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City Council Minutes 2010 10-12-10 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE. ]KENDALL COUNTY, ILLINOIS, HELD IN THE CITY COUNCIL CHAMBERS, 800 GAME FARM ROAD ON TUESDAY, OCTOBER 12, 2010 Mayor Burd called the meeting to order at 7:04 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Milschewski called the roll. Ward I Gilson Present Werderich Present Ward I I Golinski Present Plocher Present Ward III Munns Present Sutcliff Present Ward IV Teeling Present Spears Present Also present: City Clerk Milschewski, City Treasurer Powell, Attorney Orr, City Administrator/Interim Director of Park and Recreation Olson, Deputy Police Chief Delaney, Public Works Director Dhuse, Finance Director Fredrickson, City Engineer Wywrot, Public Relations Officer Spies and Community Development Director Barksdale - Noble. QUORUM A quorum was established. INTRODUCTION OF GUESTS Mayor Burd asked the staff and guests to introduce themselves. She welcomed the guests and asked them to enter their names on the attendance sheet provided. AMENDMENTS TO THE AGENDA Alderman Sutcliff requested that Administration Committee Report be moved up on the agenda to after the Mayor's Report. Amendments approved unanimously by a viva voce vote. COMMITTEE MEETING DATES Public Works Committee Meeting: 6:00 p.m., October 19, 2010 City Hall Conference Room Economic Development Committee: 6:30 p.m., November 2, 2010 City Hall Conference Room Administration Committee Meeting: 6:00 p.m., October 21, 2010 City Hall Conference Room Public Safety Committee Meeting: 6:00 p.m., October 28, 2010 City Hall Conference Room PRESENTATIONS Police Pension Overview At the mayor's request, Todd Overmeyer, president of the Police Pension Fund, gave a PowerPoint presentation (see attached) showing an overview of the police pension. Areas he touched upon were the history on the pension fund, the duties of the Board, the state of the pension address, comparisons to other pensions funds (see attached), draw backs to increasing the retirement age and solutions to the pension crisis. PUBLIC HEARINGS Vacation of Jefferson and Ridge Streets Mayor Burd opened the floor for a public hearing on the vacation of Jefferson Street and a portion of Ridge Street legally described as follows: That part of Ridge Street lying between Blocks 14 and 19 in the Original Village of Yorkville extending from the east line of South Main Street to the East line of Jefferson Street and that part of Jefferson Street lying between Blocks 18 and 19 in said Original Village i The Minutes of the Regular Meeting of the City Council — October 12, 2010 — nage 2 extending from the North line of Ridge Street to the South line of Madison Street, all in the United City of Yorkville, Kendal County, Illinois. James Olson of Yorkville explained that he is a thirty -five year resident of Yorkville whose home is next to the old jail building. He stated he had no reservations to a museum at the old jail however he was worried that the vacation of the street would leave his building at a dead end alley. If Kendall County closes off the street it will affect his property. He proposed that the vacation be delayed until the time that Kendall County has a plan for what they are going to do in the area. He noted that the state wanted Jefferson vacated in order to soften the slope to Route 47 so the east side will probably go to them. He also felt the vacation might cause a problem with school buses visiting the museum. He added that he was concerned with the location for the proposed parking on the hill. Administrator Olson stated he was unaware of an immediate redevelopment plans from the County however they do want to explore building on Fox and expanding parking in the area. There was no further public comment. Mayor Burd closed the public hearing. CITIZEN COMMENTS Bobby Race from Sports Expo commented that he heard that the sports complex is either on hold or not happening. He stated he was runnin for the le Congressional District and if elected will work on developing a dialog with Springfield in order to bring jobs and tourism to the District. He stated that he wanted to motivate citizens to pull away from being apathetic and to believe they can make a change. He believed in "opportunity thinking" which brings good thoughts and works wherever a person takes it. Rolf Snobeck of Grande Reserve discussed the article in Crane's Chicago Business magazine which addressed the housing crisis in Yorkville. He stated he did not know if the article helped especially when it referred to Grande Reserve as the "epicenter of zombie development ". He asked if anyone on the City Council if they knew about the article before it came out and none of the aldermen had. He noted that the mayor was interviewed for the article and suggested that the City Council work together as a team. He asked if the sports complex was dead and Mayor Burd explained that the original developer walked away from the project however there are others looking into it. Larry DeBord, member of the Police Pension Fund thanked the City Council for their support of the pension board. He stated that there isn't a city in Illinois who is not in a bind with their pension. He recommended that the City Council attend IML meetings to get more information on pensions. He explained defined benefit plans versus other contribution plans like 401k, actuarials, different investment options for the city, etc. CONSENT AGENDA 1. Police Reports for July and August 2010 (PS 2010 -18) 2. Ordinance 2010 -44 - Amending the Code of Ordinances Adding a Prohibition of Service to Debtors of the City - authorize Mayor and City Clerk to execute (EDC 2010 -37) Mayor Burd entertained a motion to approve the Consent Agenda as presented. So moved by Alderman Munns; seconded by Alderman Werderich. Motion approved by a roll call vote. Ayes -8 Nays -0 Werderich -aye, Plocher -aye, Spears -aye, Munns -aye, Sutcliff -aye, Gilson -aye, Teeling -aye, Gohnski -aye PLAN COMMISSION /ZONING BOARD OF APPEAL None. MINUTES FOR APPROVAL A motion was made by Alderman Sutcliff to approve the minutes of the City Council meeting of August 24, 2010; seconded by Alderman Munns. Motion approved unanim ously by a viva voce vote. BILLS FOR APPROVAL A motion was made by Alderman Sutchff to approve the paying of the bills listed on the Detailed Board Report dated October 6, 2010, totaling the following amounts: checks in the amount of $225,091.86 i The Minutes of the Regular Meeting of the City Council — October 12, 2010 — page 3 (vendors); $225,964.01 (payroll period ending 9/25/10); for a total of $461,055.87 (total); seconded b - , - Alderman Werderich. Motion approved by a roll call vote. Ayes -7 Nays -1 Plocher -aye, Spears -nay, Munns -aye, Sutcliff -aye, Gilson -aye, Teeling -aye, Golinski -aye, Werderich -ave REPORTS MAYOR'S REPORT Appointment to Park Board (CC 2010 -75) Mayor Burd entertained a motion to approve the appointment of Seaver Tarulis to the Park Board. So moved by Alderman Sutcliff; seconded by Alderman Munns. Mayor Burd explained that there are two opening on the Park Board not including the school district opening. Mr. Tarulis is a resident of Prairie Meadows and is treasurer of their homeowners association. She hoped that this appointment would alleviate the problem with lack of attendance from Park Board members. Motion approved by a roll call vote. Ayes -8 Nays -0 Teeling -aye, Gilson -aye, Sutcliff -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -aye, Golinski -aye Resolution 2010 -26 Approving a Revised Policy for Athletic Field Use Policies and Procedures (CC 2010 -76) Mayor Burd entertained a motion to approve a resolution approving a Revised Policy for Athletic Field Use Policies and Procedures and authorize the Mayor and City Clerk to execute. So moved by Alderman Munns; seconded by Alderman Sutcliff. Administrator Olson explained that a policy exists however this amendment makes two changes to it. The first change is that any youth athletic group with an existing rental relationship with the city will be allowed two free tents or booths during a tournament. There will be a fee for any additional booths. The second change is a structure for competing youth groups. There are currently three organizations who rent baseball fields from the city. Field use in the past was allocated to the first organization to approach the city. Now there is a plan to share field use with all the groups. Alderman Golinski complimented Administrator Olson and the Park Board on a good job. He stated that the fee charged to other organizations for booths was discussed by the Park Board and it was suggested that the fee be waived for non - for -profit organizations however this was not addressed in the amended policy. Administrator Olson stated that it may have been discussed but he was not given direction to amend the policy to reflect this. Alderman Golinski noted that a non - for -profit may raise money at an event just to pay a large portion back to the city. Administrator Olson stated that it was discussed that organizations should not be competing with the city's concession stand. Alderman Golinski noted that there is a clause which states booths cannot offer similar items to those sold in the concession stand. He felt that the non - for -profit groups were just trying to raise funds for their group. He had no problem charging fees to for -profit organizations. Alderman Spears felt that Alderman Golinski's concern was logical. She made a motion to amend the revised policy to not charge non - for -profit groups for their booths; seconded by Alderman Gilson. Alderman Sutcliff stated that they were in the business to make money for the city and as the amendment would take money away from the city she did not support it. Alderman Werderich stated that it was not the city's job to make money off its residents but rather its job was to provide services. He felt Alderman Golinski's idea gives back to the community. Attorney Orr clarified if the amendment should apply to just local non - for —profit groups or all non -for- profit groups. For example, would the amendment be applicable to a national group like the American Cancer Society or just local groups raising money for their teams. Administrator Olson asked what the definition was to "local non - for - profit" groups. He felt the amendment would apply to all non - for - profits in order to make it easier to administer. The Minutes of the Regular Meeting of the City Council — October 12, 2010 — page 4 The City Council discussed the wording for the amendment. They supported keeping it for all non -for- profits and revisiting the policy later if it became a problem. Administrator Olson noted that the fee was added after twenty -two booths were set up at a tournament last year. Alderman Gohnski stated that if a non - for -profit was renting the field, they would get two free booths. He felt that if someone was renting the field and warned to set up a booth to make money for their non - for -profit group they should be allowed to do so. Administrator Olson clarified that anyone having an existing field use agreement (i.e. Yorkville Youth Baseball/Softball Association) gets two free booths. Mayor Burd noted that short of raising taxes, the city is looking for alternate revenue sources. The booth rental is an alternative to raise money to be used to maintain fields. Alderman Teeling clarified that organizations with a field rental agreement already got two free booths. Administrator Olson stated that this was correct and noted there are three groups with agreements; Yorkville Youth Baseball/Softball Association, the Yorkville Reds and Yorkville Travel Sports. Alderman Teeling felt there was no need then for the amendment since they already get two spaces. Motion to amend approved by a roll call vote. Ayes -5 Nays -3 Mums -aye, Spears -aye, Plocher -nay, Werderich -aye, Golinski -aye, Teeling -nay, Gilson -aye, Sutcliff- -nay Alderman Teeling clarified that if someone is having a tournament at one of Yorkville's fields, any non- for-profit group could set up a booth for free even if they are not associated with the group running the tournament. Administrator Olson stated that this was not necessarily the case; this applies to whoever the organization renting the field permits to have a booth. Motion to approve resolution as amended approved by a roll call vote. Ayes -6 Nays -2 Gilson -aye, Sutcliff -nay, Munns -aye, Spears -aye, Plocher -aye, Werderich -aye, Gohnski -aye, Teeling -nay Kendall Marketplace — Partial Acceptance (CC 2010 -77) Mayor Burd entertained a motion to authorize the acceptance of the public improvements related to the commercial component of Kendall Marketplace for ownership and maintenance — Beecher Road improvements, Gillespie Lane improvements, Cannonball Trail improvements, Blackberry Shore Lane (Cannonball to Northland) improvements, on -site watermain, on -site sanitary sewer, out all storm sewer and those storm sewers that only drain city roadways; that the bond fund transfer be approved as recommended, and that the city complete the commercial punchlist using development bond funds. So moved by Alderman Munns; seconded by Alderman Werderich. Attorney Orr explained that Kendall Marketplace is in foreclosure. The bond proceeds will be used to finish the project. The safest way for the city is to ask the developer to allow the bond trustees to access the funds for the city. The bond proceeds will reimburse administrative costs and be applied to public infrastructure especially asked Route 47 and Cannonball Trail. Motion approved by a roll call vote. Ayes -8 Nays -0 Sutcliff- -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye Breast Cancer Awareness Mayor Burd reported that during Breast Cancer Awareness month she has been diagnosed with breast cancer. She had surgery last week and has been given a good prognosis due to early detection. She apologized for not getting back to people who have contacted her while she was recuperating. She stated she would be relying on Alderman Plocher, who is Mayor Pro Tem, over the next few weeks as well as staff. She encouraged women to have mammograms as her mother died of cancer. COMMITTEE REPORTS ADMINISTRATION COMMITTEE REPORT Ordinance 2010 -45 Amending the Code of Ordinances Establishing a Cultural Commission — Second Reading (ADM 2010 -48) The Minutes of the Regular Meeting of the City Council — October 12, 2010 — nage 5 A motion was made by Alderman Sutcliff to approve an ordinance amending the Code of Ordinances establishing the Yorkville Cultural Commission and authorize the Mayor and City Clerk to execute; seconded by Alderman Munns. Alderman Sutcliff stated that at the first reading of this ordinance she requested two changes. She made a motion to change section 2 -9 -3 by striking the wording "who are residents...." and "The chairperson shall be appointed by the mayor "; seconded by Alderman Munns. Alderman Spears stated that the Administration Committee discussed the ordinance and decided on the wording as presented in the draft; committee members should be residents and the chairperson should be elected by the committee. She did not understand how the chairman of a committee could change the wording of a document that the rest of the committee supported. Alderman Sutcliff stated she did not support the wording; it was three to one in favor of it. She wanted the entire City Council to be able to look at the changes. Alderman Gilson felt that limiting the committee to residents did not exclude people outside the city from participating in the project. He did not support the amendment. Alderman Plocher felt that a historic commission should be open to residents of Kendall County. Alderman Teeling stated that she mistakenly gave-the wrong names of the cities she researched at the first reading. She stated that she had found information on Naperville and Aurora's commissions and Naperville allows to non - residents on theirs. Alderman Golinski stated he agreed with Aldermen Spears and Gilson. He felt that allowing non- residents to be on the commission was not the norm. He stated he researched several cities and found that the residency requirement was common. He stated he would like to be advised by residents however he was open to a compromise of having one to two non - residents on the commission. Mayor Burd noted that other commissions in the city such as the Human Resource Commission have the chairman appointed by the mayor. They are not decision making commissions but rather recommending bodies. Boards who oversee finances usually pick their own chairman. As to having only residents on the commission, she noted that the Facade Committee required an architect and they had a hard time finding a qualified one residing in Yorkville. She felt it was sad to exclude non - residents from the commission. She stated that when she was first elected she heard many Kendall County residents say the city was trying to exclude them. This would be a good way to include them. Alderman Sutcliff withdrew the motion to amend; Alderman Munns withdrew his second. A motion was made by Alderman Sutcliff to amend the ordinance to remove from section 2 -9 -3, second paragraph the words "persons who are residents" and change it to "a majority of residents" and strike the wording "elected by the Commission" and replace it with "appointed by the mayor"; seconded by Alderman Munns. Mayor Burd clarified that up to three members could be non - residents. Alderman Spears noted that the City Council was originally presented with a Historic Commission. The majority of the City Council questioned having non - residents on the commission and the mayor appointing the chairman. The Council voted to send it back to the Administration Committee but this was never was done. Now it is back before the City Council under a new format but it is the same thing. She stated she supported only residents on the commission and having them appoint their own chair. Motion to amend approved by a roll call vote. Ayes -6 Nays -2 Plocher -aye, Werderich -aye, Gohnski -aye, Teeling -aye, Gilson -nay, Sutcliff -aye, Munns -aye, Spears -nay Motion to approve ordinance as amended approved by a roll call vote. Ayes -6 Nays -2 Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye, Werderich -aye, Golinski -aye, Teelmg -aye, Gilson -nay Mayor Burd reported that the city would be sponsoring a haunted house at the old jail on October 23r through 25` and October 29` through 31 The haunted house will be open 4:00 p.m. to 6:00 p.m. for younger visitors and then from 7:00 p.m. to 10:00 p.m. for older visitors. She advised anyone interested in participating to contact Alderman Sutcliff. The Minutes of the Regular Meeting of the City Council — October 12, 2010 — page 6 Alderman Sutcliff noted that she contacted the high school drama club and about forty students showed interest in participating. They will be building sets for the haunted house this Saturday and Sunday from 10:00 a.m. to 5:00 p.m. j CITY COUNCIL REPORT Amusement Tag Discussion (CC 2010 -78) Alderman Spears noted that the Amusement Tax was enacted due to the anticipated sports complex. Currently it affects three businesses. In light of the sports complex not coming to Yorkville she asked that the tax be rescinded. Alderman Sutcliff stated she was in favor of the tax but it was for incoming business. Now that it is not happening she agreed with Alderman Spears. Attorney Orr explained that the City Council will have to approve an ordinance repealing the ordinance enacting the tax. She stated she could have this prepared for the next City Council meeting. Mayor Burd noted that while the Ochoa's are pulling out of the sports center, she is talking to other interested parties. Administrator Olson suggested the funds already collected from the tax, less than $500.00, be kept and dedicated to a purpose in the general fund or police fund. CITY ATTORNEY'S REPORT No report. CITY CLERK'S REPORT Resolution 2010 -27 Release of Closed Session Minutes (CC 2010 -79) Clerk Milschewski requested a motion approve the resolution to release closed session minutes and authorize the Mayor and City Clerk to execute. So moved by Alderman Munns; seconded by Alderman Spears. Motion approved by a roll call vote. Ayes -8 Nays -0 Munns -aye, Spears -aye, Plocher -aye, Werderich -aye, Gohnski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye CITY TREASURER'S REPORT No report. CITY ADMINISTATOR'S REPORT No report. FINANCE DIRECTOR'S REPORT Director Fredrickson reported that the primary focus of the audit is the completion of the financial report which should be done by early next year. CITY ENGINEER'S REPORT No report. DIRECTOR OF PUBLIC WORKS REPORT Director Dhuse reported on the following: • The last brush pickup would be done the week of October 26, 2010. • Hydrant flushing would be done north of the river this week and south of the river next week. • The sewer projects are complete in Fox Highlands and at Town Square Park. • Leaf pick up is scheduled for November. CHIEF OF POLICE'S REPORT No report. DIRECTOR OF PARKS & RECREATION'S REPORT Interim Director of Park and Recreation Olson reported that the annual Halloween Egg Hunt would be held Saturday, October 16, 2010 from 7:00 p.m. to 8:00 p.m. at Town Square Park. The Minutes of the Regular Meeting of the City Council — October 12, 2010 — Page 7 COMMUNITY DEVELOPMENT DIRECTOR REPORT No report. I COMMUNITY RELATIONS OFFICER'S REPORT Mrs. Spies reported: • The 3 rd Annual Care and Share event is scheduled for October 16, 2010 at the Kendall County Fairgrounds. • Tomorrow there will be testing of the kayak chute at the dam between 9:00 a.m. and 3:00 p.m. Mayor Burd stated she spoke with paddlers and there are plans for classes for the chute. She noted that the chute is important for economic development in the downtown. She hoped it would generate business in the area. Mayor Burd noted that the City Council never received copies of the article in Cranes Chicago Business. Administrator Olson stated that he included it in his Administrator Weekly notes. Mrs. Spies stated that she was not aware of when it would hit newsstands. COMMUNITY & LIAISON REPORT KenCom Alderman Mums stated that he attended the KenCom meeting and no changes were made to the agreement. He noted that one fire protection district has backed out and that three cities are against the proposed changes. Attorney Orr indicated that Oswego is prepared to share legal fees to pursue litigation against KenCom. Mayor Burd added that the mayor of Oswego has asked Yorkville to be the lead in any litigation. Attorney Orr noted that she went over the materials from the KenCom meeting including their recent budget. She stated that she cannot see where they are projecting that costs are escalating. She stated she will continue investigating and will report back to the City Council. Alderman Gilson clarified that KenCom voted to amend their contract to increase the city's contribution. He asked what Attorney Orr's opinion was on the amendment. She reiterated that she is researching what will be the result of the non binding amendment. She stated she did not understand the basis of the amendment and she can't project what will happen. KenCom is attempting to amend the contract but its members are in different financial positions. She felt the city was in a good position with the original agreement. Alderman Gilson asked that the City Council be kept advised of all scenarios. Alderman Munns stated that the city has a couple of years before the cost to Yorkville increases. He suggested that staff develop a proposal of what can be done without KenCom. Mayor Burd added that three communities, Yorkville, Oswego and Plano, are discussing what they can do without KenCom. COMMITTEE REPORTS PUBLIC WORKS COMMITTEE REPORT Ordinance Vacating Jefferson Street and a Portion of Ridge Street — First Reading (PW 2010 -68) Alderman Spears agreed with Mr. James Olson that approving this ordinance may be premature. She suggested that the city wait to see Kendall County before proceeding. Attorney Orr reminded the Council that the vacation was included in the contract for the purchase of the old jail and it has to occur in 90 days. Mayor Burd stated she would discuss the vacation with the County and ask for a plan. Alderman Gilson commented that this scenario came up with the landfill. He felt it was a flaw to put the vacation of roads in agreements. Attorney Orr explained it was not legally incorrect and provisions such as this happen often. Alderman Gilson asked what would happen if the City Council does not approve the ordinance. Attorney Orr explained that it would open the city up to litigation. The Minutes of the Regular Meeting of the City Council — October 12, 2010 — na2e 8 Rush Copley — Revised Regional Storm Sewer Easement (PW 2010 -62) A motion was made by Alderman Plocher to approve the agreement for public utility and storm sewer easements between the United City of Yorkville, the Kendall County Public Building Commission, County of Kendall, Rush Copley Medical Center Inc., and Copley Ventures, Inc., a wholly -owned subsidiary of Rush Copley Medical Center, Inc. and authorize the Mayor and City Clerk to execute; seconded by Alderman Werderich. Attorney Orr explained that she was contacted by the County who had concerns with paragraph #6 on page 4 of the agreement. They had a problem with the city designating the contractors as assignees so the language has been changed to indicate that contractor, Rush Copley, would have the use of the easement for the purpose of constructing the sewer. The change of the wording does not change the substance of the ordinance. Alderman Spears noted she did not get Exhibits A, B or C. Attorney Orr explained that the legal description is Exhibit C and she need to get it from Kendall County. She indicated she would correct the verbiage and redistribute the ordinance with the exhibits. Motion approved by a roll call vote. Ayes -8 Nays -0 Plocher -aye, Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye, Muni -aye, Spears -aye ECONOMIC DEVELOPMENT COMMITTEE REPORT No report. PUBLIC SAFETY COMMITTEE REPORT Filming Permits (PS 2010 -21) A motion was made by Alderman Werderich to approve the form of an application for commercial film permit and procedures and standards guidelines for commercial filming and taping; seconded by Alderman Sutcliff. i Alderman Werderich explained that he brought this to the Public Safety Committee because there is a group who will be filming a movie in Yorkville. He wanted the city to have an application in place. Alderman Spears had a question Section X. Use of City Property (page 7). Item E states that a police officer will be provided during the working hours at no charge. She stated that this was not discussed by the committee. She asked that it be removed. She also had concerns with the cost of the use of a police officer and barricades. Administrator Olson stated that he referred to the Lockport's application when developing Yorkville's and they included these items. A motion was made by Alderman Spears to amend the permit by removing Item E. on page 7; seconded by Alderman Plocher. Motion to amend approved by a roll call vote. Ayes -8 Nays -0 Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff- -aye, Munns -aye, Spears -aye, Plocher -aye Motion to approve application as amended approved by a roll call vote. Ayes -8 Nays -0 Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff- -aye, Munns -aye, Spears -aye, Plocher -aye Ordinance 2010 -46 Amending the Code of Ordinances Providing for Liquor Control (Hotel/Motel) (PS 2010 -22) A motion was made by Alderman Werderich to approve an ordinance amending the Code of Ordinances providing for liquor control and authorize the Mayor and City Clerk to execute; seconded by Alderman Munns. Alderman Werderich reported that staff had questions about hotels /motels having a liquor license. This amendment addresses their concerns and passed 3 -1 at committee. Mayor Burd stated that the new hotel in Yorkville would like a liquor license and she did not object as Liquor Commissioner. The Minutes of the Regular Meetine of the City Council — October 12, 2010 — na2e 9 Alderman Plocher indicated he was going to vote against the ordinance because the hotel requesting the license did not show good stewardship to the community when they did not use local workers. Motion approved by a roll call vote. Ayes -7 Nays -1 Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye, Munns -aye, Spears -aye, Plocher -nay, Werderich -aye ADDITIONAL BUSINESS Cranes Article Alderman Spears stated that she received calls from people in Grande Reserve concerned with the article in Crane's. She asked if she could get the article emailed to her so she could share it with residents. She asked if the city was planning to change the type of development. Mayor Burd stated that the current owner of the property, Bank of America, wants quality developers. She reminded the City Council that they would have to vote on any changes presented. Quick Recovery Alderman Golinski wished Mayor Burd good luck with her cancer treatment and a speedy recovery. EXECUTIVE SESSION Mayor Burd entertained a motion to go into Executive Session for the purpose of For litigation, when an action against, affecting, or on behalf of the particular public body has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent, in which case the basis for the finding shall be recorded and entered into the minutes of the closed meeting. So moved by Alderman Plocher; seconded by Alderman Werderich. Motion approved by a roll call vote. Ayes -8 Nays -0 Spears -aye, Plocher -aye, Werderich -aye, Gohnski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye, Munns -aye The City Council entered into executive session at 9:26 p.m. The City Council returned to regular session at 9:55 p.m. ADJOURNMENT Mayor Burd entertained a motion to adjourn the meeting. So moved by Alderman Plocher; seconded by Alderman Spears. Adjournment of the meeting was unanimously approved by a viva voce vote. Meeting adjourned at 9:55 p.m. Minutes submitted by: Jacquelyn Milschewski, City Clerk City of Yorkville, Illinois REGULAR CITY COUNCIL MEETING Public Comment October 12, 2010 I PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: I GJ� Q C:4? Q -�� r SIGNIN REGULAR CITY COUNCIL MEETING October 12, 2010 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: ff 2&T1 co- 141'116ubd iv1sion Avers ei)Gc )"-X&L) ID a a- 40 0 A !6 ( A(-c- C 171 - a tJS &G r /dij G troy p jpj 4s_A SIGNIN City Council Meeting Yorkville Police Pension Fund 10/12/2010 Todd A. Overmyer President I { I Good evening Mayor Pro -Tem, City Council, and guests. My name is Todd Overmyer and 1 am the President of the Yorkville Police Pension Fund. 1 was asked by the Mayor to address the City Council in regards to the Yorkville Police Pension Fund. My objective here tonight is to give a little history, explain our duties as a pension board, give a "State of the Pension Address" and finally give my thoughts. 1 first want to give a little history of ourPension Fund. Our fund was created in 2001 to invest, and manage funds in accordance of the state law. (40 ILCS 5 /3)Per statue, the board is made up of two sworn police officers, two civilians appointed by the Mayor, a beneficiary, which is a retired police officer, and 2 the City Treasurer, who is a non - voting member. Chief Harold Martin, Officer Dan Pleckham, LarryDeboard, City Treasurer Robert Allen, and myself made up this board. We were starting from scratch, and a lot of hard work went in to getting ourselves educated, creating policies and procedures, hiring an attorney, interviewing and finally hiring an investment firm. In May 2007, we had the first two officers ever retiree from the Yorkville Police Department, Sgt. Greg Sibenaller and Sgt.Ron Diederich. By default, Beneficiary Greg Sibenaller came aboard as the 5' member of the board. In late 2008, our President, Larry DeBoard left the Pension Fund due to accepting J a new job, and in 2010 Chief Harold Martin retired. Current members 3 of the board are as follows, Trustee - Chief Rich Hart, Secretary - Officer Ray Milolasek (MIKE LOSIK), Assistant Secretary - Fred DuSell, Vice President - Greg Sibenaller, City Treasurer Bill Powell, and myself as President. There are a total of 4 retirees of the Yorkville Police Department. They are Greg Sibenaller, Ron Diederich, Harold Martin,and Glen Calvert. Some of our duties include managing the assets of I the fund, accept members into the fund, approve regular and disability pensions, and most importantly, pay the beneficiaries their monthly n n. We alsoa t o classes, seminars pensions. s t e dcI a s s, , and workshops on ethics, investing, and pension laws. Now for the "State of the Pension Address". 4 i i During the 80's theSocial Security AdministrationreformedSocial Security PensionLaws. Public Safety Workers had the option to receive or not to receive Social Security Benefits. Yorkville Police opted to continue having funds taken out of their checks for Social Security. As a result, they will receiveconsiderably less in Social Security benefits than someone without a government pension. Not enough to live off of.Generally though, Public Safety workers receive a pension because they don't pay into Social Security. Each Police Officer pays 9.91% of their gross salary to the pension.To be eligible for retirement, you must be 50 y/o and have been a full time police officer for 20 years. With that, you will receive 50% of your 5 final salary. There are increases of 2.5% each additional year up to 30 years of service to a maximum of 75% of your final pay, In May 2002, we received a check from Illinois Municipal Retirement Fund in the amount of $275.365.60.This was the transfer of Employee Contributions from the IMRF to our newly created Pension Fund. During this early time State statue required that wehad to invest 90% of our funds into Government Securities and the remaining 10% into Mutual Funds. Once the fund exceeded $2.5 million the allowed amount invested in securities increased to 45 %.So how do we know how well we are doing? 1 compared the following local pensions funds rate of return and compared it to ours. Remember, some of 6 i these pension funds have been around for 40 years or so, and ours is less than 10 years old. 1 think we are doing very well. Also included is how well 9 �"Y � funded they are. Pension Rate of Return Percent Fund Funded Oswego - 12.69% 51.6% Police Aurora 9.57% 48.16% Police o Naperville -12.51 56.5 /o Police - o 61.3 i Naperville 12.87 /0 Fire Yorkville -8.01% 33.4% Police Oswego Police Actuarial Report - April 30, 2009 Aurora Police Actuarial Report* - December 31, 2009 Naperville Police Actuarial Report - August 20, 2009 Naperville Fire Actuarial Report -July 21, 2009 Yorkville Police Pension - December 9, 2009 *- The 2008 rate of return was - 12.23% and funded at 45.81% 7 As you can see, Aurora Police had a change from a negative in 2008 to a positive in 2009. One of the reasons for our rate of return loss is due to the economy. Our investment firm is advising us, this is on the rebound, as the markets are slowly getting stronger. 9 9 g When you hear the term Percent Funded, this is misunderstood. The time this would be an issue is if 'I the whole department was eligible to retire at the same time and they did. This cannot happen, as our officers are different ages and they were not all hired on the same day. Today, we have over $2,759,119 in assets. Our unfunded liability is $5,512,957. Now how did we end up with these pension problems ?Basically it's from the lack understanding and educatingourselves. 8 I have another history lesson, and threepossible solutions. On July 1,1993 public pension funds unfunded liability was amortized over a new 40 -year period as a level percentage of payroll rather than in equal annual payments. Now compare this inmortgageterms, and wehaverefinancedthe liabilities over a NEW 40 -Year period.So what can be done? In practical terms municipal authorities should fund the pension IF possible over the actuarial amount. Those dollars are cheaper today and will help reduce the unfunded liability. Secondly, would be to reset the amortization clock, and go back to the old actuarial method of equal annual the increasing amount needed to fund the pensions. 9 And lastly, lift the restrictions on investment options. This would allow pension funds to invest in other higher rate of return funds that currently may not be available to them. In doing so, this would reduce the taxpayers higher pension fund contributions. We keep hearing about reform and the idea of creating a two - tiered pension system. In doing so, this would move the retirement age closer to the Social Security retirement age.lf that were to happen, our costs would actually go up due to job injuries, sick time, and increased health care costs. Remember theFram Oil Filter commercial "You can pay me now, or pay me later". Someone is going to have to pay for it, either the city with workers compensation, overtime to cover the sick time, or i 10 the pension fund when there is a career ending injury. 1 feel it is better to pay someone to retire after 20 -30 years of service than pay for a disability or death benefit. God forbid if we ever have a police officer die in the line of duty. It's sad to say, but everyone pays in that case. We all know as we get older, we have the increase chance of health problems. An example of this is our Police Chief, Rich Hart. He is a fit and active 42 y/o male who had a significant . life- changing, and possibly a career ending illness. Police Officers and Firefighters by nature have an increase chance of heart disease, stroke, cancer, lung and breathing problems and most importantly stress. Stress is the number one killer of our public safety workers. 11 Again, do you really want a 65 y/o police officer breaking up a bar fight, going to a bank robbery, or chasing a suspect? 1 know I don't! Again, this is a young man or woman's game. 1 just want to leave you with this last thought. I call them The three promises... Number 1 is called "PUBLIC SAFETY PROMISE" Public Safety Officers agree to sacrifice their lives and /or well being to protect the community they serve. Number 2 is called "SOCIAL PROMISE" In turn the Society agrees to protect them, as well as their families, from the risks associated with this 12 I commitment so that those who are no longer able to work due to age or disability are provided for. And, Number 3 is called JOB FOR LIFE PROMISE Employees commit to working for an Entity during their working career, the Entity agrees to provide life time deferred earnings for when they can no longer work. 1 want to thank you all for this time, and want to extend an invitation to anyone who wants to attend our meetings. Our next meeting is November 9 at 5pm. Thank you. Are there any questions? Biblio9raphy: 13