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Admin Committee Minutes 2006 03-02-06 Page 1 of 7 [APPROVED 4/6/06 UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE MEETING THURSDAY, MARCH 2, 2006 6:30 PM City Hall Conference Room CITY OFFICIALS IN ATTENDANCE: Mayor Art Prochaska (6:55pm- 8:05pm) Police Chief Harold Martin Alderman Paul James Finance Director Traci Pleckham Alderwoman Rose Spears City Treasurer Bill Powell Alderwoman Valerie Burd Payroll & Benefits Specialist Alderman Jim Bock Denise Kasper Interim City Administrator John Crois City Intern/Deputy Clerk Bart Olson GUESTS: Alderman Joe Besco Joe Roberts, Caywood & Associates Alderman Marty Munns The meeting was called to order at 6:30pm by Alderman Paul James. PRESENTATION: None OLD BUSINESS: 1. Minutes for ApprovaUCorrection: January S, 2006 and February 2, 2006 The minutes were approved except for a misspelling of Traci Pleckham's name in the January minutes. 2. ADM 2006 -11 Health InsuranceBenefit Renewal Information The City had asked for alternative providers and rates for the health insurance last fall. In Illinois there are 47 companies in Illinois that provide health insurance, however, only five carriers were eligible for the City. The City sent out for bids and received declines from all of those companies for the following reasons: 1. 3 of 5 do not have adequate HMO networks in Kendall County 2. United Healthcare declined the City due to retirees on the plan 3. City had a loss rate of 144% 2 years ago and a 131% in the last year (claims exceeded premiums) Page 2 of 7 Mr. Roberts negotiated with Blue Cross/Blue Shield and was able to secure a 4.6% reduction of rates. He also credited Ms. Pleckham and Ms. Kasper for the decrease. Ms. Pleckham handed out a schedule of current costs and she recommended moving forward with Blue Cross/Blue Shield because of the rates and lack of other providers. The lowered rates were due, in part, to an increased use of HMO's rather than PPO's. Also, Caywood is the largest benefit administrator in Kendall County and therefore was able to negotiate benefits. For comparison, it was noted that Batavia's rates increased 20% and Oswego anticipates an increase of 10 -13% on HMO and 6 -9% on PPO. A decision must now be made whether to retain BCBS as the City carrier and if a co -pay will be required. Mr. Munns asked if an employee co -pay would affect the premium and Mr. Roberts said a co -pay would not significantly change the premium. He added that if the City pays 100% of the current premium, 100% of the eligible employees must belong to the plan. If the City pays anything less than 100% of the premium, 75% of the eligible employees must belong to the plan. This is per State law. Ms. Pleckham suggested offering a wellness incentive for employees to not be on the plan. Proof of insurance from another company would be required this would ultimately save the City money. Some employees currently have double coverage and it was noted that some providers penalize individuals for double coverage. Ms. Kasper said, however, spouses or others are not required to divulge whether or not they carry insurance. It was noted that Montgomery, Plainfield and Oswego do not charge a premium for their HMO plans, but Oswego does charge 5% for their PPO plan. Other municipalities do charge. A suggestion was made to not charge a premium for an "employee only ", however, those with family coverage would incur a premium. Alderman Munns noted that charging a co -pay was one of the points made at the goal - setting meeting. Alderman James said the committee should move forward with the May 1st renewal date with the $36,390.96 savings. A decision must be reached on the question of the premium in relationship to negotiating groups. It was decided that an "employee only" should still contribute $1 while a premium should be charged for spouse or family coverage. Mr. Munns suggested that the cost savings should be calculated from that scenario and adjustments could be made. A review will be done of the costs using information from other towns and internal calculations using various co -pays. This will be moved to C.O.W. 3. ADM 200642 Minute Taking Policy Bart Olson included a memo in the packets that stated the City Clerk tracks the turnaround time of the minutes. For the most part, minutes have been on time, with the exception that minutes might be held up awaiting minutes from Depo Court where public hearings are concerned. Ms. Spears asked that minutes be available a week in advance -- Page 3 of 7 separate from the rest of the agenda packet. This would allow time for the Council members to review them if they had other meetings to attend during the week. The Mayor suggested the minutes could be distributed on Friday prior to the meeting, when other packets are also going out. Mr. Olson will speak with the City Clerk about this possibility and this matter will be brought back to the April meeting. 4. ADM 2006 -13 Hiring Policy A previous memo on hiring was referenced, however, Mr. Crois said he will draft a policy based on the discussion at this meeting and forward it to Attorney Wyeth for review. The Community Relations Director, Parks & Rec. Director, City Administrator and Chief of Police are directly responsible to the City Council. He felt a consulting firm should be used in the selection of all those positions except for the Community Relations person. He was unable to find information on the method of appointment of the Librarian. To select other personnel, department heads, etc. Mr. Crois suggested using the H.R. department and also involving a person who has expertise in the particular position being hired. The resumes would then be brought to the appropriate committee for review and they would make a recommendation to the Mayor. Ms. Burd made reference to the previous month's meeting minutes that stated a search firm and RFP's should be used for the City Administrator and Department Heads and that a policy would be drafted for this month's meeting. However, Mr. Crois said he felt that the $10- 15,000 for a search firm could be better used in the City. He said that those positions that report to the Council and/or Mayor should be selected by a search firm. Alderman James summarized the discussion saying the following issues were at hand: 1. A decision should be made regarding the personnel for whom a search firm would be used. 2. How will the Finance Director position be handled? 3. A policy is needed for H.R. to follow when hiring employees Ms. Burd also asked if a future City Attorney would be hired under the hiring policy or if it would be a mayoral appointment. The Mayor said that this position is not currently in the budget. He added that it is not a policy that City Council members should be used in the interview process for employees. Since the City now has an H.R. department, hiring decisions can be made by that department. Chairman James asked Denise Kasper to draft a policy covering hiring practices for all employees by next month. He said that the hiring for Ms. Pleckham's position should be resolved at this meeting. She suggested that John Weber, department heads and City Administrator should be involved. The Mayor said he traditionally has asked a particular committee to be part of the interview process. Ms. Burd suggested that after Page 4 of 7 the Mayor suggests an appointment, there should be a policy that the Council should have an opportunity to meet and talk with that person. She did not feel comfortable voting on someone she had not met. It was decided that a search firm would not be used for Ms. Pleckham's position, but one alderman from each ward would be part of the interview group. If there is less than one alderman from each ward on the interview board, then the entire Council would sit it on the interview. It was recommended that Kevin McCanna also be included in the interviews. The resumes are being accepted through March Stn Mr. Crois and Ms. Kasper will draft the hiring policy and this item will be brought back to committee next month. NEW BUSINESS: 1. Monthly Budget Report for January 2006 The budget is at 75% of the fiscal year and 64.16% of the general fund. The total general fund expenses are at 45.83% of the budget. (next item taken out of order) 6. ADM - 2006 -23 Attorney Hours Spreadsheet and Draft Job Description Mayor Prochaska complimented Intern Olson in the compilation of information for this spreadsheet. It was noted that 2,000 hours (to warrant a full time position) were not completed this year. That is due, in part, because the attorney is in -house part of the time eliminating many phone calls. Attorney Wyeth said he worked more hours than actually reflected and that e -mails and phone calls also contribute to that extra time. He was asked to track those hours also. Mr. Wyeth categorized his billable hours according to department. He said he allowed a year to learn and a year to implement. He said the staff could actually do many routine things once they are taught and as a result, he sees the billable time actually decreasing. Ms. Burd suggested a paralegal might be beneficial, however, Mr. Wyeth felt it was not necessary at this time. Another suggestion was to have a secretary /clerk in place to assist with some of the legal work. He did not feel that was needed and that it was too early to tell if a full -time attorney was warranted, however, his opinion was that a full time one is not needed. Chief Martin complimented the job that Mr. Wyeth has done since matters can be completed in a more timely manner. The Mayor said the workload had actually been decreased with Mr. Wyeth in the office. Another suggestion was to have Attorney Wyeth review the job descriptions rather than sending them to the labor attorney. Other considerations for him might be union concerns or whether a position is exempt or non - exempt. Page 5 of 7 In conclusion, the job description for a full -time attorney will be postponed and brought back in one year for discussion. (following item taken out of order) 8. ADM 2006 -25 Amendments to City Code Regarding Appointments and Offices When appointments were being made last May, Attorney Wyeth reviewed the City Code and found that some appointments were inconsistent with State Statute and were located in various parts of the Code. The revisions he made were as follows: 1. He incorporated all the appointments into one area 2. Determined that appointments will be made at the time the Mayor is elected 3. Made minor revisions to some of the language 4. Established "Departments" in a new section of the Code. He said these should be considered and acted upon before May when re- appointments would be made. Mayor Prochaska suggested that an IT and H.R. department should be added to the list of revisions presented by Mr. Wyeth. There was a brief discussion as to whether all department heads should be under a re- appointment structure. Mr. Wyeth said, at minimum, the statutory appointments are necessary and the Council recommended that the City Administrator be included as well. This item will move to C.O.W. with the list as it was shown on the agenda document and with 4 -year appointments. I 2. ADM 2006-21 Monthly Treasurer's Report for January 2006 Treasurer Powell reported the following: 1. Beginning balance: $30,537.194.01 2. Revenues: $1,940.917.85 3. Expenses: $3,126.957.73 4. Ending Balance: $29,351,154.13 5. Combined Fund Balance Reserve: at 38.25% This item moves to the consent agenda at C.O.W. 3. ADM 2006-22 Resolution Appointing IMRFAuthorized Agent Ms. Pleckham said IMRF does not allow any other signature except the authorized one even if that person has left. She recommended that Denise Kasper be the authorized signator. Alderman Bock also noted a misspelling in his name on the resolution. This moves to the consent agenda of C.O.W. 4. PS 2006 -05 Maintenance Proposal for Fire Alarm System at City HalbPolice Station Chief Martin reported that currently there is no maintenance on the alarm system and it should be checked twice yearly. The expense would be taken from Municipal Building or Contractual Services. The amount was corrected to $600, rather than $690. This moves to C.O.W. Page 6 of 7 5. PW 2006 -39 Project Manager —Proposed Position and Draft Job Description Ms. Spears said she felt this job description was almost identical to the Engineering Administrative Assistant. She said this was an administrative -type position and a project manager should be a degreed position. This position was requested by Mr. Wywrot. Mr. Crois will review this with Mr. Wywrot, but it was thought this was to be an assistant to the City Engineer to relieve some of his workload. It was decided the job description needed improvement and will come back next month after Mr. Crois speaks with the engineer. 7 ADM 2006 -24 Salary Increases for the Next Fiscal Year (Cola/Merit) Alderman James explained that last year the Administration Committee had broken this item down to COLA and merit. In 2005, the committee chose a 4% all -merit increase with zero COLA, however, not all employees received that percentage. The average increase was 3.5 to 3.75 %. He explained that employees were given 0% for COLA due to the large increase in medical insurance costs and due to the economy. The City absorbed the insurance cost. Ms. Pleckham noted that the cost of living for this area this year is 3.6 %. A decision was reached to award 2% COLA and 2.5% merit. Ms. Pleckham will bring back a report of costs and savings using various percentages. Mr. Crois said a sliding scale of insurance premiums should also be considered depending on what a given employees earns. The "employee only" will still be asked to contribute $1.00 towards his/her premium. Ms. Kasper said that the City employees currently are split 50/50 between HMO and PPO. This will come back to C.O.W. with a recommendation for COLA and merit and a cost analysis will also be done. ADDITIONAL BUSINESS: Treasurer Powell said the City is looking for ways to increase revenue and he presented a spreadsheet that showed Money Market rates vs. CD rates. He also looked at the Library funds, the payout schedule and the money needed. He was able to receive increased interest of $5500 from CD's. He also converted three money market accounts to standard checking accounts and will receive an additional $10- $15,000 interest. In addition, Mr. Powell said that property taxes are only 8% of the total revenues at this time. This is partly due to the road funding being high. As the road funding decreases, the percentage of property taxes will increase. A recommendation was made to have the aldermen paid quarterly rather than twice a year. Attorney Wyeth will be consulted since the payment frequency is currently spelled out in a policy. This item will be brought back next month. i i I Page 7 of 7 Alderman James asked when the next payment is due for the Boy Scout Camp property and Cor -Lands. He requested this be brought back for discussion next month prior to Ms. Pleckham's upcoming departure. Alderwoman Spears inquired about the line item for the "Polka Party" for the Park District so that she could take the information to Human Resources on March 15. Ms. Pleckham said she had some information, but had not been able to meet with Sue Swithin yet. The meeting adjourned at 8:40pm. Respectfully submitted by Marlys Young, Minute Taker