Public Works Committee

APPROVED Minutes of a Meeting of the Public Works Committee Village of Northbrook Cook County, Illinois November 11, 2014 Call to Order Trustee Heller called the meeting to order at 6:30 p.m. On roll call, present were Trustees Buehler, Heller, and Israel. A quorum was present. Also present were Village President Frum; Trustee Ciesla; Village Manager Richard Nahrstadt; Public Works Director Kelly Hamill; Assistant to the Village Manager Rob Sabo; Assistant Public Works Director Matt Morrison; Mike Strong, Management Analyst, Department of Development and Planning Services; and Jeff Rowitz, Deputy Village Manager and Chief Financial Officer. Hear from the Audience None. Discussion – Development of Comprehensive Water Plan Kelly Hamill, Director of Public Works, said that tonight’s meeting is the first of a series of quarterly meetings to be held regarding the Village’s water system. He said that the water system is governed by many documents that require extensive technical expertise, such as rate studies and system analyses, but that the Village has never had a unified vision or comprehensive plan regarding the water system. He said that information presented tonight can be used as a basis for future decisions. He then asked if Committee members have goals or items that they believe should be addressed as part of the series of quarterly meetings. Trustee Heller said that the Committee should consider the purpose of the new quarterly meetings. Are they to be held for the purpose of gathering information? Or will the Committee develop a comprehensive water plan? He said he believed that a comprehensive water plan is needed. Trustees Buehler, Ciesla, and Israel agreed. President Frum said that she agreed but that the Committee should also set policies regarding issues such as a schedule for replacing equipment and how to fund needed improvements, including whether to fund them from sources other than the Water Fund. For example, she said, should the Village subsidize the water system with monies from other funds, such as the General Fund? Trustee Heller said that the Committee definitely should consider how water system improvements should be funded. Trustee Israel said that the Committee first should establish what service levels will be provided by the water system. Identifying this, he said, will allow the Village to determine what exactly has to be funded. Trustee Ciesla said that it’s important that capital items for the water system be correctly listed in the budget so that trustees understand what expenditures they are approving and from what fund. Mr. Hamill said that any comprehensive plan developed for the water system can include information regarding water rates and the capital improvement plan. Trustee Israel said that the water plan will determine what appears in the capital improvement plan, not vice versa. Trustee Ciesla said that she would like to see a five-year plan for the water system’s needed capital improvements and options for their funding. Trustee Israel again said that the Village should first identify its water system needs and then consider options for funding them. Trustee Heller said that traditionally only the Water Fund has been used to fund the water system. The Committee should consider whether it wishes to recommend a change. Village Manager Richard Nahrstadt said that the Committee may wish to consider how much time it will need at upcoming meetings as it determines what it wishes to accomplish. Trustee Heller said that for some discussions, one hour may be insufficient. A workshop for the Committee of the Whole may be needed. President Frum said that a Saturday morning meeting may be necessary. Mr. Hamill said that the Committee should be mindful of the timing of the Village’s budget process as it makes decisions. For example, water rates for the 2015-2016 fiscal year already have been established. The Village usually starts to develop its capital improvement plan in September for the fiscal year that begins May 1. Realistically, he said, a decision would have to be made by May 2015 if water rates are to increase in the 2016- 2017 fiscal year. Mr. Nahrstadt said that any discussion of a two-zone water system will require a lot of time. It’s a complex issue. In general, he said, the Committee should plan relatively brief meetings for issues that will not require extensive discussion and longer meetings for more complex issues. Mr. Hamill then presented several slides regarding the Village’s water system. The Water Fund is one of six enterprise funds run by the Village. The Water Fund accounts for approximately 15 percent of the Village’s budget. Its revenue consists almost entirely of user fees paid by water customers. He said that in the 2010-2011 fiscal year, the Village transferred money from the General Fund to the Water Fund to forestall a water rate increase. President Frum said that, to her knowledge, no other transfers ever have been authorized. Mr. Hamill said that the water system includes a production system and a distribution system. The production system includes a water filtration plant, a lake intake facility, water towers, and a reservoir. Employees at the water plant work 24 hours a day, seven days a week. Trustee Heller said that their work is largely invisible, but very important. The plant workers are under-appreciated. The Committee then discussed the technical capabilities of the west side reservoir and the two water towers. The reservoir holds approximately four million gallons. The water towers supply gravity-related water pressure, which means that the Village avoids dangerous backflow contamination of its water system if electric power fails and regular water pumps cannot be used. Mr. Hamill said that experts can be asked to attend future Committee meetings to explain technical features of the water system if the Committee would like. Mr. Hamill said that the distribution component of the water system includes water main, valves, hydrants, and meters, among other items. He said that the Village has over 170 miles of water main. He said that the distribution system is more expensive than the water production system, primarily because it is more labor intensive. Mr. Hamill then presented slides describing revenues and expenditures for the water system. Trustee Israel said that water conservation measures affect user demand and therefore water system revenues. President Frum said that the cost of maintaining the Village’s water distribution system does not drop when revenues do. The costs associated with production may drop, however. The Mission Hills housing development in unincorporated Cook County and the Village of Riverwoods are the Village’s largest water customers. Mission Hills, however, now has a reservoir and so purchases less water from the Village. Trustee Israel said that it’s important not to starve the water system if revenues start to decline. Mr. Hamill said that rates can be structured differently if needed. Mr. Hamill also said that the Village produces more water than it bills for. The difference is water leakage. He said that federal standards for municipal water systems allow for greater leakage if a system has older infrastructure with, for example, a lot of cast iron water main. He said that in future years, however, federal standards will become stricter and municipalities with older systems no longer will be allowed to use them as an excuse for water leakage. He said that the Village has tested water valves for leaks and has repaired 39 leaks this year. The Village also fixed six slow leaks found on portions of its water main. President Frum asked Mr. Hamill if the Village can line water pipes the way it lines sewer pipes. Mr. Hamill said that lining water pipes is much more difficult than lining sewer pipes because water pipes can never be empty if water pressure is to be maintained. Sewer pipes can more easily be emptied, which makes lining easier. The Committee then discussed next steps. Trustee Heller said that the Committee already knows the water system’s usage, costs, and revenues. He said that the question of whether the Village should switch to a two-zone water system will drive subsequent decisions. Trustee Israel said that the Committee should first determine what minimum service levels are acceptable. Trustee Ciesla said that she agreed with Trustee Israel. She said that relatively low water pressure levels may be acceptable. Trustee Heller said that the Village must make sure its water pressure levels are adequate for fire suppression, not just for residential customers. Also, industrial customers may need different levels of water pressure. Trustee Ciesla said that the Village has standards for snow removal. It can also set standards for water pressure. Trustee Heller said that if industrial customers have special needs, they may be asked to fund a system upgrade. President Frum said that the Village Board should be informed of the Committee’s findings well before a decision is requested. Trustee Heller said that if the next meeting of the Committee is to be devoted to understanding acceptable standards for water pressure for fire suppression, industrial customers, and home owners, then the next meeting need not be long. The Committee decided that its next meeting will be held on Tuesday, January 13, 2014, at 6:05 p.m. A meeting of the Village’s Communications and Legislation Committee originally scheduled for January 13, 2014, at approximately the same time will be moved to January 27, 2014. Adjourn At 7:28 p.m., Trustee Buehler, seconded by Trustee Israel, moved to adjourn meeting. The motion passed on a voice vote. Respectfully submitted, Christine Martin Recorder