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City Council Minutes 2011 03-08-11 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, MARCH 8, 2011 Mayor Burd called the meeting to order at 7:00 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Milschewski called the roll. Ward I Gilson Present (arrived 7:03) Werderich Present Ward I I Golinski Present Plocher Present Ward III Mums Present Sutchff Present Ward IV Teeling Present Spears Present Also present: City Clerk Milschewski, City Treasurer Powell, City Attorney Orr, City Admimstrator/Interim Director of Park and Recreation Olson, Police Chief Hart, Deputy Chiefs of Police Hilt and Delany, Finance Director Fredrickson, City Engineer Wywrot and City Park Planner Schraw. 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 Mayor Burd requested that 43 under the Mayor's Report - KenCom Intergovernmental Agreement (CC 2011 -18) be moved up on the agenda to before the presentation. She explained that she wasn't feeling well and would like to leave after the discussion. She will be turning the meeting over to Mayor Pro Tem Plocher. Mayor Burd entertained a motion to amend the agenda. So moved by Alderman Sutcliff, seconded by Alderman Plocher. Amendment approved unanimously by a viva voce vote. COMMITTEE MEETING DATES Public Works Committee Meeting: 6:30 p.m., March 15, 2011 City Hall Conference Room Economic Development Committee: 6:30 p.m., April 4, 2011 City Hall Conference Room Administration Committee Meeting: 6:00 p.m., March 17, 2011 City Hall Conference Room Public Safety Committee Meeting: 6:30 p.m., March 24, 2011 City Hall Conference Room MAYOR'S REPORT KenCom Intergovernmental Agreement (CC 2011 -18) Mayor Burd entertained a motion to approve the KenCom Intergovernmental Agreement creating Kendall County Emergency Phone Service and Communication Board and authorize the Mayor and City Clerk to execute. So moved by Alderman Munns; seconded by Alderman Sutcliff. Attorney Orr pointed out the highlights of the agreement: • All units of government shall be responsible to pay for the cost of KenCom • Specific powers are given to the KenCom Board —create and enhancing a 9- 1- 1- system, operate a dispatch system, employ people to run the 9 -1 -1 center and dispatch, determine the surcharge rate The Minutes of the Regular Meeting of the City Council — March 8, 2011— nape 2 to be charged. If the agreement is challenged the KenCom Board does not have the right to assess charges. • The KenCom Board shall consist of twelve members — the Kendall County Sheriff and one alternate; a County Board member and one alternate; one member and one alternate from each of the four municipalities (Newark, Oswego, Plano and Oswego); one member and one alternative from each of the five Fire Protection Districts; a member -at- large who is a registered voter of Kendall County. The Chairman of the County Board approves the members and their alternatives 0 The Executive Board is the oversight board. • If any member decides not to use KenCom dispatching service, it will still have to use the KenCom 9 -1 -1- service. • Any parties leaving KenCom must give four years notice. • Kendall County shall pay $1.6395 million each year towards the cost of KenCom dispatching services. Attorney Orr stated she did not know where the revenues traditionally have come from to fill the $1.6395 million figure. The municipalities of Oswego, Plano and Yorkville who are part of the agreement account for 50% of the EAV and real estate taxes. They also account for 74% of the safety sales tax. She did not know what percentage of the 9 -1 -1 surcharge is generated from the municipalities. She explained that per a KenCom report the three municipalities account for 50% of 9 -1 -1 calls however the agreement states that any amount over the $1.6395 shall be paid by the police agencies at a rate of 85 %. The fire districts are responsible for 15 %. It does not indicate if the sheriffs office is responsible for any additional contribution. She stated that she did not understand how the agreement could be amended by representatives appointed by the Kendall County Board. It is unclear how the votes are taken by representatives to nullify the older agreements Alderman Munns asked if this was the new agreement before the City Council and Attomey Orr stated it was the November 18, 2010 agreement on the table. Alderman Spears noted that the agreement states KenCom has to provide 9 -1 -1 service. Attorney Orr explained that even if the city does its own dispatching KenCom would still take the 9 -1 -1 calls. They would then relay the calls to the city's dispatch. Alderman Golinski asked if there was a breakdown of expenses. Attorney Orr stated that this was included in exhibit # 1 of the agreement along with exhibits A and B. Alderman Golinski noted that he did not receive the exhibits so Attorney Orr read them to the City Council. Alderman Spears asked for a copy of the exhibits. Alderman Munns stated he asked the Kendall County Board if they could change the agreement at any time and they said they could. Attorney Orr stated that she was unsure where this power emanates. She explained that she went over the state statute where there is a specific list of powers but she did not see any power to assess a change in fees. Mayor Burd read from Exhibit 1, #4 stating that the municipalities will pay nothing the first year commencing on December 1, 2011. She clarified that the city would begin paying in the year 2012. She then pointed out #5 of the same exhibit which says that on or before November 1s of each year thereafter the Kendall County Board will notify the participating agencies of the total budgetary costs to be divided amongst them. She asked if the agencies would be making up the deficiencies. Attorney Orr explained that this was correct. Alderman Gilson asked what her assessment of risk would be if litigation moved forward. Attorney Orr stated that she had no idea what the risk would be. She stated that when governments come together to give a new governmental entity power this should be upheld. However this is not what is happening. This gives representatives who are approved by the county chairman authority beyond that of their office. Alderman Gilson stated he had more questions however he asked if Alderman Munns could present his liaison report first. Alderman Munns reported that he attended two meetings in the last two weeks. At the first meeting, the KenCom board wanted the municipalities to sign the agreement right away but all three said no. Plano told them they were bringing the agreement forward for a vote so another meeting was scheduled. Plano agreed not to sign the agreement with a 6 -3 vote and Oswego unanim ously agreed not to sign. At the second meeting, Kendall County stated they can only contribute $1.6 million. Alderman Gilson stated he was at the Executive KenCom meeting along with Alderman Munns. He gave an overview. KenCom was formed in 1990 and the twenty -one year old model was designed to protect The Minutes of the Regular Meeting of the City Council — March 8, 2011— page 3 the interest of the participants and the public. It has been amended twice since its origination. Attorney Dallas Ingemunson was hired as KenCom consul and stated that there was no risk or questionable action taken by the Executive Board. The net effect of the three municipalities not signing the agreement is that they will not be part of KenCom Executive Committee which will move on without them. They indicated that emergency calls will not be taken for the communities and they asked to move ahead with their RFP for phone equipment. They stated that the communities would be welcomed back if they want to join at a later date. Alderman Gilson added that he felt that the city is trying to bargain a position however it is in a weak position financially to push matters with litigation. The city could suffer a substantial financial lost and risk the safety of its residents. He felt that Yorkville should support the amendment. Attorney Orr noted two legal issues. She explained that this agreement states that it is the successor to all prior agreements and all prior agreements are nullified and repealed. This is not an amendment. The other issue is that this statute is different from the 9 -1 -1 statute. There is no way Kendall County can kick Yorkville out of the 9 -1 -1 service because there are state administrative rules regarding the collection and use of a surcharge for this purpose. Mayor Burd gave some background information on the agreement. She was first brought into the situation by former Police Chief Martin in 2009 because he was concerned with the request for additional money. There were discussions regarding upgrading the system and it was apparent that KenCom had enough money to make the upgrade. She also noted that KenCom has no deficit in their budget. In 2009, KenCom was moving forward with the upgrades and with moving the center into the basement of the Kendall County jail. Larry Nelson, member -at- large, warned everyone to agree on a percentage increase for future new hires but did not give specifics. At the time, she explained to the KenCom board that Yorkville probably would not agree to this without knowing the cost. She pointed out that Kendall County has continued to give raises to its employees while others have been making cut backs. Since 2009, nothing really has changed. The city keeps having the same discussion with the County over and over. She stated that one ofthe things the four mayors (Oswego, Newark, Plano and Yorkville) have brought forward in recent meetings with the Kendall County Chairman are that they agree there could be a need for more money for 9 -1 -1 services and that they are 100% behind the service. All the mayors and chiefs of police have an issue with the change in the agreement. All the parties thought that if there was a shortfall then the County would go for an increase in the 9 -1 -1 surcharge. She stated that she felt this was a way for the County to get their hands on tax dollars without going for a referendum. If they went for a referendum and it failed, the mayors were prepared to go back to their councils and ask to give more fins to KenCom. She felt that if the municipalities agree to the changes they should have veto power over spending. The way it is now, the County can continue hiring, building, etc. without any input from the municipalities. The County Board does not want to give up power. She stated that it was very important to resolve the matter however she would rather give more money to Yorkville's Police Department as they now patrol more areas of the county than the Sheriffs Department does. She asked the City Council to think of all the problems with the agreement before they vote. She stated that she did not think the agreement was worth approving. Alderman Spears noted that the county would still have to provide 9 -1 -1 services while the city provides its own dispatchers. She outlined requirements for a dispatch center; • two qualified people need to be on duty 24/7 • one week consists of twelve shifts • if shifts are staggered then a minim of nine employees would be needed with each employees qualifying for overtime and benefits • telephones need to operate under a mandatory radio system She noted that there are many expenses related to the city having its own dispatch. She also noted that if the city continues litigation there are the legal expenses. She stated that as of 2010 the cost of anew dispatch center would cost the city approximately $2 million to build and that there would be yearly administrative costs of about $500,000.00. A center needs to meet ICC requirements and certification. Alderman Spears felt that by not approving the agreement, the City Council was putting the public in harm's way. She wondered if the city was reacting to the agreement rather than planning ahead. She did not feel enough research had been done and she asked if staff was directed to investigate the cost for a dispatch center. Mayor Burd stated she was unaware if Yorkville had ever looked into building its own dispatch center and felt that the $2 million figure Alderman Spears spoke of was the cost for the KenCom expansion. She asked Chief Hart if he was aware of Yorkville ever investigating runnin their own dispatch center. Chief Hart stated that he had worked with Oswego to research the costs for a dispatch center for Chief Martin. The cost was projected to be $1.7 million to $2 million. Mayor Burd clarified that this was not I i The Minutes of the Regular Meeting of the City Council — March 8, 2011— Page 4 done at her direction and it has never been her or Oswego's intention of having a dispatch center. She would like the agreement to remain as is until they can demonstrate a need to change it. She asked Chief Hart what he felt were the concerns of the police chiefs. Chief Hart stated that their concern was the open checkbook that the new agreement created. They did not feel it would affect the departments now but would down the road. The chiefs were concerned that if for example the fire department wanted $500,000.00 worth of equipment that only they would use, the board could approve it and then the municipalities will pay 85% of the cost. He was concerned with the voting powers; Oswego, Plano and Yorkville are only three votes out oftwelve. Also, if Yorkville wants to pull out of KenCom it needs to give four years notice. Alderman Sutcliff asked who the members of KenCom are. Attorney Orr reiterated KenCom's make up. Alderman Sutcliff clarified that Oswego, Plano and Yorkville pay 74% of the public safety sales tax. She asked what happened to the sales tax if the municipalities are forced out. Attorney Orr explained that as long as the county operates the 9 -1 -1 center, they get to keep the surcharge money. The safety sales tax is for any safety aspect of the county such as the jail, sheriffs, etc. It does not have to be put into the 9 -1 -1 service. Alderman Sutcliff stated that the city would like to stay with KenCom however the county is forcing them out. She felt they have the leverage while the municipalities have none. She also felt the county was being irresponsible with taxpayer's dollars and she stated she did not support the agreement. Alderman Werderich asked what the alternatives to the agreement were. The only option he could see was for the city to spend a lot of money for a dispatch center. Mayor Burd stated that she would like this resolved with Kendall County and that she hoped for arbitration in the matter. She wanted the municipalities to have the right to veto because they are contributing the majority of the income. She stated that it is not clearly defined on how the funds are being used. Alderman Golinski asked what would happen if the city does not agree to the new agreement; what is the next step. Attorney Orr stated that it depended on the vote. The mayors will meet to discuss the next step and then bring the information back to their councils. She recommended arbitration before litigation. Alderman Golinski asked if anyone had an idea what the city's share would be in 2014. Chief Hart stated that this was unknown but he projected about $22,000.00. Alderman Golinski stated he was not concern with the "open checkbook" because the county was conservative with funds. Alderman Plocher stated that he did not trust the county board especially after they fought the city over a park. Alderman Munns stated that both Chief Martin and Chief Hart were against the agreement and that he supported the department heads. He did not see why the county was changing the agreement now and that it should be changed when it needs to be. He stated that the City Council supported public safety however this is a legal issue. Alderman Gilson asked Chief Hart for his opinion. Chief Hart stated that he has strong reservations about the agreement and that it was a very political issue. He did not support an "open checkbook ". Alderman Gilson asked why the City Council needed to discuss this in an Executive Session since the KenCom Board did it in open session. Mayor Burd stated that litigation should be discussed in Executive Session as she did not want to share strategies. Mayor Burd stated that she spoke with County Board members John Purcell and H.D. Davidson and they discussed forming a 3 -1 -1 dispatch to take the pressure off the 9 -1 -1 center. This would help reduce expenses. Mr. Davidson told Mayor Burd that there was no need to rush into the agreement because currently there are no deficits nor are there projected deficits. He felt that this was a "created" problem that does not exist. Mayor Burd felt that if the municipalities had more time, they could show the county some cost saving suggestions. Alderman Spears asked what the plan was if this doesn't work. She questioned if there were funds in the budget for a dispatch center, personnel, etc. She reiterated the ICC staffing regulations. She stated that according to the executive board if the contract is not approved they will continue to take 9 -1 -1 calls but the city will do its own dispatching. She felt that by voting against the agreement the City Council was being irresponsible because there are no funds in the budget for dispatchers. Attorney Orr stated that she has worked with other communities on their 9 -1 -1 centers and that Alderman Spears figures are correct. She stated that Yorkville needs to coordinate with the other communities for a The Minutes of the Regular Meeting of the City Council — March 8, 2011— page 5 dispatch center. KenCom would still receive the 9 -1 -1 call and then pass it on to the dispatcher. She stated that the question was how the executive board could assess liability over its members. There was some discussion on 9 -1 -1 calls, background checks, equipment, etc. Chief Hart stated that the city having its own dispatch center was not cost effective. He noted that as of now, services have not been affected and that another meeting was scheduled in four to six weeks to discuss service. Alderman Teeling felt that the discussion should not be about a new dispatch center but should be on the agreement and if it is legal. Alderman Werderich noted that there is a contract however the city has no leverage to change it and he had reservations about using litigation as leverage. Alderman Munns stated that the KenCom Board stated that they could not cut off services right away; they would have to give the cities the equipment paid for with surcharge funds so that the cities can handle calls. Alderman Gilson told the City Council that KenCom stated that if the agreement is not approved by the municipalities they would move forward without them. Mayor Burd asked if the City Council wanted to go into Executive Session to discuss pending litigation. Aldermen Werderich and Munns indicated that they did. EXECUTIVE SESSION Mayor Burd entertained a motion to go into Executive Session for the purpose of discussing 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 Werderich; seconded by Alderman Munns Motion approved by a roll call vote. Ayes -7 Nays -0 Present-1 Munns -aye, Spears - present, Plocher -aye, Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye The City Council entered Executive Session at 8:15 p.m. The City Council returned to regular session at 8:40 p.m. The vote was taken on the KenCom Intergovernmental Agreement. Motion defeated by a roll call vote. Ayes -4 Nays -5 Plocher -nay, Werderich -aye, Golinski -aye, Teeling -nay, Gilson -aye, Sutcliff -nay, Munns -nay, Spears -aye, Burd -nay Mayor Burd turned the meeting over to Mayor Pro Tern Plocher and left the meeting. PRESENTATIONS Audit Management Letter Mike Senko with Wolf and Company explained that the auditors went through the audit process and issued a SAS 115 letter on internal controls which goes over material weaknesses and deficiencies. These are terminologies, not things that indicate any larger things. He entertained questions. Alderman Gilson had the following questions on the letter: • Page 2 — Fraud Risk Assessment and Prevention — Material Weakness - was this something that was suggested last audit and not addressed? Mr. Senko stated that this was correct. • Page 3 — Prior Period Restatements — Material Weakness - Land Cash — the auditors recommend that the city evaluate its financial statement review process to ensure all parties are involved to ensure completeness and accuracy. What is the Land Cash restatement? Director Fredrickson explained that there were receivables that were carried forward for sometime however it was decided to write them off. In regards to Land Cash this had to do with OSLAD grants from 2008. Administrator Olson explained that this was either for the Riemenschneider Park or the Whispering Meadows Park grants. He stated that this comment indicates that this should have been caught prior to the audit. Also, it applies to the matching up revenue and expenses related to sales tax. The The Minutes of the Regular Meeting of the City Council — March 8.2011— Page 6 recommendation basically says not to do this anymore. In response, staff will review budget reports more often. • Page 4 — Cash Disbursement Policies and Purchasing Function — Significant Weakness - audits of prior years indicated multiple instances where purchase orders (PO's) were not used. The auditors recommended that PO's be used in accordance with city policy. During the testing of the current year cash disbursements, the auditors noted several instances where PO's should have been used and were not. They recommend that the PO policy be enforced. How many times did this occur? Director Fredrickson stated he could not recall the exact number but it occurred enough times to trigger the comment. He stated that the PO policy is being revisited and suggested revisions will be brought forward to the next Administration Committee meeting. Alderman Gilson noted the comment on the bottom of page 4 regarding the auditor's comment being amended from the prior year to combine and remove various comments. He asked if this referred to something removed from the previous management letter. Mr. Senko explained that they are required to show previous activity that has not been corrected or corrected from the previous year. • Page 5 - Cash Disbursement Policies and Purchasing Function, continued — Control Deficiency - During the audit the Deposits Payable account in the General Fund was unable to be reconciled. What is the explanation? Director Fredrickson explained that there is approximately $182,000.00 in a Deposit Payable account. These are funds from developers that are no longer active. He stated that he hoped to have this rectified by the next audit. Administrator Olson further explained that the funds are from deposits collected from projects that have not moved forward. • Page 6 — Capital Assets — Satisfied Material Weaknesses — the auditors previously noted that capital assets balances were misstated in a number of areas. Mr. Senko indicated that this along with anything referred to in the remainder of the letter has been satisfied. Director Fredrickson explained that there were issues in the past with balances being misstated but this has been corrected. Administrator Olson added that this was related to accepting public infrastructure. Documentation was not forwarded to the Finance Department however this has been corrected. • Page 8 — Actuarial Valuations of Pension Funds — Satisfied Control Deficiency — It was noted during prior audits that actuarial valuations for the Police Pension Fund were not being performed annually. Did this result in insufficient contributions? Treasurer Powell explained that an actuarial preparation was done by the state and by an outside firm. The fund used the one based on the state's preparation and this is where the real estate tax levy comes from. This occurred for two years after the fund was formed. Once this was identified, the fund contracted with the outside firm. • Page 7 — Interfuud Activity — Satisfied Significant Deficiency — He previously asked if money could be transferred between funds. This indicates it can be done. He asked if this was indeed okay to do and if separate accounts need to be established. Mr. Senko clarified how this should be handled. Alderman Golinski asked if the grant revenue that was backed out would be realized. Administrator Olson stated that it would be and that it is included in the budget for the upcoming year. The city submitted the grant request however there were deficiencies in it which were fixed and resubmitted. Mr. Senko explained that the audit is a snap shot in time. The audit did not recognize this so it was suggested that it be removed. Administrator Olson stated that when there is a clear park deed it will be added back in. I PUBLIC HEARINGS Proposed FY 2011 -2012 Budget Administrator Olson gave a PowerPoint presentation on the United City of Yorkville Fiscal Year 11/12 budget (see attached). Mayor Pro Tem Plocher called the public hearing to order and asked for citizen's comments. There were no comments so the public hearing was closed. CITIZEN COMMENTS Larry DeBord, Somonauk Street, stated that he stopped at Rosati's and saw behind their bar a reminder that Kendall County employees get a 20% discount of their orders. He commented that if residents are being asked to vote on a I% increase in the sales tax, why should Kendall County employees get a discount for purchasing pizza from Rosatie's. He stated that Rosati's does a lot for the community but shouldn't be giving county employees a discount. Mayor Pro Tern Plocher asked Administrator Olson if the employees should be accepting this. Administrator Olson stated that per the state ethic's act an elected official can only accept $75.00 in gifts per year. Mayor Pro Tern Plocher stated he would call Rosati's to discuss the discount and then get back to DeBord. Jackie Dearborn, city employee and member of the Green Committee, gave a report on the 3r Go Green Fair that was held on March 3, 2011. She stated that the event was a success with fifty participants, forty of which were venders; 500 entries for the computer drawing (laptop and desk top donated by Corp 2); II i The Minutes of the Regular Meeting of the City Council — March 8, 2011— page 7 the 2 nd Annual Art Fair; a group collecting electronic, etc. The Chamber of Commerce presented Yorkville with a "Green Business' designation. She reported on upcoming events such as Earth Hour on March 26, 2011 at 8:00 p.m., Green Night at Music Under the Stars with "green venders" in July and the Share and Care event in October. Alderman Spears asked what were "green venders ". Mrs. Dearborn explained that there are venders who represent green energy, bee honey, non -toxic cleaning products, etc. Alderman Werderich stated he attended the fair and that it was a good event and well attended. Mrs. Dearborn thanked everyone who helped with the event. Mark Johnson advised the City Council he was back attending meetings and trying to keep the City Council in line. He commented that there was not enough cuts made to the budget and that the City Council should cut some more. CONSENT AGENDA None. PLAN COMMISSION /ZONING BOARD OF APPEAL None. MINUTES FOR APPROVAL None. BILLS FOR APPROVAL A motion was made by Alderman Sutcliff to approve the paying of the bills listed on the Detailed Board Report dated March 1, 2011, totaling the following amounts: checks in the amount of $203,076.86 (vendors); $7,251.14 (payroll period ending 2/18/11); $219,631.42 (payroll period ending 2/26/11); for a total of $429,959.42 (total); seconded by Alderman Spears. Motion approved by a roll call vote. Ayes -8 Nays -0 Plocher -aye, Spears -aye, Munns -aye, Sutcliff -aye, Gilson -aye, Teeling -aye, Golinski -aye, Werderich -aye REPORTS MAYOR'S REPORT Park Naming Request — Marge Cline (CC 2010 -104) A motion was made by Mayor Pro Tern Plocher to table the Park Naming Request — Marge Cline until the alternate naming proposal is received; seconded by Alderman Gilson. Motion defeated by a roll call vote. Ayes -4 Nays -4 Munns -nay, Spears -aye, Plocher -aye, Werderich -nay, Golinski -aye, Teeling -nay, Gilson -aye, Sutcliff -nay A motion was made by Mayor Pro Tern Plocher to name the park Marge Cline; seconded by Alderman Sutcliff. Alderman Spears questioned why this was being rushed. Staff recommended tabling it because they are waiting for another request to come in. Alderman Werderich noted that this matter has been tabled for five months now and asked why staff was recommending tabling it. Administrator Olson gave a short history of why it had been tabled several times. He recommended it be tabled this time because another request is supposed to be submitted. The alternative name would be for renaming the western parcel of the property. The eastern parcel would be named Meinhardt per the land deed and the chute would be after Marge Cline. The three names would all be in the same geographical area. Alderman Sutcliff noted that the chute is open and being used and the Canoecopia event is coming up. She felt for marketing and economic development the chute should be named after Marge Cline. Alderman Gilson asked for clarification if this was to name the park or the chute after Marge Cline. Administrator Olson explained that it is to name the chute after her and this falls under the park naming program. Alderman Gilson noted that the information in the packet is confusing. Administrator Olson The Minutes of the Regular Meeting of the City Council — March 8, 2011— Page 8 stated that the proposal was not to name the entire park after her and he read from the original application to confirm this. Alderman Werderich felt the motion should be amended to be more specific; the chute is being named after Marge Cline. A motion was made by Alderman Werderich to amend the motion to name the whitewater chute after Marge Cline; seconded by Alderman Munns. Alderman Gilson asked for clarification that the alternate naming request is okay with naming the chute after Marge Cline. Administrator Olson stated they were. Alderman Golinski noted that there was not a majority vote from the Park Board for the Marge Cline name. He read from the park naming policy and because there wasn't a majority vote this should not be before the City Council. Administrator Olson disagreed with the interpretation. Motion to amend approved by a roll call vote. Ayes -5 Nays -3 Werderich -aye, Golinski -nay, Teeling -aye, Gilson -nay, Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye Alderman Golinski asked what Marge Cline did for Yorkville. Administrator Olson stated she did nothing specific for Yorkville but was a notable paddler who taught water safety. He stated that there was a marketing aspect to naming the chute after her. Alderman Golinski pointed out that her name does not meet the park naming criteria. Administrator Olson stated that this was discussed by the Park Board and three members who voted against the name agreed that the park should be named after someone dedicated to Yorkville. The conversation evolved around whether paddling safety outweighed the first criteria of the policy. Alderman Golinski felt the name should reflect the Yorkville area. Alderman Sutcliff felt the name Marge Cline would be a draw to Yorkville. If anyone googles her name, Yorkville will pop up. She noted that the chute was built by the IDNR not Yorkville so naming it after someone from Yorkville is selfish; naming it after a paddler known for safety fits the situation. Administrator Olson found his notes on the Park Board's discussion. Three members declined to support the naming request because they felt the state should name the chute. Another member felt that it should not be named after just one person especially with the number of fatalities at the dam. He indicated that the state does not want to name the chute themselves however they have policies for naming which he explained. If the city names the facility first they will defer to the name. Alderman Gilson suggested the city get public input on the name. He stated he would like to see the facility named after someone local. He suggested tabling it until this information could be collected. Alderman Werderich agreed with Alderman Golinski. He felt that the park should have a regional name for the entire facility that is identifiable with Yorkville. Motion to name the chute defeated by a roll call vote. Ayes -4 Nays -4 Plocher -nay, Werderich -aye, Golinski -nay, Teeling -aye, Gilson -nay, Sutcliff -aye, Munns -aye, Spears -nay Appointment to Cultural Commission — Richard Falato (CC 2011 -17) Mayor Pro Tem Plocher entertained a motion to approve the Mayor's appointment of Richard Falato to the Cultural Commission. So moved by Alderman Munns; seconded by Alderman Sutcliff. Alderman Sutcliff commented that Mr. Falato deserved to be on the commission due to all his contributions to the community. Mayor Pro Tem Plocher agreed. Motion approved by a roll call vote. Ayes -7 Nays -0 Spears -aye, Plocher -aye, Werderich -aye, Teeling -aye, Gilson -aye, Sutcliff- -aye, Munns -aye Alderman Golinski was not present for the vote. The Minutes of the Regular MeetinLy of the City Council — March 8, 2011— cage 9 Riverfront Park Conceptual Site Design (CC 2011 -19) Mayor Pro Tem Plocher entertained a motion to approve the conceptual design of Riverfront Park for public display. So moved by Alderman Sutcliff; seconded by Alderman Werderich. Administrator Olson explained that this is not for a grant application however staff would like to finalize the park plan for the grant cycle. Alderman Gilson questioned the labor figure. City Park Planner Schraw explained that the labor figure is due to the request by the Park Board as to what the overall project would cost. There is one conceptual- design and its priority elements are outlined. Administrator Olson added that labor will be part of a grant match as well as land. Alderman Golinski asked what an outcropping on the plan was. Mrs. Schraw explained that it was a concrete area that is underwater during high flow times. It is not a designated path area. Motion 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 Hopkins Park— RTP Grant Authorization (CC 2011 -20) Mayor Pro Tem Plocher entertained a motion to approve a grant submission to the Federal Recreational Trails Program for Hopkins Park and authorize staff to take such action as necessary to submit the grant and also authorize the Mayor and City Clerk to execute the Certification Statement. So moved by Alderman Gilson; and seconded by Alderman Werderich. Alderman Gilson clarified that the city's only cost would be labor. Administrator Olson stated that this was correct. Mrs. Schraw added that $24,000.00 is the labor from staff to clear a path, apply mulch, etc. The grant will allow the purchase of mulch. Administrator Olson stated that the application date has passed however staff is still preparing the paperwork. Motion approved by a roll call vote. Ayes -8 Nays -0 Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -aye Youth Baseball Agreements (CC 2011 -21) Mayor Pro Tem Plocher entertained a motion to approve a field use agreement between the city and Yorkville Youth Baseball /Softball Association (YYBSA) and authorize the Mayor to execute and the Yorkville Travel Sports and the Yorkville Reds. So moved by Alderman Gilson; seconded by Alderman Werderich. 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 Fiscal Year 2012 Budget (CC 2011 -22) Mayor Pro Tem Plocher noted that it was 10:00 p.m. He suggested limiting discussion to 11:30 p.m. He opened the floor for discussion. Administrator Olson started to go over the budget where the Council left off at the Special City Council Budget meeting: Water Fund • Page 102 — There is a small surplus in the ending balance for this year and next however it will be depleted over the next two years due to the debt service balloon payment and the Route 47 improvements. • Page 103 — The income from property tax, the result of the City Council's decision to let the bond revert to property taxes, is reflected on this page. This allows the funding for the Route 47 improvements without additional borrowing. Water sales have increased and water revenues are meeting operations. The issue with the water fund is on the capital side which means the Water Infrastructure Fee is still needed. It shows $600,000.00 revenue moving forward over three years. The Minutes of the Regular Meeting of the City Council — March 8, 2011— page 10 The Water Infrastructure Fee sunsets on April 30, 2011 so the City Council will have to decide to keep this in place or not. Staff is recommending it remain in place. There is miscellaneous revenue from rental income from the cell phone antennae on the water towers. In the planning stage is an additional lease agreement. • Page 104 — Training and conferences in this fund are related to water licenses which require continuing education classes. Nothing has really changed from the previous year except that it is anticipated that electricity will be going up. The bid for NIl�IEC came in $.01 lower for the pumping facilities and the bid was authorized by the Finance Director. The floor was opened for questions. Alderman Gilson stated that he had a print out from Director Fredrickson that has different numbers when compared to the debt service numbers on page 103. He asked why the difference. Director Fredrickson explained that when he did the print out he did not know there was money held in escrow for the debt service bond. He stated that he would send Alderman Gilson an updated debt service schedules. Alderman Gilson noted that the trend on the ending fund balance equivalent is downward and he asked what is being done to get this into the 24 -26 percentiles. Administrator Olson explained that after 2014 there will be no Route 47 cost and most of the debt service will be paid. As long as the city has no new water towers or water mains, this should automatically increase. Alderman Golinski questioned if the salaries were for four employees. Director Dhuse clarified that this was for five employees and part of his salary. Alderman Golinski noted that it reflected four employees. Director Fredrickson stated he would correct this. I Alderman Spears clarified that all the training and conferences were mandatory and Director Dhuse stated they were required per the Illinois Environmental Protection Agency Sewer Fund • Page 106 — This is similar to the Water Fund; there is revenue from property tax, the result of the City Council's decision to let the bond revert to property taxes. This is shown going forward. The fund balance equivalent is high. Long term assets have been removed so this is a cash number. The water and sewer funds, as well as other funds, draw from the same bank account so there are overlapping budgetary funds. So when one is at a deficit another one is at a surplus. The interfimd receivables reflect this. Money from the general fund can be transferred to this fund however the general fund is showing a deficit. Also, he would recommend against this practice because it is an enterprise fund and should be self maintaining. • Page 109 — The first three accounts are related to the bonds. The middle entry is for the Rob Roy Creek Interceptor bond and off the page is the 2008 bond for the refinancing of the Rob Roy Creek sewer debt which cost an additional $1 million in interest. • Page 110 — The sewer maintenance fee is what is collected through the water bills. The sewer infrastructure fee is what the City Council defeated but is not necessary until 2014. The $300,000.00 could be collected from residents at a cost of $2.50 /month/account via water bills. There are no other revenues. • Page 111— Salaries (three employees and part of the director's salary) come out of this fund as well as training and conferences for waste water credits. A small amount is being allocated to the expansion of the sewer due to the Route 47 improvements. There are no other expenses. • Page 112 — these are all bond payments. The floor was opened for questions. Alderman Gilson had the following questions: • Why is the projected amount for salaries, on page 111, the same each year? He thought the city lost employees in this department. Administrator Olson stated that that no employees were lost; one is paid out of the water fund. • What is the $20,000.00 for the Route 47 expansion? Administrator Olson explained that this was a capital outlay on page 111. • Why is there an increase in office supplies? Administrator Olson based this figure on spending trends and he overestimated the amount. • What are shop supplies? Director Dhuse explained that this is for welding tanks, air hose, etc. • What are small tools? Director Dhuse explained these are tools like pipe wrenches, etc. • Why does the amount for supplies fluctuate? Director Dhuse explained that this is due to things like gravel whose price fluctuates. The Minutes of the Regular Meeting of the City Council — March 8, 2011— page 11 • Why the increase in computers? Director Dhuse explained that the department hasn't replaced computers in awhile. This has been added to the budget as a precautionary measure and won't be spent unless necessary. There were no further questions or comments. Due to the late hour, the City Council decided to postpone any further discussion until the next meeting. CITY COUNCIL REPORT None. CITY ATTORNEY'S REPORT Attorney Orr reported that the city won the LayCom suit so the attorneys went ahead and petitioned for attorney's fees. She reported that the city won the petition and she read from the ruling. She stated that Centex did not get their attorney fees and the developer is now appealing. CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT No report. CITY ADMINISTATOR'S REPORT No report. DIRECTOR OF PARKS & RECREATION'S REPORT No report. FINANCE DIRECTOR'S REPORT No report. CITY ENGINEER'S REPORT City Engineer Wywrot reported that Car Care would be getting their certificate of occupancy this Friday. DIRECTOR OF PUBLIC WORKS REPORT No report. CHIEF OF POLICE'S REPORT No report. COMMUNITY DEVELOPMENT DIRECTOR REPORT No report. COMMUNITY RELATIONS OFFICER'S REPORT No report. COMMUNITY & LIAISON REPORT Kendall County Food Pantry Alderman Gilson reported that he visited the Kendall County Food Pantry and it was quite an experience. The food pantry has been operating for twenty years and is supported 100% by donations or grants. There is no paid staff, 110 volunteers pick up food and deliver it to the facility. The building they are using has been gifted to them for three years. The owner pays for the building and taxes while local churches and others help with the utilities. The PADS program developed because of the pantry. Due to the number of homeless children in Yorkville (ninety), the pantry is now hoping to fund a project called "Brown Bag" which will provide lunches for kids over the summer. Project "Stand by Me" will help fund the lunches. Maria Spaeth, director of the pantry, is asking to partner with the city on an event that highlights both the food pantry and the city. She would like the City Council to attend the "Stand by Me" event and to encourage others to attend. She also asked if the city could donate something identifying Yorkville for the auction. Alderman Gilson stated that he visited the pantry on a "slow" day and was shocked to see how many people were there. He played the food pantry's "Stand by Me" video. The Minutes of the Regular Meeting of the City Council — March 8, 2011— page 12 COMMITTEE REPORTS PUBLIC WORKS COMMITTEE REPORT CMAQ Grant Application (PW 2011 -14) A motion was made by Mayor Pro Tern Plocher to approve a grant submission for the US Route 34 Shared -Use Trail and authorize the Mayor and City Clerk to execute the Transportation Control Measure Committal Agreement; seconded by Alderman Mums. Alderman Golinski asked if there was a penalty associated with this grant. Mrs. Schraw stated there wasn't. She explained that the grant was for the next five years and could be used for the Route 34 trail because no federal funds are involved in the project. She hoped the grant would be awarded in the 2014 /2015 grant cycle. Alderman Gilson asked if this was for one project with the city's portion being $172,000.00. Mrs. Schraw explained that this is an 80/20 grant so the city's portion is $214,000.00 which could be reduced depending on IDOT funding. She went over the cost of the project and costs. Alderman Gilson asked if this was in the budget. Administrator Olson stated that is was not because the project is dependent on City Council approval to fund. Motion approved by a roll call vote. Ayes -6 Nays -2 Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye, Werderich -aye, Golinski -aye, Teeling -aye, Gilson -nay ECONOMIC DEVELOPMENT COMMITTEE REPORT No report. PUBLIC SAFETY COMMITTEE REPORT No report. ADMINISTRATION COMMITTEE REPORT No report. ADDITIONAL BUSINESS None. EXECUTIVE SESSION Mayor Pro Tern Plocher entertained a motion to go into Executive Session for the purpose of discussing collective negotiating matters between the public body and its employees or their representatives, or deliberations concerning salary schedules for one or more classes of employees. So moved by Alderman Werderich; seconded by Alderman Teeling. Motion approved by a roll call vote. Ayes -8 Nays -0 Spears -aye, Plocher -aye, Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye, Mums -aye The City Council entered Executive Session at 10:50 p.m. The City Council returned to regular session at 11 :07 p.m. ADJOURNMENT Mayor Pro Tem Plocher entertained a motion to adjourn the meeting. So moved by Alderman Spears; seconded by Alderman Teeling. Adjournment of the meeting was unanimously approved by a viva voce vote. Meeting adjourned at 11:07 p.m. Minutes submitted by: Jacquelyn Milschewski, Qk Clerk City of Yorkville, Illinois III REGULAR CITY COUNCIL MEETING March 8, 2011 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: r reem ►lei 0 k a r COL f 0 'e- , VNI UtvE SIGNIN REGULAR CITY COUNCIL MEETING Public Comment March 8, 2011 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: U I i/v w v � M 1 SIGNIN 3/08/2011 United City of Yorkville FY 12 Budget Public Hearing City Council March 8, 2011 Budgets are... A moving target An estimate A tool with limitations Presented by the Mayor, Budget Officer (City Administrator) and Finance Director Approved by City Council 3/08/2011 How to read the budget Each fund or department has a summary sheet Each fund or department has detailed line -items behind their summary sheet Seven vertical columns, representing six fiscal years FY 11 has the original, approved budget amount and a projected column FY 12 proposed column is the budget to be approved by City Council FY 13 and FY 14 projected columns are informational, and used for long -term planning How to read the budget Budget narrative (N20 pages) included within City Council packet from February 26, 2011 and March 8, 2011 City Council meetings http:// www. yorkville. il. us /2011MinutesAgendasPackets.php. 1: 1 The big picture - General Fund Page 25 FY 2011 815 5S8,222 E.di.1 F..d BA... 1.219257 LOL939) L274,302 (505,246) 26U36 562.461 LIS0,693 $1,500 Fund Balance SLODO iE $0 pow The big picture 19 separate funds, all with their respective fund balance or fund balance equivalents General Fund Administration, Finance, Community Relations, Police, Engineering, Community Development, PW Streets, PW Health and Sanitation, and admin services functions 3/08/2011 The big picture Capital Funds Impact fees from developers pay for capital purchases Municipal Building Parks and Recreation Public Works Police The big picture Capital Funds City -wide capital Capital projects funded by the general fund Motor Fuel Tax Capital and maintenance projects related to streets that are funded by Motor Fuel Tax proceeds Debt service Capital projects that were funded throu h borrowing, and paid for by the general fund 3/08/2011 The big picture Enterprise Funds Water Sewer REC Center Special Revenue Funds Land -Cash Parks and Recreation Library The big picture Tax Increment Finance (TIFs) Fox Industrial Countryside Downtown SSAs -from defunct HOAs Sunflower subdivision Fox Hill subdivision 3/ 08/20 11 General Fund Revenues Page 26 -2$ (upper right hand corner) Up $220,000 from FY 11 projected Due to turnaround in sales tax, utility taxes, and implementation of the amusement tax One -time revenues have been moved out of the general fund! No new general fund revenue streams proposed t� � General Fund Expenses Summary Pages 28 through 56 Down N$550,000 from FY 11 projected budget Reduction a result of past personnel cuts and non - abatement of 2005A bond 3/08/2011 I General Fund Expenses `_ Items of note No new staff requests for next three years Depends on economic turnaround No wage increases for union and non -union employees Officers union has agreed Sergeants and Public Works contracts under negotiation No furloughs proposed this year Policy option General Fund Expenses Items of note Training and conferences proposed to be added back in for non - mandatory training Policy option Relatively small expense compared to mandatory training and entire budget Non- mandatory training has not occurred in three years Newly elected officials need training too! 3/ 08/20 11 General Fund Expenses Items of note Training and conferences proposed to be added back in for non - mandatory training Policy option Relatively small expense compared to mandatory training and entire budget Non - mandatory training has not occurred in three years Newly elected officials need training too! Motor Fuel Tax Fund Items of note Illinois Jobs Now! disbursements Downtown parking lot construction in FY 12 Part of the Route 47 expansion, coordinated � by the City but funded by the State Route 47 expansion No borrowing necessary out of this fund 3/ 08/20 11 Parks and Recreation Items of Note Refined budget proposal presentation at 3 -10 Park Board meeting General Fund transfer has been decreased from prior years Offering similar programs with fewer employees Land -Cash `� Items of Note Completion of parks, and reimbursements! Wheaton Woods Raintree Park B Riemenschneider Park Whispering Meadows Park New park projects should be associated with grants 3/08/2011 Tax Increment Financing Items of Note Fox Industrial TIF Fund Close out in FY 12 Countryside TIF Fund Developer in breach No expenses other than bond payments Downtown TIF Fund Route 47 expansion - related aesthetic improvements could be financed with borrowing that would be repaid by the Downtown TIF fund Debt Service Fund - Items of Note - Two bonds paid out of this fund 2004C bond is paid off in FY 13 2005A bond payment reverted to property taxes in FY 12 Policy option for the City Council going,, forward - to 1: 1 Capital funds - impact fees Items of Note Municipal Building Fund Impact fee revenue only Parks Capital Fund Impact fees go to pay off Public Works storage building on Wolf Street Specific public improvements to parks that were funded by developers Capital funds - impact fees Items of Note Police Capital Fund Impact fee revenues pay for police cars and other equipment Public Works Capital Fund Impact fee revenues pay for Public Works storage building on Wolf Street 3/08/2011 City -wide capital fund Items of Note Engineering impact fees pay for Engineering vehicles Road contribution impact fees pay for City roadway improvements Not many being received due to economic downturn, those that are dedicated to specific roads Final Hopkins Park payment - Water Fund Items of Note Will be discussed in depth by City Council at tonight's meeting 2007A bond payments revert to property taxes in FY 12 Water bonding fee is needed in FY 12 to meet debt obligations and pay for water improvements related to Route 47 expansion without borrowing Water bonding fee can be eliminated if we get 200 new housing starts in FY 12 Estimating 35 3/08/2011 Sewer fund Items of Note Will be discussed in depth by City Council at tonight's meeting 2004B, 2005D, 2008 bonds revert to property taxes in FY 12 Sales tax referendum? 1,300 new housing starts? 600 acres of green -field development? Debt payments increase through 2016 Sewer bonding fee discussed by Council (and defeated) a few weeks ago is not needed until FY 14 REC Center Items of Note Refined budget proposal to be discussed at 3 -10 Park Board meeting Initial term of lease- purchase agreement ends June 2013 Notice due to landlord of intent to renew, decline, or purchase due on December 2011 Budget deficits shown throwgh FY 14, but many different options are being discussed by the Park Board and City Council 3/08/2011 Library budget Items of Note Approved by Library Board in summer zolo Library Board is discussing FY 1Z revised budget, FY 13, and FY 14 budgets at 3 -14 board meeting Budget policy options Pages 18 through ZO (top right corner) To be discussed by City Council later tonight Digital billboards, zip lines, cell towers, 6% telecommunications tax, senior garbage subsidy, interns, iPads, vehicle stickers, selling buildings, and more! 3/08/2011 City Council Public Hearing Next steps: Public comment tonight Presentation on water fund, sewer fund, and policy options tonight City Council meetings for deliberation and /or adoption March 22 - 7:00 pm April 12 - 7:00 pm April 26 - 7:00 pm (must be approved by this date) City Council Public Hearing Your comments are important!