Committee of the Whole

Village of Brookfield Agenda Committee of the Whole Meeting Monday, July 8, 2024 @ 7:00 PM or Immediately Following Village Board Meeting Edward Barcal Hall 8820 Brookfield Avenue Brookfield, IL 60513 I. ROLL CALL II. REGULAR BUSINESS 1. Discussion and Review of Proposed Vacant Building Ordinance and Property Registration for all Commercial and Residential Buildings Committee Item Memo - Proposed Vacant Building Ordinance 2. Discussion of Potential Amendment to the Private Lead Water Service Line Reimbursement Policy Committee Item Memo - Potential Amendment of the Lead Service Line Replacement Reimbursement Policy III. PUBLIC COMMENT IV. EXECUTIVE SESSION V. ADJOURNMENT Page 1 of 16  Committee Item Memo Meeting Date: July 08, 2024 Staff Contact: Libby Popovic, Community Development Director Department: Community Development Subject: Discussion and Review of Proposed Vacant Building Ordinance and Property Registration for all Commercial and Residential Buildings Background Information: At present the Village does not have a mechanism to track and understand the true number of vacant commercial and residential properties in the community to better protect public health and safety. To address this factor, some municipalities have enacted a Property Registration and Vacant Building Ordinance. Because vacant buildings not only place a financial strain on a municipality, represent a public nuisance and negatively affect public health and safety issues in the community the Village Board should consider adopting a Vacant Building Ordinance and Property Registration. Its implementation addresses several benefits to the Village, including: 1. Property Maintenance: Ensures vacant properties are properly maintained, reducing blight and deterioration. Mandating property owners to maintain the exterior appearance, including lawn care and removing debris, reduces the attractiveness of the property to vandals. 2. Safety and Security: Decreases the risk of crime, vandalism, and fire hazards associated with vacant properties. It enforces regulations and standards that ensure these properties are properly maintained, particularly with regular inspections to identify and address issues, such as broken windows, overgrown vegetation and unauthorized access. Doors, windows and other entry points can be securely locked or boarded up to prevent unauthorized access and potential criminal activities on the property. 3. Neighborhood Stability: Maintains the aesthetic and structural integrity of neighborhoods, supporting property values and community well-being. Implementing fines and penalties for non-compliance encourages property owners to adhere to the regulations, promoting safer and better maintained properties. The ordinance helps keep neighborhoods visually appealing, which can enhance property values and community pride. 4. Revenue Generation: Potentially generates revenue through registration fees and fines, which can be reinvested into community development projects. Page 2 of 16 5. Data Collection: Provides accurate data on vacant properties, helping the municipality plan for housing needs, economic development, and resource allocation. At present the staff does not have a mechanism to track the data efficiently or reliably. 6. Accountability: Holds property owners accountable for their vacant properties, encouraging timely rehabilitation or sale. 7. Public Health: Reduces public health risks, such as vermin infestations and illegal dumping, often associated with vacant properties. For example, requiring removal of flammable materials and ensuring that fire safety measures are in place reduces the risk of fire hazards. 8. Economic Development: Encourages the repurposing or redevelopment of vacant properties, contributing to economic growth and revitalization efforts. Overall, implementing a vacancy ordinance, in conjunction with requiring property registration for vacant buildings, can assist the Village Board to manage and mitigate the negative impacts of vacant properties, enhancing the community's quality of life and economic vitality. At present, the Department of Public Works shows that there are approximately 75 known vacant properties that have had zero water usage in three weeks. The property maintenance inspector estimates that there are approximately 90+ vacant commercial and residential properties in total in the Village. A Property Registration and Vacant Building Ordinance would allow for more efficient tracking and maintenance on those properties. These measures collectively contribute to a safer community and overall property maintenance. Financial Impact: A fee for registering a vacant residential or commercial property will yield additional revenue to the Village. The exact amount is unknown at this time. Recommendation(s): The Village Board should discuss and consider implementing a Property Maintenance and Vacant Building Ordinance. Page 3 of 16  Committee Item Memo Meeting Date: July 08, 2024 Staff Contact: Stevie Ferrari, Assistant Village Manager Department: Village Manager's Office Subject: Discussion of Potential Amendment to the Private Lead Water Service Line Reimbursement Policy Background Information: In June of 2022, the Village Board approved a policy concerning Village responsibilities for replacing lead water service lines, on both public and private property. At the time of the discussion in 2022, there were several factors that were unknown to staff as we were drafting the policy. The Village is in full compliance with all State and Federal regulations governing the control of lead and copper within public drinking water supplies. The Lead Service Line Replacement and Notification Act signed by the Governor in 2022 requires that all lead service lines be replaced in Illinois over a 17 year period starting in 2027 (full compliance by 2044). As a result of new, updated information received from the State, staff presented to the Board at the Committee of the Whole meeting on July 24 2023, an update to the State law governing the replacement of these lines, and provided an estimate to the number of service lines in the Village which will need replacement and their timing, as well as an estimate of the funding that will most likely be required (28M for all lead water services private and public). The Village Board concurred with staff's recommendations and requested that the Village's Lead Service Line Replacement policy be amended to incorporate the new information which was formally adopted at the August 28, 2023 Board meeting. Included in that Lead Water Service Line Replacement (LWSR) Funding Policy was a reimbursement component to residents who elected to replace their private service lines outside of identified capital improvement project areas. The Village adopted a water rate modification for the purpose of funding the LWSR capital project and to allow residents who electively paid for replacements at the time of modification to be reimbursed. These funds are deposited into the Lead Service Line Replacement Fund (LSLRF) and accrues approximately $750,000 annually. Residents who were able to be identified as qualifiers for reimbursement after the water rate modification have since been provided funding. Current Water Fund structure to include operation and capital improvement impacts: CHARGE PER 1,000 GALLONS WATER RATE COMPONENT RATE AS OF JULY 1, 2024 DESCRIPTION Page 4 of 16 OPERATIONS COMPONENT COST OF WATER SUPPLY $ 6.23 RECOVERY COST $ 1.87 EQUIPMENT MAINTENANCE COST $ 0.30 OPERATIONAL COSTS $ 2.52 TOTAL OPERATIONS COMPONENT $ 10.92 CAPITAL COMPONENT CAPITAL IMPROVEMENT COSTS $ 3.52 LEAD WATER SERVICE REPLACEMENT $ 1.66 PROGRAM TOTAL CAPITAL COMPONENT $ 5.18 TOTAL RATE PER THOUSAND GALLONS $ 16.10 Additional residents have come forward after the August 28th LWSR Funding Policy was approved to inquire about the program and request reimbursement for electively replacing their private service lines. To-date, and within 10 months of adopting the policy, the Village has issued reimbursements to nine home owners in the amount of $77,441.71. There are 4 pending home-owners inquiring about the reimbursement for replacement which amounts to an additional estimated $51,000 in expenditures from the Lead Service Line Replacement Fund- LSLRF (2 homes include coordination of public service line replacement). The current reimbursement policy paperwork requirements include: 1. Letter from the home owner to include name/address/contact information, and stating their request and brief description of work. 2. Itemized quote from contractor. 3. Proof of Permit 4. Proof of Payment 5. Copy of passed inspection The Village does not reimburse for upgrades in lines required by Code or new construction, new meter material and installation, or interior restoration. Within the navigation over the past ten months of this new reimbursement policy, staff have encountered scenarios that warrant re-evaluation of the current policy. Scenarios and issues within each of these scenarios include: Scenario 1:  Plumbing contractors proactively cold calling/messaging home owners to get their lines replaced with the information that the Village will pay for it. Issue: Page 5 of 16 Staff are seeing independent contractor quotes ranging from $8,500 for private line replacement up through $18,000 for replacement. The current policy does not require provision of multiple quotes and does not have a maximum limit for reimbursement or cost-share. The Village was awarded low-interest loan funding from the IEPA in the amount of $7.55M for 2024. The debt obligation for this loan is between $250,000-$300,000 annually and is taken from the LSLR Fund. If the Village does receive additional IEPA low-interest loan funding, the debt obligation will continue to increase with each award. As an example, the Village is on the intended funding list for 2025 in the amount of $10M from the IEPA. Once this award is accepted, 75% of the LSLR Fund will be allocated toward debt obligation and construction costs specific to the LWSR project. This percentage does not include emergency repairs. Through our competitive bid process, we procured rates for lead line replacement in the amount of $7,300 for private and public lines in Phase 1- bulk pricing that is much lower than one-off replacement pricing we are seeing. In 2024 alone we will be replacing an estimated 690 lines under the competitive bid rates. This accounts for 23% of all identified lead water services in the Village, well beyond the minimum state requirement of 6% (not mandated to begin until 2027). Reimbursement funding to home owners electively replacing their lines outside of project areas comes from the same Lead Service Line Replacement Fund (LSLRF) that is drawn from for our debt obligation within these capital project areas as well as emergency replacements due to leaking services or other emergencies. With the LSLRF accruing approximately $750,000 annually and between $250,000-$300,000 being drawn annually for debt obligation related to the $7.5M low-interest loan, and emergency replacements, combined with not being promised future IEPA loan funding, the Village is met with unknowns in both the number of elected private line reimbursements and total costs associated. Continuing the elected private line replacement reimbursements contributes to the unknowns in depleting future funding reserves if we were not to receive future loan funds. It would be fiscally prudent to allow this LSLRF reserve to build in preparation for future replacements to meet state mandate requirements and emergency replacements- especially under the circumstance in which we are not awarded future low-interest loan funding. Scenario 2:  When a private service line is replaced, the Village is required per state mandate, to replace the public portion within 30 days. Issue: Staff cannot reasonably estimate annual expenditures from the LSLRF regarding elected private line replacement with that line being connected to a public lead service line. State mandate requires if one portion (either private or public) is replaced, the entire line must be replaced within 30days. Staff have incorporated estimate costs into capital project service areas to include anticipated full line replacements within the current 690 lines identified. Adding Page 6 of 16 elected replacements depletes the LSLRF reserved for CIP areas and emergency replacements. Staff have encountered reimbursement requests for private line replacement that have accompanied a failed inspection due to the public service line not being replaced at the time of inspection. Staff must then determine if we will use the same independent contractor as the private resident for the sake of efficiency for the resident but at the fiscal pit fall of higher pricing than our already procured bulk-bid pricing. Staff have had to make decisions both ways in electing our contractor for the work, making it frustrating for the resident in a prolonged completed project. During this process, the water is reinstated with the partial water service replacement, and the consumers within the building have a potentially increased level of exposure to lead due to the disruption of the broken orthophosphate barrier within the pipe. The disruption of the water pipe increases the lead particulates introduced into the building's water supply. In each of these events, it creates a burdensome work load for Public Works in project management as well as Community Development in permit and inspection coordination. Our surrounding communities have provided information related to their policies in lead line replacements as well as information related to allowing elected private line replacement and the funding mechanism tied to these policies. Information on surrounding communities is below: Lead Line Elected Private Line Community Additional Nots Replacement Policy Replacement *Home owner pays 100% of the private line replacement LaGrange Park Yes No unless part of Capital Project areas Home owner pays 100% of private line replacement LaGrange Revisiting Policy No including as part of Discussion Fall 2025 a water main capital improvement project. Homeowner pays 100% of private line replacement unless North Riverside No No it is emergency repair. Final inventory LWSR report still Page 7 of 16  underway. Home owner can Yes elect to replace Brookfield IEPA Loan Yes private line outside Funding/LSLR Fund of CIP areas- Village pays 100% Homeowner pays 100% of elected private line replacement. Riverside Yes No Village only pays for private line costs if it is an emergency repair or tied to capital project area. Village only pays for private lines as identified in CIP Yes areas. Elected Implemented a 30% replacement is at Westchester water rate increase No 100% cost to home while continuing to owner unless the evaluate policy line is leaking or requires emergency replacement Yes *currently evaluating IEPA Loan Funding elected replacement *current discussions policy- may mirror Western Springs happening regarding No their Overhead water rate increase Sewer Cost Share for funding, pending Program study The Village, through thoughtful proactive planning, has created a funding mechanism for lead water service replacements as well as have procured low-interest funding to aggressively address 23% of our lead water service lines in 2024. We anticipate continued annual approaches that will allow us to complete this project well before the 17 year deadline; however the allowance of elected replacements incurs cumbersome scenarios for staff in multiple departments detracting from the project management of about 690 lines in 2024 and draws from the funding source for CIP areas. Board options for consideration: 1. Remain status-quo. No change to existing policy. 2. Require multiple quotes from residents seeking elected replacement and reimbursement. Page 8 of 16  3. Allow the Village to select the ultimate vendor for work based off of confirmation in being a registered contractor with the Village and pricing evaluation. 4. Establish a maximum cap cost-share for elected replacements (50% cost share up to $4,000 reimbursed, as an example). 5. Update the internal process surrounding the existing policy to include Public Works staff being deployed at time of resident inquiry to confirm public line material. 6. Require a fee to the home-owner if Public Works staff must confirm public material type for an elective replacement. 7. Discontinue the elective private line replacement reimbursement policy Staff's recommendation is to align with our surrounding community policies and discontinue the elective private line replacement reimbursement policy (option 7 from above) in order to efficiently project manage the CIP areas of the already identified 690 lines being replaced this year at no cost to the homeowners. In addition, discontinuing this practice will allow for a more stable environment in management of this mandated, cumbersome project as well as give more control and stability of the Lead Service Line Replacement Fund moving forward. Advantages and Disadvantages of The Elective Private Line Reimbursement Program (options 1-6): Requiring multiple quotes from the home owner provides for a more fiscally responsible environment in procurement but if not allowing the Village to select the vendor- the resident may still elect to utilize a higher contracted price negating the reason for multiple quotes. Allowance of the Village to select the vendor for private line work would need to be reviewed by the Village attorney. If we combine the multiple quote requirement with an established maximum cap cost share, it may motivate the home-owner to select a lower priced, quality vendor if there is a cost share. This amendment still leaves the coordination of project management, if public lines need to be addressed at the same time, to Public Works and Community Development in both work and tracking. Staff have assessed the internal process for elected private line replacements that have been completed to-date and there is no simple solution to address easing the coordination of these lines as it relates to the public line replacements that may or may not accompany these requests. As residents elect to replace their private lines outside of the already identified project areas, staff cannot with one hundred percent certainty verify the material of the public side until hydro excavation at the B-Box is done. This still requires the coordination of work to deploy staff to excavate in the inquiry stage and the home owner may decide not to pursue replacement. The Village does not re-coup any labor and material costs for hydro excavation to determine line material. If the material of the public side is verified as lead and the homeowner chooses to move forward with replacement, the Village is financially responsible for the public side replacement at a higher cost (using the sourced home owner selected vendor) than our bid procurement price as the most efficient process at that point would be to have the home owner contracted vendor complete both the private and public side. Page 9 of 16 Staff awaits Village Board discussion prior to developing the proposed policy amendment(s) to include the potential to discontinue the reimbursement program. Financial Impact: No amendment to the policy will equate to around $100,000 annual reimbursements based off of requests to-date while still leaving future reimbursement contributions in the "unknown" if not discontinuing or capping the funding allocation in both number of elected services allowed and cost share. Recommendation(s): Staff's recommendation is to align with our surrounding community policies and discontinue the elective private line replacement reimbursement policy in order to efficiently project manage the CIP areas of the already identified 690 lines being replaced this year (and future years). Discontinuing this practice will allow for a more stable environment in management of this mandated, cumbersome project as well as give more control and stability of the Lead Service Line Replacement Fund moving forward. Attachments: Lead Line Replacement Policy Adopted August 2023 Page 10 of 16  RESOLUTION 2022 - R A RESOLUTION APPROVING AND ADOPTING A POLICY REGARDING THE FUNDING OF THE LEAD WATER SERVICE REPLACEMENT PLAN OF THE VILLAGE OF BROOKFIELD PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES The 13th Day of June 2022 Page 11 of 16  RESOLUTION 2022- R A RESOLUTION APPROVING AND ADOPTING A POLICY REGARDING THE FUNDING OF THE LEAD WATER SERVICE REPLACEMENT PLAN OF THE VILLAGE OF BROOKFIELD WHEREAS, the corporate authorities of the Village of Brookfield (“the Village”) deem it is advisable, necessary and in the public interest to adopt a policy regarding the management of the Village’s funding of a lead Water Service Replacement Plan (the Plan) in order to ensure proper future funding as well as availability of funds to support the Plan in future years; NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Brookfield, Cook County, Illinois, as follows: Section 1: The facts and statements contained in the preamble to this resolution are found to be true and correct and are hereby adopted as part of this resolution. Section 2: The Village of Brookfield Lead Water Service Line Replacement Program Funding Policy (the Plan), a copy of which is attached hereto as Exhibit “A” and made a part hereof, is hereby approved and adopted by the corporate authorities of the Village. Section 3: The Village Manager and the Village Finance Director are hereby authorized and directed to implement the Policy. Section 4: This Resolution shall be in full force and effect upon its passage, as provided by law. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.] Page 12 of 16  Financial Policy: Board Approval Date: Lead Water Service Line Revision Date: August Replacement Program Funding Policy 24, 2023 I. Purpose The purpose of this policy is to ensure that adequate funding for the replacement of the lead service lines located within Brookfield will be available through the water rate charged to the system users. II. Background and Scope The State of Illinois mandated replacement of lead service lines over a twenty-year seventeen period beginning in 2027. The replacement of the lead service lines would need to be done at a minimum of 56% of the total lead service lines over a twentytseventeen-year period. As of July 20222023, the Village estimates that over 5,500 3,200 Private Service Lines will need to be replaced. The Village Board has stated its intention to bear the responsibility for these replacements as necessary. The total estimated cost to replace the private portion of the lead service lines is a minimum of $2228,000,000. In order to finance the Program, staff has established a component of the water rate charged to system users—the Lead Service Line Project Cost component. This rate, established in July 2022 is specifically designed to provide funding for Lead Service Line Replacements. III. Water Rate Components The Water rate is divided into six components: 1. COST OF WATER SUPPLY 2. RECOVERY COST (cost of unmetered water) 3. EQUIPMENT MAINTENANCE COST 4. OPERATIONAL COSTS 5. CAPITAL IMPROVEMENT COSTS 6. LEAD WATER SERVICE REPLACEMENT PROGRAM IV. Annual Review of Water Rate to Ensure Proper Service Charge Annually, the Finance Department will review the rates charged to the System Users to determine any changes which need to be made. The Finance Department will present its findings to the Board of Trustees. Page 1 of 2 Page 13 of 16  V. Accounting for Designated Revenues The revenues generated by the Lead Service Replacement charge will be used to fund the Lead Water Service Replacement Program. An accounting of both revenues and expenses related to the program will be reviewed as part of the Monthly Financial Statement Preparation and Reporting Procedures. VI. Obtaining State and Local Federal Funding The revenues generated by the Lead Service Replacement charge will be used to leverage additional Grants and Loans to maintain the Lead Service Replacement charge at the most efficient rate. Staff will work with the Village Engineer to seek out these funding sources where available. VII. Funding Options As of August, 2023, the State is no longer offering a loan forgiveness option. Therefore, the Village will pursue low interest loans through the State of Illinois to fund the Lead Service Replacement program. The water rates previously approved by the Village Board will be utilized to pay the annual debt service payments required, should the Village receive the low interest loans. Village staff will annually review the status of the water rate in effect to ensure adequate revenue is received to fund the debt service costs. If any rate adjustment is necessary, staff will bring a recommendation forward to the Village Board for formal consideration. VIII. Village Funding Commitments for Lead Service Line Replacements The Village shall fund all the costs for Lead Service Line replacements on the public side, and on the private side in the following instances: • There is a leaking lead private service line • Any lead private service lead line that is connected to a water main which is being replaced by the Village • Any private service lead line which was replaced at the property owners expense after the Village Board approved the water rate adjustment on July 1, 2022 (a Village permit must have been issued for this work to be eligible for reimbursement) • Any private service lead line that is requested to be replaced by a property owner Village staff will establish prioritized order for lead line replacements that are requested for replacement by a property owner. Village payment for private lead line replacements will include patching a concrete wall or floor for interior restoration required for the replacement work. The Village Page 14 of 16  will not pay for any other restoration in the home, including drywall, painting, etc. IX. Property Owner Commitments for Lead Service Line Replacements Property owners will be responsible for the costs of lead service line replacements in the following instances: • For an instance where the lead line was replaced due to a Village Code requirement • The private lead service line was replaced by a property owner prior to July 1, 2022, when the water rate was approved by the Village Board • The private lead service line was replaced by a property owner after July 1, 2022 but no Village permit was issued Page 2 of 2 Page 15 of 16  Section 5: This resolution shall be in full force and effect upon its passage and approval in accordance with law. ADOPTED this 13th Day of June 2022, pursuant to a roll call vote as follows: AYES: NAYS: ABSENT: ABSTENTION: APPROVED by me this 13th Day of June 2022. Michael J. Garvey, President of the Village of Brookfield, Cook County, Illinois ATTESTED and filed in my office this 13th Day of June 2022. Brigid Weber, Clerk of the Village of Brookfield, Cook County, Illinois 1058261.1 Page 16 of 16