HomeMy WebLinkAbout09-06-00 Personnel & Finance tintunittet Zoort
Igkroonitel antr tinatut QC4mmitfe
The September 6, 2000 meeting of the Personnel and Finance Committee was called to
order by its Chairperson, Council Member James Aranowski at 3:05 pm in the Council Informal
Meeting room.
Persons in attendance included Council Members Aranowski, Varner, Kelly and Coleman;
City Controller M. Catherine Roemer,Director of Finance Tom Skarbek,Benefits Specialist Susan
Wallace, Gregory S. Downes, Kevin Webber, Kate Incolalela, Shelly Cooper, Bonnie Strycker,
Kathleen J. Davis, Director of Code Enforcement, Gary Libbey, Administrative Services Director,
and Kathleen Cekanski-Farrand, Council Attorney.
Susan Wallace introduced Shelly Cooper to the Committee who will be working with her in
the benefits area.
Council Member Aranowski welcomed members from the Gibson Insurance Group who
were invited to the meeting to review the services provided to the City. The following individuals
were then introduced: Gregory S. Downes, President; Kevin Webber, Manager of Employee
Benefits;and Kate Incolalela,Manager of Loss Control.
Mr. Downes then provided three (3) Consulting Agreements (copies attached) and
reviewed a one page summary sheet of the services provided(copy attached). He noted that there
are two (2) separate contracts in the property/worker's compensation area one for $ 21,600
annually and one for $ 18,000 annually. Mr. Downes noted that their overall goals include
minimizing exposure and minimizing costs to the City of South Bend. Appraisals of all of the
major buildings of the City have been completed with the overall value increasing from $ 100
million to $ 400 million over the past ten (10) years. He noted that Gibson Risk Management
Services,LLC have had a very good on-going relationship with the City going back to 1989.
Mr. Downes then reviewed the overall services provided in the consulting agreement
addressing employee benefits which is for $ $29,328 annually. He noted several areas which
resulting in overall savings to the City as a result of restructuring policies in this area.
Mr. Downes then reviewed the "loss control" fee for services arrangement which his
company has with the City at the rate of$ 90.00 per hour. Through August of 2000, Gibson has
charged $ 31,480 under this arrangement. Some of the services provided under this arrangement
include giving the City advise on budgeting during the months of May through July. He noted that
their recommendations are on the conservative basis and that he believes in"rainy day funds".
Council Member Kelly inquired into the status of the rainy day funds. Cathy Roemer noted
that there are three (3) major items which will impact this account namely the gun show lawsuit,
the Sears lawsuit and the Darrell Gunn lawsuit.
In response to a question from Dr. Varner,it was noted that there is a stop loss for workers
comp claims. Mr. Downes noted that he carefully reviews the"risk v. Reward"when determining
recommendations which may be cost effective. He noted that when reviewing the vehicle fleet that
in the mid 1980's the fully insured premium costs alone were $ 1.5 million dollars. Overall the
City of South Bend has done very well in the self-insurance area.
Mr. Downes then reviewed the Police Department take home car vehicle insurance
program. Cathy Roemer noted that the City charges each police officer$ 260 per year or$ 10 per
Personnel and Finance Committee
September 6, 2000
Page 2
pay check for insurance coverage. She noted that the FOP inquired into a better program and that
the Gibson group was consulted during the last police negotiations. She noted that the City is
providing very competitive rates and that the City is breaking even in this area,but barely.
Dr. Varner noted that a recent §OU#t Otra tttribttltt article noted that the Gunn case
settled for$ 25,000. Cathy Roemer stated that the two (2) individuals hurt in the Gunn case have
not yet settled. Dr. Varner inquired whether the City contacted the newspaper to advise them that
their article was incorrect and was advised that no formal notification was made to them.
Cathy Roemer also noted that the gun show case has resulted in payments of$ 108,000 for
attorney fees and an additional $ 300,000 settlement for lost revenue. She noted that the City is
still negotiating with the Sears family.
Council Member Aranowski inquired whether the Gibson Group would be available as a
resource for the upcoming police negotiations in 2001, noting that insurance becomes a bigger
issue each negotiations. Mr. Downes stated that he would be willing to bring in his entire team if
necessary upon request.
The Council Attorney asked if the City's policy of charging police officers is the norm for
other second class cities in Indiana who have police take-home vehicle programs. Mr. Downes
stated that he did not know and speculated that many third-class cities are uninsured in this area.
The Council Attorney inquired whether the Gibson Group could have information
on insurance coverage for take home police vehicle fleets in other second class
cities available for next year's police negotiations. Council Member Aranowski
recommended that this information be gathered so that the City will be ready by
the beginning of the year. Mr. Gibson stated that he would provide whatever services he was
directed to provide by the City.
Cathy Roemer then provided two (2) handouts (copies attached) the first being the
"Workers Compensation Program Analysis Second Quarter Review 1-100 to 6-30-00" and the
"Self-Insurance Paid Liability Claims 2nd Quarter" which had been previously requested by the
Committee.
In response to a question from Council Member Aranowski, Mr. Downes stated that he
would recommend increased contact with department heads with regard to losses over the next
quarter. He stressed that department heads need to be more involved.
Dr. Varner inquired about the police department civilian injuries listed as 8
on the pie chart on page 4. Cathy Roemer noted that there have been two (2)
claims in this area. Mr. Gibson stated that he would get back to the Committee
on this question noting the classification or figures may be incorrect.
Council Member Aranowski that all members of the Gibson Group for coming to the
Committee meeting and providing an overview of their services.
YOUTH SERVICE BUREAU (FUND # 101-0407):
Bonnie Strycker,Director of the Youth Service Bureau then provided multiple handouts to
September 6, 2000
Page 3
the Committee providing an historical review of the Youth Service Bureau. She noted that the
basic programs include: (CASA) Court Appointed Special Advocate Program which
provides a voice for your involved in legal proceedings; Safe Station where a safe and secure
place is provided while attempting to reunite children with their families; Young Moms' Self-
Sufficient Program which is aimed at reducing abuse and neglect; Youth as Resources
which is aimed at bringing youth and adults together for positive changes; and Youth
Development Services which involves providing counseling and social development for
children in schools and community organizations.
Ms. Strycker noted that base-line data is being developed which will be outcome oriented
for each of the programs. She noted that the$ 65,000 requested budget amount is the same as this
years amount. Youth Services Bureau has become a mini-hot line since it provides 24-hour
services. They have applied for state funds to include fathers in many of the services for self-
sufficiency programs but were denied by the state. They plan to reapply next year. She then
reviewed the one-page budget summary (copy attached). She noted that each Council Member
should receive their newsletter since she want the Youth Service Bureau to be pro-active in all of its
services.
Council Member Kelly noted that Mishawaka had 3,549 resident clients whereas South
Bend had 782 last year. Ms. Strycker stated that that is a result of Mishawaka utilizing the Youth
Development Services program in their school system along with the PHM school system,
whereas the South Bend Community School system does not. In response to a question from Dr.
Varner, Ms. Strycker noted that Mishawaka contributes $7,500 annually. Ms. Strycker also noted
that they do not receive any CDBG funds.
Ms. Strycker highlighted some of the organizational goals for 2000-2001 (copies attached).
Council Member Aranowski thanked Ms. Strycker for her detailed presentation and written
materials.
NEIGHBORHOOD CODE ENFORCEMENT (GENERAL FUND # 101-1201)
2000 Projected Expenditures: $ 1,050.731 2001 Projected Expenditures: $ 1,145,436
Increase in Expenditures:$131,234= 12.9%
2000 Projected Revenue: $418,000 2001 Projected Revenue: 375,960
Kathy Davis, Director and Gary Libbey Administrative Services Director then made their
presentation. Ms. Davis noted that the City has received agreement with St. Joseph County with
regard to the cleaning of county-owned lots. She provided a two-page handout (copy attached).
She noted that the City will contract out for these services so that City crews are freed-up to
provide services elsewhere. The City has cut over 100 lots to date of the 125 lots in the program.
The Council Attorney inquired whether a formal contract would be entered
into for the cleaning of County-owned lots. Ms. Davis said there would be a
written contract and she agreed to provide a copy of it to the Council when it is
ready.
Dr. Varner asked if the City can contract out for County-owned lots, why does it not do
Personnel and Finance Committee
September 6, 2000
Page 4
this for City-owned lots. It was noted that the minimum charge to clean a lot is $ 116 plus
administration expenses. Ms. Davis noted that Larry Magliozzi is currently working on a program
to divest the City of as many city lots as possible which total around 300. Ms. Davis stated
that she would keep the Council updated on further updates on the city-owned
lots. The Council Attorney and Dr. Varner voiced concern about the former fire station on
Lincoln Way East (south side) with regard to weeds. Ms. Davis stated she would follow
up on the former Lincoln Way East fire station property being cut on a regular
basis, noting that she believed it was under the control of the Park Department.
In response to a question from Dr. Varner, it was noted that the Hearing Officer is required
to order an individual clean-up each time and that a new citation must be issued each time and a
new file and new letters sent on the same property. Trash, garage and grass all go to the Hearing
Officer. There is a 75%compliance rate as a result of letters being sent.
Dr. Varner inquired about the property located at York and Byron which is
in the hands of a mortgage company. Ms. Davis noted that most companies are
non-responsive to requests for maintaining the property, noting that more and
more properties are controlled by out-of-state companies who obtain them through
tax sales. Dr. Varner suggested that further discussion on this topic take place.
Dr. Varner inquired about the lien status of lots cleaned by the City. Ms. Dempsey stated
that John Lentz has informed her that the County's computers are not capable of placing charges
for lawn mowing/cleanup on the tax bills. The Committee requested an update on this topic.
Ms. Dempsey noted that the City utilizes Small Claims Court and a collection agency to
pursue collection for charges provided by the City. She then provided a one-page handout on
collections(copy attached).
WEIGHTS & MEASURES (FUND # 101-1202):
2000 Total Projected Expenditure: $40,796 2001 Total Projected Expenditure: $46.167
2.5 % Increase
Ms. Davis noted that approximately five (5) years ago the city and county weights and
measures operations were consolidated. There is now a contractual agreement in place and the city
receives payment once per year. Mishawaka has been asked to join but has declined. Ms. Davis
noted that state law would need to be changed in order for fees to be charged for these services.
CODE HEARING OFFICER (FUND # 101-1203):
2000 Total Projected Expenditure: $50,896 2001 Total Projected Expenditure: $52,677
3.5%Increase
Ms. Davis noted that this operation is now done on a contractual basis. It was changed in
1999 when it was determined that the Code Hearing Officer who had been receiving all City-paid
benefits for several years was not entitled to such benefits. Council Member Aranowski noted that
IRS rulings have gotten more stringent in this area recently.
Personnel and Finance Committee
September 6, 2000
Page 5
UNSAFE BUILDING (FUND # 101-1205):
2000 Total Projected Expenditure: $195,000 2001 Total Projected Expenditure: $ 187,104
2.5 %
Council Member 4.KaufAvt .cafuLtEtgri..o.li£-VglAvpue 6,'e„vibflm P,1 icij 4,d.kayq Pn
requested. He noted that such a list would assist the Council and organizations in the Districts and
the neighborhood groups. Ms. Davis stated that she would provide a written list showing all such
properties for the current calendar year.
JUNK VEHICLES (FUND # 101-1204):
2000 Total Projected Expenditure: $48,583 2001 Total Projected Expenditure: $55.510
Expenditure Increase:$1,958= 3.7
Ms. Davis noted that 701 vehicles were towed in 1999. 70 vehicles alone were towed in
August 2000. Only 25 vehicles were claimed last year. In response to a question from Council
Member Coleman, Ms. Davis noted that few vehicles are claimed and fewer are repeat violators.
In 2000 three(3) prostitution towings have taken place.
ANIMAL CONTROL (FUND # 101-1207):
2000 Total Projected Expenditure: $260,674 2001 Total Projected Expenditure: $300,993
Expenditure Increase:$36,485= 13.8%
Gary Libbey reviewed this budget request. He noted that there were 1,100 adoptions in
1999. He thanked Dr. Varner for permitting the City to utilized his dental office parking lot for an
adoption day. Mr. Libbey noted that 65 % of all animals never leave the facility. They are
pursuing grants for neutering/spaying services. They wish to be more pro-active in this area.
Currently the City pays $ 45 to local vets for neutering/spaying services for each such
service. Adoption fees are $60 for a dog and $30 for a cat which includes micro-chipping. New
shots will soon be required which will raised the fees by$ 15 for dogs and$7 for cats.
Council Member Aranowski complimented Mr. Libbey and his staff for the overall animal
control operation. He noted that the facility is very clean.
Council Member Aranowski inquired about cages and traps. Mr. Libbey noted that they
used to rent out such devices but lost too much money. The City was also informed by DNR that
they cannot trap raccoons and other wild life unless there is a specific loss to personal property.
He noted that the operation is 7 days a week.
Council Member Aranowski thanked the Neighborhood Code Enforcement representatives
for their presentation.
Personnel and Finance Committee
September 6, 2000
Page 6
Council Member Aranowski reminded the Committee that the next meeting
of the Personnel and Finance Committee on the budget will be next Thursday,
September 14th at 3:00 p.m. as previously discussed by the Committee.
There being no further business to come before the Committee, Council Member
Aranowski adjourned the meeting at 4:50 p.m.
Respectfully submitted,
Council Member James Aranowski, Chairperson
Personnel and Finance Committee
KCF:kmf
Attachments