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City Council Minutes 2011 01-11-11 special meeting SPECIAL CITY COUNCIL MEETING MINUTES OF THE JOINT MEETING OF THE OF THE UNITED CITY OF YORKVILLE CITY COUNCIL AND THE YORKVILLE BRISTOL SANITARY DISTRICT HELD IN THE CITY COUNCIL CHAMBERS, 800 GAME FARM ROAD ON TUESDAY, JANUARY 11, 2011 Mayor Burd called the meeting to order at 6:00 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Milschewski called the roll. Ward I Gilson Present Werderich Present Ward I I Golinski Present Plocher Present Ward III Munns Present Sutcliff Present Ward W Teeling Present Spears Present Also present: City Clerk Milschewski, City Treasurer Powell, Attorney Orr, Public Works Director Dhuse, Finance Director Fredrickson, and City Engineer Wywrot. Members of the Yorkville Bristol Sanitary District present: Kevin Collman, Executive Director; E. Brent Ekwinski, President; Mark Luettich, Treasurer; L. Eric Schoeny, Clerk, Ralph Pfister, retired Executive Director and John Frerich, Walter Deuchler and Assoc. QUORUM A quorum was established. INTRODUCTION OF GUESTS Mayor Burd asked the staff and guests to introduce themselves. She welcomed the guests and asked them to enter their names on the attendance sheet provided. Presentation by YBSD Mr. Collman gave the City Council a presentation on the Yorkville Bristol Sanitary District which included information on its purpose, history, user fee, billing and collection, moving forward, existing and future responsibilities, etc. (see attached). After the presentation, Mayor Burd opened the floor. Alderman Sutcliff thanked the members of the Yorkville Bristol Sanitary District for the presentation. She commented that until recently she was unaware of how things worked so this was good information to know. She felt it was good for residents to know about the information presented. She asked if residents could call YBSD and was advised they welcomed phone calls and that their number was on the water bill. Alderman Golinski stated that at the YBSD meeting it was discussed that they are at 70% of capacity. Mr. Luettich explained that there are two components to capacity; water or flow and organics. Mr. Schoeny added that capacity also varies. He explained how the infiltration and inflow (I &I) of rainwater into the sewers robs capacity because this ground water is then treated as sewer water. Mayor Burd thanked the YBSD for performing the I &I study and for Ralph Pfister for giving the City Council a presentation on the study and ways to fix things. Mayor Burd asked if tours were available at the facility. Mr. Collman stated that tours are always available and that they last about forty -five minutes. Discussion of Sewer Bond Debt Obligations Mayor Burd explained that the situation the city was in with the bonds it owes. She noted how the city lost sales tax revenue from F.E.Wheaton and how developers have walked away from the city. She stated that the City Council was looking at putting a fee on property taxes, raising sewer fees, etc to raise funds for bond payments. She asked if there was any way for the YBSD to assist the city. Finance Director Frederickson explained the sewer issues up for abatement; Rob Roy Creek Interceptor, the Rob Roy Creek Interceptor refinance and the sewer bonds. Mayor Burd stated that YBSD was not obligated to front fund connections. They had 90 days to pay tap -on fees to the city which they have done. The Minutes of the Regular Meeting of the City Council — January 11, 2011— nacre 2 Mr. Coltman explained that they developed a spreadsheet covering the last ten years. The sewer fee of $76.11 has stayed the same since 2001. This rate only covered their debt obligation and budget for a few years. They need the fee to operate as well as to apply to future expansion. Mr. Ekwinski added that at one time they had a concern that YBSD was holding back growth. At that time, they began investigating the next plant expansion and started saving money. Their philosophy sifted and they began using funds to pay down their debt. They are concerned with future mandates so they feel they need to keep a reserve. They looked at lending the city money however they feel they are not qualified to do so and they need to bank funds for the future. Mayor Burd congratulated YBSD for - . their fiscal responsibility. Mr. Ekwinski stated that the Board appreciated Mr. Pfister and Mr. Coltman's work in keeping finances in Iine. He added that YBSD does not get revenue from sales tax, just fees. Mr. Schoeny explained that YBSD was more simple than the city. He stated that they treat sewerage and with the plant being so close to the downtown their focus is on keeping the plant running well. He stated that they have done a good job creating capacity and getting sewage to the plant however the facility cannot handle capacity if the area continues to build out. YBSD has guaranteed it would meet capacity and has engineering in place for plant expansion. The expansion will be a several year project. Mayor Burd commended YBSD on their high level of environmental awareness. She looked forward to using recycled water in the future. Alderman Gilson stated that he would like to see a schedule for the bond payments and for clarification on the exact amount owed. Finance Director Fredrickson stated he would investigate this and get back to the City Council. Mayor Burd stated that Administrator Olson informed her that the Rob Roy Creek Interceptor bonds will escalate each year and be approximately $4 million by the end of the payment term. Alderman Sutcliff asked how the $76.11 was used. It was explained that $25.45 is applied to debt service and the remainder goes toward the general fund. She asked when would the charge expire and Mr. Coltman stated that it was a twenty year lean. Alderman Sutcliff asked when did YBSD plan its expansion. Mr. Coltman stated that expansion will be needed within the next five years. Mr. Ekwinski added that expansion also depended on city growth. Alderman Sutcliff asked if the YBSD could add a year on to its debt service and then give the city a portion of the fee. Mr. Schoeny felt this was a good idea however 100% of the non -debt fee was used towards operational costs. Also, he was not sure the IEPA would allow an extension to the debt period. Mr. Pfister explained that the $76.11 fee was the result of IEPA loan which required a dedicated source to repay it Mr. Coltman also added that the fee has only covered expenses for a few years. Alderman Sutcliff noted that some residents are in the Fox Metro Sanitary District and they pay less. Mr. Schoeny stated that Fox Metro is a larger and more mature sanitary district. It covers seven cities and several counties with an estimated 80,000 users. Alderman Munns asked if the YBSD received money from the real estate taxes. Mr. Coltman explained that there was no levy for real estate taxes. Alderman Golinski thanked the gentleman from the YBSD for their presentation. He asked what would be the trigger point for expansion. Mr. Coltman stated that there is a point where the IEPA looks at capacity and requires expansion planning. This is at 80 %. Director Dhuse noted that the engineering and pipes for expansion are already completed. Alderman Golinski asked if the expansion would be triggered by flow. Mr. Schoeny stated that flow played partially into expansion while organic matter also plays a role. Mr. Coltman added that the Fox River has been put on watch due to levels of dissolved oxygen. The YBSD's permit is up for renewal with the IEPA. They may impose additional standards on the facility or impose more restrictions. They need to be prepared for this possibility. ADJOURNMENT Mayor Burd entertained a motion to adjourn the meeting. So moved by Alderman Plocher; seconded by Alderman Spears. Adjournment of the meeting was unanimously approved by a viva voce vote. Meeting adjourned at 9:55 p.m. The Minutes of the Re lar Meeting of the City Council — January 11 2011— e 2 X11 g tV rV paS Minutes submitted by: i Jacquelyn Milschewski, City Clerk City of Yorkville, Illinois 5� 1, REGULAR CITY COUNCIL MEETING Public Comment January 11, 2011 PLEASE PRINT N SUBDIVISION OR BUSINESS: 7 s [ c omyw J O �w %(L.I ca r 11)'kVV,0- Dauccac44 -. ASSOC. SIGNIN Yorkville - Bristol Sanitary District (YBSD) Presentation to the Yorkville City Council and General Public January 11, 2011 i I PURPOSE: To communicate the duties and role the YBSD rov' p ides to the community and interaction with the City of Yorkville HISTORY: The YBSD was organized under the provisions of the State of Illinois 1917 Sanitary District Act, as a result of the public election on December 27, 1954 and was confirmed by the County Court of Kendall January 5, 1955. The first Waste Water Treatment Plant (WWTP) was a Trickling Filter facility completed in 1957 at a cost of $193,566. Part of the monies to pay for this was derived from the first Federal Grant ever given for wastewater treatment in the State of Illinois. The total grant amount was $62,000 received from the Illinois Sanitary Water Board. The original plant facility had a capacity of 300,000 gallons per day and served the Village of Yorkville and the Village of Bristol. The two communities merged and became the United City of the Village of Yorkville in 1957. In 1972 the Federal Water Pollution Control Act Amendments were passed, (Clean Water Act). This opened up Federal and State Grant monies to be used for water pollution prevention. An activated sludge WWTP was built in 1974 at a cost of $1,237,646. The YBSD received 55% Federal and 25% State grants with the remaining 20% paid by local funds voted by referendum. This plant had a capacity of 700,000 gallons per day. Also that year, the Blackberry Creek Interceptor Sewer was constructed with local, federal and state funds. This is a 24 inch interceptor, 8,300 feet long, and collects the majority of flow from the north side of the River. In 1991, the YBSD applied for and received an Illinois Revolving Loan distributed by the Illinois Environmental Protection Agency (IEPA) in the amount of $3,500,000 for plant expansion to be paid back at 3.59% interest. This expansion increased the WWTP capacity to 993,000 gallons per day. On March 7, 1999, the Polish National Alliance approved selling 19.383 acres of land immediately west of the existing WWTP property to YBSD in the amount of $215,000. This was obviously a very important transaction because the YBSD now has enough land for the entire build -out of its approximately 50 square mile service area. The cost to build another facility in another location would be enormous. In 2001, the YBSD received a letter from the IEPA that placed the WWTP on restricted status. This meant the IEPA would not issue Sanitary Sewer extension 1 permits until the WWTP was expanded to provide more capacity. This also meant the City of Yorkville would not be able to allow development projects to start or be completed. The City Engineer, City Administrator, Yorkville Economic Director, the Mayor and the Executive Director of the YBSD traveled to Springfield to convince the IEPA to continue issuing sanitary sewer permits. We were given permission to continue to receive sanitary sewer permits as long as the WWTP did not exceed its National Pollution Discharge Elimination System ( NPDES) requirements. In 2001, the YBSD applied for and received an Illinois Revolving Loan distributed by the IEPA in the amount of $9,000,000, to be paid back at 2.675% interest. The total cost of this expansion was just under $11,000,000 and was completed in the spring of 2004. This increased the WWTP capacity to 3,600,000 gallons per day, which is the current WWTP capacity. During the period from 2001 to 2004, the YBSD operators and staff worked very hard and were very diligent in keeping the WWTP in compliance with its NPDES permit requirements. It was estimated that the WWTP was receiving pollutants in excess of 150% of its capacity. We honestly do not know how we stayed in compliance. We can say that the people who work at the YBSD take enormous pride in their operation and maintenance duties. Soon after the completion of the YBSD plant upgrade, the City of Yorkville asked if the District would sign an IEPA permit that allowed the City to remove its radium 226 and 228, then discharge its backwash into the sanitary sewer system. The District had just spent approximately $2,000,000 on its digestive system that would produce a class 'A' (sludge) biosolids, the highest quality obtainable for land application. If the District treated the City's backwash it would end up in its biosolids. The District felt that land application of biosolids containing radium, which is not regulated, was too risky from a liability standpoint. Therefore, the City of Yorkville agreed to pay landfill and trucking costs for all the biosolids generated at YBSD. Just recently, radium in biosolids has become a hot topic because the Illinois Emergency Management Agency (IEMA) who regulates nuclear waste, has been mandated to regulate municipal biosolids along with the IEPA. USER FEE BILLING AND COLLECTION: Under the auspices of the 1972 Clean Water Act, the YBSD was mandated to create a sewer user fee to pay for the operation and maintenance of its wastewater transportation and treatment facilities. The City of Yorkville has billed and collected the YBSD Wastewater Treatment User Fee since 1973, although there was a period of about four years when the District did its own billing. The District pays the City for this service and we believe it has been a successful partnership sharing of resources. 2 MOVING FORWARD: Prior to 2001, negotiations between developers and the City were somewhat I � inconsistent on the method of paying for interceptor sanitary sewers. On the suggestion from its consultants, the YBSD instituted an infrastructure fee to be collected from developers to pay for sanitary interceptor sewers 18 inches in diameter or larger. Before the implementation of the Infrastructure Participation Fee (IPF), a representative from Walter E. Deuchler and Associates (WEDA) and the District met with the City of Yorkville's Engineer and Administrator to discuss this policy. These monies were to be collected by YBSD prior to the signing of the IEPA sanitary sewer permit application. 1. Through intergovernmental agreements between the City and YBSD infrastructure fees collected from certain projects were to be paid back to the City. 2. There are three intergovernmental agreements to date for infrastructure fee collection and reimbursement; Rob Roy Creek, Southwest, and Countryside interceptor sewers. Infrastructure fees that have been collected on those projects have been paid to the City from YBSD to this point in time. 3. The agreement signed by the YBSD and the City of Yorkville on 6/14/04 calls for the District to pass on all IPF from developer's tributary to the Rob Roy Creek Interceptor. This has been done. The District has no other obligation to pay for this interceptor. i 4. We realize the City may want to negotiate with developers for various reasons. The City may benefit from increased sales tax revenue or increased real estate taxes. The City may be concerned with securing entire borders. The District has not negotiated with developers ers to promote growth. 5. YBSD receives no revenue from sales tax. The District recently stopped levying for real estate taxes. YBSD revenues come from user fees, annexation fees, infrastructure fees and connection fees. 6. The City of Yorkville and YBSD combine their bi- monthly billing. The YBSD collects a minimum fee of $76.11 from most residential users. This fee has not increased since September 1, 2001. Recent increases in residential bills have reflected increases in the City's portion of the bill. 7. The District is using their fees to pay down debt from the last expansion. The District is also saving funds to pay for future capacity increases. 3 8. The annexation, infrastructure, connection and the dedicated debt service portion of the bi- monthly fees help to insure this policy for increasing capacity. 9. The YBSD believes that growth should pay for itself and should not be a burden on existing residents. 10. YBSD spent over $250,000 for engineering, televising, and cleaning of the City of Yorkville's south side sanitary sewer system in 2009. EXISTING AND FUTURE RESPONSIBILITIES: The YBSD has an existing service area (annexed) of approximately 10 square miles and the current Facilities Planning Area (FPA) is 33.8 square miles. IEPA and CMAP (Chicago Metropolitan Agency for Planning) regulates FPA boundaries. The ultimate service area is expected to be approximately 50 square miles. The YBSD owns and maintains 14 miles of interceptor sanitary sewers eighteen inches in diameter and larger. Since the year 2000 the YBSD has taken ownership of 12.07 miles of sanitary interceptor sewers between the size of 18 inches to 42 inches in diameter at a cost of a little over $19,000,000. It is projected that YBSD will ultimately own and maintain 12.5 more miles of sanitary interceptor sewers or a total of 26.5 miles. One subdivision within the United City of Yorkville not served by YBSD is Grand Reserve. Fox Metro serves Grand Reserve. 1. In 2008 the YBSD also saw completion of a bridge built over the Blackberry Creek to access the future WWTP at an approximate cost of $700,000. 2. The YBSD authorized and constructed the East Plant Utilities Improvements project funded with a 75% interest free revolving loan and a 25% stimulus portion distributed by IEPA in 2009 -2010 at a cost of $1,619,240. 3. The YBSD has paid $1,500,000 for a design of an SBR, MBR proposed WWTP facility with a design capacity of 2.4 million gallons per day. The estimated cost to build this project is $25,000,000. The ultimate buildout capacity projected at this time to be constructed on the property west of the Blackberry Creek is 23 million gallons per day. 4. The YBSD has to demonstrate its financial solvency to the IEPA annually. This guarantees the facility has the capacity to operate financially, 4 maintain its equipment, and pay back the two low interest loans the YBSD borrowed through the State of Illinois revolving loan program. ACCOLADES: The YBSD has an outstanding record and reputation in the water environment community. The YBSD and its personnel have received local, regional (six states), State of Illinois and National awards through the years from many environmental organizations, the IEPA and USEPA. In 1989, the YBSD received the Operation & Maintenance Award from the USEPA for best operated and maintained WWTP in the nation. YBSD was selected out of a pool of over 10,000 WWTP for this award. People from all over the world have visited and toured the YBSD WWTP for many years. We were nominated again in 2008 and 2010 for the State award. CONCLUSION: In conclusion, we have always believed that the City of Yorkville and the YBSD are partners in serving the citizens of the Yorkville community. In reality both governments are here to provide the best services at the least cost. YBSD strives to be consistent with ordinance enforcement to prevent precedents from being established contrary to policy. Executive Director - Kevin Collman Board of Trustees President - R. Brent Ekwinski Treasurer - Mark Luettich Clerk - L. Eric Schoeny Attorney - Dallas C. Ingemunson 5