Finance Committee

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes Finance Committee Monday, August 10, 2015 7:00 PM Room 130 1. Call To Order The meeting was called to order at 7:00 p.m. by Chair Anan Abu-Taleb. 2. Roll Call Present: Chair Abu-Taleb, Trustees Brewer and Tucker Absent: Trustee Salzman Others Present: Budget Manager Paul Gasiecki, Village CFO Craig Lesner, Village Engineer Bill McKenna, Village Manager Cara Pavlicek, Village Clerk Teresa Powell, Village Attorney Paul Stephanides, Public Works Director John Wielebnicki 3. Public Comment There was no public comment. 4. Approval of Minutes from June 22, 2015 ID 15-259 Minutes from the June 22, 2015 Meeting of the Finance Committee. It was moved by Trustee Tucker and seconded by Trustee Brewer that these Minutes be approved as amended. A voice vote was taken and the motion was approved. 5. New Business A. ID 15-258 Finance Committee Review of the Draft Recommended FY 2016 Capital Improvement Plan (CIP). i. Overview of the CIP Process (5-year capital plan) 10 minutes ii. Review of the Capital Improvement Fund 20 minutes iii. Review of the Building Maintenance Fund 20 minutes iv. Review of the Water and Sewer Fund 20 minutes v. Review of the Fleet Replacement Fund 20 minutes Manager Pavlicek introduced the new Budget Manager, Paul Gasiecki. Village of Oak Park Page 1 Printed on 8/18/2015 Finance Committee Meeting Minutes August 10, 2015 She explained that this is the first year in which staff have formally presented a full five year Capital Improvement Plan to assist in long-term decision making for necessary infrastructure improvements to the Finance Committee, which will be conducted over the meetings of August 10 and 17. This early presentation is planned to allow for preparation of engineering design work and capital contracting earlier with better pricing anticipated. Early confirmation of plans will also allow for better scheduling of work to avoid possible conflicts with reopening of schools in late summer of 2016. A Study Session with the full Board is scheduled for September 14 with approval of the planning document at the regular meeting of September 21 authorizing initial design work. The first year budget numbers will be presented in the budget with Board approval to follow in December. CFO Lesner explained criteria for inclusion of projects in the Capital Improvement Fund based on cost, useful life of project, creation of a fixed asset and project resulting from an engineering study. He explained that the recommended numbers for 2016 are approximate, but will be firmed up during the budget process. President Abu-Taleb asked about the final three columns on page 8 and asked if property taxes go into this fund. At this time property taxes are designated by ordinance to go to the General Fund; he suggested that they go instead to CIP. Trustee Brewer suggested that a percentage of total property taxes could be designated for the Capital Improvement Fund. Trustee Brewer asked about a possible carbon tax as a source of revenue. Manager Pavlicek noted that a proposal from former EEC member Mac Robinet distributed to the Board provides details about this proposed tax. CAPITAL FUND SUMMARIES CFO Lesner reviewed the revenue streams and expenditures and noted that expenditures are near the mean. He explained that the Capital Improvement Fund makes transfers to other funds (Fleet, Building, etc.). Trustee Brewer noted that bond proceeds were approved for street and alley improvements, and will vary by year based on work to be done. Manager Pavlicek noted that other major Capital Improvement projects include the CityView technology purchase and Harrison lighting, among others. The overall fund balance is in a positive position. Public Works Director Wielebnicki was asked to cover the highlights of this fund. He explained that four major funds are being covered at this meeting: Village of Oak Park Page 2 Printed on 8/18/2015 Finance Committee Meeting Minutes August 10, 2015 Roads/Alleys, Streetscape and Land; Building Improvements (covering all elements); Water and Sewer Fund (noting last year's water rate increase to cover capital projects over the next five years); and Fleet (covering over 200 vehicles owned by the Village). CAPITAL IMPROVEMENT FUNDS Director Wielebnicki explained that this fund includes projects Engineering has recommended for improvements in 2016, as well as looking ahead to additional improvements needed over subsequent years. Planning is beginning for $3,040,000 million in annual improvements to streets and parking lots. The $40,000 in the price is for needed surveying work in preparation for improvements. Expenses for Chicago and Lake Streets are resurfacing (not streetscape); the $1.55 million at the Colt site is for the new street but excludes water/sewer work. South Boulevard at Harlem is for streetscaping as part of the agreement for the new Lincoln development. Page 19 provides details of the Chicago Avenue resurfacing and streetscaping, as well as water and sewer replacement. Director Wielebnicki emphasized that water and sewer replacement is not a given when streets are repaired, but only as it is no longer possible to address problems with repairs only. Partial funding comes from Federal STP funds for resurfacing (80/20 split) and streetscaping with a total cost of $690,000 and Village obligation of $363,000. Director Wielebnicki noted that this cost was reduced from the original amount. Board members asked for less costly options to be presented to provide for additional savings. Page 10 shows Marion Street repairs; original bids had been rejected but this item has come in under budget for additional savings. Director Wielebnicki noted that with early approval of this planning document early capital contracting can provide additional savings. He also noted that loss of trees due to Emerald Ash Borer infestation has required additional tree replacement. BUILDING MAINTENANCE FUND Page 49 begins the Building Improvement Program organized by facility. Improvements to Village Hall in 2015 include furniture replacement with other items to follow in later years. The boiler replacement is scheduled after the heating season in 2016. Driveway improvements refer to the underground parking area below the Village of Oak Park Page 3 Printed on 8/18/2015 Finance Committee Meeting Minutes August 10, 2015 Village parking lot. President Abu-Taleb asked about finding an alternate lot rather than spending $685,000 on underground repairs for 15 vehicles and some storage. Manager Pavlicek explained that this area is also used as the sally port to deliver prisoners to the jail, and is the preferred location for this transfer. President Abu-Taleb asked about making the police station more visible with a future move, possibly in 10-15 years. Manager Pavlicek noted the need for restoration work in the lower level and that it is helpful to know whether to make repairs now or later. President Abu-Taleb suggested that the Board should consult with the police about their needs. Director Wielebnicki suggested guidance on the future direction of maintenance with regard to where police will be housed. Trustee Brewer noted the need to understand structural versus operational maintenance needs. President Abu-Taleb asked that police leadership meet with the Board to discuss these issues. Page 50 shows budget items for police station repairs to improve locker rooms, restrooms and other areas which have not been updated in some areas since original construction . Director Wielebnicki next presented needed Fire Station repairs and mentioned that fire station doors will need to be replaced in the next few years. First replacements are scheduled for 2018 at Fire Station #1. Public Works is now planning ahead for these future repairs and reviewing the current condition of each facility. Trustee Brewer asked if doors were currently operational. Director Wielebnicki noted that ongoing repairs are done as needed but they want to balance repair costs versus new doors. Trustee Brewer urged that operation of doors not be sacrificed for timing; Director Wielebnicki noted that the need for new doors was only reported a couple of months ago. Manager Pavlicek noted that one project could be deferred for another if the need was greater. Director Wielebnicki presented the Public Works Center projects, noting that the facility is now eight years old and has some leaks and drainage issues to be addressed. President Abu-Taleb asked about offsite salt storage. Director Wielebnicki explained that a 10 year storage contract is being set up with the Cook County Forest Preserve District for space outside of Oak Park in addition to local storage to assure that salt will be sufficient to cover winter demands. Manager Pavlicek added that it is helpful to buy salt when prices are low and store it. Dole Center needs new HVAC. The property which houses both library and park district programs is owned by the Village, with additional rental space to the local Train Club and for storage of Village documents. Village of Oak Park Page 4 Printed on 8/18/2015 Finance Committee Meeting Minutes August 10, 2015 President Abu-Taleb proposed that this property be sold to the private sector. Manager Pavlicek noted that this has been discussed as an alternative and noted that the Village also owns the Maze Library building. Trustee Brewer also suggested considering a sale of the properties. Page 54 identifies several Village-owned properties scheduled for demolition. Manager Pavlicek noted that monies from the General Fund were designated for the emergency demolition on North Avenue. Director Wielebnicki and Manager Pavlicek noted that they are working with the CTA for a joint proposal to make repairs at the Multi-Modal station near Harlem. FLEET REPLACEMENT FUND Manager Pavlicek noted the fleet categories: administrative vehicles (pool cars assigned by department), fire vehicles, police vehicles, parking enforcement and public works vehicles. Director Wielebnicki noted that the strategy is to sell vehicles before end of useful life and recoup some salvage value. He noted that a new ambulance has already been ordered for delivery in 2016. President Abu-Taleb asked about leasing versus owning vehicles. Director Wielebnicki noted that there were cost benefits to owning vehicles and maintaining them in good working condition. Manager Pavlicek noted that the vehicles most suitable for leasing were the pool vehicles but that specialty vehicles were best owned and maintained. President Abu-Taleb asked that leasing be investigated. Trustee Brewer asked about lease law that might impact this decision. President Abu-Taleb asked if the Fire Department was planning equipment suitable for fires in tall buildings. Manager Pavlicek said that this is addressed in the construction process through use of standpipes in such buildings. President Abu-Taleb noted that some north suburban communities have acquired old military helicopters that can be used. Manager Pavlicek noted that mutual aid agreements with other communities provide for use of outside equipment in emergencies. President Abu-Taleb asked for more information on how the Fire Department would handle high-rise fires, and Manager Pavlicek noted that they are already prepared to do this in current tall buildings in the Village. This information can be provided to the Board. WATER AND SEWER FUND Manager Pavlicek noted that these enterprise funds receive their revenues from fees based on the new fee structure approved last year by the Village Village of Oak Park Page 5 Printed on 8/18/2015 Finance Committee Meeting Minutes August 10, 2015 Board. President Abu-Taleb asked if revenues were covering costs. Director Wielebnicki said that fees covered the scheduled repairs and the the work on Madison and Lake Streets added to repair plans will be covered by the fees in coming years. President Abu-Taleb asked what other funds might need fee increases to bring them into balance. Manager Pavlicek cited vehicle stickers to support debt service. There is room for an increase, especially when Village fees are compared to fees charged in Chicago. President Abu-Taleb asked about a tax on cell phones. Manager Pavlicek noted that this was not an option but that utility taxes could be raised, and suggested that staff can review these options and report to the Board. Director Wielebnicki reviewed the expense categories under water and sewer. He pointed out the South Boulevard streetscape and water main/sewer replacement proposed for 2016. He noted flood mitigation projects for 2016 and subsequent years. The Brookfield-North Riverside Water Commission will cover street repair and some curb costs on Fillmore following installation of new water mains through that area, including capacity improvements when they do the work. Another possible revenue source used by some towns is a storm water fund based on permeable and non-permeable surfaces. Manager Pavlicek noted that institutional and commercial buildings including religious institutions (which are not exempt) tend to have large proportions of impermeable surfaces and higher taxes. A consultant could be hired to do a study on the impact of such a tax. Trustee Brewer asked about classes of exemptions in such a study. Manager Pavlicek noted that in Downers Grove implementation of such a tax took seven years. Trustee Brewer asked about the $8,450,000 flood mitigation line item for 2020. Director Wielebnicki explained that this project will help to expand storage capacity in northeast Oak Park, but as water will drain to smaller-capacity lines outside of Oak Park this will not solve the flooding problem, though it will help. Manager Pavlicek noted that another green initiative being proposed is installation of rainscapes. Director Wielebnicki noted that residents could be reimbursed for this in connection with the storm water tax initiative. Trustee Brewer asked why the Central Reservoir repairs were over budget. Engineer McKenna explained that this was due to the need to remove excess dirt as part of the field repair process. Manager Pavlicek noted that other projects were reduced to cover these excess costs. Village of Oak Park Page 6 Printed on 8/18/2015 Finance Committee Meeting Minutes August 10, 2015 President Abu-Taleb asked that the maintenance and landscaping of the outside of Village Hall be improved. Director Wielebnicki noted that past policy had been for bare-bones maintenance of the area. Manager Pavlicek noted that the landscaping budget for Village Hall can be increased in the General Fund. Director Wielebnicki noted that $100,000 has been included in the Capital Improvement Fund over the next few years for landscaping improvements at the 180 landscape sites maintained by the Village, including those at Village Hall and in the North Kenilworth Median Parkway, including mulching. 6. Old Business 7. Adjournment It was moved by Trustee Tucker and seconded by Trustee Brewer to adjourn. The motion was approved. Meeting was adjourned at 8:20 p.m. on August 10, 2015. Village of Oak Park Page 7 Printed on 8/18/2015