City of Mt.
Vernon, Illinois
Regular City
Council Meeting
September
19, 2011
The Mt.
Vernon City Council met in Regular Session on Monday, September 19, 2011 at 7:00
p.m. in the Rolland W. Lewis Community Building at Veterans Park.
Mayor Mary
Jane Chesley called the Regular Meeting to order.
The
Invocation was given by a member of the audience.
The Pledge
of Allegiance was given.
Roll call
showed present Council Members Ron Lash, Dennis McEnaney, Todd Piper, David Wood
and Mayor Mary Jane Chesley.
The Journals
for the August 29, 2011 Special City Council Workshop and the September 6, 2011
Regular City Council Meeting were presented to Council for any additions,
deletions or corrections. Motion by Council Member Piper to approve the
Journals. Second by Council Member
McEnaney. Yeas: Lash, McEnaney, Piper, Wood and Chesley.
The
Consolidated Vouchers for the Accounts Payable were presented for Council’s
consideration. Council Member McEnaney asked for a clarification on item #5,
Afix Technologies, in the amount of $5,550.00 - annual renewal of Police
software. According to Assistant
Police Chief Chris Deichman, this is for the computer aided finger print
machine. Council Member McEnaney
inquired as to the meaning of the acronym PSEBA in item #8, Clark Baird Smith
LLP - $2,205.00 - legal costs related to Steve England’s PSEBA claim.
City Manager Ron Neibert stated that PSEBA stands for the Public Safety
Employees Benefit Act. The Act,
under certain conditions, Public Safety Employees, Police & Fireman, if they are
injured and disabled in the line of duty in response to an emergency situation
the Statute allows for the employees, their spouse and their dependents, so long
as they are eligible, to receive health insurance coverage at the City’s expense
for the balance of their life.
Council Member McEnaney asked for the location of the storm sewer on item #16,
IMCO - $1,559.23 – various parts for Veteran’s Memorial Drive storm sewer.
City Manager Neibert stated he didn’t know, but would answer the question
tomorrow.
BIDS AND
QUOTES
City Manager
Neibert presented the Bid Results for the Aquatic Study.
The City received six proposals.
Based on the evaluation criteria as stated in the RFP, he is recommending
FGM Architects of O’Fallon, Illinois’, proposal in the amount of $34,900.00.
Parks Director George Bryant advised that the purpose of the study is to
give the City a holistic approach to this venture, including a needs assessment,
holding stakeholders meetings, and operation costs and revenue analysis.
The public, both young and old, will be asked for their input.
The duration of the study is expected to be four months.
Council
Member Lash made the motion to accept the bid from FGM Architects of O’Fallon,
Illinois, in the amount of $34,900.00. Second
by Council Member Wood. Yeas: Lash,
McEnaney, Piper, Wood, and Chesley.
CITY MANAGER
City Manager
Neibert introduced Jim Leuty of Krehbiel & Associates who conducted the FY
2010-2011 audit for the City of Mt. Vernon, Illinois.
Mr. Leuty noted that the results of the audit spanning over three months’
time were very positive. The
ultimate goal of the audit is to produce useful financial statements and render
opinions on the financial statements.
There are a series of opinions in the l37 page booklet.
These opinions are unqualified opinions, which mean they are clean
opinions, on both the financial statements being in accordance with Government
Auditing Standards. There is an
opinion on internal control and compliance in which we noted no deficiencies
needed to be reported to the City.
Krehbiel & Associates also rendered an opinion on the Single Audit Act which is
basically a report card on the City’s receipt of Federal funds and whether or
not the City has used the funds in accordance with the Rules and Regulations.
Mr. Luety was pleased to note there were no findings under the Single
Audit Act as well.
During the
last one to two years, the City has taken steps towards infrastructure
expansion. As a result, the
financial statements show that during the last fiscal year the City issued 9
million dollars in bonds at very favorable rates.
The City’s financial condition was rated an A+ by Standard and Poor’s.
Mr. Leuty complimented the City for using funds set aside by previous
increases for infrastructure improvements.
In addition,
he noted that the City had increased rates in the Public Utilities Funds over
the past two to three years.
Previously, the Public Utilities Funds were in need of rate increases.
Last year the General Corporate Fund did not have to provide any dollars
to the Public Utilities Fund and the year before that was nominal, around
$300.00. For many years, the
General Corporate Fund subsidized the Public Utilities Funds, but now the
citizens who are enjoying the added services are paying the costs for those
services, rather than from the General Corporate Fund, which is much more
equitable.
Also, the
City watches over nearly $27 million in pension assets from both the Police &
Fire Pension Funds. The Police
Pension Fund has $14.6 million in net assets and the Fire Pension Fund has about
$12 million as of April 30, 2011.
The Police Pension Fund increased by $1.2 million the past year, and the Fire
Pension Fund increased by $550,000 the past year.
Mr. Luety pointed out that the Police and Fire Pension Funds both need to
strive to earn as much as is reasonably possible in these funds.
He recommended benchmarking between the two funds.
The Police Pension Fund earned about one percent more than the Fire
Pension Fund. One percent earnings
on $10 million is about $100,000.00 which is substantial.
The levy on the pension funds is significant.
One item of concern is the unfunded pension benefit which continues to
grow. The City is funding the
pensions properly according to the Illinois Department of Insurance
recommendations; however, the amount of the unfunded pension benefit is growing
rapidly.
City Manager
Neibert advised that the liability on the pension fund should be earning seven
and one-half percent a year.
Previously, the Fire Pension Fund had a very conservative investment policy and
wasn’t performing at the same level as the Police Pension Fund.
With the down turn in the economy, many entities are struggling to earn
seven or seven and one-half percent.
Traditionally, the Fire Department has a higher disability rate than the
Police Department.
Finally, the
City added new funds, namely, TIF funds and the self-funded health insurance
program fund. Both funds are
working as designed.
Lastly, two
letters are attached to the audit report.
One is an SAS 114 letter wherein the auditor is obligated to report to
the City any kind of problems during the audit, significant audit findings and
difficulties or disagreements with management.
Mr. Leuty stated he is proud to report none of those problems existed.
Also with regard to internal control, the auditor is obligated to report
serious exceptions to the City’s internal control, but none were found.
Mr. Leuty
thanked everyone that assisted with the audit including Finance Director
Hollmann and his staff. He noted
that the audit was completed in a timely manner this year.
Mayor
Chesley stated that the City has worked very hard over the past few years to
receive a positive audit such as was presented tonight.
Council
Member McEnaney asked Mr. Leuty to describe the process involved in the annual
audit. Mr. Leuty advised that after
the end of the fiscal year Finance Director Hollmann sends preliminary work
papers to Mr. Leuty. The field work
commences in June with usually three auditor’s staff members working in the
Finance Department for two to three months reviewing the transactions that
occurred over the past year. After
the numbers are nailed down, then they begin compiling the audit report.
Prior to the audit report becoming a draft, it goes through the reviewing
process with the City Manager, Mayor, and Council.
Council
Member Wood thanked Mr. Leuty, his staff, Krehbiel & Associates, Finance
Director Hollmann and his staff for the hard work performed on the audit.
He commended everyone on the timely audit report.
Council Member Wood stated that the City has gone from a 90 page audit
report in 2005 to a 137 page audit report in 2010.
That is a 52% increase in pages of the report.
The City of Mt. Vernon is a pay-as-you-go government, and is running on a
balanced budget. Council Member
Wood is concerned about the unfunded pension liability.
He noted that in 2005 there was about $9 million in unfunded liability.
However, those numbers today are much higher at about $14 million which
is an increase for the 58% increase in five years in the unfunded pension
liability for both Police and Fire.
He noted that reform is needed in Springfield and through the Illinois Municipal
League to begin to address this problem.
Council
Member Wood inquired why the difference in the investment expense for the Fire
Pension Fund expense and the Police Pension Fund expense.
One reason is the Fire Pension Fund has a higher rate of disability
claims. Finance Director Hollmann
advised that a study was conducted a couple of years ago by the Fund’s
Investment Advisor. He equated that
the sales expenses are included in the Fire Pension Fund and not in the Police
Pension Fund, but the end result indicated they were comparable.
Council
Member Wood clarified that there are two independent bodies, the Police and Fire
Board that make the investment decisions, not the City Council.
Council
Member Wood asked that a meeting be scheduled with City Manager Neibert, Finance
Director Hollmann, Mr. Leuty, and himself in order to discuss the unfunded
pension liability and what steps to take to address the issue.
Mayor
Chesley agreed saying that the Illinois Municipal League is focusing on the
issue during the fall term of the State Legislature.
Council
Member Wood made the motion to approve the 2010 audit as prepared by Krehbiel &
Associates. Second by Council
Member McEnaney. Yeas: Lash,
McEnaney, Piper, Wood, and Chesley.
City Manager
Neibert presented a Request for Reallocation of funds for the 2011/2012 budget.
Council
Member Wood made the motion to approve the Reallocation of Funds.
Second by Council Member Lash.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
City Manager
Neibert presented a Request for Approval of Change Order for Continental Tire
Road Project.
Council
Member Piper made the motion to approve the Request for Approval of Change Order
for Continental Tire Road Project.
Second by Council Member Lash.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
City Manager
Neibert presented a Request Authorization to Seek Bids for Stone Entrance Sign
for Hope Park.
Council
Member Wood made the motion to approve the Request Authorization to Seek Bids
for Stone Entrance Sign for Hope Park.
Second by Council Member Piper.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
CITY
ATTORNEY
City
Attorney, Bill Howard, presented for Council’s consideration a First Reading on
Ordinance Rezoning Property Located at 314 N. 14th Street from the
present zoning clarification to B-1.
Petitioning Party is St. Mary Roman Catholic Church.
Council
Member Wood made the motion to suspend the Rules so that City Council can take
action on Items 9-A, 9-B, and 9-C.
Second by Council Member Piper.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
Council
Member Wood made the motion to approve Ordinance 2011-34, Item 9-A on the Agenda
rezoning for the 314 N. 14th Street property.
Second by Council Member Lash.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
Council
Member Piper made the motion to approve Ordinance 2011-35, Item 9-B on the
Agenda for the rezoning of property located at 200 North 16th Street.
Second by Council Member McEnaney.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
Council
Member McEnaney made the motion to approve Ordinance 2011-36, Item 9-C on the
Agenda granting the conditional use for the 314 N. 14th Street
property. Second by Council Member
Lash. Yeas: Lash, McEnaney, Piper,
Wood, and Chesley.
Attorney Don
Musick representing St. Mary Church thanked the City Attorney, City Manager,
City Engineer, and the Zoning Board for their help on this project.
City
Attorney, Bill Howard, presented for Council’s consideration a First Reading on
Ordinance rezoning property located at White Oak Drive (Lot 3B in Fountain
Place) from the Class B-2 to I-2.
Petitioning Party: Thomas Hart.
Steve
Spotanski appeared on behalf of Thomas Hart, of Pinball Sports, and he informed
the Council that the property would be used to build an assembly plant for
manufacturing pitching machines, batting cages and accessories.
Council
Member Piper made the motion to suspend the Rules so that City Council can take
action on Item 9-D. Second by
Council Member Lash. Yeas: Lash,
McEnaney, Piper, Wood, and Chesley.
Council
Member Piper made the motion to approve Ordinance 2011-37, Item 9-D on the
Agenda granting the rezoning of property located at 900 White Oak Drive
from B-2 to
I-2. Second by Council Member
McEnaney. Yeas: Lash, McEnaney,
Piper, Wood, and Chesley.
City
Attorney Bill Howard presented for Council’s consideration the First Reading
Ordinance rezoning property located in Kentwood Estates Sub, Lots 1-10 and
additional lots on McCauley Lane from Class AG to R-1.
Petitioning Party: City of
Mt. Vernon. City Manager
Neibert commented that at the time the subdivision was platted, it was never
zoned. Mayor Chesley requested that
zoning be examined throughout the City to prevent this situation from
reoccurring.
Council
Member Wood made the motion to suspend the Rules so that City Council can take
action on Item 9-E. Second by
Council Member McEnaney. Yeas:
Lash, McEnaney, Piper, Wood, and Chesley.
Council
Member Wood made the motion to approve Ordinance 2011-38, rezoning of property
located in Kentwood Estates Sub, Lots 1-10 and additional lots on McCauley Lane
from Class AG to R-1. Second by
Council Member Lash. Yeas: Lash,
McEnaney, Piper, Wood, and Chesley.
City
Attorney Bill Howard presented for Council’s consideration the First Reading on
Ordinance Authorizing Sale of Municipal Personal Property.
The auction will be held on Saturday, October 1, 2011.
Council
Member Lash made the motion to suspend the Rules so that City Council can take
action on Item 9-F. Second by
Council Member Piper. Yeas: Lash,
McEnaney, Piper, Wood, and Chesley.
Council
Member Lash made the motion to approve Ordinance 2011-39, Authorizing Sale of
Municipal Personal Property. Second
by Council Member McEnaney. Yeas:
Lash, McEnaney, Piper, Wood, and Chesley.
City
Attorney Bill Howard presented for Council’s consideration the First Reading on
Ordinance Amending Article 15 of the Revised Code of Ordinances (the Plumbing
Code) Prohibiting the Use of Groundwater as a Potable Water Supply.
Council
Member Wood made the motion to suspend the Rules so that City Council can take
action on Item 9-G. Second by
Council Member McEnaney. Yeas:
Lash, McEnaney, Piper, Wood, and Chesley.
Council
Member Wood made the motion to approve Ordinance 2011-40, Amending Article 15 of
the Revised Code of Ordinances (The Plumbing Code) Prohibiting the Use of
Groundwater as a Potable Water Supply.
Second by Council Member McEnaney.
Yeas: Lash, McEnaney, Piper, Wood, and Chesley.
City
Attorney Bill Howard presented for Council’s consideration a Resolution
Approving Infrastructure Grant Agreement with Continental Tire, formalizing a
Letter of Understanding between the City and Continental Tire.
Council
Member Piper made the motion to approve a Resolution Approving Infrastructure
Grant Agreement with Continental Tire. Second
by Council Member McEnaney. Yeas:
Lash, McEnaney, Piper, Wood, and Chesley.
MAYOR
Mayor Mary
Jane Chesley presented the Appointment of Kaycee Cooper to the Mt. Vernon
Tourism Advisory Board to replace Myrtle DeLoach.
Council
Member Piper made a motion to approve the Appointment of Kaycee Cooper to the
Mt. Vernon Tourism Advisory Board to replace Myrtle DeLoach.
Second by Council Member Wood. Yeas: Lash, McEnaney, Piper, Wood and
Chesley.
CITY COUNCIL
Boy Scout
Troup 101 and 102 attended the meeting to observe the City Council meeting, as
well as interviewing the Mayor, Council and City Manager.
VISITORS/CITIZEN REQUESTS/ ADDRESSES FROM THE AUDIENCE
Jean Stewart
informed the Council of her disappointment in the upcoming demolition of the
Railroad Depot. Mayor Chesley noted
that every effort had been made to save the old Depot without success.
EXECUTIVE
SESSION
Council
Member Wood made a motion for Council to go into Executive Session to discuss
land acquisition and collective bargaining. Second by Council Member Piper.
Yeas: Lash, McEnaney, Piper, Wood and
Chesley.
Council came
back into regular session at 9:25 p.m.
ADJOURNMENT
Council
Member McEnaney made a motion to adjourn.
Second by Council Member Piper.
Yeas: Lash, McEnaney, Piper, Wood and Chesley.