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PUBLIC WORKS COMMITTEE 2016/11/07 Minutes PUBLIC WORKS COMMITTEE MEETING MONDAY, NOVEMBER 7, 2016 – 5:00 P.M. CITY HALL – COUNCIL CHAMBER’S CONFERENCE ROOM MINUTES I. ROLL CALL/CALL TO ORDER Chairman Cathy Waldeck called the meeting to order at 5:00 p.m. Aldermen Michelle Moreno and Timothy Newman were present. Not in Attendance: Alderman Stanford Tack Staff in attendance included Michael Thomas, Director of Public Works; Bob Kiely, City Manager; Bob Ells, Superintendent of Engineering; Dan Martin, Superintendent of Public Works; John Gulledge, Supervisor of Water & Sewer Utilities; Elizabeth Holleb, Director of Finance; Mike Strong, Assistant to the City Manager; Jim Lockefeer, Management Intern; and Eileen Timken, Management Analyst. Also in attendance was Dan Strahan, City Engineer – Gewalt Hamilton; Brian Hackman, Project Manager – Strand Associates, Inc.; Andrew Twyman of 1161 Winwood Drive; Tom Kaczmarski and Dorothy Bednarczyk of 1088 Winwood Drive; Zachary Eleveld of 1137 Winwood Drive; and Charlie Kohlmeyer. II. APPROVAL OF THE OCTOBER 10, 2016 PUBLIC WORKS COMMITTEE MEETING MINUTES Chairman Waldeck moved to approve the October 10, 2016 Public Works Committee meeting minutes. Alderman Moreno seconded the motion, which carried unanimously. III. WINWOOD SANITARY SEWER SSA DISCUSSION Director Thomas explained that staff met with residents of the Winwood Subdivision to review the design and estimated costs of the Winwood Sanitary Sewer Special Service Area (SSA) on July 20, 2016 and October 13, 2016. After the July 20, 2016 meeting, staff were able to further investigate and identify potential storm sewer connections by meeting with residents at their properties and assessing their septic systems. Staff assessed 27 of the 28 septic systems and found that a significant majority of the septic systems are not connected to the storm sewer. Initially, staff estimated that there were many more septic system and storm sewer connections. Director Thomas also stated that staff met with a representative of the Lake County Health Department regarding potential septic system and storm sewer connections. It was explained to staff that these connections are rather common in Lake County. Based on the data gathered by staff, it was determined that the residents of the Winwood Subdivision would not be required to connect to the sanitary sewer immediately. Rather, Winwood Subdivision residents would be expected to connect to the sanitary sewer when their septic system fails. This information was shared with the residents of the Winwood Subdivision at the October 13, 2016 meeting. City Engineer Dan Strahan provided residents with refined cost estimates at that meeting, as well. Director Thomas also explained that resident turnout at the aforementioned meetings was lower than expected; specifically, the October 13, 2016 meeting had a resident turnout rate of less than 50%. He then stated that four easements would need to be obtained for the Winwood Sanitary Sewer SSA. Staff met with three property owners as of early November regarding the easements. Half of the properties of the Winwood Subdivision are currently in the North Shore Water Reclamation District (NSWRD), and half are not; therefore, half of property owners have been paying to be a part of the NSWRD, and half have not. This has complicated financing logistics. Chairman Waldeck asked if those properties not a part of the NSWRD are a part of another water reclamation district. Director Thomas explained that they are not. A similar situation was experienced with the Regency Sanitary Sewer SSA. Residents of the Regency Subdivision chose to include NSWRD annexation and connection fees in the SSA, whereas residents of the Winwood Subdivision have indicated a preference of not including any such fees in the SSA. Mike Strong explained that the City has made a policy decision with its commitment to sanitary sewer connections for nearly all properties in the City, given the significant public health benefits of a sanitary sewer system. Mike Strong then explained that staff began this project by considering 28 properties, which would be serviced by an extension from Waukegan Road and an extension from Jensen Drive. At the October 13, 2016 meeting, residents inquired about the potential of multiple sanitary sewer SSAs, in which one sanitary sewer SSA included the extension from Waukegan Road and another separate sanitary sewer SSA included the extension of Jensen Drive. There was also a strong concern from some residents regarding subsidizing costs for other residents. Following the meeting, staff began researching an alternative financing option, which would consist of two separate sanitary sewer SSAs. It is estimated that 42% of total project costs are related to the eastern properties of the Winwood Subdivision and 58% of total project costs are related to western properties of the Winwood Subdivision. Some property owners of the western properties have been in communication with staff and have indicated a preference for a single comprehensive SSA, to include all fees. Chairman Waldeck asked if residents would be locked into current fee rates if a single comprehensive SSA were pursued. She stated that fee rates could increase with time. Mike Strong responded that the fees would be paid upfront; therefore, increased future fee rates would not apply. He then stated that there are static and variable costs to consider. He also stated that some residents may not be interested in paying connection fees at this time, as they may not be residing in the Winwood Subdivision when the property connects to the sanitary sewer. Alderman Moreno stated that it is imperative that sanitary sewer SSA balances are disclosed when a property is sold. Mike Strong stated that by pursuing two separate sanitary sewer SSAs, the perception of inequities may be dispelled. In response to that statement, property owner Andrew Twyman of 1161 Winwood Drive asked if the eastern property owners would vote separately from the western property owners. Chairman Waldeck confirmed that if two separate sanitary sewer SSAs were pursued, residents would vote on the SSA their property was included in. If eastern property owners and western property owners voted differently, an issue would be posed for City Council. City Manager Kiely stated that the matter would at that point, need to be reviewed by City Council. Also, if an SSA is not pursued, a recapture funding mechanism would be pursued as the alternative. Mike Strong stated that staff has reviewed four different cost options with the residents, and that minimum and maximum fees have been determined. The Annual Assessment per lot would range from $3,300 to $3,600. If the Winwood Subdivision is split into two separate SSAs, the Annual Assessment of the eastern properties is estimated at $2,500 and the Annual Assessment of the western properties is estimated at $3,900. The residents of the western properties have indicated support of a more comprehensive (including most fees) Annual Assessment. Mike Strong also stated that there would be additional private costs when a connection occurred. Alderman Newman asked if residents understand the difference between the SSA and the Recapture funding mechanisms. Andrew Twyman stated that he understands the difference; but, is unsure if all other residents in the Winwood area understand the difference. Chairman Waldeck stated that an SSA is less burdensome funding mechanism for homeowners than a Recapture funding mechanism. Andrew Twyman responded stating that the residents of the Winwood Subdivision currently share the sentiment that voting against the SSA indicates opposition to the sanitary sewer installation; rather than support of the Recapture funding mechanism. Property owner Dorothy Bednarczyk of 1088 Winwood Drive stated that residents did not receive mailings regarding the sanitary sewer SSA meetings. Andrew Twyman then stated that residents of the Winwood Subdivision are not supportive of the sanitary sewer SSA. City Manager Kiely responded stating that there is a contrary opinion. Also, staff made many attempts to notify residents of meetings. City Manager Kiely stated that some residents contacted staff directly to express their strong support of this project. Chairman Waldeck then inquired about the City’s options if 51% of residents abject to the SSA. City Manager Kiely responded that this occurred when the City pursued an SSA on South Waukegan Road, in which majority objected to the proposed SSA resulting in the City pursing the project through a Recapture financing mechanism. Chairman Waldeck stated that this reaffirmed her presumption that City Council can determine that a project can proceed through the Recapture financing mechanism. Andrew Twyman asked if City Council would proceed with the project if residents voted against the SSA. Chairman Waldeck responded stating that City Council empathizes with residents. She stated that some residents are in a different financial position than others. She also stated that some residents may be very supportive of the sanitary sewer installation. City Council and the Public Works Committee has discussed its pursuit of a citywide sanitary sewer system for many years now. Chairman Moreno explained that the City is implementing its recently developed Sustainability Plan, which is committed to clean water. There have been instances in the City in which septic systems have been illicitly connected to storm sewer systems, resulting in substantial pollution. Resident Zachary Eleveld of 1137 Winwood Drive stated that the City’s purpose of pursuing this project has not been clearly communicated to residents. He stated that the necessity of the conversion from septic systems to a sanitary sewer system has not been previously articulated. He also stated that residents share the sentiment that they are getting incorrect information, or not getting information at all. Moreover, residents do not feel that the City is working to minimize the financial impact on residents. Andrew Twyman then stated that a septic system can be as effective as a sanitary sewer. Alderman Moreno explained that septic systems are very ineffective when they fail. She also stated that there is a regional and national trend toward sanitary sewer conversions, as these systems can be managed centrally. Resident Tom Kaczmarski of 1088 Winwood Drive then explained that before moving to the City of Lake Forest, he thoroughly investigated septic system costs. According to his analysis, the cost of installing a complete septic system is a fraction of the cost of the proposed sanitary sewer installation. He stated that the cost is staggering and the necessity of the project has not been effectively communicated with residents. Andrew Twyman then stated that waiting to pursue the project until the market and economy improve should be considered by City Council. Chairman Waldeck stated that a property that has a sanitary sewer system is more appealing than a property with a septic system. Alderman Moreno agreed. Chairman Waldeck stated that City Council realizes the benefits of a citywide sanitary sewer system to the Lake Forest community as a whole. Andrew Twyman responded stating that all Lake Forest residents financed other sanitary sewer installations in Lake Forest through property taxes. City Manager Kiely responded explaining that the prior statement was factually incorrect. City Manager Kiely also stated the Public Works Committee will continue this discussion after residents vote. Zachary Eleveld asked if the City could coordinate multiple votes. Chairman Waldeck stated that she is unsure. City Manager Kiely stated that when the establishing ordinance is reviewed by City Council, a discussion regarding the coordination of multiple votes can be had. Chairman Waldeck stated that City Council will move forward with this process when there is a fuller representation of resident opinions. Andrew Twyman inquired about the significance of the City Council meeting on December 5, 2016. City Manager Kiely stated that at the 60-day objection Period will begin following that meeting. Mike Strong then explained that staff is seeking direction from the Public Works Committee regarding the SSA approach to pursue. He also explained that to fulfill the construction time period endorsed at the October, 2016 meeting, the Public Hearing will need to be on December 5, 2016. Bidding in February is ideal to get the most competitive pricing. Chairman Waldeck stated that it was necessary to maintain the initially agreed upon timeline. Through the public process, staff will have a more accurate understanding of the opinions of the Winwood Subdivision community as a whole regarding this project. Alderman Newman stated that he is not confident that all residents have a thorough understanding of this project. Alderman Moreno stated that residents of other subdivisions recognized the significance of a centralized sanitary system. She also stated that she supports the initially agreed upon timeline. Chairman Waldeck stated that delaying the project could still be an option; however, the Public Works Committee does not yet have enough information. Tom Kaczmarski stated that certain properties within the Winwood Subdivision are likely to be further subdivided. He then stated that the project cost would be reduced if there were more lots present. Zachary Eleveld then stated that there are inequities with the design of the sanitary sewer system. He asked if other options could be considered that would be more cost effective for more residents. Director Thomas then stated that having two separate SSAs may further complicate the launching of this project. Chairman Waldeck suggested pursuing a single SSA. Alderman Newman and Alderman Moreno agreed. Chairman Waldeck thanked the Winwood Subdivision residents for being present. IV. WATER PLANT DESIGN DISCUSSION Director Thomas stated that the design of the Water Plant is going well. Also, the pilot is going well. Superintendent Martin introduced Brian Hackman of Strand Associates, Inc. who then explained that the City will be bidding the project in late January, 2017. Bids are expected to be received at the end of February, 2017. Staff will present bids to the Public Works Committee in mid-March and to City Council in early April. Brian Hackman explained that portions of the facility have been relocated to allow necessary updates to be completed. He then explained that it is necessary for water processing to be slowed down for optimal disinfection. He also explained that water needs to be pushed in a meandering path through the clearwell so that Water Plant Operators can process the water out of the Water Plant in the most safe and sanitary manner. The project budget was initially estimated to total $9.75 million. Chairman Waldeck confirmed the project timeline. Alderman Moreno inquired about the contingency amount. Brian Hackman responded stating that the total contingency amount has not been reduced yet. Alderman Moreno inquired about the bond issuance including the contingency. Director Holleb confirmed that the contingency is included in the bond issuance. Brian Hackman stated that major unanticipated additional project costs have not surfaced. Alderman Moreno requested that cost estimates continue to be very conservative. Chairman Waldeck motioned to support the proposed minor improvements and modifications to the clearwell. Alderman Moreno seconded her motion, which carried unanimously. V. OPPORTUNITY FOR PUBLIC COMMENT VI. NEXT MEETING – DECEMBER 5, 2016 – 5:00 P.M. AT CITY HALL VII. ADJOURNMENT Chairman Waldeck moved to adjourn the meeting of the Public Works Committee at 6:15 p.m. Alderman Newman seconded the motion, which carried unanimously. Respectfully submitted, Eileen Timken Management Analyst