City of Moline Committee of the Whole met Nov. 19.
Here is the minutes provided by the committee:
PRESENT: Mayor Stephanie Acri (Chair)
Alderman Scott Williams (Ward 1)
Alderman David Parker, Jr. (Ward 2)
Alderman Mike Wendt (Ward 3)
Alderman Richard “Dick” Potter (Ward 4)
Alderman Sam Moyer (Ward 5)
Alderman Kevin Schoonmaker (Ward 6)
Alderman Mike Waldron (Ward 7)
Alderman Sonia Berg (Alderman At-Large)
ABSENT: None.
STAFF: J.D. Schulte, Interim City Administrator
Janine Hollembaek Parr, City Clerk
Rodd Schick, Interim Director of Public Works
Alison Fleming, Human Resources Manager
Lori Wilson, Parks Recreation Director
Greg Johnson, Interim Parks Recreation Director
Don Goff, Information Technology Manager
Bryon Lear, Library Director
Darren Gault, Chief of Police
Jeff Snyder, Fire Chief
Scott Hinton, City Engineer
Carol Barnes, Finance Director
Jeff Anderson, City Planner
Randi Haley, Utility Billing and Customer Service Manager
Dave Mallum, Fleet Manager
Keith Verbeke, Finance Manager
Arnie McCollom, WPC
K.J. Whitley, Community Development Program Manager
Tara Osborne, Grant Program Manager
Tony Loete, Utilities General Manager
OTHERS: Derke Price, Ancel Glink
Sue Blackall, Library Board President
John Barrett, USI Insurance
Chase Davis, Channel 4 News
Mike Weber, PGAV Planners
Mayor Acri called the meeting to order at 6:00 p.m. in Council Chambers.
Appointment and Oath of Office
Appointment and Oath of Office for Rodd Schick as Interim Director of Public Works, effective November 20, 2019.
Questions on the Agenda
There were no questions on the Agenda.
Agenda Items
1. An Ordinance amending Chapter 3, “ADVERTISING AND SIGNS,” of the Moline Code of Ordinances, Section 3-2108, “SIGNS IN THE PUBLIC RIGHT-OF-WAY,” by amending subsection (3) and enacting one new subsection (4); and amending Chapter 2, “ADMINISTRATION,” Table 2-6110.1 of Section 2-6110, “JURISDICTION; SCHEDULE OF PENALTIES,” by adding a penalty provision for Section 3-2108. Derke Price, Corporation Counsel, explained that Section 3-2108 of the Moline Code of Ordinances lists the types of signs that are allowed in the City’s public rights-of-way and provides for removal by the City of those in nonconformance. To further refine the City’s protection of its rights-of-way from nuisances, the City Council wishes to amend Section 3-2108 to place the enforcement of that section within the jurisdiction of the administrative adjudication system (MUNICES). In addition, the amendment to Table 2-6110.1 will add penalty provisions for violations of Section 3-2108 as follows: $50 for first offense, $100 for second offense, $200 for third offense, $400 for fourth offense and each offense thereafter; proven costs of collection and storage by the City, if any, shall also apply to each offense. These fines are in addition to any imposed for violation of Section 3-1102, which pertains to prohibited posting of notices, placards, bills, etc. in certain cases. A motion was made by Alderman Wendt to approve. Seconded by Alderman Waldron. There was discussion. A press release and news flash on the City website will be used to notify the public of the amendment. Motion passed unanimously.
~ The Committee of the Whole meeting adjourned at 6:11p.m., and the City Council convened in regular session for a Public Hearing for the Proposed Marquis Harbor-West Business District Plan. The hearing concluded at 6:14 p.m., and the Committee of the Whole meeting reconvened.
2. A Resolution authorizing the Mayor and City Clerk to execute and attest to an agreement with USI Insurance for brokerage services for liability, property, workers’ compensation and cyber insurance for a period of one year commencing December 1, 2019; and authorizing the Human Resources Manager to execute any and all documents necessary to bind and accept coverage with Insurance Program Managers Group (“IPMG”) for liability, property and workers’ compensation insurance and with Lloyds of London for cyber insurance, all for a period of one year commencing December 1, 2019. Alison Fleming, Human Resources Manager, stated that USI Insurance is the current broker for the City’s liability, property, workers’ compensation and cyber insurance. They have submitted an agreement to the City to provide coverage from December 1, 2019, through November 30, 2020, in the amount of $877,901. The liability, property and workers’ compensation insurance packages are through Insurance Program Managers Group (“IPMG”) using the Illinois Counties Risk Management Trust (“ICRMT”) insurance pool, and the cyber insurance is through Lloyds of London.
City staff was requested to review coverage levels, premiums and ancillary benefits offered by another insurance pool. The pool plan that was compared to Moline’s current coverage does not provide a policy to cover risk in several of Moline’s exposure categories. Garagekeepers liability, volunteer liability, liquor liability and liquor liability coverage for special events would have to be purchased separately for additional premiums. However, the other insurance pool did have better coverage for personal property of others, earthquakes, flood zones A and V, business income and direct damage from fungus. The other insurance pool would require a 31⁄2-year commitment and has provided rates for the first 11⁄2 years.
IPMG’s proposal reflects an increase of $10,964 or 1.25% more than 2019 when costs are reviewed on an annualized basis, but the increase is reflective of a 27% increase in property values following comprehensive appraisals of all City properties. The workers’ compensation insurance cost decreased by $4,670, and the cyber insurance cost decreased by $3,585 due, in part, to the efforts of the City’s IT Department. A motion was made by Alderman Wendt to approve. Seconded by Alderman Waldron. There was discussion. John Barrett, USI Insurance, confirmed that cyber coverage includes ransom. Motion passed unanimously.
2020 Budget Work Session
J.D. Schulte, Interim City Administrator, and Carol Barnes, Finance Director, led the second of two 2020 budget work sessions. At the first budget work session on November 5, 2019, questions were asked and additional information requested. Those will be addressed in this session.
A hand-out of Statement of Revenues, Expenditures and Changes in Fund Balances, for each 2019 and 2020, were reviewed. Referencing the 2019 Amended Budget provided, Barnes stated that staff has again reviewed revenue and expense balances, annualized year-to-date salaries and removed contra account balances. As a result, the general fund will end the 2019 fiscal year approximately $204,000 in the black. An anticipated FEMA accrual has been included, and TIF Advances have been itemized. Barnes reviewed three 2020 budget items that were brought up during the November 5, 2019, budget session, resulting in a $130,000 approximate change:
TIF #1: The Phillips Lofts rebate will be ending sooner, resulting in an increase to the fund balance of $36,000.
TIF#3: A $268 change was made for the dog park.
SSA#6: An additional $93,000 for 2019 and 2020 principal payment incorrectly budgeted.
Various hand-outs were provided and reviewed. Barnes explained that anticipated 2019 property tax assessment appeals, inside and outside TIF districts, total $421,817.08. No adjustment has been made within the budget as of yet. Historically, 90% of requests result in some type of credit. Mayor Acri suggested 50% may be a good assumption for budget inclusion. Alderman Wendt compared tentative vs. actual EAV for the past several years, reflecting an average variance of 1.4%. It will likely be April 2020, before all appeals have been heard and moved through the County Clerk’s office. In regard to appeals in TIF #8 (SouthPark), Barnes explained that there is an increment on the TIF and the base. Any appeal credit would decrease the base potentially over $1mm, and that would affect the City’s operating costs, not just the TIF increment.
A comparison of QCOMM to 911 Centre expenses was reviewed. There was discussion. It was noted that QCOMM start-up costs were financed by the ETSB. Fire Chief Jeff Snyder explained that personnel costs are expected to decrease due to attrition. If eligible per the agreement, the City could give notice in September 2020, of participation/agreement termination, however there is no alternative at this time. Alderman Parker noted that the City pays 50% of the bill, but has only 25% of the vote. Darren Gault, Chief of Police, explained that the costs are based on the volume of use. Mayor Acri indicated that Council is less concerned about the percentage of cost, and more concerned about the lack of control of that cost. Derke Price, Corporation Counsel, shared that there should be a more differentiated cost structure within the agreement (break-out of fixed and variable costs) to better align benefit to burden. Alderman Wendt requested verification that the QCOMM capital build-out was grant-funded, and that a provision exists that would hold the City responsible for a percentage of the start-up cost and debt upon termination. At Mayor Acri’s request, staff will provide an Informational presentation of options in January, 2020, including: 1) a cost analysis to identify cost savings to Moline and partner municipalities, 2) whether the City can leave QCOMM, 3) discussions with the state.
A 5% increase had been built into the budget for outside legal services, however Ancel Glink has notified the City that the 2020 increase will be $35,000. This is still an approximate savings of $39,000 as compared to prior in-house counsel. There was discussion. The consensus of Council was to continue with Ancel Glink and not engage in a request for qualifications. The additional cost will be paid with Contingency funds.
TIF #1 will sunset in 2020. A TIF review is planned for March, 2020.
Barnes walked through the Park Fund $1.5mm draw down. Corporation Counsel Derke Price noted that the City has acted under a particular provision of the statute allowing the Park Board complete control of land use under their jurisdiction. Mayor explained that the Quad Cities is reestablishing a sports commission, and it may address how individual interests are supported by each community. She indicated that it may be in the City’s best interest to go bigger on the pickleball courts in creating a niche to draw residents from surrounding communities. Alderman Wendt stated that tax levy funds may be allocated to the Parks Recreation operating budget. Alderman Potter noted that drawing down Library reserves is less impactful than Parks reserves, because Parks operations are more variable. A special account has been set up for The Captain’s Table, so that it is no longer included in the Administrative line item.
Mayor Acri expressed interest in building finance department staff, specifically through the addition of a Budget Manager. There was discussion that water billing might be pulled into the finance department and staff consolidated at a projected additional cost of $55,000.
Price explained that the Civic Center’s surplus must be used before City funds may be obligated for any operating deficit. The Intergovernmental Agreement (IGA) requires that the City use the Hotel/Motel Tax to fund a reserve account to pay for any operating deficits at QCCCA and that each year, that reserve be maintained at a level equal to the prior year’s operating deficit. All amounts generated by the Hotel/Motel Tax in excess of that required amount may be used by the City for other purposes. According to the IGA, the City can reduce the Annual OD Reserve account to $0 as there was no operating deficit last year and there is $7.6mm available in the QCCCA’s operating surplus reserve to respond to any operating deficit at the QCCCA. There was discussion. Staff’s recommendation was to have thoughtful consideration about drawing down the balance. It should instead be used for future unfunded needs, rather than simply moving all or part of the balance to the general fund. Staff will create a finance policy for determining the appropriate balance and use of the reserve fund.
Schulte reviewed the 2020 Budget Priorities Identified by Mayor and Council at the November 5, 2019, work session. These items were discussed and adjusted during this work session:
1. Pull $60,000 Library Trust reimbursement by Contingency or Revolving Loan Fund. There was discussion. Alderman Waldron moved to restore $60,000 to the library trust fund from general fund Contingency. Seconded by Alderman Potter. There was discussion. Motion passed with Alderman Berg voting nay.
2. 5-year balloon GAP loans for Downtown businesses (0% prime). Alderman Parker, seconded by Alderman Wendt, moved to transfer $100,000 from the Revolving Loan Fund, and earmark for downtown business bridge loans/financing. Motion passed unanimously.
3. Establish tree bank with $30,000 from Stormwater reserves. Alderman Parker, seconded by Alderman Wendt, moved to approve. There was discussion. Alderman Wendt moved to amend and fund the tree bank with WPC Contingency funds rather than Stormwater reserves. Seconded by Alderman Potter. Motion passed unanimously. Council directed staff to establish a related policy/ordinance to ensure consistency in plantings, by fall 2020. The amended motion passed unanimously.
4. Increase budget for Façade Program from $40,000 to $100,000. Alderman Berg, seconded by Alderman Wendt, moved to approve the increase. There was discussion. There is currently an unspent $75,000 budget. Applications are reviewed by a staff/volunteer committee with a design bent, however no applications were received this fiscal year. Increased public outreach was suggested. There was discussion that the program guidelines and execution may be too stringent. City Planner Jeff Anderson said that it is realistic to anticipate that half of the 2019 program budget will be obligated, if not spent, by year-end. Mayor Acri expressed that Council would like to see these funds used. Motion passed with Aldermen Parker and Potter voting nay.
5. Fund one-time, contracted marketing effort with school district. There was no discussion nor motion made.
6. Alderman Waldron made a motion to move $25,000 from Contingency to Public Safety to fund defibrillators. Seconded by Alderman Potter. Motion passed unanimously.
7. Alderman Berg made a motion to fund Police DNA research/cold case assistance from Contingency in the amount of $5,000. Seconded by Alderman Wendt. There was discussion. Motion passed unanimously.
8. Alderman Wendt, seconded by Alderman Parker, moved to fund Police Training (crime-free housing) in the amount of $25,000 from Contingency. Motion passed with Alderman Waldron voting nay.
9. Alderman Berg, seconded by Alderman Parker, moved to reduce the Fleet budget by $100,000 at staff’s discretion, and reduce related charge-backs. There was discussion. Fleet Manager Dave Mallum recommended that the purchase of a 1-ton truck be deferred. Mallum will provide the resulting chargebacks to the finance department. Motion passed with Aldermen Potter and Waldron voting nay.
10. Alderman Wendt moved to transfer $200,000 from Tourism to the General fund for Comprehensive Plan reallocation, leaving $50,000 for future Comprehensive Plan and $150,000 for form-based code downtown. Seconded by Alderman Berg. There was discussion. City Planner Jeff Anderson explained that potential Illinois Department of Transportation (IDOT) funding to help support the form-based code should be identified within 90 days. Staff will not take action until after the 90-day period. Motion passed unanimously.
11. Alderman Wendt moved to invest $100,000 of the captured EAV in road diet implementation and associated traffic cameras. Seconded by Alderman Potter. Motion passed unanimously.
12. Alderman Berg made a motion to move forward with bonding to finance six miles of road improvement. Motion was not considered for lack of second.
13. Alderman Schoonmaker moved to approve the allocation of $10,000 from the 2020 Contingency to defend 2019 property tax appeals. Seconded by Alderman Potter. There was discussion. Motion passed unanimously.
14. Budget Manager to enhance financial reporting and 5-year budget projection. There was discussion.
Alderman Parker moved to restore the finance department from 10 to 11 employees by allocating $50,000 from Contingency to consolidate job duties and add a Budget Manager. Seconded by Alderman Wendt.
15. Alderman Wendt made a motion to increase the video gaming machine license fee from $1,000 to $1,200 annually, resulting in an approximate $33,000 net revenue increase. Seconded by Alderman Berg. Motion passed on roll call with Aldermen Potter, Waldron and Berg voting nay.
16. Alderman Wendt, seconded by Alderman Berg, moved to increase the Class K Video Gaming Establishment annual licensing fee from $1,400 to 5,000. There was discussion. Alderman Wendt moved to amend and add that the one-time application fee also increase, from $3,000 to $8,000. Seconded by Alderman Berg. Motion passed unanimously. The amended motion passed unanimously.
17. Alderman Wendt made a motion to hold-off on the repainting of sharrows, and instead allocate the $15,000 budgeted for this to road diet. Seconded by Alderman Parker. Motion passed unanimously.
18. Alderman Parker, seconded by Alderman Wendt, moved to transfer $204,000 from the General Fund into Contingency. Motion passed unanimously.
19. Alderman Moyer moved to implement a 1% ($500,000) utilities franchise fee to fund road improvements. There was discussion. Motion failed for lack of second.
20. Alderman Wendt suggested targeting a 1% reduction in the property tax rate, and capturing an additional $205,000 of the Equalized Assessed Value (EAV). There was discussion. Alderman Waldron proposed maintaining the current levy. Alderman Wendt indicated that only properties with increased value would see a tax increase. Alderman Potter expressed that the benefit of working to increase property value is investing the EAV into the community. Alderman Schoonmaker, seconded by Alderman Wendt, moved to increase the levy by $205,000. Motion passed with Alderman Waldron voting nay.
Schulte noted that the state recently voted to consolidate Police and Fire Pension Funds. Staff seeks direction as to whether to pursue bonding. Alderman Schoonmaker stated that although bond rates are low, the City should step back and wait to see what the state will do and understand what that consolidation means.
21. Alderman Potter moved to approve the 2020 Budget as amended. Seconded by Alderman Moyer. The budget is balanced with a decreased tax rate of 1% and a modest levy increase to achieve that. Motion passed unanimously.
Finance Director Carol Barnes distributed a FY2019 YTD – October Summary of Revenues, Expenditures and Changes in Fund Balances. This will be a COW Agenda item on December 10, 2019, to be discussed in detail.
Public Comment
There was no public comment.
The meeting adjourned at 9:18 p.m.
https://www.moline.il.us/ArchiveCenter/ViewFile/Item/5964
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