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HomeMy WebLinkAboutMINUTES-2007-01-27-200736:3 1 1 1 CITY COUNCIL ROLL CALL - PRESENT: A Quorum was present. NOT PRESENT AT ROLL CALL: PRESIDING: Alderman Wynne Alderman Bernstein Alderman Holmes Alderman Tisdahl Alderman Moran Mayor Lorraine H. Morton January 27, 2007 Alderman Rainey Alderman Hansen Alderman Wollin Alderman Jean -Baptiste A SPECIAL MEETING of the City Council was called to order by Mayor Morton Saturday, January 27, 2007, at 9:12 a.m. in the Aldermanic Library for the purpose of conducting a Budget Review Workshop on the FY 2007-08 Proposed Budget. At 9:14 a.m., Alderman Wollin moved that Council convene into Closed Session for the purpose of discussing matters related to personnel pursuant to 5 Illinois Compiled Statutes 120/2 (c ) (1). Seconded by Alderman Tisdahl. 2. All meetings of public bodies shall be public meetings except for the following: (1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body, including hearing testimony on a complaint lodged against an employee to determine its validity. Roll call. Voting aye — Wynne, Jean -Baptiste, Bernstein, Holmes, Tisdahl, Rainey, Hansen, Wollin. Voting nay —none. Motion carried (8-0). At 9:45 a.m. Alderman Rainey moved to reconvene into Open Session in the Council Chamber. The motion was seconded and passed unanimously. Alderman Holmes asked for a timeline for Council discussion of the Early Retirement Incentive program. City Manager Carroll stated that Council would make a decision and, if approved, the program would be put into the form of a resolution. To meet the window of dates outlined, this item needs to be passed in February. Alderman Rainey complained that the packet arrived the evening before at 9:15 p.m. and was impossible to digest; asked staff to get information to Council members sooner. Alderman Tisdahl echoed Rainey's complaint and found her packet that morning. The North Branch Library was on the agenda when she was told it would not be. She had read nothing. Ms. Carroll apologized and said that every effort would be made to get the information sooner. Alderman Rainey suggested that materials be e-mailed. Aldermen Moran, Wynne, Tisdahl, Jean -Baptiste, Holmes, Rainey and Wollin debated and discussed the merits of a straw vote and discussion on retention of the branch libraries. They also discussed a west side branch library, job elimination, the budget process, youth initiative and private support for the main library. Five aldermen indicated support for retention of branch libraries. Alderman Rainey pointed out that page 28 of budget memo#26, Exhibit D, Unreserved Fund Balances was unreadable. Ms. Carroll stated that would be corrected. Finance Director Matt Grady stated the last column was the Insurance Fund Balance, which was what was asked for. Insurance Fund Presentation Mr. Grady apologized for the lateness of the packet; presented the Insurance Fund Summary Strategy Update. He explained in spring 2003, a strategy was approved by Council to deal with liabilities that 2 January 27, 2007 faced the City at that time and wanted to explain this strategy to aldermen not then on the Council. At the end of the presentation, he would present a new Insurance Budget Summary sheet. In late February, a bond ordinance will come before Council for refunding that will save $600,000 and a new money issue will also be done. New capital projects are incorporated into this strategy for another year. In 2003, the City had about $22.9 million of liability for Worker's Comp and general liability. Council adopted a strategy developed by staff. The 2006 audited financial report shows liability of $4.5 million. Alderman Rainey asked for a breakdown of the $22.9 million into lawsuits and Worker's Compensation. Alderman Bernstein asked how the numbers were resolved. Liabilities peaked in 2004 and then started to decline. First Assistant Corporation Counsel Herb Hill said some cases were litigated and some were settled. Approximately 50% was paid out and the balance was compromised in settlements. The two largest cases were resolved at 40% of the liability. Alderman Rainey pointed out when the City accumulated those liabilities, the City did not have the protection of a liability insurance plan that they now have. Mr. Hill explained for the past five years, the City has self -insured retention at $2 million. When these liabilities occurred, the City's exposure was 100% of the liability. Now any significant litigation has a maximum exposure of $2 million. Mr. Grady supplied a chart showing short and long-term claims starting in 2003 and the General Obligation Debt Service levy with the agreement that debt service could not increase more than 4% a year, which they have held to. Another chart showed the actual bond proceeds received and what went into the capital improvement and water/sewer fund projects. Funds were put into the water/sewer fund projects so the funds could be moved into the Insurance Fund. Currently there is a deficit of $3.5 million in the unreserved fund balance. When the books are closed at the end of February there will be a $200,000 surplus in the Insurance Fund. At the end of 2008 there will be a surplus of $700,000. They anticipate reaching the goal of $2 million by 2009. Alderman Wynne asked if the City has another Prado/DeVaul case would the City be on thin ice financially until 2009. Yes Alderman Jean -Baptiste asked why there was a low level of funds. Mr. Grady said it was due to large cases. Alderman Jean -Baptiste asked to distinguish between the long and short-term liability. Mr. Grady explained the City will have $4.5 million in liability when the books are closed. It is made up of two components — almost $900,000 of short - tern liabilities, which are paid annually and long-term liability of $3.5 million, which will be paid sometime beyond a year. Those equal $4.5 million. Ms. Carroll said he was talking about reserves. The $3.5 million cash deficit at the end of 2005-06 was due to paying insurance claims out of the General Fund. Ms. Carroll said the former Finance Director paid the claims but did not transfer from the General Fund to the Insurance Fund to pay those claims. That problem is being corrected. There was an accounting error from 2003-04 in that there was not a transfer of $3 million from the Sewer Fund to the Insurance Fund, which should have been done. Mr. Grady explained there should have been a transfer of $3 million from the Sewer Fund to the Insurance Fund. When he arrived in October and saw a $3.5 million deficit in the Insurance Fund, they went back and looked at what happened. Mr. Grady stated they need to eliminate that $3.5 million deficit. When he transferred the $3 million from the Sewer Fund that left $500,000. The bond deal of $2 million netted out to $200,000 in the Insurance Fund. He went through Exhibit C, a chart that showed the bond proceeds plan starting in 2003-04 through 2009-10. In 2003-04 the City got $11.5 million in bond money and put $8.5 million into capital improvements and $3 million for Water/Sewer Fund projects. In 2004-05 the City got $13.5 million in bond money and put $4 million into capital improvement projects, $1.5 million went into alleys and $8 million went to Water/Sewer Fund projects. In 2005-06 the actual bond proceeds received were $29.3 million of which $6 million went to bond refunds, $6.2 million went to capital improvements, $500,000 for alleys, $13.1 million to the Sherman Plaza garage and $3.3 million went to Water/Sewer Fund projects. In 2006-07, actual bonds proceeds were $10.3 million of which $7.8 million went to capital improvements, $500,000 went to alleys and $2 million went to Water/Sewer Fund projects. Part of what is in the Water/Sewer Fund is a part of the Insurance Fund strategy. Exhibit E on Page 29 showed transfers to the Insurance Fund. Beginning in 2003-04 through 2007-08. The $3 million in 2003-04 in the Sewer Fund was transferred in 2006-07. 9©6- 3 January 27, 2007 Alderman Rainey said in reading the budget page 459, Council was alarmed at the meager reserves. She noted the Insurance Fund Summary indicates $3.9 million in revenues and $3.3 million in expenditures, so the Insurance Fund is okay. Mr. Grady noted the City has to pay the first $2 million on any claim. Ms. Carroll explained that if they tied together the new budget page, which they were told about and the financing strategy, staff believes they need to have a minimum of $2 million in the Insurance Fund as part of the five year strategy and will need to go to 2009-10 to hit the $2 million mark. Staff is showing where they were and the accounting error as well as the financing strategy to get them to the $2 million. Alderman Rainey noted the accounting error had no impact. Ms. Carroll noted if the transfer had been done at the proper time, the deficit last year would have been only $500,000 in the Insurance Fund. Ms. Carroll stated they would have enough funds to take care of short-term liabilities this year. Mr. Grady stated staff would like to report either quarterly or every six months. Alderman Bernstein asked if the certified audit had found that funds had not been transferred from the Sewer Fund. They had not. Human Relations Transition Plan Assistant City Manager Rolanda Russell reiterated that the Human Relations Commission's role would not change during the transition. She met with the department director and employees to discuss their programs in great detail, workload and capacity and ended up with six general areas. Residential/Landlord Tenant Ordinance; Equal Opportunity Employment; Fair Housing; Summer Youth Employment Program; Neighborhood Justice Center and the CommUNITY Picnic. They looked at specific tasks of every individual and made decisions about how they will transition from the current organization to the one after at the beginning of the fiscal year. Currently four staff people work on the landlord/tenant ordinance. The new plan will have three people and the Assistant City Manager. Ms. Russell will participate and provide supervision. Currently one staff handles equal opportunity employment; in the transition they will have one staff, the assistant city manager, minority enterprise, human resources and the Law Department providing support. Currently three staff work on fair housing; two will work in that area, herself and support from the Law Department. This expands the role and integrates it into other departments. Currently there is one staff for the neighborhood justice center; the transition is two staff and support from the Law Department. The summer youth program has three staff and a temporary worker. She would assist, with two staff and a temporary worker. Two staff members and a temporary worker currently work on the CommUNITY picnic. They will have two staff and a temporary plus herself. Currently the neighborhood justice center has one staff and in transition they will have two staffplus support from the Law Department. The goal is to provide a smooth transition and service to citizens based upon those six tasks. She has a detailed work plan with every task listed and every employee. They have changed their recommendation and will retain a human relations specialist. The two human relations specialists and executive secretary will work directly with her and continue doing the department's work. Ms. Russell will work directly with the commission. She and Ms. Carroll will meet with the commission and go through this plan on Monday. Alderman Rainey asked if the human relations specialists are on staff now. Yes. Will people remain where they are on the first floor. That has not been determined. What is the relationship in the new setting between the human relations specialists and the Law Department? Ms. Russell stated when a tenant calls with a problem with a landlord, that would not change from what is done now. What would change is additional support from the Law Department. Alderman Rainey said there are sometimes problems that have to be dealt with immediately such as heat shut off. Will those two specialists be expected to handle that? Alderman Rainey asked how familiar she was with the rental community and the landlord/tenant ordinance. Ms. Russell said she was a quick study. Alderman Rainey was concerned because the Law Department is not involved enough now with highly experienced people. Ms. Russell thought by moving this to the city manager's office these problems (from sexual harassment, discrimination and all issues) would get more attention from legal and human resources. Ms. Carroll said they are taking this on as a division of the city manager's office because it is important to assure that collaboration, cooperation and assistance of other departments is fully utilized. Ms. Russell had similar experience in Roanoke, VA. The summer youth employment program will not change. In response to Alderman Jean -Baptiste, Ms. Russell said the neighborhood justice center conducts mediations between citizens and neighborhoods. If somebody has a problem with a neighbor, one of the specialists will meet with the neighbor to resolve it. If there are referrals from the Police Department, a specialist, she or somebody from the Law Department will meet to resolve it. Ms. Russell passed out worksheets. Currently there are four employees and a temporary worker in the Human Relations 2D(P 4 January 27, 2007 Department. Alderman Jean -Baptiste asked when they are through reorganizing, how many people will be in the Human Relations Division. There will be three. He noted there would be more people actually involved and didn't see a difference if their objective is to cut back. It seems the only cutback is the director. Originally a human relations specialist and the director position were to be eliminated. Now only the director position is eliminated. They are taking a more comprehensive approach, bringing in additional departments, getting more training and it won't cost as much as now. Alderman Jean -Baptiste stated that support from the Law Department should have been there all along. Some thought the way to impact youth was to make the youth employment program year round. To spread out responsibilities so broadly and to take experts such as the Assistant City Manager and make her attached to many tasks, minimizes her input. She will staff the commission meetings and be involved in different areas. He did not think they were making this service more efficient and asked to see everything in writing. The landlord/tenant relationship oversight has been hands-on and Alderman Jean -Baptiste did not see Ms. Russell engaging in that work. In the final analysis, they will lose her leadership. Mayor Morton noted he was getting into how to manage a department. Alderman Rainey asked if the proposed budget provided for elimination of the director and one staff person. Yes. Ms. Russell said only one position would be eliminated. The budget implication is about $38,000; 50% of the salary of the human relations specialist is from the General Fund and 50% from CDBG funds. Alderman Rainey asked if any other position eliminations depend upon CDBG funds? No. Assistant City Manager Judith Aiello would check that. Alderman Wollin understood that Council did not support the 50/50 tree planting proposal. Seconded by Alderman Rainey. Alderman Rainey requested a printout of the current spreadsheet, which will be e-mailed before the January 31 meeting. Citizen Comment Junad Rizki. 2627 Ridge Ave., suggested the City should review its financial report during budget deliberations. He did not think the vast majority of citizens ever see it. He was bothered that the Water/Sewer Fund was used for other things. He looked at Budget # 14 which states that fees will be raised in the future to supply more funding to fix the water lines. They need to decide whether they are going to raise water/sewer rates or raise the property tax. This is just a game of moving money around. Alderman Rainey asked the last time water rates were increased. It was more than13 years ago. Gerald Gordon, 1228 Lake St., stated last week he spoke of a possible discrepancy on the Water Fund balance. He met with Mr. Grady and determined there is no discrepancy. The large fund balance included fixed assets of $45.6 million which are not available for transfer to the General Fund. He apologized for any confusion he may have caused. Jan Sullivan, 1300 Rosalie St., Human Relations Commission member, spoke about elimination of the Human Relations Department and the decision process for the budget and how decisions have been made currently about the Human Relations Commission. She found out about the potential elimination of the Human Relations Department in an article in the Evanston RoundTable, even though she is a commission member. She found that offensive; stated that commission members should have been included in the discussion on how the department could be handled in the future. Evanston is a democratic community and prides itself on deliberation. The fact that so many different responsibilities are housed in one department is critical to its functioning. The community prides itself on the protection of vulnerable people and keeping Evanston diverse. She thought elimination of this department removes or disperses the protection of certain groups and may diminish the commission's ability to protect those vulnerable individuals. She was concerned that the loss of Paula Haynes, who has been so effective in implementing the ordinances and doing a variety of things the ordinances do not require (such as personally mediating and resolving a lot of community conflicts), could erupt into lawsuits or other expenditures that cost more than her salary. She felt the City would not save a great deal of money by eliminating the director position. She urged a careful look at this because this department reflects a function of the City 361 5 January 27, 2007 and an underlying philosophy for which this City is well known. Evanston believes in having a diverse community and protects the rights of the most vulnerable in the community. Having a group that lifts up and resolves race relations and builds community through the CommUNITY Picnic — are all elements that a legal service won't provide. She suggested they think about the "human" part of this Human Relations Commission and the necessity to keep this a human community that meets the needs of all its members. The prior library discussion reflected the need for this department. She heard people struggling to keep alive two branch libraries that serve a predominantly white community and a deficit of a branch in a minority area of the City, which reflects the need for this department, and the need to focus on providing equal services to all areas of the community. Judith Treadwav, 225 Callan Ave., supported Council in the difficult decisions they have to make; reminded them of things that need to be said. She thought straw votes mean nothing when the final decision has to be voted on. She attended a workshop conducted by County Commissioner Larry Suffredin and asked how specific are the two hospitals going to be in prioritizing the needs of our community. It was acknowledged that other health departments would be closed down in Cook County. Mr. Suffredin also acknowledged the limitations on determining who would be served. Who will determine the level of care, the community or the hospitals? It is people services versus services for convenience. Whose needs will be met in this community? If they keep the branch libraries on the table, comments from Alderman Moran would be an impetus in the future to put a library branch on Evanston's west side. They talk about dismantling the Human Relations Department and have been assured that is not going to happen but that duties will be moved to other departments and will be more effective. They talk about detaching the director and trying to keep things balanced. It is difficult when aldermen support their pet projects. She has lived here for 16 years; 12 years ago she heard a former alderman ask for the elimination of the Human Relations Department and she wondered why. The last time she used the services of the Human Relations Department, she had a hearing on a complaint lodged with the City. The only thing the Law Department did was the corporation counsel told her she could not speak. If that is the kind of service they will get with this being placed in the City Manager's office, she would not be excited about it. She asked them not to forget about discrimination complaints, on race, age, sexual harassment, religion, national origin or disability. Nobody has talked about those kinds of complaints. Will people get legitimate service? If they want to uphold equity and diversity, they have to address race. Christopher Stewart. 1209 Dewey Ave., vice president of the Evanston Library's Board of Trustees, Board of Directors of the North Suburban Library System and is Dean of Libraries at the Illinois Institute of Technology. The Library Board strongly supports the staffing recommendations in the budget and continued branch libraries. The library is at the heart of a great community. While many complain about the decline of culture, there are three times more libraries in the U.S. than McDonald's. To have a positive impact on the community, a library must have quality collections and a quality staff. The modest increases in staffing address those needs. Due to insufficient staff to manage the collections, library shelves are filled with aging materials that result in residents borrowing more from neighboring community libraries than from Evanston. There are heavy imbalances. Many of these communities commit more resources to staffing and collections than does Evanston. Even so, Evanston receives broad -based community support. Approximately 25% of the cost of collections comes from the annual campaign, which is impressive for a public library. He thought it important that they hold up their end and make sure these collections are maintained properly. Transitioning a part -rime to a full-time collection manager is essential. The library strongly supports the community's commitment to youth. Young people are among the libraries largest users and it plays a critical role in the cultural and educational development of young people. The library's modest request for moving the sole teen services librarian from part time to full time as well as bringing in a part-time children services staff assistant will ensure that basic library services can be delivered and support the expansion of the library services for children and teenagers. Evanston's libraries have traditionally done more with less. These relatively modest requests are important to serving youth and keeping the collections vibrant and relevant. Leah Callaehan, 1017 Sherman Ave., has attended all the budget review sessions. As a member of the Arts Council, she reminded them of their request for a corporate sponsorship position. If anyone has any questions, she was available. She noted these discussions reminded her that the role of the City is to facilitate the opportunity for citizens to participate in independent programs and revenue creating programs, including the library and the program the Arts Council has proposed. She suggested that more people be involved in creating opportunities for the community. 6 January 27, 2007 Teddv Keenan. 2214 Colfax St., said since he was a little boy the Central Street library has been an important part of his life. Before he was in kindergarten, he learned how to write his name so he could get his own library card because that was the rule: you had to be able to sign the back to get your own card. He remembers sitting in a big black chair looking at little kid's books. They even used to go to the library with his preschool. Covenant Nursery School would have a reading by Muriel. She always did the story as a play and he thought that was neat. Now that he is older, he is able to walk to the Central Street library by himself and can even take his little brother there. It makes him feel good that his brother loves it just as much as he did. He likes it so much because the librarians really get to know you and what you like to read. At the main library, the librarians don't know you and he can't go there by himself and just chill. When he thought about how it would make him feel if the Central Street library wasn't there, it would make him sad and would ruin the whole vibe on Central St. He remembered when he was little making posters to keep the library open before and it made him feel bad. He asked, please don't close the library. Keep it open forever so that kids that come after us, like his little brother, will have just as much fun at the library on Central Street as he did. Madelvn Ducre, 1929 Foster St., took her children to the branch library on Simpson St. and recalled how they were upset when it closed. She asked that the city manager, mayor and Council members to carefully study the pros and cons of cutting, phasing out and going through any additional transitions for the City and for the people of Evanston. She asked, as coordinator of African Network for Equality and Fairness (ANEF), that they consider the need for social programs for the poor in Evanston and for those who might need these programs during their stay here. She did not envy local politicians for having to make decisions for the City and residents. She remembered at a budget meeting years ago, a speaker said that Evanston would always raise taxes and those who cannot afford to live in Evanston should move. It bothered her for a long time. She said they don't live in Kenilworth. They live in Evanston, which stands for diversity. Patsv Thrash, 2337 Hartrey Ave., is a devotee and advocate for the library system and, most significantly, of the branch libraries. She uses all of them; thought they made a mistake if they think circulation is the measure of service. When she visits the north branch, she sees senior citizens reading the newspapers, children, people who don't have computer, a place of safety, competent people who staff the library, and a caring and loving place. She cannot imagine even considering closing the branches and not looking for a west branch. Alderman Tisdahl reported she had been asked to represent Brownie Girl Scout Troop 93, who loves the north branch library because they can walk there and find it more difficult to get to the main library. The north branch has lots of great books. It may be small but it is a nice quiet place. They have their battle of the books. It is a nice place to do homework. The people who work there are very nice and helpful. They give out cookies at Halloween. They don't want Central Street to change. It's a nice place to meet friends. It is important to a lot of people including senior citizens and people with disabilities. There are arts and crafts and fun story times for little kids. Nice people go there. They like the summer reading program. It is easy to return books. They can go alone because they can't drive yet. They know that little kids also hope it stays open and they can't write yet. Please keep our branch library open, signed --Troop 93, Kingsley Elementary School. Alderman Jean -Baptiste asked what happened to the Simpson branch library. Mayor Morton explained there were problems with groups on the street that people had to wade through. So many parents would not let their children go there. Alderman Holmes said there was a perception that there were gangs and unsafe. Many parents used it. She commented on Troop 93's statement that they did not want Central Street to change. Alderman Holmes thought nobody wants Evanston to change, but the reality is that they have to make decisions about taxes or cuts in services. Everything was a live issue until the final vote because she wanted to hear every presentation and make a decision that is fair to the entire City. She would not participate in any straw votes. There being no further business to come before the Council, Mayor Morton asked for a motion to adjourn and the Council so moved at 12:28 p.m. Mary P. Morris, City Clerk A videotape recordine of this meetine has been made hart of the permanent record and is available in the Citv Clerk's office.