PUBLIC WORKS COMMITTEE 2015/02/11 MinutesPUBLIC WORKS COMMITTEE MEETING
WEDNESDAY, FEBRUARY 11, 2015 – 4:00 P.M.
CITY HALL – 220 E. DEERPATH
AGENDA
I. ROLL CALL/CALL TO ORDER: Chairman Cathy Waldeck called the meeting of the
Public Works Committee to order at 4:07 p.m. Aldermen Stanford Tack and
Michelle Moreno were present.
Staff in attendance included Michael Thomas, Director of Public Works; Dan
Martin, Superintendent of Public Works; Sally Swarthout, Interim Director of Parks
& Recreation; Bob Ells, Superintendent of Engineering; Donna Dunn, Assistant to
the Director of Public Works; John Gulledge, Water & Sewer Utilities Supervisor;
Charlie Douglas, Assistant Chief Water Plant Operator; Elizabeth Holleb, Director
of Finance; and Robert Kiely, City Manager.
Also in attendance were Brian Hackman, Strand Associates and member of the
public, Charlie Kohlmeyer.
II. APPROVAL OF THE JANUARY 21, 2015 PUBLIC WORKS COMMITTEE MEETING
MINUTES: Alderman Moreno moved to approve the minutes of the January 21,
2015 Public Works Committee meeting. Alderman Tack seconded the motion,
which carried unanimously.
III. WATER PLANT UPDATE
• Review of the March 9, 2015 Budget Meeting Slides
Mr. Brian Hackman of Strand Associates provided an overview of the
proposed presentation for the March 9, 2015 Budget meeting. City
Manager Robert Kiely explained that Chairman Waldeck will present an
overview of the Water Plant and what the Committee has been
discussing over the last eight months. Upon reviewing the presentation,
Alderman Moreno suggested adding specific information about what
Council will be asked to approve on each of the Council dates listed in
the PowerPoint. With that addition, the Committee agreed to proceed
with the proposed presentation at the March 9 Budget meeting.
• Water Plant Improvement Financial Analysis
Finance Director Elizabeth Holleb reviewed the financial analysis of the
Water Plant improvements with the Committee. Director Holleb
confirmed that when applicable, multiple bond issues would be
associated with the specific project that required the bond issue.
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Meeting Minutes from February 11, 2015
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Specifically related to the financing of Option 3b, Director Holleb
reviewed the assumptions that were made, to include issuing the debt in
FY2018, paying on the interest only until the existing debt service expires
in FY2024/2025, and that rate adjustments would begin in FY2017 in order
to minimize impact. Director Holleb added that these assumptions
would need to be confirmed by City Council. Related to the rate
adjustments, Chairman Waldeck asked how often rate increases occur
and how much these rate increases typically are. Director Holleb replied
that rate increases occur every year and are typically between 2 – 3%.
These rate increases are most often applied to the variable rate, but
determining if the rate increase is applied to the variable rate or the
fixed rate is a policy decision for Council discussion.
Director Holleb displayed an illustration showing how the Water Fund
debt would be phased in with the current debt service. The chart
proposes a delayed principal repayment until the existing debt principal
starts to come off in FY2024/FY2025. At that point, the City would more
aggressively pay principal on the new debt issue.
Director Holleb then reviewed the water rate projection alternatives:
− Alternative 1: rate adjustments would only apply to the variable
rate. The downward fluctuation in FY2022 and FY2024 is related to
the timing of the current debt dropping off. The rate change could
be adjusted to provide more consistency to avoid these
fluctuations.
− Alternative 2: rate adjustments would be applied to both the fixed
and variable rate by applying the $7.1 million debt issue to the fixed
rate and the difference in the debt service on $9.5 million versus $7.1
million would be applied to the variable rate. The impact has been
neutralized by FY2024 in both cases.
The Committee agreed that the second alternative should be
implemented because this is an infrastructure project that should be
funded by both the fixed and variable rate. Chairman Waldeck
asked if there will be a substantial difference in the rate changes
between the two options. Director Holleb explained that for the
average household, there is not a substantial difference between the
two alternatives in terms of water bill increases.
Both alternatives will be presented to City Council, but the Committee
recommends the second alternative. The fixed rate is not impacted
by weather or usage, which supports the bond issue. Director Holleb
added that the bond rating agency will view the bond issue being
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Meeting Minutes from February 11, 2015
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backed by an increase in the fixed rate positively during the review
process.
Member of the public Charlie Kohlmeyer requested additional
information on the 95% of the households with small meters. He noted
that the increase in the fixed rate makes up 50% of the bill even
though these users utilize less of the system than large users.
No action was required.
IV. IDOT ROUTE 41/DEERPATH GOLF COURSE AGREEMENT: Superintendent of
Engineering Robert Ells reviewed the proposed IDOT project at Route 41 and
Deerpath that the Committee discussed several months ago. At the time, IDOT
unofficially requested that if the project was undertaken, the City would take
ownership of the pump station upon completion. In the packet is a letter that
the City received, which requests that the City submit a non-binding letter of
intent in order to proceed. There would be no financial or binding commitment.
Superintendent Ells added that the design for this project will take over a year to
complete, with construction following sometime after. IDOT is finishing the
preliminary design now and will require at least another year of additional design
phases. If the City submits a letter of intent, staff will be included in design
discussions.
Staff is working on annual costs if this infrastructure is taken over by the City upon
completion. This project will alleviate the flooding that occurs at this intersection
and is considered a win-win for all involved. Superintendent Ells clarified that the
anticipated costs provided on the map are the costs borne by IDOT for the
pump house, detention ponds, piping, and construction. The only cost-share the
City has considered is the aesthetics of the ponds. The physical construction and
everything related to conveying the storm water would be paid by IDOT.
Alderman Moreno asked how the City will protect the larger trees that need to
be saved. Superintendent Ells replied that City staff, including Chuck Myers, has
been involved and would continue to be involved in all phases of the project.
IDOT would be required to follow all of the rules for construction within the City.
No action was required.
V. SCHEDULE OF FY2016 PUBLIC WORKS CAPITAL PROJECTS: Director of Public Works
Michael Thomas provided the Committee with a schedule of capital projects for
Public Works including when they will be put out to bid, when Council approval
will be sought, and when construction will begin and end.
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Meeting Minutes from February 11, 2015
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No motion was required.
VI. OTHER ITEMS
• Chairman Waldeck asked about sidewalk plowing operations since the
policy was adjusted. Director Thomas explained that sidewalks have
been a challenge because of where they fall on the list of priorities.
Chairman Waldeck noted that the biggest issue with the sidewalks is the
ice. She asked if there was any way to get down to the ice. Director
Thomas explained that if the equipment isn’t dispatched to the
sidewalks immediately it is nearly impossible to remove all the ice from
the sidewalks. Chairman Waldeck commented that we should continue
to fine tune the program.
VII. OPPORTUNITY FOR PUBLIC COMMENT: None.
VIII. NEXT MEETING: The next meeting will be held in April after the March budget
meeting. If a special meeting is needed in March, it can be scheduled
accordingly. Director Thomas will send out a confirmation for the meeting date
in April.
IX. ADJOURNMENT: Alderman Moreno moved to adjourn the meeting of the Public
Works Committee at 4:52 p.m. Chairman Waldeck seconded the motion, which
carried unanimously.
Respectfully submitted,
Donna Dunn
Assistant to the Director of Public Works