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HomeMy WebLinkAbout03/19/2008 FC minutes FINANCE COMMISSION MM INUTES OF THE EETING M19,2008 ARCH VHB ILLAGE ALL UILDING I.CO ALL TO RDER The meeting was called to order at 7:08 p.m. Those present included Acting Chairman Vince Grochocinski and Commissioners Wayne Gardner, John Kellerhals, Tom Pekras and Ann Smilanic. Also present were Director of Public Works Glen Andler, Deputy Director of Public Works Sean Dorsey, Director of Information Technology Joan Middleton, Director of Finance David Erb, Deputy Director of Finance Lynn Jarog and Finance Administrative Assistant Lisa Burkemper. Chairman Charles Bennett and Commissioner Don Ocwieja were absent. II. AM PPROVAL OF INUTES Commissioner John Kellerhals stated he had several changes to the minutes of 2/28/08. First Mr. Kellerhals mentioned a typographical error in the first paragraph on page two, received should be receive. Mr. Kellerhals also mentioned that he wanted the minutes to reflect the fact that he said during the meeting that he was opposed to the EOC. Mr. Kellerhals then stated that he personally took offense to the following statement in the 2/28/08 minutes: “Director of Finance David Erb reiterated that the charge of the Finance Commission is to find funding options for the proposed Fire Station and EOC and that these options should be discussed in greater detail in the coming months.” Mr. Kellerhals outlined the duties as defined in the Village Code and again stated that he took offense to the statement as presented in the minutes. There was a general discussion regarding the charge of the Finance Commission. Mr. Kellerhals feels that if the members of the Commission do not agree with a project they have the right to present their opinions to the Village Board and as a Commission discuss alternative options. Mr. Kellerhals added that he did not feel the Commission could discuss/provide funding options for a project that they do not support. Commissioner Ann Smilanic agreed with Mr. Kellerhals that it would be difficult to provide funding options for a project they do not support. Acting Chairman Vince Grochocinski stated that as members of the Finance Commission each member has an obligation to be a good public servant and to try to find the best funding options available for a project whether they happened to agree with the project or not. Commissioner Tom Pekras agreed with the statement made by Mr. Grochocinski. Commissioner Wayne Gardner asked when the Finance Commission is supposed to start coming up with ideas for funding the new Fire Station #14 and companion projects. Should the Commission wait until the costs are more accurate or go with the estimate that is in place right now. Upon further discussion it was decided to defer approving the minutes until the end of all the other items on the agenda. III. UCSS PDATE ON OMBINED EWER YSTEM Deputy Director of Public Works Sean Dorsey presented a power point presentation that outlined the history of the Combined Sewer study and how the program has progressed over the last two and a half years. Mr. Dorsey stated that so far the Village has spent much less than originally estimated on repairs associated with the project. The original total estimate for repairs was $14,426,000. Actual costs have come in much lower and the department thinks that if costs remain favorable total project costs would realistically be in the $11,500,000 range. Commissioner John Kellerhals asked what the service life is of the cured in place piping the Village is having installed. Director of Public Works advised that the life expectancy is approximately 50-70 years. There was a general consensus that the Commission was pleased with the work being done and they felt that it is an important and valuable project and further congratulated Public Works for their efforts. IV.UTSP PDATE ON ELEPHONE YSTEM ROPOSALS The Telephone System Proposal discussion took place before the Information Technology Discussion. There was a brief review of the status memo prepared by Administrative Analyst Mike Dallas. Director of IT Joan Middleton advised that select staff conducted three different vendor visits and one additional site visit to see the proposed phone systems in use. Staff will present the system recommendation to the Village Board at the April 22, 2008 Committee of the Whole meeting. Commissioner John Kellerhals voiced his opinion on the VoIP technology and urged the Village to go with this option because it is current technology and he didn’t want to see the Village settle on old technology. Mr. Kellerhals also mentioned that the Village should choose a good business quality phone and not skimp on hardware. Commissioner Tom Pekras asked if the four new features listed in the memo were all being considered. Director of Finance David Erb said the features are going to be included in the final quotes provided by the vendors and the Village will then have the opportunity to decide which options they will choose. Commissioner John Kellerhals asked if the Commission can anticipate any additional staffing requests because the IT division will be in charge of administering the new phone system. Ms. Middleton advised there would not be a request and added that after the new phones are put in place and training has been done the division could expect to spend less time managing the system. V.ITD NFORMATION ECHNOLOGY ISCUSSION Director of IT Joan Middleton provided a power point presentation that gave an overview of the databases being utilized by the various departments and how they interact with each other. Ms. Middleton further elaborated on the different types of databases and what information flows in and out of the various programs. Ms. Middleton also outlined several items that are planned for future integration in the various databases. Commissioner John Kellerhals stated that he understands the complexities of our integrated systems and suggests that possibly in the future the Village might consider one system that can take care of all our functions. VI.UWSRS PDATE ON ATER AND EWER ATE TUDY Director of Finance David Erb discussed the memo that had previously been distributed to the Commission during the meeting. Mr. Erb stated that what prompted the need for a water and sewer rate study earlier than planned is that the rate for purchasing water from the City of Chicago will increase by 15% a year for the next three years. The Village purchases water from JAWA which purchases directly from the City of Chicago. Mr. Erb stated that the 2008 Budget does not account for the increase in water rates because the 2008 Budget was already set when news of the increase was made available. Mr. Erb further stated a water rate study will be prepared and th presented at the Joint Review Meeting scheduled for April 29. The study will be done in April after the Auditors have established results of final operations for 2007 and Public Works has submitted their Capital requests for water and sewer. Mr. Erb mentioned that since the Village water and sewer rate is made up of more than just the cost of water, the Village is not expected to increase the water and sewer rate by 15%. VII. OB THER USINESS There was nothing to report. 2 VIII. C’R HAIRMANS EPORT There was nothing to report. IX. FD’R INANCE IRECTORS EPORT There was nothing to report. The Commission resumed the discussion on approval of the February 28, 2008 minutes. Acting Chairman Vince Grochocinski stated that while the Commission has the right to disagree with the statement as reflected in the minutes they do not have the right to strike the statement from the minutes. Commissioner John Kellerhals motioned to postpone approval of the minutes to the next scheduled meeting. The motion failed for lack of a second. Finance Director David Erb offered to replace the word reiterated with “opined”. There was a discussion regarding approving the minutes as amended. Commissioner John Kellerhals motioned to approve the minutes of February 28, 2008 as amended. Commissioner Tom Pekras seconded the motion and all were in favor with the exception of Ann Smilanic. The motion carried. There was a discussion relative to Mr. Erb’s comments about the charge and scope of the Finance Commission and several members disagreed with the comment and thought clarification was needed prior to the next meeting. Commissioner Kellerhals added that the members do not take direction regarding the scope of the Finance Commission’s duties from staff, and that this direction comes from the Mayor and Village Board. Mr. Kellerhals believes that the duty of the Commission is to look at Village operations as a whole and not just financing issues. Acting Chairman Vince Grochocinski added that while the Commission does have some specific responsibilities like finding funding options they can, as a Commission, make recommendations and the Mayor and Board can choose to incorporate the recommendations or not. Furthermore, this should not stop the Commission from finding a funding source. Commissioner Ann Smilanic stated that if the Commission does not approve of a project it would be difficult to work on finding a funding source. Commissioner Tom Pekras disagreed. Mr. Pekras stated if the Village Board asks the Finance Commission for recommendations it is the Commission’s responsibility to try to come up with recommendations on how to fund a project. Whether they agree with the project or not, the Commission has an obligation to do so. Commissioner John Kellerhals added that as a Commission they can disagree with a project and let the Mayor and Board know of its disagreement. Acting Chairman Vince Grochocinski stated the Commission might feel like it has not been involved enough in the decision making process. Mr. Erb said that if staff can provide additional information the members can certainly request that information. Commissioner Ann Smilanic said she attended the Board Meeting where Chief Figolah presented on the proposed fire station and companion projects. The majority of the trustees were in agreement with the project and Ms. Smilanic stated she did not realize the Board was in essence approving the project. Mr. Erb stated that his understanding was that the Board agreed on the general concept of the proposed station and the companion projects and explained that there is a 3 rame work in place for the project to continue. The Board had given staff authority to hire an architect and a construction manager to be able to come up with a cost for the project. This authority is only the first step in the process. Commissioner Wayne Gardner added that the Finance Commission had not met themselves and come up with a recommendation or a consensus that could be presented in writing by the Chairman. Commissioner John Kellerhals added that his objective is to add value to the project and would like the opportunity to do so. Mr. Kellerhals said that at a certain financial impact the Commission might be supportive but then there is a certain tipping point where some members might not be supportive. Currently the project is only a picture on paper; therefore, the Commission still has the opportunity to make recommendations that will ultimately affect final cost. Several members asked about the opportunity to tour several new fire stations in the area with Chief Figolah. Commissioner John Kellerhals motioned that at the May meeting the Commission look at particulars of the Fire Station, Public Works Expansion and EOC projects and look at what the Commission is in support of with respect to each of the three distinct properties. Commissioner Wayne Gardner seconded the motion and the motion carried. X. NM:A29,2008 EXT EETING PRIL Commissioner Tom Pekras motioned to adjourn which Commissioner Wayne Gardner seconded. The meeting was adjourned at 9:55 p.m. The next meeting will be Tuesday, April 29, 2008 at 6:00 p.m. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department 4