HomeMy WebLinkAbout07-09-1996
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CITY COUNCIL AGENDA PACKET
July % 1996
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Apenda No % - O 2 g
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AGENDA
CITY OF DENTON CITY COUNCIL
July 9, 1996
' Closed Meeting of the City of Denton City Council on Tuesday, July
90 1996 at 5:45 p.m. in the Civil Defense Room of City Hall, 215 E.
McKinney, Denton, Texas, at which the following items will be
considered:
NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO
CLOSED MEETING AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS
LEGALLY PERMISSIBLE.
1. Closed Meeting:
A. Legal Matters Under TEX. GOVT CODE Sec. 551.071
B. Real Estate Under TEX. GOVT CODE Sec. 551.072
C. Personnel/Board Appointments Under TEX. GOVT CODE {
Sec. 551.074
Work Session of the City of Denton City Council on Tuesday, July 9,
1996 at 7:00 p.m. in the City Council Chambers of City Hall, 215 E.
McKinney, Denton, Texas at which the fallowing items will be
considered:
NOTE: A Work Session is used to explore matters of interest to
one or more City Council Members or the City Manager for the
purpose of giving staff direction into whether or not such matters
should be placed on a future regular or special meeting of the
Council for citizen input, City Council deliberation and formal
City action. At a work session, the City Council generally
receives informal and preliminary reports and information from City
staff, officials, members of City committees, and the individual or
organization proposing council action, if invited by City Council
or City Manager to participate in the session. Participation by
individuals and members of organizations invited to speak ceases
when the Mayor announces the session is being closed to public
input. Although Work Sessions are public meetings, and citizens
have a legal right to attend, they are not public hearings, so
citizens are not allowed to participate in the session unless
invited to do so by the Mayor. Any citizen may supply to the City
Council, prior to the beginning of the session, a written report
regarding the citizen's opinion on the matter being explored.
Should the Council direct the matter be placed on a regular meeting
agenda, the staff will generally prepare a final report defining
the proposed action, which will be made available to all citizens
prior to the regular meeting at which citizen input is sought. The
purpose of this procedure is to allow citizens attending the
regular meeting the opportunity to hear the views of their fellow
citizens without having to attend two meetings.
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ALeoda No. 7
Agenda Item
City of Denton City Council Agenda Date ~ L
July 9, 1996
Page 2
1. Receive and discuss a recommendation and give staff direction
to combine the Juvenile Diversionary Services of Denton and
the Juvenile Crime Interagency Coalition.
2. Receive a report, hold a discussion and give staff direction
regarding recommendations on bond projects from the Oversight
Committee.
3. Receive a report, hold a discussion and give staff direction
concerning awarding a bid for the City's group health
insurance coverage for the plan year beginning January 1,
1997.
4. Receive a report and give staff direction regarding the city's
pilot curbside newspaper collection program.
5. Receive a report, hold a discussion, and give staff direction
regarding the purchase of public officials' liability
insurance.
Following the completion of the Work Session, the Council will
convene into a Special Called Meeting at which the following item
will be considered:
1. Consider approval of a resolution appointing David
Garcia, Kim Cawley, and Earlean Murphy as Assistant City
Judges for the City of Denton Court Municipal of Record;
authorizing the Mayor to execute contracts for their
terms of office.
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2. Consider nominations/appointments to the City's Boards
and Commissions.
3. Consider and approve an ordinance amending Section 2-62
"Conflict of Interest" of the Code of Ordinances of the
City of Denton to provide that no member of a board or
commission of the city that exercises any sovereign
function of government independent of the control of the
city council shall be financially interested in certain
transactions with the city; amending Section 2-83
"General Rules" of the Code of Ordinances of the City of
Denton to define personal interest as a financial
interest providing for a definition of financial
interest; providing a savings clause; listing boards
which have sovereign municipal functions.
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City of Denton City Council Agenda '%gendat -I~tem
July 9, 1996 pags..'~_
Page 3
C E R T I F I C A T E
I certify that the above notice of meeting was posted on the
bulletin board at the City Hall of the City of Denton, Texas, on
the day of
(p.m.) 1996 at -o'clock (a.m.)
CITY SECRETARY
NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN
ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE
CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE
HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN
ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY
SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS
DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO
THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH
THE CITY SECRETARY'S OFFICE.
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Agenda No.. q V - 02 S
Apanda Item wS 1
Data ''I - 9 --4 ~
DATE: July 2, 1996
CITY COUNCIL REPORT
TO: Mayor and Members of the City Council
FROM: Ted Benavides, City Manager
SUBJECT: COMBINATION OF JUVENILE CRIME INTERAGENCY COALITION
NTH JUVENILE DIVERSIONARY SERVICES OF DENTON, INC.
RECOMMENDATION: Restructure Juvenile Diversionary Services of Dent,-,n, Inc. to
include the functkon of the Juvenile Crime Interagency Coalition. This will invoi:p
eliminating the Juvenile Crime Interagency Coalition and inviting many of its members
to serve as Board Members of the Juvenile Diversionary Services of Denton, Inc.
SUMMARY: Juvenile Diversionary Services of Denton, Inc. would be expanded to
include the following board structure:
1. &wutlve Committee - This committee is generally empowered to act for
trie full board in matters that require immediate action or do not involve
major questions of policy or funding. The elected officers will serve on
this committee along with a few other members of the board, some of
whom may be chairs of other committees (See attachment W,
Organization Chart).
2. Financs✓Administration - This committee is usually headed by the
treasurer. It is empowered to study and make recommendations
regarding all financial procedures and controls, assist in the preparation
of the budget, and review all financial statements. In addition, this
committee develops personnel policies, recommends salary ranges to the
board and addresses issues that relate to the staff and operation of the
office.
3. Program Development - This committee is organized to review current
program activities, review community needs and plan future programs.
4. Fund4alsingl/Public Relations - This committee oversees the planning
and coordination of fund-raising efforts. These efforts include annual
fund-raising as well as researching various grant funding opportunities.
In addition, this committee oversees the development and implementation
of public relations efforts.
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Agenda Item^ "
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5. Nominating - This committee identifies, screens and recommends
prospective board members. Members of this committee assist in the
recruitment and orientation of new board members.
Each of these committees will have a chairperson selected by the incoming president,
who will serve as a member of the Executive Committee. The at-large Board members
will serve as committee members. A'I new board members will be asked to select a
committee on which they wish to serve based on their interest, knowledge and
availability. It has also been recommended that at least two (2) teens serve as
advisory board membors.
Because the responsibilities of the Board of Directors are so varied, it is necessary to
recruit members with a variety of skills and areas of knowledge. Some of these areas
include:
■ Nonprofit management
■ FinanciaVaccounting
■ f=und raising
■ Personnel management
a Legal matters
■ Public relations
■ Juvenile Issues
In addition, board members must represent a variety of backgrounds as well as various
segments of the community. This will include various minority and ethnic groups that
will give the board a broad vision and understanding of the true meaning of community
and public service. It has been suggested that in enlarging our board, we follow the
outline recommended by the City Council in forming the Juvenile Crime Interagency
Coalition to ensure a true community representation.
The total limit on the number of board members has been set at 23, with eight serving
on the Executive Committee. In addition, there are four advisory (non-voting) board
positions. The full board will meet on a quarterly basis, committees will meet as
needed, and the executive committee will meet monthly.
13ACKGROUND: The Council passed a Resolution (See Attachment 08"), #R95-011
forming the Juvenile Crime Interagency Coalition on January 17, 1995 and the Teen
Court Board of Directors was appointed at the same time. During the first year of
operation, the Teen Court Board initiated the operation of the Teen Court and
determined that incorporation was necessary for reasons of grant and tax purposes.
The new name became `Juvenile Diversionary Services of Denton, Incorporated.'
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1'he Juvenile Crime Interagency Coalition was busy locating resources and designing
new juvenile programs for the community. The first was a Title V Juvenile Crime
Prevention grant offered by the Office of the Governor, Criminal Justice Division. This
grant was written to offer funding for the Teen Court, after school tutoring and activities
program to be located at the Fred Moore Learning Center and run by the Boys and
Girls Club of Denton County. The grant must be applied for each year and a
Community Pian for Juvenile Crime Diversion must be submitted with the
reapplication. This year's plan will set the tone for our juvenile efforts. The grant
authority is looking for a community plan that provides a cohesive group controlling
juvenile diversionary efforts.
PROGRAMS DEPARTMENTS OR ROMPS AFFECT, ED vrtua!ly all groups in the
community involved in juvenile issues could be affected. The Municipal Court,
juveniles, the Police Department, Denton Independent School District and some County
Justice Courts will be most affected.
FISCAL IMPACTS• There is no direct fiscal impact related to the above
recommendation. However, our ability to obtain grant funding in the future may be
affected.
Respectfully submitted:
Ted Benavides
City Manager
Prapwsd by
Ha fferson
Director of Fiscal Operations
Approved Of,
S~
Oec uB e
e irector of Finance
Agenda No. '
Date -
Athchment "A"
ORGANIZATION CHART
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JUVENILE DIVERSIONARY
SERVICES OF DENTON, INC.
Organization Chart
'NeAm,eff"M
Presides
cMirpertan
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KM SN M Tom dory
6remOveUirecW STaALiason
(SWt AAemt~
'R"Rw" swwmGwq Bury '"tBungM 'clkiw tierce 'JameaC+:r~on 'StoRYYYidAem SAenyLMAaa
Treasurer Cho sub-co mmieee CAar Sot-Ccomthe CMa SubCummim Advisory Bard
Perivnerdenan Vice President financeTAdmi N ' Comn~tfee' &ISM G oel~pme t Fund RajwV
CMrSuDCmmiSee CMa Admin*3bo +9 PudicReVem
istration
Nam Nerve Name Name New Ns" RkMrdSbh
N
S6Cortrte9ee AIeMer SuD CortnMN Abrader Mew SibCmmeeeAmber &kcawww Member SubCormrfeeAAamba $obCm "Member Advi
Member
SibCmmitbe
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Name Nam NUN KWA Nam N Name Now
Mh ~ry9oeN
Warm" !sub ~ a'ee Alentber &bCmmlee AtemDar Sv~bCam'n'eee Member Sc~bCamril'ee AlertaSs StbCarrrrleeMember TeenAd
I Member
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Now N+~ Now Nww NUN ~
NenM NanN Member S tl{armrfee Abmber u4mrrieee Aismbw Wanmlee Member Su0 ConariMe Mender Teen Akrtrlet
StbCanrdPreAlembe SibConmleeAkrnber SrbConvre'be
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~ Decusive commiruc mcmbcr N3/96
Agenda No.r== t
Agenda Item
Attachment "B"
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RESOLUTION NO. R95-011
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4:\WPD0C5\k9S5 CRUQ.COL
Agenda Item
~t Date
RESOLUTION NO.
A RESOLUTION CREATING THE JUVENILE CRIME INTERAGENCY COALITION TO
FORMULATE AND PROVIDE RECOMMENDATIONS TO THE CITY COUNCIL RELATING
TO THE NEED FOR ADDITIONAL COORDINATION AND RESOURCES TO BE CON-
TRIBUTED TOWARD THE REHABILITATION OF JUVENILE OFFENDERS; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Denton has assumed jurisdiction over juv-
enile offenders committing certain offenses; and
WHEREAS, the City Council created a Juvenile Diversion Task
Force in order to explore options in the development of a juvenile
justice program containing a variety of alternative methods to
provide effective rehabilitative enforcement and judicial tools for
juvenile offenders; and
WHEREAS, the City Council of the City of Denton desires to
implement the recommendation of the Task Force that a Juvenile
Crime Interagency Coalition be created; NOW, THEREFOREa
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION I. That the City Council hereby establishes a Juven-
ile Crime Interagency Coalition.
SECTION II. (a) That the Juvenile Crime Interagency
Coalition shall promote understanding, shall facilitate coordina-
tion and cooperation among-agencies involved with issues relating
to juveniles and to submit an annual report to the City Council on
juvenile crime issues which may contain recommendations regarding
the establishment of additional Diversion Programs.
(b) In the event the Coalition recommends the establishment
of additional Diversion Programs, the Coalition shall provide
recommendations to the City Council regarding the following
matters:
(1) The goals of the Diversion Program;
(2) The format of the Diversion Program;
(3) A public.relations strategy;
(4) The anticipated financial impact; and
(5) An implementation schedule.
SECTION III. That the Juvenile Crime Interagency Coalition
shall be composed of twenty-three representatives to be selected
and approved by the City Council from recommendations by the fol-
lowing groups and organizations:
1 representative recommended by the Denton Independent
School District Parent/Teacher Association;
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%fenda Item
gate.
1 representative recommended by the Denton Chamber of
Commerce,.
1 representative recommended by local civic groups, clubs, or
organizations; -
1 representative recommended by Denton County;
1 representative recommended by the Denton Independent School
District;
1 representative recommended by the office of the Municipal
Court Judga;
1 representative recommended by the Finance Department,;
1 representative recommended by the office of the City
Attorney;
1 representative recommended by the Denton Police Department;
1 representative recommended by community-based organizations;
1 representative recommended by the Concerned Parents
Organization;
1 representative recommended by the National Association for
the Advancement of Colored People;
1 representative recommended by the League of United Latin
American Citizens;
1 representative recommended by the Denton County Juvenile '
Probation Department;
1 representative recommended by the Denton County Bar Associa-
tion;
5 representatives recommended by the student body of t---
Denton Independent School District's high schools, middle
schools, and alternati«e school] and
3 representatives at large selected by the City Council.
SECTION Iy- That each representative shall serve a cr,e
calendar year term,
SECTION V That prior to the beginning of the calendar year,
the preceding groups and organizations shall submit to the City
Council the name of the person or persons recommended to serve as
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the group or organization
calendar year, a representative for the upcoming
29CLIM LL That
person of this Coalitionthe,City council shall designate the Chair-
tions express a desire to not
That in the event any of these listed organiza-
City council may se
serve on this Coalition representatieea of Otheriorganizationstto
iatelON V rr
Y 'Pon it-r.~• That this resolution shall be mmed_
passage and approval. effective i
PASSED AND APPROVED this the 1~
day of
, 1995.
BOB CASTLEBERRy, MAy
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
MICHAEL A. BUCEK, ACTING CITY ATTORNEY
BY:
PAGE 3
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Agenda No. a(~ ` 01$
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0OW 'f - 9 - 9 V'
CITYOFDENTON TEXAS MUNICIPAL BUILDING • DENTON, TEXAS 76201 • TELEPHONE 817 566.6307
OlTtce of the City Manager
MEMORANDUM
TO: Ted Benavides, City Manager
FROMi Rick Svehla, Deputy City Manager
DATBt July 2, 1996
SUBJBCTt 1996 Bond Oversight Committee Recommendation
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Attached is the back up from the June 25th meeting of the Oversight
Committee. As ycu can see, they recommended a number of things
both form the old 1986 bond issue, as well as for projects
contained in the 1996 bond election. They recommended approval of
the following additional projects and/or re-using existing interest
money:
1) Congestion Mitigation/Air Quality - re-appropriating
$24,000 frcm the Shady Oaks/Woodrow signal to the
Eagle/Bernard signal and turn lane project.
2) Re-allocating $5,700 of surplus funds from Hickory
repaving and the Teasley Lane projects to the median on 1
Loop 288.
3) Spending the last of the pre-emption (Opticom) money for
10 additional intersections within the city.
4) Using unused drainage money from the Windsor drainage for
the Archer Trail (west) drainage system to complete
riprapping at the end of the project.
5) Re-allocating unused James Street drainage project money
to the Mingo/Texas culvert project just recently
completed.
6) Increasing the final project funding for the College &
Vine Street Miscellaneous Drainage project from $13,000
to $200000 using the 1996 drainage money.
"Dedicated to Quality Service"
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,Agenda No.
Agendaa Item -1
1996 Bond Oversight Committee Recommendations Date
July 2, 1996
Page 2
7) Using approximately $140,000 the proposed
miscellaneous street money in the first of the year of
the 1996 plan for the road repaving and shoulder work on
Mingo Road.
8) Using $240,000 of the miscellaneous street rebuilding
money for the Flow Hospital area (Panhandle and Egan)
repaving and concrete work. This simply uses the CIP
funding as a bridging mechanism to fund rehabbing these
streets now. The 1996/97 operating funds will be used
for the rest of this year's CEP repaving projects.
9) Using excess sidewalk and paving project money to make
the sidewalk connection on Lillian Miller.
10) Reimbursing operating funds for acquisition of right-of-
way on Brinker Road near the new Walmart store.
Now that we have taken you through the major re-use of money the
Oversight Committee also reviewed turn lanes, traffic signals,
street reconstruction projects, miscellaneous drainage projects and
park projects for the first year of the 1996 Bond program. At the
March 25th meeting, staff recommended the Good Samaritan channel
and miscellaneous channel repairs to be the projects to use the
$125,000 worth of miscellaneous drainage. For the turn lanes,
staff recommended three locations. They are: northbound Alice at
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bays Carroll .S. 380; northbound Bell at Sherman; and extending the left turn
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staffore commended Kings aRowaat Loop 288 and Bonnie Brae at nOak and
Hickory. For street construction staff recommended the Mingo Road
shoulders and paving which has all ready been mentioned and Paisley
from Frame to Mack Drive. Paisley would be held and done later
subject to economic development projects. Finally, for the parks
projects staff has recommended three parks to begin with and those
are: McKenna, Phoenix and Fred Moore.
The Oversight Committee is making all of these recommendations
using old 1986 money, as well as recommending projects in the
flexible categories using the new bond money. At the June 24th
meeting, there was a consensus vote of the four members present
that all of these projects be recommended to the Council. Chairman
Mulroy had had discussions with one of the absent members, and he
was in concurrence also.
Essentially, this uses up all the unused interest money and/or left
over project money from most of the "other" projects that were
included in the final report of the 191 Committee. It also begins
us on the road of implementing and using the 1996 bond money.
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Agenda No.
Agenda Itei
1996 Bond Oversight Committee Recommendations Date
July 2, 1996
Page 3
We will be happy to answer any other questions the Council the
might have and will be at the Council Meeting to present this
information. L--~
Rick Svehla
Deputy City Manager
RS:bw
AMM00855
CC: Kathy DuBose, Executive Director for Finance
Jerzy Clark, Director of Engineering/Transportation
Attachment
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Agenda No
• MEMO Agenda Z
Oate
To: Citizens Oversight Committee. 1995-1999 Bond Program
From: Rick Svehla, Deputy City Manager
Jerry Clark, Director of Engineering and Transportation
Subject: June Meeting of Citizens Oversight Committee
Date: June 21, 1996
There are several items in both drainage and stmets where we need to get direction and
approval. We are trying to finish up the projects that are remaining from the previous
1986 bond programs. We would also like to have the committee take another look at
street projects that would be funded out of the miscellaneous monies based on our
evaluation of one of the older areas in Denton. We now feel the priority on these is
greater due to the speedy completion of a utility project and the rapidly deteriorating
condition of those streets. In each of the following projects we will attempt to give you
the basic problem and our funding solution. We have continued our practice of using
drainage money for drainage, street money for streets, etc. Remember, we told you that
• we found -over the years that CiP must be fluid and dynamic particularly on small
projects. This is particularly true when we have to move money around or when we have
to move expeditiously to finish a project.
Congestion Midgstion/Afr Quality fCMAQ! Eagle Drive Turn Lanes - Staff has been
working with the North Texas Council of Governments (NTCOG) staff to streamline our
CMAO projects to help get them moving toward construction. We have been successful
in getting them combined into one larger project described as the Turn Lanes for Eagle
Drive between IOOF and Avenue A. This project has a total estimated cost of $487,000,
consisting of $390,000 federal, $26,000 state, and $71,000 local funding. We will
bring a schematic of the project to the meeting. We have available as our share of the
original projects a total of $48,723. As we now need $71,000, an additional $22,277
must be budgeted, This is available from two sources where projects were completed
under budget. The Shady Oaks at Woodrow Signal Project has $24,000 available, or the
3 pedestrian signals and Lillian Miller at Southridge combined have a remainder of
$23,656. Based on the higher need of signal work, we recommend that the later be
chosen for this and the remainder of the funds for the Shady Oaks at Woodrow be used
to purchase new Peek 3000 controllers for the rest of Carroll Boulevard for the extra
features they provide and to gain consistency.
Loop 288 Median - TXDOT is having problems with their bid for the Loop 288 median at
00 the mall. The project came in over budget. They have reallocated some costs and are
asking for an additional $5,800 for our share of the concrete median to match the
medians on Colorado Boulevard. We think this is a good expenditure to keep the medians
consistent and to continue to meet our goal of enhancing the appearance of major
arterials and entrances throughout the city. We have two old accounts where
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Memo to Oversight Committee
June 20, 1996
Page 2 Agenda Item g~ -
• Date
we have not used all the money. These are 1986 bond or interest money projects. In
the Hickory Street Repaving account, there is $5,457 available and $233 in the Teasley
Driveway account. We suggest using this money to pay for our additional median costs.
Emergency Pre-Emption - There is $50,000 left in the account for Phase Three of the
emergency preemption program. The following are intersections that have been selected
by the Fire Department to implement the final phase of this funding for emergency
preemption. We expect between eight and ten intersections to be funded. Phases one &
two of the program are nearing completion and an update is enclosed.
I . University at Locust(FM 2164) - 3 directions
2. McKinney at Woodrow - 2 directions
3. University at Ruddell - 2 directions.
4. Eagle at Avenue C - 3 directions
5. McCormick at IH 35E - 1 direction
6. McKinney at Mayhill - 1 direction
7. Sherman at Windsor - 2 directions
8. Loop 288 at Morse - 2 directions
9. Hickory at Fry - 1 direction
10. Oak at Fry 1 - direction
Note: Based on the available funding the intersections listed as 8-10 are questionable.
The bids will determine the final number of intersections that can be installed.
Pecan Creek at Robertson and Morley Street Culverts - This is a briefing item only to let
you know the final cost for the consultants on the Pecan Creek at Robertson and the
Kerley Street culverrts. The Pecan Creek at Robertson had two possible scenarios; first
one would be to design and build &.e project as described in the bond program for which
the consulting fee is $27,000. TF.e proposal would build the culvert between the east
side of Bell and the east side of thrj Railroad Bridge where the connection to Pecan Creek
is made; second option would be to design and build the culvert all the way across Bell
Avenue in conjunction with the major utility line crossings. The Utility Department is
considering financing the second part of the culvert ($200,000) to help aid the
construction of their lines and also to make sure that Bell Avenue is only torn up once in
this area due to the major construction proposed. The total cost for the consulting
contract in this instance would be $29,600. Regardless of how we build the project, we
should go ahead and engineer the project all together to gain the economies of scale and
get consistencies in the design features. The $29,600 is 6% of the total project estimate
of $451,000.
Pecan Creek snd Fletcher Branch Drainage Studies - This is also to present the detailed
scope of work that the consultant will do for the Pecan Creek Master Plan for Downtown.
The study will look at problem areas in Denton Center, along Carroll Boulevard at three
culverts, the greatly undersized Parkway Box Culvert, the channel and proposed features
through Civic Center Park, culverts and channel capacities through the Bali-Mckinney-
Sycamore Areas, and select areas down to Woodrow Lane along Pecan Creek. Finally,
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Memo to Oversight Committee y `
June 20, 1996 a~&noa No.C l'
Page 3 agenda item =
• Oate the study would also look at the upper reaches of AEC-4 around the DATCU back to the
east edge of UNT.
The second component of the project would be to fund the cost of designing the second
Retention Pond for South Lakes Park which the Blue Ribbon Committee placed under
Engineering responsibility. Teague, Nall, and Perkins did the original drainage studies bn
the entire park including hydrologic and hydraulic analysis of the watershed above
Hobson. The first retention lake was partially built by the TXDOT contractor on the
Teasley Lane Project in exchange for allowing them to operate their construction yard
from there and some minor spoil wasting. This pond needs to be measured and the
overall impact included with the design and features of the second pond that is proposed
for 1998-99 as project #08 108 1. Total available funding is $260,000 with the Engineers
estimate for design at $28,000. We recommend that these two design tasks be
combined into one to gain economies of scale and reduced administration time for
contract management. The primary reason is keeping the project with the firm that did
the original drainage studies so that we do not have to pay for those again. It is also our
firm understanding that the engineer that did those studies will be the one to final this
design which eliminates the learning curve on the basic drainage design concepts,
Archer Trail (West) at Emerson Drainage - This small system is part of the interest money
• program that was authorized last year. This project had a very difficult time with
easements but now we have the system in with only minor inlet work to complete and
the residents want some stabilization of the channel behind their houses to prevent
erosion. This grouted rock riprap eliminates or reduces standing water by preventing the
holes from being formed from the swirling waters. The additional riprap can be funded
with $2,018 available from the Windsor Drive Drainage Structure project. The total spent
on riprap will be abput $3,000.
Mngo/Texes Culvert Pr%ct - This request would allow us to use up most of the funds
from the James Street Culvert on another culvert project. The James Street Culvert came
in approximately $18,000 below the budget that had been estimated. We propose to use
those funds for the box culvert that we had recently built to address the drainage that
regularly shuts Mingo down. When this happens, up to 24" of water comes across
Mingo toward the culvert under the railroad.
The funds necessary to cover these improvements are $14,934 for the box culvert, $910
for,the cement stabilized backfill for the relaying of the Texas Street Culvert to gain
positive fall, $1,943 for 36" ADS pipe and couplers, and $524 for asphalt patch on
Texas Street. Again this pays for the new culvert under Mingo, relaying the Texas Street
Culvert by City Forces with new cement stabilized backfill and then the street repairs to
the Texas Street Culvert. This section of culvert had to be redone because the portion
by the railroad switch was 2' plus above grade which blocked the natural gradient of
water away from Mingo. Total required for the project will be $18,311 of which we
request that $18,046 be paid from the James Street Culvert account.
2
S
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1!~
emo to Oversight Committee x,
',tune 20, 1996 Agenda No,
Page 4 Agenda Item `
?ate.
•
College and 1Rne Drainage Project - At your last meeting, you approved reimbursing
Howard Martin for his drainage operating fund monies to do this project. We originally
estimated this project to be $13,000. In Howard's attached memo, you can see that the
cost was approximately $20,000. We ran into some unexpected curb and gutter work
due to field conditions. We need an additional $7,000 from the miscellaneous account
to fund this project.
Mingo Road Repaving and Shoulder Work - This request is to allow the use of some of
the miscellaneous street money($400,000) to rebuild Mingo Road. The project proposes
to grade and compact both shoulders, pave the shoulder on the south side, and then
repave the street. The turn lane at Nottingham would be built at this time. The limits of
that work would be between Schmitz and Old North Road. The enclosed estimate shows
the process the work would take and estimates of cost for each component. The
proposed project total of $188,525 would come from the following sources.
1. The partial repaving of Mingo has available $ 36,447
2. Turn lane at (Nottingham and Mingo has available 4,668
3. Proposed Misc. Street Money from Bond Issue 195-96) 140,000
4. Street Maintenance Account 95-96 7.410
• TOTAL $188,525
Flow Hosp/tafArea (Panhandle-Egan) Repaving and Concrete Work - This project would
allow us to rebuild some streets using the rest of the $400,000 miscellaneous street
money for major curb and gutter replacement, some sidewalk replacement, and adding
some disabled ramps to the following streets; Mounts, Congress (two sections), Bryan,
Lovell, Egan, and Alice. These streets were part of a major utility replacement program
in this neighborhood. The following are estimates of the costs to repave and for concrete
replacements on the above streets.
SW&CG PAVING
ounts Oak Congress $ 5,494 $ 32,798 $ 2,450 $40,742
ongress Carroll Ponder 35,852 33,822 6,950 76,624
ryan Oak Crescent 35,869 1,100 36,969
ovell Scripture Egan - 11,231 1,100 12,331
ongress Bryan Malone 350 12,611 12,961
lice Congress Panhandle 6,775 10,690 2,800 20,265
San Carroll Malone 51,655 5 22 6.300 1 3 77
TOTAL $100,026 $202,943 $20,700 $323,669
• Available funds from Utilities for patching ditch lines -60,000
Required funds from Street Maintenance Fund -13,669
Proposed Miscellaneous street money from bond Issue $260,000
9
S
i
Memo to Oversight Committee }
June 20, 1996 Agenda No.
Page 5 Agenda item
• Date ~ A,c
When we presented the street list to you, we also talked about having an ongoing
program in street maintenance. Normally, this area would have been done with our street
maintenance money and with the money mentioned in Jerry's memo from utilities to
actually patch over the ditches. We use our street rebuilding money in our operations
budget to rebuild or repave or repair the remaining streets. We have scheduled all of this
area for repaving and/or repair for the coming fiscal year (96-97). Fortunately or
unfortunately depending on your point of view, the utility project has gone very•well: The
reason that it has gone well is because we have not had any rain and the contractor is
moving very rapidly rather than at a slower pace which we expected. Therefore, what
we have is most of the utility work being finished before October 1st when our street
repaving and repair operations money would become available. What we are really
suggesting hare is the use of the remaining $260,000 of street rebuilding bond money
to be used for this repaving project. We would then be able to replenish the $260,000
worth of street rebuilding money October 1 Effectively, what this is saying is that we
would use up all of the $400,000 but be able to replace $260,000 of that on October
1 st, so you would have that money available for any economic development project. We
do not have any economic development prospects on the horizon at this time. Even if
we began to visit with a potential economic development client, we do not see the need
for the money until October 1 So 1 think we could do this, be able to use the money,
and still be able to come out October i" with $260,000 in the bank to be used for
. economic development if we had a prospect. By doing this maneuvering, we would save
money, not tear up the street twice, and not have a utility trench patch repair problem.
Lillian Millar Sidewalk Connection - This project will provide the connecting sidewalk
between the Hunters Ridge Subdivision to construct the walk across the two
developments that have stagnated recently between Hunters Ridge and Red Lobster.
This connection of idewalks is necessary due to the heavy residential development that
has occurred around the Southridge and Lillian Miler area. The walk would provide access
to shopping and restaurants at the intersection of Lillian Miller and IH 35E. The following
are the estimate costs for this work.
A. Construction costs for entire linkup $26,581
B. Constructions costs w/o north tract $21,859
Engineering Charges (City) if option B is chosen 2.622
Available budget $24,481
Wal-Mart Right-of-Way - This is the last project I want to talk about that would use 1986
bond interest money. You may recall that we briefed you last time about buying right-of-
way to help Wal-Mart develop. This would help encourage TXDOT to move on the Loop
288 right-of-way. We condemned property for Brinker Drive using the City Manager's
. operating funds. We used these funds because we did not have bond proceeds in our
possession from Loop 288 and we needed to move quickly. Since that time, we also had
an opportunity to look at old 1986 bond accounts again. In that issue, we had interest
money that was allocated to street projects that wasn't spent. The interest money was
to enlarge the scope of several projects and we have a total of $19,889 available. The
r
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1 J 11~+~ C. +y y
99
expenses for the right-of-way were almost $17,000 and we have also incurred some
court and appraisal costs. This $19,000 will go a long way in helping us cover these
costs. We have right-of-waY money from Loop 288 now that could be used. However,
Jerry and his staff continue to be concerned about land prices in that area. Therefore,
we think we should use this interest money and save as much of the right-of-way money
' as we can.
AU00770
1
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•
7
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hgenda
Texas Department of 1. t
P.O. BOX x067.O' NI AS, TEXAS 75221 X067 •
2624 W. Prairie, Denton, Texas 7620
June 6, 1996
MIIkS
Control: 2250-01-019
Highway: Loop 288
Limits: From Hi 35E to Colorado Blvd.
County: Denton
Jerry Clark, P.E.
Director of Engineering and Transportation
City of Denton
221 N. Elm
Denton, Texas 76201
Dear Mr. Clark:
The above mention project was let for contract in March of this year. The department received
only one bid and it was considerably higher than the engineers estimate. Therefore, we
recommended to Austin not to award the contract.
We are currently reassessing the total cost of the contract, and have estimated the engineering and
contingencies, and tke contract administration for the colored-texturized concrete to be'
$20,284.84. The neO cost is $5,794.82 above our original estimate to the City. Since this will
result in an additional cost to the City, we need to know if the City still wants the colored-
texturized concrete in the median and is willing to fund it. Please respond at your earliest
convenance so that we may continue to process of rescheduling the project.
If you have any questions please contact David L. Hensley, PR at (817)387-1414,
Sincerely,
40
C_laudJ P. Elsom III, P.E.
Area Engineer
• I
I
M Eaud OA0014 * & PbW
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dale.
C"OFDEAMI MUNICIPALUTILMES 901-A TEXAS STREET DENTON. TEXAS 76X I
Tor Rick Svehla, Deputy City Manager
From., Howard Martin, Director
Date: May 23, 1995
Subj: College/Vine Street Drainage System Construction
The Drainage Department has completed the construction project for
the College/Vine Street area. The project included the
construction of an underground drainage system and associated
inlets to mitigate the damage occurring to a housing structure at
619 College Street.
The total construction cost of the College/Vine project was
:30,562. The break down of the project cost is as follows:
Labor $5,115
Equipment $31423
Materials $8,450
Contracted Work $5,278
Paving $50580
Saw Cut $ 830
Permit i 26
Total Cost $28,702
The Drainage Department is requesting $20,164 from the drainage
capital account for these project expenditures. The amount
requested represents the total project cost minus the labor and
equipment. A summary of the expenditures is attached for your
review.
If you have any question or concerns about this information, please
call me at 8452.
. eel R.B. Nelson, executive Director
Ved este0 to Quelny Seryk*
)
W~zt:t~ !ml
Agenda ltem'
Date
,
EXPENSE DETAIL FOR THE COLLEGE/VINE STREET DRAINAGE PROJECT
The Drainage Department is requesting the transfer of funds to the
following budget accounts.
Account ; 100-026-0610-8502
Saw Cutting (830 ft.4;1.00) $ 830.00
Paving (1460 sq.ft.1$3.00)
Project permit $50560.00
26.00
Subtotal #6,436.00
RediNix Concrete (Concrete) :3,049.00
Contech Const. Prod. Inc. (Pipe,Gaskets) $4,621.20
Bass i Hays Foundry Inc. (Manhole Ring/Lid) $ 104.45
Floyd Glenn Smith (See Attached P.O.) :5,200.00
AiM Plumbing (Water Service Repair) $ 78.05
Subtotal $13,052.70
• Account Total ;19,488.70
Account # 620-081-0461-8307
A-1 Rental (Vibrn Plate) 219.60
Account Total $ 219.60
Account 6 100-626-0810-8303
Trinity Turf Nursery (Sod) $ 76.25
Warehouse Items 379.29
Account Total ; 455.54
TOTAL CAPITAL PROJECT COSTS REQUESTED 420,163.84
• FILE tCe\wp51\XISC\00LVI"
H
F
Agenda No 94 - O28
Agenda Ite~a GtIS'~ S
- 9 - 9 (v
DATE: July 9, 1996 Date
CITY COUNCIL REPORT
WORK SESSION
TO: Mayor and Members of the City Council
! FROM: Ted Benavides - City Manager
SUBJECT: Employee Health Insurance Program - 1997 Plan Year - Bid
RECOMMENDATION.
It is the staff's recommendation that the City Council authorize
the City Manager to award Bid #1869 Request for Group Medical
Insurance to Harris Methodist Health Plan. This recommendation
includes authorizing the City manager to enter into a contract
with this company to provide h9alth insurance coverage for
employees and dependents for the plan year effective January 1,
1997. The contract would also authorize renewing with Harris for
two additional plan years (January 1, 1998 and January 1, 1999),
assuming rates and service remain favorable to the City.
suMMARY
In conjunction with Fopter Higgins (the City's authorized health
and actuarial consultant), the City staff developed a
comprehensive bid specification for the Employee Group Health
Insurance program in November, 1995 through January, 1996. The
bid specifications were reviewed by the City's Legal and
Purchasing staff to ensure compliance with state competitive
bidding and purchasing laws. The City Council reviewed the bid
specifications in November, 1995, and provided feedback. The
Employee Insurance Committee (EIC) reviewed and offered
suggestions concerning the specifications.
In February, 1996, the bids were sent to sixteen (16) prospective
carriers and advertised according to state law. Foster Higgins,
the Human Resources staff, and the Purchasing staff conducted a
pre-bid conference with interested carrier representatives in late
February, 1996. Bids were due and opened by the Purchasing staff
on April 18, 1996, in compliance with the state's bidding and
purchasing provisions.
Of the 16 bid packets sent to interested and potentially qualified
carriers, six (6) carriers responded. Of these six bids, two
bids complied with all the bid specifications. Foster Higgins
conducted a comprehensive and thorough analysis of each qualified
bid submitted. The bids were evaluated on the criteria outlined
in the bid specifications as follows:
1. Provider access
2. Provider contracting and reimbursement methods
!"3!J
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Agenda No. c'-
Agenda hem.L -
Date
July 9, 1996
City Manager Report to City Council - Health Insurance Bid
Page 2
3. Financial stability
4. Utilization management techniques
5. Medical management techniques
6. Data collection/reporting
7. Membar services
8. Plan design
9. Pharmacy management
10. References
11. Length and/or volume of experience in the North Texas market
Please see Attachment i. Foster Higgins Report on Analysis of
Responses to Bid Number 1869, Request for Group Medical Insurance
Bid. This provides a complete, detailed report by Foster Higgins
of their review and analysis of the bids and the methodology
used in developing their recommendations.
The overall criteria outlined in the state's competitive bidding
law says that the City must award the bid to the lowest, most
responsive responsible bidder.
Based on the evaluation and judgement by Foster Higgins, review by
the legal and purchasing staffs, and with concurrence of the
Employee Insurance Committee (EIC), the Executive Committee's and
staff's recommendation is that the City award the bid to Harris
Methodist Health Plan. This recommendation is based on the
following reasons:
1. Meets and/or exceeds all bid specifications
2. Lowest overall 3-year anticipated total plan cost
3. Excellent track record in providing health care and customer
service for employees and dependents.
4. Strong working relationship with City's administrative staff.
5. Overall favorable financial, quality, and Service evaluation
by Foster Higgins
6. Demonstrated history and responsiveness to the health care
needs of the Denton community, the City, and
employees/dependents
PROGRAM. DEPARTMENTS O_..B GROUPS AFFECTED:
The Health Insurance Program covers all eligible regular full-time
and part-time employees and their covered dependents in all City
departments.
FISCAL IMPACT:
Awarding this bid to Harris Methodist Health Plan will result in
a reduction in overall 1996/97 budgeted and projected health care
costs. The current year (1995/96) budget for employee health
insurance is $192.98 per month. This bid will lower that cost
ti
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AGenda NO
Agenda Item SL
Date, C
July 9, 1996
City Manager Report to city Council - Health Insurance Bid
Page 2
effective January 1, 1997 to $165.03 per month. For the 1996/97
budget year, this is estimated to result in approximately $37,824
in savings (January 1 -September 30, 1997) over the 1995/96
budgeted costs. Additionally, employees who cover dependents will
experience an overall 4.1% reduction in health insurance costs
beginning January 1, 1997. With rate guarantees for the second
and third year renewals, the City is protected against any
potential escalating inflationary or "run-away" costs as we
experienced in the late 1980's and early 1990's. Finally, this
recommendation will ensure that employees and dependents will
continue to receive the excellent customer commitment that has
been provided by Harris to Denton over the past three years.
Respectfully submitted,
Ted Benavides
City Manager
Prepared by:
Thomas W. Klinck
Director of Human Resources
;Arovedd by
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cutive D' actor - MSED
erptle#2.tk
Prepare: 0120188
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AQeaaa No.!2 - Z
Agenda Nom
Date -
ATTACHMENT
Analysis ofoResponaesito Ae°rt
Request for Groefp Medical Bid Number
Insurance Bid
1
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ends No. 9&'028
~c
A,gtnda Ite'
D
Date June 27, 1996
CITY COUNCIL AGENDA ITEM
TO: Mayor and Members of the City Council
FROM: Ted Benavides, City Manager
SUBJECT: RECEIVE A REPORT AND GIVE DIRECTION REGARDING THE
CITIES DEMONSTRATION CURBSIDE NEWSPAPER COLLECTIONS
PROGRAM.
RECOMMENDATION:
The staff seeks direction from the Council regarding continuance of the demonstration
curbside newspaper collection program. The staff has recommended discontinuance of the
program prior to the end of fiscal 1996 and the Public Utility Board has concurred.
SUMMARY/BACKGROUND:
During January, 1996, the Council approved a staff/PUB proposed pilot program for
curbside collection of newspaper on selected residential routes to demonstrate the feasibility
of such collections citywide. Those collections began on February 21 and have been
conducted on the first and third Wednesdays of each month since using a standard rear-
load residential collection vehicle.
Initially, collections were performed by an existing three man residential crew. However,
in an effort to test the feasibility of using reduced collections manpower, from March 12
to the present, collections were performed by just one existing Residential Division and one
Recycling Division driver. After collection, the newspaper is off-loaded to a 30 yard open
top container at the landfill's specially constructed recycling drop-off area where the loadp /
are tarped and transported to market in the metroplex. During the demonstration
collection period through June, 52 tons of newspaper were collected from an average of 389
homes or 29.6 lbs. per home per collection. There were approximately 2500 homes in the
demonstration area. Participation in the program has only averaged about 15 percent.
When collections began in February, newspaper prices were $15 per ton including the
vendor's transportation of newspaper loads to market. However, that price now ranges
from $0-5 and some vendors are no longer accepting newspaper at all. As a result,
program income through June has only been 5662.
Based on the low customer response and the low sales price of newspaper product, the staff
recommended to the PUB that a full citywide curbside pickup program for fiscal 1997
probably would not be feasible therefore, such a program has not been included in the 1997
budget.
rsa. u.~
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J~Benee Ne. , n
Agenda liem
Date
Although the demonstration was to last thru September, stair already has sufficient
information on which to base a feasibility estimate of citywide curbside collections if it is
desired to implement such a citywide program.
FISC IMPACT:
Projected through July, total program costs are estimated to be 527,846 compared with
estimated revenue of just $719.
Respectfully Submitted,
Ted Benavides, City Manager
Prepared by:
p OD
Charles Watkins, Superintendent
of Solid Waste Department
Approved by:
R E. Nelson, Exe uteve Director Utilities
l:4ery_drfiCgalyyt' al W A6%9~
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.
Agenda No.(~s
Agenda Item f- '
CURBSIDE NEWSPAPER RECYCLING PILOT PROW4M
Startup
In January, 1996, the City Council approved the staff and PUB's proposed newspaper
curbside demonstration program to test the feasibility of conducting the curbside newspaper
collections citywide with existing city forces and equipment. It was also intended to
determine to what extent residents in the demonstration neighborhoods would participate
in the program. Based on discussions with staff and the Public Utilities Board, one north
collection route and one south collection route comprised of 2,500 homes were selected in
which to conduct the demonstration.
Prior to beginning the demonstration, the Department constructed a newspaper transfer
facility at the landfill at the cost of 521,527 using primarily landfill employees and surplus
materials on hand. Simultaneously, the Department designed and contracted for the
delivery of door hangers announcing the program in the affected neighborhoods. This
distribution was conducted in January on two separate occasions two weeks apart. Public
meetings were also conducted on February 2 and 7 at the North Lakes Recreation Center
and the South Library to publicize the program and answer questions.
Collection Results
Actual newspaper collections began on February 21 and were thereafter conducted on the
first and third Wednesdays of the month. During the demonstration collection period
through June, almost 52 tons of newspaper were collected from an average of 389 homes
or 29.6 ]bs. per home per collection. Participation in the program has averaged about 15
percent. Less than one in six homes set out newspaper for collection. The principal goal of
the program was to increase total recycled newspaper tonnage while also providing residents
with a convenient recycling alternative to the drop-off sites. Overall, the demonstration
curbside newspaper collections constituted only 6.3 per cent of total citywide newspaper
collections. The demonstration program does not appear to have increased overall
newspaper tonnages. In fact, during four of the five months that the program has been in
place, newspaper tonnages have been less than in the previous months of the fiscal year.
Most cities consider that a participation rate in excess of 30% is necessary for a curbside
program to be successful.
ManpowerNehicle Requirements
Because newspaper collections were to be conducted by existing city forces with existing
equipment, the program was designed to have no impact on the department's regular
citywide trash collections and a minimum impact on citywide brush collections. When
collections began, the department used an existing residential rear load collection truck and
its three member crew, a driver and two maintenance workers. The remaining residential
brush collection crews shared responsibility for collecting that crew's share of brush.
However, due to Residential Division shortages of manpower through turnover and
vacations, the department reduced the newspaper collection crew to one driver and one
t
f'
Agenda No.
Agenda item r _
Date 1 fly,
maintenance worker including a Recycling Division employee beginning March 20. As a
result of these manpower adjustments, the department has experienced about 40 hours of
overtime on each newsNSprr collection Wednesday as necessary to collect the newspaper and
brush in a timely manner. In addition, the use of a Recycling Division employee for
i collections has disrupted other recycling collection schedules and required the use of
overtime also. These shifts in labor distribution have imposed a significant physical burden
on the department's collection crew members. Should these burdens be sustained, their
deteriorating effect on personnel it probable.
Financial and Market Impacts
Actual labor and vehicle collection costs for the demonstration period from February 21
through the June 19 collection are estimated at $5,170 and $6,319 if extended through July.
Combined with the $21,527 expended to construct the landfill transfer facility, total
program costs through July are estimated at $27,846.
Last Summer, newspaper prices hit an historic high of $195 per ton. However, by October,
that price bad declined to $45 per ton and by January to $15. However, that price now
ranges from $0.5 and some vendors are no longer accepting newspaper at all. Fortunately
for the City, as the prices declined, the department was able to persuade its vendor to
provide transportation of newspaper loads to market thus relieving the department of that
transportation cost. Nevertheless, program income through June has only been $662 and
it is becoming increasingly difficult for the department to locate a consistently dependable
vendor to accept its newspaper.
Feasibility Results
The program has demonstrated that city forces are physically capable of efficiently
collecting newspaper curbside on a limited bi-monthly schedule with a limited participation
rate. Although most collections have been performed by a two person crew during the
demonstration period, that fact belies the labor and level of difficulty which these crew
members have encountered.
The collection of newspaper is more labor intensive than the collection of residential trash.
This is due to the greater weight per yard of newspaper and the fact that newspaper is
bundled. Trash is contained in tied plastic bags which are amenable to grasping at the tied
end and flinging into the collection vehicle. On the other hand, newspaper is frequently
bundled in a paper bag which requires that it be picked up with both hands and carried
to the collection vehicle. Consequently, such collections require an experienced crew with
sufficient stamina to consistently perform collections in all weather conditions. It would not
be practicable to compromise current service delivery levels by diverting existing manpower
to carry out such a labor intensive effort citywide.
Although the use of a rear load residential collection truck has proved adequate to service
limited newspaper collections, it is not the best vehicle for the job. There are many recycling
vehicle designs for the City to choose from to efficiently accommodate city wide newspaper
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Agenda No..l L..
Agenda Item
Date-
collections. Because of their multi-compartment design, several of these vehicle would
accommodate the City's future efforts to collect additional commodities such as aluminum
and steel cans.
A three member collection crew is estimated to cost $88,586 annually. Depending on the
type of collection vehicle purchased, costs could range in the area of about $20,000 annually.
Other costs including fuel, maintenance and uniforms are estimated to be an additional
$16,913 for a total of $125,499.
Conclusion
1. It is feasible in the near term to perform curbside newspaper collections using
rear IoaJ vehicles, however, specialized vehicles would be more effective.
2. Fairly low participation was experienced but is anticipated that the number
of participants could be increased with long term and more advertising.
3. Given the market conditions and no net increase in tonnage, it is not
economically advantageous to commit to a full scale curbside program. Based
on this information the staff and Public Utility Board has not recommended
such a curbside program for 1997.
4. Newspaper recycling has been a major element in the city's overall Solid
Waste Master Plan's recycling program. Unless the recycled newspaper
market improves, the plan to build an Intermediate Processing Center (IPC)
will have to be moved to future years. The 1997-2002 Capital Improvements
Plan has moved it to 1998 versus 1997 in the 1996-2001 Capital
Improvements Plan.
5. It is recommended that the pilot curbside newspaper collection program be
discontinued since the objectives of information gathering, etc., have been
met.
I:Y ory-d RAC RR [STU BI W A6969 P
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Agenda No q;o -02$
. mm wts 5
D* '1 '9 -9ce
CITY of DENTCN~ TEXAS MUNICIPAL BULL DING @ 215 E MCKINNEY • DENTONI TEXAS 76201
(817) 566.8200 • DFW METRO 434.2529
MEMORANDUM
TO: Mayor and Members of the City Council
FROM: Ted Benavides, City Manager
DATE: July 3, 1996
SUBJECT: PURCHASE OF PUBLIC OFFICIAL'S LIABILITY INSURANCE
Recommendation: That the City Manager be authorized to extend for another year,
the insurance contract with National Union Fire Insurance Company for Public
Official's Liability Insurance with an upgraded discrimination, wrongful termination, harassment, benefitspetc) endo sement and an
endorsement to allow the City to choose its own attorney.
Discussion: The premium for our Public Officials Liability coverage has remained
constant at $32,240 over the past four years. The quote for 1996-97 has increased {
by $8,742. Choice of counsel will add another $4,553.
The underwriter for National Union has based the increase in premium on: (1)
enhanced employment practices coverage, (2) claims submitted by the City over the
past two years and (3) increase in the City budget over four years. Choice of counsel
is a desired option since in employment related cases, the City's selected attorney
probably would have been involved prior to litigation so using the same attorney
would eliminate the cost of a second "learning curve". A letter from our insurance
broker, EmPlovers General, and the Employment Practices and Choice of Counsel
endorsements are attached.
Cony
Cover- aae Deduct, ible Premium
National Union
(w/choice of counsel) $1,000,000 $25,000
$45,535
National Union
(w/o choice of counsel) $1,000,000 $25,000
$40,982
APEX $1,000,000
$25,000 $80-70,000
"Dedicated to Quality Seri-ice"
f
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Agenda No. W LJ g`
Agenda Ilem c
Data
Summary. National Union Fire has the highest A.M. Best rating in the insurance
industry (A+ 15) and will be providing coverage to the City of Denton for the fifth
consecutive year. There are distinct advantages to maintaining continuity of liability
coverage to eliminate any dispute of coverage among companies from year-to-year.
The premium will be paid from the Risk Retention Fund.
-;e
Ted 8enavides
City Manager
Prepared by:
r
Max Blackburn
Risk Manager
Approved by:
aSE '
Kath Du o
Executive Director of Finance
Mere
AFF01227
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* * Agenda No.
EMPLOYERS GENERAL Agenda,l ern
I. fl.* * * * * insurance Group, Inc. Date
Sherman Service Office Jlm Loinert
123 N. Crockett, Suite 800 Senior Marketing Executive
Sherman, Texas 75090
(903) 893-9477
FAX- (903) 8928693
Nome: (903) 892-8800
June 26, 1996
City of Denton
Atrn: Max Blackburn
City Manager
215 East McKinney Street
Denton, Texas 76201
Re: Public Officials Liability
Policy # 445-42.72
Dear Max:
As you are aware, your Public Officials coverage with National Union Fire Insurance
Company will expire at 12:01 a.m. on July 17, 1996.
In an effort to obtain the most competitive price for the City of Denton, we have gone to
three different markets for this coverage. As you are aware, the Public Officials liability is a
very specialized market and there are only a handful of companies that write this coverage.
In addition to National Union, we have contacted National Casualty and Apex insurance.
National Casualty still will not quote Public Officials coverage unless the city maintains police
liability through an approved carrier. As you know, we are working with Apex at the current
time and have furnished them with some additional information that they had requested. We
hope to have their quote prior to July 17, but their indication to us in their memo was that
their price would be in the $60,000 to $70,000 range. I do not think that any of the
information that they requested from us would cause them to come in with a price lower than
the National Union quote.
page 1
Member of the Old Republic Insurance Group
AGenda No.~ o
page 2 Agenda item
03le._ _
The National Union Fire quotes 1
are as follows:
QUOTE I - $1,000,000 Per
wrongful act subject to $I 000
with $25,000 deductible, Including the employment aggregate
endorsement and choice of counsel endorsementantotal practices
annual
QUOTE 11- $1,000,000 per wrongful act subject to $1,000,000 ar
e
with $25,000 deductible, Including the em to t ach t egat
annual endorsement an and without choice of counsel dnement` tt t~
$40,982.
As You know, the premium for this coverage has been at $32,240 since it was written b
National Union Fire in 1992. The premium has stayed at this level for four years. The
rrtcrease in premium they feel is by
the current budget of $153.015,529,itheerreforre tthhe citysu udg was $128,401,000 comp to
$25,000,000 from when this coverage was originally budget has inc
for the premium increase. written. The reared approximately
y indicate this is the reason
We discussed the Passibility of not including the employment practices
endorsement,
however, they indicate if we do not include this endorsement there would be v erage for
wrongful termination and that is a very 'm cov
attaching a spy t the employment a rycti po to t part of ththat is
is public Officials coverage, I am
and I think provides some additional coverage for the city orsementofficials of currently on your policy
Please review and give me a call of any questions that You might have con renewal offer. rning this
We will contact you as quickly as we receive the other quote from Apex.
We certainly appreciate working with you and the City of Denton and appreciate the
oPpcnuWh' to provide you with this quote.
Sincerely,
Jim Leinart
Senior Marketing Executive
Jucs
t
a
05/31/06 10:30 0214 M 0420 FINANCIAL SER Im004/018
Agenda No
Agend Itemt!L~~ i~
Endorsemen t N Dale
This endorsement, effective: 12:41 adt forms a part of
policy number:
issued to:
by Notional Union Fire I niwance Co. of Pirtsbwgk PA.
` j'~Qxll1llat Pre _tiepc Fpdera ONI
1. COVERAGE AGREEMENT.
In consideration of the premium cbatged, it is hereby understood and agreed that,
subject to the terms, conditions and conditions and EXCLUSIONS of the Policy,
DEFINI I'ION C., Wrongful Act, is amended to include:
any actual or alleged error or misstatement or misleading statement or act or
omission or breach of duty, including malfeasance, misfeasance and non.
feasance, by any IfNS><JItED in their capacity as such, arising out of actual
or alleged UNFAIR EMPLOYMENT PRACTICES committed solely in
the course of the activities for the public Entity named in Item 1. of the
Declarations.
11. EXCLUSIONS.
As respects coverage for UNFAIR EMPLOYMENT PRACTICES, the following
Policy EXCLUSIONS arc hereby amended:
1. EXCLUSION D. Is amended to delete "mental anguish" to read as follow:
D. to any claim for bodily in}ury, sickness, disease, death or for
claims arising therefrom;
2. EXCLUSION IF. is amecded by deleting "disparagement or defamation,
including but not limited to libel, slander or violation of an individual's
right of privacy" to read as follow:
F. for injury arising from:
1. false arrest, assault or battery, detention, imprisorunent,
malicious prosecution or abuse of process;
2. wrongful entry or eviction of other invasion of the right of
private occupancy;
3. EXCLUSION O. is deleted in its entirety and replaced With the following:
r
01/3I/06 10:31 0214 $55 0420 FINANCIAL SER
Apenda No, 9tr t,10_
Agende Item -
Date 1 ' l3
Eaftrismant N (continue)
0. to any claim arising out of breach of contract including but
but not limited to contracts involving vendors, contractors
and sub-contractors; however, this EXCLUSION shall not
apply to any claim arising out of as )EMPLOYMENT
CONTRACT;
4. The following additional EXCLUSION is added to the Policy:
Q. to any claim arising out of civil or criminal fines or penalties, non-
Monetary relief, punitive or exemplary damages including the
multiplied portion of multiple damages or matters which may be
deemed uninsurable according to the applicable law;
B. As respects coverage for UNFAIR EMPLOYMENT PRACTICES, the following
EXCLUSIONS arc hereby added to the Policy:
R. to any portion of a loss that constitutes BENEFITS due to any lmurcd or
the equivalent value of such BENEFITS;
S. to any claim arising out of any obligation under a worker's compensation,
disability beneflts or unemployment compensation law, or any similar law;
T. to any claim arising out of any liability imposed upon the INSURED under
the Employee Retirement Income Security Act of 1974, Public Law 93A06,
or any amendments thereto;
U. to any claim arising out1~f any liability imposed by the Workers'
Adjustment and Retraining Notification Act, Public Law 100.379 (1988), or
any amendment thereto, tie Fair Labor Standards Act, the National Labor
Relations Act, the Occupational Safety and Health Act, or any similar
Federal, state or local law;
V. to any claim arising out of any liability or cost incurred by any INSURED
to modify any building, property or facility in order to make said building,
property or facility more accessible or accommodating to any disabled
person as mandated by the Americans With Disabilities Act, or any other
similar state or local statute;
W. to any claim or claims made against an INSURED alleging, arising out of,
based upon or attributable to any pending or prior litigation involving
UNFAIR EMPLOYMENT PRACTICES as of , or alleging or
derived from the same or essentially the same facts as alleged in such
pending or prior litigation;
d
45/JV9a 18, 3L 4211 $35 0420 FINANCIAL, SER 1a 008/T0~
Atenda No
Agendii Item
Dale-
Endorsement 0 (eontinuel
X. to any claim or claims made against an INSURED fo alleged
Wrongful Act for UNFAIR EMPLOYMENT PRA 'ES committed
prior to if any INSURED(S)3 as of Stich date, .4 or could have
reasonably foreseen that such Wrongful Act ccuid Izao io a claim;
111, DEFINITIONS.
The following additional DEFINITIONS are added to the Policy:
F. UNFAIR EMPLOYMENT PRACTICES means:
1. DISCRIMINATION;
2. WRONGFUL TERWNATION;
3. HARASSMENT;
4. Employment-related misrepresentation, wrongful failure to employ
promote, wrongful deprivation of career opportunity, wrongful
discipline or negligent employee evaluation.
0. DISCRIMINATION mean unlawful discriminatory treatment against a
past, present, future or temporary employee, applicant for employment or
volunteer, based upon race, color, religion, age, gender, sexual orientation,
disability (as defined by the America $ With Disabilities Act or any similar
state or local statute), pregnancy, national origin or any other legally
protected class.
H. WRONGFUL TERMINATION means termination of an employment
relationship with an employee or the failure to enter into an employment
relationship with as applicant for employment in manner which is against
the law, including breach of an implied agreement to continut employment.
I. HARASSMENT means:
I. SEXUAL HARASSMENT: unlawful sexual advances and/or
requests for sexual favors and/or other verbal or physical conduct of
a sexual nature against a past, present, future or temporary
employee, applicant for employment or volunteer that are:
a) made a condition ofemploymeat, and/or
b) are used as a basis for employment decisions, and/or
c) a work environment that interferes with performance; and/or
1
nf$%, one ,J.410 40+14 ots e43a riVA311c14i Mrt rsere..ao
Agenda
~ltem
Agenda
Date l ^ 1h
Endorsement # (continue]
2, WORKPLACE HARASSMIKNT: usdawful creation of a
harassing workplace environment based upon race, color, religion,
age, gender, sexual orientation, disability (as do(ined in the
Americans With Disabilities Act or any similar state or local statue,
pregnancy or national origin or any other legally protected class.
J. BENEFITS means perquisites, fringe benefits, retirement benefits, payment
in conne.tion with an employee benefit plan and any other payment, other
than salky or wages, to or for the benefit of any employee.
K. EMPLOYMENT CONTRACT means any oral or written agreement
between the INSURED as an employer and an individual as an employee.
EMPLOYMENT CONTRACT shall not Include any contracts with
independent contractors (as defined by the Federal tax laws), sub-
contractors or vendors.
All other fermt, conditions and arclirs/oas of tb& policy shall remain unchanged.
Authorized Represeotative
i
k
UVA.'VJ 7U`IV,1P 14.40 AM IVnnV VL.%61%1%U ILL-L14 VVJ V101 I. VV7
05/51/66 16:52 4211 666 Otto FINANCIAL SER ;%~POV~O1
Agenda do.
Agenda~llem-(4.
DateL____~s{s
Choice of Counsel Endorsement
This endorsement, effective, forms a past of
policy number
issued to
by
in consideration of the additional premium of S _ it is hereby
understood and agreed that Section II. ADDITIONAL BENEFITS, is deleted in
its ectirety and replaced with the following;
Payment of the following benefits are part of and subject to the limits of
liability. These benefits end after the applicable limit of coverage has beta used
up in paying judgments, settlements, claim e:pmes, issuance of awards, and
interest accruing on judgments and awards prior to entry of judgment or issuance
of an award.
Defending and Settling Law wits (Defense part of Umtts)
You shall have the right, corder the terms and conditions of this policy, to
select counsel and defend a covered claim agaimrtt you or any other person for
whom you are legally responsible, even if the claim is groundless or fraudulent.
Claim apeoses are part of and subject to our
limits of coverage. These limits are described in Section V. Our duties under
this policy ends after the applicable lights of coverage has been used up by
payment of judgmelns, settlements, claim ogwnses% issuance of awards, and
interest accruing on judgments and awards prior to entry of judgment or issuance
of an award.
We have the right to investigate any claim. If the anticipated settlement
(inclusive of claims experves) or setdemeot demand is equal to or less than SO%
of the deductible as stated in item 4 of the Declarations, you have the right to
settle that claim without oqr prior notice.
WWh it You Must Do im the Event of a Settlement or Anticipated
Settlement that Exceeds 50% of Your Deductible
if the ,mticipated settlement (inclusive of claims expeosa) or settlement
demand is greal-er than 50% of the deductible, you must notify as in writing of
any claim on no :ice of the claim as soon as possible. In addition, you must:
Immediately record the specifics of the claim and the date
you received it;
titl~l tloro~?
fy
9
)
00/J1/9a IO:JT CT14 sis 0410 FINANCIAL 5ER
Apeada Nof c= ~ 00 _ Ste'
Agenda Item
Date
• Send us copies of all demands, suit papers, or other legal
documents you Waive, as soon as possible to the following
address:
American lnternaticrW Specialty Lines Insurance Company
Attention: Michael Mitrovic, Esq.
P.O. Sox 2603
Jersey City, N! 07311
• Assist as in any settlements negotiations;
• Enferes any legal rights you or we may have against anyone
who may be liable to you;
• Attend depositions, hearings and trials;
• Secure and give evidmm, and obtain the attendance or
witnesses;
• Not admit liability, assume any financial obligation to pay out
any money without our prior consent. If you do, it will be at
your owD expense; and
• Take such actions which, in your judgment, are deemed
necessary and practicable to prevent or limit the
dissemination of material that is erroneous, fuse or untrue.
Our duty to pay judgments, settlements, or claim expenses ends if
you refuse to consent to a sowement that we recommend and the
claimant will accepL You must Oft defend the claim at your own
expense and negotiate any settlement.
Our liability for any settlement or judgment will not be more than the amount
for which we could have settled had you consented.
Your rights under this policy shall not be prejudiced by your refusal, or of
anyone for whose acts you are legally responsible, to reveal the identity of a confidential
external source in connection with a claim under this policy.
Post-Judgment interest
61141(10194) 2
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FINANCIAL SER
Agooda No.
Agenda Items r.-
Date lu
We will pay all interest on that amount of any judgment within our limit of
coverage:
which accrues after entry of judgment; and
• before we have paid, offered to pay, or deposited in court
that part of the judgment that's within our applicable limit of
coverage
Legal Hoods
We will pay premiums for appeal bonds, or bonds to release property used to
secure a legal obligation, if required in a claim we defend. However, cove will only pay
for bonds valued up to our applicable limit of coverage. We have no obligation to appeal
or to obtain these bonds.
CHOICE OF COUNSEL PROVISIONS
It is further understood and agreed as follows;
A. With regard to any clalso or claims for which you seek coverage, we and you
shall consult and jointly agree upon the identity of the law Finn and counsel
which shall provide legal services and defense to you in such matter,
in the event that we and you are unable to name upon the identity of said +
defence law fern and counsel, the initial choice shall be made by yon;
provided, however, that the fees, costs, charges and billings of said defense
firm and counsel shall be paid and satisfied on an ongoing basis by you from
the applicable deductible. It is Ruher agreed that at such time as the total of
fees, costs, charges and billings of your choice of counsel exceed the amount
1. Continuing with the cue of your choice of counsel PROVIDED
HOWEVER, that should we continue the use of your choice of counsel,
we shall make payment of few, costs, charges and billings of your choice
of counsel only in accordance with the rates of the'our panel firms in that
given venue. Billings and rates must be agreed upon prior to your choice
of counsel retention. IT IS FURTHER UNDERSTOOD AND AGREED
that any short fall between those rates and the rates charged by your
choice of counsel shall be paid and borne by you, such amounts are to be
in addition to the applicable deductible amount. All short falls will be
61141(10/94) 3
r•
OUX 'VJ 70tPIVAI 14.47 11AI IUnAL VLn6AAL IOL•414 Vvd U10! V14
OS/~1/sa 1e: 3J x'214 $5S 0420 FINANCIAL. SER C - lao ~01
A,,^,elida No.
Agenda Item
Dater lti
billed directly by you r choice of counsel to you. We will not be
responsible for any billing disputes concerning these short falls; or
2. Replacing the defense law firm and counsel with our own choice.
B. Once choice of counsel has been selected, Ne shall forward a letter to choice
of counsel confirming the assignment, (See Attachment "Am).
C. Your choice of counsel must comply with our Litigation Management
Ouidetines. Consequently, Your choice ofcoumel will adhere to the
followin;:
1. Reportia g Praetien
(a) In the letter confirraing the assignment to choice of counsel, the
claims tvbWeian will set forth a proposed plan of action
covering the initial phase of the case, sped tying a date by
which choice of counsel must telephone the technician
to discuss this plan.
(b) Choice of counsel and the claims technician will identify and
address the critical issues that mdse be resolved during the
initial phase of the case, or such other time frame as is
appropriate. It is the mutual responsibility of choice of counsel
and the claims technician to evaluate and prioritize the issues
presented by the case, and to identify appropriate and
meaningful activities to address these issues, including the
dates by which the activities will be completed. Chnlce of
counsel and the claims technician should also agree on
a date for the next follolwup planning conversation. The
resulting Agreed-To Litigation Pisa will be meraorialized
within 5 working days of the piawdng conversation in
writing by choice of counsel. (Sae Attachment "B").
61141 (10194) 4
t
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05/~1/0e Is; 34 IM214 055 0420 FINANCIAL SBR
aal:/ole
No. ..p~
Agenda Item '
Date _ )
(e) Within S working days of completion of an Agreed-To Litigation
Plan, choice of counsel will prepare a Litigation Budget
covering the items set forth in that plan. (See Attachment "C").
Choice of counsel must keep in of mind that we view the
Litigation Budget as a financial translation of the AgmedTo
Litigation Plan. It should conform to the agreed work plan and
estimate the cost of completing each activity within the
specified time period.
(d) When any activity, fact, matter of discovery or other case
development warrants a deviation from the current
Agreed-To Plan or when all agmd-to activities have been
completed, or when the case enter or is about to enter a new
or diffetmt phase, choice of counsel will contact the claims
technician by telephone and discuss these matters and their
impact on the can. When appropriate, a new Agreed-To Plan
and Budget will be prepared by choice of counsel within 5
working days of the plaaning conversation. Choice of counsel
shall not undertake any activity until it has been agreed
upon with the claims technician.
(e) In order to insure that all cases art proceeding promptly and
efficiently, at least every 6 months choice of counsel will
review the erarent Agreed-To Plan and Budget, and
communicate with the claims technician accordingly, even
if no Changes are cootempleted. When appropriate, a revised
Agreed-To Plan will be memorialized, together with a Budget
by choice of counsel witWo S working days of the planning
Conversation
61141 (1014) .1
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YY1.. YV /V,i1V., 11VV
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V YVY .
oeiSl~ee le: 34 !3Pl1 etas OIYO y
FINANCIAL $ER AfJEfI d Np 1
apen~a`Item
Dale
~l
1
l
Within 2 working days following a deposition, cho;ce of counsel
will contact the claims technician to discuss the impact of the
deposition On the current Agreed-To Plan, together with any
newly contemplated file UtMty. A summary of the deposition,
with specific pnphuis on resolution of critical issues, will be
provided by choice of counsel, evert if there are no changes
to the Agreed-To Plan, within 10 working days of
deposition. (See Attachment "I)"), Any line-by line deposition
summary must be specifically approved by the claims
technician in adva=.
(8) Choice ofcouawl shall notify the claims technician of a
settlement conference or trial date as seen as the date is set,
even though these dates are frequently postponed. If a
date is postponed, counsel shall notify the claims technician
of the new date as soon as it is established.
(h) If a matter is talcen to trial, choice of couruel will report as least
twice each day to the claims technician The results of
hearings, arbitrations or other court appearances will be
itrune Hmly communicated to the claims technician, with
a written report provided within 48 hours.
M1e1°o of aowo.1 is to an6raIt the follA,%A"O;"fnrmaKAn at a
matter of course:
1) Your answer and any amended complaints, and any third-
patty pleadings;
2) Copies of pleadings and motions which are unusual or
unique, not merely "boilerplate"; and.
3) Releases, Dismissals and Final ludgmerrts.
61141 (IM4) 6
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I'f! 4=py
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05/51/06 16:04 4214 $53 0420 FINANCIAL S£R ®014~01$~
lyjwda No.
Agenda item c
Date _
2. Case Developments
(a) Direction of the overall claim investigative is the responsibility of the claims
technician. Choice of counsel itself shall not conduct investigations. Choice of
counsel shall direct all requests for investigations to the claims technician
handling the case,
(b) Choice of counsel shall evaluate this use of motions and depositions in connection
with the Agreed•To Plan, directing their effort toward having a positive and
value-added impact on the case. Motions or depositions wMeb do not advance the
cue or provide a realistic value should be avoided.
(c) Choice of counsel must have the approval of the cW ms tachnician to retain expert
witnesses. Medical examinations will be arranged by the claims technician,
unless otherwise authorized.
(d) We will not pay for intra-office conferences. We will not pay for file memoranda
giving directions to - Taff, or any other forma of intza-office conference, whether
oral or written.
(e) Unless otherwise approved in advance, only one attorney is authorized to attend
depositions, meetings, court appearances, etc.
(f) Choice of counsel must only assip persmnnel appropriate to a particular case, i.e.
we will not pay for pumer time when an associate can properly handle a
particular matter.
61141 (1,0194),
7
1
1
0~/Ji/08 1e:33 V214 ASS 0420 FINANCIAL, SEA
~ ®0!S/01e
~;tiutla It6m Y' _ ~
I1arc._~._~:~~~^
(Q) Any extensive research project must be discussed with the claims technician in
advance We will not pay for research +v!:~^h is routwe in nature. We will oily
pay for extending o! revising prior research to bring it current, not as if the
previous research had been conducted de nova We will not pay for any research
project in excess of 3 hours (total) which has not received prior approval from the
claims technician, The results of research in matters of first impression in the
locality, or which am'otherwise usuque or of interest, should be supplied to the
claims technician. The results of any extensive research projects should be
supplied to the claim technician.
(h) We will not pay for repetitive file reviews caused by the use of multiple attorneys
assigned to a case.
(i) We r=gnize the value of paralegal services when used appropriately to perform
work in a file. However, we will not pay for either attorney or paMegal services
which are clerical in nature, such as for file organization, where there is no
significant value added to the case.
3. 1Prepariag Suits for Disposithoo
(a) Our philosophy is to identify, on a timely basis, those
elalaos for which there is liability and to make settlement offers
promptly.
(b) When a settlement conference is scheduled, choice of counsel shal I
confer with the claims technician to detem%ine whether the
attendance of our mpmsentadve is desirable. If it is
decided that it is not necessary for oar representative to attend, then
arrangements for telephone contact with the claims technician
duriq the coaf=nce must be esablished. Choice of counsel
rpust inform the claims techrdelan of the data and time
telephone availability is required. Telephone availability should
be during our regular business hours whenever possible.
(All claims technicians for Professional Liability are located in the
Eastern time zone).
I
61141 (10/94) 9
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vv.l• VV Jv,i¢Vly il'VJ Hn a I VNnu.I.ILIb'I U ILU'~lI VV Va VI • I. VI•
OS/UM t6: 3S V214 666 Otto FINANCIAL $ER (a Old, b~'
Agenda No~
Agenda Item
Dale
(c) Requests for settlement authority must be made on a timely basis.
We will not tolerate re;uesu for authority on the "eve of trial" or the
day before a cotdoment conference.
(d) Requests for settlement drafts must be in writing. All settlement
drafts take some time to process in order to permit the necessary
control and security procedures to be applied. Choice of counsel
should avoid malting any promises concerning the delivery of
settlement drafts without discussing same with the claims
technician in advance. In those rare cases where a settlement
draft is required on a priority basis, choice of counsel shall
immediately Mvise the claims technician of the precise date
when the settlement draft is required.
(e) The decision to take a jury verdict can ONLY be made by us, taking
choice of counsel's recAmmendation into consideration.
4. Billing Practices
(a) Bill time in one-tenth (1110) hour increments.
(b) Bill semi-annually based upon date of assignment.
(c) Pay small expense items and submit a billing to us when
such expenses exceed five-hundred dollars ($500.00) in the
aggregate. Individual bills over five-hundred dollars (6500.00)
shall be submitted to as for direct payment.
(d) Submit bills in our standard format, itemizing each activity
(See Attachment "E").
(e) Attach to each bill a completed "Activity Statement - Breakdown
of Hours and Rate". (See Attachment "F'). Preparing the Activity
Statement is an overhead item which will not be reimbursed
by -is.
61141(1044) 9
JUN,-03'96(MON) I4:52 NATIONAL ~AERAL
TEL:214 6,_. $I8) P. 018
asiJiieB 16:~s aril 866 0420
FINANCIAL SER rt
Agenda No•C? old i~
Agenda Item
Date
~b
(f} Choice of counsel shall not apply flat charges as part of its rate
strucnue unless such flat charges have specifleally been agreed to
by us. Nor shall choice of counsel apply a minimum charge
for any activity.
(C) We will only reimburse choke of counsel for reasonable travel
expenses which have been incurred with our prior permission. Only
coach class airfare, moderately priced hotel accommodations and
moderately priced meals well be reimbursed. We will mot accept any
lavish or unnecessary expenses for reimbursement. Travel
expenses shall be itemized on choice ofcounsel's billing, with
copies of all reeelpts attached.
(h) When it is appropriate for choice of counsel to bill for wivel true, the
time for such travel shall be separately stated and in no event shall
exceed 8 hours per rotund trip. Where travel time is involved, billing
for services in excess of 8 hours per day must be specifically
approved in advance.
(i) We will not reimburse the choice of counsel for:
1) Word processing, clerical or secretarial charges, whether
expressed as a dollar disbursement or time charge.
2) Storage ofopen or Closed files, rent, electricity, local tele-
phone, postage, receipt or transmission of telecopier
documents, or any other items tradidonally associated with
overhead.
3) Long distance telephone, litiSMon support, or any other
service in excess of the amount actually expended by the firm
for such service. We will not pay for any incremental amount,
whether it is intended to recover the cost of equipment and
hardware or not.
4) Photocopy ages in excess of S.10 (ten cents) per triage.
61141 110/941 10
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INY'~11 V\, -VIVr Ir V\1
05/S1/aa 1e: 50 0211 $55 0110 FINANCLkL SER
®Olal/OIA
Agenda No.,
Agenda Item -c.
Date _ 1q
S) Auto tnileage rates in excess of the rate approved by the
Internal Revenue Service for income tax purposes.
6) Secretarial overtime. Where case requirements demand over-
time, we will consider reimbursement on a case-by-case basis.
We will not reimburse overtime incurred for the convenience of
choice of counsel or by counsel's failure to meet deadlines
known in advance.
7) Equipment books, periodicals, teseareb materials.
Westlaw/Lexis or like items.
(8) Express charges, messenger services or the like, without our
prior consent. We expect these,expenses to be incurred in
emergency situations only. Where ease necessity requires the
use of these services, we will consider reimbmsemem on a
case-by-case basis.
611<1{l0~9a) Il
R
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j
APW& Nam
flan SS # f
I>w 7 -9 -rt to CIrYOFDENT IN TEXAS 6p1 EASTMICKORYSmREET • SUITEA • DENTON, TEXAS 78205 • 817.566-8340
MEMORANDUM
TO: Ted Benavides
City Manager
FROM: Robin Ramsay
Municipal Judge
DATE: July 3, 1995
SUBJECT: Resolution Appointing Assistant Municipal Judges
At the City Council meeting on Tuesday, July 9, 1996,1 am requesting Council approval for
three new Assistant Municipal Judges.
i
After carefully considering feedback from a selection committee and Council direction, I am
recommending the placement of David Garcia, Kim Cawley and Earlean Murphy,
A copy of the resolution and employment contracts is attached. Please contact me at x8139 if
you have any questions or concerns.
to Ramsay
WP
RR:dr
I
i
"Dedicated to Quality Service"
F
y r
J-1WPC'OCS\RES\ASSTJUD6.RES
Agenda No. `
Agenda4ltem~>>
Date c~- ~r-'-
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON, TEXAS APPOINTING DAVID GARCIA,
KIM CAWLEY, AND EARLEAN MURPHY AS ASSISTANT CITY JUDGES FOR THE
CITY OF DENTON MUNICIPAL COURT OF RECORD; AUTHORIZING THE MAYOR TO
EXECUTE CONTRACTS FOR THEIR TERMS OF OFFICE; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, Section 6.03 of the Charter of the City of Denton
authorizes the City council to
appoint handle the judicial functions of theMunicipal court of Record in
the absence of the city Judge; and
WHEREAS, Ordinance Number 94-014, adopted pursuant to TEX.
GOVT CODE $30.982 (Vernon Supp. 1996) provides that the governing
body of the City shall appoint assistant judges as it deems
necessary; NOW, THEREFORE,
THE Comm OF THE CITY OF DENTON HEREBY RESOLVES:
itES"~ ION I That David Garcia is hereby a
Assistant City Judge of the Municipal Court of Recoadiofethe City
of Denton, Texas for a one-year term of office to commence July 15,
1996 and terminate at midnight July 14, 1997.
'S_ECTIO-N 3i That Kim Cawley is hereby a
Assistant City Judge of the Municial Court of Record ofe the City
of Denton, Texas for a one-year term of office to commence July 15,
1996 and terminate at midnight July 14, 1997.
hereby ppointed as an
Assistant City udge of Earlean Y Curt of Reord of the City
of Denton, Texas for a one-year term of office to commence July 15,
1996 and terminate at midnight July 14, 1997.
fiZ_CjI9SL.jY, That the Mayor is authorized to execute contracts,
copies of which are attached hereto and incorporated by reference
herein, providing for the terms of their employment.
SECTION V That this resolution shall become effective on the
15th day of July, 1996.
PASSED AND APPROVED this the
day of , 1996.
JACK MILLER, MAYOR
i
Agenda No.~^ ' ~
Agenda lttm
Date r -
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
1
F
F
t1
AQa~da No.~ ~ C~
Agenda Item
Date
CONTRACT FOR sERVICEB
THIS CONTRACT, made and entered into this 9th day of July,
1996s by and between the City of Denton, Texas, a Municipal Cor-
poration of the State of Texas, hereinafter referred to as IrCity",
and Kim Cawley, hereinafter referred to as "Assistant Judge".
UITNESSETH:
1. City does hereby contract for the services of Kim Cawley for a
period of one (1) year, beginning on the 15th day of July,
1996, and continuing through midnight, July 14, 1997, at the
following compensation;
(a) COORT SESSIONS JA;L ARUIaNMENTg - Time to be billed at
$26.00 per hour, with time over thirty (30) minutes billed
as one (1) hour. Travel time to and from the Court shall
not be included as billable time.
(b) OFFICE HOORS/PRS AND POST COORT ¢888ION PRBPA_osTIO~- Time
to be billed at $26.00 per hour, with time over thirty (30)
minutes billed as one (1) hour. Travel time to and from
the Court shall not be included as billable time.
(c) IN-NOOSE TRAiNiNai~m+rn*~* MEET xea
8T1Le* ; - Time to be
billed at $26.00 per hour with time over thirty (30)
minutes billed as one (1) hour. Travel time to and from
the meeting place shall not be included as billable time.
(d) ti~NDATORY JOnrnr, BDOC1►Ttnv TRAINING - City shall reim-
burse or pre-pay the travel, meals and registration costs,
in accordance with the City's Travel Reimbursement Policy,
incurred by the Assistant Judge in attending approved
continued legal education seminar(s).
The Assistant Judge agrees to render services at the aforemen-
tioned compensation terms. The Assistant Judge is responsible
for maintaining accurate and complete time records, setting
forth the date, description of services rendered, the time
incurred in rendering such services, and the amount billed to
City. Such time records shall be submitted to the Municipal
Judge for review on a bi-weekly basis, and on the same date as
required for City personnel payroll. Payment will be processed
and paid in accordance with the City's payroll schedule. City
will allow the Assistant Judge to direct payment to the finan-
cial institution of her own choosing. No additional benefits
beyond the stated compensation will be provided.
2. The Assistant Judge will receive assignments and work schedules
within the discretion of the Municipal Judge or his designee.
The Assistant Judge shall be available to perform and shall
perform if directed, the duties of the position.
.
F
I Agenda No
! Agenda Item
Date 4 _ e 1 -1
3. The Assistant Judge shall not take on representation of a
client adverse to the City of Denton. The Assistant Judge
shall not represent a client in a case where an employee of the
City of Denton, in his/her capacity as an employee of the City
of Denton is a witness or may be summoned to appear as a
i witness.
4. During the duration of this Contract, the Assistant Judge shall
comply with all provisions of the Code of Judicial Conduct, the
Denton City Charter, Chapter 30 of the Texas Government Code,
Subchapter Y, and all other applicable laws pertaining to the
operation of the Denton Municipal Court of Record, and her
duties as a Magistrate. In the event of a conflict between the
terms of this Contract and said Code, Charter, Statutes and
laws, the terms of said Code, Charter, Statutes and laws shall
govern.
5. The City may remove the Assistant Judge from office during her
term pursuant to and in accordance with the requirements of
S30.987(c) of the Texas Government code, or its successor, as
same may hereafter be amended.
6. The Assistant Judge may terminate this Contract by providing
written notice of resignation not less than 30 days prior to
date of termination.
This Contract represents the entire and integrated Contract
between city and the Assistant Judge, and supersedes all prior
negotiations and representations and/or contracts either written or
oral. This Contract may be amended only by written instrument
signed by both the City and the Assistant Judge. I
The Assistant Judge further states that she has carefully read
the foregoing Contract, and knows the contents thereof, and signs
the same as her own free act.
IN WITNESS NBEREOF, city has caused this Contract to be signed
in its name by Jack Miller, Mayor, and its corporate seal to be
hereunto affixed and attested by its City Secretary, and the Assis-
tant Judge has hereunto set her hand and seal the day and year
first above written.
ASSISTANT JUDGE CITY OF DENTON, TEXAS
~I
KIM CAWLEY By:
JACK MILLER, MAYOR
ASSISTANT JUDGE CONTRACT - Page 2
e
2
'r.
xvenda No. 7
Agenda hero
oafe.._.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY: /A"~
J.\WPDOCS\K\CAYLEY.K
I
ASSISTANT JUDGE CONTRACT - Page 3
F
,F
~:lends D. t Agent/ Item
Date ) lC n
CONTRACT FOR SERVICES
THIS CONTRACT, made and entered into this 9th day of July,
1996, by and between the City of Denton, Texas, a Municipal Cor-
poration of the State of Texas, hereinafter referred to as "City",
and David Garcia, hereinafter referred to as "Assistant Judge".
WITNESSETH:
1. City does hereby contract for the services of David Garcia for
a period of one (1) year, beginning on the 15th day of July,
1996,and continuing through midnight, July 14, 1997, at the
following compensation:
(a) COURT SESSIONS AND JAIL ARRAIaNMBNTS - Time to be billed at
$26.00 per hour, with time over thirty (30) minutes billed
as one (1) hour. Travel time to and from the Court shall
not be included as billable time.
(b) OFFICB HOURS(PRB AND POST COURT SBSSION PREPARATION - Time
to be billed at $26.00 per hour, with time over thirty (30)
minutes billed as one (1) hour. Travel time to and from
the court shall not be included as billable time.
(c) IN-HOUSE TRAINING/JUDICIAL STAFF MEETINGS - Time to be
billed at $26.00 per hour with time over thirty (30)
minutes billed as one (1) hour. Travel time to and from
the meeting place shall not be included as billable time.
(d) BANDATORX JUDICIAL EDUCATION AININ° - City shall reim-
burse or pre-pay the travel, meals and registration costs,
in accordance with the City's Travel Reimbursement Policy,
incurred by the Assistant Judge ir. attending approved
continued legal education seminar(s).
The Assistant Judge agrees to render services at the aforemen-
tioned compensation terms. The Assistant Judge is responsible
for maintaining accurate and complete time records, setting
forth the date, description of services rendered, the time
incurred in rendering such services, and the amount bille9 to
City. Such time records shall be submitted to the Municipal
Judge for review on a bi-weekly basis, and on the same date as
required for City personnel payroll. Payment will be processed
and paid in accordance with the City0s payroll schedule. City
will allow the Assistant Judge to direct payment to the finan-
cial institution of his own choosing. No additional benefits
beyond the stated compensation will be provided.
2. The Assistant Judge will receive assignments and work schedules
within the discretion of the Municipal Judge or his designee.
The Assistant Judge shall be available to perform and shall
perform if directed, the duties of the position.
I
Agenda Item
Uatc1~^ '
3. The Assistant Judge shall
not take on representation of a
client adverse to the City of DW.on. The Assistant Judge
shall not represent a client in a case where an employee of the
City of Denton, in his/her capacity as an employee of the City
of Denton is a witness or may be summoned to appear as a
witness.
4. During the duration of this Contract, the Assistant Judge shall
comply with all provisions of the Code of Judicial Conduct, the
Denton City Charter, Chapter 30 of the Texas Government Code,
Subchapter Y. and all other applicable laws pertaining to the
operation of the Denton Municipal Court of Record, and his
duties as a Magistrate. In the event of a conflict between the
terms of this Contract and said Code, Charter, Statutes and
laws, the terms of said Code, Charter, Statutes and laws shall
govern.
5. The City may remove the Assistant Judge from office during his
term pursuant to and in accordance with the requirements of
530.987(c) of the Texas Government Code, or its successor, as
same may hereafter be amended.
6. The Assistant Judge may terminate this Contract by providing
written notice of resignation not less than 30 days prior to
date of termination.
This Contract represents the entire and integrated Contract
between City and the Assistant Judge, and supersedes all prior
negotiations and representations and/or contracts either written or
oral. This Contract may be amended only by written instrument
signed by both the City and the Assistant Judge.
The Assistant Judge further states that he has carefully read
the foregoing Contract, and knows the contents thereof, and signs
the same as his own free act.
iN RITNEBS MH2RZOB, City has caused this Contract to be signed
in its name by Jack Miller, Mayor, and its corporate seal to be
hereunto affixed and attested by its vity Secretary, and the Assis-
tant Judge has hereunto set his hand and seal the day and year
first above written.
ASSISTANT JUDGE CITY OF DENTON, TEXAS
DAVID GARCIA BY:
JACK MILLER, MAYOR
ASSISTANT JUDGE CONTRACT - Page 2
Agenda No.
Agenda tam
ogle
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
HERBERT L. 'ROUTY, CITY ATTORNEY
BY: c
Ji\WF=S\K\GMCIA.K
ASSISTANT JUDGE CONTRACT - Page 3
i
)
s
2
penda Item
Oase
CONTRACT FOR SERVICES
THIS CONTRACT, made and entered into this 9th day of July,
1996, by and between the City of Denton, Texas, a Municipal Cor-
poration of the state of Texas, hereinafter referred to as "City",
and Earlean Murphy, hereinafter referred to as "Assistant Judge".
NITNESSETH:
1. City does hereby contract for the services of Earlean Murphy
for a period of one (1) year, beginning on the 15th day of
July, 1996, and continuing through midnight, July 14, 1997, at
the following compensation:
(a) SOURT SEeSioa:g :►YD JAIL ARRAiagxeYTa - Time to be billed at
$26.00 per hour, with time over thirty (30) minutes billed
as one (1) hour. Travel time to and from the court shall
not be included as billable time.
(b) OFFICE HOURa/pRE 11ND POST OURT 8888ION PREP a~TION - Time
to be billed at $26.00 per hour, with time over thirty (30)
minutes billed as one (1) hour. Travel time to and from
the Court shall not be included as billable time.
(c) 0/JUDICIAL BTfipr Y4YTiNQ~ - Time to be
billed at $26.00 per hour with time over thirty (30)
minutes billed as one (1) hour. Travel time to and from
the meeting place shall not be included as billable time.
(d) XANDATORY JUDICI ' EDUCATION TRAINING - City shall reim-
burse or pre-pay the travel, meals and registration costs,
in accordance with the City's Travel Reimbursement Policy,
incurred by the Assistant Judge in attending approved
continued legal education seminar(s).
The Assistant Judge agrees to render services at the aforemen-
tioned compensation terms. The Assistant Judge is responsible
for maintaining accurate and complete time records, setting
forth the date, description of services rendered, the time
incurred in rendering such services, and the amount billed to
city. Such tima records shall be submitted to the Municipal
Judge for review on a bi-weekly basis, and on the same date as
required for City personnel payroll. Payment will be processed
and paid in accordance with the City's payroll schedule. City
will allow the Assistant Judge to direct payment to the finan-
cial institution of her own choosing. No additional benefits
beyond the stated compensation will be provided.
2. The Assistant Judge will receive assignments and work schedules
within the discretion of the Municipal Judge or his designee.
The Assistant Judge shall be available to perform and shall
perform if directed, the duties of the position.
c
L
71
'',Owda No
Agenda Item -
0ate ~ ' ~ C=am?
3. The Assistant Judge shall not take on representation of a
client adverse to the City of Denton. The Assistant Judge
shall not represent a client in a case where an employee of the
City of Denton, in his/her capacity as an employee of the City
of Denton is a witness or may be summoned to appear as a
witness.
4. During the duration of this Contract, the Assistant Judge shall
comply with all provisions of the Code of Judicial Conduct, the
Denton City Charter, Chapter 30 of the Texas Government Code,
Subchapter Y, and all other applicable laws pertaining to the
operation of the Denton Municipal Court of Record, and her
duties as a Magistrate. In the event of a conflict between the
terms of this Contract and said Code, Charter, Statutes and
laws, the terms of said Code, Charter, Statutes and laws shall
govern.
5. The City may remove the Assistant Judge from office during her
term pursuant to and in accordance with the requirements of
$30.987(0) of the Texas Government code, or its successor, as
same may hereafter be amended.
6. The Assistant Judge may terminate this contract by providing
written notice of resignation not less than 30 days prior to
date of termination.
This Contract represents the entire and integrated contract
between City and the Assistant Judge, and supersedes all prior
negotiations and representations and/or contracts either written or
oral. This Contract may be amended only by written instrument
signed by both the City and the Assistant Judge.
The Assistant Judge further states that she has carefully read
the foregoing contract, and knows the contents thereof, and signs
the same as her own free act.
IN WITNE88 WERREOp, City has caused this Contract to be signed
in its name by Jack Miller, Mayor, and its corporate seal to be
hereunto affixed and attested by its City Secretary, and the Assis-
tant Judge has hereunto set her hand and seal the day and year
first above written.
ASSISTANT JUDGE CITY OF DENTON, TEXAS
By.
EARLEAN MURIHY JACK MILLER, MAYOR
ASSISTANT JUDGE CONTRACT - Page 2
rat a. E
qenda MIT
Qate ~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY: l~'KG/
is ~~voocs~KVSx<rxr.K
ASSISTANT JUDGE CONTRACT - Page 3
L
F
APAU No Cl to - O
AP* thm -5S A.
n2N 1 -9 -9b
BOARD/COMMISSION NOMINATIONS
1996-97
AIRPORT ADVISORY BOARD
Die CURRENT MEMBER NOMINATION TERM COUNCIL
*7 John Dulemba Terry Garland 1994-96 Miller
3 Don Smith Ann Houston 1994-96 Biles
4 James Jamieson James Jamieson 1994-96 Cott
*5 Jim Risser Jim Risser 1994-96 Beasley
ANIMAL SHELTER ADVISORY BOARD
DIST CURRENT MEMBER NOMINATION TER COUNCIL
2 Joella Orr Joella Crr 1994-96 Krueger
BOARD OF ADJUSTMENT
DIST CURRENT MEMBER NOMINATION TERM COUNCIL
5 Rebecca King Rebecca King 1994-96 Beasley
3 Bob Hagemann 1994-96 BileB
4 Joe Bendzick Joe Bendzick 1994-96 Cott
2 Larry Collister Larry Collister 1994-96 Krueger
BUILDING CODE BOARD
DIST CURRENT MEMBER NOMINATION TERM COUNCIL
3 James Fykes (ALT) Bob Hagemann 1994-96 Biles
4 Byron Woods (ALT) Byron Woods 1994-96 Cott
*5 Steve Kniatt Steve Kniatt 1994-96 Beasley
*6 (Mary McCain) Mary McCain 1994-96 Brock
iArchitectl
*7 Greg Muirhead Ken Dobias 1994-96 Miller
* Individual nominated and approved
No * Individual nominated but not approved
No nomination
f
-
AgenAllem'e-_
AgenCABLE TV
ADVISORY BOARD Date DIST CURRENT MEMBER NOMINATION TERM COUNCIL
*5 Mark Burroughs Mark Burroughs 1993-96 Beasley
2 Richard Rodean 1993-96 Krueger
COMMUNITY DEVELOPMENT ADVISORY COMMITTEE
DIST CURRENT MEMBER NOMINATION TERM COUNCI
5 Dorothy Martinez Jean Hinojosa 1994-96 Beasley
*6 Peggy Fox Peggy Fox 1994-96 Brock
*7 Jean Ellen Rogers Jean Ellen Rogers 1994-96 Miller
3 Larry Bailey 1994-96 Riles
*5 Ann Hatch Ann Hatch 1994-96 Beasley
DATA PROCESSING ADVISORY BOARD
DIST CURRENT MEMBER NOMINATION TERM OC UNCIL
2 Rosa Lawton 1994-96 Krueger
3 Bruce Mitchell 1994-96 Biles
4 Renae Seely Renae Seely 1994-96 Cott
==OWN ADVISORY BOARD
DIST CURRENT MEMBER NOMINATION TERRA COUNCIL
3 Geneva Berg 1994-96 Biles
4 Joanna Deonath Joanna Deonath 1994-96 Cott
*5 Joy Williams Joy Williams 1994-96 Beasley
6 Michael Flanagan Michael Monticino 1994-96 Brock
*7 Rahna Raney Bette Sherman 1994-96 Miller
* Individual nominated and approved
No * Individual nominated but not approved
No nomination
r
a
K
r
E
_ Wrie
r
Agenda Mo~
Apartda Item `f
ELECTRICAL COD$ B NtD Data - [
DIST CURRENT MEMBER NOMINATION
TERM OUN I
3 (John Hardinger)
(Master Electrician) 1994-96 Biles
4 Don Fox
1994-96 Cott
1 Robert Hicks (ALT) Robert Hicks
1994-96 Young
HISTORIC LAND AU CoMMISSION
DIST CURRENT MEMBER NOMINATION TERM COUNCIL
3 (Kenneth Morgan)
(Real Property Owner) 1994-96 Biles
7 Judy Cole Peggy Norton
2994-96 Miller
2 Jim Kirkpatrick
HUMAN 88RV* 88 e%wwr TBg 1994-96 Krueger
DIST 4MRENT MEMBER NOMINATION um 0 rn1 I
6 Pat Muro Fran Miller
1994-96 Brock
*7 Diana Briggs Carol Brantley 1994-96 Miller
2 Kevin Miller
1994-96 Krueger
4 Sandy Kristoferson
1994-96 Cott
KEEP DENTaN ateA TIFU
PISS ZMUNT M .MUD: NOMI_ NARY T_m
1 Mabel Devereaux
Larry Mullen 1999-96 Young
*6 Gayla Robles Gayla Robles
1994-96 Brock
*7 Vera Laney Vera Laney 1994-96 Miller
3 Fjola Jeffries Fjola Jeffries 1994-96 Biles
4 Bill Watson
1994-96 Cott
2 Robert Gentile
(resignation) 1995-97 Krueger
* Individual nominated and approved
No * Individual nominated but not approved
No nomination
t
Agenda N.
o
LIBRARY Bol~s►n Agenda Item
~DIST CURRENT MEMBER Dale
NOMINATION
TERM`' CO CIL
*7 Kjell Johansen Kjell Johansen 1994-96 Miller
3 Kathy Pole Kathy Pole 1994-96 Biles
4 Ema Ruth Russell Ema Ruth Russell 1994-96 Cott
PARKS AND RS WjjQN E0A=
DIST CURRENT MEMBER NOMINATION TERM OUNCI
*7 Tom Judd Annie Burroughs
1994-96 Miller
2 Loyce Wilson
Tom Reece 1994-96 Krueger
PLANNINO AND ZONZN COI~ISSTnv
DIST CURROT MEMBER NOMINATION TERM r
MMUNQU
3 Mike Cochran Carol Ann Ganzer 1994-96 Biles
*5 Ellen Schertz Ellen Schertz 1994-96 Beasley
6 Katie Flemming Mike Cochran
1994-96 Brock
PLOMIN_ A D b2c"NICJj C01) C- BO
DIST CORE NT MEMBER NOMINATIONS TERM COUNCIL
*5 Millard Heath Millard Heath
(Mechanical contractor) 1994-96 Beasley
*6 Lee Capps
(Layman) Lee Capps 1994-96 Brock
1 (Jeff Peploe)
(Master Plumber) 1994-96 Young
PUBLIC UTILITINS B0
DIST WRZkMMEMBER NOMINATION TES Cmm
*5 Bill Giese Bill Giese
1992-96 Beasley
* Individual nominated and approved
No * Individual nominated but not approved
No nomination
F
Agenda ND,~%
Agenda Item`
SIGN BOARD of pgAI,S Date
DIST SENT MEMBER NOMINATION J'M CO CIL
1 Spencer Washington Slick Smith 1994-96 Young
3 Ann Houston (ALT) 1994-96 Biles
*7 Mike Wiebe Mike Wiebe 1994-96 Miller
TRAFFIC SAFETY C01KI SION
DIST !'URRENT MEMBER NOMINATION TERM O CI
*6 Greg Sawko Greg Sawko 1994-96 Brock
1 Kathy Devine _ 1994-96 Young
2 Derrick Hartsfield Derrick Hartsfield 1994-96 Krueger
3 Mark Coomes 1994-96 Biles
4 Larry. Luce
Larry Luce 1994-96 Cott
CIVIL SIRVICA COPUBION
SEAT CURRENT MEMBER NOMINATION TERM
*2 Dennis Stephens Dennis Stephens 1993-96 City
Mgr.
DR ON SOUSING AUTHORITY
SE.aT CURRENT MEMBER NOMINATION TERM
*1 Tony Soto Tony Soto 1994-96 Mayor
*2 Bob Crouch Bob Crouch 1994-96 Mayor
114PA BOARD OF DIRgCrnR
-M CURRENT MB NOMINATION
TERM
0 Tom Harpool Fred Hill 1994-96 Council
George Hopkins
* Individual nominated and approved
No * Individual nominated but not approved
No nomination
's
.
F
Agenda No, q V 4 ~g
E:\WPD0OS\0RU\2-E2.MID
Agenda (Sam Z k 3
Date '1-q -TP
ORDINANCE NO.
AN ORDINANCE AMENDING SECTION 2-62 "CONFLICT OF INTEREST" OF THE
CODE OF ORDINANCES OF THE CITY OF DENTON TO PROVIDE THAT NO MEMBER
OF A BOARD OR COMMISSION OF THE CIT`: THAT EXERCISES ANY SOVEREIGN
FUNCTION OF GOVERNMENT INDEPENDENT OF THE CONTROL OF THE CITY
COUNCIL SHALL BE FINANCIA-TiLY INTERESTED IN CFRTAIN TRANSACTIONS
WITH THE CITY; AMENDING SECTION 2-83 "GENERAL RULES" OF THE CODE OF
ORDINANCES OF THE CITY OF DENTON TO DEFINE PERSONAL IiMREST AS A
FINANCIAL INTEREST; PROVIDING FOR A DEFINITION OF FINANCIAL
INTEREST; PROVIDING A SAVINGS CLAUSE; LISTING BOARDS WHICH HAVE
SOVEREIGN MUNICIPAL FUNCTIONS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the most widely recognized test for determining
whether or not a board or commission is discretionary and whether
its members are officers is the test enunciated by the Texaa
Supreme Court in Aldine Independent School District v. Stanley, 280
S.W.2d 578 (Tex. - 1955), I.e., which whether the board exercises
any sovereign function of government largely independent of the
control of others; and
WHEREAS, the City Council deems it in the public interest to
amend this section of the Code of ordinances to incorporate the
Aldine Independent School District test, to better define the term
"financial interest" and to list boards exercising sovereign
functions of government; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the findings and recitations set forth in the
preambles to this ordinance are found to be true and correct and
they are hereby adopted by the City Council and made a part of this
ordinance for all purposes.
SECTION II. That Section 2-62 "Conflict of Interest" of
Chapter 2 "Administration" of the Code of Ordinances of the city of
Denton is hereby amended to read as follows:
Sec. 1-62. Conflict of Interest.
a. No member of a board or commission of the City that
exercises any sovereign function of municipal government
independent of the control of the City Council shall have
a financial interest, direct or indirect, in any contract
with the City or be financially interested, directly or
indirectly, in the sale to or by the City of any land,
materials, supplies, or services. For the purposes of
this section, the boards and commissions which have
financial decision making authority are: the Planning
and Zoning Commission, the Board of Adjustment, the Civil
Service Commission, the Electric Code Board, the Plumbing
and Mechanical Code Board, the Historical Landmark
Commission, the Traffic Safety Commission, and the
Building Code Board.
a
E
Agenda No.
Agenda Item-
Date b. The phrase "financial interest" when used herein shall
have the same meaning as "substantial interest in
business entity" as that phrase is defined in section
171.002 of the Texas Local Government Code.
SECTION III. That subsection {b} "Voting Required" of Section
2-83 "General Rules" of the Code of Ordinances of the City of
Denton is hereby amended to read as follows:
Sec. 2-83. General Rules.
b. Voting required. No attending member of a board shall be
excused or shall abstain from voting on any matter before
the board on which a vote is called or required, except
where a board member's personal interest is involved.
When such member's personal interest is involve, such
member shall announce such interest at the commencement
of consideration of the matter, and such member shall not
enter into discussion or debate on such matter and shall
abstain from voting thereon and shall fill out an
affidavit stating such interest in a•.cordance with
section 171.004 of the Texas Local Government Code. A
member shall be considered to have a personal interest in
a matter whenever any matter before the board could or
does affect the member's financial interest. The phrase
"financial interest" when used herein shall have the same
meaning as "substantial interest in a business entity" as
that phrase is defined in section 171.002 of the Texas
Local Government Code.
SECTION III. That save and except as amended hereby, all the
articles, sections, sentences, and paragraphs of Chapter 2
"Administration" of the Code of Ordinances of the City of Denton,
Texas shall remain in full force and effect.
SECTION V. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the day of 1996.
JACK MILLER, MAYOR
Page 2
_ t
i
AgenAitam, AgenDate ,
AT
TEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY:
Page 3
a
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OR
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I 3
CITY OF DENTON
i
I
Analysis of Responses to Bid Number 1869
Request for Group Medical Insurance Bid
1
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1
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i
3
. fE
i
A. Fowler Higgins & Co., Inc.
II 1601 Elm Street, Suite 1800 I
D&Uss TX 75201
E
(
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FcPAerH ns
TABS CONTENTS
Background and General Information Section 1
c
Bid Analysis and Recommendation Section II j
Exhibits
~ j
Insured Plan Rates and Cost Projections Exhibit I
Qualitative Bid Analysis Exhibit II
Plan Design Summary Exhibit III
Carrier Declination Letters Exhibit IV
Finalist Network Directories Exhibit V
i
E ~
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FosterHoo ns
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City of Denton
flackaround and General Information
1
Introduction
On behalf of The City of Denton, Foster Higgins worked with tht City's Human Resource, Purchasing, and Legal department i
staff to prepare bid sperfications seeking insured proposals for group medical coverage for the City's employees, retirees, and
their covered dependents. The new arrangement is to become effixtive January 1, 1997, and will contain options for two (2)
consecutive twelve (12) month renewals.
The specifications were released under cover of Bid Number 1869, on February 8, 1996. The following timeline was presented
in the Bid package, and adhered to through the process:
Activity or Event
! Release bid specifications 02/08/96
Conduct pre-bid conference 02/22/96 I
Receive and open bids 04/18196 #
3
i
flasic Bid Requirements
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The specifications stated that all bids would be subject to the following minimum qualifications:
■ Employee access through a managed care network to at least one currently-contracted hospital in Denton. Bidders were
invited to bid based on one or two currently contracted hospitals in their network (noted as Options A or B, in the
specifications).
■ Delivery of care through an IPA Model Health Maintenance Organization (HMO) - a HMO that contracts with individual
physicians and group practice physicians.
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Background and General Information
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Blended rates for active and retired employees. s
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• HMO and HMO Opt-out Bid that meets or exceeds current plan design.
HMO must be accredited by National Committee for Quality Assurance (NCQA) or have a scheduled NCQA site visit
during 1996. (NCQA is an industry oversight body that develops and applies processes and measures of performance for
health plans. Its objective is to promote improvements in the quality of patient care provided through managed health care
plans, to ensure health plan accountability for the quality of care and service members receive, and to provide information
to the marketplace.) I
■ A one year contract, and renewal for two (2) successive twelve (12) month periods, with rates not to increase more than
20% over the entire contract term, or more than 9.5 % each at the beginning of the first or second twelve (12) month
renewal periods.
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Criteria for Bid Selection
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The contract is to be awarded to the lowest cost, most responsive, responsible bidder. In considering the lowest cost, most
responsive, responsible bidder, Foster Higgins and City staff have evaluated the bids on rates as well as the following elements I
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to determine bidder responsibility and responsiveness: I
■ Provider access
• Provider contracting and reimbursement methods
■ Financial stability
■ Utilization management techniques
• Medical management techniques
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Background e„d General Information - ~
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a Data collection/reporting
a Member services {
■ Plan design '
■ Pharmacy management
■ References and past performance tt
Length and/or volume of experience in the North Texas market.
Bid Distribut on/Response
The Bid Request was advertised pursuant to standard City purchasing procedures, and specifications were also distributed
directly to the following insurance plan carriers, whose responses are identified below:
Company Response Comments
BlueCross Blueshield of Texas Dectined to bid Did not meet basic bid requirements - not NCQA accredited
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Aetna Health Plans Declined to bid See Exhibit NS
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Business Men's Assurance Did not bid
CIGNA Submitted bid i
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Foundation Health Declined to bid See Exhibit IV I
Harris Methodist Health Plan Submitted bid Incumbent carrier h
Humana Health Care Plans Declined to bid See Exhibit IV
Kaiser Permanents Did not bid Did not meet basic bid requirements - rrit IPA model HMG
MetraHealth Sub6o4d bid Bid deemed nonreslwnsive - incomplete cost shed
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North Texas Healthcare Network Did not bid i
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Bid Analysis and Recommendations 4
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Company Response Comments
NYLCare Heahhplans (formerly SANUS) Submitted bid Bid deemed nonresponsive - incomplete cost sheet
PCA Health PI fns of Texas Inc. Submitted bid Bid deemed nonresponsive - incomplete cost sheet StS
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PaciliiCare Submitted bid Bid deemed nonresponsive - incomplete cost sheet
Principal Health Cue of Texas Did not bid See Exhibit IV
Prudential Health Care Did not bid See Exhibit IV
UniCue Did not bid
As noted above, four (4) of the six (b) bids submitted were deemed nonresponsive to the specifications. The two bids that were
deemed fully-responsive, and which were further evaluated to detenuine their compliance with the specifications and match to
the City's criteria, were those prepared by Harris Methodist Health Plan and CIGNA. The remainder of this report addresses ¢
t the analysis of these two bids.
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Cost Anatysls
Exhibit I illustrates the first-year rates quoted by each of the bidding carriers. The financial proposals each included initial
(first-year) guaranteed rates, as well as maximum annual rate increases. Therefore, our analysis projects not only the first-year
cost of the plan; but the maximum cost over the anticipated three-year contract period.
Further, our analysis segregates total cost, as well as the cost to the City and the plan participants (active and retired City
employees), based on the City's current cost-sharing approach with plan participants. It is important to note that only the first-
year cost is fixed; the second and third year cost figures are based on the maximum increase figures guaranteed by the bidders.
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Bid Analysis and Recommendat(one 5
Based on our analysis, the determination of lowest cost bid differs depending on whether one assumes:
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■ A one-year or multi-year perspective, or
s The bidders' insured plan costs will change at levels equal to or pro-rata with the maximum guaranteed annual renewal
increase levels.
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The 1997 CIGNA cost projection suggests a 7.88% decrease from current (1996) rates, while the Harris Methodist rates are
4.93 % lower than current cost. [i
The following chart illustrates the lowest cost determination, based on one- and three-year projections. In each scenario, the
low-cost bid is italicized in bold print and the cost differential between the bids is identified.
-Year Guaranteed 3-Year Maximum
Bidder Total Cost Total Cost `
CIGNA 12,491,488 18,210,319
Harris Methodist Health Plan $2,562,617 $8,186,279
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Coat Differential $70,129 $24,040
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Sid analysis -and Recommendations 6
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I As evidenced in this chart, the identification of the lowest-cost bidder is based significantly on the perspective one adopts with
regard to the issues mentioned above. As the City's consultant in this process, it is incumbent on Foster Higgins to adopt a i
conservative posture with regard to identification of the lowest-cost bidder. Therefore, we recommend the City focus on the 3-
year maximum total cost of the program, and regard Harris Methodist Health Plan as the low-cost bidder, pending assessment
of the qualitative elements of the bids.
Retiree Cost
The City requested that bidder provide rates for retiree coverage based on:
• Separate, stand-alone rates for retirees under- and over-65 years of age (identified as "non-blended rates" in Exhibit 1).
■ Blending retiree costs with the active population costs (identified as "blended rates" in Exhibit I).
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Under Exhibit I, we have provided a summary of the CIGNA and Harris Methodist bids for each approach. You will notice
that CIGNA quoted the game rate levels for the retiree population under either approach, while Harris Methodist separated them
as specifically requested.
Essentially, the effect of blending the active and retired rates, under the Harris Methodist approach, would be to decrease the f
cost of coverage for all retirees except those over 65 with single or retireelspouse coverage. These latter groups would
experience a very significant increase in cost, while active employee rates would increase slightly.
Proposal Analysis
Our analysis of the non-financial elements of each bid focused on the ability of each bidder to manage, maintain, and improve
the quality of the City's health care program. The first element of this is an assessment of each bidder's compliance with the
existing plan design.
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Bid Analysis and Recommendations 7
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?Ian Design 9
The chart included in Exhibit III illustrates the requested service/coverage levels in the Wtocations, and each bidder's €
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willingness to crfer the requested coverage. Based on our assessment, Harris Methodist identically meets the requested plan I
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design. CIGNA, on the other hand, notes several deviations from the requested design.
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Qualitative Bid Analysis
Exhibit Il summarizes our analysis of the key issues included in the specification questionnaire. This Exhibit summarizes each 1
finalist bidder's response to key questions within each questionnaire section, and numerically grades the responses based on our y
proprietary Network Evaluation model. We weighted the responses in each section based on the City's expressed concerns and
needs.
Based on our analysis of the qualitative elements of the Harris Methodist and CIGNA bids, we find that Harris Methodist most {
closely meets the City's criteria for a managed medical plan carrier.
ggcon,rnandatioa P
Our analysis suggests that Harris Methodist is the winning bidder, based on an analysis of the total maximum guaranteed cost
over a 3-year contract period. We further find that Harris Methodist most closely meets the qualitative elements of the bid,
which in turn represents value for the City and your employees.
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We recommend the City of Denton renew your contractual relationship with Harris Methodist Health Plan for the 1447 contract
year, with the annual renewal options as offered in the Harris Methodist proposal.
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CITY OF DENITONI
j 1996 CurreotMedleal Plan Insured Rates
ACID Enrollment taw
HMO Opt out ?Ian
EEOnly 14 $222.97
EE 6 Spouse 5 $34511
EE d Child 12 $298.78
EE 6 Family 14 $376.82
HMO Plan j
EE Only 355 $192.98 I
EESSii~ +
EE 5 Chid 150 86 $299.94
$259,14
EE & Family 218 $326.01 E
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RETIRED UNDER GS
HMO Opt-out Plan
ReUree Only 0 $302.04
Retiree d Spouse 1 $581,97
Retiree d Child 0 $470.61
Retiree 6 Family 0 $715.02
HMO Plan
Retiree Only 5 S261.40
Retiree & Souse 3 $505.07
Retiree A Child
Retiree 6 Family 1 $618.81
RETIRED U A, OVER 1
HMO Opt-out Plan
Retiree Only 1 $111.49
Retiree d Spouse 1 $222,97
Retiree 6 Spouse (1 under 65) 0 $422.37
Retiree d Family (1 under 65) 0 $859.55
ReUree & Family 0 $435.31
HMO Plan
Retires
Only 5 $98.49
Retiree & Spouse 1 $192.98
Retiree & Spouse (1 under 65) 3 $365.55
ReUree 5 Family (1 under 85) 0 $570.82
Retiree 3 Family 0 $376.74
1997 TOTAL ANNUAL COST 52,889,005
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1"7 Medical Plan Insured Rates • CIGNA
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Non-Blended Rates Blended Rata
EOC➢llIDaet low GUY ParticlPam low Clot Participant
ACTfVE
HMO Opt-out Plan
EE Only 14 $190.71 $181,00 $9.71 $190.71 $181.00 $9.71
EE & Spouse 5 $294.59 $181,00 $113.59 $294.59 $181.00 $113.59
EE dChild 12 $254,69 $181,00 $73.69 $254.69 $181.00 $73.69
EE d Family 14 $321.20 $181,00 $140.20 $321.20 $181.00 $140.20
HMO Pla
EE Only n 355 $181.00 $181.00 $0.00 $181.00 $181.00 $0.00
EE 8 Spouse 86 $280,56 $181,00 $99.56 $280.56 $181.00 $99.56
EE 8 Child 150 $242,54 $181,00 $61.64 324214 $181.00 $61.54
EE 8 Family 218 $305,90 $181,00 $124.90 $305.90 $181.00 $124.90 3
RETIRED UNDER a8
HMO Opt-out Plan (iy
Retiree Only 0 $190,71 $0,00 $190.71 $190.71 $0.00 $190.71 j
Retiree 6 Spouse 1 $294.59 $0.00 $294.59 $294.59 $0.00 $294.59
Retiree 8 Child 0 $254.69 $0.00 $254.69 $254.69 $0.00 $254.69
Retires 8 Family 0 $321,20 $0.00 $321.20 $321.20 $0.00 $321.20
HMO Plan
Retiree Only 5 $181.00 $0.00 $181.00 $181.00 $0.00 $181.00
Retiree & Spouse 3 $280.58 $0.00 $280.58 $280.56 $0.00 $280.58 i
Retiree d Child 0 $242.54 $0.00 $242.54 $242,54 $0.00 $242,54 "
Retiree 8 FamBy 1 $305.90 $0.00 $305,90 $305.90 $0.00 $305.90
RETIRED Ad & OVER
HMO Opt-out Plan
Retiree Only 1 $190.71 $0.00 $190,71 $190.71 $0.00 $190.71
Retiree 8 Spouse 1 $294.59 $0.00 $294.59 $294,59 $0,00 $294,59
Retiree & Spouse (1 under 65) 0 $19011 $0.00 $190.71 $190.71 $0.00 $190,71
Retiree 8 Family (1 under 65) 0 $321.20 $0.00 $321,20 $321.20 $0,00 $321.20
Retiree d Family 0 $321.20 $0.00 $321.20 $321.20 $0.00 $321.20
HMO Plan
Retiree Only 5 $181.00 $0.00 $181.00 $181,00 $0.00 $161,00
Retiree d Spouse 1 $280.56 $0.00 $280.56 $280.56 $0.00 $280.56
Retiree d Spouse (1 under 85) 3 $181.00 SOHO $181.00 $181.00 $0.00 $181,00
Retiree 8 Family (1 under 65) 0 $305.90 $0.00 $305.90 $305.90 $0.00 $305.90
Retiree & Family 0 $305.90 $0.00 $305.90 $305.90 $0.00 $305.90
71197 TOTAL ANNUAL COST $2,492,468 51,854,888 $637,600 $2,492,468 1,854,888 $637,600
Foster H ns
06119/96 • RATEVAL4.WK4 ~ Page 4
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CITY OF D£NTON
1997 Medical Plan Insured Rates - Harris Methodist Health Plan
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Non-Blended Rates Blended Rates
Enrollment Iotai G4' earwilant low City ParticIpant
ACTIVE
HMO Opt-out Plan j
EE Ordy 14 $212.42 $183.84 $28.58 $220.07 $185,03 $35.04
EE 8 Spouse 5 $32924 $183.64 $145.40 $341.09 $185.03 $156.06
EE 6 Child 12 $284.63 5183.84 $100.79 $294.88 $165.03 $109.85
EE d Family 14 $35897 $18384 3175.13 $371.90 $185.03 $186.87
HMO Plan
EE Only 355 518154 $183.84 $0.00 $185.03 $185.03 $0,00
EE d Spouse 86 $285.73 $183.84 $101.89 $267.59 $185.03 $102.58
EE 3 Child 150 $246.87 $183.64 $63.03 5248.47 $185,03 $63.44
EE d Family 218 $310.57 $183.64 $126.73 $312.59 $185.03 $127.56
RETIRED UNDER A
HMOOptout Plan
ReVree Only 0 $287,73 $000 $287.73 $220.07 30.00 $220.07
Retiree & Spouse 1 $554.41 $0.00 $554.41 5341.09 $0.00 $341.09
Retiree d Child 0 $44832 $0.00 $448.32 $294.88 $0.00 $294.88
Retiree 6 Family 0 $681.15 $0.00 $681.15 $371.90 KOO $371.90
HMO Plan
Retires Only 5 $249.03 $0.00 $249.03 $185.03 $000 $185.03
Retire d Spouse 3 $481.15 $0.00 $481.15 $287,59 $0.00 $287.59 f
Retiree d Child 0 5388.65 $0,00 $368.85 $248.47 $0.00 $248.47
Refine 6 Family 1 $589.31 $000 $589.31 $312.59 $0.00 $312,59
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RETIRED as A OVER
HMO Opt-out Plan
Retire Only 1 $106.21 $0.00 $106.21 $220.07 $0.00 $220.07
Retire d Spouse 1 $212.42 $0.00 $212.42 $341.09 $0.00 $341.09
Retiree 8 Spouse (1 under 65) 0 $433.32 $0.00 $433.32 $341.09 $0,00 5341.09
Retiree d Family (1 under 65) 0 $828.31 $0,00 $628.31 $371.90 $0.00 $371.90
Retiree 6 Family 0 $414,69 $0.00 $414.69 $371.90 $0.00 $371.90
HMO Plan '
Retiree Only 5 $9111 $0.00 $93.91 $185.03 $0.00 $185.03
ReVree d Spouse 1 516184 $0.00 516164 $287.59 $0.00 $287.59
ReVree 8 Spouse (1 under 65) 3 $375.03 SOHO $375.03 $287.59 $0.00 $287.59
Retiree 6 Fsm4 (1 under 85) 0 $543.78 $0.00 $543.76 $312,59 $0.00 $312.59
Retiree 8 Family 0 535810 $0.00 $358.90 $312.59 $0.00 $312.59
fill? TOTAL ANNUAL C03T 2,562,617 $1,883,992 $678,624 ,573,320 $1,896,187 $677,133
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CITY OF DENTON
1997-99 Medical Plan Insured Cost Projection
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CIGNA
7Atai 41tY eatSlslpanl
1997 TOTAL ANNUAL COST $2,492,488 57,854,888 $637,600
'98 Maximum Increase (guarantied) 9.5% 9.5% 9.5% I
19M TOTAL ANNUAL COST $2,729,275 $2,031,102 $698,172
'99 Maximum increase (guaranteed) 9.5% 9.5% 9.5%
1999 TOTAL ANNUAL COST 52,988,558 $2,224,057 $764,499
1997.99 TOTAL MAXIMUM 3-YEAR COST 0,210,319 6,110,047 52,100,271
Harris Methodist Health Plan TOW city PAIWpAd
1997 TOTAL ANNUAL COST $2,562,617 51,883,992 5678,624
'98 Maximum Increase (guaranteed) 5.0% 5.0% 5.0%
1998 TOTAL ANNUAL COST $2,690,748 $1,978,192 $712,556
'99 Maximum increase (guaranteed) 9.0% 9.0% 9A% t'
1999 TOTAL ANNUAL COST $2,932,915 $2,156,229 $776,686
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199749 TOTAL MAXN9UM 3-YEAR COST $11,1811,:79 Se,01e,473 2,1a7,ee6
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Exhibit 11
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~MMA~'li 4i~~.~•1Y x•T y,~*•T~,~y43.sp~p ~ry~♦1~~ '~rITT ~ s~~ - ~ ~ K X.j~ ~ ~9 T '1~C'Q `~4p~ '14~~,)I
' Ci0~11,,~~ 1~9~v ~.~`69t~r g~, ' C4{~ w~ y~`.J{7u~., A!~.~'~~,!?IA J~~~(~~rV(~l~,r' 'A~~x~2~6 p%'y x" ~ ~3 ?c ^ir 4C' i ~ wM'r ~+♦~~a
Client: @ R , =7
Location' t.tA TX ! r=s=
Results Summa
_ y % - 7tif r 1~r
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errisMefh. .:GIG
1 Management I Ownership 0% _0.0% 0.0% 0.0% 0.0%
2 Provider Contracting 8 Relmb. 10°k _ 8.9% 5.2°k OA°h 0.00/_ 0.0°~
3 Financial Stability 10,0% 5.0% 0.0% 0.0% 0,0%
4 Utilization Management 10%0 6.1% 7.7% 0.0% 0.0% _ 0.0%
5 Medical Management _ 15% 8.1% ~ 7.5°k 0.0°h
7 Membership Services 10%° 6.3% - 8.9% ---0.0% 0.0% -0.0% <
8 Plan Design 0.0°~ 0.0%
9 Rate/Cost Proposal 1h
10 Pharmacy Management 0.0% 0.0% 3.0%
11 PsychJSubs. Abuse Network 6% _ 4.4% 5.0% _ 0.0% 0.0% 0.0%
12 Patent Advocacy 10% 4.6% 4.4% 0.0% 0.0% _ 0.0%
Total 100.0% 77.6% 68.8% 0.0% 0.0% 0.0%
05103/98 1 Foster Hrunins
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TOTAL VENDOR. EVALUATION SCORES i
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100!° ,
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60% -
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20% _ ~
0%
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11~ Harris Melh Lea CIGNA f
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TOTAL VENDC;: EVALUATION SCORES
20% - -
E COST
15Th_
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FINANCES
j 10% CONTRACTS - - ME GT Svcs
UTIL T
DESIGN MF(/ '
Ooh -_r i.__~_ 9 i__.-__ i_-.._.__~_-_ 1? _ 1
[ Harris Meth ET7 CIGNA
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05103/96 2 fosterH!Mns
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6tst8cShJC~0~~c~~'1SOME'' l ~ r ; ~~~t~, t , ~v, ews ' ~'coh t ~ a 8ooes ~ w~ ~wrs ? >~csrs`~ 3 a.'
r,t._. Ita a i.1:tVNi:e», IENa3lyr' a,t~YE,aa'.51
1. Management! Ownershlp
Com teness of responses 1.00 2~p [ 2 - ----T
1
E 2. Provider Contraoting & Relmb.
4 PCP de icon «E,r
S NonnetWk ~h _s cn 1wsp. discntE 00
t♦ Ternunate a physk:n ~E' y ' f ' wok Ey ° wi ».w....ww
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6' Physician tINnOYer j `E E f trt!
13 !~a lptated hospital eves E i E'' R a3 r
n
14 CaeWed phhysfc an evcs @3,.'.l a o <
15 Shared risk _~ools "a o, tit, e- 00
,
19 Incentive perform. Prsma _ i?t t, f a a`
Weighted subtotal 23.00 2050 12,00 0,00 _ 0,00 ---0 00
3. Flnancfal SlabllltY____`
2 Noncompliance w an_Yrags - MOM 7-7
e Ratee histo
00 -ei$hted cubtatal 10.00 _ 500 _ 006 _0.00 _ 0.00
4. Utlllzagon Management
1 H~ecert ~rocesa ',ii:r l,a. ;.1 X00 ;:1 QO ,
2 De ated ecert prxaduras _ . !
6 Reassessment frequency _ , . i ll<., .00 2.00
11 Interactions : 9,, 00
14 Case mgmt process
22 Aft treatml rssaxee Waritf. 00
25 Case ml of or an transplants
; 200 '
27 Delegated UGI. mgm1 t
28 High-risk lp a nancvy n aE•, a:•tf : a, .
30 RN•tocovd•lives ratio sa ; ' :
37 Ain auUtorizaGon for referrfafs
Weighted subtotal 22.00 13.50 17.00 0.00 0.00 , 0.00
05103196 1 Foster irons
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m~~ Ew~ it < ~ i at' i 4i ~ e N}• ~ yj?~C9a►I ~ ~rd ~C01'1"~=;~=~ttj[»~~~Q1r a=+ .~CM► 9'k t ~COf► p I.jl '
S. Medical Management _
1 Bcard certification 7 ! . 7.=:7,70W
3 Determin ade
9castY of ph sns < a • t'' 00 ! 1.
Y-
7 Continuity of care E t G 71
B PCPIS ecialis! info exchange
16 CtInICAI information ca lured Ek i, t`, KEi a E r,EE c tl : t , kl
Weighted subtotal 12A0 6.50 6,00 v~ 0,00 0.00 _ 0.00
7. Mambers hle Services
'f::<,.
1 Autom.cal distrib.phones
it's
6 CoM rerouting E ,
7 PCP designation changes
8 After of ib lily recordsiE ,
10 Addldeletedeendants r , 00 2.00
11 Cual. reWsw 2,00
12 Ofdeffissus new IN ?'%k,t 1•.< 00 ~Nt 400 M1,00 „ s
on ?E t
13 Documented dispute tesoluti
15 Customer atisfac, surveys,t. 2, N <2.00 1.90
16 On-fine access W UR, CM, etc a A, t
19 Rolf, time H PCP quits : E!€ €,t` ;o ;ot 9.00 E 7.00 <
30 t fedentii111_2 prior to adding g. t Fl t r Q
32a §I!tem protection t! :0,
it t:
32b Passwords changed
32e Password Qractice - E E h.t 1 2 t1t7 E . r '
32d Table of maximums ; 1J ~hv r,.• t ! H., Er
32s Payments vary by job raoe Eat![: Ex~• . `'2 2
34 Disaster recovery plan t t tt.. st , : t
Weighted subtotaT 4200
.35.00 37.50 000 0.00 000
Plan Oeslgn
General :E ~i60 T 'Edd 73.Sb
eighledsubtotal _ 1.00 1,00 _ _0.25 -0.00 0,00 c,00
05103196 2 FosterHia-ains
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rvJr,:i'I~"„'. .y~,1fa',3 W ~COf~ t~' t` $C9t'0:'» aGMt'~+ iCOf~ +qa ti.'. -
+ 1 Q04E~~t1df1 .~e. J ~ a q• l! E •'EE~~i~E~~ !jin a~ L i E E r~ i _ ' ~ n prv ! kS E
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9. RatelCost Proposal
-
100 2,0---2.00 ----,0 0. - -00
Algorithm 0.00 0.00
777
_,Wei$htedsubtotal 1,00 t.00 1.00 0.00 _ 0.00 - -0.00
10. Pharma Management
1 Com er6nkw.pharmacles ! ~.'~6tF "id6 '1
4 Concurrent DUB rop am it?, t, f Wit., 0
11 Med. MpuPharm. Mkt word. E,`n:;! " c E 7- 77
00
14 CasemgmtidenUfcaton
is ?harms reimtwrsement x i 100
20 Mail or -ag der use information 706 ''r 00 200
21 Nobrocation of press. decays - P=
27 Ois s' process
- 200 2.00 206
28 Formula arran ements
-
Weghtedsubtotal 24,00 17.00 2100 0.00 ODO 0,00
It. Pa ch.l8uba. Abuse Network
1 Gatokpr a psych. professional - m t~ ' .Gb 2bEi
2 Provider s 200 4.04 , 200
10 How coord pssych -med case a, "LtSG
11 Dual dra nosis handy 7. E:. ~ .60 i 2.00
weighted subtotal 7700 800 _ 0,00 - 0.00 ----0.00
12. Patient Advocacy
i~ T
~RW
2 How accessed
- . , <
6 Hbw access Information lr:, ?
7 Interaction w. case mgmt, etc. sir
9 Prenatal educ. d. stxssning E,. T: a E , :
10 Canted encouragamant k,.iE
14 Follow-up cat pof~ 200 000
17 Prenatal education x r r. .P
18 Other member sduc,&"Iness :R'+
19 1Nak6 to programs ,
- -
21 Health risk ssiassm t program _
2.00
-1777!77 7
Weightedsubtotal 29,00 1200 11 F4 0.D0 - 000 0.00
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City of Denton
Qualitative Bid Analysis
Question Harris Methodist CIGNA
Number Question Res onse Score Res once Score
MA nagementlU+voera6tp m
I Organization's ownership Owned by Harris Methodist Not Wholly-owned subsidiary of Not
structure Health System scored Connecticut General Corp. scored }
2 Medical director information Not Not 6
OB/GYN scored Pediatrics scored
- Specialty
- % of time as medical director 100% 104%
vs. private practice 1489 r
Last year in private practice 1982
3 Enrollment data (1995) Not Not
- Total enrollment 99,493 scored 105,712 scored
- % which is commercial 88% 26.4%
o
- % which is Medicare 1% 0.2 /o
- % which is Medicaid 0% 011/9
- % which is other 11% 0.2%
46.47% DPP
26.67% EPP
Gross disenrollment Not available, due to system 11.4% (23% commercial and
limitations 9.1% Medicare)
1
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Question Harris Methodist CIGNA
Number Question Response Score Res once Score i
4 Five (5) largest client and Lockheed 20,844 Not E-Systems 16,836 Not i
number of members City of Fort Worth 13,769 scored GTE 8,885 scored
State of Texas 11,884 Delta Airlines 5,516
Bell Helicopter 8,608 Minyard Food 4,195
Arlington I.S.D. 6,728 General Foods 3,787
_`yc, lYT
Provider c'ontnctng & Reimbursement (In=
l 4 Definition of a "primary care Familylgeneral medicine 2 Family/general medicine 2
physician" (PCP) Internal medicine Internal medicine
Pediatrician Pediatrician
Other: Geriatrics #
I !
If OB/GYNs are not PCPs, can Yes Yes, annually for well-woman
a woman go to an OBIGYN exam
without PCP referral? f
6 If a non-network physician Yes, for those be nefits that a 2 No 0 `
admits to a network hospital, covered through the use of a
will the employer receive the non-network physician
network discount?
i 8 Can you terminate an Yes 2 Yes 2
individual physician within a
medical group/IPA contract?
2
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Question Harris Methodist CIGNA
Number Question Response Score Response Score
9 Physician turnover in the past 1 0
I
year
PCPs 8.53% 0.0%
Specialists 3.39% 12.4% r
13 Services covered by hospital No hospital capitation 0 No hospital capitation 0
capitation E
14 Services covered by PCP office visit 1 PCP office visit 2
physician/medical group Hospital visits Lab
capitation Lab X-ray
i
X-ray Specialist office visit
Outpatient surgery (minor)
15 Describe shared-risk pools Have pool for PCPs, 2 Do not have 0
specialists, and facilities.
19 Are there incentive Yes 2 Yes 2
performance programs that can
impact the capitation
payments?
F#nancia! Integrity"(III
2 Are there any restrictions or No 2 No 2
pending review by state or
federal authorities for non-
compliance with state or
federal regulations?
3
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Question Harris Methodist CIGNA
Number uestion Response Score Res Lase Score
wmm~
6 Premium rate or standard Provided 2 Not provided 0
community rate table
r
Utilrzatiou Maongement ZIV} t
1 Describe process and criteria use Interqual criteria 1 Use Milliman & Robertson and 1 S
used for hospital Share criteria with physicians PAS criteria and guidelines ;
precertification Criteria is national Share criteria with physicians
Criteria is updated annually and Criteria is national
at least every three years Criteria is updated on a regular
basis j
2 If precertification process is Not applicable 2 Not applicable 2
delegated to any of the medical j
groups, please describe
6 Frequency that a patient's need All in-network hospital stays 1 Daily 2
for continued hospitalization is are reviewed within 24 hours of
re-assessed under the admission and at least every
concurrent review program third day following admission
11 Describe how interactions are Al I these communications are 2 Responses are kept in the 2
recorded with the following, recorded within the patient's clinical record
facilities, providers, and preauthorization record
patients
4
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Question Harris Methodist CIGNA j
I
uestion Res onse Score Res once Score Number a
} 14 Describe process and criteria Cases are identified through 1 Explanation of how cases are 0.5
used for case management physicians, nursing caregivers, identified was not explained.
and hospital discharge Some diagnostic criteria used
planners. Some diagnostic for irutiation, no cost threshold
criteria used for initiation, no mentioned. Interact with
cost threshold mentioned. patients, family and physicians.
Interact with patients, family t
and physicians.
t
22 How do case managers identify Criteria includes years in 2 Criteria limited to providers 1 a
and evaluate local health care operation, reference check, that have proven to provide
resources for alternative reputation in medical quality, cost effective care
treatment? community, cost, and '
willingness to negotiate on
price.
i
25 What special procedures, if No discussion of centers of 0 Evaluation at a CIGNA 2
any, are available for case excellence Lifesource organ transplant
managing organ transplants? network facility. Case
managers provide the patient
with a list of participating
centers for surgery.
27 If any part of the utilization Not applicable 2 Not applicable 2
management process is
delegated to any of the medical
groups, please describe
5
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r Question Harris Methodist CIGNA
Number uestion Response Score Response Score }
28 Describe process and criteria OBs are requested to precertify 1 PCPs are requested to 1.5
r for identifying and managing each case on the first precertify each case when the
high-risk pregnancies obstetrical visit. This pregnancy diagnosis is made. s
!otification allows for review This notification allows for g
of clinical information to review of clinical information 9
identify need for high risk to identify need for high risk
management. Some diagnoses management (done twice S
were listed for triggers. Health during pregnancy). "From
education and follow-up not Here to Maternity" book is ,
mentioned. given to patient.
30 What is registered nurse to 1:7,500 0 1:4,255 2
covered lives ratio?
i
37 Do referrals by PCPs to Only authorizes out-of-network 1.5 Yes they require authorization. 1
specialist require plan referrals. Referral patterns are CIGNA acknowledges the {
authorization? monitored. authority of a referral by a PCP
regardless of the "correctness"
of the referral. Care
management reports are used.
Monitoring of over and under 1
referral to specialists is not
specifically mentioned.
I
6
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Question Harris Methodist CIGNA
Score Response Score
Number uestioa Response
MedI~allVlaaagginent a>
E 1 Board certification: 1 2
PCPs 76.01% 86.9%
85.10% 91.9%
Specialists
Board eligible:
PCPs 10.87% not tracked
Specialists 7.84% not tracked
3 How do you determine the 2 PCPs within 10 miles 2 2 PCPs within 15 miles or 30 1
adequacy of PCP and specialty minutes
staffing (number and location)?
7a Describe continuity of care Harris requires PCP to provide 2 Members are notified 1
procedures when physician them with a minimum of 120 immediately of need to select
terminates contract %vith the advance notice , 90 days for another PCP, some healthplans
network specialist. Member is sent a automatically assign a new
letter advising them to select PCP. Members are usually
another PCP. moved well ahead of the
termination date.
8 Describe the responsibilities The plan relies on the 0 The plan relies on the 0
and process by which a PCP physicians to exchange physicians to exchange
and specialist exchange information. No contractual information. No contractual
information back and forth standard. standard.
when a referral has been made
and care has been provided.
7
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Question Harris Methodist CIGNA
Number Question Res onse Score Response Score
16 Describe the clinical Capture information from 0.5 No mention of exactly what 0
information that is routinely UB92 and HCFA 1500. No elements, if any, are captured
captured to support the mention of exactly what
monitoring of medical care elements are captured
service delivery.
Member ServlceslCliim Adjudication (VII)
l Is Automatic Call Distribution Yes 2 Yes 2
telephone system used? {
6 Can calls that are more Yes, w.'thin other departments I Yes, internally 1
appropriately served by other of the Arlington office
areas be automatically rerouted
by member services?
7 Do member services staff have Yes 2 Yes 2
i
responsibility to accept changes
to members' PCP
designations?
9 Can member services alter Yes, but an on-line record for 2 Yes, but an on-line record for 2
eligibility records such as audit is created audit is created
member address? If yes, is an
on-line record for audit created.
10 Can member services add or No. Eligibility is maintained 2 No 2
delete members or dependents? and updated by enrollment staff
8
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Question Harris Methodist CIGNA
Number uestion Response Score Response Score
11 Are member services Yes, included silent monitoring 2 Yes, included silent monitoring 2
representatives evaluated of live phone calls of live phone calls j
through a Quality Review
Program? If yes, describe
12 Can member services accept Yes 2 Yes 1
orders for or issue new ID Turnaround time is 5 to 14 days Tumaround time is 2 to 3
cards? If yes, what is the of the request weeks
turnaround time.
13 Is there a documented dispute Yes 2 Yes 2
resolution process for h
members?
is Are customer service Yes 2 Yes 1.5 I
satisfaction surveys conducted Quarterly Ongoing basis
regularly? Can be client specific Can be client specific
Results are 87% satisfied Results are 87% with overall
satisfied
16 Do member services All except patient advocacy 1.5 Yes to all 2
representative have on-line which is manually logged
access to:
a
Utilization review
Case management
Patientadvocacy
Claim adjudication
Provider services
Plan detail record
9
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Question Harris Methodist CIGNA
Number Question Response Score Response Score
19 How quickly are members Within 31 days of Harris' 0 Immediately 1
informed when their PCPs receipt of notification of
leave the network? termination E
30 Are providers credentialed Yes 2 Yes 2
before they are added to
provider file? 3
32a How is the system protected Double password protected 2 Password protected (number 2
against unauthorized access? not mentioned)
32b How often are passwords Quarterly 2 Quarterly 2
changed? i
32c is this an administrative Administrative practice 0 System required 2
practice to change passwords or
does the system control the
process?
32d Does the system include a table Yes 2 Yes 2
of maximum authorized benefit
payments?
32e Do the benefit payment Yes 2 Yes 2
authorizations vary by job
grade?
34 Is there a published disaster Yes 2 Yes 2
recovery plan for computer
center?
10
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Question Harris Methodist LRes2onse NA
Number Question Response Score Score
Plpn Design (Vl[n
l Proposed plan design See it III 2 See exhibit III 0 S f
Phsrr<tacy Management { • . ;
1 Describe your computer link Computer link available at least 2 Computer link available 24 2 1
with your network pharmacies 22 hours a day. hours a day.
t
Pharmacist receives DUR edits Pharmacist receives generic
as well as generic substitution substitution information edits j
information. online.
Pharmacist input basic Pharmacist input basic
prescription data and system prescription data and system
verifies eligibility and displays verifies eligibility and displays
the plan design and copays. the plan design and copaya.
4 Describe your concurrent DUR Do not monitor all minimum 1 Monitors all minimum areal 2
program and what is system areas (7 out of 9), but do plus more
monitored monitor additional areas
11 How do you coordinate Program is coordinated with 2 Program is coordinated with 2
pharmacy management with the medical management medical management
medical management function?
14 Are members identified for RN Specific pharmacy involvement 0 Specific pharmacy involvement 0
case management - based on not mentioned not mentioned
drug therapy?
11
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Fb Harris Methodist CIGNA Score
Score Res once
! Response
Question
are pharmacies 13% of bra nd 2 15.2% off brand 2
MAC program for generic 40% to 50% off generic
ursed? What are Your
generic and brand discounts
from the average wholesale
price? What is you dispensing
fee? i
Includes information regarding 2 Includes information regarding 2
20 Is prescription usage the description of the medicine,
information sent with the mall- dosage, instructions for usage,
fill? What" t possible side effects and any instructions on how to use
order
information is provided? warning applicable to the medicines, cautions, and side
specific drug effects.
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12
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Question Harris Methodist CIGNA
Number ucstion Res onse Score Response Score
21 How are participants notified If a prescription cannot be Q If a prescriptior cannot be 1
of prescriptions which cannot filled it is return to the member, filled it is immediately returned
be filled or will be delayed in usually within two days from to the member.
filling? How long, on average, receipt. If a prescription will be delayed
does this notification take from If a prescription requires the member is notified by
date of receipt by you? intervention, Express Scripts telephone within 72 hours and
attempts to call the physician advised of the delay.
on the first and third day after
the need comes to their
attention. If they cannot make
contact with the physician the
member is called on the fifth j
day. On the seventh day they
try to call the physician again if
unable to contact they return to
script to the member.
27 Describe the process by which Steps appear to be appropriate 2 Steps appear to be appropriate 2
a prescription is filled and from description from description
delivered by the pharmacy.
28 Drug formulary in us Yes 2 Yes 2
Psychlitric & Substance Abuse Network (XI)
I Is the psychiatric/substance Yes 2 Yes 2
abuse gatekeeper a psychiatric
professional?
13
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Question Harris Methodist CIGNA
Number Question Response Score Response Score
2 Number of participating 2 2 i
psychiatric/substance abuse
E providers
E 1) Psychiatrists 57 2,780
2) Licensed psychologists 68 4,669
(PhDs) 1
3) Licensed psychologists 0 Included w/ PhDs
(MAs)
4 MSWs 22 6,281
I
S) Psychiatric RNs 0 Included with MSWs
6) Others 89 LPCs, LMFTs 0
3
10 How do you coordinate Primarily the responsibility of 1 Provider education is used for 2
treatment of a psychiatric the treating psychiatrist. Sound PCP. For potentially E.-h cost
problem with an overlying medical practice requires that dual diagnosis cases, MCC has
medical component? PCP and specialist consult and implemented a protocol with
share information in the healthplans which coordinates
treatment of these cases. the involvement of MCC, PCP,
the patient and their family.
11 How do you handle dual Substance abuse treated first 2 Substance abuse treated first 2
diagnosis cases
Alcoholism with an underlying
psychiatric problem?
14
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Question Harris Methodist CICNA
Number Question Res onse Score Res once Score
1
v s
Patiedt Advoca
c
r ca n:-
2 How do members access your Customer Service Department 2 Member Services Department 2
y patient advocate service? and Issue Coordination serves as a patient advocate.
Department both serve as a Toll free number available 24
patient advocate. hours a day, seven days a week.
Toll free number available
from 7 am to 7 pm, Monday j
thru Friday. Answering service +
available 24 hours a day that
can page the administrator on-
call '
1
6 How do patient advocates Have access to reference 1 Have on-line databases with 2
access information? manuals, medical library community resources, and
research, and other resources. reference books are available j
7 Does the patient advocate Yes 2 Yes 1.5
interact with other programs, Described in detail Limited description
such as hospital recertification,
case management, etc.?
9 Do you have a formal prenatal No 0 Yes 2
education and screening
program?
15
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Question Harris Methodist CIGNA
Number Question Response Score Response Score
I 10 What methods do you use to N/A 0 800 telephone number, PCP, 2
encourage members who plan design incentive, follow-
believe they are pregnant to up calls, and monthly or I
contact the prenatal service? quarterly newsletter
14 What is policy toward follow- N/A 0 Follow-up calls not mentioned 0
up calls to the member during
pregnancy and post delivery
and how frequently are they
made?
j
17 Do you have specific prenatal N/A 0 Specific standards not 0
education and wellness? mentioned
18 Do you offer patient education Our list of specific programs 0 Our list of specific programs 0
and wellness programs for not mentioned not mentioned
those mentioned in RFS?
19 Have you performed worksite Several programs are available 2 Performing research on this 0
programs. If so provide issue presently
examples
21 Do you have a health risk Yes, at an additional cost to 2 Yes at no additional cost 2
assessment program? If yes, is most clients. This cost is
there additional cost to the waived for the City of Denton.
employer for the program?
16
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E Question Harris Methodist CIGNA
# Number Question Res onse Score Res once Score
3smployee'pceess (XITn I
2 Percent of employees with at Pass Pass
least 2 providers within 5 miles
Adult PCP 80.0% 66.8%
OBIGYN 61.5% 45.9%
Pediatrician 54.1% 56.2%
Specialist 83.3% 69.8% ;
Hospital Both Denton hospitals Both Denton hospitals #
SeMCO (XVP c
1 Forms Yes Pass Yes Pass
As currently provided Will use their standard forms
2 Employee initiated Yes Pass Yes Pass
telephone utilization review As currently provided The PCP is responsible for
services initiating utilization review for
in-network
3 Inquiry and appeals response Yes Pass Yes Pass
system As currently provided
4 Communicate/coordinate Yes Pass Yes Pass
certification decisions As currently provided
5 Knowledgeable representative Yes Pass Yes Pass
As currently provided
17
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Question Harris Methodist CIGNA
j Number Question Res onse Score Response Score
6 UM Savings reports and Yes Pass No Fail
documentation In addition to standard
reporting package, a monthly
utilization status report can be
provided which includes admits
and days per 1,000.
14 Design, print claim checks, Yes Pass Yes Pass
employee booklets, SPDs and As currently provided Will use their standard I#
enrollment materials materials
15 Meet with City and provided Yes Pass Yes Pass #
illustrative information. As currently provided. Will use their standard 3
j Furnish hospital and dental Issue a single ID card materials
care ID cards. (Current method)
16 Toll-free telephone service Yes Pass Yes Pass
As currently provided
17 Notify claimants in writing of No Fail Yes Pass
ineligible claims As currently provided.
Generally notify network
provider as claims are
submitted by them. Will notify
member if payment is due
them.
18
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Question Harris Methodist CIGNA
Number Question Response Score Response Score
18 Provide information Yes Pass Yes Pass i
concerning plan benefits to As currently provided
providers
19 Pay medical claims within 10 No Fail Yes Pass
business days of receipt of all Standard is 20-day average,
required information if COB is performance agreement is for
not involved, no more than IS greater than 20 days
days if COB is involved
i
20 Consultation to employees for Yes Pass Yes Pass
most effective use of benefit As currently provided
plan and appropriate treatment
21 Review and handle all claim Yes Pass N/A Fail I
thoroughly and expeditiously As currently provided it is assumed that all charges
However, copies of EOBs will are necessary, reasonable and
not be provided to the City as customary since contracted
this is a fully insured plan. rates only apply to a Managed
Care only plan. It is not their
normal practice to send copies
of EOBs to an employer.
22 Process and pay according to Yes Pass Yes Pass
the plan as designed by City, As currently provided
pay all mailing costs.
19
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Question Harris Methodist CIGNA E
Number Question Response Score Res onse Score
23 Advise City for hospital claims No Fail N/A Fail
f i that warrant on-site audit Because this is a fully insured with contracted rates for a i
product Managed Care only plan
r
24 Handle any and all provider Yes Pass Yes Pass
inquiries, providers are not to As currently provided
I
be referred to City
25 Correspond with claimants as Yes Pass Yes Pass
needed As currently provided
26 Apply pre-existing limitations Yes Pass Yes Pass
As applicable under the POS They apply no pre-existing j
only condition limitations to in-
network benefits, only out-of-
network benefits
i
27 Provide medical advice on Yes Pass Yes Pass
questionable procedures or As currently provided As
claims currently provided
28 Perform internal audit and Yes Pass No Fail
provide results to City at least Performed currently, but not on
once in each 6-month period a client specific basis, this
would require an additional set-
up fee of $5,000.
[29 Preparation of IRS reports yes Pass Yes Pass
(1099) As currently provided
20
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Question Harris Methodist CIGNA
Number Question Response Score Res onse Score
32 Administer COB (benefit less Yes Pass Yes Pass
benefit method) As currently provided The birthday rule wilt apply to
COB
9
[34 Provide evidence of Yes Pass N/A Fail
insurability material and As currently provided
procedures and appeal for late
enrollees
35 Recover overpayments Yes Pass Yes Pass
As currently provided
Fail No Fail
36 Make available for City's No
inspection the plan's claim Would only have access in a Considered pwperty of CIGNA
administration records and files self funded environment on fully insured and minimum 3
I
premium accounts
37 Integrate utilization review Yes Pass Faii
elements into the claim As currently provided Will not integrate with an
%ayment system independent organization.
CIGNA healthplan is
responsible for utilization
management.
38 Coordinate claims system to Yes Pass Yes Pass
ensure that COBRA status is As currently provided.
noted and if a claim submission The City is not notified when
indicates other group coverage COB is applicable under a fully
City is notified insured product.
21
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Number ueation Response Score Response Score 1
39 Furnish City with a cumulative Yes Pass Yes Pass
eligibility report providing a For those who are denoted as S
detailed listing of all COBRA COBRA by the City
beneficiaries t
40 Cooperate with outside Yes Pass No Fail
purveyor contracted to perform As currently provided Eligibility and claim records
an on-site claims audit with consideration for legal and are considered property of
patient confidentiality CIGNA on fully insured and
restrictions minimum premium accounts
41 Investigate claims for a work- Yes Pass Yes Pass
related injury As currently provided
with consideration for legal and
patient confidentiality
restrictions '
i
42 Dedicate claim processors and No Fail No Fail
customer service staff solely to Will have a designated claim Will not dedicate claim
the City account processing unit and customer processors solely to the City,
service manager rater the City's claims will be
paid by a team well-versed in
the City's benefits who pay the
City and other accounts. j
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Question Harris Methodist CIGNA
Number Question Response Score Response Score
s
43 Hold City harmless for any and Yes
all errors and omissions on the As currently provided in the CIGNA will indemnify and
part of administrator, its existing agreement if the City hold the Employer, its officers,
I
employees or assigns will reciprocate and hold Harris directors, agents and or
harmless for any and all errors employees, harmless from and
and omissions on the part of against all extra-contractual
the administrator, its employees costs, damages, judgements,
or assigns. attorneys fees, expenses,
obligations and liabilities of
any kind or nature, which occur
as the result of CIGNA's gross
negligence or intentional f
wrongdoing in the payment of
valid claims within the terms
and conditions of the policy.
44 Perform the referenced No
administrative services for Bid does not include the Will administer COBRA
COBRA offering of COBRA admin. continuation for $2,500 set
services charge, $12 for initial bill and
$4 for subsequent bills,
Other services Agree to all as currently Agree to all, with the exception
provided, with the exception of of sending eligibility and claim
eligibility and claims data data to other vendors.
transmissions to other vendors.
The cost associated with these
processes would be negotiable.
23
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Question Harris Methodist CIGNA
Number uestion Response Score Res once Score
Pricing assumptions Agree, as currently provided. Agree with the following
Rates will not be affected by exceptions that are not included
the provision of eligibility data in the offer:
via tape or paper transmission. 1) Perform bank reconciliation
Paid claims data will be 2) Eligibility and claim review
provided in the formatted terminal
categories within the Claims 3) Tape of total incurred by
and Demographics Reports (see participant separate for medical ,
attachment 8 in bid). and dental. The tape will be
Eligibility and claim review provided with paid claims
terminal is currently under through March and by April 7
development, costs have not each year.
been confirmed at this time.
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City of Denton
Plan Design
i
i
Pert A. In-Network Covers e
Benefit Desired Coverage Level Harris Methodist Deviations CIGNA Deviations
Doctor Office Visits $15/PCP visit NO DEVIATIONS NOTED
$20/Specialist visit $15/Specialist visit
Hospitalization 20% of total charges 3
Emergency Services
- Within service area $15/PCP visit $15 office visit I
$201Specialist visit $50 Hospital ER outpatient
20% total charges, in-patient facility j
- Outside service area $15/PCP visit $50 non-participating i
$20/Specialist visit physician's office or urgent
20% total charges care facility
out-of-pocket Maximum $2,000 Individual
$4.000 Family
Mental Health
- Inpatient care 20% of total charges $50 copay/day
(30 day/cal. year max.)
- Outpatient care $20/visit
(20 visits per cal, year)
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Benefit Desired Covers a Level Harris Methodist Deviations CIGNA Deviations
Chemical Dependency
Lifetime max. Of three
(3) separate series of
treatments/member
- Inpatient care 200 of total charges
's
- Outpatient care $151PCP visit
$20/Specialist visit $15/Specialist visit
I
Prescription Drugs Mandatory generic ~
3
- Brand name $10
r
- Generic $5 $10
- Mail order brand name $15 $20
- Mail order generic $8 $20
Hearing, Vision, and Speech $15/PCP visit
Screening
Outpatient Surgery $50/Procedure (Physician) No copay/Proc. (Physician)
$100/Procedure (Facility) $75/Pros. (Facility)
Diagnostic Lab & X-Ray No copayment
Organ Transplantation 20% of total charges
$10,000 limit for organ
procurement
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Benefit Desired Coverage Level Harris Methodist Dev'-ations CIGNA Deviations
Annual Well Woman Exam $15/PCP visit $15/Specialist visit
Weil-child Care $151PCP visit
Routine Physical $151PCP visit
Immunizations and injections No copayment No copayment, if performed
in conjunction with an office
visit
Maternity (includes physician 20% of total charges Coinsurance applicable to
services for care, delivery, facility charges only
hospital visits and anesthesia)
Hone Health/Hospice $151visit No charge
Reimbursement based on type
of facility providing services
Skilled Nursing Facility 20% of total charges 60 consecutive days per
(60 days/cal. year) condition
3
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Part B. out-of-Nstwork Covera e
Desired Cover a Level Harris Methodist Deviations CIGNA Deviations
Benefit
Annual Deductible $1 500 Individual NO DEVIATIONS NOTED
, Family
30% of total charges
Doctor Office Visits $201visit (after deductible)
30% of total charges
(after deductible) E
es 30% of total charges {
(after deductible)
$3,000 Individual
ximum $4
$8,,000 000 Family Individual $9,000 Family
FMentalHealth
30% of total charges (after deductible)
- Inpatient raze(30 day/cal. year max.) (30 dayslcontract yr.)
`
Outpatient care S20/visit 50% of total charges (20 visits per cal, year) (after deductible)
(20 visits/contract yr.)
1
Chemical Dependency
Lifetime max. Of three
(3) separate series of
treatments/member
30% of total charges (after deductible)
- Inpatient care
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Benefit Desired Cover a Level Harris Methodist Deviations CIGNA Deviations
- outpatient care $20/visit 30% of toal charges
$20/Specialist visit (20 visitshontract yr.)
Prescription Drugs
- Brand name or Generic 30% of total charges
(after deductible)
- Mail order Not covered
Hearing, Vision, and Speech Not covered
Screening
Outpatient Surgery $100/Procedure (Physician) 30% of total charges
(after deductible)
$100/Procedure (Facility)
(after deductible)
Diagnostic Lab & X-Ray 30% of total charges
(after deductible)
organ Transplantation 30% of total charges
$10,000 limit for organ No limit for organ
procurement procurement
Annual Well Woman Exam 50% of total charges Not covered
(after deductible)
Well-child Care 50% of total charges Not covered
(after deductible)
5
FosterHiffffins
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Benefit Desired Covera a Level Harris Methodist Deviations CIGNA Deviations
Routine Physical 50% of total charges Not covered
(after deductible)
Immunizations and Injections 50% of total charges Not covered
(after deductible)
Maternity (includes physician 30% of total charges
services for care, delivery, (after deductible)
hospital visits and anesthesia)
Home Health/Hospice $20/visit 30% of total charges
(60 visit max/cal. year) (after deductible)
(40 visits/contract yr.)
Reimbursement based on type
of facility providing services
Skilled Nursing Facility 30% of total charges
(60 days/cal. year) (after deductible)
60 days/contract r.
6
Foster Hens
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?,0.80% 140789 oils A. FW*g
Irving, TX 75014-0784 AmAfixtw*ve
Fetne Heath Plans
(214;401-8500
Far (214) 401-Mi
April 15, 1996
Jay Savan
Footer Higgins
1601 Em Street
Suite 1800
Dallas, Texas 75201
RE: City of Denton
Dear Jay: '
Thank you for allowing Aetna Health Plans the opportunity to provide a quote for City of
Denton: however, we are respectfully declining to quote at this time.
After careful review of your request for a propoW, we have determined that we will be
unable to provide you with a cmnpetitive bid. If you feel that we an overlooking an
important factor pertaining to this case, or that on Aetna quote would be appropriate,
please call mo at your earliest convoaience,
Yout interest in pursuing a proposal through Aetna is greatly appreciated. We look
forward to working with you in the neat future,
Sincerely,
L d~
i{ellle A. Fleming
Account Executive
e,
i
FOUNDATION HEALTH
February 22, 1996
Mrs. Karen Hebard
Associate
A. Foster Higgins & Co.
1800 Thanksgiving Tower
1801 Elm Street
Dallas, Texas 75201-4742
RE: City of Denton, Bid No. 1869
Dear Karen:
Thank you for the opportunity to review the Request for Bid for the City of Denton.
Per our telephone conversation yesterday, we respectfully decline to quote based on the
following reasons:
1) Foundation Health, a Texas Health Plan cannot meet the NCQA accreditation criteria
required on F'age 3, "Basic Bid Requirements."
2) We are unabla to meet the Plan Design criteria in Exhibit 11, Section V111. Foundation
Health, a Texas Ii m1th Plan has not filed a POS plan in the State of Texas. Additionally,
our HMO network 's thin in the Dallas/Fort Worth area and we do not feel that we are
ready to market yet.
Thank you for your time and consideration of Foundatien Health, a Texas Health Plan.
Please retain us on your bid list for future RFP's.
Sincerely,
Shari L. Anders t
Major & National Account Executive
SLA/sa
e
s92SN. YW15T147R kVD.suitf 150 • ~FViNO.t%7" • 21417 WW • FAK1114)l+12194
axxLU+s ~ ~ o00 oa9sl
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FOUNDATION HEALTH
A rr1 A/ NrAIrN ALAN. INC.
February 22, 1996
Mrs. Karen Hebard
Associate
A. Foster Higgins & Co.
1 P',00 Thanksgiving Tower
1801 Elm Street
Dallas, Texas 75201-4742
RE: City of Denton, Bid No. 1869
Dear Karen:
Thank you for the opportunity to review the Request for Bid for the City of Denton.
Per our telephone conversation yesterday, we respectfully decline to quote based on the
following reasons:
1) Foundation Health, a Texas Health Plan cannot meet the NCQA accreditation criteria
required on Page 3, "Basic Bid Requirements."
2) We are unable to meet the Plan Design criteria in Exhibit II, Section VIII. Foundation
Health, a Texas Health Plan has not filed a POS plan in the State of Texas. Addiriom'ly,
our HMO network is thin in the Dallas/Fort Werth area and we do not feel that we are
ready to market yet.
Thank you for your time and consideration of Foundation Health, a Texas Health Plan.
Please retain us on your bid list for future RFP's.
Sincerely,
Shari L. Anders
Major & National Account Executive
SLA/sa
5525 N, 4ACARTM~,'q hYO. SUlrf130 • iAY~N6, TM 75071 • ply 1345000 • FAIT (21A} 51421 De
o2.200132 1! 2+011(1015(
April 18, 1996
Numana'
Karen Hebard, Associate Health Care Plans
A. Foster Higgins 6 Co., Inc.
1601 Elm Street, Suite -1800
Dallas, Texas 75201
I
Ro: Citj of Dcaton -Request for Bid No. 1860
We received a quote request from you on the above mentioned client
We will be happy to prov;ee you with a quote (subject to underwriting approval).
_Xr We will be unable to provide a quote for you due to:
_X_ Uncompetitive Rates
We appreciate the opportunity to quote on your company. If we can be of further assistance,
please let us know at 2141868-0101.
Respe
ff ully,
Gary /
Associate Sales Manager
JF:Irh
rs3 ~w y~
F
, `4.'4
Y
4
Y.
PRINCIPAL HEALTH CARE OF TEXAS, INC.
I Managed He34n Care Comoanv • a'ias C v s on
February 27, 1996
Karen Hebard
A. Foster Higgins and Co., Inc.
13Cb Thanksgiving Tower
1601 E!m Street
Dallas TX 75201-4742
Re: City of Denton Health insurance Program Request for Bid • Bid No. 1869
Dear Karen:
I
Thank you for sending Principal Health Care of Texas, Nc. the above referenced request for bid.
We respectfully choose not to Tyond to the bid request this year for the following reasons;
• PHC is in the start uS phase in the Dallas/Ft, Worth area, and will enroll our first HMO
members A ril_P 1, 1996. It is our desire to satisfy a number of commercial customers,
before responding to a municipality the size of the City of Denton.
• PHC, while committed to NuQA accreditation, has not scheduled a site visit in 1996,
and cannot accurately project the date that that will occur.
Principal Health Care has a large and marketable network in an eleven county service area, and
has a very good reputation for satisfying (PPO) customers. It Is our desire to distinguish
ourselves in this very competitive marketplace by our professionalism, our responsiveness and
our technical competencies, and hope you will invite us to respond to bid requests in the future.
V sincerely,
Dan Mulkey, CLU, ChFC
Marketing Director
DM1kml
iexas vingCommerce Tower Binding, 545 East John Carpenter Freeway- Suite 1560 a member or the
Irving, TX 75062-8110 l2141444-0533
8001405.7231, FAX 12141444.0534 finiuc4l
Croup
H
F
S. Todd Leveridge
Theftden tlal a Account Executive
The Prudential Insurance Company of America
North Texas operations
4100 Alpha Rata, Suits 400
Dallas, Texas 75244.4327
214.448.3819 Metro: 263.3861 Fax: 214448.3999
March 5, 1996
Mr. Jay Savan
A. Foster Higgins & Co., inc.
1800 Thanksgiving Tower
1601 Elm Street
Dallas, TX 75201-4742
RE City of Denton
Dear Jay,
We appreciate you giving Prudential the opportunity to quote on the City of Denton. After
carefully reviewing the bid specifications and analyzing the financial data, we have decided not
to participate in the bid process at this time. Our decision is based upon the following factors.
1. Financial - Over t1lhe past twelve months, the group's medical claims have run at $102.97
PMPM versus a premium of $107.81. As you are aware, this represents a 96.17% loss ratio.
The premium figure of $107.81 is currently 20% lower than our 1996 budgeted HMO rates.
Given the main objective of the city to lower costs, we feel it would be extremely difficulty
in a competitive situation to underwrite the group without incurring any considerable
losses.
2. Network Access - We admit that we have deficiencies in our network in Denton.
Currently, we will offer one hospital and six adult primary care physicians. Our initial
evaluation shows that our network access figures do not look favorable in this area.
3. Lack Of Fxnerieace With Public Entities - Prudential has had little exposure to public {
entities In the Dallas/Ft Worth area. We understand this has been a result of our
ineffectiveness in profitably underwriting these groups. We also understand most have
unique needs which we are not currently staffed to properly handle. 1
Jay, we thank you for giving Prudential the opportunity to participate in the bid process. I
hope you will agree that our decision, based upon the above factors will save you and your
client considerable time in evaluating a proposal which would not meet your objectives, if you
have any questions regarding our decision, please do not hesitate to give me a call.
Sincerely,
jl-~
S. Todd Leveridge
Account Executive
STL/vm
cc Ross Sanders, Jr.
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