HomeMy WebLinkAboutMinutes - 11/23/1999 - Finance and Personnel Committee � FINANCE COMMITTEE MEETING
November 23, 1999
Committee Members Present: Baird, McClatchey, Murgatroyd
Others in Attendance: Mayor Cuda, City Clerk Althoff, City Administrator
Lobaito, Assistant Administrator Maxiener, Chief of Police Kostecki
Finance Chairperson Alderman Murgatroyd opened the meeting at 7:00 p.m. He
stated the purpose of this meeting wa.s to consider reallocation of police budget
line items, refunding of 1990 General Obligations Bonds, Personnel Policy
Manual revisions, and the Waters Edge I Condorninium Association's offer for
the Thornwood Drainage Ditch easement and project.
REALLOCATION OF POLICE BUDGET LINE ITEMS
City Administrator Lobaito reported Chief of Police Kostecki is requesting
realloca.tion of 1999-2000 budget line items to purchase essential emergency
equipment and supplies which were not included in the budget. Chief Kostecki
is requesting the committee approve the use of$6,000 in reimbursement
monies recently received from the North Central Narcotics Task Force as well as
the reallocation of$12,000 originally budgeted to rebuild a patrol car. Chief
Kostecki reported he has had personal experience with the rebuilt patrol car
program and is recommending this option be reevaluated. He also stated
� obtaining repair parts for older model cars was frequently difficult.
A lengthy discussion followed addressing the Police Department's current
status regarding patrol car availability and the need to address additional
vehicle purchases in the 2000-2001 budget. Chief Kostecki noted a lack of
available patrol cars for shift off'icers in the event members of the previous shift
are held over, as occurred recently with the emergency repa.ir of a 1VICOR gas
line. City Administrator Loba.ito clarified if the rebuild option were to be
eliminated, the 2000-2001 budget will include an additional patrol car
purchase. He also noted the current expenditure report reflects a signif'icant
credit balance in the 1999-2000 budget account for patrol car repair.
Chairperson Alderman Murgatroyd requested Chief Kostecki and City
Administrator Lobaito develop projections regarding replacement patrol vehicles
for further consideration during 2000-2001 budget discussions. Further
discussion occurred regarding repair and maintenance records for the patrol
cars. Although computer records do not delineate repairs and maintenance
costs for individual cars staff will attempt to provide this information to the
committee, as per their request, for further consideration during budget
discussions.
Motion by Baird, seconded by McClatchey to recommend to full council the
reallocation of the Police Department 1999-2000 budget line item enti.tled
PATROL CAR REBUILD for$12,000.00 and the allocation of North Central
� Narcotics Task Force reimbursement rnonies totaling$6,000.00 for the
Finance Committee Minutes
� November 23, 1999
Page'l�vo
purchase of essential emergency equipment including handguns, breathalyzers,
OSHA sirens, and fire extinguishers not to exceed $18,000.00.
Voting Aye: Baird, McClatchey, Murgatroyd
Voting Nay: None
Absent: None
Motion carried.
REFUNDINQr 1990 MUNICIPAL BUILDINQr QrENERAL OBLIGATION BONDS
Assistant Administrator Ma�ceiner informed the committee Staff has been
investi�ating the possible refunding of the Municipal Building General
Obligation Bonds since June of 1999. The existing bonds contain a call option
far December of 2000. Low interest rates and a potential savings of
approximately$56,000 made the refunding option an attractive, viable
consideration. Staff's original intent was to combine the advanced refunding
with the debt issued for the water main extension or central wastewater
treatment plant expansion to share administrative costs. The refunding was
not addressed however due to delays with both the water main extension and
� central wastewater treatment plant expansion.
In response to committee inquiry, Assistant Administrator Maxeiner noted. a
savings would still be realized even though interest rates have increased
between 0.25% and .40%. A refunding analysis completed by the financial firm
of Griffin, Kubik, Stephens and Thompson in conjunction with the City of
McHenry's financial advisor, Harold Warren, shows a savings of approximately
$38,000.
In response to Chairperson Alderman Murgatroyd's inquiry regarding the
process, Assistant Administrator Maxeiner reported the refunding options and
figures will be analyzed and compiled for council action. An ordinance
authorizing the refunding based on the final figures will be presented for formal
council action. Responding to Alderman Baird's inquiry, Assistant
Administrator Maxeiner stated the life of the bonds will not be extended. The
interest rate will be lowered. Assistant Administrator Maxeiner also noted the
Griffin, Kubik, Stephens and Thompson analysis reflects bond issuance costs of
$15,000. He opined the cost will be closer to $10,000 allowing for an additional
$5,000.00 savings.
Some discussion followed. It was the consensus of the committee to direct staff
to proceed with the refunding investigation and draft the refunding ordinance
and financing package for full council consideration.
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Finance Committee Minutes
� November 23, 1999
Page Three
Motion by Baird, seconded by McClatchey to recommend to full council the
pursuit and investigation for the refunding of the Municipal Building 1990
General Obligation Bonds and to draft the refunding bond ordinance for full
council consideration.
Voting Aye: Baird, McClatchey, Murgatoryd
Voting Nay: None
Absent: None
Motion carried.
THORNWOOD DRAtNACi�E DITCH/REQUE8T FROM WATER'S EDGE CONDO
ASBOCIATION I
Chairperson Alderman Murgatroyd informed. the committee correspondence had
been received from the Waters Edge Condominium Association Unit 1 agreeing
to a final settlement figure of$4,500. for the Thornwood Drainage Ditch project.
City Administrator Lobaito reminded the committee representatives from the
Waters Edge Condominium Association Unit I attended an August Finance
Committee Meeting where the committee originally considered the Association's
� request for reimbursement. Chairperson Alderman Murgatroyd stated his wish
to resolve the matter. Some discussion followed regarding the execution of the
original settlement agreement in 1995. It was the consensus of the committee
to send this issue to full council for consideration and final resolution.
Motion by McClatchey, seconded by Murgatroyd, to send to full council a no
recornmendation vote regarding the payment of$4,500 to the Waters Edge
Condonunium Association Unit I for settlement of the Thornwood Draina.ge
Ditch project and easement.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: Baird
Absent: None
Motion carried.
In response to City Administrator Lobaito's request the committee agreed to
discuss an additional agenda item regarding the Park and Recreation
Department's Y2K Computer request.
FARKS AND RECREATION COMPUTER PURCHABE REQUEBT/Y2I�
City Administrator Lobaito distributed written information regarding the
current computer status in the Park and Recreation Department. He explained
he was notified in September, by Park and Recreation Director Merkel, that
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Finance Committee Minutes
� November 23, 1999
Page Four
some of the Park and Recreation Department computer hardware was not Y2K
compliant. Staff investigated all available options and is recommending the
purchase of a new Y2K c;ompliant server and five new worksta.tions for
approxi,mately $10,000. The purchase would be expensed through the
reallocation of 1999-2000 budget line items. City Administrator Lobaito noted
as several capital equipment projects and items were purchased under budget,
enough money remains in the budget to cover the computer expense.
Assistant Administrator M�einer noted three quotes were obtained yesterday.
The lowest quote, obtained from CDW of Buffalo Grove was approximately
$8900.00. Alderman Baird noted this request was similar to that of the Police
Department's request for budget reallocation of funds to purchase essential
emergency equipment.
Some discussion followed regarding equipment size and life expectancy. Staff
explained the balance of the hardware upgrade would be addressed during
2000-01 budget discussions.
Motion by McClatchey, seconded by Baird to recornmend to full council the
realloca.tion of Park and Recreation Department budget figures to purchase new
computer hardware in an amount not to exceed $10,000.00.
�` Voting Aye: Baird, McClatchey, Murgatroyd
Voting Nay: None
Absent: None
Motion carried.
City Administrator Lobaito noted this item would be addressed at the
December 1, 1999 regularly scheduled council meeting under his Department
Head report.
PER30NNEL POLICY REVISIONS
City Administrator Lobaito informed the committee the City's legal firm;
Zukowski, Rogers, Flood and McArdle reviewed the existing City of McHenry
Personnel Policy. Recommended revisions have been inserted and underlined.
The committee proceeded to review the manual on a page by page basis with
the following comments;
Page 2 language inserted to maintain consistency with Municipal
Code with regard to the City Clerk's appointment of staff. Further cl�cation
regarding clerk/collector staff designation followed. Staff was directed to
provide current organizational structure of the Clerk/Collector office staff and
`,,. possible alternatives.
Finance Committee Minutes
� November 23, 1999
Page Five
Page 4(1.3) clarification of Council approval for hiring, but not firing.
Page 4(1.4) clarification of RPB Regular part-time with benefits..appear
to be several categories of part time with benefits. Need to clarify what benefits;
uniform allowance, IMRF, etc.
Page 6(1.7) language was updated by the attorney to meet current
federal and state requirements.
suggestion was made to delete "for all employeesn on line 3
and replace "employees" with "applicants" in line 5.
Page 8(2.1) clarification of"trained" on line 3, define "as trained by risk
management carrier"
(2.1) [3) clarification of?8 hours after the accident as opposed to
earlier reference of within 32 hours
Page 10(2.1) E clarification of"successful" in line 8 referencing
completion of ernployee assistance program
Page 12(2.2) E clarification of term "�ranting agenc�' in line 2
� Page 16(3.2) clarification langua�e regarding"prior to coming to
worl�' ... should be "prior to starting time"
Page 19(5.4) some suggestion to eliminate this language ..
direction to evaluate and bring information regarding previously double-
bumped employees and cost factor.
(5.3) insertion of clarifying language permitting step
increase "in conjunction with job performance"
Some discussion followed regarding compensatory time and inclusion of
benefits mirroring those granted. in existing collective bargaining agreements.
Motion by Baird, seconded by McClatchey to adjourn the meeting at 8:56 p.m.
Voting Aye: Ba.ird, McClatchey, Murgatroyd
Votin.g Nay: None
Absent: None
Motian carried.
The meeting was adjourned at 8:56 p.m.
...�°�''�� �I
L. Steven Murgatroyd, Ch ' rson