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HomeMy WebLinkAboutMinutes - 9/30/1999 - Finance and Personnel Committee (2) FINANCE COMMITTEE MEETING � SEPTEMBER 30 1999 Committee Members Present: Baird, McClatchey, Murgatroyd Others In Attendance: City Clerk Althof�', City Administrator Lobaito, Assistant Administrator Maxeiner. Mayor Cuda arriv�d at 8:00 p.m. Finance Chairperson Alderman Mur�atroyd called the meeting to order at 7:00 p.m. He stated the purpose of this evening's meeting was to consider Gary Lang's request to amend the terins of his Annexation 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/SHAMROCK LANE 8PECIAL SERVICE AREA - LANG CONTRIBUTION Mr. Lang was in attendance. Chairperson Aldertnan Murgatroyd informed the committee Mr. Lang is requesting the original provision of his Anne�.tion Agreement requiring financial contribution to specific traffic lane improvements on Route 31 be reconsidered. Mr. Lan�would rather be included in the Special Service Area paying his proportionate � share of the traf�ic lane improvements and traffic signal installation. Assistant Administrator Maxeiner presented two financing options for committee consideration in addition to the original financing provision of the annexation agreement. Assistant Administrator M�einer 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 impact 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 inquuy 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 fronta.ge of Mr. Lang's property. In addition City Administrator Lobaito, respondin� ta Alderman Baird's inquiry, stated the net increase in sales ta�c 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$50,000. Citing the sales tax revenue generated by the Lang Dealership, Alderman Baird opined the dealership was a valuable asset to the City of McHenry. � Finance Committee Minutes � September 30, 1999 Page'I`wo Mr. Lang provided, at the comrnittee's request, a summary of the sequence of events relating to the inclusion of a monetary contribution for Raute 31 traffic lane improvements in the Annexation Agreement. He also noted the McHenry City Council a�reed, during a Public Works Committee meeting in January of 1997 to develop a comprehensive traffic plan for this area. Mr. Lang sta.ted his willingness to pay his proportionate share of project's cost through participation in the Special Service Area, his property tax payments and growing sales tax revenues from his dealership. Mr. Lang also distributed a cost analysis summarizing his total development costs to committee members.. A lengthy discussion followed regarding comparable development costs and the 1996 Lang annexation process. Alderman Baird suggested the committee recommend to full council, permitting Mr. Lang's participation in the Special Senrice Area at a cost of approximately $25,000 as well as the 50/50 cost share of the balance of Mr. Lang's $43,839. project contribution totaling approximately$10,000. He noted council's concurrence to seek grant monies to offset the cost of this project. As state monies were obtained, he opined Mr. Lang should receive some proportionate monetary relief as w+ell. Mr. Lang a�reed to this proposal and Alderman McClatchey supported the sugg;estion. � Chairperson Alderman Murgatroyd expressed reservations regarding the amending of a previously approved and executed annexation agreement. In response to Chairperson Alderman Murgatroyd's inquuy Assistant Administrator Maxeiner informed the committee the Special Service Area. figures do include accrued interest e�enses as well as yearly Equalized Assessed Value anticipated adjustments. Motion by Baird, seconded by McClatchey to recommend to full council The inclusion of the Lang Dealership Route 31 property in the Special Service Area and due to the receipt of grant monies for the project, to require Mr. Lang to make a$10,000 monetary contribution toward the Shamrock Lane/Route 31 tr�c lane improvements and signal installation. Voting Aye: Baird, McClatchey, Murgatroyd Voting Nay: None Absent: None Motion carried. Alderman Murgatroyd informed the committee in light of the above acti.on the Finance Committee should reconsider the Water Edge I Condominium Association request for Thornwood Drainage Ditch improvement reimburaement. � 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 unti18:15 a.m. Chairperson Alderman Murgatroyd requested the committee address agenda item number three, PERSONNEL POLICY REVISIONS. PERSONNEL POLICY REVISIONS Assistant Administrator Maxeiner noted the Personnel Policy revision was, as yet, a work in progress. Staff is continuin� 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 contains language representa.tive of an employment contract. The proposed draft amends the langua�e to be more permissive. In addition the proposed draft contains benefit revisions to provide non- union employees with similar benefits negotiat�l 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 spec�c 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 regarding the city's status and/or recourse in the event an employee refuses to execute the new acknowledgement form. In response to committee inquuy Assistant Administrator Maxeiner stated collective bargaining agreements are contractual in nature. Some discussion followed regarding the implementation of a new vacation policy based on employrnent anniversary dates. Mayor Cuda arrived at 8:00 p.m. Assistant Administrator Maxeiner noted the following significant policy � Finance Committee Minutes � September 30, 1999 Page Four re��isions and axnendments: City Engineering Firm, Baxter and Woodman, representative Carl Moon arrived at 8:10 p.m. Section 1-Clarification of new employee groups, specifically part-timers who are entitled to benefits Section 2.1-Drug and Alcohol Policy language updates and inclusion of Employee Assistance Program availability Section 6-Inclusion of language addressing salary matrix placement after internal promotions Section 12-Language revision regarding employee access to their individual personnel file Section 14-Language revisions regarding the Grievance Procedure Section 15-Language revisions regarding Code of Ethics and Rules of Conduct L Section 17-Language revisions regarding Progressive Discipline Section 19-Language developing the new accrual vacation policy in conjunction with employee anniversary date Section 20-The elimination of the one-half day Good Friday holiday Section 21-The creation of one additional floating holiday and clarification of Leave of Absence requests Section 25-Increase to match collective bargaining agreement language of uniform allowance from $300. to $350. Section 27-Clarifying language addressing the accident reporting procedure for Workmen's Compensation and language matching collective bargaining agreements regarding health care cov�erage from 90 days to 120 days Sections 28 to 34-Language inclusion by City's legal firm addressing federally mandated employee/employer programs and legislation Some discussion followed regarding the clarification of accrued sick leave and vacation time. Mayor Cuda requested staff specifically address the use of �... Finance Committee Minutes � September 30, 1999 Page Five personal and vacation time to achieve entitlement for additional vaca.tion and/or sick days. WATER CAPITAL DEVELOPI�IENT FEE INCREABE 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 justification existed to increase these fees. The cost of new improvements and increased development prompted council to authorize city engineering firm, Baxter and Woodman, 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 hoth residential and commercial use. Coinmercial/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 m�irnum 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 elimination 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. Chairperson 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 starage -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 engineering design and project supervision. He also noted the water � treatrnent facility contained more variables than an elevated storage facility. `,� Finance Committee Meeting � September 30, 1999 Page Six Some discussion followed regarding occupancy density. Mr. Moon noted the average number per household has gone from 2.8 to 2.7 persons. It was noted Baxter and Woodman utilized a 3.5 density figure. Further discussion occurred regarding water capital development cost categories. Currently the City of McHenry charges capital development fees based on water meter size. Mayor Cuda suggested charging residential structures by types similar to developer donation categories. Some discussion followed. Assistant Mazceiner cautioned changing the current method of fee charges might attract challenges. In response to committee inquiry staff noted the last water capital development fee increase was instituted in 1992. Chairperson Alderman Murgatroyd suggested the 3.5 density figure be increased to 3.9. Alderman Baird requested interest costs be incorporated into the water capital development fee calculation formula. It was the consensus of the committee to review the revised water ca.pital development fees utilizing the 3.9 density figure and interest calculations, at a cornmittee meeting on October 20th at 6:30 p.m. Motion by Baird, seconded by McClatchey to adjourn at 9:06 p.m. � Voting Aye: Baird, McClatchey, Murgatoryd Voting Nay: None Absent: None Motion carried. The meeting was adjourned at 9:06 p.m. .�� Steven Mur�atroyd, in e Chairperson �