HomeMy WebLinkAboutMinutes - 9/30/1999 - Finance and Personnel Committee � FINANCE COMMITTEE MEETING
SEPTEMBER 30 1999
Committee Members Present: Baird, McClatchey, Murgatroyd
Others In Attendance: City Clerk Althoff, City Administrator Lobaito,
Assistant Administrator Maxeiner. Mayor Cuda arrived at 8:00 p.m.
Finance Chairperson Alderman Murgatroyd called the meeting to order at
7:00 p.m. He stated the puxpose of this evening's meeting was to
consider Gary Lang's request to amend the terms of his Anne�ration
Agreement addressing his financial obligation for tr�c lane
improvements to Route 31, an increase in Water Capital Development
Fees and Personnel Policy revisions.
ROUTE 31/3HAMROCK LANE SPECIAL SERVICE AREA - LANG
CONTRIBUTION
Mr. Lang was in attendance. Chairperson Alderman Murgatroyd
informed the committee Mr. Lang is requesting the original provision of
his Annexation Agreement requiring financial contribution to specific
tr�c lane improvements on Route 31 be reconsidered. Mr. Lang would
� rather be included in the Special Service Area paying his proportionate
share of the traffic lane improvements and traffic signal installation.
Assistant Administrator Maxeiner presented two financing options for
committee consideration in addition to the original fmancing provision of
the annexation agreement. Assistant Admuustrator Maxeiner noted Mr.
Lang's monetary contribution under the terms of the annexation
agreement was estimated at$60,000. As a construction contract has
now been executed, Mr. Lang's monetary contribution has been
determined to be approximately$43,840.00. The option summary also
includes the fmancial i.mpact on all three parties involved in the Special
Service Area; the City of McHenry, Gary Lang and the Special Service .
� � Area property owners.
In response to Chairperson Alderman Murgatroyd's inquiry City
Administrator Lobaito clarified the scope of the project includes Route 31
improvements from Bull Valley Road south to Prime Parkway. The
$43,840 relates only to the portion of Route 31 along the frontage of Mr.
Lang's property. In addition City Administrator Lobaito, responding to
Alderman Baird's inquuy, stated the net increase in sales tax revenue
provided by Mr. Lang's dealership was more than enough to require the
City of McHenry to pay the entire cost share amount of$50,0�0.
Citing the sales tax revenue generated by the Lang Dealership, Alderman
� Baird opined the dealership was a valuable asset to the City of McHenry.
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Finance Committee Minutes
`-- September 30, 1999
Page Three
Noting the inability of Baxter and Woodman representative Carl Moon to
attend this evening's committee meeting until 8:15 a.m. Chairperson
Alderman Murgatroyd requested the committee address agenda item
number thi-ee, PERSONNEL POLICY REVISIONS.
PER$ONNEL POLICY REVISIONS
Assistant Administrator Maxeiner noted the Personnel Policy revision
was, as yet, a work in progress. Staff is continuing to review the policy.
The proposed draft is proposing changes to ensure the at-will
employment relationship between the City and employees as
recommended by the city's legal firm, Zukowski, Rogers, Flood and
McArdle. Currently the policy conta.ins language representative of an
employment contract. The proposed draft amends the language to be
more permissive.
In addition the proposed draft contains benefit revisions to provide non-
union employees with similar benefits negotiated this fiscal year with
union employees. These benefit revisions include uniform allowance,
personal time, and holidays. Language reflecting the most current
� federally mandated employee/employer programs will also be
incorporated. These programs include ADA requirements, Sexual
Harassment Provisions, Drug and Alcohol Policies and Family Medical
Leave. City Administrator Lobaito noted in an effort to reduce numerous
future revisions, the Personnel Policy will only reference associated
Personnel Program Document/Pamphlets as opposed to the program's
specific provisions.
Assistant Administrator Maxeiner stated it is usual and customary to
offer employees an incentive in consideration of accepting the at-will
status. Each non-union employee will be required to execute an
acknowledgement form. Some discussion followed regard.ing the city's _
� status and/or recourse in the event an employee refuses to execute the
new acknowledgement form. In response to committee inquiry Assistant
Administrator Maxeiner stated collective bargaining agreements are
contractual in nature.
Some discussion followed regarding the implementation of a new
vacation policy based on employment armiversary dates.
Mayor Cuda arrived at 8:00 p.m.
Assistant Administrator Maxeiner noted the following significant policy
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Finance Committee Minutes
`-' September 30, 1999
Page Five
personal and vacation time to achieve entitlement for additional vacation
and/or sick days.
WATER CAPITAL DEVELOPMENT FEE INCREASE
City engineering firm, Baxter and Woodman, representative Carl Moon was in
attendance. He noted water capital development fees were last reviewed in
1997 when sewer capital development fees were increased. At this time Council
had determined no justifica.tion existed to increase these fees. The cost of new
improvements and increased development prompted council to authorize city
engineering firm, Baxter and Waodman, to complete a review and analysis of
the City's water supply and storage to determine future capital improvements
. necessary to accommodate continued growth.
Three factors were considered; population, supply and storage. Population
includes both residential and commercial use. Commercial/industrial and
institutional use is measured in terms of population equivalents. Supply is the
average rate of demand on the day having the highest demand. Based on the
historic average rate of water usage in McHenry it was determined that one 500
gallon per minute well is sufficient to supply 4800 P.E. He noted maximum
,� water usage could be calculated conservatively, by eliminating one well from the
formula. He explained the City of McHenry would still be at 76% capacity with
the eli.mination of one well. It was also assumed the new water supply would
require treatment similar to other city wells.
In response to Mayor Cuda's inquiry, Mr. Moon concurred the cost of a new
facility would be reduced if it served two wells. Cha.irperson Alderman
Murgatroyd noted the city would still incur the initial cost of a water plant
facility. Some discussion followed. Mr. Moon noted a well site on the Diedrich
Farm property might be combined with the well and plant facility site on the
Adams Commercial property, however he noted the wells come from two
different aquifers. ,
Storage includes three components:
-equalizing or operating storage
-fire storage
-emergency storage.
The total required storage for McHenry is the sum of these three components.
He noted conservative assumptions were used to develop estimated costs. In
addition special foundations for the elevated tanks might be needed.
In response to committee inquiry Mr. Moon noted the cost differential between
the water treatment plant and the storage facility was due in most part to
� greater envineering design and project supervision. He also noted the water
treatment facility contained more variables than an elevated storage facility.