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Admin Committee Minutes 2002 07-11-02 Page 1 of 6 _ UNITED CITY OF YORKV�LLLE APP ADMINISTRATION COMMITTEE MEETING THURSDAY, JULY 11, 2002 6 :30 P.M. In Attendance: Alderman Paul James Alderwoman Rose Spears Alderwoman Valerie Burd Administrator Tony Graff Guests: City Treasurer Bob Allen Kevin McCanna of Spears Financial Presentation for Financing Water Proiect and Citv Hall Kevin McCanna, of Spears Financial, began the presentation by going over the 2.9 Million- Dollar Debt Schedule. Mr. McCanna said that his understanding is that this would be the correct sizing needed for the Water Tower Project. This is based on the July 8 memo from M. This includes the Water Tower and the Rt. 47 water main. There will be contingencies based on the 2.9 that might run a little over that. He said that the interest rate would be set at 4.5 %. He said that the debt service would start being paid off after 5 years and most of it by 10 years because there is a lot of water debt in the early years. The idea was to not increase things too greatly and just have gradual or low payments the first years. This would be added onto the current debt service which is around $200,000, so that it would have a minimum impact in the early years. As the existing debt starts to be paid off, the new debt service comes on line. There will be an increase but they will try to keep it at a fairly level amount. He stated that at the Public Hearing on March 25 the debt service he was looking at then was 2.7 million and had no bonds paid off within the first 5 years, which Mayor Prochaska had previously objected to. The Mayor said that he would like to see something being paid in the early years. It would also be better for bond ratings and insurance and help to avoid raising water rates to pay the bond off. Alderman Paul James asked what had changed the 2.7 million to 2.9 million. Mr. McCanna said it had to do with the engineer's projections and not the bond size. He then stated there would be a debt certificate and that there would be a public sale in August in which the officials would bid on this. He said the banks have been very supportive in the past. Alderman James asked if this was in addition to the $20,000,000 water project. Mr. McCanna said that it was part of it. He added that this particular one is the one that is likely to sell as bonds or debt certificates and the rest would be an IEPA loan. He said the EPA loans do not cover everything, and that they are more for repair and up grade rather than expansion. Alderwoman Spears said it seemed logical to go out for this. Mr. McCanna said that he would need to go over the first draft of the official statement then take it to the August 13 Board meeting. He said he would first need to take the bids in the morning to make sure they'll work, then he would bring it to the meeting that night. City Engineer Joe Wywrot said that this would need to go to COW before any bids were made. Mr. McCanna said that he would like to have it posted by the end of July in order to give at least a ten -day notice to the public. He added that they would also be looking to buy bond insurance and at the same time a free rating. He said that it is important for the city to know what the rating { will be. Administrator Tony Graff informed the committee that for the over all debt that we will be obtaining with the other projects that are on the for - front, is that we have an opportunity until December 31'` to stay at premium points for a loan. He said that they have qualified for $10,000,000. With the way things are moving with other projects that are listed and need to be financed, they are looking to roll in and refinance. That will put it at a range of 1.7 million that will be needed to finance the building. Then they will be looking at the rest of the Water Project and will be looking at an EPA loan for that. Mr. Graff continued saying that even though it is a loan it will go onto the City's debt service and also onto a rating of $9,000,000 that they will be obtaining and financing from now until the end of the year. That should keep it under the $10,000,000 Bank Qualified Status, which will give the City more of a premium rate on the interest rate. The interest rate on that will be .25% and could be a substantial savings in interest dollars over a 20 ear period. Mr. Graff said the reason why he brought that u was because there are 2 special service Y P d Y g P P area bonds that will probably come forth within the next 6 months to developers who are looking to do their projects now with the engineer's estimates. He also stated that the South Sanitary Sewer System will be somewhere around 3.6 million and that they now have revenue streams funding that, but they still need to Page 2 of 6 go out to get a loan to do that, He thought that the loan would be in a range of about 1.6 million because the developer is going to fund the rest. It makes for some interesting challenges, but we are in a good position with forecasting in what is to come. With all the planning that the Council has done in the past two years, we now have things coming together, then we will begin to build the infrastructure to meet both current and new demands. The South Sanitary project is very important part because right now we haven't got enough capacity to the school. The pipe is full at the river and we can no longer pipe down at the river. He said that River Crossing has always been planned, it was always just a paying issue and now the developers are going to be paid. City Treasurer Bob Allen asked about the $10,000,000 that talks went out originally with Fox Industrial Parks and if anything had if it had already gone through yet and has it been financed, Mr. McCann said that apparently they want to move dirt on that project this year and are willing to do the financing in January so that you will stay at around $10,000,000 this year. Mr. Graff mentioned that they thought they were going to have the water project started sooner, but they were having problems with the designs and getting it ready. They actually thought they would be going out for a 12 million dollar bond on the EPA loan but now it will make it to where we are going to do the water tower now and the booster station and then in October do the water treatment plant. Back in May when we did the Fox Industrial Park, EEI projected that we would go for the whole EPA loan in November, but now the EPA does not have enough money to cover that. Basically they were asking for a 2 -year phase for the project at $16,000,000 and they will ear -mark the second year, He also stated that between Federal and State there should be about $80,000,000 in the pool that they will sell bonds for. He said that it should fund most of the current project right now. Mr. McCanna changed the direction of the meeting and spoke of refinancing the City Hall building. He said that because of the controversy and getting things done on the building, that the financing was ballooned and it still has a couple of years to go at a 4.5 coupon. He said that the banks were very nice making a good rate for them and the city. He said they looked at refinancing it and adding about $5000,000. He pointed out on the handout under Sources and Uses; that the borrowing is 1.8 million; the uses pay the expenses; 1,276 million goes to pay the bank; $500,000 goes towards adding on to the building. That's how it adds up to the $1,83 5,000. On the second page of the handout the Debt Service was $100,000 because it's a small amount and they added $500,000 a year and then add $45,000 a year in Debt Service. He said they would bring these figures to the banks but didn't expect any to take on the whole amount. It might be that one would take on the first 10 years, and then another might with the remaining years. He said that with new special service areas coming on, it is the last year to stay under $10,000,000 and do bank qualification. If the city does any of it's own financing there would be a small penalty for that. The city would need to think about, as they would deal with the special service areas, whether or not they would want to capture that penalty. The city should keep that as an issue to think about. If they choose to do so then they would need to speak with the banks and see which ones will accept it and how much would they take on, Mr. Graff mentioned that after speaking with Bill Dettmur about the possibility of doing the parking lots themselves, it would cut the estimated costs by 40 %. He said that at the worst case scenario, the estimated amount would be about $500,000 by the time they would go to issuance. By the time they would go to issuance, and if Kevin agreed to go to publish it, then we should have a more solid figure and the dollars would probably go down a little bit. Alderwoman Spears asked when the time frame would be for this. Mr. Graff said that Kevin will likely take direction from us and that when we get down to looking over the estimated bid for construction, we will have a more solid figure. He said he felt they would be close to the dollar amount, but they would want some cushion for the remodeling. Also he said that though there is a scheduled meeting June 27"i, that they are going to try and take it in on Tuesday to the next COW meeting. He said that the reason for this is because the estimates on the project keep going up and he felt it was an issue to be dealt with soon. He said that he is expecting Dave McEachaern to get back to him to let him know whether or not he can make it to the COW meeting on Tuesday August 6, 2002. It will be put on the agenda. He felt that it would be very wise to get this project financed within this next quarter because of the way the interest rates are going. He said they will also be looking toward Phase 2 in the spring where they will be building out the Council Chambers. For an extra $125,000 they could borrow the money now, put it in the bank and begin the phasing by getting the basement build out, then in late spring build out the Council Chambers. Then we should be set for another 7 —10 years before we have to do another major build out, These items will be further discussed along with the $500,000 and if it will be enough or if we pay more. These items will be brought to the next COW meeting on August 6a', Page 3 of 6 OLD BUSINESS: Minutes for ADDroval/Correction: Administration — 6/13/02 j Alderwoman Rose Spears pointed out these minutes that on page 3 on the O line down, the word focus should be added after the word switch. In the same paragraph the 3` line from the bottom 401K should be changed to Y2K. These minutes with the correction were approved. Special Joint Administration & Park Board Meeting — 3/7/02 These minutes were approved and will be sent to the ADHOC Committee. Procedures for Meeting Note Transcribers City Meetings — Electronic Recording Policy (Dan) Mr. Graff stated that Attorney Kramer recommended putting something in writing on this, with 2 years for keeping the electronic data. By law once the once minutes are approved, accepted and filed the electronic data is no longer needed. Attorney Kramer felt that in case there was any questions or litigation's then 2 years is a good amount of time to keep the data. The information could be stored up to 2 full years in the archives then they would be active for up to another year. This item will be brought back to the next Administration meeting in August. Transcription Equipment (Rose) Alderwoman Rose Spears explained to the committee the need for new transcription equipment, as the current equipment is unsatisfactory. The new equipment would make it easier and more convenient for the minute takers. She asked if there would be any money in the budget to cover for the new equipment. Mr. Graff said that there usually is money set aside for office equipment and that he would look into it. Alderwoman Spears mentioned that City Clerk Jackie Milschewski said that they would probably need four of the devices. Mr. Graff said that he would get a memo written up for the transcription equipment and thought it would be a good idea to order five of the devices so as to have a spare in case one should break down. He also said that they would look into buying a carrying case for them as well. Internal Procedures for Meeting Agendas (Jackie/ Tonv) Review Executive Session Policy (Dan) Alderman Paul James asked if there would be a particular length of time frame for public meetings. Mr. Graff said they are looking at doing Public Hearing Policy. He said they did a survey with the Planning Commission and they are waiting to hear the feed back on that. They would also like to get a survey from the City Council and they have to say on how long public hearing meetings should be. Some things to be considered would be a 3- minute limit to speak, accepting public testimony and will it be accepted after the hearing is closed. He said by law once the hearing is closed then that's it, but by ordinance they could be given a week. Attorney Kramer will be doing some more research on that but for now suggests going with not accepting testimony after the hearing is closed. If the council wants to accept written testimony then there would need to be a policy to state that written testimony can be only by delivery and coming to a public meeting to add on to the record one meeting afterwards. The committee made corrections on the policy. This item will go to COW on August 6, 2002. Mavor's Salary Increase (Committee) Alderwoman Rose Spears stated that the committee had decided in December to agree on a $8,500 salary increase. That would not be including the Liquor Commission job, it would be separate. The committee agreed to send this forward. This item will go to COW on August 6, 2002. Review Emnlovee Salary Survev (Committee) Alderman Paul James stated that the salaries of Aldermen, City Administrator, and Finance Director were all consistently low. Alderwoman Rose Spears felt that this was an issue that will need to be addressed. Right now it is not in the budget. Alderman James mentioned that the Park Board will be interviewing for Page 4 of 6 the director's position. Alderwoman Spears suggested looking at Sue's position. Alderman James said that they have looked at it and what they told her last night is that she is on the high end. With receiving a 5% increase this year they felt that they should take a look at all other city employees and determine if they were on a high end or low end, They would need to see some justification before they would make any more changes otherwise she is in the range. They will be looking at the Director of Finance position and also Program Supervisor. Alderwoman Rose Spears didn't know if it would fit into the budget so it is undetermined if they would want to hire someone at that rank. Mr. Graff said that they probably didn't adopt a range for that position yet because the Program Supervisor is salary scheduled. He said that there is an updated salary schedule that was given out at budget time. Right now he did not think that the Program Supervisor's position was in it but they do need to add that to the salary range. He said he would bring the salary schedule and have them put it on the agenda. Once there is a base of most comparable salaries, there is a formula that is used to come from the top end to low end, and then you can come up with a percentage between the salary ranges. Alderman Paul James said that another thing that was discussed is Labor Range and how that was high for the starting end of it. Mr. Graff said that do to the fact that this schedule is showing some variances he would suggest for the September meeting, to come up with every position they have currently and some projected positions that might be coming in for direction and come up with their own salary schedule. Then have the staff get the supporting documentation and then they could put it together in a survey then hopefully by November they will be able to submit a new draft. That way when they go into budget in December and January, they'll have an idea where new /current position and salaries stand. The Labor Attorney wants to set up a meeting with the committee and discuss perimeters to use as sort of a defense if someone might feel their salary is unfair. He said it is a criteria that they need to use. He also mentioned that they could do the work for us. They could set up the survey and we could mail it all out and qualify it. They will try to work in this meeting with the Labor Attorney at the time they will be doing Employee manual. There will also be a workshop for the entire department in September. Mr. Graff should have a document by October to show how they will do their salary schedule. This item will be brought back the Administration meeting in October. Alderwoman Valerie Burd asked why salaries are paid twice a year. Mr. Graff said that it is by ordinance. Alderwoman Burd commented that since the Mayor's salary is increasing that they might consider paying him quarterly. Mr. Graff will check on that. This item will go to COW on August 6, 2002. Citv Treasurer Position (Committee) Alderman Paul James stated the City is mandated to have a City Treasurer if the population exceeds 10,000. He felt that it takes two years to resolve on, it's not worth looking into. Mr. Graff said that he would project that by 2005 the population will be real close to 10,000. Alderwoman Spears thought that another issue is whether or not the City Treasurer's position is and elected one or an appointed one. Alderwoman Burd pointed out from the municipal code (65 ILCS 5/3. 1- 20 -5), that committee can not remove an elected position. It could go down to an appointed position then the next year the appointed position could be abolished. Alderman James asked that if by 2003 the population exceeds 10,000 would the position still be appointed. From Attorney Kramer's memo it says that at the time the official City population reached 10,000 then it would have to be reinstituted. City Treasurer Bob Allen stated that from the conversation he had with Attorney Kramer said that the City had the option to either make it an elected or appointed position, and that they had gone with elected. Alderman James suggested getting clarification on some of the committee's questions. He felt that unless the population reaches 10,000 it is a non - issue. He said the population is at 6,500. Alderwoman Burd pointed out that there are subdivisions that are already platted that would put the population over 10,000. Alderman James also questioned if the Finance Director fulfills the requirement, then do they even need both positions. Alderwoman Burd said that the memo pointed out that there is no provision allowing a Municipality with 10,000 people or more to function without a City Treasurer once the population criteria is met. Alderwoman Spears said that they would need to ask Attorney Kramer to give some clarification on the City Treasurer's position and if the Finance Director would fulfill that. They will also ask for clarification of the City Clerk's position, This item will come back to the next Administration meeting on August 12, 2002. Page 5 of 6 FY 2002 — 2002 Audit Undate (Traci) Mr. Graff stated that August 16, 2002 the draft will be delivered to the committee. Mrs. Pleckham asked if the committee would like to do a meeting with FPTW on August 29, 2002 or would they want to bring it to the September Administration meeting. He said that the Mayor's goal with FPTW was to get a final in front of City Council by September 24, 2002. That way if there are any more changes even on the final, there are still 2 more meetings to have a vote to get that audit done and approved so that the Treasurer can have time to file. He said that they could take it to the September Administration meeting and just start a half- hour earlier. They could have the Audit Presentation at 6:00, and then they could take it to COW on September 17, 2002. From there it could be taken right to the vote. Alderwoman Spears thought they should probably have a special meeting. Mr. Graff suggested having the special meeting at the Septemberl7th COW at 6:00 p.m., that way it wouldn't have to go to the Administration. Direct Debt/Senior Citizen Undate (Traci) Mr. Graff stated that Mrs. Pleckham looked up direct debt and there are 40 accounts. They are at 230 Senior Discounts. He said the exemption worked well and also the advertisement with the NewsLetter. He said they have received a lot of positive comments from seniors who really appreciate the discounts. Accountin System Up date (Traci) Mr. Graff reported that Mrs. Pleckham has the draft done and it has gone to John Webber of FPT &W. She thought there might be some preliminary changes that Mr. Webber would probably make. It will take about a month to where they are finished with the RFP. Then they will bring it to the committee for bid. After the draft is finished and bid has been made, this item will be sent to COW. NEW BUSINESS: Nicor Municipal Utility Tax Undate (Traci) Mr. Graff reported that Mrs.Pleckham caught that Nicor had undercounted the City for 142 addresses. Mr. Graff said that they have a meeting set up with Nicor and Mrs. Pleckham has drafted a letter to them to let them be aware of the problem. They did negotiate a solution. They will not back bill the residents as long as the City accepts their estimated costs ($29,100) that they owe to the City. Alderman James suggested that Mrs. Pleckham should get recognition for her outstanding find. She inadvertently found it by looking on her own Nicor bill. She realized that she had not been taxed for utility tax. She then found the other addresses that also had not been taxed. In a meeting with Nicor they provided their audit and the City provided them all of the addresses. Nicor decided to back pay the City for the 142 addresses that were not taxed. Nicor then asked for a signed and final plat and the City agreed. Mrs. Pleckham has it set up now is so that when the building permits come in and there is an occupancy, and when Nicor comes with the water billing, when those come online, they have an address now. That way they know how many addresses there are, that come on board. Mr. Graff said that under the ICC rules the City has the right to ask for an annual audit from Nicor. They are able to trace all these new addresses coming on by lock number, The committee then discussed what form of recognition they might give to Mrs. Pleckham. Resolution Anoroving Revised Job Descrintion for Secretarv/Deouty Clerk (Tony) Mr. Graff stated that under the Language and Process they recognized that the Secretary/Deputy Clerk's position has changed over the past 2 years. This has gone to the Labor Attorney but as of yet have not heard a response because he is on vacation. This job description is used as a tool to the Deputy Clerk and what her responsibilities are. Alderwoman Spears recommended for the person to be able to type at least 40 words per minute. Mr. Graff said they are getting mixed reviews on that subject and they are waiting to hear from Waubonsee College to see about getting an idea about that. It would seem that unless they are doing specific secretarial duties of typing documents that are 30 pages or more and transcribing, then 60 words per minute is required. If it's just normal data entry form then 40 words are adequate. Liz does not do large documentation; it is more like memo or forms. Alderwoman Burd said that she could also check with Carol Deitweiler who is in charge of the office careers at Waubonsee. Alderwoman Spears said that she would check into getting a typing test for possible hires. This item will come back to Administration after the Labor review. Page 6 of 6 Ordinance Amending Ordinance Re ar in Residence of School Board Member ADnointed to Park Board (Tonvj This item was tabled. ADDITIONAL BUSINESS: Master Comprehensive Plan Alderman Paul James asked about the Master Comprehensive Plan and if the two plans set up for the parks should be set up that way. Mr. Graff said that yes, the over all city has the Comprehensive Plan and then there are Sub Plans off from that and also a Master Land Use Plan for open space. For more detail you would need to go to the parks. This will be on the agenda for the meeting on August 6 The main reason for the meeting was so that they could discuss over -all regional issues, growth and development, and if we are getting enough direction from other agencies to address open space issues. Also issues to be discussed are Fire Department location and sites for school locations. Alderwoman Valerie Burd mentioned that with the Advisory Committee that she is on they might want to consider keeping an eye this and bring the information to Administration. She said that they are trying to set up a regional group and wanted to know where they would go from there. Mr. Graff said that most likely they would take it to Economic Development because it could be the impact of benefits of the regional transportation quarter. o There was no additional business. Meeting adjourned at 8:45 p.m. Minutes by Theresa Brady Corrected as instructed by the Committee by Jackie Milschewski, City Clerk