02 City Council (03/08/04)
MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL
March 8, 2004
The City Council of the City of Paris met in regular session, Monday, March
8, 2004, 6:00 P.M. at Paris Junior College, Bobby R. Walters Applied
Technology Building, Room 1206, 2400 Clarksville Street, Paris, Texas. Mayor
Curtis Fendley called the meeting to order with the following Council Members
present: Jim Bell, Jay Guest, Joe E. McCarthy, Francine Neeley, Willie Weekly,
Sr. and Benny Plata. Also, present were City Manager Michael E. Malone,
City Attorney Larry W. Schenk and City Clerk Mattie Cunningham.
Mayor Fendley called for approval of the minutes from the previous meeting
of February 9, 2004. A motion was made by Councilman Bell, seconded by
Mayor Pro Tem McCarthy, for approval of the minutes as presented. The
motion carried 7 ayes, 0 nays.
City Manager Malone advised that the City Council had been furnished with
minutes for the Housing Authority of the City of Paris for November 21, 2003
and January 20, 2004, and the Library Advisory Board for February 18, 2004.
A motion was made by Councilman Weekly, seconded by Councilman Guest,
for approval of those minutes as presented. The motion carried 7 ayes, 0 nays.
Mary Clark, Attorney, representing the Executor of Ted Brown’s Estate,
Amanda Brown Whitaker, appeared before the City Council requesting that the
city accept donation of two vacant lots on S. Main Street to be an urban park.
Ms. Clark said that these lots are located at 124 and 120 S. Main Street. The
building had burned. Ms. Clark advised that prior to his death, Mr. Brown had
inquired about an urban park. She advised that at one time, the city looked into
this matter, but she was not sure if anything had been decided. His estate is
interested in giving the land to the City of Paris. Ms. Clark said the lots were
valued at approximately $10,000.00 and there are no taxes owed.
Ms. Clark said the idea of a pocket park is exciting because so much is
happening downtown, thanks to the support of this Council and people getting
involved in the downtown area. Mrs. Clark said Clarksville and Bonham have
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March 8, 2004
Page 2
pocket parks. It is not a new idea for this region. She thought it would be a
place where people could sit and relax and it would look quite wonderful if the
City of Paris would take it and make it into a park and she asked the City
Council to consider this matter. Ms. Clark said it was her understanding that
Terry Townsend, Director of Public Works, had done a report which indicated
one of the walls needed work because of the fire. She did say that the Main
Street Group is interested in having it and when it is given to the city, the city
would be able to use prison labor to do most of the work.
Terry Townsend, Director of Public Works, came forward, advising that there
was a company, at one point in time after the fire, that the city asked to come
down and give a letter that commented that there were some bricks that would
be needed to be removed, and the brick that stuck up above the building
adjacent to it that all of that wall be removed because of the fear of the wall
falling, but that is as far as it ever got.
City Manager Malone recommended that the city have a structural engineer tell
the city if they needed to demolish the building or whether the walls can stand
as they are.
City Attorney Schenk said he is accustomed to the city council adopting a
resolution accepting the lots as a donation and the resolution would stipulate
the city as a tax exempt entity and this is a tax exempt gift. He did not have a
problem stipulating the value as stated in the Lamar County Appraisal
District’s records. Ms. Clark said there is another request that there be a plaque
marking the park in memory of Ted N. Brown.
After discussion, a motion was made by Councilman Bell directing city staff
to have a structural engineer look at the wall and report back to City Council.
The motion was seconded by Councilwoman Neeley and carried 7 ayes, 0 nays.
Resolution No. 2004-047, electing, pursuant to 42 U.S.C. Sec 300GG-21,
exemption from the requirements of the Health Insurance Portability and
Accountability Act (HIPAA) and the Public Health Services Act (PHS);
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March 8, 2004
Page 3
authorizing the execution of the necessary election and notice form under 42
U.S.C. Sec. 300GG-21, was presented. A motion was made by Councilwoman
Neeley, seconded by Councilman Bell, for approval of the resolution. The
motion carried 7 ayes, 0 nays.
Resolution No. 2004-048, authorizing the submission of a Housing Investment
Partnership Program Application to the Texas Department of Housing and
Community Affairs for the Owner Occupied Rehabilitation Program Fund;
authorizing the Mayor, City Manager, Director of Community Development,
and Finance Director to execute all necessary documents as appropriate and to
act as the city’s authorized representatives in all matters pertaining to the city’s
participation in the Homebuyer Assistance Program, was presented. A motion
was made by Councilman Weekly, seconded by Councilman Bell, for approval
of the resolution. The motion carried 7 ayes, 0 nays.
Resolution No. 2004-049, opposing any School Finance or Tax System
Reforms that would negatively affect city revenues and economic development,
was presented. A motion was made by Councilwoman Neeley, seconded by
Mayor Pro Tem McCarthy, for approval of the resolution. The motion carried
7 ayes, 0 nays.
Resolution No. 2004-050, approving and authorizing execution of an
amendment to the professional services agreement with Brinkley-Sargent
Architects to provide architectural services for conversion of the UARCO
building to a new police, court, and jail facility; authorizing the issuance of a
notice to proceed with the construction documents phase of such services, was
presented. A motion was made by Councilman Guest, seconded by
Councilwoman Neeley, for approval of the resolution. The motion carried 7
ayes, 0 nays.
Resolution No. 2004-051, authorizing the Mayor to execute, on behalf of the
City of Paris, an engineering service agreement with Hayter Engineering for the
Heritage Park Paving and Drainage Improvements Project, under the terms and
condition and in a form approved by the City Attorney, was presented. A
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March 8, 2004
Page 4
motion was made by Councilwoman Neeley, seconded by Mayor Pro Tem
McCarthy, for approval of the resolution. The motion carried 7 ayes, 0 nays.
Resolution No. 2004-052, authorizing the advertisement for bids for furnishing
and servicing employee uniforms for various city departments, was presented.
A motion was made by Councilman Bell, seconded by Councilman Weekly, for
approval of the resolution. The motion carried 7 ayes, 0 nays.
Resolution No. 2004-053, approving the plans and specifications for the
rehabilitation and reconstruction of the City Hall and Central Fire Station
Building; authorizing the advertisement for bids for said construction;
authorizing a personal services agreement with Jerry L. Haning for construction
management services, was present.
David Denney with Denney Architects, Inc., came forward presenting drawings
of the proposed plan for reconstruction of City Hall and the Central Fire Station
Building.
City Manager Malone advised that when they envisioned this project, they
hoped they would be able to remodel the old bays of the old Central Fire
Station into a handicapped accessible council chamber without the expense of
putting an elevator in the building. The architects have informed him that they
will have to have an elevator to have all floors of the building accessible. City
Manager Malone said there is a basement where there are offices; there is the
ground level with the Fire Station Bays; there is a first floor; and a second
floor making four stops for the elevator. City Manager Malone said the
Denneys have created a design that incorporates the old City Attorney’s office
as the area where the elevator will be placed. The exterior of the building will
be maintained historically. One of the key features of this project is to
rehabilitate the old overhead doors into windows that would resemble the
original doors of the station as it was first built with an entryway being on the
west end. The City Manager said on the west end, there will be handicap
accessible restrooms and a vestibule when you walk in. There will be a great
deal more seating. The City Council would be located in an area on the north
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March 8, 2004
Page 5
side of the building near the old sliding back door of the old Fire Station. He
said there will be a room in the northeast corner that can be a chamber for an
executive session along with being a conference room. There will be facilities
for audio/visual and storage. City Manager Malone advised that it would
enable the city to utilize the office space above where the firemen’s quarters
were in the past and at some later date, the city can remodel that using prison
labor.
City Manager Malone explained that part of what makes this project expensive
is that in 1974 the City Hall building, which is a separate building from the Fire
Station, was completely remodeled and rewired. The Fire Station has not been
rewired. City Manager Malone advised that there will be three contracts:
electrical, plumbing and mechanical. He said they would have a construction
manager and would hope to use the methodology that the City Council set forth
for small jobs and work by the day to utilize the carpentry skill of some of the
local carpenters. The City Manager said in order to hold costs down they
wanted to use prison labor for demolition and other activities, and city forces
for placing concrete for the elevator shaft and new floor. He said that a lot of
things have to fall into place and have good luck to make this budget, which
has been presented to the City Council and has been trimmed down from the
original budget. The total project cost is $537,717.00, assuming all things go
well. The City Manager said they would have the opportunity to bring back to
the City Council any problems they might have and make changes or hold back
on those portions of the projects that they need to in order to make it come in
within the money. He advised that funds are available within the last
Certificate of Obligation issuance that the city had to do this project.
Gene Anderson, Director of Finance, came forward advising that the City Hall
renovation was one of the original projects named in the bond issue and the
money that is not being used is invested. On a question by Councilman Guest,
Mr. Anderson advised that the city cannot pay ahead of time, call any bonds in,
or prepay the bonds until they are ten years old.
Councilman Bell asked Mr. Denney if this included everything, furniture,
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March 8, 2004
Page 6
carpet, etc. Mr. Denney advised that this is not a lump sum estimate. Mr.
Denney advised that there are a lot of unknowns in this old building, especially
on how they excavate under those footings so they do not undermine the
foundation thus causing the building to shift. He said that work needs to be
paid for on a time and material basis as far as he is concerned and that is going
to get the city the best price because the contractor has to put a lot of guess
money in his bid.
After further discussion, a motion was made Councilwoman Neeley, seconded
by Councilman Bell, for approval of the resolution. The motion carried 7 ayes,
0 nays.
Mayor Fendley announced that the next item on the agenda was approving and
authorizing the award of a contract for medical, dental, vision, life, and long-
term disability for the employees and employees’ dependents of the City of
Paris.
Gene Anderson came forward advising that he has furnished the City Council
with a memorandum explaining that medical insurance was discussed quite
extensively during the budget process and also the Benefit Subcommittee
talked about it. Using the specifications that have been reviewed by the City
Council and the Benefit Subcommittee, the city went out for proposals for a
fully-funded and a self-funded plan. Mr. Anderson explained that he put in the
proposal to bid these specifications. He had also said if anyone wished to bid
an alternate set of specifications to feel free to do so, but to identify those so he
would be able to tell how they varied from the original specifications. He
explained the reason for allowing them to do that was in case the city did not
receive a bid that was acceptable at the specifications that they had asked for,
they would have some alternatives without having to go back through a bid
procedure again because the city would be under a time restraint. He said he
stated very clearly that if the city received acceptable proposals that met the
specifications, those would be the only ones that would be considered.
Mr. Anderson advised that he had received 12 variations of fully funded plans.
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March 8, 2004
Page 7
Two matched the specifications; ten did not match the specifications. He said
he had received 48 variations of self-funded plans. Four met the specifications;
twelve proposals lacked enough information to tell if they met the
specifications. But for the purposes of his analysis, he assumed that they did
meet the specifications and he considered those proposals.
Mr. Anderson said, on the basis of his examination, the best fully funded plan
that met the specifications is the one being proposed through the Capps
Insurance Agency with Humana being the primary underwriter or insurance
company involved.
Mr. Anderson said under the self-funded plan, the Texas Municipal League
plan had the best price.
Mr. Anderson said he described both plans in his memo. The advantage of a
fully-funded plan is knowing the exact cost unless the employee census
changes. The city will pay in for a certain number of employees, with certain
coverages, at a fixed premium.
Mr. Anderson said a self-funded plan is not as clear because there are fixed and
variable costs. The fixed costs are the administrative charge for processing
claims and the stop loss insurance. He explained that there were two types of
stop loss coverage. One pays on an individual claim that exceeds a certain
number and the reinsurance carrier would reimburse the City. The other pays
if the group as a whole exceeds a certain number.
Councilman Bell asked Mr. Anderson to clarify the cost the city was paying for
a fully-funded plan. Mr. Anderson explained that the city did not have a fully-
funded plan, but they have a self-funded plan. Mr. Anderson advised that the
city was paying $500.00 per employee per month under the previous budget,
and this year the City Council budgeted $450.00 per employee. The target goal
as to what would be acceptable to get a fully-funded, or self-funded plan that
they thought would be workable and feasible if that contribution was bid. He
thought they had this here anyway the City Council wanted to go. Mayor
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March 8, 2004
Page 8
Fendley asked if that included dental and visual coverage and Mr. Anderson
said it did include those coverages.
Mr. Anderson pointed out that the fully-funded plan would cost $2,116,800 and
the employees will pay another $456,855.00 for dependent coverage under the
Capps proposal. He said the cost under the Texas Municipal League proposal
for the self-funded plan would be $202,630.00 for the administration fee and
$309,181.00 to the reinsurance company for both types of stop loss coverage.
As TML approves and processes claims, the city pays them. In this case, there
would be $2,162,844.00 available to pay claims.
Steve Capps with Capps Insurance came forward and introduced Jay Tondrum
and Gary Cole, Vice President of Sales, out of Dallas. Mr. Capps stated that
Mr. Anderson is probably right about 35% to 40% penetration as far as the
physicians go. They recognize the fact that as a public employer in town, the
city needs to have a good relationship with the medical community and
Humana understands that also. Mr. Capps said Humana has certainly given
them the indication that if they are fortunate enough to be selected, they would
do a blitz on the city physicians and try to take care of that.
Gary Cole, Vice President of Sales with Humana in the DFW Metroplex,
appeared before the City Council. Mr. Cole said that one thing that they do in
preparation to respond to an RFP is they do a GO Access Report, which is
matching their network up with where the city employees live. He said that
they have done that and their criterion for physicians is they have two providers
within 10 miles of any one of the city employees. Mr. Cole advised that they
matched that before they submitted the RFP and they knew they had an 89.6%
match which is very high. Mr. Cole said if you expand and go with providers
within 15 miles you will have a match that approaches 95%. If you go to 20
miles, you will have six people to fall out of your population and you will have
about a 98% average. He said that would not really answer the question of
what penetration you have for total physicians. He said that he could not
confirm 35% or 40% because he does not know what the city’s network was.
Mr. Cole said they would make a diligent effort to work with Mr. Anderson and
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March 8, 2004
Page 9
the city to make sure they have the appropriate network. He said they do have
the hospital and they will do the best they can to make that work.
Councilwoman Neeley asked if the Council has to decide this tonight. Mr.
Anderson advised that there is a May 1, 2004 renewal date. Either insurance
company would like the plan and all the employees enrolled at a minimum of
30 days ahead of the start date. He advised they had a target enrollment
scheduled in two weeks whether insurance is continued with TML or changes
to someone else. It takes three to four days to go through that process and get
that information together and they still have to go back and input the data. That
will place them right up to that 30 days. Councilwoman Neeley asked if Mr.
Anderson’s office handles everything or do you sub that out. Mr. Anderson
said in terms of processing the claims, the Texas Municipal League does that
as part of their administration along with claim reviews, looking over billing,
and things of that nature. Mr. Anderson advised that what his office does is
enrollment, answer questions from the employees, and the bulk of the
administration falls on TML because the city is paying them to do that.
Councilman Guest asked if anyone else gave consideration for EPA? Mr.
Anderson said yes, they do because all first party administrators work pretty
much the same. Mr. Anderson advised that the only reason he said that TML
is the best is because their charge for doing the administration is the lowest
one; and the city does not have any processing problems. He said it is a matter
of policy and City Council can decide to go fully-funded or self-funded.
Mr. Anderson said that with self-funding the city is bearing more risk, but the
city stands to gain more if you bear more risk and with the fully-funded you are
going to know the cost up front. Mr. Anderson said he has a number from last
year on the stop loss coverage and the city is in the process of processing a
refund from the city’s stop loss carrier of about $118,000.00.
Councilman Guest asked the Mayor if it would be acceptable to entertain any
questions or concerns from other parties of the bid process as represented here
tonight. The Mayor advised that he did not have a problem with that, if the
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March 8, 2004
Page 10
other Council Members did not.
Mayor Fendley asked if there was anyone present who wished to speak
regarding this matter.
Wes Adamson with Adamson Financial Group was present telling the City
Council that they put in a proposal. One was fully-funded with PacifiCare and
the other one was fully-funded with Aetna. Mr. Adamson said that the Aetna
proposal came in considerably better than the PacificCare proposal. He said
one reason they chose those companies is strictly because of network access.
Mr. Adamson said without good GO access and a GO access report, you really
do not have a viable plan. It is going to hurt your employees because if they are
not on a network basis it is going to cost more money. Let’s say they can get
them in there, but they have had a considerable amount of time to seek the
doctors in this area to put them on a network basis, but at this time they have
not chosen to do so, or the doctors have chosen not to do so. Mr. Adamson
said he would take that into consideration based upon the best interest of the
city employees.
Linda Hooper with Grizzaffi Darby LLC, came forward telling the City Council
that they, too, submitted a bid proposal and stated that she agrees with Mr.
Adamson regarding the networking. Ms Hooper stated that employers with as
many employees as the City of Paris should look at self-funded plans because
they have more control over the plan. She said the city has the ability to
identify and manipulate the plan design to help control the cost. There is an
additional risk involved in that; however, you are also looking at an additional
savings to the city and the citizens’ tax dollars.
After additional discussion with Mr. Anderson, Mr. Cole, and Mr. Adamson,
Mayor Fendley announced that the City Council would take a short break at
7:35 P.M.
At 7:45 P.M. the Mayor reconvened the council meeting.
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March 8, 2004
Page 11
A motion was made by Councilman Bell, seconded by Councilwoman Neeley,
to table action on the resolution awarding a contract for Medical, Dental,
Vision, Life, and Long-term Disability for the employees and employees’
dependents until Monday, March 15, 2004 at 5:30 P.M. The motion carried 7
ayes, 0 nays.
Resolution No. 2004-054, reappointing Pike Burkhart, Patsy Davis, Bailey
Gant, Suzy Harper, Renee Harvey, David House, Cari Johnson, Zachary Saffle,
Linda Suarez, Karen Wilkerson, and Barbara Wilson, to serve as members of
the Main Street Advisory Board for terms of one (1), two (2) years, and three
(3) years beginning April 1, 2004, and ending March 31, 2005, March 31,
2006, and March 31, 2007, respectively; provided, however, that each of the
reappointed or newly appointed Board members shall determine by the drawing
of lots, three (3) members whose first full term shall be one (1) year in duration,
four (4) members whose first full term shall be two (2) years in duration, and
four (4) members whose first full term shall be three (3) years in duration, and
the staggered three (3) year terms thereby established shall thereafter be
maintained, was presented. A motion was made by Councilman Bell,
seconded by Mayor Pro Tem McCarthy, for approval of the resolution. The
motion carried 7 ayes, 0 nays.
Resolution No. 2004-055, appointing Edwin Pickle to serve the unexpired term
of Edmond Castlebury, which ends June 30, 2004, as a member of the Band
Commission of the City of Paris, was presented. A motion was made by
Councilman Weekly, seconded by Councilman Bell, for approval of the
resolution. The motion carried 7 ayes, 0 nays.
Resolution No. 2004-056, appointing Glen Chapman to serve the unexpired
term of Col. James W. Ashmore, Jr. which ends December 31, 2004, as a
member of the Airport Advisory Board of the City of Paris, was presented. A
motion was made by Councilman Bell, seconded by Mayor Pro Tem McCarthy,
for approval of the resolution. The motion carried 7 ayes, 0 nays.
Mayor Fendley called for recommendations regarding appointing members to
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March 8, 2004
Page 12
the Board of Adjustment. Mayor Fendley advised the Council that this board
has not met in some time and there is a need to appoint members to this board.
He said he would like to have some Council input over the next couple of
weeks so this board could be reappointed. He asked that the Council Members
get those names to him or the City Manager.
Mayor Fendley announced that the next item was discussion of and possible
direction to staff regarding the paperless agenda.
City Manager Malone advised the Council that they had been given a copy of
the memorandum that Lisa Wright prepared of the pros and cons of departing
from the current paperless agenda.
Mayor Fendley polled the Council asking who was in favor of the paperless
agenda. All of the Council Members agreed to keep the paperless agenda with
a vote of 7 ayes, 0 nays.
Resolution No. 2004-057, approving a new system of performance evaluation
and associated evaluation instruments for use in evaluating the performance of
the City Manager, City Attorney, and Municipal Court Judge; establishing a
policy of periodic performance evaluations for the City Manager, City Attorney,
and Municipal Court Judge; repealing all prior Resolutions and evaluation
instruments in conflict herewith, was presented. A motion was made by
Councilman Bell, seconded by Mayor Pro Tem McCarthy, for approval of the
resolution. The motion carried 7 ayes, 0 nays.
Mayor Fendley called for discussion and consideration of possible action
regarding the evaluations of the City Manager, City Attorney and the Municipal
Court Judge.
Gene Anderson, Director of Finance, came forward reading the following
evaluation for Thomas E. Hunt, III, Municipal Court Judge:
(1) Communication Skills3.73
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March 8, 2004
Page 13
(2) Equity and Fairness3.85
(3) Interpersonal Skills/Attitude3.85
(4) Council Requests3.70
(5) Total Budget Management3.73
Total Aggregate Total Points3.77
Average Composite Evaluation Rating3.77
Mr. Anderson read the following evaluation for Larry W. Schenk, City
Attorney:
1) Communication Skills3.57
(2) Equity and Fairness3.30
(3) Interpersonal Skills/Attitude3.41
(4) Conflict Resolution3.24
(5) Work Habits3.57
(6) Planning & Supervisory Skills & Leadership3.29
(7) Council Requests3.33
(8) Total Budget Management3.56
Total Aggregate Total Points3.41
Average Composite Evaluation Rating3.41
Mr. Anderson read the following evaluation for Michael E. Malone, City
Manager:
(1) Communication Skills3.16
(2) Equity and Fairness2.31
(3) Interpersonal Skills/Attitude2.03
(4) Conflict Resolution2.43
(5) Work Habits3.46
(6) Planning Skills2.57
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Page 14
(7) Supervisory Skills & Leadership2.70
(8) Council Requests2.81
(9) Total Budget Management2.56
Total Aggregate Total Points2.67
Average Composite Evaluation Rating2.67
A motion was made by Councilman Bell that the City Council terminate City
Manage Malone effective March 31, 2004 and suspend him this evening.
Councilman Bell stated that he has been here ten years, primarily watching the
city, and he thought there was a need for a change in direction. He stated that
he really believes that we need a change and he has seen City Manager Malone
try lately, but only lately. The motion was seconded by Councilman Plata and
carried 5 ayes, 2 nays, Councilman Weekly and Mayor Pro Tem McCarthy
voting no.
City Attorney Schenk advised the City Council that there is a provision in the
City Charter that allows the City Manager to have the opportunity to respond
before the termination date.
Mayor Fendley advised that Mr. Malone needs to turn in his keys as he has
been suspended and can make arrangements to pick up his personal belongings
with Police Chief Louis. Mayor Fendley asked Mr. Malone to give his keys to
City Attorney Schenk or to him and he will hold on to them and would go from
there. Mayor Fendley told Mr. Malone that he would be in touch with him to
plan his response and he has until March 31, 2004 to do that.
City Attorney Schenk presented the following petition for a zoning change:
Cindy Gates, Lot 3, City Block 328, 3800 Block of S.W. Loop 286 from
Agricultural (A) to a Planned Development District.
Mayor Fendley referred the petition to the Planning and Zoning Commission
for their study and recommendation at their meeting schedule for April 5, 2004
and before the City Council April 8, 2004.
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March 8, 2004
Page 15
There being no further business, a motion was made by Mayor Pro Tem
McCarthy, seconded by Councilwoman Neeley, to adjourn the meeting. The
motion carried 7 ayes, 0 nays.
_________________________________
CURTIS FENDLEY, MAYOR
ATTEST:
______________________________________
MATTIE CUNNINGHAM, CITY CLERK