HomeMy WebLinkAboutMinutes - 6/18/2007 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
� Monday,June 18,2007
Aldermen's Conference Room, 6:30 p.m.
In Attendance:Committee Members: Chairman Alderman Murgatroyd, Alderman Peterson and
Alderman Schaefer. Absertt: None.
Also in Attendance: Mayor Low, City Administrator M�einer, Director of Finance Black and City Clerk
Jones.
Chairman Alderman Murgatroyd called the meeting to order at 6:35 p.m.
City Attorney McArdle arrived at 7:12 p.m.
Discussion Regardin�Disuatch Service Fees
Chairman Murgatroyd informed the Committee that the topic of tonight's meeting would be dispatching
service fees. He then turned the meeting over to Director of Finance Black.
Finance Director Black informed the Committee that in May 2002 the City of McHenry entered into
agreements with the McHenry Fire Protection District and the Johnsburg and McCullom Lake police
departmerrts to provide dispatching services. He noted that the fee charged to each entity has not been
increased since that time.
Finance Director Black stated in November 2006, Staff communicated with representatives from the other
entities and informally agreed to a 6%fee adjustment for the 2007/2008 fiscal year. He noted that at that
� time Staff discussed a more substantial fee increase in the future to a11ow the City of McHenry to recover
some of the costs incuned in providing the service.
Finance Director Black informed the Committee that Staff, at this time, is requesting that the Committee
provide direction on renewing the existing agreements. Additionally, he indicated that the Village of
Lakemoor has requested consideration regarding dispatch operation.
Finance Director Black presented the Committee with an analysis summarizing the City's salary and
benefit costs for dispatch services from 2002/2003 through 2007/2008. He noted the fact that dispatching
staff levels increased from 8 to 10 during that time period was taken into consideration, in addition to the
employment of part time dispatchers in Fiscal Year 2006/2007. He informed the Committee that the total
salary and benefit costs increased approximately$306,500, or 67.6%,over the five-year period.
Finance Director Black stated that in 2006/2007 the City received $69,532 from dispatching fees,
amounting to 9 2%of personnel costs in fiscal year 2006/2007,which brealcdown as follows:
McHenry Township Fire District $38,824
Village of Johnsburg $21,151
Village of McCullom Lake $ 9,557
Finance Directur Black referenced the previously mentioned inforn�al agreement to increase the rates by
6% for the 2007/2008 fiscal year. He noted this would increase the City of McHenry's annual dispatch
service revenu�, to $73,700, or 9.6% of the personnel costs, which is still under 10% of the City's cost
overall.
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June 18, 2007
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Finance Director Black stated that other area organizations providing dispatch services set their fees to
recover costs. As an example, he noted that the McHenry County Sherii�s Department cunently sets its
dispatching fees to recover their total personnel costs. SEECOM's fee is set based on equipment
replacements costs, in addition to recovering personnel expenses. Fees to each agency are based on that
agency's ratio of calls to the total amount of ca11s dispatched by the organization. He stated that for the
2007/2008 fiscal year, SEECOM and the Sherif�s Department are charging $34.14 and $22.17 per call,
respectively.
Finance Director Black explained the dispatching fee comparison chart,noting that based upon the figures
in the comparison,the City should consider a more significant fee increase in 2008/2009, based upon the
need to recover a greater portion of the City's costs. Finance Director Black stated that Staff recognizes
there may be issues involved approaching agencies with a fee increase; however,he noted even with a fee
increase of 30%each of the entities currently served would still be paying considera.bly less than if they
received services from another provider, such at the Coucrty or SEECOM. He indicated that a 30%
increase would provide the City with a recovery of$95,820, or 12.1% of its costs. Finance Director
Black suggested fees be adjusted annually thereafter to ensure the continuing recovery of costs.
Responding to an inquiry from Alderman Peterson, City Administrator M�einer informed the Committee
that the following communities were serviced by SEECOM:
• Lake in the Hills;
• Crystal L,a.ke;
• Algonquin;and
�- • C�'
Finance Director Black informed the Committee that a second issue for consideration is the addition of
dispatch services to the Village of Lakemoor. In late April the City of McHenry was approached by the
Lakemoor Police Department requesting the City provide dispatch services due to a significant fee
increase proposed by the Sherii�s Department. Following the e�mination of Village of Lakemoor's call
volume the City determined that it could provide dispatching services to the Village of Lakemoor without
increasing current staffing levels.
The Village of Lakemoor has inforn�ally agreed to pay the City of McHenry $50,000 annually for
dispatching services, which amounts to $20,000 less annually that the Village would have been charged
by the Sheriff's Department in 2007/2008. Finance Director Black noted that this payment level from the
Village of Lakemoor would result in inequitable charges, when compared to the other service recipients.
Staff suggested limiting future fee increases for the Village of Lakemoor until Lakemoor becomes
comparable to the fees charged to the other agencies.
Staff is seeking direction from the Committee regarding the following:
• The policy for setting fees for entities utilized by the dispatch center;
• An incrc;ase of fees based on the recovery of salaries and benefits;
• Whether the subsequent fee increase should be made immediately or gradually; and
• Whether the Committee is amenable to adding new service recipients, if they are willing to pay
their fair share.
Responding to �m inquiry by Chairman Murgatroyd, Finance Director Black stated Staff is comfortable
`.- adding the Village of Lakemoor to dispatch services for the fiscal year 2007/2008. He indicated there is
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June 18, 2007
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some elasticity with the current number of dispatchers the City of McHenry employs and adding the
Village of Lakemoor would not result in an increase of employees.
Chairman Murgatroyd opined it appears based upon the figures presented that the City of McHenry is
subsidizing other taxing bodies.
Chairman Murgatroyd inquired if the City of McHenry derived anything tangible by providing
dispatching services. City Administrator Maxeiner stated that the City derived no tangible benefit other
than from the McHenry County Fire Protection District.
Chairman Murgatroyd opined that there is no doubt the fees need to be increased, the question is how
much the fees should be increased and over what period of time. City Administrator Maxeiner noted that
there is some difficulty in ascertaining what the fee increase should be.
Alderman Schaefer opined thal while he supported an increase and agrees the City needs to recoup more
than 9.2%, he would prefer a gradual increase rather than a 30%jump. He noted he likes the way the
Sheriff's Department allocates their fees.
Responding to an inquiry by Alderman Peterson, City Administrator Maxeiner stated that the City of
McHenry currently employs 10 dispatchers. Of the ten employees, 2 individuals are on duty at a11 times
and sometimes 3 individuals are on duty. City Administrator Maxeiner noted that ten dispatchers is the
maximum staffing level and that number is capable of handling almost any situation.
�- Responding to Alderman Peterson's inquiry regarding start-up costs should the Village of Lakemoor
dispatching be taken on, City Administrator Maxeiner stated that the costs have been determined as
minimal,with no hard costs involved.
Finance Director Black responded to Alderman Peterson's inquiry regarding the ca11 volume of the
Village of Lakemoor, stating the Village of Lakemoor's ca11 volume is similar to that of the Village of
Johnsburg. City Administrator Maxeiner noted the calls are more traffic-related due to State Route 120.
Alderman Peterson indicated he has no objection to providing dispatch service to the Village of
Lakemoor; however he would like to see the fees spread more equitably across the board. He suggested
some background work be done, with the entities currently being served, in an effort to reduce the shock
of a 30%increase.
City Administrator Maxeiner opined he was opposed to providing dispatch services to the Village of
Lakemoor, at this time. If services were to be provided to the Village of Lakemoor he would prefer that
the fee structure first be adjusted and established for the entities currently being served. He suggested that
the 30%increase would be more palatable to the entities cunently being served if it was spread over a 3-
year period.
Chairman Murgatroyd opined he could support a 1-year agreement with the Village of Lakemoor at
$50,000 per year provided an analysis to restructure the fees takes place regarding the erttities currently
being served.
City Attomey McArdle arrived at 7:12 p.m.
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June 18, 2007
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Alderman Peterson stated he would support a 30% increase this fiscal year, with a percentage increase
each year thereafter.
City Attomey McArdle suggested a one-time capital contribution for replacement of equipment.
It was the consensus of the Committee that the amount charged for dispatching services needs to be
increased.
The Committee requested tha.t Finance Director Black prepare some scenarios for consideration by the
Committee at a future Finance and Personnel Committee meeting. The scenarios requested are to include
the following information:
• What would be the increa,se over a 3 to 5 year period;
• What level of call volume would lead to additional staffing needs;and
• What would be the cost with the inclusion of the Village of Lakemoor to dispatching services.
City Administrator Maxeiner requested that Finance Director Black provide the Committee with
information regarding ratios. It was clarified that the McHenry County Fire Protection District should be
included in the analysis.
Alderman Schaefer suggested that the suggestion put forth by City Attomey McArdle regarding a one-
time capital contribution be included in the analysis. City Administrator Maxeiner noted that only one of
the entities in discussion are in a financial position to pay a capital contribution fee.
�. Responding to Alderman Peterson's inquiry, City Administrator Maxeiner stated that Staff should be in a
position to return to the Committee with some definitive information in appro�cimately four to siY weeks.
Adiournment
Motion by Schaefer, seconded by Peterson,to adjoum the meeting at 725 p.m.
Aye: Murgatroyd, Peterson, Schaefer.
Nay: None.
Absent: None.
Motion carried.
Respectfully submitted,
-�i� C ,�
Steven C. Murgatroyd, Cha�
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