Special Meeting Board of Trustees

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Monday, August 15, 2016 6:00 PM Lorraine G. Gerhardt Community Room Special Meeting Board of Trustees Village President Keith Giagnorio, Village Clerk Sharon Kuderna, Trustee Dan Whittington, Trustee Mike Fugiel, Trustee Reid Foltyniewicz, Trustee Bill Johnston, Trustee Robyn Pike and Trustee Bill Ware Special Meeting Board of Trustees Minutes August 15, 2016 I Call to Order The special meeting of the President and Board of Trustees of the Village of Lombard held on Monday, August 15, 2016 in the Community Room of the Lombard Village Hall was called to order by Village President Keith Giagnorio at 6:13 pm. Pledge of Allegiance Village Manager Scott Niehaus led the Pledge of Allegiance. III Roll Call Present 7 - Keith Giagnorio, Sharon Kuderna, Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware Absent 1 - Dan Whittington Staff Present: Village Manager Scott Niehaus Director of Finance Tim Sexton Assistant Director of Finance Jamie Cunningham Director of Public Works Carl Goldsmith Assistant Director of Public Works Dave Gorman Utilities Superintendent Brian Jack Operations Superintendent Tom Ellis Interim Fire Chief Pat Gericke Assistant Village Manager Nicole Aranas Executive Coordinator Carol Bauer Finance Committee Members Mary Cation and Jay Tovian IV Public Participation V Agenda 160348 Overview of the Water & Sewer Operations & Maintenance Budget Trustee Reid Foltyniewicz, Chairperson of the Finance and Administration Committee, thanked Scott Niehaus, Tim Sexton, Jamie Cunningham and staff for all of their hard work in preparing the overview of the Water & Sewer Operations and Maintenance Budget as well as the proposed FY 2017 Public Works Budget. He introduced Finance Committee members Jay Tovian and Mary Cation. Village Manager Scott Niehaus noted the Village Board had adopted the Long Range Plan that the Finance and Administration Committee Village of Lombard Page 1 Special Meeting Board of Trustees Minutes August 15, 2016 had been working on since last November. Two items that were recommended by the Finance Committee were to increase the Places for Eating Tax and to phase out the Senior Taxi Cab Subsidy Program. Communications efforts have been completed and is ready to be disseminated relative to these changes. In the next few weeks, the Finance and Administration Committee will begin reviewing the FY 2018 budget. It has been recommended that staff do a review of the budget midway through the fiscal year. The proposed department budgets for FY 2017 have been more streamlined due to the work that the Finance and Administration Committee and staff have done. Director of Finance Tim Sexton noted the following: A water and sewer rate increase of $0.30 per 1,000 gallons is recommended beginning January 1, 2017. The increase will be used for water and sewer maintenance and operations and for collection and treatment of wastewater. The total FY2017 proposed Water & Sewer Rate with the $0.30 increase is $14.60 per 1,000 gallons. The Village of Lombard would receive $4.86 per 1,000 gallons (33% of the total rate) for operating and maintenance activities and capital improvements. The remaining $9.74 is paid to DuPage Water Commission for Lake Michigan Water and Glenbard Wastewater Authority for collection and treatment of wastewater. The capital rate portion of the water and sewer rates is $1.20 per 1,000 gallons of water and has not increased since February 2006. The Village is currently conducting a water and sewer rate study to help determine future rate increases. The information gathered from this study will provide the Village with data to effectively align future revenues and expenses based on planned infrastructure upgrades. The objective of this plan is to raise public understanding of 1) What factors caused the Water & Sewer rate increase for Lombard; 2) How much the increase will change the average monthly bill; 3) Factors Village Staff considered to calculate the water rate increase; 4) What percentage of a Water & Sewer bill goes to the Village of Lombard. The objectives are to 1) Inform the residents of the history of the Water & Sewer rate increase; 2) Clarify by example, that if a residential customer that uses 4,000 gallons of water per month, this increase of $0.30/1000 gallons will cost an additional $1.20 per month; 3) Clarify by example, that if a residential customer that uses 4,000 gallons of water per month, this increase of $0.30/1000 gallons will cost an additional $1.20 per month; 4) Prepare residents adequately for a proposed Jan. 1, 2017 Water & Sewer rate increase; 5) Be sure residents understand that the difference between the capital rate portion and the water and sewer operating costs; 6) The capital rate portion of the water and sewer rates is $1.20 per 1,000 gallons of water and has not increased since February 2006. The audience this communications plan is directed toward includes: all residents and all businesses; media - Lombardian, Suburban Life, Village of Lombard Page 2 Special Meeting Board of Trustees Minutes August 15, 2016 Daily Herald, Chicago Tribune, Chicago Sun-Times; Radio/TV (WBBM, ABC7, NBC5, WLS, CBS2, WGN9, FOX); Community Leaders - Mayor/Board of Trustees, Chamber of Commerce and Lombard Town Centre. The key messages are: 1) The recommended total Water & Sewer rate increase for the Village of Lombard FY17 is $0.30 per 1000 gallons used; 2) The FY2017 proposed Water & Sewer rate is $14.60 per 1,000 gallons. The Village of Lombard would receive $4.86 per 1,000 gallons for operating and maintenance activities and capital improvements; 3) About 67% of the FY2016 proposed expenses in the Water & Sewer Fund are payments to the DuPage Water commission and Glenbard Wastewater Facility for purchase and delivery of Chicago water and the processing of wastewater; 4) The capital rate portion of the water and sewer rates is $1.20 per 1,000 gallons of water and has not increased since February 2006. In an effort to keep residents, business, community leaders and the media informed of the Water & Sewer rate increase, the Village of Lombard has/will execute an ongoing and comprehensive communications plan containing the following: 1) Write a follow-up press release and send to media; 2) Post press release on Village website; 3) Include article in upcoming issue of Lombard Pride; 4) Use social media to share information and respond to questions; 5) Create FAQ sheet for employees and for resident access. 160333 Proposed FY 2017 Budget for the Lombard Public Works Department Director of Public Works Carl Goldsmith provided the following for the proposed FY 2017 budget for the Public Works Department: Changes to the budget from FY 2016 will be noted; cost centers or line items identified where the proposed FY 2017 contains significant increases or decreases and challenges noted facing the Lombard Public Works Department. The proposed FY 2017 Public Works budget, including General Fund, Hotel/Motel, Community Recycling, SSA #3, Fleet Services and Water/Sewer Fund is $21,773,504. This represents an increase of $219,650 over the FY 2016 Public Works Budget. The increase in the FY 2017 budget over FY 2016 budget represents an increase of 1.019%. Substantive Changes The Public Works Department continues to provide services in an efficient and cost effective manner in accordance with Village Board, Administrative and Departmental policies. While no significant changes in operations or procedures were made in 2016, the Department continues to perform capital improvements that affect the Village. The Department strives to make improvements to the Village infrastructure in the most cost effective manner. Village of Lombard Page 3 Special Meeting Board of Trustees Minutes August 15, 2016 In 2016, the Village completed stormwater projects at Vista Pond, Terrace View Pond, expanded the Hammerschmidt Commuter Parking Facility, completed the construction of the Fairview Lift Station, completed neighborhood reconstructs in the Lombard Meadows Subdivision, began the Roosevelt Road Watermain Lining Project, will have constructed the Water Transmission Main Project, replaced of Hill Avenue Bridge, and completed many maintenance projects on Village owned infrastructure. In FY 2016, the Village began the implementation of the Asset Management System, which will allow more effective forecasting and tracking of village assets. The Village converted an existing maintenance worker position into the Asset Management Administrator to assist with the management of the system and data. Areas of Increase/Decrease in the Budget The Public Works Building cost center saw a reduction of $6,090 in Property/Building Maintenance, which reflects the change in level of service (LOS) for the cleaning of the Public Works facility. As part of the Long Range Financial Plan, the Village reduced the frequency of cleaning. The FY 2016 budget (101.270.310.73110) contains additional funding of $2,000 for the purchase of an additional concrete saw that is lighter and more maneuverable than the current saw. The new saw is easier to operate and lowers the potential for a worker’s compensation claim. The Street Maintenance Supplies (101.270.113.73310) has been increased by $23,500 that will be used to procure three new small tools. The Department will replace a calcium pump at the Village complex, replace an air compressor and purchase additional trip edge snow plow blades. The Street Division’s Contractual Services for Other Professional/Technical Services (101.270.310.75350) has decreased by $7,280 for reduced hauling of snow in the windrow areas. This reflects the Village’s expenses related to the recent snow efforts. The Street Division’s Contractual Services for Misc. Contractual Obligations (101.270.310.757700) has increased by $7,040 due to the increased cost for hauling and disposal of street sweeping debris. Despite a reduced LOS for sweeping, the costs have increased dramatically. The Operating Supplies cost center in Traffic Signals/Signs/Markings (101.270.320.73110) has been increased by $10,000 to fund the installation of bicycle signage, add mast arm signage in locations that do not have existing signage and cover additional compliance with retroflectivity standards for regulatory signs. The Equipment Service Contracts cost center (101.270.320.75730) has been decreased by $16,120, but the Equipment Maintenance (101.270.320.75740) has increased by $14,000. Staff is recommending separating the base contract costs and the repair costs for streetlights to better track the cost of operating the Village owned traffic signals. Village of Lombard Page 4 Special Meeting Board of Trustees Minutes August 15, 2016 Training and Travel in the Forestry and Urban Landscaping cost center has increased by $7,125 to cover the cost of training two (2) new Forestry Technicians and to allow the Supervisor to attend the National Safety Council Training Program. The Village has increased the allocation of salaries in the Hotel Motel Tax Fund to cover staff time dedicated to the planning and management of the various community events. A total of $25,600 has been included in the fund. The FY 2017 budget contains additional funds ($100,000) for the installation of a Public Information Sign at the southeast corner of Main Street and Wilson Avenue. The changeable copy sign will replace the current banner displays and allow greater dissemination of Village information to motorists. The Community Recycling Fund has an increase of $6,320 due to the allocation of an additional 5% of the Assistant Director of Public Works’ time to manage the Solid Waste Contract and the Recycling Extravaganza. The Liability Insurance Fund has increased by 17% or $37,430 due to claims history and an ongoing worker’s compensation claim. In accordance with the Long Range Financial Plan, the FY2017 budget reflects additional salary allocations in the Water & Sewer Fund. The Regular Wages account has increased by $84,090. An offsetting reduction is provided in the General Fund. The Village anticipates a reduction in the volume of water sold in FY2017. This is due to energy efficiency appliances and conservations strategies on the part of customers. The Village anticipates a reduction of $25,125 in purchased water from DuPage Water Commission. Due to the purchase of a leak correlator in FY 2016, the Village has reduced the Water Distribution Operating Supplies cost center (510.270.355.73110) by $13,900. The unit will allow the Village to trace leaks in-house, which will decrease the time for locates and increase the accuracy of the digs. Over time, the Village will reduce the contract costs for leak detection. In conjunction with the decrease in Operating Supplies, the Other Professional/Technical Services (510.270.355.75350) has been reduced by $10,000 as the Village will be performing many leak detections in-house. Professional Services in the Glenbard Wastewater Facility has increased by $82,340 (2%) due to the current operations program and anticipated capital improvements program. The Underground Utilities Division intends to purchase of a new sewer televising camera. The Sanitary Sewer Maintenance Operating Supplies (510.270.380.73110 account includes an additional $12,050 for the purchase. The Lift Station/Pump Station Maintenance cost center has increased by Village of Lombard Page 5 Special Meeting Board of Trustees Minutes August 15, 2016 $5,200 to cover the cost of a LED balloon light and additional degreaser products. The Vehicle Parts and Supplies line item (610.270.345.73220) in the Fleet Services budget has decreased by $50,000. This decrease is based upon the number of vehicles to be purchased and set-up in FY 2017. Challenges of the Coming Year The most significant challenges that lie ahead for the Public Works Department relate to the implementation of the Asset Management System and the continued ability to cost effectively provide services to the community given increased unfunded mandates and regulations. With the potential of the implementation of the Public Rights-of-Way Guidelines (PROWAG) amendments, this would significantly alter the requirements that the Village is bound to for accessibility on public sidewalks. Technology and the deployment of additional field units continues to be a challenge in finding the right tools for the climate and environment that public works personnel are exposed to is a challenge on a going-forward basis. A continued challenge for the Public Works Department is the level of maintenance that is required to maintain the Village’s aging facilities. Significant resources, both staffing and financial, are required to ensure that the facilities do not fall behind in the maintenance levels. Long term planning is required to ensure that the facilities are meeting the demands of the various operating departments. Village Manager Scott Niehaus asked if there were any questions relative to the on-going construction projects. The Highland Avenue Bridge project is ahead of schedule and has re-opened. The Roosevelt Road Watermain Lining project is moving forward. The Finley and Roosevelt project should be open by August 22nd. Staff has met with the School Districts and provided them with maps of the construction projects, detour routes and construction schedules. VI Adjournment A motion was made by Trustee Mike Fugiel, seconded by Trustee Reid Foltyniewicz, that the Special Meeting of the President and Board of Trustees of the Village of Lombard held on Monday, August 15, 2016 in the Community Room of the Lombard Village Hall be adjourned at 7:01 p.m. The motion carried by the following vote: Aye: 5- Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware Absent: 1- Dan Whittington Village of Lombard Page 6