City Council Planning Sessions

Monday, September 11, 2023 I. Call to Order The Wheaton City Council Planning Session was called to order at 7:10 p.m. by Mayor Suess following the conclusion of a public hearing. The following were: Physically Present: Mayor Suess Councilman Barbier Councilwoman Bray-Parker Councilman Brown Councilman Clousing Councilwoman Robbins Councilman Weller Absent: None City Staff Present: Michael G. Dzugan, City Manager John M. Duguay, Assistant City Manager James Kozik, Director of Planning & Economic Development Joseph Tebrugge, Director of Engineering Robert Lehnhardt, Director of Finance Sarang Lagvankar, Senior Project Engineer Al McMillen, Water Superintendent Sean Walsh, Sewer Superintendent Nathan Plunkett, Street Superintendent Halie Cardinal, Public Relations Coordinator II. Public Comment There were no public comments. III. Capital Improvement Plan, 2024 - 2028 City Manager Dzugan stated that Assistant City Manager Duguay will present the proposed 2024 - 2028 Capital Improvement Plan (CIP). As mentioned during the 2024 Budget Framework discussion, the four funds which need further examination include parking, stormwater, water, and building renewal. Assistant City Manager Duguay stated that the purpose of the presentation is to introduce the CIP to the Council; discuss 2023 and 2024 projects; discuss the four aforementioned fund challenges; and receive Council feedback. The CIP is a planning document that guides investments, makes the best use of resources while aligning those with priorities, and identifies the need for future resources. The projects within the CIP support all the City’s strategic priorities, especially financial stability and enhanced infrastructure. In 2024 there are 68 total proposed projects. Projects included within the CIP which need to be further examined based on available funds are stormwater-related and flood-prone projects (TCR, Glendale, Pershing East, Thomas, and Mayo) and the Thomas Road Drainage Project. Monday, September 11, 2023 CITY COUNCIL PLANNING SESSION MINUTES Assistant City Manager Duguay outlined projects in which the City has leveraged outside funding, including FAUS (Federal Aid to Urban Systems) funds that supported the Collector Street Resurfacing Project, work on Lorraine Road and Gary Avenue roadwork scheduled for 2024. Director of Finance Robert Lehnhardt provided an overview of the City’s capital projects history from fiscal year 2013/2014 to the 2025 forecast. From 2013 to 2022, the City averaged approximately $10 million in other capital infrastructure projects. In 2023, City staff project an increase to $22.7 million, with $5 million funded by grants and $23.8 million in projects for 2024, with $1.8 funded in grants. Director of Finance Lehnhardt noted that 2023 and 2024 have several one-time projects. City staff project a total of $10.4 million in grant revenues from 2021-2024 from the following: ARPA, Rebuild Illinois, DCEO, and the Department of Housing and Urban Development. Regarding the Downtown Streetscape Project, Assistant City Manager Duguay stated that 70.1% of its funding was from TIF, and 24.7% was from the G.O. Bond Fund. The project’s original estimate was $34.7 million, and the final estimate is now $36 million, however the project scope was expanded significantly to include a wider area, additional utility work, and alley reconstruction. Assistant City Manager Duguay reviewed the major project areas in the CIP and their projected costs, which include road reconstruction, new sidewalks, flood-prone areas, road resurfacing, water main replacement, and facility improvements. Assistant City Manager Duguay stated staff is recommending expanding the timeframe of new sidewalk work through 2027 to alleviate financial strain on the Capital Projects Fund. Assistant City Manager Duguay stated that during tonight’s meeting various City staff will discuss prioritization of proposed projects, 2023 projects completed; and proposed 2024 projects. In response to Council question, Assistant City Manager Duguay stated that the City has adequate staff for its projects, especially since the Downtown Streetscape Project is concluded. However, with consideration to available staff bandwidth, decelerating the new sidewalk program may prove beneficial. Regarding the Water Fund, Assistant City Manager Duguay stated that expenses have been increasing over the past several years primarily due to the City of Chicago’s rates having increases annually. The target fund balance is 25%, the projected fund balance in 2025 is 11%, and the projected fund balance is predicted to continue to decrease through 2028. Maintaining this 25% target balance is important to provide sufficient cash flow for operations and for unanticipated capital replacement and repairs. Water Superintendent Al McMillen stated that 2023 had major projects involving implementation of the Lead Service Line Replacement Program and water main replacement on Butterfield Road, Danada Square West, Danada Square East, Gamon Road, and Creekside Drive. In response to Council question, Water Superintendent McMillen stated that City staff have replaced over 4,000 feet of water mains in 2023. Replacement of water mains has historically been conducted in conjunction with the road program. However, some replacement projects are conducted independent of roadwork based on number of breaks, size, and existence of lead service lines. Water Superintendent McMillen stated that regarding the Lead Service Line Replacement program, this year staff and contractors completed 28 customer-side services, 33 complete services, and 60 City-side services. Monday, September 11, 2023 CITY COUNCIL PLANNING SESSION MINUTES In response to Council question, Water Superintendent McMillen stated that there are 800-900 more lead service lines left to replace. Water Superintendent McMillen stated that 2024 projects involve the Reber Street standby generator replacement; water main replacement on Wesley, Stoddard and Seminary; and lead service line replacement. In response to Council question, Water Superintendent McMillen stated that the pump station on President Street is scheduled to be evaluated. Water Superintendent McMillen answered Council questions regarding water leakage by stating the City’s rate of leakage is 9.7%. Main sources of water leakage include unauthorized use, main breaks, meter errors, and meter billing errors. City Manager Dzugan stated the fund balance will allow for 2024 projects to be completed, including lead service line replacement, however there is not sufficient revenue to complete capital projects after 2025. The City of Chicago continues to increase the rates it is charging the DuPage Water Commission for water annually, and Wheaton has not increased its own rates for eight years. The City may consider raising its rates to complete capital projects and cover operating costs. Regarding the Sanitary Sewer Fund, Assistant City Manager Duguay stated that operating revenues compared to operating expenses remain relatively steady through 2028. In 2022 and 2023, the increase in operating expenses is due to the increase in the Sanitary Sewer Service Line Reimbursement Program. With the operational costs, sewer replacements and rehab, and Basin 3 & 4 discharge improvements, the fund balance in 2028 will be $-0.28 million. In response to Council question, Assistant City Manager Duguay stated that there will be a project involving installing a new pipe from Basin 3 & 4 to connect to the southside interceptor. Director of Engineering Tebrugge stated that Basin 3 & 4 currently generates sediment which requires constant cleaning, and this project will reduce that issue. Engineering will start later this year and throughout 2024 with the project moving forward in 2025. Sewer Superintendent Sean Walsh stated that the Sanitary Sewer Division prioritizes projects for capital improvement based on maintenance as the system must remain serviceable, have structure stability, and implement reduction of inflow and infiltration. In 2023, projects involved sewer main rehabilitation and service lateral rehabilitation. In 2024, projects will involve the aforementioned Basin 3 & 4 discharge replacement, sanitary sewer capital assurance, sewer main rehabilitation, manhole rehabilitation, service lateral rehab, and road program. In response to Council question, Sewers Superintendent Walsh stated that data related to increased system efficiency is ongoing. However, the sanitary sewer overflows in residential homes’ basements have decreased this year from 600 service calls in 2022 to below 400 so far in 2023. Regarding the Storm Sewer Fund, current revenues are around $1.7 million which is below the necessary funding for operating expenses in 2024. This trend continues in 2025 and beyond. If the City performs all the proposed 2024 stormwater projects in the CIP, funds from another area will be needed. This trend continues each year. Monday, September 11, 2023 CITY COUNCIL PLANNING SESSION MINUTES City Manager Dzugan stated the Council will need to provide direction regarding how the City should fund the planned flood-prone projects. Several grants have been denied for select capital projects in this area, and it will be significantly challenging to fund these projects. Council members suggested conducting a meeting dedicated to the Storm Sewer Fund and the other funds of concern. Council members requested to receive and evaluate the various financial modeling options to remedy the funding issues across the various funds of concern. Options can include applying for additional grants; extending projects’ timelines; and de-prioritizing projects that require acquiring easements and land, which impede a project from moving forward or being completed. In response to a Council question, City Manager Dzugan stated that the proposed new storm water utility fee change will not increase revenue for this fund. The storm water utility fee change will impact how the City charges stormwater utility fees starting in 2024 through a new formula based upon impervious area. Sewer Superintendent Walsh stated that the priorities of the Storm Sewer Fund are focused on maintaining the existing program, especially in association with the road program and essential maintenance such as lining storm sewers and storm main replacement. In 2023, projects involved the storm sewer replacement program, continued road program rehabilitation, and the yard flooding improvement grant program. In 2024, projects will involve storm sewer structure replacement by Public Works crews, the yard flooding improvement grant program, and the site-specific overland flooding program. Regarding the Parking Fund, Assistant City Manager Duguay stated that in 2020, operating expenses outpaced revenues, and this trend continues through 2023. City staff project expenses to continue to exceed revenues through 2028. This trend is primarily due to the vast reduction in commuter lot use post- COVID. In 2024, projects include the garage stairwell coating and the train station concrete replacement. Regarding the Capital Projects Fund, Assistant City Manager Duguay stated that critical areas supported include bridges, facility improvements, roads, sidewalks (new and replacement), and LED lights. In response to a Council question, Assistant City Manager Duguay stated that the new sidewalk program’s top priority areas are complete. Assistant City Manager Duguay stated the General Fund also transfers the difference between operating revenues and operating expenditures to the Capital Projects Fund for roadway improvements, sidewalk improvements, and other capital improvements. Based on current estimates, the fund will run out of funds by the end of 2026. Senior Project Engineer Lagvankar stated that prioritization is focused on roads. Specifically, priorities are related to reviewing current pavement conditions City-wide (PCI), focusing on streets in the target range for resurfacing, and evaluating the type of streets in question (arterial, collector, or local). In 2023, key projects include the White Oak subdivision road resurfacing, North Path road reconstruction, and Burning Trail concrete resurfacing. In response to Council question, Senior Project Engineer Lagvankar stated that the annual target roadwork improvement goal is eight miles. He stated that the top wearing surface of a road has an average lifetime of 15 years.  Monday, September 11, 2023 CITY COUNCIL PLANNING SESSION MINUTES In 2024, the proposed projects include continuing the Briarcliffe Knolls subdivision resurfacing, the new sidewalk program, Wesley Street reconstruction, and continuing concrete street resurfacing. In response to Council question, Senior Project Engineer Lagvankar stated that 7% of the entire pavement network is concrete which is approximately 11 miles. Maintenance on concrete is substantially more expensive than on asphalt. Bridge structure inspections are also planned for 2024 with the Manchester/Wesley Street Bridge, annual inspection of the Stonebridge Trail Bridge, and the Creekside Bridge replacement which started this year. Regarding the Streets Fund, Street Superintendent Plunkett stated that prioritization is focused on keeping the roads and sidewalks safe for vehicles, bicycles, and pedestrians. These maintenance activities include milling and paving asphalt roads, extending the life of pavement with crack sealing and the GSB asphalt rejuvenator, replacing defective sidewalks and reducing sidewalk trip hazards, improving the street lighting system with LED fixtures, replacing deteriorated signs, and replacing pavement markings. Street Superintendent Plunkett stated that 2023 and 2024 heavily focus on milling and paving roads and the new sidewalk program. Street Superintendent Plunkett stated that for the sidewalk replacement program, crews are either saw cutting the sidewalks or performing complete replacement. Saw cutting is significantly more cost effective. He stated that fully replacing a sidewalk is four times more expensive than saw cutting. In response to a Council question, Street Superintendent Plunkett stated that root pruning is performed to help alleviate destruction of sidewalks. Total asphalt purchasing is approximately $400,000 annually, and this typically paves approximately four miles of roads. For the new sidewalk replacement program, a contractor performs this work to include the replacements and saw cuttings. The process of replacing light fixtures involves receiving a report via an online form submittal or phone call from a resident and replacing the non-functioning fixture in question. Regarding the New Sidewalk Program, Assistant City Manager Duguay stated that City staff communicate with residents prior to survey time and allow for a 30-day timeframe for feedback. Once the Council awards the contract, City staff send a notification to the impacted residents regarding the start of work in the coming weeks. Additionally, the contractor performing the work will place door hangars on residents’ homes 24 hours ahead of work. The final notification informs the residents that the landscaping has been accepted and that the residents are responsible for it. Each program involves approximately 2.5 miles of sidewalks, which impacts approximately 180 residents. Regarding the Building Renewal Fund, Assistant City Manager Duguay stated that most of the City’s facilities in question were either built or last renovated 30-35 years ago and require updating. With that, there are numerous projects proposed in the 5-year CIP. Projects for 2023 and 2024 include the City Hall Administration office renovation, interior renovation of the Council Chambers, several areas inside the Police Department, Wheaton Public Library’s chiller and West Side Plaza replacements, and two generators scheduled for replacement for both the Police and Fire Departments. City staff stated based on this discussion, they will come back to the Council during a future Planning Session to further discuss options for funding capital projects. IV. City Council/Staff Comments There were no comments.  Monday, September 11, 2023 CITY COUNCIL PLANNING SESSION MINUTES V. Adjournment The meeting was adjourned at 9:08 p.m. Respectfully submitted, Halie Cardinal