LEGISLATIVE, FINANCE, AND ADMINISTRATION COMMITTEE
The Legislative, Finance, and Administration Committee meeting was held on October 27, 2008 at 5:30 p.m. with Councilman Salters presiding in the absence of Chairman Slavin. Members present were Mr. McGlumphy and Mr. Shevock. Dr. Jones was absent. Other members of Council present were Mr. McGiffin, Mrs. Williams, Mr. Ruane, and Council President Hogan.
AGENDA ADDITIONS/DELETIONS
Mr. DePrima requested that item #3 - City of Dover Identity Theft Prevention Policy be moved to be considered following item #4 - Non-Bargaining Benefit Parity.
Mr. McGlumphy moved for approval of the agenda, as amended, seconded by Mr. Shevock and unanimously carried.
November Health Insurance Premium Refund
Mrs. Mitchell, Controller/Treasurer, advised members that the City of Dover has received notice from the State of Delaware that the health insurance premiums for November will be waived due to their funding levels in the Self-Insured Health Plan. However, she stated that the City will still be required to pay the 5% Risk Premium and a 7% Administration fee (12% of our current premiums). As a result, staff submitted the following actions for consideration:
•Waive the employee payroll deduction for the month of November.
•Charge each department for the budgeted expense for November Health Insurance benefit as if the City’s contribution was paid.
•Reserve the savings realized to address any potential budget constraints in Fiscal Year 2009 in each fund applicable.
Staff recommended waiving the employee payroll deduction for the month of November and reserving approximately $375,000 of City savings realized from the November Health Insurance Moratorium to address potential budget constraints in Fiscal Year 2009.
Responding to Mr. McGlumphy regarding the types of budget constraints, Mrs. Mitchell stated that anticipated revenues will be less than originally budgeted. She noted that the Quarterly Revenue Report is scheduled to be reviewed by City Council during their meeting later in the evening. She explained that the savings would be included in the budget balance reserve accounts for each fund (Electric, Water/Wastewater, and General).
Mr. McGlumphy moved to recommend approval of staff’s recommendation to waive the employee payroll deduction for the month of November and reserve an amount of approximately $375,000 of City savings realized from the November Health Insurance Moratorium to address potential budget constraints in Fiscal Year 2009. The motion was seconded by Mr. Shevock and unanimously carried.
Reverted Funds from Title V Grant - Office of Juvenile Justice and Delinquency Prevention
Mrs. Townshend, Director of Planning and Inspections, reminded members that last year, the City of Dover, in coordination with Aid in Dover, received a grant, in the amount of $53,000, from the Criminal Justice Council for the Girls Circle of Dover Program, which provides youth programming for at-risk girls. Since the program got a late start and they were not able to provide services until late in the school year, $19,819 in funding reverted to the Criminal Justice Council. Aid in Dover recognized a need to provide similar programming for at-risk boys; therefore, they proposed to utilize the reverted funds for a Boys Council of Dover Program, which is structured similar to the Girls Circle Program, in order to provide programming for at-risk boys. Staff provided members with the sub-grant application.
Staff recommended that the committee forward a recommendation of approval to City Council regarding the application for the reverted funds related to this grant in partnership with Aid in Dover, Inc.
Mr. Ruane suggested that the program needs a better, more realistic, means of measuring its effectiveness by referencing the particular participants rather than an overall decrease in the statistics that are not correlated by the individuals.
Although Mrs. Williams concurred with Mr. Ruane, she advised members that the performance and impact objectives are controlled by the Criminal Justice Council. Mr. Ruane suggested that the applicants continue to discuss the issue of including a more realistic measurement for the program.
Mr. McGlumphy moved to recommend approval of the application for the reverted funds related to the Title V Grant - Office of Juvenile Justice and Delinquency Prevention - in partnership with Aid in Dover, Inc. (Attachment #1) for the Boy’s Council of Dover Program. The motion was seconded by Mr. Shevock and unanimously carried.
Non-Bargaining Benefit Parity
Mr. DePrima, City Manager, advised members that staff has been developing recommendations for benefit parity for non-bargaining employees. He explained that some of the suggested changes are related benefits provided to bargaining unions which are not provided to non-bargaining employees. Members were provided a summary of these recommendations, which included the approval to continue applying certain current practices that are not documented in the personnel policy, the enhancement of two (2) current benefits, and implementation of three (3) new benefits. In addition, staff provided the current practices and recommended changes, which were reviewed by Mr. DePrima in detail.
Staff recommended that all benefits become effective January 1, 2009, unless otherwise indicated, and that the City of Dover Personnel Policy be updated to reflect the recommendations of City Council and submitted for final approval.
Mr. DePrima stated that, based on the committee’s recommendations and Council’s approval, the City of Dover Personnel Policy would be updated to reflect the recommendations by City Council and submitted to them for final approval.
Mr. McGlumphy noted that, based on the current practices, non-bargaining employees are receiving different benefits or perks based on the department and union for which they work. It was his opinion that this has fostered more inequities and animosity amongst employees.
Mr. Ruane noted the probability of costs associated with the proposed benefits and suggested that the committee defer forwarding any recommendation to Council until staff has provided members with such relative information.
Concurring with Mr. Ruane, Mr. McGlumphy advised members of his request for staff to provide a comparison chart of the different unions and other municipalities and suggested that the cost factors could be included in the information.
Referring to the memorandum provided to members, Police Chief Horvath explained his opinion regarding the Police Chief and Deputy Police Chief positions and requested that these positions be provided the same treatment as the FOP employees. He stated that the proposal submitted by staff would reduce benefits for the Chief and Deputy Chief since they are not included in the FOP Union.
At the request of Mr. McGlumphy, Mr. DePrima stated that staff would research the Long-Term Disability Insurance to determine how this benefit was established.
In reference to the description for the Education Incentive Program, Mr. DePrima advised members that those police officers that have not earned their Bachelor’s degree but have earned 60-90 days of credit would receive the Associate reward in the amount of $725.
Mr. DePrima indicated that the Professional Engineer Licensor Incentive Program is not a parity issue - it is a new bonus proposed to offer any of the City’s engineers who earn or have a professional engineer license. He explained the value of obtaining and maintaining professional engineers in the City’s employment.
Mr. Ruane relayed his concern with providing such an incentive program. It was his feeling that it does not provide parity for all employees, explaining that there are other certificates obtained by employees that would not be recognized.
Mr. McGlumphy requested that staff provide the percentage benefit for employees, noting that, in addition to salaries, benefits provided to employees should also be considered.
Mr. McGlumphy moved to table the Benefit Parity for Non-Bargaining Employees until a cost analysis and further information regarding the questions of members are provided. The motion was seconded by Mr. Shevock and unanimously carried.
Mr. McGlumphy noted that the recommended action was for the benefits to become effective January 1, 2009 and that the Human Resources Department is in the process of completing the comparatives he had previously requested. It was his opinion that the comparative information should be provided when this issue is brought back to members for further consideration.
Due to time constraints, it was suggested that the remainder of the agenda items, #4 - City of Dover Identity Theft Prevention Policy and #5 - Charter Review-Amended Scope, be deferred until the next meeting.
Mr. McGlumphy moved for adjournment, seconded by Mr. Shevock and unanimously carried.
Meeting Adjourned at 7:11 P.M.
Respectfully submitted,
Reuben Salters
Acting Chairman
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Attachment
Attachment #1 - Title V Grant Application - Office of Juvenile Justice and Delinquency Prevention in Partnership with Aid in Dover, Inc. - Boys Council of Dover