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HomeMy WebLinkAbout08/09/2005 COW minutes MINUTES COMMITTEE OF THE WHOLE AUGUST 9, 2005 I. CALL TO ORDER The meeting was called to order at 7:08 p.m., in the Village Board Room of Village Hall, 50 South Emerson Street, by Mayor Irvana Wilks. Present at the meeting were: Trustees Paul Hoefert, John Korn, Richard Lohrstorfer, Michaele Skowron and Michael Zadel. Absent from the meeting was Trustee Timothy Corcoran. Staff members present included: Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director David Erb, Deputy Finance Director Carol Widmer, Community Development Director William Cooney, Public Works Director Glen Andler, Deputy Public Works Director Sean Dorsey, Public Works Administrative Superintendent Jason Leib, Village Clerk Lisa Angell, Police Chief Richard Eddington, Fire Chief Michael Figolah and Human Services Director Nancy Morgan. II. APPROVAL OF MINUTES Approval of Minutes from June 14, 2005. A Motion was made by Trustee Hoefert and Seconded by Trustee Zadel. The Minutes were approved. Approval of Minutes of July 12, 2005. A Motion was made by Trustee Korn and Seconded by Trustee Skowron. Minutes were approved. Trustees Hoefert and Lohrstorfer abstained. III. CITIZENS TO BE HEARD None. IV. SOLID WASTE CONTRACT RENEWAL DISCUSSION Village Manager Janonis stated the Village Board had previously authorized staff to begin negotiations with ARC Disposal, the current waste disposal provider. At this time, staff is requesting authorization to waive bids and negotiate with other vendors to ensure that the Village can obtain the best deal possible among waste hauling vendors. He also stated that based on the changes in the industry, staff would likely be requesting consideration to move away from the modified two container program that currently exists. 1 Public Works Director Glen Andler stated that initial discussion and negotiations with ARC dealt with a variety of options for consideration but due to the complexity of these options it is recommended that the overall waste program be simplified for general negotiations. He stated that there is a significant trend in the waste hauling business moving toward an automated toter system to reduce personnel costs for vendors. He stated there likely would be an option for a 95, 65 or 35 gallon toter. He stated the toter would allow unlimited pick-up while maintaining the brush, loose leaf and recycling program. He stated the elimination of the stickers and retaining the yard waste sticker program would be the only carry-overs to the new program. He also stated that it is likely that a longer term contract would be proposed of five to ten years based on the life cycle of the toters. He also stated that with the revision to the program with the toters there would be no need for unlimited pick-up weeks and residents could order different size toters based on their particular needs. If negotiations are successful, he would recommend a spring start up to the toter program with a separate recycling container toter. Brooke Beal, Executive Director of the Solid Waste Agency of Northern Cook County (SWANCC) spoke. He stated the typical waste hauling contract is regularly set for beyond five years. Dr. George Luteri, Chairman of the Solid Waste Commission, spoke. He stated that even though there are a number of changes that will likely occur with a new program, the anticipation of the type and number of complaints should not deter the change. He stated there will be complaints to any program that changes. Consensus of the Village Board was to authorize staff to waive the bid process in the best interest of the Village and authorize staff to negotiate with other vendors in order to obtain the best pricing available in the area. V. 2005 MID-YEAR BUDGET REVIEW AND 2006 PRE-BUDGET WORKSHOP Finance Director Dave Erb spoke. He stated that he would focus on the General Fund in his presentations. He stated revenues are slightly up across the board and there are no extraordinary expenditures expected in 2005. He stated the final Village Hall transfer is slated for 2006. He stated that if the trend continues, there would be a slight budget surplus for 2005 and based on that surplus, the forecast deficit for 2006, which was originally projected at $1.2 million, has been reduced approximately $280,000. He also stated the General Fund balance would be reduced to 21.8% after 2006 which is below the Village Board benchmark of 25% of the General Fund. He stated the projected surplus for 2005 is approximately $789,000 and stated Property Tax receipts are expected to be short by 3%. He stated intergovernmental revenue sources have increased along with a slight increase in Sales Tax. He stated the CIP still needs a permanent funding mechanism and there are issues relating to the Water and Sewer Fund management along with pension returns coming in below estimates which will need to be made up with additional contributions. The Finance Commission had recommended several revenue options. Those options include an ambulance fee which was estimated to generate $896,000, a local Motor Fuel Tax of an additional one cent per gallon which would generate $225,000 and an increase in the Utility Tax of 1 % which could generate approximately $465,000. He stated the issues that will need to be discussed include water and sewer fund, a facility needs study for Police and Fire Departments and possible impact on the Public Works Department. 2 Also, CIP funding needs to be addressed in the near future since the CIP Fund will be drawn down completely by 2006. Village Manager Janonis stated there are a number of pent up demands which have been pushed back over the years that are still yet to be addressed and the budget for 2006 just maintains the current service levels and does not address any of these other demands. Consensus of the Village Board was to schedule a Budget Workshop instead of a Committee of the Whole meeting on September 13. VI. AND SEWER RATE STUDY AND COMBINED SEWER PROJECT FUNDING Finance Director Dave Erb stated that the water and sewer rates should be periodically reviewed to ensure that revenues keep up with capital costs. He stated the fund has been operating at a deficit for several years and had been drawing down fund balance for the last three years. He stated that water rates are subsidizing sewer expenses and the need to establish a funding mechanism for the combined sewer rehabilitation and rebuilding is necessary. He stated the annual increases of 4% that the Board has approved previously does not capture the total operating expenses that are necessary. He stated the capital estimates for the combined sewer run approximately $1 million annually. He is recommending an initial increase of 20.5% in the rate for 2006 with a 5% annual increase or a minimum based on the capital funds necessary. He stated that such an increase would impact the average resident approximately $148. He is recommending a $5.00 sewer service fee, an increase to $5.41 for 2006 on the sewer rates and a 5% annual increase effective January 1. He stated there are no Federal funds available to assist in repairing the combined sewer system. He stated that the worst areas would be addressed first and the investment life span would be approximately 50 years. Ann Smilanic, 409 Can-Dota, spoke. He stated the Finance Commission had recommended the $5.00 customer service fee to be effective September 1 and felt that the funding recommendations will assist in addressing the combined sewer funding needs. Consensus of the Village Board was to establish a sewer service fee of $5.00 per month, increase the combined water and sewer charge from $4.49 to $5.41 as of January 2006. Increase the water/sewer rate of 5% every January 1 thereafter. It was also noted that once Special Service Area #5 sunsets in 2017, there will be a need to address the capital funds generated from that property tax. VII. VILLAGE MANAGER'S REPORT Village Manager Mike Janonis stated that Coffee with Council is scheduled for August 13 from 9:00 a.m. to 11 :00 a.m. in the Community Center Room. VIII. ANY OTHER BUSINESS None. 3 IX. ADJOURNMENT There being no further business to discuss, the Committee of the Whole meeting adjourned at 9: 17 p.rn. ~ Respectfully submitted, / fl l~~ ~~U DAVID STRAHL Assistant Village Manager ~ DS/rcc 4