTRICT (R-1) AT THE REQUEST OF BRUCE A. COLIGAN, AGENT FOR R. WEST DEVELOPMENT COMPANY, INC. OWNER, PROVIDING FOR AN AMENDMENT OF THE LAND USE DISTRICT MAP; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, AN EFFECTIVE DATE AND OTHER PROVISIONS RELATED TO THE SUBJECT. Mr. Tobin Maples, Executive Director of Community Services. Page 3 of 18 - 09/10/2001 7:00 124 D. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 509-534 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING ORDINANCE NO. 509, THE LAND USE AND URBAN DEVELOPMENT ORDINANCE OF THE CITY OF PEARLAND, TEXAS, FOR THE PURPOSE OF CHANGING THE CLASSIFICATION OF CERTAIN REAL PROPERTY LOCATION BEING 3.030 ACRES IN LOT 11, H. T. & B. R.R. CO. SURVEY, SECTION 14, A-509, BRAZORIA COUNTY, TEXAS (APPLICATION NO. 983)(BAILEY ROAD) FROM CLASSIFICATION SUBURBAN DEVELOPMENT DISTRICT (SD) TO SINGLE FAMILY DISTRICT (R-1) AT THE REQUEST OF ANTHONY AND DONNA SPRIGGINS, OWNERS, PROVIDING FOR AN AMENDMENT OF THE LAND USE DISTRICT MAP; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, AN EFFECTIVE DATE AND OTHER PROVISIONS RELATED TO THE SUBJECT. Mr. Tobin Maples, Executive Director of Community Services. E. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 989-1 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, TO INCREASE THE MUNICIPAL COURT TECHNOLOGY FEE; HAVING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, AND A REPEALER CLAUSE; AND PROVIDING AN EFFECTIVE DATE, AN EXPIRATION DATE, AND FOR PUBLICATION. Ms. Cheryl Garcia, Municipal Court Administrator. F. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 1023 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, ORGANIZING DEVELOPMENT AND BUILDING FEES IN ONE ORDINANCE TO IMPROVE CUSTOMER SERVICE; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE AND A REPEALER CLAUSE; PROVIDING FOR CODIFICATION, PUBLICATION, AND AN EFFECTIVE DATE. Mr. Darrin Coker, City Attorney. G. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 1025 -AN APPROPRIATION ORDINANCE ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2001, AND ENDING SEPTEMBER 30, 2002. Mr. Jim Causey, Directorof Finance. Page 4 of 18 - 09/10/2001 7:00 125. H. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 1024 -AN ORDINANCE LEVYING TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF PEARLAND, TEXAS, AND PROVIDING FORTHE INTEREST AND SINKING FUND OF THE TAXABLE YEAR 2001, AND APPORTIONING EACH LEVY FOR THE SPECIFIC PURPOSE. Mr. Jim Causey, Director of Finance. 1. CONSIDERATION AND POSSIBLE ACTION - SECOND AND FINAL READING OF ORDINANCE NO. 1026 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING CHAPTER 29, TRAFFIC, OF THE CITY OF PEARLAND CODE OF ORDINANCES, AS IT MAY HAVE BEEN, FROM TIME TO TIME AMENDED, BY REPEALING THE OLD ARTICLE XVI, TRUCK TRAFFIC, AND ADDING ANEW ARTICLE XVI, TRUCK TRAFFIC, ESTABLISHING LOAD LIMITS ON STREETS WITHIN THE CITY, ESTABLISHING PERMITS, ESTABLISHING TRUCK ROUTES, PROVIDING FOR ENFORCEMENT AND PENALTIES, AND CONTAINING OTHER MATTERS RELATING TO THE SUBJECT; PROVIDING A PENALTY FOR VIOLATION; HAVING A SAVINGS CLAUSE, A REPEALER CLAUSE, A SEVERABILITY CLAUSE; PROVIDING FOR CODIFICATION, PUBLICATION AND AN EFFECTIVE DATE. Mr. Darrin Coker, City Attorney. Councilmember Tetens made the motion, seconded by Councilmember Owens, to adopt Consent Agenda Items A through I as presented on the Consent Agenda. Voting "Aye" Councilmembers Tetens, Owens, Marcott, Seeger, and Wilkins. Voting "No" None. Motion Passed 5 to 0. MATTERS REMOVED FROM CONSENT AGENDA: None. NEW BUSINESS: FIRST READING OF ORDINANCE NO. 509-532 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING ORDINANCE NO. 509, THE LAND USE AND URBAN DEVELOPMENT ORDINANCE OF THE CITY OF Page 5 of 18 - 09/10/2001 7:00 126 PEARLAND, TEXAS, FOR THE PURPOSE OF CHANGING THE CLASSIFICATION OF CERTAIN REAL PROPERTY LOCATION BEING 49.85 ACRES, CONSISTING OF 29.12 ACRES IN LOT 126 AND 7.46 ACRES IN LOT 121, BOTH LOCATED IN A-147, A. C. H. & B. SURVEY; AND 13.27 ACRES LOCATED IN TRACTS 1A & 1 B, A-399, T.D. YOCUM SURVEY, BRAZORIA COUNTY, TEXAS (APPLICATION NO. 987) (JOHN LIZER ROAD)FROM CLASSIFICATION SUBURBAN DEVELOPMENT DISTRICT (SD) TO SINGLE FAMILY DISTRICT (R-2) AT THE REQUEST OF KEN CAFFEY, AGENT FOR AMVEST PROPERTIES, INC, OWNER, PROVIDING FOR AN AMENDMENT OF THE LAND USE DISTRICT MAP; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, AN EFFECTIVE DATE AND OTHER PROVISIONS RELATED TO THE SUBJECT. Mr. Tobin Maples, Executive Director of Community Services. Councilmember Owens made the motion, seconded by Councilmember Wilkins, to approve Ordinance No. 509-532 (Application No. 987) on its first reading. Mayor Reid read into the record the Planning & Zoning Commission's recommendation to approve Application No. 987. City Manager, Bill Eisen, gave an overview of where the property is located which is directly south of Mary's Creek and across John Lizer Road from Rivermist subdivision. Bob Burgess, 2407 Pine Cone Lane, addressed Council and stated he and his wife have property, zoned General Business, fronting on Pearland Parkway, which adjoins the Jamison tract that is up for R-2 zoning. He would like to respectfully request that Council take into account what the home buyers needs are in regards to what this zone change is requesting. A majority of the property in that area is zoned R-1. There is no water and sewer along Pearland Parkway between John Lizer Road and Mary's Creek, Homes on the Jamison property would likely provide both water and sewer in that area,. He stated this would be conducive to General Business development on the property he owns so, naturally, he stands to benefit from seeing that area develop. It would also help them to mark it property that has been negatively impacted by not having water and sewer in that area and the same goes for a developer. Ken Caffey, 1013 N. Amy, addressed Council and stated he is with Amvest Properties. The R-2 they are thinking of developing is approximately 50 acres fronting on John Lizer Road. One thing that was looked at in the beginning was the zoning around the entire property. There is R-2 zoning around the property from east to north and General Business, which goes along Pearland Parkway. Since the Planning and Zoning Commission voted 4 to 0 to approve this zone change, he feels they are in the ballpark of what should be zoned in this area. This also goes with Pearland's Comprehensive Plan. Page 6 of 18 - 09/10/2001 7:00 127 He stated certain things he feels are positives are the General Commercial that go along the 140 ft. Pearland Parkway. This would give sewer and water in this area and will be bringing sewer, water and drainage. Mary's Creek, on the north side of the property, gives a good buffer between it and the R-2, and also the few R -1's in this area. He stated they are looking at bringing the detention further down. Councilmember Owens asked Mr. Caffey if all their access will be coming off of John Lizer Road. Mr. Caffey stated right now John Lizer Road is their frontage. They might do something later but feels this will be the main entrance coming in. Mayor Pro -Tem Marcott asked how many lots there would be. Mr. Caffey stated there should be less than 200 lots. Bobby Thompson, 3301 Dixie Farm Road, addressed Council and stated he is with Coldwell Banker and is handling the property on the Jamison tract through the sale. He has lived in Pearland since 1952 and reports Mrs. Jamison did not let go of much of anything. He met with her prior to her death and reported that she said she was willing to let this go. He stated she liked the idea of a subdivision coming in and she was pleased with what he presented her. He further stated he believes it would be an asset to Pearland. The zoning issue fits since everything around it is an R-2. The market it takes to fit into an R-2 is the biggest demand in the home selling market. He stated that in regards to access to the property, there is some possibility, through future negotiations, they may create access to Pearland Parkway if this is something that fits the City and developer's desires and if they could get some good access off the Parkway coming from Beltway 8 without feeding all the traffic in on John Lizer Road. There could be some benefit in having that access off the Parkway. He would like for Council to consider the R-2 zoning since it fits the property and community. Mayor Reid stated this proposed R-2 upgrades from the Rivermist subdivision across the street and is a significant improvement there. He asked City Manager, Bill Eisen, if more right-of-way was needed and what the City's plan is for John Lizer Road in regards to widening, etc. City Manager, Bill Eisen, stated there is no specific date as to when John Lizer Road will be widened and feels the City will be looking at some additional right-of-way. Page 7 of 18 - 09/10/2001 7:00 128 Deputy City Manager, Alan Mueller, stated there is an 80 -foot right-of-way at the present time. Mr. Caffey stated there are 163 lots, not 200 as he stated earlier. The plat includes a 20 - foot right-of-way. Mr. Thompson stated he is always pleased to take a piece of property out of agriculture exemption that has been there since the dirt was created and brings it into development so we can create a good tax base off of it and help the City. Councilmember Tetens stated he personally feels this tract of land is a desirable one. There are not too many of them left in the City. He believes the best use of it would be an R-1. Mayor Pro -Tem Marcott stated he concurred with Mr. Tetens. As he stated in the last hearing, he has major concerns about John Lizer Road as discussed earlier. He further stated he feels 163 houses will put approximately 326 cars in and out of there every day. There are a considerable number of cars that come out of a nearby subdivision which feeds either to this road or Pearland Parkway. This is a tremendous load on the highway and if you look at the City's mobility plan, that the City is coming out for the Bond issue with, it does not talk about doing any work on this particular road and would be some time before the City would have the finances to do it. Councilmember Wilkins stated he agrees with some of the earlier statements. When you realize Rivermist is an R-3 subdivision and the area that surround the neighborhood is an R-2 he thinks, in all fairness, the best use is going to be an R-2. He does not know if someone coming in wanting to purchase an R-1 lot would want an R-3 subdivision across the street. With General Business nearby, Pearland Parkway is going to get busier and have more traffic, A fair compromise on this issue, but still maintaining somewhat of a large -lot mentality in which Council would certainly want to push forward, the R-2 lot is in the best interest of this area. Mayor Reid stated the subdivision will be sitting behind a potential development of General Business. He asked what the limited access is off of Pearland Parkway. Deputy City Manager, Alan Mueller, stated this property does not front on Pearland Parkway. The driveway and median space was 350 feet minimum separation one from another. Page 8 of 18 - 09/10/2001 7:00 Councilmember Seeger stated the main issues right now are traffic and flooding. Both of these issues somewhat relate to density in residential and business. There has also been a lot of talk about a moratorium on residential development. He stated he does not want to see one but feels Council should go to the best possible residential zoning to attract the highest quality possible. The City is in a position now that, rather than start to seriously look into a moratorium, the City should be looking into the best use. He stated R-1 or RE would be the best use in the present state of the community. He will probably vote yes to give the developer an opportunity, if they want to modify their request and then bring their modified request to either R-1 or RE, he would continue to support it. Mayor Reid stated there would be approximately 4 houses per acre and rule of thumb would make 50 acres, giving you 200 homes rather than 163 which is considerably less than 4 lots per acre. There is drainage and detention and other things and is not sure how much usable area would be left. Councilmember Owens stated his concern is that John Lizer Road is not in too good of shape and putting more cars on it would not benefit it that much. He does not want to come back as was done on the opposite side of John Lizer Road with the open ditches that they had. He stated this has caused a lot of problems in the past, running these open ditches along the roadways where these developments are and channeling that water through there. If you drive down John Lizer Road you can see it is losing a lot on each side r- of the shoulder. He would like to see us come in with something a little bit larger than an R-2. There are a lot in this particular area but thinks it is time we start looking at some of these larger lots and look at that kind of development. Mayor Pro -Tem Marcott stated there is also a wooded area and maybe one of these developers can come along and leave some of the native trees. Most of them come in and bulldoze the whole thing and then start over and it would be nice to keep some of these trees. Voting "Aye" Councilmembers Seeger and Wilkins. Voting "No" Councilmembers Tetens, Owens, and Marcott. Motion Failed 3 to 2. COUNCIL ACTION - RESOLUTION NO. R2001-123 - A RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OFOBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $11,650,000 FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS, AUTHORIZING Page 9 of 18 - 09/10/2001 7:00 130 DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO. Mr. Alan Mueller, Deputy City Manager. Mayor Pro -Tem Marcott made the motion, seconded by Councilmember Tetens, to approve Resolution No. R2001-123. City Manager, Bill Eisen, stated the item being considered is part of the budget which was approved a little bit earlier. It approves funding for two items with one being vehicle replacement and second being funding 10 million dollars for continuation on past projects. Some of the capital projects for which work will be ongoing as a result of the issuance of the same, are the first two lanes of Pearland Parkway, completing David L. Smith East stormwater detention pond, widening of Dixie Farm Road, completing Cullen Fire Station, expansion of a portion of Mykawa Road, completing stormwater detention ponds at SW EC and also improvements to Town Ditch. Voting "Aye" Councilmembers Seeger, Wilkins, Marcott, Owens, and Tetens. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-124 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO NEGOTIATE A CONTRACT WITH THE ENGINEERING CONSULTING FIRM OF TURNER, COLLIE & BRADEN FOR PROGRAM MANAGEMENT SERVICES ASSOCIATED WITH THE PROPOSED BOND ISSUANCE, Mr. Alan Mueller, Deputy City Manager. Councilmember Wilkins made the motion, seconded by Mayor Pro -Tem Marcott, to approve Resolution No. R2001-124. City Manager, Bill Eisen, stated a few months ago City Council had Workshops on the issue of contracting with a firm to provide project management. This would be a consulting firm that would hire a group of other consultant firms to move projects along more quickly. The purpose and intent of this will be if and when the bond program passes in November this project management firm will work expeditiously to implement that program. Fourfirms were recommended and interviews were conducted by several members of City Staff whose unanimous recommendation was for the firm of Turner Collie & Braden. He stated this firm seemed to be more qualified and had the best procedures in place for Page 10 of 18 - 09/10/2001 7:00 implementing a program such as this. Staff recommends this firm to Council and asks Council to authorize Staff to enter into a contract for specific dollar amounts and specific terms. Craig Hester from Turner, Collie & Braden addressed Council and stated they are excited to be there and introduced Jim Gonzales who will manage the program development portion of this project. He also introduced Mark Ingram who will be the Traffic Design Manager and Rod McCrary who is the Deputy Program Manager. They have already begun looking into and facilitating the Bond program to ensure that it does come off. They will be prepared to begin as soon as the Bond's are passed. Councilmember Owens stated there are things he would like to see in the contract once Council is at a point to put the contract and come up with a scope of work. He would like to have a Workshop on this. He further stated something Council also needs to look at is if this will just strictly be a program management contract. He thinks the City needs to look at other engineering firms to come out and do right-of-way acquisition, engineering, inspection and things of that nature so as to have independent eyes and ears. He would also like to look at this based upon the project manager or the program manager. He would also like to see if it is in our contract that the firm could not take out that project manager unless approved by the City of Pearland. Mayor Reid stated those things are usually standard procedure. Mayor Pro -Tem Marcott asked if this firm had a lot of experience in the drainage area. He stated this is an important issue to this Council, this community and a number of people sitting in this audience. Craig Hester of Turner, Collie & Braden stated they have Don Vansickle who has 30 or so years of experience in drainage. They also intend to use Dodson & Associates, who also have extensive experience in this area as well, as part of their management team. City Manager, Bill Eisen, stated there is a contingency plan if the Bond election does not pass. Voting "Aye" Councilmembers Tetens, Owens, Marcott, Wilkins, and Seeger. Voting "No" None. Motion Passed 5 to 0. Page 11 of 18 - 09/10/2001 7:00 1.31 132 COUNCIL ACTION - REGARDING THE SELECTION OF A MEDICAL AND LIFE INSURANCE PROVIDER FOR THE CITY OF PEARLAND EMPLOYEES. Mr. Bill Eisen, City Manager. Councilmember Seeger made the motion, seconded by Councilmember Wilkins, to accept Option IV Medical Benefits bid to Humana Agency being Neal Insurance, alternative benefits insurance to FIBI Plan A Agency to be direct to HBAS, Dental Benefits bid to Protective Dental Agency to be HBAS, Life Insurance Benefits bids to Prudential Agency to be Benefits Connection, Long Term Disability bid to Prudential with the agency to be Benefits Connection, Vision Benefits bid to Vision Benefits of America Agency being Benefits Connection, Section 125 Administration to Smart Benefits Agency direct to HBAS, Medicare supplement to TML per renewal. City Manager, Bill Eisen, stated for the past several years the City has provided health insurance for it's employees through Texas Municipal League. The City received word from TML that premiums would increase by 50%. At this point the City felt it necessary to look elsewhere and to that end the City has taken competitive bids. The City has employed Terry Hale, who is a noted expert in the field of employee benefits for municipalities, to assist the City with development of specifications and evaluation of bids. Terry Hale reported that the City sought competitive bids to either 17 carriers or agents, to provide bids to the City for a gamut of employee benefits such as medical, life, dental, long-term disability, Medicare supplemental and vision benefits. The City received 39 bids with those being 4 fully insured medical bids, 3 self-funded medical bids, 7 dental bids, 9 life bids, 8 long-term disability bids, 5 vision bids, 5 Section 125 Administration bids, 4 alternate benefit bids and no bids for Medicare supplement. He stated several of the large carriers, who have been very active in the health business this summer, declined to issue a bid for the City of Pearland. Both Blue Cross and Aetna sent a declination letter. He stated out of all the bids he has been doing for different Cities this summer, the City of Pearland received the fewest number of medical bids. He further stated this was due to the past three years in which the City of Pearland has had some bad loss ratio experience which is the data he had to provide to all the carriers to bid. With that in mind, he stated the City received several very good bids that would be helpful to the City in controlling costs and making the health benefits affordable. In the document prepared he stated he has given an individual recommendation, not on the actual cost, but on the best value for the dollar on the bids which were presented, In doing this analysis he recommends adopting the medical bid submitted by Humana. The Humana bid is a PPO which is similar to the PPO the City currently has. The difference is the benefits in that PPO are an 80- 50% versus a 90-60%. The benefit would also have a $400 deductible in comparison with the current $250 deductible. The other bidders all offered HMO products or PPO products Page 12 of 18 - 09/10/2001 7:00 133 with a slight reduction in benefits. Oise of the bidders, Cigna HMO, had a good proposal, financially, that actually cost about $4,000 a month total package. In reviewing the providers, within a 50 -mile radius of the City of Pearland, Cigna HMO had only 23 primary care physicians which City employees are currently seeing. This means 80% of City employees would need to change their doctor if the Cigna HMO bid was provided. Cigna HMO has a benefit outside which is similar to the City's current PPO but in the bid that was actually slightly less they still had to pick a primary care physician from that list of 23 which were in a 50 -mile radius. This is not enough primary care physicians for the City of Pearland, inside that close geographic area. This was the primary reason the recommendation was to go to Humana. If the Humana bid is adopted, it would generate a monthly savings of $26,227 over the renewal received by the City. Annually that represents $314,772 in savings over the renewal of TML. Further details were given by Terry Hale on insurance bids from other companies for dental, life, Section 125 and vision benefits. Since no bids were received on Medicare supplemental insurance he recommends accepting the renewal through the current carrier which is TML since they are still offering it. Councilmember Owens asked what is the cost on Section 125 Administration. Terry Hale responded saying the cost is for employees who just use POP, which is premium only, and the cost is 250 per employee per month. Mayor Pro -Tem Marcott asked if they compared the primary care physicians, which employees currently have, with what is listed. He further asked what Humana's record is on dropping doctors or doctors dropping them. Terry Hale stated they compared the list of Humana in -network doctors with the list of doctors and hospitals that City employees used in the past nine months and this was a good match. He reported Humana had some problems with OB/GYN's in the San Antonio area about 4 years ago and as a result they lost a great deal of business. Humana has now taken a different approach in negotiations with their doctors. They have had less turnover of physicians in the last 3-4 years because of the experience with San Antonio. With Humana's plan City of Pearland employees do not have to pick a primary care physician. City Manager, Bill Eisen, stated TML rates went from $273 a month to $409 a month. Further discussion ensued between Council and Terry Hale regarding employee benefits. Page 13 of 18 - 09/10/20017:00 1341 Voting "Aye" Councilmembers Seeger, Wilkins, Marcott, Owens, and Tetens. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-118 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AWARDING A BID FOR AUDIT SERVICES. Mr. Jim Causey, Director of Finance. CouncilmemberTetens madethe motion, seconded by Councilmember Owens, to approve Resolution No. R2001-118. City Manager, Bill Eisen, stated his observations are that this is intended to be the beginning of a 5 -year rotation program for auditors so they may have a "fresh" look at not only how the City prepares financial statements but also the internal control mechanism so that if there are weaknesses there may be a "fresh" look. Director of Finance, Jim Causey, stated we did have a criterion spelled out for evaluating these bids. The City received a good recommendations on two different firms. Either firm could do a good job but the determining factor was in meeting three of the four criteria set by the City, which this firm met. Cost was one of the met criteria. Mayor Pro -Tem Marcott stated this was a good idea since the City has had the same firm for a long time and this gives a new and different perspective. Councilmember Seeger stated it will be interesting to see what this firm finds in comparison to previous years. Voting "Aye" Councilmembers Tetens, Owens, Marcott, Wilkins, and Seeger. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-121 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A CONTRACT WITH DUNHAM ENGINEERING FOR ENGINEERING SERVICES ASSOCIATED WITH THE REPLACEMENT OF THE McLEAN ROAD WATER TANK. Mr. Jerry Burns, Public Works Director. Page 14 of 18 - 09/10/2001 7:00 135 Councilmember Owens made the motion, seconded by Councilmember Wilkins, to approve Resolution No. R2001-121. City Manager, Bill Eisen, stated as indicated in the motion, the proposed contract is for engineering services for the replacement of a ground storage tank on McLean Road. The contract will provide for all preparation of plans, specifications, bid documents, reviews and recommendations to the City. Mayor Pro -Tem Marcott stated he would like to see the first progress payment, not after the draft contract but after the bid specifications are ready to go out or have been issued and that we do not duly uphold the approval process. Councilmember Owens asked what the payments are on this item. Deputy City Manager, Alan Mueller, stated normally engineers bill monthly so if they are willing to wait and get paid in 2 lump payments it will be better than what the City normally has. The standard contract Council is looking at tonight just provides that the engineer can bill the City no more frequently than monthly, which they normally do. If the engineer is willing to wait and get paid when he submits the documents this is better for the City. Mayor Pro -Tem Marcott asked if this would slow things down. Deputy City Manager, Alan Mueller, stated not that he can see. Public Works Director, Jerry Burns, stated the engineer knows he is on a timetable for the winter months and is ready to begin work right now and in fact has already begun work on it. Further discussion ensued regarding the details of the contract with Dunham Engineering. Voting "Aye" Councilmembers Seeger, Wilkins, Marcott, Owens, and Tetens. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-119 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A DEVELOPMENT AGREEMENT WITH BEAZER HOMES TEXAS, L.P., FOR OVERSIZING OF A WATER MAIN ALONG Page 15 of 18 - 09/10/2001 7:00 136 PEARLAND PARKWAYAND McHARD ROAD AND A SEWER MAIN ALONG PEARLAND PARKWAY. Mr. Alan Mueller, Deputy City Manager. Mayor Pro -Tem Marcott made the motion, seconded by Councilmember Wilkins, to approve Resolution No. R2001-119. City Manager, Bill Eisen, stated this is an oversize agreement with Beazer Homes for lines along Pearland Parkway. Deputy City Manager, Alan Mueller, stated according to the map given to Council they can see along the project where Old Alvin Road along McHard, and then south along Pearland Parkway to the south property line of the Beazer tract, they are oversizing the water line from a 12 inch to 16 inch in this entire segment. The sanitary is being upgraded to a 30 and 36 inch, depending on where you are along the project. The basic sizes they would have had to build are 12, 15 and 18 inch so the City is oversizing from 12, 15 and 18 inch up to 30 and 36 inch. There are two isolated wetlands that are in this area that need to be checked with the Corps of Engineers to make sure this is approved. Before the segment can be authorized there has to be final approval from the Corps of Engineers. Assuming this is okay the City will proceed with this section. Mayor Pro -Tem Marcott asked if there is a contract start date. Deputy City Manager, Alan Mueller, stated there is no start date but he has a pre-bid meeting on Wednesday so work should begin in 2-3 weeks. Voting "Aye" Councilmembers Tetens, Owens, Marcott, Wilkins, and Seeger. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-120 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AWARDING A BID TO REPLACE THE ROOF OF THE FLEET SERVICES BUILDING. Mr. Jerry Burns, Public Works Director. Councilmember Wilkins madethe motion, seconded by CouncilmemberTetens, to approve Resolution No. R2001-120. City Manager, Bill Eisen, stated this is to replace a leaking roof which is causing damage to materials and equipment stored inside this building. Page 16 of 18 - 09/10/2001 7:00 137 Mayor Pro -Tem Marcott asked if the extra work on the walls is part of the reason this was over budget. Public Works Director, Jerry Burns, stated once they got in there and started looking around they found the struts on the inside were cracked and this is the reason for going with the steel roof system. He stated this is a lot more work than originally anticipated. Voting "Aye" Councilmembers Seeger, Wilkins, Marcott, Owens, and Tetens. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-125 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE CONTRACTS WITH MERCER CONSTRUCTION COMPANY AND PHOENIX FABRICATORS AND ERECTORS FOR CONSTRUCTION SERVICES ASSOCIATED WITH THE CULLEN WATER PLANT AND ELEVATED STORAGE TANK IMPROVEMENTS. Mr. Alan Mueller, Deputy City Manager. Councilmember Owens made the motion, seconded by CouncilmemberTetens, to approve Resolution No. R2001-125. Voting "Aye" Councilmembers Tetens, Owens, Marcott, Wilkins, and Seeger. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION - RESOLUTION NO. R2001-122 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, NOMINATING DENNIS FRAUENBERGER TO SERVE ON THE BRAZORIA COUNTY APPRAISAL DISTRICT BOARD OF DIRECTORS. Mr. Darrin Coker, City Attorney. Councilmember Owens made the motion, seconded by Councilmember Tetens, to approve Resolution No. R2001-125. Mayor Reid reported Dennis Frauenberger was the unanimous choice of the Alvin and Pearland Independent School Districts when he first went on board the Appraisal District and has served for several years. He is the third person to have served on the Board. Page 17 of 18 - 09/10/2001 7:00 138 Mayor Reid stated he spoke to Mr. Frauenberger earlier in the week who said he would be delighted to continue serving and is comfortable with the people and the process. Voting "Aye" Councilmembers Seeger, Wilkins, Marcott, Owens, and Tetens. Voting "No" None. Motion Passed 5 to 0. OTHER BUSINESS: None. ADJOURNMENT: Meeting was adjourned at 9:28 p.m. Minutes approved as submitted and/or corrected this the 81h day of October, 2001. Tom Reid Mayor ATTEST: Page 18 of 18 - 09/10/2001 7:00