It was no secret that Sauk Village had been working on cost
cutting initiatives given the Village’s current finances, along with decreased
revenues from the State of Illinois and the potential 50% loss of LGDF that
Governor Rauner is proposing.
Earlier this year, the Village began negotiations with the FOP
and the Village’s dispatch bargaining unit. A full cost analysis of the
Village’s dispatch center was completed and the yearly costs are as follows:
·
Labor- Wages $298,000 Overtime $54,000
·
Health insurance- $100,00
·
Social Security/IMRF- $76,000
·
Workers compensation
coverage- $9,244
·
Consultant fees- Attorney fees (negotiations, grievances, litigation) $7,500
·
Uniform allowance- $3,150
Total projected yearly costs to run the dispatch center
this year would have exceeded $600,000.00.
This Cost Did Not Account For:
Overhead/Equipment Upgrade-
$500,000 (federal mandate). Equipment is near the end of its useful life-
replacement is $1.5 - $2 million.
Future increases-
wages, insurance etc. 2%-7% annually ($10,500 to $37,000 annual increase)
Their costs were discussed with the Village board.
The Village board requested comparison costs of contracting out the Village’s dispatch
services. When the board reviewed the costs, the entire board, all agreed
contracting out was the direction the Village had to go. By contracting out we
eliminate wages, overtime, healthcare, and retirement contributions the Village
currently makes. This means an immediate savings of approximately $300,000 per
year.
Because the village was in the midst of negotiations I or
the board could not speak publicly about possibly outsourcing our dispatch
services. Moreover, we had to give the union and its members an
opportunity to meet or beat the savings the Village would see if it privatized
its dispatch center. After meeting with the union, the union was unable
to meet or beat the savings the Village presented to them.
I want to be clear, on behalf of myself and the board,
this move is no way a reflection on the work performed by our dispatchers or
them individually. This was purely a financial decision and had
nothing to do with our dispatchers’ abilities or work performed over the years.
In fact, we have advised the FOP we will do whatever we can in finding them
work with other dispatch centers.
With the advancement of technology many communities are
moving in this direction. No longer do municipalities’ need its own
dispatch center or have a dispatch center within its municipal
boundaries. Dispatch centers are essentially high tech call centers that
can be located anywhere without a reduction in response time to those in need.
Again this is purely a financial decision. This will save
the Village approximately $300,000 a year, over $1.5 million in 5 years, and $3
million over ten years.
In closing, Sauk Village had five full time dispatchers whose
union contact was not renewed, with a budget that was projected to exceed
$600,000.00 a year. Two out of the five dispatchers live in Indiana and one
lived in Sauk Village. All full and part timers were offered employment with
the new Joint Dispatch Center and all refused.
Mayor David A. Hanks
Sauk Village, Illinois