City Council Workshops

Saturday, November 17, 2018 1. Call to Order The Wheaton City Council Budget Workshop Session was called to order at 9 a.m. by Mayor Gresk. The following were: Present: Mayor Gresk Councilman Barbier Councilman Prendiville Councilman Rutledge Councilman Scalzo Councilman Suess Absent: Councilwoman Fitch City Staff Present: Michael G. Dzugan, City Manager John M. Duguay, Assistant City Manager Robert Lehnhardt, Finance Director Department Heads Public Works Superintendents I. Review of Calendar Year 2019 Draft Budget a. Municipal Band Dottie Mackie, Chair of the Band Commission, stated the 2019 band concerts will be located at the west plaza of the Wheaton Public Library, adjacent to Adams Park. She requested City workers cut back and clear low hanging branches as appropriate for attendees to be able to view the concert. She expects that seating will reach into the park. Don Cavalli, President of the Band, stated the small increase in the budget was due mainly to additional costs to store some instruments with the current band shell being demolished, the need for porta-potties and the cost of additional staff assistance for set up. Highlights for the 2019 concert season is the Band’s 90th Anniversary and Director Bruce Moss’ 40th Anniversary. Both will be celebrated next summer. In response to Council questions, Mr. Cavalli stated support from Friends of the Band equates to approximately 25% of their budget, there is approximately $30,000 in reserve and the new future stage and set up for concerts will work well for performances. b. Public Works i. General Fund Director of Public Works Laoang shared accomplishments from the current fiscal year related to the General Fund: 5.34 miles of streets paved, 27,863 square yards of pavement patched; installed 52 LED light fixtures; pruned 1,900 trees, planted 517 trees (projected); 630 speed limit signs removed & replaced in 6 weeks; and as a result of cycle pruning resident requests for demand pruning declined from 257 to 147 Budget Workshop Saturday, November 17, 2018 Page 2 of 6 over the same period last year. Regarding goals for next fiscal year, he stated they plan to review and implement a sign replacement schedule; evaluate the Guard Rail Modernization Report recommendations and develop a maintenance plan and program; plant 600 trees, prune 2,800 trees, and continue to track resident requests for demand pruning. Director Lehnhardt stated the overall Public Works budget shows a 4.2% increase from the previous year. The increase was due to the increased price of road materials from the previous year as well as contractual services cost. In response to Council questions, Staff stated that $7,500 was added to the Public Works budget for maintenance of Martin Plaza. The Forestry Division was complimented on excellent customer service provided to residents. ii. Water Fund Director Laoang shared accomplishments from the current fiscal year related to the Water Fund: completed replacement of standby generator at Countryside Pump Station; replaced 2,700 feet of water main, including replacement of 40 lead services. He stated that the department has goals of replacing 4,200 feet of water main, the oldest of which has been in use since 1925 and replacing 2,500 water meters as part of multi-year Meter Replacement Program. Director Lehnhardt stated the overall Water Fund was down $921,000 as compared to the previous year. He stated that much of the decrease is attributed to the decreased amount of water purchased from the DuPage Water Commission, as well as fewer capital improvements. In response to Council questions, Staff stated Water Division employees check inside the home for private lead services while installing the new water meters. There are 3,000 residences yet to inspect. The total number of lead services is not currently known, but residences built after 1950 will not have private lead service lines. iii. Sanitary Sewer Fund Director Laoang shared accomplishments from the current fiscal year related to the Sanitary Sewer Fund: Morse Street lift station wet well replacement construction began 11/18; Blacksmith force-main project is currently in design; SY18 project total of 16% (143,000 feet of 27 miles) of sanitary sewers being cleaned; larger diameter sanitary sewer work began 11/18; developed maintenance schedule for sanitary lift stations improving pump efficiency and reducing run times, which will increase station longevity. He stated that the department has goals of digitally logging all incoming service requests in Lucity for overhead sewer program to streamline process for residents; develop a plan to plot the service lateral in GIS for each time PW inspects and optimize sanitary sewer cleaning plan for a consistent cleaning schedule to ensure IEPA cleaning standards are met. Director Lehnhardt stated the Sanitary Sewer fund was up $1,000,000 from the previous year due mostly to increased capital outlays. Budget Workshop Saturday, November 17, 2018 Page 3 of 6 In response to Council questions, Staff stated the City continues to line the sanitary sewer mains and Staff is still working on a wet weather plan to be further defined. Furthermore, the sanitary sewer lines are not under pressure, so this lessens the degradation of the mains. Director Laoang stated that Public Works staff lines 10% of the sanitary sewer main lines annually. Staff is reviewing a more robust program to aid residents with basement back-ups which may be presented for Council consideration. iv. Storm Sewer Fund Director Laoang shared accomplishments from the current fiscal year related to the Storm Sewer Fund: large diameter storm sewer cleaning was not funded, nor executed, for SY18; 1,350 basins were cleaned for a total of 23% (projected); repaired and replaced over 60 storm sewer structures and decreased the volume of sinkholes near existing storm structures; and they are on pace to exceed the SY18 storm conduit cleaning schedule goal. He stated the department has goals of increasing productivity of hydro cleaning of storm catch basins to 1,800 annually; and increase linear footage of storm sewer televised inspections to exceed 50,000 feet annually which equates to approximately 10% of the system. Director Lehnhardt stated the Storm Sewer fund was up slightly by $95,000 as compared to the previous year. v. Parking Fund Director Lehnhardt reviewed the budgets for the Parking Maintenance-Outside the Central Business District (CBD) and the Parking Maintenance-CBD organizations. 1. Parking Maintenance – Outside of CBD Director Lehnhardt stated that this budget increased approximately $27,000 over the previous full year. 2. Parking Maintenance - CBD Director Lehnhardt stated this budget increased approximately $6,700 over the previous full year. vi. Fleet Services Fund Director of Public Works Laoang shared accomplishments from the current fiscal year related to the Fleet Services Fund: purchased 2 vehicles including a Fire Department ladder truck; deferred purchasing a replacement tree sprayer as current unit is in good condition; continued to establish benchmarks for inventory levels, eliminated obsolete parts and equipment, and recouped expenditures through auction. Regarding goals for next fiscal year, he stated that they plan to purchase 16 replacement vehicles and ancillary equipment including a sewer jetter, mechanical street sweeper, 2 large dump/snowplow trucks, and several police vehicles, and replace 2 in-ground truck hoists in the Fleet repair shop (CIP). Director Lehnhardt stated the overall budget increased $442,000 due to vehicle and equipment replacement as well as a slight increase in fuel. vii. Building Renewal Fund  Budget Workshop Saturday, November 17, 2018 Page 4 of 6 Director Lehnhardt stated approximately $12,000 is proposed for window replacement in the Public Works main facility. I. Capital Improvement Plan Assistant City Manager Duguay stated the Capital Improvement Plan (CIP) is closely tied to strategic goals #1 – Financial Stability and #2 – Quality Infrastructure. He stated the CIP is a planning tool for staff to identify public infrastructure needs and identify associated funding needs. The format of the 2019 CIP remains similar to previous ones; 13 categories, lists of expenditures and funding and project description worksheets for each prospective project. Assistant City Manager Duguay stated one minor change in 2019’s version was the proposed funded projects were listed with CY2019 first, followed by all other projects. He also explained the term “unfunded” as shown on each category’s funding sheet. The projects listed under “Unfunded – Priority” were those where the scope was clearly identified, but other projects were higher priority related to the funds available. “Unfunded – Other” projects tend to be long-term, multi-million- dollar projects where the scope was not completely identified or fully vetted by the project manager and not been formally recommended to the City Council. These projects are identified as a “placeholder” for future consideration. There are five projects in this category: Sanitary Sewer Capacity Assurance Plan: Lateral Lining, Upsizing and Storage. Also included under the Storm Sewer fund: Ditch Maintenance Program and Springbrook #1 Rehabilitation. Assistant City Manager Duguay stated there are many projects that result from the outcome or recommendations of studies. He highlighted the Pavement Management Report for scheduling road work and Lift Station Capital Improvement Plan for ongoing wet well and lift station work. Assistant City Manager Duguay reviewed the process of identifying projects for inclusion in the 2019 CIP. This included departments reviewing 2018 projects for completion status and cost. That process was followed by an exercise in prioritization for the departments/project managers and then the CIP review team prior to and during the budget discussions. Determination of a project’s importance or whether it was mandatory, had significant liability associated with it or the possibility for using grants or leveraged money for projects all played a part in setting the priority. He stated that between 2017-2020, $5,099,651 will be spent on collector street resurfacing through the LAFO/FAUS state and federal aided projects. The City is expected to pay approximately 36% of the total cost or $1,824,231. Director Lehnhardt reviewed capital project expenditures for the past several years and future years, noting the significant Downtown Streetscape expenditures. Assistant City Manager Duguay stated he would review the Water, Capital Projects, Sanitary Sewer, Storm Sewer and Parking fund status and proposed projects for CY2019 and CY2020. He stated that in general, most funds were in good position for this budget and the next year or two. Assistant City Manager Duguay stated the Water Fund is expected to have approximately $4,500,000 with $2,300,000 of proposed projects for 2019. He stated with Staff’s recommendations, the Water Fund balance would fall below the target amount by several hundred thousand dollars. However, Staff is confident regarding a strong and steady return to the target reserve over the next 2-3 years. Major proposed projects included Water Main (FAUS), Meter Replacement and Water Main through the Road, Sewer and Water Program. Budget Workshop Saturday, November 17, 2018 Page 5 of 6 Assistant City Manager Duguay stated the Water Fund is expected to have approximately $4,500,000 with $2,500,000 of proposed projects for 2020. Major proposed projects included a Stand-by generator and Water Main associated with the Road, Sewer and Water Program. Assistant City Manager Duguay stated the Capital Projects Fund is expected to have approximately $13,600,000 with $3,300,000 of proposed projects for 2019. He stated that with the incoming revenues versus the expenditures in the General Fund decreasing every year, limited funds will be transferred into the Capital Projects fund for future years. Staff reviewed the major proposed projects including discussions related to the Road Program and LAFO/FAUS, sidewalks, ash tree replacement and concrete panel replacement. Senior Project Engineer Lagvankar stated the money proposed for this project would be expected to replace a number of concrete road panels on Glencoe Street from Geneva Road to Hawthorne Lane. Assistant City Manager Duguay stated the ash tree replacement program was 76% complete and would be fully completed in CY2020. There was general discussion related to the Wheaton Avenue pedestrian tunnel at Roosevelt Road. Staff stated the City Attorney reached out to the States Attorney for guidance and an opinion regarding the alternative of lining the tunnel and if the City would be required to make the tunnel accessible if that option was selected. City Manager Dzugan stated Staff would be presenting options and a recommendation to the Council at a Planning Session early in 2019. Assistant City Manager Duguay stated the Capital Projects Fund is expected to have approximately $11,500,000 with $3,300,000 of proposed projects for 2020. He stated $925,000 was expected to be transferred from the General Fund into the Capital Projects Fund for 2020. Staff reviewed the major proposed projects including discussions related to the Adams Park Pathway Renovation project. Assistant City Manager Duguay stated the first phase for this project included the area surrounding the fountain and widening and reconstruction of the main north-south and east-west pathways. The Road Program and LAFO/FAUS, sidewalks, ash tree replacement and concrete panel replacement are also planned. Assistant City Manager Duguay stated the Sanitary Sewer Fund is expected to have approximately $4,400,000 with $1,300,000 of proposed projects for 2019. He stated $1,200,000 was expected to be transferred into the Sanitary Sewer Fund for 2019. Staff reviewed the major proposed projects including discussions related to the Forcemain and Wet Well replacements. Assistant City Manager Duguay reiterated there were three large prospective projects in the Sanitary Sewer Fund which were not fully vetted, nor the scope clearly defined yet; three elements of the Capacity Assurance Plan. He stated that while the fund was healthy at the present time with a significant reserve, the prospects and possibility of large projects would be very costly. Assistant City Manager Duguay stated the Sanitary Sewer Fund is expected to have approximately $4,200,000 with $1,100,000 of proposed projects for 2020. He stated $1,100,000 was expected to be transferred into the Sanitary Sewer Fund for 2020. Staff reviewed the major proposed projects including discussions related to the Forcemain replacement at Elm Street. Assistant City Manager Duguay stated the Storm Sewer Fund is expected to have approximately $748,000 with $350,000 of proposed projects for 2019. He stated $437,000 was expected to be transferred into the Storm Sewer Fund for 2019 and the Storm Sewer Fund was not as healthy as other funds. He stated all Stormwater Studies would be completed with the money allocated for 2019. Staff reviewed the major proposed projects including discussions related to the Road Program work and Rehab Lining. Assistant City Manager Duguay stated there were numerous projects identified by Public Works which would not be funded due to limited resources and their priority. He  Budget Workshop Saturday, November 17, 2018 Page 6 of 6 also stated that there were two “Unfunded – Other” projects in the Storm Sewer Fund including the Ditch Maintenance program and the Rehabilitation of Springbrook #1. Assistant City Manager Duguay stated the Storm Sewer Fund is expected to have approximately $787,000 with $175,000 of proposed projects for 2020. He stated $387,000 was expected to be transferred into the Storm Sewer Fund for 2020 and the Storm Sewer Fund transfer and existing reserve was such that only a few projects would be funded if additional revenue was not provided. Assistant City Manager Duguay stated the Parking Fund is expected to have approximately $2,200,000 with $125,000 of proposed projects for 2019. He stated $29,000 was expected to be transferred into the Parking Fund for 2019 and that the fund had significant reserves, but expenditures were expected to exceed revenues by 2021. He stated future consideration would need to be given to renovation or construction of additional parking structures and the reserve would be used for these significant capital projects. He reviewed the major proposed projects including discussions related to the Parking Payment Technology project where License Plate Recognition would be implemented along with an opportunity for commuters to park using pay-by- mobile applications. Assistant City Manager Duguay stated Director Lehnhardt would complete an analysis of the parking fund in 2019. Assistant City Manager Duguay stated the Parking Fund is expected to have approximately $2,100,000 with $188,000 of proposed projects for 2020. He stated $21,000 was expected to be transferred into the Parking Fund for 2020. He reviewed the major proposed projects including discussions related to the painting the two parking structures. II. Public Comments None. III. City Council/City Staff Comments Councilman Rutledge complimented City staff for their efforts on the Draft Budget. He stated he saw a tight budget with no excess funds. With the last few years of growth and expansion, he expressed concerns for the future when the economy is not as strong, and more stress will be placed on the budget. IV. Adjournment The Budget Workshop was adjourned at 10:56 a.m. Copy: Mayor and City Council City Manager City Clerk Department Heads