City Council Meetings

WHEATON CITY COUNCIL PROCEEDINGS MONDAY, AUGUST 15, 2016 WHEATON CITY HALL, COUNCIL CHAMBERS, 303 W. WESLEY ST., WHEATON, IL 1. CALL TO ORDER AND ROLL CALL The regular Wheaton City Council Meeting was called to order at 7:00 p.m. by Mayor Michael J. Gresk. Upon roll call, the following were: Physically Present: Mayor Michael J. Gresk Councilwoman Suzanne Fitch Councilman John Prendiville Councilman John Rutledge Councilman Thor Saline Councilman Todd Scalzo Councilman Suess Absent: None City Staff Present: Michael G. Dzugan, City Manager John M. Duguay, Assistant City Manager James Knippen, City Attorney Paul G. Redman, Director of Engineering James P. Kozik, Director of Planning & Economic Dev. Vincent G. Laoang, Director of Public Works Robert R. Lehnhardt, Finance Director Chad W. Michaelis, Director of I.T. William R. Schultz, Fire Chief Holly A. Schulz, Director of Human Resources 2. PRESENTATIONS None. 3. CITIZENS TO BE HEARD None. 4. CONSENT AGENDA Councilman Prendiville moved and Councilman Saline seconded that the following action be taken on the Consent Agenda items: 1. Approve the Minutes of the August 1, 2016 regular Wheaton City Council Meeting, as submitted. 2. Adopt Resolution R-36-16, A Resolution Authorizing the Execution of a Certain Construction, Use and Indemnification Agreement (346 E. Oak Avenue). 3. Adopt Resolution F-37-16, A Resolution Approving the Final Plat of Wheaton Eye Clinic Second Resubdivision. 4. Receive the Procurement Officer’s Recommendation and Award Bid to Roesch Ford for a 2016 Ford Expedition XL SSV in the amount of $40,421. 5. Receive the Procurement Officer’s Recommendation and Award Bid to Red Horse, Inc. for Manhole Rehabilitation Project in the amount of $38,007.70. Council Proceedings August 15, 2016 / Page 2 6. Receive the Procurement Officer’s Recommendation and Award Bid to Computer Products Corporation for Desktop and Laptop Replacements in the amount of $123,365. 7. Receive the Procurement Officer’s Recommendation and Award Bid to R&W Clark Construction for Concrete Repair: Countryside Reservoir (Rebid) in the amount of $135,600. Roll Call Vote on Consent Agenda: Ayes: Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo Councilman Suess Councilwoman Fitch Nays: None Absent: None Motion Carried Unanimously 5. PASS ORDINANCE NO. F-1957, AN ORDINANCE AMENDING THE WHEATON LIQUOR CONTROL ORDINANCE, CHAPTER 6 – ALCOHOLIC BEVERAGES, SECTION 6-129 – HOURS OF BUSINESS Councilman Scalzo moved and Councilman Prendiville seconded that Ordinance No. F-1957, An Ordinance Amending the Wheaton Liquor Control Ordinance, Chapter 6 – Alcoholic Beverages, Section 6- 129 – Hours of Business, be passed. City Manager Dzugan reported that the City received a request from Fox Bowl to amend Sunday liquor sales time. He stated the Liquor Control Commission met on this issue on August 11, 2016 and unanimously voted to recommend the Sunday liquor sales time for Class H licensees be amended to start at 8 a.m. rather than the current noon start time. City Manager Dzugan recommended approval of the ordinance as submitted. Roll Call Vote: Ayes: Councilman Scalzo Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Nays: None Absent: None Motion Carried Unanimously 6. RECEIVE PLANNING & ZONING BOARD REPORT RE: ZONING APPLICATION #16- 14/SPECIAL USE PERMIT/213-217 SOUTH HALE STREET/WEST LIBERTY LLC AND PASS ORDINANCE NO. F-1958, AN ORDINANCE GRANTING APPROVAL OF A SPECIAL USE PERMIT TO ALLOW A PARKING LOT LOCATED AT 213-217 SOUTH HALE STREET TO BE USED FOR Council Proceedings August 15, 2016 / Page 3 ACCESSORY OFF-STREET PARKING FOR THE BUSINESSES LOCATED AT 208 SOUTH HALE STREET AND 204 WEST LIBERTY DRIVE – WEST LIBERTY LLC Councilman Suess moved and Councilman Rutledge seconded that the Planning & Zoning Board Report Re: Zoning Application #16-14/Special Use Permit/213-217 South Hale Street/West Liberty LLC be received and that Ordinance No. F-1958, An Ordinance Granting Approval of a Special Use Permit to Allow a Parking Lot Located at 213-217 South Hale Street to be used for Accessory Off-Street Parking for the Businesses Located at 208 South Hale Street and 204 West Liberty Drive – West Liberty LLC, be passed. City Manager Dzugan stated the Planning & Zoning Board met on July 26, 2016 and unanimously recommended approval of a special use permit to allow the existing 12 stall parking lot on the east side of Hale Street, between Liberty drive and Willow Avenue, to be used as accessory off-street parking for Egg Harbor Café and The Perfect Thing. He recommended receipt of the Planning & Zoning report and approval of the ordinance as presented. Roll Call Vote: Ayes: Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo Nays: None Absent: None Motion Carried Unanimously 7. ADOPT RESOLUTION R-38-16, A RESOLUTION APPROVING AN INVESTMENT POLICY FOR THE CITY OF WHEATON Councilman Suess moved and Councilwoman Fitch seconded that Resolution R-38-16, A Resolution Approving an Investment Policy for the City of Wheaton, be adopted. City Manager Dzugan reported that the City Council discussed an update to the City’s Investment Policy at their August 8, 2016 Planning Session and directed staff to proceed with an update to the Investment Policy as discussed. He recommended approval of the proposed resolution. Roll Call Vote: Ayes: Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo Nays: None Absent: None Motion Carried Unanimously Council Proceedings August 15, 2016 / Page 4 8. POLICE AND FIREFIGHTER’S PENSION FUNDS ACTUARIAL VALUATION REPORT City Manager Dzugan stated the City engaged Foster & Foster to conduct actuarial valuations for the City’s Police and Firefighters’ Pension Funds. He indicated the report prepared by Foster & Foster is being provided for informational purposes regarding future funding needs for these pensions. City Manager Dzugan advised the Council that the City will need to provide additional contributions of over $700,000 in the next fiscal year and approximately $1.7MM in contributions over the next six years. He introduced Mr. James Franken of Foster & Foster to provide a summary of their report. Mr. Franken summarized the actuarial report prepared for each of the Police and Fire Pension Funds. He reviewed the annual process Foster & Foster utilizes to conduct this review, the new accounting requirements according to the Governmental Accounting Standards Board (GASB) and outlined the changes they recommended for the actuarial valuation reports. Mr. Franken stated assumption changes were made to allow for higher contributions today and less backloading in the future. He indicated contributions for next year to the Fire Pension Fund increases from $1.1MM to $1.4MM and $2.4MM to just over $2.7MM for the Police Pension Fund. Mr. Franken stated they utilized a 7% investment return in their analysis. In response to questions raised by members of the City Council, Mr. Franken provided the following: Ø The investment return for the Police Pension Fund was -1.4% this year and 5.04% for the prior year and the Fire Pension Fund was -1.3% this year and 6.2% for the prior year. Ø The 7% assumption is forward looking over the next 20 – 30 years. He confirmed they will review the 7% assumption annually. Ø A good study is not publically available at this time which identifies differences in life expectancies for police and firefighters compared to the general population. Ø Pension costs will continue to increase over time and hopefully investment returns will be able to contribute to funding the contribution requirements. Ø The goal of the current funding methodology is to be 100% funded by the year 2040. The contribution is designed to be a level percentage of payroll each year with 4.5% increases in payroll growth. Ø Other Illinois communities are facing the same situation. While other states have some of the same issues, they may not be to the same extent as exists in Illinois. Ø The unfunded liability under GASB will appear as debt on the City’s balance sheet. Ø Potentially it may be beneficial to the City to borrow money at a rate lower than 7% and invest that money in the pension funds. Ø The earnings assumptions on expected rate of investment returns may be different between the two pension funds based on the approaches used by each investment firm. Ø The City is not necessarily required to contribute the amounts shown in the report as Illinois statutes require 90% funding by 2040 or what the Department of Insurance requires, although it would be beneficial to contribute more to the funds now rather than later. In response to Councilman Prendiville, City Manager Dzugan stated that, without a constitutional amendment by the Illinois legislature, there are not many options available to reduce pension costs other than not hiring additional personnel. Councilman Rutledge stated that the majority of these requirements are State imposed and, according to his calculations, the unfunded liabilities are $800 - $900 per person in Wheaton. Councilman Suess stated that the City has no control over pension liability and Wheaton residents are funding benefits they themselves may not receive. He indicated the solution to this lies with the Illinois legislature. Council Proceedings August 15, 2016 / Page 5 Mr. Franken added that a second tier of benefits became effective as of January 1, 2012, and anyone hired in the public sector after that date will receive a lower rate of benefits. Private sector employers can modify pension benefits as they choose; however, public sector cannot do so without a constitutional amendment. 9. COUNCIL COMMENT None. 10. APPROVAL OF WARRANT Councilman Suess moved and Councilman Saline seconded that Warrant No. 686 in the amount of $2,498,611.76 be approved. Roll Call Vote: Ayes: Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Councilman Scalzo Nays: None Absent: None Motion Carried Unanimously 11. CLOSED SESSION Councilman Scalzo moved and Councilman Rutledge seconded that the Wheaton City Council adjourn to closed session at 8:09 p.m. for the purpose of discussion Collective Bargaining (5 ILCS 120/2(c)(2)). Roll Call Vote: Ayes: Councilman Scalzo Councilman Suess Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Councilman Saline Nays: None Absent: None Motion Carried Unanimously The City Council returned to the open portion of their meeting at 8:35 p.m. 12. ADJOURNMENT Councilman Saline moved and Councilman Scalzo seconded that the regular Wheaton City Council Meeting be adjourned at 8:36 p.m. Roll Call Vote: Ayes: Councilman Saline Councilman Scalzo Councilman Suess Council Proceedings August 15, 2016 / Page 6 Councilwoman Fitch Councilman Prendiville Councilman Rutledge Mayor Gresk Nays: None Absent: None Motion Carried Unanimously Respectfully submitted, Sharon Barrett-Hagen City Clerk