City Council

125 S. Center Street City of Collinsville Collinsville, IL 62234 Minutes - Final City Council Councilman Jeff Stehman Councilman Cheryl Brombolich Councilman Donna Green Councilman David Jerome Mayor John Miller City Manager Mitch Bair Corporate Counsel Steve Giacoletto City Clerk Kim Wasser Monday, June 26, 2017 7:00 PM Council Chambers A. CALL MEETING TO ORDER Mayor Pro Tem Stehman called the meeting to order at 7:00 pm. B. ROLL CALL In the absence of Mayor Miller, Councilman Stehman served as Mayor Pro Tem. Also present: City Manager Mitch Bair, Corporate Counsel Steve Giacoletto, and City Clerk Kim Wasser. Present: 4 - Councilman David Jerome, Councilman Cheryl Brombolich, Councilman Donna Green, and Councilman Jeff Stehman Absent: 1 - Mayor John Miller C. INVOCATION Delivered by Pastor Aaron Semanek of Navigation Church. D. PLEDGE OF ALLEGIANCE Recited. E. PROCLAMATIONS/RECOGNITION/PRESENTATIONS 1. Presentation of the June 2017 Yard of the Month Award to Craig Stahl of 1704 Waverly Attachments: Agenda Item Report Mayor Pro Tem Stehman presented the Yard of the Month plaque and gift certificate to Mr. Stahl. City of Collinsville Page 1 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 Pictures of Mr. Stahl's yard was displayed on the monitors. F. BUSINESS PRIOR TO PUBLIC INPUT G. COUNCIL DISCUSSION 1. Presentation of 2016 Comprehensive Annual Financial Report Attachments: Agenda Item Report 2016 FINANCIAL STATEMENTS.pdf Finance Director Tamara Ammann introduced Mike Williams and Penny Scovill of Hochschild, Bloom and Company auditing firm. Mr. Williams gave an overview of the City's Comprehensive Annual Financial Report (CAFR) for the time period ending December 2016. He spoke of the introduction letter regarding the City's profile, local economy, and financial planning. He mentioned the City's Certificate of Achievement for Excellence in Financial Reporting. He highlighted the Independent Auditor's Report which represented a clean opinion. He mentioned the Management's Discussion and Analysis section of the CAFR regarding balances in the various accounts as of December 31, 2016. He highlighted the totals: Assets = $95 million Deferred Outflows = $6.6 million Liabilities = $78 million Total Net Position = $21,413,000 This report also gave a comparison of 2016 to that of 2015 which indicated an improvement. He advised revenues are slightly up from 2015 which is attributed to the utility tax rate change while overall expenses are less than 2015. He spoke of the various funds and balances for each (Governmental, Proprietary and Pension). Mr. Williams gave a synopsis of the notes regarding financial statements. He advised the City's bank balances were secured. He spoke of new accounting standards regarding investments. He spoke of capital assets and depreciation of the assets. He mentioned the long-term debit obligations and pension liabilities. He explained the supplemental information consisting of budget to actual report. He mentioned the statistical section which shows a comparison over the last 10 years. He reference a letter from his firm regarding internal controls over financial reporting to which no instances of noncompliance or deficiencies were detected. He also spoke of recommendations noted pertaining to policies and procedures. City Manager Bair inquired if Director Ammann wished to summarize or highlight any aspect of the auditor's report. She addressed the three versions of financial statements. She explained the City budgets on a cash basis which she explained is similar to a personal checking account in that the reporting is based on when the funds are deposited and/or withdrawn. However, per standards the City of Collinsville Page 2 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 funds have to be on an accrual basis with funds that are owed to the City but not yet received. She further explained the government wide financial statements are on a full accrual basis. She explained all cities are to follow the same accounting principles set by GASB (Governmental Accounting Standards Board) and the auditing firm audits the City based on those standards. Director Ammann inquired of Mr. Williams as to how the City of Collinsville compares with other cities with regards to pension liabilities. Mr. Williams indicated it varies based on the plan but the IMRF liabilities are not as much as the other pension liabilities. Director Ammann explained they are to be 90% funded by 2040. Mayor Pro Tem Stehman inquired of potential benefits for paying more towards the liabilities now to which Mr. Williams indicated it is based on the percentage received versus percentage paying. Mr. Williams warned that prefunding would be using resources now that the City could not get back. 2. Collinsville Area Recreation District (CARD) City Manager Bair advised he attended the Collinsville Area Recreation District (CARD) meeting and asked the board to table the item in an attempt to find a better solution since it impacts Collinsville; however, the Board voted 4-1 to accept petition to disconnect several Maryville properties from CARD. He explained approximately 64.4% of CARD's EAV is generated from Collinsville property taxes which is approximately $2.3 million annually. If you subtract the 60% debit ratio, the City contributes about $990,000 towards operating expenses. He explained the more properties that disconnect means less funding towards operations. This causes a negative impact on Collinsville residents since less funding is available for park maintenance. He indicated CARD is looking for a solution. He explained the lease agreement between the City and CARD was initially for 19 years and renewed in 2010 making it enforced until 2029. He clarified that the City does not receive revenues from this lease agreement. He addressed comments regarding the City making capital improvements to the parks since the City owns the properties. He advised the City makes utility improvements at the parks. He further indicated that the City's goal is to provide quality recreational services and facilities at a reduced tax rate. He explained the City's options are limited. Councilman Brombolich clarified it was not a City decision but rather a vote by the people by way of a referendum to create a park district in 1991. Mayor Pro Tem Stehman indicated his goal is to provide the best parks for the citizens. He reiterated that 64.4% of CARD's budget comes from Collinsville residents. He expressed the need to continue to work with CARD for solutions. Councilman Jerome advised he too attended the CARD meeting. He introduced himself to several of City of Collinsville Page 3 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 the members who expressed an interest in meeting with the City. Mayor Pro Tem Stehman inquired of additional information from Corporate Counsel Steve Giacoletto. Attorney Giacoletto indicated he had several discussions with CARD's attorney, Andy Carruthers; however, they now have a new attorney as well as new board members. He reminded Council that this has been an ongoing discussion with CARD for the past 2 years. He indicated CARD is not putting money into City owned parks with the exception of minimal maintenance. Councilman Jerome indicated that there may be some confusion as to what is deemed maintenance versus capital improvements and that additional discussions may be necessary to identify responsibilities. Councilman Jerome referenced a comment made by CARD board member Mark Achenbach regarding "things to change the profit margin" but he (Achenbach) did not elaborate. Councilman Jerome would like additional information regarding options. Attorney Giacoletto agreed that additional discussions may be beneficial since there is a new attorney and 2 new board members representing the Collinsville Area Recreation District. He also advised that the lease does not spell out maintenance responsibilities but the City does take care of the roads, water and sewer issues. He further stated the lease has a provision that indicates capital improvements are the responsibility of CARD but at their discretion. Councilman Jerome spoke of rusted playground equipment and inquired if it is a maintenance issue or capital improvement project. A discussion was had regarding playground equipment, improvements previously done by CARD and maintenance. Councilman Brombolich clarified that the City does not have a tax to cover the expense for maintenance or capital improvements; however, CARD does. Mayor Pro Tem Stehman reiterated that the citizens of Collinsville are paying over 60% of the operating expenses for and to CARD. He further asked the City Manager and Corporate Counsel to continue discussions with CARD for possible options and report back to Council. H. SPEAKERS FROM THE FLOOR Mary Drumm indicated some confusion about lease agreement between the City and CARD. She gave an example of regarding landlord and tenant agreements. She inquired of liability issues for injury prone areas in parks. Robert Thiel spoke of the financial report being over 100 pages. He inquired of the effective date of the Southwest Corridor TIF District. He further inquired if notice was given regarding the tax rate for the new Business District. He spoke of the location of the new water treatment plant. He suggested City of Collinsville Page 4 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 that negotiations with CARD should have began a couple of years ago. Phil Astrauskas spoke of financial statement and indicated it lacked comparison. He inquired of the current pension funding percentage. He referenced landlord agreements for rental property regarding improvements. He inquired of a time table for various projects. He mentioned the need for sidewalks. He inquired of the status of the Apex building. He asked if alcohol was going to be permitted at the Smokin' on Main event. I. COMMENTS & ANNOUNCEMENTS - MAYOR Mayor Pro Tem Stehman had no comments. J. COMMENTS & ANNOUNCEMENTS - COUNCIL MEMBERS Councilman Jerome indicated concern that the City may carry some liability with regards to the parks and encouraged discussions regarding responsibilities. He mentioned training he attended at the Illinois Municipal League. During the finance portion of the training they talked about some cities being luck to have well qualified personnel and specifically mentioned Director Ammann. He spoke of town hall meeting opportunities. Councilman Brombolich addressed comments from the public. She reiterated Attorney Giacoletto's comment that the City has been involved in discussions with CARD for 2 years. She explained the CARD lease agreement is not the same as a rental property agreement. She indicated capital improvement projects will be discussed as part of the budget. She explained the CIP will include a street repair inventory as well as a plan for street, water and sewers. She advised the CAFR (Comprehensive Annual Financial Report) was available online for review and included previous years as comparison. Mayor Pro Tem Stehman clarified that the City is addressing road repairs and sidewalks. He mentioned the increase in the utility tax was implemented to facilitate repairs. K. COMMENTS & ANNOUNCEMENTS - CITY STAFF City Manager Bair spoke of the St. Peter and Paul building expansion dedication ceremony. He addressed some of the comments made. He indicated the CARD lease agreement includes maintenance to be addressed by CARD. He explained the City carries insurance for the park properties. He advised the Southwest Corridor TIF and Business District is in effect, taxes are being collected and the City fulfilled statutory requirements for notifications. He inquired of Director Ammann on the current pension liability. She advised she did not have immediate access to address the question; however, indicated the City has always made the required contribution for funding. City Manager Bair mentioned the financial report and advised yearly comparisons were made with respect to revenues and expenditures. He further explained the process for a CIP plan which will be discussed at the July 10 meeting. He advised a liquor license application was submitted for the Smokin' on Main event. He advised, as part of the redevelopment agreement, the City recently performed an inspection of the lofts at the former Apex building. Issues were addressed and final City of Collinsville Page 5 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 occupancy is pending. L. CONSENT AGENDA City Clerk Wasser read the Consent Agenda. 1. Motion to Approve Payment of Bills for the Period Ending June 16, 2017 in the Amount of $603,775.77 Attachments: Agenda Item Report 06-26-17 Board List 06-09-17 Board List 06-15-17 Utility Rebates Board List 06-16-17 2. Motion to Approve Payroll for the Period Ending June 2, 2017 in the Amount of $548,896.12 Attachments: Agenda Item Report Board List 06-02-17 3. Motion to Approve Minutes of the June 12, 2017 Meeting Attachments: Agenda Item Report 061217 RegMtg.pdf Mayor Pro Tem Stehman asked if the Council wished to pull any items prior to a Motion. No items were pulled. Councilman Jerome clarified his comments as listed in the June 12, 2017 meeting minutes. He explained that he did not mean he would have to recuse himself because he visits the restaurants in town as that is not the basis of conflict. He further explained conflict of interest and gave examples. A motion was made by Councilman Jerome, seconded by Councilman Brombolich, to approve the Consent Agenda. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller Abstain: 0 M. NEW BUSINESS 1. Ordinance to Waive the Competitive Bidding Procedure and Award a Sole Source Contract for the Purchase of a 2016 John Deere 6120 Tractor with 22 City of Collinsville Page 6 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 Foot Boom Mower Attachment from Woody’s Municipal Supply Co.in the amount of $113,843.00 Attachments: Agenda Item Report Ordinance Boom Mower Memo Price Quote Shiloh Valley IJPP Woody's Municipal Used Tractor Quote Overview by Mike Prosser, Street Department Foreman, who explained the City's 2002 John Deere boom mower was damaged due to an electrical fire that occurred on March 12, 2017. The tractor was declared a total loss by a third-party insurance adjuster who has been working with the City's insurance. The City's insurance policy provides for complete replacement cost. He further advised a replacement quote was received through the Illinois Joint Purchasing Program in the amount of $115,000 for a new John Deere tractor with mowing attachment; however, delivery of a new tractor is 9-10 weeks out. He continued to explain that a second quote was received from Diamond Mowers, in conjunctions with Wood's Municipal Supply, for a used 2016 John Deer tractor with new mowing attachment in the amount of $113,843. He explained the used tractor has minimal use (only 75 hours). He further explained the slightly used tractor comes with a full warranty, brand new attachment, and a 1-2 week delivery date. He advised the Council the Street Department is currently having to rent a tractor at a cost of $6,000 per month. Insurance was covering the rental cost. A settlement check was received today which concludes rental cost coverage. Funding for the purchase will come from the insurance settlement. Councilman Brombolich inquired if the insurance check will cover the complete cost of the replacement mower. He explained the amount is approximately $1,000 less but the City will be able to sell the damaged tractor to make up the difference and then some. She inquired of the stipulation regarding waiving bidding requirements since 2 bids were received. Attorney Giacoletto recommended to proceed as is unless there is an issue in obtaining a majority vote. City Manager Bair elaborated on the Illinois Joint Purchasing Program as they already go through the bidding process. A motion was made by Councilman Brombolich, seconded by Councilman Jerome to approve. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller Abstain: 0 2. Ordinance Authorizing the Sale of Personal Property Owned by the City (2001 Freightliner FL 80 Tandem Dump Truck) City of Collinsville Page 7 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 Attachments: Agenda Item Report Ordinance Marion County Purchase Offer Foreman Prosser reminded Council of the approval to purchase a 2017 International dump truck from Rush Trucking Center through the Illinois Joint Purchasing Program in the amount of $125,772. Rush Trucking Center offered $12,500 trade-in allowance for the 2001 Freightliner. Marion County Highway Department has offered to purchase the 2001 Freightliner for $25,000. This represents a increase of $12,500 to the City through efforts to maximize the resale value of surplus equipment. He explained the ordinance declares the 2001 Freightliner as surplus and allows for the sale of the truck to Marion County Highway Department in the amount of $25,000. Councilman Jerome thanked Mr. Prosser for his efforts. A motion was made by Councilman Jerome, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller Abstain: 0 3. Ordinance Establishing Salaries/Wages for Full-time, Non-union Personnel and Part-time, Non-Union Personnel Attachments: Agenda Item Report Ordinance Human Resource Coordinator Stacey O'Brien explained the ordinance allows for a 4% increase for non-union personnel, conversion of 2 part-time positions into full-time positions, and an internal lateral transfer. She further explained that City administration reviewed the current budget and concluded a salary adjustment of 4% was appropriate and consistent with recent pay increases to union employees. She recommended an effective date for the salary changes to be June 19, 2017 to offset an 8.9% increase in insurance premiums. Historically, the City applies salary increases to the same paycheck that includes the increase of health insurance premiums. She indicated the volume of work has substantially increased for the 2 part-time Administrative Clerk positions, namely Licenses/Permits Clerk and Police Evidence Clerk. Staff recommends transitioning the positions to full-time status effective July 1. Recommendation is based on volume of workload, organizational analysis, as well as best practices. She explained that upon ratification of Local 148B contract, the Administrative Assistant to the Fire Chief is no longer a union position. The vacant position has been converted to the position of an Executive Assistant. This is similar to what was previously done at the Police Department. She City of Collinsville Page 8 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 advised the change is occurring through an internal lateral transfer of Tracy Carlson, from Community Development Planning Assistant to Executive Assistant in the Fire Department. Councilman Brombolich inquired of last years health insurance increase. Mrs. O'Brien believed it was 5% or less but would need to check for an actually amount. Director Ammann spoke of the insurance pool the City is participating in with minimal increases when compared to others. She further advised the increase may be because of the recent addition of Effingham into the pool. Councilman Brombolich also spoke of the effective date for raises and explained previously the effective date was January but that has changed. City Manager Bair spoke of a transitional process for future raises that will include performance evaluations. He also noted that in the past union employees received retroactive raises but that was not part of the recent collective bargaining agreements. Mayor Pro Tem Stehman inquired of a HSA (health savings account). Director Ammann indicated she was not aware of a need for such a program. A motion was made by Councilman Brombolich, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller Abstain: 0 4. Ordinance Approving Collective Bargaining Agreement with the Fraternal Order of Police - Civilian Unit Attachments: Agenda Item Report Ordinance FOP Civilians Contract 2017-2019.pdf City Manager Bair explained this collective bargaining agreement represents the civilian staff (Clerks, Dispatchers, Code Enforcement and Animal Control) at the Police Department. He advised the agreement expires December 31, 2019 which is the same as the other union contracts. If approved, the civilian unit will receive a 2% base wage increase, which is not retroactive, in exchange for a freeze on new hire wages at the existing level. A motion was made by Councilman Jerome, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller City of Collinsville Page 9 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 Abstain: 0 N. OLD BUSINESS O. CLOSED SESSION Mayor Pro Tem Stehman asked for a motion to proceed into closed session to discuss in accordance with 5 ILCS 120/2(c): 11. Pending or Threatened or Imminent Litigation A motion was made by Councilman Jerome, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller Abstain: 0 P. ANNOUNCEMENTS City Clerk Wasser announced that the July 10 Council meeting will start at 6:00 pm in order to accommodate a lengthy discussion regarding the CIP. Q. ADJOURNMENT A motion was made by Councilman Brombolich, seconded by Councilman Green to adjourn at 8:36 pm. The motion carried by the following vote: Aye: 4 - Jerome, Brombolich, Green, and Stehman Nay: 0 Absent: 1 - Miller Abstain: 0 City of Collinsville Page 10 Printed on 8/16/2017 City Council Minutes - Final June 26, 2017 ADDRESSING THE COUNCIL DURING SPEAKERS FROM THE FLOOR Below are the rules for input during City Council meetings as set out in Ordinance No. 4765 entitled “Ordinance Governing Speakers From the Floor During Meetings of the City Council and the Commission, Boards, and Sub-Bodies of Collinsville, Illinois”. Speakers may address the Council during the time designated as Speakers From the Floor on the agenda. RULE 1: Speakers shall be allowed only during “Speakers from the Floor,” or at any other time if requested by a member of the City Council. RULE 2: Input must relate to a matter under the authority of the City of Collinsville. RULE 3: Upon request by the meeting Chairman for speakers from the floor, a prospective speaker shall express the desire to speak, be recognized by the meeting Chairman, approach the designated podium, and state their name and general subject matter to which they will address the City Council. RULE 4: After establishing their identity, prospective speakers shall immediately address only the City Council. RULE 5: Each speaker is limited to four (4) minutes to address the City Council. No extensions will be granted and no time shall be compensated to the speaker resulting from interruptions by or discussion with the City Council, City Manager, or any other City officer or employee. RULE 6: Speakers shall address only the City Council collectively or its members individually. Speakers shall speak to issues and shall refrain from personal attacks on City appointed officials and employees. Speakers may not address issues related to pending litigation in which the City or its subsidiary bodies, officers, agents, employees, boards or commissions is a party. RULE 7: Speakers shall not be permitted to advertise, solicit, request, urge, summon, or cajole the City Council or the general public, except as otherwise provided for herein, with regard to any products, goods, services, information, gains, losses, advantages, consequences, or any other similar matter, notwithstanding that there may or may not be any pecuniary, monetary, financial or property gain, loss, or benefit to the speaker or any other person or entity. RULE 8: Speakers shall act and speak with decorum and conform to conventional social manners in speech, writing, dress, and behavior. The audience shall refrain from conduct that disrupts the meeting in any way such as clapping, booing, loud talking or outbursts. A speaker may be immediately terminated at the meeting Chairman’s discretion. RULE 9: Determination of breaches of this Ordinance shall be made by the meeting Chairman. The meeting Chairman customarily will warn the speaker or members of the audience of inappropriate behavior through one warning use of the gavel. Subsequent inappropriate behavior shall result in the immediate removal of the responsible parties at the discretion of the meeting Chairman. City of Collinsville Page 11 Printed on 8/16/2017