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Admin Committee Minutes 2003 06-12-03 I i I APPROVED PY THE COMMIT - FEE J80ARD OK ' U Page 1 UNITED CITY OF YORKVILLE ADMINISTRATION COMMITTEE JUNE 12, 2003 I Members present: Alderwoman Rose Spears Alderwoman Valerie Burd City Treasurer Bill Powell Alderman Paul James Finance Director Traci Pleckham Police Chief Harold Martin Mayor Art Prochaska City Administrator Tony Graff Guests: Jason Minalga, Envirogen Brian Mihelich, Envirogen City Intern Bart Olson Michael Monteith, Envirogen Jeff Freeman, EEI Kevin McCanna, Speer Financial The meeting was called to order at 6:38 PM by Chairwoman Spears. PRESENTATIONS A) Speer Financial 1) Kevin McCanna from Speer Financial stated that the city has several projects, when proposals need to be submitted for monies, and when the monies need to be available. He is suggesting two financing options: 1) debt certificates and 2) alternate bonds. The debt certificates are more flexible, however the alternate bonds generally give a better interest rates. A specific revenue pledge source (ex. revenue from water) is needed for the alternate bonds and monies from differing sources may be pledged for the debt certificates. The city's projects noted were 1) water, secured by debt certificates with the repayment from water revenues, developer fees, and income taxes, is $4.7 million, with billed insurance, bringing the total to $4.8 million. This will be marketed on June 23 and 20, and coming before city council on June 24 Another $8 million will be financed in the fall of 2003, secured with alternate bonds, using formal pledges of water and sewer sources. Mr. McCanna stated that the debt certificates use funds that are designated either water revenues or from the developers, which can be more flexibly monitored internally; 2) street monies of $1.5 million will be funded in the spring of 2004 and again in May of 2005 by alternate bonds, payable from the general fund, utility taxes and MFT; 3) ComEd sewer monies totaling $1.6 million will be funded in mid- August of 2003 with debt certificates, repayable with general fund and sewer fees -the city must have 1 /2 the monies prior to starting the project. 4) sewers on Bruell Street will be funded in October of 2003 with debt and Countryside sewer monies of $3.3 million will be funded in August of 2003 with alternate bonds from sewer fees and sales taxes. Ten million (approximately) will be the unused debt capacity. He showed repayment schedules, increases in existing and additional bond issue monies, and explained the "bump up" after 20 years on a debt certificate. His opinion was that this was an opportune time to use funding, as interest rates are at a 35 -yr all time low. He stated that debt certificates count against the city's debt limits, thus the use of both the debt certificates and the alternate bonds. Mayor Prochaska questioned if any monies for the ComEd sewer project would be recapturable from connection fees. Administrator Graff stated that YBSD is looking at the revenue stream for additional dollars, hoping that monies needed for connection along the east side approaching Van Emmon and Hwy. 71, as pointed out by Mayor Prochaska, would ultimately come from developers. Mr. Graff was of the opinion that back end funds, after a 9 -10 year period, may be more readily available to the city. The authorizing process for the Countryside project will need to begin soon with 1) passing the resolution; 2) publishing and waiting 30 days and 4) selling the bonds, making monies available end of June or beginning of July. Mr. McKenna stated that any projects must match MFT funds, and that the state is very strict on the particulars concerning alternate bonds. Public hearings are needed on alternate bonds, because there is a potential risk to task payers, should the city fail to make a payment. Mr. McCanna stated he did not feel the city will be paying $600,000 in debt service by year's end and the city cannot afford to pay on the principal, in response to concerns regarding the repayment schedule. He feels it will be a number of years before the city will be able to repay principal, but noted that the money is callable and can be pre -paid. Being aggressive, believing build -outs will be at the current brisk pace, may be too optimistic realistically. B) Fiscal Impact Letter Mr. McCann conducted a budget study on the impact of the Grand Reserve. At the end of 10 years, based on a conservative I i Page 2 projection, he showed the city to the good by $3 million dollars. Any residential development, in the long run, will always cost more than commercial buildings, because of higher costs associated with police and fire issues. He believes the residential population should bring in businesses, and stated the importance of keeping a balance between residential and commercial building. After 9 -10 years, the costs increase, and anew development is a "sunk" cost, becoming an integral part of the city and the economy. Overall, he believes the Grande Reserve is a reasonable project, given the controls by the city, taking the monies as needed during construction. Director Pleckham presented an overall picture of the study with a bar chart visual, after the committee had expressed concern regarding the development in the last session. Cumulatively, the city will be ahead approximately $3 million, with a net present value of 5% at the end of the project. The ( #I) water project will be brought to City Council on June 24 th . C) SSA's - Windett Ridge and North Raintree (formally the Highlands) Three documents for each SSA were presented by Finance Director Pleckham - 1) the establishing ordinance; 2) bond ordinance; and 3) trust indenture. All documents are being reviewed by Attorney Kramer and he is of the opinion that the verbiage is good. The trust indenture tells the city's role, and on page 19, 0 paragraph, 4` lines (Windett Ridge) states that bonds are not the responsibility of the city. Additionally, on page 41, states immunity of recourse for city officers, employees and elected officials. Ms. Pleckham would like to give an overview to the COW on July 0 (especially for N. Raintree and Windett Ridge) and to answer any questions. South Raintree will split their development into 2 SSA's - documentation provided to the committee members regarding this were the 1) proposing and 2) establishing ordinances, which are also being approved by the attorney. Name change information, as long as figures documented are comparable with the PUD, should not pose any problems and the City's document numbers can be referred to in the PUD agreement. Administrator Graff stated that this SSA is tied into the ComEd proposal. The bonding company must see that the interceptor is going to be built, with a commitment from the city, thus the $1.7 million is being pushed up in the time table. The developer has committed a lump sum per - annexation payment of $3 million, which will be put in an interest bearing account, showing in the treasurer's accounting South Raintree will to COW on Tuesday, June 17. Grand Reserve Ms. Pleckham explained that Grand Reserve, in their annexation agreement, stated there were potential SSA's in their development. Timing for intent is not certain, and Ms. Pleckham is seeking opinion from the committee as to whether or not Grande Reserve would need to come to administration committee or directly to COW for approval on the resolution. At issue, stated Mr. Graff, are the attorney fees and upfront costs that Chris Knight would be paid out of the SSA monies issuance. Grande Reserve board has voted to move their annexation date to July 8. Administrator Graffs opinion is that the resolution of intent would go before the COW on July 1. The committee okayed the Grande Reserve resolution of intent going to COW on July 1°` The committee will be updated at the July meeting. Mr. McCanna left the meeting at 7:15 PM. NEW BUSINESS 3) Connection Fee Analysis for the Water Works System Jeff Freeman of Engineering Enterprises conducted an analysis of water connection fees, using the Grande Reserve model. The purpose is to be able to collect sufficient fees to expand the system, meeting water demands created by additional connections. Parts of the development costs are those to physically connect the system and install water mains to and through developments. At issue are the monies now collected residentially and commercially, and the proposal to increase the rates. The current charge for connection is $800 per single detached residential customer, and $400 for single attached multifamily units. Depending on the size of the water storage facility and costs involved in the building and maintenance of the infrastructure, calculations can be determined, using the total of cost to build divided by the total population served. Calculations shown were arrived at using 1 PE (population equivalent) = 100 GPD (gallons per day). Incremental water supplies of well capacities from 350 GPD - 1000 GPD, with additional population served, were shown in illustrations, as well as water storage costs per Page 3 population equivalents (PE's). The water supply and treatment rates, as well as water storage fees, decrease per PE accordingly, 3 as usage increases. Connection fee = supply and treatment + water storage costs. The calculations provided show the total water impact fee at $753 - $1213/ PE, which amounts to $2635 - $4246 per unit, based on 3.5 persons living in one household. Mr. Freeman is recommending, based on each person using 100 GPD (gallons per day), a single family detached connection fee of $2635 / Unit ($753/PE at 3.5 PE/ Unit). For single family attached multifamily connection fees, his recommendation is $2,260/ Unit ($753/ PE at 3.0 PE/ Unit). Commercially, EEI received rates from other municipalities in the area, using 1" - 8" connections. Commercial connection fees in these areas varied considerably, with determining factors being sliding scales based on flow and building footprints, improvements based on streets types, sliding scales for over 2 ", fees for fire suppression systems, as well as fees based on front feet of the property and occupancy (with a sliding scale for number of employees). The Yorkville industries study was based on use, not storage and cost of the connection, which Yorkville currently is using. The study shows Yorkville at the lowest castoff of the cities comparison spectrum ( at $800 for a 1" main, ex.), as compared to Aurora (the highest) at $62,450 for an 8" main connection. Mr. Freeman sees the advantage of commercial and industrial developments in revenue producing dollars, as these may offset the capital costs for required water capacity. His recommended options are 1) utilizing $753 / PE as a fee with $11,295 as a minimum (1,500 GPD); 2) maintaining the connection fee based on meter size, charging the fire connection fee at 31% of the typical meter size (where 1" water connector could be disconnected for non - payment, but maintaining the 8" connection for the fire connection), or 3) use $753 / PE, with a maximum established in a table, and consider a fire service discount for connecting. Administrator Graff stated he believes higher costs for fire connection by commercial / industrial builders will be favorably received, with a discount for fire connections. He suggested a meeting with Eric Dhuse (Public Works), Joe Wywrot (Eng. Dept.) and Bill Dettmer (Building & Zoning) to obtain their input on commercial properties, in particular to establish the 2" users, bringing the recommendations to COW on July 0. He favors offering incentives to commercial / industrial developers. Grande Reserve has been advised regarding the potential residential fee raise. 2) Proposal for Brownfield's Redevelopment Grant Application Administrator Graff stated that the city had been in attendance at conferences to learn about the availability of grants for Yorkville "eye sores ", that require funding for cleanup, and to be environmentally safe. The City has no guarantee that it would be awarded monies if we have a grant. One site is the landfill site, by Beecher, which is adjacent to properties being developed. Presenters were Brian Milhelich, Michael Monteith, and Jason Minalga. The company is Envirogen; managing 900 sites nationwide, with a 12% market share. Initially they identify sites, search a national data base to qualify for ongoing corrective action, prepare grant applications (at no charge) - then if they are awarded the grant monies, Envirogen hopes to be awarded the contract with the City. Envirogen manages the project, from application process to final completion. The Brownfield Grant is available for municipalities through Illinois EPA, with a cap of $240,000 for environmental and remediation work available per municipality. Seventy percent of costs are met by the grant, 30% are assessed the city. The city can match funds in two ways: 1) put up match monetarily, or 2) in kind by municipal time or equipment given toward at the site /s. process. Application sites must have contamination, or "perceived contamination ", which prohibits developers' interest in and around the site /s. The grant's benefits return are 1) returning properties to preductive use, 2) raising employment (if property is used for commercial development), 3) improve the value of surrounding properties, and 4) eliminate threats to the communities. Costs included are 1) initial testing and assessment for environmental conditions, 2) site remediation, 3) remedial action plans, 4) risk based closure (highway authority agreement, ex.), 5) remediation at the site, with an approved plan (ex. removal of underground tanks). Costs not covered are: 1) demolition, 2) asbestos and lead abatement, and 3) geo- technological work. The municipality does not have to own the property under application, but the city must have an access agreement in place, saying that the municipality will benefit when this privately owned property is improved. Property owners may return a proceed of sale of the property to the city, (thus the state benefits, as well ) because of the increased value after clean -up. Potential end uses are a must in the applcation. Guidelines for grant applications are properties: 1) cannot be listed on national priority list, 2) cannot be listed as a solid /hazardous waste facility, 3) not accessible for underground leakage program 4) not associated with federal court or U.S. EPA orders, and 5) meet all other eligibility requirements. Envirogen must present a potential problem to the state for funding, then make sure property meets requirement of SRP, and is not available for any other flmding. The biggest problem is coming to an agreement with the property owners, because of the Page 4 stigma attached with the "government" and the IEPA (and it is perceived the government is telling them how to run their business) stated Mayor Prochaska. Problems may also arise because of the scope of the monies needed to complete a cleanup and there are legitimate and legal reasons for withdrawal of the application. The state must see that the City must profit more than the private owner before the grant is approved, thus it is imperative that a property owner /City agreement must be in place before work begins. Envirogen must approve a "pre- started" Phase I and Phase H (even with another company) before grant monies is approved. The City can approve monies in an agreement with developers, but the City administers all the monies. The City uses this as a tool to get dollars. Zoning changes, TIF, and annexation issues may arise, thus communication prior to the completion is key. Administrator Graff stated Envirogen wants to file an application for the City, with two sites in mind. He favors the company because of their completion from site confirmation to end (with exception of engineering, which is contracted out). If the site completion is not completed (and owners not in agreement ) or the City hires another firm, the $5000 for the Envirogen contract would be due. Each individual project must be individually applied for, with a lifetime cap of $240,000, and Envirogen prepares reports, giving the state and City incremental documentation of monies needed for each phase. The money is in the State budget, per Envirogen. The committee understands the value in increasing the assessment of properties, cleaning up sites, and increasing tax dollars for the City. Envirogen suggested the City first approach the property owners, and the necessary forms will be forwarded to Administrator Graff. He believes one Yorkville property owner is ready to sit down and discuss a Phase I with the City and Envirogen, with the stipulation that his property would increase in value. Dan Kramer will be consulted. Envirogen suggests beginning with only one site. OLD BUSINESS 1) Minutes for Approval/ Correction March 13, 2003 Traci Pleckham will be given the corrections and the minutes will be returned to the next committee meeting. 2) Water Accounts Update This will be updated monthly. Typically, if the meter cannot be read, the billing increases approx. 10 %per cycle, in hopes that the customer will contact the water billing department. Legally, Dan Kramer said we cannot do a shut off, if they are making payments. Mayor Prochaska suggested a graduated fine, if the City is not contacted to put in a meter. Administrator Graff will check the legality. Data cleanup is an ongoing process with the new MSI software. 3) New entry way sign United City of Yorkville size of letters will be taller and placed closer together, with the same look as "character counts ". In addition, "Yorkville" will be moved down. The City has obtained written permission for use of "character counts ". 4) Engineering Assistant - review of job description Position requirements discussed and changes submitted are: 1) to page 2, #1 - add "working knowledge of " (not utilize) Auto Cad, Word and Excel, 2) page 1 to status - add Full -time "exempt!', 3) page 1 - add "Position Supervised - none ", 4) page 1 - #8, add "answer telephone and customer service ", and also strike the words Administrator and Finance Director. Under skills, add 1) "typing - 50 wpM, 2) "will have excellent communication and writing skills ", 3) "highly organized and ability to prioritize assignments".� The Mayor recommended, with committee approval, lowering the salary range for general support personnel, leaving this position within the new salary range, recommending this goes to COW on July 1 for amendment. Administrator Graff will consult with staff for a recommended range for this position. 5) City Engineer 1) Under positions supervised, the committee recommends general (not administrative) support- page 1. 2) Add "certification" to minimum and preferred experience, education and certification - page 2. This will be on the COW agenda in July. Page 5 6) Copier Proposals - review Proposals were received by Finance Director Pleckham from Minolta, Xerox, and Kopy Kat, Kopy Kat will increase the monthly lease cost by 5% after three years. Currently the City is unhappy with their service. Ms. Pleckham recommends Minolta, for these reasons: 1) mid -range for lease expense, 2) the company has given excellent service in preparing the bid, 3) they offer on -site web services, with questions answered within a 4 -hour time frame, and 4) upgrades or downgrades are available, with changes in the monthly leasing charges being flexible. Administrator Graff suggested using a 5 -year lease agreement cost analysis (rather than three year) for the three proposals, using the 66,014 per month copy volume, and taking the proposed overage in copies into consideration. Ms. Pleckham will also document the service time issues experienced with Kopy Kat, to compare with the 4 -hour on -line on -time service offered through Minolta. '�Thepolicejlepartment copier will go to the Beecher Center, and the police will receive a new copier with service agreement, and one with the ability to copy on -line documents. This item will be on the consent agenda at COW on July 1, with a positive recommendation from administration. NEW BUSINESS 1) Emergency Check Signer - City Administrator The City has experienced some difficulty in finding signers for check, and thus, Kim King in accounting, has requested Tony Graff have check signing abilities by way of a verbal approval from the Mayor. It was agreed up that the other signature must be an alderman/woman and that 1) Tony Graff, City Administrator, or 2) Traci Pleckham, Finance Director, could be the second signature. The committee agreed that this should only occur on a payroll check. Administrator Graff will have Attorney Kramer draft a resolution for COW. 4) Thomas Alarm System Dick Heath is unable to do the job, and his recommendation was Thomas Alarm. They installed the City's video surveillance cameras. The City is requesting they do cable/ phone installation, but it is under $5000, so the Mayor can sign this without committee or City Council approval. No further action needed. 5) Ordinance Declaring Compliance with Prevailing Wage Act This is an annual ordinance prepared by Dan Kramer, stating the City's intention to comply with Illinois Wage Act. This will be presented to COW on the July 17` 6) Senior Citizen Refuse Rate Proposal The new rate has been discussed, and it was budgeted, but the City has not voted on it. It will be $.50 monthly for a senior citizen discount. This will go on the consent COW agenda. 7) Furniture/Office Equipment RFP Specifications for City Hall/Police Dept. Build out Staff agreed we should buy all equipment from one retail source. Hon was in the mid -range price desk. Administrator Graff asked the committee for a RPF for proposals, rather than advertising for proposals. The equipment budget was approximately $50,000- 60,000. Mr. Graff will talk to Dan Kramer to see if this is legally permissible. He will also check into the fans which may be needed in the Chamber. Not all furniture will be replaced, only those pieces that are a necessity. Some of the used pieces will go to Public Works. If the RFP's are requested and legally okayed, proposals will be brought to COW in August. 8) Web -Site Update The City website is currently under construction. The construction site is httn://66.253.25.238. Bart Olson, the City intern, has been working on it this summer. A photographer is coming next week to Yorkville. The City Hall picture will be on the website. Page 6 9) PTW - Name Change Update The state budget director cannot be affiliated with the firm, so they have undergone organizational and name change. No action needed. 10) Utility Audit Proposal Ms. Pleckham has been checking firms that conduct audit to save monies on ComEd, NiCor and phone bills. All the companies believe they can save the City up to $15001 month, based on the preliminary information given to Ms. Pleckham. Typically n . cw audit takes a year, and the companies take 50% of the savings for the year, and also 50% of the savings that they find in th udit (ComEd or NiCor, ex. Would be responsible for paying back overcharges ). There will be no fee for this service. Ms. Pleckham is recommending Troy and Banks for the audit. This will go to COW July 1. 11) Project Financial Tracking Worksheet - For Information Only This reflects money that has been paid by developers. Administrator Graff believes it a good visual to track fiscal progress. On this worksheet there are 64 projects. No further action needed. 12) Administration Office Staff - Proposal Annette Williams has been selected as the City Secretary, and will complete her commitment to ICCI, then begin her full time City position. Mary Mizera has been appointed temporary full -time City receptionist, and Mr. Graff has checked on INW policies with Kim King. Legally, at this time. the City is not responsible for benefits for Ms. Mizera. It will be 60 -90 days before she is hired full -time. The administrative staff is discussing some realignment options. In the interim, Ms. Pleckham has been temporarily assigned the duties of office supervisor. Mayor addressed the committee on an additional full time position for the City office. The Mayor suggested this person would be in charge of scheduling meetings, ordering supplies, overseeing meeting spaces, coordinating vacations, resolving problems with the phones and office equipment, and facilities maintenance. In addition, this person may assist in coordinating public events. Mr. Graff and Mayor Prochaska suggested that the Ad -Hoc Committee may have some additional input on this matter. Mayor Prochaska is suggesting the possibility of hiring at budget's mid -year. He and administrative staff will put together a job description draft for the committee's next meeting. The meeting was adjourned at 10:20 PM. Respectfully submitted, Annette Williams PLEASE SIGN IN MEETING: �l'1 DATE: - 12 " O � NAME STREET ADDRESS CITY M riQ(ga 1 I 5 � r k �6wE c n Y I c o i l (3 h 61 +- I a�a r�- �� �re-e- � a � I I E-c�