06/30/2014COMMITTEE OF THE WHOLE – Minutes of Meeting
June 30, 2014
The Village Board met as a Committee of the Whole in the Council Chambers of the
Village Hall at 6:40 p.m. on Monday, June 30, 2014. In attendance were:
PRESENT:
Village Board Staff
Harriet Rosenthal, Mayor Kent Street, Village Manager
Robert Benton, Trustee Andrew Lichterman, Asst. to the Village Manager
Alan Farkas, Trustee David Fitzgerald, Management Analyst
Thomas Jester, Trustee John Sliozis, Police Chief
William Seiden, Trustee Eric Burk, Finance Director
Barbara Struthers, Trustee Clint Case, Code Enforcement Supervisor
Peter Coblentz, Village Attorney Jeff Hansen, Asst. Code Enforcement Supervisor
Tom Keane, Deputy Police Chief
Barbara Little, Public Works Director
Bob Phillips, Assistant Public Works Director
Absent
Robert Nadler, Trustee
Also Present
Daniel Berg of Sikich
Public Comment
There was no one present for public comment.
Review of Comprehensive Annual Financial Report by Daniel Berg of Sikich
Finance Director Eric Burk introduced Daniel Berg of Sikich to provide an overview of
the Comprehensive Annual Financial Report for the 8 months ended December 2013. Mr.
Berg stated the CAFR received an unmodified opinion, which is the highest rating and
indicates the auditors did not find any major problems. Mr. Berg complimented Mr. Burk
and Accountant Rich Jett for being prepared for the auditors and helping the process go
very smoothly, stay on budget and meet internal deadlines. He noted that the 8-month
transition budget required extra coordination between staff and auditors. He fully expects
this audit to win the Government Financial Officers Association’s award for excellence.
Mr. Berg also updated the Board on new GASB rules that have gone into effect or will be
going into effect in the coming years and the work required to bring the Village in
compliance with these new accounting standards.
Trustee Jester inquired about the accrued compensation balances that some long-time
employees have built up. He said he would like to see that figure reduced. Village
Manager Kent Street stated the Village is working to reduce this balance and noted the
internal controls addressed in the audit.
C.O.W; July 30, 2014
Trustee Jester noted that the audit shows that the Village continues pay down its bonds.
He inquired about a $50 per month health insurance contribution for retirees and
separated employees. Mr. Berg noted that starting in 2015 the Village will be required to
pick up any unfunded IMRF or Police pension amount as a general government liability.
He stated that this is not expected to impact the Village’s bond rating, as the same GASB
change will affect all municipalities. Mayor Rosenthal inquired about the logic of such an
accounting change. Mr. Berg noted that the measure is intended to improve transparency
about pension funding and move government accounting closer to corporate accounting
standards.
Discussion of Deerfield Road and other Capital Improvement Projects and
Financing
Village Manager Street asked Finance Director Burk to discuss financing first and then
move on to capital projects.
Mr. Burk stated that $25 million would be required over the next three years to complete
the projects listed in the Capital Improvement Plan. He stated the Infrastructure
Replacement Fund generates about $1 million per year, which leaves a large gap in
funding the CIP. He presented options to the Board to help bridge this funding gap. The
first option was utilizing a grant the Village has been awarded to cover the 2014 Street
Rehabilitation Program and then using the one-time funds generated from fees from the
AMLI and Woodview developments toward the CIP. The second option is reduction of
the fund balance from the current 62 percent of annual recurring expenses. The fund
balance policy calls for a minimum of 30 percent. He noted that too large of a reduction
could impact the Village’s bond rating. Similarly, a third option is to transfer funds from
the general fund to the infrastructure replacement fund.
Trustee Jester stated that the third option does not create any new revenue; it just moves
money from one fund to another. He stated he believes budgeting more money into the
IRF tells the public where the money is intended to be spent instead of transferring it in
from the General Fund. Trustee Farkas stated he agreed with Trustee Jester, saying it
would be a more transparent way to budget. Mayor Rosenthal noted there is not a lack of
transparency, as all of the money is showed in the budget and all decisions are made in
public meetings. Trustee Farkas said budgeting more money in the IRF would be clearer
because the money is transferred there every year.
Trustee Jester inquired about the grant for the road reconstruction program for 2014.
Manager Street stated this is a one-time State allocation to help local governments fund
infrastructure projects. He noted the intention was for the State money to go toward
MFT-eligible projects.
Finance Director Burk stated that any bonds should be kept to under $10 million per year.
He noted that the cost of $1 million in borrowing equates to $10 per year for a $500,000
house.
Trustee Jester stated that he felt some of the smaller items on the CIP list should be
considered operating expenses and not capital expenses. Mayor Rosenthal said she likes
C.O.W; July 30, 2014
seeing all of the projects listed in one place. Assistant Lichterman noted that staff
separated the projects between those over $1 million and those under.
Manager Street asked Assistant Public Works Director Phillips to discuss the Deerfield
Road Project. Trustee Farkas inquired about the current condition of Deerfield Road from
the North Shore Gas utility work. Mr. Phillips stated that the road was initially being
replaced with hot patch, but noted that the crews would come back and grind and pave
the road for a smoother finish.
The trustees discussed the timing of the Deerfield Road sidewalk project. Trustee Jester
noted that the $340,000 cost savings of delaying the project by one year makes a clear
case for delaying the project. Mayor Rosenthal noted that the Village has been promising
the nearby residents these sidewalks for years already. Trustee Benton stated that at the
time the promises were made, it wasn’t clear that all of the land acquisition would be
required. Mayor Rosenthal noted that the land acquisition was slow and that the sidewalk
project got attached to the larger Deerfield Road reconstruction project. Trustee Farkas
stated that the Village did not have a clear picture of the project’s costs when the promise
was made and thinks the Village should delay it until 2016 due to the cost savings.
Mayor Rosenthal asked Mr. Phillips if the Village is assured that outside agencies will
not push the project beyond a 2016 start date. He replied yes. Trustee Struthers noted that
she does not want to see this pushed past 2016. Mayor Rosenthal noted that the land
acquisition costs could be lower if the Village negotiated the price.
Manager Street discussed the memorandum of understanding with Lake County for the
jurisdictional transfer of Deerfield Road. The transfer would save the Village nearly $3
million in expenses for the project. Trustee Seiden inquired if the Village got what it
wanted in the memo. Director Little stated the Village received the jurisdictional transfer
from the viaduct to the Village’s eastern border. Trustee Struthers inquired about the
County’s ability to widen the road. Mayor Rosenthal noted that the memo states that the
County would require the Village’s concurrence. Manager Street stated that a formal
intergovernmental agreement will come to the Board at a later date that will reflect the
tone of the MOU. Trustee Farkas stated he is willing to move forward with the MOU, but
would like tighter language regarding Board approval for road widening to be included in
the agreement. Trustee Struthers stated that she can’t see turning down the money from
the jurisdictional transfer as long as the Village does not lose control of the west side of
Deerfield Road.
Mayor Rosenthal noted that the Village would still plow and maintain Deerfield Road
after the transfer. She inquired if the Village would be reimbursed for providing these
services. Director Little noted that the Lake County Department of Transportation would
not reimburse the Village, as they would do the maintenance if the Village did not, but
would not reimburse the Village for work it is willing to perform itself.
Trustee Seiden noted that he does not feel comfortable giving away control of Deerfield
Road to Lake County. Trustee Farkas stated that not taking the money due to some
speculative risk is not a good way to go. He prefers developing a strong agreement that
will help account for most situations.
C.O.W; July 30, 2014
Manager Street indicated that he would sign the MOU as presented and then work with
the County to address the Board’s concerns in a formal intergovernmental agreement that
will be presented to the Board at a later date.
Manager Street restated that the Deerfield Road sidewalk project would be completed as
part of the larger Deerfield Road project in 2016 and that an Intergovernmental
Agreement will be presented to the Board for consideration of a jurisdictional transfer.
Mr. Phillips noted that an intergovernmental agreement authorizing work relating to plats
and legals for land acquisition of the traffic signals along Deerfield Road will also be
presented to the Board at an upcoming meeting.
Mr. Phillips provided an overview of the status of the Kates Road bridge, noting that
repairs are slated for the 2017 construction season and that the work will be a deck
replacement project and not a total replacement.
Trustee Farkas inquired about how to reassure residents that the inside of the bridge is
safe to drive on but the outside is not. Mr. Phillips noted the bridge now has an
accelerated inspection schedule. He said the ties on the outside beams of the bridge are
weakening, but those on the inside of the bridge remain strong. Trustee Farkas asked if
the project could be completed sooner. Mr. Phillips noted that expediting the time frame
could jeopardize federal funding. He stated that the engineering work required for the
project would take a while, but some of it could be done at the same time to speed up the
project. Trustee Benton inquired about coordination with Metra. Mr. Phillips stated that
the engineer selected for the project has experience working with Metra.
Mayor Rosenthal indicated that the barriers are a preventative safety measure. Trustee
Seiden stated that the perception is that the bridge isn’t safe. Manager Street stated that
engineering reports indicate the bridge is safe to drive on. Mayor Rosenthal inquired
when the next inspection would take place. Mr. Phillips noted that the Village could
schedule it anytime between now and the end of the year.
Mayor Rosenthal stated that normally when people ask her about the bridge they are
satisfied once she explains the precautionary measures the Village is taking. Trustee
Benton agreed that most people are satisfied with the situation once he explains it to
them. Trustee Struthers noted she would like to see the next inspection be done before the
winter.
Manager Street directed staff to schedule a bridge inspection before the end of the year
and to continue regular inspections at least twice a year thereafter. He also requested that
staff accelerate phase I engineering to keep the project on schedule.
Discussion of Residential FAR Calculation Requirements
Mayor Rosenthal stated there are several issues regarding residential FAR calculation
requirements that should be discussed. She noted that permits are taking too long to get
approved, she asked if there is a computer program that could speed up the Village’s
complex FAR calculations. She inquired if there is a way to simplify the way the Village
calculates FAR that would be in keeping with the intent of the regulations. Trustee
C.O.W; July 30, 2014
Struthers suggested the calculation be based on the outside walls only. Trustee Farkas
stated the regulations were well intentioned when adopted, but believes they no longer
serve a purpose. He believes they create more work and leave parts of the house that are
unlivable. He stated the FAR should only apply to what happens on the exterior of the
homes to ensure they fit in with the character of the neighborhood.
Trustee Seiden outlined the process when the FAR regulations were originally developed
by a special task force. He noted he would be willing to see it tweaked to be made more
workable.
Code Enforcement Supervisor Case noted that the intent of the FAR was to keep homes
proportional to the lots they are on. He noted he would like to alter the FAR calculation
to base it on the building’s mass and sightlines and this change would also help the
department’s operations.
Manager Street directed the Building Division to prepare a report and recommendation
amending the residential FAR calculations for the Board’s consideration at an upcoming
meeting.
Discussion of E-Cigarettes
Deputy Chief Keane reported that the State made it illegal to sell e-cigarettes to minors.
He noted that this is a new issue for local governments and that Chicago has implemented
stronger rules than the State to ban the use of e-cigarettes in public places, mirroring the
ban on regular cigarettes in public places. Trustee Jester indicated that he believed this
should be handled at the State level and not at the local level. Trustee Struthers indicated
that e-cigarettes are not wanted at Deerfield High School. Police Chief Sliozis noted that
placing a ban on e-cigarettes in public places would allow police to better enforce
existing laws regarding regular cigarette use, as e-cigarettes and regular cigarettes can
look very similar. He stated this can become an enforcement issue as it can be difficult
for the officer to draw a distinction of what is being smoked.
Trustee Farkas stated that e-cigarettes have helped some people quit smoking regular
cigarettes. Trustee Struthers stated the scientific literature on e-cigarettes does not support
that idea.
Trustee Jester stated the easiest way to make the change would be to include e-cigarettes
in the definition of cigarette in the Municipal Code and treat them both the same in all
instances.
Manager Street directed the Police Department to work with the Village Attorney to
prepare an ordinance providing that e-cigarettes be treated similar to regular cigarettes
including restricting possession by minors and prohibiting smoking in public places.
Adjournment
Trustee Benton made a motion to adjourn. The motion was seconded by Trustee Seiden.
The meeting adjourned at 8:17 p.m.
C.O.W; July 30, 2014
Respectfully Submitted,
David Fitzgerald
Management Analyst