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HomeMy WebLinkAboutMinutes - 07/18/2016 - Finance and Personnel CommitteeFINANCE &PERSONNEL COMMITTEE MEETING REPORT July 18, 2016, 5:30 PM McHenry Municipal Center In Attendance: Committee Members: Chairman Alderman Wimmer, Alderman Curry and Alderman Condon. Absent: None. Also in Attendance: City Administrator Morefield, Community &Economic Development Director Martin; Finance Director Lynch; and Deputy City Clerk Geraghty. 1. Call to Order: Chairman Wimmer called the meeting to order at 5:30 PM. 2. Public Input: None 3. Motion to approve the March 23, 2016 and Apri14, 2016 Finance and Personnel meeting reports. Alderman Curry made a motion, seconded by Alderman Condon to approve the March 23, 2016 and April 4, 2016 Finance and Personnel Committee meeting reports as presented. All ayes, motion carried. 4. Consideration re ag rding the sale of three -acres of city property located west of Dot Street and south of Route 120, to McHenry Elementary School District 15, and recommendation to forward a proposal to the full City Council for consideration. Chairman Wimmer asked Director Martin to begin the discussion. Director Martin reported the committee is being asked to consider a recommendation to the full City Council to sell three -acres of city property, acquired through an annexation agreement with Meyer Material, to facilitate an economic development project at the northeast corner of Route 120 and Ringwood Road in conjunction with School District 15. The property currently owned by Graham Enterprises was a fuel station and has been vacant for several years. To facilitate the redevelopment of this vacant site as a BP station prototype, an additiona12.76 acres is needed. Director Martin said he attended a District 15 Finance Committee meeting with John Graham, owner of Graham Enterprises, last February and afterwards, he alone met with the Superintendent and Finance Director for District 15 to discuss the proposed development. During the discussion, District 15 stated their need for land to accommodate expansion. At that time, Director Martin suggested to the district that the city might consider selling the District the three -acre parcel obtained through the Meyer Material annexation in exchange for the District selling the additional property needed by Graham Enterprises to facilitate the development. Alderman Curry asked if the city originally purchased the property for salt storage and Director Martin clarified that the city did not purchase the property; it was included in the original annexation agreement and at the time was proposed to be used for salt storage. Alderman Wimmer said he thinks this project makes sense and was pleased this side of town was going to be redeveloped. Alderman Condon added her support for the project. 1 Alderman Condon asked how quickly they anticipate starting the project. Director Martin said if all goes as planned, Mr. Graham will perform an economic analysis of the area. Should the project not move forward, he will still own the property and redevelop at a future date. As there were no further questions from the committee, Chairman Wimmer called for a motion. Alderman Condon made a motion, seconded by Alderman Curry to forward the proposal to the full City Council for consideration. All ayes, motion carried. Consideration of Updated Purchasing Policy and Procedures and recommendation to forward the policy to the full City Council for consideration. Chairman Wimmer asked City Administrator Morefield to begin the discussion. Administrator Morefield reported he was seeking input and recommendations from the committee regarding the proposed updated Purchasing Policy and Procedures as presented. He added the existing policy has been in place for nearly 28 years. The updated policy outlines the required approvals for all purchase commitments and transactions, and defines city personnel by classification who are authorized to initiate purchases at various monetary levels for materials, equipment supplies, and services. The new policy is more effective than the outdated policy the city currently follows. Alderman Curry stated as the new policy reads, there is no difference between a budgeted vs. unbudgeted purchase up to $6,500. City Administrator Morefield said the statement is correct; as an example, an unbudgeted item for $500 would not require the Council's approval. Alderman Curry said he agrees it is tough doing business with the current policy and asked if staff gave any thought to the purchase of more expensive unbudgeted items and that they perhaps approval at the next level of authority should be required? City Administrator said that has always been the intent of the policy and it staff will more clearly defined that point in the policy presented to the full City Council. Alderman Curry stated there is nothing in the new policy that allows for department heads to review all purchases in their department first. City Administrator noted that Directors monitor their own budgets and they know they have the authority to implement their own purchasing procedures within their departments. They all do an excellent job of keeping costs down and monitoring their purchases. Alderman Curry said he noticed the word "or" is replaced by the word "and" in a few of the authorization columns for Mayor and City Administrator. City Administrator Morefield explained the new financial software is not setup for the Mayor to authorize purchases electronically. The person authorizing purchases through the new software is required to log into the financial program and the city does not have a system that would allow a mobile login to the software. Alderman Curry suggested staff be required to provide an explanation if they cannot obtain the required number of quotes. Alderman Condon asked why the level of approval is higher for the Finance Director than the other directors. City Administrator Morefield answered the Finance Director is also appointed as City Treasurer, which carries a higher level of purchasing authority than a department director. Alderman 2 answered she would only be signing off for a purchase requested by someone else— not purchasing at that level. Alderman Condon asked why the $750 purchasing level was selected and not for example $500. City Administrator Morefield said often times purchase have to be authorized quickly so that a repair project is not delayed. An example would be the purchase of asphalt by the street division superintendent. Director Lynch added after research, $750 was selected as the best threshold for the proposed level of authority. As there were no further questions from the committee, Chairman Wimmer called for a motion. Alderman Curry made a motion, seconded by Alderman Condon to authorize staff to bring the updated Purchasing Police and Procedures including the committee's suggested amendments, to the full City Council for consideration. All ayes, motion carried. 5. Other Business • Chairman Wimmer told the committee he had his annual meeting with the auditor who was very complimentary in the manner Finance Director Lynch handles the recording of the city's finances. City Administrator Morefield noted Director Lynch is also a CPA. • Director Lynch informed the Committee that the city is required to perform a single audit on the IEPA loan for wastewater consolidation. 6. Adjournment: Motion by Alderman Condon, seconded by Alderman Curry to adjourn the meeting at 6:01 PM. All ayes, motion carried. Reviewed and approved this 17th day of October 2016. on behalf of Alderman Richard 3