HomeMy WebLinkAboutMinutes - 9/13/1999 - Finance and Personnel Committee FINANCE COMMITTEE MEETING
� SEPTEMBER 13, 1999
Committee Members Present: McClatchey, Murgatroyd
Absent: Baird
Others In Attendance: City Clerk Althoff, City Administrator Lobaito,
Assistant Administrator Maxenier, Alderman Glab, and Chief Kostecki.
Director of Parks and Recreation Merkel arrived at 7:35 p.m. Mayor
Cuda arrived at 7:50 p.m.
Finance Chairperson Alderman Murgatroyd called the meeting to order at
7:10 p.m. He stated the purpose of this evening's meeting was to
consider financing options for the Shamrock Lane/Route 31 Lane
improvements and traffic signal installation, the development of a Health
Fair for City of McHenry employees and city department personnel
projects for the next three years.
SPECL4L SERVICE AREA
Assistant Administrator M�einer reviewed the three sample maturity
schedules for a �400,000 bond issue. He noted as per previous
discussions by the Finance Committee financing for the entire cost of the
� project, minus the �150,000 state grant monies, is assumed in the bond
issue amount. Scenario one is a ten year schedule and includes no tax
abatement. Scenario two is a fifteen year schedule and includes a tax
abatement reflecting the City of McHenry's public benefit amount.
Scenario three is a ten year schedule also including the tax abatement.
Soine discussion followed regarding the committee's previous discussions
regarding financing. It was the determination of the committee to
finance the entire project permitting the use of general fund monies for
other necessary projects, ie; Anne Street drainage improvements.
In response to committee inquiry City Administrator Lobaito explained
council can elect, on an annual basis, whether to abate taxes and at
what amount. In addition staff anticipates the Equalized Assessed
Valuation of the Special Service Area to increase each year reducing the
Special Service rate.
Chairperson Alderman Murgatroyd stated council had previously agreed
to share in the cost of the project equal to a 50% public benefit level.
He requested staff include the $60,000 engineering fee in the project's
total cost. Some discussion followed regarding the request by Mr. Lang
to be included in the Special Service area as opposed to making a cash
contribution as per his annexation agreement. Chairperson Alderman
Murgatroyd stated his willingness to permit payment over the life of the
� bond issue.
Finance Committee Minutes
� September 13, 1999
Page Two
Assistant Administrator M�einer noted Mr. Lang's property was
currently included in the Special Service area. His portion of the Special
Service payment over ten years will be approximately $19,000.
City Administrator Lobaito informed the committee a letter had been
received from Thomas Quamme of the Waters Edge Unit I Condominium
Association requesting the finance committee reconsider their request for
reimbursement for the Thornwood Drainage project. The Association is
requesting consideration of a $9,000 reimbursement as opposed to their
original request of�14,941.
In response to committee inquiry, Assistant Administrator Maxeiner
noted Schedule 3 permits an initial 19 month period prior to any
principal payment. In addition council may chose to place a "call" option
on these bonds. Assistant Administrator Maxeiner also noted the
current Equalized Assessed Valuation figures used in each of the
schedules are estimates and will be adjusted to equal the actual 1999
EAV figures. Some discussion followed.
Motion by McClatchey, seconded by Murgatroyd, to recommend to full
council the financing of the Special Service Area Shamrock Lane/Route
� 31 traffic lane improvements and traffic signal installation project via the
issuance of bonds with a financing schedule of ten years including the
abatement of taxes equal to the amount determined by Council as the
public benefit portion.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
Absent: Baird
Motion carried.
City Administrator Lobaito noted Curran Construction, the project
contractors, have stated their intent to finish the construction portion of
this project prior to the first snowfall, however traffic signal installation
will be delayed until delivery of equipment which typically takes up to
four months.
Parks and Recreation Director Merkel arrived at 7:35 p.m.
HEALTH FAIR
Assistant Administrator Maxeiner reminded the committee discussion
regarding the possibility of an Employee Health Fair occurred at the
September 1, 1999 Finance Meeting. Further information regarding the
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Finance Committee Minutes
� September 13, 1999
Page Three
formulary drug program was distributed for committee review as per
direction. City Administrator Lobaito noted of the 110 current
prescriptions, which are distributed as Brand name, there would be 71
prescriptions, which are available in the formulary type. Thirty-nine
prescriptions must be dispensed as Brand prescriptions. 'l�venty-five
participants will pay an additional $20/year, five participants would pay
an additional $40/year and one participant would pay an additional
$100/year.
In response to inquiry Assistant Administrator Maxeiner noted staff
anticipates 50% participation. The program would be available for all
employees, retirees and their spouses. The benefits of providing a health
fair would be
1] long term savings in the health plan
2] foster a reduction in lost work hours due to illness
3] invest in the wellness of the City's most valuable asset; it's
employees
Quotes were obta.ined from three providers. Staff is recommending
Centegra of McHenry. Assistant Maxiener reviewed the specific
components of each proposal.
`, Alderman McClatchey recommended the health fair be an annual event if
successful.
Motion by McClatchey, seconded by Murgatroyd to recommend to full
council the initiation of an employee, retiree and spouse four hour health
faii• at a cost to the City of McHenry of$50/employee and retiree and
$4()/spouse plus a $180 flat fee with Centegra Occupational and
Environmental Medicine of McHenry.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
Absent: Baird
Motion carried.
Motion by McClatchey, seconded by Murgatroyd, to recommend to full
council the implementation of a new prescription deductible and co-
insurance cost program as follows:
Generic $ 5.00
Formulary $10.00
Brand $15.00
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
Absent: Baird
`. Motion carried.
Finance Meeting Minutes
� September 13, 1999
Page Four
Mayor Cuda arrived at 7:50 p.m.
THREE YEAR PERSONNEL PROJECTIONS
Assistant Administrator M�einer reported staff, at the July 13, 1999
Finance Meeting brought forward requests for the reorganization of three
positions within the Parks and Recreation, Public Works and Community
Development Departments. The committee then directed staff to submit
personnel projections for the next three years. The following projections
were made:
Administration
Senior Accountant (1) 2000-01
Parks and Recreation
Maintenance Worker (1) 2001-02
Public Works
Engineering Inspector (1) 2000-01
Water Operator (1) 2001-02
Streets Maintenance Wkr 2000-01
� Community Development
Building Inspector (1) 2000-01
Part-time Clerk 2001-02
Police
Sergeants (2) 2000-01 8v 2001-02
Patrol Ofcr (6) 2000-01 & 2001-02 (3)
Community Service(4) 2000-01 & 2001-02 (2)
School Liaison (4) 2000-01 8s 2001-02 (2)
DARE/Crime Prevention (1) 2001-02
Detectives (2) 2001-02 8v 2002-03 (1)
In addition the reorganization requests should be discussed. The
reorganization includes the creation of a Parks and Recreation Parks
Foreman, a Building Commissioner and a Deputy Public Works Director.
These positions would be filled with current City of McHenry employees
this fiscal year. All other projections will be considered and, if approved,
be initiated in the 2000-01 fiscal year.
Chief of Police Kostecki informed the committee the City of McHenry has
been unofficially informed the COPS in School grant application has been
approved for the addition of two officers. It is anticipated this program
will begin with the 2000-2001 school year. The grant reimburses each
municipality $125,000/police officer.
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Finance Committee Minutes
� September 13, 1999
Page Five
Chief Kostecki noted the increase, over the past nine years, of juvenile
contacts, traffic incidents, service calls and criminal investigations. He
noted 1984 was the last time council approved an increase in the
number of detectives.
Some discussion followed regarding the need for additional officers and
the available data to determine optimum staffing levels. Chief Kostecki
noted Officer Wood would be conducting a manpower utilization study
while at school. Chairperson Alderman Murgatroyd noted former Chief
Joyce had anticipated the addition of two patrol officers for the next fiscal
year. The optimum ratio of officers to population level is 3 officers for
every 1,000 residents. The average ratio is 2.5 officers for every 1,000
residents. The City of McHenry's ratio is approximately 1.9 officers for
1,000 residents. �rther discussion noted the importance of keeping
patrol officers in the community and on the streets. He also expressed a
need for additional community service officers.
REORGANIZATIONAL REQUESTS
PARKS DEPARTMENT-Director Merkel reminded the committee the
Parks Maintenance Division was merged in 1995 with the Public Works
� Department. The Superintendent of Park Maintenance title and position
was changed to that of Foreman with no change in salary. In 1996 the
Parks Maintenance Division was realigned with the Parks and Recreation
Department. The promotion of Tom Schmitt to Superintendent of Park
Maintenance upon the retirement of Bill Oeffling in June of 1999 has left
the position of foreman vacant. It is staff's recommendation to promote
Robert Combs to the Park Foreman position at Grade 10 which is the
same grade as the foreman position in the Public Works Department.
Director Merkel opined the promotion of current City employee Bob
Combs would improve crew supenrision and coordination of City special
events. In addition the Superintendent of Park Maintenance can allocate
more time to future park planning and design development. Some
discussion followed regarding the revised organizational chart,
specifically the straight line reporting process.
Assistant Administrator Maxeiner noted the proposed grade
reclassification would only be an overall 3.8% salary increase as the
ratified Public Works contract already calls for a 5.25% increase in
existing salaries.
It was the consensus of the committee to recommend consideration of
the revised Park and Recreation Department Organizational Chart and
promotion of Robert Combs to a Parks Foreman position to full council.
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Finance Committee Minutes
� September 13, 1999
Page Six
PUBLIC WORKS DEPARTMENT-City Administrator Lobaito explained
Director of Public Works Batt would be eligible for retirement within the
next three years. It is staff's recommendation to create the position of
Assistant Director of Public Works and promote City Inspector Marcinko
to that position. The position would be a Grade 11. Inspector Marcinko
has an Engineering Degree and has recently obtained a Masters Degree
in Business. City Administrator Lobaito noted most municipalities of
McHenry's size have a fully staffed engineering department. He also cited
the numerous public works projects currently being considered by
Council.
If Council approves the promotion of Inspector Marcinko a vacancy will
be created which can be filled at the beginning of the City's next fiscal
year, May 2000. Mr. Marcinko would be classified as a Grade 11 and
receive the Step 6 salary.
Alderman McClatchey noted the need for an Assistant or Deputy Police
Chief.
Some discussion occurred. In response to committee inquiry City
� Administrator Lobaito noted the Public Works Assistant Director would
be responsible for Building and Ground maintenance as well as
department employee performance evaluations. In addition more
involvement in the Public Works Department Budget preparation will be
required.
Alderman McClatchey citing a previous personal commitment requested
the meeting be adjourned and reconvened at a mutually agreeable time.
It was the consensus of the committee to reconvene on Wednesday,
September 22, at 6:30 p.m. to continue discussion on the three-year
personnel projections.
ANY AND OTHER BUSINESS
City Administrator Lobaito informed the committee High School District
156 Superintendent Robert Swartzloff was requesting a joint meeting
between District 156 finance committee members and City of McHenry
finance committee members to discuss the proposed revisions in the
High School Police Liaison Letter of Agreement. A future date will be
considered.
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September 13, 1999
� Page Seven
Motion by McClatchey, seconded by Murgatroyd to adjourn at 9:06 p.m.
Voting Aye: McClatchey, Murgatroyd
Voting Nay: None
Absent: Ba.ird
Motion carried.
The meeting was adjourned at 9:06 p.m.
. �
Steven Murgatroyd, Fi ce airperson
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