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Village of Maryville, Illinois

Description Caucus Meeting
Date 12/10/2008 Location Council Chamber
Time Speaker Note
6:30:03 PM Gulledge Called the Caucus meeting of Wednesday, December 10, 2008 to order and invited those in attendance to join in the Pledge of Allegiance. After the Pledge, he asked for a roll call of those officers present. Answering the roll call were Trustees Limberg, Schmidt, Callahan and Kostyshock; Bell was absent; Garcia arrived later. Also in attendance were Deputy Clerk Fenton, Baugher Financial Representatives Kerry Baugher and Kari Schweizer, Museum Chair Janet Butts, Fire Fighter Kevin Watts, Public Works Director Presson, Attorney Manion, and two (2) reporters.
6:30:46 PM Gulledge Called for approval of the November 12th meeting minutes. Asked if there were any questions, additions or subtractions to the minutes as prepared by the Clerk. There were none. Motion to approve was made by Schmidt and seconded by Limberg. Voting on the motion: Limberg - yes; Schmidt - yes; Callahan - yes; Kostyshock - yes. Motion carried.
6:31:16 PM Gulledge Went to first agenda item, 2009 Health Insurance Rate Quote, and invited Representatives Kerry Baugher and Kari Schweizer to discuss.
6:31:41 PM Kerry Baugher 15 Warwick Park Lane, Edwardsville. Referred to information distributed in the packets. Stated an analysis provided projected savings from inception of Baugher's services at December 1, 2006 through the end of 2009 at over $350,000 which was accomplished with little to no reduction in benefits to employees. Explained the second and third pages of the handout provide the difference in payroll deductions employees will face by respective category with the medical insurance carrier increase for 2009. Explained the third page reflects the same changes with the dental insurance carrier, which will remain Guardian.
6:33:29 PM Gulledge Explained the former representative, Ben Crowder, has left Baugher for another job. Explained Kerry Baugher and Kari Schweizer procured five proposals; the reflected proposal from BCBS/IL was by far the best.
6:34:20 PM Baugher Explained the renewal offered provided the best value to the employees and Village.
6:34:30 PM Gulledge Explained all employees filled out the health information questionnaires in order to shop for insurance. Stated he asked Baugher to come in to field any questions. Stated the increase is almost 32%. Commented they have had significant savings in the past. Explained it will be up to the Board to decide how they will pass the cost on to employees.
6:35:35 PM Schmidt Asked the names of the other carriers priced, and whether the savings analysis reflects the $1,000 deductible.
6:35:53 PM Baugher Responded the savings analysis reflects the claims' net savings. Stated companies from whom they received quotes were Aetna, The Principal, United Healthcare and BCBS/IL; GHP did not tender a proposal based on the fact they are not competitive to current rates let alone renewal rates. Commented if the Village had remained with the Local Government health plan, besides the $270,000 savings already realized, they would be spending $90,000 more per year, even after a significant increase and paying out the deductible reimbursements.
6:37:21 PM Callahan Asked if there is a logical explanation for the 32% increase.
6:37:29 PM Baugher Explained the loss ratio was over 100%, meaning for every $1 sent in premium, the insurance company paid more than $1 out in claims. Explained he cannot get into the specifics, as it would violate HIPPA regulations. Explained on a single entity basis, BCBS lost money from the Village recently. Explained health insurance is, by nature, cyclical. Stated they are hoping this is the top end of a bad situation from claims. Commented a 32% increase under anyone's standards is not good. Stated in providing health information to the market, that turns estimates from insurance companies into final quotes. Reiterated the best value was BCBS/IL.
6:39:12 PM Schmidt Stated when Crowder proposed the $1,000 deductible reimbursement, he mentioned a break-even number after which reimbursement would no longer be cost effective. Asked how close the Village got to that number.
6:39:45 PM Baugher Responded they projected at a level that they felt comfortable they would exceed in savings. Explained the maximum exposure was $19,000 in deductibles, which was 25%. Stated paid reimbursements for 2008 is currently a little over $3,000. Explained they have a couple of significant issues that are driving the loss ratio in this case. Stated they are hoping that one situation will resolve itself and in future, claims analysis will not result in future risk. Further explained one situation in the short term will continue to provide a significant risk to prospective carriers.
6:41:47 PM Gulledge With no further questions, thanked Baugher and Schweizer for their attendance.
6:41:53 PM Baugher Commented Baugher Financial appreciates the opportunity to provide services to Maryville, and they hope to continue to meet and exceed expectations.
6:42:09 PM Schmidt Suggested all Board members review the information and consider the possibility they may have to spread the increase to employees who have not had to contribute in the past. Commented they will not be able to discuss the issue until the first week of January. Stated by then he will have suggestions for discussion at the first Caucus in January.
6:42:57 PM Gulledge Stated any thoughts and comments should be directed to Schmidt and Callahan in anticipation of a discussion for the first Caucus in January.
6:43:23 PM Gulledge Invited Janet Butts to discuss Museum issues.
6:43:41 PM Janet Butts Chairman of the Museum Committee, 825 Piquard Court, Maryville. Explained she included information in the packets regarding a proposal the Committee will bring before the Board for approval. Explained the request is for $500. Stated a copy of the budget year to date is included. Commented the museum is healthy and going forward. Explained the request is for items necessary to prepare the office on the east side of the second floor of the building, including polyurethane seal for the floor. Commented they have the results of the analysis of the broken beams, which they hope will be fixed in January. Stated they are also requesting funds necessary to apply for various applicable memberships in professional organizations and needed software. Stated they would also like to purchase window film to protect items from UV rays and additional window blinds. Explained they have $155 left from the first proposal submitted. Commented they also need phone data lines and electrical outlets installed. Stated in looking at the budget, they have $18,000 of the original $20,000. Commented they will have a better judgment on utilities at the end of the year. Commented they had a donation from Al Hrubetz of $1,000. Asked if they are still required to present a proposal to the Board for use of these funds.
6:50:04 PM Gulledge Answered yes, because the funds have been donated to a Village function. Explained they will be earmarked for the museum, but the Board must approve how it is spent. Commented his opinion it is a good proposal, as they are trying to eliminate problems with heating and UV lighting.
6:50:35 PM Butts Explained in future they will be asking for new computers and will need supplies. Commented they are working on the interviews of lifetime residents. Commented hopefully by spring they will see substantial changes in the museum. Stated a few years ago they had a $500 contribution from Freda Foley's estate which was used for expenses; they also have items from that estate and they plan to set up a special display in honor of her donation.
6:52:19 PM Schmidt Stated he has no problem with the proposal, and would suggest they bump up the request to $600 to make sure they have enough.
6:52:33 PM Gulledge Stated the item will be placed on the agenda for next week.
6:52:55 PM Kostyshock Commented they are making headway at the museum, and still need volunteers.
6:53:20 PM Butts Commented they will place an article in the Gazette next month regarding volunteers.
6:54:05 PM Gulledge Went to next agenda item, Ordinance Amending Section 154-028. Stated the issue had to go before the Planning Commission because it is an amendment to the ordinance.
6:54:52 PM Limberg Explained there were four Planning Commission members in attendance at the meeting. Stated the changes were discussed; however none of the members were familiar with the type of problems associated with manhole liners, i.e., if people add on to existing lines, are they able to be repaired, etc. Stated they understood the reason of preventing groundwater from getting into the manholes, but were not familiar with the total function of the lining. Due to the lack of knowledge on the subject, the Commission decided they were unable to make a recommendation either for or against the issue.
6:56:34 PM Presson Explained this is already in place in the system, and has been done for approximately three years. Stated this is an addition to the ordinance for the cost to be picked up by the developer. Stated it is a way to repair manholes and prevent ground water, damage from acids from wastewater, etc. Explained it has a 50 year warranty. Stated the company has been doing this for 15 years and has yet to have one go bad.
6:58:21 PM Gulledge Explained this will not fix any existing manholes unless someone taps into one. Stated they have the responsibility of trying to seal the ones they have from inflow. Stated it is expensive to pay for ground water getting into sewers.
6:58:55 PM Presson Commented for every manhole fixed, they have fixed .025% of the inflow problem. Stated they are preventing future corrosion and inflow problems.
6:59:24 PM Gulledge Commented they are expensive to rebuild.
6:59:29 PM Schmidt Commented they are only adding one paragraph. He was told yes.
6:59:41 PM Gulledge Asked for other questions. There were none.
6:59:51 PM Limberg Commented the Planning Commission felt bad about not being able to make a recommendation.
7:00:06 PM Gulledge Stated he did not feel Presson needed to be at the meeting, as he thought Flaugher would have been able to explain it. Discussion ensued.
7:01:18 PM Kostyshock Commented they can get sketches of the product.
7:02:04 PM Gulledge Stated the item will be placed on the Board meeting agenda. Stated they are removing Agenda Item #8, as it was removed from the Planning Commission agenda due to the contractor not being ready. Stated the contractor did not take care of the review questions from the engineer. Discussion ensued.
7:03:35 PM Gulledge Went to next item, Bauer Lane Sewer Project.
7:03:52 PM Gulledge Stated the engineer's estimate on the project was $124,315; the low bid was from H & M Backhoe Service in Swansea for $113,763.21, which was the recommendation from Juneau. Stated they met Tuesday with the ten (10) property owners involved. Referred to the handout. Stated seven of the ten homeowners were at the meeting, and asked to take the information back to the three that could not attend. Stated they have 90 days to approve the bid. Commented there is a possibility 2 or 3 others may go in, which would drop the cost. Stated there is no action for the Board to take at this time. Stated they will meet again in January.
7:06:28 PM Schmidt Asked how firm they are regarding the $48,000 on the lift station.
7:06:40 PM Presson Stated the lift station is as basic as they can get and his recommendation is to hold that number.
7:06:45 PM Schmidt Asked if they are requiring the homeowners do anything with the unused tanks.
7:06:53 PM Presson Stated they will be collapsed once they are connected, which is part of the price estimate.
7:07:25 PM Gulledge Asked for other questions. There were none. Stated they opened the bids for the Northwood sewer project on Monday. Stated the engineer's estimate was $114,676. Stated they had 12 bidders, of which Kassen Excavating was the low bidder at $66,438.50. Explained 11 of the 12 were under the engineer's estimate. Stated they are recommending the item be put on the agenda for next wed to approve Kassen Excavating.
7:08:30 PM Callahan Asked if they were allowed to tack on additional people from when they originally did this.
7:08:34 PM Gulledge Answered no. Explained they are allowed to use the additional money towards sewer tap ons for low to moderate income people. Stated the majority in the area are low to moderate income.
7:09:07 PM Callahan Asked how many are within 500 feet and will be affected due to the ordinance.
7:09:27 PM Presson Responded none.
7:09:50 PM Gulledge Explained if the land to the east ever develops, this will bring sewers down and available for them to tap on. Asked for other questions. There were none. Stated they were very happy with the bids. Stated the item will be placed on the Board meeting agenda. Went to next item, pay off of Special Service Area #1. Stated they have sufficient funds to pay off the loan to the IEPA. Stated he has contacted the IEPA, and in order to avoid another month of interest he is required to return the request for payoff before December 15th. Stated this does not give the Board time to vote on the issue. Stated the payoff amount is $45,356.09. Stated they will place the item on the Board meeting agenda, but will return the payoff request on an emergency basis. All were in favor.
7:12:32 PM Callahan Commented next week's agenda includes requests for tax abatement. Clarified they will be dropping the request for #1 from the tax abatement.
7:12:55 PM Gulledge Responded they will not tax the people, and are currently checking on how they have to do it. Stated he spoke with Wigginton on the issue Monday, who is working on it. Confirmed all were in favor.
7:13:39 PM Gulledge Went to next item, Tax Levies. Stated they have had one public hearing, and another is scheduled for next week at 6:30 p.m. Stated based on estimated 2008 property valuation of $179 million, using calculated rates on the amount of levies on each fund item, the rate came to $101.13. Stated last year's rate was based on $167,385,800 for a rate of almost $1.03. State Schmidt has a schedule he would like to discuss.
7:15:55 PM Schmidt Explained the mayor and his staff have calculated the land value and taken rates on areas with caps all the way to the high end, which include General Fund, Fire Protection, Police Protection, Street Lighting, Street and Bridge, Public Comfort and Working Cash. Stated for the others, the calculated rate is figured at the dollar amount needed to run the Village next year, which include Liability Insurance, Audit, Unemployment Insurance, FICA, IMRF, Police Pension and Fire Department Pension. Asked if there were any questions on these dollar amounts.
7:17:20 PM Gulledge Clarified he took direction from the Board to maximize all tax levy numbers.
7:17:46 PM Schmidt Distributed his calculation ideas. Explained he thought they could bump up the land valuation to $180,500,000. Commented in the past they were approximately 15-16% below the figure they ended up getting back from Von Nida's office. Stated last year they over estimated by almost $6 million. Stated his opinion is with the building permits and growth, they can be safe to bump up the number. Explained with that figure in place, he adjusted some of the figures for the amount to levy. Referred to his calculation and the difference between established caps, and which figures are already capped out. Stated he lowered the General Fund by about $17,000; the Fire Protection went up a little because the land valuation went up, as did the Police Protection; he lowered the Street Lighting almost $30,000 because they had some money left from last year; Street and Bridge went up because of the higher land valuation; Liability Insurance, Audit, Unemployment Insurance all stayed the same; Public Comfort has a balance of $26,000 left from last year, so he lowered the figure to $25,000, for a total of $51,000; Working Cash went up due to land valuation and is capped out; Social Security, IMRF, Police Pension and Fire Pension all stayed the same. Stated this resulted in a lower calculated rate at $1.08. Stated by lowering the amount, they were still able to come within $75,000 of the figure submitted by the Mayor.
7:21:46 PM Gulledge Commented regarding the Public Comfort account, they were over by $26,000, and the fund currently has $45,901. Explained they got $34,000 last year and only spent $7,700.
7:22:42 PM Schmidt Clarified they will be taking out more maintenance.
7:22:48 PM Gulledge Responded they are now, as they will begin charging the account for maintenance work done by the Public Works Department, resulting in approximately $14,000 to be paid back to Public Works. Commented it won't come into play for a year so they will still have enough money based on the $7,700 spent this year. Asked for any comments.
7:23:52 PM Callahan Asked how they determined the IMRF rate.
7:23:57 PM Gulledge Responded he does not know the numbers, but it is a percentage.
7:24:15 PM Schmidt Stated he asked Jolene Henry, who said for some unknown reason it was going to go down this time but to expect a large jump the following year. Discussion ensued.
7:24:32 PM Callahan Asked if they are on a calendar or fiscal year.
7:25:00 PM Gulledge Responded he believes calendar.
7:25:05 PM Callahan Asked if this is the 2008 rate or the 2009 rate.
7:25:11 PM Schmidt Responded it is the rate that will start in January.
7:25:22 PM Callahan Stated the reason he is concerned, as it could be double, which would be another $125,000. Stated he would like to make sure they know what year the rate they are asking for is actually being paid. Stated if the 2008 rate is 6% or 7%, but there will be a significant increase in 2009, they better tax for it now.
7:25:58 PM Schmidt Stated they can find out. Stated he was under the assumption that all municipalities paid the same rate; however that is not true. Stated he will double check on Callahan's question.
7:26:36 PM Callahan Commented on FICA.
7:26:49 PM Gulledge Stated they have bumped it up by $30,000.
7:26:53 PM Callahan Asked if they have the same number of employees this year. He was told they actually have less. Callahan asked if they over estimate, do they have to give it back. Commented he would rather be over. Discussion ensued. Commented he is concerned about IMRF. Discussion ensued.
7:29:16 PM Gulledge Stated they will try to get the answers and discuss at the public hearing next week. Asked the Board's feelings on the numbers.
7:29:56 PM Callahan Commented Schmidt has done the right thing in making use of funds already in. Stated it is not a significant difference but shows they are trying to do their job. Asked the rate last year. He was told almost $1.03. Commented it is still an increase; however he would point out the problem is Social Security, IMRF, Police and Fire, which must be paid, whatever they are making them un-budgetable.
7:30:39 PM Gulledge Concurred, especially with the Police and Fire Pension. Stated they are trying to listen to the financial people that give the number they believe needs to be levied to cover potential pensions. Commented unless someone is hurt, they do not have anyone close to pension age right now; however if someone is injured and unable to work, they will have to pay them. Commented there are some communities that don't take that into consideration and may not be levying enough. Stated Maryville follows the recommendation from the pension financial representative. Discussion ensued.
7:34:16 PM Gulledge Asked for other comments. There were none. All were in favor of trying the lower schedule.
7:34:33 PM Callahan Commented he is concerned, with declining home values, there will be a lot of homeowners filing appeals. Stated if enough people start appealing, it could be a different picture.
7:35:03 PM Schmidt Stated the appeal process has expired for this year, so those figures are set.
7:35:22 PM Callahan Asked if they know how many appeals were made and how much change there was. Commented he knows of two or three, and the changes were significant.
7:35:32 PM Schmidt Responded that would have been in the previous year. Stated the changes in assessed valuation will be reflected in the figure they get from Von Nida in April/May of 2010. Commented significant differences are sent via notice from the Board of Review. Discussion ensued.
7:37:43 PM Gulledge Went to next item, Fire Department Annual Stipend.
7:37:58 PM Callahan Commented they have had contact from some firemen. Stated he has always left the decision to Chief Flaugher. Stated in looking at the numbers this year, they only have 55% of the men qualifying for a stipend, despite the fact they have a great department with men that work hard. Commented a lot of the men that did not qualify made almost three calls per week. Commented his opinion the system needs to be fixed.
7:38:56 PM Kostyshock Concurred, commenting one person won't get anything and attended 14.19% of calls, making him less than a percentage point away.
7:39:15 PM Callahan Commented they have a good department, and his opinion is at least 75% of the men should be qualifying. Stated the fact is, the calls are way up.
7:39:58 PM Gulledge Commented his agreement they need to work on the system. Stated Chief came to the Board five years ago on the issue. Reminded the Board it is not just about making fire calls; they have to attend training as well. Commented they have a good department, and is better trained than the one he served on. Stated when the officers came to them five years ago, they had a problem with men not attending training and meetings. Commented he had some reservations about the point system, due to the fact the department is volunteers; however the more he thought, he realized they are paid on call and are paid for attendance at meetings, trainings, etc. Stated Flaugher included a memo in the packet because he realizes they have more calls than in past. Stated he is proposing new rules for next year, for which he will come to the first meeting in January to discuss.
7:41:41 PM Callahan Commented he has no problem with what Flaugher is saying, and stated he would not have a problem accepting the proposed rules this year. Commented his opinion they will not be hurting anyone's feelings, as the guys who made their quota will still be getting paid. Stated they are not talking about a lot of money, as they are only paying four more men. Stated he is not trying to be negative. Stated the Village created the problem when they took in Cambridge House, which has increased calls per year by 300. Commented there is no reason why guys who made 150 calls should not get paid.
7:43:12 PM Kostyshock Stated he agrees 100%. Commented in order to fit the new guidelines, they are only adding five (5) people.
7:43:47 PM Schmidt Commented there are men on the list that have only been on the Department since Cambridge House was added and since they signed a mutual aid agreement with Troy. Commented he does not know whether or not they knew how many calls per year to expect; however they knew what the criteria was to get paid.
7:44:25 PM Callahan Commented no one is making more than 42%; however that is 400 calls. Commented they need to solve the problem.
7:44:43 PM Gulledge Stated he does not disagree, and that Chief is trying to solve it with this recommendation for next year. Stated his only problem is, they don't currently have this rule in place. Commented wherever they cut the number, someone will complain. Stated they all knew the criteria was 15%, and they should not change the rule now, at the end of the year. Commented there are extenuating circumstances to a couple of the people who have not made their quota. Commented his opinion they need to change the rules; however he does not think it should be changed for the current year. Discussion ensued.
7:47:13 PM Garcia Arrived and was seated.
7:49:19 PM Callahan Reiterated the Chief's recommendation is for the future; his recommendation is it is a great idea, and they should implement it now.
7:49:39 PM Kostyshock Commented he agrees with Callahan because it only affects five additional people. Commented one person has more total points than some who are getting paid, but those getting paid made one or two more fire calls. Commented his opinion it is not fair.
7:50:06 PM Callahan Commented he only knows one of the five, so it is not personal. Commented they are over budgeted, so they have enough money. Stated this is his recommendation. Commented they also still have to decide what to pay per call.
7:51:09 PM Limberg Commented when he was a firemen, when they took on men, they knew exactly what their responsibility was. Stated each firemen in the last five years was told the percentages needed to get a check. Stated he agrees with Schmidt that firemen keep track of their calls and know whether or not they will make quota. Stated his opinion they should go by the rules, and they should not be changed this late in the game. Discussion ensued.
7:59:03 PM Gulledge Took a straw poll: Limberg - agreed with Callahan to drop the requirement down to 10%; Schmidt - stay at status quo; Callahan - change to 10%; Kostyshock - change to 10%; Garcia - keep at status quo. Mayor stated they will see what Trustee Bell wants to do and vote on the issue next week.
8:00:18 PM Gulledge Went to next issue, what they will pay per call. Stated they paid $1.65 last year. Referred to the schedule of increases, based on the men that have 15% or better. Stated Chief has no recommendation because he gets paid.
8:00:49 PM Callahan Stated his opinion is, at a minimum, to stay the same, taking into account the price of fuel. Stated even if they were to take it to $1.70, they are under budget.
8:01:21 PM Gulledge Took a straw poll. All were in favor of $1.65. Stated the item will be placed on the agenda for next week.
8:02:48 PM Gulledge Went to Calendar Updates: No Planning Commission meeting this month; no Park Committee meeting this month; Village Hall will be closed December 24th & 25th; Trustees need to RSVP to the Fire Department party; Village Hall is closed January 1st. Mayor commented the media is invited to the Village Christmas Party. Commented they had a successful Santa Fest at the Fire Department. Commented there are no Caucus meetings on December 24th or 31st. Went to Public Input. There was none. Went to To Do List, page 1. Schmidt asked for an update on the Census. Mayor responded he received a call Monday that the unofficial number is 7,280. Commented it is seven more than the preliminary number. Stated he has been contacted by MFT, and they will begin to see increases in January for the month of December. Stated he is attempting to contact the Department of Revenue regarding when they can expect the money from the other categories from the State. Stated the estimated extra amount will be $185,000. Stated by the time of the 2010 Census, they should profit a little less than a half million. Went to page 2. There were no comments. Went to page 3. There were no comments.
8:08:24 PM Gulledge Went to Trustees' Comments.
8:08:42 PM Schmidt Asked if they have had contact with Walgreen's regarding opening.
8:08:47 PM Gulledge Stated they will be opening between January 15th and 30th.
8:08:55 PM Kostyshock Stated he has a contact with a lady selling commercial grade Christmas decorations, for which she paid $5,500. Commented the items are like new, and she is asking $3,500. Stated he would like to purchase them for display in the Plaza. Distributed photos.
8:10:42 PM Limberg Asked from which budget line item they would come. He was told Hotel Motel.
8:10:53 PM Callahan Commented he is unsure whether they have any funds left in MCIB.
8:11:00 PM Gulledge Stated they would not go up this year anyway, so they will try to figure out the funding and put the item on a future agenda.
8:12:17 PM Gulledge Went to Mayor's Comments. He had none. With no further business to come before the meeting, asked for a motion to adjourn. Motion was made by Schmidt and seconded by Limberg. Voting on the motion: Limberg - yes; Schmidt - yes; Callahan - yes; Kostyshock - yes; Garcia - yes. Motion carried.
8:13:17 PM   The meeting ended.

Respectfully submitted,

Thelma Long, Village Clerk

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