Finance Committee

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes Finance Committee Monday, October 14, 2019 6:30 PM Room 130 1. Call To Order Village President Abu-Taleb called the Meeting to order at 6:30 P.M. 2. Roll Call Present: Finance Committee Members Village Trustee Boutet, Village Trustee Moroney, Village Trustee Taglia and Village President Abu-Taleb Also Present: Village Trustee Andrews, Village Trustee Buchanan, Village Trustee Walker-Peddakotla, Village Manager Pavlicek, Village Attorney Paul Stephanides, CFO Steve Drazner, Public Works Director John Wielebnicki, Village Engineer Bill McKenna, Police Chief La Don Reynolds, Fire Chief Tom Ebsen, IT Director Alvin Nepomuceno, CISC Member David Baker, Director of Development Customer Services Tammie Grossman 3. Public Comment David Gentry. Mr. Gentry spoke about the need for fiscal discipline and proposed a priority budgeting process. James Thompson. Mr. Thompson discussed the Transportation Commission's 2020 Work Plan and expressed concern that funding for the Greenways Bike Plan or any replacement for Divvy was removed from the CIP. He requested that this be put back. Kitty Conklin. Ms. Conklin discussed D97's budget planning process and encouraged the Village to look at assumptions when preparing their budget. She gave examples. Sylvia Schweri. Ms. Schweri also expressed concern regarding the removal of the Greenways Bike Plan from the 2020 CIP. 5. New Business Village Trustee Buchanan read a short statement of apology regarding her frustration during the October 7 Board Meeting. She thanked Village Trustees Andrews and Boutet and Village President Abu-Taleb for their support as well as residents and the Oak Park police. A. ID 19-307 Finance Committee Review of the Recommended Five Year Capital Improvement Plan (CIP) 2020-2024. i. Overview of the CIP Process (5-year capital plan) 10 minutes ii. Review of the Main Capital Fund 20 minutes Pages 7-61 Village of Oak Park Page 1 Printed on 10/25/2019 Finance Committee Meeting Minutes October 14, 2019 iii. Review of the Building Improvement Fund 20 minutes Pages 78-162 iv. Review of the Fleet Fund 10 minutes Pages 167-173 v. Review of the Equipment Replacement Fund 20 minutes Pages 174-191 vi. Review of the Sustainability Fund 10 minutes Pages 73-77 vii. Review of the Water and Sewer Fund 15 minutes Pages 207-242 viii. Review of the Parking Fund 15 minutes Pages 193-206 ix. Review of the CDBG Fund 10 minutes Pages 68-72 Overview of the CIP Process (5-year capital plan) Village Manager Pavlicek commented that the Capital Improvement Plan is not a budget appropriation document, but is a five-year plan identifying capital projects that staff will be putting forward for review with the Board. The first year of the plan will reflect what the Board will adopt in the 2020 Budget and will guide staff's work. Pricing will not be finalized until the projects are presented to the Board, which they will authorize to go forward, defer or withdraw. Staff has ranked the projects A through F and N/A; she explained the rankings. Village President Abu-Taleb referenced Ms. Conklin's public comment and asked for confirmation that staff looks at salary increases and other assumptions when drafting the budget. Village Manager Pavlicek stated that they do. She also explained for the benefit of Village Trustee Walker-Peddakotla what a "B' project is in terms of priority and how some projects get pushed back due to fiscal restraints or to open up others based on need. CFO Steve Drazner gave an overview of revenues and expenses in the Main Capital Fund. The largest revenue in the fund is Bond Proceeds at $17.5 million, the largest expense is Capital Outlay at $19.5 million. Village Manager Pavlicek explained the Ride Share Tax for the benefit of Village Trustee Boutet. She also noted that cannabis tax was added to the capital budget. Review of the Main Capital Fund Director of Public Works John Wielebnicki stated that the Main Capital Fund is the parent fund of the Building Improvement, Fleet, and Equipment Replacement Funds. Staff looked hard at prioritizing projects this year and tried to cut down their expenditures. He noted that many projects have been deferred from 2020 to future years in the CIP. Several projects have already been committed to, however. Village Engineer Bill McKenna explained that other sources of funding outside the Capital Fund are noted on each individual Project Sheet. He highlighted some of the major projects scheduled for 2020. The first project described is Alley Replacement and Patching at $1 million, which is a noticeable decrease from previous years. He discussed a $300,000 grant the Village has through an IGA for green alleys. A map of the alleys being replaced is on the Village website. The next project is Augusta Street Traffic Calming. The expenditure for 2020 is $25,000 for design work with the remainder Village of Oak Park Page 2 Printed on 10/25/2019 Finance Committee Meeting Minutes October 14, 2019 scheduled for 2021. Residents are concerned about traffic patterns and crossing issues, primarily from Ridgeland to Austin, as there are several offset intersections. Staff is in the process of collecting data. Village Trustee Moroney suggested painting school crossing intersections in colorful paint to remind people to slow down. Village Trustee Boutet agreed. The next larger project in 2020 is Austin Boulevard Resurfacing. The Village has an IGA with Chicago, which has the City repaving the north part of Austin from Lake Street to North Ave. and will be done in two phases. The Village will be starting a water project from Lake Street to Chicago Avenue this fall and finishing up in spring of 2020. The Village will be repaving the south portion from Roosevelt to Lake Street in 2020. They can also defer the project if needed and try to secure Federal funding. Village Manager Pavlicek commented that staff is recommending this be done in conjunction with Chicago's investment, although the Board does have discretion. Mr. McKenna discussed the Cap the Ike project. This is 100% Federally funded. Staff is waiting for direction from the State to begin. The next project discussed was the Home Avenue Bridge Deck Replacement, which is also Federally funded. Staff will issue an RFP later this year. The project can commence independently of the Eisenhower reconstruction and the Federal grant funding cannot be reallocated to another project. The next project scheduled for 2020 is Lake Street Streetscaping and Resurfacing. Staff is going out for bid this week for resurfacing from Euclid to Austin. Final pricing will be brought before the Board by November. Streetscape is estimated at just over $10 million. Funding from the State would be lost if the project is deferred. Mr. McKenna described components of the streetscape. The next major project discussed was Madison Street Traffic Calming. This is actually for collecting traffic data on Jackson and Washington, as well as side streets that intersect Madison. This project will commence in spring of 2020 and continue through 2022. The next project is North Avenue Streetscape Design. The Village has been working with the City of Chicago on studies regarding transportation and other items. Funds are contingent upon recommendations agreed to. The Village and Chicago will split costs 50/50. The funds allocated for the Village's share reflect no grants, which staff will be applying for. Village Manager Pavlicek expressed optimism regarding the likelihood of receiving those funds. The next highlighted project was Oak Park Avenue Streetscaping and Resurfacing, as discussed in September. Design work is starting in 2020 with construction planned in 2021 and streetscaping in 2022. The final project discussed was Resurfacing of Various Streets, which has been reduced from what was typically done in the past few years. Mr. McKenna discussed the long term viability of this level of funding. Mr. Wielebnicki stated that they typically try to balance main streets with local streets from year to year. Village Trustee Moroney discussed bicycle projects. He suggested the Transportation Commission look into a dedicated bike lane on the east side of Ridgeland from North Avenue to Roosevelt Road. He also asked why $2 million for the North Marion Street Streetscaping was still in the CIP. He would like it removed. Village Trustee Boutet agreed. Village Trustee Boutet discussed phasing out planters around the Village with others of a different design. Mr. Wielebnicki commented that with limited funding, they are being replaced as needed with the same design. However, newer styles of planters are being put in as part of various streetscape projects. Village Trustee Boutet asked what residents are asking for in terms of bike lanes that the Board isn't hearing about. Mr. McKenna stated that staff met with the Transportation Commission about recommendations regarding locations to implement the Greenways Plan; they are looking at the area around OPRF High School for the first phase. Village Trustee Walker-Peddakotla asked if this can be incorporated into work already being done on streets. Mr. McKenna explained the requirements needed to add bike lanes. Village of Oak Park Page 3 Printed on 10/25/2019 Finance Committee Meeting Minutes October 14, 2019 Review of the Building Improvement Fund Mr. Wielebnicki stated that this Fund supports repairs for all Village owned buildings. Expenditures have been scaled back for 2020. Projects include replacement of the Police Station and renovations of the restroom, locker room and bunk room at Fire Station 3, as it is currently designed as one gender. Police Chief La Don Reynolds stated that the Police Station was built in 1975 as a temporary location. In terms of statutory needs and accessibility, it has outlived its useful life. Village Manager Pavlicek stated that there are placeholders in the budget for assessment; several scenarios will be presented to the Board. The $4 million placeholder is the maximum that would be expended if the Board decided to move to design development and do significant repairs. Village Trustee Boutet asked if these major projects are coordinated with other taxing bodies to ease the impact on the community. Mr. Drazner commented that a bond would be issued and discussed other items of impact. He acknowledged that this would warrant a discussion in greater detail at a later time. Village Trustee Moroney stated that the parking lot at Village Hall was just completed. Any siting options for a new police facility would have to respect the integrity of that project. He also asked where funds for this would come from and that possible revenue sources other than going to bond should be explored. In addition, the Village owes it to the community to show them the need for this. He also spoke against investing in the current facility. Village Trustee Boutet noted that the police do not work inside the building most of the time. She suggested perhaps moving some of the non-critical functions to other parts of the building. Mr. Wielebnicki described the facilities plans, which track when systems need replacing, new roofing, etc. Fire Chief Tom Ebsen stated that the South Fire Station was built in 1961. Staff is looking to split the communal bathroom and locker room into two non-gender specific bathroom/locker rooms, as well as separating the bunk area. Review of the Fleet Fund Mr. Drazner gave an overview of the fund. Mr. Wielebnicki stated that staff is requesting replacement of six police cars and one animal control van. While there is no expenditure in 2020 for a fire engine, staff will be coming to the Board next year for approval of the purchase of one in 2021. In 2021, they will request another to be purchased in 2022. In addition, a garbage truck will need to be replaced in 2020. Mr. Drazner clarified that vehicles are financed and not bought outright. Review of the Equipment Replacement Fund Village Manager Pavlicek stated that an IGA with D97 will be coming to the Board regarding replacement of the Village's fiber network that will include D97's facilities. IT Director Alvin Nepomuceno discussed the existing network and its limitations. He discussed how the Village has come to rely on it for their day to day operations, as well as emergency operations. He believes it is time to replace it. Staff had invited other taxing bodies to join them in the project and only D97 agreed to participate. It has been recommended by consultants that the Village own the network, as the lifespan continues to grow; it is currently at 40 years. Mr. Nepomuceno confirmed the cost is $2.5 million. Village Trustee Taglia asked what portion of that will be recovered from D97. Village Manager Pavlicek stated that the IGA will be for 10 years with an 10 year successor Village of Oak Park Page 4 Printed on 10/25/2019 Finance Committee Meeting Minutes October 14, 2019 agreement. Over 20 years, D97 would pay approximately $16,000 annually, which is one quarter of the cost. However, the Village would still have ownership of that network and another successor agreement could be looked at. Village Trustee Walker-Peddakotla asked why the other taxing bodies were not included. Mr. Nepomuceno replied that D97 was the only interested party. Village Manager Pavlicek added that it is likely because they have multiple sites. Village Trustee Andrews added that D200 is only one building and didn't see the value and the Park District had stated that they do not use the internet that much. Village President Abu-Taleb asked whether it would make sense to encourage the Park District to be included. Village Manager Pavlicek stated that the structure of the IGA would allow the Village to bring others on, but attempting to do that right now would delay the project and the schools have a great sense of urgency regarding this. Mr. Nepomuceno described how the system will connect all Village and school facilities, with the ability to add other locations. The power source will be inside Village Hall, which is an advantage over the current system of electronic components outdoors. He also stated that this is working towards SMART City infrastructure. CISC Member David Baker discussed the benefits to the Village, such as increased speed, access to open data and support of longer distances. It will also allow the Village to bring in other services as well as support leasing of the system from other taxing bodies and other third party entities. He described what can be done with SMART Cities. Village Trustee Andrews spoke in support of this, noting it is very forward thinking. Review of the Sustainability Fund Village Manager Pavlicek stated that the sources of revenue for this fund are the 10 cent fee for single use bags and the 3/10 cent per kWh. The Streetlighting Replacement Program has been authorized; cost may change as installation continues. VOP Sustainable Infrastructure is about using more sustainable materials in regular paving projects. Staff is looking at On-Site Community Solar information and found that the Village's ability to use capital funds for that is limited. She discussed other alternatives for funding solar using sustainability funds but noted that the on-site option would have to be part of the Regular Budget. Village Trustee Boutet discussed a new program through the Department of Energy and described how the funding works. She will get additional information and bring that back. Village Trustee Taglia commented that the bag fees aren't decreasing. Village Manager Pavlicek commented that it looks as though the part of the population that has shifted has stabilized. Review of the Water and Sewer Fund Mr. Drazner gave an overview. Mr. Wielebnicki stated that a water and sewer rate study is underway. The last increase was in 2014 and rates are valid through the end of 2019. There are a number of larger projects and staff wants to ensure there is enough revenue to fund them. He noted that some of the larger paving projects include water components, such as Lake Street, Oak Park Avenue and Austin. In addition, energy efficiency improvements to the Central Pumping Station are scheduled for 2020. Other improvements include flood mitigation improvements. Village Trustee Walker-Peddakotla expressed concern regarding the projected water rate increase and the placeholder of 8%. Mr. Wielebnicki commented that typical increases are 5% to 7%. He spoke about the larger projects coming up. Village Trustee Walker-Peddakotla asked staff to be cognizant of high rates. Mr. Wielebnicki commented that this is a 100 year old water system and described some of the issues, such as leaks, lead, etc. Village Manager Pavlicek added that a survey regarding rates in other communities is part of the study. Mr. McKenna discussed Flood Mitigation Improvements. A sewer study was conducted in 2011-2012 following a number of large rain events resulting in sewer backup throughout Village of Oak Park Page 5 Printed on 10/25/2019 Finance Committee Meeting Minutes October 14, 2019 the community. That study resulted in a list of recommendations for improvements to reduce the severity of backup. Staff has since been working through those recommendations; work on Berkshire and on Fillmore has been completed. What is being proposed for 2020 is LeMoyne Avenue between East and Ridgeland; design work is underway. He discussed another major project on East Avenue planned for 2022 and 2023. Mr. Wielebnicki described the Lead Water Service Replacement Program on the Public Side, which will allow staff to hire a contractor to replace that portion of the lead service that is the Village's responsibility and take that burden off staff. In addition, a Lead Water Service Replacement Program on the private side will be available through CDBG that will allow those who are income eligible to take advantage of the program from the shut off valve on the parkway to the home. He discussed the possibility of future state mandates that may require the Village to replace all lead water service, whether public or private. Review of the Parking Fund Mr. Drazner gave an overview, noting there is a deficit budgeted for next year, although the Village has reserves to cover that. Village Manager Pavlicek explained how Enterprise Funds work. Director of Development Customer Services Tammie Grossman discussed projects for 2020. These include fiber infrastructure upgrades to three garages, repairs to the OPRF HS garage elevator due to a water leakage issue, maintenance of floors two and three of the Holley Court Garage, general resurfacing and landscaping of Village owned and leased parking lots, continuation of changing out coin meters to on-street pay stations, upgrades of on-street signs and parking wayfinding signs and replacement of one of the technician vans. Village President Abu-Taleb stated that parking is a topic that most people are still not satisfied with. He asked that the Board and staff consider a couple of things. One is to change the late fee for parking tickets to $5 for each month it is late rather than doubling the fine after two weeks. He also would like to increase the number of $7 overnight street parking permits. He discussed the risk of revenue from fines decreasing. However, the Village ends up writing off some of the debt from unpaid fines anyway. He would like it to be more reasonable than a 100% increase in two weeks, as well as making it easier for people to park. Review of the CDBG Fund Mr. Wielebnicki described the programs; Alley Improvements, Street Resurfacing, Sidewalk Replacement and Lead Water Service Replacement-Private. Village Trustee Boutet commented that overall, there are many complaints about traffic and speeding. She asked if there is anything that can be done. Mr. McKenna commented that there are nine petitions pending but they are not indicative of problems backed by traffic data. A lot of what they are seeing is resident driven and doesn't represent an overall problem in the Village. Staff is addressing those internally and present items to the Board as they see fit. Village Manager Pavlicek discussed speed cameras, noting they are only allowed in Chicago. It is difficult to place a police officer near every school, etc. Village President Abu-Taleb discussed how, in order to provide services to residents, the Village needs to balance these expensive with revenues. 6. Adjournment It was motioned by Village Trustee Taglia, seconded by Village Trustee Moroney, to adjourn. A voice vote was taken and the motion was approved. Meeting adjourned at 8:36 P.M., Monday, October 14, 2019. Village of Oak Park Page 6 Printed on 10/25/2019 Finance Committee Meeting Minutes October 14, 2019 Respectfully Submitted, MaryAnn Schoenneman Deputy Village Clerk Village of Oak Park Page 7 Printed on 10/25/2019