May 8, 2019 REGULAR MEETING OF THE CITY COUNCIL OF THE
CITY OF NEDERLAND
4:90 p.m. May 8, 2019
1. MEETING
The meeting was called to order at 4:30 p.m. by Mayor Pro Tem Neal at the Nederland
City Office Building, 207 N. 1.2t^ Street, Nederland, Texas. See attached for quorum.
The following statement was posted:
"PIJRS IJANT TO SECTION 30-07, PENAL CODE cTRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANUGUN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE cmANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY_"
2_ EMPLOYEE GROUP BENEFITS
i. The regular meeting was recessed at 4:31 p.m. by Mayor Pro Tem Neal for the
purpose of conducting a City of Nederland Employees Benefits Trust meeting to
award bids for employee group benefits.
H. The regular meeting was reconvened at 4:51_ p.m. by Mayor Pro Tem Neal.
iii. A motion was made by Councilmember Austin and seconded by Councilmember
Belaire to authorize the transfer of funds from the City of Nederland to the City of
Nederland Employee Benefits Trust bank account from which monthly insurance
premiums shall be paid. MOTION CARRIED_
Ayes: Mayor Pro Tem Neal, Councilmembers Austin, and Belaire.
Noes: None.
3. ADJOURN
There being no further business a motion was made by Councilmember Belaire and
seconded by Mayor Pro Tem Neal to adjourn the meeting at 4:53 p.m. MOTION
CARRIED_
Ayes: Mayor Pro Tem Neal, Councilmembers Austin, and Belaire.
Noes: None.
F NEp6--� l J d
Billy Neal, Mayor Pro Tem
Jr`Il :__ City of Nederland, Texas
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City of Nederland, Texas
CITY OF NEDERLAND
COUNCIL MEETING ATTENDANCE SHEET
NAME TITLE PRESENT ABSENT
R.A. Nugent Mayor
Talmadge Austin Council Member—Ward I
Billy Neal Council Member—Ward II
Vacant Council Member—Ward III
Craig Belaire Council Member—Ward IV
Chris Duque City Manager
Gay Ferguson City Clerk
Jesse Branick City Attorney
Cheryl Dowden Director of Finance
Gary Porter Police Chief
Terry Morton Fire Chief
Robert Woods Director of Public Works
George Wheeler Building Official
Victoria Klehn Librarian
Holly Guidry Human Resources Director
Joni Underwood Executive Secretary
Angela Fanette Parks Director
illy Neal, M or Pro Tern
p-LaAivitok_
pay Fergus(bn, City Clerk
Date
SPECIAL MEETING OF THE CITY OF NEDERLAND
EMPLOYEE BENEFITS TRUST
4:31 p.m. May 8, 2019
1. MEETING
The meeting was called to order at 4:30 p.m. by Vice-Chairperson Billy Neal at the
Nederland City Office Building, 207 N. 12TH Street, Nederland, Texas.
The following statement was posted:
"PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER
WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER
SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING
LAW), MAY NOT ENTER THIS PROPERTY WITH A HANDGUN THAT IS CARRIED
OPENLY."
2. APPROVAL OF MINUTES
A motion was made by Vice-Chairperson Neal and seconded by Trustee Austin to
approve the minutes of the May 7, 2018 meeting of the Employee Benefits Trust as
written. MOTION CARRIED.
Ayes: Vice-Chairperson Neal, Trustees Austin, and Belaire.
Noes: None.
3. HEALTH INSURANCE
Mr. Duque, said the City's health insurance provider is United HealthCare (UHC) which
expires on June 30th. When bids were received for next year's insurance premiums,
United HealthCare submitted a renewal with an increase of 37% due to a loss ratio of
141.5%. At the February 25th City Council meeting, staff was authorized to solicit a
Request for Proposals which included health insurance. Mr. Duque stated after
reviewing bids received and meeting with Mrs. Guidry, the City's insurance consultant
(IPS), and the employee insurance committee; he recommended awarding the bid to
Blue Cross/Blue Shield of Texas (BCBSTX) with blended rates (active employees
indirectly subsidizing retiree insurance) and providing as the City's standard plan, a
$1,500 deductible and $6,500 maximum out of pocket. The additional cost to the City
is $26,580.12 or 66.1% of the total increase in health insurance costs.
A motion was made by Trustee Austin and seconded by Vice-Chairperson Neal to award
a bid for employee health insurance to Blue Cross/Blue Shield with blended rates and
providing as the City's standard plan a $1,500 deductible and $6,500 maximum out of
pocket. The City's defined contribution would be $613.06 for employee only,
$1,020.02 for employee + spouse, $737.52 for employee + children and $1,274.23
for employee + family as recommended by the City Manager, IPS and the City of
Nederland Insurance Committee. MOTION CARRIED.
Ayes: Vice-Chairperson Neal, Trustees Austin, and Belaire.
Noes: None.
4. DENTAL INSURANCE
Mr. Duque, stated the current dental provider is United HealthCare which expires on
June 30th and that city staff was authorized to solicit bids for employee group benefits
on February 25th including dental insurance. The City pays 100% of employee
premiums and 0% of dependent premiums regardless whether the employee chooses
the HIGH or LOW plan. The majority of city employees utilize the HIGH plan. United
HealthCare's renewal for dental insurance was submitted with a 14% increase. Blue
Cross/Blue Shield provided a quote of 7.6% increase and United Concordia provided a
quote with a 1.07% increase. The three quotes closely match the existing benefits
level. While the United Concordia quote is lower, by awarding the dental bid to Blue
Cross/Blue Shield, the City is able to receive a 1% discount off medical premiums,
which saves the City over $16,000 per year. The cost savings via bundling offsets the
higher quote from Blue Cross/Blue Shield and is more advantageous to the City. Mr.
Duque, the Employee Insurance Committee, insurance consultant, and Mrs. Guidry
recommend awarding the dental insurance bid to Blue Cross/Blue Shield of Texas.
5. LIFE INSURANCE
Mr. Duque, said the City's current life insurance and long-term disability provider is
Lincoln Financial which expires on June 30th. Mr. Duque, the Employee Insurance
Committee, insurance consultant, and Mrs. Guidry recommend awarding the bid to
Dearborn National, which provided a 9.6% rate increase. In awarding the Life
Insurance bid to Dearborn, which is an affiliate of Blue Cross/Blue Shield, a 2%
discount off medical premiums is offered. This is a savings of $32,000 to the City.
6. ADJOURN
There being no further business a motion was made by Trustee Austin and seconded
by Trustee Neal to adjourn the meeting at 4:51 p.m. MOTION CARRIED.
Ayes: Vice-Chairperson Neal, Trustees Austin, and Belaire.
Noes: None.
Billy Neal, Vice-Chairperson
City of Nederland Employee Benefits Trust
ATTEST:
Talmadge Austin, Secretary
City of Nederland Employee Benefits Trust