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Administration Minutes 2013 03-21-13 APPROVED W/ CORRECTIONS 4/18/13 UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE MEETING Thursday, March 21, 2013 6:00pm City Hall Conference Room Committee Members In Attendance: Chairman Rose Spears Alderman Ken Koch Alderman Marty Munns Alderman Chris Funkhouser (arr. 6:10pm) Other City Officials In Attendance: Bart Olson, City Administrator Rob Fredrickson, Finance Director Megan Ostreko, Human Resources Manager Guests: Joe Liberty, Better Business Planning The meeting was called to order at 6:00pm by Chairman Rose Spears. She asked to move item #8 under New Business to the beginning of the agenda. New Business: (out of order) 8. ADM 2013-16 Benefit Insurance Program Renewal – FY 14 Bart Olson said a 10% increase was budgeted for dental/vision/health and life insurance. Health was slightly higher and the other 3 were below the 10% estimate. Life decreased about 11% and a change of carriers is being recommended. The cost of health insurance will be about $60,000 more than what was budgeted, but due to the HRA setup, overall the City will be within $5,000 of the budget. New this year is the availability of 6 different available plans. Alderman Munns asked why the HMO family premium would be higher than the PPO family premium. Mr. Liberty explained that since Advocate Hospital Group was added as a provider, it increased the price of HMO’s. It was noted that most employees use the PPO plan. The employee contribution will be the same. th This must be approved by April 9. All committee members agreed with the staff recommendations and change of the life insurance carrier. This will move to the City Council under Administration for further discussion. Citizen Comments: None 1 Minutes for Correction/Approval: January 17, 2013 th for A change was noted for page 2, 5 paragraph… it should read …”these items are informational purposes. Minutes were then approved as amended. New Business: 1. ADM 2013-09 Monthly Budget Report for January and February 2013 Mr. Olson pointed out the memo from Intern Jeff Weckbach. Non-home rule sales tax is still on track for about $1.8 million (more than budgeted) and the municipal sales tax decreased from last year due to the F.E. Wheaton closure, but was more than expected. The City now has access to individual business levels, but no new trends have been identified. Mr. Olson said there is a letter in the packet that opposes cuts to the state distributions. He said the County just passed a resolution opposing cuts to the state income tax to municipalities. The Governor is attempting to cap the 2012 municipality level, not allowing for any increases. Alderman Munns asked for the status of “Push for the Path”. Over $100,000 has been raised so far and Mr. Olson said that the committee may apply for a construction grant as well. It was noted the Push for the Path committee has been paying the associated bills. Fiscal year 2013 is on track according to Mr. Olson. 2. ADM 2013-10 Monthly Treasurer’s Reports for January and February 2013 Finance Director Fredrickson reported the following: January February Beginning Fund Balance $8,767,955 $8,767,955 YTD Revenue $18,883,554 $20,523,943 YTD Expenses $15,465,847 $16,904,251 Project End Fund Balance $12,185,662 $12,387,647 3. ADM 2013-11 Cash Statement for December 2012 This is an informational item. 4. ADM 2013-12 Bond Refinancing – Library 2005B and Countryside TIF Administrator Olson said there are 2 different bonds for review and are on the City Council agenda for discussion. Library construction bond : Mr. Olson reported the interest rates are increasing and lower rates can be obtained. A bond underwriter’s agreement needs to be authorized and rd a bond ordinance would have to be approved on April 23. This would be dependent on a positive recommendation of this committee. Speer Financial prepared an analysis and if the bond is refinanced, the new debt service schedule would be $50,000 less per year for the next 10 years with lower residential property tax. Mr. Olson noted that even with this decrease, the debt service will grow each year and the property taxes will rise a few percentage points, all at a slower rate. The City would arrange for all procedural changes and keep the Library informed. The committee approved moving this forward for re-financing. 2 Countryside TIF : The current debt service is $300,000 each year for 10-12 years. The movie theater developer will receive a payout in November. Mr. Olson explained the re- financing process and said that it would allow for cash flow. The bonds will eventually be paid with TIF proceeds and future taxes. The committee considered the re-financing aspect vs. taking no action in the event that development does not occur as hoped or taxes are not generated. After lengthy discussion, the committee unanimously recommended to re-finance. This will be discussed at City Council. 5. ADM 2013-13 Bills for Payment Two months of bill lists were reviewed as follows: Regarding the Speedway gas bill, Alderman Spears asked for a chart of the miles traveled per vehicle. Mr. Olson will forward the reports that are already distributed weekly. A $363 purchase of safety glasses was questioned by Alderman Munns. This is part of a union contract for reimbursement. Boot purchases are also part of union contracts and require supervisor approval. Alderman Funkhouser inquired about rock salt purchase vs. the amount actually being used. About 1200 tons were used this year. It was noted the $13,000 EEI invoice for the bike path had already been paid. Alderman Munns had previously asked for an inventory of small tools. Mr. Olson said Public Works Director Dhuse tracks the number of tools used. Cell phone reimbursement was discussed. Some employees use their private cell phones and the amount is less than if they were on the City plan according to Mr. Olson. Mr. Fredrickson will determine the number of City cell phone as requested by Alderman Munns. Alderman Spears questioned the Shell Oil gas bill. The employees use a calculation card to determine the cheapest price and occasionally use Shell. She also asked about purchases from Johnson Oil—Mr. Olson will research. An Ace Hardware invoice was questioned by Alderman Munns who asked why purchases are made at a business not in the City. No sales taxes are paid there, however, employees are instructed to pay the cheapest price. Android phone application uses are encouraged for comparison-shopping. Ms. Spears asked about the KK COM invoice. This is for Kane Kendall Council of Mayors. 6. ADM 2013-14 Policy for Conducting Business with Companies that Owe the City Money 3 This item will be moved to next month to allow time to consult with the Attorney. 7. ADM 2013-15 Amendment to Intergovernmental Agreement between the City and YBSD Mr. Olson said YBSD still needs to approve this agreement that the City already approved. YBSD presented a slightly different version requesting the City to bill them once per year rather than monthly. Mr. Olson also said it is more cost-effective to have one bill for the citizens rather than two, if YBSD ever considers doing their own billing. Alderman Funkhouser noted that the City has not raised the price for their billing services and said this could be a negotiation tool. Committee members agreed and this item will come back to committee next month. Old Business: - 1. ADM 2012-58 Procedural Ordinance Amendment strd This amendment would provide for C.O.W. meetings on the 1 and 3 Tuesdays of the ndth month and 2 and 4 for City Council meetings. This would result in fewer total meetings per month. Alderman Spears requested a survey of the communities that follow this schedule. This item will come back to committee for review. Additional Business: Alderman Munns commented on an issue with the adjudication process. An arrest had been made with a $500 fine and the adjudicator later returned the money. Mr. Olson will research this matter. Alderman Funkhouser asked for an email with information prior to the next Administration meeting. There was no further business and the meeting was adjourned at 7:25pm. Minutes transcribed by Marlys Young, Minute Taker 4