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FINANCE COMMITTEE 2010/01/19 Minutes Page 1 The City of Lake Forest FINANCE COMMITTEE Proceedings of the January 19, 2010 Meeting 6:30 p.m. – City Hall Council Chambers I. Call to Order and Roll Call Chairman Grumhaus called the meeting to order at 6:34 p.m. Present: Mayor Cowhey, Chairman Grumhaus, Aldermen Novit, Morsch, Hanrahan, Looby and Palmer. Absent: Aldermen Widman and Goltra. Quorum present. There were 3 present in the audience. Staff present: Robert Kiely, Jr., City Manager; Kathleen Reinertsen, Finance Director; Louise Breckan, Assistant Finance Director; Ramesh Kanapareddy, Assistant City Engineer; Rosemary Haack, Public Information Officer; Diane Hall, Senior Accountant and Carina Walters, Assistant to the City Manager. II. Consideration of the Minutes from the Finance Committee meeting held on December 7, 2009 Alderman Looby made a motion to approve the minutes from the Finance Committee meeting held on December 7, 2009. The motion was seconded by Alderman Novit. The motion carried unanimously by voice vote. III. Gas Franchise Consortium Mr. Ramesh Kanapareddy, Assistant City Engineer stated that although the City’s franchise agreement had expired with North Shore Gas, North Shore Gas assured the City that no service would be interrupted due to an expired agreement. He stated that North Shore Gas is in similar situations with other municipalities. He stated that North Shore Gas would prefer a uniform franchise agreement for all municipalities. In order to collectively handle the franchise agreement renewal negotiation, the North West Municipal Conference (NWMC) formed a Northern Illinois Municipal Natural Gas Franchise Consortium (Consortium). The Consortium will provide each municipality with a higher negotiating voice to deal with North Shore Gas in terms of a fair agreement and also to reduce legal costs. The City paid $500 in order to participate in the initial meetings of the Consortium. The City is required to approve an ordinance authorizing the execution of an Inter-Governmental Agreement establishing the Northern Illinois Municipal Natural Gas Franchise Consortium in order to remain an active member of the Consortium. A motion was made by Alderman Looby to approve the ordinance authorizing the execution of an Inter- Governmental Agreement establishing the Northern Illinois Municipal Natural Gas Franchise Consortium. Alderman Palmer seconded the motion. The motion carried unanimously by voice vote. IV. Letter of Credit for the Benefit of Lake County Stormwater Management Commission in the Amount of $65,890.00 Mr. Robert Kiely, City Manager stated that the letter of credit is a requirement of a grant. Mr. Kiely stated that City staff met with Lake County staff because of the cumbersome process it was for the City to obtain a letter of credit. Mr. Kiely stated that Lake County staff reviewed their rules and are accepting a cash deposit instead of a letter of credit. He stated the cash deposit will earn interest. No action is needed by the Committee. V. FY2011 Budget Revenues Ms. Kathleen Reinertsen, Finance Director reviewed projected forecasts for FY2010 thru FY2013. She stated that at the end of FY2010, estimated expenses will exceed estimated revenues by $316,000. For FY2011, estimated expenses will exceed estimated revenues by $524,000. She stated that if permanent cuts of $524,000 are made to the FY2011 Budget, then she is forecasting that for FY2012 and FY2013 revenues will cover expenses. She showed overheads which explained the revenue shortages for FY2010 and FY2011. Finance Committee Meeting Minutes January 19, 2010 Page 2 Mr. Kiely reminded the Committee about the March 15, 2010 Budget meeting. He stated that the department budgets are due to Ms. Reinertsen January 22, 2010. He stated that he and Ms. Reinertsen will be meeting with the department heads the first two weeks of February. VI. Other Business Ms. Reinertsen reviewed the December 2009 Financial Flash Report with the Committee. She stated that the trend has not changed with the General Fund. She stated that the City may reach the FY2010 Budget for the real estate transfer tax. She stated that the Water and Sewer Fund revenues are down slightly. She stated that staff is using reports that will analyze water usage. Amtrak Stop and Appointment of a Transportation Safety and Enhancement Committee – Mr. Kiely stated that this topic is on tonight’s City Council meeting agenda. He stated as there is time left in this meeting, he would like to begin explaining details to the Committee on this topic. He stated that the City has been working with Metra, Amtrak, IDOT, WisDot and the Canadian Pacific to jointly address the feasibility of implementing a Lake Forest stop of the Hiawatha Regional Rail Service between Chicago and Milwaukee. This stop will benefit the City and surrounding communities by enhancing public safety, benefiting surrounding amenities, proximity to jobs, proximity to main arterials and future connectivity to Wisconsin and regional airports. Mr. Kiely stated that a Memorandum of Understanding in substantially the amount therein between Metra, Amtrak, IDOT, WisDot and Canadian Pacific will need to be approved by the City Council. Mr. Kiely stated that the City will need to engage a engineering consultant to conduct the feasibility of implementing a Lake Forest stop of the Hiawatha Regional Passenger Rail Service. The proposed engineering consultant services agreement with Charlie Quandel of Quandel Consultants, L.L.C. is still being finalized so approval of this agreement needs to be tabled until the details have been finalized. Lastly, Mr. Kiely stated that appointment of a Transportation Safety and Enhancement Committee is needed. This Committee will be charged with reviewing the history of train vs. pedestrian and/or vehicular accidents in Lake Forest (specifically the Telegraph Road station) and recommend initiatives that the City could undertake to reduce the number and frequency of accidents going forward. VII. Opportunity for the Public to Address the Finance Committee None VIII. Adjournment There being no further business, Alderman Looby moved, seconded by Alderman Palmer to adjourn the meeting at 7:10 p.m. The motion carried unanimously by voice vote. Respectfully submitted, Louise Breckan Assistant Finance Director