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HomeMy WebLinkAboutMinutes - 3/24/1999 - Finance and Personnel Committee � FINANCE COMMITTEE MEETING MARCH 24, 1999 PRESENT: Chairman Alderman Murgatroyd,Alderman McClatchey Alderman Baird arrived at 7:55 p.m. OTHERS PRESENT: Ciry Clerk Althoff, City Administrator Lobaito,Mayor Cuda, Alderman Glab,Director of Community Development Napolitano,Director of Parks and Recreation Merkel„ Splinter Group Representative Scott Smiricky, and DirectScript Representative Andrew Wilson Chairman Alderman Murgatroyd called the meeting to order at 7:15 p.m. He stated the purpose of this evening's meeting was to continue 1999-2000 budget discussions,specifically employee insurance benefit costs,Community Development and Parks and Recreation Department requests. HEALTH I1vSURANCE RENEWAL Scott Smiricky of the Splinter Group and Andrew Wilson of DirectScripts were in attendance. Mr. Smiricky reviewed the eleven-month cost analysis for the City of McHenry's self-insured medicaUdental insurance program. He reminded council the renewal date had been adjusted from February ls`to April 15` to better coincide with the fiscal year. It was noted the only employee insurance deduction was for family dental coverage at$6.92/pay period. Dental claims are therefore offset by these collections. Some discussion followed regarding the proposed 1999-2000 insurance premium figures and the city's current policy regarding employee participation. Mr. Smiricky opined providing medical insurance coverage with � no employee cost participation was currently a common practice within municipal government entities. City Administrator Lobaito introduced Direct Scripts representative Andrew Wilson at this time. He informed the committee Mr. Wilson was the City of McHenry's representative for the city's prescription drug program. In response to staff's request to provide options to contain prescription claim costs,which have been significantly increasing over the past three years,Mr. Wilson provided the committee with several program structure alternatives. Mr. Wilson informed the committee the cost of prescription drugs has increased approximately 14%per year over the past eight years. The city's prescription co-pay cost should increase proportionately to marketplace fluctuations on an annual basis. He noted the city's co-pay costs have not been increased since the program's inception in 1994. The current program is structure as follows: RETAIL MAIL(90-day supply) Brand Drugs $10.00 $15.00 Generic Drugs $5.00 $10.00 Mr. Wilson proposed the committee consider the adoption of a prescription drug program,which encourages the use of generic over brand drugs. The city's current generic utilization is only 35.63% compared to the marketplace average of 50%. Mr. Wilson opined the generic utilization is low due to the current program's lack of incentive to use generic drugs. Mr. Wilson suggested the adoption of the following program: RETAIL MAIL(90-day supply) Brand Drugs $I 5.00 $20.00 Formulary Brand Drugs $10.00 $15.00 Generic Drugs $5.00 $10.00 � Finance Committee Meeting March 24, 1999 �.- Page Two In response to committee inquiry Mr. Wilson explained formulary drugs were brand name drugs which when used by particip�ting entities,enables the provider, DirectScript Services to acquire rebates from the drug manufacturers which is then shared with the city. Rebates are derived from"steering"employees to use certain prescriptions. Projections estimate cost savings of approximately$8000. If the committee considered implementing a mandatory generic drug usage program these cost savings would increase approximately an additional$3,300.00. The$8000.cost savings would offset this year's 14%prescription cost increase. A lengthy discussion ensued. Alderman Baird arrived at 7:55 p.m. Mr. Wilson distributed a pamphlet providing the committee with an example list of formulary drugs. In response to committee inquiry Mr. Wilson noted an analysis of the City of McHenry's current prescription program usage reveals 648 current prescriptions would not fall within the proposed formulary program. Mr. Wilson also stated implementation of either program alternative was not bound to renewal dates,but could be initiated at any time. It was the consensus of the committee to review the proposals and consider obtaining input from city employees. Mr. Smiricky and Mr. Wilson were excused at 8:20 p.m. COMMUNITY DEVELOPMENT DEPARTMENT Director of Community Development Napolitano was in attendance. He presented the department's 1999- 2000 budget requests for committee consideration. City Administrator Lobaito noted although the `►- deparhnent's budget requests reflect several personnel and deparhnent reorganization recommendations, the specifics of these recommendations would be discussed at a future finance committee meeting. Director Napolitano noted the increase in salary costs citing the inclusion of the part-time clerk's complete salary within the Community Development Department. Previously the part-time clerk salary expense was shared between the Community Development Department and the Public Works Department. Telephone expenses were increased due to the implementation of a voice mailbox service for the department. Additional monies were included in Account#503 Professional Develonment to permit additional training and the purchase of updated building code books and trade publications. Director Napolitano suggested the council update it's Zoning and Building Codes to comply with current 1996 BOCA codes. In addition Director Napolitano recommended the cost of plumbing inspections,which has increased significantly over the past year and is currently being subsidized by the city,be absorbed by the builder or contractor. The City of McHenry provides this service via a licensed plumbing subcontractor. A flat fee could be charged for all residential and non-residential buildings when the building permit is issued or the total inspection charges could be calculated and charged the builder prior to issuing an occupancy permit. At a minimum, Director Naplitano recommended the City implement a charge for all plumbing reinspections. It was the consensus of the committee to direct staff to draft an enabling ordinance regarding the implementation of plumbing inspection fees. Director Napolitano also noted a figure of$20,000 was included in Account#510 Contractual Services for a Detailed Planning Study. He cited recent council discussion regarding the development of a comprehensive traffic plan or the further development of one of the Comprehensive Plan Update sub-areas. Some discussion followed regarding the possible duplication of costs for the Crystal Lake Road traffic study from State Route 120 to Bull Valley Road. City Administrator Lobaito will investigate and make the appropriate revisions �. � Finance Cominittee Meeting March 24, 1999 Page Three In conclusion Director Napolitano noted Account#700 Capital Outlav included monies for Computer Hardware to upgrade the Deparhnent Secretary's current equipment. The current equipment would then be reallocated to the Building Inspector who currently has no computer access. In addition monies were included to ptirchase laptop computers which might be utilized in the field providing better and more efficient service to area developers and builders. Director Napolitano was excused at 8:50 p.m. PARKS AND RECREATION DEPARTMENT Director of Parks and Recreation Merkel was in attendance. He presented the Parks and Recreation Department budget requests for the 1999-2000 fiscal year. He noted the Parks and Recreation Deparhnent also included several personnel and reorganization requests,which will be addressed at a future,finance committee meeting. Regarding Account#340 Park&Recreation Proeram Revenue Director Merkel stated 1998-99 revenues would not meet original year-end projections. He cited the lack of available teaching staff and the subsequent reduction in program offerings. Concession Revenues,Account#347 and Account#348, Beach Proeram Revenue will exceed 1998-99 projections. Director Merkel noted McHenry residents gain access to the beach free of charge. Citing overcrowding Alderman Glab suggested the committee consider � instituting a significant user fee for nonresidents at Knox Park Pool. Director Merkel noted the inclusion of two additional park maintenance employees. In response to Chairman Murgatroyd's inquiry regarding the increase in pool salaries,Director Merkel explained current staff has accumulated significant tenure creating a higher per hour salary range for this recreational division. Account#492 Uniforms also reflects the tentative agreed upon collective bargaining request for additional funds for safety shoes. Account#502 Telenhone reflects an increase for alarm costs associated with Hickory Creek Farm. Account#510,Contractual,reflects the addition of Beach Water Sampling expenses and Boar License registration costs. In response to committee comment,City Administrator Lobaito stated the figures budgeted for Mowing Services correspond to the approved contract amount. Some discussion ensued regarding Account#511 Forestrv. Director Merkel noted the Parks and Recreation Committee will be reviewing the cunent tree-planting program within the next few months making recommendations on improvements and revisions. The account also includes, for this fiscal year,tree maintenance and replacement for all city trees,even those located in the revitalized downtown areas. Account#700 Capital Outlav,reflects expenditures far a new rotary mower, landscape trailer and a 4-wheel drive pickup with a crew cab. In addition monies were included for the installation of a new phone system within the Parks and Recreation Department. Some discussion occurred. The committee suggested the Parks and Recreation Committee review the Department's current vehicle replacement program. Further discussion included the possibility of refinancing some city bonds as current interest rates are good. Account 37.12.726 Park Improvements includes electrical renovations for Veteran's Memorial Park in the amount of$15,000,an addition to the Petersen Park Maintenance Building in the amount of$100,000 and Petersen Park ballfield improvements in the aggregate of$90,000. Monies were also included to facilitate Knox Park Pool Improvement planning. Alderman McClatchey requested the budget reflect monies for the purchase of playground equipment at Freund Field. Some discussion occurred regarding landscaping plans and proposals for Neumann Park on Green Street. � � Finance Committee Meeting Page Four City Administrator Lobaito stated the next finance meeting would address balancing the budget and prioritizing all capital projects requested by the various departments. Motion by Baird, seconded by McClatchey to adjourn at 9:50 p.m. Voting Aye: Baird,McClatchey,Murgatroyd Voting Nay: None Absent: None Motion carried. The meeting was adjourned at 9:50 p.m. .�'.�iiL(�X� - Steven Murgatroyd, Fi nce Ch irman � �