HomeMy WebLinkAbout11-09-2004 ClericalMINUTES
CLERICAL COMMITTEE
City Council Chambers @ Historic Depot
November 9, 2004 - 6:30 p.m.
embers Present: Aldermen -Jim Hartford, Craig West, Larry Sarff. Alderman
sent was Mary Fillingham.
hers Present: Aldermen -Bob Molleck, Elny Harn, Les Carl, Rick Reed, Craig West.
iyor Jerry M. Bohler, City Clerk Nancy Whites, City Treasurer Patty Beaird Franzoni,
:y Attorney Ron Weber, Public Works Director Cliff O'Brien, Wastewater Supt. Joe
rruthers, Water Treatment Supt. Greg Pollitt, Fire Chief John Stanko, Police Chief
~nald Edwards, Street Supt. George Spahn, System Maintenance Supt. Bill Terry,
ning Officer Clark Wilson, news media Daily Ledger Linda Wilson, Journal Star
enda Bowen, Rod Heinze candidate for Mayor, Ed Ketchum candidate for Mayor, Mr.
Mrs. Byron Kinney, Park District Director Gary Baker, Insurance representative Jack
ill, Insurance Committee member Randy Romine and city employee, Video Service Joe
Mayor Bohler introduced each Aldermen and the committee they chair.
Finance Committee
Jim Hartford, Chairman
Bills. Motion and second by Aldermen West/Sarff, all bills presented be sent to
council for their consideration. Voice vote, motion carried unanimously.
Treasurer's Resort. City Treasurer Patty Beaird Franzoni said she received the last
large property tax payment in October. Alderman Hartford thanked Patty for delivering
the report, but would like to have in the packets. Patty explained that due to a glitch she
was not able to do that.
Alderman Carl ask Julie to report on the health care funds increasing deficient. Budget
Administrator Julie Smick reported that you will have to bring in more as it will continue
to grow to a larger deficient.
Personal Protective Equipment from Fire Department. Motion and second by
Aldermen Sarff/West, to approve of the request to purchase (1) coat and (1) trouser of
protective equipment from Global/NIES in the amount of $1,678.35, and refer to council
for their consideration. Discussion. Fire Chief John Stanko stated that it takes 60 days to
receive the order. Voice vote, motion carried unanimously.
BNSF Railroad along 4t6 Avenue. Was taken off of the agenda.
Renewal Premium for Insurance. Motion and second by Aldermen Sarff/West, to
accept the renewal with the Illinois Municipal League Risk Management Association
Clerical Committee meeting 11-9-04
(IMLRMA) of a 3% increase making the total cost $351,888 for all coverage, and refer
to council for their consideration. Discussion. Budget Administrator Julie Smick had
sent a memo to the council members. The memo is listed as follows: After an insured is
enrolled in their program for 1 full year, they offer a program called Min/Max, which
would allow the City to pay a premium of $301, 216 - a savings of $S0, 672. However, the
City would assume some of the loss risk. Under this plan we would have loss thresholds
of $202, 687 (the Minimum) and $304, 031 (the Maximum). If we had losses in excess of
$202, 687 we would be billed for all subsequent losses up to the maximum of $304, 031.
After you reach your maximum in a year you are not billed for any additional losses. So
it is a gamble -you could save $S0, 672 for the year and not have losses over the
Minimum; or you could potentially have to pay for up to $101, 344 in claims above the
Minimum if something drastic were to happen. This would include work comp claims.
We are required to pay our first % of the premium by 12/7-04 so these documents would
need to be approved before that date.
This ends the memo
City Attorney Ron Weber mentioned there is one alternative, start setting aside a fund to
cover that. Voice vote, motion carried unanimously.
Illinois Route 78 Improvements. Was taken off of the agenda.
Asbestos Removal and Demolition of the West Side of the IH Site. Motion and
second by Aldermen West/Sarff, to approve paying Payment No 3 to N.E. Finch for
$83,700.00 for work completed through October 20, 2004, and recommended by Maurer
Stutz Inc., refer to council for their consideration. Voice vote, motion carried
unanimously.
MFT work completed from United Paving & Construction in the amount of
$241,000.00. Motion and second by Aldermen West/Sarff, to approve Maintenance
#1 for applying Hot Sand Seal Coat in the amount of $241,000.00 and payable to United
Paving & Construction, and refer to council for their consideration. Discussion. Keith
Plavec from Maurer Stutz Inc. said the MFT work will be finalized once the paper work
for materials are back from IDOT. Voice vote, motion carried unanimously.
Request for Approval of Change in Plans for Maintenance Program. Motion and
second by Aldermen Sarff/West, to approve of the changes as modified, and refer to
council for their consideration. Discussion. Keith Plavec of Maurer Stutz Inc.
mentioned that this is for the final balance of guarantee. Voice vote, motion carried
unanimously.
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Clerical Committee meeting 11-9-04
Ensineer's Final Payment Estimate. Motion and second by Aldermen Sarff/West, to
approve of the engineer's final payment estimate on the maintenance program, and refer
to council for their consideration. Discussion. Keith Plavec of Maurer Stutz Inc. said
this is the final quantities and they are to show them to IDOT. Voice vote, motion carried
unanimously.
Resolution for Maintenance of Streets & Hi~hways by Municipality. Motion and
second by Aldermen Sarff/West, to accept the cost of $14,000 for additional funds for
unconditional road work; and refer to council for their consideration. Discussion. Keith
Plavec of Maurer Stutz Inc. mentioned this is because some conditions of the road were
not appropriated. Voice vote, motion carried unanimously.
Request for Expenditure/Authorization of Motor Fuel Tax Funds. Motion and
second by Aldermen West/Sarff, to approve of the expenditure of Motor Fuel Tax Funds,
and refer to council for their consideration. Discussion. Keith Plavec of Maurer Stutz
Inc. mentioned this is to spend the money. Voice vote, motion carried unanimously.
The Finance Committee adjourned at 7:51 p.m.
Legal & Ordinance Committee
Mary Fillingham, Chairman
Tax Levy Ordinance. Motion and second by Aldermen Hartford/Sarff, the ordinance
be referred to the council meeting for first reading. Discussion. Budget Administrator
Julie Smick said she did not increase the levy due to the City receiving the Sales Tax in
January 2005. Alderman Sarff asked about levying for Health Insurance. Julie said you
can not levy to pay Health Insurance. Voice vote, motion carried unanimously.
Water Line Agreement with Manock and Fransicovich. City Attorney Ron Weber
mentioned this situation has never been finalized. A resolution was prepared back in
2000 and never acted on. It is not on record with the City Clerk's office nor the water
department. This is a new water line and it came to the City's attention when two people
tapped on. This was approved by the committee to charge them for tapping on to the
water line. One thing that could have delayed the action was for everybody to have a
pre-annexation agreement. No action is required tonight. Ron said he will be checking
into this.
Water Line Agreement with Bryan Kinney. City Attorney mentioned that there is an
agreement for special tap on fees after the water line is installed. The Kinney's want the
mayor to sign EPA Agreements so they can put the water line in.
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Clerical Committee meeting 11-9-04
Keith Plavec of Maurer Stutz Inc. said this is in the Venovich area with 2 homes in the
area. Potentially 5 other homes could hook on later.
Motion and second by Aldermen Sarff/Hartford, permission granted for mayor to sign
agreement, and refer to council for their consideration. Voice vote, motion carried
unanimously.
The Legal & Ordinance Committee adjourned at 7:00 p.m.
Community & Industrial Development Committee
Craig West, Chairman
Update of Activities. Alderman West congratulated David Byerly and Mark Barett for
their recognition for business man being in their 40's. Alderman West said he was proud
of Dave and Mark on receiving such distinction.
The Community & Industrial Development Committee adjourned at 7:01 p.m.
Negotiations, Grievance & Personnel Committee
Larry Sarff, Chairman
Pav Back -City Clerk Bonus. Mayor Bohler mentioned this was Alderman Carl's
concern at the last committee meeting, but Mayor Bohler said he would add comments.
The Clerk has to be certified in order to receive a bonus of $5,000. The Clerk has been
receiving the funds and she is not yet certified. When asked by Alderman Carl how
much has been paid, Julie Smick said the clerk was paid $2,403.25. Alderman Sarff
asked the clerk when she would be receiving her certificate? Nancy Whites answered it
is in the mail to me as all information was faxed last week. Alderman Sarff wanted to
hold the issue over to the December meeting.
Motion and second by Aldermen Hartford/West, to hold over the pay back bonus for
City Clerk until December Finance Committee. Voice vote, motion carried unanimously.
EXECUTIVE SESSION -NEGOTIATIONS, GRIEVANCE & PERSONNEL -
PERSONNEL TO DISCUSS GRIEVANCE. Motion and second by Aldermen
Hartford/West, to convene the Clerical Committee meeting to go into Executive Session
to discuss a Grievance. Roll call. AYES -Aldermen Sarff, Hartford, West. NAYS -
None. 3 AYES, 0 NAYS, 1 ABSENT. Motion carried.
The Negotiations, Grievance & Personnel Committee convened the regular committee
meeting at 7:05 p.m. to go into Executive Session.
The Clerical Committee reconvened into open session at 7:35 p.m.
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Clerical Committee 11-9-04
The minutes of the Executive Session to discuss a Grievance is on file in the office of the
City Clerk for review.
TO HOLD DISCUSSION - TPA/CITY ON HEALTH INSURANCE.
Those in attendance: Mayor Jerry M. Bohler, City Clerk Nancy Whites, City Treasurer
Patty Beaird Franzoni, Budget Administrator Julie Smick, Public Works Director Clif
O'Brien, Police Chief Donald Edwards, Fire Chief John Stanko, Police Lieutenant Dean
Putman.
Aldermen -Larry Sarff, Bob Molleck, Elny Harn, Les Carl, Jim Hartford, Rick Reed,
Craig West.
Park Director Gary Baker, Library Director Randy Wilson, Insurance Rep. Jack Hall,
HCH representative Paul, Michelle Nelson from Catalyst, Insurance Committee member
and City Employee Randy Romine, Daily Ledger rep. Linda Woods.
Alderman Sarff explained why the meeting was taking place. There were concerns from
the Budget Administrator Julie Smick, City Treasurer Patty Franzoni and the Insurance
Committee about the large deficient in the Health Care Fund.
The representative from HCH gave information on Health Plan Trends. 2002 $4,569.03
- 2003 $4,519.57 - 2004 $8,038.46.
High cost members
In 2003
29 members had claims expense > $SK totaling $375,415
11 members had claims expenses > $1 OK totaling $246,822
4 members had claims expenses > $20K totaling $165,800
In 2004 (First 3 Quarters)
22 members had claims expenses > $SK totaling $481,771
17 members had claims expenses > $lOK totaling $445,454
9 members had claims expenses > $20K totaling $332,500
Higher cost in specific diagnosis categories
In 2003
Endocrine, Nutritional, and Metabolic (eg.Diabetes) 10.81 % over HCH
Norms
Blood and Blood Forming Organs (eg.Anemia) 6.34% over HCH Norms
Nervous Systems and Sense Organs (eg.Retinal degeneration) 4.50 % over
HVH Norms
Ill Defined conditions (Signs and symptoms eg. Chest pain) 4.3% over
HCH Norms
In 2004
Clerical Committee meeting 11-9-04
Endocrine, Nutritional, and Metabolic (eg.Diabetes) 7.75% over HCH
Norms
Injury /Poisoning (eg.fracture or broken bone) 17.29% over HCH Norms
Possible Solutions
Invest in a Disease Management program along with Predictive Modeling
(HCH suggested, here is an incentive to get you to take care of yourself.)
Invest in a Demand Management program (Nurse Hot Line)
Promote health through physicals, wellness, etc.
Cost reductions for DME-Med (Durable Medical Equipment) supplies through
Duratech.
(HCH suggested, the city needs to find out if they have any underlining conditions
for large claims.)
Cost reduction in lab services through MMP (HCH suggested to use Lab Core
and Quest. You will have savings from 75 % to 95%.)
Paul from HCH said lets make sure your employees are not taking advantage of the plan.
The City needs to look at the Plan design.
Michelle Nelson from Catalyst Drug Card then talked about savings.
She suggested using generic brands if available or paying higher cost.
Michelle Nelson said they still have the City on the standard formulary as they have
never switched the City to Catalyst.
Paul from HCH mentioned that Catalyst comes to them every quarter constantly looking
as to where the City can save.
Alderman Sarff asked if the fund could give any idea which area the large claims are
coming from? Paul from HCH said they could break the information down.
Paul of HCH said the worse thing you want to do is going fully to an insurance plan when
having a bad year.
Paul said they offer free service to sit on the Insurance Committee by being an actual
member.
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Clerical Committee meeting 11-9-04
Adjournment. Motion and second by Aldermen Hartford/West to adjourn. Voice vote,
motion carried.
The Clerical Committee adjourned at 9:01 p.m.
Recording Secretary,
Nancy Whites, City Clerk
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