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HomeMy WebLinkAboutv - November 8, 2017 COW COMMITTEE OF THE WHOLE MEETING November 8, 2017 The regular Committee of the Whole meeting was called to order by Mayor Kaptain at 5:00 p.m. in the Council Chambers. Present: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Absent: None. Approval of Minutes Councilmember Shaw made a motion, seconded by Councilmember Martinez, to approve the minutes of the October 25, 2017, regular meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. 2018 Budget Discussion Gail Cohen, Human Resources Director, presented details on the cost cutting measures that have taken place over the last ten years as it relates to personnel and benefits. A copy of this presentation is on file in the City Clerk’s office. The areas that were affected included: wages, health insurance, staff reductions and benefits. In the beginning of 2008, the city had 708 full time employees. As of October, 2017, the City has 659 full time employees. The reduction in full-time employees from 2008 to 2017 is a result of three different rounds of layoffs in 2008, 2009 and 2012. Starting in 2010, in order to further reduce personnel costs, the cost of living allowance (COLA) affected all of the employee groups. Other cost saving measures included: reduction in sick days; changes to how paid time off could be carried over, and different premium tiers for health insurance coverage. In the upcoming health insurance plan year, there will be a high-deductible plan with a lower premium but will offer further savings to the city. Over the years, several benefits were discontinued including the 401(a) plan, tuition reimbursement and the physical exam incentive program. Randy Reopelle, Parks and Recreation Director, outlined the department’s responsibilities in the city. A copy of this presentation is on file in the City Clerk’s office. The majority of the department budget comes from personnel and the balance is supplies and equipment. Mr. Reopelle outlined the costs for each parks and recreation facility in the City. He provided comparisons to the surrounding communities noting the types of facilities, the population, net per capita spending, and the acres of parkland. He noted that any substantial cuts would result in a facility being closed. Mr. Reopelle provided information on how his staff annually reviews the user fees and other methods of cost recovery. This review of user fees is done on an annual basis and adjusted as necessary. Barb Keselica, Special Events & Community Engagement Manager, provided details on the Cultural Arts Division. The division is made up of Elgin Special Events, Elgin Art Showcase; Committee of the Whole November 8, 2017 Page 2 Cultural Arts Commission, and the Hemmens Cultural Center. Ms. Keselica provided an analysis of each division providing details on the number of employees, the number of attendees, and the number of events. She broke down the expenditures and revenues generated and provided an average cost per household of $29 for special events. A copy of this presentation is on file in the City Clerk’s office. The community impact of eliminating special events includes losses for local restaurants, local not for profits, and a decrease in hotel stays. City Manager Kozal outlined the proposed revenue diversification. The proposed changes included: changes to ambulance billing; adding a four cent motor fuel tax; increasing the hotel/motel tax from 4% to 6%; increasing the Home Rule Sales Tax from 1.25% to 1.50%. Expense reductions being proposed are: decreased funding to the Elgin Area Convention and Visitors Bureau, reduced overtime in the Fire Department, and cost reductions with the software contract vendors. The proposed changes would result in an overall decrease in the budget from 2017. Mr. Kozal provided information on the utility fund. This fund is an enterprise fund which means that the fees are based on usage. There will be a decrease in revenue when the contract for the sale of water to Bartlett ends. A water rate increase is being proposed with the average increase per household being $3 per month. At the next meeting Interim Water Director, Eric Weiss, will provide further details on the utility fund and the plan for capital improvements. There was discussion regarding the reserve draw down in the coming years, changes to how the River Boat Fund would be used, and a review of overtime for all departments. Consideration of 2018 Health Insurance Program with Blue Cross Blue Shield of Illinois There was discussion on the incentive offered to opt out of the insurance program and the staff’s work to provide a plan at a reasonable cost. Councilmember Dunne made a motion, seconded by Councilmember Gavin, to enter into a twelve month, fully-insured contract with Blue Cross Blue Shield of Illinois to provide health insurance for employees, retirees and their dependents in the amount of $10,750,900 for active employees and $1,523,100 for retired employees. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Consideration of Restaurant Lease and Services Agreement with G & L Glenwood, LLC for the Highlands of Elgin There was discussion regarding the changes in the agreement and how this amenity adds to the Golf Fund. Committee of the Whole November 8, 2017 Page 3 Councilmember Gavin made a motion, seconded by Councilmember Martinez, to approve the renewal of the lease agreement with G & L Glenwood, LLC in order to provide food service to enhance golf operations at The Highlands of Elgin. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Consideration of Resolution Establishing a Schedule for the 2018 Community Development Block Grant Program Year, Appointing Two City Councilmembers to the Review Panel and Amending the Program Management Intergovernmental Agreement with Kane County Councilmember Dunne made a motion, seconded by Councilmember Martinez, to move forward in approving a resolution establishing the schedule for the 2018 CDBG program year, appointing two city council members to the CDBG review panel, and amending the CDBG Program Management Intergovernmental Agreement with Kane County. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Announcements from Council Councilmember Dunne invited the public to attend the Veterans Day program being held on Saturday November 11, 2017 at 11 a.m. at the Veterans Memorial Park, 270 Grove Avenue. Announcements from Staff Laura Valdez-Wilson, Senior Management Analyst, announced upcoming city events. Adjournment Councilmember Dunne made a motion, seconded by Councilmember Martinez, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Dunne, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. The meeting adjourned at 7:02 p.m. s/ Kimberly Dewis November 15, 2017 Kimberly Dewis, City Clerk Date Approved