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CITY COUNCIL 2-17-09 council agenda w attachmentsTHE CITY OF LAKE FOREST COUNCIL AGENDA Tuesday, February 17, 2009 7:30 p.m. City Hall Council Chambers CALL TO ORDER AND ROLL CALL 7:30 p.m. Honorable S. Michael Rummel, Mayor David D. Grumhaus, Jr., Alderman First Ward Thomas H. Morsch, Jr., Alderman Third Ward Kent E. Novit, Alderman First Ward Greg C. Hanrahan, Alderman Third Ward Stuart M. Widman, Alderman Second Ward John A. Looby III, Alderman Fourth Ward Renard Goltra, Alderman Second Ward Robert T. Palmer, Alderman Fourth Ward PLEDGE OF ALLEGIANCE REPORTS OF CITY OFFICERS 7:30 p.m. 1. Comments by Mayor A. Presentation of a Check from the Elawa Farm Foundation, presented by President Ashley Maentz B. Discussion on the Lake County Referendum Question for the Extension of Route 53 2. Comments by Acting City Manager 7:45 p.m. 3. Comments by Council Members A. Report on Deerpath Golf Carts-Continued Discussion and Consideration from the February 2, 2009 Council Meeting PRESENTED BY FINANCE COMMITTEE CHAIRMAN ALD. GRUMHAUS At the February 2, 2009 City Council meeting staff was directed to gather additional information regarding replacement of the golf carts at Deerpath Golf Course. Staff has met with the potential E-Z Go vendor and Director Reinertsen and gathered the facts requested. Each option introduces different expense variables so staff created a chart for each option that detailed the financial outlay over a six year investment plan. Staff also reviewed Deerpath repair invoices and current price list for parts to accurately estimate potential maintenance expense. The replacement options included: 1. Replacement via outright full fleet purchase in 2009 2. Staggered fleet replacement with a 2-year or 3-year cycle 3. Lease to Own Staff presented the full detailed research to the Finance Chair. Alderman Grumhaus will report on the specifics from the detailed options. However, a summary of the findings is below. February 17, 2009 Agenda Page 2 Summary: The options researched were based upon replacement of a total of 46 golf carts, trade- in value of the current cart fleet, expected life span of 6 years, our history of maintenance needs for carts and financing aspects for the different structures. Staff also researched whether we should increase the fleet total from 46 purchased carts to 53 rather than lease the additional 7 carts during our peak months. Taking all of these factors into consideration over a 6-year investment window the results are as follows: Option Cart Purchase Amount 6-Year Total Investment Outright Full Purchase $128,000 $150,500 2-Year Staggered Replacement $131,840 $168,740 3-Year Staggered Replacement $135,652 $186,752 Lease to Own $153,258 $159,258 7 Additional Carts for 6 yrs Lease: $20,160 Purchase: $27,178 Recommended Action: Staff requests City Council approval for the outright purchase of 46 carts from E-Z Go for a total purchase price of $128,000 to be funded from the Deerpath Golf Course fund balance. This purchase will result in the most cost effective investment. This will also give us the flexibility to change to a staggered four-year replacement program or lease program should the economic climate for golf necessitate a different financial approach in the future. 4. Council Committee Reports OPPORTUNITY FOR PUBLIC TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS CONSENT AGENDA 7:55 p.m. 1. Approval of the February 2, 2009 Minutes of the Regular City Council Meetings A copy is attached beginning on page 5. Recommended Action: Approval of the Consent Agenda as presented. OLD BUSINESS 1. Consideration of Acceptance of the Final Report of the Central 7:55 p.m. Business District Task Force PRESENTED BY DIRECTOR OF COMMUNITY DEVELOPMENT CATHERINE CZERNIAK (847-615-4299) At the Committee of the Whole meeting, on February 2, 2009, Chairman Georgi and the members of the Central Business District Task Force presented the final report of the Task Force to the City Council. The report provides an overview of the work of the Task Force and offers the following vision for the Central Business District. February 17, 2009 Agenda Page 3 Market Square is the “jewel” of the City of Lake Forest’s Central Business District and the uniqueness and vitality of this core area will continue to be what sets Lake Forest apart from other places in the future. Market Square will be preserved, supported and enhanced through ongoing efforts to: 1) Consolidate specialty retail and restaurant uses in and immediately around Market Square. 2) Provide opportunities for intensification of the area immediately adjacent to Market Square. 3) Allow for increased residential and office opportunities. Each of these efforts will put more people on the street to shop, eat, gather and celebrate, distinguishing the Lake Forest Central Business District from all other shopping experiences. The Final Report of the Task Force recommends a series of Action Steps that are intended to “strengthen what exists by supporting appropriate change”. A copy of the full report was previously distributed to the Council and is available on the City’s website. At the direction of the City Council, staff is prepared to plan for implementation of the action steps and report back to the City Council. Recommended Action: Approve a motion accepting the final report of the Central Business District Task Force and direct staff to proceed with planning for implementation of the Action Steps. 2. Preliminary Presentation of the Scope of Work for a Proposed 8:05 p.m. Housing Study PRESENTED BY DIRECTOR OF COMMUNITY DEVELOPMENT CATHY CZERNIAK (847-615-4299) In response to recent community discussions and in response to particular challenges the community is facing, the concept of conducting a housing study has been suggested. In general, such a study would be intended to evaluate the City’s current housing stock, identify any gaps or over abundance of particular housing types within the City and make recommendations on how the community might best match future development with projected demographics. In order to frame the specific issues that might be studied by such a study, staff has had preliminary conversations with various consultants and some community members. At the Council meeting, staff will provide a brief overview of the proposed scope of work and seek Council input. If the Council directs staff to proceed with seeking proposals for a Housing Study, and after those proposals are received and reviewed by staff, this matter will be brought back to the Council for award of a contract for a housing study. Recommended Action: Provide direction to staff with respect to the proposed scope of work and direct staff to seek proposals for a housing study from qualified consultants. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION February 17, 2009 Agenda Page 4 ADJOURNMENT 8:30 p.m. Office of the City Manager February 12, 2009 The City of Lake Forest is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting, or who have questions regarding the accessibility of the meeting or the facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. The City of Lake Forest CITY COUNCIL Proceedings of the February 2, 2009 Regular Meeting 7:30 p.m. – City Hall Council Chambers CALL TO ORDER AND ROLL CALL: Mayor Rummel called the meeting to order. Deputy City Clerk called the roll of Council members. Present: Mayor Rummel, Aldermen Grumhaus, Novit, Goltra, Morsch, Hanrahan, Looby, and Palmer. Absent: Widman. Quorum present. There were approximately 19 present in the audience. Also present were: Robert R. Kiely, Jr., City Manager; Victor Filippini, City Attorney; Marcus Peccia, Asst. City Manager; Rosemary Haack, Public Information Officer; Cathy Czerniak, Director of Community Development, Carina Walters, Assistant to the City Manager. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance. 1. Comments by Mayor: Mayor Rummel reported that he would be an informational exchange with Lake Forest College students. A. Report on February 8th Preservation Program: Mayor Rummel reported on the upcoming event on February 8, 2009 called the Preservation as Green Planning session. 2. Comments by City Manager: City Manager Bob Kiely reported on the upcoming Ward Meetings, and the upcoming 2010 US Census preparations. A. Presentation of Garden Club Awards, presented by Pru Beidler: Pru Beidler reported on the Civic Beautification Awards and the recognition of the 2008 recipients. B. Community Spotlight – Lake Forest Symphony, presented by James Ritcher, Lake Forest Symphony Board President, and Jay Owen, Acting Executive Director: Board President James Ritcher reported on the recent efforts and economic status of the Symphony and the Music Institute of Chicago. Executive Director Jay Owen reported on the connection between the Symphony and the Music Institute of Chicago. C. Report on January 30 Ft. Sheridan Golf Course Meeting: Mr. Kiely reported that the Lake County Forest Preserve District has been having difficulties over the past several years in building the proposed golf course, especially in light of the current economic climate. He explained that representatives from Lake Forest, Lake Bluff, and Highland Park has analyzed what the impacts would be if the golf course was built. A meeting was held on this issue to discuss all sides of the issue. Mr. Kiely explained that at the March 2, 2009 City Council meeting, a resolution would be placed on the agenda to state Lake Forest’s position on this issue. D. Report on Federal Stimulus Program, presented by David Streicker, Holland and Knight: Mr. Steicker reported on the proposed House Bill called the America Recovery and Reinvestment Bill of 2009. He noted that funds released for this bill will not be earmarked. The process for obtaining funds will be highly competitive. He noted he is tracking information and options of the appropriation of funds. There is a high amount of accountability measures built into this Bill including public notice of funding. Areas that the Bill addresses are: infrastructure and highways, energy, education, social services, and technology. The next steps is to develop a strategic plan and make a priority list, and to provide regular communication to the City Council, continue to seek State grants simultaneously, and City’s stimulus efforts will transit to the State capital bill. Proceedings of the February 2, 2009 Page 2 Regular City Council Meeting 3. Comments by Council Members: Alderman Morsch reported on the Ward 3 Meeting. It was also noted that the Lake Forest high School basketball team currently ranks 10th. 4. City Council Committee Reports: Alderman Palmer reported on the efforts of the Legal Committee regarding impact fees. The Committee also met in executive Session to discuss litigation. OPPORTUNITY FOR PUBLIC TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS: Mr. Bob Pasquesi, Washing Road, commented on on-street parking issues taking place on a portion of Washington Road. CONSENT AGENDA 1. Approval of the January 20, 2008 Minutes of the Regular City Council Meetings 2. Market Square 2000 Register In November 2002, The City of Lake Forest and Market Square 2000 entered into an agreement which provided for the transfer of the Market Square Funds to The City for the sole purpose of maintaining and improving the landscape and streetscape elements of Market Square. The agreement also requires that prior to the expenditure of any Market Square funds, The City will hold a public hearing and notify all persons listed on the registry of this hearing, so that they have an opportunity to review and comment on the expenditures. As required by The City’s agreement, The City has mailed letters to the individuals listed on the registry notifying them that The City is requesting $8,000 from the Market Square 2000 Endowment to be set aside to cover costs associated with Market Square, including plant replacement, bollard and brick maintenance, irrigation repair, and other items. 3. Approval of Authorized Invoices and Payrolls During the month of January, the following amounts were disbursed from the Cashier’s Account: GENERAL FUND WATER TOTALS INVOICES $533,153.36 $85,159.00 $618,312.36 PAYROLL $1,195,554.12 $138,007.37 $1,333,561.49 TOTALS $1,728,707.48 $223,166.37 $1,951,873.85 The motion is for the approval of Authorized Invoices and Payrolls for January, 2009. 4. Authorization of Treasurer’s Warrants to Meet Expenses of February, 2009 The motion is to authorize the Mayor and City Clerk to sign such warrants as may be necessary to meet the February, 2009 audited accounts. Alderman Grumhaus moved, seconded by Alderman Looby to open the public hearing on the Market Square 2000 Funds. The motion carried unanimously by voice vote. There being no public comment, Alderman Looby moved, seconded by Alderman Grumhaus to close the public hearing. The motion carried unanimously by voice vote. Alderman Looby moved, seconded by Alderman Grumhaus to approve the Consent Agenda as presented. The following voted “aye”: Grumhaus, Novit, Goltra, Morsch, Hanrahan, Looby, Palmer. The following voted “nay”: None. The motion carried unanimously. Proceedings of the February 2, 2009 Page 3 Regular City Council Meeting NEW BUSINESS 1. Consideration and Award of Contract for Deerpath Golf Course Improvements: Director of Parks and Recreation Mary Van Arsdale reported at the December 1, 2008 City Council meeting, staff presented the results of the Deerpath Golf Course Cost of Services study conducted by Edgehill Golf and Pellucid Corporation. The cost of services study showed that Deerpath is in a more favorable position than most municipal and private golf courses (locally and nationally) but will face some possible cash flow shortages in the coming years due to debt service requirements and capital needs. The report indicated that in order to remain as financially viable as possible and to position ourselves optimally for the immediate future the City should investigate three additional service improvements for Deerpath Golf Course: golf cart replacement, technology and marketing enhancements and adding a deep well. Additional research has been concluded on each of the items and staff seeks City Council approval to move forward with the purchasing of the golf carts in accordance with the City’s purchasing policies. The technology enhancements and deep well background is provided for informational purposes. Improvement #1: Golf Cart Replacement Deerpath Golf Course currently owns 46 E-Z-Go golf carts. The fleet was purchased in 2002. Golf carts are typically replaced on a five year schedule based upon condition and escalating maintenance costs. We have been fortunate to stretch our useful life to the seven year level but maintenance repairs have increased significantly in the past two years and the carts are in need of replacement in order to ensure consistent delivery of service. The carts are an essential component to financial success and cart revenues alone account for approximately $155,000 annually in the budget. Delaying cart replacement will result in additional spring maintenance costs of approximately $15,000 and an overall decrease (4-7%) in the trade-in value of the fleet. Staff investigated lease, lease to own and outright purchase options from the three primary golf cart vendors in our area: E-Z-Go, Yamaha and Club Car. The proposals solicited were based upon 46 carts and the pricing is inclusive of the trade-in value of our current fleet. The guaranteed price proposals are summarized below: Cart Options E-Z-GO (Model TXT-PDS) YAMAHA (Model 48v- DrivePremium) CLUB CAR (Model Prec i2) Outright Purchase $128,000 $126,960 $144,900 5 Year Lease to Own $148,695 $168,360 $325,186 6 Year Lease to Own $153,262 Not an option $333,397 5 Year Lease Only $124,972 $124,000 Not an option 6 Year Lease Only $130,327 Not an option Not an option Golf cart vendors are sole distributors of their brand and have a regional sales representative for their product. With a limited number of golf cart vendors and the need to incorporate the trade-in value, staff solicited sole vendor proposals instead of a public bid process. Staff met with the sales representative of each company, verified that the cart specifications were comparable across the three vendors and provided the opportunity for the vendor to inspect Deerpath’s fleet to determine trade-in value. In addition, each vendor provided demonstration carts to the course this past season and members and staff were able to test ride the actual golf carts. Based upon this open process and the ensuing cart proposals, staff is recommending that the City outright purchase carts, Model TXT-PDS from E-Z-Go at the total price of $128,000 and to fund this purchase from the Deerpath Golf Course fund balance. Staff is not recommending a lease or lease-to-own option due to the added expense over the lease term. Currently, the Deerpath Golf Fund balance is $313,000 and outright purchasing would reduce the fund balance Proceedings of the February 2, 2009 Page 4 Regular City Council Meeting to $185,000. The fund balance would be slightly below the 15% target policy but does leave the golf course with a good fund balance for any emergency needs. Also, though slightly more expensive than Yamaha ($22 per car), E-Z-Go carts are well liked by our golfers and provide the best seating comfort, has a quality product as evidenced by our current fleet longevity and has provided Deerpath with outstanding service over the past seven years. This item was also discussed at the Committee of the Whole meeting. There was a consensus that this item be tabled and come back to the Council at the February 17, 2009 Council meeting after further review by the City Manager, Finance Committee Chairman, and Director of Parks and Recreation. Improvement #2: Technology and Marketing Enhancements In this competitive time and market, it is critical that Deerpath Golf Course invest in technology that provides greater access for the customer and creates critical customer demographics for the business operations of the course. Staff has researched three golf software vendors to provide a complete, integrated solution to allow our course to run more efficiently and be positioned for optimal revenue. Research of each of the companies included the analysis of applications in the following areas: fully integrated Tee Sheet, Customer Database, Point of Sale, Inventory System, On-Line Tee Reservation System and Web Page Marketing Tools. A team of staff with representation from the City’s technology department, finance department, golf course operations and recreation department worked together to interview and research the services proposed by the following three software providers. 1) Active Network: Current software provider for Recreation department program and fitness memberships 2) Crescent Systems: Current software provider for the Deerpath Golf Course Pro Shop point of sale software 3) Fore! Reservations: Well-known golf course software and marketing vendor Live product demonstrations were held with each of the above vendors, marketing materials were reviewed, references contacted and pricing for software and hardware needs confirmed. Though each of the vendors offers various strengths within their software capabilities, staff recommends Crescent Systems as the best software vendor to meet our needs. Crescent software applications are well designed, easy to use, include staff training, allows for customization and has excellent references, including our own course. Since we already own the point of sale and membership software, the pricing was also advantageous to select Crescent Systems. An overview of costs for each vendor is outlined below: Crescent Systems Fore! Reservations Active Network Software and licenses $1,000 $1,500 $6,200 Hardware $2,653 $6,700 TBD Training Included in software cost $2,700 $4,800 Total Start-up Expense (not including web design) $3,653 $10,900 $11,000 Annual Maintenance $1,817 $1,500 $4,800 In addition to selecting the software vendor, the City also must create the web-site application to allow for the on-line tee time reservation payment to be processed. Staff purchased the domain name to Deerpathgolf.com ($115) and is finalizing the web-site integration needed. This may result in minor additional design expenses. Staff budgeted for this technology enhancement in the FY2009 golf operations budget with a not to exceed amount of $13,000. As you can see, the improvements and web design needs are within the available operating funds. With the selection of Crescent Systems, staff anticipates that the installation will be complete in March 2009 with on- line tee reservations available June 2009. Overall, adding the technology capabilities will also Proceedings of the February 2, 2009 Page 5 Regular City Council Meeting allow us to expand marketing capabilities through email and target marketing. These enhancements will expand our ability to serve and reach customers which in return will help drive golf sales and increase customer satisfaction. (No City Council Action Required) Improvement #3: Deep Well Installation Staff from the Office of the City Manager, Public Works/Water Department, Finance Department and Parks and Recreation Department met on December 15, 2008 to discuss the topic of a deep well installation at Deerpath Golf Course and the corresponding result of not being a water customer of the City. The three goals of the meeting were: 1. Identify the challenges and opportunities for the City that might occur if a deep well was installed at Deerpath Golf Course. Identify the corresponding impacts to the water fund. 2. Identify the additional research and deliverables needed in order to provide the necessary factual data to pursue a capital investment discussion. 3. Establish a timeline for completing the research and making a recommendation to City Council. It was determined by staff that the most ideal time to bring the information back to City Council would be in November 2009 in time to be included in the FY2011 comprehensive capital funding discussion. To achieve this budget deadline the following research and their completion benchmark dates were created: a. Research surrounding golf courses on current water source and potential cost savings. May 2009 b. Confirm specifications and actual installation cost for the deep well system at the golf course as well as ongoing maintenance and utility expenses for a deep well. July 2009 c. Identify impacts to City’s tank stabilization and potential to accommodate other water customers. July 2009 d. Update the water rate study to allow for a multi-year analysis that identifies impact to the water fund and possible rate adjustment scenarios. September- October 2009 e. Clarify financial impacts to operating budgets and capital funds as well as provide potential financing options. October 2009 f. Present findings and recommendation to City Council. November 2009 Staff will continue to research this golf course improvement over the next ten months. (No City Council Action Required) ADDITIONAL ITEMS FOR COUNCIL DISCUSSION: None. ADJOURNMENT: There being no further business, Alderman Looby moved, seconded by Alderman Grumhaus to adjourn the meeting at 9:03 p.m. The motion carried unanimously by voice vote. Respectfully submitted, Elizabeth A. Marquez Deputy City Clerk