City Council Planning Sessions

Monday, July 22, 2024 I. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Suess. The following were: Physically Present: Mayor Suess Councilman Brown Councilwoman Bray-Parker Councilman Clousing Councilwoman Robbins Councilman Weller Absent: Councilman Barbier City Staff Present: Michael G. Dzugan, City Manager John M. Duguay, Assistant City Manager Robert Lehnhardt, Director of Finance Vince Laoang, Director of Public Works Al McMillen, Water Superintendent Kyle Moss, Finance Analyst Halie Cardinal, Public Relations Coordinator Present Electronically: Erik Berg, Management Analyst II. Approval of Planning Session Minutes – July 8, 2024 The City Council approved the July 8, 2024, City Council Planning Session Minutes. III. Lot #3 Art Wall Options Assistant City Manager Duguay stated that the proposed Art Wall is located at the northwest corner of Lot 3, at Main Street and the Illinois Prairie Path, adjacent to the new pavilion. He noted that the proposed plan is a 2-phased project, with Phase 1 involving installing a static mural and Phase 2 adding a digital projection system. Should the Council choose to move forward, staff will initiate a Request for Proposal process to determine possible options for displaying digital artwork on the Art Wall at night. Once the proposals are received, Staff will bring the options to a future Planning Session to share the information and costs. He stated that the Fine & Cultural Arts Commission and staff are seeking the City Council’s feedback and consensus regarding proceeding with this project. Fine & Cultural Arts Commissioner Randy King stated that the Commission is proposing that the mural installed in Phase 1 would have the word “Wheaton” as the primary focus of the piece. Based upon extensive research that included communicating with more than 15 artists and reviewing comparable municipalities’ murals, the commission recommended internationally recognized artist Peru Dyer Jalea  Monday, July 22, 2024, CITY COUNCIL PLANNING SESSION MINUTES (PERU143) for this project. He stated that PERU143 has completed art for municipalities across the globe, and his artwork features geometric shapes and bold colors that create unique patterns and wording. The Art Wall’s mural would have “Wheaton” painted in the artist’s signature abstract style. Phase 2 of the project would involve installing a projection mapping system, which would overtake the static mural image at night. The projection mapping system would provide the ability to update the imagery at any time and would include DLP laser imaging technology, ensuring that the digital projection is confined to the wall with no overspill of light. In response to a Council question, Commissioner King stated that the projections have the ability to be synchronized with audio. Council members discussed the positive impacts of the Art Wall project within the community, such as enhancing interest near the pavilion and adding visual appeal. The Council expressed interest in moving forward with Phase 1 of the project and requested to review designs created by the artist. IV. Water Rate Study City Manager Dzugan noted that the City has conducted a water rate study to be presented tonight. The City has not adjusted water rates in nine years, and the City needs to increase annual investment in above- and below-ground water assets to keep pace with end of useful life of these assets. The majority of capital spending over the last two years was for the Lead Service Line Replacement Program. Staff has proposed adjustments to the water rates and fees and if approved, the new recommended rate increases would generate an additional $4.9 million by the end of 2027, of which $3.7 million would be directed to infrastructure. Director of Finance Lehnhardt outlined primary areas of concern for the Water Fund, which include increases in the DuPage Water Commission (DWC) rate; increases in costs for services and capital; and an increase in water infrastructure investment. He stated that 2024-2027 purchased water costs are projected to increase 3.0% annually, City operational costs are projected to increase 3.3% annually, and infrastructure investment (capital) costs are projected to be $3 million annually. Water Superintendent McMillen stated that over the last 10 years, there has been an increase in water main breaks attributed to aging infrastructure. Investing in infrastructure is critical to avoid increases in water main breaks, increases in maintenance costs, and emergency response situations. To address infrastructure concerns, the City aims to achieve a 100-year replacement cycle (2.15 miles per year), aligning with industry best practices. Based on the findings of the Water Rate Study and analysis, staff recommend splitting the City’s current usage rate of $5.05 per 100 cubic feet into two separate usage rates: (1) a direct pass-through rate for DWC charges (DWC Usage Rate) and (2) a City Usage Rate. The City rate would be used to support water operations and infrastructure investments, while the DWC Usage Rate would be the same amount the DWC charges the City to purchase water, which would be passed on directly to customers. With an assumption of a 3% annual increase in the DWC water purchase rate, the proposed increase would be a total of $1.46 per 100 cubic feet over a 3-year period, with a $1.09 total increase in 2025, $0.19 in 2026 and $0.18 in 2027. Rates would need to be finalized annually based on the actual DWC rate, which changes on May 1.  Monday, July 22, 2024, CITY COUNCIL PLANNING SESSION MINUTES In response to Council questions, Director of Finance Lehnhardt stated that the DWC Usage Rate comprises $4.03 of the $5.05 per 100 cubic feet fee. Based on the proposed new fee structure, the target for the City’s percentage of this total number is 30% and DWC at 70%. The next staff recommendation is an increase in fixed monthly fees based on meter size over the next three years to stabilize revenue, address consumption charge fluctuations, and fund operational and infrastructure needs. These increases will result in $2.1 million in additional revenue over the next 3 years. The proposed fixed monthly fee increases would be 10% in 2025, 20% in 2026 and 20% in 2027 across all meter sizes. Director of Finance Lehnhardt stated in a benchmark comparison of DWC customers, comparing the most common meter size customers (those with 5/8” x 3/4” meters), the City’s fees are in the middle range when compared to comparable municipalities, and Wheaton would remain in the middle range after the proposed adjustments. He stated that the combined adjustments to usage rates and fixed fees are projected to maintain a structurally balanced budget for the Water Fund and would allow the City to meet the policy target of 25% of operating expenses. In response to a Council question, City Manager Dzugan stated that comparable municipalities have different rate structures because their customer base is comprised of a more substantial number of commercial customers, whereas Wheaton primarily has residential customers. In response to a Council question, City Manager Dzugan stated that the City plans to conduct a risk-based analysis of the water system in 2025 to prioritize and direct financial resources. This analysis will allow for a more strategic approach to replacing water mains. In response to Council questions, Director of Finance Lehnhardt stated that the City spent approximately $2 million last year in capital for water-related expenses. The Council expressed support for the proposed changes and directed staff to create an ordinance for the recommended increases over three years for their formal consideration. V. Public Comment There were no public comments. VI. City Council/Staff Comments Councilman Weller thanked the Wheaton Police Department for their efforts over this past weekend helping provide staffing at several special events happening in the City. Councilman Clousing wished good luck to the Wheaton United 2006 Girls Academy Soccer Team during their national championship competition. VII. Adjournment The meeting was adjourned at 8:02 p.m. Respectfully submitted, Halie Cardinal