City of Geneva Committee of the Whole met Sept. 8.
Here is the agenda provided by the committee:
Staff Responses to Council Questions
Before each Committee of the Whole or City Council meeting, questions that have been posed by the City Council relating to the agenda for that evening will be posted to the City’s website. Below are the responses to this week’s questions.
Items of Business
a. Consider Draft Resolution Authorizing Acceptance of the 2020 Employee Benefit Plan Renewal Effective November 1, 2020
Q: Page 11 – What was the initial BCBSIL rate increase?
A: The original renewal was approximately 9%, working on the City’s behalf Lundstrom was able to seek
rate relief and secure the reduced rate of 4.64%.
Q: How is the $2,177,070 broken down by component? If the dental plan has no change, then the health care portion is increasing by more than 4.64%.
A: This is an estimate based on current enrollment levels. The City’s contributions fluctuate throughout the year as employees join or leave the organization, and due to qualifying life events. At current levels, staff attributes $2,046,844 to Health Insurance, $100,563 to Dental contributions, and $29,663 to the Life and Accidental Death & Dismemberment coverage.
Q: What reasons were offered for the largest % increase in 5 years?
A: The City has received several renewals, including a reduction, over the past 5 years. While there is no singular reason, the increase reflects a multitude of factors including actuarial projections and experience. While mitigated through the rate structure, larger claims have an impact on the City’s rates. A representative from Lundstrom will be present to answer any follow up questions.
Q: Why do we offer the DHMO plan if there are so few participants?
A: The DHMO plan offers employees another method for controlling healthcare expenses, and is the only option for orthodontia coverage. Staff evaluates plan structure and design, and enrollment in plans annually.
b. Consider Draft Resolution Amending Section 6.9 of the City of Geneva’s Personnel Policy Manual
Q: Page 15 – What situation would require full time, non-exempt, non-union employees of the police dept. to work on a holiday? How often does this occur?
A: The Police Department is in operation 24 hours a day, 365 days a year. This update would apply to Sergeants and employees in the Records Division when a holiday falls on a regular work day for those employees. This occurs on all of the Holidays detailed in the Personnel Policy Manual.
c. Recommend Draft Resolution Authorizing the Purchase of Sixteen (16) Sets of Personal Protective Clothing from W.S. Darley at an Estimated Cost of $32,000.00
Q: Page 18 – In February of this year, the City bought 24 sets. This purchase will make that number 40 sets during calendar 2020. Is this an expected number of turnout gear sets needed each year?
A: This request of 16 sets of turnout gear are for personnel that have expiring second sets of gear. Per NFPA regulations all turnout gear is retired 10 years from the original date of manufacture. The Fire Department is in the middle of a multi-year cancer prevention best practice project to equip each fire fighter with 2 sets turnout gear. Future purchases are expected to be ~20% of the gear fleet (~ 12 sets) per year. Plan variations are expected to account for additional part-time fire fighters, in service wear and other variables.
e. Consider Draft Resolution Authorizing Execution of a Contract with Edge Landscaping for 2020-21 Commuter Parking Lot Snow Removal in the Amount of $84.50 Per Hour
Q: Page 25 – Is an hourly rate typical to quote this type of work? Would a rate per inch of snowfall represent an easier way to monitor this cost?
A: Utilizing a per inch method for payment would add volatility to the contract since not knowing how many events will occur during the season, or how many inches of snow will fall during each event, the contractor would have to factor in the cost of equipment, insurance, and hourly wages and profit margin off of a highly speculative set of assumptions. Also, different types of snowfall require differing times to clean up. Heavier wet snow is actually easier to clean than light fluffy snow with a slight wind. These factors would have the potential to increase the rate to account for these variables. This also opens the contract up to an argument as to where is the official snow fall measurement being taken? There have been instances where the total snow fall changes per parking lot depending on wind direction and the dividing line for snow.
Q: Page 25 – As Geneva is not generating any parking revenue, and few cars appear to be using the commuter lot, do we need to proceed with snow plowing the entire commuter lot? If only a fraction of the lot is used, why not close off part of the lot and not needlessly pay to plow it?
A: The main concern with not plowing the entire lot is the potential exposure to liability. In addition, while commuters may not be using the lots, the lots are available for employees and patrons of downtown businesses (which hopefully will be needed during the busy holiday shopping season).
i. Presentation and Consideration of Draft Resolution Authorizing Repayment Plan for Past Due Utility Balances and the Resumption of Disconnections and Late Payment Penalties Effective October 22, 2020.
Q: Page 37 – What are the numbers associated with this resolution? How many customers? Total $ amount nonpayment of utility bills?
A: These questions and others are anticipated to be answered through the presentation at Committee of the Whole meeting.
j. Consider Draft Ordinance Providing for the Payment of the Outstanding Parking Refunding Revenue Bonds, Series 2008, of the City of Geneva, Kane County, Illinois
Q: Page 40 – Did Geneva ask BMO Harris for a waiver on the covenants? What are the potential penalties of the covenant violation?
A: While BMO Harris was not asked for a waiver, the City did seek advice from Speer (the City’s financial advisor for bond issues). If the City in unable to meet the bond covenants, the City is required to disclose the failure to meet bond covenants for the debt issuance through Electrical Municipal Market Access (EMMA). Moody’s, the City’s rating agency views the situation negatively and the City risks the possibility of a downgrade of the Aa2 rating.
Q: What is the current loan amount outstanding? Why does the payoff amount appear to include the FY21/22 interest amount of $3,745? IF the loan is paid now, this interest charge would not be incurred?
A: Current load amount is $365,000. The payout includes $3,745 of interest for FY 21/22. The bond issuance does not allow for prepayments, therefore, the City is required to pay for the interest per the bond ordinance. An alternative to prepayment of the bond would be to have a third party hold the money in trust which would require a service fee in addition to the interest payments.
Public Comments - None
https://www.geneva.il.us/AgendaCenter/ViewFile/Minutes/_09082020-1637
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