City Council Minutes 2008 11-25-08 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, NOVEMBER 25, 2008.
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 Allen Present
Werderich Absent
Ward II Golinski Present
Plocher Present
Ward III Munns Absent
Sutcliff Present
Ward IV Besco Present
Spears Present
Also present: City Clerk Milschewski, City Treasurer Powell, City Attorney Orr, City Administrator
McLaughlin, Assistant City Administrator Olson, Finance Director Mika, Public Works Director Dhuse,
Police Chief Martin, Police Lieutenants Hart & Schwartzkopt Director of Park & Recreation Mogle,
Community Development Director Miller, Public Relations Officer Spies and City Engineer Wywrot.
OUORUM
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 Spears asked that Item #5 - Ordinance Amending Code of Ordinances, Chapter 11, Signs,
Regarding Wind Feathers and Item #6 - Resolution Approving a Municipal Green Building Initiative be
removed from the consent agenda and placed on the regular agenda under the Administration Committee
Report.
Alderman Plocher asked that Item 47 - Resolution Approving a Special Events Liquor Consumption
Policy be removed from the consent agenda and placed on the regular agenda under the Administration
Committee Report.
Amendments approved unanimously by a viva voce vote.
COMMITTEE MEETING DATES
Public Works Committee 6:00 p.m., December 16, 2008
City Hall Conference Room
Economic Development Committee 7 :00 p.m., December 2, 2008
City Hall Conference Room
Administration Committee 6:30 p.m., December 11, 2008
City Hall Conference Room
Public Safety Committee 6:00 P.M., December 29, 2008
City Hall Conference Room
*Alderman Spears noted that the committee may not have a quorum on this date so the meeting may be
rescheduled.
PRESENTATIONS
Hometown Hero — John Najdzion
Mayor Burd explained that the city has a program to honor local veterans and Lieutenant Larry Simmons
of the Bristol - Kendall Fire District nominated John Najdzion for the award. Mr. Najdzion is a ten -year
resident of Yorkville who served in Kuwait and Iraq. He completed 100 missions with his team which
made sure convoys made it to their destination. Mayor Burd read the nominating letter presented Mr.
The Minutes of the Regular Meeting of the Citv Council — November 25. 2008 — na L22
Najdzion with a Certificate of Recognition in honor of his bravery and commitment in serving his
country.
PUBLIC HEARINGS
Tag Levy
Administrator McLaughlin explained that the state requires a public hearing before the property tax levy
is set. He stated that the City Council reviewed the options related to setting a numeric value to the levy
and has restricted it to reflect the amount of increase in assessed valuation in the city and the state set cost
of living adjustment for property tax. The number before the Council is a proposed number because
Kendall County has not finished its process for the total assessed valuation. The City Council has
selected $3,277,576.00 for the corporate and special purpose property taxes. This amount may be lower
after the County finishes its calculations.
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Mayor Burd invited public comment on the tax levy; there was none. There were no comments from the
City Council.
CITIZEN COMMENTS
None.
CONSENT AGENDA
1. Resolution 2008 -43 - Releasing Closed Session Minutes — authorize Mayor and City Clerk to
execute (CC 2008 -91)
2. Monthly Treasurer's Report for September 2008 (ADM 2008 -93)
3. Annual Treasurer's Report for FY 2008 (ADM 2008 -94)
4. Resolution 2008 -44 - Authorization to Close Money Market Account and Transfer Funds —
authorize Mayor and City Clerk to execute (ADM 2008 -95)
5. Children of America Daycare — Plat of Easement — authorize Mayor and City Clerk to execute
(PW 2008 -140
6. Tuscan Plaza — Bond Expiration — allow Employer Mutual Casualty Company Bond No. S36 -76-
07 to expire (PW 2008 -141)
7. Fox Hill Unit 7 — Letter of Credit Expiration - allow City Clerk to call Letter of Credit if it is not
renewed prior to January 9, 2009 (PW 2008 -142)
8. Prairie Gardens Subdivision — Letter of Credit Reduction #4 — authorize reduction in an amount
not to exceed $196,582.51 subject to verification that the developer has no outstanding debts
owed to city (PW 2008 -143)
9. McVickers Development — Final Acceptance and LOC Reduction #3 — accept public
improvements as described in the bill ofsale for ownership and maintenance and authorize a
Letter of Credit reduction in an amount not to exceed $22,073.44, subject to verification that the
developer has no outstanding debts owed to city (PW 2008 -144)
10. Shops at Veteran's Parkway — Construction Guarantee Releases — allow STC Capital Bank Letter
of Credit No. 4307000339to expire and release Weiss Insurance Agency Bond No. 70147861 in
its entirety, both subject to verification that the developer has no outstanding debts owed to city
(PW 2008 -145)
11. Subordination of Surface Rights — Route 47 at Wheaton Avenue — authorize Mayor and City
Clerk to execute (PW 2008 -146)
12. Ordinance 2008 -100 - Amending City Code Regarding No Parking Areas at the Intersection of
John Street and Sycamore Road — authorize Mayor and City Clerk to execute (PW 2008 -148)
Mayor Burd entertained a motion to approve the Consent Agenda as amended. So moved by Alderman
Allen; seconded by Alderman Golinski.
Motion approved by a roll call vote. Ayes -6 Nays -0
Golinski -aye, Plocher -aye, Spears -aye, Sutcliff- -aye, Allen -aye, Besco -aye
PLAN COMMISSION /ZONING BOARD OF APPEAL
Director Miller reported that the next Zoning Board of Appeals meeting was scheduled for December 3,
2008 and the next Plan Commission meeting would be December 7, 2008.
MINUTES FOR APPROVAL
None.
BILLS FOR APPROVAL
A motion was made by Alderman Golinski to approve the paying of the bills listed on the Detailed Board
Report dated November 21, 2008 totaling the following amounts: checks in the amount of $992,664.49
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The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — naee 3
(vendors); $270,910.21 (payroll period ending 11/08/08); for atotal of $1,263,574.70; seconded by
Alderman Sutcliff.
Alderman Spears questioned the following:
• Page 16 — Kaneville Tree Farm — Comm/Relations — tree for Town Square Park in the amount of
$375.00. Mrs. Spies explained that the tree bought last year for the holiday event died and this is
a replacement.
• Page 17 — Kendall County Fair Assoc. — Administration Committee - Smith Hall Rental in the
amount of $400.00. Mayor Burd explained that this was for the rental of the hall at the Kendall
County fairgrounds used for the recycling event.
• Page 17 — Kendall County Food Pantry — Water Op — Food Pantry Donations in the amount of
$253.00. Alderman Spears asked that in the future this item be noted as resident's donation.
Director Mika stated that she would see that this is done.
• Page 19 — Lifeskills Consulting — Admin People Map Workshop for seven people in the amount
of $875.00. Alderman Spears questioned who the seven people were. Administrator McLaughlin
stated that six elected officials signed up for the workshop but only four attended and he has the
materials for the other two. He also attended the workshop.
• Page 19 — Martin Plumbing — Water Op — replace water meter — Hillside Nursing Home in the
amount of $248.00. Director Dhuse explained that the water department needed to hire a plumber
to re- solder a water meter.
Motion approved by a roll call vote. Ayes -6 Nays -0
Plocher -aye, Spears -aye, Sutcliff -aye, Besco -aye, Golinski -aye, Allen -aye
REPORTS
MAYOR'S REPORT
Appointment of Zach Frisch to Library Board
(CC 2008 -92)
Mayor Burd entertained a motion to approve an appointment of Zack Frisch to the Library Board. So
moved by Alderman Sutcliff; seconded by Alderman Allen.
Alderman Spears asked who resigned from the Library Board and Mayor Burd stated that Ashley Meyers
resigned.
Alderman Sutcliff stated that she looked over Mr. Frisch's resume and felt it would be great to have
someone younger, with fresh ideas, on the Board. She felt it was admirable that Mr. Frisch has dedicated
so much time in volunteering.
Alderman Allen stated that he spoke with current members of the Library Board and they are excited to
have a man in the group.
Motion approved by a roll call vote. Ayes -6 Nays -0
Spears -aye, Plocher -aye, Golinski -aye, Besco -aye, Allen -aye, Sutcliff -aye
Proclamation for National Drunk and Drugged Driving (3D) Prevention Month
(CC 2008 -93)
Mayor Burd read a proclamation for National Drunk and Drugged Driving (3D) Prevention Month (see
attached).
Ordinance 2008 -101 Designating United City of Yorkville Countryside Center Business District
And Imposing a Retailers' Occupation Tax and Service Occupation Tax Therein
(CC 2008 -94)
Mayor Burd entertained a motion to approve an ordinance designating United City of Yorkville
Countryside Center Business District and Imposing a Retailers' Occupation Tax and Service Occupation
Tax Therein and authorize the Mayor and City Clerk to execute all documents. So moved by Alderman
Besco; seconded by Alderman Allen.
Motion approved by a roll call vote. Ayes -6 Nays -0
Plocher -aye, Golinski -aye, Besco -aye, Allen -aye, Sutcliff -aye, Spears -aye
The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — nacre 4
CITY COUNCIL REPORT
Request for Donations for Charitable Organization on City's Utility Statements
(CC 2008 -95)
Alderman Spears noted recently there was a blurb put on the city's utility bills regarding a $1.00 donation
to the Kendall County Food Pantry. The addition of this information on the bill was never discussed by
any City Council committee however it was discussed by the Human Resource Commission. The City
Council previously discussed this matter but no recommendation was made. She stated that she received
calls from two charitable organizations asking how they could get their information on the water bill.
Staff calculated the cost to put this information on the bills and to collect the donations to be
approximately $10.00/hour of staff labor and $.19 /check. Alderman Spears questioned if the service
should be continued and if so how it would be determined which charities could use it. She also
expressed her concern that the service was using taxpayer's funds to administer it.
Alderman Sutcliff stated she was unsure how the charity was chosen but felt it was a great charity to
benefit from the service. She noted that the reason for changing the water bills from a postcard format
was so that the city would be able to communicate with residents in a cheap manner. She did not have a
problem spending $10.19 in order to raise about $250.00 for the Food Pantry. She felt that this was a
great way of communicating with residents. She questioned the proper channels in developing a policy.
Attorney Orr explained that putting this request on the water bill was the same as putting any request out
on city stationery. She stated that this was not an unusual thing to do however the City Council could
develop a policy for anything and she did not see any prohibition in regards to this.
Alderman Besco agreed that the format was changed to get information to residents. He was concerned
that there could someday be a conflict if there was some information that the city needed to get out and
there wouldn't be enough room for the charitable organization information that was time sensitive. He
felt it wasn't an issue sending the matter back to the Administration Committee in order to develop a
policy.
Alderman Allen stated he supported helping people in anyway and was not against the city's expenditure.
He stated he respected the mayor's decision to support the Food Pantry.
Alderman Gohnski agreed that the Food Pantry was a worthy cause however he questioned where the city
drew the line.
Mayor Burd explained that city staff helped the "Hop on the Bus" fund raiser for school supplies for
needy children. She noted that Alderman Spears asked at a City Council meeting for donations for
Special Olympics. She felt the discussion wasn't about collecting for charities but who decides which
charities. She stated that she felt the mayor had the authority to make the decision and it did not cost a lot
to do. She explained that the Food Pantry was not funded by the county and is in dire need. She further
explained that the Human Resource Commission did not consider the information on the bill; she told
them she was putting the information on the water bills.
Alderman Spears noted that she brought to the Council's attention that Meals on Wheels was losing
drivers and that homebound residents were losing meals. She stated that Meals on Wheels is a worthy
organization. She felt the City Council should have been able to choose the organization and she
questioned how one is picked over another.
Mayor Burd replied that she has asked staff to place information on Meals on Wheels on a future water
bill. She stated that the aldermen can bring forward any organization to place on the bill and she
suggested the organization be put on an agenda and voted on.
Alderman Golinski stated that the Food Pantry, United Way, etc. are all good organizations and he
suggested an additional sheet in the water bill to list the groups.
Alderman Spears requested that a policy addressing charitable or ganizati ons be placed on the
Administration Committee agenda for further discussion.
ATTORNEY'S REPORT
No report.
CITY CLERK'S REPORT
No report.
The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — Dage 5
CITY TREASURER'S REPORT
Police Pension Annual Report
(CC 2008 -96)
Treasurer Powell, in accordance with state statute, presented the annual report of the Police Pension Fund
(see attached).
Alderman Allen questioned the funding ratio and number of individuals contributing. Treasurer Powell
gave a brief history of the pension fund and explained that there was a change in calculation due to a
change in the Illinois Municipal Retirement Fund (EIVW). If the fund is under $2.5 million only 10% is
applied however when the fund exceeds $2.5 million investments can be made in the equity market. The
fund exceeded this limit in June 2008. He also explained that all the police employees contribute and
that the number of active employees indicated on the report was based on last years numbers.
CITY ADMINISTATOR'S REPORT
No report.
FINANCE DIRECTOR'S REPORT
No report.
DIRECTOR OF PUBLIC WORKS REPORT
Director Dhuse reported that leaf pickup was complete and that 1110 cubic yards of leaves were
collected. Alderman Spears noted that there are still leaves in the streets and Director Dhuse stated that
residents will need to bag them and dispose of them as yard waste.
CHIEF OF POLICE'S REPORT
Chief Martin reported that on December 1, 2008 from 11:00 a.m. to 5:00 p.m. there would be a BASSET
class held and the Chamber of Commerce would be providing a meal to those attending. Anyone with a
liquor license is required to take the class.
DIRECTOR OF PARKS & RECREATION'S REPORT
Director Mogle reported that over 200 people participated in the Chili Chase on Sunday, November 23,
2008. He also reported that the Polar Express was completely sold out with a waiting list.
COMMUNITY DEVELOPMENT DIRECTOR REPORT
Director Miller reported that on December 4, 2008 at 7:00 p.m. at the library there would be a public
meeting for input on the Integrated Transportation Plan.
COMMUNITY RELATIONS OFFICER'S REPORT
Mrs. Spies reported that former Yorkville mayor, Eldon Madden, was recently featured in a magazine
article. She also reported that the Holiday Under the Stars event would be held on December 5, 2008 at
Town Square Park. Local businesses are supplying volunteers and local community groups will be
selling food. The Human Resource Commission will be collecting hats, gloves, etc. The event will be
bigger than last years including the ice skating rink.
COMMUNITY & LIAISON REPORT
KenCom Board
Alderman Spears reported that she attended the KenCom Executive Board Meeting on November 20,
2008. Items discussed were the second phase of the personnel and space needs study and funding
options. Alderman Spears stated that the city's cost could increase to $50,000.00 for a year. She asked
the city to place this amount in contingency.
Human Resource Commission
Alderman Spears reported that she attended the Human Resource Commission meeting on November 19,
2008. Items discussed were the historic street naming program, repealing the sponsorship policy (which
they recommended), the transfer of the $1,200.00 in the sponsorship fund to the street naming fund and
street signs for the historically named streets. Alderman Spears stated that she did not recommend the
transfer of the sponsorship funds because it would not cover the entire cost of the signs needed. Mayor
Burd asked Alderman Spears just to give a report and not her opinion.
Kendall County Food Pantry
Alderman Spears reported that Barb Michaels has been approved to serve on the Food Pantry board.
Green Committee
Alderman Allen reported that he attended the Green Committee meeting. He was unable to stay for the
entire meeting but felt it was a good group. Mayor Burd added that the group discussed several initiatives
for the near future such as encouraging businesses from using plastic bags and becoming a Tree City.
They will bring more information to the City Council in the future.
The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — rage 6
School Board
Alderman Sutcliff reported that she attended the School Board meeting where she communicated
information about the Integrated Transportation Plan. The Board was pleased to get the information and
Dr. Brennert asked if existing street signals could be retrofitted with pedestrian signs.
COMMITTEE REPORTS
PUBLIC WORKS COMMITTEE REPORT
No report.
ECONOMIC DEVELOPMENT COMMITTEE REPORT
No report.
PUBLIC SAFETY COMMITTEE REPORT
No report.
ADMINISTRATION COMMITTEE REPORT
Approving the Revision of the 2008 -2009 Fiscal Year General Budget
(ADM 2008 -97)
A motion was made by Alderman Golinski to approve an ordinance approving the revisions of the 2008-
2009 Fiscal Year General Fund Budget and authorize Mayor and City Clerk to execute; seconded by
Alderman Plocher.
Alderman Plocher suggested tabling the approval of the ordinance for two weeks until all the City
Council members are present for discussion.
A motion was made by Alderman Plocher to table the approval of the ordinance until the next City
Council meeting; seconded by Alderman Allen.
Motion approved by a roll call vote. Ayes -4 Nays -3
Sutcliff -aye, Spears -nay, Plocher -aye, Golinski -nay, Besco -nay, Allen -aye, Burd -aye
Reverse Employee Feedback Form
(ADM 2008 -95)
Administrator McLaughlin explained that this item had been on an Administration Committee agenda.
Staff looked at the feedback form and agreed it would be useful to use along with employee reviews.
Chief Martin stated that the form could be used to take information back to supervisors. Director Mika
suggested that references to the Chief of Police and Director of Parks and Recreation be added to the
wording to reflect the division of the staff. Administrator McLaughlin indicated that the form, with
suggested revisions, would be going back to the Administration Committee.
Ordinance 2008 -102 Amending the Code of Ordinances — Chapter 14
Pollution Control Facility Siting
(ADM 2008 -78)
A motion was made by Alderman Golinski to approve an ordinance amending the Code of Ordinances
regarding Chapter 14 — Pollution Control Facility Siting and authorize Mayor and City Clerk to execute;
seconded by Alderman Allen.
Mayor Burd noted that there are several items in the present ordinance that needed to be amended
quickly. The items address the appeal process and indicate that the person making an appeal is
responsible for paying for it.
Alderman Besco suggested that other communities in Kendall County be contacted and asked to contact
the Kendall County Board regarding amending their ordinance.
Motion approved by a roll call vote. Ayes -6 Nays -0
Allen -aye, Sutcliff -aye, Spears -aye, Plocher -aye, Golinski -aye, Besco -aye
The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — nagg 7
Ordinance 2008 -103 Amending Code of Ordinances, Chapter 11
Signs, Regarding Wind Feathers
(ADM 2008 -96)
A motion was made by Alderman Golinski to approve an ordinance amending the Code of Ordinances,
Chapter 11, Signs, regarding Wind Feathers and authorize Mayor and City Clerk to execute; seconded by
Alderman Sutcliff.
Alderman Spears reported that the Administration Committee decided that the signs should be solid
colors, have no printing; should not be plastic, etc. She stated that she recently was in Naperville and they
allow wind signs. She stated that the purpose of the signs is to advertize and the changes make the wind
flags useless. She felt the changes to the ordinance did not support local businesses. Alderman Allen
asked for clarification that the amendment states the wind feathers have to be solid. Alderman Spears
read the criteria from the amendment.
Mayor Burd stated that the amendment was suggested to address the local business who is making the
wind feathers and who displays plain flags. She stated that when the flags tip over to advertizing, they
fall under signs and staff felt they should conform to regulations.
Director Miller went over page 6, Section 8 -11 -5, Item S which allows for wind feathers with logos. He
also noted pages 12 — 14, Section 8 -11 -10 allows the temporary use of the feathers which is not to exceed
thirty days. There is a $25.00 fee for the thirty -days and the term is renewable with another $25.00 fee
being charged. He suggested that at the time of renewing, the signs could be inspected for condition (no
rips, fading, etc).
Alderman Spears did not agree with the fee because it was not working with local business. She
recommended checking with Naperville as to their policy on wind feathers. There was some discussion
on fees, limits to the use of the signs and control over the signs. It was decided to amend the renewal fee
to $5.00 and to research other community's approach to the signs.
A motion was made by Alderman Spears to amend the renewal fee to $5.00; seconded by Alderman
Besco.
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Motion to amend approved by a roll call vote. Ayes -6 Nays -0
Golinski -aye, Besco -aye, Allen -aye, Sutcliff -aye, Spears -aye, Plocher -aye
Alderman Sutcliff asked what it cost to have inspectors check the condition of the flags and she suggested
that the cost is covered by the fees. There was some discussion as to how to properly inspect the quality
of the signs.
Alderman Plocher suggested that another amendment be made to page 7, Section 8 -11 -6, Item D
regarding neon signs. Administrator McLaughlin noted that this issue is completely separate from the
issue at hand.
Motion approved by a roll call vote. Ayes -6 Nays -0
Spears -aye, Plocher -aye, Golinski -aye, Besco -aye, Allen -aye, Sutcliff-aye
Resolution Approving a Municipal Green Building Initiative
(ADM 2008 -73)
A motion was made by Alderman Golinski to approve a resolution approving a Municipal Green Building
Initiative and authorize Mayor and City Clerk to execute; seconded by Alderman Allen.
Alderman Spears had a question on page 1 regarding the design of public buildings. She asked if this
should be clarified to say United City of Yorkville public buildings. Administrator McLaughlin stated
that wording could be amended to reflect this.
Mayor Burd asked if a museum, not run by the city, would fall under this resolution and Administrator
McLaughlin stated that it was designed to address all city initiated buildings. If the school district or
other entity wished to build a public building, it would not apply. Alderman Allen noted that on page 3 it
states "all city owned new construction ".
A motion was made by Alderman Spears to amend the document to indicate United City of Yorkville
municipal buildings; seconded by Alderman Allen.
Motion to amend approved by a roll call vote. Ayes -6 Nays -0
Golinski -aye, Besco -aye, Allen -aye, Sutcliff -aye, Spears -aye, Plocher -aye
The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — na eg_8
Alderman Besco asked if the ordinance would apply to accessory buildings such as the Parks Department
uses. He felt it could make it unaffordable to build something like a concession stand. Administrator
McLaughlin noted that on page 3 under New Construction it indicates it applies to projects greater than or
equal to 5,000 square feet.
Mayor Burd questioned why the items listed on page three were not incorporated into the resolution. Mr.
Olson stated that the resolution refers to the attachment of page three however these items can be
incorporated into the resolution itself. Alderman Spears agreed with the mayor that the information
contained in the attachment should be in the body of the resolution.
Alderman Spears also expressed her concern with the renovation of buildings and that following this
resolution would make renovation projects too costly. Alderman Golinski asked for a definition of
renovation. He stated that the renovation of something like the City Council chamber could be affected.
Mayor Burd noted that a `bronze" rating for a city does not require that much extra effort. It covers
things like high energy lights. Higher ratings require more involved effort. She suggested the wording of
Section II of page three be amended to indicate renovations will be designed, constructed and certified at
a LEED Certified rating where practicable.
Alderman Besco cautioned the City Council about the resolution citing the recent acquisition of an
unfinished pole building. He felt the renovation could be costly. Mayor Burd stated that the renovation
would fall under the new wording she suggested. Alderman Besco felt that everyone supported the
imitative however "handcuffing" the city with this document was extravagant.
A motion was made by Alderman Sutcliff to amend the document the document by incorporating page 3
into the body of the resolution and by changing the wording as suggested by the mayor; seconded by
Alderman Allen.
Alderman Allen asked for clarification on the change of wording. Mayor Burd clarified that Section H
would read "All City owned renovation projects greater than or equal to 1,000 square feet shall be
designed, constructed and certified at a LEED Certified rating where practicable." Alderman Spears
asked who would determine what is "practicable ". Mayor Burd stated the City Council would.
Alderman Golinski noted that a future City Council could just repeal the resolution and build whatever
they want.
I
Alderman Sutcliff stated that the city becoming certified was discussed and it was suggested not going for
certification since the city has never done this before. The resolution can be adjusted as the city learns the
process.
Mayor Burd stated she supported passage of the resolution because the city will be asking future
commercial development for green designs and it should look at this for itself and lead the way.
Alderman Plocher requested that the document be cleaned up before a vote. He made a motion to table
the resolution for two weeks; seconded by Alderman Besco.
Motion approved by a roll call vote. Ayes -5 Nays -1
Allen -aye, Sutcliff- -nay, Spears -aye, Plocher -aye, Golinski -aye, Besco -aye
Resolution Approving a Special Events Liquor Consumption Policy
(ADM 2008 -90)
A motion was made by Alderman Golinski to approve a resolution approving a Special Events Liquor
Consumption Policy and authorize the Mayor and City Clerk to execute.
Alderman Plocher requested that the wording of the resolution, page 1 „ #1 be changed to "City employees
while being paid by the city are expressly prohibited from consuming alcohol at City planned, organized,
managed, or sponsored event for any time such person is working at the event.”
A motion was made by Alderman Plocher to amend the wording of the resolution; seconded by Alderman
Sutcliff.
Alderman Spears stated that the whole point of the resolution was because employees were drinking
while volunteering for the city and changing the wording as suggested by Alderman Plocher would defeat
the purpose of the policy.
The Minutes of the Regular Meeting of the Citv Council — November 25, 2008 — Dam 9
Mayor Burd clarified that employees and elected officials could drink while attending a city event but not
while volunteering on behalf of the city.
Alderman Plocher stated that he did not agree with the resolution. Alderman Sutcliff asreed and felt it
was out of line to place this regulation on volunteers. v
A motion was made by Alderman Spears to table the resolution until all the aldermen, especially those on
the Administration Committee, are present; seconded by Alderman Golinski.
Motion approved by a roll call vote. Ayes -6 Nays -0
Spears -aye, Plocher -aye, Golinski -aye, Besco -aye, Allen -aye, Sutcliff-aye
ADDITIONAL BUSINESS
Update Webpage
Alderman Spears requested that the city's webpage be cleaned up and updated as well as the city
information on the cable TV station. Mrs. Spies indicated that the sponsorship and volunteer information
was changed earlier in the day.
Grievance Information
Alderman Spears noted that there have recently been the legal bills due to grievances and felt she was
entitled to 100% disclosure of the grievances. She requested information on how many grievances were
covered by the $3,000.00 and how much was spent on each grievance. She stated that she was concerned
with the number of recent grievances. Mayor Burd stated she would have staff provide the information.
Thanksgiving Pies
Mayor Burd reported that the Silver Dollar Restaurant was asking for donations of pies for Thanksgiving
as they will be serving dinner to those in need. They are also looking for contributions of canned goods,
winter coats, etc. to be donated to those they are serving. These can be dropped off at the restaurant,
Library, Chamber of Commerce or Old Second Bank.
Adjudication Summary
Mayor Burd reported that Chief Martin prepared an adjudication summary which was distributed to the
City Council (see attached). The cost for five hearings and training is $3,275.00. The total collected from
the hearings has been $3,475.00 for a profit of $200.00. She noted that the training expense has been paid
by the fines collected.
EXECUTIVE SESSION
Mayor Burd reported that an executive session was needed. Attorney Orr explained that even though an
executive session was not on the agenda, it is legal to call one at any regularly scheduled meeting.
After conferring with Attorney Orr, it was decided that the executive session was not needed. Mayor
Burd shared information concerning a response from the Forest Preserve District regarding Hoover. The
Forest Preserve District offered the city its funds back and are open to giving the city an easement. They
are not offering the city any property. She asked the City Council to think about the Forest Preserve
District's offer so they can discuss the matter further.
ADJOURNMENT
Mayor Burd adjourned the meeting at 8:50 P.M.
Minutes submitted by:
Jacquelyn Milschewski,
City Clerk City of Yorkville, Illinois
REGULAR CITY COUNCIL MEETING
NOVEMBER 25, 2008
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1� ►��: °� UNITED CITY OF YORKVILLE.a ° CIA
e••-� Yw&unatwn °-ell
1a,lle + NATIONAL DRUNK AND DRUGGED DRIVING (3D) PREVENTION MONTH ;.. ee °/11,.�
1� ► ►� DECEMBER 2008 ": ►
/ ► ►,d -.�° fi e. j ► ►�,�
■• i f 1
WHEREAS, motor vehicle crashes killed 1,248 people in Illinois during 2007• and
►.�:.,. � '' °.._,ill'.,
WHEREAS, 434 of those deaths involved a,driver impaired by alcohol; and :e ,
;�
1;;; lil., .
WHEREAS, the December holiday season is traditionally one of the most deadly times of �•_� ►' � Ji
1 p1 the year for impaired driving; and e�'11111
,� -40 4 WHEREAS, for thousands of families across the state and the nation, holidays are a time,
p
Off 5*0Z
v
l,'1 ° ems to remember loved ones lost; and
1 11 ,
I ►► k- .i�
► ► ;;�`� ; WHEREAS, organizations across the state and the nation are joined with the You Drink & :l i
ell /e;-� : Drive. You Los and oer,cam ai ns that foster public awareness of the dangers of
' Y L th
I m. p g p g ;yep ° 1 1 11 1 ,!'
1! ► il; ; !� impaired driving and anti- impaired driving law enforcement efforts; and
11111 .•? WHEREAS, the community of the United City of Yorkville is proud to partner with the H oll i
Illinois Department of Transportation's Division of Traffic Safety and other traffic safety �` ° ; 0, !; A r;
,',►,►e,.. .•._t►U -iii
1�► ° � ' groups in that effort to make our roads and streets safer;e,h
l �
1 111e e � - - i l�l i ;�
�h r �' '
, NOW, THEREFORE, 1, Mayor Valerie Burd do hereby proclaim December 2008 as
► .►1 t
° ■_� ►fir
Il1'Vo Drunk and Drugged Driving (3D) Prevention Month in the United City of Yorkville and do
,'llllei,�— hereby call upon all citizens government agencies, business leaders, hospitals and health''.eell.!
p e l l
Jl 1 ONE: care providers, schools, and public and private institutions to promote awareness of the
_ ( ► .r- � - ;i ►111
�1,11'/ ; impaired driving problem, to support programs and policies to reduce the incidence of s !.
i,111;,e impaired driving, and to promote safer and healthier behaviors regarding the use of alcohol `e�;lllll °�k
►':r: =.• and other drugs this December holiday season and throughout the year. •ee ►4�
j �l 1'Pi Vii` /i1
111 /.... . ►- I ,
Ili►lr ` Dated this, 25 day of November, 2008, A.D. ~�� ° al �
10404 r ,7
ell ►e � :�, °,1,1
Valerie Burd, Mayor
'1 1,1 1 1/
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111 ►� +'_`i� UNITED CITY OF YORKVILLE �_ • 11
l � n 'i�ll►l►Il,l
111 ► � ► � �: J ~L��lll
11►Ih�O� NATIONAL DRUNK AND DRUGGED DRIVING (31)) PREVENTION MONTH •�;���11
I1 % •: DECEMBER 2008 ;! l i�,
' :�•� '�::�:►�
WHEREAS, motor vehicle crashes killed 1,248 people in Illinois during 2007; and
Bbl % ? .;dill
X 11 1 ►����� WHEREAS, 434 of those deaths involved a driver impaired by alcohol; and
11 1 1 1��r; - N - D�j
1 M ►� =; WHEREAS, the December holiday season is traditionally one of the most deadly times of��1 r
Ill ►� %.�? the year for impaired driving; and !%��'ll
►�,,: /;:; WHEREAS, for thousands of families across the state and the nation, holidays are a time
to remember loved ones lost; and
' N
�1 �� .
1 i - ' WHEREAS organizations across the state and the nation are joined with the You Drink &
� ►ij %�: %y��' I
)��:•; Drive, You Lose and other campaigns that foster public awareness of the dangers of
"I impaired driving and anti - impaired driving law enforcement efforts; and !i� j
to
i , Illl'� WHEREAS, the community of the United City of Yorkville is proud to partner with the %1 l
f111O
( 1 ► 1 ;�;; � Illinois Department of Transportation's Division of Traffic Safety and other traffic safety
1' (o ._•;'
1�'•� %•:: groups in that effort to make our roads and streets safer; •:.e ►�
111 /��..,j ,��1,1► �
11►;;� ?; NOW THEREFORE I Mayor Valerie Burd do hereby proclaim December 2008 as �;! l i ,
( ►i'.� %•:: Drunk and Drugged Driving (3D) Prevention Month in the United City of Yorkville and do ,91
111'0;x;
11 1 1 1 1 1����; hereby call upon all citizens, government, agencies, business leaders, hospitals and health -�11►
1;;• =.!? care providers, schools, and public and private institutions to promote awareness of the
� "iii °:''� ::i:►��
'��►►;:�:: impaired driving problem to support programs and policies to reduce the incidence of
k, k .:•111
1►1 impaired driving, and to promote safer and healthier behaviors regarding the use of alcohol ` �;Ilj►I „�
and other drugs this December holiday season and throughout the year.
�IIIIQi' ch
11 1;�'�`�� Dated this 25 day of November, 2008, A.D.
Valerie Burd, Mayor�,��.
Ill �'�•�� ..: •��1,' �
{� 1 ► .► ., ;, ,,
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REQUIRED REPORTING TO MUNICIPALITY BY PENSION BOARD
As of 4/30/2008 fiscal year end
(40 ILCS 5/3143) (from Ch. 108 1/2, par. 3143)
Sec. 3143. Report by pension board.
The pension board shall report annually to the city council or
board of trustees of the municipality on the condition of the
pension fund at the end of its most recently completed fiscal
year. The report shall be made prior to the council or board
meeting held for the levying of taxes for the year for which the
report is made.
1. Total Assets (cost): $ 2,156,872
Total Assets (market value): $2,156,872
2. Estimated receipts during the next succeeding fiscal year from:
Participant Contributions deducted from payroll $206,099
All other sources $248,988
3. Estimated amount required during the next succeeding fiscal year to:
(a) pay all pensions and other obligations provided in this Article $150,023
(b) meet the annual reauirements of the fund as provided in
Sections 3 -125 and 3 -127. $381,800
l 4. Total Net Income received from investment of net assets: $130,128
Assumed Investment Return: 7.50%
Actual Investment Return: 7.21%
Total Net Income received from investment of net assets (fye 4/30/2007): $27,399
Assumed Investment Return (fye 4/30/2007): 7.50%
Actual Investment Return (fye 4/30/2007): 2.04%
5. Total number of Active Employees that are financially contributing to the fund: 28
6. Disbursements to:
(i) Annuitants in receipt of a regular retirement pension
Total number of annuitants: 0
Total amount that was disbursed in benefits: 0
(ii) Recipients being paid a disability pension
Total number of annuitants 0
Total amount that was disbursed in benefits 0
(iii) Survivors and children in receipt of benefits
Total number of annuitants: 0
Total amount that was disbursed in benefits: 0
7. Funded ratio of the fund 37.7%
8. Unfunded Liability $3,571,850
9. Investment Policy of the pension board under the statutory investment
restrictions imposed on the fund. See attachment.
Certification
I, Larry Debord, President of the Police Pension Board, United City of Yorkville,
Kendall County, Illinois, do hereby certify that this document is a true and correct
copy of. "Required Reporting to Municipality By Pension Board" as outlined in
40 ILCS 5/3143.
Witness my hand this day of November, 2008.
i
Larry Debord
I
President of United City of Yorkville Police Pension Board
I
�I
I
MEMO
Date: November 12, 2008
To: Mayor Burd and the Yorkville City Council
From: William Powell, Treasurer
cc: Police Pension Board
Susan Mika, Finance Director
Subject: Required Reporting to Municipality By Pension Board
I have completed the attached "Required Report" which includes Larry Debord's
certification. Below are two remaining clauses of this statute that are directed to
the municipality. My comments are included for your consideration.
40 ILCS 5/3143 (a) Report by pension board
Before the pension board makes its report, the municipality shall have the assets
of the fund and their current market value verified by an independent certified
public accountant of its choice.
Wolf & Company provides the auditing services to both the City and Pension
Board; therefore, it is not necessary to seek additional verification by another
independent certified public accountant.
40 ILCS 5/3143 (b)
Publication:
The municipality is authorized to publish the report submitted under 40 ILCS 5/3-
143. This publication may be made, without limitation, by publication in a local
newspaper of general circulation in the municipality or by publication on the
municipality's internet website. If the municipality publishes the report, then that
publication must include all of the information submitted by the pension board
under 40 ILCS 5/3143 (a)1 -9.
The City reserves the right to publish; however, this is an unnecessary cost and I
recommend no report publication at this time.
YORKVILLE POLICE PENSION FUND
STATEMENT OF INVESTMENT POLICY, OBJECTIVES AND GUIDELINES
General Information
The Yorkville, Illinois Police Pension Fund is a contributory pension plan created under
Article 3 of the Illinois Police Pension Code (40 ILCS 5/1 -101 et seq.) for the purpose of
providing retirement and /or disability benefits to police officers, their surviving spouses and
dependents. Contributions to the plan come from active duty police officers and from taxes
upon the City. This Statement of Investment Policy, Objectives and Guidelines applies to all
assets of the Yorkville Police Pension Fund. All Investment Management Consultant(s),
Investment Manager(s) and Custodian(s) shall affix their signatures on the last page hereof and
hereby acknowledge that (a) they have read, understood, and agreed to adhere to this statement;
(b) they are a "fiduciary" with respect to the Fund as provided under Illinois law including
Section 1 -101.2 of the Code; (c) investments of the Fund are restricted to those investments
permitted under the provisions of the Code applicable to the Fund, including Section 1 -113 and
3 -135 thereof; and (d) all investments shall be made in the name of the Board of Trustees and
shall be clearly held and accounted for to indicate ownership by the Board of Trustees.
Definitions
The following terms used herein have the meanings stated below.
1. "Code" shall mean the "Illinois Pension Code (40 ILCS 5/1 -101 et seq.).
2. "Plan" shall mean the pension plan of Yorkville, Illinois Police Pension Fund. Plan
shall also mean the Fund as defined herein.
3. "Fund" shall mean the Yorkville. Illinois Police Pension Fund. Fund shall also
mean the Plan as defined herein.
1
4. "Board of Trustees" shall refer to the governing established to administer and
control the fund as specified in Section 3 -128 of the Code.
5. "Fiduciary" shall mean a "Fiduciary" as defined under Illinois law including but not
limited to the definitions of Section 1 -101.2 of the Code and shall include any
person who exercises any discretionary authority or control over the Plan's
management or the disposition of its assets, or renders investment advice for a fee or
other compensation with respect to Plan funds or property or has any discretionary
authority or responsibility in the Plan's administration, including, but not limited to,
I
Investment Management Consultant(s), Investment Manager(s), and Custodian(s) as
defined herein.
6. "Investment Manager" shall mean an "Investment Manager" as defined in Section
1 -101.4 of the Code and shall include any person employed to manage the
investment of all or part of the Plan's assets.
7. "Investment Management Consultant" shall mean any person employed to provide
advisory services, including advice on investment objectives and /or asset allocation,
manager search, and performance monitoring.
8. "Custodian" shall mean any person employed to maintain possession of securities or
funds owned by the plan as custodian always identified as Custodian(s) of the Fund
as defined herein subject to the direction of the Board of Trustees, and may, but
need not, also be employed as the Investment Manager(s).
9. "Person" shall mean any individual or group of individuals or organizations. Ill 5/1-
109. for language. Prudent man standard — the care skill, prudence and diligence
under the circumstances the prevailing that a prudent man acting in a like capacity
2
and familiar with such matters would use in the like conduct of an enterprise of a
like character with like aims.
10. "Securities" shall refer to the marketable investment securities, which are defined as
acceptable in this Statement.
11. "Investment Horizons" shall be the time period over which the investment
objectives, as set forth in this Statement, are expected to be met. The investment
horizons for this plan are: (a) for fixed income investment 3 years; and (b) for
equity investment 3 years.
12. "Statement" shall mean this Statement of Investment Policy, Objectives and
Guidelines.
Primary Purposes of this Statement
This Statement is set forth by the Board of Trustees in order to achieve the following
primary purposes:
1. Define and assign the responsibilities of all involved parties.
2. Establish a clear understanding for all involved parties of the investment goal and
i_
objectives for Plan asset.
3. Offer guidance and limitations to any and all Investment Managers regarding the
investment of Plan assets.
4. Establish a basis for evaluating investment results.
5. Establish the relevant Investment Horizons for which Plan assets will be managed.
Responsibilities of the Board of Trustees
The Board of trustees is charged by law with the responsibility for the management of
the Plan's assets. As provided in Section 1 -109.1 of the Code, the Board of Trustees shall
3
discharge its duties solely in the interest of the Plan, with the care, skill, prudence and diligence
under the circumstances then prevailing, that a prudent man, acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like character with
like aims. The specific responsibilities of the Board of Trustees as defined in Section 1 -109. of
the Code relating to the investment management of the Plan's assets included, but are not
limited to, the following:
1. Projecting the Plan's financial needs, and communicating such needs to the
Investment Managers as the Board of Trustees deems appropriate.
2. Determining the Plan's risk tolerance and Investment Horizons, investment policy,
and communicating these to the appropriate parties.
3. Establishing reasonable and consistent investment objectives, policies, and
guidelines that will direct the investment of the Plan's assets.
4. Prudently and diligently selecting qualified investment professionals, including
I
Investment Consultant(s), Investment Manager(s), and Custodian(s).
5. Regularly evaluating the performance of the Investment Manager(s) to assure
adherence to policy guidelines and to monitor investment objective progress.
6. Developing and enacting proper control procedures.
Delegation of Authoritv
As provided in Section 1 -109.1 of the Code, the Board of Trustees as a fiduciary
responsible for directing and monitoring the investment management of the Plan's assets, is
authorized to delegate certain responsibilities to professional experts in various fields,
including, but not limited to:
�
4
1. An Investment Management Consultant, who may assist the Board of Trustees in
establishing investment policy, objectives, and guidelines; selecting investment
managers; reviewing such managers over time; measuring and evaluating
investment performance on a continuing basis; and other tasks as deemed
appropriate by the Board of Trustees.
2. An Investment Manager, who has discretion to direct the purchase, sale or holding
of the specific securities or funds that will be used to meet the Plan's investment
objectives.
3. The Custodian, who as custodian will always be identified as Custodian of the
Yorkville Police Pension Fund will maintain possession of securities or funds
owned by the Plan, collect dividend and interest payments, redeem maturing
securities, effect receipt and delivery following purchases and sales, also perform
regular accounting of all assets owed, purchased, or sold, as well as move assets into
and out of the Plan accounts.
Additional specialists such as attorneys, auditors, actuaries, retirement plan consultants,
and others may be employed by the Board of Trustees to assist in meeting it
responsibilities and obligations to administer Plan assets prudently.
If such experts have discretionary investment authority or other powers, duties
and responsibilities which make them a "Fiduciary" under Illinois law including Section
1 -101.2 of the Code, they must acknowledge their fiduciary status in writing before
assuming any powers, duties or responsibilities with respect to the Plan assets, although
such fiduciary status shall exist as to all such experts including, but not limited to,
Investment Consultant(s), Investment Manager(s) and Custodian(s) regardless of
5
whether such acknowledgement is given. All charges by such experts must be at rated
charged by such experts for comparable work, and be bourne by the Fund. However,
any investment services provided by a person other than the Investment Advisor(s) shall
give full written disclosure of all fees, both direct and indirect, prior to providing the
services.
i 1
Responsibility of the Investment Consultant
The Investment Consultant's role is that of a non - discretionary advisor to the
Board of Trustees. Nevertheless, in view of Illinois law including Section 1 -101.2 of
I
the Code, the Investment Consultant is a "Fiduciary" with respect to the Fund, and
accordingly, each Investment Consultant must acknowledge in writing its acceptance of
responsibility as a fiduciary as aforesaid. Investment advice concerning the investment
manager of Plan assets will be offered by the Investment Consultant, and will be
consistent with the investment objectives, policies, guidelines and constraints as
established in this Statement. Specific responsibilities of the Investment Consultant
include, but are not limited to the following:
1. Assisting in the development and periodic review of investment policy.
2. Conducting investment manager searches when requested by the Board
of Trustees.
3. Providing "due diligence" or research, on the Investment Manager(s).
4. Monitoring the performance of the Investment Manager(s) to provide the
Board of Trustees with the ability to determine the progress toward the
investment objectives.
6
I
5. Communicating matters of policy, manager research, and manager
performance to the Board of Trustees.
6. Reviewing Plan investment history, historical capitol markets
performance and the contents of this Statement to any newly appointed
members of the Board of Trustees.
Responsibilities of the Investment ManaLyer(s)
An Investment Manager must acknowledge in writing its acceptance of responsibility as
a fiduciary under Illinois law including Section 1 -101.2 of the Code as aforesaid. Subject to the
requirements thereof and to the authority if the Board of Trustees, each Investment Manager
will have discretion to make investment decisions for the assets placed under its jurisdiction,
while observing and operating within all policies, guidelines, constraints, and philosophies as
outlined in this Statement. Specific responsibilities of the Investment Manager(s) include, but
are not limited to, the following:
1. Discretionary investment management including decisions to buy, sell, or hold
individual securities, and to alter asset allocation established within this Statement.
2. Reporting at least monthly the current investments held in the account, their current
market value and all transactions within the account.
3. Communicating any major changes in economic outlook, investment strategy, or
any other factors that affect implementation of investment process, or the
investment objective progress of the Plan's investment management.
4. Informing the Board regarding any qualitative change in the investment
I
management organization: Examples include changes in portfolio management
personnel, ownership structure, investment philosophy, etc.
7
i
5. In regards to stock purchased by the Fund or otherwise owned by the Fund, voting
proxies on behalf of the Plan if directed to do so by the Board of Trustees and
communicating such voting records to the Board of Trustees on a timely basis.
Investment managers if any will be held responsible and accountable to achieve the
objectives of this Statement. While it is not believed that the limitations will hamper
,
investment managers, managers should request modifications when they deem it
appropriate,
Responsibility of the Custodian
I
The Custodian exercises specified authority or control respecting management
i
or disposition of the Fund's assets, among other things.
The Custodian accepts possession of securities and/or funds in a matter that
insures their safety and ownership. In view of Section 1 -101.2 of the Code, the
Custodian acts as a "Fiduciary" with respect to the Fund, and, accordingly, must
acknowledge in writing its acceptance of responsibility as a fiduciary. Additional
specific responsibilities of the Custodian include, but are not limited to, the following:
Providing accurate, timely market value pricing, including accrued interest, for all securities
i
under their care.
1. Providing accurate, timely market value pricing, including accrued interest,
for all securities under their care,
2. Collecting dividends and interest payments on a timely basis.
3. Redeeming of maturing securities on a timely basis.
4. Effecting receipt and delivery following purchases and sales on a timely and
accurate basis.
8
5. Providing timely monthly statements which accurately detail all transactions
in the accounts, as well as detail all of the securities owned.
6. Ensuring that all cash is productively employed at all times.
General Investment Principles
General investment principles of the Plan include, but are not limited to, the following:
1. As provided in Sections 1 -113 and 3 -135 of the Code, all investments shall be made
in the name of and clearly held and accounted for to indicate ownership by the
Board of Trustees.
2. All investments shall be made solely in the interest of the participants and
beneficiaries of the Plan and for the exclusive purpose of providing benefits accrued
thereunder and defraying the reasonable expenses of administration.
3. The Plan shall be invested with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent man acting in like capacity and familiar
with such matters would use in the investment of a like character and with like aims.
4. Understanding that risk is present in all types of securities and investment styles, the
I
Board of Trustees recognizes that some risk is necessary to produce long -term
investment results that are sufficient to meet the Plan's objectives. However, the
investment managers are to make reasonable efforts to control risk, and will be
evaluated regularly to ensure that the risk assumed is commensurate with the given
investment style and objectives.
5. An investment manager is expected to adhere to the investment management styles
for which they were hired. Managers will be evaluated regularly for adherence to
their investment discipline.
9
6. Investments of the Plan shall be so diversified as to minimize the risk of large
losses, unless under the circumstances it is clearly prudent not to do so.
7. The Board of Trustees may employ one or more investment managers of varying
styles and philosophies to attain the Plan's objectives.
8. Cash is to be employed productively at all times, by investment in short-term cash t
equivalents to provide safety, liquidity, and return.
9. The primary objectives of the Fund, in order of priority are as follows:
a) Safety. Safety of principle is the foremost objective. Investments shall be
undertaken in a manner that h t seeks to insure the preservation of capital. As such,
the Board of Trustees has consciously diversified the total Fund to ensure that
adverse or unexpected results will not have an excessively detrimental impact on j
the entire portfolio. Diversification is to be interpreted to include diversification
by asset type, by characteristic and be number of investments.
b) Liquidity. The investment portfolio will remain sufficiently liquid to enable the
Fund to meet all operating requirements that might be reasonably anticipated.
c) Return on Investment. Assets will be invested to achieve attractive real rates
of return. Following the Prudent Man Standard — the care skill, prudence and
diligence under the circumstances the prevailing that a prudent man acting in a
like capacity and familiar with such matters would use in the like conduct of an
enterprise of a like character with like aims, for preservation of capital, assets
will be invested to achieve the highest possible rate of return, consistent with the
Plan's tolerance for risk as determined by the Board of Trustees in its role as a
fiduciary.
10
I
d) Equity Investment. For that portion, if any, of the portfolio eligible for equity
investments under the Code, all equity investment shall be part of a properly
diversified portfolio and shall comply with statutory guidelines.
Investment Oblectives
The investment objective of the Fund is to reduce the need for the funding of retirement
benefits for active duty officers and taxpayers. The paramount goal of the Fund is to have
investment returns carry as much of this financial load as is possible in the boundaries of
prudent risk. To this end, it is the policy of the fund to emphasize total return; that is, the
aggregate return of capital appreciation, dividend income, and interest income.
Specific Investment Goal
Over the Investment Horizons established for equity and fixed income investments in
this Statement it is the goal of the aggregate Plan returns to meet or exceed the actuarial
assumption of the Fund.
The investment goals above the objectives of the aggregate Plan and are not meant to
be imposed on each investment account (if more than one account is used). The goal of each
investment manager, over the Investment Horizon, shall be to:
1. Meet or exceed the market index, or blended market index, selected and agreed
upon by the Board of Trustees that most closely corresponds to the style of
investment management.
i
2. Display an overall level of risk in the portfolio that is consistent with the risk
associated with the benchmark specified above. Risk will be measured by the
annualized standard deviation of quarterly returns.
11
Specific investment goals and constraints for each investment manager, if any, shall be
incorporated as part of this Statement. Each manager shall receive a written statement
outlining specific goals and constraints as they differ from those objectives of the entire Plan.
Losses
The Board of Trustees understands that in order to achieve its objectives for Plan assets,
the Plan will experience volatility of returns and fluctuations of market value as well as periods
of losses. Losses will be viewed within the context of appropriate market indices.
Liouiditv
To minimize the possibility of a loss occasioned by the sale of a security forced by the
need to meet a required payment, the Board of Trustees will periodically provide investment
managers with an estimate of expected net cash flow with sufficient advance notice to allow the
orderly build -up of necessary liquid reserves, j
Marketabilitv of Assets
Based on the Plan's long -term investment horizon, the Board of Trustees has
determined that, as appropriate, up to 5% of Plan assets may be invested in illiquid, long -term
investments. Such investments may include certificates of deposit and guaranteed insurance
contracts, to the extent permitted under Section 3 -135 of the Code. Any other Plan holding
which would have a noticeable impact on market price if traded in whole or in part is also
defined as illiquid.
Permitted Investments
Permitted investments are those allowed under Section 3 -135 of the Code,
12
1. Interest bearing bonds or tax anticipation warrants of the United States, of the State
of Illinois, or of any county, township or Municipal Corporation of the State of
Illinois.
2. Insured withdrawable capital accounts of State chartered savings and loan
I
associations.
3. Insured withdrawable capital accounts of federal chartered savings and loan
associations if the withdrawable capital accounts are insured by the Federal Savings
and Loan Insurance Corporation.
4. Insured investments in credit unions if the investments are insured by the National
Credit Union Administration.
5. Savings accounts or certificates of deposit of a national or state bank.
6. Securities described in item 5.1 of Section 1 -113 of this Code, but only subject to
the conditions set forth.
7. Contracts and agreements supplemental thereto providing for investments in the
general account of a life insurance company authorized to do business in the State of
I
Illinois.
8. Separate accounts of a life insurance company authorized to do business in Illinois,
comprised of common or preferred stocks, bonds, or money market instruments.
9. As of January 1, 1998, investments in the Federal National Mortgage Association
(FNMA) and the Student Loan Marketing Association (SLMA) shall be permitted.
10. As of January 1, 1998, total investment in separate accounts not exceeding 10% of
the aggregate book value of all investments owned by the Fund are allowed in the
following:
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a) An account managed by a life insurance company authorized to do business in
Illinois, comprised of real estate or loans upon real estate secured by first or
second mortgages.
Prohibited Transactions
Prohibited Transactions are those transactions prohibited under Section 1 -110 and 1 -111
I
of the Code and not allowed under Section 3 -135 of the Code and also include, but are not
limited to, the following:
1. Short selling.
2. Margin transactions.
3. Any transaction involving futures or option contracts.
4. Reverse Repurchase Agreements.
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5. Repurchase Agreements.
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6. Any borrowing or lending agreements.
Guidelines for Cash Eauivalents,
The following shall be guidelines for cash equivalents: Money Market Mutual Funds
registered under the Investment Company Act of 1940 provided that the portfolio of the money
market fund is limited to Treasury money market securities.
Asset Allocation Guidelines
Investment management of the Plan's assets shall be in accordance with the following,
asset allocation guidelines:
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Aggregate Plan Asset Allocation Guidelines (at market value)
Asset Class Minimum Maximum Preferred
Equities 0 % 10 % 10 %
Fixed Income 85 % 100 % 85 -90 %
Cash & Equivalents 0 % 10 % 0 -5 %
The Board of Trustees may employ managers whose investment disciplines require
investment outside the established asset allocation guidelines. However, taken as a component
of the aggregate Plan, such disciplines must fit within the overall asset allocation guidelines
established in this Statement. Such investment managers will receive written direction from the
Board of Trustees regarding specific objectives and guidelines.
Selection Investment Manauer(s)
The Board of Trustees' selection of Investment Manager(s) will primarily be based
upon matching the Fund's investment objectives with an investment manager's investment
style.
At a minimum, and subject to the requirements of Section 1- 101.l(c) of the Code, the
following items will be required in the selection of an investment manager.
1. Investment professionals with a minimum of five (5) years of investment
experience;
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2. A registered investment adviser under the Investment Advisors Act of 1940, or a
bank or an insurance company.
As indicated above, the Board of Trustees requires that each investment manager
provide, in writing, acknowledgement of fiduciary responsibility to the Plan. Further, the
Investment Manager must:
1. Have a written contract, with the policy as part of the contract;
2. Provide full disclosure of fees, both direct and indirect;
3. Provide written quarterly reports to the Board; and
4. Report returns of net fees.
It is the responsibility of the Board of Trustees to submit a copy of the contract to the Illinois
Department of Insurance within 30 days after the signing of said contract.
Investment Manager Performance Review and Evaluation
Performance reports generated by the Investment Consultant shall be compiled at least
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monthly and communicated to the Board of Trustees of the Yorkville Police Pension Board for
review. The investment performance of total portfolios will be measured against commonly
accepted performance benchmarks. Consideration shall be given to the extent to which the
investment results are consistent with the intends to evaluate the portfolio(s) over at least a
three year period, but reserves the right to terminate a manager for any reason or in the Board
of Trustees discretion may terminate an Investment Manager without cause. Among the causes
for termination (but not limited to those causes) are the following:
1. Investment performance which is significantly less than anticipated given the discipline
employed and the risk parameters established, or unacceptable justification of poor results.
16
2. Failure to adhere to any aspect of this Statement of investment policy, including
communication and reporting requirements.
3. Significant qualitative changes to the investment management organization.
Investment managers shall be reviewed regularly regarding performance, personnel,
strategy, research capabilities, organizational and business matters, and other qualitative factors
that may impact their ability to achieve the desired investment results.
This statement is adopted on , 20 by the Board
of Trustees of the Fund whose signatures appear below.
President
S ecretary
Assistant Secretary
Treasurer
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ACKNOWLEDGEMENT BY FIDUCIARY
By affixing our signatures below, we acknowledge that (a) we have read, understood,
and agreed to adhere to the Board of Trustees Statement attached hereto; (b) we are a Fiduciary
with respect to the Fund under Illinois law including Section 1- 101.1(a) of the Code; (c)
investment of the Fund are restricted to those investments permitted under the provisions of the
Code applicable to the Fund, including Section 3 -135 thereof, and (d) all investments shall be
made in the name of the Board of Trustees and shall be clearly held and accounted for to
indicate ownership by the Board of Trustees.
Name
Title
Firm
l
Date
FOR THOSE WITH ASSETS OF $5,000,000 OR MORE:
Item #10: Not exceeding 35% of the aggregate book value...
18
it
a) Mutual Funds that meet the following requirements: (1) managed by an investment
company as defined and registered under the Federal Investment Act or 1940 and registered
under the Illinois Securities Law of 1953; (2) has been in operation for five (5) years; (3)
has total net assets of $250 million or more; and (4) is comprised of stocks, bonds or money
market instruments.
b) Common and Preferred Stock that meet the following requirements: (1) Stock investments
must by made through investment advisor(s) who has written contract with the Fund; (2)
Stocks must be of U.S. Corporations that have been in existence a minimum of five (5)
years; (3) the corporation must not be in arrears in payment of dividends in the last five (5)
years; (4) the market value of stock in any one corporation cannot exceed 5% of cash and
invested assets of the fund; (5) stock in any one corporation cannot exceed 5% of the total
outstanding stock in the corporation; and (6) stocks purchased must be listed on national
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securities exchanges or quoted in NASDAQNMS.
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Yorkville Administrative Adjudication Hearing Summary Closed Event -All Invoices RCVD and PAID
11/25/200815:40 Future Event
Closed Event - Invoices PENDING
Total Fines Paid $ 3,475.00
Total Bills Paid $ (3,275.00)
Ending Balance $ 200.00
07 -07 -08 Training Balance Colosimo
Colosimo (6 hours) $ (900.00) $ (900.00)
10 -22 -08 Hearing Balance Colosimo
Total Fines Paid $ 600.00 $ (300.00)
Hearing Officer Fee $ (150.00) $ (450.00)
Court Reporter Fee $ (175.00) $ (625.00)
10 -29 -08 Hearing Balance Colosimo / Darr Observing
Total Fines Paid $ 850.00 $ 225.00
Hearing Officer Fee $ (300.00) $ (75.00) "Includes 1 observation hour for Darr
Court Reporter Fee $ (175.00) $ (250.00)
11 -05 -08 Hearing Balance Colosimo
Total Fines Paid $ 125.00 $ (125.00)
Hearing Officer Fee $ (150.00) $ (275.00)
Court Reporter Fee $ (175.00) $ (450.00)
11 -12 -08 Hearing Balance Colosimo
Total Fines Paid $ 300.00 $ (150.00)
Hearing Officer Fee $ (150.00) $ (300.00)
Darr /Training $ (600.00) $ (900.00)
Court Reporter Fee $ (175.00) $ (1,075.00)
11 -19 -08 Hearing Balance Colosimo
Total Fines Paid $ 475.00 $ (600.00)
Hearing Officer Fee $ (150.00) $ (750.00)
Court Reporter Fee $ (175.00) $ (925.00)
11 -26 -08 Hearing Balance
Total Fines Paid $ 200.00 $ (725.00)
Hearing Officer Fee $ (725.00)
Court Reporter Fee $ (725.00)
12 -03 -08 Hearing Balance
Total Fines Paid $ 450.00 $ (275.00)
Hearing Officer Fee $ (275.00)
Court Reporter Fee $ (275.00)
Page 1 of 2
12 -10 -08 Hearing Balance
Total Fines Paid $ 175.00 $ (100.00)
Hearing Officer Fee $ (100.00)
Court Reporter Fee $ (100.00)
12 -17 -08 Hearing Balance
Total Fines Paid $ 275.00 $ 175.00
Hearing Officer Fee $ 175.00
Court Reporter Fee $ 175.00
12 -23 -08 Hearing Balance
Total Fines Paid $ 25.00 $ 200.00
Hearing Officer Fee $ 200.00
Court Reporter Fee $ 200.00
12 -30 -08 Hearing Balance
Total Fines Paid $ - $ 200.00
Hearing Officer Fee $ 200.00
Court Reporter Fee $ 200.00
Page 2 of 2