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HomeMy WebLinkAboutCOW Agenda Item V 07/08/2008 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: VILLAGE BOARD AND FINANCE COMMISSION FROM: DIRECTOR OF FINANCE DATE: JUNE 6,2008 SUBJECT: PROPOSED CIP: 2009-2013 Attached hereto is the proposed 2009-2013 Capital Improvements Plan (CIP). The projects being considered for the year 2009 total $21,989,401. The five-year total for all projects is $57,178,404. We encourage you to read the Manager's transmittal letter beginning on page ii. This correspondence describes the purpose of the CIP, highlights some of the more significant projects, and reviews project funding. To help you evaluate our ability to fund the requested projects we have again provided five-year financial forecasts for the major operating and capital project funds that provide funding for the CIP. These forecasts can be found in Section H of the document. In general, the projects being presented directly relate to the monies expected to be available. However, from reviewing the CIP requests in conjunction with the five-year financial forecasts I would like to direct your attention to several project areas. General Fund Proiects The CIP is showing the five-year average of projects being paid from General Fund revenues as $407,000 (A-1 0). This is typical of the amount of capital projects funded by the General Fund on an annual basis. I would like to point out the five-year financial forecast for the General Fund. This forecast is showing an operating deficit in 2009 of $907,727 with annual deficits increasing each subsequent year through 2013 ($3,759,017). See the complete five-year forecast for the General Fund beginning on page H-1. Motor Fuel Tax Fund (MFT) Receipts from motor fuel taxes beginning in 2008 are expected to remain flat through 2013. Due to the flattening of the motor fuel taxes, the Fund has annual deficits for every year of the forecast. This is significant as the MFT Fund supports approximately one-half of the funding for the annual street program. Originally to be finished in 2006, the completion of the street program was pushed back to 2009 due to budget constraints. Shortfalls in MFT funding for the street program will be made up using monies from the Street Improvement Construction Fund. Proposed CIP June 6, 2008 Page 2 of 3 Capital Improvement Fund The Capital Improvement Fund is meant to support intermediate sized capital expenditures for various departments that are non-recurring in nature. Some examples of these projects are Detention Pond Improvements, PW Emergency Generator and Video Conferencing between the three fire stations. From 2002 through 2007 approximately $3.7 million in projects were deferred due to discontinuing the General Fund transfer. In 2007, the Village Board approved a permanent funding source for these mid-sized capital projects. An additional ~ percent home rule sales tax was implemented beginning January 2008 that will generated approximately $1.3 million annually. A portion of the revenue will be allocated towards building up the fund balance for the Capital Improvement Fund and the Village's two Parking Funds. Approximately $1.0 million annually will be available for capital projects. Projects included in the five-year plan after 2010 will need to be further prioritized with some deferrals to bring the total annual amount down to what can be supported with current revenue streams. Street Improvement Construction Fund Proiects The forecast for the Street Improvement Fund (H-11) is showing a positive fund balance of $483,274 at the end of 2008, but the fund balance will become a deficit by the end of 2009 due to slowing revenues. Revenue to support the program comes from the state and local motor fuel tax and ~ percent home rule sales tax. Each of these revenue sources are expected to either decline (home rule sales tax) or remain flat (state motor fuel tax) over the next year resulting in fewer funds available to fund the street program. Adjustments to the amount of work planned each year will be necessary if these revenue sources do not rebound during 2009. Flood Control Construction Fund Proiects Fund balance for this Fund is projected to be $81,511 at December 31,2008 (H-12). Two larger size flood control projects for Prospect Meadows ($600,000) and McDonald Creek ($1 ,500,000) are planned over the next five years. Although funding from the ~ cent sales tax (portion not allocated for debt service) becomes available in 2010, there are temporary shortfalls in 2009 and 2011 that need to be addressed. After 2011, sufficient funding is available to support the ongoing flood control program. Water and Sewer Fund There are several large capital projects included in the CIP for 2009-2013. The first is the ongoing Combined Sewer Improvement project started in 2005. The total cost for the project was originally estimated at $15 million and expected to take 10 years to complete. Funding for this project comes from a $5 per month sewer construction fee and basic sewer usage fee. Based on early results, the overall costs may come in lower than originally estimated and completion could occur before the planned 10 years. Other major projects include ongoing sewer and water main replacements/rehab averaging $813,000 per year and emergency generators for water pumping stations at approximately $360,000 per year through 2011. Water tank rehab totaling $1.3 million is also included in the five-year forecast for the Water and Sewer Fund. The cash and investment balance is projected to remain relatively level over the five-year period and end 2013 with approximately $3.5 million. 1:\CIP\2009-2013\2009-2013 CIP - Board Memo June 2008.doc Proposed CIP June 6, 2008 Page 3 of 3 Fundina to be Determined The CIP is showing five new projects were funding has yet to be determined. These projects include the construction of a new Fire Station 14 at $8.6 million, expansion of the Public Works vehicle maintenance building at $2.3 million and construction of an Emergency Operations Center for approximately $2.1 million. A funding source also needs to be identified for the Ash removal/replacement program expected to cost $4 million over a ten-year period. All five projects are slated to begin in 2009 and 2010. Meetings to review the CIP are scheduled for June 18 (Finance Commission) and July 8 (Village Board). Staff looks forward to discussing the project submittals and their impact to operations. J~tPc~ David O. Erb Director of Finance Copy: Michael E. Janonis, Village Manager Dave Strahl, Assistant Village Manager Lynn Jarog, Deputy Finance Director Department Directors 1:\CIP\2009-2013\2009-2013 CIP - Board Memo June 2008.doc FINANCE COMMISSION DRAFT MINUTES OF THE MEETING JUNE 18, 2008 POLICE AND FIRE TRAINING ROOM DRAFT I. CALL TO ORDER The meeting was called to order at 6:05 p.m. Those present included Acting Chairman Vince Grochocinski and Commissioners Wayne Gardner, John Kellerhals, Don Ocwieja, Tom Pekras, Ann Smilanic. Also present were Village Manager Mike Janonis, Information Technology Director Joan Middleton, Community Development Director Bill Cooney, Deputy Director of Community Development Brian Simmons, Deputy Fire Chief John Malcolm, Fire Marshall Paul Valentine, Chief of Police John Dahlberg, Commander Tim Janowick, Human Services Director Nancy Morgan, Director of Public Works Glen Andler, Deputy Director of Public Works Sean Dorsey, Director of Finance David Erb, Deputy Director of Finance Lynn Jarog and Finance Administrative Assistant Lisa Burkemper. Chairman Charles Bennett was absent. II. ApPROVAL OF MINUTES There was a discussion regarding a typographical error in the minutes. Commissioner Ann Smilanic motioned to approve the minutes of May 22, 2008 as corrected. Commissioner Wayne Gardner seconded the motion. The minutes were accepted as corrected. III. REVIEW OF PROPOSED (2009-2013) CAPITAL IMPROVEMENTS PLAN AND DISCUSSION ON DEPARTMENTAL ISSUES - INTERNAL AND EXTERNAL Summary Director of Finance David Erb provided a brief summary of the proposed CIP and advised that departments would be presenting their CIP items along with any internal and external issues. The 2009-2013 CIP contains approximately $57.2 million in projects, with first year projects totaling about $22 million. Human Services Director of Human Services Nancy Morgan provided an overview of the Human Services department and outlined the wide range of social and nursing services the department provides. Ms. Morgan spoke about a $200,000 state grant they received recently from the Department of Aging and advised what types of equipment would be purchased with the grant money. The Village should receive the grant money before the end of June, 2008. Community Development Director of Community Development Bill Cooney began by outlining the department programs that appear in the proposed CIP, which are continuations from previous years. The projects include Downtown Redevelopment and Corridor Improvements. Mr. Cooney provided an update of several redevelopment projects in various stages throughout the Village. Mr. Cooney advised the Randhurst redevelopment project was set for the Planning and Zoning meeting on June 26 and that the proposed new design will be a lifestyle center consisting of retail, offices, restaurants, entertainment and a hotel. Mr. Cooney also spoke briefly about the triangle redevelopment, the Norwood condos and rowhomes for sale and the commercial Bosch building and Opus/ Alter Development. Also discussed was the Crime Free Housing Program that has been very successful in licensing rental property owners throughout the Village. At this time an estimated 90% of owners are now licensed. Mr. Cooney provided the Commission an outline of the RT AP Grant that will address the ability to move individuals throughout the community. The Village hired a consultant who will look at the proposed Star line along the tollway, the RT A in and out of the community and bike routes throughout town. The process is anticipated to last approximately 9 months and will include discussions throughout the year with the public. Commissioner John Kellerhals asked what the costs to the Village are as related to the redevelopment of Randhurst and the Triangle Project. Mr. Cooney advised that the costs had been openly discussed at public meetings in May and that the costs associated with the projects were broken down by public and private contributions. Mr. Cooney stated that he could provide what was presented to the Village Board at the public meetings. Commissioner Vince Grochocinski asked what kind of sales tax rebate incentives the Village would be offering the developer of Randhurst. Mr. Cooney advised that there is a revenue sharing agreement with the developer and the incentive could be worth as much as $25 million dependent on the success of the redevelopment. Mr. Janonis advised that this complex information is being sent out to the Village Board and that the Finance Commission could be included in this mailing. Fire Department Deputy Fire Chief John Malcolm began with a summary of the department's items in the 2009 - 2013 proposed CIP. Deputy Chief Malcolm spoke about the Fire Station 14, Public Works expansion and the Emergency Operations Center projects. Deputy Chief Malcolm advised that an architect has been hired and a schematic design has been started. The department is also currently in the process of hiring a construction manager for the projects. Deputy Chief Malcolm then provided an update on the internal and external issues within the Fire Department. Deputy Chief Malcolm mentioned that the call volume increased last year and is mostly attributable to the August storm event. There was also a discussion regarding the process of rechassising ambulances instead of purchasing entirely new ambulances. The current Ford ambulance vehicles have had mechanical problems recently and the department is looking at other alternatives to the Ford vehicle. The department will monitor the Ford vehicles and see if they are the best solution. Commissioner Ann Smilanic asked Deputy Chief Malcolm if the department is planning the construction of the new fire station with everything they want and think they will need for the future. Ms. Smilanic was concerned about the department coming back in a couple of years and saying the needs of the department have changed. Deputy Chief Malcolm said that the department is planning a building that will meet the needs of the community and the department for the present and for the next 30-50 years. 2 Police Department Commander Tim Janowick began the discussion on items the department has in the 2009 - 2013 proposed CIP. Commander Janowick specifically discussed the need for new furniture to replace sergeant workstations and commander offices, replacement of the department's temporary evidence lockers and the need for a data backup system. The data back up system would be more efficient for the recovery of data or in the event that the department's system goes down. The department would be able to easily access their data at another offsite location. Police Chief John Dahlberg provided a brief summary of the department's internal and external issues. Chief Dahlberg discussed the traffic unit and the initiatives for which they are responsible for. The unit is instrumental in the Click it or Ticket program and the Drive 25 Keeps Kids Alive Program. For the traffic units efforts in the Click it or Ticket program last year, they were awarded a traffic enforcement laser gun, as they were named best in the state. Chief Dahlberg also discussed a new program called Operation Summer Heat. This program is a data driven program that puts approximately 20-25 officers on the streets in problem areas every Thursday night for hot spot enforcement. Chief Dahlberg provided an update on the new prisoner transport vehicle, the new firing range system, new mobile traffic control unit purchased with DUI funds, new speed monitoring trailer purchase and deferring the purchase of 9 marked squad cars this year. The last item presented to the group was the overtime control strategies that where implemented and which have been successful in curbing the amount of money spent in overtime. Public Works Director of Public Works Glen Andler highlighted several pressing issues this year. Currently the department is working on finalizing an exclusive commercial solid waste program. The new program would make the Village administered refuse collection and recycling program available to approximately 1,000 commercial properties. Recycling will be a huge component to the new commercial refuse program. The other item discussed was the implementation of a rear-yard drainage improvement program. The innovative program will utilize a specific fee that is currently collected in lieu of detention reserves to alleviate surface flooding in established neighborhoods. Approximately $100,000 in fees were collected in 2007 to help residents with flood control projects. The department is currently in the process of developing criteria to be followed in order to proceed with the program. Director of Public Works Glen Andler briefly highlighted several of the items in the proposed CIP pertaining to Public Works. Public Works Director Andler discussed the traffic signal replacement program, lift station stand-by power, Kensington Road improvements and the construction of a salt storage building. Under the IT - Computer CIP section is the proposed purchase of a laptop computers and docking stations for the foreman crews to be used in the field to enter data instead of going back to the office to enter the data from manually prepared documents. 3 Administration Director of Information Technology Joan Middleton outlined several of the projects that were designated as Computer - Hardware/Software projects in the proposed 2009-2013 Capital Improvements Plan. IT Director Joan Middleton discussed server virtualization and the need to consolidate servers and provide for better disaster recovery. Also discussed was the purchase of an EMS reporting system required by the hospital network that all members of the paramedic system must begin using, the beginning RFP process for the purchase of new financial software, the purchase of ruggedized laptops for the inspectors in the Community Development department and the purchase of security cameras for the parking deck located next to Village Hall. Commissioner John Kellerhalls expressed his concern over purchasing ruggedized laptops for the Public Works and Community Development personnel as they appear to be quite expensive and that based on the life span of the equipment and the potential costs savings, other less expensive alternatives should be looked at. Commissioner Ann Smilanic asked why there aren't computer costs in the proposed CIP for the computers that will be needed in the operation of the Emergency Operations Center. Village Manager Mike Janonis stated that the initial costs of the computers are included in the cost of the building as outlined in the CIP. IV. CHAIRMAN'S REpORT There was nothing to report. V. FINANCE DIRECTOR'S REpORT There was nothing to report. VI. NEW BUSINESS There was nothing to report. VII. Next Meeting: July 24, 2008 Commissioner John Kellerhals motioned to adjourn which Commissioner Tom Pekras seconded. The meeting was adjourned at 10:30 p.m. The next meeting is scheduled for July 24, 2008. Respectfully submitted, ~G-~WfvYC Lisa Burkemper Administrative Assistant Finance Department 4