City of Rockford Finance & Personnel Committee met July 24.
Here are the minutes provided by the committee:
I. CALL TO ORDER
| Attendee Name | Organization | Title | Status | Arrived |
| Kevin Frost | City of Rockford | Alderman | Present | |
| Franklin C. Beach | City of Rockford | Alderman | Present | |
| Jonathan Logemann | City of Rockford | Alderman | Absent | |
| Chad Tuneberg | City of Rockford | Alderman | Present | |
| Aprel Prunty | City of Rockford | Alderman | Present |
Mayor McNamara
Council members: T. Durkee, G. Torina, K. Hoffman, B. Rose, I. Barrios, J. Bailey, M. Bonne Staff: T. Cagnoni, C. Hagerty, K. Saunders, S. Capovilla, Police Chief C. Redd, Fire Chief M. Pankow, A. Hammer, S. Hunter, O. Carter, A. Wilkerson, K. Mattson, J. Carter, M. Leatherby, M. Johnson, Patty Rohde
Don Shaw - Lauterbach & Amen LLP
Interested Parties and Media
Invocation
The Invocation was led by Pastor William Martin.
Pledge of Allegiance
Public Speakers
1. Kenn Dickens was not present.
2. Joan Sage spoke about the Comcast Network expansion and provided details. Comcast has surpassed 1,500 miles of network; in the last three years Comcast has invested $1.4 billion in the network.
3. A.W. McCall was not present.
4. Larry Washington voiced his frustration with the operation of the Rockford Mass Transit District (RMTD).
5. John Tac Brantley recited scripture and shared ways he was helping at-risk youth in this community. II. INFORMATION ONLY
A. 2022 Audit Presentation
Director Hagerty introduced Don Shaw of Lauterbach & Amen and Patty Rohde the Accounting Manager who is responsible for managing the audit process. Mr. Shaw directed the council members to page 8. Page 8 is the Certificate of Achievement for Excellence in Financial Reporting for the 2021 budget year. We have applied for the same award for 2022. Page 10 is the Independent Auditors' Report. Page 15 is the Management's Discussion and Analysis section. This section provides a summary of how the year performed. Page 37 provides the ending fund balance in the amount of $171,609,666; $116,000,000 is related to the general fund, which is the main operating fund. The Income Statement is on page 40. The general fund had a net increase of approximately $70,162,485, which is primarily due to the ARPA funding. The Financial Statement begins on page 51. The notes provide further detail of the accounting policies. Page 139 is the start of the Budgetary Information. Mr. Shaw thanked Director Hagerty, Patty Rohde and the entire team for an amazing year.
Director Hagerty stated the $70 million change in the fund balance is a large change, $39 million was ARPA revenue. The $39 million has been budgeted because it has been committed for specific priorities that council has approved. The increase in fund balance is approximately $31 million. We do have a fund balance policy that requires the City to maintain 20% of our operating budget in the general fund emergency expenses. We will be coming back to council with a recommendation on what is done with the surplus fund balance. Ald. Prunty asked the dollar amount of the 20%. Director Hagerty stated it is approximately $40 million over the fund balance policy. Ald. Rose requested the Audit book be available in Spanish. Director Hagerty stated staff would work on posting the audit in Spanish. Ald. Tuneberg asked if the money was invested. Director Hagerty responded that it was invested in money market account and placed with the investment advisor in a short-term portfolio. Ald. Durkee recommended receiving the audit book prior to the meeting.
Mayor McNamara thanked Patty Rohde for her hard work and presented her with a "Challenge Coin". Director Hagerty thanked Patty and commended the team for their efforts.
RESULT: DISCUSSED
B. Fleet Superduty Truck Purchases
On October 24, 2022, City Council approved authorization for the Central Services Manager to execute contracts with dealerships able to secure Ford F250- F550 Superduty trucks outside of the Ford customer vehicle allocation program. Orders have been placed through Lindco Equipment Sales, of Merrillville, Indiana, Rock River Ford, of Rockford, Illinois and Golf Mill Auto Sales, Niles, Illinois for the vehicle purchases. The funding source is Departmental Budgets.
Lindco Equipment Sales $250,098
Rock River Ford $133,892
Golf Mill Auto Sales $ 76,927
Total $460,917
RESULT: DISCUSSED
C. Street lighting and Well Pumping Electric Supply Contract Award Update.
On June 5, Council authorized staff to execute a contract for street lighting and well pumping electric supply for the City. Contracts for street lighting were executed on Thursday, June 15 and for well pumping on Wednesday, June 21.
The contract, for the street lighting electric supply, is a fixed flat rate of 3.785 cents per kWh from July 2023 - July 2024. This is an increase of 45.3%, or approximately $72,711 per year from the current rate of 2.345 cents per kWh. The successful supplier was Constellation, who also had the expiring supply contract. The shorter one-year term was selected due to the current condition of the supply market.
The contract for well pumping electric supply, is a fixed flat rate of 5.570 cents per kWh from December 2023 - December 2026. This is an increase of 23.5%, or approximately $212,570 per year, from the current rate of 4.509 cents per kWh. Horizon Power & Light was selected from seven suppliers solicited as the lowest cost supplier over a three year term.
RESULT: DISCUSSED
D. Change Order: 15th Avenue Improvements to Northern Illinois Service Co., of Rockford, Illinois.
Original amount: $3,959,554.59
Change Order: $ 395,090.39
Amended amount: $4,354,644.98
While excavating and installing new water main, it was discovered that there were varying depths and conditions of concrete base under the roadway surface. After discussions and careful considerations to remaining useful life, it was determined that replacing the concrete base in-kind would prolong the life of the roadway over the newly installed water main. In addition, a couple additional sanitary manholes were found to be in need of replacement/repair for Four Rivers Sanitation Authority (FRSA) that were not anticipated. The funding source is 1% Infrastructure Sales Tax (32%), Water Replacement Improvement Account (WRIA) (60%), and Four Rivers Sanitation Authority (FRSA) (8%).
RESULT: DISCUSSED
E. Notice of Emergency Repairs to the Auburn Road Bridge to Northern Illinois Service Co., of Rockford, Illinois in the amount of $25,021.00.
In May of 2023, the City of Rockford was made aware of erosion along the shoulder near the northwest side of the Auburn Road Bridge. The erosion led to the formation of a sinkhole underneath the western slope wall of the bridge next to the abutment. The emergency repair consisted of regrading the shoulder of Auburn Road just west of the bridge to influence flows away from the slope wall and abutment. The drainage swale on the northwest side of the bridge was also reshaped to influence flows away from the bridge and down into the Kent Creek northbound diversion channel. CLSM (Flowable Fill) was pumped into the void under the slope wall and rip rap was added above the slope wall to mitigate any future erosion that might occur. The funding source is CIP General Fund.
RESULT: DISCUSSED
F. Financial Discussion - June 2023
Director Hagerty reported that year-to-date we are $7.2 million over for major revenues, mainly driven by replacement tax. We are approximately $11 million over for other revenues year-to-date. For expenses, the operating budgets are under budget, largely driven by position vacancies. For the CIP sales tax is offset by motor fuel tax under performance. Packaged liquor tax has dropped, while restaurant tax is 15% over budget. Hotel/Motel tax is 24% over budget year-to date.
RESULT: DISCUSSED
III. COMMITTEE REPORTS
A. 2023-168-CR - Vouchers in the amount of $2,789,497.94.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
IV. RESOLUTIONS
A. 2023-157-R - Contract Extension: Snow Removal - Equipment and Operators to Regional Snow Services, of Schaumburg, Illinois. The award is based on unit pricing for a five (5) year average annual cost of $1,300,000.00. The funding source is Street Department Operating Budget. Staff recommends extending the current contract and original pricing with Regional Snow Services for an additional two (2) years with an optional one-year extension.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Chad Tuneberg, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
B. 2023-158-R - Award of Bid: City-Wide Sidewalk & ADA Repairs Package #2 to Norwest Construction, of South Beloit, Illinois in the amount of $250,901.50. The project is estimated to be completed on August 31, 2023. The funding source is 1% Infrastructure Sales Tax.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
C. 2023-159-R - Award of Bid: City-Wide Street Repairs Group No. 4 - 2023 Alleys to Norwest Construction, of South Beloit, Illinois in the amount of $440,238.50. The project is estimated to be completed by October 13, 2023. The funding source is CIP General Fund 1% Infrastructure Sales Tax.
Ald. Tuneberg thanked staff for this project; it is much needed for the third ward that was hit hard by the tornado.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
D. 2023-160-R - Award of Bid: City-Wide Pavement Markings (Thermo) to Countryman, Inc., of Rockford, Illinois in the amount of $106,487.55. The project is estimated to be completed by September 30, 2023. The funding source is Motor Fuel Tax.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
E. 2023-152-R - Award of Bid: City-Wide Pavement Preservation Microsurfacing 2023 to AC Pavement Striping, of Elgin, Illinois in the amount of $43,675.00. The project is estimated to be completed by September 15, 2023. The funding source is 1% Infrastructure Sales Tax.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/24/2023 5:45 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
F. 2023-153-R - Award of Bid: Brooke Road Improvements to N-TRAK Group, of Loves Park, Illinois in the amount of $1,408,177.35. The project is estimated to be completed by October 13, 2023. The funding source is Community Development Block Grant (CDBG) and 1% Infrastructure Sales Tax.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/24/2023 5:45 PM
MOVER: Aprel Prunty, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
G. 2023-161-R - Award of Bid: Broadway Road Diet to N-TRAK Group, of Loves Park, Illinois in the amount of $808,540.63. The project is estimated to be completed by November 3, 2023. The funding source is Sales Tax, DCEO Director's Grant, Line Item Appropriation (Representative Dave Vella).
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Aprel Prunty, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
H. 2023-162-R - Award of Bid: Northwest Channel Repair Package to DPI Construction, Inc., of Pecatonica, Illinois in the amount of $51,095.51. The project is estimated to be completed by September 15, 2023. The funding source is CIP General Fund.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
I. 2023-163-R - Award of Bid: Bike Plan Striping to Countryman, Inc., of Rockford, Illinois in the amount of $91,934.60. The project is estimated to be completed by October 13, 2023. The funding source is Sales Tax.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/31/2023 5:30 PM
MOVER: Chad Tuneberg, Alderman SECONDER: Aprel Prunty, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
J. 2023-154-R - Award of Non-Competitive Bid: City-Wide Pavement Preservation PressurePave to Donelson Construction Company, LLC, of Clever, Missouri in the amount of $103,500.00. The funding source is 1% Infrastructure Sales Tax.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/24/2023 5:45 PM
MOVER: Franklin C. Beach, Alderman SECONDER: Chad Tuneberg, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
K. 2023-155-R - Acceptance of Illinois Department of Human Services (IDHS) Homeless Prevention Grant Award for additional onset of funds for a total amount of $741,241.00 (original amount was $487,000.00). The grant does not require a cost match. The grant term is from July 1, 2023 to June 30, 2024.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/24/2023 5:45 PM
MOVER: Aprel Prunty, Alderman SECONDER: Franklin C. Beach, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
L. 2023-156-R - Acceptance of Illinois Association of Community Action Agencies (IACAA), Department of Human Services (DHS) Employment Barrier Reduction Pilot Grant in the amount of $171,000. The grant does not require a cost match. The grant is from July 2023 to June 30, 2024. The funds will be used to provide services according to grant specifications.
Ald. Prunty requested more information. Mr. Carter explained that the grant is used for people who are currently receiving SNAP/TANIF/MEDICAID benefits in order to reduce whatever barriers they may have to gain full employment.
| RESULT: APPROVED BY COMMITTEE [UNANIMOUS] Next: 7/24/2023 5:45 PM
MOVER: Aprel Prunty, Alderman SECONDER: Franklin C. Beach, Alderman AYES: Kevin Frost, Franklin C. Beach, Chad Tuneberg, Aprel Prunty ABSENT: Jonathan Logemann |
V. ADJOURNMENT
The meeting was closed at 6:18 PM
https://rockfordcityil.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=2313&Inline=True
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