Finance Committee

Finance Committee Meeting Council Chambers March 15, 2013 8:00 a.m. Attendance: Committee Members Present: Mayor Robert Callero, Acting Village Manager Steve Vinezeano, John Johann and Finance Director Scot Neukirch Committee Members Absent: Chairman Joe LoVerde Non Committee Members Present: Village Attorney Joe Annunzio, Personnel Coordinator Kathy Barnat, Economic Dev Coordinator Ross Klicker, Community Dev Director Chuck Ostman, BBJ Owner Doron Levy and the attorney for BBJ. Call To Order: Meeting opened at 8:06 a.m. Approval of Minutes: The minutes from the March 1, 2013 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable register for 2/22, 3/1 and 3/8 were up for approval, motion made and all concurred. New Business 6B Request: Economic Development Coordinator Klicker presented the background on the 6B request the Village received from BBJ Linnen for 6125 Howard St. BBJ would be a new company to Niles relocating from locations in Skokie and Morton Grove. BBJ distributes linen. The Niles location would become the headquarters for their operation. There is a retail component to their business which is expected to generate between $20,000 and $40,000 in revenue for the Village. The property has been vacant since 2011 and has been assessed at the vacant status by Cook County since 2012. Since the property has not been vacant for 2 years this would require a finding of special circumstances. Klicker explained that since the property would most likely require the acquisition of additional property to make it a viable location for many other businesses that might consider the location, it is staff’s belief that this property will remain vacant indefinitely without the 6B assistance. BBJ is purchasing an additional parcel of land to assist with parking for the operation. The business will employ approximately 200 people. BBJ will be investing about $1 million in to the property for improvements. The current vacant property tax bill is approximately $68,000 and it is estimated the 6B collections will be about $81,000. Doron Levy, the owner of BBJ, gave an overview of his operations and answered questions from the Committee. Motion made to recommend the approval of the application to the Village Board, all approved. Health Insurance Renewal Update: Personnel Coordinator Barnat gave an overview of the 2013 health insurance renewal for the Village’s health insurance program. Barnat explained the history of increases and the current renewal which contains no changes from 2012. In 2012 the non union employees’ contribution percentage was increased from 10% to 15%. The increase to 15% raised the Village of Niles contribution to among the highest when compared to similar municipalities. Currently the Village is negotiating with its unions to increase their contributions to 15% to bring them in line with the non union employees. Corporate Benefits Consultants (CBC) are the benefit consultants used by the Village. CBC did a comparison of the Village’s self insured plan to what the cost would be if the Village switched to a fully insured plan. The costs associated with switching to a fully insured plan are significantly greater than what the Village has experienced with its self insured plan. Barnat discussed the Village’s wellness program that began in 2012. 76 of the 225 full time employees took part in the blood draw and other available tests. One employee was notified of a significant health risk that could potentially save his/her  life if corrective action was taken immediately. The Village is considering options to increase participation such as gift cards and/or premium reductions for participants. A motion was made to accept CBC’s recommendation of keeping employee premiums the same as 2012, all concurred. Other Business: John Johann requested an update on the March 12 Glenview water case hearing from Attorney Annunzio. Annunzio explained the judge did not make a decision and decided that the case would need to go to trial unless the parties decide to settle out of court. Staff will meet with the Village’s attorneys for this case to discuss a game plan in the upcoming weeks. Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 8:38 am. Prepared by Scot Neukirch on 3/15/2013