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HomeMy WebLinkAbout08/26/2024 1 COMMITTEE OF THE WHOLE – Meeting Minutes August 26, 2024 The Village Board met as a Committee of the Whole in the Council Chambers of the Village Hall at 3:00 p.m. on Monday, August 26, 2024. In attendance were: PRESENT: Village Board Staff Dan Shapiro, Mayor Andrew Lichterman, Deputy Village Larry Berg, Trustee Manager/Director Community Development Jennifer Goldstone, Trustee Justin Keenan, Assistant Village Manager Elaine Jacoby, Trustee (arrived at 3:25 p.m.) John Sliozis, Chief of Police Rebekah Metts-Childers, Trustee Eric Burk, Director of Finance Mary Oppenheim, Trustee David Fitzgerald-Sullivan, Comm. Coord. Desiree Van Thorre, Admin Services Coord. Jessica Sciarretta, Management Analyst Robert Phillips, Director of PW and Eng. Tyler Dickinson, Asst. Dir. of PW and Eng. Hannah Saed, Village Attorney Public Comment There were no public comments on non-agenda items. Business 1. Presentation by Veregy re: Solar Panel Installation at Public Facilities Danielle Malon and Jeremy Hoffman, from Veregy LLC, presented various options for solar panel array installations at the Wastewater Treatment Plant and Public Works facilities using performance contracting. The ground-mount and roof-mount projects would produce an 892.2 kilowatt capacity system. The total cost of the project is $4.2 million, offset by $2.3 million in incentives for a total project cost after incentives of $1.9 million. The array would make $110,341 in annual revenue and $3 million in 20 years and be a total return of investment in 18 years. Trustee Berg inquired about the various incentives. Trustee Oppenheim asked if the incentives were realistic. Ms. Malon noted that the incentive totals are conservative figures. There are potentially other incentives available, like American made. Mayor Shapiro said he would like to know about all incentives upfront. He asked to have the projects broken down by individual building. Trustee Oppenheim asked if the estimates are based on the current ComEd pricing. Ms. Malon noted they used a 3% annual escalator and will come out each year to make sure they are meeting the project goals. She noted that Veregy 2 would maintain the arrays for 20 years. Solar arrays typically work for up to 30 years, but start declining in performance after that. Trustee Oppenheim asked if breaking the separate arrays up into smaller projects over time would lose the economy of scale in the larger project. Ms. Malon noted splitting the projects up would lose economies of scale and said that solar panel prices are going up. Trustee Goldstone asked what is the cost difference in electric bills in 20 years with no change for energy costs. Mr. Lichterman noted that staff will provide a breakdown. Trustee Goldstone asked about the timing of the rebates. Ms. Malon stated some are in the first year with more in the second year, and all rebates would be included by the seventh year. Mayor Shapiro suggested that staff work with Veregy and bring the proposal to a future board meeting. 2. Discussion of 2025 Capital Improvement Plan Mr. Burk reported Public Works developed a proposed 2025 Capital Improvement Program. The program totals $11,610,000 and is funded with a Federal Grant for Hazel Avenue, Motor Fuel Tax and the Village’s Infrastructure Replacement Fund (IRF). The IRF funding sources include Home Rule Sales Tax, Infrastructure Impact Fee, Food & Beverage Tax and Interest Income. Preliminary indications show that the 2025 program could be accomplished without additional debt. Debt would need to be evaluated during the planning of the 2026 Capital Improvement Program. At that time, the Village would likely have a better estimate on actual project costs. Public Works also developed an alternative Capital Improvement Program. This program totals $13,700,000 for 2025 and most likely cannot be accomplished without additional debt. Since debt would be required in 2025, it makes sense to consider an appropriate level of debt to cover a two-year Capital Improvement Program. The 2026 proposed alternative plan totals $5,220,000. The two-year alternative plan would be funded similarly to the proposed plan. However, the alternative two-year plan would require $4 - $5 million of debt to be issued in 2025. The current interest rate for Aaa 20-year debt is 3.8%, which would increase the annual property tax levy approximately $74,000 per $1 million of debt issued. Future interest rates are difficult to predict. Mayor Shapiro noted he would prefer to not add any additional debt next year. There was a consensus among the Trustees to do the same. Mr. Phillips reviewed the proposed 2025 Capital Improvement Program line by line, starting with transportation and road improvements, street maintenance projects, WRF projects, public buildings and facilities, sewer projects and water system projects. He concluded with a funding summary. The total cost for 2025 is projected to be $11.6 million. 3 Mr. Phillips discussed a biosolids dryer building project that would begin with an engineering phase in 2025 and construction continuing through 2029. Due to new phosphorous regulations, the Village has made changes at the WFR that now lead to additional sludge production. He reviewed three possible solutions, with the dryer being the most cost effective. Adjournment: There being no further business or discussion, Trustee Oppenheim moved to adjourn the meeting. Trustee Berg seconded the motion. The motion passed by unanimous voice vote. The meeting was adjourned at 5:08 p.m. Respectfully submitted, David Fitzgerald-Sullivan, Communications Coordinator