Finance Committee

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes Finance Committee Tuesday, September 26, 2023 6:30 PM Room 201 1. Call To Order Village President Vicki Scaman called the Finance Committee Meeting to order at 6:34 P.M. 2. Roll Call Present: Trustee Parakkat, Trustee Robinson, Trustee Wesley, President Scaman Also Present: Trustee Buchanan (remote) 3. Public Comment There was no non-agenda public comment. 4. Approval of Minutes A. ID 23-444 Minutes from the November 17, 2022 Meeting of the Finance Committee It was moved by Trustee Wesley, seconded by Trustee Robinson to approve the Minutes. A voice vote was taken and the motion was approved. 5. New Business B. ID 23-427 Review of the Recommended Five Year Capital Improvement Plan (CIP) for FY 2024-2028 for the Main Capital Fund, Community Development Block Grant (CDBG) Fund, Building Improvement Fund, and Equipment Replacement Fund Carl Lager: 19-year resident. Urged the Board to prioritize infrastructure items directly affecting the physical safety of bikers and walkers, particularly areas affecting students including Scoville in front of OPRF, Ridgeland and Washington, and Kenilworth and Washington. Frannie Richie: The plan for bicycle improvements around OPRF should be revisited. Several budget items are priority C whereas resurfacing parking lots is priority A. Urged the Village to eliminate walk signal push buttons. Observed the bike racks at the Ridgeland green line station were full. Village Clerk Christina Waters read the following public comments into the record: Village of Oak Park Page 1 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 Colin Craig: Resident for 10 years at Kenilworth and Washington which is a dangerous intersection. Requests a street light, crosswalk, speed bumps, and speed zone or crosswalk camera. Susan Lucci: Biking in Oak Park has become increasingly treacherous. Please prioritize biker safety. Stefan Scherer-Emunds: Supports prioritizing initiatives in the 2024 budget that address safe roads for cyclists, especially the $200K for bicycle boulevard improvements. Requests clarification on where the improvements would be made. A North-South bike corridor would benefit many residents. Laurie Casey: Alarmed by reports of bicyclists and pedestrians being hit by cars. Please make biking and walking safety a priority in the upcoming budget deliberations. Nicholas Cageao: Lives near Ridgeland and Jackson. The bicycle boulevard and traffic calming projects in the CIP are not prioritized enough compared to other projects that do not relate to safety, including the Home Avenue bridge and Oak Park Avenue Streetscape. Aya O'Connor: Supports allocating funds to bicycle boulevard improvements, traffic calming on Washington, Jackson and other local side streets, and general traffic calming improvements. It is critical that we make Oak Park a safe, bike and pedestrian-friendly neighborhood. Village Manager Kevin Jackson introduced Interim Finance Director Donna Gayden. This is the second of two meetings scheduled to review the Capital Improvement Plan (CIP). Tonight will review the Equipment Replacement Fund, CDBG Fund, Main Capital Fund, and Building Improvement Fund. Staff will provide an update on the Sustainability Fund. The draft CIP will appear on the October 16 agenda to be approved on either October 16 or 30. This draft CIP plan is based on $5.2M of dedicated recurring revenue. The Village recommends: utilizing $3M in ARPA lost revenue; a $3M transfer from the general fund balance; and not issuing any debt in anticipation of future planning around the Village's goals for public facilities. It is customary to have deferrals. The $3M from ARPA and the $3M transfer are both in addition to the $5.2M. The $5.2M comes from a combination of the home rule sales tax, motor fuel tax, telecommunications tax, and a portion of the cannabis tax. Village of Oak Park Page 2 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 Management Analyst Arlene Pedraza said the $5.2M is based on year-to-date and information from IML. Last year the general fund transfer was $1.1M. The remaining $1.1M ARPA balance would possibly go to the Parking Fund. Trustee Parakkat noted the Village will have to determine what will replace the $3M from ARPA next year. Manager Jackson responded that the Village has historically relied on issuing debt to support priority capital improvement projects. Trustee Parakkat inquired about the $600K deficit this year. Manager Jackson responded that the Village identified the critical projects that were important to the Board and it is in draft form for discussion. Trustee Parakkat requested the amount for the projects carried forward from last year. Manager Jackson responded that the goal is to balance and the deferred revenue that is carried forward will be acknowledged as we go through the budgeting process. Deputy Village Manager Ahmad Zayyad presented the Item. The unused sustainability funds from last year's CIP will be moved to the operational budget under sustainability. Chief Sustainability Officer Marcella Bondie Keenan presented a synopsis of the additional rating for climate action. Trustee Parakkat inquired what percentage of residents are considered hard to reach. CSO Bondie Keenan said the Village has low-income numbers from the 2020 census. Deputy Manager Zayyad said staff can follow up with demographics. Trustee Parakkat recommended establishing a strategy to reach the residents that are easy to reach as well. Manager Zayyad said staff can follow up with a comprehensive strategy on how the Village will do outreach and there will be a study session on the CROP (Climate Ready Oak Park) Plan. Manager Jackson noted the Village does have some history with the grants and implementation. Trustee Parakkat said it would be good to look at the grant funding the Village is seeking next year and programs like PACE which can be other sources of funding. Manager Zayyad confirmed the Village is aggressively looking for alternative sources for funding, including an income-qualified solar program from Cook County. Trustee Parakkat said it would be good to have a consolidated view of all of the sustainability revenue sources and how they are getting depleted and how that positions us for the future. Trustee Robinson requested clarification on the grant writer position. Manager Zayyad said the Board approved the contract for Metro Strategies. Manager Jackson said the grant writing successes will be reported back to the Board. Manager Zayyad said Metro Strategies has an hourly rate so the Village expects $4K-$10K per month of work. Trustee Village of Oak Park Page 3 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 Robinson said she prefers that money be spent on the grant work than on meetings. Manager Jackson responded that the Village is building infrastructure to track grant activity and manage the external grant resource. Trustee Parakkat noted there is $360K in revenue and the typical annual spend is about $1.1M which will run into a deficit situation in a few years. Manager Zayyad responded that is why there is a need and desire to do the study session. Public Works Director Rob Sproule presented the priority scale tool. President Scaman noted that bike-ability and walk-ability is perceived as essential for many residents and this grading scale is about crumbling or not crumbling. The Village has limited capacity and the Board hears the residents and their concerns. Trustee Robinson said the flood mitigations discussed in the previous meeting are directly tied to infrastructure and it is important to increase their priority and scope of the grant. President Scaman wondered if that would mean increasing the priority or timeline. Director Sproule said that item is graded an F because it is a future year project. Staff will present new ideas and projects for sewer grant program to the Board as part of the CIP review. Staff will review the tool internally and have conversations with the Board about how to redevelop the tool. President Scaman recommended a rating scale related to Board goals. Analyst Pedraza introduced the Equipment Replacement Fund. Chief Communications Officer Dan Yopchick presented the equipment upgrade project for Council Chambers and other meeting rooms throughout Village Hall. President Scaman wondered if the new equipment could be moved to a new location. CCO Yopchick said staff are keeping that in mind. Fire Chief Ron Kobyleski presented the projects for the Fire Department. IT Director Alvin Nepomuceno presented the IT projects. Trustee Parakkat wondered if the increase from $148K to $317K is due to the equipment being upgraded to increase energy efficiency. Director Nepomuceno responded that the maintenance for the video recording system and keycard system is for their end of life next year. It will reduce energy consumption because the amount of equipment is significantly reduced. There are 12 recorders throughout Village Hall that can be reduced to three or four. The Village is maximizing that technology and infrastructure to reduce the pieces of equipment and power consumption. The cost is still increasing because the equipment needs to be replaced. Police Chief Shatonya Johnson presented the Police Department's Village of Oak Park Page 4 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 continuous projects and expenses. The parking enforcement devices are not a new expenditure. They are to serve as back-up equipment. OPPD will be able to meet the new state mandates of maintaining the recordings. Trustee Parakkat inquired if the $2M from ARPA for the RMS system is included in the $3M ARPA transfer. Analyst Pedraza responded that no, the $2M was approved last year during the ARPA discussions and is separate from the $3M. Analyst Pedraza said Equipment Replacement Fund projects total $794K. The Village should end this year with a projected deficit of $221K and a projected fund balance of $796K. She introduced the CDBG recommended projects totaling $1.4M. Village Engineer Bill McKenna presented the alley improvement project. The 15 alleys puts the Village back to its level pre-COVID. The Village has several hundred alleys to get through which would be 10+ years at this rate. The increasing cost of concrete prevents the Village from completing more than about 15 annually. The Village website shows a priority system for the alleys and the Village is working to update the map this fall. President Scaman requested the number of alleys that are in similar condition, which Engineer McKenna confirmed staff can provide. $400K in CDBG funds was programmed for alleys in 2023 which could not be billed in 2023 so the Village removed the CDBG funds from that project and deferred those alleys until 2024. Engineer McKenna presented the sidewalk improvements project. The Village may start using a less expensive cutting technology rather than replacement to help address the funding gap. It would address the liability and accessibility concerns. Raw material and labor costs will stay the same or increase. Trustee Wesley wondered how long the CIP budget has stayed at its current level. Engineer McKenna said the dedicated revenue streams have been consistent. The only new one is the cannabis tax. Trustee Wesley noted that materials and labor are increasing but our budget is staying the same so the Village may need to revisit that. Manager Jackson said the Village is looking at some long-term financial planning in addition to updating the Board goals. Analyst Pedraza introduced the Main Capital Fund projects. Engineer McKenna presented the Main Capital Fund projects. The bump-outs for Chicago and Scoville are under construction and would not be affected by this project. The plans will be on the October 16 agenda and will include a reduction in the speed limit to 20 miles per hour, large Village of Oak Park Page 5 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 pavement markings, and signage. Pedestrian safety concerns will also be addressed in particular areas. The Village is open to exploring the possibility of converting some streets to one-way to allow for a dedicated bike lane. Those opportunities may come up in the design process. These would be new improvements with the priority C rating. Trustee Buchanan noted these plans started pre-COVID with a previous Board. She thinks the majority of Trustees want to see bike lanes and a discussion needs to be had. Manager Jackson responded that if there is an interest to have a study session on this topic, one can be scheduled. Engineer McKenna added that the Vision Zero Plan does not identify a bike network. President Scaman said she supports a study session. Trustee Wesley said he supports protected bike lanes. Engineer McKenna presented the bridge deck repairs. The Village is currently only obligated to a $1.8M contract for the feasibility study which will be presented to the Board in 2024-2025. With the grant funds, the net fiscal impact to the Village over the next few years is a little over $200K which will be paid upfront and then submitted for 80% reimbursement. The Village will first use the remaining $720K on a state grant and then the balance of the $1.8M contract is funded at the 80/20 rate. Trustee Buchanan said she would like to see the Village not move forward on this and instead use the 20% for bike infrastructure. Engineer McKenna responded that the Village has $4.3M in federal funds for Cap the Ike and related projects. If the Village does not move forward, it would have to give back those grants and potentially have to pay previous costs. The grant funds are being used for the Home Avenue bridge replacement. Engineer McKenna presented the Home Avenue bridge replacement. Staff will present the Board with low, medium, and higher cost consultant options. Director Sproule presented the landscape improvement projects on 180 sites throughout the Village. If the budget for this is cut in half, it will limit the number of sites the Village can improve throughout the year. Engineer McKenna presented the Madison Street traffic calming improvements and Streetscape project. Madison already has the lane reductions so it should not impact the traffic studies on Washington and Jackson. Engineer McKenna presented the North Avenue gateway and the traffic signal improvements. President Scaman acknowledged Trustee Straw's motion to review the walk signal push buttons. Manager Jackson said staff Village of Oak Park Page 6 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 are prepared to discuss that tonight. Engineer McKenna clarified the push buttons on North Avenue are owned and maintained by IDOT and they are planning to upgrade the signals to be more pedestrian friendly and ADA accessible. The Village did a pilot project around 2010 to remove them in the downtown area, which resulted in increased congestion. The Village also considered automatic detection for pedestrians which do not work well in an urban environment like ours. Staff recommends keeping the push buttons which are used to help balance the needs of pedestrians and vehicles and looking at activating leading pedestrian intervals on a case-by-case basis. Existing equipment can be programmed for leading pedestrian intervals, except for the IDOT signals for Ridgeland and Washington which would need to be updated. Engineer McKenna presented the North Marion Street improvements. Staff proposes adding a second sewer just north of Lake Street to add capacity for buildings in that area. One building owner made improvements at their own cost. The sewer costs of just over $100K are included in this estimate. Staff recommends deferring this project until after the Lot 10 construction planned for 2024. President Scaman agreed Lot 10 is a priority. Engineer McKenna presented the Oak Park Avenue Streetscape project. The steering committee, public open house, and Village website provided input. Design concepts will be presented to the Board in late October for final approval in November. The Village is assuming a one-year construction in 2025. Trustee Buchanan said she strongly believes the Village needs to funnel major money into its climate change plans and put aesthetic projects like this on hold. President Scaman said she thinks we can do both and with state and federal support. Manager Jackson said there will be opportunities for the Village to clarify its climate priorities, which is why staff is recommending the study session. Engineer McKenna presented the pavement preservation project. Staff thinks the micro-surfacing of Jackson Boulevard and the western portion of Augusta Boulevard can be deferred a few years. Engineer McKenna presented the Lot 10 replacement. The Village will work closely with Downtown Oak Park (DTOP) and Parking Services to determine the best time for construction. The Beer Shop chalet permit expires at the end of October. Engineer McKenna presented the various street resurfacing projects where a lot of the pedestrian and bike improvements are made. Trustee Parakkat wondered what incremental spending is being done compared to previous spending. Engineer McKenna said this particular project is responding to Village of Oak Park Page 7 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 the infrastructure need. President Scaman said the Village is seeing increasing costs and needs to catch up on infrastructure that was stalled due to COVID. Trustee Parakkat said he does not object to the use of ARPA for this but more around the reserves draw down and determining where the investments are going as pertains to the CIP. Manager Jackson said staff can follow up and address that question. In the absence of ARPA and reserves, the alternative is debit and identifying other revenue sources to support capital improvement projects or rely on the $5.2M and defer the rest. Staff are making strategic recommendations around using our resources to stretch the dedicated money further and avoiding issuing debt and paying the cost of debt and looking at our longer-term finances and finance policy. Engineer McKenna presented the Ridgeland Avenue resurfacing project. A study will be done on the Ridgeland/Division intersection. Engineer McKenna presented the street lighting improvements. Changing the bulbs would provide a maintenance benefit and energy savings. For residents complaining about the lights being too bright, the contract does include fixtures that can redirect or diffuse the light. Director Sproule said there were about 12 complaints out of 1,000 lights and the Village addressed all of their concerns. The Village has also received a lot of positive feedback. Engineer McKenna presented the various traffic calming improvements. There is no moratorium on petitions and the Village anticipates getting through the backlog by next summer. Engineer McKenna presented the Vision Zero Plan development. The Village has been giving the complaints to the consultant so they are aware of past concerns, including repaving Lexington Avenue and the northwest part of the Village. The recommendations for Lexington will likely just be paint and post treatments. The Vision Zero Plan will also be crafted to pursue federal funding for implementation. Engineer McKenna presented the North Avenue Streetscape project. Manager Jackson said staff proposes to push back the operating discussions to October 19 and 26 and discuss the Board Goals and Building Fund on October 12. President Scaman said she prefers to discuss the Building Fund this evening. Manager Jackson said staff will follow up with Trustees regarding scheduling. Director Sproule presented the Building Improvement Fund. For 2024, $1.5M is programmed out for potential schematic design for some option Village of Oak Park Page 8 Printed on 10/11/2023 Finance Committee Meeting Minutes September 26, 2023 related to the police station improvement project. The median of all four options presented were used as a placeholder for the out years. Manager Jackson reiterated it is a placeholder because the Village needs to work through the process, identify the option the Board wants to pursue, and work on a financial plan. Director Sproule presented Fire Stations 1 and 2 improvements. Chief Kobyleski said OPFD has outgrown Fire Station 2 which was built in 1917 for horse-drawn carriages and is too narrow to accommodate an ambulance. President Scaman questioned spending $1.2M on geothermal for this facility. Director Sproule said the only way to expand the building would be in length which would not help to support an ambulance. Trustee Robinson recommends pausing the $675K spend until an assessment can be done. Trustee Buchanan said she agrees with that. Manager Jackson said the Board has not discussed the possibility of building a new Fire Station 2. Trustee Wesley said he does not support spending $1.2M and instead recommends doing a feasibility study on replacing Fire Station 2. Director Sproule said the 70+ year old boiler needs to be replaced by this winter if possible. Trustee Wesley said he is in favor of replacing the boiler now. Director Sproule said the Village has design to do an in-kind boiler replacement and the Village can investigate mini splits or heat pumps to minimize the need to use the natural gas boiler. Staff will revise this item based on this new direction and report back to the Board. 6. Adjournment It was moved by Trustee Parakkat, seconded by Trustee Wesley to Adjourn. A voice vote was taken and the motion was approved. Meeting adjourned at 10:32 P.M., Tuesday, September 26, 2023. Respectfully submitted, Deputy Clerk Hansen Village of Oak Park Page 9 Printed on 10/11/2023