MInutes November 3, 199280
CITY OF DENTON CITY COUNCIL MINUTES
NOVEMBER 3, 1992
The Council convened into the Work Session at 5:15 p.m. in the
Civil Defense Room.
PRESENT: Mayor Castleberry; Mayor Pro Tem Hopkins; Council Members
Chew, Perry, Smith and Miller.
ABSENT: Council Member Brock
1. The Council convened into the Executive Session to discuss
legal matters (considered action in Coats v. City of Denton and
considered legal action regarding Martin Luther King, Jr.
Recreation Center), real estate (considered sale of real property
along Carroll Blvd. to Dale Irwin and considered lease regarding
the City Hall Annex at 324 East McKinney), and personnel/board
appointments (considered an appointment to the Electrical Code
Board).
2. The Council received a report and held a discussion regarding
the architectural/engineering recommendations to repair the Martin
Luther King, Jr. Recreation Center and gave staff direction.
Bruce Hennington, Facilities Manager, stated that the Martin Luther
King, Jr. Recreation Center was constructed in 1988 and from the
beginning there were serious moisture problems with the building.
The original construction retention funds on this project were held
because of those moisture problems but since that time, a
settlement with the contractor had been reached. There continued to
be problems with moisture in the building with the wood floor
buckling, the carpet continued to be wet and there was mold in the
building. Council authorized a study for the cause of the moisture
problems, what would have to be done to resolve those problems and
the cost to permanently fix the building.
Brent Byers, Corgan and Associates, reviewed the contents of the
report presented to Council. The report included an executive
summary, a final report on the investigation of the facility,.soils
analysis by Rone Engineering, work previously done at the site to
try and remedy the problems, and Corgan's recommendations for each
area analyzed along with a cost analysis of each recommendation.
The following were the recommendations proposed by Corgan. (1)
Humidity and Moisture Reduction - with the current amount of water
present, Corgan was proposing to reduce the amount of moisture
under the building. In order to deal with the surface and
subsurface water, a proposed French drain would be installed at the
perimeter of the building to divert water away from the building.
(2) Under the Building - currently three sump pumps were under the
building which were intended to drain any water under the building
away from the building. Currently there was no drainage underneath
City of Denton City Council Minutes
November 3, 1992
Page 2
81
the building and the water was not getting to the sump pumps. It
was proposed to do grading under the building to allow the water to
drain to the sump pumps and to install a silt mechanism on each of
the sump pumps to keep the units from plugging up. A poly -
membrane was recommended to be installed under the building in the
crawl space to keep the water from coming up through the floor. It
was also recommended to spray foam installation on the bottom side
of the concrete floor slab which would decrease the temperature
differential between the floor and the soil underneath. (3) Wood
Floor Replacement - the recommendation would be to do the above
measures which would hopefully reduce the moisture under the wood
floor. After the above measures were completed, sand the floor to
eliminate the irregularities in the floor. Another option, which
was much more costly, was to remove the floor that was damaged and
replace that portion of the floor. Byers felt that it was
necessary to carry a contingency fund for any unforeseen situations
which might arise. This was not reflected in the report as no
determination had been made as to the amount needed. (4) Another
area which needed to be addressed was the control joints in the
exterior masonry. While cracks had been observed in the exterior
brick masonry it was felt that the cracks were cosmetic only and
not related to any building structural movement or failure. It was
recommended that the excess mortar in the control joints be removed
and replaced with an expansive sealant. This condition did not
have anything to do with the moisture problem with the gym floor.
(5) HVAC System - two different conditions existed in the building.
One was a condensation problem in which cool air was passing
through heating coils. When the cool air hit the heating coils,
water was condensing on the units which resulted with water on the
floor and rusting coils. It was recommended to have a bypass
mechanism which would allow the air in the cooling cycle to move
past the coils and not through them. The second problem dealt with
the actual moisture content in the building which indicated that
there was not enough air movement in the building and was
contributing to the problem of mold in the building. It was
recommended to install a bypass to the system to handle the
situation. A least cost - most cost scenario was presented for
Council consideration. Suggested repairs were prioritized and
phased, beginning with the most effective and crucial repairs.
Hennington continued that the repairs were in a step process and if
done in steps, not all of the steps might have to be done. He
presented options for Council to consider as to how to handle the
problems~ Step one would include completing Part A: Humidity and
Moisture Reduction of the Corgan Report, Step two would include
completing the gymnasium portion of Part B: HVAC System Alterations
of the Corgan Report, Step three would include uncovering and/or
repairing the circle vent on the north end of the building and Step
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City of Denton City Council Minutes
November 3, 1992
Page 3
four included evaluating the results of Steps one through three for
a six month period in order to determine if further steps needed to
be taken.
Lloyd Harrell, City Manager stated that staff recommendation was to
proceed with Steps one through four at a cost of $118,000 and then
evaluate those repairs for six months.
Consensus of the Council was to proceed with the staff
recommendation to proceed with steps one through four.
Council Member Miller asked how long it would be to do those four
steps.
Byers replied approximately 6 months for the work and the 6 months
for evaluation.
Council Member Chew asked that after all the steps had been
completed, would the problem be solved.
Byers indicated that he believed the problem would be solved.
Council Member Miller asked about the size of the proposed
contingency fund.
Byers indicated approximately $15,000 which might not have to be
used at all.
3. The Council received a report and held a discussion regarding
a staff recommendation for Philadelphia American Life's rate
renewal and plan design changes for the 1993 plan year and gave
staff direction.
This item was considered during Miscellaneous Matters from the City
Manager.
4. The Council received a report and held a discussion regarding
the platting process and gave staff direction.
This item was not considered and would be brought back to Council
at a future meeting.
5. The Council received a report and held a discussion regarding
nominating a candidate for possible appointment to the Appraisal
Review Board for the Denton Central Appraisal District and gave
staff direction.
City of Denton City Council Minutes
November 3, 1992
Page 4
83
This item was considered during Miscellaneous Matters from the City
Manager.
6. The Council received a report and held a discussion regarding
a survey received from the Denton Central Appraisal District in
regard to changing the District,s fiscal year and gave staff
direction.
This item was considered during Miscellaneous Matters from the City
Manager.
The Council convened into the Regular Session at 7:00 p.m. in the
Council Chambers.
PRESENT: Mayor Castleberry; Mayor Pro Tem Hopkins; Council Members
Perry, Smith and Miller.
ABSENT: Council Member Brock, Council Member Chew
1. Pledge of Allegiance
The Council and members of the audience recited the Pledge of
Allegiance.
2. The Council considered approval of the minutes of the Regular
Session of October 20, 1992.
Perry motioned, Miller seconded to approve the minutes as
presented. On roll vote, Miller "aye", Hopkins "aye", Smith "aye",
Perry "aye", and Mayor Castleberry "aye". Motion carried
unanimously.
3. Citizen Reports
A. The Council received a citizen report from Herman Wesley
regarding a City Charter review.
Mr. Wesley withdrew his request to address the Council.
4. Public Hearings
A. The Council held a public hearing to consider the
preliminary and final replats of Lots 26 and 27, Block 1; into Lots
26R-1, 26R-2 and 27R, Block 1, of the C. C. Bell Addition. The
site was located on the west side of Frame Street, approximately
350 feet south of Mingo Road. (The Planning and Zoning Commission
recommended approval by a 6-0 vote at it~ 10/14/92 meeting.)
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City of Denton City Council Minutes
November 3, 1992
Page 5
Frank Robbins, Executive Director for Planning and Development,
stated that the site was currently occupied by three detached
homes, one of which was constructed over a lot line created with
the original 1882 plat of the subdivision The replat under
consideration would put each existing house ~n an individual lot.
The Mayor opened the public hearing.
No one spoke in favor.
No one spoke in opposition.
The Mayor closed the public hearing.
Council Member Chew joined the meeting.
Hopkins motioned, Smith seconded to approve the preliminary and
final replats of the property. On roll vote, Miller "aye", Hopkins
"aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry
"aye". Motion carried unanimously.
The Council convened into Executive Session to discuss legal
matters.
The Council reconvened into Open Session.
5. Consent Agenda
Perry motioned, Chew seconded to approve the Consent Agenda as
presented. On roll vote, Miller "aye", Hopkins "aye", Smith "aye",
Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion
carried unanimously.
A. Bids and Purchase Orders
1. Bid #1425 - Wire, Cable, Conduit and Connections
B. Contracts
1. The Council considered adoption of an ordinance
approving an agreement between the City of Denton and the North
Texas Community Clinics, Inc.
City of Denton City Council Minutes
November 3, 1992
Page 6
85
No. 92-184
AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON
AND THE NORTH TEXAS COMMUNITY CLINICS, INC.; AUTHORIZING THE
MAYOR TO EXECUTE AN AGREEMENT APPROVING THE EXPENDITURE OF
FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE.
2. The Council considered adoption of an ordinance
approving an agreement between the City of Denton and HOPE, Inc.
authorizing the expenditure of funds for assistance to homeless
families.
No. 92-185
AN ORDINANCE APPROVING ANAGREEMENT BETWEEN THE CITY OF DENTON
AND HOPE, INC. AUTHORIZING THE EXPENDITURE OF FUNDS FOR
ASSISTANCE TO HOMELESS FAMILIES; AUTHORIZING THE MAYOR TO
EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS
THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE.
3. The Council considered adoption of an ordinance
approving an agreement between the City of Denton and Denton
Housing Authority to provide funding to TWU Cares, a primary health
care clinic.
No. 92-186
AN ORDINANCE APPROVING ANAGREEMENT BETWEEN THE CITY OF DENTON
AND DENTON HOUSING AUTHORITY TO PROVIDE FUNDING TO TWU CARES,
A PRIMARY HEALTH CARE CLINIC; AUTHORIZING THE MAYOR TO EXECUTE
THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFORE;
AND PROVIDING FOR AN EFFECTIVE DATE.
4. The Council considered adoption of an ordinance
approving an agreement between the City of Denton and Denton County
Friends of the Family.
No. 92-187
AN ORDiNANCE APPROVING ANAGREEMENT BETWEEN THE CITY OF DENTON
AND DENTON COUNTY FRIENDS OF THE FAMILY; AUTHORIZING THE MAYOR
TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS
THEREFOR; AND PROVIDING FORAN EFFECTIVE DATE.
5. Considered adoption of an ordinance approving a
funding agreement between the City of Denton and Fred Moore Child
Care Center.
City of Denton City Council Minutes
November 3, 1992
Page 7
No. 92-188
AN ORDINANCE APPROVING A FUNDING AGREEMENT BETWEEN THE CITY OF
DENTONkND FRED MOORE CHILD CARE CENTER; AUTHORIZING THE MAYOR
TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS
THEREFOR; A~ND PROVIDING FOR AN EFFECTIVE DATE.
6. The Council considered adoption of an ordinance
approving an agreement between the City of Denton and Services
Program for Aging Needs, Incorporated.
No. 92-189
AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON
AND SERVICES PROGRAM FOR AGING NEEDS, INCORPORATED;
AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FORAN EFFECTIVE
DATE.
7. The Council considered adoption of an ordinance
approving an agreement between the City of Denton and Denton City-
County Day Nursery.
No. 92-190
AN ORDINANCE APPROVING ANAGREEMENT BETWEEN THE CITY OF DENTON
AND DENTON CITY-COUNTY DAY NURSERY; AUTHORIZING THE MAYOR TO
EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS
THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE.
6. Ordinances
A. The Council considered adoption of an ordinance accepting
competitive bids and awarding a contract for purchase of materials,
equipment, supplies or services. (5.A.1. - Bid #1425)
The following ordinance was considered:
No. 92-191
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A
CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR
SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE;
AND PROVIDING FOR AN EFFECTIVE DATE.
Perry motioned, Smith seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
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November 3, 1992
Page 8
87
B. The Council considered adoption of an ordinance
authorizing the Mayor to execute an agreement between the City of
Denton and John West for services in assisting City to research and
prepare a revised set of Local Rules for City's Civil Service
Commission.
Tom Klinck, Human Resources Director, stated that the item
requested a contract with John West to provide assistance in
revising and updating the Commission's local rules and regulations.
The agreement would provide the City Attorney, Fire Chief, Police
Chief and Director of Civil Service with expert advice and
assistance in completing this project. Denton's Civil Service
Commission local rules were last updated in 1980 and since that
time, several legislative changes to the laws governing police
officers and fire fighters had occurred.
The following ordinance was considered:
No. 92-192
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT
BETWEEN THE CITY OF DENTON AND JOHN WEST FOR SERVICES IN
ASSISTING CITY TO RESEARCHAND PREPARE A REVISED SET OF LOCAL
RULES FOR CITY'S CIVIL SERVICE COMMISSION; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE
DATE.
Hopkins motioned, Chew seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
C. The Council considered adoption of an ordinance
authorizing the Mayor to execute a contract between the City of
Denton and David M. Griffith and Associates, Ltd. relating to
services to perform a general management survey and study of City's
Fleet Services Department's motor pool and garage divisions.
John McGrane, Executive Director for Finance, stated that the
agreement would allow the City to enter into an agreement with
David M. Griffith and Associates to perform an overall management
study of both the motor pool and the garage facilities. It was
anticipated that the amount of the contract would not exceed
$20,500 for services and $3,500 for travel.
Mayor Pro Tem Hopkins asked if the last item on the agenda and this
item were provided for in the budget. It would not be necessary to
look fo~ money, for th~ ~Qntra~t.
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City of Denton City Council Minutes
November 3, 1992
Page 9
McGrane replied that the items had been budgeted for in last year's
budget and the funds had been carried over.
Council Member Perry questioned the travel expenses at $3500.
McGrane replied that the firm was located in Arlington and as the
study was estimated to be a very detailed study, the fee would not
be excessive.
The following ordinance was considered:
No. 92-193
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT
BETWEEN THE CITY OF DENTON AND DAVID M. GRIFFITH AND
ASSOCIATES, LTD., RELATING TO SERVICES TO PERFORM A GENERAL
MANAGEMENT SURVEY AND STUDY OF CITY'S FLEET SERVICES
DEPARTMENT'S MOTOR POOL AND GARAGE DIVISION; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE
DATE.
Hopkins motioned, Smith seconded ~o adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
D. The Council considered adoption of an ordinance
authorizing the City Manager to execute an agreement with the Texas
Department of Transportation for installation of traffic signal
controllers on FM 2181 at its intersection with Interstate Highway
35E, Oak Meadow Drive, and Londonderry Lane in Denton.
City Manager Harrell indicated that the Council had seen this
ordinance several times and each time the City had approved the
contract and returned it to the State, the State had made minor
modifications. Staff was again recommending approval of the
contract.
The following ordinance was considered:
No. 92-194
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION FOR
INSTALLATION OF TRAFFIC SIGNAL CONTROLLERS ON FM 2181 AT ITS
INTERSECTION WITH INTERSTATE HIGHWAY 35E, OAK MEADOW DRIVE,
AND LONDONDERRY LANE IN DENTON; AUTHORIZING THE EXPENDITURE OF
FUNDS THEREFORE; AND DECLARING AN EFFECTIVE DATE.
City of Denton City Council Minutes
November 3, 1992
Page 10
89
Chew motioned, Smith seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
E. The Council considered adoption of an ordinance releasing
Larry D. Hemphill, Elizabeth A. Hemphill and Virginia E. Bridges
from the obligations contained within the escrow agreement in lieu
of performance bond and the agreement providing for deferred street
improvements for perimeter paving on Masch Branch Road which they
executed on July 31, 1987, authorizing the party named therein as
escrow agent to release funds held pursuant to these agreements.
City Manager Harrell indicated that Council had discussed this item
several weeks ago during a work session and at that time directed
staff to have the formal agreement drawn up to release the funds.
The following ordinance was considered:
No. 92-195
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, RELEASING LARRY D.
HEMPHILL, ELIZABETH A. HEMPHILL AND VIRGINIA E. BRIDGES FROM
THE OBLIGATIONS CONTAINED WITHIN THE ESCROW AGREEMENT IN LIEU
OF PERFORMANCE BOND AND THE AGREEMENT PROVIDING FOR DEFERRED
STREET IMPROVEMENTS FOR PERIMETER PAVING ON MASCH BRANCH ROAD
WHICH THEY EXECUTED ON JULY 31, 1987, AUTHORIZING THE PARTY
NAMED THEREIN AS ESCROW AGENT TO RELEASE FUNDS HELD PURSUANT
TO THESE AGREEMENTS, AND DECLARING AN EFFECTIVE DATE.
Hopkins motioned, Chew seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
7. Resolutions
A. The Council considered approval of a resolution
postponing the regular Council meeting of December 1, 1992 to
December 8, 199.2.
City Manager Harrell indicated that the changing of the meeting
would accommodate the Council attendance at the NLC annual
conference on December i in New Orleans.
The following resolution was considered:
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City of Denton City Council Minutes
November 3, 1992
Page 11
No. R92-072
A RESOLUTION POSTPONING THE REGULAR COUNCIL MEETING OF
DECEMBER 1, 1992 TO DECEMBER 8, 1992; AND PROVIDING FOR AN
EFFECTIVE DATE.
Hopkins motioned, Smith seconded to approve the resolution. On roll
vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
B. The Council considered approval of a resolution adopting
a personnel policy relating to nepotism.
Tom Klinck, Director of Human Resources, stated that this was a
minor change to current policy. The revision would include that an
applicant for a job in a department which reported to or provided
staff assistance to a City board or commission would be ineligible
for employment in that department if the applicant was related
within the second degree of affinity or the third degree of
consanguinity to any member of the board or commission. It also
included that if a relative of an existing employee was appointed
to a board or commission, the employee would not be in violation of
the policy.
The following resolution was considered:
No. R92-073
A RESOLUTION ADOPTING A PERSONNEL POLICY RELATING TO NEPOTISM;
AND PROVIDING AN EFFECTIVE DATE.
Hopkins motioned, Smith seconded to approve the resolution. On
roll vote, Miller "aye", Hopkins "aye", Smith "aye", Chew "nay",
Perry "aye", and Mayor Castleberry "aye". Motion carried with a 5-
1 vote.
C. The Council considered approval of a resolution accepting
a grant offer from the Texas State Library and Archives Commission
for constructing a public library facility.
Joella orr, Library Director, stated that the Library Board had
recommended that the grant be accepted. Since the grant had been
awarded and the application approved, the contract needed to be
signed if all compliances could be met. In order to keep the grant
intact, actual construction needed to be started no later than
September 1, 1993.
City of Denton City Council Minutes
November 3, 1992
Page 12
City Manager Harrell stated that accepting the grant would reserve
the amount of money and not lose it to the State. Council had
asked the staff to return with a comprehensive plan as to what to
do with the money. Accepting the grant was merely to reserve the
money and not to obligate the beginning of any construction.
Dorothy Adkins, Chair-Library Board, stated that this project had
been worked on since 1986 when the voters authorized $1 million in
bonds for the library. $400,000 of that money had been sold and
less than half of those funds had been spent by the Library for
renovation of the current library. The library site had been
chosen in conjunction with a new fire station. $600,000 from the
bond money and $200,000 from the grant would be used for the
building of the new branch library. She wanted a goal for the
community to build this library.
The following resolution was considered:
No. R92-074
A RESOLUTION ACCEPTING A GRANT OFFER FROM THE TEXAS STATE
LIBRARY AND ARCHIVES COMMISSION FOR CONSTRUCTING A PUBLIC
LIBRARY FACILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
Hopkins motioned, Smith seconded to approve the resolution.
Council Member Perry indicated that accepting the grant would be in
keeping with a crucial service to expand library services in the
community. It was a commitment to continue to provide important
services to the citizens of Denton.
Council Member Chew stated that he fully supported the efforts of
the library services. Libraries were a vital need in the
community.
On roll vote of the motion, Miller "aye", Hopkins "aye", Smith
"aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye".
Motion carried unanimously.
8. The Council considered an appointment to the Downtown Advisory
Board.
Mayor Pro Tem Hopkins motioned, Smith seconded nominated Bebe
Olufsen to the Downtown Advisory Board. On roll vote, Miller "aye",
Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor
Castleberry "aye". Motion carried unanimously.
City of Denton City Council Minutes
November~3, 1992
Page 13
9. Miscellaneous matters from the City Manager.
The Council returned to the Work Session items which had not been
discussed earlier.
Work Session Item 3. The Council received a report and held a
discussion regarding a staff recommendation for Philadelphia
American Life's rate renewal and plan design changes for the 1993
plan year and gave staff direction.
Tom Klinck, Human Resources Director, stated that current program
began last year with Philadelphia American Life. The plan year
renewal would be effective January 1, 1993 with a 15% increase in
the rate and plan design changes. In order to keep the rate
increase within the budgeted 15% there would be a need to reduce
plan benefits by 22% of the current level.
Dave Palatiere, Coopers and Lybrand, stated that over the last
several months staff had been working on plan design changes in
order to stay within the budgeted 15% increase. He detailed a plan -
financial status. Paid premiums, to date were $1.7 million, paid
claims to date in the medical area were $1.5 million and pharmacy
claims were $127,000 for a total of $1.647 million for the first
nine months on a paid basis. On an incurred basis, which was the
time lapse of approximately two to three months, medical claims
were approximately $2 million and pharmacy was $156,000 for a total
of $2.2 million. The loss ratio, which was the relationship
between premiums to paid claims, on a paid basis was 96% which
should have been at an 80% level. An excellent trend rate had been
built into the financial model based on the contractual
arrangements made with the two local hospitals and the many
physicians on the plan. When the incurred ratio and the dollar
amount needed to process the plan through the trend rate was looked
at, an initial 48% increase was discussed. If a 48% increase was
needed to fund the current level of benefits and only a 15% rate
increase was budgeted, that 15% increase would purchase 78% of the
current plan benefits. In order to purchase 100% of the benefit
plan, benefits' would have to be reduced by approximately 22%.
Palatiere detailed what happened during the year with the plan. He
compared the City usage of insurance compared to national norms.
Admissions per 1,000 on the national level were approximately 72
while the City had 104. Nationally the patient days per 1,000 was
435 while the City's was 539. The average length of stay
nationally was approximately 6.0 days and for the City was 5.2.
This gave a general feeling that the plan was over utilized.
Areas where the most money was spent was in ~h~ ar~a of tumors,
cancers, mental/nervous disorders. Palatiere detailed physician
utilization. He presented an example of a family practice
City of Denton City Council Minutes
November 3, 1992
Page 14
93
physician who was paid $52,110 for the first nine months of the
plan with an average paid per patient cost was $434. There seemed
to be a practice pattern situation that while there was an
agreement on the schedule of payments that a physician could
charge, additional charges were being charged per patient to add to
the costs. Palatiere reviewed the drug program utilization for the
first nine months. Through August, 71% of the prescriptions were
brand drugs while 29% were generic. It was more costly to use the
brand drug versus the generic drug. In the demographics area, there
was an increase in the family usage over any other category with
the next increased category being employee and spouse.
Council Member Chew asked if there was not some type of plan
history going into the new plan which would have indicated a trend
from the previous program.
Palatiere replied that the problem with the Sanus bid was that it
was an HMO which severely limited the number of providers. When
the majority of the individuals were in the HMO it was very
difficult to try and determine what would happen when the HMO was
removed.
Council Member Chew stated that he was referring to the claim
history and not the providers. The claim history should have had
some bearing on the new program.
Palatiere stated that the number of providers did impact the claim
history. A limited provider network would have a bearing on the
claims as it reduced utilization. He could not foresee how the
change from limited providers to the current system would affect
utilization.
Klinck stated that when the City was self-insured, claims were
approximately $1.6-1.7 million. When the City went to the Sanus
program and limited access especially in the specialist area,
claims dropped to approximately $1.4 million for several years.
The PALICO system eliminated that gate keeping system and expanded
the network of doctors. PALICO could really only work on current
enrollment and the mix with Sanus.
council Member Chew stated then that PALICO did not have the five
year claims history which would have noted some of those trends.
Klinck replied correct.
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City of Denton City Council Minutes
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Palatiere detailed the proposed plan design changes:
1. Reduce the current Life Time Maximum from an unlimited
amount to $1 million
2. Implement a pre-existing condition limitation
Change the drug prescription policy from a 3/10 copay and
$100 deductible to a 5/15 copay and $150 deductible
4. Implement a managed mental health/drug abuse program
Council Member Perry stated that by including all the various types
of providers, the City conformed with the Texas State Freedom of
Choice law which was very important. While it might result in a
small increase in utilization of the program, it gave the employees
the benefit of using the provider they wished to use.
Mayor Castleberry asked why the City was twice the national
average- was the City plan too liberal.
Palatiere replied yes. The options were to either limit access
through limiting providers or provide higher quality and run the
risk of higher utilization.
Mayor Castleberry asked how the situation were handled if one of
the employees had mental problem.
Palatiere replied that the employee could go to any practitioner,
private physician or specialist he chose.
Mayor Castleberry stated that the employee could select whether to
go to a mental health provider and not go through a medical doctor.
Palatiere replied that that was correct.
Mayor Castleberry stated then if an employee only thought he needed
to see a mental health provider he could go directly to that
provider and not have a referral from a medical doctor.
Palatiere stated that the proposed change would require the
employee to make a phone call to get authorization to see the
doctor of his choice.
Council Member Perry stated that State law required that the
patient have the freedom of choice and selection of what doctor to
see.
City of Denton City Council Minutes
November 3, 1992
Page 16
95
Palatiere replied that under the proposed program, the individual
would be required to make a call prior to seeing a selected doctor
and would work out a practice plan for seeing the doctor.
Klinck stated that on the Sanus program before an individual could
go to a specialist he had to see to a general doctor first. Now the
employee could go directly to the specialist.
Mayor Castleberry indicated that most health plans did not provide
this kind of service.
Mayor Pro Hopkins stated that the City's health plan was tracking
what was happening to everyone else. There was no difference
affecting smaller businesses and larger businesses.
Palatiere continued with the proposed plan design changes:
5.
e
Change the annual deductible from $250 to $500 for
network and $500 to $1,000 non-network; change the
coinsurance from 100/70% to 100/60% non-network; change
the out-of-pocket maximum from $1,000 to $2,000 for
network and $5,000 to $6,000 for non-network
Change the physician payment from a $15 copay 100%
coverage to $15 copay plus a $50 copay for any other
services
The $15 copay covered office visits only
The $50 copay covered diagnostic tests, allergy tests,
etc.
Council Member Miller asked if all physicians unbundled the costs
in order to administer that type of a program.
Palatiere replied that there were enough physicians who did
unbundle the costs to administer such a program.
Council Member Miller asked if all physicians on the program would
have to play by the City's rules if they wished to continue to be
a provider under the plan.
Palatiere replied yes. They did not want any one gouging the
system.
Klinck stated that this was not an indication that the physicians
were practicing medicine inappropriately. This was perhaps an
indication that the way some physicians practiced was too expensive
for the City for them to remain on the ~y~tem.
City of Denton City Council Minutes
November 3, 1992
Page 17
Palatiere reviewed future considerations for the program which
included wellness program issues, a review of the levels of
coverage changes with the intention of distributing costs based
upon utilization of services, and a Flex (125) feasibility
analysis. Alternative plan options included sending preliminary
RFP's to Sanus, Kaiser, and Metropolitan. Sanus recommended a 15%
increase with limited physicians. Metropolitan declined to bid and
Kaiser indicated that they had only limited doctors in the area.
Klinck reviewed the open enrollment schedule with an effective date
for the new plan of January 1, 1993.
Consensus of the Council was to proceed with staff recommendation
for plan design changes.
Work Session Item 5. The Council received a report and held a
discussion regarding nominating a candidate for possible
appointment to the Appraisal Review Board for. the Denton Central
Appraisal District and gave staff direction.
John McGrane, Executive Director for Finance. stated that there had
been a request for nominees to the Appraisal Review Board. The
Board reviewed all the appeals on disputed property on an annual
basis primarily during the months of May and June. It was a
significant amount of work and very time consuming. The nominees
were limited due to that type of time schedule. Staff had
attempted to secure some names to recommend to Council including a
former Council Member and former City employees but have not been
able to discuss with them if they would be interested in serving.
Mayor Castleberry indicated that the City had until December 1 to
proposed any nominees to the District which would allow for an
additional meeting to consider any possible nominees.
Consensus of the Council was to place this item on a future
meeting.
6. The Council received a report and held a discussion regarding
a survey received from the Denton Central Appraisal District in
regard to changing the District's fiscal year and gav~ ~taff
direction.
John McGrane, Executive Director for Finance, stated that the
Appraisal District had made a request for preliminary indication to
see if the jurisdictions would have a problem with the changing of
their budget year. If the District decided to pursue tha~ change,
Council would have to approve a resolution in the future.
City of Denton City Council Minutes
November 3, 1992
Page 18
97
Consensus of the Council was to not oppose the change.
Lloyd Harrell, City Manager, presented the following items for
consideration under Miscellaneous Matters from the City Manager:
A. The next meeting was a planned study session on proposed
revisions to the sign ordinance. A public hearing was planned for
November 17 and final consideration on December 8. The notice of
the public hearing had been given to the Denton Record-Chronicle
but it had not been published. As there was a 15 day requirement
on a public hearing notice, the public hearing could not be done on
November 17. The public hearing was not lengthy at the Planning
and Zoning meeting and staff was suggesting holding the briefing on
November 10, have one official item on November 24 which would be
the public hearing. The Council could begin employee evaluations at
5:15 p.m., have the public hearing at 7:00 p.m. followed by the
completion of the evaluations after the public hearing.
Mayor Pro Tem Hopkins stated that the schedule would work if the
feelings of the Council were along the same lines as the Planning
and Zoning Commission. If the feelings of the Council were not on
the same lines at the Planning and Zoning Commission then the
schedule would not work.
City Manager Harrell suggested that Council could start advertising
for the public hearing to be during the work session on the 24th
and if necessary could postpone the public hearing if there were
unresolved issues.
Council Member Chew indicated that he did not want to be rushed
during the discussions of the proposed revisions and wanted to take
as much time as was needed. He did not feel it would be appropriate
to advertise for the public hearing until Council had a chance to
review the proposed revisions.
Consensus of the Council was to proceed with the work session item
for the proposed changes to the sign ordinance on the November 10th
meeting but to'not advertise for a public hearing to be held on
November 24th.
10. There was no action taken on Executive Session items discussed
during the Work Session Executive Session.
11. New Business
There were no items of New Business suggested by Council Members
-- for future agendas.
98
City of Denton City Council Minutes
November 3, 1992
Page 19
12. The Council did not meet in Executive Session during the
Regular Session.
With no further business, the meeting was adjourned at 9:32 p.m.
CITY~ECRET~RY
CITY OF DENTON, TEXAS
ACC000C5