FINANCE COMMITTEE MEETING
Monday, May 21, 2012 – 6:00 p.m.
1. Call to Order & Roll Call.
Committee Members: Chairman Steve Jasinski, Ald. Karen Michalczyk, Sean McDermott, Scott Musillami; Finance Director Steve Drazner
2. Approval of the Minutes: April 23, 2012.
3. Presentation of Monthly Treasurer’s Report for April, 2012.(unaudited full year)
4. Presentation of quarterly investment report for FQE April 30, 2012.
5. Recommendation to approve selecting (TBD) as the electric aggregation vendor and proceed with execution of vendor contract (bidding results to be distributed on 5-21)
6. Other Business
MINUTES OF THE FINANCE COMMITTEE MEETING
CITY OF COUNTRYSIDE – CITY HALL
MAY 21, 2012 – 6:00 P.M. COUNCIL CHAMBER ROOM
1. The meeting called to order at 6:00 P.M. Present: Chairman Steven Jasinski, Alderman Karen Michalczyk, Alderman Sean McDermott, Alderman Scott Musillami.
Also present: Mayor Ed Krzeminski; Alderman Bob Pondelicek, Alderman John Von Drasek; City Administrator Gail Paul; Finance Director Steven Drazner; Resident Pat Schwartz.
APPROVAL OF MINUTES
2. The minutes of April 23, 2012 were approved as submitted.
PRESENTATION OF MONTHLY TREASURER’S REPORT FOR APRIL 2012
3. Fin. Dir. Drazner summarized the monthly Treasurer’s Report for April 2012. While the report covers the entire fiscal year, invoices continue to come in that will be expensed and charged to FY12. Most of the grant expenditures were deferred and re-budgeted in FY13. There was also savings in the Police Pension Contribution, Street Resurfacing and Infrastructure Improvements creating a projected expenditure savings of about $1.6 million. It was reported that no funds are expected to go over budget for FY12.
PRESENTATION OF QUARTERLY INVESTMENT REPORT FOR FQE APRIL 30, 2012
4. Fin. Dir. Drazner reported the City’s last CD for $500,000 matured on 4/12/12 and was transferred into the main MB Operating account which earns a sweep rate of .40%. Currently the only CD rates offered which exceed this rate are 18 to 24 month CD’s. As additional tax revenues are deposited into the Illinois Funds account, those funds will continue to be transferred from Illinois Funds to either IMET or MB Financial, both of which offer higher interest rates.
Staff recommended not purchasing CD’s with a maturity date over one year so as not to tie up funds and also based on the assumption that rates may gradually begin to increase so it is best not to lock in a very low rate. . The Committee members’ concurred.
RECOMMENDATION TO APPROVE SELECTING (TBD) AS THE ELECTRIC AGGREGATION VENDOR AND PROCEED WITH EXECUTION OF VENDING CONTRACT
5. Fin. Dir. Drazner explained five bids for electric aggregation were received today; Direct, First Energy, MC Squared, Constellation and Nordic. Staff recommended executing a two-year contract with First Energy at a rate of 4.75 cents per kilowatt hour. Currently Com Ed is charging 8.50 cents per kilowatt hour. Since approximately thirty percent of an electric bill is for the delivery charge which will not change, it is expected that an average electric bill should be lowered by about 32% for the first year. There will be an early termination fee of $25 for those who participate in the aggregation program but terminate prior to the end of the two year term. This will not apply to those who relocate outside Countryside. In addition, First Energy offers a price guarantee should the Com Ed rate should fall below the First Energy rate, First Energy will either match the lower rate or allow customers to go back to Com Ed without incurring any penalty.
Mayor Krzeminski recommended using the reverse 911 system to ensure all residents are aware of the program and their questions answered. Fin. Dir. Drazner informed the committee that the City only has 24-hours to sign the contract since commodity prices change daily or it has to be re-bid. Finance Director Drazner provided the committee some rates other communities are paying under their electric aggregation programs and the rate offered to Countryside is within the range that other communities, most of which are larger in size, are paying. If the committee does not authorize staff to execute the contract with First Energy and NIMEC must re-bid, there would be a chance the rates could come in higher the second time around.
Chair Jasinski agreed informing the residents is very important, but he does not want to lose the offered rate. Unfortunately, at the time of the public meetings a vendor was not available to discuss the specifics.
Administrator Paul will provide a summary to the officials in case a resident contacts them and would like specifics. Mayor Krzeminski would also like to let the residents know the decision had to be made within 24-hours. A resident list was provided to NIMEC and they will provide the list to the selected bidder. Staff will work with the consultants to ensure the residents know the information is being provided from the city and all of the information will be included on the website.
6. Fin. Dir. Drazner reported the cost estimate to televise the City Council meetings should be ready for next month’s meeting. Treasurer Jasinski recommended contacting Lyons Township High School regarding the recording of the meetings.
7. No further discussion. Motion and seconded to adjourn at 6:27 p.m.
Dated: ______________________ __________________________
Steven Jasinski, Chair