MIN CC 07/07/1987HUNTSVILLE CITY COUNCIL MEETING -- WARD 3 MEETING BOOK "0"
JULY 7, 1987 PAGE 97
MINUTES OF THE HUNTSVILLE CITY COUNCIL MEETING HELD ON THE 7TH DAY OF JULY, 1987 AT MARTIN LUTHER KING NEIGHBOR-
HOOD CENTER (EMANCIPATION PARK), LOCATED AT 300 AVENUE F (AT 3RD STREET), IN HUNTSVILLE, WALKER COUNTY, TEXAS AT
6:45 P.M.
The Council met in a regular session with the following members present:
Jane Monday, Mayor
0. Eugene Barrett
Gary Bell
Jim Carter
Ile G. Gaines
Wiliam B. Green
Percy Howard, Jr.
Bill Knotta
Member absent: City Officers present:
Gene Pipes, City Manager
Ruth DeShaw, City Secretary
Ruth DeShaw, City Secretary
William L. Hammock
CITIZEN INPUT
No one signed in at the door to speak prior to the formal session.
FORMAL SESSION
Mayor Monday then called the formal session open. Reverend Eugene King of First Baptist Church then pre-
sented the invocation.
ATTENDING CITIZEN
Mark Allred to present Eagle Scout Project results concerning Huntsville's elderly assistance programa and to
seek the Council's input (Varsity Scout Team 1046 -Sam Houston Area Council)
Mr. Allred advised the Council he decided to do his Eagle Scout Project by doing a survey in which he asked
200 elderly persons various things pertaining the Huntsville's welfare programs. He advised the objective of
this project was to scientifically survey the elderly in reference to Huntsville's welfare programs (in which
they may be involved) for the benefit of their input in attempt to better these programs. He then showed the
Council the results of his telephone survey which were presented in the form of pie charts. In conclusion,
Mr. Allred said the main area of concern here is the amount of information unknown to the elderly, who may want,
or even need to know of the programs available to them. He then recommended, in reference to the amount of
unknown information, that the City Council sponsor a public awareness program directed at the elderly to make
these various welfare programs known.
Mayor Monday thanked Mr. Allred for the information. She noted it is all very interesting. Councilmember
Green asked how the participants in the survey were selected and found they were obtained from Mr. Allred'sfather'
client list as a hearing aid dispenser; it represents a wide area including persona outside the city limits, age 50+
Mayor Monday suggested that a brochure could be developed for distribution to the elderly, detailing all of the
various elderly assistance programs that are available in the area. She asked Mr. Allred to get back with the
City Secretary for assistance on this brochure. After some other questions from the Council for clarification,
the Council moved on to the next item.
CONSIDER RETIREMENT PROGRAM CONTRACT
Consider authorizing contract with Stark & Frahm for assistance in administering City's retirement program
Mr. Pipes, City Manager, presented the Council with a memorandum from Patricia Allen, Director of Finance
which provided background information concerning the administration of the City's retirement plan. She noted
in the memo that when Kansas City Life Insurance company indicated they would no longer provide administrative
service, the City began its search for an administrative service. Our local depository bank was contacted but
indicated, after meeting with the city and reviewing the plan, that they would not be interested in handling an
account of this size, she said. The city then contacted Hereford Lynch & Company, Mrs. Allen noted, who had
previously indicated they provided this service, and they too indicated that because of the size, the city would
be better served elsewhere. Mrs. Allen noted Hereford Lynch provided the city with the name of a firm in Houston
as did our auditors (Reynolds, Davis, White & Company): Kansas City Life Insurance Company also provided a recom-
mendation for service.
A meeting with Kansas City Life Insurance Company and the firm they recommended, Fries¢ Benefits
Design of Kansas City, was then held. Two other proposals from the Kansas City area were received. The City
later discussed its desire to segregate the investments and the administrative service and use a firm "closer
to home."
Mrs. Allen then advised that city representatives met with Business Benefits Corporation of Houston and
the representatives of a second firm, Stark & Frahm. Mrs. Allen noted the staff was in agreement that it pre-
ferred the firm of Stark & Frahm for several reasons: it is a Houston firm totally independent of Kansas City
Life Insurance company, that currently handles a large number of accounts. It has been in business since 1938,
has a large staff of both legal and administrative people and is interested totally in administration of the
plan and not in obtaining the funds for inventing.
The Council was advised the fees charged by the three firms are very comparable with the estimated coat of
the administration contract around $4,905 annually. She noted it will be necessary to include this figure in
the City's FY 87 -88 budget along with $1,000 as a one time charge to review the plan.
After some further discussion for clarification by the City Councilmembers and Mr. Pipes, the vote was
taken. Councilmember Howard made the motion to approve authorization of a contract with Stark & Frahm for assis-
tance in administering the City's retirement program and Councilmember Knotts seconded the motion. All were in
favor and the motion passed unanimously.
Consider authorizing amendments to the City's self- funded group health program
Mr. Gene Pipes, City Manager, advised the staff 1s pleased to recommend for the Council's consideration the
continuation of the city's self- funded group health plan for the third year. He said prior to this time the Cit)
had undergone a tremendous cycle of constantly increasing costs for our health care services insurance program
for health care of our participants. He said the renewed health plan will provide for the following:
1. The monthly funding rate for employee medical /dental coverage will remain at its current level of 579.13
while the additional cost for dependant medical /dental coverage will be reduced by 8Z to 5146.48 (this cost
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BOOK "0" JULY 7, 1987 CITY COUNCIL MINUTES - -WARD 3 MEETING
being paid by employees).
2. The plan will offer dental coverage on an "unbucdled" basis in which an employee may choose to take single -
medical /family - dental coverage at a cost of $40.46 rather than $146.48 (family medical /dental).
3. The plan will add the following cost containment /wellness benefits:
a. A $100 per person per year routine examination benefit (this would be used for an annual physical,
"well- baby" care, check -up, pap smear, etc...).
4. Smith Administrators will reduce its monthly administrative fee to $6.85 per employee per month.
5. The plan will implement a total Utilization Review Program with pre- certification, concurrent and post review
services. This will cost the plan $1.65 per employee per month payable to Capp Care of Texas.
6. A Section 125 Benefit plan will be implemented in order to allow employees to pay specified expenses on a
"before -tax" basis. Those expenses are: (Section 125 Benefit Plan to be effective October 1, 1987.)
a. Premiums for group meeical /dental coverage, optional term life and accident coverage.
b. Dependent /child care expense reimbursement.
c. "Out -of- pocket" medical /dental expense reimbursement.
To implement this plan, the City will pay a one time plan document fee of 5500.00. Those employees who choose
to participate in the plan will pay a monthly accounting fee.
7. The specific excess loss premiums are increasing to $9.75/employee and $15.80 /dependent. The plan will con-
tinue to purchase an incurred specific stop loss contract with NALAC. It was unadvisable to change stop lose
carriers at this time due to the large on -going claim that the plan is experiencing which would be excluded
under coverage by other carriers.
8. The Aggregate Stop Loss factors are increasing to $99.27 /employee and $130.53/dependent, respectively, however
by implementing the Total Utilization Review Program, the plan will save about $4,000 /year in premium costs.
Gene Pipes, City Manager, then recommended the Council's approval of the July 1, 1987 renewal of the
City's "self- funded" group health plan, administered by Smith Administrators, Employee Benefit Specialists.
Councilmember Gaines made the motion to approve of this renewal and Councilmember Barrett seconded the motion.
All were in favor and the motion passed unanimously.
CITY MANAGER'S REPORT - -GENE PIPES
Consider request for public hearing on application for waste discharge permit of Texas Mirror immediately
south of Goree Prison Farm
Mr. Gene Pipes, City Manager, advised the Council the staff has been evaluating the waste discharge permit
request from Texas Mirror. He said the city has received information from officials of Texas Mirror this after-
noon and the staff will be meeting with them tomorrow. He said the Council will be meeting on July 14, which is
seven days ahead of the deadline necessary to submit an objection to the permit request and therefore initiate
public hearings to be conducted by the Texas Water Commission. He said the staff will discuss a possible linkage
between Texas Mirror and some adjacent property owners out there who also perhaps may need sewer services. He
said he will be reporting back to the Council on July 14 regarding these discussions.
Next Meeting- -July 14-- Possible Location Change
Mr. Pipes advised he is very pleased and gratified to see the number of people attending this meeting from
Ward three. He noted the next ward meeting was scheduled for Ward 4 at the City's new elevated water tower
installation, but the temperature in the room at the base of the tower is not conducive for conducting a public
meeting. He noted too the meeting here tonight is lacking the many maps that further explain the bond program.
He then suggested that the Ward 4 meeting be held at the Service Center in the Assembly Room, so that those who
attend can be comfortable and can view all of the maps available. He asked the Council to think about the
possibility of moving the Ward 4 and Ward 2 meetings to the Service Center for these reasons. He suggested
resuming the ward town meeting format in October, when the evenings will be cooler and the humidity lower.
He said this decision will, of course, be at the discretion of the City Council.
Saturday Budget Session Cancelled
Mr. Pipes noted due to several City Councilmember time conflicts, the all day Saturday budget session,
originally scheduled for August 15, has been cancelled. He noted the staff will provide the necessary budget
information for the council's review on successive Tuesday nights, rather than meeting all day on a Saturday.
He said the primary Tuesday night budget session will be on August 18, 1987. He said this change will facilitate
the late summer vacation schedules.
MAYOR'S REPORT - -JANE MONDAY
Handicap Access to Square
Mayor Monday noted on March 17, 1987, Mr. Jack C. Robbins, Sr. asked the Council to consider funding the
installation of handicap ramps for handicapped people on all corners around the Square opposite from the Court-
house side so that the handicapped people can shop downtown. She said he asked the Council to study the possi-
bility of cutting the curbs in those locations to ramp them. The City Manager, Gene Pipes, was asked to have
a report on the staff's findings by July 14 for the Council's review.
Consider Public Library Board Appointments (Jackie Merchant and A. J. Koinm)
Mayor Monday then made the following nominations for appointment to the Library Board: Jackie Merchant
and Mr. A. J. Koinm (replaces outgoing board members, Ms. Kay Cox and Mr. Raymond Davis, respectively). It was
noted these terms are for three years commencing July 1, 1987. The other members of the board still serving
are: Mrs. Ann Fleming, Mrs. Susan Knuth, Dr. Frank Fair and Ms. Linda O'Banion. Councilmember Bell made the
motion to approve of these two new appointments and Councilmember Howard seconded the motion. All were in
favor and the motion passed unanimously.
Consider Huntsville Housing Authority Appointments (Jayn Gebert and John Holcombe)
Mayor Monday then made the following nominations for appointment to the Library Boards the reappointment
of Dr. John Holcombe for a full two year term (first appointed in April to fill an unexpired term of Jim
Carter, who was elected to the City Council); and Mrs. Jayn Qebert, for a new two year term (replacing outgoing
board member Ruben de la Rosa, Sr. Councilmember Barrett made the motion to approve of these two appointments
JULY 7, 1987 WARD 3 CITY COUNCIL MEETING MINUTES BOOK "0" PAGE 915
1
and Councilmember Howard seconded the motion. Upon a vote of the motion on the floor, Councilmember Bell voted
OPPOSED to the motion and all other members of Council voted FOR the motion and it therefore passed by a vote of
8 to 1.
Call of Concern from Jay Shepherd
Mayor Monday advised she has received a concerned call from Jay Shepherd concerning the use of pellet guns
and BB guns in the City limits. She asked Mr. Bounds to review what the city can do about the use of these guns
in the city limits and get back with the Council in the next meeting.
New Reporters Introduced
Mayor Monday then introduced Ms. Eileen Emerson, reporter from KKNX radio station and, sitting in for
Bill Shoening this evening, Mr. Sean McEnany of KSAM /KHUN radio station.
COUNCIL ACTION
Councilmember Carter -- noted he feels at home meeting here in Ward 3 because of all the years he spent serving
on the Huntsville Housing Authority in the administration of the operation of the Watkins -Clark Housing
Project just across the street. He also expressed his appreciation for the number of residents attending
this Ward 3 Council Meeting.
Councilmember Barrett -- commented on the events held in the City and County over the weekend. He said we should
be proud of all the events we have had and he is doubly proud that the City Council Celebrity Tug -of -War
Team beat out the Huntsville Item Celebrity Tug -of -War Team last Saturday at the Fairgrounds. He said it
was a very good wee encndd 'and all of the people of Huntsville really enjoyed it. It was good publicity for
our town, he said.
Councilmember Gaines -- focused the Council's attention on the innovative way in which Mr. 0. J. Moak is
advertising a building adjacent to his law office on the Square for sale. She noted he engaged Mr. Julius
Slaughter to paint an interesting window to draw attention to the building and that it was for sale. She
said this is the building formerly occupied by Ezell's Chocolate Castle. She felt this idea makes this
building look attractive. She hoped the people owning the other vacant buildings around the square would
do a similar thing.
Mayor Monday -- also recapped the events of the weekend, including the very fine fireworks display operated by
Dr. Jerry Etheredge, the band concert, and on Sunday, the Interstate Battery Car Race. She said there was
an excellent turn out for these events and all seemed to have a very good time.
Councilmember Howard -- expressed his delight in seeing all the people coming out for this Council meeting and
demonstrating their interest in their city government.
RECESS TO WORK SESSION
The Council then recessed into a work session to discuss the August 8 Election Referendums: The $4.5
million street and related drainage bond isue program and the half -cent optional sales tax increase /property
tax reduction item.
ADJOURNMENT
tfully submitted,
Ruth DeShaw, City Secretary
July 7, 1987