Administration Minutes 2012 04-19-12
APPROVED 5/17/12
UNITED CITY OF YORKVILLE
ADMINISTRATION COMMITTEE MEETING
Thursday, April 19, 2012 6:00pm
City Hall Conference Room
COMMITTEE MEMBERS IN ATTENDANCE:
Chairman Rose Spears
Alderman Carlo Colosimo
Alderman George Gilson
Alderman Marty Munns (
arr. 6:32pm)
OTHER CITY OFFICIALS IN ATTENDANCE:
Bart Olson, City Administrator
Bill Powell, City Treasurer
Rob Fredrickson
Megan Ostreko, Human Resources Manager
GUESTS:
Matt Seng, Fox Highlands
Tony Scott, Kendall County Record
Lynn Dubajic, YEDC
Jillian Duchnowski, Yorkville Patch
The meeting was called to order at 6:03pm by Chairman Rose Spears.
Citizen Comments:
None
Minutes for Correction/Approval-
February 16, 2012
Alderman Gilson directed a question to Mr. Olson, asking if he had researched the 238%
over budget mentioned on page 2 under “Page 8”. Mr. Olson will review.
Alderman Colosimo asked Mr. Fredrickson to re-check the accuracy of the Treasurer’s
Report figures.
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On page 3, item #6, 2 paragraph, a correction to read “-city business” was requested
by Treasurer Powell.
The minutes were then approved as amended as read on a voice vote.
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New Business:
1. ADM 2012-15 Monthly Budget Report for February and March 2012
Mr. Olson presented a handout regarding monthly sales tax and explained how the yearly
sales taxes are projected. A monthly rolling average of performance is used and the data
is entered into a graph. He also explained the percentage of sales tax received compared
to the budget. The City received their first month of non-home rule sales tax the
previous week.
The following items on the March report were discussed:
Page 1:
a)Mr. Gilson asked about the Inter-governmental agreement, pull-tab and jar
games. These are State revenues forwarded to the City that average about $2,000 per
year. b) Liquor license revenues are low since they go out in April. Other licenses &
permits are random, i.e., a recent movie permit.
c) It was noted that the Library employee health insurance is paid out of the general
fund and the Library reimburses the City (referring to line 4670 & 4671 of the March
budget report).
Page 2:
a)Mr. Gilson asked what category #4850 includes. It is miscellaneous income
such as credit card rebates, fees for reports, unused flex spending money, jury duty
reimbursements, etc.
b) Administration overtime was shown at 198% and is related to the Ocean Atlantic
litigation case. This will be reimbursed by a third party. There was also general overtime
of about $100-$150 partly due to liquor licenses going out this month.
c) Mr. Gilson asked that professional services be broken out and that details be provided.
Mr. Olson said a detailed expense report will be run for each item and attached to the
report.
d) Professional Services under Administration refers to filing fees. For the Water
Department, it refers to reimbursable lien fees. Some appraisals were done and coded to
Admin. Also included in Administration are minute-taker fees, background checks for
liquor licenses and videographers for City Council meetings.
Page 3:
a)Alderman Gilson asked about the amount of overtime paid for police this
year vs. last year. $82,500 was paid last year and $86,795 so far this year.
b) Professional Services is 80% over budget and includes credit card fees, drug
screenings, database.
c) Mr. Gilson noted that inspections are 30% over. This is for the transition of one Code
Official to another, but should decrease since Code Official Peter Ratos can perform
plumbing inspections.
Page 5
: a) Alderman Colosimo asked how the engineering department costs are
tracking. Mr. Olson said they are high and attributed them to: a drainage study done in
Sunflower, Rt. 47 project transition from in-house to consultant and to Grande Reserve
inspections when developers request infrastructure inspections. Alderman Gilson
questioned if it was an actual cost-savings to use an outside engineer. Mr. Olson replied
that it is and in-house costs would have been greater.
b) Unemployment insurance is 40% over budget due to layoffs
c) Litigation expenses are high due to lawsuits not settled. Only 8 months are
represented on this report.
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Page 6:
The negative fund surplus in the Fox Hill SSA was questioned by Alderman
Gilson, but the Fund Balance is still positive according to Mr. Fredrickson. This occurs
due to the timing of the taxes and costs. Mowing costs are budgeted one year, but
incurred the next year.
Page 7:
The police capital expenses are 67% over budget. This is due to seized vehicles
since not all proceeds go to YPD.
Page 8:
The Raintree payment has not been made yet and Mr. Olson said it will be made
next year.
b) Lennar gave the City $160,000 to complete obligations on their behalf such as trees,
seeding, sidewalks etc.
Page 9:
a)A negative surplus is shown under debt services since the paying agent fee is
included here.
b) Water Fund revenues/investment earnings are at 11%.
Page 10:
Mr. Gilson questioned the 252% over in Water Operations Professional
Services. This is due to water liens, paying agent fees, drug screenings, credit card fees.
Water liens are due to unpaid water bills and a $150 lien fee is added. The water is not
turned on until all costs are paid. Mr. Olson asked Finance Director Fredrickson to do an
analysis of liens filed and collected. Alderman Gilson asked that a sub-category be added
to the budget for this item.
Page 11:
Professional Services in sewer operations are 12% over budget. This is due to
credit card charges, utility bill payment fees etc. Mr. Gilson asked if the City pays the
credit card fees and suggested that the Council should discuss charging a fee for using a
credit card. However, Alderman Munns said no retail businesses charge for this.
Page 12:
Alderman Colosimo questioned the $15,000 rental fee in February. This is
concession fees and represents 5% of gross revenue from Geneva Kayak.
b) Hometown Days was rained out on Saturday so not as much revenue was collected.
Page 13:
Alderman Gilson noted the Professional Services for the Rec department at
40% over budget. It is thought this is due to an increase in contractual employees/more
classes etc.
Page 14:
a)Repair bill of $35,000 was for 3 HVAC unit replacements.
b) Computer expense was for a server purchased for Rec Center.
2. ADM 2012-16 Monthly Treasurer’s Report for February and March 2012
Report for March:
Beginning Balance: $6,172,614
Revenues: $1,140,696
Expenses: $1,480,258
Ending Balance: $9,092,070
This moves to the consent agenda.
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3. ADM 2012-17 Cash Statement for January and February 2012
This report is information only.
4. ADM 2012-19 Countryside Development
a. Discussion on Countryside TIF Fund
b. Status of Attracting a Developer to Countryside
Lowering requirements was discussed and could include zoning, setbacks, type of use,
etc. Ms. Dubajic said the developer, Tri-Land, no longer has control of the property and
it is now owned by Bank of America. She said feedback has been difficult to get from
the bank. Developers are already struggling to maintain vacant buildings and are not
able to take on additional development such as this 17-acre project.
Ms. Dubajic said the lack of outlots that can be built also present a challenge. She said
that developers want outlots to sell to other businesses. Another site challenge is no
direct access to Rt. 47, so IDOT will work with the City when Rt. 47 is improved. She
said the economy is slowly coming back, however, retailers are seeking high-density
areas. Alderman Colosimo asked if the potential developers have any requests that the
city can consider. Lowering expectations is one request she is hearing and any
development would have to be phased.
Chairman Spears asked if a Meijer store would be a possibility. Ms. Dubajic said it
would not fit on that site and they are not looking at this area, nor building stores right
now. She has also spoken with Caputo’s and other family owned grocers, none of whom
are interested at this time and seek second generation space.
Alderman Colosimo suggested that the City should not focus on specific stores, but
instead lower the expectations. Allowing one building to be built might be a catalyst for
future development and also begin to slowly put money back into the TIF to avoid the
City writing a large check.
Infrastructure was also discussed and Alderman Munns asked who would repair the roads
on the site.
No sale price has been shared with the City in spite of Ms. Dubajic’s inquiries.
The bond for this property will end in 2023 and there is a 4-5 year gap between when the
bond obligations end and the TIF ends. Mr. Olson said that during the gap the City will
stop collecting TIF revenue to offset the bond obligations. The City could lengthen the
bond obligations to defer the payment or extend the TIF district. Alderman Gilson
suggested refinancing since interest rates are low. Mr. Olson said the City will have to
speak with the underwriter and Bank of America about that possibility. If the City
refinances, the TIF funds will be lost and nothing can be given to a potential developer.
Alderman Gilson asked Mr. Olson to draft a report that presents all the options. Mr.
Colosimo said the focus should be to work with Bank of America and use the refinancing
as a last resort.
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Mr. Powell stated that with all the vacant properties in Yorkville, this corner has the
advantage of its location. Ms. Dubajic will use this discussion tonight to try and get a
selling price from the bank. Mr. Olson added the City survey data should be available in
a couple weeks to support this cause. He also said he would like potential buyer
expectations in writing and he and Ms. Dubajic will work together on this issue. This
item will come back in May and debt service schedules will be discussed.
5. ADM 2012-20 Fixed Asset Policy
Mr. Fredrickson revised the fixed asset policy as the audit approaches. He revised the
half-year convention depreciation of equipment and streamlined the capital asset
language. The committee approved and it will move to the Council consent agenda.
6. ADM 2012-21 Veolia Contract Extension
Mr. Olson said this is a simple 90-day contract extension that locks in the same rates for
now and he hopes to be able to negotiate lower rates. This moves to the City Council
consent agenda.
7. ADM 2012-22 Resolution Authorizing the Transfer of Motor Fuel Tax Funds to a
New Account with the Illinois Metropolitan Investment Fund (IMET)
Finance Director Fredrickson suggested that these funds be placed into IMET Funds to
earn triple the interest currently offered by banks. The Funds would provide liquidity, are
collateralized and FDIC insured.
Treasurer Powell and the committee verbally approved of this investment. Mr. Powell
commented that when he drafted the investment policy a few years ago, it included a
clause that provided for keeping this money in local banks as long as they did not lose
more than ¼% of interest as compared to the Illinois Funds interest. He recommended
keeping the policy the same, but it will be reviewed at a later date. The committee
members were in favor of earning the best return on the City money. Alderman
Colosimo pointed out that some of the local banks are actually owned by out of state
banks and the money might not be used locally anyway. It was decided to place money
in IMET and this item will move to the Council consent agenda.
8. ADM-23 Fund Balance Policy
In 2009, GASBY, a government accounting standards board, required cities to present
Fund Balances differently. It is broken into 5 categories:
1. Non-spendable Fund Balance
2. Restricted Fund Balance
3. Committed Fund Balance
4. Signed Fund Balance
5. Un-signed / all others
Mr. Fredrickson said the City needs to pass a Fund Balance policy that is GASBY
compliant by end of year. Mr. Olson added that this is good from a budgeting
perspective. Alderman Colosimo was concerned the city might be locked in and not able
to undertake projects.
The committee recommended approval of this policy and it will move forward to the
Council consent agenda.
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9. ADM 2012-24 Copier RFP – Vendor Selection
Finance Director Fredrickson said Konika Minolta is the current vendor for copiers and
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the current lease will expire November 1. RFP’s were recently sent out and 7 vendors
responded. Staff recommended awarding the 3-year contract to the low bidder, McGrath
Office Equipment.
The Committee recommended approval of this company and it will move to the Council
consent agenda.
Old Business
1. ADM 2012- 40 Employee Manual Revision
Ms. Ostreko said the Labor Attorney has reviewed the revised manual. He recommended
that non-DOT employees should not be randomly drug-tested unless their positions are
safety sensitive. Verbage regarding reasonable suspicion remains in the policy and
random drug tests can be conducted in that case. Mr. Olson said that case law supports
the Attorney’s decision. Alderman Munns said many municipalities drug-test all their
employees. Ms. Ostreko said past HR files showed that previous attorneys cited the
employee’s right to privacy. Prior to a committee decision, Alderman Colosimo asked to
review some of the cases cited.
Jury duty leave was also discussed. The Attorney recommended limiting the amount of
time the City would pay employees while on jury duty leave. Ten days was chosen as the
time limit, which is a reduction from the current unlimited amount. The money paid for
jury duty is turned over to the City. Alderman Gilson suggested changing the verbage to
say the employee will be paid up to 10 business days while on jury duty. It was decided
to keep the time unlimited in the event an employee has to serve more than 10 days and
loses pay.
It was proposed that all final paychecks would be withheld until the employee returns all
city belongings, however, this is against the law and the policy will be revised.
Alderman Gilson suggested a change for Section 1.8.4.2 “Supervisory”. He proposed
changing “late times” to “tardiness”. Also 2.9.2.1 & 2.9.2.33 allow shorts to be worn at
work that are no more than 3 inches above the knees. Offensive “ads” on clothing were
reviewed and it was decided that management discretion will be used.
Section 3.6 Overtime Pay was discussed and Alderman Gilson said “that” should be
deleted.
Alderman Munns questioned Section 4.3.1 accumulated sick time of 960 hours (120
days). Ms. Ostreko said an employee must have worked 20 years and be retiring to cash
this sick time. Mr. Munns said sick leave should be used for illness and should not be a
financial benefit. Mr. Olson recommended not changing the current policy and stated it
is also part of 3 union contracts and would only affect a small number of employees. It
could also be an incentive for someone to retire and a lower paid employee could be
hired. Alderman Gilson and other committee members asked to see documentation of
how many employees have been paid out over the last 5 years and their average pay.
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This item will come back next month for discussion.
Additional Business:
1. Alderman Gilson asked how the Council tracks the benefits/effectiveness of YEDC
for the City. Mr. Olson said the financial perspective would be vague and difficult to do
business- by- business. Revenue generated from new companies could also come from
employees buying goods/food/services in the City. Mr. Gilson said the $45,000 fee per
year is still being paid, partly due to member withdrawals. He asked why the City
continues to pay when the benefits are not clear and the fee was originally to assist the
YEDC to start up.
Alderman Colosimo pointed out that $5,000 gives executive board status and a vote and
suggested that the city or its departments should receive 9 votes. Mr. Gilson said that
some communities have brought economic development in-house very successfully. Mr.
Munns said YEDC would have to amend their by-laws to allow another member, but
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only 17 members are allowed to vote. It was noted by Mr. Olson that the City has 1/17
of the votes, but the City is one-quarter of the YEDC budget.
It was suggested that this discussion be presented to the Mayor for consideration.
2. In another matter, Alderman Spears asked about a previous business registration
discussion. Mr. Olson said it was decided to not implement this policy at that time as it
would be too costly to administer vs. benefits received. Ms. Spears said it would be a
way to track the businesses in town and that surrounding communities require licenses at
costs of $50-$100. It was decided that other municipalities would be called informally
about their programs and this will be brought back next month for discussion.
There was no further business and the meeting was adjourned at 8:30pm.
Minutes transcribed by
Marlys Young, Minute Taker
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