The Rock Island City Council met in reconvened session on Saturday, March 1 at 8:00 a.m. in the Personnel Conference Room of Rock Island City Hall. Present were Mayor Mark W. Schwiebert, presiding, and Aldermen David A. Conroy, Dennis E. Pauley, Joy Murphy, and Charles O. Austin III. Staff present included City Manager John C. Phillips, Finance Director Bill Scott, and Assistant to the Finance Director Niki Fallon. Other staff entered the room at various times of the morning pertinent to their presentations. Alderman Terry M.A. Brooks I arrived at 8:31 a.m., Alderman Stephen L. Tollenaer arrived at 9:19 a.m. and Alderwoman Margie Mejia-Caraballo arrived at 8:09 a.m.

FOLLOW UP TO FEBRUARY 23^rd MEETING

Finance Director Bill Scott opened the discussion by stating that the Public Hearing on the budget would be moved to Monday, March 10, 2008 due to being unable to get the notice published. The Budget Hearing was originally scheduled for Monday, March 3, 2008. Mr. Scott offered that the amended tax levy would also be adopted on Monday, March 10, 2008; and the budget would be adopted on Monday, March 17, 2008.

Mr. Scott then distributed handouts regarding questions that were brought up by Council on Contingency and Depreciation at the February 23, 2008 Budget Session. Mr. Scott stated that the only change was the addition of Contingency in the Enterprise Fund.

PARKS & RECREATION

Parks and Recreation Department Director Bill Nelson presented the Parks and Recreation fiscal year 2008-2009 budget to Council. Mr. Nelson introduced staff, which included; John Gripp, Tom Hergert, Dick Ewald and Bill Fetty. Mr. Nelson also introduced Park Board members Fred Dasso, Ann Austin, Carolyn Ross, Pete Nyman and Alderman Dave Conroy.

Mr. Nelson stated that there was a small increase in Staffing (fte) in Parks. Mr. Nelson offered that there were additional baskets and planters put in the Downtown area. Also, landscaping was done at 7^th Avenue and 11^th Street and at the 44th Street entry area. It was noted that other increases were due to the extended Lights for Learning Program at the schools.

Mr. Nelson pointed out that the overall contributing factors that continue to affect the budget include; a rapid increase in part-time and seasonal minimum wage, which has resulted in an increase of the budget by approximately $237,000.00 in the past three years. Also, the rapid increase of gas prices and the slowdown of the economy has affected the consumers of Park services. Mr. Nelson offered that the department has combated these issues by increasing fees and aggressive marketing of the facility. As a result, the department has seen a decrease in attendance at the facility. Mr. Nelson stated that the end result is a flat income of fees and charges this fiscal year.

Mr. Nelson stated that the Total Budget is listed at $7,050,566.00 with $853,000.00 in Capital. There is $112,000.00 in Debt Service; $216,000.00 in transfers to the General Fund; and $620,000.00 in Contingency. Mr. Nelson indicated that the revenue side of the budget is $5,732,000.00 with 1.7 million dollars coming from property tax. It was noted that the rest of the funding comes from projects carried over from last year and reserves from the Park and Recreation budget or expenditures from programs.

Mr. Nelson discussed the administrative side of the budget, stating that the department has a per capita value of $179.00 with a per capita property tax of $42.47, which translates into 30% coming from the property tax and 70% coming from fees and charges.

In the Park Maintenance area, Mr. Nelson commented that the primary budget changes are increases in the landscape and TIF areas, and landscape improvements in the Downtown. Mr. Nelson stated that the budget includes the replacement of a playground at Hasselroth Park; the sealing of the drives and lots at Hauberg, Lincoln, Sunset and Longview; and funds to resurface the courts at Lincoln Park. Hauber Ballfield will receive a new parking lot. Mr. Nelson stated that Parks has a new sub account of $23,000.00 for small engine and mowing repairs that are made by the Park and Recreation Department for Public Works and other departments. Mr. Nelson offered that the funds are reimbursed upon completion of repairs that the department does for other departments. Mr. Nelson noted that there is a transfer of $33,000.00 to the General Fund for the sealing of parking lots and service roads in the parks. Mr. Nelson also commented that the increase of 86% in the Services area reflects the repair and fuel of the Parks vehicles that has been moved into the Public Works area.

Mr. Nelson then discussed Recreation Programs in which the budget is divided into five divisions that include; general recreation, Hauberg Civic Center, Sports Complex, Summer Day Camp and school site programs. Mr. Nelson stated that overall; the programs have been fairly full with a small decrease in program offerings. Mr. Nelson stated that the Ball Park Task Force is recommending a complete rebuild of Douglas Park, and the addition of a new ball field in the Douglas Park or Old Chicago neighborhoods. Mr. Nelson pointed out that on the immediate horizon is the addition of the Sylvan Slough Natural Park and Armory Park.

Mr. Nelson offered that White Water Junction saw a small decrease in attendance this past year. The rates were raised to $7.00. Included in the budget is an expenditure for a parking area and an addition of a water feature increase of 0.25 fte, which is a transfer from RIFAC to the pool.

Mr. Nelson then discussed Highland Springs Golf Course, Saukie Golf Course and the Golf Pro Shop. Mr. Nelson noted that pass sales have dropped slightly as pass holders have dropped their cards if they were not getting value. It was noted that all of the area courses have experienced a drop in play over the past few years. Rounds have also slipped at Highland and Saukie due to increased gas prices. Mr. Nelson commented that this year, Saukie's end to end cart path was completed. Also, the sale of alcohol at the course has improved concession sales. Mr. Nelson offered that the Golf Pro Shop provides basic needs; and club fitting and special orders continue to be a basic service. The Pro Shop also provides demo days and some special events.

Mr. Nelson stated that there has been some repositioning of membership at RIFAC. Recreation programs remain strong. The primary growth is expected in recreational and sports programming. Mr. Nelson offered that the budget includes the replacement of the roof over the men’s locker room. Also, the replacement funds were increased to $30,000.00 for exercise equipment.

Mayor Schwiebert inquired as to how the fitness center is holding up in terms of membership and competition. Mr. Nelson responded that the fitness center is holding up very well and is competitive in pricing.

PUBLIC WORKS

Public Works Director Bob Hawes accompanied by Assistant Director Tim Ridder and Office Manager/Parking Administrator Michelle Martin presented the department’s budget. Mr. Hawes distributed a brief outline of the Public Works budget and discussed the information on the handout. Mr. Hawes explained that in the area of Staffing, the level for the department is 116 full-time positions, which will remain the same for the proposed fiscal year 2008-2009. Mr. Hawes commented that the seasonal/part-time workforce will be increased from 29 to 31 workers; and the total number of hours will be increased from 11.06 fte to 12.54 fte.

Mr. Hawes highlighted several operational changes that are reflected in the budget. Mr. Hawes indicated that the department will begin a three-year program replacing old, deteriorated street name signs with a new style (green in color), which is reflected in Street Maintenance and Repair with a cost of $14,750.00 for materials. The department will install wayfinding signs, which include material costs of $8,500.00. Mr. Hawes noted that the department will implement a curbside recycling program in late April. It was noted that the carts are in route; the discount coupons are being printed; and the contract has been signed with Midland-Davis. Mr. Hawes stated that in April, the department will partner with the Rock Island County Soil and Water Conservation District to implement the Rock Island Drainage Assistance Program to assist property owners to resolve creek and ravine erosion problems. It was indicated that the Catchbasin Cleaning Program Enhancement will be enhanced by the addition of two seasonal workers. Mr. Hawes stated that the last operational change is the Sears Powerhouse Acquisition and Expansion. Mr. Hawes offered that significant progress has been made; the engineering agreement is done; the environmental concerns have been resolved; the IDNR lease draft is done; the CREBS authorization is completed; and the formal transfer of the powerhouse will be tentatively scheduled for the latter part of May.

Mr. Hawes stated that in the area of Fleet Services, the fiscal year 2009 budget reflects an increase in fuel costs of 38%. The budget assumes a 25% increase for water treatment chemicals for the Water Treatment Plant. In the area of Refuse and Yardwaste Collection, the budget projects a 22% increase in tipping fees and a 30% increase in fleet costs. Mr. Hawes indicated that in the area of Water Distribution, fiscal year 2009 allocation for overtime, street cut repairs and emergency repairs by contractors is $112,000.00 higher than the current year.

Mr. Hawes discussed the Long Term Control Plan stating that the design of the Mill Street Sewage Treatment Expansion continues with construction to begin in June, 2010.

Mr. Hawes offered that the Rain Gardens for Rock Island Program has become so popular that the $50,000.00 proposed for fiscal year 2008-2009 has already been committed. New applicants are being placed on a waiting list for the fiscal year 2009-2010 funds.

Mr. Hawes then discussed Sunset Marina, stating that the marina business continues to be a challenge due to the economy, high fuel prices and water depth. The harbor entrance and some of the fairways will be dredged in early 2008 with financial assistance ($98,000.00) from the US Army Corp of Engineers. Mr. Hawes also offered that there is a need to replace the 400 Dock; and the Long Term Planning Subcommittee will be working on this issue in the next several months.

Mr. Hawes discussed Green Initiatives. Various initiatives discussed included; KJWW reviewing the feasibility of converting the City Hall heating system from natural gas; proposal for KJWW to review the feasibility of converting the light fixtures in City Hall and the fire stations to more energy efficient models; review of providing an alternative

method of leaf disposal and eliminate leaf burning; and review the feasibility of using hybrid systems for the energy needs of City facilities.

Mayor Schwiebert stated that there has been some discussion at the Federal level regarding block grant funding in regards to the Rain Garden program. Mayor Schwiebert inquired as to whether the department was monitoring that, and would it be a source of funding. Mr. Ridder responded that they do not have all the rules out yet as to what it will apply to.

Mayor Schwiebert inquired to Mr. Hawes in regards to cooperating with the Parks Department on vehicle maintenance, as to how vehicle maintenance prices are handled.

Mr. Hawes responded that the department bills everything it can on an industry flat rate. Mr. Hawes offered that the private garage rate average is $78.11 an hour, and the fleet service charge is $42.00 an hour. More discussion followed regarding vehicle maintenance rates.

Mayor Schwiebert concluded by inquiring upon Mr. Hawes to look into increasing rates in terms of vehicle maintenance. Mayor Schwiebert stated that the City could still be performing a service to other governmental bodies and not for profit organizations and at the same time generate additional revenue for the City.

FIRE

Fire Chief Doug Vroman and Captain (Special Operations Coordinator) Bob Graff presented the Fire Department's 2008-2009 budget.

Chief Vroman explained that there was one change in the goals and objectives for the Fire Department. Chief Vroman pointed out that the objective and goal states that the Fire Department will continue cooperative planning, training and exercise the area disaster response plans, while incorporating the concepts mandated by the National Incident Management System (NIMS). Chief Vroman indicated that this region bought into this training; and this class is delivered locally. Chief Vroman stated that he is very impressed on how this corner of the State is responding to this in terms of participation.

Chief Vroman indicated that Staffing levels are projected to remain unchanged. It was noted that one position is down due to an exhausted eligibility list. Chief Vroman offered that a new list was created earlier than expected. Currently, there are three new hires, and the department is projecting severance for four individuals that are retiring.

Chief Vroman stated that in the area of Overtime, the department is slightly over its budgeted amount this current year due to the contract settlement and Kelly days. The Chief explained that the Kelly days allow for time off, but decreases the annual hours at work.

It was noted that revenues for Ambulance Billing is expected to be close to last year's budget. Chief Vroman indicated that it was unfortunate that it hasn't moved to keep up with the current market. The Chief stated that the impact on revenues will be negligible due to the fixed payment on Medicaid/Medicare.

Discussion followed regarding increasing fees on ambulance services for emergency response. Captain (Special Operations Coordinator) Graff indicated that an analysis was done comparing several cities and rates. It was noted that it doesn't matter how much a charge would be due to this issue being federally controlled. Captain Graff also stated that it is the contention of the Rock Island Fire Department to provide emergency service to all citizens of Rock Island.

Chief Vroman indicated that false alarm fees continue to decrease. Chief Vroman also stated that there was a significant program change in the EMS Coordinator position. The department added the position of Special Operations Coordinator to the Administration budget. This Captain's position replaces the former EMS Coordinator. The change reflects the additional administrative duties required to manage and coordinate the increased capabilities of the Technical Rescue and Hazardous Material Response Teams.

Captain (Special Operations Coordinator) Graff stated that MABAS 43 has assumed a leadership role in the State of Illinois Emergency Response Plan representing Western Illinois and Eastern Iowa.

Mayor Schwiebert and Council inquired as to what types of programs the Fire Department has in regards to the anticipated range of hazards that may require emergency response. Captain (Special Operations Coordinator) Graff stated that they are working with the FBI and attorneys on various programs including pre-planning incidents and running drills.

Chief Vroman offered that in this current budget year, the Fire Department replaced the roof at Central House and replaced all the overhead doors. The Chief stated that in next year's budget, the Supplies category represents an increase of 220%, which is due to the planned installation of natural gas generators for Stations two (2), three (3) and four (4). Chief Vroman noted that this will provide emergency power for extended power outages such as ice storms. Chief Vroman offered that the decrease in the Services budget is due to the completion of capital projects from last year's budget.

More discussion followed surrounding the Explorer Program and strategies for recruitment. After discussion, Mayor Schwiebert stated the City has a valued culture of professionalism in the Fire Department as well as other City Departments.

CITY CLERK

Niki Fallon, Assistant to the Finance Director presented the proposed City Clerk’s budget to Council. Ms. Fallon explained that Personnel costs are down due to the hiring of a new City Clerk at a lower rate. Also, there is a slight increase in supplies due to an increase in the general cost of supplies. Ms. Fallon stated in the last budget, the temporary part-time position was eliminated. This upcoming fiscal year shows an increase of 139% in the Services category due to the budgeting of a temporary part-time employee.

MAYOR-CITY COUNCIL

Niki Fallon, Assistant to the Finance Director presented the 2008-2009 Council's budget. Ms. Fallon stated that there are no major changes for this upcoming fiscal year. Ms. Fallon noted that there is a 4% increase in Personnel due to the increase in health insurance.

GENERAL ADMINISTRATION

Niki Fallon, Assistant to the Finance Director presented the General Administration’s 2008-2009 budget to Council. Ms. Fallon stated that there are no anticipated changes. However, the 2008-2009 budget does reflect a 7% increase in supplies due to general inflationary costs. The decrease in Personnel costs is due to a change in health insurance benefit costs with the hiring of a new Executive Secretary.

Discussion followed regarding the temporary part-time employee in the City Clerk's office. Mayor Schwiebert inquired if there was a reason as to why the temporary part-time employee is not hired as part of the City staff as opposed to going through a temp force.

City Manager Phillips stated that it is due to low risk. Mr. Phillips stated that it would be reviewed.

Mayor Schwiebert stated that if the part-time temporary employee was hired as a part-time employee for the City, It may allow her to feel more like City family.

PERSONNEL

Personnel Director John Thorson and Risk Manger Troy Larson presented the Personnel Department’s budget to Council.

Mr. Thorson reviewed several of the Personnel Department’s major objectives and goals for the upcoming fiscal year, which included; UAW and IAFF negotiations; implementing the new applicant tracking software; and continuing work on the succession planning efforts.

Mr. Thorson commented on health containment strategies stating that there will be a 7.7% increase in premiums for individuals that are on the plan, noting that it looks very positive. Mr. Thorson stated that there will be a change in Medicare for retirees that are receiving the drug benefit off of the health care plan. The amount will increase from $30.00 to $31.50.

Mr. Thorson offered that the City has developed a Smoking Cessation Plan in advance of the Illinois No Smoking Act. Mr. Thorson pointed out as a wellness initiative; the staff is in the process of initiating a new program for health risk assessments. In addition, staff will be developing a program for employees to establish a relationship with a physician.

Mr. Thorson stated that for this coming fiscal year, Staffing levels will remain the same. Overall, the total expense for the Personnel Department is up 8%. Mr. Thorson commented that Supplies has an increase of 81% due to the cost of the applicant tracking software. Mr. Thorson stated that in the area of Personnel Administration, the overall budget is up 7% and Personnel Services has a decrease of 4% attributed to the lower wages earned by the new Office Assistant III.

Mr. Thorson offered that Services, which include health insurance and self insurance (general liability, workers compensation and unemployment) is up 2%. However, health care makes up the biggest bulk of the overall budget increase for the coming year.

Mr. Larson offered that the 2% increase is primarily due to Workers Compensation claims. Mr. Larson commented that the City has experienced an increase in Workers Compensation Partial Permanent Disability (PPD). It was noted that these types of claims are large. Mr. Larson indicated that in the current fiscal year, the City has paid $234, 000.00 in PPD claims. It was noted that most of these claims occurred in the years 1999, 2000 and 2001. Mr. Larson stated that the reason the City pays so many of these PPD claims is due to injuries that result in surgical intervention or loss of function.

Mr. Larson offered that the City has been very successful with Unemployment claims due to proper termination practices and General Liability claims have been controlled.

City Manager John Phillips commented that the Fund Balance is very important and inquired upon Mr. Larson to explain this item to Council.

Mr. Larson then explained that excess insurance rates are a large part of the self insurance budget. There was $320,000.00 paid for excess insurance cases for General Liability and Workers Compensation. Mr. Larson commented that if there is a Workers Compensation accident, the City's risk is the first $400,000.00 per claim. The City's Worker Compensation Insurance rate is $17,000.00. For General Liability, the City has a $100,000.00 deductible for self insured risk retention. After the $100,000.00, the General Liability Insurance kicks in up to four million dollars.

Mr. Larson stated that for property (hurricanes, tornadoes etc.), the City would be responsible for the first $200,000.00 of the property claim. Mr. Larson pointed out that this is the reason the City has excess coverage for catastrophic losses. The City has the Fund Balance that is maintained for five years of operating expenses.

Mr. Thorson then distributed an income and balance sheet statement on the health care fund. Mr. Thorson pointed out that the health fund was in a deficit of $478,336.00 at the end of fiscal year 2005; the debt was erased at the end of fiscal year 2006 due to changes in the benefit structure by the HCPC. Mr. Thorson stated that by the end of fiscal year 2007, the health fund had a surplus of $221,121.00. Mr. Thorson added that the health fund is budgeted for a revenue surplus of $203,160.00 in this current fiscal year. Mr. Thorson concluded that for the upcoming fiscal year 2008-2009, the health fund has a budgeted revenue surplus of $215,869.00. It was noted that if the fund tracks as predicted, it will be approximately $650,000.00 at the end of fiscal year 2008-2009.

GENERAL DISCUSSION

Mayor Schwiebert stated as to whether any Council members had any follow up discussion or thoughts or direction for the staff.

Alderman Austin commented that he felt that everything that was heard today brings value to the citizens.

City Manager John Phillips stated that the list of issues would be reviewed and followed up on including revenue enhancement in the Public Works Department.

Mayor Schwiebert emphasized the level of professionalism and innovation that there is in Rock Island City Hall. Mayor Schwiebert concluded by stating that the City is providing state of the art public services to citizens in Rock Island; and commended all departments for doing a good job with the budget.

RECESS

Following discussion, a motion made by Alderman Brooks and seconded by Alderman Conroy to recess to Monday, March 3 at 5:00 p.m. CARRIED on a Voice vote.

The meeting was recessed at 12:00 p.m.

______________________________

Aleisha L. Patchin, City Clerk