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HomeMy WebLinkAbout0724_001MINUTES COMMITTEE OF THE WHOLE DECEMBER 9, 1986 I. ROLL CALL The meeting was called to order at 7930 p.m. Present at the meeting were: Mayor Carolyn H. Krause; Trustees Ralph Arthur, Gerald Farley, Leo Floros, Norma Murauskis, George Van Deem and Theodore Wattenberg. Also present at the meeting were: 'Acting Village Manager Michael Janonis, Finance Director David Jepson, Director of Public Works Herbert Weeks and Research Assistant Michael Steklac. Also present were two persons from the print media, III* MINUTES., The Minutes of the Committee of the Whole meeting of November 25, 1986 were accepted and filed. 1110 CITIZENS TO BE HEARD I There being no citizens present who wished to make a presentation before the Committee of the Whole, the Committee moved on to the next 'Item of business, IV*' PUBLIC WORKS FACILITY - FINANCING OPTIONS F i 'nance Director David Jepson presented a report on the financing alternatives for a Public Works Facility Bond Issue. I Mr. Jeps6n used the following assumptions in developing his estimates: 1. That the total cost of the facility will be $6.2 million., ' 20 1 $I mon from the Water Fund and $1.2 million from the Capital Improvement million fund and other sources will be used for initial funding of the facility with the fl :result of a $4 million Bond Issue. I 1 �0% of the Debt Service Requirement will be paid from the Water Fund.. 40 'That the interest rate is 7% (Mr. Jepson Stated if the Village were to get financing today, the interest rate would be 6.3%). 5. No monies from Build Illinois or sale of Village property are considered. Mr. "Jepson outlined four possible options for structuring the Bond Issue: Option 1: Level Debt Service. The principal and interest payments are structured to provide approximately the same annual payment over 20 years. 10 Option 2: Deferred Principal Payments. The payments are structured, to reflect 0 latter 'years,. interest only in the early years and higher principal payments in,, The specific plan considered calls for interest only payments for eight years and then principal and interest payments for the last twelve years* Option 3: Combination of Level Debt Service and Zero Coupon Bonds. This plan shifts a greater portion of Debt Service to the latter yeats of the Bond Issue. The Zero Coupon Bond does not pay interest durl'n,,g the life of the Bond and, only makes payment at maturity. As a result, Bonds are sold at a discount. The combination considered includes $3 million of 15 year Level Debt Service Bonds and $1 million of Zero ,Coupon Bonds maturing in years 16-200 Option 4: Level Debt Service with a Bond Reserve Fund. This plan calls for a $5 m *Ilion Bond Issue with $4 million for construction and $1 million for Debt Servicee I This approach allows a variable Tax Levy in the early years to level out total Debt Service requirements for all Village debt requirements Mr. Jepson noted that based on standards for municipal debt danger signals that the Village is in good fiscal condition to accept a Bond Issue of this size. Initial discussion centered around which Option to use for a possible Bond Issue. Trustee Wattenberg stated that the Village should pay as it goes. He does not I want ,to defer payments to later years. Trustee Farley stated that the Village should consider a shorter Bond life of 15 years, indicating that a shorter Bond Issue would be less costly to the Village and possibly more attractive to purchasers of the Bondso We Jepson responded that a Bond Issue with a 15 year life would have a lower overall cost but would result in a higher Tax Rate for the 15 years. The Pubtlic 'Works facility is expected to have a 45 *to 50 year life and a 20 year Bond would be better received in the Bond community. Trustee Farley stated that he supports Option 3 but was concerned that, with the uncertainty of future Tax Reform, that residents may be hesitant to purchase the Zero Coupon or Citizens Bonds. Trus�ee Arthur stated that he supports Option 3. Mr. Jepson explained that the 1 Citizens Bonds would be offered locally and then nationally. Trustee Arthur stated that 'the Village should offer $2 million in Citizens Bonds if possible* 11 Mayo I r Krause stated that she also supports Option 3 and the use of Citizens Bonds. She asked if the Bond sale could be limited to Mount Prospect residents only. Mr. Jepson responded that they could not be limited to Village residents only although he stated that another ll. icorn unity, Germantown, Tennessee, had 400 people �A, llagHa buy �2 million n Bonds. Those Bonds were sold in one week at the V1 e, The Mayor stated that the Citizens Bonds would, give,the community a good chance to beicome involved in the construction of The fachit Y4, R", 2 00*1 Trustee Van Geem stated that the fact that Tax Rates are down makes the Municipal Bond less attractive. The staff responded that they believe that the Bonds would have takers because Municipal Bonds are one of the last tax shelters left after Tax Reform. Trustee Van Geem was reluctant to issue Citizens Bonds if interest rates would go up and residents would be stuck with Bonds earning a low interest rate. He asked what the total cost to the Village would be for the Clifl,zens, Bondso Mr. Jepson stated that the cost at a 7% interest rate would be $250,1000# If' the, V,ill earned 7% on the, funds then the costs would cancel out each other. Trustee Van Geem would support Option 3 with sinking fund. The consensus of the Committee was to support Option 3, the issuance of Citizens Capital Appreciation Bonds with a possible sinking fund. The Committee also would like more 'information on the possible 'increase of the Citizens Bond issue from $1 million to a higher number. The Committee's discussion then turned to the contribution that would come from the Water Fund to construct the proposed Public Works facility. Trustee Floros stated that it would be more equitable to 'issue both General Obligation Bonds and Water Fund Bonds. Trustees Van Geem and Arthur agreed, Mr. Jepson stated that the Village had $2.3 million in its Water Fund Reserve. Normally, the Village tries to keep $1 million in Reserve. Trustee Farley asked what the reduction In the Reserve would do for planned infrastructure improvements. 'Mr. Weeks stated that it would not interfere with planned improvements. It was the consensus of the Committee that the staff gather more information on the contribution from the Water Fund to fund the proposed Public 'Works, facility If, Mr. Jepson stated that he would like the Committee's approval, to g,et proposals from financial consultants who would assist the Village, in structurilng the and Issue. Upon receiving agreement from the Committee,, Mr. Jepson stated that he would have a recommendation for the Board on December 16, 1986. VO MANAGER'S REPORT Acnng Villa ,e° Manager Mit hael Janonis stated that the first reading of an Ordinance calling for a Public Hearing on the GEORGE AND ALBERT STREETS IMPROVEMENTS would be before the Board on December 16. The second reading of the Ordinance would be ready for the Special Board meeting on December 30, The Public Hearing would be held on January 20, 1987, and March 21, 1987, would be the end of the 60 -day waiting period. Trustee Van Geem stated that it was a shame that 71 persons would dictate that the Board would spend over $300,000. ow 3 - Mr. Jano n10 is gave the Board a review of future Committee of the Whole Agendas. The December 23 Committee of the Whole Agenda was cancelled and a special meeting of the Village Board would be called for December 30. The fi rst Committee of the - Whole meeting in January would cover the issues of the COMPUTER NEEDS STUDY and REVIEW OF VILLAGE TAXI SERVICE. The second January meeting would cover the last DONO H UE AND ASSOCIATES PHASE II REPORT ON THE PUBLIC: WORKS FACILITY* BUDGET HEARINGS will be held in February and March. VI e ANY OTHER BUSINESS At 9:27 p.m., the Committee adjourned to go into Executive Session to discuss property acquisition in connection with the downtown TIF project. VIIo ADJOURNMENT The meeting was reconvened at 9:50 p.m. and there being no further business to be discussed, the meeting was adjourned at 9:51 p.rn M1S/rcw respectfully submitted, MICHAEL J. STEKLAC Research Assistant ow 4 Village of M�cunt Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: ACTING VILLAGE MANAGER MICHAEL E. JANONIS FROM: RESEARCH ASSISTANT DATE: JANUARY 8, 1987 SUBJECT: REGIONAL TAXICAB LICENSING AND INSPECTION The suburban taxicab system is an important part of the regional mass transporta- tion system that serves many commuters and senior citizens in Mount Prospect. Many years ago, CATS (Chicago Area Transportation Study) and the Northwest, Municipal Conference recommended a regional approach to taxicab inspection and licensing. The concept was revived after the publicity surrounding an incident of an alleged criminal assault on a passenger by a cab driver in Mount Prospect and problems with Birks Transportation Company concerning the transportation of radioactive material. A regional task force of northwest suburban Police Chiefs was established. in an effort to develop standards for taxi operation that would be accepted in all communities. Unfortunately, some communities could not come to agreement on the standards and dropped out of the task force. In August, 1986, a report was released which outlines the recommendations that were agreed upon by the remaining members of the task force. The municipalities involved in the final report were Arlington Heights, Elk Grove Village, Mount Prospect, Palatine, Rolling Meadows, Schaumburg and Wheeling. Some of the changes affecting Mount Prospect that were recommended by the task force are: I. Regional licensing and inspection standards accepted in all communities. 2. Possible use of regional inspection stations,, 3. Inspections every four months instead of every six months. 4. No restriction on the age of taxicabs as long as they pass vehicle inspections. 5. Regional chauffeurs' licenses that expire one year from the date of issuance rather than at the end of the fiscal year. 6. De -regulation of the number of taxicabs licensed by the Village. 7. Require licensing of taxicabs solicited by telephone. Presently the Village only requires the licensing of taxicabs soliciting at the train station, Randhurst, etc* 8. Require a Business License for the taxicab company. The Village only licenses individual taxicabs and drivers not the entire company. 9. License livery vehicles and drivers. INSPECTIONS When a taxicab company applies for authorization to operate vehicles in Mount Prospect, the Police Department and the Public Works Department schedule an inspection and a re -inspection date. In order that the normal operations of the Public Works Department are not interrupted, these inspections are usually scheduled on the first available Saturday that mechanics can be scheduled. Usually this requires the payment of overtime to the mechanics doing the inspecting. It is rare that a taxicab will pass inspection on the first try and usually a re -inspection is required. Because of repeated re -inspections of the vehicles, the cost to the Village far out -weighs the revenue received from the License fees. Attached are the inspection criteria that were recommended by the regional task force. The Village has already implemented these standards for its semi-annual inspections and special inspections scheduled for Community Cab. Some cab company representatives have complained that the standards are too strict especially because a vehicle can be rejected for minor violations as well as major violations. It is recommended that future inspections be conducted at approved regional testing stations. These testing stations would either be private garages with approved mechanics or Village -owned facilities. A vehicle, once 'inspected, would be approved for licensing in all the participating communities. This would reduce the problems of scheduling inspections and re -inspections as well as reduce the cost to the municipalities and cab companies resulting from conducting inspections in each municipality. A taxicab inspection fee would be paid directly to the approved testing station prior to each inspection or re -inspection. Upon presentation of a certified inspection ---certificate, the Village would issue, for a small fee, a taxicab license sticker* LICENSING The task force proposed a three -tiered licensing system. First, is an annual business license purchased by the taxicab company for the privilege of soliciting customers within the corporate limits of the Village. Second, is the individual taxicab license issued after the vehicle completes the required inspections successfully* Third, is a regional chauffeur's license. It is recommended that the chauffeurs, licenses be issued on a regional basis with a single fee paid by the driver. The license would be issued after a physical examination and criminal check of the applicant. The concept would require that the licensing duties be hosted by a different municipality each year. Until the details are finalized for a regional license, the present system should remain. The benefits of a regional license are elimination of duplication of effort !?nd cost savings to the municipality and to the taxicab driver. We would like direction from the Trustees on whether they will support the tas force's recommendations and to direct the staff to explore ways of implementimp the regional inspections and chauffeur licensing. The recom mendat ions are intendeis I I to reduce the inspection and licensing burden on the cab compani*es and munici .1 palities without reducing the protection expected by the passenger. If you have any questions, please contact me. MICHAEL J. STEKLAC MJS/rcw c: Chief of Police Ronald W. Pavlock Human Services Administrator Nancy Morgan Vi t Prospect llage of Mo%An 014 Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: ACTING VILLAGE MANAGER MICHAEL E. JANONIS FROM: RESEARCH ASSISTANT DATE: JANUARY 8, 1987 SUBJECT: STATUS OF TAXI COMPANIES APPROVED FOR OPERATIONS IN THE VILLAGE At present, American Taxi is the only taxicab company operating in the Village. They have secured 23 licenses and are authorized to operate up to 30 taxis in the Village. Arlington Best Taxi was recently authorized to receive up to 30 licenses. They were scheduled to bring their cabs, in for insp%ction on December 13, 1986 and reinspection on January 10, "1987. The December 13 inspection was cancelled at the request of the cab company because they did not have all their vehicles ready for inspection. Community Cab Company went through an inspection and two reinspections. Only two vehicles passed the inspection and Community has not come in to purchase those ticense The owners,, Roy andTim Vana, objected to the inspection standards and felt that the Village was being unfair after we had requested that they consider operating in the Village. It is not expected that Community Cab will come in for their two licenses or proceed with the inspection and licensing of their eight other taxicabs. We would like to ask the Village Board to rescind their authorization for Community Cab to secure up to ten taxicab licenses, Birks Transportation (Prospect Cab) is no longer in business. There is one out- standing taxi license in effect. This license should be formally revoked by the Board. 00 MICHAEL J's TEKLAC MJS/rcw I Village of Mount Prospect Mount Prospect, 111inolos 0 0 TO: Michael E. Janonis, Acting Village Manager FROM: David C. Jepson, Finance Director DATE: January 8, 1987 SUBJECT: Computer Study Over the past several years, data processing operating problems have surfaced on numerous occasions which have been traced to either inadequate computer hardware capacity or "bugs" in the software. Additionally, With the introduction of micro -computer technology the number of computer applications available to the Village's Operating Departments has mushroomed. The result has been a realization that the Village's IBM System 34 computer would eventually need to be replaced and that there was, a need for an overall Village plan to efficiently and effectively uti.Lize computer techno1bgy. To accomplish these purposes, funds for a computer study were, app,ropriated in the 1986/87 budget, I In August 1986, English & Associates, Inc. was retained to conduct a computer 4, study for the Village. The study was to include an evaluation of current data pro,cep s,ing operations, an assessment of the data processing needs of each Village Department, and a five-year plan for implementing any recommended changes. That study, has, been completed and a copy is attached. The study contains an Executive Overview and four sections. 0 1) Comfort Audit; 2) Needs, Assessment; 3) Word Processing#9 and 4) Final Report. Following is a summary of the recommendations and information contained in the report: Executive Overview This summary explains the process that was used in the study and recommends that the Village's existing computer be replaced along with most of the existing software systems. Additionally, micro -computers are being recommended for many Village operations, Comfort Audit The evaluation of current data processing operations or "Comfort Audit" was the first step in the study. During this phase, interviews were held with management, users, and operations personnel; observations were made of operations; documentation was reviewed; and software systems were evaluated. This section contains a rating of the various data processing applications using a standard checklist, Computer Study Page 2 The conclusions of the Comfort Audit indicate positive as well as negative findings. The positive findings stated that the Data Processing area is neat and secure, the most current software release is being used, and the documentation is better than average. The negative findings indicated that the computer is overloaded, there is evidence of patchwork in some of the systems, the Payroll System is very weak, and the Accounting System is cumbersome and a "batch" process. Specific recommendations are included for resolving the negative findings. Needs Assessment - The Needs Assessment was a more detailed approach to evaluating existing software and trying to determine the longer -range needs of the primary systems as well as the other data processing needs of each Village Department. After the needs were 'identified and evaluated, software and then hardware solutions were developed. The primary systems that run on the Village's computer were 'examined in detail both as to the volume of transactions and in relation to what information is actually needed. During this process, deficiencies in the current systems were pointed out. Many of these deficiencies are the result of programs that were originally written by independent contractors that have not been maintained properly. Patches have often been made to correct one specific problem and then these patches cause other problems at another time. Specifically, the payroll system is very_ weak in internal controls and does not provide adequate informa- tion. Also the accounting system is a batch process and the accounts payable system is cumbersome to work with. Additionally, the water billing system is overly complicated and very difficult to change. The study recommends that the primary software systems be replaced. The needs of each department were then reviewed with recommendations for - possible solutions. 1 poss Some of the needs will be met by access to the computer in the Village Hall, but it was pointed out that micro- computers can provide the most efficient solution for many of the departmental needs. Word Processing needs were identified in each department along with general record keeping systems. However, other fairly sophisticated systems such as computer-aided design, computer graphics, and permit tracking are being recommended. Word Processing This section reviews the current word processing tasks and the features that should be available for effective word processing. Currently the Village has ten Exxon Word Processors that are heavily used and well accepted by the departments that are using them. The machines are no longer in production but are being maintained by an independent supplier,. The study recommends that when the current machines become inoperable that they be replaced with micro -computers. Computer Study Page 3 Micro -computers are generally less expensive and more flexible than a stand-alone word processor. A standard word processing software product will be selected and used in all Village departments, Final Report - The Final Report section summarizes the Village's Data Processing needs and the Consultant's recommended solutions. The plan includes four phases which cover a four-year period of time. Schedules are included which list the recommended hardware and software and the implementation schedule. One of the useful summaries is Table 1 on page 9 which identifies the Data Processing needs of the Village departments and the solutions recommended by the consultant. A cost summary is included on pages 21 and 22. The estimated costs are: Phase 1 $169 , 206 Phase 2 72,537 Phase 3 16 847 The costs are based upon estimated discounted prices and would be subject to actual market prices when bids and/or proposals are requested. I believe the actual total would be somewhat less than the above amount by selectiLve use of software products and by requesting comp etit,ive proposals for hardware and software. An example of possible reductions can be, seen by comparing IBM's State contractprice for the System 36 configuration as proposed and the amount included in the above estimates. The study estimated the price at $78,040, but IBM's latest price quotation is $70,396. 1 expect that the first year total will be reduced to around $150,000 and the overall total will be about $225,000. It should be pointed out that departmental requests for micro -computers and programming of some $87,000 were included in the initial 87/88 budget requests. These amounts were in addition to any consideration of replacing the Village's main computer. In anticipation of providing for the needs according to the plan in the study, $80,000 of these 'requests have been eliminated. The study by En,glish & Associates provides an overall plan to try to satisfy the data processing needs of the Village over the next four years in a logical manner. The plan is comprehensive and ambitious. My recommendation is that we proceed as follows: Computer Study Page 4 1 Reque,st proposals for the System 36 configuration hardware and software for del.i1very in April or May 1987. 2 Develop a plan for installing the micro -computers 'included in Phase 1 and then request proposals. This would be during May and June 1987. 3,0 Plan on implementation of the BRC Payroll System during August and September. 40, Schedule the implementation of the BRC Financing Accounting Package during October through December. 5,9 During October and November re-evaluate plans for implementing Phase 2 for *inclusion in the 1988/89 budget. The first year costs will be requested in the 1987/88 budget as a lump -sum budget item. It is anticipated the purchases will be financed by an installment loan over three years with estimated installment payments of $52,500 due in 1987/88. DCJ/sm Enc.