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