Loading...
HomeMy WebLinkAbout02/13/2007 COW agenda COMMITTEE OF THE WHOLE AGENDA Meeting Location: Mount Prospect Village Hall 50 South Emerson Street Meeting Date and Time: Tuesday, February 13,2007 7:00 p.m. I. CALL TO ORDER - ROLL CALL Mayor Irvana K. Wilks Trustee Timothy Corcoran Trustee Richard Lohrstorfer Trustee Paul Hoefert Trustee Michaele Skowron Trustee John Korn Trustee Michael Zadel II. ACCEPTANCE OF MINUTES OF NOVEMBER 14,2006 III. CITIZENS TO BE HEARD IV. 2007 CAPITAL IMPROVEMENT PROJECT REVIEW This year the Village will undertake more than $5.3 million worth of various capital projects. The scope of work includes roads, sidewalks, streetscape, sewers, watermains and traffic signal upgrades. As in the past, Public Works will provide an overview of the various upcoming projects. V. TRANSFER OF PRIVATE ACTIVITY BOND VOLUME CAP Each year the Village is allocated private activity bond volume cap that can be used for the benefit of certain qualified private development projects. These projects include construction of apartments for low and moderate-income families or for first-time homebuyer programs. The 2006 allocation in the amount of $4,402,240 was reserved by the Village Board in March 2006. A portion of the cap was sold off to Sterns Brothers for use in a housing project in Washington, Illinois. The Village has received a request from Stern Brothers to transfer the remaining portion our 2006 cap to go towards the Assist Homebuyer Assistance Program. Assist is a program sponsored by communities throughout the state that offers families the opportunity to buy their own home. The homebuyer assistance feature of the Assist program provides families with funds to pay all or most of their closing costs and down payment, enabling families with good credit but little extra capital to buy their first home. Loans through the Assist program have been made in the Village in 2005 and 2006. Staff recommends that the Village formally transfer the remaining amount of volume cap for the benefit of the Assist program. Staff will make a presentation on the Assist program and will be on hand to answer questions and facilitate discussion. NOTE: ANY INDIVIDUAL WHO WOULD LIKE TO A TTEND THIS MEETING BUT BECAUSE OF A DISABILITY NEEDS SOME ACCOMMODA TlON TO PARTICIPA TE, SHOULD CONTACT THE VILLAGE MANAGER'S OFFICE AT 50 SOUTH EMERSON, MOUNT PROSPECT, ILLINOIS 60056, 847/392-6000, EXTENSION 5327, TDD #847/392-6064. VI. RECOMMENDATION FOR WORKER'S COMPENSATION THIRD PARTY ADMINISTRATIVE SERVICES The Village is self-insured in its worker's compensation program. To assist in the administration of claims the Village has contracted out the service to a third-party administrator (TPA). Since January 1, 1998, the Village has utilized Cambridge (Martin Boyer) to handle the administration of all worker's compensation claims. It has been almost ten years since the Village has requested proposals from firms to provide this service. A survey of neighboring communities was done to see what TPA's were active in the municipal market. From that survey we invited three firms to submit proposals for providing claims administration service. Each of the firms were invited for an interview where they were evaluated on several factors including relevant experience, staff size and claims load, utilization of technology and general philosophy in handling claims. The firms were also asked to provide a quote for services. Firms were rated based on their responses to the questions in the interview and an understanding of the workers' compensation arena. The search narrowed down the choices to a single firm at which time a site visit was made to view their operations. It is anticipated that the change to a new claims administrator would go into effect on March 1,2007. Staff will be on hand to present the results of the search process and to answer questions and facilitate discussion. VII. ACTUARIAL REVIEW OF VILLAGE'S SELF-INSURED PROGRAM FOR AUTO AND GENERAL LIABILITY Prior to 2005, the Village utilized a multi-tier approach of self-insurance, commercial insurance and pooled coverage to insure for auto and general liability claims. At the request of the Village Board, an actuarial firm (Milliman Consultants and Actuaries) was hired in 2004 to prepare an analysis of the self-insured program. The request by the Board to perform the actuary analysis was prompted by difficulties incurred in managing the Village's risk management program. Based upon the results of the analysis and a recommendation from Mike Nugent, the Village's insurance consultant, the Village increased its self insured retention to $2,000,000 in lieu of purchasing commercial insurance. A recommended reserve level of $1 ,385,000 was established. At that time, the Village had $439,000 in reserve for auto and general liability claims. Future budgets of the Risk Management Fund were prepared to allow monies to be set aside over a period of several years to meet the recommended reserve level. A follow-up actuary analysis was prepared for 2006 to calculate the reserve level based on claims experience since the last analysis and to determine progress in meeting the original recommended reserve amount. Milliman Consultants and Actuaries were again hired to perform the analysis for the Village. Direction from the Board regarding establishing a policy for reserve levels in the Risk Management Fund is needed. Staff will make a presentation on the Village's self-insurance program and will be on hand to answer questions and facilitate discussion. VIII. REVIEW OF CHAPTER 8 ARTICLE 8 OF THE VILLAGE CODE FOR REAL ESTATE TRANSFER TAX At the January 16, 2007 Village Board meeting an amendment to the Village Code relating to the application for rebate of the real estate transfer tax was presented to the Board for approval. During discussion of this item, additional questions were raised regarding the period allowed to apply for the rebate. At the direction of the Board, staff was asked to further research the matter and bring it back for discussion at a later date. In addition to a review of the two-year period for applying for a rebate, staff also looked into how consideration or the value of the transfer was being determined. The provision that permitted the two-year grace period for qualifying for the rebate was adopted on February 20, 1996 and can be found in Section 8.804 (A) (2) of the Village Code. Previous to this change, the grace period was one year. The change was made to be consistent with IRS regulations. At that time the IRS permitted a two-year window regarding the reinvestment of capital gains from the sale of a home. Since that time the I RS Code has changed so this regulation is no longer applicable. Staff is recommending that the grace period for becoming eligible for the rebate be changed to one year. We are also recommending a change to subparagraph G to remove the presumption of consideration with respect to real estate transfers pursuant to a divorce decree. About five years ago, we amended our ordinance to expand the definition of consideration so that we might treat virtually every real estate transaction as a taxable event. Subsequent to that amendment, we have interpreted the definition to include intra-family tax planning transfers, parental mortgage forgiveness and court ordered divorce transfers as taxable events. Most real estate transfer tax ordinances do not tax these types of transactions. In consultation with the Village Attorney, it appears that, except for the divorce decree language, we can simply adopt an administrative policy that narrows our interpretation of consideration to be consistent with the state law on real estate transfers. In addition to the attached information, appropriate staff will be on hand to answer questions and facilitate discussion. IX. VILLAGE MANAGER'S REPORT . STATUS X. ANY OTHER BUSINESS XI. ADJOURNMENT CLOSED SESSION PERSONNEL 5 ILCS 120/2 (c) (1). "The appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body, including hearing testimony on a complaint lodged against an employee to determine its validity." 5 ILCS 120/2 (c) (2). "Collective negotiating matters between the public body and its employees or their representatives, or deliberations concerning salary schedules for one or more classes of employees." MAYOR Irvana K. Wilks Mount Prospect TRUSTEES Timothy J. Corcoran Paul Wm. Hoefert A. John Kom Richard M. Lohrstorfer Michaele W. Skowron Michael A. Zadel Phone: (847)392-6000 Fax: (847)392-6022 TDD: (847) 392-6064 VILLAGE MANAGER Michael E. Janonis VILLAGE CLERK M. Lisa Angell Village of Mount Prospect 50 South Emerson Street Mount Prospect, Illinois 60056 o R D E R OF BUS I N E S S SPECIAL MEETING Meeting Location: Mount Prospect Village Hall 50 South Emerson Street Mount Prospect, Illinois 60056 Meeting Date and Time: Tuesday February 13, 2007 6:00 P.M. I. CALL TO ORDER II. ROLL CALL Mayor Irvana K. Wilks Trustee Timothy Corcoran Trustee Richard Lohrstorfer Trustee Paul Hoefert Trustee Michaele Skowron Trustee A. John Korn Trustee Michael Zadel III. CLOSED SESSION LAND ACQUISITION 5 ILCS 120/2 (c) (5) - The purchase or lease of real property for the use of the public body, including meetings held for the purpose of discussing whether a particular parcel should be acquired. IV. ADJOURNMENT ***** ANY INDIVIDUAL WITH A DISABILITY WHO WOULD LIKE TO ATTEND THIS MEETING SHOULD CONTACT THE VILLAGE MANAGER'S OFFICE AT 50 SOUTH EMERSON STREET, 847/392-6000, TOO 847/392-6064.