Admin Committee Minutes 2000 05-09-00 UNITED CITY OF YORKVILLE
ADMINISTRATION COMMITTEE MINUTES
MAY 9, 2000
Member present: Mike Anderson Rose Spears Mayor Prochaska
Richard Sticka
Staff: Jim Nanninga
Guests: See sign -in sheet attached to permanent record
CABLE TV CONSORTIUM
George Glass, who is now the representative to government will try to explain the problems.
With him tonight are with representatives of the cable company who are here to discuss the cable
television cost increases.
Mayor Prochaska asked about the increase and cable outages where residents near Route #47 &
Van Emmon had called him personally, and his wife about outages that were reoccurring at Easter
time for approximately a month, stating they couldn't get any response from cable company.
Now rates are increasing, and residents are not happy.
Mr. Connor stated that there are plans to upgrade the service, and replace trunk lines with fiber
optics. They have no time table as yet, but expect to be in the far west area of Aurora by late next
year. Fiber optics will eliminate the heavy load to the neighborhoods and will carry more signal.
Subscribers will be able to order pay per view through remote control, and internet services that
will bypass telephone will be available. It is two way technology. These lines will follow the
current lines, so where lines are below ground, they will be below ground and where above
ground they will continue to run above ground. When outages occur it is easier to locate the
problem.
Alderwoman Spears stated that when the City was negotiating with Jones, we had been told these
services were being added but had not been told about any rate increase so we had not anticipated
a rate increase.
Mr. Connor stated this increase is tied to programming cost, as we add channels. This increase is
substantial and it is difficult because of competition. They have to stay competitive.
Alderman Sticka asked where they expected to be in regard to upgrade by the end of 2001.
Connor stated Oswego and Yorkville.
Mr. Glass stated the other rate increases are tied to digital service. Since Plano is not tied into
Naperville or Chicago they may not be able to provide digital before the re -wire here. Mr.
Connor is new to us, but has been very receptive to the consortium. But we should be notified of
all problems, and should not be put in a position of finding out about problems throughout
residents. This should improve with time.
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Mayor Prochaska stated that in the future we should be notified of what and when new services
are coming for the benefit of getting the word out via the press, thus getting our residents
advised. WE can still get service at 630/897 -2288 in Aurora, and the same numbers for service in
Plano and Naperville as we had when it was Jones. City staff should have a number to call that is
not the same as the residents. We should have access to a phone number where we can get to the
bottom of a problem.
KENDALL COUNTY TAP -ON FEES FOR HIGHWAY DEPARTMENT
Fee is based on the size of the water line. Sewer tap -on is by number of drains
Chairman Anderson stated they should annex, it is to our benefit. Nanninga stated in the case of
the High School we charged only for out of pocket expenses, and wasn't sure of what was done in
the case of the courthouse.
Alderwoman Spears stated we should not waive 100% of the fees.
Mayor Prochaska stated they would look at costs. Nanninga will have some answers on what has
been done in the past. This should ao to COW.
SIGNING OF CHECKS
Bob Allen recommended a resolution authorizing the treasurer be authorized to sign all checks,
and read his proposal. See permanent record for copy.
Chairman Anderson stated we have an ordinance in effect passed in 1999, number 1999 -15 passed
by a vote of 7 -0 authorizing the Mayor and all aldermen to sign the checks. The treasurer is able
to sign as well and therefore felt this was recent and more than adequate.
Alderman Sticka stated that Allen statement that Oswego's treasurer signs is incorrect, Oswego
doesn't have a treasurer but has employees who sign. Naperville and Aurora have a computerized
signature. City Council is were the responsibility lies and having the treasurer mandated to sign
every check gives him the veto power that only the Mayor has.
Mayor Prochaska stated that by state statute, if there is money, the treasurer is bound to be sure
the payment is made. The City requires two signatures and nothing states the treasurer cannot be
one of those signatures, but the Council has the authority to sign. If you are there when they need
to be signed, then you will sign, but otherwise the City Council will sign.
Sticka stated that in fact some cities have employees sign because of availability.
Allen stated he felt this was a reasonable request as it is his responsibility to be sure the checks are
correct and ready for signing.
Chairman Anderson stated the Deputy Treasurer looks at checks in the treasurers absence.
Alderwoman Spears stated she has no problem with Allen being the primary signer.
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Mayor Prochaska stated that when these checks come to City Council for payment they should
have already been checked for any errors etc.
Allen stated that if it is something he would like to do, he doesn't see why not. He is liable for
these funds.
Mayor Prochaska stated the issue here is that you already have the power to sign checks, to look
at, and check every check. The question is, when you are out of town, every other alderman can
sign, you cannot authorize one alderman to sign.
Alderwoman Spears stated that checks were signed and taken early.
Alderman Sticka stated that in regard to taking a pay check early, the code does not address the
issue of when aldermen are to be paid, it is simply done every six months for convenience.
Mayor Prochaska stated that in many cases checks are signed in between City Council meeting
due to the payroll timing not always falling at the time of a City Council meeting. In those cases it
is not always convenient, but someone authorized to sign must go in and sign checks.
Alderman Anderson stated that Mr. Allen should have come to the chairman and asked to be on
the agenda, instead he had the item added to the agenda and contacted the press.
Mr. Allen stated he was concerned since the City had just had the worst grade we could have
gotten from the auditors.
Mayor Prochaska stated this was a software problem, a technical error and it was found and
resolved. If Mr. Allen wants to do something constructive perhaps he could address problems
that need to be addressed. For instance payroll and bills not coinciding with City Council for
approval and payment in a timely fashion.
Mr. Allen stated that the former treasurer recommended software that was less than quality.
Mayor Procahsa stated that the treasurer is not responsible for finances, the Corporate Authority
are the responsible parties, and that is the Mayor and City Council ... they are responsible for the
finances of the corporation.
Mr. Allen stated that as custodian he felt it prudent that he request to sign all checks.
Anderson stated that Allen can sign all checks and he stands behind Ordinance #99 -15. Mayor
Prochaska stated this does not exclude Allen from signing.
Mr. Allen stated that some people felt it unfair that some people got their checks and others
didn't.
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Alderman Sticka stated that distribution has nothing to do with signing, and Mr. Allen's approach
is to write a memo that denies the corporate authority and call in the newspapers and the States
Attorney, a memo that Mr. Allen had no authority to write in the first place. He doesn't have the
authority to take away the City Council authority to sign.
Chairman Anderson stated there is an ordinance in place and there is no reason to change it. At
this time we should move on.
Mayor Prochaska addressed Mr. Allen stating that he should have brought this issue through
procedures and worked with the City Council as they have worked with him on other issues, like
the investment policy. Instead you went to the press, you should bring issues in the right
procedure, start with committee. Any two signers have as much trustworthiness and honesty as
the other.
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Mr. Allen stated the procedure was not followed.
Chairman Anderson stated you can't override an ordinance no matter what you write.
LITIGATION UPDATE
This is just to update from about a year ago and the status on Nicholson. Nicholson litigation is
completed. In regard to Nylcare, Nanninga needs to get an update from Kramer.
OUTSTANDING RECEIVABLES
In regard to Greenbriar there is talk of some exchanges.
Coach Road Hills may get a new owner and they will have to pay balance due remaining on fees.
Nanninga stated Landmark America is going to collection for $2200. Northwest Collectors. If
collected in 10 days they charge 10% then to 35% and if it gets legal then 50% charge. Our new
policy with developers has eliminated old bills piling up. We are also tougher on water bill policy.
JOB DESCRIPTION
Mayor Prochaska worked with J.T. so that all job descriptions will have the same format. The
University of Illinois has worked with the Police Department and will move to Administration to
establish a review process. Stipend positions are employees not appointed.
LITE CONSTRUCTION
We are trying to get something written from F.E. Wheaton stating that these material was
available. WE are dealing with one side saying they were not available and the other saying they
were available.
ADDITIONAL BUSINESS
Citv Hall Parking Lot Floodiniz
Alderwoman Spears asked for an update on the parking lot flooding areas. Wywrot has told
Aurora Blacktop threat they need to fix it, they know it is their problem, and they will fix it.
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Transition Fees
Alderwoman Spears stated that at the School Board meeting they discussed the School District
approaching other areas regarding transition fees. They asked that the City do a survey on the
amount of transition fees being charged in other areas. In some areas it is called something
different, in other areas it is included with Land Cash fees, and in some areas it is waived. They
did pass unanimously their ordinance on School transition fees which they will collect themselves.
They plan to tract how many children come into the school district. Nanninga will get with them
to establish a form of proof of payment for us to use.
Debt Service
Nanninga stated that the debt service has funds, but they are spoken for on debts that are
expected.
Mayor Prochaska stated that Allen is to check on an account showing balance.
Dental Vision Account Activitv
Alderwoman Spears asked about the time frame on dental /vsion.
Nanninga explained that fund are replenished on May 1 st, so many employees use it right away.
Also bills should be submitted before April 30th for services from the prior year. .
Adjourned 8:15 PM
Minutes by Sandy Marker
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The following is a recommendation to adopt a resolution which
requires the city treasurer of Yorkville to all city checks,
except in cases of abscence or incapacitation.
In 1998, the city's contracted auditing firm, Pandolpfi, Topolski,
Weiss & Company, Ltd, was unable to express and opinion regarding
Yorkville's financial statements following our annual audit. This
was an indication that the city needs to consider new approaches
to the position of C}ty Treasurer and the control alloted by the
Council to the holder of that elected office.
In 1999, our audmitor made the following recommendation:
"We recommend tahat the City develop an investment policy in
accordance with Illinois Public Act 90- 688."
one item which was listed as part the investment policy wa:_:
It A policy regarding the establishment of internal control and
written operational procedures designed to prevent losses of funds
that might arise from fraud, employee error, misrepresentation
by third parties or imprudent actions by employees of the City."
Following the approval of Yorkville's investment policy, I
advised the City Administrator and Deputy City Treasurer that I
wished to co -sign city checks. Th decision was inspired by a
councilman inadvertantly signing blank check
Recently a situation occurred which expanded this conviction.
A city employee requesting re- imbursement for an expense failed
to follow established pxo administrative procedures. After
consulting with the administrator, the individual's department
head and the mayor, I signed the re- imbursement payment. But,
if I had felt that this request was unjustified, could I have
denied the request Anyox other authorized cc- signed could have
over -ruled my position.
Basically, as the city's Chief Financial officer, I feel that
the council should protect the safety of the public funds and
increase the accountability of the office of the Treasurer by
requiring all city checks authorized by administrative department
to be co- gsi -7ned by myself if I am available.
I therefore request that the city attourney be directed to prepare
a resolution for the next committee of the whole meeting which
states: Be it resolved that all city checks authorized by
the United City of Yorkville's administrative department shall
be co- signed by the duly elected City Treasurer except in cases
of abscence or incapacitation. Abscence shall include times where
the City Treasurer is outside the county of Kendall for a continu-
ous period of three days or more..
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Investment Procedures and Internal Control Manual
A. Introduction
The Treasurer's Office is responsible for conducting cash and investment transactions for
all funds (except the Police Pension Fund) held by or for the benefit of the United City of
Yorkville with the exception of monies under the control of the Library Board, The
responsibility for the administration of the investment program has been delegated to the
City Treasurer, who shall implement the following investment procedures and internal
controls, as prescribed by the Investment Policy.
B. Objective _ .
The Procedures and Internal Control Manual provides an outline for cash and investment
transactions. This manual shall be reviewed on a yearly basis for possible revisions by the
Administration Committee to ensure that the manual is current with investment industry
standards and practices.
C. Prudence and Standards of Prudence
The standard of prudence to be used by the investment staff shall be that of a "prudent
person" and shall be applied in the context of managing the overall portfolio. The
Treasurer, or persons performing the investment functions, acting in accordance with
01AII policies and procedures and exercizing due diligence, shall not be responsible for
i tten ndividual investment's credit risk, provided that deviations from expectations are
reported in a timely fashion and appropriate action is taken to control or mitigate adverse
developments.
The "prudent person" stand is herewith understood to mean the following:
Investments shall be made with judgement and care, under the circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering
the probable safety of their capital as well as the probable income to be derived.
D. Investment Decisions
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The investment staff, which includes the Treasurer and the City Administrator, shall
adhere to the guidelines of the United City of Yorkville's Investment Policy regarding all
investment procedures or any other cash and investment transactions.
E. Chain of Command
For the purpose of obtaining approval on investment matters not addressed in the
Investment Policy, the following chain of command is appropriate:
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1. City Administrator
2. City Treasurer
F. Duties and Responsibilities
The Treasurer and the City Administrator have specific duties and responsibilies, as stated
in the Illinois Revised Statutes and job descriptions. The Treasurer shall be responsible
for the management of the investment program and the daily operational duties and the
accounting and the City Manager shall be responsible for monitoring compliance with
internal control procedures. The Treasurer will receive agreement from the City
Administrator before making any transaction.
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G. Ethics and Conflict of Interest
For the protection of the investment staff, it is imperitive that full disclosure be made by
investment personnel to the City Administrator of any material interests which they hold
in a financial institution which conducts business with the City.
H. Separation of Duties
Investment staff shall observe proper segregation of duties while engaged in investment
activities. Persons responsible for consummating investment transactions should not be
engaged in activities relating to the recording of transactions in the financial records or
the reconciliation of cash and safekeeping accounting statements.
I. Reporting Requirements
A monthly report shall be prepared and forwarded to the City Administrator. The report
shall contain, but not be limited to, the following information:
a.) Security ID
b) Purchase date
c) Maturity date
d) Purchase institution
e) Safekeeping institution
f) System assigned account number
J. Operations
"Operations" is defined as those necessary procedures and duties required to maintain a
properly working department on a daily basis.
1. Daily Investment Procedures
The following is a basic outline of routine daily procedures necessary to maintain proper
documentation on cash and investment transactions.
As needed, the bank balances shall be obtained from the depository banks via computer.
The Deputy Treasurer shall be responsible for providing the Treasurer with daily
information regarding the cash requirements and required maturity dates for all funds.
2. Investment Worksheet ( "cash book ")
(1 is necessary to monitor cash activity within specific bank accounts for the purpose of
e t ring net cash available for investment. A "cash book" shall be maintained by the
Deputy Treasurer which shall include a summary of daily cash inflows and outflows by
bank account and corresponding book balances at the end of each day.
A review of the "cash book" shall be conducted by the Treasurer and the City
Administrator and shall consider net available cash for investment as well as future
anticipated cash flows for the purpose of determining the amount and duration in which
Rinds might be invested.
All cash and inves Oeansactions shall be journalized, by bank account, and given to
the Deputy Treasure re 2.00 pm on the day of the transactions.
Proper documentation and authorization shall be required before any cash or investment
transaction is executed.
3. Securities' Confirmations
The processing of the securities' confirmations, including the filing and reconciling, shall
be reviewed by an individual who did not execute the purchase or sale. All
confirmations for securities, including certificates of deposit, shall be attached to the
investment work -up documentation. The original confirmations are not permitted to
leave the Treasurer's office, and only copies will be provided upon request.
Upon receipt, the safekeeping account listing shall be reconciled against the appropriate
investment reports.
4. Safekeeping Procedures
Certificates of deposit are permitted to be safekept at the issuing bank provided they are
fully collateralized and pledges are held at an independent third party institution. All
certificates of deposit confirmations must be verified against the appropriate investment
reports and general ledger account on a monthly basis.
K. Accounting for Investment Transactions
The investment staff and the Deputy Treasurer must work closely together to insure
proper accounting entries. Investments shall be recorded in the financial records at
original cost. Interest income will be recognized at maturity or amortized as of the last
day of the fiscal year according to the effective interest method of amortization.
L. Data Input of Investment Transactions
Investment transactions shall be entered into the City's investment software by the
Treasurer and/or City Administrator. Investment entries shall be completed on a weekly
basis to ensure current information.
For additional information regarding the use of the investment software, please refer to
the training manual which is located in the City Administrator's office.
M. Internal Investment Report .
Investment reports are generated by the City's computer system, which provides reports
on an as- needed basis. Each report shall be checked against the original documentation
and the appropriate general ledger accounts to ensure the accuracy of the reports on a
monthly basis. Furthermore, the investment reports shall be safekept by the City
Administrator.
Original statements for the City's investment accounts which are held by a custodian
shall be reconciled by the Deputy Treasurer on a quarterly basis.
N. Selection of Bankers
As stated in the United City-of Yorkville's Investment Policy, the Treasurer shall only
purchase certificates of deposit from financial institutions which are qualified as public
depositories by United City of Yorkville.
The Treasurer's Office shall provide each authorized institution a copy of the City's
Investment Policy and each institution shall be required to submit, in writing, a statement
that they have received, read and understand the City's Investment Policy. This
statement shall be submitted to the Treasurer.
O. Security Selection Process
When purchasing or selling securities, the Treasurer's Office shall select the security
which provides both the highest rate of return within the established parameters of the
Investment Policy and satisfies the current objectives and needs of the City.
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SERVING
,,**f� Y THE PUBLIC
�Z V m WITH PRIDE
To: Mayor, City Council and Deputy Treasurer
From: City Treasurer Robert J. Allen ; ?
cc: File
Date: Wednesday, April 19, 2000
Subject: Check Signing
Greetings! I will be out of town from Thursday, April 20 until April 27.
During my absence, I request that Councilman Rose Spears sign all city
checks in my stead.
Thank you and Happy Easter!
Fax
SERVING
n THE PUBLIC
City L! YorkezZe memo WITH PRI DE
To: Mayor and City Counoi
From: James Nanninga
CC: City Clerk
City Treasurer
Date: Tuesday, April 18, 2000
Subject: Elected Official Salary
Please be advised that your salaries will be available the morning of April
28, 2000.
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05!13/98 THU 15:18 FAX 553 5764
KRAMER Law 10006
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STATE OF ILLINOIS )
) ss
COUNTY OF KENDALL )
RESOLUTION NO: 1999
RESOLUTION AUTHORIZING CHECK SIGNATORIES
WHEREAS, after careful consideration, the Mayor and the City Council of THE
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UNITED CITY OF YORKVILLE, deem it necessary to permit and allow all alde , the City
Treasurer and the Mayor to sign checks on behalf of the City;
WHEREAS, the Mayor and City Council deem it in the best interest of the City that all
City Checks must be signed by two authorized persons for security purposes;
WHEREAS, by having the Alderman, Mayor, and City Treasurer be able to sign checks
on behalf of the City, it shall cut down the burden of having the same persons signing checks on
a regular basis and allow more flexibility for check signing;
NOW THEREFORE BE IT RESOLVED BY THE UNITED CITY OF YORKVILLE
that the following persons are authorized to sign checks on behalf of the United City of
Yorkville:
1. Mayor: Arthur F. Prochaska, Jr.
2. Treasurer: Robert Allen
3. Aldermen: Burton Callmer, Richard Sticka, Larry Kot, Thomas Sowinksi,
Rose Spears, Valerie Burd, Michael Anderson, & David
Dockstader
It is further resolved that two (2) persons of the above named persons shall be required to.
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STATE OF ILLINOIS )
)ss
COUNTY OF KENDALL
RESOLUTION NO. 19
RESOLUTION AUTHORIZING THE MAYOR OF
THE UNITED CITY OF YORKVILLE TO SIGN LOAN DOCUMENTS FOR
REHABILITATION OF SANITARY SEWERS AND MANHOLES FOR PROJECT L17 -1153
WHEREAS, application provisions for loans from the Water Pollution Control Revolving
Fund for construction of sewage treatment works require that the UNITED CITY OF
YORKVILLE authorize a representative to sign the loan application forms and supporting
documents;
THEREFORE, BE IT RESOLVED by THE UNITED CITY OF YORKVILLE that
MAYOR ARTHUR F. PROCHASKA is hereby authorized to sign all loan application forms
and documents for Project L17 -1153 Rehabilitation of Sanitary Sewers and Manholes on behalf
of the UNITED CITY OF YORKVILLE
AND WHEREAS, the previous approval of Resolution No. 1997 -24, that designating
Robert Johnson, the previous mayor as the authorized representative, is hereby repealed.
PASSED AND APPROVED THIS DAY OF ' 1999.
MAYOR
SEAL ATTEST:
CITY CLERK
R -SSES
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