Finance Committee

Village of Niles Finance Committee Meeting Council Chambers April 19, 2017 8:00 a.m. Call To Order Chairman LoVerde called the meeting to order at 8:00 a.m. Roll Call Assistant Finance Director Nannini called the roll for Committee members: Committee Members Present: Chairman Joe LoVerde, Bob Callero, John Johann and Paul Nielsen Committee Members Absent: Al Weel Village Staff Present: Finance Director Jeff Martynowicz, Village Manager Steve Vinezeano, Legal Assistant Kathy Thake, Assistant Finance Director Laurie Nannini, Economic Development Coordinator Ross Klicker and Assistant Village Manager Hadley Skeffington-Vos. Old Business None. Approval of Minutes The regular minutes from the March 15, 2017 Finance Committee meeting were up for approval. John Johann made a few suggested corrections to the minutes as presented. A motion was made to approve the minutes as amended and all concurred. Accounts Payable Approval The approval of the Accounts Payable registers for 2017-3/10, 3/17, 3/24, 3/31 and 4/7 were up for approval, motion made and all concurred. New Business Revenue Sharing Agreement With Care One Pharmacy Services, LLC Ross Klicker presented a Sales Tax Revenue Sharing Agreement with Care One Pharmacy Services, LLC. Mr. Klicker explained why a sales tax revenue sharing agreement is being proposed versus an application for a 6b. Care One is the contract purchaser of property located at the southwest corner of Howard Street and Oak Park Avenue in Niles (former home of Swiss Precision). Care One is a retail pharmacy that is delivery only. Care One and the Village of Niles shall share the sales tax generated at this property at a rate of 75% to Care One and 25% to the Village of Niles each year from the date of commencement until $50,000 is received by Care One. Then the sales tax generated at this property shall be shared at a rate of 25% to Care One and 75% to the Village of Niles for the remainder of the year. This revenue sharing agreement would be for ten years or until the rebate cap of $750,000 is reached, whichever comes first. Stan Gertz, COO of Care One, responded to questions from the Committee members. He confirmed that the company will make improvements on the building and this plan will quadruple their space, increase employees and increase sales. Their plan is to use 100% of the building for Care One. Mr. Gertz stated that sales under Medicare/Medicaid are not taxable, but sales to senior housing residents with private insurance companies are taxable. The business is split 60/40 with 40 being taxable. A motion was made to send the ordinance to the Village Board with a recommendation for approval by the Finance Committee and all concurred. IPPFA Presentation Chairman LoVerde introduced Terry O’Brien, a member of the Illinois Public Pension Fund Association (IPPFA). On behalf of the IPPFA, Joel Babbitt made a presentation which offers Village employees additional options for retirement  April 19, 2017 Finance Committee planning and investing. He stated that the IPPFA has been doing business with the Village for the last few years with the firefighters, who use the IPPFA retirement healthcare funding plan. The IPPFA has been around since 1985 and they currently have 155 units of government in the co-op and about $335 million in total assets. The Village currently has two 457 deferred comp plans (Nationwide and ICMA). As opposed to ICMA, IPPFA charges about one-third less in fees and as compared to Nationwide they are about half as much in fees. Mr. Babbitt is requesting to compete against Nationwide and ICMA. IPPFA competes with these two vendors in every community they are in and their experience has been that whenever they show up Nationwide and ICMA drop their prices to become more competitive. As an Association, they provide the Village with a hold harmless agreement backed by Transamerica. In summary, there is no cost to the Village to add the IPPFA as an option. IPPFA has a local office in Glenview with seven advisors/consultants statewide and schedule on-site visits three times a year. IPPFA is a non-profit organization and is in the process of rebranding to national status as NPPFA. Village employees and Pension Fund Trustees are also eligible to participate in the program. Mr. Babbitt and Mr. O’Brien responded to questions from the Committee, Village Manager, and Finance Director. A motion was made to send a resolution to the Village Board to give employees another option for retirement planning with a recommendation for approval by the Finance Committee and all concurred. Finance Organizational Analysis RFP Assistant Village Manager Hadley Skeffington-Vos stated that every other year the Village budgets for an organizational analysis of a Village department and this year the Finance Department was identified. This RFP is very similar to ones for the IT Department, Police, Community Development and Public Works to solicit quotes for services to analyze core work activities and operations, staffing levels, review of job descriptions for exempt/nonexempt status according to Federal law, any IT opportunities for financial software, outsourcing or insourcing and restructuring opportunities. This audit is budgeted for $20,000. The Committee would like to be kept in the loop on the proposals received with the final two proposals to be brought back to the Finance Committee. Employees of the Finance Department and AFSCME have been informed of the upcoming Department analysis. A motion was made to recommend approval and support for an RFP for an organizational analysis of the Finance Department to the Village Board by the Finance Committee and all concurred. Broker RFP for Workers Compensation Assistant Village Manager Hadley Skeffington-Vos stated that the last time the Village went out for a Request For Proposals (RFP) for professional brokerage services for Property & Casualty, Workers Compensation Insurance was in 2014. Mesirow is our current broker and had a one-year contract with two renewals. She gave a brief overview of the RFP process. The two finalists will bring their proposals to the Finance Committee with the finalist being brought to the September Board meeting for approval. The Village Manager responded to questions from the Committee. A request for clarification was made for the amount of Errors and Omissions coverage on page 7 indicating $10 million and on page 13 under Professional Liability indicating $3 million per claim. The contract would begin on January 1. A motion was made to recommend approval and support for an RFP for a Workers Compensation broker to the Village Board by the Finance Committee and all concurred. FY2017 Selden Fox Audit Engagement Letter Finance Director Jeff Martynowicz stated that the Village’s auditors, Selden Fox, are requesting approval of an engagement letter to conduct the FY2017 audit. The total 2  April 19, 2017 Finance Committee fee for their services this year is $33,250. A request was made to find out what Selden Fox’s security measures are for keeping the Village’s employees’ personal information safe. The Village Manager will look into this. A motion was made to recommend approval to the Village Board of the FY2017 Selden Fox engagement letter by the Finance Committee and all concurred. Quarterly Reports Update Assistant Finance Director Laurie Nannini updated the Committee on the Finance Department’s list of delinquent water accounts, payment plans, leak adjustments and the Illinois Debt Recovery Program. A request was made that the Master Shutoff List be separated to identify those accounts where the water has already been shut off. These programs, created in conjunction with the Finance Committee, have been very successful in reducing the Village’s outstanding debt. Other Business Chairman LoVerde questioned whether municipalities are exempt from the Cook County minimum wage ordinance. Village Manager Vinezeano stated that if the Village Board does not opt out of Cook County’s minimum wage ordinance before the effective date of July 1, 2017, all Village of Niles businesses and the Village of Niles will have to abide by Cook County’s minimum wage of $10. Chairman LoVerde stated that the Finance Department wants to come up with a percentage of the reserves for unrestricted funds. Finance Director Martynowicz stated that basically it would be creating a Fund Balance Policy, specifically for our budget, that specifies a minimum and a maximum and what can be done if we are over the maximum. The Finance Department will be looking for feedback from the Finance Committee and the Board of Trustees. Public Comment Louella Preston questioned whether the IPPFA has officially changed their name to the NPPFA and whether the Board of Trustees would be eligible to participate. It was clarified that the Trustees mentioned were the Pension Board Trustees. She also commented on the Public Comment time available at the Budget Workshops. Adjournment: Motion to adjourn was made and all concurred at 9:10 a.m. Prepared by Village Clerk Marlene J. Victorine on May 8, 2017. . 3