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Minutes November 23, 1993424A MINUTES CITY OF DENTON CITY COUNCIL November 23, 1993 The Council convened into a Special Call Session on Tuesday, November 23, 1993 at 5:15 p.m. in the Civil Defense Room. -PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members Brock, Chew, Cott, Perry, and Miller. ABSENT: None following: The Council convened into the Executive Session to discuss the Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071 ae e considered claim against GTE relating to franchise payments. C°~SlderedlaCtion in the matter of the application of Bolivar Water Supply Corporation for an amendment to CCN No. 11257; Docket Nos. 9824-C and 9447-C of the Public Utilities Commission. Bo 3. Considered settlement in Roebuck V. City of Denton. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072 Personnel/Board Appointments -- Under TEX. GOV'T CODE Sec. 551.074 Held.a discussion' regarding the.hiring of-a Second Assistant Municipal .Judge. Following the Executive Session, Miller motioned, Brock seconded to adjourn to the City Council Chambers to accommodate those in attendance of the meeting. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 2. The Council considered adoption .of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of employee group health insurance to Harris Methodist Health plan; providing for the administration of the contract; and providing for the expenditure of funds therefor. Miller motioned, Chew seconded~.con~ider Agenda Item #4. On roll vote, Brock "aye", cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and.~,Ma¥or Castleberry "aye". Motion carried unanimously. .' ..... 424B City of Denton City Council Minutes November 23-, 1993 Page 2 4. The Council considered approval of a resolution adopting Policy No. 107.08 "Contribution Rate for City Employee Benefit Allowance". Miller motioned, Chew seconded to adopt a policy of making the same contribution by the City for each City employee for employee coverage in the approved health care plan and of considering and funding any other health related programs such as wellness, smoking cessation, etc. based on their own individual merits. Council Member Cottindicated that there were individuals preseD~ who wanted to discuss that issue. Miller motioned, Chew seconded to amend his original motion by denying the resolution and to adopt the policy he previously stated. Mayor Castleberry stated that there were Speaker Cards received on this item. Ken Gold stated that he supported Council Member Miller's motion. Bob Stalder stated that he agreed with Option Four and with Council Member Miller's motion. Mayor Pro Tem Smith asked if this meant that Council would discuss the wellness program at another time or disregard the wellness issue. · Council Member Miller stated that he was not asking to disregard the issue. He felt that whatever would be done for wellness and funding for wellness should be independent of what would be done for the health plan. Mayor Castleberry stated that this would also concern the use or non-use of tobacco products. Council Member Miller replied that tobacco use would be based on a cessation program and not to take money out of or into the insurance plan to try and resolve that issue. He'felt that these were complex issues. The wellness program was very important and should be supported but there were ways to support and fund the progran which would not come directly out of health plan. Over a period of time the issue needed to be worked on but if it were tied in withth~health~plan,,to~.,manyproblems could be issues. Each issue was important but should be separate. 424D 424C City of Denton City Council Minutes November 23', 1993 Page 3 Ralph Harpool stated that he had been a city employee for over 19 years and on the insurance committee for four years. Insurance was a national· problem but to confuse the fact of changing insurance companies with wellness programs would be too great an issue. There was a need to address the tobacco issue. He used the City of Denton recreation centers on his own. A more important issue was to inform employees of the changes in the insurance and to not confuse the issue with the wellness program. He would like to see more money spent on the recreation centers as the equipment was very old and in poor condition. He agreed with Council Member Miller's motion that insurance and wellness needed to be separate.~.~.~i Council Member Perry asked about the impact of a favorable vote on Miller's motion.. ~Would. it,have,.an¥, bearing on the contract with Harris Methodist. City Manager Harrell stated that the policy and Council Member Miller's motion did not have any direct bearing on the health insurance proposals the Council would be considering later in the meeting. It did have a bearing on the type of contribution the City could make towards employee health insurance. Adopting the policy as presented and written would allow under Agenda Item #5 to set a differential rate for those employees who were non-tobacco users or who participated in the wellness program. Council Member Miller's motion did not allow for that-differential. .The rate would be a uniform contribution for all employees. Mayor Castleberry asked how this would affect the budget. City Manager Harrell stated that directly it would not affect the budget. There were enough funds budgeted to purchase the health insurance program discussed. The only implication to the budget dealt with the wellness issue. Initially $19,000 had been set aside for wellness and Council had tentatively agreed to supplement that with another $17,000. That was under the assumption that some of the differential rates would bring, in the $17,000. If Council Member Miller's motion were adopted, staff would return the wellness program back to Council to decide on what level to proceed. Mayor Pro Tem Smith asked if there were be any effect on setting the rates now. city Manager Harrell stated that the wellness issue could be considered separately~and~.would.have no effect on the rates ~ City of Denton City Council Minutes November 23, 1993 Page 4 On roll vote of Council Member Miller's motion, Brock "aye" Cott "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Council returned to Agenda Item #2. 2. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of employee group health insurance to Harris Methodist Health plan; providing for the administration of the contract; and providing for the expenditure~of funds therefor ~, ~ .~ Tom Klinck,,Director of Human Resources, stated that Council had requested ~staff to investigate the feasibility of adding Denton Regional Medical Center and other providers to the network system. Staff was able to confirm that there was an exclusive contract between HCA and Harris Methodist. This exclusive contract had a number of months remaining and in order to work through those issues, the addition of Denton Regional Medical Center would probably not happen in. the first plan year and may not happen in the second plan year. Harris had added 10 doctors to the plan and had indicated that any Denton primary care physician would be added to the plan if they met the credentialing process and standards established by Harris. If an employee chose the preferred plus program, he could go to any hospital or doctor he chose for covered expenses but with different coverage. Council Member Cott stated that there were 125 doctors in Denton and so far only 50 on the network. The only additional doctors Harris Methodist was willing to take would be primary care doctors with a maybe for the second hospital. If Denton were not ca~reful, there may be built up a Fort Worth hospital and Fort Worth doctor base. There were too many doctors not on the network. Klinck replied that it was anticipated that 50% of the employees would chose the preferred plus program in which they could go to any doctor or hospital of their choice. There were approximately 50 doctors in the network and that was the way a managed care plan worked. Council Member Cott felt that the Denton doctors had a problem with paying their taxes to pay for a, City health program to pay a doctor in Fort Worth. Council Mem~Brock..,,aske~.ho~long the HCA exclusive ~n~&~ .... lasted. ~' ~ 424E City of Denton City Council Minutes November 23, 1993 Page 5 Mike Clark, Harris Methodist, stated that it was in effect until the Spring of '95. Council MemberBrock asked how much an individual on the plus plan would pay if he went to a doctor not on the network. Klinck replied that there would be a $20 copay which would go towards a $500 deductible. After the deductible was met, the employee would pay a $20 copay. The first $500 of charges would be the employee's responsibility. After meeting that deductible the reimbursement rate would be 70/30 for~ any tests, surgery or.~'~ ~ hospital charges. There would also.be a $4,000 out-of-pocket maximum. Council Member Milier~stated that On page two of the baCkup it stated that any primary care physician in Denton who met the Harris Methodist credentialing standards may be added to the network. He asked if that meant that any family practitioner, pediatrician, or anyone in Denton could be a member if they agreed to Harris' terms. Mike Clark, Senior Vice-President of Marketing for the Harris Health System, stated that it was very important to Harris to offer quality health care with stable doctors. They had less than a 1% turnover of physicians for the last three years, Any physician could submit a letter of interest to'the company.~ The company took that letter and determined if there was a need for that specialty in the geographical area. !There~currently was a need for primary care physicians which was defined as family practice' or' general practice,.pediatrics'or internal medicine. If there were a need in the area for one of those types of doctors, they would be sent a full application. An investigation of the doctor's credentials would be made and then.the application would be forwarded to the Standards and Selection Committee which was made up of doctors. If the doctor met the credentials and there was a need for that particular specialty, Harris would then extend a standard contract to that doctor. Once a contract was signed, members of the plan would be able to go to that physician. To change a primary care physician, an individual only had to call and the change would be effective the next month. Council Member Miller stated that the staff backup materials indicated tha~.ifthere~epr~imary~ care physicians who met the credentialing process, there was room for them to be added to the network. Mr. Clark had indicated that they could be added if they were needed. He~asked~?a~what~point was the determination made that more physicians were not needed. 424F City of Denton City Council Minutes November 23, 1993 Page 6 Clark replied that as of today, there was a need for primary care physicians in this area. If they went through the process and met the credential criteria, the process could take three to four months. Some specialties were not needed, however, some specialties were open in this area. Council Member Miller asked if the determination for numbers of specialists was based on employees receiving care in Denton or receiving care in Dallas/Fort Worth. Clark replied that. it was~based on Denton. There were population~.~ zones determined and Denton was a single zone. In order to build a grid, ce£tain specialists would serve a certain amount of individuals~which was based on population. Council Member Miller asked Clark to address the issue of adding the second hospital as it was a major concern cf the Council for a variety of reasons. Clark replied that this was a concern of Harris also. When Harris first came to Denton approximately 18 months ago, the individual who was managing the provider relations lived in Denton. She had an affiliation with another managed care company and was a nurse who worked in HCAand who believed in the quality of that hospital. Harris did not need two hospitals at the time and did not have many participants in Denton at that time. Harris felt it would take two to three~year~ to build a network in Denton and after those years, would reevaluate the exclusive contract with HCA. Harris would honor~ the contractual relationship with .HCA which would be up in. the Spring of 1995. Harris had had some ongoing dialog with HCA regarding the issue. Both hospitals did not offer identical services. HCA might be willing to allow Denton Regional access to those employees with needs which they did not perform. Council Member Perry stated that those physicians who wished to be added to the network would not encounter obstacles other than the standard credentialing process. Clark replied, that that was correct. The physicians would need to go through the process. Some physicians did not want to be in managed care. There were no restrictions to taking primary care physicians if. they met the s%anda~ds and were approved in the process. Council Memher~,:Perr~ state~,.that there was stall room for certain,..,:~.,~ ~ specialists. ~ 424G City of Denton City Council Minutes November 23', 1993 Page 7 Clark replied that some specialties would not be added while some would be added. Any specialty doctor could send a letter of interest to the company and it would be addressed. If that particular specialty were open, the physician would be invited to proceed through the process. Council Member Perry questioned the number of mental health professionals on the network. There were four mental health specialists on the network and asked if there were room for more. Clark replied that in the mental health.area, Harris had a separate.~' type of network which was an access to that network. It was a company which Harris owned which had their own physicians. Harris allowed the primary~care~physi¢ian to call the access people to direct the patient to a physician. If there were no providers in this area, the access people could lock at that issue. Council Member Cott stated that he was concerned about the hospitals and the doctors. He did not want to export doctors and did not want to export hospitals. He did not want one hospital telling the City what to do. council Member Brock asked what would happen to the employee who needed a certain specialty and with the one hospital, that specialty was not available. Clark replied-~that, those were.issu~swhichprovider relations would research. One criteria for selecting a specialty was that the specialty would be out of two offices. Mayor Castleberry stated that after reviewing the list of primary care and specialty~ doctors and the. fact that there was the possibility of some type of arrangement with both hospitals, it appeared that this was a good bid with some limitations. Mayor Pro Tem Smith stated that the doctors had some choice in the matter. They could participate if they desired but could not expect all doctors to participate. Council Member Miller asked how the figures were derived that 50% of the employees would chose the plus program. KIinck replied that research was used from when the City had a similar program under a prior HMO company plus the premium structure. The projecti~ns~were~.based on trend. There were a .... number of employees who wanted the freedom of choice. He reviewed the criteria used in evaluating the health insurance program . proposals which included total plancost, rate guarantees, schedule. 424H City of Denton City Council Minutes November 23', 1993 Page 8 of benefits, network providers and service and administration. Palico was not selected as it had the highest overall cost, no rate guarantees beyond one year, higher copays, deductibles, out-of- pocket maximum's, etc. Employees would initiate and be responsible for specialty referrals and there had been some service and administration difficulties. Aetna had a higher overall cost than the Harris bid, had no rate guarantees b~yond one year, limited pharmacy access with no mail order prescriptions and there was a concern about stability of network providers with no mental health providers except through the network, The Harris program provided the lowest overall...total.~plan~..cost,~ offered a rate guarantee fo~ .?~ HMO for 1994 and 1995, had an improved plan design, a stable network, an'in-Denton representative with positive references. Staff was recommending that the City enter into contracts with Harris Methodist. Mayor Castleberry indicated that there were speaker cards on this item. Joseph Ialenti stated that he was a member of the Employee Insurance Committee and the Wellness Committee. The issues these Committees were dealing with were very complex. He was encouraged with the various methods of employee participation. Steve Woerner, Denton Regional Hospital, stated that he was concerned at the prospect of losing business and how that would impact the employee-owners ofthe hospital. He wasalso concerned about how this would affect the community. He was encouraged with the possibility of doing heart issues for the Harris plan. From a business point of view, the proposal would be saving taxpayers money but he also lost a contract with the City. Perhaps next year they could work together to provide the maximum quality and maximum provider base. From his perspective the City Council had gone far beyond what they had to do to try and work with his organization. Ken Gold stated that he was in support of the Harris contract as it had some good points. The Council had set aside over $2 million for insurance and one option might be to use some of that money to work with rates for the Plus side. The following ordinance was considered: 424I City of Denton City Council Minutes November 23, 1993 Page 9 No. 93-214 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR THE PURCHASE OF EMPLOYEE GROUP HEALTH INSURANCE TO HARRIS METHODIST HEALTH PLAN; PROVIDING FOR THE ADMINISTRATION OF THE CONTRACT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. Perry motioned, Smith seconded to adopt ordinance. Council Member possible for employees to feel this proposal would be a much more restrictive coverage. Some months ago Council started talking about this issue, and~.were~ver¥,str~ng regarding a managed care direction. The proposal might not be as convenient or extensive as the previous plan but faced with increased costs there needed to be a move into the direction of managed care. Brock stated that -on the surface it might~l be~,,'.~ ~ Council Member Miller stated that he needed to comment on Mr. Gold's statement about the money budgeted for health care. Any additional funds would go back into the city budget and be used as necessary. The City needed to be fiscally responsible and save every dollar it can. On roll vote of the motion to adopt the ordinance-, Brock "aye", Cott, "aye", Miller"aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry"aye". Motion'carried unanimously. 3. The Council considered adoption' of an ordinance approving a letter of understanding between the City of Denton and Harris Methodist Health Plan relating to the award o~ Bid No. 1523; and authorizing the City Manager to execute the letter. Council Member Cott left the meeting. Tom Klinck, Director of Human Resources, stated that this item was asking Council to authorize a letter of agreement as the State Board of Insurance required that changes of this nature be filed with them. There was not enough time between approval of the contract and open enrollmenttime to have it completed. The letter indicated that Harris would file these items with the State Board of Insurance. and that then thecontract would be amended. These rate guarantees would assist the City over the long term in better managing and controlling health care costs. Council Member Brock asked if the rate guarantees applied only to the preferred plan. 424J City of Denton City Council Minutes November 23, 1993 Page 10 Council Member Cott returned to the meeting. Klinck replied that it only applied to the HMO plan as Harris could control those costs in the network and could offer a guarantee based on that control. There was no rate guarantee on the plus program and there would be a need to help employees control those costs. The following ordinance was considered: NQ~. 93-215 AN ORDINANCE APPROVING A. LETTER OF UNDERSTANDING BETWEEN THE CITY OF DENTON AND HARRIS METHODIST HEALTH PLAN RELATING TO THE AWARD OF BID NO. 1523; AUTHORIZING THE CITY MANAGER TO EXECUTE THE LETTER; AND PROVIDINGAN EFFECTIVE DATE. Smith motioned, Miller seconded to adopt the ordinance. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 5. The Council considered approval of a resolution establishing the City's contribution rate to the city employee benefit allowance; and establishing payments that the~ City will make to employees. City Manager Harrell stated that this would take formal action to set the pa=ticipation rate on the next year for the City's participation in the employee insurance program. The City Attorney had made the suggestion that the phrase "to December 31, 1994" be added to any motion. It was recommended that the amount be set at $188.50 per employee. Mayor Castleberry indicated that there were Speaker Cards on this item. Bill Fitzpatrick stated that as a member of Fire Department and the Employee Insurance Committee he was in agreement as per their last official vote as a~committee wi.th Councit Member, Miller. Ken Gold stated that he supported~.Option IV which would not put wetlness with insurance rates. A future option would be to create incentives for participation in the wellness programs. He presented. Councit~witka~handout, regarding an alternative wellne$~ ....... incentive plan which had cash incentives to those who participated in the wellness program or who stopped using tobacco products. 424K City of Denton City Council Minutes November 23~ 1993 Page 11 The following resolution was considered: NO. R93-073 A RESOLUTION OF THE CITY COUNCIL ESTABLISHING THE CITY'S CONTRIBUTION RATE TO THE CITY EMPLOYEE BENEFIT ALLOWANCE; ESTABLISHING PAYMENTS THAT THE CITY WILL MAKE TO EMPLOYEES; AND PROVIDING AN EFFECTIVE DATE. Miller motioned, Smith seconded to establish the rate at $188.50 through December 31, 1994. On roll vote,.Brock "aye", Cott, Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 6. The Council considered adoption of an ordinance authorizing the execution of a change order to a contract between the City of Denton and Steele-Freeman; and providing for an increase in the contract price. Bruce Hennington, Facilities Manager, stated the problem was with the roof at the Denton Municipal Complex. The Council had set aside money for an entire roof at the Complex. The prior cold weather snapped an area of the roof and it was leaking in places. Renovation work could not continue until the roof was repaired. A total new roof repair was estimated at $296,831. It was estimated that the cost for the Denton Municipal Complex would be $198,199, the cost, for the,Cooke County College was-S28,568 and the cost for Morrison Milling was $70,064. The original plan was to make the roof last .until~the completion of the construction and then issue a separate contract to roof the entire building. This would allow roofing specialists on the job and not have two contractors working at the same time on the same project. Unfortunately the roof did not last. Council Member Chew asked if it would not be better to do the entire roof now. Hennington replied that that was the initial goal and that they wanted to wait until the end of the project to do the work. Steele-Freeman indicated that theywould not build in the interior until the roof was corrected. Overall it would be better to bid all of it at once. City Manager Harrell stated that the reason the decision was made initially was to avoid~the~overhead for the general contractor if the interior could be completed and then reroof the entire building. Only when the major leaks started and there was a risk of stopping the renovation project wereother alternatives needed. 424L City of Denton City Council Minutes November 23; 1993 Page 12 Council Member Chew stated that even now would it not be more cost effective to do an entire new roof. Betty McKean, Executive Director for Municipal Services/Economic Development, stated that part of the problem was that just on the Municipal Complex portion of the roof which was critical to keep the renovation moving, the low bid received by Steele-Freeman was higher than anticipated. If the entire building were done now, the project would be $70,000 ove~ budget. It was felt that the other parts of the building would be deferred at this point in time in order to keep within budget andwith the hope to get better bids the rest of the~building .... City Manager.~arrell stated that another option was to have another contractor other than Steele-Freeman build the roof which would be a four to five week delay. It was felt that this was not a proper recommendation as there were concerns abouthaving two different contracts involved in a construction project. A second issue dealt with the low quote received by Steele-Freeman. That quote came from a former employee of the firm which did the City Hall building who had formed his own company. This individual had not been in business for three years and could not get bonding, not because of quality but because of length of service. As a contractor for Steele-Freeman, Steele~Freeman would~ secure the bond and stand behind the work. If the City solicited its own bids; that individual could not bid on the project. The ultimate plan was to keep the project moving and to not have two~ contractors working on the building. Council Member Miller asked why the same contractor with Steele- Freeman could not do the whole roof rather than just the center part. Hennington replied that part of Steele-Freeman's contract was to penetrate the roof for air conditioning, etc. Those penetrations would then be repaired and would have to last the life of the renovation. After the renovation was completed, a totally new roof would be put on the building. City Manager Harretl stated that the part o~ the contract with Steele-Freeman was to do the portion of the roof over the Municipal Complex and that was the portion for the change order. He did not know if legally a change order could be done and then have the contractor go outside the area of the change order for work. City Attorney Drayovitch stated that there would be a problem if the change order exceeded 25% of the contract amount which would be prohibitive by the State statute. Also the bidding statutes 424M City of Denton City Council Minutes November 23, 1993 Page 13 allowed for change order under certain circumstances and there could be a legal challenge if the work went outside of the project bid. Hennington stated that Steele-Freeman had a repair contract for a portion of the building. A change order could only be done for that portion of the building and not for other the areas. Mayor Pro Tem Smith asked if the Steele-Freeman contract was to repair the roof or to put on a new roof. Hennington replied that itwas to repair any damage which would be done in conjunction with the construction suchas air conditioning vents, etc. Mayor Pro Tem Smith asked what the change order would do. Hennington stated that the change order would take off the old roof and put on a new roof. Option three for a total new roof was estimated at $296,831. Steele-Freeman had received three quotes for the project and staff had checked those quotes. It was felt that the low bid was a good bid and that a lower bid probably could not be found. Mayor Pro Tem Smith asked if the. cost of $296,881 was for the entire building. Hennington~replied'¥emexcept for~th~Visioning area. Mayor Pro Tem Smith asked for an estimated savings if all the roof were done together. Hennington stated that the City would save $5,000 if the entire roof were bid at this time. Council Member Cott asked if Mike Barton was working for Armko or for the City. Hennington replied that Mr. Barton was an Armko representative. He was a consultant to the City from the company which manufactured the materials. The company would not give a fifteen year guarantee unless an Armko representati~wa~present directing how theroof would be installed. Council Member Cott stated~that~it was presumed that that material would be used. It was just a question of who would assemble it. 424N City of Denton City Council Minutes November 23~ 1993 Page 14 Hennington replied that that assumption could be made. There was a choice of three or four different materials. Council Member Cott stated that the three largest roof manufacturers in the region were not asked for a bid. He asked each, Manville, Goodyear and another company, how long it would take to make a qualified bid. They replied that they could have a good bid by Wednesday which would not take six weeks as was mentioned earlier. The fabric had a serious flaw in that it cracked in the winter. Most using that fabric were now required to use it in such a way in order toreceive the guarantee that it lost~_~ any advantage over the way it was put on. He felt that there was also some unusual bidding practices associated with this project. In his opinion, there were not three bids made. There was only one bid made and there had been only one bid made on a regular basis. There was no idea of what the price should be because the only bid was from the manufacturing representative~ He suggested taking advantage of the process to get a bid in three or four days. He had talked to several companies and knew that a bid could be done in that length of time. Tom Shaw, Purchasing Agent, stated that if the burden was placed on the City to go through the bid process, it would take a few days to put together the bid specifications, a minimum of 18 days for the proper legal advertising, and a Council meeting to make the award. These were dates given by the State. The roofers could give a bid in three days. Steele-Freeman was. not restricted hy the bid policies of the City as set by State law but the City had dates to follow. If the specifications were ready to go in the mail the next day, there would be a minimum of 21 days to go through the process. Council Member Cott stated that the consultant was paid by the fabric manufacturer and felt that that was not right. Hennington replied that that had been looked at several times by the Legal Department and the City was not paying the consultant. The contractor was paying the consultant. McKean stated~thatthe Council could direct~staff to~bid~a, nyor. all~ of the project. In terms of the renovation project, the City had been notifie~by the contractor that based on the deteriation of the roof¥ they would not continue the renovation work until something was done with the roof whether the contractor did the work or the.City~.~went out~.~for~bid ...... Due to past experiences different contractors on a job and some of the associated liabilities, it was felt that this would be an expedient way as well as the least expensive way, to have the individual who was 424O city of Denton City Council Minutes November 23~ 1993 Page 15 managing the overall construction project also manage the roof. city Manager Harrell stated that he had had an extensive conversation with the architect on the job regarding this issue. The architect felt that to keep the project moving and to keep it a clean project, that the City should proceed with the proposed change order with Steele-Freeman. Council Member Cott stated that the roof problem was known on October 18th. Council Member Miller sta~ed that'Stee~e-Freeman would be taking the responsibility of the roof. Hennington replied' that·steele~Freeman would take responsibility for the first year. Denton Manufacturing would have responsibility for the next 15 years. Mayor Castleberry stated that he had a Speaker Card on this item. Jeff Fairchild stated that the bid process was too long and that better bids came from a contractor. He felt it was not a good practice to have a manufacturing representative as a consultant for a project as unbiased information would not be received. Other products were available at a lower price. Jerry Car!yle-stated ~thathaving, amanUfactu=ing=representative as a consultant was not, a good idea. Cott motioned to place the project out for the bid process. Motion died for lack of a second. Council Member Chew asked for the time frame if the bid process were considered. city Manager Harrell stated that that request could be made to the contractor. There would be at least the delay until the next Council meeting at which time the Council could award some type of change order. From the staff',sindependent checking, it was felt that a better price probably would not be received. Mayor Pro Tem Smith asked if three bids were received. city Manager Harrell. stated.~that three proposals were received. ....... Council Member Miller felt that it might be well to get more bids from the. contractor. He felt it might be well to investigate 424P City of Denton City Council Minutes November 23~ 1993 Page 16 whether it was appropriate to have a sales representative act as a consultant. He was not comfortable at this time making a decision on the issue. Miller motioned, Chew seconded to ask the contractor for additional bids for the roofing project and to have staff return with information regarding the issue of the use of a manufacturing representative as a consultant. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "nay", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. City Manager Harrell stated that staff would return to Steele- Freeman and ask for other proposals.~ Staff would return with a report on the relationship of a consultant with a manufacturing company. ~ Mayor Pro Tem~Smith asked howmanycontractors were asked for bids. Hennington stated that 7 firms were asked and 3 quotes were received. He felt that no more contractors would bid the project. A different type of material might be received if it met the bid specifications. Any time this roof had been bid through the City, other materials were listed which would be acceptable. The City never exclusively limited one material. 7. The Council considered adoption of an ordinance retaining the lawfirm of Wo~£e~. Cla. rk & Henderson to represent the.City of Denton, in litigation~ pending against the City; and authorizing the~ expenditure of funds ~therefor. Debra Drayovitch, City Attorney, stated that staff would recommend approval of the ordinance. The lawfirm would represent the individual officers who had been sued in this litigation. She would be representing the City and Chief Jez. The following ordinance was considered: NO. 93-216 AN ORDINANC~OF THECITY OF DENTON,, RETAINING THE LAWFIRM OF WOLFE, CLARK & HENDERSON TO REPRESENT THE CITY OF DENTON IN LITIGATION PENDING AGAINST THE CITY; AND PROVIDING AN EFFECTIVEDATE. Perry motioned,.~Smith second~to..adopt the ordinance. On roll. ~.~ vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. ~. ~ --- 424Q City of Denton City Council Minutes November 23,' 1993 Page 17 8. The Council considered a motion to call the Cushman Addition escrow. city Manager Harrell indicated that Council had had a public hearing at the last meeting and a motion would be in order to formally call the escrow amount. Perry motioned, Chew seconded to call the escrow. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 9. The Council considered appointments to the Beautiful Board,. the...Electrical.~Code Board and Diversion TaSk Force~ Keep Denton the Juvenile Mayor Castleberry indicated that Council Member Perry had nominated Kandice Gandel to the Keep Denton Beautiful Board at the last meeting. On roll vote, Brock "aye", Cott, "aye", Miller "aye", smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Castleberry indicated that Council Member Chew had nominated Herman Wesley to the Keep Denton Beautiful Board at the last meeting. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye",i'and Mayor Castleberry "aye". Motion carried~unanimously.- Mayor Castleberry indicated thatCouncil Member Chewhad nominated Robert L. Hicks to the Electrical Code Board at the last meeting. On roll vote, Brock "aye", Cott, "aye", Miller "aye", smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Castleberry indicated that Council Member Miller had nominated Cindy Sill to the Juvenile Diversion Task Force at the last meeting. On roll vote, Brock "aye", Cott, "aye", Miller "aye", smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 10. Miscellaneous matters from the City Manager. city Manager Harrell did not have any items for Council. 424R City of Denton City Council Minutes November 23, 1993 Page 18 11. New Business The following items of New Business were suggested by Council Members for future agendas: A. Council Member Miller asked for the development of a general policy of when the Council would meet in the Civil Defense Room and when it would meet in the Council Chambers. Along with that would be a decision on when to televise the meetings. Mayor Castleberry felt'~.th&t~Council had decided the televised~:~ meetings would be the first and third meetings. Council Member Miller felt that the Council was dealing with issues at this meeting which would have been good for the community to hear and felt that a schedule needed to be discussed. B. Council Member Miller asked that the next agenda include an update on the Visioning process. With no further business, the meeting was adjourned at 9:15 p.m. rE Ni EB A ,TERS ~C~TY S~/RETARY ~ITY OF DENTON, TEXAS BOB CASTL~BERRY, MAY~R CITY OF DENTON+T~S~ ~ ACC00177