2019-02-04 - Village Board Committee of the Whole - Agenda Packet19
Meeting of the Village of Buffalo Grove
Village Board
Committee of the Whole
February 4, 2019 at 7:30 PM
Call to Order
A. Pledge of Allegiance
Fifty Raupp Blvd
Buffalo Grove, IL 60089-2100
Phone: 847-459-2500
2. Special Business
A. Update Regarding the Northwest Suburban Housing Collaborative (Trustee Weidenfeld)
(Staff Contact: Chris Stilling)
B. Proposed Amendment to the Investment Policy to Include Corporate Debt (Trustee
Stein) (Staff Contact: Andrew Brown)
C. Update Regarding Residential Solid Waste and Recycling Services (Trustee
Ottenheimer) (Staff Contact: Chris Stilling)
D. Discussion Regarding the Upcoming Comprehensive Plan Project and Community
Engagement (Trustee Ottenheimer) (Staff Contact: Chris Stilling)
I Questions From the Audience
Questions from the audience are limited to items that are not on the regular agenda. In
accordance with Section 2.02.070 of the Municipal Code, discussion on questions from the
audience will be limited to 10 minutes and should be limited to concerns or comments regarding
issues that are relevant to Village business. All members of the public addressing the Village
Board shall maintain proper decorum and refrain from making disrespectful remarks or comments
relating to individuals. Speakers shall use every attempt to not be repetitive of points that have
been made by others. The Village Board may refer any matter of public comment to the Village
Manager, Village staff or an appropriate agency for review.
4. Executive Session
A. Executive Session - Section 2(C)(1) of the Illinois Open Meetings Act: the Appointment,
Employment, Compensation, Discipline, Performance, or Dismissal of Specific
Employees of the Public Body or Legal Counsel for the Public Body, Including Hearing
Testimony on a Complaint Lodged Against an Employee of the Public Body or Against
Legal Counsel for the Public Body to Determine Its Validity. (President Sussman) (Staff
Contact: Dane Bragg)
5. Adjournment
The Village Board will make every effort to accommodate all items on the agenda by 10:30 p.m.
The Board, does, however, reserve the right to defer consideration of matters to another meeting
should the discussion run past 10:30 p.m.
The Village of Buffalo Grove, in compliance with the Americans with Disabilities Act, requests that
persons with disabilities, who require certain accommodations to allow them to observe and/or
participate in this meeting or have questions about the accessibility of the meeting or facilities,
contact the ADA Coordinator at 459-2525 to allow the Village to make reasonable
accommodations for those persons.
2.A
Information Item : Update Regarding the Northwest Suburban
Housing Collaborative
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action pp
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Staff recommends discussion.
At the February 4, 2019 Committee of the Whole meeting, staff will provide the Village Board with an
update on the Village's participation in the Northwest Suburban Housing Collaborative (NWSHC). A
representative from NWSHC will also provide a presentation on the various programs offered.
ATTACHMENTS:
• NWSHC BOT Memo 1.30.19 (DOCX)
Trustee Liaison
Weidenfeld
Monday, February 4, 2019
Staff Contact
Chris Stilling, Community Development
Updated: 1/30/2019 1:07 PM
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BUFFALO GRON/E
MEMORANDUM
DATE: January 30, 2019
TO: President Beverly Sussman and Trustees
FROM: Nicole Woods, Principal Planner
SUBJECT: Northwest Suburban Housing Collaborative Update
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BACKGROUND
In 2011, the Village of Buffalo Grove entered into an Intergovernmental Agreement (IGA) with the
Village of Arlington Heights, the Village of Mount Prospect, the Village of Palatine, and the City of
Rolling Meadows to establish the Northwest Suburban Housing Collaborative (NWSHC). NWSHC
was funded by a Chicago Community Trust grant intended to provide housing services during the
downturn. Consequently, the 2011 IGA tied the Collaborative objective and timeline to that specific
grant.
In 2012, the IGA was amended to broaden NWSHC's objective, timeline, and funding sources so that
the collaborative could provide more diversified housing services utilizing various funding sources
until August, 2015. The IGA was amended again in 2015 and maintained a broad scope of work so
to optimize the eligibility for funding opportunities and provide more comprehensive housing
services. The 2015 IGA is in effect until 2020.
NWSHC is mainly supported through grands and services from various partners. Communities in
NWSHC do not have any financial obligations to this organization. Instead, communities are obliged
to donate staff time (around 5 hours a month) to the organization.
ACCOMPLISHMENTS TO DATE
NWSHC's work to date has mainly focused on housing supply and demand, foreclosures, and senior
housing issues. These topics have been examined and addressed through services and studies such
as:
• Homes for the Changing Region Report
• Senior Housing Needs Study
• Handyman Program
• Senior Resource Guide
Handyman Program
The most prominent program is the Handyman Program which was established in 2014. In this
program, senior residents of NWSHC are eligible to receive minor home repairs (installation of grab
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bars, gutter cleaning and screen repair) for nominal costs. Since the program's inception, 89 eligible
seniors in Buffalo Grove have been served by the Handyman Program. Most of the requested
repairs are gutters, faucet repair and toilet installation.
CAPABLE Program
Recently, NWSHC has created the Northwest Suburban Community Aging in Place Advancing Better
Living for Elders (CAPABLE) program. The CAPABLE Project aims to help seniors live independently in
their home and more fully engage in daily activities. To participate, residents must fulfill the
following eligible standards:
Eligibility criteria:
• 65 years old and older
• Lives in a NWSHC community
• Does not reside in assisted living or other facility providing any direct medical care
• Qualifies via a physical and mental health assessment and standards
• Has home repair/modification accessibility/safety needs (broken floors, raised toilet seats,
door handles etc.)
• Plans to stay in the home for the next year
Once someone is deemed eligible for the program, an occupational therapist, nurse, and handyman
come to them to deliver services over a four month period. These visits will include initial screening,
discussion of priority of goals, identifying and implementation of home repairs/modifications,
exercises, and strategies to reach goals, and then final completion of services and evaluations.
The health care services would be provided to participants at no cost. Handyman material and labor
would be provided at no cost to those income -eligible participants. Those above the income
threshold would pay a sliding scale.
Program's Goals:
• 34 of the 40 clients has a household income less than or equal to 80% Area Median Income
• 5 clients live in each of the NWHC communities
• At least 15% or 6 out of the 40 clients are racial or ethnic minorities
NEXT STEPS
At the February 4, 2019 Committee of the Whole meeting, a representative from the Northwest
Housing Partnership will present an overview of the Handyman Program as well as the CAPABLE
Project as key programs of the NWSHC.
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2.B
Information Item : Proposed Amendment to the Investment Policy to
Include Corporate Debt
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Recommendation of Action pp
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Staff recommends discussion.
Illinois State Statute was recently amended to allow public entities to purchase corporate obligations. The
amendment limits the obligations to a maximum maturity of three years and requires certain minimum
rating agency grades. Previously, the only permitted corporate debt was commercial paper with a
maximum maturity of 180 days, which had certain minimum rating agency grades.
Staff recommends amending the Investment Policy to allow corporate debt as an investment vehicle for
the Village as well as set the parameters, grades, and portion of the portfolio. The recommendation
requires that the corporate debt instrument be graded at Al or AA- or higher as well as the combined total
of corporate debt and commercial paper in the portfolio at anytime not exceed 33%.
The addition of corporate debt allows the Village an opportunity to earn higher rates of return on its
working cash balances.
Attached is a red lined version of the amended Investment Policy.
ATTACHMENTS:
• Investment Policy Update 1.30.19 (DOCX)
Trustee Liaison Staff Contact
Stein Andrew Brown, Finance
Monday, February 4, 2019
Updated: 1/31/2019 2:45 PM Page 1
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Investment Policy
I. Policy:
The Village of Buffalo Grove, as a public agency, has an inherent fiduciary responsibility to properly account for and
manage public funds. Public funds are to be considered current operating funds, special funds, debt service and other
funds of any kind or character belonging to or in the custody of any public agency (Chapter 30, paragraph 235/1 through
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235/7, Public Funds Investment Act, Illinois Complied Statutes
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II. Scope:
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This investment policy applies to all financial assets of the Village of Buffalo Grove except for the Police and Firefighter's
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Pension Funds which are subject to those individual fund boards.
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1. Pooling of Funds
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Except for cash in certain restricted and special funds, the Village of Buffalo Grove will consolidate and reserve
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balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment
pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their
respective participation and in accordance with generally accepted accounting principles.
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III. General Objectives:
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The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:
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1. Safety
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Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner
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that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk
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and interest rate risk
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(a). Credit Risk
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The Village of Buffalo Grove will minimize credit risk, which is the risk of loss due to the failure of the
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security issuer or backer, by:
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• Limiting investment to the types of securities listed in Section VII of this Investment Policy.
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• Pre -qualifying the financial institutions, broker/dealers, intermediaries, and adviser with which the
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Village of Buffalo Grove will do business in accordance with Section V.
• Diversifying the investment portfolio so that the impact of potential losses from any one type of
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security or from any one individual issuer will be minimized.
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(b). Interest Rate Risk
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The Village of Buffalo Grove will minimize interest rate risk, which is the risk that the marker values of
securities in the portfolio will fall due to changes in market interest rates, by:
• Structuring the investment portfolio so that securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to
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maturity
• Investing operating funds primarily in shorter -term securities, money market mutual funds, or
similar investment pools and limiting the average maturity of the portfolio in accordance with this
policy (see section VIII).
2. Liquidity
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The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably
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anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to
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meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the
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portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively,
a portion of the portfolio may be placed in money market mutual funds or local government investment pools which
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offer same day liquidity for short-term funds.
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3. Yield
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The investment portfolio shall be designed with the objective of attaining a market rate of return throughout
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budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on
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investment is of secondary importance compared to the safety and liquidity objectives described above. The core of
investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being
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assumed. Securities shall generally be held until maturity with the following exceptions:
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• A security with declining credit may be sold early to minimize loss of principal.
• A security swap would improve the quality, yield, or target duration in the portfolio.
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• Liquidity needs of the portfolio require that the security be sold.
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IV. Standards of Care:
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1. Prudence
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The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be
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applied in the context of managing the overall portfolio. Investment officers acting in accordance with written
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procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an
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individual security's credit risk or market price changes, provided deviations from expectations are reported in a
timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy.
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2. Ethics and Conflicts of Interest
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Officers and employees involved in the investment process shall refrain from personal business activity that could
conflict with the proper execution and management of the investment program, or that could impair their ability to
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make impartial decisions. Employees and investment officials shall disclose any material interests in financial
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institutions with which they conduct business. They shall further disclose any personal financial/investment positions
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that could be related to the performance of the investment portfolio. Employees and officers shall refrain from
undertaking personal investment transactions with the same individual with whom business is conducted on behalf
of the Village of Buffalo Grove.
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3. Delegation of Authority
Authority to mange the Village of Buffalo Grove's investment program is derived from the following:
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The establishment of investment policies is the responsibility of the Village Board. Management and administrative
responsibility for the investment program is hereby delegated to the Finance Director who, under the direction of the
Village Manager, shall establish written procedures for the operation of the investment program consistent with this
investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment
accounting, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking service
contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as provided under the terms of this policy
and the procedures established by the Finance Director. The Finance Director shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The Finance
Director may from time to time amend the written procedures in a manner not inconsistent with this policy or state
statutes.
The responsibility for investment activities of the Police and Firefighter Pension Funds rest with the trustees of the
respective fund boards.
V. Authorized Financial Institutions, Depositories and Broker/Dealers:
The Finance Director will maintain a list of financial institutions authorized to provide investment services. In addition, a
list will be maintained of approved security broker/dealers selected by credit worthiness. These may include "primary"
dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 150-1 (uniform net
capital rule). No public deposit shall be made except at a qualified public depository as established by state statutes.
All financial institutions and broker/dealers who desire to become qualified become qualified bidders for investment
transactions must supply the Finance Director with the following:
• Audited financial statements demonstrating compliance with state and federal capacity adequacy guidelines
• Proof of National Association of Security Dealers (NASD) certification (not applicable to Certificate of Deposit
counterparties)
• Proof of state registration
• Completed broker/dealer questionnaire
• Certification of having read the Village's Investment Policy
VI. Safekeeping and Custody:
All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited
in an eligible financial institution prior to the release of funds.
Securities will be held by an independent third -party custodian selected by the Village as evidenced by safekeeping
receipts in the Village's name. The safekeeping institution shall annually provide a copy of their most recent report on
internal controls (Statement of Auditing Standard No. 70, or SAS 70).
1. Internal Controls
The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure
that the assets of the Village of Buffalo Grove are protected from loss, theft or misuse. Details of the internal controls
system shall be documented in an investment procedures manual and shall be reviewed and updated annually. The
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internal control structure shall be designed to provide reasonable assurance that these objectives are met. The
concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be
derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
The internal controls structure shall address the following points:
• Control of collusion
• Separation of transaction authority from accounting and recordkeeping
• Custodial safekeeping
• Avoidance of physical delivery securities
• Clear delegation of authority to subordinate staff members
• Written confirmation of transactions for investments and wire transfers
• Dual authorizations of wire transfers
• Development of a wire transfer agreement with the lead bank and third -party custodian
Accordingly, the Finance Director shall establish a process for annual independent review by an external auditor to
assure compliance with policies and procedures.
VII. Suitable and Authorized Investments:
The Village may invest in any type of the security allowed for in Illinois Compile Statutes (30 ILCS 235/2) regarding the
investment of public funds. Approved investments include:
• Bonds, notes, certificates of indebtedness, treasury bill, or any other securities now or hereafter issued, which
are guaranteed by the full faith and credit of the United States of American as to principal and interest;
• Bonds, notes, debentures or other similar obligations of the United States of America or its agencies;
• Interest -bearing savings accounts, interest -bearing certificates of deposit or interest -bearing time deposits or
any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act; and is
insured by the Federal Deposit Insurance Corporation;
• Short-term obligations of corporations organized in the United States with assets exceeding $500,000,000 if (i)
such obligations are rated at the time of purchase at one of the three highest classifications established by at
least two standard rating services and which mature not later than 180 days for the date of purchase, (ii) such
purchases do not exceed 10% of the corporation's outstanding obligations and (iii) no more than 25% of the
Village's funds may be investing in short-term obligations of corporations;
• Illinois Public Treasurer's Investment Pool (Illinois Funds), and the Illinois Metropolitan Investment Fund (IMET)
• Short-term discount obligations of the Federal National Mortgage Association (FNMA) or I shares of other forms
of securities or other allowable investments legally issued by savings and loan associations incorporated under
the laws of this state or any other state or under the laws of the United States. Investments may be made only in
those savings and loan associations of which the shares or investment certificates are insured by the Federal
Deposit Insurance Corporation (FDIC).
• Investment options suitable under ILCS including Fixed Rate General Obligation Municipal Bonds and Corporate
Obligations whose credit quality is restrict to " Al or AA-" or better.
1. Collateralization:
It is the policy of the Village of Buffalo Grove and in accordance with the GFOA's Recommended Practices on the
Collateralization of Public Deposits (attachment #2), the Village requires that funds on deposit in excess of FDIC limits
be secured with some form of collateral, including surety bonds or letters of credit. The Village will accept any of the
following assists as collateral:
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• Government Securities
• Obligations of Federal Agencies
• Obligations of Federal Instrumentalities
• Fixed Rate General Obligation Municipal Bonds rated "AA" or better
• Obligations of the State of Illinois
(The Village reserves the right to accept/reject any form of the above named securities.)
The amount of collateral provided will not be less than 103% of the fair market value of the net amount of public
funds secured. The ratio of fair market value of collateral to the amount of funds secured will be reviewed monthly,
and additional collateral will be required when the ratio declines below the level required and collateral will be
released if the fair market value exceeds the required level. Pledged collateral will be held in safekeeping by an
independent third party depository designated by the Village of Buffalo Grove and evidenced by a safekeeping
agreement. Collateral agreements will preclude the release of the pledged assets without an authorized signature
from the Village of Buffalo Grove. The Village realizes that there is a cost factor involved with collateralization and the
Village will pay any reasonable and customary fees related to collateralization.
Vill. Investment Parameters:
1. Diversification
In order to reduce the risk of default, the investment portfolio of the Village of Buffalo Grove shall be diversified by
• Limiting investments to avoid over -concentration in securities from a specific issuer or business sector (U.S.
Treasury and Agency securities),
- Monies deposited at a financial institution shall not exceed 75% of the capital stock and surplus of
that institution.
- Commercial paper and Corporate Liebt, combined, shall not exceed 33% of the Village's investment
portfolio.
- Brokered certificates of deposit shall not exceed 25% of the Village's investment portfolio.
• Investing in securities with varying maturities, and
• Continuously investing a portion of the portfolio in readily available funds such as local government
investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that
appropriate liquidity is maintained in order to meet ongoing obligations.
2. Maximum Maturities
To the extent possible, the Village of Buffalo Grove will attempt to match its investments with anticipated cash flow
requirements. Unless matched to a specific cash flow, the Village will not directly invest in securities maturing more
than three years from the date of purchase.
Reserve funds and other funds with longer -term investment horizons may be invested in securities exceeding three
year if the maturities of such investments are made to coincide as nearly as practicable with the expected use of
funds.
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Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be
continuously invested in readily available funds such as LGIPs, money market funds, or overnight repurchase
agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations.
IX. Reporting:
The Finance Director shall prepare as investment report at least quarterly, including a management summary that
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provides an analysis of the status of the current investment portfolio. This management summary will be prepared in a
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manner which will allow the Village to ascertain whether investment activities during the reporting period have
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conformed to the investment policy. This report should be provided to the Village Manager and Village Board. The
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report will include the following:
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• Listing of individual securities held, by fund, at the end of the reporting period.
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• Average weighted yield to maturity of portfolio.
• Listing of investments by maturity date.
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• Percentage of total portfolio which each type of investment represents.
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1. Performance Standards
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The investment portfolio will be managed in accordance with the parameters specified within this policy. The
portfolio should obtain a market average rate of return during a market/economic environment of stable interest
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rates. Portfolio performance should be compared to appropriate benchmarks on a regular basis. The benchmarks
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shall be reflective of the actual securities being purchased and risks undertaken, and the benchmark shall have similar
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weighted average as the portfolio.
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2. Market Yield
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The Village's investment strategy is passive. Given this strategy, the basis used by the Finance Director to determine
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whether market yield are being achieved shall be the six-month U.S. Treasury Bill.
3. Marking to Market
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The market value of the portfolio shall be calculated at least quarterly and a statement of the market value of the
portfolio shall be issued at least quarterly. This will ensure that review of the investment portfolio, in terms of value
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and price volatility, has been performed consistent with the GFOA recommended Practices on "Mark -to -Market
Practices for State and Local Government Investment Portfolios and Investment Pools" (attachment #3). In defining
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market value, considerations should be given to the GASB Statement 31 pronouncement.
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X. Investment Policy Adoption:
The Village of Buffalo Grove's investment policy shall be adopted by resolution of the Village Board of Trustees. This
policy shall be reviewed on an annual basis by the Finance Director and any modifications thereto must be approved by
the Village Board of Trustees.
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XI. Glossary: Q
AGENCIES: Informal name that refers to securities issued by the United States government and U.S. government
sponsored instrumentalities.
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ASKED: The trading price proposed by the prospective seller of securities. Also called the offer or offered price.
BANKERS' ACCEPTANCE (BA): A short-term financial instrument that is the unconditional obligation of the accepting
bank.
BASIS POINT (BP): A unit of measurement for interest rates or yields that are expressed in percentages. (One hundred
basis points equal 1 percent.)
BID: The trading price acceptable to a prospective buyer of securities.
BOND EQUIVALENT YIELD (BEY): An annual yield, expressed as a percentage, describing the return provided to bond
holders. The BEY is a way to compare yields available from discount securities such as Treasury bills and BAs with yields
available from coupon securities.
BROKER: A party who brings buyers and sellers together. Brokers do not take ownership of the property being traded.
They are compensated by commissions. They are not the same as dealers; however, the same individuals and firms that
act as brokers in some transactions may act as dealers in other transactions.
BROKERED AND NEGOTIABLE CERTIFICATES OF DEPOSIT: Short-term (2 to 52 weeks) large denomination ($100,000
minimum). Certificate of Deposit that is issued at a discount on its par value, or at a fixed interest rate payable at
maturity and are freely traded in secondary markets.
CERTIFICATE OF DEPOSIT (CD): A deposit of funds, in a bank or savings and loan association, for a specific term that
earns interest at a specified rate or rate formula. CDs may be secured or unsecured, may be in negotiable or
nonnegotiable form and may be issued in either physical or book entry form.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. a
Also refers to securities pledged by a bank to secure deposits of public monies.
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COMMERCIAL PAPER (CP): Unsecured, short-term promissory notes issued by corporations for specific amounts and
with specific maturity dates.
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COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Village of Glenview. It includes >
five combined statements and basic financial statements for each individual fund and account group prepared in a°
conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related r_
legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. E
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.
(b) A certificate attached to a bond evidencing interest due on a payment date.
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CORPORATE DEBT OBLIGATION: A debt security issued b a cor oration and sold to investors with the backing of the
bond payment ability being that of the earnings of the corporation generated from future operations. Q
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DEALER: A firm or individual who buys and sells for their own account. Dealers have ownership between a purchase
from one party and a sale to another party. Dealers are compensated by the spread between the price they pay and the
price they receive.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT (DVP): The simultaneous exchange of securities and cash. The safest method of settling
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either the purchase or sale of a security. In a DVP settlement, the funds are wired from the buyer's account and the
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security is delivered from the seller's account in simultaneous independent wires.
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DISCOUNT: The amount by which the price for a security is less than its par.
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discount securities.
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DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of institutions
and individuals, e.g., S & L's, small business firms, students, farmers, farm cooperatives, and exporters.
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FEDERAL DEPOSIT OF INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to
$100,000 per deposit.
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FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The
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commercial banks.
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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or FANNIE MAE): FNMA is a federal corporation working under
the auspices of the Department of Housing & Urban Development, HUD. It is the largest single provider of residential
mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned
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corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to
fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal
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and interest.
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FEDERAL OPEN MARKET COMMITTEE (FOMQ Consists of seven members of the Federal Reserve Board and five of the
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twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member
while the other Presidents serve on a rotation basis. The Committee periodically meets to set Federal Reserve guidelines
regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of
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bank credit and money.
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FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven
member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are
members of the system.
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GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE): GNMA, like FNMA, was chartered
under the Federal National Mortgage Association Act of 1938. Securities guaranteed by GNMA and issued by mortgage
bankers, commercial banks, savings and loan associations and other institutions. Security holder is protected by full faith
and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term pass-
throughs is often used to describe Ginnie Maes.
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LIQUIDITY: A liquid asset is one that can be readily converted to cash through sale in an active secondary market. L
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MARKET VALUE: The price at which a security could presumably be purchased or sold.
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MARK TO MARKET: The process of restating the carrying value of an asset or liability to equal its current market value.
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MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between parties. The agreement
establishes each party's right in the transaction. Repurchase Agreements (REPO's) are a form of short-term borrowing
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for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight
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basis, and then buys them back the following day. For the party selling the security (and agreeing to repurchase it in the
future), it is a repo; for the party on the other end of the transaction (buying the security and agreeing to sell in the
future), it is a reverse repurchase agreement. A master agreement will often specify, among other things, the right to
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liquidate the underlying securities in the event of default.
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MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
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OFFER OF OFFERED PRICE: The trading price proposed by the prospective seller of securities (also called the asked or M
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New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the >
economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the a0
opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy r_
tool. E
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PORTFOLIO: Collection of financial assets belonging to a single owner.
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PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions
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and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Q
Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks, and a few
unrelated firms.
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PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee,
may invest money only in a list of securities selected by the state - the so-called legal list. In other states the trustee may
invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a
reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales
or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the
commission eligible collateral having a value of not less than its maximum liability and which has been approved by the
Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be
the amortized yield to maturity on a bond or the current income return.
REINVESTMENT RISK: The risk that all or part of the principal may be received when interest rates are lower than when
the security was originally purchased, so that the principal must be reinvested at a lower rate than the rate originally
received by the investor.
REPURCHASE AGREEMENT (RP OR REPO): See Master Repurchase Agreement.
SAFEKEEPING: A service rendered by banks whereby securities and valuables of all types and descriptions are held by
the bank.
SEC RULE 15C3-1: See uniform net capital rule.
SECONDARY MARKET: Markets for the purchase and sale of any previously issued financial instrument.
SECURITIES & EXCHANGE COMMISSION (SEC): The federal agency with responsibility for regulating financial exchanges
for cash instruments.
SPREAD OVER TREASURIES: The difference between the bond equivalent yield for any investment and the bond
equivalent yield for a Treasury investment with the same maturity.
TREASURY BILLS (T-BILLS): Short-term obligations issued by the U.S. Treasury for maturities of one year or less. They do
not pay interest but are issued on a discount basis instead.
TREASURY BONDS (T-BONDS): Long-term obligations issued by the U.S. Treasury with initial maturities of more than ten
years.
TREASURY NOTES (T-NOTES): Medium -term obligations issued by the U.S. Treasury with initial maturities of from one to
ten years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as non-
member broker dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called
net capital rule and net capital ratio. Indebtedness covers all money owed to a firm including margin loans and
commitments to purchase securities, one reason new public issues are spread among members of underwriting
syndicate. Liquid capital includes cash and assets easily converted to cash.
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YIELD: Loosely refers to the annual return on an investment expressed as a percentage on an annual basis. For interest -
bearing securities, the yield is a function of the rate, the purchase price, the income that can be earned from the
reinvestment of income received prior to maturity, call or sale. Different formulas or methods are used to calculate
yields.
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2.0
Information Item : Update Regarding Residential Solid Waste and
Recycling Services
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action pp
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,ll
Staff recommends discussion.
Staff is seeking the Board's comments as it relates to the proposed 5-year extension to our Solid Waste
and Recycling Services contract with Waste Management. Additional information can be found in the
attached memorandum.
ATTACHMENTS:
• BOT Memo (DOCX)
Trustee Liaison
Ottenheimer
Monday, February 4, 2019
Staff Contact
Chris Stilling, Community Development
Updated: 1/31/2019 11:51 AM
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V1111diNGE OF
BUFFALO GROVE
MEMORANDUM
DATE: January 31, 2019
TO: President Beverly Sussman and Trustees
FROM: Christopher Stilling, Director of Community Development
SUBJECT: Solid Waste Contract
Policy Question
Should the Village Board extend the existing solid waste contract with Waste Management (WM) for 5-
years and include the "At Your Door Service" (AYD) as part of our solid waste service? Furthermore, does
the Village Board wish to offer households curbside collection for textile recycling (see details below)?
Staff recommends entering into a 5-year contract extension with WM with the AYD service (pricing
Option II). Staff has found that many communities are initiating their contract extension options with
their current hauler given the volatility in the market and rising inflation. Staff believes the 5-year
extension with WM is the best solution for the Village for the following reasons:
1. The proposed rate structure provides the Village with pricing predictability over the next 5-years
while still maintaining continuity of service for our residents.
2. Staff recommends that the Village proceed with Option II which includes the AYD service. While
the AYD program costs each household an additional $1.40/month, the Village would receive a
2.3% reduction in the cost for curbside service when compared to Option I. Therefore the net
cost of AYD would be $1.05/month.
3. The 5-year average rate with AYD (Option II) is consistent with the 5-year average rate of the
comparable communities.
4. Staff worked closely with the Executive Director of the Solid Waste Agency of Northern Cook
County (SWANCC) and found that WM's rate proposal is very favorable. Furthermore, the
Village would likely not have seen any significant savings by going out to RFP. It should be noted
that the Village typically considers going out to RFP when we can expect a minimum 10% savings
to warrant service disruption and transition costs.
In 2012, the Village entered into a new solid waste contract with Waste Management (WM), who has
been the Village's waste hauler for over 20-years. This current contract has a term of seven (7) years and
is set to expire on May 1, 2019, with the option for a 5-year extension. Staff has received pricing Options
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from WM, which are discussed below, and is currently in the process of finalizing a draft contract
extension which will be considered at the February 19, 2019 Village Board meeting.
Current Rates and Services
When the Village entered into the 2012 contract with WM, one of the key goals was to have an "all-
inclusive rate program" that includes refuse, landscape (no stickers) and recycling. Furthermore, the
Village wanted predictability in the rate over time since most solid waste contracts have rates that are
annually adjusted based on inflation. As a result, the 2012 contract included a flat rate for years 1-5 and
a one-time rate increase of 5% that took effect in May 2017 through April 30, 2019. Rates are based on 2
categories of housing types:
• Single-Family/Curbside Service (76% of Households use this service) - This includes all
households with traditional curbside service including one -family, two-family, townhomes and
some multi -family.
• Multi-Family/Central Container - This includes condominium and apartment style homes with a
central container.
Table 1- Current Rates
Single Family Unit/Curbside Service Current Price based on Household (HH)/Month*
Unlimited solid waste, recycling and landscape collection $ 15.55
with cart
Unlimited solid waste, recycling with cart and landscape $ 14.50
collection without cart (most popular)
Multi -Family Unit/Central Container
Unlimited solid waste collection and recycling in a central $ 9.86
container
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
*The rates do not include the Solid Waste Agency of Northern Cook County (SWANCC) fee which is a flat fee that is added on WM's rate. The
SWANCC fee for Single Family is $5.65/HH and $4.55/HH for Multi Family. These rates have not changed since 2013.
Comparable Communities
With the assistance of SWANCC, staff has been able to obtain the current rates from other comparable
communities. These comparable communities represent municipalities that have an "all-inclusive rate
program" that includes refuse, landscape (no stickers) and recycling. The rates shown below are based
on single family households with curbside pick-up. The rates reflect the most current information
however; most of these contracts are tied to inflation. None of these communities offer the AYD service.
Table 2- Comparable Community Rates
Municipality
Hauler
2019 Cost/HH/Month*
Contract Date
...Barrington ................................................Groot
$19.322015
Lincolnwood
Groot
$
15.43
2017
Mount Prospect**
Republic
$
12.01
2017
Palatine
Groot
$
17.44
2016
Park Ridge
Groot
$
14.40
2016
Prospect Heights
Republic
$
15.15
2014
Wheeling
WM
$
16.19
2017
Wilmette
Veolia
$
19.71
2016
Average
$
16.21
Buffalo Grove
WM
$
14.50
2012
* The rates do not include the SWANCC fee
** Mount Prospect utilizes a commercial franchise to subsidize the residential rate
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2.C.a
Last summer, staff began discussions with WM about a contract extension and received several cost
proposals. Currently, staff was able to negotiate two rate options from WM.
Option I
This is a 5-year extension with a rate increase in Year 1 and one additional rate increase in Year 3. Rates
would not change in Year 2, Year 4 or Year 5. The following is a summary of the proposed rates in
comparison to our current contract. The percentage represents the rate increase from the prior year's
rate.
Table 3- Option 1 Rate Proposal
Single Family Unit/Curbside Service
Current Price
Proposed Cost for years
Proposed Cost for
years 3, 4 & 5
(HH/Month)*
1 & 2 (HH/Month)*
(HH/Month)*
Unlimited solid waste, recycling landscape
$.15.55
$.16.60 6.8% ...............................
17.60o/
collection with cart
Unlimited solid waste, recycling with cart and
$ 14.50
$ 15.50 t6.9%
$ 16.50 t6.4%
landscape collection without cart (most popular)
Multi -Family Unit/Central Container
Unlimited solid waste collection and recycling in a
$ 9.86
$ 10.60 7.5%
$ 11.30 t6.6%
central container
.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
* The rates do not include the SWANCC fee
Option II
This option also includes a 5-year extension with a single rate increase in Year 1 and another single rate
increase in Year 3. Rates would not change in Year 2, Year 4 or Year 5. However, the rate includes a new
program called "At Your Door Service" (AYD), which is further explained below. The percentage
represents the rate increase from the prior year's rate.
Table 4- Option 1l Rate Proposal
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Single Family Unit/Curbside Service
Current Price
Proposed Cost for
Proposed Cost for years
(HH/Month)*
years 1 & 2
3-5
(HH/Month)*
(HH/Month)*
Unlimited solid waste, recycling -and landscape
$ 15.55
...
$ 16.25
$ 17.25
collection with cart
4.5%
6.2%
At Your Door Service (AYD)
N/A
$ 1.40
$ 1.40
Total
$ 15.55
$ 17.65
$ 18.65
Unlimited solid waste, recycling with cart and
$ 14.50
$ 15.15
$ 16.15
landscape collection without cart (most popular)
4.5%
6.6%
At Your Door Service
N/A
$ 1.40
$ 1.40
Total
$ 14.50
$ 16.55
$ 17.55
Multi -Family Unit/Central Container
Unlimited solid waste collection and recycling in a
$ 9.86
$ 10.30
$ 10.95
It
central container
4.5%
6.6%
At Your Door Service
N/A
$ 1.40
$ 1.40
Total
$ 9.86
$ 11.70
$ 12.35
.....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
* The rates do not include the SWANCC fee
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At Your Door Service
The At Your Door Service (AYD) is an additional
monthly service allowing residents the ability to
dispose of many of the difficult, sometimes
hazardous and hard to recycle materials that many
households accumulate (electronics, TVs, paint
chemicals, etc.). For references purposes, the typical
cost to recycle a TV through Best Buy's Electronic
Recycling Program is $25/item brought to the store.
If someone wants the item picked up by Best Buy, it
can cost $99.99. The AYD program would cost each
household $16.80/year.
With AM residents can easily and responsibly dispose of all
their items witinout having to leave their home. wM's
technicians visit the residents' home and collect a wide
range of recyclable items, including:
An.utornotiive 1piroducts
IHousehold cleaners and garden dheirniicalls
Sllnarlps and syringes
The AYD program allows residents to contact WM
directly and schedule a convenient time for pick-up. Ililllectroniics and TVs
By providing the AYD program, residents no longer ._ li�aiin-t (products
need to come to the Village Hall and drop off their
fluorescent light bulbs or sharps/syringes. - Iiwteriies and fluorescent llight lbulllbs
Furthermore, the AYD program can allow residents
to resume recycling their batteries since the Village
had to eliminate the program in 2018 due to vendor issues.
In order for the Village to receive AYD service, all households would be required to pay the AYD fee
shown above with a 3-year commitment. The cost for the AYD service would remain constant at
$1.40/HH. Following the completion of year 3 and after a review of the participation rate, the Village will
have the option to opt out of the AYD program. Should the Village opt out of the AYD program after Year
3; rates would increase to the Year 3 through Year 5 rates outlined in Option I, without AYD service.
Other Services
The solid waste contract also covers costs for several other services. The following is a summary of the
current cost of these services as they relate to the contract extension:
Table 5- Rate Proposal of Other Services
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Service
Additional weekly pick-up
White Good Collection
Bulk Item
Emergency Collection
Additional Cart
Cart Change Out Fee
Senior Discount (65 and older)
Current Price
$4.46/H H/Month
$40.00/Item
1 item free plus
$15.00/item after
$50.40/ton plus
$131/hour
$2.00/HH/Month
$25.00/instance, except
for the free 1-time
annual change out
10%
Proposed Cost for years 1 & 2 Proposed Cost for years 3-5
$4.75/H H/Month
$40.00/Item
1 item free plus $25.00/each
additional
$58/ton plus $145/hour
$2.50/H H/Month
$35.00/instance, except for
the free 1-time annual change
out
10%
$5.04/H H/Month
$40.00/Item
1 item free plus $25.00/ each
additional
$58/ton plus $145/hour
$2.50/HH/Month
$35.00/instance, except for
the free 1-time annual change
out
10%
Leaf Assistance $9.45/cubic yard plus $10.86/cubic yard plus $11.51/cubic yard plus
$131/hour $145/hour $145/hour
..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
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As part of staff's analysis, we compared the proposed rate structures for both options in relation to the
future rates of the SWANCC communities. The table below shows WM's proposed 5-Year rate structure
for Buffalo Grove (Option I & Option II) against the average rate from the comparable communities,
factoring inflation.
Comparison to Other Communities Based on the Most Common Service
$18.00
$17.89
$17.55 $17.55 +*°'
$17.50 uuuum�.........................................................................................................................................................................$17.55
$17.4fi
$17.00
$17.03
$16.5S $16.fi2
$16.50 m.................................................................................................................. 1111111111111111������W. I
0 $16.55 $16.50 $16.50 $16.50
$16.00 $16.21
$15.50 NA
$15.50 $15.50
$15.00
$14.50
$14.00
2019
2020
2021
2022
—MHBG Rates for Option I ffl-,BG Rate Option II (AYD Service) —Ng-Avg CC Rate (with 2.5%CPI adjustment)
•I
2023
Staff is also seeking feedback from the Village Board as it relates to curbside collection for textiles (old
clothing, shoes and accessories). Some communities, including Mount Prospect, have recently initiated
this program through a company called Simple Recycling. The program is unrelated to WM and operates
independently. The cost is free to the Village and our residents, provided that the Village enters into an
agreement with them. The program works by providing each household with bright colored bags that
can be filled with their old textiles. Once a bag is full, households can place the bag at the curb on their
normal trash collection day. Simple Recycling will pick up the bags with their own trucks, which will
follow the same schedule as WM. Furthermore, WM's drivers would know not to pick up these bags.
Staff is seeking the Board's thoughts on this added program. Should the Trustees be interested in this
program, staff would like to provide this service when we initiate the new contract with WM on May 1,
2019 to allow sufficient time for advertising. The program would require Village Board action sometime
in March or April.
Staff recommends entering into a 5-year contract extension with WM with the AYD service (pricing
Option II). As shown, the proposed rate structure provides the Village with pricing predictability over the
next 5-years while still maintaining continuity of service for our residents. Furthermore, with the
addition of AYD, the Village is able to offer a much higher level of service than any other comparable
community, while still keeping our rates within the market average.
The final contract will be presented to the Village Board for final consideration on February 19, 2019.
This will allow the Village over 2 months to publicize the new rates before the May 1, 2019 effective
date.
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2.D
Information Item : Discussion Regarding the Upcoming
Comprehensive Plan Project and Community Engagement
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action pp
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,ll
Staff recommends discussion.
Staff recommends proceeding with the comprehensive plan project on the original schedule while
continuing to develop the community engagement program. Under the recommended scenario,
community engagement activities associated with the comprehensive plan would be included in the
request for proposals as an alternate option within specific parameters as outlined in this memorandum.
ATTACHMENTS:
• 01-16-19 Comprehensive Plan - Community Engagement (DOCX)
• Prior Board Memo Regarding Comp Plan Schedule (DOCX)
Trustee Liaison
Ottenheimer
Monday, February 4, 2019
Staff Contact
Chris Stilling, Community Development
Updated: 1/30/2019 4:11 PM
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rI 1, 1,. t;' ,: F
MEMORANDUM
DATE: January 31, 2019
TO: Village President Beverly Sussman and Trustees
FROM: Dane Bragg, Village Manager,,
SUBJECT: Comprehensive Plan and Community Engagement
Is
Policy Question
Should the Village of Buffalo Grove delay the Comprehensive Plan project by 90-120
days to further consider the structure of the community engagement program?
Staff Recommendation
Staff recommends proceeding with the comprehensive plan project on the original
schedule while continuing to develop the community engagement program. Under
the recommended scenario, community engagement activities associated with the
comprehensive plan would be included in the request for proposals as an alternate
option within specific parameters as outlined in this memorandum.
Background.
During the January 7 Committee of the Whole meeting, it was the consensus of the
Village Board to consider delaying the comprehensive plan project by 90-120 days to
allow fuller exploration of the community engagement program including, but not
limited to, the selection of engagement software to be utilized in the planning
process, having a subject -matter expert from another community present to the
Village Board, revisit the work plan, examine the amount of staff time needed to
manage/administer an online engagement platform and to research the total cost to
own and operate software over five years.
The comprehensive plan project involves a high level of community engagement
activities including open houses, focus groups, community -organization meetings,
online forums and resident feedback loops. For this reason, staff requested that the
Village Board consider its community engagement strategy as part of the
comprehensive plan project.
Community engagement is, however, many more activities, priorities and functions
than a single project such as the comprehensive plan. In discussing the program
with the Village Board, it has become evident that everyone has unique definitions of
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2.D.a
community engagement and there is a need to build consensus around the priorities
for the program in order for it to succeed.
oinpri iPlay
Staff analyzed a number of factors pertaining to the comprehensive plan project and
its possible deferment. Staff's recommendation is based upon the following
observations:
1. The plan has been deferred on two previous occasions to allow for the Lake
Cook Road Corridor Plan and Market Study and the Prairie View Metra Station
Area Plans to proceed;
2. The existing land use map is considered to be very outdated, rendering land
use decisions and development approvals more cumbersome and time-
consuming for the petitioner, the Planning & Zoning Commission, staff and the
Village Board;
3. Two important sub -area plans that need to be completed as part of the
comprehensive plan project include the Milwaukee Avenue Corridor and
Dundee Road Corridor plans; and
4. Deferring the startup of the plan will move the public -facing component of the
project kick-off into the 2019 holiday season, effectively pushing the planning
process back to 2020.
It is generally known that the community lacks consensus on the type, density and
scale of future development/redevelopment. Given this matter of public concern and
the aforementioned timing issues, staff believes the community is better served by
beginning the comprehensive plan process sooner rather than later.
Coinnninity Engagement
The community engagement program has been moved to a higher priority project in
the past year. Staff began working on this initiative in 2016 to prepare the Village
Board for discussion as part of its Strategic Plan process. Staff reviewed the
program status to date, lingering questions and the general lack of direction for the
program and developed the following observations:
1. There are no internal or external factors forcing a deadline within which time
the Village Board must make a choice on the program structure;
2. More definition needs to be given to the program elements;
3. Those elements should then be prioritized by the Village Board such that a
realistic program budget and work plan can be created; and
4. An external resource (professional from another community) may be very
valuable for the Village Board's deliberation of the program structure, however,
bringing this person's expertise to the discussion before the program elements
are defined by the Village Board is counterproductive.
Plan. & Pr i- ern Execubon
Based on the aforementioned items, staff developed the following action plans for
each program area.
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m mo
A A A
Advantages/Disa.dvantages of the Recommended Approarh
While no solution is perfect, staff identified the following advantages/disadvantages
to this approach:
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2.D.a
1. Advantages
a.
Comprehensive plan project stays on track;
b.
Opportunity to evaluate engagement software platforms and have
vendors demonstrate capabilities (as part of comprehensive plan RFP);
c.
No artificial deadlines are set for the community engagement program,
D
allowing the Village Board to make an informed decision;
a
d.
Defers the expenditure of funds for the community engagement
program;
a
e.
Improved chance of success for the community engagement program
as it would be better defined, adopted and implemented across the
organization.
2. Disadvantages
a.
Loss of control — outside facilitator may take liberties with the direction
0
of the dialogue for the comprehensive plan;
b.
Loss of momentum — the community engagement program is
T
essentially shelved for one year;
0
c.
Increases cost for the comprehensive plan;
d.
Selection risk — the Village may select a community engagement
platform that serves the comprehensive plan project well but does not
integrate into other topics/initiatives;
e.
Return on investment — the Village Board may end up in the same
quandary after a significant investment of time and effort.
Next Steps
Staff would like to revisit this topic at the February 4 Committee of the Whole meeting
to see if there is consensus on the recommended approach or if another approach is
warranted.
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2.D.b
'IL...AGE OF
BUFFALO GRON/f
MEMORANDUM
DATE: January 31, 2019
TO: President Beverly Sussman and Trustees
FROM: Nicole Woods, Principal Planner
SUBJECT: Future Comprehensive Plan Project
BACKGROUND
Last fall, staff introduced the Village Board to the process for updating the Village's current
Comprehensive Plan (2009). This project fulfills recommendations outlined in the 2016 Economic
Development Strategic Plan and the 2018-2023 Village Wide Strategic Plan. As staff is in the
process of preparing the Request for Proposals (RFP), we wanted to provide the Village Board
with a summary of the project's objectives, scope and timeline.
PROPOSED PROJECT OBJECTIVES
The project's objectives are described below and are intended to help communicate our
expectations for the project and its process.
Objective 1: Establish 'Buffalo Grove 2040"
The project's first goal is to help Buffalo Grove establish a long-term vision for the community.
What should Buffalo Grove look like in 2040? More specifically, what does the community's
housing, transportation network, commercial and office development, open space look like in 20
years? What will make the community unique and special?
Once that vision is established, the comprehensive plan should provide a roadmap which details
how that vision can be achieved. The roadmap should include recommendations and action
steps that are mainly within the Village's purview, but can also include strategies that require the
participation of local and regional partners.
Objective 2: Incorporate and Build off of Previous Plans
In establishing Buffalo Grove 2040 and developing a roadmap to achieve that vision, the
comprehensive plan should consult some of the Village's most recent plans and studies
including: the Lake Cook Corridor Market Study and Plan, the Economic Development Strategic
Plan, the Annexation Plan, and the forthcoming Prairie View Metro Station Area Plan. These
plans have provided direction for the future development of specific subareas as well as laid a
framework for community and economic development priorities and policies. Consequently, the
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2.D.b
new comprehensive plan should incorporate and build off these plans to ensure consistency
amongst all planning documents as well as increase efficiency in the development of the
comprehensive plan.
Objective 3: Robust Community Engagement and Public Communication
The third project objective is to include a high-level of community engagement activities. The
approach (in-house or outsourced) will be dependent on the Village Board's decision regarding
the Community Engagement Manager but the objectives will remain the same. These activities
will ensure a diverse array of residential, business, and other stakeholder voices are heard and
incorporated. The activities will be educational as well as interactive. They can include but are
not limited to the following public engagement strategies:
• Key stakeholder interviews
• Interactive websites
• Community visioning forums utilizing visual preference surveys/key pad polling
• Design charrettes
• Public meetings
• Attendance at community group meetings
• Open Houses
A related objective will be general communication about the process with the public. The project
will have a communication strategy and plan to help increase clarity, confidence, and
participation in the process by all members of the community who wish to be involved.
Objective 4: Feasibility and Sustainably
Fourth, the project should formulate a vision and strategies that are feasible and obtainable.
Buffalo Grove will rely on the expertise of the consultant team to ensure that concepts, ideas,
and strategies are achievable and realistic. In addition, the vision and strategies must be
economically, environmentally, and socially sustainable for the community. Consequently, the
consultant team should have experience and a working knowledge of the dynamics affecting
land use, development, real estate, economic development, transportation, natural resources,
housing, and urban design.
Objective 5: Include in-depth plans for the Dundee Road Corridor and Milwaukee Avenue
Corridor.
Comprehensive plans generally focus on the big picture ideas and plans. However, the upcoming
comprehensive plan presents a great opportunity to dive deeper into Dundee Road and
Milwaukee Avenue Corridors. This effort would implement actions steps from the Economic
Development Strategic Plan as well as provides these areas with a more through examination
and guidance, which is warranted and timely. In this regard, the comprehensive plan should
provide special sections that provide more detailed analysis and plans for the Dundee Road and
Milwaukee Avenue Corridors.
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2.D.b
Objective 6: Education and Exploration
The sixth and final objective is that the project should be an educational and exploratory
process. This project should challenge our community to look beyond our typical notions of land
use, development, natural resources, transportation, housing, and open space. The consultant
team should guide the Village in thinking outside the box, educate us on innovative solutions,
and help us explore new concepts and strategies to enhance our community for future
generations.
COMPREHENSIVE PLAN PROCESS AND SCOPE
The process to develop a comprehensive plan update for the Village would take approximately
18-24 months. The process could be distilled into three main stages:
1. Establishing existing conditions;
2. Outlining a vision and establishing priorities; and
3. Drafting a plan that lays out policies, plans, and recommendations to
achieve this vision.
The Comprehensive Plan will cover several elements that may stand-alone, be combined, or
become incorporated under concepts or themes that run throughout the plan. Staff
recommends that the new Comprehensive Plan contain the elements shown below.
Elements
• Land Use — existing and future land use, buildings, development, and
zoning.
• Natural Resources — parks, open space, environmental sustainability
and sensitivities, and infrastructure.
• Transportation and Circulation — roads, public transportation (rail
and bus), bicycle, and pedestrian connectivity, as well as trucks and
rail.
• Housing and Neighborhoods — housing trends, preservation, and
diversity.
• Urban Design and Community Character — architecture, community
identity, place -making, and wayfinding.
• Economic Development— commercial development, workforce, fiscal
health and impacts.
a Subarea Plans — detailed plans regarding land use, circulation,
development alternatives, and plans for Dundee Road Corridor, and
Milwaukee Avenue Corridor.
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2.D.b
• Plan Implementation — a matrix detailing when and how goals under
the various elements will be achieve.
CONSUTLANT TEAM
Request for Proposals Process
The Village will be seeking a qualified and dynamic consultant team to guide the Buffalo Grove in
developing a Comprehensive Plan. With approval from the Village Board, staff will post a
nationwide request for proposals (RFP) for a consultant team. As with the Lake Cook Corridor
Market Study and Plan, staff will reach out to national and international planning, design,
engineering, and architecture associations and media outlets to advertise the RFP. The following
is the draft RFP Schedule:
A Comprehensive Plan Consultant Evaluation Committee will be established to review, interview,
and ultimately select a consultant team. The Committee will be made up of representatives from
staff, 2 Trustees, and a member of the Planning and Zoning Commission (PZC). Staff will work
with President Sussman on the selection of the Trustees and PZC member.
NEXT CTFPC
Village staff is seeking feedback from the Board regarding the project's scope, timeframe, and
RFP process.
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4.A
Information Item : Executive Session - Section 2(C)(1) of the Illinois
Open Meetings Act: the Appointment, Employment, Compensation,
Discipline, Performance, or Dismissal of Specific Employees of the
Public Body or Legal Counsel for the Public Body, Including
Hearing Testimony on a Complaint Lodged Against an Employee of
the Public Body or Against Legal Counsel for the Public Body to
Determine Its Validity.
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Recommendation of Action pp
ll
Staff recommends going into executive session.
Executive Session - Section 2(C)(1) of the Illinois Open Meetings Act: The appointment, employment,
compensation, discipline, performance, or dismissal of specific employees of the public body or legal
counsel for the public body, including hearing testimony on a complaint lodged against an employee of
the public body or against legal counsel for the public body to determine its validity.
Trustee Liaison
Sussman
Monday, February 4, 2019
Staff Contact
Dane Bragg, Office of the Village Manager
Updated: 1/31/2019 11:52 AM
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