1998-10-05 CITY COUNCIL SPECIAL MEETING MINUTES" 4
MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON OCTOBER 5, 1998 AT 7:30 P.M., IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
The meeting was called to order with the following present:
Mayor
Tom Reid
Mayor Pro -Tem
Larry Wilkins
Councilmember
Helen Beckman
Councilmember
William Berger
Councilmember
Klaus Seeger
Interim City Manager
Glen Erwin
City Attorney
Darrin Coker
City Secretary
Young Lorfing
Absent: Councilmember Tetens.
Others in attendance: Project Coordinator Alan Mueller; Police Chief Mike Hogg; City
EngineerJohn Hargrove; Grants DirectorJanet Berry; Planning and Development Director
Dennis Smith; Director of Administrative Services Mary Hickling; Purchasing Officer
Gordon Island and Utility Accounts Supervisor Missy Miller.
CALL TO ORDER
PURPOSE OF THE MEETING:
MOTION TO REMOVE FROM THE TABLE, AWARD OF BID NO. B98-39 FOR MEDICAL
AND LIFE INSURANCE FOR THE CITY OF PEARLAND EMPLOYEES.
Mayor Pro -Tem Wilkins made the motion, seconded by Councilmember Beckman, to
remove the awarding of Bid No. B98-39 for Medical and Life Insurance for the City
Employees from the table.
Voting "Aye" Councilmembers Seeger, Berger, Wilkins, and Beckman.
Voting "No" None.
Motion Passed 4 to 0, with Councilmember Tetens being absent.
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135
COUNCIL ACTION - AWARD OF BID NO. B98-39 FOR MEDICAL AND LIFE
INSURANCE FOR THE CITY OF PEARLAND EMPLOYEES.
Councilmember Berger made the motion, seconded by Councilmember Beckman, to
award Bid No. B98-39, for Medical and Life Insurance, for the City Employees to TML
(Texas Municipal League) for budget year 1998-99.
Mayor Reid stated that he has had a request from two individuals, to make a presentation
to Council, and with Council's concurrence he would move forward.
Kevin Cole, 2319 Francis, addressed Council and stated that he is representing
Prudential, Houston Hamilton and Eddie Hebert, as they both have meetings out of town.
Mr. Cole introduced Alex Herrera with Prudential Health Care. He stated that several
issues were raised at the last meeting, and he is here tonight to try to answer some of
those concerns so that Council can have good information to go by. Mr. Cole stated that
Mr. Hebert advised him that he had contacted a couple of the Councilmembers over the
weekend, and gave them some information. Mr. Cole passed out information to Council,
because possibly all of the Council did not receive the information. Mr. Cole said that he
measures bids, versus the budget, and that is how Prudential has come up with the
amount of savings that was previously mentioned. He also said that there are additional
employees in the new budget. He gave an overview of the handout, and further stated the
handout do not take into account, the City awarding the dental portion of the bid to
Prudential, and Mr. Cole said that Prudential will out source the administration of the
Section 125 plan. It is their contention that the City could stay with TML for the section 125
plan, especially if they award the bid for dental to TML. He also said that the administration
of COBRA could be done for about $5,000 a year. Mr. Cole recommended that Council
award the Section 125 and Dental Plan to TML and the Medical Plan to Prudential.
Alex Herrera, addressed Council and gave a presentation regarding the hospitals that are
on the Prudential Plan.
There was additional discussion between Council, Mr. Cole and Mr. Herrera regarding the
Prudential Plan.
Joe Martin, 1801 McGinnis Drive, addressed Council and said that he also represents
Prudential, and he would like to be considered. Mr. Martin said that they could give the City
as much service as they have had. He said that he mailed each Councilmember a letter
spelling out all of the difference of the plans. Mr. Martin said that he thinks Prudential is
the best thing for the employees.
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�-, Mary Hickling, Director of Administrative Services, addressed Council and stated that she
does not have much more to add, than what she has said in the past. Ms. Hickling pointed
out that the shifting of the burden of the cost in the Prudential Plan is to the employee;
taking into consideration the employee's dependent rates, not just the employee rate. She
further stated that Prudential's bid is the lowest for the employee only, they bid $150.65 per
employee. The difference is the cost for the dependant coverage which is a lot higher than
what it appears to be on paper. Mr. Cole stated that we could stay on the flexible spending
account with TML, and after checking with TML, we could not remain on the Flex Plan
because the system is fully integrated and if all medical and dental claims are not
processed by TML the City could not do that.
Councilmember Beckman stated that with the tiered rate, it would be more affordable for
employees with family.
Mayor Reid said putting a pencil to it we are not that far off on the numbers, and he stated
that the City has an excellent bunch of employees, and we owe them the best insurance
available. Mayor Reid stated that his real concern is the employee.
Councilmember Berger stated that he is also concerned that the employees get the best
medical insurance available. He said he will weigh his decision heavily on the
recommendation of the Committee.
There was additional discussion with Ms. Hickling and the Council regarding the City being
in a small insurance pool of its own. If we stay with TML, the insurance benefits will remain
the same with the exception of the lower rate for employees and the tiered rate for
dependent coverage which will be a significant savings for the employees who select the
tiered rate.
Voting "Aye" Councilmembers Seeger, Berger, Wilkins, and Beckman.
Voting "No" None.
Motion Passed 4 to 0, with Councilmember Tetens being absent.
OTHER BUSINESS:
ADJOURNMENT
Meeting was adjourned at 8:10 p.m.
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III
Minutes approved as submitted and/or corrected this the 2611 day of October , A.D.,
1998.
ATTEST:
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Tom Reid
Mayor