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HomeMy WebLinkAbout03/10/2015 COW Minutes COMMITTEE OF THE WHOLE MINUTES March 10, 2015 I. CALL TO ORDER – ROLL CALL The meeting was called to order at 7:02 p.m. in the Village Board Room of the Village Hall, 50 South Emerson Street, by Mayor Arlene Juracek. Trustees present included Paul Hoefert, John Korn, John Matuszak, Steven Polit, Richard Rogers and Michael Zadel. Staff present included Acting Village Manager David Strahl, Public Works Director Sean Dorsey, and Administrative Analyst Alexander Bertolucci. II. APPROVAL OF COMMITTEE OF THE WHOLE MINUTES FOR FEBRUARY 24, 2015 Motion made by Trustee Hoefert seconded by Trustee Zadel. Minutes were approved. III. CITIZENS TO BE HEARD None IV. NORTHWEST SUBURBAN MUNICIPAL JOINT ACTION WATER AGENCY (JAWA) DISCUSSION: Acting Village Manager Strahl stated Kevin Lockhart, Deputy Director of JAWA, was unable to attend and Public Works Director Sean Dorsey would provide a presentation regarding the scheduled items for discussion. Public Works Director Dorsey stated JAWA was created in 1982 as an intergovernmental cooperative of seven communities, Mount Prospect, Rolling Meadows, Hanover Park, Streamwood, Hoffman Estates, Schaumburg, and Elk Grove Village. He stated the construction of JAWA’s water delivery system began in 1983 and was completed in 1986 for the total cost of $114 million. He stated debt issued for this construction is set to retire in 2019. He provided an overview of JAWA’s infrastructure that includes pumping stations, delivery structures, storage facilities, booster stations, and 44 miles of transmission pipes to support 95 square miles and 315,000 people. He stated JAWA’s system is unique due to its features that include a looped transmission main and how water is put into the system under pressure. He stated the Village’s water infrastructure meets storage requirements and pumping structures maintain water pressure and cycle water in the storage tanks. He noted that the northeastern portion of Mount Prospect and a small area by the southern boundary are serviced by Illinois American Water Company. He provided an overview of JAWA’s organizational structure. He stated a staffing transition is underway, as the current Executive Director of 17 years, Joe Fennell, is retiring this year and the Deputy Director of 11 years, Kevin Lockhart, will fill the Director position. He stated JAWA does not levy taxes and revenues derive from user fees charged to member communities. Public Works Director Dorsey stated JAWA has a 40 year agreement with City of Chicago to supply the agency’s water and it is set to expire in June 2022. He stated 03/10/15 Committee of the Whole Page 1 of 4 JAWA’s agreement with Chicago includes language that sets the maximum water rate which Chicago can charge JAWA at no more than the lowest rate the City charges its residents. He stated when Chicago about doubled its residential water rates it also impacted JAWA’s water rates and this subsequently caused Village’s water rate increases to be higher than typical rate adjustments. He stated Chicago increased water rates to fund capital improvement projects within their water system which includes replacing 85 miles of water mains, a new roof on the Jardine Water Treatment Plant, and pump stations rehabs. He stated the Village’s water rates are still among the lowest in the country. He stated future agreements with Chicago to supply water would seek to include language that would provide security to JAWA members regarding future rate increases. He stated the Village and JAWA are researching alternative water supplies and any alternatives that require construction of infrastructure would be costly to implement. He stated member communities are annually required to purchase a minimum amount of water from JAWA and are only allowed to supplement supply from other water sources if they exceed JAWA’s maximum water allotment. He stated water consumption minimums and maximums are set on a sliding scale and in 2014, the maximum was 2.1 billion gallons, the minimum was 1.2 billion gallons, and the Village’s actual was 1.3 billion gallons. He stated the Village’s water consumption has steadily decreased over the years and some contributing factors are conservation efforts, change in demographics, and increased water prices. He stated in the past the Illinois Department of Natural Resources (IDNR) has previously allowed for 7% leakage from the Village’s water system. He stated communities with cast iron pipes and lead joints had larger allowances to adjust for older infrastructure. He stated IDNR will implement a rule change this year to eliminate allowable leakage and penalties will be applied to communities who are consistently non-compliant. He stated the Village’s leakage has historically been well below the allowable percentage. He stated common stop leak measures includes changing water meters, replacing water mains, and implementing leak detection systems and water loss reduction programs. He stated the rule change is due in part to the increase in demand for Lake Michigan water from within the Chicagoland Metropolitan area and as well Wisconsin, Michigan and Canada. He presented background on the expansion of I-90 and the relocation of JAWA’s water main that runs along the highway. He stated JAWA is responsible for $73 million of the relocation, with two thirds of the total cost is related to Route 83/I-90 interchange. He stated remaining costs will be paid for by the Tollway as a no interest loan until 2021 and to be paid in full with interest in 2023. He stated the $73 million will be divided among the seven JAWA communities on a per capita basis. He also stated temporary water delivery structures shutdowns are mandatory as a part of construction. General comments from the Village Board members included the following items: 1) There was discussion relating to I-90 construction, JAWA water main relocation, and associated shutdown periods. 2) There were questions regarding the anticipated water delivery shutdowns, the duration of the shutdowns and if the Village would be required to utilize its wells to supplement water supply. 3) There was a clarification regarding water main “relocation”, since the construction includes abandoning the current pipe in place and installing new piping. 03/10/15 Committee of the Whole Page 2 of 4 4) There were questions regarding the Village’s water system interconnect with Illinois American Water relating to how much water could be transferred and if it is utilized during construction shutdowns. 5) There was general discussion regarding Illinois American Water service area and the possibility of incorporating it on to the Village’s water system. 6) There was discussion on IDNR’s allowable leakage rules, reporting water main breaks, and how the Village’s water system capital improvements assist to maintain costs. 7) There was a question regarding if water loss is calculated into the 1.3 billion gallons of water the Village is required to purchase from JAWA. 8) There was a question regarding the Automatic Meter Reading system’s ability to help identify areas of water loss. 9) There were questions about Chicago’s water rate increases and water system capital improvement plan. 10) There was general discussion regarding the Village’s water system maximum operating capacity and the switch from lake to well water. 11) There were questions regarding well water quality and treatment. Mayor Juracek stated JAWA’s water main relocation construction was originally estimated to cost $112 million; however, the engineers were able to re-engineer aspects of the construction to realize cost savings. She stated JAWA is currently in discussion with Chicago regarding future water rate increases. She also stated that JAWA is researching the possibility of signing up other customers (other municipalities) to help defray overall costs. Public Work Director Dorsey provided additional information regarding the Village Board’s comments. He stated during a shutdown for construction the Village is able to back feed off the JAWA system. He stated JAWA also increases flow to delivery structures that are not affected by the shutdowns. He stated Schaumburg’s interconnect to DuPage County’s water system and the Village’s interconnect with Illinois American Water are able to compensate during scheduled shutdowns, if needed. He stated previous shutdowns have lasted 60 to 72 hours and are planned to occur over weekends. He stated about 20 years ago the Village went out to referendum to gauge residents’ interest in switching from Illinois American Water to the Village’s water system. He stated cost of improvements to incorporate the Illinois American Water section were costly and it was unlikely that customers would realize savings. He stated the Village’s well system is capable of providing 1.3 million gallons per day; however, water conservation practices would be required in months of peak demand. He stated the Village’s well water quality is required to be tested annually and it continually meets Illinois Environmental Protection Agency’s standards. He stated when the Village switched off of wells to lake water was in response to pressure from IDNR to move off of wells, because the aquafers levels were heavily drawn down and there were water quality issues. There was general consensus by the Village Board to request a tour from JAWA Deputy Director, Kevin Lockhart, of the O’Hare pumping station for a future COW meeting to provide additional information on JAWA’s infrastructure and to further discuss water supply opportunities. 03/10/15 Committee of the Whole Page 3 of 4 V. MANAGER’S REPORT Acting Village Manager Strahl stated Coffee with Council is scheduled for Saturday, March 14 from 9:00 a.m. to 11:00 a.m. at the Village Hall. VI. ANY OTHER BUSINESS Trustee Korn stated as warmer weather approaches and the snow melts, please remember to take down holiday decorations. VII. ADJOURNMENT The meeting adjourned at 8:07 p.m. ALEXANDER BERTOLUCCI Administrative Analyst 03/10/15 Committee of the Whole Page 4 of 4