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Administration Minutes 2009 12-17-09 APPROVED 2/18/10 UNITED CITY OF YORKVILLE 800 Game Farm Road Yorkville, IL 60560 ADMINISTRATION COMMITTEE MEETING City Hall, Conference Room Thursday, December 17, 2009 — 6:00 P.M. PRESENT: Chairperson Robyn Sutcliff Valerie Burd - Mayor Diane Teeling — Alderman Kathleen Orr — City Attorney George Gilson — Alderman Gary Golinski - Alderman Susan Mika — Finance Director Rose Spears — Alderman Ward Bart Olson — Parks & Recreation Dir. Wm Powell — Treasurer Eric Weis — State's Attorney Meghan Ostreko — Admin Asst Michael Alesia — Mesirow Ins. PRESENTATIONS: NONE The meeting was called to order @ 6:00p.m. MINUTES FOR CORRECTION /APPROVAL: The minutes for October 15, 2009 were reviewed and approved after corrections. NEW BUSINESS: 1. ADM 2009 -65 Monthly Budget Report for September 2009 Alderman Gilson wanted more information on admin salaries overtime. Bart Olson explained we didn't budget any OT because we were hoping not to have to use any. We weren't getting our FOIA's done in proper time. There was one individual who turned in 41 FOIA's all at once and that required a little bit of OT. She couldn't take it as comp time because she is at the comp time limit. Alderman Gilson asked about codification. YTD we are at $3930 and we've budgeted $4K. Do we anticipate going over that? Bart said yes, way over. His guess is $8K to $9K over. The more we update ordinances the more it costs. Alderman Golinski asked if they offer a flat rate for codification. Bart said we are on a flat rate. Alderman Gilson asked about the Admin Telephone. Bart investigated and said the figure appears to be wrong but will do some further investigation and bring it back. This also goes for cellular charges that Alderman Gilson brought up. Alderman Gilson has a concern about the training and conference. Bart is going to check on the fees. Alderman Gilson also asked about Training & Conference under Planning & Development. Bart responded they had money that they weren't i 1 i going to use, so they transferred money between line items, where Laura Schraw spoke at the conference. Alderman Gilson also inquired about other line items; no response given from a department head, Mosquito Control, Comprehensive Sewer Improvement, and Whispering Meadows, Rec Center Maintenance Equipment, and General Maintenance Heating & Cooling. Bart Olson addressed all items as well as input from Susan Mika. 2. ADM 2009 -66 Monthly Budget Report for October 2009 Alderman Spears asked about Community Relations; Overages due to extra video tape of City Council Meetings. Bart said the price goes up if the meeting goes past a certain hour. Alderman Gilson asked about Water Improvement. Susan said she made an error on this entry. This will be fixed on the November Budget Report. Alderman Gilson asked about postage & shipping for Rec Center. Bart said they put it in the wrong area. This will come out next month. Alderman Spears asked Susan how come the water tower painting costs so much more. Susan said she will have to ask Eric Dhuse. 3. ADM 2009 -67 Monthly Treasurer Report for September 2009 Report not discussed. The ending general fund bal. 16% was mentioned while giving October's Report. 4. ADM 2009 -68 Monthly Treasurer Report for October 2009 Beginning balance was $27,303,209. Revenues of $4,002,409. Expenses were $4,242,487. The ending balance is $27,063,131. The ending general fund bal. 12.39% 5. ADM 2009 -69 Annual Treasurer's Report for Fiscal Year 2008 -2009 William Powell talked about this report. We are required to file this report every year. It indicates the factual numbers as far as Revenues, Expenses, Net Transfers and Fund Balances are concerned. Alderman Golinski asked if we file this with the State? Mr. Powell said we file it with the County, he's not sure if it goes to the State. 6. ADM 2009 -70 Administration Committee Meeting Dates for 2010 Chairperson Sutcliff asked if anybody has any problem with any of the dates listed. The meeting is still scheduled for 6:00pm. Alderman Gilson asked if we can re- schedule February 18 He has a conflict with that. Chairperson Sutcliff asked if we can talk about this next month. Alderman Gilson said that is fine. i 2 i I 7. ADM 2009 -71 City Property Insurance Proposal / RFP Results Susan Mika introduced Michael Alesia from Mesirow Insurance. Michael passed out Mesirow's formal insurance proposal. The carrier they are proposing is Travelers Insurance Co. They are the largest writer of municipal business in the United States. Michael went in great detail of coverages. Alderman Spears asked where Michael got the figures from the Illinois Municipal League. Michael said they have copies of their policies and they study their program. He also pointed out these are figures are a basis of where Mesirow thought the City was at. Alderman Spears had a copy of IML's coverage's but it was dated back in 2004 -2005. Michael pointed out that the figures he was talking about was liability only. Michael continued to discuss the proposal. Michael believes the buildings in the City are under estimated. Susan Mika mentioned that the City hasn't had an appraisal done on our buildings and our properties in several years. It is very important in the upcoming fiscal year that we get an appraisal done on all of the buildings to make sure we are insured properly; over insured rather than under insured. Michael mentioned that s the aggregate limits total up to $33M as where the IML offers only $8M in aggregate limit. Susan also talked about if we switched coverage, what happens to pass claims with IML. She said they will stay with IML. Alderman Spears asked about deductibles so Michael went through all of the deductibles. Alderman Spears asked about commission. Michael went on to explain. We are agreeable to a $19,500 fee. That is inclusive in the price. There will be no commissions taken, with the exception of the worker's compensation. They are proposing a policy from the Illinois Public Risk Fund. They automatically pay commission. They would accept that commission and subtract the difference from the fee. 4 e Alderman Spears asked for an updated IML coverages sheet to compare to Travelers coverages, otherwise she would use the 2004 -2005 coverage sheet to compare. Alderman Gilson brought up the deductible payment history. If you add that to Mesirow's quote, it would put us $900 apart. Then if you add the 3% administration fee from the Illinois Public Risk Fund. He asked in Michael's estimate, how much would that be. Michael had to explain the deductible total was over 5 years. Michael also wanted to point out that he is the account executive on the account. He is the day to day person. He would not be handing this account to anyone else. Michael also said Mesirow is privately held. Alderman Golinski asked how long has Michael been with Mesirow. He replied 6 %Z years. He has been doing municipal insurance 16 lh years. 3 i Susan said we need to vote on this because IML expires Dec. 31". Either you hurry up and renew with IML or we go with Travelers. Alderman Gilson asked if we called an IML with the figures given by Mesirow to see if they would re- negotiate. Susan said yes she did and retrieved an email from IML for documentation. IML said they will not re- negotiate. This item will move forward to consent. 8. ADM 2009 -72 Health Insurance Broker Recommendation Susan Mika talked about 4 brokers that they interviewed. She presented a chart of services on what the 4 different brokers offered. Susan mentioned that she was trying to get a quote from broker CBC, but they wouldn't provide a quote until we signed on with them. Chairperson Sutcliff pointed out several beneficial savings on services that Better Business Planning was offering. She mentioned the insurance is the same regardless what broker you go with. I i Susan mentioned if we go with Better Business Planning, the annual savings would be approximately $5,700, with the exception for the 0 year which would be $1,715, because we have a contract with Provena (Employee Assistance Program) and we have one more year to go on that. Alderman Spears asked about Better Business Planning's commission or the Broker's Fee. Susan replied there is no fee. Their commission comes directly from BCBS. Alderman Spears asked if we're still going to use BCBS. Susan said whatever Broker we select, we will ask them to go to different insurance companies to get quotes for us, but more than likely we'll stick with BCBS. Alderman Spears referenced a letter she had from BCBS stating that Caywood & Assoc. have chosen not to exercise the option of an additional 3% commission when they have 51+ participants. Susan said it is her understanding that when they interviewed all of the candidates, when you have up to 150 participants, their commission is one flat rate. It varies and changes when there it becomes 151+ participants. Then it becomes negotiable by the broker with BCBS. Alderman Teeling said she liked the rep from Corporate Benefit Consultants, but when he said he wouldn't give us a quote, we have to go with the ones that give us the information. Meghan Ostreko talked about Better Business Planning's customized employee website and the telephone support for employees. Susan also said if BBP is the selected broker, they will provide employee orientation and if needed a re- training 6 mos later. Alderman Gilson asked what is the optional HRA administration. Susan said it is only offered to PPO participants. Most deductibles are $1500. In the HRA it's a 4 i i $3000 deductible. The employee would pay for up to $1500. Anything over that, up to $3000, the employee would also pay for, but they would submit their invoices to the city and the city would reimburse them. What that does it would drive the cost of the premium down for the city, because not all employees are going to use the deductible, it could potentially save us money. The employees would have to enroll in this during open enrollment. Open enrollment is in April. Alderman Golinski asked for more information on the Employee Assistance Program. Currently we're paying $4000 with Provena and possibly going to $149 per year. It almost sounds too good to be true. Susan Mika explained that the EAP is more of a counseling service. Employees are allowed a couple of sessions free and after that the employees may be charged a fee for each session. Alderman Spears says the costs of this option may be a red flag. If we go for this for a year and we're not happy, then we cancel it and go with somebody else. Chairperson Sutcliff said we won't know for this upcoming year, because we still have Provena for the next year. I All agreed to give Better Business Planning a try. This will go to City Council for discussion. 9. ADM 2009 -73 Resolution Repealing Resolution No. 2006 -101 and Implementing the Amended Freedom of Information Act Bart Olson said this is not needed. This will go on consent. 10. ADM 2009 -74 Ordinance Approving a Records Request Fee Schedule Bart Olson based on the new FOIA's law. Anytime the fees change, we have to amend our ordinance. This will go on consent. 11. ADM 2009 -75 Resolution Authorizing the Establishment of a Checking Account to Hold Pre - Payment of Raintree Park Improvements Susan Mika needs approval to open a checking account for Raintree Park Improvements. The check amount is for $158K. 12. ADM 2009 -76 Ordinance Amending and Restating the Governing Ordinance of the Mayor and City Council of the United City of Yorkville The City's Ordinance doesn't jive with State Statute. Bart Olson said there two items of concern. The City's Ordinance says the City Council cannot censure unless the elected official committed a crime. The State Statute says the City Council has the power to censure. Secondly was to update the list of committee liaison with the exact list of department meetings. Alderman Spears had questions about the liaisons. Are we no longer going to have one for the Chamber, Downtown Re- Development, or KenCom? Bart i i 5 i i replied that The Chamber is more of elected position. KenCom is a Board, City Council, or a Mayoral Appointed Position. The Downtown Re- Development no longer applies anymore. Alderman Spears asked she is no longer appointed to KenCom? Mayor Burd said no because she didn't appoint her. Rose Spears said that she was appointed but the letter was changed. She said that's ok. Alderman Gilson asked Mayor Burd if she's going to be re- appointing someone for the KenCom position. Mayor Burd replied yes, as a board member. Alderman Gilson asked Mayor Burd if she will be re- considering Alderman Spears for the position. Mayor Burd replied that her and Alderman Spears talked about it a little bit and she said there have been some issues with communications between them. She said she would like someone she can rely on that will report back to her what is going on with the board. Alderman Spears said there has been better communication since the both of them talked last month. Alderman Spears says that's ok, but it's a political thing. Mayor Burd says it's not a political thing, it's a communication thing. Alderman Gilson asked for examples of these communications. Chairperson Sutcliffe thinks we should move on. We're talking about the changes in the governing ordinance and not the appointees. Alderman Spears are we taking out Aurora Area Convention & Visitor Bureau? Chairperson Sutcliff thinks we should to be consistent. Bart Olson agreed. i Alderman Golinski said we should take out the Cable Consortium as well. That is appointed voting position. This item will move forward on consent. 13. ADM 2009 -77 Use of Staff in Regards to Answering Questions Chairperson Sutcliff wanted to re- iterate the use of staff time. We want to use staff's time on a minimal basis. We should be conscious of the fact that it costs the tax payers money every time we ask the question. If you feel like you haven't had the question answered, by all means ask it. i OLD BUSINESS: 1. ADM 2009 -43 Discussion on Amending City's Ethics Ordinance Kathy Orr discussed our ordinance with Eric Weis, the State's Attorney. He reviewed our ordinance and noted two things. Contrary to public belief, he was not appointed as our Ethics Advisor nor did our ordinance have the penalty section. He did recommend that we add that. As a result our ordinance does not have a procedure. In her conversations with Eric, the county has the commission form in the Attorney General's Model Ordinance. The County has 3 6 I I I commissioners. Eric said that is correct. Eric Weis then gave a brief description on how the ordinance is intended to work. Eric Weis said when the Ethics law came out in the State of Illinois, we as a county had to adopt an ethics commission to comply with state law. We adopted an ethics ordinance and established an ethics commission; appointed every two years. The intent was to allow any local governmental body to adopt the county commission as their own through a governmental agreement to do so. The City can also create an ordinance. Eric also touched base on the criminal penalty. Kathy Orr asked in the County's Model Ordinance, it states the commission itself investigates any signed notarized complaint filed with it. Is that how the county works. Eric replied, he believes that's what is says, although he didn't bring a copy of it. If the City of Yorkville decides to adopt the model ordinance, there a couple of things that he wants the city to be aware of The City of Yorkville can elect to have the Ethics Commission without the State's Attorney's Office. The City can elect any Attorney to represent the city. The City can also elect to have Ethic's Commission as well as the State's Attorney's Office; again we have to be in a governmental agreement to do so and with the permission of the current State's Attorney to do so. Kathy Orr said she was confused on one thing. If the City sets up its own commission and the City investigates it and determines there is serious potential of criminal activity. She said it has to go to the State's Attorney for prosecution. Eric is the only one authorized to bring criminal charges. She also said the commission can hear it if they want to impose non - criminal penalties. 1 Kathy Orr's recommendation to the City Council is to determine if they want their 1 own commission or if they want to utilize the county commission that's available. Also have the Mayor to appoint with consent an Ethics Advisor; someone people can go to just for questions. Also the imposition of penalty charges in our local ordinance. She said she would follow State Law if the commission ever investigates and actually finds a criminal violation she would send it to the State's Attorney's Office. Chairperson Sutcliff asked if the Ethics Advisor is optional. Kathy said the Ethics Advisor is often used to ask ethical questions; gifts, trips, expenses, etc. etc. Often used before the fact. Most questions asked never makes it to the commission. It was asked if Eric or anybody in his office could be the City's Ethics Advisor. Eric replied No; since his office would possibly perform the prosecution. Eric Weis is going to get an opinion from the Attorney General about prosecution; who is authorized when it comes to a local union of government other than the State's Attorney. The results of these opinions are formal or informal. Most of these are informal. 7 I Chairperson Sutcliff asked if any municipalities in Kendall that are using or asked about the commission. Alderman Golinski asked where do we go from here. It was decided to wait for the Attorney General's opinion. Kathy Orr said it could take up to 8 weeks to hear back from them. Bring back next month. ADJOURNMENT OF THE ADMINISTRATION COMMITTEE MEETING: With no further business to discuss, the meeting adjourned at 8:40 p.m. i s Minutes respectfully submitted by Tim Dlugopolski i I 8 I PLEASE SIGN IN MEETING: DATE: 12- ,�'J�3voq NAME BUSINESS NAME OR (PLEASE PRINT) SUBDIVISION NAME c k� y � L /a C. use L �1��i1�.CJ lO�L� Cb i