Loading...
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