Admin Committee Minutes 2004 09-09-04 Page 1 of 8
APPROVED WITH REVISIONS 10/7/04
UNITED CITY OF YORKVILLE
ADMINISTRATION COMMITTEE MEETING
THURSDAY, SEPTEMBER 9, 2004 6:30 PM
City Hall Conference Room
PRESENT:
Mayor Art Prochaska (arrived 8pm) Alderman Rose Spears
Alderman Paul James Chief Harold Martin
Alderman Larry Kot Treasurer Bill Powell
Alderman Joe Besco Finance Director Traci Pleckham
Alderman Wanda Ohare
GUESTS: None
The meeting was called to order at 6:32pm by Chairman Paul James.
The presentation by Caywood and Associates was begun later in the agenda at 7pm
OLD BUSINESS
1. Minutes for Approval/Correction: August 12, 2004
The minutes were approved as read.
2 Monthly Budget Report for July 2004
Ms. Pleckham completed a General Fund Summary report through July, which showed
revenues coming in at 19% and expenses at 15% of budget. The revenues shown on the
report also include real estate taxes that have been collected to date.
The following items in the budget were also briefly discussed:
1. Refuse stickers are available at City Hall
2. Part time salaries in Administration are high due to the intern and summer
employees being paid from this fund
3. A 125% increase for computer expense was partially attributed to the T1 line and
for a maintenance computer
4. Postage and shipping was increased 52% due to a combined total of expense
though Ms. Pleckham noted that this machine allows charges to be separated.
5. Office supplies were increased due to a new employee
6. A new pickup truck was purchased for Engineering, but was budgeted
7. MTD alert fee is a 2 -time a year charge per Chief Martin
8. Training funds will need to be increased since some training is out of state
9. Maintenance of traffic signals was up by 34 %. Some of that money can be
reimbursed
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10. In -car video donations: fees are collected for each DUI conviction and help to pay
for additional in -car cameras
11. Building maintenance was shown at 89.3% of budget. Ms. Pleckham will
research the details for this expense. Part of this expenditure was for elevator
repair and locks for the front door
12. Page 19 "miscellaneous ": money from used equipment sales goes into the
equipment capital to purchase new items
13. Page 19, Beecher Pathway, money was not spent last budget so this money moved
forward to the new budget
14. Page 23, River Crossing fee is money for having conduit laid across the river
15. Page 25, Radium Grant: this was budgeted last year, though the grant was not
received until this fiscal year
16. Engineering up 425 % - -will be reviewed by Finance Director Pleckham
17. Page 28- interest payment: water tower is 1 -time a year payment
18. Page 29 -loan payment: this item was paid off last fiscal year
19. Page 39- Beecher concession stand: all monies were spent last year
20. Page 46 -Youth Special Events: this item was combined with program expenses,
this will be adjusted
21. Page 49- Library alarm monitoring up 56 %. This is paid 2 -times a year per Chief
Martin.
Ms. Pleckham summarized that she does not foresee any changes in revenue streams and
expenses are on track. The revised budget process should begin next month.
This item moves to C.O.W. for information.
PRESENTATION
At 7pm, Joe Roberts of Caywood and Associates of Plano began a presentation regarding
company benefits. Mr. Roberts introduced himself and stated that he represented the City
of Yorkville for group life insurance, group health and unemployment. His expertise is in
municipality non -profit and he is a benefit specialist.
Mr. Roberts was asked to attend this meeting to explain any other benefits options
available to the City. Mr. Graff and Ms. Pleckham conducted a comprehensive study of
the city benefits, after which Mr. Roberts was asked to be present at this meeting.
The main focus of the presentation was to study what issues the City might encounter
after further addition of staff and what benefits are offered for a City this size.
Mr. Roberts then gave an overview of the current insurance policies in effect:
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1. Group health insurance —Blue Cross/Blue Shield for all full time employees and
their families. The City pays this premium except $1.00. This is a PPO or HMO
option.
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2. Group life insurance - - is underwritten by MetLife and is available to all
employees and dependents, completely funded by the City.
3. Self - insured dental and vision plan with reimbursement to the employee based
upon number of dependents. Receipts must be submitted for reimbursement.
4. Retirement program/IMRF
5. Employee funded annuity
Mr. Roberts stated that a national survey 68% rated benefits as the number one concern
for employees. All benefits are subject to the IRS, which dictates who is eligible for
full -time benefits. He stressed there is a possible discrimination problem with the dental
plan because a family of four could receive a larger possible benefit than a single person.
Ms. Pleckham stated that the labor attorney is currently researching this issue. Alderman
James asked if a cap could be placed on the dollar amount reimbursed. Mr. Roberts
stated that could not be done due to the current police contract and that a new contract
could only be re- negotiated if the proposed benefits were better.
Alderman Besco stated and Mr. Roberts concurred, that having a regular dental/vision
plan in place would release the City from liability. Mr. Roberts also stressed that he
represents the city employees, not the insurance company. He added that the City could
join a regular plan now, but budget issues and contracts would need to be considered.
Mr. Roberts did a comparison of surrounding towns and private sector business. He said
the municipalities compare very favorably to private business. Very few employers in
the business sector pay the full premium and it is rare that family benefits are included.
He found that since most municipal salaries are lower, they are offset by better benefits.
Mr. Roberts surveyed Oswego, Plainfield, Montgomery and Sugar Grove for benefit
information. He found that Yorkville lacked a "Section 125 Plan". This plan allows
insurance premiums to be deducted pre -tax and allows an employee to set aside up to
$5,000 yearly for childcare expenses. It also allows an MSA, which is a medical savings
account so an employee can deduct any amount (pre -tax), out of that account for a
qualified medical expense. IRS sets the guidelines for the medical expense. However, if
the MSA money is not used before the end of the year, the money is lost. Alderman Kot
asked who administers this plan. One such administrator is EBC.
A new program available is "Key Person Life" insurance, which insures the life of a City
Administrator or Manager. This insurance policy is owned by the City and can assist
financially during a replacement search in the event of an Administrator's death. Any
death benefit is given to the Administrator's family if he /she is a current City employee.
Alderman Kot asked if the City currently had a deferred comp plan. Mr. Roberts
answered that AFLAC is available, however, Ms. Pleckham said that very few employees
(about 15 out of 50) take advantage of this program. She suggested that improved
employee education might be needed regarding this program. Employees are responsible
for any contribution for this program.
Mr. Roberts strongly recommended the following changes for City insurance:
1. Add a Section 125 Plan
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2. Fully insured dental and vision plan, rather than the self - insured
3. Consider adding the Key Person Life Insurance and implement next fiscal year
Alderwoman Spears asked for an explanation of the value of the Key Person Life
Insurance. Mr. Roberts explained that this provides financial assistance if the City
Administrator were to die or leave employment. The money could be used in a new
employee search, buyout option or other option subject to certain rules. The usual value
of this policy is $250,000.
Alderman Kot asked if any retirement plans were available for elected officials. There
are some plans available according to Mr. Roberts. Mr. Kot would like additional future
discussion after obtaining details of such benefits.
At the present time, questions regarding medical and life insurance are referred to
Caywood and Associates. Self-insured plan questions are addressed by the City. If the
City switches to a fully insured plan, the questions would be referred to Mr. Roberts.
Currently, the City includes reimbursements on the bill list under the employee's name.
It was noted that this could be a possible violation of the strict HIPPA laws.
In conclusion, Chairman Paul James stated that the recommendations by Mr. Roberts be
discussed at the next committee meeting. Mr. Pleckham will compile various cost
scenarios for review as well. These costs will assist in making a determination if the
recommendations will move forward to C.O.W. The committee thanked Mr. Roberts
for his very informative presentation.
3. Monthly Updates
a. Planning Coordinator's Fees Spreadsheet
Regarding the Zoning Coordinator Monthly Report, Ms. Pleckham stated that the 8.25
hours for administration was going to be researched. It was suggested that the hours
might be Anna Kurtzman's work on ordinances and these hours are billed back to
builders.
b. Website Status
Total website "hits" for the months of July, August and September were 289,989.
c. Revised Project Financial Tracking Worksheet
There was no discussion of this item.
4. Payroll Direct Deposit -Update
Ms. Pleckham reported that direct deposit has been a long -time request from City
employees. The attorneys have reviewed the agreement with Old Second Bank/Yorkville
and there will be a $5.00 charge for each transmission (there will be 2 per month) to
transfer data and 10 cents per transaction (per employee). It was felt by the committee
that this was an efficient way to process payroll. She further stated that the agreement
with the bank does not need Council approval, however, it will be forwarded to C.O.W.
for information. Ms. Pleckham will obtain formal legal approval from the City Attorney.
A test run will be conducted and implementation will begin in November.
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This item moves to C.O.W.
5. Quarterly Department Vehicle Reports
The committee reviewed the vehicle maintenance reports provided. Alderman James
questioned whether the City should consider in -house oil changes and Alderman Besco
questioned the need for brakes on the Administration vehicle which has only 29,000
miles. Alderwoman Ohare asked who monitors the maintenance schedules. Police
vehicles are monitored by Ron Diederich and Public Works also keeps logs. It was
suggested that Administrator Graff also keep logs and oversee the maintenance schedule.
Ms. Pleckham will research the Administration vehicle bills retroactive to June 1.
In conclusion, Mr. Graff will be asked to instruct department supervisors to maintain logs
on all City vehicles and the logs will be reviewed by the Administration Committee every
6 months.
6. Corporate Counsel Job Description
This job description was drafted due to a possible future need for a full -time City
Attorney. This position may become necessary due to frequent daytime activities and
meetings that require legal counsel. Ms. Pleckham suggested that the draft should
indicate that the position would be full -time exempt.
Mayor Prochaska joined the meeting at this point and was asked if this position would
replace the current City Attorney. The Mayor stated there were several issues to be
addressed. He first clarified that Dan Kramer is the City Attorney and when Kelly
Kramer is present at meetings she is a representative of the City Attorney. Another
issue is that Dan Kramer has handled legal work for many people in the area and there
may be times when there would be a conflict of interest. The Mayor said that many times
during the day, the City has no legal counsel available in a developer meeting. He
suggested 2 scenarios:
1. One attorney could draft the legal work and Dan Kramer, as City Attorney, would
review the work. Stipend costs increase in this scenario.
2. Possibility of different attorneys for different projects. Currently, John Wyeth
sometimes fills in for certain situations.
It was agreed that the job description need much more revision. Alderman Besco
suggested that the Administration Committee should ask the City Attorney to attend an
Administration meeting to define his requirements in relationship with the requirements
of the City. Mayor Prochaska reiterated his feeling that the City needs to begin looking
at the possibility of having a daytime attorney available to meet with developers. It was
noted that some of the legal costs are reimbursed by developers.
Chairman Paul James suggested that City Attorney time be tracked for a month to help
determine the full time need. The City's need for the Attorney has increased as well as
Attorney Dan Kramer's private practice has grown. Chief Martin also agreed that many
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times an attorney is needed quickly for a police matter. There were suggestions to
review the following:
1. amount of stipend money paid
2. determine number of meetings where an attorney is needed
3. costs savings of an attorney on staff
4. who would attend City Council meetings
Frequently, Mr. Kramer is unable to attend meetings or review legal work and there are
instances when both Kelly Kramer and John Wyeth are present which results in double
paying. In addition, Dan Kramer must review Kelly Kramer's work, which sometimes
results in double payments. Mayor Prochaska noted that Mr. Kramer is paid a stipend
while Ms. Kramer and John Wyeth are paid as needed. A suggestion was made to
consider appointing Kelly Kramer as City Attorney.
In conclusion, dollar figures, time, full/part time will be examined and input will be
requested from the City Attorney.
This item will be brought back to this committee next month
Agenda items #7, 8 and 9 (Sick Time, Wearing Apparel and Gift /Grant Policy) were not
discussed at this meeting and the meeting moved forward to New Business.
NEW BUSINESS
1. Salary Survey: Mayor, Aldermen, Clerk and Treasurer
Intern Bart Olson recently conducted a salary survey of neighboring towns. This survey
and accompanying graphs were discussed. It was noted that Yorkville's committee
structure was different than some of the other municipalities. Different compensation
plans for elected officials were also noted. Mayor Prochaska suggested possible liaisons
on boards. It was also suggested that members of other committees should attend City
Council meetings rather than Council members having to attend additional meetings.
Many of the aldermen/women currently attend other city meetings on their own accord.
After much discussion, the committee agreed that some compensation adjustment is
needed. Chairman James stated the two options at this time:
1. Send this matter to C.O.W.
2. Make a recommendation to C.O.W. after obtaining further salary information
Alderman Besco suggested that Bart Olson do further research on compensation ranges
and this item should be brought back to this committee. The committee recognized the
180 -day timeline for this issue. Mr. Olson's findings will be considered at next month's
meeting and a recommendation will be made to C.O.W. Mayor Prochaska also
suggested the number of hours spent in meetings should be tracked as well. The time
spent can be obtained from the minutes. The salary for the Mayor, Aldermen/women,
Treasurer, Clerk and Liquor Commissioner will be considered. In addition, the Mayoral
stipend will be reviewed.
i
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2. Request for Graduate Program for City Administrator
It was noted that on this night, Administrator Graff was attending a class that was
strongly recommended by the City Council. He will be attending this mandated class for
several weeks. Mr. Graff has requested approval/tuition reimbursement for a Master of
Public Administration degree. Chairman James voiced his approval of Mr. Graff's
request and asked how many night classes were in this program. There was also some
discussion regarding class attendance possibly taking him away from his duties.
After some discussion, it was decided to ask Mr. Graff to bring a list of his classes to this
committee to insure that the mandated classes are taken first, if possible. Mayor
Prochaska added that some courses have prerequisites that must be considered as well.
He also said that a determination must be made if mandated classes can be scheduled as a
priority and how they fit into the entire program.
The issue was raised of an employee possibly resigning to take another job. It was
suggested that a job agreement may need to be signed or the tuition must be paid back to
the City. Chief Martin stated that the Police Department requires employees to sign an
agreement when they attend PTI. Concerning continuing education, if less than a grade
of "C" is achieved or if the class is dropped then the tuition must be paid for by the
employee. Mayor Prochaska suggested that the approval of this program could be
contingent upon signing an
employment agreement.
Cost of the MPA classes, cost of the current class being taken and transferability were
also discussed. Less expensive courses outside of the MPA program should also be
researched.
This request will be brought back to this committee for continued discussion at the next
meeting.
3. Bond Ordinance/Trust Indenture for SSA 200 -104 Grande Reserve Central -Fixed
Rate
Alderman Besco expressed his concerns regarding SSA's: if one development is an SSA
while another is not —and whether it would pit one developer against another. He would
like to see statistics that show SSA's are not a detriment. Mayor Prochaska stated the
main issue is that current residents want new residents to pay for the improvements in the
new development. He also stressed education is very important regarding an SSA.
Alderman Besco stressed that some potential homeowners might not be aware of SSA's
or what they entail, when they purchase a home. Treasurer Powell stated that more
information should be published in professional trade magazines about this subject.
This item will be moved forward to the next C.O.W.
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Return to Old Business......
Chairman James stated that he had skipped agenda items 7, 8 and 9, as he did not feel
they were pressing issues and they will be brought back to the November meeting.
Alderman Besco did comment that he felt the labor attorney should give an opinion on
the "Employee Pool Policy" so that it would not be discriminatory.
ADDITIONAL BUSINESS
Treasurer Powell reported that he had been asked to place a call regarding the emergency
generator and the 2 —day outage which will result when the transfer switch is replaced.
Two 8 -hour days will be required to complete the necessary work. Chairman James
asked if the work could be done over the Columbus Day holiday. He outlined an
alternate plan that would only require two small outages. It was decided that Mr. James
should inquire about this matter.
Chief Martin asked if the Disposal of Property policy had been finalized. Some
revisions have been made.
Since there was not further business, the meeting was adjourned at 9:21pm.
Minutes respectfully submitted by
Marlys Young, Minute Taker