McHenry Times

McHenry County Human Resources Committee met Aug. 28.

Here is the minutes provided by the committee:

1. CALL TO ORDER

Meeting called to order at: 8:30 AM by John Jung Jr.

PRESENT: Jung Jr., McCann, Wilbeck (8:33 AM - 11:10 AM), Kurtz, Wilcox (8:30 AM - 11:05 AM), Rein

ABSENT : Kopsell

Also in attendance: Peter Austin, County Administrator; Cheryl Chukwu, Human Resources Director; Mike Iwanicki, Veterans Assistance Commission Superintendent; Joe Kersten, Veterans Assistance Commission Chairman; Erin Gidcumb, Benefits Consultant with Arthur J. Gallagher & Co., and interested public.

2. MINUTES APPROVAL

1. Human Resources Committee - Public Meeting - Jul 24, 2018 8:30 AM

Mr. Wilbeck arrived at 8:33 a.m.

RESULT: ACCEPTED [UNANIMOUS]

MOVER: Michael Rein

SECONDER: Mary McCann

AYES: Jung Jr., McCann, Kurtz, Wilcox, Rein

ABSENT: Wilbeck, Kopsell

3. PUBLIC COMMENT

None.

4. MEMBER COMMENTS

Ms. McCann mentioned the employee forums were recently held, and requested a summary of the comments from the forums. Mr. Austin will share his notes from the forums with her after the meeting.

5. PRESENTATION

None.

6. NEW BUSINESS

1. Resolution Authorizing Compression Adjustments to Eligible Non-Union Employees Who Have Worked Five or More Years Within Their Current Position for McHenry County

Mr. Austin and Ms. Chukwu joined committee members. Ms. Kurtz made a motion, seconded by Ms. McCann, to discuss the proposed resolution.

RESULT: RECOMMENDED WITH CHANGES [UNANIMOUS]

MOVER: Donna Kurtz

SECONDER: Mary McCann

AYES: Jung Jr., McCann, Wilbeck, Kurtz, Wilcox, Rein

ABSENT: Kopsell

Ms. Chukwu mentioned this matter was discussed during the last committee meeting, and there are no additional costs beyond the 2.25% already approved for the annual merit pool increase. Employees who received 5% or more already with the recent class/compensation study would not be eligible for a merit increase. There are approximately 121 employees who will receive an increase to help with some compression issues which were realized as a result of the movement in scales from the class/compensation study.

Staff and committee members discussed the wording in the Now, Therefore paragraph. Ms. McCann made a motion, seconded by Mr. Rein, the amend the Now, Therefore paragraph of the resolution to read "NOW, THEREFORE BE IT RESOLVED, by this County Board of McHenry County, Illinois hereby authorizes the Director of Human Resources to implement appropriate compensation adjustments based on supervisor review for eligible non-union employees, effective January 7, 2018." The motion passed on a voice vote of all ayes (McCann, Wilbeck, Kurtz, Wilcox, Rein and Jung). Absent was Kopsell.

A roll call vote was taken on the original motion as amended.

RESULT: RECOMMENDED [UNANIMOUS]

MOVER: Donna Kurtz

SECONDER: Thomas Wilbeck

AYES: Jung Jr., McCann, Wilbeck, Kurtz, Wilcox, Rein

ABSENT: Kopsell

2. Resolution Authorizing Adjusting the Pay Grades of Veterans Assistance Commission (VAC) Positions - Based on the County-Wide Classification and Compensation System

Mr. Austin, Ms. Chukwu and Mr. Iwanicki joined committee members.

Ms. Chukwu informed members the resolution was created by both Mr. Iwanicki and herself. Veterans Assistance Commission (VAC) completed the Comprehensive Position Questionnaires (CPQs) and they were processed through the County's grading system. The resolution outlines the classifications, new grades, current and new earnings for VAC employees. Ms. Chukwu informed members that VAC employees would be moved to the beginning of their new grade, if their current wage is outside the new range, and if the resolution passes the County Board.

Members questioned if the proposed grades and wage adjustments for VAC employees were retroactive to July 8, 2018 and Ms. Chukwu answered yes. That is the date when other County positions were adjusted with the recent classification/compensation study and went into effect. It was noted the VAC budget currently has funds to absorb the proposed increases for the remainder of FY18.

3. Resolution Authorizing Adjusting the Compensation of Veterans Assistance Commission Positions Based on a Wage and Benefits Study Conducted by the Veterans Assistance Commission (VAC) and an Emergency Appropriation to the Veterans Assistance Commission's FY2019 Budget

Mr. Wilbeck made a motion, seconded by Ms. Kurtz, to discuss the resolution. Messrs. Iwanicki and Kersten joined committee members.

Mr. Iwanicki informed members there are several changes to the resolution included in the meeting packet. He made the changes in the resolution this morning.

The changes include:

- Proposed rate of pay for the Superintendent should be $86,023.00 - VAC - Utilization of Fund Balance should be $29,057.05

- VAC - Regular Salaries should be $24,845.70

- VAC - Social Security/Medicare should be $1,900.70

- VAC - IMRF Share should be $2,310.65

- Total should be $29,057.05

Mr. Iwanicki mentioned the intent is to begin the new rate of pay December 1, 2018 which is when the FY19 budget begins. Mr. Austin stated he did not feel the resolution needed to be a Supermajority Resolution because if the resolution is passed, it would be built into the FY19 budget. Staff will amend the resolution to not be a Supermajority Resolution.

Mr. Rein made a motion, seconded by Mr. Wilbeck, to amend the resolution to change the proposed rate of pay for the Superintendent to $86,023.00, along with changing the utilization of fund balance to $29,057.05. The motion passed on a voice vote of all ayes (McCann, Wilbeck, Kurtz, Wilcox, Rein and Jung). Absent was Kopsell.

Members and staff discussed the request for the large increase in salary for the Superintendent, and other VAC employees noted in the resolution, and it was mentioned the Superintendent's position was just reclassified with the prior resolution approved during the meeting. Ms. Kurtz requested information be provided to members outlining the salaries of all VAC Superintendents in Illinois, and she would like to see this information before she votes on the amended resolution, and several members agreed.

Mr. Kersten stated the Bureau of Labor Statistics did a compensation study, and he had information for VAC salaries for neighboring counties. The VAC Superintendent for Rockford earns $30,000 and Mr. Iwanicki mentioned that Rockford is a different office, and their responsibilities are different than McHenry County's VAC. The Rockford Office does only financial assistance and is more of a part- time office. Lake County's new VAC Superintendent started at approximately $74,000, Will County's VAC Superintendent earns in the high $80s, and Kane County's VAC Superintendent earns in the low $70s. Mr. Iwanicki provided comparisons for VAC offices located in surrounding counties.

Mr. Wilcox requested Mr. Iwanicki obtain comparables for his position, along with Veterans Service Officer II and Admin Specialist I and provide those salaries. For his position, external and internal comparables were requested, along with salaries for Department Heads with more than ten years of service and what grade range they are, and the last hires the County approved over the mid-point for the past five years including equivalents.

Mr. Wilbeck made a motion, seconded by Ms. Kurtz, to table this matter to the next committee meeting.

RESULT: TABLED [UNANIMOUS]

MOVER: Thomas Wilbeck

SECONDER: Donna Kurtz

AYES: Jung Jr., McCann, Wilbeck, Kurtz, Wilcox, Rein

ABSENT: Kopsell

4. 2019 Insurance - Discussion

Mr. Austin, Ms. Chukwu and Ms. Gidcumb joined committee members for discussion on the County's 2019 insurance plans. Ms. Gidcumb works for Arthur J. Gallagher & Co., and she is the County's IPBC (Intergovernmental Personnel Benefit Cooperative) insurance representative.

Ms. Chukwu stated the prescription program is currently through Express Scripts. There have been additional protections put in place since the County joined Express Scripts which include a Smart 90 program. The County has seen costs savings because employees are obtaining prescriptions through mail order and obtaining 90 day supplies.

Ms. Chukwu mentioned there are several options available to the County which will provide a total - 1.5% savings to premium equivalents. If the County joins Express Scripts-Advanced Utilization Management (AUM), and adds prior authorization, step therapy and drug quantity management, the savings to the bottom line premium will be -1.5%. Ms. Gidcumb explained AUM to the members, along with estimated cost savings. After discussion, members agreed to pursue Express Scripts- AUM and if it goes forward, to communicate the changes effectively with employees.

Concerning HMO insurance coverage, Ms. Chukwu explained the County changed from HMO Illinois to HMO Blue Advantage in 2015. Almost all County employees on the County's insurance plans were within a provider which accepted HMO Blue Advantage. She stated Centegra is being purchased by Northwestern effective September 1, 2018, and Northwestern may or may not accept HMO Blue Advantage. Therefore, the County may or may not need to switch back to HMO Illinois. Members were provided with a handout illustrating renewal rates for January 1, 2019 through December 31, 2019, and calendar year rates from July 1, 2018 through June 30, 2019 for various healthcare coverage for both PPO and HMO. Estimated insurance rates for HMO Illinois were provided in the handout. She will keep members updated on this matter.

Chairman Jung left the meeting at 10:20 a.m., and Vice-Chairwoman McCann conducted the meeting.

Ms. Chukwu informed members the High Deductible Health Plan (HDHP) is doing well. Based on what amount was budgeted for this plan, the costs are coming in under the budgeted amount. The cost for the HDHP is decreasing, and Ms. Chukwu questioned members if they wanted to improve the plan a bit. The premiums for the HDHP could be decreased, or the plan could be improved with a plan modification. Ms. Gidcumb provided a handout showing proposed changes to the HDHP which included lowering deductibles, out-of-pocket expenses, co-insurance and prescription costs. The proposed changes would result in an increase of 7.2% with an annualized increase of approximately $121,059.

Chairman Jung returned to the meeting at 10:24 a.m., and conducted the meeting.

Ms. Chukwu explained that non-union employees who enter the organization automatically go onto the HDHP, if they choose to enroll in the County's insurance program. There are employees contemplating moving from the HMO or PPO plans, and go into the HDHP. Mr. Rein noted he does not want to change either the deductible or out-of-pocket coverage because they may change next year and increase, and he agrees with improving the plan. A suggestion was to increase the County's contribution to the Health Savings Account (H.S.A.), or improve the health and wellness (PUSH Program) reimbursements. Ms. Chukwu will research increasing contributions to the H.S.A., and will report back to the committee.

Ms. Chukwu reported that 25% of employees participating in the County's health insurance plan have signed up for the PUSH Program. Once there are at least 50% of the insured employees enrolled in the PUSH Program, there is a possibility that others who are not on the County's health insurance will be able to partake in the PUSH Program.

Concerning dental coverage, Ms. Chukwu informed members the County currently uses BCBS Dental PPO. The County's rates have not increased for employees for this coverage. Members were informed they need to start thinking about lowering premiums, or switching to another dental plan which provides better coverage. An illustration was handed out showing cost comparisons between BCBS Dental PPO and Metlife Dental PPO. Members requested research be conducted on dentists who are in-network for both BCBS Dental and Metlife Dental PPO plans, and which dentists are out- of-network. Additional information will be provided to members in the future.

Ms. Chukwu informed members the County's current H.S.A. and FSA (Flexible Spending Account) administrator is ADP, and ADP has sold out this service to Wage Works, and the service provided by Wage Works is not good. Members were informed the County's H.S.A. and FSA administration will be moved to Discovery Benefits. Discovery Benefits already handle the County's COBRA Insurance, and the County will receive a discount for having two plans administered by them.

Ms. Chukwu mentioned that IMRF has contacted the County stating they have a long-term care product. Staff are obtaining additional information on this product, and will report back to the committee at a later date.

5. FY18-19 Budget Reviews

1. Human Resources

Ms. Chukwu and Mr. Austin joined committee members for presentation of the FY18-19 Human Resources Department budget (contained in the meeting packet). Various department funds were reviewed, along with FY18-19 performance indicators.

Committee members recommended the FY18-19 budget for the Human Resources Department be moved forward through the budget process.

Full comments can be heard on McHenry County's website audio of this meeting.

2. Employee Benefits (not in packet)

Ms. Chukwu informed members the FY18-19 Employee Benefits budget will be brought before the committee at the September 25, 2018 meeting.

7. OLD BUSINESS

None.

8. REPORTS

Ms. Chukwu provided members with the July 2018 turnover report for pay dates July 13 and 27, 2018. The report also included information for the cumulative turnover for 2018. She also provided members with a report showing the positions vacant for more than 90 days (August report). Ms. Chukwu informed members there are 22 vacant positions which have been vacant more than 90 days, and many of those positions will be eliminated in 2019 and removed from the employee roster.

Ms. Chukwu informed members 111 employees attended one of the four Employee Forum sessions recently offered. Employees completed a survey and major points of the survey were provided to members.

Concerning the County's Wellness Program, Ms. Chukwu mentioned supervisors have been asked to allow employees time to attend wellness programs. Employees are requesting healthy food be available, especially at the Administration Building. She mentioned a suicide prevention/intervention training will be provided to supervisors this week, and the training will be offered to employees at a later date. The Wellness Program continues to encourage employees to use the EAP (Employee Assistance Program).

Mr. Wilcox left the meeting at 11:05 a.m. Mr. Wilbeck left the meeting at 11:06 a.m.

9. EXECUTIVE SESSION (AS NECESSARY)

None.

10. ADJOURNMENT

Mr. Rein made a motion, seconded by Ms. Kurtz, to adjourn the meeting at 11:09 a.m. The motion passed with all members present voting aye on a voice vote.

Full Comments on the above agenda items are included in the audio recording of this meeting, which can be found on the McHenry County Meeting Portal.

https://mchenrycountyil.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=4038&Inline=True