CITY OF ROCK ISLAND

Rock Island City Council met in regular session at 6:45 p.m. in the Council Chambers of Rock Island City Hall. Present were Mayor Mark W. Schwiebert, presiding, and Aldermen Terry M.A. Brooks I, David Conroy, Dennis E. Pauley, Stephen L. Tollenaer, Margie Mejia-Caraballo, Joy Murphy and Charles O. Austin III. City Manager John Phillips was also present.

Introductory Proceedings

Mayor Schwiebert called the meeting to order and lead in the Pledge of Allegiance to the Flag of the United States of America. Alderwoman Mejia-Caraballo gave the Invocation.

Agenda Item #5

Minutes of the Meeting of February 9, 2009.

A motion was made by Alderman Austin and seconded by Alderwoman Murphy to approve the Minutes of the Meeting of February 9, 2009 as written. The motion carried by the following Aye and No vote; those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #6

Update Rock Island By Mayor Schwiebert.

Mayor Schwiebert stated that this evening, Council will be acting on an agreement for the conveyance of land on the Columbia Park property to the Rock Island Mass Transit District (MetroLink). The Mayor offered that the 30 million dollar project will allow for the doubling of the size of MetroLink’s operation and maintenance facility; it will allow for the increase of the fleet from 60 to 120 vehicles; and it will allow for the projected increase from 149 to 297 employees. In addition, this will constitute one of the 1^st major projects on the east side area of Columbia Park.

Mayor Schwiebert indicated that Council will be approving a development agreement with the Rock Island Economic Growth Corporation for an 18 million dollar conversion of the Illinois Oil building to a mixed rental income housing complex (Jackson Square) with 72 units, one (1), two (2) and three (3) bedroom units, covered parking, high speed internet access and 5,700 square feet of meeting space.

Major Schwiebert indicated that at the Quad City Botanical Center site, work is taking place at this former site of a filling station and cycle shop. The Mayor offered that one of the things that has been done at the site is Bio-remediation. The Mayor explained that biologic agents are deposited in the ground, which breaks down contaminants and then the soil can be used on site. The Mayor added that this area will become part of the Quad City Botanical Center’s Children’s Garden.

Mayor Schwiebert offered that tonight, Council will be acting on a calendar of events for Downtown activities in the District. The Mayor indicated that there are 58 events up for consideration that are scheduled to run from April 25, 2009 to December 4, 2009 in the Downtown area. This will include District sponsored activities as well as Downtown business sponsored events. Mayor Schwiebert also congratulated the Rock Island Brewing Company (RIBCO) for celebrating 30 years of business in the Downtown area and for being one of the great anchors and music venues in the Downtown.

Mayor Schwiebert indicated that Council will also be acting on an 8.8 million dollar bond referendum that will provide for expanding the Rock Island Fitness and Activity Center (RIFAC), the purchase of land along 11^th Street and Armory Park improvements.

Mayor Schwiebert recognized Carol Triebel from the Community and Economic Development Department for developing the idea of the Good Cents program. Mayor Schwiebert explained that the City has had a fund for a number of years that assists people that are homeowners and have somewhat limited incomes with roof repairs. It was noted that there is a cap on the money that is available to match their private dollars. The Mayor added that the suggestion was raised that when citizens receive their utility bills and the dollar amount is with cents (example-$98.32), it could be rounded to the next dollar amount (example-$99.00). The Mayor offered that these added cents would be deposited back into this fund to be utilized to assist people with insulating their homes against the elements. It was noted that this is strictly on a voluntary basis.

The Mayor stated that the Economic Stimulus Bill was approved by Congress this past week and the President will be signing it this week. Mayor Schwiebert offered that he will be circulating a summary of the bill to Council, which shows a breakdown of some of the appropriations.

Agenda Item #7

Presentation of the fourth (4) quarter Employee Recognition Award to Julie Sullivan from the Rock Island Police Department.

Mayor Schwiebert and City Manager Phillips presented Julie Sullivan from the Rock Island Police Department with the fourth (4) quarter Employee Recognition Award.

Mayor Schwiebert stated that the Employee of the Quarter Award is a program that recognizes employees who have distinguished themselves by showing outstanding service qualities.

City Manager John Phillips stated that Ms. Sullivan has been a Telecommunicator for 23 years with the City of Rock Island. Mr. Phillips added that Ms. Sullivan does very important and challenging work; she also trains new people to learn this position. Mr. Phillips offered that this recognition is for Ms. Sullivan’s role in merging the City’s Computer Aided Dispatch with five (5) other jurisdictions that include; the County, Moline, East Moline, Silvis and Milan. Mr. Phillips added that this project was a massive undertaking and Ms. Sullivan spent many hours on this project. Ms. Sullivan participated in the discussions with the team and options were evaluated to determine how the program could be implemented. Ms. Sullivan did a great job in representing the City of Rock Island and the Police Department. Mr. Phillips stated that the program kick-off was on October 15, 2008. In addition, Mr. Phillips offered that this was a good opportunity to enhance emergency services with those jurisdictions and to save software maintenance.

Agenda Item #8

Presentation of the 2009-2010 Budget by City Manager John Phillips.

City Manager John Phillips addressed Council and stated that the process for reaching a balanced budget this year was more challenging in this difficult economic environment. It was noted that the budget was finally narrowed down to 1.2 million dollars. Further work was done on the budget, options were identified and included; the transferring of Motor Fuel Tax to the General Fund in the amount of $800,000.00, additional street and right of way maintenance contracts to be funded from Gaming revenue, which provided an additional $226,000.00 in revenue for the General Fund; and the approved fee increases, which will generate an estimated $75,000.00 to $100,000.00 in revenue. It was noted that with the above mentioned actions, this helped to finalize the budget and prepare a balanced budget for Council consideration. Mr. Phillips stated that the budget schedule calls for approval of the budget on Monday, March 23, 2009 prior to the beginning of the April 1^st fiscal year.

City Manager John Phillips then presented the 2009-2010 Budget. Mr. Phillips stated that the budget is a financial plan that outlines where funding will come from and where funding will be spent. The budget serves as an operations guide to staff on how each department will be allocating resources to get the job done.

Mr. Phillips explained that the General Fund covers the revenues and expenses of many City services. Police, Fire and Public Works are the areas that comprise approximately 85% of General Fund spending with 36 % being spent in Police, 24 % in Public Works and 25% of spending in Fire. Personnel costs are a major item in the budget totaling approximately 69% of the General Fund budget. Services are at 22%, which include utility expenses, solid wastes disposal fees, and many other services included in the City budget. The General Fund budget is proposed at 31.7 million dollars. Mr. Phillips noted that this represents a 3.8% increase over last year’s General Fund budget. The reason for any increase is due to Personnel costs. The three (3) components of that include: salaries, which are up $434,000.00, health insurance, which is up $169,000.00 and pensions, which are up $428,000.00.

Mr. Phillips offered that the Illinois based revenues are based on the State economy and the distribution formulas that the State provides. Income Tax revenue is 11% of the General Fund. The City projects 3.6 million dollars. This is approximately 2.6% more than the budget this year and less than what the City received in the 2007/2008 budget. Mr. Phillips indicated that the Income Tax has increased since 2003, but the City expects it to level off and possibly decline. The City will have to monitor these closely due to the state and national economy.

Mr. Phillips indicated that another major revenue source is Replacement Tax, which is based on corporate income. It is projected at 2.5 million dollars for next year. Mr. Phillips noted that this a projected decrease of 17% from the amount the City received during the last fiscal year. Mr. Phillips stated that this revenue source is impacted significantly by the strength of the economy.

Mr. Phillips indicated that the Use Taxes are taxes that are collected in Illinois on certain goods and services, which are distributed back to local communities and are based on population. The City is projecting approximately the same revenue as last year. Mr. Phillips noted that the Utility Tax is stable with no growth anticipated.

Mr. Phillips stated that the Sales Tax was 3.9 million dollars in 2008, and it is projected to be lower in 2009, which is only 5% more than what the City received eight (8) years ago. Mr. Phillips added that this important revenue source continues to be flat. Mr. Phillips indicated that most of the growth in revenues in past years has come from the growth in state based revenues; locally generated revenues continue to be flat. Mr. Phillips stated that the challenge for the City during difficult economic times at the state and national level is that both state and local revenues are not increasing and in some cases, they are decreasing.

Mr. Phillips explained that on the expense side, health insurance costs have increased 150% from 2001 to the budgeted amount for next year. Mr. Phillips pointed out that pension costs continue to be a major concern. Pension costs are budgeted for the next year at 5.6 million dollars.

Mr. Phillips indicated that the total budget is proposed at $88,179.000.00, and this is a 8% increase over 2008, which is due to major projects that include; the Rock Island Fitness and Activity Center, expansion and renovation of the Martin Luther King Center, Armory Park and other projects.

Mr. Phillips stated that Personnel costs and Debt services are up. Services and transfers are lower than they were last year. Property Taxes represent 12% of the total budget. Mr. Phillips stated that the good news is the continuing growth of the assessed value in the City of Rock Island. Mr. Phillips noted that this year, the assessed value is increasing 2.9%. The amount of the Property Tax Levy has increased on the average of approximately 2.7% per year. This is less than the rate of inflation over that period. Mr. Phillips noted that the Property Tax Levy is the amount the City collects to use for budgeted purposes. Mr. Phillips mentioned that the Property Tax bill that residents receive shows that the schools receive 55%; the City receives 26%; the County receives 9% and other taxing bodies receive 10%. Mr. Phillips noted that for every dollar that citizens pay in property taxes, the City receives 26 cents.

City Manager Phillips noted that the Property Tax Rate has declined from $4.13 per $100.00 of assessed value to $2.34. As assessed values of properties increase, the City decreases the tax rate; and taxes will be collected at a rate less than the rate of growth of property values in the City. The budget proposal calls for the same tax rate as last year. It is recommended to increase the tax levy 2.89%. City Manager Phillips discussed Police and Fire pensions and stated that Police and Fire pensions are 32% of the Property Tax. Mr. Phillips offered that it is important that future enhancements to Police and Fire pensions be halted so that cities like Rock Island can digest the impact of such enhancements and fund the pension funds at the level needed without jeopardizing the ability to meet obligations for pensions and to fund other services to the citizens.

City Manager Phillips concluded the discussion with various strategic issues sighted for the coming year. One of which is to maintain and enhance the financial strength of the City. Mr. Phillips reminded Council that the budget work sessions would be held from 8:00 a.m. to 12:00 p.m. on Saturday, February 28, 2009 and Saturday, March 7, 2009.

Agenda Item #9

Proclamation declaring February 22, 2009 as NAACP Religious Affairs Community Day.

Ms. Ametra Carroll of 720 9^th Street stepped forward as Mayor Schwiebert read the Proclamation declaring February 22, 2009 as NAACP Religious Affairs Community Day.

Ms. Carroll thanked the Mayor and City Council for the Proclamation and introduced several of the members of the NAACP Religious Affairs Committee including: Elder Jerome Green who will be Master of Ceremonies for the Community Day; Evangelist Cynthia Green, who will be the Mistress of Ceremonies and Minister Gerald Nicholson, who is Chaplain of the committee. Ms. Carroll then presented Mayor Schwiebert with a T-shirt designed by the NAACP religious Affairs Committee.

Agenda Item #10

A Special Ordinance amending a Special Ordinance establishing removal of the residential parking restriction on both sides of 15^th Avenue between 5^th and 6^th Street.

It was moved by Alderman Tollenaer, seconded by Alderman Conroy to consider, suspend the rules and pass the Ordinance establishing removal of the residential parking restriction on both sides of 15^th Avenue between 5^th and 6^th Street. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #11

A Special Ordinance declaring the current City-owned 1978 Chevy Pickup, Fleet #2357 as surplus and allowing for disposal.

Alderman Conroy moved and Alderwoman Mejia-Caraballo seconded to consider, suspend the rules and pass the Special Ordinance declaring the current City-owned 1978 Chevy Pickup, Fleet #2357 as surplus and allowing for disposal. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #12

A Special Ordinance amending a Special Ordinance establishing seven (7) 30 minute parking spaces without meters on the west side of 17^th Street between 1^st and 2^nd Avenue, and establishing one additional handicapped parking space on the east side of 16 ½ Street between 1^st and 2^nd Avenue.

It was moved by Alderwoman Mejia-Caraballo, seconded by Alderman Conroy to consider, suspend the rules and pass the Ordinance establishing seven (7) 30 minute parking spaces without meters on the west side of 17^th Street between 1^st and 2^nd Avenue, and establishing one additional handicapped parking space on the east side of 16 ½ Street between 1^st and 2^nd Avenue. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #13

CLAIMS

It was moved by Alderman Pauley, seconded by Alderwoman Mejia-Caraballo, to accept the following reports and authorize payment as recommended. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

a. Report from the Public Works Department regarding payment in the amount of $16,307.77 to USALCO for the January purchase of Liquid Aluminum Sulfate. (049)

b. Report from the Public Works Department regarding payment in the amount of $3,025.08 to Itron, Inc. for the annual maintenance for Water Meter Services handheld computer. (051)

c. Report from the Personnel Department regarding payment in the amount of $19,968.33 to Attorney David Goldberg (Crawford & Company) for Worker’s Compensation settlement for Christian Mark.

Agenda Item #14

Claims for the week of February 6 through February 12 in the amount of $692,136.06.

Alderman Pauley moved and Alderman Austin seconded to allow the claims. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #15

Payroll for the weeks of January 26 through February 8 in the amount of $1,119,554.12.

It was moved by Alderman Conroy seconded by Alderwoman Mejia-Caraballo to allow the payroll as recommended. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #16

Report from the Public Works Department regarding the purchase of parts for the pot hole patching machine from Schwarze Industries, Inc. in the amount of $4,306.27.

Alderman Conroy moved and Alderwoman Murphy seconded to approve the purchase as recommended.

Discussion followed. Mayor Schwiebert inquired upon Public Works Director Bob Hawes as to what the parts would be and what procedures the Public Works Department would be following in regards to pot hole repairs.

Mr. Hawes stated that this particular machine is a warm weather machine. It cannot go out until the material is ready, which will possibly be in two (2) months. Mr. Hawes offered that currently, old fashion coal mix is used to fill the pot holes, which is done every day.

After discussion, the motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #17

Report from the Public Works Department regarding bids for the purchase of traveling screen repair parts, recommending the bid be awarded to Screening System International, Inc. in the amount of $13,513.00.

It was moved by Alderwoman Murphy, seconded by Alderwoman Mejia-Caraballo to award the bid as recommended and authorize purchase. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #18

Report from the Martin Luther King Center regarding a contract with Estes Construction for Construction Management Services for the renovation and expansion of the Martin Luther King Center.

Alderwoman Mejia-Caraballo moved and Alderman Austin seconded to approve the agreement as recommended, and authorize the City Manager to execute the contract documents. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

It was noted to refer to the City Manager for the contract documents. The documents were not included with the report.

Agenda Item #19

Report from the Community and Economic Development Department regarding a development agreement with Catherine and Dr. John Viren for the Schriver House at 1029 3^rd Avenue.

It was moved by Alderman Conroy seconded by Alderman Pauley to approve the development agreement as recommended, and authorize the City Manager to execute the contract documents.

Discussion followed with Mayor Schwiebert inquiring as to what the timeline would be for completion of the project.

Planning and Redevelopment Administrator Alan Carmen stated that it is a multi-year project. It is expected for the work to begin in the spring of this year with an estimated two (2) to three (3) year timeline for completing the project.

After discussion, the motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo and Alderman Austin; those voting No, none. Alderwoman Murphy abstained.

Agenda Item #20

Report from the Community and Economic Development Department regarding an agreement with Rock Island Economic Growth Corporation to support the Jackson Square development project.

Alderman Pauley moved and Alderwoman Mejia-Caraballo seconded to approve the agreement as recommended and authorize the City Manager to execute the contract documents. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #21

Report from the Community and Economic Development Department regarding an addendum to an existing contract with EnviroNet, Inc. for environmental cleanup of four (4) properties at 3^rd Avenue and 24^th Street.

It was moved by Alderwoman Murphy seconded by Alderwoman Mejia-Caraballo to approve the addendum as recommended, and authorize the City Manager to execute the contract documents. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #22

Report from the Community and Economic Development Department regarding a First Amendment to the development agreement with Columbia Park LLC for extending the closing deadline to March 16, 2009.

Alderman Pauley moved and Alderwoman Murphy seconded to approve the First Amendment as recommended and authorize the City Manager to execute the contract documents. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #23

Report from the Community and Economic Development Department regarding a development, purchase and escrow agreement with MetroLink and an Ordinance for the sale of land to MetroLink.

It was moved by Alderwoman Murphy, seconded by Alderman Pauley to approve the agreements as recommended, approve the Ordinance (next item) and authorize the City Manager to execute the contract documents. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #24

A Special Ordinance providing for the sale of City-owned property to the Rock Island County Metropolitan Mass Transit District.

Alderman Conroy moved and Alderwoman Mejia-Caraballo seconded to consider, suspend the rules and pass the Special Ordinance providing for the sale of City-owned property to the Rock Island County Metropolitan Mass Transit District. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #25

Report from the Finance Department regarding uncollectible loans.

It was moved by Alderwoman Mejia-Caraballo, seconded by Alderwoman Murphy to approve the write-off of balances for uncollectible loans and corresponding allowance as recommended. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #26

Report from the Finance Department regarding the issuance of Series 2009 General Obligation Bonds for fiscal year 2010 capital improvements.

Alderwoman Murphy moved and Alderman Austin seconded to authorize staff to proceed with the March 23, 2009 sale of General Obligation Bonds as recommended. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #27

Report from the Community and Economic Development Department regarding organizational appointments to Neighborhood Partners, recommending Highland Park Historic Neighborhood Association, Rock Island County Area Project and YouthBuild Quad Cities as constituent members of Neighborhood Partners.

It was moved by Alderwoman Mejia-Caraballo, seconded by Alderwoman Murphy to approve the appointments as recommended. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #28

Report from the City Clerk regarding the Plaza Events to be scheduled for the coming season, a Resolution for the American Heart Association’s Start! Heart Walk and the Quad Cities Criterium, requesting a waiver of application and event fees for the District’s two Gallery Hops, Red, White and Boom and the Summer Lunch on the Plaza Series, and a waiver of event fees for the Fifth Annual Labor Day Ride for Non-Hodgkin’s Lymphoma sponsored by the Daiquiri Factory.

Alderman Conroy moved and Alderwoman Mejia-Caraballo seconded to approve the events and the waiver of fees as recommended and adopt the two Resolutions.

Mayor Schwiebert inquired as to whether anyone from the Downtown was at the Council meeting to discuss any of the activities planned for this year.

Alderwoman Mejia-Caraballo stated that she was excited to see the Plaza Lunch Series come back.

Downtown Special Events Coordinator Carl McClaskey stepped forward and stated that a few years ago there was a Lunch on the Plaza Series and it is being brought back to bring more people into the Downtown during the day time hours. The Lunch on the Plaza Series will incorporate local musicians on the Plaza from mid May through August from 11:30 a.m. to 1:30 p.m. Mr. McClaskey stated that if it is successful, Thursdays will be added. The District will try to get the local businesses involved in some type of $5.00 brown bag lunch. Mr. McClaskey stated that it will be a full summer of activities.

Agenda Item #29

Items from the City Manager’s Memorandum Packet.

City Manager John Phillips made reference to information included in the memo packet regarding the Good Cents program and inquired upon Planning and Redevelopment Administrator Alan Carmen and Housing Program Officer Carol Triebel to explain the details of the program.

Mr. Carmen stated that the City has been offering programs for housing renovation for years. It has been found that costs have increased for labor and materials. Mr. Carmen offered that approximately one year ago the amount of money that was offered for the City roof program was increased to $6,000.00. It was determined that there were clients that were unable to have bids come in under that amount. Mr. Carmen indicated that the issue was discussed, and Ms. Triebel came up with the concept that would allow the City to create a fund for people that may want to voluntarily contribute through their utility bills. Mr. Carmen explained that the amount of a customer’s quarterly bill would be rounded up to the next dollar and the money would go into a fund that the City could tap into to bridge that gap.

Mr. Carmen offered that it would take time for the funds to build a balance in the Good Cents program. Mr. Carmen added that the City applied last year for funds and received them from the Rauch Foundation; this will provide some seed money for the programs. Mr. Carmen added that the Good Cents program will begin in early March of this year.

Ms. Triebel stated that the City will be helping customers that are qualified homeowners that have paid their taxes. Ms. Triebel offered that these customers are excited to be on the roof program due to waiting a year to get to the top of the list. Ms. Triebel explained that when a bid comes in too high, these individuals have no resources to come up with the money. Ms. Triebel stated that she would like for the program to be successful so that these customers can be helped.

Alderwoman Murphy inquired as to when the public would be invited to participate in this program.

Ms. Triebel offered that a form and brochure will be included with the utility billing. If a customer would like to participate, they will need to sign the form. Ms. Triebel indicated that they will also market the Good Cents program through the City’s website, the cable access channel, e-mails and other advertizing associations.

City Manager Phillips made reference to the Management Report for January 2009 that was included in the memo packet. Mr. Phillips inquired upon Finance Director Bill Scott to review the highlights of the report.

Mr. Scott stated that there were not a lot of changes from the December 2008 report. It was noted that in the General Fund, the taxes are being tracked. The surplus that the City is projecting is coming down. Mr. Scott offered that it is still on track to exceed the budget; it is less than it was in prior months. Mr. Scott indicated that in the City Wide and Debt area, there were no changes. Mr. Scott acknowledged that in the Community Development category, the City continues to see good returns from the TIF property tax receipts. The expenditures in the CED and CDBG funds are below budget. It was noted that there is no change in the Appointed Board area. Mr. Scott stated that in the Public Works and Streets and miscellaneous Capital Improvements area, things are on target, but there is below target spending for capital projects.

Mr. Scott indicated that investment bid charts were included in the report and there is a decline in the amount of interest the City receives. It was noted that the City is ahead of the benchmark.

Alderman Austin inquired as to why one of figures on the General Fund Expense by Department page shows that the Finance Department is over budget.

Mr. Scott explained that the transfer of the excess General Fund Balance to the Capital Improvement Fund comes out of the General Fund. It has to be recorded in a Department and the Finance Department is the department that it is recorded in.

Mr. Phillips then inquired upon Mr. Scott to explain the report in the memo packet regarding Red Flag Rules.

Mr. Scott inquired upon Accounts Receivable and Customer Service Supervisor Kim Reda to assist him with the explanation.

Mr. Scott offered that the Red Flag Rules is a program that safe guards the identity of the City’s customers and it is for the City to be aware of potential suspicious activity or red flags that could indicate identity theft.

Mr. Scott explained that in 2003, there was a Fair Accurate Credit Transactions Act that took until November of 2007 for the rules to come out. The rules allowed until November of 2008 for everyone that had applied to be in compliance. In addition, it was determined that not everyone that had applied knew about the compliance date; in effect, the deadline was extended to May of this year. Mr. Scott noted that this does apply to the City due to the City being a creditor.

Mr. Scott indicated that this will not affect all of the City’s customers; it will affect some landlords. Mr. Scott stated that effective April 1, 2009; the City will require identification of all customers that are signing up for services. The billing will be changed and the bills will be sent out to owners that provide identification to the City. An owner will not be allowed to put the bill in a tenant’s name. In addition, the City will no longer make short-term arrangements with tenants for past due bills. Mr. Scott concluded that a letter will be included with the Rental Housing License bills that will be going out soon. This letter will notify the landlords of this new procedural change.

Ms. Reda did not have any additional comments.

City Manager John Phillips made reference to a report in the memo packet regarding the completion of the 11^th Street and 15 ½ Avenue water service project.

Agenda Item #30

Other Business

Timothy Dooling of 832 14 ½ Street stepped forward and voiced concerns regarding civil matters and Police issues.

Agenda Item #31

Executive Session on Personnel.

A motion was made by Alderman Austin, seconded by Alderwoman Murphy at 7:50 p.m. to recess to Executive Session on matters of Personnel. The motion carried on a roll call vote. Those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

Agenda Item #32

Recess

Mayor Schwiebert reconvened the regular meeting at 8:21 p.m. A motion was made by Alderman Brooks and seconded by Alderwoman Murphy to recess to Saturday, February 28, 2009 at 8:00 a..m. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderman Tollenaer, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

The meeting was recessed at 8:22 p.m.

___________________________________

Aleisha L. Patchin, City Clerk