Finance Committee

Village of Niles Finance Committee Meeting Council Chambers August 16, 2017 8:00 a.m. Call To Order In the absence of Chairman LoVerde, motion was made and all concurred that Bob Callero would be Chairman of the meeting. The meeting was called to order at 8:00 a.m. Roll Call Assistant Finance Director Nannini called the roll for Committee members: Committee Members Present: Bob Callero, John Johann, Paul Nielsen and Al Weel Committee Members Absent: Chairman Joe LoVerde Village Staff Present: Finance Director Jeff Martynowicz, Village Manager Steve Vinezeano, Assistant Finance Director Laurie Nannini, Deputy Village Manager Hadley Skeffington-Vos, HR Specialist Katy Darr, Assistant to the Village Manager Kathy Thake, IT Director Bill Shaw and IT Systems Engineer Steve Cusick. Also Present: Mayor Andrew Przybylo and Trustees George D. Alpogianis and Dean Strzelecki Old Business None Approval of Minutes The regular minutes from the June 21, 2017 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval The approval of the Accounts Payable registers for 2017-6/16, 6/23, 6/30, 7/7, 7/14, 7/21 and 7/28 were up for approval, motion made and all concurred. Old Business Resolution Authorizing an RFP and a Contractual Agreement with Tyler Technologies to Provide the Village with Financial, Human Resources, Payroll and Timekeeping Software Trustee George D. Alpogianis, Chairman of the General Government/IT Committee, stated that at the May Finance Committee meeting he requested that the Ceridian HR/Payroll software agenda item be tabled. Finance and IT staff recently attended training for the new Tyler Technologies Community Development software and became aware of Tyler’s HR/Payroll software component, Munis, that should be reviewed before any decisions are made. After extensive review by staff from Finance, Human Resources, General Government, Legal and IT, with additional review by independent consultants, it was determined that Tyler/Munis is a complete software solution that will provide much needed upgraded software service for both Finance and HR needs. At the August 9, 2017 General Government/IT Committee meeting the Committee approved the selection of Tyler/Munis and recommended it be reviewed by the Finance Committee. Trustee Alpogianis stated that purchase of this software would result in a savings of approximately $400,000. Finance Director Martynowicz explained that the current financial software package is 27 years old and has many deficiencies. He believes a fully integrated system will provide one central relational database for all end users to use, permission driven data access and entry, system-wide access through all departments, robust and enhanced reporting capability. Staff is recommending Tyler/Munis as the new  August 16, 2017 Finance Committee Enterprise Resource Software provider to perform HR, Time and Attendance, General Ledger, Purchasing, Accounts Payable, Accounts Receivable and Budgeting. Everything will be paperless and approvals will be made online with enhanced security set-up and 24/7 on-demand access. Tyler/Munis will also integrate with Tyler/Energov, the current Community Development software. Once all modules are implemented, the Village will have full ability to communicate all of its transactions with one software program. Deputy Village Manager Hadley Skeffington-Vos reported that the Human Resources Department currently has no software and explained the benefits of this software to HR and for Time and Attendance and Payroll software. She also reviewed the spreadsheet with ratings for each of the software products reviewed. For the record, the team reviewing the software providers were the General Government/IT Committee, Village Manager, Deputy Village Manager, Finance Director, Assistant Finance Director, IT Director, Technical Support Analyst, Systems Engineer, HR Specialist and former HR Director. Gary Dube from Tyler Technologies was present at the meeting. Finance Director Martynowicz reported on the timeline of the software services implementation and explained why this has been budgeted over a two year period. Bill Shaw confirmed that they are very comfortable that they will not exceed the contingency number. Responding to questions, Bill Shaw stated that the IT Department is committed to putting in the time to get this project done, is satisfied with the support and training Tyler is providing and, most importantly, is confident and comfortable that our information will be safe and secure as the Village is hosting the site. A team from Niles went to the Village of Woodridge to see how the software works and was satisfied with the results. Mayor Przybylo commented that the independent consultants/experts will be using their expertise and be available to help HR staff implement the new software modules. Motion was made, and seconded, to recommend to the Village Board that they accept Tyler Technologies/Munis as the new Enterprise Resource Software provider to perform Payroll, HR, Time and Attendance, General Ledger, Purchasing, Accounts Payable, Accounts Receivable and Budgeting. On roll call, all concurred. New Business Water Account Appeal for 8203 Osceola Assistant Finance Director Nannini stated that Mr. Reid of 8203 Osceola applied for water leak relief. Per Village procedures, residents may only apply for leak relief one time in a three year period and Mr. Reid received relief on April 22, 2016 in the amount of $326.20. Finance Director Jeff Martynowicz stated that there is a maximum of $500 in relief. Ms. Nannini introduced Mr. Reid who explained his circumstances to the Committee and stated that he was unaware of two leaky toilets in his home since January or February and was out of town for some of the time. Once he realized this, the toilets were fixed. He has made some payment, but believes he currently owes the Village approximately $882. Motion was made by Mr. Johann, and seconded, that the Village to grant relief up to 50 percent of the amount that was overcharged due to the excess charge based on the leak, but not to exceed $500, irrespective of the last credit received in 2016. Mr. Nielsen recommended that the Village only pay the difference between the $326.20 already paid and the $500 limit. Chairman Callero clarified the first motion by Mr. Johann stating that the calculations will have to be what the overcharge is; looking at what the normal use was, and take one-half of that up to the maximum of $500. On roll call: Johann-yes, Callero-yes, Weel-yes, Nielsen-no. The motion passed. 2  August 16, 2017 Finance Committee Resolution Authorizing an RFP and a Contractual Agreement with Matrix Consulting Group for an Organizational Analysis and Staffing Study of the Finance Department Deputy Village Manager Skeffington-Vos stated that an RFP went out for a staffing/operations study for the Finance Department and eight proposals were received. At the request of Chairman LoVerde, the top two companies, Baecore Group and Matrix Consulting Group, will make their presentations to the Finance Committee. Mary Smith, Managing Partner of Baecore Group, presented their proposal stating that Baecore Group is a boutique public sector consulting firm that has been providing consulting services, such as municipal organization assessments, process review and design to municipalities in the Chicagoland area for over 15 years. She reviewed their qualifications, experience and holistic approach for their client’s projects. Their assessment would include an in-depth review of the current Finance Department structure and will develop and deliver detailed recommendations for process changes, utilization of existing technology to increase automation, realignment of staff responsibilities for efficiency improvements, as well as the consideration of citizen needs and expectations and customer service. Ms. Smith responded to questions from the Committee. For the second presentation, Deputy Village Manager Skeffington-Vos introduced Alan Pennington from Matrix Consulting Group. Mr. Pennington stated that they have worked with Niles previously on staffing studies for Public Works and Community Development. The Matrix Group was formed in 2002 and 95% of their clients are local governments. He is a vice president with the firm and would be both the project manager and lead analyst of the team. The first phase of the project is very intensive onsite, collecting data, talking to people and developing a profile so that when recommendations are made they can demonstrate what has changed, what the impact would be and what modifications need to be made and what their benefits are. Matrix would develop an understanding of the Village’s Finance Department and collect the data necessary for the study. The second phase is called the best practices assessments where they would benchmark the Finance Department against the best management practices and comparable communities. The third phase would be evaluating the staffing, work practices, and service levels and develop staffing allocations and a recommended organizational structure for the department. The last phase is to prepare a draft and final, detailed report and provide detailed plans for implementing identified improvement opportunities. The study would be conducted over 12 weeks. Mr. Pennington responded to questions from the Committee. The Committee questioned if this was the best time to be doing a Finance Department Study since new software has just been approved. The Village Manager, IT Director and Finance Director all responded to the Committee’s concerns. Motion was made, and seconded to recommend the Matrix Consulting Group to the Board for approval. Fund Balance Policy Finance Director Martynowicz stated that this is a continuation of discussion regarding a Fund Balance Policy presented to the Committee in May with changes made in June based on recommendations by the Committee. A draft policy with minor changes to the original policy was presented to the Committee, along with a history of General Fund reserves. Mr. Johann thanked Bob Callero and the Finance Director for all their work on this policy. He had questions regarding the actual audited expenditures for the General Fund Balance, General Fund Unassigned Balance and General Fund Unassigned Balance less Road Projects and what our benchmark is. Finance Director Martynowicz and Village Manager Vinezeano 3  August 16, 2017 Finance Committee clarified that after this audit, they will ask for the amount reserved for the road projects to be deleted and discuss how this amount for road projects was determined. Finance Director Martynowicz stated that this is the first in a series of policies the Finance Committee will be asked to review. Future policies will include revenue, expenditure and debt policies and Finance would like to implement all these policies in the budget under a separate tab called “Financial Policies” for greater transparency of how the budget is developed. Motion was made, and seconded, to recommend approval of the Fund Balance Policy to the Village Board. On roll call, all concurred. Quarterly Reports Assistant Finance Director Nannini updated the Committee on the Finance Department’s list of delinquent water accounts, payment plans, leak adjustments and the Illinois Debt Recovery Program. These programs, created in conjunction with the Finance Committee, have been very successful in reducing the Village’s outstanding debt. Other Business None Public Comment None Adjournment: Motion to adjourn was made and all concurred at 10:08 a.m. Prepared by Village Clerk Marlene J. Victorine on September 7, 2017. 4