City Council

MINUTES CITY OF DEKALB SPECIAL COMMITTEE OF THE WHOLE MEETING JUNE 18, 2018 The City Council of DeKalb, Illinois held a Special Committee of the Whole meeting on June 18, 2018, in the City Council Chambers of the DeKalb Municipal Building, 200 S. Fourth Street, DeKalb, Illinois. Mayor Smith called the meeting to order at 5:00 p.m. A. ROLL CALL Deputy City Clerk Shelly Jureczek called the roll and the following members of City Council were present: Alderman Bill Finucane, Alderman Mike Marquardt, Alderman Patrick Fagan, Alderman Kate Noreiko, Alderman Mike Verbic, Alderman Tony Faivre, and Mayor Jerry Smith. Alderman David Jacobson arrived at 5:15 p.m. Also present were: Interim City Manager Patty Hoppenstedt, Finance Director Molly Talkington, Deputy Fire Chief Jeff McMaster, and Human Resources Director Cris Randall. B. PUBLIC PARTICIPATION Mayor Smith asked if there was anyone present who wished to speak to an item not listed on the agenda. There was none. C. CONSIDERATIONS 1. City Manager Search – Hybrid Recruitment Process. In follow up to a previous presentation regarding the City Manager search, Alderman Finucane had requested additional information regarding the services to be provided by GovHR. Human Resources Director Randall reviewed details regarding GovHR’s services provided in a letter from Heidi Vorhees, President of GovHR, dated June 12, 2018. The letter included options the City has regarding the services available, the costs associated with each of those options and the methods GovHR uses to complete those options. Mayor Smith clarified that Council has already chosen GovHR for the recruitment search and asked for clarification regarding the amount of the budget for advertising and marketing. Human Resources Director Randall confirmed that the City could choose which forums are used for advertisement. If the Council chose to eliminate some of the marketing options listed in the proposal, the actual cost of the marketing would be less than the $3,000 budget. Alderman Finucane indicated he felt it was important to limit the amount of staff time and potential liability the City might have during this process. He reiterated the Council could choose how many candidates they will review. During the last search, out of 57 Special Committee of the Whole Meeting Minutes June 18, 2018 Page 2 of 8 potential candidates, the Council received information on 12 candidates. He indicated he would like to see 20 or more this time. Mayor Smith inquired if there was a consensus that the Council is satisfied with GovHR’s response for more information. Alderman Finucane indicated he was satisfied. Alderman Noreiko concurred that she would like to see 20 to 25 qualified applicants of prescreened applicants. Human Resources Director Randall added that this process gives Council another layer of protection against discriminatory hiring practices claims. Alderman Faivre stated he was in favor of using the prescreening process but would like access to all of the résumés. Human Resources Director Randall confirmed that Council would have full access. Alderman Verbic stated he believes qualifications will affect the number of applicants and feels that Council needs to confirm those qualifications before the search firm or staff get too far along in the process. Mayor Smith confirmed that the topic of qualifications is scheduled for the next Committee of the Whole meeting. Human Resources Director Randall indicated that City Attorney Frieders would be making a presentation during next week’s Council meeting to determine if it is the Council’s wish to reflect any changes to the duties and powers of the City Manager within the Municipal Code. As a part of the position profile, GovHR will establish the skills and management styles the Council is looking for through meetings with the Council members. The results of those meetings will be summarized in a report to be prepared by GovHR before any advertisement begins. Alderman Verbic indicated his preference to meet with GovHR as a group in a public setting rather than one-on-one meetings for the sake of efficiency. Interim City Manager Hoppenstedt confirmed that Ms. Voorhees is offering to meet in one-on-one meetings with each City Council member and/or in a public setting as a group. Human Resources Director Randall stated she will prepare a resolution for the June 25, 2018, Council meeting, authorizing an agreement with GovHR as proposed within their June 12, 2018 letter. Interim City Manager Hoppenstedt then took a moment to make a few parting remarks before her out of state move on June 22, 2018. She thanked the Council for allowing her the opportunity to serve as Assistant City Manager and Interim City Manager. She expressed pride in the work everyone has done, including City Council’s work as the City grows. She thanked City staff for their support and dedication and stated her confidence in Molly Talkington as the next Interim City Manager.  Special Committee of the Whole Meeting Minutes June 18, 2018 Page 3 of 8 2. Budget Workshop a. Review of Budget Schedules and Goals.  Service Level Review. Fire Department. Deputy Fire Chief McMaster provided Council with a copy of the 2017 Annual Report for the Fire Department, which details the mission statement, core services provided by the Fire Department, information on operations, training, support services, facilities and fleet, and budgeting and revenue. Using a PowerPoint presentation, Deputy Fire Chief McMaster provided a comprehensive overview of the annual report and service level review for the Fire Department, which includes fire and rescue services, special teams including aircraft emergency services, Hazardous Materials and Technical Rescue, fire life safety, commercial and industrial building inspections performed by the fire prevention and off-duty firefighters. A financial challenge the Fire Department is facing is their aging fleet. There are currently three vehicles that need immediate replacement and an additional four vehicles needing replacement in the next three years. Last year the Fire Department generated $1.9M of revenue for the City, a majority of which comes from ambulance billing. Additional revenue comes through a Northern Illinois University (NIU) fire protection contract, and licensure inspection services (i.e. rooming houses, Fire Life Safety, hotel/motel, and gas station). Alderman Fagan asked why $2.5M was billed out for ambulance services but only $1M was collected. Deputy Fire Chief McMaster explained that the bulk of revenue is from patients with private insurance. Many constituents rely on Medicare and Medicaid, which only pay pennies on the dollar. Self-pay patients are also included as difficult to collect. Alderman Noreiko asked about the impact of the cuts for attending conferences or memberships in professional organizations. Deputy Fire Chief McMaster indicated it is a loss of networking and sharing information on resources. For example, the International Association of Fire Chiefs helps extensively with new and efficient ways to test for firefighters and for promotions and can also help in the event of a serious injury or firefighter death, providing resources to help a stricken fire department. Alderman Noreiko thanked the Fire Department for their SEPSIS alert protocol. Alderman Verbic asked if the breakeven point with NIU services is known. Deputy Fire Chief McMaster indicated the information is tracked by taking the Special Committee of the Whole Meeting Minutes June 18, 2018 Page 4 of 8 cost of “going out the door” (salaries and vehicle costs) and calculating what services run specific to NIU. The analysis shows that the City continues to be at a good point. Last year the City brought in $166,000 through the NIU contract. Next year, the City contract increases to $830,000. Alderman Verbic asked for confirmation that the City is trying to stay at breakeven point. Deputy Fire Chief McMaster confirmed. Alderman Verbic also asked if the Fire Department would come to the Council when the City’s incidents are at a point to justify opening a new station or the relocation of an existing station, as it appears that the numbers are tracking as if there will be a need fairly soon. Deputy Fire Chief McMaster indicated that the Fire Department carefully tracks the response times to identify any changes in need that may require opening or relocating stations. Alderman Faivre asked about whether it was common practice that a second vehicle is sent every time the City sends out an ambulance. Deputy Fire Chief McMaster confirmed. Alderman Faivre questioned if the City has evaluated sending a smaller vehicle instead of a fire truck (or large engine) with the ambulance. Deputy Fire Chief McMaster indicated there are national standards for BLS calls and ALS calls. BLS calls can be handled by two paramedics in an ambulance. ALS calls (seizure, sudden death, heart attack) require four paramedics within four to six minutes. The Fire Department is constantly looking at other models (i.e. ambulance/SUV versus ambulance/fire truck). Alderman Faivre commented that at a recent Illinois Municipal League Conference, Rockford spoke about a program they use for chronic users of ambulance services for hospital transport rather than a life-threatening situation. With this program, the hospitals pay the Fire Department to have a staff member work with individuals who are using the ambulance services, in order to eliminate tying up those emergency resources. Deputy Fire Chief McMaster confirmed there are frequent users in DeKalb and that data is tracked. The Fire Department still responds to 911 calls for everything from needing help out of the bathtub to something more serious. At those times, the Fire Department provides information about area social service programs for follow-up. He added that although there has been talk with the hospital about a community medicine program to provide services for those who don’t have the means to seek out primary health care, the issue remains on how that service would be funded. There are no concrete plans to move forward with this type of program at this time. Alderman Finucane asked how many calls were from outside the City but within the Fire Protection District. He added that the report shows that only 7.2% of revenue comes from Fire Protection District contract and wants to make sure the City is getting its fair share. Deputy Fire Chief McMaster said that last year  Special Committee of the Whole Meeting Minutes June 18, 2018 Page 5 of 8 the Fire Department ran just over 200 calls from Fire Protection District. Additionally, the Fire Department ran 114 calls to its mutual aid partners. He noted that in order to receive mutual aid, the Fire Department needs to provide it. Mayor Smith looked at the cuts the Council made to the Fire Department budget and confirms the Council made some of the easy ones. He went on to say it is difficult to say “no” when someone calls for service. He added that the pension obligation in this community and the state is unbelievable and is a continual albatross and we need to get a handle on it. Human Resources Department Prior to providing an overview of this item, Human Resources Director Randall noted that the staff memo regarding this item was much more detailed and encouraged Council and staff to review it for further clarification if needed. Using a PowerPoint presentation, Human Resources Director Randall provided a high-level overview of the Human Resources Department’s six areas of responsibility, including Administration and Strategy, Compensation and Benefits, Employee Engagement and Labor Relations, Safety and Compliance, Training and Employee Development, and Workplace Planning & Employment. Some challenges identified by Human Resources Director Randall included workforce shortages. Projections show that by 2022, 61 positions will need to be filled due to retirement. Mayor Smith pointed out that in 2018 alone, 34 employees are eligible for retirement. With regard to fire and police, eligibility lists are maintained at all times, but there are many challenges that have already been felt due to low eligibility numbers during recruitments. Alderman Noreiko asked about the benefits administration services provided to the DeKalb Public Library (DPL) and whether the City bills them. Human Resources Director Randall indicated that the DPL pays 100% of their costs for insurance. Interim City Manager Hoppenstedt clarified that the City administers the benefits enrollment at no cost to the DPL but does not pay any of the costs relating to the actual benefits. Alderman Noreiko noted that technically, the DPL is part of the City. Human Resources Director Randall added that DPL employees are also a part of the City’s IMRF, so we administer that as well. Alderman Noreiko asked if there was any opportunity to discuss with the DPL the sharing of costs for administration. Interim City Manager Hoppenstedt stated the City has let them know it is considering that. She noted that Finance Director Talkington and the City’s previous Finance Director have discussed this. Special Committee of the Whole Meeting Minutes June 18, 2018 Page 6 of 8 Alderman Verbic indicated he does not support pro bono work for the DPL and asked if the cost for those services could be established. Alderman Fagan asked about the increase in regular and part-time wages from $115,000 in 2016 to $253,000 two years later. Interim City Manager Hoppenstedt explained a part-time person within the Human Resources Department transitioned to the Finance Department and a new person was brought on to fill the vacancy in Human Resources. In addition, there was some restructuring within the City Manager’s Office where a position previously working in the City Manager’s Office was transitioned into the Human Resources budget to provide administrative support. To confirm, there was no position added. There was just a transfer in the budget from the City Manager’s Office to the Human Resources Department. Interim City Manager Hoppenstedt advised that the comprehensive staffing report within the budget reflects those changes and how they affect each portion of the budget. Alderman Fagan also had questions regarding education tuition reimbursement and who is receiving those benefits. Interim City Manager Hoppenstedt indicated that each department previously kept this information separately, but it was since moved to one account under Human Resources for managing, approval and tracking purposes. Alderman Fagan asked how he is supposed to know the details on an individual line item such as this. Interim City Manager Hoppenstedt stated that is the downfall of the current software system, as it does not provide a breakdown. Finance and Human Resources manually keep track of everything that has been approved and that information can be provided by Finance at any time, or on a regular basis if they choose. Alderman Fagan believes that is more work and he thinks this has a lack of transparency. Human Resources Director Randall indicated that although the data is available, it is not listed on the line item review. Finance Director Talkington stated that the new system (BS&A) will allow for separate line items within each account so we will be able to track that detail in a better format.  Line Item Review. Items for Additional Discussion. Finance Director Talkington provided a PowerPoint presentation for three specific budget line items – vehicle allowance, training and education, and dues and subscriptions. Vehicle Allowance funding was tracked back to 2003, although information from long-standing employees reflects that vehicle allowances may have also been paid prior to that time. The number of positions that have vehicle allowances has fluctuated from 2003 to the present from four staff to eight. The lowest cost was $10,000 per year and the highest was $26,000 per year. The current  Special Committee of the Whole Meeting Minutes June 18, 2018 Page 7 of 8 budget is $23,000 for seven positions: City Manager, Assistant City Manager and department heads (excluding the Police and Fire Chiefs who have City- issued vehicles). Comparable information regarding this item was available from two sources. An Illinois City Manager’s Association (ILCMA) survey reflected that 10 out of 12 municipalities surveyed included a vehicle allowance. A PublicSalaries.com survey reflected that 16 out of 19 municipalities surveyed included a vehicle allowance. The allowances ranged from $3,000 to $8,640 per year. The City is closer to the $4,000 range currently. Dues and Subscriptions are for memberships in professional organizations, publications, tools and research information. Among other things, these are used to inform staff and keep them advised of current issues. Metro West and the Illinois Municipal League are good examples of sources used to increase the City’s lobbying efforts. The 2008 budget was around $38,000 and was increased $20,589 in the course of 10 years. In FY2013, the subscriptions were reduced by $35,000 but have risen steadily. The cuts in FY2013 are mostly attributable to the recession, during which time dues and subscriptions are often the first items to be reduced. Training and Education is another item that is affected when a recession hits. Although it is one of the expenses that is initially reviewed for reduction, it is important to understand that training and education provide a critical service to maintain standards for fire and police. As has been previously explained there are peaks and valleys for hiring cycles with police. In a hiring cycle, new officers are onboarded and put through training. In the last three years we were in a hiring cycle for police. It is important to note that some of this training is preventative in nature, in order to avoid improper or inadequate training, potentially leading to catastrophic events and risk of liability or litigation. Notably, the fire department budget is down, as they now require new firefighters to be state-certified as both firefighter and paramedic, which helps reduce their onboarding costs. Alderman Jacobson stated one of his goals as an alderman was to start cutting off some of the conferences (i.e. IML) and making do with internal trainings, but there was push back from staff stating the trainings were necessary. Now the costs have nearly doubled on each line item. He believes that sending all department heads and interns to conferences should be a policy decision. Should the City be spending $15,000 a year to be part of Metro West? Does the benefit justify the cost? In terms of the conferences, he believes the benefits can be achieved by sending one person, rather than three to five people. He feels that the City should strongly look at scaling back to the pre-2012 levels. Mayor Smith said he didn’t want to suggest that the training should not continue at the present levels, but this Council needs more information on where that money is being spent. He stated this is another example in which the City Manager has the ability to make spending decisions up to $20,000 without Council approval. Moving forward, this should be reviewed as part of the responsibilities and authorities the City Manager has. Special Committee of the Whole Meeting Minutes June 18, 2018 Page 8 of 8 Alderman Noreiko stated she is aware of the need to cut expenses but is surprised that the Information Technology Department has a budget of only $2,000, especially due to concerns about cyber security, and wondered if Information Technology Director Thorson been able to tap into resources that make him comfortable with the City’s risk level and if he is going to be coming back at budget time saying the City needs to increase budget for training. Finance Director Talkington stated that Information Technology’s training budget was reduced during this budget as a one-time reduction. She believes that Information Technology Director Thorson felt comfortable with one year of this level of funding. Interim City Manager Hoppenstedt added that Information Technology Director Thorson is a board member of the National GMIS and was able to participate in some training and receive a waiver for registration as a board member. Mayor Smith stated he wants to be sure the City is seeking out all grant opportunities that may be available across the board. Alderman Fagan asked about automobile allowances and how far a staff person with this benefit has to travel before being reimbursed. Finance Director Talkington confirmed reimbursement after 50 miles. D. ADJOURNMENT MOTION Alderman Noreiko motioned to adjourn the meeting; seconded by Alderman Marquardt. VOTE Motion carried on an 8-0 voice vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed and adjourned the meeting at 7:10 p.m. _____________________________________ SHELLY JURECZEK, Deputy City Clerk Approved by Council: July 9, 2018.