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HomeMy WebLinkAbout10/27/2004 FC minutes FINANCE COMMISSION DRAFT MINUTES OF THE MEETING OCTOBER 27,2004 VILLAGE HALL BUILDING DRAFT 1. CALL TO ORDER The meeting was called to order at 7:04 p.rn. Those present included Chairman John Kom and Commissioners Charles Bennett, Vince Grochocinski, Brian McPartlin and Ann Smilanic. Also present were Director of Public Works Glen Andler, Deputy Director of Public Works Sean Dorsey, Director of Finance David Erb, Deputy Director of Finance Carol Widmer and Finance Administrative Assistant Lisa Burkemper. Commissioners Ann Hull and Tom Pekras were absent. II. ApPROVAL OF MINUTES Commissioner Charles Bennett motioned to approve the minutes of October 14, 2004. Commissioner Ann Smilanic seconded the motion and the minutes were accepted as presented. III. REVIEW OF THE PROPOSED 2005 VILLAGE BUDGET Public Works Director of Public Works Glen Andler began the discussion by outlining several items that the department accomplished in 2004. Mr. Andler stated that in 2004 8-1/2 miles of road were resurfaced, $3,396,250 was spent on road improvements, 260,000 linear feet of sewer were inspected at a cost of $546,000 in the combine sewer study and the See Gwun bridge rehabilitation project was completed. Also discussed was the $177,600 spent during several days in May preparing for the potential flood of the Des Plaines River. Mr. Andler stated that the money spent in preparation of the flood was not reimbursable through FEMA. Commissioner Brian McPartlin asked if the county has plans to fix the land along the Des Plaines River at River Road to prevent future flooding. Mr. Andler stated that Levy 37 improvements project is scheduled to go to bid in late 2005 or early 2006. Director of Public Works Glen Andler began the discussion on the 2005 Proposed Budget by stating that the Public Works budget totals $20,262,270, which is an increase of 1.46% (less CIP programs) over last year's budget. Also mentioned were the department's $3.2 million in capital projects and $350,000 in vehicle replacements. Mr. Andler then explained the various expenditures by division. One item Mr. Andler highlighted was that the tree cost share program ($54,000) was returned to the budget. Commissioner Brian McPartlin asked if the village could apply for tree grants. Mr. Andler stated that the village is able to apply and does consistently. Mr. Andler also mentioned that Phase 1 of the Prospect Meadows water main replacement project totaling $450,000 would begin. When the project is complete 4,500 linear feet of6" diameter water mains will be relocated from the backyards to right of way's in front street areas. 1,800 linear feet is targeted for year 1 (phase 1). Also year I (phase 1) ofthe combine sewer system repairs will begin. $500,000 is budgeted for this phase. Mr. Andler also stated that the current solid waste contract was extended one more year instead of going out to bid. Commissioner Charles Bennett asked if the solid waste contract allows for an extension. Mr. Andler stated that the contract allows for two extensions of one year each. Director of Public Works Glen Andler also discussed the department projects within the Capital Improvements Plan. In the plan for 2005 is $170,000 for dredging retention pond number 3 in the Kensington Business Center, year 9 of the accelerated road improvement program, in which 8 miles will be resurfaced and $175,000 for the Lincoln Street bridge rehabilitation project. IV. DISCUSSION ON COMBINED SEWER STUDY AND PAVEMENT MANAGEMENT PROGRAM Combined Sewer Study Deputy Director of Public Works Sean Dorsey began the discussion on the Combine Sewer Study by stating that the purpose of the study was to assess the structural condition of the combine sewer system located in the center of town and the oldest parts of town. $245,000 was contractually spent to examine 217,000 linear feet of sewer and review all the televised tapes; this contract was awarded to Baxter and Woodman. Furthermore, $302,074 was contractually spent to clean and inspect the 217,000 linear feet of sewers; this contract was awarded to National Power Rodding Corporation. The results of Baxter & Woodman's study revealed that the village owns 260,000 linear feet of combined sewer. The study divided the sewers into five categories based on the condition of the sewer. The following is a summary of the categories: Category 1 (very good condition) Category 2 (minor structural defects) Category 3 (moderate structural defects) Category 4 (poor structural condition) Category 5 (severe structural condition) 25% 36% 21% 10% 8% The total cost to repair all the defects is $14,145,120. The breakdown is as follows: Category 1 - $0.00, Category 2 - $4,158,000, Category 3 - $4,957,920, Category 4 - $2,547,600 and Category 5 - $2,481,600. These aretoday's costs with no inflation built in. Commissioner Charles Bennett asked if the repairs are done by digging up the ground and replacing pipe. Deputy Director of Public Works Sean Dorsey stated that the method used is a cured in place pipe which is like adding a liner to the inside of the pipe. Mr. Dorsey further explained that the water fund doesn't have the resources to fund all the repairs and that a funding source or several sources need to be identified. Commissioner Vince Grochocinski asked if village water services all the areas in the combine sewer. Mr. Andler stated that the village water does service all the areas. Commissioner Charles Bennett asked what would be the impact on the sewer charge if the village added the cost to the sewer bill. After a brief discussion it was decided that the figures are not easily determined and would have to be worked on. Pavement Evaluation Deputy Director of Public Works Sean Dorsey began the discussion by stating that in 1996 the original pavement evaluation was performed with the plan to reevaluate the program in 2005. However, the plan was reevaluated in 2003 after seven years of the prograrn. The results were very good in that 95% of the village's streets are now in very good or good condition. Because of the good results it was decided that instead of ending the program in 2006, as planned, the program would be extended to 2009. The plan is to extend some of the programs and save funds in 2005 and 2006, then in 2007,2008 and 2009 the balance of the programs would be completed and figures would be readjusted to offset the extension in 2005 and 2006. It was added that this was being done without any concerns of jeopardizing the structural soundness of the streets. Commissioner Vince Grochocinski asked what the average life span of a street is. Mr. Andler stated that the average is about 20 years and that the average age of the village's streets are currently 9 years. 2 V. CHAIRMAN'S REpORT Chairman John Korn advised that the Village Board would have the last budget presentation meeting on November 9t\ and asked for recommendations to take to the board. Director of Finance David Erb wanted to speak to the commission regarding a special meeting he would like to schedule for December 2nd with Third Millennium regarding opportunities to pay bills electronically. The December 2nd meeting could be scheduled with representatives from Third Millennium meeting with the commission for a demonstration of the electronic pay program. Commissioner Brian McPartlin asked if the Third Millennium fees would increase with this service. Finance Director David Erb stated the fees would increase. Commissioner McPartlin suggested that the village survey other communities and/or residents to see how many people would be interested in the service. Mr. Erb also stated that Third Millennium was currently writing up a proposal for the service. After the discussion the finance commission agreed to the meeting on December 2. Commissioner Charles Bennett wanted to add that it was a pleasure to see a balanced budget even though it included some Costco anticipations and some extraordinary income from the sale of some land. Commissioner Bennett also added that he was pleased that in the process of balancing the budget the village was able to keep the reserve fund at the current levels. Commissioner Bennett added that his primary concern was in putting off funding the Capital Improvements Plan with no anticipated income source. Commissioner Brian McPartlin wanted to commend the village and especially public works for the work that has been done in the preparation of the Combine Sewer program. Commissioner Vince Grochocinski stated he was proud the village has managed its finances during the last few years of the economic downturn. The village has continued on and has successfully made major cuts without going through reserves. Commissioner Grochocinski added that the village could now start to look ahead and plan again for the future, especially for the CIP. VI. FINANCE DIRECTOR'S REpORT Director of Finance David Erb mentioned that the commission members were invited to a holiday reception on November 30th and that invitations would be coming in the mail. Mr. Erb added to please respond by Monday November 22nd. VII. OTHER BUSINESS There was nothing to report. VIII. NEXT MEETING: DECEMBER 2. 2004 Commissioner Brian McPartlin motioned to adjourn which Commissioner Charles Bennett seconded. The meeting was adjourned at 9:50 p.m. The next meeting will be Thursday, December 2, 2004. Respectfully submitted, Lisa Burkemper Administrative Assistant Finance Department 3