Loading...
HomeMy WebLinkAbout21 - November 4, 2009 COW COMMITTEE OF THE WHOLE MEETING November 4, 2009 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 Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Absent: None. Approval of Minutes Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to approve the minutes of the October 14, 2009, special meeting and the minutes of the October 28, 2009, regular meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Budget Discussion City Manager Sean Stegall, along with Fiscal Services Director, Jim Nowicki, and Management Analyst, RuthAnne Hall, presented an overview of the proposed 2010 budget. Mr. Stegall first thanked the budget team for their hard work. He also acknowledged the members of SEIU and the Clerical Technical Union for their cooperation and on how well everyone conducted themselves during the recent round of layoffs. Mr. Stegall then recognized a number of city employees who now have added responsibilities and he thanked them for their cooperation and outstanding performance. He noted that, in comparison to last year, the city now has eighty less employees at a cost savings of approximately $8 million. Mr. Stegall listed the budget schedule as follows: November 11 – Review of the General, Recreation, Central Area TIF, and Riverboat Funds November 18 – Review of Water and Sewer Funds and direction and feedback from City Council He stated the city’s strategic goals fall under one of three key areas: 1. Enhancing the Community a. Safe Community b. Neighborhood Vitality c. Quality Housing d. River as a Resource e. Recreational, Leisure, and Cultural Opportunities 2. Promoting Economic Development a. Economic Growth b. Diversified Tax Base c. An Alive Downtown 3. Providing Quality and Efficient Governmental Services Committee of the Whole November 4, 2009 Page 2 a. Financially Stable City Government b. Diverse Management Staff c. Excellent Customer Service The strategy to achieve these goals will include realization that the City of Elgin is one organization (ONE Elgin), the creation of effective public-private partnerships, and cost-savings and productivity enhancements. Mr. Stegall assured the community that city services such as snow removal, public safety, and safe drinking water will remain at a high level and that this budget is based on outcomes and performance measures. ONE Elgin will see employees who are flexible, adaptable, and able to move between departments and who are surrounded by technical experts as needed. This will reduce the costs of providing essential city services. The public-private partnerships will utilize technical experts and business partners in order to adjust service levels during times of great demand or in period of slower demand. This will eliminate the needs for additional hiring or layoffs. Cost-savings and productivity enhancements will include the implementation of process improvements and technology to enhance productivity A cross-departmental employee team will be established in January 2010, to assist in identifying innovative initiatives to realize cost-savings and higher efficiencies. Mr. Nowicki and Ms. Hall then defined the budget as A plan that balances the resources drawn from the public against the demands for services and projects; A statement of priorities that reflects the community’s desires, wants, and needs; A policy document, but not primarily a financial document. They noted that the proposed 2010 budget is located on the city’s website at www.cityofelgin.org/2010budget and Ms. Hall explained how to maneuver through the various sections of the document and what information they included. Mr. Nowicki and Ms. Hall then reviewed each section. Mr. Stegall concluded by saying that the city is in excellent financial condition, its reserves are strong, its debt obligations are relatively low, and the riverboat continues to provide revenue to help keep the city vibrant. The city must not sacrifice the future to ease the pain of the present. He stated that the proposed budget provide the vision and resources necessary to realize the future. Councilmember Kaptain thanked members of staff who helped prepare the budget. Councilmember Dunne stated that he would like to see more detail on the funding of the various Committee of the Whole November 4, 2009 Page 3 decision packages. He also noted that some departments did not forecast five years out and he was concerned that this might provide some unpleasant surprises in the future. Consideration of Proposed Third Amendment to the Development Agreement with Randall 90 LLC and Proposed Agreement Regarding Public Improvements in the Randall Rose Auto Mall Subdivision A resolution will be presented at tonight's Council meeting for adoption by the City Council. Councilmember Steffen noted that there was an allocation of $3.5 million for Part A of this project in 2010 and that it appeared there was an overage of $400,000. If that is the case, he would like to see that overage applied to funding the architectural grant programs. Councilmember Gilliam suggested that any changes be discussed at the end of the budget process. Councilmember Kaptain said that he felt this request should be considered as an interest free loan and he did not feel that was right. He wants to change the amendment such that there would be some rate of interest. He felt that would be equitable given that the overhead sewer grant program includes an interest provision. Mayor Schock replied that this is not a loan, but rather an advance on a payment that the city is already obligated to pay. He suggested that if the issue is the equity of charging interest in the overhead sewer program, then maybe that needs to be reviewed and the interest portion cancelled. Councilmember Kaptain stated that he felt the overhead sewer program was a fair one and that he still felt that this amendment was an interest-free loan. Councilmember Gilliam asked what rate of interest was Councilmember Kaptain talking about and Councilmember Kaptain suggested the same as what was offered to residents applying for the overhead sewer program. Mr. Nowicki explained it would is interest free for the first year and then based on the twenty year, buyer bond index. He said that it currently was about 2%. Councilmember Steffen asked if Mr. Nowicki had an estimate on the sales tax that could be generated. Mr. Nowicki did not, but deferred to Corporation Counsel Cogley. Mr. Cogley said that the estimate was approximately $200,000 per year per dealer and that the payback would be about $50,000. Councilmember Steffen asked if the payback was paid through sales taxes generated and Mr. Cogley confirmed that it was. Councilmember Dunne asked if these figures were based on 2007 or 2008 estimated auto sales and Mr. Cogley replied that the projections were generated in late 2007. Councilmember Steffen said that it appears the developer is asking for assistance in trying to get the second dealer for the auto mall that would then generate additional sales and property taxes for the city. Councilmember Kaptain agreed, but stated again that he did not think that 2% of $500,000 or $10,000 was an unreasonable amount of interest to require. Committee of the Whole November 4, 2009 Page 4 Mayor Schock said that it is time to get the second lot developed. The city and the developer are in a partnership to benefit both and momentum is needed for the auto mall. The city wanted the auto mall; it was not the plan of the developer. There is a potential purchaser for the second lot and the same deal is being offered for this second lot as was for the first. Councilmember Kaptain said he had no problem with the amendments except for charging some interest. He would like to see it structured as a loan with similar terms as those offered to the residents who apply for the overhead sewer program. Councilmember Dunne said that he had some concerns about releasing the letters of credit before the improvements are finished as he feels this will set a precedent. Mr. Stegall said that it would, but that it was not a dangerous one because partial releases are acceptable when it makes sense to do so financially. Councilmember Prigge asked what the overall risk would be and Mr. Cogley explained that the payment would only be made after the second dealer is actually built and operating. Councilmember Prigge then stated that he would like to revisit the issue of charging residents interest if they are enrolled in the overhead sewer program. Mr. Stegall reminded the council that at the time the program was initiated, it was unknown how many residences would apply and that charging a nominal rate of interest would at least generate a little revenue to perpetuate the program. At this time, though, Mr. Stegall stated that only five applications have been received so the program could support a zero interest option. Peter Bazos, attorney for the developer was recognized and he stated an entity of the McGrath Auto Group is the potential buyer of the second lot in the auto mall. He explained that the advance would not be paid until an enumerated auto brand opens for business at that site and that it could take up to three years for that to happen. The advance would then be repaid out of the dealer’s share of the sales tax revenue. He also stated there is a sunset provision in the agreement which both the city and developer had agreed. Mr. Bazos said that this is one of the most important projects to sustain sales tax revenue and that a second dealer located in the mall is the momentum that is needed. Councilmember Warren feels this project is a home run for the city and that the city should move forward with it. Councilmember Steffen asked if the council and the developer could be open to new brands such as electric cars. Consideration of Contract with Davey Resource Group for a Tree Inventory and Management Plan for City Owned Trees Councilmember Gilliam made a motion, seconded by Councilmember Warren, to approve a contract with Davey Resource Group to complete the Tree Inventory and Forest Management Plan for City owned trees in the amount of $303,900. Committee of the Whole November 4, 2009 Page 5 Councilmember Dunne asked if this inventory has to be done now and wondered if there was any grant money available to assist in paying for the inventory. Mr. Stegall said he was not aware of any, but that he knew there were many grant programs that deal with the emerald ash bore problem. He said the city will have to know what the tree inventory is to be eligible for future grants. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Contract with Petroliance LLC for Offsite Fueling Services Councilmember Kaptain made a motion, seconded by Councilmember Steffen, to approve a two year purchase agreement, with the option to renew for an additional year, with Petroliance LLC in the amount of $775,000 for the initial 12 month period ending November, 2010. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of First Amendment to Engineering Services Agreement with Baxter and Woodman for the Water Plant Supervisory Control and Data Acquisition System Upgrade Councilmember Steffen made a motion, seconded by Councilmember Gilliam, to approve the First Amendment to the engineering services agreement with Baxter & Woodman Control Systems Integration (BWCSI) for the implementation of the upgrades to the Water Department Supervisory Control and Data Acquisition (SCADA) System in the amount of $252,100. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, and Mayor Schock. Nays: None. Councilmember Warren abstained due to a conflict of interest. Consideration of Agreement with Chaya Friedman for Purchase of Software System to Manage Administrative Adjudication Program Councilmember Dunne made a motion, seconded by Councilmember Gilliam, to approve the purchase of software from Chaya Friedman for use in managing the administrative adjudication program for ordinance violations in the amount of $25,000. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Announcements from Council Councilmember Dunne announced that the local VFW post will be celebrating its eightieth anniversary and will be holding a dinner dance to honor the occasion. Announcements from Staff None Committee of the Whole November 4, 2009 Page 6 Adjournment Councilmember Gilliam made a motion, seconded by Councilmember Stephen, to adjourn to Executive Session for the purpose of discussing the following matter: Appointment, Employment, Compensation, Discipline, Performance or Dismissal of Specific Employees of the Public Body - Exempt Under Section 120/2(c)(1) of the Open Meetings Act Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. The meeting adjourned at 6:28 p.m. s/Diane Robertson November 18, 2009 Diane Robertson, City Clerk Date Approved