Finance Committee

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes Finance Committee Monday, August 17, 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 Anan Abu-Taleb, Trustees Brewer, Salzman (7:07) and Tucker Absent: None Others Present: Budget Manager Paul Gasiecki, Village CFO Craig Lesner, IT Director Alvin Nepomuceno, Village Manager Cara Pavlicek, Village Clerk Teresa Powell, Deputy Village Manager Lisa Shelley, Village Attorney Paul Stephanides, Police Chief Rick Tanksley, Parking Director Jill Velan, Tom Bunting from the office of State Representative Camille Lilly 3. Public Comment There was no public comment. 4. Approval of Minutes ID 15-276 Minutes from the August 10, 2015 Meeting of the Finance Committee. It was moved by Trustee Brewer and seconded by Trustee Tucker that these Minutes be approved as amended. A voice vote was taken and the motion was approved. 5. New Business ID 15-266 Finance Committee Review of the Draft Recommended FY 2016 Capital Improvement Plan (CIP). i. Review/Follow-up from the August 10, 2015 Finance Committee Meeting - 10 minutes ii. Review of the Equipment Replacement Fund - 20 minutes iii. Review of the Parking Fund - 30 minutes I. REVIEW/FOLLOW-UP FROM THE AUGUST 10, 2015 FINANCE COMMITTEE MEETING Village of Oak Park Page 1 Printed on 10/26/2015 Finance Committee Meeting Minutes August 17, 2015 Manager Pavlicek referred to the discussion at the Finance Committee meeting of August 10 regarding proposed $1 million improvements to the Village Hall driveway and lower level at Village Hall over the next two years. Chief Tanksley is available to discuss operational issues. Chief Tanksley described the uses of the lower level access to the police station. Manager Pavlicek said that Director of Public Works John Wielebnicki is working on some cost alternatives for repairs to the area which are not a permanent fix but might address current issues. He is reviewing items for possible deferral as the Board considers a possible relocation of the Police Department to provide more flexibility in the discussion of alternatives. More information about repair alternatives will be brought back to the Board. Trustee Brewer asked if operational needs were impacted by the current situation, as well as structural needs which might be deferred beyond the operational issues. Chief Tanksley said that his operational needs are being met and structurally there is no urgency unless the Public Works Director has concerns. President Abu-Taleb explained that there are concerns about spending this money on parking 15 cars in the underground area when there might be other parking alternatives such as a surface lot as an alternative. He also wants to know if the community would like to have a new police station in the Village in 5-15 years, saving the budgeted repair funds for future use. Chief Tanksley noted that police vehicles use parking spaces at Village Hall and commented on the need for possible facility upgrades. He agreed that a new facility could be great for officers and for citizens as well. President Abu-Taleb noted that most residents are not aware of the current situation of the police department. He suggested that repair money not be spent now but that the Board begin to consider alternatives. Trustee Salzman appreciated this discussion and noted the cramped quarters downstairs. He suggested that the Village review other Village properties that might be suitable to consider for this facility. Trustee Brewer asked that any delays not impact operations and would like to know how long structural repairs could be delayed without impacting operations. Trustee Tucker would be happy to discuss this proposal although this would have a large price tag while the Village is trying to cut costs. The Board would need to consider a time frame for this project. President Abu-Taleb Village of Oak Park Page 2 Printed on 10/26/2015 Finance Committee Meeting Minutes August 17, 2015 added that he supports investment in long term projects with a life expectancy of 25 to 50 years. He suggested that the Board have more discussions with the community about this idea. Trustee Tucker commended the Police Department on today's report of a 20% reduction in crime. President Abu-Taleb noted that the community values education and infrastructure and spends a lot on both, but none of that matters if we are not safe. If we value public safety as the number one issue, we need to seriously think about the idea of a new police facility. Manager Pavlicek added that she will work with Director Wielebnicki to recommend revisions to the line item for proposed repairs. II. EQUIPMENT REPLACEMENT FUND Manager Pavlicek turned to this week's Capital Fund review and introduced CFO Lesner to provide a general overview of the Equipment Replacement Fund before Director Nepomuceno reviews details of IT initiatives. CFO Lesner introduced the Equipment Replacement Fund, noting that this fund is a subsidiary of the Capital Improvement Fund. This covers larger projects from fire apparatus to major software purchases. CFO Lesner noted the sources of CIP revenues. Most funds are transferred from the main Capital fund. Because the fund balance had grown in 2014, the 2015 transfer will not be made as originally planned, but this fund will use monies still available from 2014. The $381,824 amount will roll over into 2016. Director Nepomuceno explained that PC and laptop replacement is on a 3-4 year cycle. Replacement of servers located at Village facilities are on a 3-5 year cycle. No printer replacements are scheduled for next year; IT likes to assure that all printers are the same model when updates are made. Director Nepomuceno next discussed the fiber infrastructure line item, a major 3 year replacement project to upgrade fiber connections linking the various Village buildings. He noted several outages that were repaired in a short time. While there have not been major outages the importance of connections among facilities are becoming more critical. This update will allow connections to remain up during power outages. Currently there is not good redundancy in case of outages. The new system will no longer rely on outside power to maintain connections and service to other facilities. HVAC and electrical work was delayed to 2016 as the new phone system installed this year required upgrades in the Village Hall power system. Village of Oak Park Page 3 Printed on 10/26/2015 Finance Committee Meeting Minutes August 17, 2015 Funds for HVAC were used for the power upgrade required by the new phone technology with some additional electrical work. Village Hall video and control access security is being completed in 2015 and includes the police department. President Abu-Taleb asked about maintenance costs of these systems; they are included in the operating budget. Trustee Tucker asked if the Civic Information Systems Commission had reviewed the fiber network project. Manager Pavlicek explained that CISC was focusing on public communications rather than the capital budget. Director Nepomuceno explained that fiber upgrades are an IT strategic item and that CISC members understand and support the need for connectivity upgrades. Manager Pavlicek asked for confirmation that CISC should review capital proposals and agree to the need; board members confirmed this. There was further discussion of the need for updates to the fiber network to upgrade the speed and distance of IT connections. Critical systems include police, water pumping, fire and garage technologies. RFPs will be issued for this project and current pricing is an estimate. Trustee Salzman clarified that this cable infrastructure is unrelated to the Comcast contract and cable system. Police mobile technology includes a large increase for next year to address parking citation costs; an RFP will be issued. Current technology is over 11 years old and license plate recognition technology dates from 2009; these are major portion of these technology upgrade expenses. CFO Lesner explained that some of the fire equipment technology may better fit under operational expenses depending on the type and cost. He explained that the major item in this section is the Finance Department's Enterprise Resource Planning (ERP) to replace the last elements of the legacy Peoplesoft system. Payroll and HR have already been replaced with new systems. This ERP project will replace the remaining finance categories. A contractor will work with Finance to develop the RFP which will cover general ledger, budgeting process, cashiering, utility billing and procurement, as well as possibly bringing payroll back in-house. President Abu-Taleb asked why payroll would be brought back in-house, and advised against it. CFO Lesner explained that Finance merely wants to evaluate whether such a move would make sense given newer software with more advanced capabilities for municipalities, especially since ADP's contract will end in 18 months. Peoplesoft is still used for the general ledger and audit; utility billing uses an even older system. President Abu-Taleb asked if these changes would increase efficiency; CFO Lesner confirmed this. Video and audio equipment in the coming year will be part of the operational budget. The DCS department CityView project is being Village of Oak Park Page 4 Printed on 10/26/2015 Finance Committee Meeting Minutes August 17, 2015 completed this year. III. PARKING FUND Manager Pavlicek introduced the Parking Fund and explained that this covers only capital items; operational items will be addressed later. CFO Lesner noted that the revenue estimates for 2015 are not yet available and original budget numbers are entered as placeholders for the present. The Fund has been improving steadily with final repayments to the General Fund in 2014. The TIF currently covers debt service for the Holley Court garage. When the TIF expires in 2018-2019, this fund will need to have reserves to cover debt service.The ending fund balance of $28.7 million includes cash and non-cash assets. Director Velan reported that this fund is on track for $6.4 million in revenues in 2015, and depending on what is approved with the operating budget, and $6.5 million in 2016. The permit system upgrade began in 2015, but is only in the consultant phase this year, so the bulk of the expense has been moved to 2016. Director Velan explained that all three garages (Lake and Forest, Avenue and Holley Court) will have new equipment. The permit system upgrade will integrate five separate databases previously developed independently before permitting software was available in the marketplace. The current system requires a separate check of these databases for issuance of permits. Trustee Salzman asked if this would allow reduction of headcount in the Parking Department. Director Velan explained that this will improve customer service, reduce errors and allow for decentralization of services to the garages and elsewhere, making it easier for the end-user customer as well. Director Velan explained that the consultant they will work with on software has special expertise in parking issues. The revenue control equipment line item includes paystations and gates for the three garages being installed this year. A garage study and maintenance program has been proposed for 2015 and 2016 with an RFP and maintenance study for the structures in 2016. In the past regular maintenance to extend the life of garages has not been addressed on an ongoing basis. Board members suggested that the word "study" be replaced by "program" or "review". President Abu-Taleb asked if Director Velan was comfortable with the numbers. CFO Lesner explained that these numbers were added by the Finance Department as placeholders until more detailed information is available. Manager Pavlicek noted that approximate revenue information was estimated within the context of the five year budget plan to provide some level of detail as part Village of Oak Park Page 5 Printed on 10/26/2015 Finance Committee Meeting Minutes August 17, 2015 of this section of the presentation. President Abu-Taleb asked about negative fund balances. CFO Lesner confirmed that these numbers came from the audit and that depreciation was part of the calculation. President Abu-Taleb noted the $600,000 increase in contractual services and commented that increases in revenues always are accompanied by increases in expenses. Manager Pavlicek noted that the details of contractual services would be covered when the operational budget is reviewed. Trustee Salzman proposed a more detailed study of contractual services as part of the overall budget review. Security camera and intercom upgrades include Village Hall as well as the garages, and a joint RFP is being prepared. The online pass system upgrades were begun in 2014 to be completed in 2015 with some funds for 2016 in case there some elements still in process. These additional upgrades will include passes for daytime passes, construction and other extended passes. Director Velan reported that from March through the end of July 2015 overnight pass revenues were $153,762, which covers costs of the system. Night passes for June included 8,515 online versus 4,315 by phone. The average number of passes per plate was 1.5. Director Velan noted that the July numbers are lower than June due to the lifting of the pass requirement for the July 4th holidays. A pay-by-phone option will be available by January. Trustee Tucker asked about the cost of the new garage construction at Lake and Forest originally at $10 million, with an increase to $10.6 million budgeted for 2015. The additional cost was explained. For the bike station line item Manager Pavlicek reported that one additional bike station (for a total of 13) has been added in north Oak Park to the total $161,000 originally budgeted. The original cost (the Village's portion of the total) was increased by 65k for the additional station, bringing the Village's portion of the total to $230,400 in addition to the state grant covering the rest. There was discussion of whether another station could be moved to north Oak Park rather than adding a station; moving another station would not be optimal. In phase two of the bike project additional stations at the north and south ends of the Village can be added. President Abu-Taleb asked if there is a system for residents to use their phones to call in cars for overnight passes. Director Velan has asked Passport Parking to investigate; they are developing a system as none is yet available. The challenge is that parking is not allowed in certain areas of Oak Park and that detail needs to be built into the system. Village of Oak Park Page 6 Printed on 10/26/2015 Finance Committee Meeting Minutes August 17, 2015 Director Velan concluded by noting the ongoing parking lot resurfacing program which is coordinated each year with street and alley resurfacing. Manager Pavlicek reviewed upcoming budget meetings and other meetings on the calendar; possible alternate dates may be considered. 6. Old Business 7. Adjournment It was moved by Trustee Tucker and seconded by Trustee Salzman to adjourn. The motion was approved. The meeting was adjourned at 8:15 P.M. on August 17, 2015. Village of Oak Park Page 7 Printed on 10/26/2015