SYCAMORE CITY COUNCIL AGENDA April 7, 2014

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1 SYCAMORE CITY COUNCIL AGENDA April 7, 2014 CITY COUNCIL COMMITTEE MEETINGS No Committee Meetings are Scheduled. 1. CALL TO ORDER 2. INVOCATION REGULAR CITY COUNCIL MEETING 7:00 P.M. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA 5. AUDIENCE TO VISITORS 6. CONSENT AGENDA A. Approval of the Minutes for the Regular City Council Meeting of March 17, B. Payment of the Bills for April 7, PRESENTATION OF PETITIONS, COMMUNICATIONS, AND BILLS. 8. REPORTS OF OFFICERS 9. REPORTS OF STANDING COMMITTEES 10. PUBLIC HEARINGS A. Public Hearing on the Proposed FY City Budget. 1

2 The Annual Budget for Fiscal Year that extends from May 1, 2014 through April 30, 2015 is presented for review and public comment. This budget document compiles the numerical and narrative budgets for each General Fund department and each of the City s capital funds, special funds, and bond funds in one volume for easy reading and reference. Spending within the FY2015 Budget totals $56,689,816 inclusive of all City funds (including $28,633,794 in pass-through fuel funds). The General Fund expenditure budget totals $14,180,842. These expenditures are offset by $14,181,738 in anticipated General Fund revenues. No new taxes are proposed in the FY15 budget as anticipated revenues are comprised from existing sources. The estimated General Fund operating reserve or starting fund balance as of May 1, 2014 is $4,704,975 or 33% percent of the planned General Fund expenditures for FY2015. General Fund operating expenditures continue to be constrained to meet general revenues that are beginning to rebound from the depths of the great recession. Non-personnel categories have been increased by inflation for the first time since The only spending categories to experience increases in excess of inflation are those associated with safety and training. The City s employees have made a concerted effort to work safely and the results of less work injuries led to a decrease in the City s worker s compensation premiums for the first time in over 10 years. General capital reserves will again be brought into the General Fund to achieve departmental spending targets that continue basic services. Consistent with the 5-7 year plan to bring the General Fund to financial independence, capital transfers have been reduced by $100,000 from FY14. The proposed transfers of $385,000 are roughly half of the $728,000 that was relied on in FY12. This has been possible due to an improving economy, reducing debt service obligations through a refunding bond, the addition of new business and fiscal constraint. Aside from conventional operating expenditures, other significant General Fund expenditures include the following: Debt service of $408,500 to fund the principal and interest on the 2007 general obligation bond ($200,000); 2005 refunding bond ($55,000); and the 2002 general obligation bond ($153,500). An allocation of $360,000 ( ) to pay the FY15 sales tax rebates. Relatively static health insurance premiums (line items 8474 & 8477) and a slight decrease in workers compensation costs. A slight ($4,000) decrease in Dispatch Services was negotiated with DeKalb County. A reserve transfer of $75,000 to the Employee Benefit Assistance Fund (Fund 23) for accrued leave payouts in the event of the retirement of several senior employees in FY

3 The City Council has maintained a commitment to capital infrastructure improvements. This commitment honors the deep community concern about failing streets, in particular. The ability to maintain this commitment is also based, in part, on prudent fiscal measures taken in years past to segregate capital funds from operational funds, and to appropriately match such funds with uses that reflect community expectations. In FY2015 the capital and special funds will remain balanced with appropriate reserves. Highlights of the FY capital program are listed below: A street maintenance program of $2,698,000 ($2,305,000 from the Street Maintenance Fund and $393,000 from the Motor Fuel Tax Fund). This will include residential streets and the widening and resurfacing of Bethany Road from Peace Road to Aster Drive which will begin in the spring of Additional streets may be added in FY15 after the effects the voracious winter had on our streets are assessed. Phase II (chlorination of the excess flow clarifier and the addition of a centrifuge) design of Phase III will begin in FY15. A rolling stock plan has been identified to begin a systematic rotation of front-line vehicles and equipment; notably police cars, fire trucks and ambulances and dump trucks with plows. The City intends to make significant technology upgrades including a redesigned website and new phone system. The preliminary budget is on the City s website at on reserve at the Sycamore Public Library and available for purchase at cost in the City Clerk s Office. City Council action on the proposed FY2015 City Budget will occur on April 21, ORDINANCES A. Ordinance No An Ordinance Authorizing the Execution of an Intergovernmental Agreement Extension Between the City Council of the City of Sycamore and the Board of Education of Community Unit School District Number 427 Regarding School Resource Officers in the City of Sycamore, Illinois. First and Second Reading. In July, the School Resource Officer agreement between the City of Sycamore and the Sycamore School District 427 is set to expire. For several months representatives of the City and School District have met to discuss the program and an extension of the agreement. During the discussion the School District expressed a desire to explore the possibility of adding an additional School Resource Officer at the Middle School while maintaining the SRO currently at the High School. 3

4 The City and the School District administration have recently prepared an extension to the intergovernmental agreement that would assign a School Resource Officer in both the Middle School and High School on days when school is in session. The School District will reimburse the City the costs associated with replacement officers for the school year. The Board of Education directed the Superintendent to pursue the additional SRO position in February and is expected to take action on the agreement on April 8 th. The key features of the agreement are as follows: The agreement becomes effective on August 1, The duties of the SROs will include, but not be limited to, investigation of violations of the law, classroom presentations, protection of students, school personnel and school property, participation in the development and administration of school security policies and practices, training for school staff and security personnel and such other duties as may be assigned by the Chief of Police or his designee from time to time. The School Resource Officers may be in any of the schools of School District 427, but shall be primarily located in the High School and Middle Schools. While on duty, the assigned officers shall be administratively supervised by the City s Police Investigations Division Sergeant and functional supervision shall lie with the respective school principals. When school is not in session in School District 427, the officer shall be assigned to such police activities as the Sycamore Police Department deems appropriate. School District 427 shall reimburse the City for a percentage of the financial obligation for the SRO s salary and benefits. This amounts to $60,000 per year/officer. This amount will be reviewed annually. The assigned officers shall have at least five years of experience as a police officer. City Council approval is recommended. B. Ordinance No An Ordinance Authorizing the Renewal of Aggregation Program for Electrical Load in the City of Sycamore, Illinois. First and Second Reading. In March of 2012, voters approved a referendum which authorized the City Council to enact an Electric Aggregation Program. Through membership in the Northern Illinois Municipal Electric Collaborative (NIMEC), the City solicited bids and entered into a two year contract with First Energy for a fixed rate for electricity of 4.81 cents/kwh. During the program s first 15 months of operation, participating households have saved an average of $264 in electric supply costs, for a cumulative City-wide savings of $1,460,000. 4

5 The current two year contract with First Energy will expire in August of 2014, and the attached ordinance will authorize NIMEC to solicit bids for renewal of the Electric Aggregation Program. NIMEC will solicit bids for electricity prices for one, two and three year terms, and will present the bids to the City on April 21 st. There have been a few noteworthy changes in the electrical market over the past two years: The margin between market rates as contracted through municipal aggregation and Commonwealth Edison s blended rate has narrowed. ComEd s rates were higher than market rates for several years in large part due to a 2007 decision to lock in fixed rates. The great recession combined with collapsing natural gas prices put enormous downward pressure on electricity prices. Many of ComEd s fixed rate contracts matured in 2013, resulting in rates that have fallen closer to market rates achieved through municipal aggregation. Typically, long-term power rates are higher than short-term rates. However, that has not been the case in 2014 thus far. Regulated transmission charges are set to increase for the next two years, but drop in the third year. Therefore municipal aggregation rates for 36 months are being bid lower than 12- and 24-month terms. Additionally, the recent cold snap has also put upward pressure on short term rates. To protect the City from locking in rates above ComEd s blended rate, NIMEC bids contain an escape clause. In the event the ComEd rate is set below the aggregated rate, the City has the option of suspending the program, returning residents to the lower ComEd rate. Unfortunately, only a few suppliers are offering this provision. Therefore, several municipalities have selected rates without the provision to obtain the most competitive pricing. Previously, the ComEd rate was fixed for 12 months however it is now a moving target, making comparison more difficult. The ComEd rate historically has been set annually for the Energy Year beginning in June through May. The Illinois Commerce Commission has recently approved ComEd s request to re-set the rate in the fall. Further complicating the ComEd rate is a monthly true-up, adjustment based upon actual usage. ComEd buys power in large blocks based upon historical usage projections. Actual usage varies. The difference is charged to ComEd customers (who buy their power from ComEd) in a line item called the Purchased Electricity Adjustment (PEA). Muncipal aggregation enrollees do not pay this charge. The PEA can change each month, and is limited to a ½ charge. In 27 of the last 33 months, the PEA has been a ½ charge. In order to control for the additional complexities outlined above and ensure Sycamore participants achieve a cost savings, NIMEC will monitor the program s rates each month relative to the variable ComEd rate. In the event the City selects a supplier with the escape clause, the City would have the option of returning all residents back to ComEd should the ComEd rate be set below the aggregated rate or the rolling 12-month period s savings turn negative. If the City 5

6 selects a supplier without the escape clause, the individual resident would need to make that decision. There will be no early termination fees or opt-out charges in future bids. Should an aggregation program be suspended and residents returned to ComEd, residents have two months to move to another supplier. If not, they are then locked into ComEd for an additional 10 months. Action on Ordinance simply allows City staff to work with NIMEC to solicit renewal rates for the aggregation program. Action on the award of a contract to an electrical supplier and the term would be decided on April 21 st. David Hoover of NIMEC will be on hand to answer questions. City Council approval is recommended. C. Ordinance No An Ordinance Approving a Collective Bargaining Agreement Between the City of Sycamore and the American Federation of State, County and Municipal Employees, Council 31, on Behalf of AFSCME Local First and Second Reading. This spring City administration and representatives from AFSCME Council 31 and Local 3957 opened collective bargaining for a successor agreement to the current contract which expires on April 30, On March 14 th a tentative agreement was reached with the following terms: 1. A one-year agreement beginning May 1, 2014 and ending April 30, A 1% wage increase on May 1, 2014 and a 1% increase on November 1, The addition of Certified Public Accountant as a professional certification. 4. Revised non-economic language regarding probationary periods, temporary assignments and use of sick and compensatory time. 5. The Agreement expires on April 30, Local 3957 ratified the tentative agreement on March 26 th. City Council approval is recommended. D. Ordinance No An Ordinance Authorizing the Execution of a Lease Agreement Between the City of Sycamore and S.I.S. in the City of Sycamore, Illinois. First and Second Reading. When the City acquired and renovated the Sycamore Center a focus was placed on keeping the State Street frontage as commercial retail space. In August 2012, S.I.S., a store that focuses on ladies' fashion and apparel leased a small portion of the retail space in the Sycamore Center to begin the process of establishing a retail home for their business. S.I.S. has been successful in the location and has expressed a desire to 6

7 permanently move into the larger space that was previously occupied by Sycamore Antiques. Several discussions led to the framework of the attached lease agreement which includes: A two-year lease (April 8, 2014-April 30, 2016) with a monthly rent of $725, which includes utilities and taxes. S.I.S. will control the show windows that face State Street. Access to the space will be from the State Street entrance. S.I.S. will have the first option to rent the smaller suite B should the City receive interest from a potential tenant. City Council approval is recommended. E. Ordinance No An Ordinance Concerning the Adoption of the Combined Budget and Appropriation Ordinance for the Fiscal Year in the City of Sycamore, Illinois. First Reading. Ordinance formally adopts the Fiscal Year 2015 budget. This ordinance is presented on first reading only. The budget is on the City s website at on reserve at the Sycamore Public Library and available for purchase at cost in the City Clerk s Office. City Council action on the proposed FY2015 City Budget will occur on April 21, F. Ordinance No An Ordinance Amending Title 1, Administration, Chapter 10, Personnel Rules, of the City Code of the City of Sycamore to Authorize Non-Elective Positions for the City of Sycamore, Illinois. First Reading. Coincident with the adoption of the fiscal year budget, the Council establishes the employees in its budget by adopting a new list of appointments. The attached ordinance accomplishes this purpose. This ordinance is presented on first reading only with action to be taken on April 21 st. G. Ordinance No An Ordinance Establishing Offices and Fixing the Compensation of Certain Appointed Officers of the City of Sycamore, Illinois, County of DeKalb, State of Illinois for the Fiscal Year Commencing on the First Day of May, 2014 and Ending on the Thirtieth Day of April, First Reading. The FY City Budget assumes certain levels of compensation for exempt employees, which include management positions and a number of part-time positions. In FY2015 inflationary increases mirror those of employees covered under collective bargaining agreements. The attached ordinance displays these levels of compensation and related benefits. This ordinance is presented on first reading only with action to be taken on April 21 st. 12. RESOLUTIONS 7

8 A. Resolution 594 A Resolution Authorizing the City Manager to Sign a Letter of Credit to Provide Financial Assurance for Radium Decommissioning Activities in Accordance with the Regulations of the Illinois Emergency Management Agency. As part of the City s system to remove radium at Wells #6, 8, 9 and 10, Illinois Emergency Management Association (IEMA) requires financial assurance from the City for the potential decommissioning of the radium treatment system. This assurance is a guarantee by the City that funds would be available to properly remove the radium treatment equipment if radium filtering becomes no longer necessary. The City s total financial assurance obligation is $300,540. There are five ways of providing financial assurance that are acceptable to IEMA including a letter of credit, a surety bond, a certificate of deposit, self-guarantee, and a parent company guarantee. In 2007, the City chose the self-guarantee option and created the Radium Decommission Fund to hold the guarantee funds. Each year, a reserve transfer was made from the Water Fund to the Radium Decommission Fund to fund this obligation and to cover the ongoing costs of radium treatment. However, with Well #10 set to go online with radium removal this spring, the City Manager decided to review the financial assurance options. It was determined that a letter of credit was the City s best financial option. A letter of credit would fulfill the IEMA requirements while making the current radium decommission funds available for budget liquidity in the Water Fund. A letter of credit in the amount of $300,540 would carry an annual fee of $1, which has been budgeted in the Radium Decommission Fund. City Council approved is recommended. 13. CONSIDERATIONS A. Consideration of a Recommendation to Award a Contract to Elliott and Wood, Inc. of DeKalb, Illinois for the Reconstruction and Widening of Bethany Road 865 Feet East of Peace Road to 400 Feet East of Aster Drive. For several years the City has identified a multiple phase project to widen Bethany Road to three lanes from Peace Road to Somonauk Street. The first phase of the project was included in the 2014 Street Maintenance Program and includes the widening of the section 865 feet east of Peace Road to 400 feet east of Aster Drive. As part of the project the new section of the street will have curb and gutter and storm sewer will be installed. Bids were solicited in March and a bid opening was held on April 1 st. A total of three bids were submitted. Contractor Lump Sum Bid Elliott & Wood-DeKalb, Illinois $918, Martin & Company-Oregon, Illinois $942, Alliance Contractors-DeKalb, Illinois $944,

9 The engineer s estimate for this phase of the project was $1,075,947. The City s consulting engineer has reviewed the bids and recommends award of a contract in the amount of $918,000 to Elliott and Wood, Inc. of DeKalb, Illinois. During the project Bethany Road will be closed to thru traffic. Construction is expected to begin in early May. City Council approval is recommended. B. Consideration of a Recommendation to Award a Contract to Elliott and Wood, Inc. of DeKalb, Illinois for Spot Curb and Gutter Replacement and the Re-surfacing of North Avenue. As part of the City s 2014 Street Maintenance Program 4 ½ inches of pavement will be removed and replaced with concrete on North Avenue from N. Main Street to N. California Street. Bids were solicited in March along with the Bethany Road project as both surfaces will be concrete. Bids were received and opened on April 1 st. A total of five bids were received as follows: Contractor Lump Sum Bid Landmark Contractors-Huntley, Illinois $211, Alliance Contractors-DeKalb, Illinois $216, Triggi Construction-West Chicago, Illinois $191, Elliott & Wood-DeKalb, Illinois $199, Sjostrom, Rockford, Illinois $219, The engineer s estimate for the project was $219,034. The City s local preference policy allows for a DeKalb County based company to match the lowest bid based on the following scale: Up to $499,999 = 5% Preference Provision $500,000 to $749,999 = 4% Preference Provision $750,000-$999,999 = 3% Preference Provision $1,000,000-$1,249,999 = 2% Preference Provision $1,250,000-$1,499,999 = 1% Preference Provision Over $1,500,000 = No Preference Provision This project, being less than $499,000 would have a 5% preference provision. Therefore, Elliott and Wood, as the lowest local contractor within the 5% provision has the opportunity to match the low bid of $191, The company has indicated it will match the low bid. As a result, a contract in the amount of $191, to Elliott and Wood, Inc. of DeKalb, Illinois for spot curb and gutter replacement and re-surfacing of North Avenue is recommended. 9

10 City Council approval is recommended. C. Consideration of an Extension to the Contract Between the City of Sycamore and the Sycamore Chamber of Commerce for Visitor Attraction and Economic Development. The three-year contract between the City of Sycamore and the Sycamore Chamber of Commerce for tourism and community development services expires at the end of fiscal year During the past three years, the Chamber has been committed to the following services: 1) Maintaining a professional staff including a full-time Executive Director and Discover Sycamore/Tourism Director to maintain a visitor attraction program and to assist the City in its business attraction efforts. 2) Providing oral presentations to the City Council regarding ongoing tourism and community development activities of the Chamber. 3) Providing periodic reports to the City Manager identifying (a) efforts to market Sycamore to visitors; (b) the impact of sponsored events in drawing day trippers or overnight guests to Sycamore; and (c) the number and nature of inquiries concerning available Sycamore retail space. 4) Maintaining a current database concerning downtown Sycamore office and retail space including available space, rent per square foot, associated utility costs, and contact persons. 5) Providing advice and assistance to the City on business and industry retention matters. This means informing the City Manager of any confirmed intentions of local businesses to expand or relocate as soon as they are learned. The City s obligations have included the following: 1) Providing the Chamber a grant of Fifty Thousand Dollars ($50,000) payable in two equal installments to partially offset the cost of the downtown coordinator and to help finance a variety of marketing and advertising brochures aimed at attracting visitors. 2) The referral of retail prospects to the Chamber for further information about vacant downtown storefronts and other retail locations. 3) Informing the Chamber as soon as practicable about any likely changes in the City s tax policy, retention policy, incentive policy, and any other policies that may be critical to the Chamber s business attraction and retention efforts. Toward this end, regular contact is maintained between the City Manager and the Chamber staff, and the City Manager sits as an ex-officio member of the Chamber Board of Directors (the School District and Park District also have ex-officio representatives on the Chamber board). 10

11 4) Work cooperatively with the Chamber to help expand its funding base through public grant sources. This assistance typically takes the form of information regarding the City s demographics and its attractions. The Chamber of Commerce is requesting a three-year extension of the agreement and consideration of an increase in funding to $55,000 per year. Toward that end, in the first year of the agreement the funding would remain at $50,000, increase to $52,500 in year two and ultimately $55,000 in the final year. Funding has been static for six years while the Chamber s costs for marketing and personnel have increased. The Chamber will continue to provide the same services as outlined above. This continued support of the Chamber is included in the FY2015 Hotel/Motel Tax Fund budget. The City Manager recommends the Council s support for continuing this partnership. D. Consideration of a Fire Department Recommendation to Review Ambulance User Fees. The last time the City made adjustments to its ambulance billing fees was in February Since that time, the Fire Department has seen the costs of operating its ambulance service increase. In addition to increases in labor rates, the cost of ambulance supplies has increased 31% since These costs are being driven specifically by increases in the costs of medicines. For example, a medicine that cost $15 in the past now costs $110. Ambulance fees are charged based on level of service (BLS-Basic Life Support, ALS 1- Advanced Life Support 1, ALS 2, Treat-No Transport, and ALS Intercept) and residency (resident, non-resident, fire protection district resident). Additionally, there is a mileage charge based on the number of miles a patient is transported. The Fire Department occasionally has to respond to a request from private ambulance agencies or for-profit entities for a bariatric lift assist. A bariatric lift assist is when the private ambulance crew does not have enough man power to safely lift and move a patient due to the size of the patient and number of staff assigned to the call. While the City incurs overtime and worker s compensation liability for these calls, there is currently no charge for this service. A fee for this type of service ensures private companies offset these costs rather than Sycamore taxpayers. To review the current fee structure, the Fire Department undertook a survey of comparable communities. The results of the survey suggested that Sycamore was below the average for ambulance user fees. As a result of the survey and in order to keep pace with the costs of providing the service, the following adjustments to the current ambulance fee structure are being recommended: Increase the ALS 2 resident rate by $50 Increase the ALS 1 resident rate by $100 Increase the BLS resident rate by $23 Increase the ALS 1 non-resident rate by $150 Increase the BLS non-resident rate by $25 Increase the transport mileage charge to $10 per mile Create a bariatric lift assist fee to private ambulance agencies or for-profit entities at $700 11

12 Annually adjust the ambulance charges by CPI The following chart summarizes the rate changes: Resident Fire Prot. Dist. Non-Resident New Old Diff. New Old Diff. New Old Diff. ALS2 $750 $ $800 $800 0 $1,000 $1,000 0 ALS1 $550 $ $553 $553 0 $850 $ BLS $423 $ $423 $423 0 $575 $ Treat, No Transport $200 $200 0 Bariatric Patient Lift Assist: $700 Mileage (per loaded mile): New rate $10 Old Rate $8 Rates annually adjusted by Consumer Price Index (CPI) City Council direction is requested. E. Consideration of a City Clerk Recommendation to Adjust Solicitor, Peddler and Itinerant Merchant Permit Fees. The City Code only requires Solicitors, Peddlers and Itinerant Merchants to pay for the cost of a background check in order to obtain a license to operate within the City. The City Clerk recently surveyed area communities and found most have a fee for these types of licenses. The City routinely receives phone calls especially during warmer weather when solicitors are in town to verify that they have been authorized to conduct business in the City. Part of the fees proposed below would offset a better identification program to help residents and the Police Department easily identify that the solicitor has applied for and received a permit from the City. Therefore the following fee changes are being proposed: Solicitor fees: $25 per day Peddler fees: $50 per year Itinerant merchant fees: $50 per year City Council direction is requested. F. Consideration of an Administration Request for a Closed Session to Discuss Closed Session Minutes. 14. OTHER NEW BUSINESS 15. APPOINTMENTS 16. ADJOURNMENT 12