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CITY COUNCIL 2013/02/04 MinutesThe City of Lake Forest CITY COUNCIL Proceedings of the February 4, 2013 Regular Meeting 7:30 p.m. – City Hall Council Chambers Donald Schoenheider was sworn in as Acting Mayor by City Clerk Bob Kiely. CALL TO ORDER AND ROLL CALL: Acting Mayor Schoenheider called the meeting to order at 7:30p.m. Carina Walters called the roll of Council members. Present: Acting Mayor Schoenheider, Aldermen Novit, Alderman Waldeck, Alderman Moore, Alderman Pandaleon, Alderman Tack, Alderman Palmer. Quorum present. There were approximately 30+ present in the audience. Also present were: Robert Kiely, City Manager; Carina Walters, Assistant City Manager; Marlo Del Percio, City Attorney; Catherine Czerniak, Director of Community Development; Susan Banks, Communications Manager; Michael Thomas, Director of Public Works; Bob Ells, ; Anne Whipple, Communications; Jim Held, Police Chief; Desha Kalmar, Human Resources Director. Elizabeth Holleb, Finance Director. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance. Reports of City Officers Resignation from Donald Schoenheider to vacate Third Ward was received. Resignation from Jack Reisenberg as Chair of the Plan Commission was received, Jack Reisenberg was sworn in to fill the vacancy left by Third Ward Alderman Schoenheider. 1. Comments by Acting Mayor Acting Mayor Don Schoenheider advised the audience the Westwood square discussion was placed on the agenda for February 19. A. Appoint Jack Reisenberg to fill the unexpired Third Ward Alderman seat City Manager/City Clerk, Bob Kiely swore in Jack Reisenberg to fill the vacancy left by Third Ward Alderman Schoenheider. Alderman Palmer moved, seconded by Alderman Novit , motion carried unanimously by voice vote. B. Resolution of Appreciation for Lake Forest resident Susan Garrett for serving as Illinois State Representative since 1999 and State Senator since 2003 The resolution was read by Acting Mayor Don Schoenheider recognizing the large number of contributions that Senator Garrett has made to the City of Lake Forest. Susan Garrett will continue to serve on the Hospital Advisory Committee. Alderman Palmer moved, seconded by Alderman Moore to adopt the Resolution. Motion carried unanimously by voice vote. C. Appoint Mike Ley as Chair to the Plan Commission Proceedings of the February 4, 2013 Regular City Council Meeting Alderman Pandaleon moved, seconded by Alderman Palmer to approve the appointment. Motion carried unanimously by voice vote. D. Swearing in of Police Officer Stephanie L. Bong Acting Mayor Donald Schoenheider swore in Officer Bong. Family, friends and constituents from the Police Department were present. 2. Comments by City Manager City Manager Bob Kiely introduced Mike Rummel, former Mayor, now serving on Lake County Board to present the Lake County Strategic Plan. A. Lake County Strategic Plan Mike Rummel presented the 5 year Lake County Strategic Plan. The goals have been identified as; Reduce Congestion and Improve Transportation Systems in Lake County, Enhance livability and economic opportunities, Promote Sustainable Environments. Build Healthy and Resilient Communities, Enhance Public Safety. There will be 5 community forums over the next 30 days. Alderman Novit and Adelman commended Mike Rummel on a job well done A. CROYA Updates- Alderman Moore He would like to see a CROYA update once a month at the first meeting of the month to remind City Council and residents of the annual family fundraiser on February 10. Auction items were mentioned OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS None ITEMS FOR OMNIBUS VOTE CONSIDERATION Item number 4 was removed from the Omnibus consideration and moved to Ordinances 1. Check Register for Period December 22, 2012 - January 25, 2013 Check Register For Period December 22, 2012 - January 25, 2013 Fund Invoice Payroll Total General 336,471 1,027,548 1,364,019 Water & Sewer 83,185 105,305 188,489 Parks & Recreation 99,706 247,356 347,062 Capital Improvements 214,621 3,751 218,372 Bond Funds - Projects 0 0 0 Motor Fuel Tax 0 0 0 Cemetery 15,801 14,859 30,659 Senior Resources 15,294 17,432 32,726 Deerpath Golf Course 29,372 15,534 44,906 Fleet 95,121 33,333 128,454 Debt Funds 0 0 0 Housing Trust 0 0 0 Proceedings of the February 4, 2013 Regular City Council Meeting Park & Public Land 0 0 0 All other Funds 265,568 139,350 404,918 $ 1,155,138 $ 1,604,467 $ 2,759,605 2. Ordinance Terminating the West Lake Forest Tax Increment Financing (TIF) District, Declaring Surplus Revenue in the TIF District and Authorizing Payment of Surplus Revenue to the Affected Taxing Districts on a Pro Rata Basis and an Ordinance providing for a Supplemental Appropriation for FY13 for the TIF Fund (Final Approval) PURPOSE AND ACTION REQUESTED: Staff requests that the City Council adopt an Ordinance terminating the West Lake Forest TIF district effective December 31, 2012, declaring surplus revenue in the TIF district and authorizing payment of surplus revenue to the affected taxing districts pursuant to State Statutes. Due to FY13 property tax receipts exceeding budget estimates, a supplemental appropriation is required for FY13 to close out the TIF Fund. BACKGROUND/DISCUSSION: The City Council adopted Ordinances approving the West Lake Forest Tax Increment Financing (TIF) District Redevelopment Plan, designating the area as a redevelopment project area pursuant to the Tax Increment Allocation Redevelopment Act, and adopting tax increment allocation financing for the area on May 14, 1988, at which time the certified assessed valuation of the TIF district was $2,396,529. Since 1988, the district has evolved significantly in terms of growth in assessed valuation and increased utilization of previously vacant parcels within the redevelopment project area. Over the years, the City has participated in several major redevelopment initiatives within the district including a new commuter station and parking lot, train depot and fire station, installation of sanitary sewer and water mains, traffic and streetscape improvements, school and park improvements. Private projects have included the renovation of Country Corners shopping center, construction of Sunset Foods shopping center and Lovell’s Restaurant. Several townhouse and single-family developments have occurred. During FY10-12, the City completed a comprehensive upgrade of its fiber optic telecommunications systems within the commercial and public portions of the TIF District. State Statutes establish a standard 23-year period for TIF districts, which for the West Lake Forest TIF ends December 31, 2012. The City notified all impacted taxing districts of the TIF expiration by November 1, 2012 in accordance with statutory requirements and the City Council adopted a resolution confirming its intent to terminate the TIF district effective December 31, 2012 to provide added assurance to taxing districts including the TIF assessed valuation in their 2012 tax levies. As of September 2012, the Lake County Assessor’s Office estimated the additional TIF assessed valuation to be $49.5 million. With all remaining expenditures having been processed by the December 31 deadline, the Finance Department has determined that the special tax allocation fund for the West Lake Forest Redevelopment Area has final surplus funds in the amount of $2,389,515.19 available for distribution on a pro rata basis to the affected taxing districts. Upon approval of the Ordinance, these funds will be Proceedings of the February 4, 2013 Regular City Council Meeting remitted to the Lake County Collector for distribution to the affected taxing districts on a pro rata basis determined by the most recent distribution of property taxes from real property in the TIF district. Property tax receipts in the TIF Fund exceeded Fiscal Year 2013 budget estimates. In order to close out the TIF Fund and make the required payment to the Lake County Collector of the surplus funds, a supplemental appropriation is required in the amount of $10,000. RECOMMENDED ACTION: Grant final approval of the Ordinance terminating the West Lake Forest TIF District, declaring surplus and authorizing payment of surplus to the affected taxing districts on a pro rata basis. Grant final approval of the Ordinance making a supplemental appropriation for the fiscal year beginning May 1, 2012 and ending April 30, 2013 3. Approval of a Contract with McGladrey LLP to Provide Audit Services for Fiscal Years 2013- 2015, as Recommended by the Audit Committee PURPOSE AND ACTION REQUESTED: Staff is seeking City Council approval of an Audit Committee recommendation to contract with McGladrey LLP for financial audit services for the fiscal years ended April 30, 2013 through 2015. In accordance with the City’s Request for Proposals, the City will have the option at its sole discretion to renew the agreement for FY2016 and FY2017. BACKGROUND/DISCUSSION: The City’s agreement with McGladrey LLP for audit services expired with the FY 2012 financial audit. In furtherance of the City’s objective to work collaboratively with other governmental agencies to seek opportunities for economies of scale to benefit residents and taxpayers, the City elected to participate in a joint Request for Proposals (RFP) for Audit Services. With the Village of Glenview serving as the lead agency, the City participated along with the communities of Cary, Grayslake, Highland Park, and Skokie in issuing a joint RFP in September 2012. The RFP anticipated an audit engagement for the fiscal years ending April 30, 2013 through 2015, with a City option for 2016 and 2017. A set of mandatory criteria was developed jointly by the six communities, and a unique scope of work was also set forth by each community. Each firm had the option to propose to one or all participating communities, and each community was allowed to follow its own process and timeline for selection, with no community’s selection of auditor impacting another. Ten firms responded to the RFP, with eight firms providing proposals to Lake Forest. Utilizing the evaluation criteria outlined in the RFP, Finance Department staff completed a review of all eight proposals and selected three finalist firms for interviews by the City’s Audit Committee. The Audit Committee was provided an evaluation matrix that demonstrated the scoring of all eight respondents, as well as two completed reference questionnaires for each finalist firm. At its January 17, 2013 meeting, the Audit Committee conducted interviews of each of the three finalist firms. At the request of the Committee, each finalist firm was asked to submit a last and best offer in regards to fees and two firms were asked to provide follow-up information based on questions that arose following the interviews. Based on all the information received, the Audit Committee approved a recommendation for City Council consideration to retain McGladrey LLP as the City’s audit firm. Proceedings of the February 4, 2013 Regular City Council Meeting BUDGET/FISCAL IMPACT: Responding firms were asked to provide fee quotations for each of the potential five fiscal years of an agreement, and the three finalist firms were asked to submit final offers on fees with each offering a reduction from their original quote. Audit services costs are allocated to a number of funds and the costs associated with the FY2013 audit are incorporated into the FY2014 operating budget. The proposed fee submitted by McGladrey LLP, as amended, for the FY2013 audit is a $25,050 reduction compared to the fee paid for the FY2012 audit. Below is a summary of the FY2012 audit fees compared to the proposed FY13 audit fees and savings: Description FY2012 Audit Fee (FY2013 Budget) FY2013 Audit Fee (FY2014 Budget) Savings Financial Statements/CAFR $ 50,500 $ 50,000 $ 500 Single Audit (if required) $ 11,600 $ 4,500 $ 7,100 Recreation Fund Report $ 5,800 $ 1,500 $ 4,300 Component Unit Report $ 14,000 $ 2,400 $ 11,600 TIF Compliance Report (if required) $ 1,400 $ 800 $ 600 State Comptroller/AFR $ 1,400 $ 450 $ 950 TOTAL $ 84,700 $ 59,650 $ 25,050 RECOMMENDED ACTION: It is recommended that the City Council authorize staff to contract with McGladrey LLP for audit services for Fiscal Years 2013-2015. The City shall have the option to extend the agreement to FY2016 and FY2017 at its sole discretion. 5. Resolution Approving First Amendment to the North Shore Electricity Aggregation Consortium (NSEAC) Intergovernmental Agreement The Intergovernmental Agreement that established the North Shore Electric Aggregation Consortium (NSEAC) contemplated the first year of pooled electric supply purchases. The proposed amendment will extend the duration of the consortium, provide flexibility for future aggregation decisions, and allow the consortium to consider expanding to other activities, including those related to energy efficiency and pricing. The first year of Consortium experience is projected to save Lake Forest electric customers over $3.5 million, and based on the advice of NSEAC professional advisers; future supply contracts may require duration flexibility (multiple years vs. 1 year). If approved, the City retains Proceedings of the February 4, 2013 Regular City Council Meeting the ability to withdraw from the consortium, customers retain the right to opt out of the City supply contract and the consortium can focus on pricing optimization and other related concerns. Based on historic supply cost trends, February and March offer lower cost supply contracts than other times of the year. In order to take advantage of the historic market trends and provide for the added features noted above, staff recommends approval of the Resolution. 6. Approval of the January 22, 2013 regular City Council minutes RECOMMENDED ACTION: Approve The Omnibus items as read. Alderman Novit moved, seconded by Alderman Waldeck to approve the Omnibus items read. The following voted “Yea” Aldermen Novit, Waldeck, Moore, Pandaleon, Tack, Reisenberg, Palmer and Adelman. The following voted “Nay” None. 8 Yea 0 Nay, Motion carried. ORDINANCES 4. Consideration of an Ordinance Vacating the Right-of Way Located between the Properties Addressed as 1, 41, 15 Stonegate Road, and the Properties Addressed as 11 and 33 Stonegate Lane. (Final Approval) A discussion was held in regards to the above, including that municipalities can withdraw interest to the public right of way. It was stated that this property is no longer in common usage. Barry Kessler, Attorney for Mr. & Mrs. Jakobowskis, addressed the Council requesting to defer final consideration of the Ordinance. Alderman Palmer moved for Final approval, seconded by Alderman Palmer to approve the Ordinance. The following voted “Yea” Aldermen Novit, Waldeck, Moore, Pandaleon, Tack, Reisenberg, Palmer and Adelman. The following voted “Nay” None. 8 Yea 0 Nay, Motion carries NEW BUSINESS The City of Lake Forest is the recipient of an ITEP Grant for renovation of the downtown Train Station. A comprehensive plan will be available at the February 19th City Council Meeting. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION None ADJOURNMENT There being no further business, Alderman Pandaleon moved, seconded by Alderman Moore to adjourn the meeting at 8:07p.m. The motion carried unanimously by voice vote.