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12-03-2002 ReconvenedCALL TO ORDER: ROLL CALL: MINUTES OF THE RECONVENED MEETING OF THE REGULAR MEETING OF DECEMBER 2, 2002, OF THE CITY COUNCIL OF THE CITY OF DES PLAINES, ILLINOIS HELD IN THE ELEANOR ROHRBACH MEMORIAL COUNCIL CHAMBERS, DES PLAINES CIVIC CENTER, TUESDAY, DECEMBER 3, 2002. The reconvened meeting of the regular meeting of December 2, 2002 AND the Special meeting of December 3, 2002, of the City Council of the City of Des Plaines, Illinois, was called to order by Mayor Anthony W. Arredia at 7:00 p.m. in the Eleanor Rohrbach Memorial Council Chambers, Des Plaines Civic Center on Tuesday, December 3, 2002. Roll call indicated the following Aldermen present: Beauvais, Christiansen, Murphy, Sayad, Brookman, Becker, Smith, Argus. Also present were: City Manager Miller, Assistant City Manager-EDC Director Schneider, Director of Finance Egeberg, Police Chief Ryan, Fire Chief Farinella, Director of Engineering Oakley, Director of Public Works Dusckett, Director of Human Resources & Services Merriman, Director of Emergency Communications Ornberg, and City Attorney Wiltse. FINAL REVIEW/ 2003 BUDGET: MAYOR ARREDIA DECLARED THAT THE CITY COUNCIL WAS NOW RESOLVED INTO A COMMITTEE OF THE WHOLE FINANCE & ADMINISTRATION -Alderman Sayad, Chair Alderman Sayad reviewed the budget process up to this point and asked the Aldermen for their comments. A general discussion followed regarding the proposed budget. City Clerk McAllister left the meeting at 7:51 p.m., after which City Attorney Wiltse took the minutes. Alderman Smith commented that the first two Budget meetings went department by department, but that this isn't being done now. He reviewed the various revenue options and pointed out that all the revenue sought to be raised would be coming from the taxpayers. Alderman Argus stated that her residents wanted her to represent them and they were looking to the Department Heads to help her identify costs to be saved, or positions to be cut. City Manager Miller stated that the problem with identifying percentage of salary increases as it related to a particular department, is that, for example, in Community Development over the course of the year, the 15 positions in the department could change due to various factors; such as leaves, terminations, transfers, and that therefore the 3 .5% wage cap could not be applied to the total department. City Manager Miller stated that he needs a figure from the Council for him to know what cuts the Council is looking for and what figures he should attempt to establish. The Mayor stated that the Council needs to set a property tax increase percentage and Staff could then work on reductions. He also pointed out that an estimated 40% of the motor fuel tax is paid for by non-residents of Des Plaines. Alderman Brookman asked why the Council did not cut off capital expenditures. She noted several categories. City Manager Miller stated that the CIP has no additional contributions for next year and that the other reserve programs mentioned are also not funded in the 2003 Budget. City Manager Miller reminded the Council that 1.25 Million Dollars was 090 FINAL REVIEW (Cont'd.) CITIZEN PARTICIPATION: 12/03/02 PAGE TWO needed to replace rolling stock and would have to be added to the Budget each year for the next 20 years. Alderman Brookman stated that she still wants the matter sent back to Staff for further cuts. Alderman Murphy agreed that Department Heads should make more cuts in the realm of 10%. She is concerned that the gas tax increase would hurt Des Plaines. The 3 .5% cap that she proposed would eliminate bonuses, which, she commented, should be done. Alderman Christiansen stated that the telecom tax would have impact on a taxpayer less, depending on their phone bill size, than the property tax increase would have. Alderman Beauvais again asked how the options should be addressed. She stated that decisions needed to be made. Chairman Sayad stated that the street in the 5-year plan coming up next year should be built, putting off for fire truck purchases which would be made up later. The property tax is deductible on state and federal income tax return, Alderman Sayad noted, whereas the telecommunications tax is not. Alderman Sayad stated that he is opposed to a telecommunication tax. Chairman Sayad withdrew his motion. Alderman Murphy asked that Staff be directed to cut 10% in each department. The Motion was seconded by Alderman Argus. Under discussion, Art Zern of 351 Ambleside Drive in Des Plaines stated: let Staff do their job. The taxes have not been raised in several years. Other citizen comments were as follows: Colin Carroll of 7510 Corbell, Gurnee, had a question for the Alderman from himself and from his mother. His mother's question was: before the 2.5% tax increase last year, how long had it been in the past that the taxes were increased? Aldermen answered that it had been eight years. Mr. Carroll then stated that a tax increase of 10% would mean only $51.00 higher on a $3,000 tax bill. As President of the Fire Fighter's Association, he also spoke to the issue of tax increases. He stated that Alderman Argus' point with regards to the 3 .5% increase, that there are five steps for firefighters, and if firefighters became paramedics, they would have a raise also. These steps and classification changes would affect the department's salaries percentage increase as shown in the Budget. Paul Seletnek of 320 Oxford Road in Des Plaines stated that he would prefer that the tax be on a property tax. He doesn't see any long-term plan or vision for the future from the Aldermen. Jerry McCluske, of 290 Amherst in Des Plaines, said he was speaking as a citizen and as a comptroller of a small, private entity. He stated that tax hikes would be reduced when revenue streams increase. He stated that the number of years a tax increase would be in effect should be limited. Chairman Sayad stated that we have to prove to Moodies that our Budget is sound and that 10% of the Budget must, by law, be held in the Reserve Fund. He also stated that the casino is a possibility, but that it is 18 months out at the earliest. Alderman Becker commented that he disagreed with the one c1t1zen speaker, and stated that the City is planning ahead. He noted that the new hotel that had been approved and new TIF Districts are being worked on. He stated that the City is planning. An exchange of goals and planning occurred between Alderman Becker and Mr. Seletnek with comments interjected by Alderman Sayad. Barry Collins, whose office is at 733 Lee Street in Des Plaines, addressed the Council regarding impact fees. He stated that impact fees are difficult to use to get funds into the General Fund. Impact fees at a set percentage do not meet the requirements of assessing what a new project would have to have to be built as a result of new development, in his opinion. Impact fees in lieu of other fees would be a net benefit for a developer. 2 091 ====,-.-----------------------------------------~~~~~~~~~~~~~~~~~~~ ~--~ CITIZEN PARTICIPATION: (Cont'd.) 12/03/02 PAGE THREE Colin Carroll again addressed the Alderman, and stated that a new 50-unit condo building will have impact on the City by increased calls for service at that address. The Mayor was recognized and stated that when money was available, extra streets, sidewalks and other projects were done in various wards. Alderman Beauvais stated that many new programs and services have been implemented without increasing the number of City employees. City Manager Miller stated that 1.5 Million Dollars was being saved based on extending the time of vehicle use. The Computer Fund was only at $103,000. Alderman Beauvais stated that categories were not funded this year to the tune of $1,000,000, according to the City Manager. The motion regarding the 10% cut to be directed to Staff was withdrawn, with the second agreeing. Alderman Murphy then moved that a 10% reduction be made by the Staff, where the Staff deemed fit. Alderman Brookman seconded the motion. After discussion, the matter was on a 4-4 vote and therefore the motion failed. The Chairman then moved for a five- minute break and seconded by Alderman Brookman. The motion failed on a 3-5 vote. Chairman Sayad then moved, and Alderman Becker Seconded, to only look at source of revenue increases and that the Staff should be contacted for their further input on the budgeting issues. After discussion, the motion was withdrawn and Alderman Becker concurred on the withdrawn motion. The motion was then made to set the property tax increase at 7.5%, by Becker, with Sayad seconding. A substitute motion by Murphy and seconded by Argus was that the levy should be at 4.75%. After discussion, the motion was defeated by a vote of 3 in the affirmative, and 5 in the negative. On the main motion for the property tax increase at 7 .5%, the motion lost 1-7 with Sayad voting in favor of the 7 .5% increase. On the question of the impact fee changes as recommended by Staff on a motion by Chairman Sayad, seconded by Becker. Concerns were raised by the City Attorney and the City Manager regarding the impact fees as proposed. On a 4-4 vote, the motion failed. It was moved by Christiansen, seconded by Beauvais, to increase the liquor license fees by 25%. There was no discussion and the matter was approved on a 6-2 vote with Aldermen Argus and Smith voting against the mcrease. On a motion by Beauvais, seconded by Becker for an increase of 25% in tickets and fines. After no discussion, there was a vote of 6-2 and passed with Aldermen Brookman and Smith voting no. On a motion to increase the motor fuel tax by one cent from 1 % to 2% made by Becker and seconded by Murphy, and to place the 2% electrical utility funds from the CIP to the General Fund was passed on a vote of 5-3, the three votes against were Murphy, Brookman, and Smith. On a motion by Sayad, seconded by Brookman, there was a one-time CIP transfer of $1.4 7 5 Million which was then explained by Finance Director Jim Egeberg. Alderman Beauvais made a substitute motion to reduce that amount to $500,000, which was seconded by Smith. After discussion, the motion was withdrawn by Beauvais, but the second did not agree. The vote then was 2-6 with the motion failing with Smith and Beauvais voting in the affirmative. There was then a motion by Beauvais, seconded by Murphy to transfer $500,000 from the CIP to the General Fund. There was a call on the question for the motion, 5-3 with Smith, Murphy and Beauvais voting against. On the motion for the $1.475 Million CIP transfer, it passed by a 3 092 CITIZEN PARTICIPATION: (Cont'd.) 12/03/02 PAGE FOUR motion of 5-3, with Beauvais, Murphy and Smith voting against. On the motion to reallocate the grant figure of$150,000 on two projects in the First Ward back to the General Fund, the motion was passed by a vote of 8-0. On the question of the telecom tax, Smith made a motion to approve at 4%, but it died for a lack of second. There was a motion by Sayad, seconded by Smith to set the property tax rate at 7 .5%. Christiansen made a substitute motion for 1 % telecom tax which died for a lack of second. On the vote regarding the main motion of the 7 .5% property tax increase, the matter tied at 4-4, with Argus, Smith, Brookman and Murphy voting no. On a motion by Smith, seconded by Argus for a 4.75% tax increase in the property tax levy, Jim Egeberg stated that $650,000 would be generated by that increase. Becker made the substitute motion that beginning in the year 2004, there be a 2% telecommunications tax, second was made by Christiansen. City Manager Miller questioned the legality. Jim Egeberg stated that it was legal because it had to be filed with the Illinois Department of Revenue to be effective, and could be filed effective 2004. A discussion ensued on the motion. Alderman Christiansen called the question and Murphy seconded, and in a 4-4 vote, with Beauvais, Sayad, Brookman, and Argus voting no, the motion to call the question failed. Returning to the main motion, the Ayes were 3, Christiansen, Becker, and Smith, and the Nays were in the majority (5) and the motion failed. Brookman moved a substitute motion for a 1 % telecommunications tax effective June 1, 2003 and was seconded by Christiansen. On the vote, the Ayes were Brookman, Smith, and Christiansen, with the remammg Aldermen voting no, and the motion failed on a motion of 3-5. On the main motion for a 4.75% increase in the property tax levy, the increase was approved by a vote of 5-3 with Beauvais, Sayad and Becker voting negative. On the appropriation ordinance, Brookman moved to have an Executive Session for personnel which died for a lack of second. Brookman stated that she disagreed with some specific additional personnel cuts and asked that how could this be discussed if the Council did not go into Executive Session. Chairman Sayad responded that the Executive Session for personnel would be needed on the December 16, 2002 meeting. Jim Egeberg was asked whether the Budget needed to be adopted in 2002 and stated that he needed an opinion from the City Attorney. City Attorney Wiltse indicated that the levy had to be filed by December 31, 2002 but that the Budget could be approved in the first quarter of 2003. Alderman Beauvais asked for a leave of the body to allow her to reconsider her vote on M-91-02, and this was unanimously granted. Alderman Beauvais' changed vote resulted in a 4-4 tie, with the Mayor voting Aye to break the tie. M-91-02 would then be placed on Second Reading on December 16, 2002. On a motion by Smith, seconded by Becker, to accept Items 3 and 3a Tank Painting and SCADA on the Consent Agenda in the amount of $990,000. Since the matter was still in Committee, the motion was withdrawn and the second accepted the withdrawal. There was a motion for a five-minute recess which passed on a 5-3 vote with Becker, Sayad, and Beauvais voting no. 4 093 EXECUTIVE SESSION: FINAL REVIEW/ 2003 BUDGET: 12/03/02 PAGE FIVE Moved by Brookman, seconded by Sayad, to go into Executive Session to discuss personnel. Upon roll call, the vote was: AYES: 8-Beauvais, Christiansen, Murphy, Sayad, Brookman, Becker, Smith, Argus NAYS: 0-None ABSENT: 0-None Motion declared carried. The City Council recessed at 10:43 p.m. The City Council reconvened at 11: 13 p.m. Roll call indicated the following aldermen present: Beauvais, Christiansen, Murphy, Sayad, Brookman, Becker, Smith, Argus. MAYOR ARREDIA ASSUMED THE CHAIR AND DECLARED THE CITY COUNCIL BACK IN SESSION There was a motion by Sayad, seconded by Becker, to direct Staff to concur with the recommendations in Executive Session. The motion unanimously carried by voice vote. On Item la, Ordinance M-77-02, the tax levy, the first item on the Consent Agenda from the reconvened meeting, a motion was made by Murphy, second by Argus, for a 4.75% property tax increase. The voice vote was 4 Ayes and 4 Nays. Before the roll was announced, Brookman changed her vote to Nay, so the Nay votes were by Beauvais, Christiansen, Sayad, Brookman and Becker. The motion being defeated, Becker moved for a 7 .5% tax levy increase, second by Alderman Sayad. The vote was 4-4, with the Nays being Argus, Brookman, Smith, and Murphy. The Mayor voted Aye to break the tie and the motion carried. There was then a motion to place on First Reading Ordinance M-78-02 for the 2003 appropriations in the amount of $120,884,046. The City Attorney recommended that the Ordinance be adopted on First Reading with the current dollar amount and then corrected to reflect the changes in Executive Session, and then changed on Second Reading. A motion was made to approve Ordinance M-78-02, place on First Reading by Christiansen, second by Becker. On voice vote there were 3 Ayes, 5 Nays. The motion therefore failed. Alderman Murphy pointed out to the Council that if a member voted for the 7 .5% levy increase, they should also be voting for this appropriation on M-78-02 to place it on First Reading. The Mayor then asked for a re-vote on the appropriation, it failed on a vote of 3 affirmative, 5 negative. Sayad then asked for a leave of the body to change his vote on the 7 .5% appropriation which was M-77-02. Having no unanimous consent, it was moved by Sayad to change his vote, second by Murphy, and approved by a vote of 8-0. Sayad was therefore allowed to change his vote. The 7.5% levy therefore previously adopted in the meeting now lost by a vote of 3-5. There was then a motion by Argus, second by Murphy for a 4.75% property tax increase for Ordinance M-77-02. The motion passed 6-2 with Becker and Beauvais voting against. A motion by Murphy, and seconded by Argus to approve $119,396,000.50 for the 2003 appropriation ordinance and place on First Reading Item 2a, Ordinance M-78-02. Motion was approved on vote of 6-2, with Beauvais and Becker voting against. A motion by Smith, seconded by Becker, to approve issuance of General Obligation Bond Series 2002 in the amount of $990,000 and place Item 3a, Ordinance M-92-02, on First Reading. The vote was 4-4 with the Nays being Beauvais, Brookman, Argus, and Murphy. There being a tie vote, the Mayor broke the tie and voted Aye. 5 094 FINAL REVIEW/ (Cont'd.) ADJOURNMENT: 12/03/02 PAGE SIX To report out of Committee of the Whole, the Acting Clerk asked for leave of the body to only report out the affirmative matters receiving affirmative votes. Since there was no leave granted, a motion to that effect was made by Christiansen, second by Becker, and it was adopted by a vote of 7-1 with Beauvais voting no. The report out of Committee by the Finance Committee Chair, Sayad moved and Becker second, to increase the liquor license fees by 25%. It was approved by a vote of 6-2 with the negative votes being Argus and Smith with the City Attorney to prepare the necessary ordinance. A motion for a 25% increase on tickets and fines, made by Sayad, seconded by Becker, was approved by a vote of 6-2 with the Nays being Brookman and Smith. The City Attorney was to prepare the necessary ordinance. A motion by Sayad, second by Becker, to increase by one cent the motor fuel tax, and for 2% of the electrical utility tax to be deposited to the General Fund. The matter was tied 4-4 with Brookman, Smith, Argus and Murphy voting against. The Mayor voted Aye to approve the one cent motor fuel tax increase and to make the accounting change so that all 3% of the electrical utility tax is deposited to the General Fund. A motion by Sayad, second by Becker, for transfer of $1.475 Million from the CIP Fund to the General Fund was adopted by the Council with a vote of 7-1, with Smith voting no. On a motion by Sayad, second by Becker for $150,000 to be reallocated to the General Fund and was approved by the Council unanimously by a vote of 8-0. There was then a motion by Sayad, second by Becker, for a $0.01 (one cent) motor fuel tax increase. Mr. Egeberg reminded the Council that all 3% of the electrical utility tax will now be deposited to the General Fund as a part of this motion. The matter on vote was tied 4-4 with Brookman, Smith, Argus and Murphy voted against. The Mayor voted Aye to break the tie to approve the one cent motor fuel increase and make the accounting change directing all 3% of the electrical utility tax into the General Fund. On motion by Sayad, second by Brookman, to not advance to Second Reading and adopt Ordinance M-44-02, AN ORDINANCE REPEALING TITLE V, "BUSINESS REGULATIONS" CHAPTER 53, "TELECOMMUNICATIONS INFRASTRUCTURE MAINTENANCE FEE" IN ITS ENTIRETY, AND REPLACING IT WITH TITLE V, "BUSINESS REGULATIONS" CHAPTER 53, "TELECOMMUNICATIONS TAX". Motion declared carried by a vote of 5-3 with Christiansen, Becker and Smith voting no. Moved by Becker, seconded by Murphy, that the reconvened meeting of December 2, 2002 and the Special meeting of December 3, 2002, adjourn. Motion declared carried. Me~~~ Donna McAllister, MMC-CITY CLERK f1;vL r!Z, ~ David R. Wiltse, CITY ATTORNEY APPROVED BY ME THIS \ D ----- 6 095