1 / 69

City Council Regular Session

City Council Regular Session. August 6, 2013. 2011 STRATEGIC INITIATIVES Huntsville residents enjoy a safe, healthy, affordable and historic community. Huntsville is an economically diverse and developing community.

poppy
Download Presentation

City Council Regular Session

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. City CouncilRegular Session August 6, 2013

  2. 2011 STRATEGIC INITIATIVES • Huntsville residents enjoy a safe, healthy, affordable and historic community. • Huntsville is an economically diverse and developing community. • Huntsville residents enjoy and benefit from an attractive city with beautiful parks and lifelong educational and cultural opportunities. • Huntsville is a well-managed, sustainable community that values its natural resources and provides exceptional public services. • Huntsville is a friendly place where a warm welcome awaits both visitors and new residents.

  3. City of Huntsville Workshop - August 6 Health Insurance Presentation

  4. Medical Insurance Challenges • Adopted Fiscal Year 12-13 Budget projected: • Expenditures - $4,375,000 • Revenues - $3,570,671 • Use of Fund Balance - $804,329 • Reduced fund balance by 36%. • Remaining fund balance is estimated at $1,427,464. • Fund balance required by policy $759,000 • Industry standard for reserves 37.5%

  5. Fiscal Year 13-14 Estimates Based on medical claims through March 2013, trend (the overall expected cost increase based on inflation, utilization, market influence, and other factors) and healthcare reform mandates, the projected deficit for the ’13-’14 FY was approximately $593,000. • Options considered to cover/lower deficit: • Increase contributions from $9,000 per employee per year to $11,100 per employee per year for medical and dental • Implement plan design changes – increased copays, deductible, etc.

  6. What we have done • Educated employees/retirees (160) during 8 informational meetings to explain insurance. • Welcomed employee feedback through 13 feedback meetings with 188 active and retiree participants. • Compared a fully-insured quote from current provider to our self-funded plan.

  7. What needs to happen • Understand the differences between self-insured and fully-insured. • Decide whether to continue with self-insured or move to fully-insured plan. • Determine the best approach to eliminate the deficit.

  8. Self Funded versus Fully Insured • Cost components • Claims (variable) • Stop loss premium (fixed) • Admin cost (fixed) • City takes control of assets of plan, invest them, and eliminates insurance company profits. • Flexibility of plan design changes • Premium components • Greater than expected claims (fixed) • Profit (fixed) • Admin cost (fixed) • Overhead cost (fixed) • Commissions (fixed) • Various risk charges Self Funded Fully Insured

  9. Self-Funded versus Fully-InsuredFor example: Fully Insured Insurance Company acct Premium is $1,000 And claims/other cost $500 Remains in acct $500 (Insurance company profit) Self Funded In your own checkbook If you deposit $1,000 And bills equal $500 Remains in acct $500 (Your money)

  10. Analogy • Fully Insured • Self-Funded

  11. Buy or Rent?? • Own Home – Self Funded • Financial, tax and control advantages • Assume responsibilities (e.g., care of yard) • Take some risk (e.g.; fire and depreciation), nearly all of which may be protected by insurance. • Rent Home – Fully Insured • Belief that responsibility & risk beyond capabilities • Insurance is not their expertise • Pay more for total freedom from plan/risk worries Rent? Buy?

  12. Fully-Insured quote from TML-IEBP • Claims projection updated by our consultants results in a $379,971 deficit due to reduction in claims. • The proposed fully insured quote that most closely matches our current plan design results in a deficit of $293,549 over current plan cost. • The second plan, with reduced benefits, results in a surplus of $158,235.

  13. Advantages for Fully-Insured quote from TML • Assumes less risk for claims volatility • Easier to budget the cost because of being a flat dollar amount per month • No fear of a greater deficit for that year due to claims fluctuations

  14. Disadvantages for Fully-Insured Quote from TML • It’s insurance! Loss of control and flexibility. • There is no guarantee that TML will offer a fully-insured quote for January 2014. • City could be faced with a huge renewal increase and no flexibility to manage plan design to address future cost increases. • Questions about fully-insured in general and/or TML IEBP proposal?

  15. Process • We educated employees and provided them with an opportunity to deal with this unfortunate situation in a very democratic way. • Deficit for 2013-14 is estimated at $600,000 as of February 2013. • $600,000 deficit – too much to ask employees to deal with. Reduced by $200,000 through elimination of out-of-network max, eliminate 4th Quarter Deductible Carry-over, LTD paid by employees, and provide one Life benefit. • These benefits are gone when the Council says they’re gone. Setting them aside just allowed more focus.

  16. Clickers! • Employees were given four areas of plan design and six choices within each of the four plan design areas to decide how best to save $400,000. • Selections were tabulated on the basis of premium type – Employee Only (174), Employee + Spouse (26), Employee + Child(ren)(34), or Family (54). • Please note, Employee Only participants make up 60% of the members on the plan. They also represented 53% of the clicker turnout.

  17. Results: Premiums Options • 31% selected a 10% increase for a $50,000 saving • Three way tie for 2nd place • 16% selected a 0% increase for $0 saving • 16% selected a 20% increase for $100,000 saving • 16% selected a 50% increase for $250,000 saving *The remaining 21% of employees’ responses did not result in significant indicators

  18. Results: Deductibles • 30% selected a $100 increase for a $50,000 saving • 24% selected a $200 increase for a $100,000 saving • 19% selected a $500 increase for a $250,000 saving *The remaining 27% of employees’ responses did not result in significant indicators

  19. Results: Front-end prescription deductible • 38% selected a $100 RX deductible for a $50,000 saving • 32% selected a $0 RX deductible for a $0 saving • 18% selected a $200 RX deductible for a $100,000 saving *The remaining 12% of employees’ responses did not result in significant indicators

  20. Results: Primary Care Physician/Specialist Co-Pay • 46% selected a $10 increase PCP & $25 increase for Specialist for a $50,000 saving • 21% selected a $20 increase PCP & $45 increase for Specialist for a $100,000 saving *The remaining 33% of employees’ responses did not result in significant indicators

  21. Since April… • The first 9 months of this year, claims are $1,695,797. • That is 18.3% lower than 2012. ($2,075,121)

  22. Recommendations #1 – Stay with a self-insured approach. #2 – Eliminate the additional life insurance policy, AD&D policy, the 4th quarter deductible carryover and the out-of-network maximum/cap. This would save the City $200,000.

  23. Recommendations cont. #3 - Increase premiums by 10%, increase deductibles to $600/$1,800, add $100 prescription deductible for Rx and increase co-pays to $35/$50 for primary care and specialist physician accordingly. This would save the City $200,000. • The recommendation is to extend the current benefit year to December 31 for a January renewal. • The recommended reserve amounts for our plan should be $1,375,846. Since fiscal year 2012-2013 brought an $800,000 use of fund balance, the estimated ending fund balance for the year is $1,427,464.

  24. Recommendations cont. • #4 – Automatic triggers • Since staff is recommending a three month extension on the current plan, on a budgeted basis, this exposes the City to another $200,000 in use of fund balance. If, at any time after January 1, 2014, the estimated available fund balance falls below $1,375,846, staff recommends automatically triggering the following changes:

  25. Recommendations cont. • #4 Automatic triggers continued • Increase premiums an additional 20% (over the 10% increase contained in Recommendation #3) for a 30% increase over current-year premiums. This would add $100,000 in additional revenue to the plan. • Increase co-pays to $45/$70 for primary care and specialist physicians accordingly. This would add an additional $50,000 in saving to the plan.

  26. Points of Note: • The City may choose to rebate an amount to employees with a self-insured approach. There isn’t as much risk with the perception of “too drastic” changes with self-insured plans (when compared with fully-insured plans). • As a show of good-faith, staff would certainly accept direction to come up with triggers for rebates as well (probably not automatic).

  27. City Council Meeting – August 6, 2013 MAIN SESSION [6:00pm] 1. CALL TO ORDER 2. INVOCATION AND PLEDGES U.S. Flag Texas Flag: Honor the Texas flag. I pledge allegiance to thee, Texas, one state under God, one and indivisible. 3. PUBLIC COMMENT a. Related to any City business not on the agenda – 2 minutes per speaker b. Related to any matter on the agenda – 5 minutes per speaker

  28. City Council Meeting – August 6, 2013 4. CONSENT AGENDA Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion by request of a member of Council.) a. Approve the minutes of the City Council Workshop and Regular Session held on July 16, 2013 and the Special Session held on July 23, 2013. [Lee Woodward, City Secretary] • Adopt Ordinance 2013-33 amending the City of Huntsville, Texas Code of Ordinances, specifically Chapter 26 “Law Enforcement”, reaffirming the existence of the Police Department; and making other provisions and findings thereto; and declaring an effective date, 2nd reading. [Chief Kevin Lunsford, Director of Public Safety] c. Approve Ordinance 2013-36 to amend the budget for FY 12-13. [Steve Ritter, Interim Finance Director]

  29. City Council Meeting – August 6, 2013 5. STATUTORY AGENDA a. Presentation, discussion, and possible action to approve Ordinance 2013-34 calling the November 5, 2013 municipal general election for the purpose of electing a Mayor and four (4) Ward Councilmembers, and calling a special election to fill a vacancy to elect a Councilmember At-Large Position 1, single reading required. [Lee Woodward, City Secretary]

  30. City Council Meeting – August 6, 2013 5. STATUTORY AGENDA b. Presentation, discussion, and possible action to approve Resolution 2013-14 authorizing the placement of speed cushions in the 2200 – 2400 Blocks of Avenue S. [Aron Kulhavy, Director of Community and Economic Development]

  31. City Council Meeting – August 6, 2013 5. STATUTORY AGENDA c. Presentation, discussion, and possible action to authorize the Director of Public Works to approve the renewal of Industrial User (IU) Discharge Permit 0100 for Gardner Glass Products, Incorporated, first reading. [Carol Reed, Director of Public Works]

  32. City Council Meeting – August 6, 2013 5. STATUTORY AGENDA d. Presentation, discussion, and possible action to approve Ordinance 2013-35 creating a limited parking zone on University Avenue between 14th and 15th Streets, first reading. [Aron Kulhavy, Director of Community and Economic Development]

  33. City Council Meeting – August 6, 2013 5. STATUTORY AGENDA e. Presentation, discussion, and possible action to consider a Utility Extension Request from RohamDarvishi for a sanitary sewer line extension located at 3233 Woodward Drive, including City portion of $4,411.76. [Aron Kulhavy, Director of Community and Economic Development]

  34. City Council Meeting – August 6, 2013 6. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT • Presentation, discussion, and possible action to approve Resolution 2013-13 in support of a proposal by Entergy Texas, Inc. and ITC Holdings Corporation regarding the change of ownership and control of transmission business, transfer of certification rights, and related relief in Public Utility Commission Docket No. 41223, upon the guarantee of enumerated conditions. [Leonard Schneider, City Attorney]

  35. City Council Meeting – August 6, 2013 6. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT b. Presentation, discussion, and possible action to consider proposals for Charter amendments for the November ballot. [Mayor Woodward]

  36. City Council Meeting – August 6, 2013 6. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT c. Presentation, discussion, and possible action to approve nominations for City boards, committees, and commissions. [Mayor Woodward]

  37. City Council Meeting – August 6, 2013 6. MAYOR/CITY COUNCIL AND CITY MANAGER REPORT d. Presentation, discussion, and possible action to update the Council on the Buxton contract. [Councilmember Allen] e. City Manager’s Report 1. The City Manager, City Attorney and/or other members of the City staff will provide an update on the sale of property located at 2257 Sam Houston Avenue, commonly known as the “Army Reserve Building,” as per the requirements in Resolution #2013-11. 2. Updates on City construction, grants, studies, City projects, City purchases, and economic development.

  38. Cities Contacted - dB (residential)(alphabetical) Austin 85 Baytown 75 (7a- 9p) / 65 (9p-7a) College Station 63 (7a-10p) / 56 (10p-7a) Elgin 67 (7a-10p) / 60 (10p-7a) Galveston 80 (7a-10p) / 85 (10p-7a) Houston 65 (day) / 58 (night) Huntsville (development code) 55 League City 75 (construction equip) North Richland Hills 75 (7a-10p) / 60 (10p-7a) Pasadena 75 Pflugerville 85 Richland Hills 85 Spring Valley 55 (7a-9p) / 50 (9p-7a)

  39. Cities Contacted - dB (residential) (by level – low to high) Huntsville (development code) 55 Spring Valley 55 (7a-9p) / 50 (9p-7a) College Station 63 (7a-10p)/ 56 (10p-7a) Houston 65 (day) / 58 (night) Elgin 67 (7a-10p)/ 60 (10p-7a) North Richland Hills 75 (7a-10p)/ 60 (10p-7a) Baytown75(7a- 9p)/ 65 (9p-7a) Pasadena 75 League City 75 (construction equip) Galveston 80 (7a-10p) / 85 (10p-7a) Austin 85 Pflugerville 85 Richland Hills 85

  40. Sound travels in weird ways 65 dB of ocean waves are much different than 65 dB of unwanted amplified music when trying to sleep

  41. Several ordinances specifically addressed: • Outdoor amplification during specified times • Loud vibrations (car stereos, home stereos, etc.) • Strong language against noise even w/o dB measurements • dB measured from either offending property line or receiving property line

  42. Several positive meetings / phone calls / emails with both the complainants and Mr. Maalouf of Draft Bar. These parties have displayed a willingness to work together. Absent input / comments from council, we intend to proceed with staff recommendations (next slide)

  43. Staff Recommendations generally: • Establish dB level in noise ordinance (move from development code) • dB level approximately in the 65 dB range • dB measured from offending property • strong language against unreasonable noises (regardless of dB) • no outdoor amplification past ~10 -10:30 p.m. w/o permit • outdoor amp. permit only available two or three times per year • address loud noise / vibrations from car stereos

  44. City Council MeetingAugust 6, 2013Section 1104.5 Height limitation and measurementChapter 11, Sign Standards, Huntsville Development Code

  45. Brief History of Sign Regulations • June 16, 1981 – Sign Ordinance adopted • June 10, 1986 – Integrated into the Development Code • No official changes to Section 1104.5 to date regarding the 500 foot distance from IH 45 or the 42-1/2 feet height limit within the 500 foot distance.

  46. Rules for signage along IH 45 Section 1104.5(1)(a)1) A ground sign within 500 feet of Interstate 45 may be constructed to a height not to exceed 42-1/2 feet

More Related