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Home My WebLink About96-38 E i Resolution No. 96-38 RESOLUTION EXPRESSING OFFICIAL INTENT REGARDING CERTAIN CAPITAL EXPENDITURES TO BE REIMBURSED FROM PROCEEDS OF AN OBLIGATION WHEREAS, the City of Elgin (the "Issuer" ) has developed a list of capital projects (the "Projects" ) described in Exhibit A hereto; and WHEREAS, all or a portion of the expenditures relating to such projects (the "Expenditures" ) will be paid on or after the passage of this resolution; and WHEREAS, the Issuer reasonably expects to reimburse itself for the Expenditures with the proceeds of an obligation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . The Issuer reasonably expects to reimburse the Expenditures with proceeds of an obligation. Section 2 . The maximum principal amount of the obligations expected to be issued for the projects is $13, 990, 700 . Section 3 . All actions of the officers, agents and employees of the Issuer that are in conformity with the purposes and intent of this resolution, whether taken before or after the adoption hereof, are hereby ratified, confirmed and adopted. Section 4 . That this resolution shall be in full force and effect immediately upon its adoption. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 14 , 1996 Adopted: February 14 , 1996 Vote : Yeas 4 Nays 3 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk Exhibit A: 1996 Bond Sale Projects General Capital: Access Road - South from Rt. 72 $1,900,000 Hemmens/City Hall HVAC 1,260,000 Hemmens Replacement of Expo Hall Roof and Basement Ceiling 445,000 Hemmens Safety and Interior Improvements 197,700 Kimball Street Corridor 125,000 Kimball/Rt. 31 Intersection 550,000 Renovation of City Facilities 640,000 Subtotal $5,117,700 Water Capital: AMR Meter Conversion $ 525,000 Airlite Plant Sludge Lagoons 775,000 Airlite Water Plant Upgrade 25,000 Annual Distribution System Upgrading 525,000 Big Timber Phase 3 Water Main 1,235,000 Northwest Corridor Water Main 160,000 Randall Road 1MG Water Tower 1,430,000 Randall Road Water Main 140,000 Riverside Water Treatment Plant Expansion 45,000 Subtotal $4,860,000 Sewer Capital: Annual Neighborhood Sewer Repairs $ 263,000 Big Timber Sanitary Sewer 360,000 Combined Sewer Overflows 75,000 Otter Creek Lift Station 2,950,000 Randall Road Sanitary Sewer 365,000 Subtotal $4,013,000 Total 1996 General Obligation Bond Issue $13,990,700 PUBLIC FINANCE CONSULTANTS SINCE 1954 SPEER FINANCIAL INC. ELWOOD BARCE RICHARD A.PAVIA KEVIN W.McCANNA DAVID F.PHILLIPS LARRY P.BURGER DANIEL D.FORBES CHAIRMAN EMERITUS CHAIRMAN EMERITUS PRESIDENT SR.VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT March 27, 1996 The Honorable Kevin Kelly and Members of the City Council City of Elgin 150 Dexter Court Elgin, Illinois 60120 Dear Mayor Kelly and City Council Members: Bids were received today for the $13 , 990, 000 General Obligation Corporate Purpose Bonds, Series 1996. There were 5 bids received which are listed at the bottom of this letter in accordance with the attached signed bids. Upon examination, it is our opinion that the bid of Everen Securities, Inc. , Chicago, Illinois, is the best bid received, and it is further our opinion that the bid is favorable to the City and should be accepted. We therefore recommend that the Bonds be awarded to that bidder at a price of $13 ,990, 000. 00, plus accrued interest, being at a net interest rate of 5. 6548% . Net Account Managers Interest Rate ABN AMRO Securities (USA) Inc. , Chicago . . . . . 5 . 7244% Dain Bosworth Incorporated, Chicago . . . . . . . 5. 7202% Everen Securities, Inc. , Chicago . . . . . . . . 5.6548% Harris Trust & Savings Bank, Chicago . . . . . . 5. 7195% Merrill Lynch & Co. , Los Angeles . . . . . . . . 5. 7911% Respectfully submitted, Kevin W. McCanna President KWM/mob Enclosure SUITE 3435.55 EAST MONROE STREET•CHICAGO,ILLINOIS 60603•(312)346-3700•FAX(312)346-8833 SUITE 500.531 COMMERCIAL STREET•WATERLOO,IOWA 50701•(319)291-2077•FAX(319)291-6787 SPEER FINANCIAL, INC. PUBLIC FINANCE CONSULTANTS SINCE 1954 SUITE 3435 • 55 EAST MONROE STREET • CHICAGO, ILLINOIS 60603 • (312) 346-3700• FAX(312)346-8833 Investment Rating: Moody's Investors Service. . .Aa $13,990,000 CITY OF 11,GIN Kane and Cook Counties, Illinois General Obligation Corporate Purpose Bonds, Series 1996 Date of Sale: March 27, 1996 Average Life: 13.648 Years Bond Buyer Index: 5.86 (Based on NIC) Bidders* Price Maturities Rates Interest Everen Securities, Inc. , Chicago, Manager 100.00% 1998-2003 8.00% 5.654838% First of America, Kalamazoo, Member 2004 6.625% $10,796,977 2005-2006 5.00% 2007 5.20% 2008 5.30% 2009 5.40% 2010 5.50% 2011 5.60% 2012-2016 5.625% Harris Trust and Savings Bank, Chicago, Manager 100.00% 1998-2003 8.00% 5.7195% Gruntal & Co. , Inc. 2004 6.65% $10,920,592 Interstate/Jonhson Lane Corporation 2005 5.00% Mesirow Financial Inc. 2006 5.10% Northern Trust Securities, Inc. 2007 5.20% Wachovia Bank of North Carolina 2008 5.30% American National Bank and Trust Co. of Chicago 2009 5.40% Banc One Capital Corporation 2010 5.50% Bernardi Securities, Inc. 2011 5.60% Boatmen's National Bank of St. Louis 2012 5.65% Corby North Bridge Securities 2013 5.70% Cronin & Co. , Inc. 2014-2016 5.75% Douglas & Co. Municipals, Inc. First Tennessee Bank Memphis Howe Barnes Investments, Inc. Isaak Bond Investments, Inc. Josephthal, Lyon & Ross, Inc. Old Kent Bank - Chicago Securities Corporation of Iowa R. Seelaus & Company, Inc. Southwest Securities Incorporated UMB Bank, N.A. A.H. Williams & Company, Members Dain Bosworth Incorporated, Chicago and 100.01% 1998-2003 8.50% 5.7202% Griffin, Kubik, Stephens & Thompson, Inc. , Co-Mgrs 2004 8.375% $10,921,946 Raymond James & Associates, Inc. , St. Petersburg 2005-2015 5.50% 2016 5.60% Bidders* Price Maturities Rates Interest ABN AMRO Securities (USA) Inc. , Chicago 100.00% 1998-2004 7.25% 5.7244% Dean Witter Reynolds Inc. 2005 5.00% $10,929,903 Prudential Securities Incorporated 2006 5.10% PaineWebber Incorporated, Joint Managers 2007 5.25% 2008 5.35% 2009 5.45% 2010 5.55% 2011 5.65% 2012 5.70% 2013-2016 5.75% Merrill Lynch & Co. , Los Angeles 100.01% 1998-2003 8.00% 5.791051% 2004 7.50% $11,057,053 2005 5.15% 2006 5.25% 2007 5.30% 2008 5.40% 2009 5.50% 2010 5.60% 2011 5.70% 2012-2016 5.75% *Syndicate information is provided by the underwriter. The information contained in this report is the most current available. r , CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS $13,990,000 General Obligation Corporate Purpose Bonds, Series 1996 **FINAL** DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST TOTAL P+I FISCAL TOTAL 4/15/1996 - - - - - 7/01/1996 - - - - - 1/01/1997 - - 578,358.22 578,358.22 578,358.22 7/01/1997 - - 406,658.13 406,658.13 - 1/01/1998 140,000.00 8.000% 406,658.13 546,658.13 953,316.26 7/01/1998 - - 401,058.13 401,058.13 - 1/01/1999 145,D00.00 8.000% 401,058.13 546,058.13 947,116.26 7/01/1999 - - 395,258.13 395,258.13 1/01/2000 150,000.00 8.000% 395,258.13 545,258.13 940,516.26 7/01/2000 - - 389,258.13 389,258.13 1/01/2001 155,000.00 8.000% 389,258.13 544,258.13 933,516.26 7/01/2001 - - 383,058.13 383,058.13 - 1/01/2002 395,000.00 8.000% 383,058.13 778,058.13 1,161,116.26 7/01/2002 - - 367,258.13 367,258.13 1/01/2003 610,000.00 8.000% 367,258.13 977,258.13 1,344,516.26 7/01/2003 - - 342,858.13 342,858.13 1/01/2004 630,000.00 6.625% 342,858.13 972,858.13 1,315,716.26 7/01/2004 - - 321,989.38 321,989.38 - 1/01/2005 690,000.00 5.000% 321,989.38 1,011,989.38 1,333,978.76 7/01/2005 - - 304,739.38 304,739.38 1/01/2006 725,000.00 5.000% 304,739.38 1,029,739.38 1,334,478.76 7/01/2006 - - 286,614.38 286,614.38 1/01/2007 755,000.00 5.200% 286,614.38 1,041,614.38 1,328,228.76 7/01/2007 - - 266,984.38 266,964.38 - 1/01/2008 790,000.00 5.300% 266,964.38 1,056,964.38 1,323,968.76 7/01/2008 - - 246,049.38 246,049.38 1/01/2009 830,000.00 5.400% 246,049.38 1,076,049.38 1,322,098.76 7/01/2009 - - 223,639.38 223,639.38 1/01/2010 870,000.00 5.500% 223,639.38 1,093,639.38 1,317,278.76 7/01/2010 - - 199,714.38 199,714.38 - 1/01/2011 910,000.00 5.600% 199,714.38 1,109,714.38 1,309,428.76 7/01/2011 - - 174,234.38 174,234.38 1/01/2012 960,000.00 5.625% 174,234.38 1,134,234.38 1,308,468.76 7/01/2012 - - 147,234.38 147,234.38 - 1/01/2013 1,055,000.00 5.625% 147,234.38 1,202,234.38 1,349,468.76 7/01/2013 - - 117,562.50 117,562.50 1/01/2014 1,140,000.00 5.625% 117,562.50 1,257,562.50 1,375,125.00 7/01/2014 - - 85,500.00 85,500.00 - 1/01/2015 1,275,000.00 5.625% 85,500.00 1,360,500.00 1,446,000.00 7/01/2015 - - 49,640.63 49,640.63 1/01/2016 1,765,000.00 5.625% 49,640.63 1,814,640.63 1,864,281.26 TOTAL 13,990,0DO.00 - 10,796,977.14 24,786,977.14 YIELD STATISTICS Bond Year Dollars......... ............... S190,933.44 Average Life...................................... 13.648 Years Average Coupon................................... . 5.6548381% Net Interest Cost (NIC)........................... 5.6548381% True Interest Cost (TIC).......................... 5.6737545% Bond Yield for Arbitrage Purposes................. 5.6737545% All Inclusive Cost (AIC).......................... 5.6737545% IRS FORM 8038 Net Interest Cost................................. 5.6548381% Weighted Average Maturity......................... 13.648 Years Speer Financial, Inc. FILE - J:\MUNEXP\DATA\ELGIN-bidckl3.990go Public Finance Consultants 3/27/1996 11:51 AM 03/27/96 11:16:50 212-553-4000-> 1 312 346 0033 Moody's Investors Page 003 Moody ' s Municipal Daily Rating Recap Elgin, Illinois Rating date: March 26, 1996 `yr+ Moody's rating: Aa General Obligation Corporate Purpose Bonds, Series 1996 Sale: $13,990,000 Capital Needs are Manageable .- ,Date of Sale: March 27 Growth-related replacement and expansion needs are Type: Competitive present. However, the magnitude of additional borrow- Security: General obligation, unlimited tax, mg is not expected to be substantial. Concerns are also Use of Proceeds: Finance various corporate,water and tempered by tax base growth, and enterprise support and f(.i. .:, sewer projects. aggressive retirement of outstanding debt Last Rating change: No change. Credit Comment: Confirmation of the city's Aa gen- eral obligation rating is based on the following credit Following General Fund operating deficits recorded dur- factors: ing fiscal 1991 through 1993,management actions have Favorable Growth Patterns restored fiscal balance. A $3.6 million surplus is expected for fiscal 1995, mainly reflecting a 0.75% local Population, as well as commercial and industrial activity, option sales tax imposed in early 1995 continues to expand. Much of the growth is occurring in annexed areas, which has given parts of the city a Gaming Revenues Not Relied Upon to Fund suburban character. A special census will be undertaken Operations in 1996 to certify the growth. Recognizing the volatile nature gambling revenues,the Effort Aimed at Downtown Revitalization are Noted city has earmarked this source exclusively for one-time and capital expenses. Home rule status confers the abil- The downtown area has suffered from decline and ity to levy property taxes without limit,raise sales taxes, changing function, which contribute to the city's above and numerous other options. average unemployment rate and relatively slow per cap- ita income growth. Riverboat gambling, which began in late 1994, is expected to spur development. analyst: Harvey Zachem (212) 553-7731 i'*n a. Agenda Item No . February 8, 1996 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Authorization for 1996 Bond Sale for Neighborhood and Other Capital Improvements PURPOSE The purpose of this memorandum is to obtain authorization to seek sealed bids for $13, 990, 700 General Obligation Corporate Purpose Bonds planned in the 1996 Budget and the Five-Year Financial Plan. BACKGROUND In 1996 , the City anticipated issuing bonds totaling $5, 117 , 700 for general capital improvements, $4 . 860 million for water capital improvements and $4 . 013 million for sewer capital improvements . With several of the contracts for capital projects coming before the City Council prior to the actual sale of the bonds , approval of the funding source is necessary and financially prudent. The entire list of projects is identified in Exhibit A. General obligation projects include such items as engi- neering for the Kimball/Route 31 Intersection, Kimball Corri- dor and Improvements to Hemmens and City Hall . The 1996 $13,990,700 G.O. issue was reviewed in light of the ratios developed within the debt policy adopted on October 26 , 1994 . A comparison of the ratios are shown below: As of Type of Ratio 12/31/96* Median Ceiling Direct Net Debt Per Capita $585 $677 $812 Ratio of Net Direct Debt to Estimated Full Value 1 .53 1 .83 2 .20 Mayor and Members of the City Council Authorization for 1996 Bond Sale February 8, 1996 Page 2 As of Type of Ratio 12/31/96* Median Ceiling Overlapping Net Debt Per Capita $1 , 260 $1,270 $1 , 524 Ratio of Overall Net Debt to Estimated Full Value 3 . 29 3 . 34 4 . 01 Net Direct Debt as a Percentage of Operating Expenditures 15 . 45% N/A 17 . 5% * Includes the planned 1996 bond issue and those retirements scheduled in 1996 . Debt service schedules are in the process of being prepared and will maximize principal retirement in light of the City' s self-imposed $1 . 92 property tax rate. The City has historically issued general obligation bonds rather than revenue bonds for water and sewer projects . User fees collected from water and sewer customers have been uti- lized to retire the annual principal and interest. The appli- cable portion of the property tax levy was then abated to ensure no property taxes were levied. General obligation debt, because of the ultimate pledge of property tax dollars , carries a lower interest rate . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Five-Year Financial Plan community meetings, Speer Financial , and Moody' s Investors Service. FINANCIAL IMPACT Retirement of these bonds has been taken into consideration as part of the Five-Year Financial Plan and will be budgeted accordingly. The ratios outlined in the debt policy are within the prescribed limits . The bonds will be utilized to fund arterial streets, building safety and renovation capital improvements throughout the city. In anticipation of this bond sale, contracts for sever- al capital projects are being be brought to the City Council . LEGAL IMPACT All future actions should continue to be coordinated with bond • counsel . Mayor and Members of the City Council Authorization for 1996 Bond Sale February 8, 1996 Page 3 RECOMMENDATION It is recommended that the City Council authorize proceeding with the sale of $13,990, 700 General Obligation Corporate Purpose Bonds . .Respectfully submitted, l �J es R. Nowicki F nance Director Ric and B. Helwig City Manager JRN/daw Attachments I i • El n Memorandum February 5, 1996 TO: Richard B. Helwig, City Manager FROM: James R. Nowicki, Finance Director�l SUBJECT: 1996 Proposed Bond Sale Pursuant to our discussion last week relative to the 1996 bond sale, I have confirmed with those department managers affected, the final dollar amounts required for those projects approved in the budget. Below please find a summary of those changes with an explanation provided by the appropri- ate department/division head. The dollar amounts for the Hemmenn Safety and Interior ( $197,700 ) , Miscellaneous Renova- tions - City Facilities ( $640, 000 ) , and Hemmens/City Hall HVAC ($1,260, 000 ) projects have not changed and therefore are not included in the summary listed below. General Capital Project Original Amount Revised Amount Explanation Kimball Corridor $ 110,000 $ 125, 000 1 Kimball St . /Rt. 31 Intersection 1, 695,000 550, 000 2 Hemmens Expo Hall Roof & Basement Ceiling Repl . 375, 000 445,000 3 Access Road - South from Rt. 72 1 ,400,000 1, 900,000 4 Total $3, 580, 000 $3 , 020,000 Explanation 1 The initial $110, 000 budget accomplished the completion of the plans, specifications and cost estimates for the Kimball Street reconstruction project. The additional $15,000 will include engineering associated with demoli- tion of existing structures within the recently acquired right-of-way. Richard B. Helwig February 5, 1996 1996 Proposed Bond Sale Page 2 2 Due to the delay in obtaining METRA and IDOT approvals for the reconfigured intersection of Kimball Street at Illinois Route 31 (State Street) , the project construc- tion will be delayed until January, 1997 . Our engineer has indicated there may be a cost savings as well as less congestion if both Kimball Street and the Kimball/Route 31 Intersection were completed simultaneously. The requested $550, 000 in the 1996 bond issue will be needed for anticipated project payments , with the remaining project costs included as part of the 1997 bond issue . 3 Revised estimates for this project involving a combina- tion of concrete, roofing, and ceiling tile replacement work have just been completed. Earlier estimates done in 1992 when this project was first considered have been adjusted upward by $70, 000 . 4 In November, 1995 when negotiations with Motorola were completed, the City agreed to assume 100% of the cost of right-of-wF-y acquisition and 50% of the cost of design and construction of an access roadway. The preliminary cost of the roadway design and construction was estimated to be $1, 905 , 000 , with the State picking up $950 , 000 and the City paying $955, 000 . At that time it was estimated that right-of-way acquisition costs would total $450, 000 . Subsequent to Motorola ' s purchase of property at $2 . 66 per square foot ( $116 , 000 per acre) , it appears that the City could pay up to $1 . 4 million for the right-of-way acquisition. Initially the City will attempt to purchase the right-of-way below the $2 . 66 cost by demonstrating to the various property owners the added benefit that the roadway brings to their as yet undeveloped site. Howev- er, it appears prudent to set aside an additional $500, 000 in order to provide adequate funds to pursue the negotiations . Water Capital No changes to the 1996 Budget. Sewer Capital No changes to the 1996 Budget . Attached is a copy of the water and sewer major capital projects as approved in the 1996 Budget. Richard B. Helwig February 5, 1996 1996 Proposed Bond Sale Page 3 i Summary The original 1996 bond sale in the Five-Year Financial Plan was shown as $4 ,277 , 700, plus $1, 400, 000 for the Route 72 Access Road totaling $5 , 677 ,700 . The revised amount based upon the changes mentioned in the memorandum will total $5, 117, 700 . General Capital Original Bond Sale ( $4 ,277 ,700 and $1, 400 , 000* ) $ 5 , 677 , 700 Kimball St . /Route 31 ( $1 ,695,000 to $550 , 000 ) ( 1 , 145, 000 ) Kimball Corridor ( $110 ,000 to $125, 000) 15, 000 Hemmens Expo Hall Roof ( $375,000 to $445, 000) 70, 000 Increased R.O.W. Acquisition Costs 500, 000 Revised General Capital Bond Sale $ 5 , 117 , 700 Water Capital 4 , 860 , 000 Sewer Capital 4,013, 000 Total $13, 990 , 700 * The $1 . 4 million Motorola access road figure, not shown in the Capital Bond section of the General Fund Financial Plan 1996-2000 , was included as part of the annual debt service within the "Debt Service Contingency" General Fund line item. A provision will have to be made starting in 1997 to account for the additional $500, 000 in debt service as a result of the increased right-of-way acquisition costs . JRN/daw Attachment Exhibit A: 1996 Bond Sale Projects General Capital: Access Road - South from Rt. 72 $1,900,000 Hemmens,/City Hall HVAC 1,260,000 Hemmens Replacement of Expo Hall Roof and Basement Ceiling 445,000 Hemmens Safety and Interior Improvements 197,700 Kimball Street Corridor 125,000 Kimball/Rt. 31 Intersection 550,000 Renovation of City Facilities 640,000 Subtotal $5,117,700 Water Capital: AMR Meter Conversion $ 525,000 Airlite Plant Sludge Lagoons 775,000 Airlite Water Plant Upgrade 25,000 Annual Distribution System Upgrading 525,000 Big Timber Phase 3 Water Main 1,235,000 Northwest Corridor Water Main 160,000 Randall Road 1MG Water Tower 1,430,000 Randall Road Water Main 140,000 Riverside Water Treatment Plant Expansion 45,000 Subtotal $4,860,000 Sewer Capital: Annual Neighborhood Sewer Repairs $ 263,000 Big Timber Sanitary Sewer 360,000 Combined Sewer Overflows 75,000 Otter Creek Lift Station 2,950,000 Randall Road Sanitary Sewer 365M0 Subtotal $4,013,000 Total 1996 General Obligation Bond Issue $13,990,700 1996 Bond Sale Projects General Capital Projects Access Road - South from Route 72 $1,900,000 In 1996, the City of Elgin will construct an access road in the Northwest portion of the city. This new road will provide access to the Motorola complex that will break ground this year. The road will also help open the area North of the tollway for further future development. The City has agreed to assume 100% of the cost of right-of-way acquisition and 50% of the cost of design and construction of the access roadway. Preliminary cost estimates are $1,905,000 for roadway design and construction with the State picking up $950,000 and the City paying $955,000. The balance of the funds will be applied to right-of-way acquisition. Hemmens/City Hall HVAC $1,260,000 Replacement of the Heating, Ventilation and Air Conditioning system serving both the Hemmens Cultural Center and City Hall is necessary. Failure of the system made it necessary to push the Hemmens system replacement forward into 1995. The main mechanical system is over 26 years old and is far beyond the typical useful life of such a system. Operational efficiency will be improved through the separation of these two systems. Hemmens Replacement of Expo Hall Roof and Basemenc Ceiling $445,000 The existing roof of the Hemmens Expo Hall is in need of rephicement. Due to water that has leaked through the ceiling, the Expo Hall ceiling will also need to be replaced. Hemmens Safety and Interior Improvements $197,700 Aging lighting and electrical systems in the Hemmens Theater are inadequate for touring companies and concerts. The age of existing system (with many parts dating back to 1969) poses some safety and efficiency concerns. As a result, this project includes stage lighting upgrades, curtain and rigging replacement, stage spotlight and floodlight replacement and power distribution equipment enhancements. Kimball Street Corridor $125,000 Improvement to Kimball Street between Dundee Avenue and Route 31 will greatly improve traffic flow in the Center City. The City Council direction to complete alternatives to the north end bridge made the Kimball Street project extremely important as an east-west river crossing through the city. Coordination with the State of Illinois for the Kimball Street/Route 31 intersection improvements is required as well as additional property acquisition including the Seigle's property leading to the purchase and abandonment of the C&NW railroad right-of-way. The acquisition of the railroad property will allow for an improved and finished pavement grade for Kimball Street. This project will result in complete reconstruction and widening of Kimball Street from two to four lanes including a 32 foot landscaped median. The 1996 bond proceeds will provide for engineering for the widening of the Kimball Street bridge and integration into the project plans. Kimball Street/Rt. 31 Intersection $550,000 The intersection of Kimball Street and Route 31 will be widened and improved as part of the Kimball Street Corridor project. Along with adding additional turning lanes, the Kimball Bridge will be widened in order to accommodate increasing traffic volume on this important east-west thoroughfare. 1996 Bond proceeds will allow for funding of the initial project payments, remaining project costs will be included in the 1997 bond issue. Renovations of City Facilities $640,000 The Police Department's move to new facilities in 1996 will allow for consolidation and realignment of City office space. City Hall renovations of$225,000 are included. A City Facilities Task Force is reviewing City space needs with particular focus on access and service to the citizens of Elgin. Other projects included in this category include $275,000 for City Hall roof replacement and related asbestos removal (the remaining $245,000 will be paid out of the Riverboat Fund), $45,000 for air conditioning of Lords Park Pavilion, $25,000 for City Council Chamber ventilation and cooling system, $20,000 for roof replacement at the Parks Department building, and $50,000 for installation of a sprinkler system in the Parks Department building. Water J Capital Projects P AMR Meter Conversion $525,000 The acquisition of additional meters for the conversion to the successful Au somatic Meter Reading system is proposed to be a capital bond project. All residential water meters will eventually be converted to transmit usage readings via telephone lines to an automatic billing system. Airlite Plant Sludge Lagoons $775,000 This project fully reconstructs the sludge lagoons at the Airlite Plant in order to comply with Illinois Pollution Control Board regulations. Engineering was begun in 1995 and construction will be completed in 1996. Airlite Water Plant Upgrade $25,000 The Airlite Street Water Plant operates in tandem with the larger Riverside facility. As part of the system upgrade, unit processors and new instrumentation and control work are necessary. This upgrade does not include any capacity expansion. Annual Distribution System Upgrading $525,000 This program upgrades residential water distribution mains that are undersized or have a history of breaks. These projects are generally completed in conjunction with street reconstruction. The amount of work and resources needed for these upgrades is significantly more than anticipated in the 1996-2000 Financial Plan. In order to avoid increased debt financing, a portion of these projects will be paid annually out of the operating budget. Big Timber Phase 3 Water Main $1,235,000 This project provides water service to potentially valuable property near Randall Road and the I-90 interchange. Water main will be extended from the AIR Lane tow--r's water main along Big Timber Road easterly to Randall Road. Phase 4 extends water availability westerly from the Alft Lane tower connection to Coombs Road. Northwest Corridor Water Main $160,000 This project will extend a 16 inch water main, which is already north of the tollway, to Route 72 and then along Route 72 and south along Randall Road, connecting with the existing water main south of the tollway. Randall Road 1 MG Water Tower $140,000 Construction of a new 1 million gallon (MG) elevated water storage tower is proposed near the existing College Green subdivision. The land has been acquired. The tower will serve the rapidly developing Randall Road corridor south of Route 20. Randall Road Water Main $140,000 To further extend water services to undeveloped land north of the tollway, the city will extend an existing 12 inch line on the east boundary of the Motorola site along Randall Road. This project will be completed concurrently with a similar extension of sewer lines. Riverside Water Treatment Plant Expansion $45,000 The Riverside plant, completed in 1982, is currently rated at 16 million gallons per day of production and was designed for an eventual doubling in size. The engineering agreement was awarded in 1995, with completion of engineering expected in September, 1996. The construction contract will be awarded in early 1997. Construction will take up to 24 months to complete. Therefore, finished water from the expanded plant will be available in 1999. Sewer Capital Projects Annual Neighborhood Sewer Repairs $263,000 As part of the annual neighborhood street reconstruction projects, the sewer system is repaired, replaced, or lined based upon TV inspections of existing lines. Big Timber Sanitary Sewer $360,000 This extension of sewer lines is essential to the industrial development of 200 acres of property located west of Randall Road and south of Big Timber Road. Combined Sewer Overflows $75,000 Elgin operates 13 wet weather overflows, under permit from the Illinois Environmental Protection Agency(IEPA), in the combined sewer system. The permit requires the identification and implementation of actions to reduce or eliminate all overflows. Development of the permit compliance plan was funded in 1995. Otter Creek Lift Station $2,950,000 All developments west of Randall Road and south of Highland Avenue are served by sewer lines currently filled to capacity. The vital Otter Creek Lift Station will allow for the extension of interceptor sewers to serve areas west of Randall Road. Engineering for this project began in 1995. Randall Road Sanitary Sewer $365,000 Extension of an existing 24 inch sewer line along the east boundary of the Motorola site along Randall Road will provide service to the area north of the tollway. This project will be complete concurrently with a similar extension of water services. Water and Sewer Major Capital Projects All Numbers in$000's) Water Projects: 1996 1997 1998 1999 2000 Riverside Treatment Plant Expansion/Improvements S45 $16,055 Airlite Plant Improvements 25 1,950 Airlite Sludge Lagoons 775 Northwest Corridor Water Main 160 65 365 1,015 Big Timber to Alft Tower Water Main 135 Big Timber Phase 3 Water Main 1,235 Coombs IMG Water Tower:Airlite to Coombs Main 0 50 70 1,880 Lyle Ave.Booster Pump Addition 25 190 Fox Lane Booster Pump Addition 15 65 Randall Road 1 MG Water Tower 1,430 AMR Meter Conversion 525 655 635 670 715 Randall Road Water Main 140 Dundee Ave. Booster-Brant Dr. Water Main 25 Area III Water Mains 465 Annual Di Aribution System Upgrading 525 575 455 0 216 Water Main Reimbursement 220 230 245 255 Judson College 20"Water Main 55 State St. T-ansmission Reinforcement 35 Geneva St.Reinforcement 30 Rt. 20 to Coombs Water Main 55 105 705 Total 54,860 $20,120 $1,815 $2,310 $3,981 Sewer Projects: 1996 1997 1998 1999 2000 Otter Creek Lift Station 52,950 5175 Big Timber Sanitary Sewer 360 2,260 2,308 Rand&H Road Sanitary Sewer 365 Bowes Road Interceptor 615 3,410 Northwest Interceptor Sealing 30 Combined Sewer Overflows 75 290 305 320 335 Annual Neighborhood Sewer Repairs 263 276 290 304 Sandy Creek Sewer Trunk 20B 100 145 Area III Sewer Line Repairs 287 Area IV Sewer Line Repairs 330 Total S4 013 53,288 $2,903 $1,339 S4 50 February 8, 1996 HEMORANDUM •off TO: Richard Helwig, City Manager FROM: James L. Kristiansen, Public Works Director SUBJECT: Kimball Street at State Street Improvement This memorandum confirms our discussion concerning the delay in completing the engineering on the subject project. I have attached a letter dated February 5 , 1996 from our engineer, Rust Environment and Infrastructure, Inc. , which details the causes of the engineering delays . As we discussed, there is an advantage in combining the subject project with the Kimball Street Reconstruction project scheduled for the 1997 construction season. Although the engineer did not quantify the cost advantages of a single construction contract, our estimate is over $100, 000 . JLK:do Attachment cc: Bob Malm Gary Miller Joe Evers David Lawry Rust Environment & Infrastructure Inc. A Rust Internationai Company Phone 312 902 7100 111 North Canal Street,Suite 305 Fax 312 902 7099 Chicago.IL 60606 February 5, 1996 Mr. James L. Kristiansen Public Works Director City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 Re: Kimball and State Street Intersection Improvements Amendment Request to February 23, 1995 Agreement Dear Mr. Kristiansen: The purpose of this letter is to request that Rust's agreement with the City be amended to provide a revised project schedule for completion of design services. We have been delayed in proceeding with the design process by protracted discussions with both the Illinois Department of Transportation (IDOT) concerning plans for widening the Kimball and State Street intersection and Metra concerning improvements required at the railroad crossing on Kimball Street immediately west of the Fox River bridge. Plans for the intersection improvement have been submitted for IDOT review on three separate occasions in October 1994, March 1995 and, most recently, in July 1995. In each case, after a review period of one or two months, IDOT's comments would be received requiring consideration of another alternative layout or of changed factors for Rust's capacity analysis program. Our last set of comments received in September 1995 included review comments that had already been considered from our first submittal one year earlier. We would have resubmitted the preliminary plan in October but found that we needed to first resolve the grade crossing design with Metra. The Kimball and State Street intersection plan was first submitted to Metra on July 31, 1995 in order to initiate the preparation of agreements needed between the City and Metra for crossing improvements. On September 27, 1995, Rust received a letter from Metra which indicated that the wider pavement on Kimball Street would require a crossing gate length that exceeded the maximum length that they would allow for single gate protection. Therefore, their standards would require that the bridge be widened further by 10.5 feet to provide a protected median area for installation of a second, left-handed, gate mechanism. Since we estimated that this additional widening and crossing protection would increase the cost of intersection improvements by $500,000, we met with Metra on October 5, 1995 to see if other options for protecting the crossing could be considered that were less expensive. Metra was not willing to modify their requirements in Rust's meeting with them. After this situation was discussed with you and your staff, it was decided that a second meeting would co Oualrty through teamwork ENVIRONMENT& INFRASTRUCTURE James L. Kristiansen February 5, 1996 Page 2 be held on December 14, 1995 between elected City representatives and Metra to present several alternative pavement widths in hopes of finding a compromise position that met the needs of both parties. This meeting was successful and Metra agreed to allow a reduced roadway width that still provided the turning lanes needed for traffic capacity without requiring either a median or a second gate mechanism. Due to the time spent in obtaining reviews from IDOT and negotiating with Metra, there was not sufficient time left to complete final plans for the December 6, 1995 bid date provided in our agreement. It is now possible to continue with plan preparation and we would recommend the following project milestone schedule be used to allow receipt of bids in December 1996: T.U—k- Submittal to IDOT/City Complete Revised IDS and TS&L plans 02/09/96 IDOT Review Complete 03/15/96 Complete Phase I - Preliminary Engineerine 04/12/96 IDOT Review Complete 05/10/96 Complete Phase II - Final Engineering 07/12/96 IDOT Review Complete 09/06/96 Complete Phase III - Bid Documents 10/04/96 Advertise For Bids 10/18/96 Open Bids 12/03/96 Recommendation for Award 12/16/96 With construction being delayed for one year, we would recommend that both the Kimball and State Street intersection project and the Kimball Street project between the Fox River and Dundee Avenue be bid and constructed at the same time in 1997 as one project. There are several advantages to 1� combining these projects as suggested: 7� 1. The Kimball Street bridge over the Fox River will be rehabilitated and widened as one project in one year rather than as two separate projects. This will save the City money since it will no longer be necessary to construct a temporary transition on the bridge between what was to be constructed as part of the intersection project and the remaining portion of the existing bridge. 2. One contractor will be responsible for construction of the total project. The transition between the two projects was to be on the bridge. With one contractor responsible for construction of the bridge, there will be no problem of one contractor holding up progress Quality through teamwork 0 RMENVIRONMENT& INFRASTRUCTURE Mr. James L. Kristiansen February 5, 1996 Page 3 of another contractor or no question of who is responsible for final completion of common elements on the bridge deck. There will also be less problems in maintaining traffic during construction if one contractor has full responsibility for construction staging and maintenance of barricades and signing. 3. There will be less inconvenience to City residents and other motorists. If both projects can be completed as one project, construction will be completed more efficiently and traffic flow on the most heavily traveled crossing of the Fox River will disrupted over a shorter period of time. Coordination with Metra for the design of the grade crossing improvements will be occurring throughout the plan preparation process. Metra has indicated that the City will be responsible for preparation of an agreement between themselves and the City to provide for the improvements to be cons,:ructed. A sample agreement for the City's use is enclosed with this letter. Concurrent with preparation of the agreement, Metra's engineering department will be preparing plans and cost estimates for the crossing improvements. This process will take about three months and begin after receiving plans from Rust for the pavement, drainage and traffic signal improvements. Using the revised schedule we are proposing, plans showing sufficient detail for Metra's needs will be available after IDOT and the City approve the Phase I - preliminary engineering plans in May 1996. A description of the crossing improvements and their estimated cost is included in the agreement. Assuming Metra will provide the information needed by the City to finalize the agreement by August 1996, the final agreement should be available for submittal to Metra by September 1996. This should provide sufficient time for Metra to approve and execute the agreement before construction begins in February 1997. The revised IDS for the intersection will be submitted to IDOT by the end of this week. If you need any additional information to evaluate this request, please call me. Sincerely, Rust Environment & Infrastructure, Inc. � J. °C David Heslinga, P.E. Project Manager Quality through teamwork �� 03/27/96 10:45 v^1 312 346 8833 SPEER FINANCIAL 10002 83/27/96 11:16:58 212-553-488E-> 1 312 346 8833 Moody's Investors Page 003 Moody ' s Municipal .,,;, DailyRating Recap r Elgin, Illinois Rating date: March 26, 1996 4 Moody's rating: Aa General Obligation Corporate Purpose Bonds,Series 1996 Sale: $13,990,000 Capital Needs are Manageable ;....Date of Sale; March 27 Growth-related replacement and expansion needs are Type: Competitive present. However, the magnitude of additional borrow- Security: General obligation, unlimited tax. ing is not expected to be substantial. Concerns are also Use of Proceeds: Finance various corporate,water and tempered by tax base growth, and enterprise support and sewer projects. aggressive retirement of outstanding debt Last Rating change; No change. Financial Position Is Substantially Improved Credit Comment: Confirmation of the city's Aa gen- eral obligation rating is based on the following credit Following General Fund operating deficits recorded dur- factors: ing fiscal 1991 through 1993,management actions have Favorable Growth Patterns restored fiscal balance. A $3.6 million surplus is expected for fiscal 1993, mainly reflecting a 0.75%local Population, as well as commercial and industrial activity, option sales tax imposed in early 1995 continues to expand. Much of the growth is occurring in annexed areas, which has given parts of the city a Gaming Revenues Not Reified Upon to Fund suburban character. A special census will be undertaken Operations in 1996 to certify the growth. Recognizing the volatile nature gambling revenues,.the Effort Aimed at Downtown Revitalization are Noted city has earmarked this source exclusively for one-time and capital expenses.Home rule status confers the abil- The downtown area has suffered from decline and ity to levy property taxes without limit,raise sales taxes, changing function, which contribute to the city's above and numerous other options. average unemployment rate and relatively slow per cap- ita income growth.Riverboat gambling, which began in late 1994, is expected to spur development. analyst: Harvey Zacher (212) 553-773 viobd r�