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HomeMy WebLinkAboutw - November 14, 2007 COW COMMITTEE OF THE WHOLE MEETING November 14, 2007 The regular Committee of the Whole meeting was called to order by Mayor Schock at 5:10 p.m. in the Council Chambers. Present: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Absent: None. Approval of Minutes Councilmember Walters made a motion, seconded by Councilmember Figueroa, to approve the minutes of the October 22, 2007, special meeting and the October 24, 2007, regular meeting. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Budget Discussion Assistant City Manager Sean Stegall and Fiscal Services Director Jim Nowicki presented the first portion of the proposed 2008 budget. Mr. Stegall reported that the budget is balanced with total expenditures of just over $301 million, that it conforms to all of the City’s financial policies, and that this is the sixteenth year that the City has maintained a $1.92 property tax rate as calculated for Kane County. Some of the key points noted were that growth and revenue have been revised downward; specifically that projections have been reduced from 6% annually to 5%. Income tax projections have been reduced and a zero percent increase in the sales tax has been projected for 2008. Some of the biggest outstanding issues affecting the City budget are on the state level such as worker’s compensation laws, pension laws, riverboat gaming, and the sales tax formula calculations or a streamline sales tax. These issues could have a significant impact on the budget and affect up to $18 million in revenue. The focus is on the City’s core activities with the goal of maintaining City programs and services first without expanding or presenting new ones. Mr. Stegall stated the City is probably in better shape than other communities due to the riverboat and to the fact that the City adds expenditures very slowly and methodically and predicts expenditures to be very high and revenues to be very low. Other issues to be considered include OPPEB (Other Pension and Post Employment Benefits), capital costs and moving these expenditures into the General Fund, debt issuance. Mr. Stegall outlined the guidelines used to develop the budget or how expenditures were prioritized. First, legal and financial obligations must be met. Then pensions must be met. Third, unfunded mandates must be addressed. Fourth, the goal is to maintain what the City is already doing or not cut services. Lastly, the expansion of services can be considered. Councilmember Walters asked how the streamline sales tax proposal would affect the City. Mr. Nowicki stated that currently, when a product is purchased, the sales tax is based on the point of sale. The streamline sales tax proposal would change that to the point of destination. Anything that is deliverable would be taxed at the point of delivery or destination. Mr. Nowicki stated that the bill was initially focused on internet sales, but it has moved beyond that. Councilmember Powers stated that it would penalize industrial parks. Councilmember Walters asked what effect Committee of the Whole November 14, 2007 Page 2 this would have on the City’s General Fund and Mr. Nowicki replied that a quick analysis indicated it could be up to $8 million. Mr. Stegall stated this would equate to funding the entire City operations for one month. Councilmember Walters stated that he wished there were state legislatures in the audience to answer why they are considering this and felt they did not have the courage to raise the taxes themselves. Councilmember Walters questioned the effects of the proposed changes in the gaming laws. Mr. Stegall said it could be up to $10 million, although this is not based on any research. Mr. Stegall also indicated there were changes proposed or already enacted that would limit the City’s ability to control worker’s compensation costs and that there are continual actions to increase pension benefits. Mr. Nowicki discussed the changes to duty disabilities. Mr. Stegall stated that as the costs associated with current employees become more expensive, it is difficult to add new ones. Councilmember Figueroa asked if the proposed budget is going to affect the commitments to the new subdivisions built in the Western area. Mr. Stegall replied that the budget anticipates those commitments already made. The proposed 2008 budget is anticipated to be $20 million less than the estimated 2007 actual. Mr. Stegall then reviewed the various fund accounts and the funding of the top ten priorities of the Council. Councilmember Figueroa asked if CDBG money could be used for the deconversion program. Mr. Stegall replied that it could, but that there is never enough money in CDBG to fund the other projects the council wants to do, so it would be just adding another item to that. Councilmember Figueroa inquired about the waste transfer revenues funds. Mr. Stegall replied that the recommendation made to the Council last year was to use every dollar for capital items within the General Fund. He said the money will go to General Fund – Capital Improvements- Capital Expenditures Fund which will help address the issue of moving capital items into the General Fund. Mr. Stegall emphasized the importance of the TIF district and stated that it is the best defense against possible reduction in riverboat funds. He said that leveraging the TIF is essential and critical. He equated “incentives” to “investments”. Investment in the TIF district generates more revenue for future years. Councilmember Figueroa asked about extending the TIF area and the Mayor explained that the Governor has already stated he would veto any attempts to extend any TIF districts. Mr. Stegall concluded the presentation at this point and will resume at the next Committee of the Whole Meeting on November 28. Committee of the Whole November 14, 2007 Page 3 Consideration of Truth in Taxation Act Requirements and Budget Schedule Councilmember Walters made a motion, seconded by Councilmember Figueroa, to set date for the Truth in Taxation public hearing for 7:00 p.m. on Wednesday, December 5, 2007. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Presentation by Hitchcock Design Group for Design Concepts of the Riverside Drive Promenade Rich Hitchcock of Hitchcock Design Group gave a report on the progress of the Riverside Drive Promenade project. He reminded Council that the goal of the project was to 1) create a destination, 2) provide a connection along the river front, and 3) provide a catalyst for further reinvestment and development of the downtown area. Mr. Hitchcock then pointed out the details of their design. Cost to remove the existing deck will be $1.5 million and the cost to create a new promenade area will be $6.5 million for a total cost of $8 million. Mr. Hitchcock recommended a series of upgrades at a cost of $3.9 million although there are no funds allocated for this. Mayor Schock asked that if the upgrades were to be completed at a later date, what would have to be done now. Mr. Hitchcock answered that the next step for his firm would be to make that determination. Mr. Hitchcock mentioned that a decision would have to be made soon whether to do a continuous wall along the river or a column supported structure. He is hoping to have a decision from the Regulatory Commission in December whether the retaining wall would be allowed. Mr. Hitchcock believes it will be simpler, more cost effective, and absolutely respectful of the river. He mentioned that if this is successful, the design development is accomplished, and the construction documents are ready, then a year from now the project should go out for bid. Councilmember Walters asked if any grants were available towards this project and Mr. Hitchcock did not think so. Councilmember Kaptain asked about the environmental aspects of the project, as he felt they should be incorporated into the project from the beginning. Mr. Hitchcock said that included in the baseline budget there are considerations for the stormceptors and bioswales, He indicated that permeable paving would be an upgrade. Councilmember Kaptain mentioned that an environmental grant writer he spoke with had indicated that she thought this was the best environmental storm water project she had seen and that it would open up many opportunities for grants. Mr. Hitchcock said he would be contact her. Councilmember Powers expressed his hope that Hitchcock Design Group would share these plans with realtors and developers who are interested in projects in the downtown. He said that he is concerned about the backside of the buildings facing the river. Mr. Hitchcock stated that is why they were putting the emphasis on the middle overlook and how it would function with these buildings. He indicated he would be very interested in speaking with any realtor or developer about the project. The Mayor thanked Mr. Hitchcock for the update. Committee of the Whole November 14, 2007 Page 4 Consideration of the Proposed Amendment to the Northern Illinois Special Recreation Association’s Articles of Agreement Councilmember Figueroa made a motion, seconded by Councilmember Gilliam, to approve the proposed amendment to the Northern Illinois Special Recreation Articles of Agreement as outlined in the memo provided to Council. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Acceptance of Public Improvements by Miller Realty in Mackenzie Woods Subdivision for City’s Ownership and Maintenance Councilmember Gilliam made a motion, seconded by Councilmember Kaptain, to accept the public improvements in the Mackenzie Woods Subdivision and direct staff to prepare the necessary resolution. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Acceptance of Public Improvements by West Point Builders on Nesler Road for City’s Ownership and Maintenance Councilmember Kaptain made a motion, seconded by Councilmember Gilliam, to accept the public improvements constructed by West Point Builders on Nesler Road from their northernmost to their southernmost entrances to West Point Gardens Subdivision and direct staff to prepare the necessary resolution. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Holiday Gift Certificates for Active City Employees Councilmember Figueroa made a motion, seconded by Councilmember Walters, to approve issuing $25 gift certificates to all active employees receiving checks in the 25th pay period for a total cost of approximately $23,750. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Business Improvement Grant with Terri Lynn, Inc. for signage at 1450 Bowes Road Councilmember Walters made a motion, seconded by Councilmember Gilliam, to approve a business improvement grant with Terri Lynn, Inc. for signage at 1450 Bowes Road in the amount of $3,759.50. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Committee of the Whole November 14, 2007 Page 5 Consideration of Agreement with CDS Office Technologies for Sixteen Panasonic Toughbook Mobile Data Terminals Councilmember Kaptain made a motion, seconded by Councilmember Figueroa, to authorize the purchase of sixteen Panasonic Toughbook Mobile Data Terminals from CDS Office Technologies in the amount of $87,680. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Change Order #3 with Brandenburg Industrial Service for additional work related to the demolition and site cleanup at 51 N. State Street (Unilever), 40 Ann Street (former Public Works site) and the Water Road Park Councilmember Walters made a motion, seconded by Councilmember Figueroa, to approve Change Order No. 3 with Brandenburg Industrial Service in the amount of $16,110 for additional work related to the demolition and site cleanup at 51 N. State Street (Unilever), 40 Ann Street (former Public Works site) and the Water Road park. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Amendment No. 1 to Engineering Services Agreement with Rezek, Henry, Meisenheimer and Gende for Water Department Backup Power Project Councilmember Figueroa made a motion, seconded by Councilmember Kaptain, to remove the engineering services agreement with Rezek, Henry, Meisenheimer and Gende regarding Water Department Backup Power Project from the table for consideration. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Councilmember Kaptain made a motion, seconded by Councilmember Gilliam, to authorize Amendment No. 1 with Henry, Meisenheimer and Gende in the amount of $33,344 for engineering services for the Water Department Backup Power Project. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Change Order No. 1 (Final) with Morse Energy LLP for the Riverside Treatment Plant and Slade Avenue Facility Backup Power Project Councilmember Walters made a motion, seconded by Councilmember Gilliam, to remove Change Order No. 1 (Final) with Morse Energy LLP for the Riverside Treatment Plant and Slade Avenue Facility Backup Power Project from the table for consideration. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Committee of the Whole November 14, 2007 Page 6 Councilmember Walters made a motion, seconded by Councilmember Figueroa, to authorize Change Order No. 1 (Final) with Morse Energy LLP for the Riverside Treatment Plant and Slade Avenue Facility Backup Power Project for a total cost of $3,618. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Amendment No. 1 to Engineering Services Agreement with Burns & McDonnell for Lime Residue Disposal Main Project Councilmember Figueroa made a motion, seconded by Councilmember Walters, to authorize Amendment No. 1 with Burns & McDonnell for a total cost of $326,345 for engineering services for the design of the lime residue disposal main for the City of Elgin and a force main for the Fox River Water Reclamation District. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Amendment No. 2 for Phase I Construction Services with Burns & McDonnell for the Lime Residue Disposal Main Councilmember Kaptain made a motion, seconded by Councilmember Figueroa, to authorize Amendment No. 2 with Burns & McDonnell for a total cost of $260,436 for Phase I construction services of the lime residue disposal main for the City of Elgin and a force main for the Fox River Water Reclamation District. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Addendum to the Master Lease with Textron Financial Corporation to Lease Additional New Golf Cars at the Highlands Councilmember Kaptain made a motion, seconded by Councilmember Figueroa, to approve the sale of our existing leased items back to Textron for $82,290 and the execution of the new schedules to be incorporated in the master lease (dated October 7, 2005) in the annual amount of $55,919.16. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Consideration of Reappointment to the Housing Authority of Elgin Councilmember Figueroa made a motion, seconded by Councilmember Walters, to reappoint Robert Gilliam to the Housing Authority of Elgin for a term that expires on December 1, 2012. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Committee of the Whole November 14, 2007 Page 7 Consideration of Proposed Establishment of a Street Gang Prevention and Intervention Committee Councilmember Figueroa made a motion, seconded by Councilmember Walters, to approve the proposed ordinance establishing a Street Gang Prevention and Intervention Committee. Councilmember Figueroa thanked everyone who had expressed interest in serving on the committee. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Announcements from Council Councilmember Figueroa asked if the City was aware of a coyote problem in the Bowes Road/Longcommon Parkway area. The City Manager said he had received an e-mail, but that he would have to check into the legal aspects. Councilmember Figueroa thanked City Manager Folarin and staff for accompanying him and Councilmember Kaptain on the recent tour of the SWAN neighborhood. Announcements from Staff Public Information Officer Sue Olafson announced upcoming City events. Adjournment Councilmember Gilliam made a motion, seconded by Councilmember Figueroa, to adjourn and go into the Executive Session for the purpose of discussing the following matters. Upon a roll call vote: Yeas: Councilmembers Figueroa, Gilliam, Kaptain, Powers, Steffen, Walters, and Mayor Schock. Nays: None. Establishment of Reserves or Settlement of Claims as Provided in the Local Governmental and Governmental Employees Tort Immunity Act - Exempt Under Section 120/2(c)(12) of the Open Meetings Act Purchase or Lease of Real Property for the Use of the Public Body - Exempt Under Section 120/2(c)(5) of the Open Meetings Act Selection of a Person to Fill a Vacant Office, Including a Vacancy in a Public Office, When the Public Body is Given Power to Appoint Under Law or Ordinance, or the Discipline, Performance or Removal of the Occupant of a Public Office, When the Public Body is Given Power to Remove the Occupant Under Law or Ordinance - Exempt Under Section 120/2(c) (3) of the Open Meetings Act Committee of the Whole November 14, 2007 Page 8 Mayor Schock announced that “Personnel Matters” had also been added to the agenda. The meeting adjourned at 6:40 p.m. s/Diane Robertson November 28, 2007 Diane Robertson, City Clerk Date Approved