The Rock Island City Council met in reconvened session on Saturday, March 7, 2009 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, Stephen L. Tollenaer and Charles O. Austin III. Staff present included City Manager John C. Phillips, Finance Director Bill Scott and Budget Coordinator Don Reichert. Other staff entered the room at various times of the morning pertinent to their presentations. Alderman Terry M.A. Brooks I arrived at 8:57 a.m., Alderwoman Margie Mejia-Caraballo arrived at 8:23 a.m. and Alderwoman Joy Murphy arrived at 8:13 a.m.

FOLLOW UP TO FEBRUARY 28^th MEETING

Finance Director Bill Scott distributed two (2) documents regarding Alderwoman Murphy’s question at last week’s budget session concerning the reason for the increase of contributions in donations. Mr. Scott stated that the major difference is that this year, the increase is due to the fundraising for the Martin Luther King Center expansion. It was offset by the reduction of contributions for the 11^th Avenue Reconstruction project. There is a budget adjustment increasing that contribution. Mr. Scott stated that instead of the contribution being $786,000.00, it will be a $224,000.00 increase in the contribution. Mr. Scott stated that the second handout is a list of the pending changes that is for this year’s budget. It was noted that these adjustments will be incorporated into the final Ordinance for adoption. It was also noted that a lot of these adjustments are due to the bond issues for the Armory Park Project.

PARKS & RECREATION

Parks and Recreation Department Director Bill Nelson presented the Parks and Recreation fiscal year 2009-2010 Budget to Council. Mr. Nelson introduced staff, which included; Assistant Director John Gripp, Tom Hergert 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 the Parks and Recreation Department has the responsibility for Parks, Golf, RIFAC, Hauberg Civic Center, Sports Complex, Whitewater Junction and numerous recreational programs that are held at schools, parks and local businesses.

Mr. Nelson offered that there is a small decrease in the total Staffing (fte) in Parks and Recreation. However, there are some increases in part-time Staffing (fte) that reflect on RIFAC due to some increased service hours on Sunday.

Mr. Nelson stated that the greatest impact on revenues has been on Golf due to the economy and weather. Mr. Nelson stated that the unfunded mandate that is affecting Parks is the Virginia Graham Baker Act that pertains to pool drains. The bill was implemented for all hotel and motel pools, apartments, schools and public pools. It was noted that modifications will have to be done at Whitewater Junction prior to the pool’s summer opening. It was noted that the renovations could cost up to $30,000.00 to be in compliance. Mr. Nelson stated that attendance at Whitewater Junction continues to be up as in past years. There was an increase of approximately $5,000.00 over last year at this time in terms of the revenues for the pool. Mr. Nelson offered that RIFAC slowly continues to build memberships.

Mr. Nelson indicated that the Parks and Recreation’s electronic communication with customers has been updated using the website, e-Park and several target marketed newsletters. Mr. Nelson indicated that a new link is the opportunity to ride the water slide at Whitewater Junction without getting wet. Mr. Nelson added that as part of the marketing strategy, coupons are available on-line, in publications and in utility bills.

Mr. Nelson stated that the Total Budget is listed at $18,106,490.00 with $11,723,796.00 in Capital. There is $108,052.00 in Debt Service and $312,896.00 in Transfers to the General Fund; and $581,701.00 in Contingency. Mr. Nelson indicated that the revenue side of the budget is $8,225,794.00 with $1,699,820.00 coming from property tax; 2.5 million dollars from General Obligation Bonds for the RIFAC expansion; and a little over 4 million dollars coming from fees and charges. It was noted that $6,990.000.00 under Capital Improvement is expenses for construction of Armory Park.

Mr. Nelson discussed the Administrative side of the budget, stating that the department has a per capita value of $562.66 with a per capita property tax of $42.50. Mr. Nelson indicated that much of this is due to construction of RIFAC, Whitewater Junction and Armory Park.

In the Park Maintenance area, Mr. Nelson commented there were several projects being carried over to this spring due to the impact of last year’s storms, which includes the micro-paving of parking areas at Hauberg, Lincoln, Sunset and Longview. It was noted that the design is underway for additional parking at Hauberg for the softball field, and Parks continues to improve the landscape areas in several TIF Districts as well as the Downtown. It was noted that the entry areas and medians will be added on 7^th and 18^th Avenue this year and the greenhouse has been updated at Longview Park.

Mr. Nelson offered that in the Recreational area, there has been an increase in participation at the summer camp programs for the past several years. As a result, Parks and Recreation is looking towards options at limiting participation at the camp so that the camps would not be overloaded and short staffed. Mr. Nelson added that the program value per capita is likely to break even for Recreation. Mr. Nelson added that tentatively, youth softball and baseball may be coming back to Douglas Park this year and fishing tournaments will come back again this year at Sunset Park.

Mr. Nelson discussed Whitewater Junction and stated that a new splash play area will be added. This will be intended for children from one (1) to five (5) years old. Mr. Nelson added that the new feature is a spray pad and referred to the handout, which showed the new toy as being a leaky locomotive. It was noted that this project will also include an addition of an overflow lot.

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. It was noted that fees have been increased based on operations. Mr. Nelson offered that all of the area courses have experienced a drop in play over the past few years. Mr. Nelson added that they have aggressively marketed in target publications. Staff is also working with the casino on golf packages. The income for rounds has also slipped at Highland and Saukie due to players purchasing fewer items including hats, shirts and golf balls. As a result, the budget reflects a decrease in revenues and a decrease in expenditures. Mr. Nelson stated that no major maintenance items will be replaced this year with the exception of small tools and hand equipment for operation. It was noted that the Golf Pro Shop continues to bring in revenues over expenditures.

Mr. Nelson stated that the membership at RIFAC continues to stay strong. Overall, membership has slowly increased due to new programs and marketing. Recreation programs remain strong. The significant change is the expansion of the center, which includes; a gym, classrooms, administrative offices, whirlpool and spa and the pool deck.

Discussion followed regarding the expansion of RIFAC, the stimulus package and grants as it relates to the expansion and programming, marketing strategies and memberships as it relates to RIFAC and Whitewater Junction, blueprints for the bike path project on the riverfront, the construction of the Quad City Botanical Center’s Children’s Garden and the Sylvan Slough Natural area as it relates to landscaping issues.

PUBLIC WORKS

Public Works Director Bob Hawes accompanied by Assistant Director 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 has been reduced from 116 full-time positions to 115 positions in which one (1) vacant maintenance worker I position in the street maintenance operation will be eliminated. It was noted that the number of seasonal part-time workers, which is 32 part-time staff will remain the same.

Mr. Hawes highlighted several operational changes that are reflected in the budget. Mr. Hawes indicated that the Free Leaf Collection Program will be expanded to include a spring collection period from April 13^th through May 1^st; free leaf bags will begin on April 6^th; volunteers coordinated by Keep Rock Island Beautiful will provide a leaf bagging service for residents that are not able to bag their own leaves; and the public information program began in Mid-January with distribution of brochures in the utility bills. Mr. Hawes stated that with the negative impacts of the recession, the elimination of the one (1) Maintenance Worker I position will lead to a reduction in tree trimming, concrete street repairs and street sign replacements. Mr. Hawes indicated that three (3) workers from street maintenance operations will be transferred to stormwater system maintenance for ten weeks. The reallocation of these resources includes; the elimination of the fall alley grading program; a reduction in hours available for private lot cleanups, reduced concrete pavement repairs and tree trimming. It was noted that snow will no longer be hauled from the downtown streets to a snow dump site. Mr. Hawes explained that over one million dollars from Gaming revenue and Motor Fuel Tax has been reallocated from the Capital Improvement Program to street maintenance.

Mr. Hawes mentioned that there are 2,275 subscribers to the Water Services Repair Program, which is 16% of water customers; 1,123 customers subscribe to the Sewer Lateral Repair Program, which is 8% of sewer customers; 14% of refuse customers (2,028) subscribe to the Curbside Recycling Program and 413 households, which is 3% of refuse customers subscribe to the Yardwaste Subscription Program.

Mr. Hawes explained that in the area of commodity costs, road salt for the fiscal year 2009 Budget is 4000 tons at $45.00, which is $180,000.00 and for the 2010 Budget is 2,800 tons at $100.00 in which the cost is at $280,000.00. Council discussed the bidding process and storage as it relates to the cost of salt. Mr. Hawes stated that fleet fuel prices are down and the projection for consumption is down. Mr. Hawes stated that by buying the water treatment chemicals on the spot market this year, costs are down $8,000.00.

Mr. Hawes then discussed the Long Term Control Plan. Mr. Hawes offered that the 1^st Avenue Sewer project and the Store/Treat Basin modifications will be completed in fiscal year 2010. It was noted that the design of the Mill Street Sewage Treatment Plant expansion continues. It was noted that due to delays by the USEPA, the tentative construction date is set to start in September of 2011. Mr. Hawes indicated that the Sunset Marina 400 Dock has deteriorated to a point that a major renovation or a complete replacement is needed in the near future. Mr. Hawes stated that staff and the Boater’s Advisory Committee are working through options and a recommendation will come before Council in the next several months. Mr. Hawes also stated that the Dredging of the entrance and fairway at the Marina started in the fall and will be underway again.

Mr. Hawes offered that the use of the Refuse Drop-Off Center has increased dramatically. Some of the increase can be attributed to the extra yard waste drop-offs resulting from the July 21, 2008 windstorm. Mr. Hawes also stated that the quantity of refuse has increased 89% from 1,900 tons in 2007 to 3,600 tons in 2008. It was noted that this caused an additional $24,000.00 in landfill tipping fees and a proportionate increase of in-house resources needed to haul the materials to the landfill. Mr. Hawes indicated that the center operators believe that the increase is due to its inappropriate use by contractors. It was noted that some steps have be taken to limit the centers use to refuse customers or their contractors.

Mr. Hawes stated that the overall projected budget for the Hydropower Plant is still on target. Mr. Hawes offered that the new generators will be shipped in the next few weeks and the turbine rehabilitation will be completed in several months. The reinstallation of the turbines in the power plant may be delayed until summer due to river conditions. After the turbines have been installed, it will take approximately one (1) month to install the generators and bring the new equipment on line.

Mr. Hawes stated that the Public Works Department is pursuing American Recovery and Reinvestment Act Funds (ARRA) for various projects.

Mr. Hawes indicated that Rock Island will possibly receive $877,027.00 in Highway Infrastructure Investment funds, which will be used for the resurfacing of 30^th Street between 31^st Avenue and Blackhawk Road.

Mr. Hawes stated that through the Clean Water State Revolving Loan Fund, staff has submitted the renovations of the Store/Treat Basins. The estimated cost of the project is $415,000.00. Mr. Hawes offered that if the project is approved, 25% of the cost will be a grant and the remaining 75% will be a zero interest 20 year loan.

Mr. Hawes indicated that staff has submitted the replacement of one of the raw water pipelines through the Drinking Water State Revolving Loan Fund. It was noted that if the project is approved, 25% of the cost will be a grant and the remaining 75% will be provided as a zero interest 20 year loan.

Mr. Hawes offered that in the area of the Energy Efficiency and Conservation Block Grant Program, the City is an entitlement city and will receive some funds, but the amount is not known as of yet. Mr. Hawes noted that the funds, when received, could be used for the installation of photovoltaic panels or hybrid power systems on some City buildings and the installation of a methane powered generator at the Mill Street Sewage Treatment Plant.

Mr. Hawes stated that the Corps of Engineers received more than 2 billion dollars in ARRA funds to reduce its maintenance backlog. Staff has contacted the Corps representatives regarding the possibility of using some of the money to resolve the flooding problem at the Southwest Sewage Treatment Plant by resuming Corps maintenance of the Mill Creek South Slough project. It was noted that the initial Corps response has been negative.

Mr. Hawes stated that there is a small amount of funds available regarding the alternative fuel and diesel emissions reduction. It was noted that staff is monitoring the grants as information becomes available.

Council further discussed various Stimulus Package appropriations as it relates to obtaining funds for the City.

FIRE

Fire Chief Doug Vroman, Captain (Special Operations Coordinator) Bob Graff and Fire Marshal Jeff Hindman presented the Fire Department's 2009-2010 Budget.

Chief Vroman explained that the overall expense budget is up 5% over last year’s budget mainly due to a 9% increase in Personnel Services. Chief Vroman indicated that Staffing levels are projected to remain unchanged. Chief Vroman commented that there were three (3) retirements and those positions were filled. It was noted that there are several severance pay figures that are included for several people. Chief Vroman indicated that this is a large ticket item. Chief Vroman explained that in the contract, there is unpaid sick leave, unpaid vacation leave and compensation time, which is all payable when an employee retires. It was noted that sick leave is accumulated throughout an employee’s career and any unused sick leave at time of retirement is paid at half the wage.

Chief Vroman offered that the budget is expected to see an increase in Ambulance billing revenues due to the restructuring of the ambulance fees, which brought the fees up to the current market. Chief Vroman stated that the Fire Department call volume is up from last year.

Council discussed the issue of run volume as it relates to calls regarding fire alarms, which include illegal burns, false alarms, structured fires, car fires etc.

Chief Vroman stated that the Foreign Fire Tax is expected to remain close to the same as last year.

Chief Vroman indicated that the Fire Department continues to enhance special operation capabilities using the Illinois Terrorism Task Force and the State MABAS 43 Division. The Chief stated that Rock Island, Moline, East Moline, Rock Island Arsenal, Bettendorf and the Quad City Airport comprise the regional training center for the Illinois Fire Service Institute. Chief Vroman indicated that more funds would be obtained for Hazardous Material Training, Technical Rescue Training and Confined Space Training. In addition, grant money is utilized to train the team members. Chief Vroman offered that Captain Graff has assumed a leadership role and is the Technical Rescue Leader for MABAS 43.

Council, Fire Chief Vroman and Captain Graff further discussed MABAS 43 as it relates to training, catastrophic events, other types of emergencies and joint training as it relates to area wide emergencies.

Chief Vroman offered that the Lights and Sirens program continues at Rock Island High School. There have been minor changes made in the structure of the program. The Chief indicated that they are trying to work with the Boy Scouts on the Explorer Program. Chief Vroman stated that there has been limited success with the Fire program, which possibly may be due to not committing to the medical training that it is needed to become a Fireman or it could be due to the general expense of the medical training. It was noted that one must be a Paramedic prior to being hired as a Fireman.

Council, Chief Vroman and Fire Marshal Hindman discussed career training in schools and job fairs as it relates to Fire careers; and Captain Graff discussed the amount of training needed in relation to being a Paramedic prior to becoming a Fireman. Also discussed were other strategies regarding recruitment and possible grants concerning the stimulus package.

CITY CLERK

City Clerk Aleisha Patchin presented the proposed City Clerk’s 2009-2010 Budget to Council. Ms. Patchin explained that Personnel costs are up 61% due to moving the Clerical Assistant’s salary and related costs from employment service to part-time personnel. It was offered that in the Supply category, there is a 16% increase in office supplies due to an increase in license paper. Ms. Patchin indicated that the decrease of 72% in the Services category is due to the part-time Clerical Assistant no longer being paid through the employment service.

MAYOR-CITY COUNCIL

City Manager John Phillips presented the 2009-2010 Mayor-Council Budget. Mr. Phillips stated that the main change occurred in December when the budget was reviewed to consider reductions in certain areas. Mr. Phillips offered that business cards and stationary was decreased $50.00 per person and eliminated Representation of $1,100.00 per person. Mr. Phillips noted that there was a total decrease of $8,050.00 from what it was in the past.

GENERAL ADMINISTRATION

City Manager John Phillips presented the General Administration’s 2009-2010 Budget to Council. Mr. Phillips stated that one of the significant changes this year is the allocation of a portion of the City Manager’s salary to the TIF Fund. Mr. Phillips stated that the other change was in the Supply category, which increased due to combining the supplies that were previously budgeted under the Mayor’s budget to one area instead of having the supplies split between both areas. Mr. Phillips indicated that the Other category shows a reduction due to the elimination of the cost of breakfast and lunches with Council members. Mr. Phillips concluded that communication is very important and he would still like to continue meeting with the Council members on a regular basis.

PERSONNEL

Personnel Director John Thorson, Risk Manager Patrick Doherty and Personnel Intern Chris Moore presented the Personnel Department’s 2009-2010 Budget to Council.

Mr. Thorson stated that contract negotiations would be one of the major goals for the upcoming fiscal year which include; Command Officers and FOP with the Police, AFSCME A and AFSCME B and the City is also looking towards a one (1) year contract with the UAW. Another objective Mr. Thorson noted was healthcare cost containment strategies. Mr. Thorson offered that premium rates for employees are only increasing 6.4%. Mr. Thorson stated that this looks very positive. It was also noted that the City is signed up for the Retiree Drug Subsidy Plan again this upcoming year. Mr. Thorson stated that the implementation of the approved On-Site Nursing Program will begin on April 6, 2009. Mr. Thorson added that in regards to the On-Site Nursing Program, some of the wellness initiatives will be implemented.

Discussion followed regarding the On-Site Nursing program as it relates to yearly physicals and the development of wellness initiatives. Further discussion concerned the Healthcare Planning Committee and City representatives for the committee. It was noted that Alderman Conroy suggested taking in consideration that he would prefer not to serve on the Committee. Alderwoman Mejia-Caraballo and Alderwoman Murphy volunteered to serve on the committee.

Mr. Thorson indicated that another objective that is being reviewed under the healthcare containment strategy is the issue of the overall drug plan. It was noted that the cost for prescription drugs is starting to increase. Mr. Thorson stated that looking towards another provider may be a possibility for lowering costs.

Mr. Thorson mentioned other goals and initiatives including the ongoing Cable Franchise Renewal, which expires in September of this year; improving the Public Cable Access Channel; and maintaining the City’s training schedule that Risk Manager Patrick Doherty maintains.

Mr. Thorson offered that in the area of staffing, the Personnel Director’s position and the IT Director’s position is being eliminated and will be combined into one position, which will be the Administrative Services Director.

Mr. Thorson stated that for this coming fiscal year, the overall budget will be up approximately 8%. Mr. Thorson offered that in the area of Services, healthcare is expected to be up $361,000.00, and self insurance will show an increase of $97,000.00 (general liability, workers compensation and unemployment). Mr. Thorson offered that there are no changes in the Personnel costs. However, Supplies will decrease 5% due to less planned paper usage.

Mr. Thorson stated that in the area of Personnel Administration, the fund will decrease 5% and Personnel decreased 5% due to decreases in part-time wages and scheduled overtime costs. Personnel Services has a decrease of 5% attributed to the lower City Attorney costs resulting from the new City Attorney contract in which CORA and MUNICES services will be included in the retainer as compared to direct bill hours. Mr. Thorson added that the Other category will increase 19% due to reference materials used in testing applicants.

Mr. Thorson stated that in the area of Personnel Services, the budget increased 21% due to the addition of an employee to the health insurance plan.

Mr. Thorson discussed the area of insurance. Mr. Thorson offered that the overall budget for insurance is up 9%. Mr. Thorson then referred to the handout that was distributed to Council regarding the Healthcare Fund Balance. Mr. Thorson indicated that at the end of fiscal year 2005, the health fund was in a deficit of $478,336.00 and at the end of fiscal year 2006, the health fund had a surplus of $51,705.00. Mr. Thorson explained that this surplus was attributed to changes in the benefit structure of the HCPC. Mr. Thorson indicated that at the end of fiscal year 2007, the health fund had a surplus of $221,121.00 and at the end of fiscal year 2008, the health fund had a surplus of $422,790.00. Mr. Thorson added that the health fund is budgeted for revenue of $217,190.00 in the current fiscal year ending in March 31, 2009. It was noted that the fund is tracking much better than predicted and the surplus could be higher. Mr. Thorson stated that for the upcoming fiscal year 2009/2010, the health fund has a budgeted revenue surplus of $218,091.00.

Council discussed health care insurance as it relates to premiums and costs compared to the City’s contribution as well as the employee contribution and Workers Compensation as it relates to claims in the area of refuse and leaf collection.

Mr. Doherty offered that he does not see a lot of injuries coming out of the refuse and leaf collection areas. Mr. Doherty added that with the on-site nurse, it will be an added benefit if injuries start to come out of those areas.

Mayor Schwiebert concluded by thanking staff for putting together some excellent presentations and thanked Council for participating in the sessions.

RECESS

A motion was made by Alderwoman Mejia-Caraballo and seconded by Alderman Brooks to recess to Monday, March 9, 2009 at 6:45 p.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 11:11 a.m.

______________________________

Aleisha L. Patchin, City Clerk