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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 �. 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. �. 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. � 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. � 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 � �...