Minutes November 28, 1995CITY OF DENTON CITY COUNCIL MINUTES
November 28, 1995
The Council convened into a Closed Meeting on Tuesday, November 28,
1995 at 5:15 p.m. in the civil Defense.
PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members
Brock, Cott, Krueger, Miller and Young.
ABSENT: None
1. The Council considered the following in Closed Meeting:
A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071
Considered settlement offer in Price v. City of
Denton.
Considered and gave staff direction with regard to
the enactment of an ordinance to prohibit concealed
weapons to City facilities.
B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072
Personnel/Board Appointments -- Under TEX. GOV'T CODE
Sec. 551.074
Following the completion of the Closed Meeting, the Council
convened into a Work Session in the city Council Chambers.
PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members
Brock, Cott, Krueger, Miller and Young.
ABSENT: None
1. The Council received a report, held a discussion and gave
staff direction regarding the 1997 Group Health Insurance bid
specifications for the Employees Health Insurance Program.
Craig Maroney, Human Resources Generalist - Benefits and Insurance,
presented a bid schedule for the 1997 Employee Health Insurance
Program. The bid components were composed of provider access;
provider contracting and reimbursement methods; financial
stability; utilization management techniques; medical management
techniques; data collection and reporting; membership services;
pharmacy management; overall plan design; and retiree health cost
options. There were two options to consider with the hospital
provider access. One option was to provide only one major medical
center in Denton. The potential impact of that option was lower
premium rates and overall costs; adequate match of hospital
services for coverage size; tertiary services contracted with other
Denton or Dallas/Ft. Worth providers; increase the field of
potential bidders; and facility preference by providers and
employees/dependents. A second option was to provide for both
major medical centers in Denton. Potential impact of this option
included higher than necessary premium costs for the city and
employees; a narrow field of potential bidders; increased
77
78
City of Denton City Council Minutes
November 28, 1995
Page 2
likelihood that all/most medical services were provided by Denton
facilities; broadened access for employees/dependents; and
increased accessibility for employees/dependents. Texas State law
mandated retiree coverage with no funding requirements. There was
an ever increasing number of eligible retirees and a high cost of
retiree health coverage. Many eligible retirees did not retire due
to the high cost of health insurance.
Council Member Miller felt that the best procedure for making an
informed decision would be to have one bid for a single hospital
and an alternative bid for both hospitals.
Mayor Pro Tem Biles asked if there was a problem with Harris
Methodist being able to produce a contract with both hospitals or
was there a problem with one of the hospitals.
Tom Klinck, Director of Human Resources, stated that there was a
long history with that issue. When Harris first entered into the
agreement with the City in 1994, they had an exclusive contract
with Denton Community Hospital which they could not get out of at
that point in time. Council urged Harris to continue to look at
the issue of using both hospitals and each year that item was
discussed. Both hospitals were recently purchased by Columbia. The
FTC indicated that Columbia had to divest of one of the hospitals.
With continued discussions with Harris, the city was able to work
out a contract with both hospitals.
Mayor Pro Tem Biles felt that it would be more informative to look
at a dual bidding system. Would the bidders be at a disadvantage
not knowing what they would be bidding on.
Klinck replied that that was an unknown. It was important to
recognize that it was likely that there might be changes during the
process.
Council Member Miller stated that the issues were the same even if
there was only a sole source hospital.
Rick Svehla, Acting city Manager, stated that the city had bid many
different projects with options or alternates. If any of the
potential bidders had concerns, there probably would be exceptions
or addendums to the bid~.
Council Member Cott stated that he would like to see a bid based on
a 5% reduction per person.
Miller motioned, Biles seconded to authorize a bid process based on
a single hospital named ~y th~ provider and an alternative bid for
both hospitals.
City of Denton City Council Minutes
November 28, 1995
Page 3
Council Member Cott asked to include a 5%
costs as a third alternative.
reduction
of current
79
Council Member Miller stated that he would not accept that change
to his motion.
Cott motioned, Young seconded to amend the motion to include a 5%
reduction of current costs as a third alternative.
Mayor Pro Tem Biles asked if the amendment would go against the
State bidding process.
Klinck stated that the purpose of the bidding process was to
receive the lowest cost the market would provide at that point in
time. Staff would indicate, after receiving the bids, which were
the lowest costs and the best cost.
Council Member Cott stated that in order to bid what he was
recommending, a bidder would have to take something away instead of
adding items.
city Attorney Prouty felt that Council Member Cott was asking that,
as a condition, all bidders would bid at least 5% lower than the
current cost or less.
Council Member Cott stated that he would like to see what it would
cost for a 5% reduction.
Klinck stated that they had just received a 5% increase for Harris
for next year. Specific additional costs which were impacting the
organization could be prepared.
Cott and Young withdrew their motion and second.
On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye",
Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion
carried unanimously.
2. The Council received a report, held a discussion and gave
staff direction concerning a City Council work session on Community
Diversity.
Council Member Miller stated that Council had voted to form a
Racial Diversity Task Force but delayed the formation until
January. While attending the Texas Municipal League Conference, he
participated in a session regarding workforce diversity and
received many ideas regarding how to Process this task force. As
quickly a~ possible, he suggested that the C~un~il ~p~nd half a day
away, stay overnight and have half another day to facilitate this
type of discussion. A possible consultant was Richard Lewis who
had done this type of diversity work for other entities. He asked
80
City of Denton City Council Minutes
November 28, 1995
Page 4
if Council would consider such a planning session with this
facilitator.
Council Member Young felt it was a good idea and was something that
was needed. He felt the facilitator should work with the entire
Racial Diversity Task Force when the time was appropriate.
Council Member Miller stated that the idea was that if Council
liked what the facilitator did, then the Council could talk about
what to do with the entire issue. An assessment and evaluation
would be made before exposing the facilitator to the entire
committee.
Young motioned, Biles seconded to proceed with the facilitator.
Council Member Cott stated that there was an implied point that
something was wrong at the city. Until and when there was an idea
about what it was the Council was looking for, he was concerned
about that perspective. That was not to say that there was nothing
wrong in some places but he was concerned about the implications.
If there was something specific, look for it but do not look for
something not there.
Council Member Brock stated that she supported this idea and did
not feel that it implied that anything was wrong with staff.
Council Member Cott's comments pointed out the need for a retreat
to work out these types of issues. No one on Council would want to
start a committee without knowing what would be the thrust of such
a committee. This Committee could turn into a committee which would
promote harmony in the community. The DISD had an advisory
committee which was on-going which answered questions the community
needed to know and helped reduce tensions in certain situations.
Council Member Young felt that there was an on-going problem in the
City. The majority of minorities in the community felt there was
a problem. The Task Force would cover a variety of issues relative
to racial diversity and would be a scientific approach to racial
diversity.
Mayor Pro Tem Biles felt that Dr. Lewis would help Council
communicate among themselves and facilitate what the Council wanted
out of the Racial Diversity ~ommitt~e.
Council Member Cott stated that he had a concern for the people who
worked for the City who were concerned about what the Council was
doing. He suggested Council involve several people from the
employees who could communicate to other employees what the Council
wa~ doing.
Council Member Miller stated that one aspect of the session might
include what this was all about to make sure that the Council was
City of Denton City Council Minutes
November 28, 1995
Page 5
81
talking about the same thing. They would also talk about strategic
planning and a strategy for broadening this into a multicultural
participation.
Council Member Brock felt that Council Member Young's original
intent was to have members of the City staff be involved in the
process. She requested that the title of the task force be changed
to a workforce diversity task force if it was going to pertain
strictly to the City's operation as opposed to racial diversity or
change to community diversity as opposed to racial diversity.
Acting City Manager Svehla stated that there was a recent article
in the Denton Record-Chronicle about an employee who was released
from the organization and he was convinced the individual was let
go for a good cause and a good reason. He wanted to assure the
Council that as there were other comments made in the article about
problems internal to the City, he asked Human Resources to look
into the policies governing those kinds of accusations.
Council Member Miller stated that he would like to have the Acting
City Manager and Director of Human Resources involved with the
Council session.
Council Member Young and Mayor Pro Tem Biles agreed to include
those individuals with the Council session.
On roll vote, Miller "aye", Young "aye", Cott "nay", Krueger "aye",
Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion
carried with a 6-1 vote.
3. The Council received reports from executive search firms, held
a discussion concerning selecting an executive search firm to
assist the City Council in recruiting and selecting a City Manager,
and gave staff direction.
Tom Klinck, Director of Human Resources, stated that proposals had
been received from three firms and Council had had an opportunity
to interview with those firms on a one-on-one basis. The firms
would be making a ten minute presentation regarding an overview of
their firms and information pertinent to the project.
Council Member Cott left the meeting.
Council received presentations from the firms of Jensen, Oldani and
Cooper; the Par Group; and Anderson and Associates.
Council Member Cott returned to the meeting during the
presentations.
Following the completion of the Work Session, the Council convened
into a Special Called Session in the City Council Chambers.
City of Denton City Council Minute~
November 28, 1995
Page 6
PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members
Brock, Cott, Krueger, Miller and Young.
ABSENT: None
1. The Council considered adoption of an ordinance authorizing
the Mayor to execute an agreement with an executive search
consultant.
Council Members Krueger and Young were not present following a
recess of the Council.
The following ordinance was considered:
NO. 95-243
AN ORDINANCE AUTHORIZING THE MAYOR OR IN HIS ABSENCE, THE
MAYOR PRO-TEM, TO E~TER INTO A CONTRACT BETWEEN THE CITY OF
DENTON AND JENSEN, OLDANI & COOPER, AN EXECUTIVE SEARCH
CONSULTANT, TO ASSIST THE CITY IN SELECTING A CITY MANAGER;
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING
AN EFFECTIVE DATE.
Biles motioned, Miller seconded to adopt the ordinance.
Council Members Krueger and Young returned to the meeting.
On roll vote, Miller "aye", Young "aye", Cott "nay", Krueger "aye",
Brock "aye", Biles "aye", and Mayor Castleberry "nay". Motion
carried with a 5-2 vote.
With no further business, the meeting was adjourned at 7:45 p.m.
iNNIP~WALTERS
TY SECRETARY
CITY OF DENTON, TEXAS
ACC002D5