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Administration Committee Minutes 2021 11-17-21APPROVED 12/17/21 Page 1 of 4 UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE MEETING Wednesday, November 17, 2021 6:00pm City Council Chambers 800 Game Farm Rd., Yorkville, IL Note: This meeting was held in accordance with Public Act 101-0640 and Gubernatorial Disaster Proclamation issued by Governor Pritzker pursuant to the powers vested in the Governor under the Illinois Emergency Management Agency Act. This allows remote attendance for this meeting to encourage social distancing due to the ongoing Covid-19 pandemic. All attendees were in person unless otherwise noted. Committee Members In Attendance: Vice-Chairman Chris Funkhouser Alderman Seaver Tarulis Alderman Dan Transier Other City Officials In Attendance: City Administrator Bart Olson Assistant City Administrator Erin Willrett Others in Attendance: Mike Alesia, Insurance Broker/Alliant Insurance Services (via Zoom) The meeting was called to order at 6:00pm by Vice-Chairman Chris Funkhouser and he announced those who were present. He asked to amend the agenda and move item #6 forward. Citizen Comments: None Minutes for Correction/Approval: October 20, 2021 The minutes were approved as presented. New Business: 6. ADM 2021-48 Liability Insurance Renewal (out of sequence) Mr. Olson explained the insurance renewal and said Finance Director Fredrickson had provided a memo which gives an overview of the quote. He said each year the city determines if they should remain with the existing carrier or explore other companies. In the past year, the city has had a couple claims, but they will roll off next year. Mr. Alesia recommended that the city not go out to full bid this year based on those claims and market instability. Due to the large claim, other companies would decline coverage this year. Mr. Alesia said the market is not optimal this year and the current company is Page 2 of 4 basically holding the same costs. Glatfelter has been the city's property/casualty insurance carrier for about the last 10 years. He said $1 million is carried for cyber liability protection. He said cyber protection is difficult now due to many breaches. He said clients must have 4 protocols against hacking in order for him to obtain quotes for coverage. They are: encryption, MFA (multi factor authenticating), vulnerability testing and employee training. Three of those are in process and will be completed by January. When complete, the quote will be revisited and prices will likely double. Mr. Alesia added that Yorkville is a model community with minimal losses. He said the overall price increases this year are a little over 8%, below the normal 10-20% in other towns. Mr. Olson explained the MFA further and said it is a standard requirement for coverage. He also informed the committee about the street sweeper that caught fire, the salvage value and replacement cost. Mr. Alesia was instrumental in advocating the claim. This matter will come before the Administration Committee soon to consider a new sweeper purchase. The street sweeper component would be removed on the old machine so it can be used as a truck. Mr. Funkhouser noted that KenCom is moving through the cyber issues as well and asked the city to insure they stay current with this subject. Alderman Transier asked if there is a plan for budgeting the increase or if it will be dealt with as it comes up. Mr. Olson said the increase will be easily absorbed in the budget. This moves forward to the City Council Administration agenda. 1. ADM 2021-43 Budget Report for October 2021 Mr. Olson said the sales tax performance is 10-30% above the 2020 figures which were also above normal. He said in December there could be discussion on performance estimates and Alderman Funkhouser added he would like a conversation on capital. 2. ADM 2021-44 Treasurer's Report for October 2021 Mr. Olson referred to the reports which will move forward to the consent agenda. Beginning Fund Balance: $14,992,729 YTD Revenue: $32,670,299 YTD Expenses $16,642,167 Projected Ending Fund Balance: $31,020,861 3. ADM 2021-45 Cash Statement for August 2021 These reports are for information. 4. ADM 2021-46 Website Report for October 2021 The high numbers on the website are decreasing at year's end, however, there are several views on the website and social media due to current and upcoming events. Page 3 of 4 5. ADM 2021-47 Auditor RFP Mr. Olson said the auditor contract will expire soon and the city will go out for bids. The city has had 2 five-year terms with Lauterbach and Amen, LLP and they will be allowed to bid as well. This is for information and the RFP is basically the same as 5 years ago. This moves to City Council on the regular Administration agenda. 7. ADM 2021-49 Bond Abatement Ordinances Mr. Olson said as long as revenue is received, there are no increases to the tax rolls. As a result, there will be total abatement of these eight ordinances. 8. ADM 2021-50 Special Service Area Abatement Ordinances These ordinances have a maximum tax that can be levied and staff must abate a portion of them yearly depending on the amount of money needed. The chart compiled by Mr. Fredrickson provides a summary of what will appear on the property taxes. The increases this year are inflationary and calculations are done by the SSA administrators. Interest rates are lower at this time so the amount residents must pay has gone up slightly. This moves to the City Council Administration agenda. 9. ADM 2021-51 Ordinance for the Amended Levy and Assessment of Taxes for....Special Service Area Number 2004-201 (Fox Hill) Mr. Olson said the same maintenance plan will be in place this year and the maintenance package will be bid when the contract expires. The city is proposing a levy of $97.29 per home this year. The county had mis-entered figures in a report resulting in lost revenue of $2,600 last year. This moves to the Administration agenda for the City Council meeting. 10. ADM 2021- 52 Ordinance for the Amended Levy and Assessment of Taxes for..... Special Service Area Number 2006-119 (Sunflower Estates) There is no change to the maintenance agreement and the levy increases to $179.49 due to the pond maintenance needed here. Mr. Olson noted there is a small amount of $8,400 left to pay. The Fund Balances for Sunflower and Fox Hill are both being built up to pay for maintenance. This moves to the Administration agenda for City Council. Old Business: 1. ADM 2021-41 2011 Bond Refinancing Discussion This is a continuation of the discussion being held at City Council. Nothing has changed in the bond ordinance and this moves to the December City Council for approval. Mr. Olson said one individual objected to the Public Hearing notice but attorneys were contacted and the objection resolved. For information. Additional Business: Alderman Transier asked if the city has explored the infrastructure funds the government has and Mr. Olson replied that state and federal lobbyists are monitoring the situation. He hopes that more new federal money might be allotted and low-interest loans may be available for the water project. Alderman Funkhouser asked to look at the budget item “Professional Services and Subscriptions”. He said the city has transitioned from Page 4 of 4 purchasing software to monthly subscriptions. He added that some items in that line item may not be professional services and he wants to insure the city is keeping up with budgeting trends. He also wants to monitor the re-districting in the state. Mr. Transier asked if there will be a replacement soon for former Alderwoman Milschewski. A new Council member will be appointed for the next Council meeting, said Mr. Olson. There was a brief discussion regarding the present Aldermen reaching out to the appointee and the necessary Council confirmation process. There was no further business and the meeting adjourned at 6:41pm. Respectfully transcribed by Marlys Young, Minute Taker