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HomeMy WebLinkAbout23 - December 1, 2010 COW COMMITTEE OF THE WHOLE MEETING December 1, 2010 The regular Committee of the Whole meeting was called to order by Mayor Schock at 5:00 p.m. in the Council Chambers. Present: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Absent: None. Approval of Minutes Councilmember Warren made a motion, seconded by Councilmember Kaptain, to approve the minutes of the November 17, 2010, regular meeting and the November 10, 2010, special meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Budget Discussion RuthAnne Hall, Budget Officer, reported that information is continually being added to the city’s budget website. Also, available is information on the Police and Fire pensions. Colleen Lavery, Chief Financial Officer, and Ms. Hall then presented the next portion of the proposed 2011 budget. (See attached presentation.) Ms. Lavery stated that total tax revenue as a percentage of total revenue is lower than those of AAA bond units and lower than that of Aurora. She also noted that sales tax revenue is a concern as it is much lower as a percentage than that of other comparables. She said that investment in economic development is important. Intergovernmental revenue could be a concern as these payments can be received late and then have to be covered temporarily by cash reserves. Ms. Lavery emphasized that the city has contributed 100% of the required amounts necessary to fund the various pensions. Ms. Lavery said that staff is recommending that a reserve ratio be established at 16-19%. Councilmember Steffen asked if there had ever been a target before and Ms. Lavery said there had not. Councilmember Dunne said that one year was not a good picture and wondered if a five year summary could be provided. Ms. Lavery said it could. Councilmember Steffen asked why the city shows the pensions as being funded at 100% and the Chicago Tribune reported a lower percentage. Ms. Lavery said the difference is in the assumptions that the city’s actuaries project and what the State of Illinois projects. Mr. Stegall then commented that one should also compare the State’s bond rating against the city’s bond rating. During the discussion of the Golf Operating Fund, Mr. Stegall took the opportunity to introduce Mike Lehman, Director of Golf Operations, Jim Vogt, Assistant Director of Golf Operations, and Brad Legnaioli, Golf Course Superintendent. He thanked them for doing an amazing job during the past year. Committee of the Whole December 1, 2010 Page 2 In regards to the User Fee Study, Councilmember Steffen asked if this can be updated as necessary. Ms. Lavery said that the software provided will give the city the ability to do this. Mayor Schock said that he would like to have the consultant also provide the possible impact of changing fees, especially if there is a competitive advantage. Mr. Stegall said the study will also show what the costs are to provide certain services. Councilmember Kaptain said the study should take a holistic view. Councilmember Dunne would also like to look at combining our out-sourcing services. He liked the on-going approach of the User Fee Study. Councilmember Prigge said he would like to reward good behavior and suggested possible waiving certain fees for one year to those deserving of such. Councilmember Warren suggested a program similar to the rental fee program. Mr. Stegall said the fee schedule would be submitted to the Council and feedback will be requested. At the end of the budget presentation, Councilmember Gilliam said he would like staff to look at purchasing some strategic properties for future development and see if bonds could be used to pay for this. He said the city needs to be ready for a future economic upswing. Consideration of Resolution in Support of Seven Grant Applications for Road Improvements A resolution will be presented at tonight’s Council meeting for adoption by the City Council. Snow Removal Presentation David Lawry, Public Services Director, gave a presentation on the upcoming snow removal season. He noted that route changes had been made due to staffing constraints and driver suggestions. He said that three routes had been consolidated and one super route had been added. This results in a total of sixteen residential routes and four super routes. Mr. Lawry explained the brine-making process. He stated this had been a $50,000 investment and it is estimated it will result in a $75,000 savings per year. He said that 50,000 gallons can be made in a week and that this is in excess of what has been used in the past for an entire season. Councilmember Gilliam asked if the excess can be sold to another government entity and Mr. Lawry explained that there were on-going discussions to enter into a partnership with Hanover Township for snow removal efforts. The salt brine is ultimately mixed with beet juice and currently there are 90,000 gals in stock. This “super mix” reduces rock salt usage by 30% and has a potential savings of $190,000 per year based upon 7,500 tons used each year. Committee of the Whole December 1, 2010 Page 3 There are three city salt domes and rock salt storage is at full capacity with 14,000 tons on hand. The city has contracted to purchase up to 10,000 tons this season, if necessary. Average seasonal usage is 7,500 tons. It is planned to be at full capacity at end of season Mr. Lawry also reported that there are 51 pieces of equipment with plows, that 46 trucks can be out at one time, and that downtown sidewalks will be addressed after roads are clear. He also noted that out of 92 total drives, 24% of them are new. All drivers are experiencing on-going training. Snow removal in cul-de-sacs and public parking lots will be covered by contractual services. Agency relationships currently exist or are in discussion with Hanover Township, Elgin Township, Rutland Township, Plato Township, Campton Hills, Senior Services, and Downtown Neighborhood Association. New procedures with the Police Department should result in improved communication for snow route parking and notification of trouble spots. He also announced that the winter brochure will be mailed the following week. Mr. Lawry thanked staff for the great job in removing leaves. Leaf pickup ended the week of November 27th and bag picked will end on December 3rd. Councilmember Prigge asked what the protocol was for pre-salting and Mr. Lawry said this was done at intersections, on bridges, and on hills. Councilmember Warren asked if the city was partnering with other government entities to service under-served areas. Mr. Lawry said that meetings are held annually with other agencies to discuss these concerns. Councilmember Kaptain asked if there was any interest in working closer with Hanover Township. Mr. Lawry said there definitely is and that discussions are already being held with them. Mr. Stegall said there were also discussions with South Elgin to partner on some snow removal services. Councilmember Dunne asked for copies of agreements with other communities and can the city look at doing private streets. Mr. Lawry replied that the agreements are contained in the Snow & Ice control manual that was distributed to Council. He said the city had not looked at doing private streets, but could possibly look into that for next year. Consideration of Feasibility Study for Hydropower at Kimball Street Dam Mark Matusak from ORENCO Hydropower gave a presentation on building a hydropower facility at the Kimball Street dam. He said that Elgin is in the unique position of having what is usually the lowest cost stand-alone renewable resource – incremental hydro. He said the feasibility study would: 1. Develop the initial proposed project design. ORNECO Hydropower Inc. will outline the 2-3 potential project design approaches, to solicit the City’s preferences on project design, location, and appearance. Based on the City’s preferences, they will develop a Committee of the Whole December 1, 2010 Page 4 proposed project design that includes the project’s technical design (turbine, generation, controls, inlet/outlet structure, electrical interconnection, etc.), location, size, and appearance. 2. Develop a preliminary estimate of the project capital cost for that design. They will develop a revised preliminary cost estimate for the preferred including initial civil engineering, equipment cost assessment and installation costs. 3. Evaluate the financial benefits and costs of the project. 4. Verify with the FERC that there are no known major roadblocks to the project. They will also clarify the likely requirements and timing of the FERC licensing process, which includes a number of studies and environmental reviews and public hearings. 5. Develop a financial risk analysis on the project. 6. Begin to identify the important issues and tradeoffs from key stakeholders. They will facilitate a meeting of selected stakeholders to assess which issues they see as important as well as identifying the value metrics to be considered in developing the project. The goal is not to resolve to the issues, but only to clarify those that will likely influence the project design, cost and benefits, as well as to begin to understand the value tradeoffs that will need to be considered. 7. Provide the findings of the Study to the City Staff and the City Council. Mr. Matusak said that a very preliminary analysis indicates the 750 KW project at Elgin could have a Net Present Value of about $1.6 million. The project could take up to three years from the date of decision to complete and the payback would be approximately four years. Councilmember Gilliam asked what sources of funding might be available and Mr. Matusak said that government bonds are often available or that financing might be considered. Councilmember Kaptain mentioned that the Fox Valley Water Reclamation District and the Gail Borden Library have expressed some interest in partnering on the project. Councilmember Steffen mentioned that he was intrigued by the project as it might minimize the repairs that have to be made to the dam on somewhat regular basis. Councilmember Prigge asked if there was anything unique about this dam that either helps or hurts the project. Mr. Matusak replied that the likelihood of the dam going away due to damage was low and this was a plus. He did say that the small size of the dam was a possible disadvantage. Committee of the Whole December 1, 2010 Page 5 Councilmember Warren made a motion, seconded by Councilmember Kaptain, to approve an agreement with ORENCO Hydropower for the services necessary to conduct a hydropower feasibility study for the Kimball Street Dam. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Acceptance of Public Improvements within Shadow Hill Unit 3 Subdivision Councilmember Gilliam made a motion, seconded by Councilmember Dunne, to accept the public improvements in the Shadow Hill Unit 3 Subdivision. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Fire Protection Agreements for 2011 Councilmember Gilliam made a motion, seconded by Councilmember Warren, to approve fire protection agreements with Illinois Tool Works, DSM Desotech, and St. Charles Properties for 2011. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Contract with Sherman Benefit Manager for Pre-Placement Physicals for the Fire Department Councilmember Steffen made a motion, seconded by Councilmember Dunne, to approve a contract with Sherman Benefit Manager for pre-placement physicals and other related services for firefighter candidates. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, and Mayor Schock. Nays: None. Councilmember Warren abstained due to conflict of interest. Consideration of Contract with Provena St. Joseph Hospital for Pre-Placement Physicals for Public Services and the Police Department Councilmember Kaptain made a motion, seconded by Councilmember Gilliam, to approve a contract with Provena St. Joseph Hospital for conducting pre-placement physicals and other related services for police officer candidates and public services laborers. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Committee of the Whole December 1, 2010 Page 6 Consideration of Contract with Water Well Solutions for Deep Well #1 Motor Repair Councilmember Dunne made a motion, seconded by Councilmember Steffen, to approve a contract with Water Well Solutions of Elburn, Illinois for repairs to the motor for Deep Well #1 in the amount of $28,428. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Assignment of the Agreement with Curbside Incorporated to Waste Management Curbside, LLC Councilmember Warren made a motion, seconded by Councilmember Steffen, to approve an assignment of the agreement with Curbside Incorporated to Waste Management Curbside, LLC to provide residents with a safe and convenient option to dispose of household hazardous waste. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Amendment to Chapter 11 of the Elgin Municipal Code, Entitled “Vehicles and Traffic” Councilmember Kaptain made a motion, seconded by Councilmember Steffen, to approve an ordinance prohibiting on-street parking along the north side of Seminole Drive between Indian Drive and Blackhawk Drive every day from 2 AM to 6 AM. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Community Development Block Grant Sub-Recipient Agreement with Public Action to Deliver Shelter of Elgin Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to approve a Sub- Recipient Agreement with Public Action to Deliver Shelter of Elgin to assist with the reimbursement of monthly lease expenses for their emergency shelter in the amount of $50,000. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Announcements from Council Councilmember Prigge announced that the Pet Health and Safety Drive was very successful. One hundred nineteen animals were inoculated. He thanked all who assisted or participated, especially Kristie Hilton and Animal Control Officer Jim Rog. Mayor Schock also recognized Councilmember Prigge for his efforts. Councilmember Warren stated that he was proud of staff for finding a way to do things better. Councilmember Dunne announced an upcoming fund raiser on December 11, 2010, for Pat Keeney, a local business owner. Committee of the Whole December 1, 2010 Page 7 Announcements from Staff Cherie Murphy, Assistant to the City Manager for Community Engagement, announced upcoming city events. Adjournment Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. The meeting adjourned at 6:35 p.m. s/ Diane Robertson December 15, 2010 Diane Robertson, City Clerk Date Approved