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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. 1 i 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. 2 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. 3 I 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. I 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. 4 I I I I 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 5 i i 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.. I I Gl'�tJ� -x� ✓` 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 i 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: i 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. I 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. I I 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. i memelcc I I 05!13/98 THU 15:18 FAX 553 5764 KRAMER Law 10006 i i 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 2 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. 1 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 it d i — I i . s