Finance Committee Rock Island County Board April 12, 2013

Finance Committee Rock Island County Board April 12, 2013 The Finance Committee of the Rock Island County Board met on Friday, April 12, 2013 in the conference room of the County Board Office. Chairperson Don Jacobs called the meeting to order at 2:00 PM. Committee Members Present: Jacobs, Terry, Camlin, Westpfahl and Ballard Committee Members Absent: Mayberry and Burns Others Present: Banaszek, Palmer, Ewert, McGehee, Bluedorn, Boyd, Marlier, Wilson, Hunter, Hoskins, Heintz, Deaton, Whittington and various representatives in support of and opposing RICL project Motion by Terry, second by Ballard to approve the minutes of the March 15th meeting. Carried, Motion by Westpfahl, second by Ballard to approve adding items 3, Doug Jones - Clean Lines Here to answer any questions Finance Committee has. Question before the County Board in regard to the agreement with RICL is in regard to the voluntary payment that they have offered to make at the rate of $7000 per mile. Whether or not the line is constructed is not a decision for the RICB, but for the Illinois Commerce Commission. They are required by Statute in Iowa to make the payment. In fairness to the Counties in Illinois, the same offer has been made. Camlin asked about the 20 year period and when the payments would be received. Scott Verschoore as part of the IBEW addressed the Committee. He stated that it is a terrific opportunity for them. It allows for the members to go to work and supports the project and looks forward to the opportunity to work on it. It is a big project, $600 million plus and many construction jobs. Great boost to the community and men and women in these communities. Brent Reiwerts - Family farms 1000 acres - it will go thru one of the ten fields that they own. It is the last farm that does not have some type of a line going thru it. It will erect a 200 foot transmission line. There would be no field without an easement - they have dealt with utility companies before

and a long history of the third party contractors who are not great to work with. Wonders why the Board would approve an agreement without ICC regulation. Farm Bureau is against it, Illinois Land Owners Alliance has gained individuals to go to the ICC against it. Illinois Dept of Ag has asked Attorney General to intervene. They want a certain type of pole to be used. Clean Lines is seeking federal approval thru FRET - Federal Regulatory Energy - He feels it is to trump the state if it were denied by the State. Added that RICL is asking for utility status instead of the ability for eminent domain. Majority owner is VAM Ventures LLC. Asking to become a utility but they are not a utility. Transmission line using this will get them around certain consumer protection laws. No one in our County will use their electricity. Regarding the agreement - 2, 5, 15 pay attention to. Feels if County adopts this, they are saying that the County feels it is in the best interest. It can be used at the ICC hearings. Requests that the County stay out of it until it is approved by the ICC. Feels that County has to do about 8 things while RICL only has to give an annual written report and the money. Troubling agreement is no mention of how the land owners are to be treated, what should be expected, some representation of them. Question the placement of the tower and speaks about the possibility of moving it a few feet. Forcing people who are unwilling to give up their property and dodge huge obstacles in their fields. Feel that the company should have to give up more. Questioned the value of the property and the value of the easement. RICL pays 90% of FMV to the landowners. Using RICL value of $8000 per acre, 1/4 mile wide field County will get 80% of what will get for the easement. Seems unethical for County to get nearly what the property owners will get with no condition or strings for the property owners. Land owners are not just trying to get more rights, feel it is fair. Feel there are unanswered questions and many issues. At a minimum, he would like a PH on the matter. State's Attorney s Office has reviewed several times. Motion to send back to PW where it started by Ballard. Chairman Banaszek stated that there have been 22 open, public meetings have been held on this matter since May 9th, 2012. Motion Rescinded. Need to move on, vote it up or down. Motion by Ballard, second by Westpfahl to move to Full Board. Legal Update

Mr. McGehee discussed some issues he has been involved in with the Court as well as an agreement. Drafted an intergovernmental agreement, Lisa Bierman, Judge Jeffrey O'Connor and willing to loan $250,000 from their Automation/Document Fund to be used by the Ad Hoc Committee that has been formed to discuss the building issues. This will be used to complete the studies for the Ad Hoc Committee. Terms are as follows: $250,000 from Court Document Automation Fund, deposit into separate fund to be used only by Ad Hoc Committee. Before disbursements, two signatures of Kim Callaway-Thompson and Brian Vyncke. Interest of 2% per year, will be paid back when there are funds available thru bonding, taxing or other financial mechanism, sale of real estate that the proceeds are to be used for a facility or the GF with payment of that fund to be mutually agreed by all the parties. Must be a resolution to vote on it at the CB Meeting. Court wants it that before disbursements must take signatures of both co-chairs. Bierman felt that if the Co-Chairs could sign the claim then from there would be able to cut the check. Recommendation was made to have another sub-department under the County Board department just for this item, all appropriating into line 631 for expenditure. Motion by Ballard, second by Westpfahl to approve the agreement with the changes as discussed. Carried Agreement with the Sheriff - Intergovernmental Agreement with Cook County - prisoners coming $50 per day. Very extensive agreement, laid out very well. Recommend approval. Sheriff Boyd advised that his department has been working on this for a while and is very happy with the progress. It is on the Cook County Agenda for later in April. They will review our documentation to ensure that it is approved by the Board. The Cook County inmate reimbursements are paid timely and regularly. They are not slow pay like the State of Illinois. His department has been inspected and has passed that process. These are already sentenced individuals. He is cautiously optimistic. McGehee added that there is a termination clause of 30 days notice. Motion by Westpfahl, second by Ballard to approve the Intergovernmental Agreement with Cook County. No workforce issues as a result of this, the swell of inmates will be monitored. All offered services will be reviewed and may benefit as well from the addition. Condition of Funds Ms. Palmer presented the routine monthly reports. (Record) There are very few below the projected amount needed to balance the year. $1,359,476 showing in the General Fund as of today in our accounting

software. Do have a promise from Chief Judge O'Connor and Dave VanLandegen for the state shortfall of $226,721 which is not a loan, but a reimbursement. Small concern with IMRF being able to meet their commitment because there are three payrolls in May and we will not receive the first tax distribution until the end of June. There could be a small shortfall that would come from working cash. Hoskins added that the third payroll will have higher reportable wages because we are not paying health insurance or other deductions. Chairperson Jacobs stated that a resolution should be created for this on an as needed basis. Shortfall for payroll will come first from the MFT Fund #105 as needed. We are waiting on a letter from Springfield approving this as well. Motion by Ballard second by Westpfahl to approve the report. An additional request was presented regarding an intern that she has had on staff at no cost for this semester and 200 hours internship program. She would like to offer her $12 per hour at 19 hour per week to supplement. It will not need an appropriation and should have funds left over in her budget. Motion by Ballard, second by Westpfahl to approve the request to hire. She added that she and Chairperson Jacobs attended a meeting at Augustana in keeping with GFOA recommendations to complete a budget forecasting for perhaps up to 5 years. Interns provided to work on forecasting budget up to 10 hours per week for May and June. Only General Fund and Hope Creek will have the forecasting completed. Motion by Ballard, second by Westpfahl to approve the report. Carried Weekend Only Positions at Hope Creek Motion by Westpfahl to let them try it. No Second. There was no one present to discuss the proposal from Hope Creek Care. Camlin questioned the previous discussions on the proposal and if there were going to be new savings. A review of the notes from July, 2012 indicated that the question was about the additional hours that are paid without working. Motion by Camlin, second by Ballard to table until the corrected numbers are provided and someone from Hope Creek is attendance.

Public Defender Heintz requested permission to hire an intern for his office at $23,833.23 utilizing salary savings within his department. The additional cost will be to the FY 2013-14 budget by about $15,000 if he were to pass the BAR exam and be hired at the starting rate. Ms. Bluedorn thanked the committee for their vote and explained the situation with the additional case load and trials that are ongoing. Motion by Terry, second by Camlin to approve the request. Request to hire a replacement deputy sheriff was then presented by Captain Marlier. (Record) He advised that it is a budgeted position and action was made quickly in order to get the new employee into schooling. Estimated savings of over $21,000. Motion by Ballard, second by Terry to approve the request. Early Retirement Incentive Ms. Hoskins presented the draft report to the committee which included a cost study from IMRF and a comparison of what could be saved with replacement. She worked on the larger group of employees and is still working on the SLEP individuals. She added in the additional cost of insurance for the replacement individual. Retiree would come out of our active plan, but there is still a cost for being on the plan. After reviewing and taking costs into consideration, the savings annually would be $663,019.37. If all 88 employees accepted the ERI it is a cost of nearly $8 million to our IMRF plan. It could be amortized over 10 years and would affect our IMRF rate most likely beginning in 2015. We are still paying off an ERI that was offered in 2003, have about $380,000 to pay off to IMRF before offering another ERI. On the amortization schedule (page 23) is all individuals the cost is shown as nearly $8 million. If paid over 10 years, the cost is $11.5 million. Have to determine the overall effect on the budget. If everyone took the ERI and was replaced, the savings is over $600,000 in one year. We don't know for sure how many would actually take advantage of the ERI. She knows that there are individuals who will not participate, about 40% are interested. Depends on the unique situation for each employee and how insurance will come to play. Chairperson Jacobs feels it is worth continuing to look into. Chairman Banaszek suggested that a firmer number is needed. Hoskins stated that the biggest question from the employees has been what about insurance. Amount employer pays for active employee is different than what is paid for retirees. Retirees are dependent on the number of years.

Don Bush, one of our correctional officers was present. He advised that he has been with the County for 32 years and he encouraged continuation the review of the ERI. Motion by Ballard to table and to obtain more additional firmer numbers. Second by Westpfahl. IMRF Benefit Protection Leave Ms. Hoskins presented a request for an IMRF Benefit Protection Leave. (Record) This individual was off on a work related injury and was off payroll in January, 2005 where he did not accumulate IMRF service credit. Because this has been done in the past, we have to grant this to other employees. This would have been covered under FMLA, and are now required to grant it. Camlin added that the HR Committee talked about putting a time constraint on it that it must be taken care of within 24 months of the occurrence. Hoskins stated that she did ask about that and under IMRF regulations we cannot limit it. It will be encouraged to all employees as the case by occur. Motion by Ballard, second by Westpfahl to approve. Standard & Poor's Rating Report Chairperson Jacobs stated that the bond rating report was provided for the Nursing Home refinancing. Financial policies will be adopted to improve our ratings for a potential future project. Palmer asked if the Augustana Interns needed an approval. Project NOW Grant Application and Illinois Environment Protection Agency Grant Motion by Camlin, second by Ballard. Interfund Borrowing Resolution This is important to ensure that we can make payroll. (Record) It will be on an as needed basis. Motion by Camlin to approve and amend resolution down to $1 million and to remove funds 143 and 144. Before a second could be made, Ewert questions what would happen if couldn't make it. She anticipates will be about $445,000 short for the May 3rd payroll. Discussion on the amount needed - resolution

Special meeting at 445p on Tuesday April 16th. Environmental Protection Grant Motion by Camlin, second by Ballard to approve. FOIA Tracking Motion by Ballard, second by Terry to approve the transfers. Motion by Camlin, Terry seconded to approve the delinquent tax resolution. Motion by Camlin, seconded by Ballard to approve the remainder of the resolutions. The scrap proceeds will go back into the budget/revenue for 001-20. Motion by Ballard, second by Camlin to approve the TD's totaling $1,348,217.56. Motion by Westpfahl, second by Ballard to approve the Claims totaling $1,367,465.56 which includes the additional election judge claims. Motion by Ballard, second by Camlin to approve the resolutions for Sheriff's Grants and State's Attorney Drug Funds. Motion by Ballard, second by Camlin to approve the Bridge Fund resolution. Motion by Terry, second by Ballard to approve the Various Funds resolution. Motion by Ballard, second by Camlin to approve the TBA resolution. Motion by Ballard, second by Camlin to approve the Health Department resolution. CCAO Ms. Deaton presented the routine monthly report. (Record) Motion by Ballard, second by Westpfahl to approve the CCAO Report. Treasurer

Ms. Ewert presented the routine monthly report as well as the supplemental sales tax report. (Record) She questioned the need of the special report for this revenue item. It was determined that the report in the current state is the recommended format. Motion by Ballard, second by Terry to approve the report. Tax bills will be May 6th. June, August, September and November on the 12th. First distribution will be June 24th, however she may move it up a few days to avoid borrowing. Last year, first distribution was about $1.8 million. If there are outstanding loans they will be paid back first. They are waiting for the overlapping districts. Terry asked if there were any updates as to the fine form the IRS we received. Ewert advised that there are no updates, Senator Dick Durbin s Office has taken the liaison position for us. She feels it is in good hands. He asked for a status update next month. She will provide it as soon as received. Motion by Camlin, second by Terry to approve the per diem/mileage report. Weekend Positions Revisit Proposal in the packet regarding weekend positions from last year. Coming to a cross roads at the facility and need to look at all expenses and possibilities. The union has agreed to the proposal and signed off on it. It is a six month trial period. They are simply asking for the opportunity to take open part and full time LPN and CNA positions and add a few hours to make then 3 12 hour shifts and paid for 40 hours. Many hospitals use this same approach. Trying this for up to six months. If see no success or little, it can be disbanded prior to that. She thinks it will show good faith in our bargaining to eliminate agency costs. $844,000 in agency staffing last year was used. She will move money from the agency staffing line item to professional services line item. This will be done first instead of appropriating new money. Part time positions off of all shifts are being combined to make a full time - 3 full time shifts Friday - Saturday - Sunday or Saturday - Sunday - Monday. On these positions, it will be every weekend and will have the days of the week off. Because of the way our positions are negotiated and "slotted", have to eliminate some existing positions and combine them to allow the 12 hour positions. Camlin questioned if the new numbers reflect the 21% issue for the special hours that they are working. The rates are reflective of 2012 information and do not have the updated costs.

Motion by Terry to remove from the table for discussion, second by Westpfahl. Motion by Westpfahl to allow the weekend positions to be tried for up to 6 months. Ballard stated that I am not a believer until I see it. I want to see bottom line results after that second payroll. In the first month, will see how people want to truly participate and make this work. He is willing to try for one month. Ballard would like to have the motion amended to monitor and review after two pay periods. Westpfahl amended his motion. Second by Ballard. Whittington reminded committee that this will not all be in place to report at the May meeting, but she will still come and provide a status update. Motion to go into closed session as per 5 ILCS 120/2(c)(6) Property by Ballard, second by Camlin. Closed Session 428 PM Motion to return to open session by Camlin, second by Ballard. 439 pm Motion by Ballard to authorize the Chairman to negotiate as directed in closed session. Second by Terry. There being nothing further to discuss, the meeting was adjourned at 439 PM. Shelly Chapman