Loading...
1976-01-12 - Village Board Regular Meeting - Minutes 4456 1/12/76 MINUTES OF THE REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, HELD MONDAY, JANUARY 12, 1976, AT THE MUNICIPAL BUILDING, 50 RAUPP BOULEVARD, BUFFALO GROVE, ILLINOIS. President Fabish called the meeting to order at approximately 8:05 P.M. Those present stood and pledged allegiance to the Flag. The Clerk called the roll and found the following: PRESENT: President Fabish; Trustees Mahoney, Rech, Bogart , Carroll , Marienthal Trustee Driscoll arrived at 8: 10 P.M. Also present were Richard Glueckert , Finance Director; James Shirley, Village Treasurer; and William Whited, Administrative Assistant. Daniel Larson, Village Manager, arrived at 8:35 P.M. ; Richard Raysa, Village Attorney, arrived at 9:25 P.M. ; and Arnold Seaberg, Village Engineer, arrived at 9:00 P.M. 1 . Minutes of January 5, 1976 Moved by Bogart, seconded by Rech to approve the minutes of the regular meeting held January 5, 1976, as published. The following additions were made: 1 . Page 4452 - second paragraph from bottom of page - add "Ordinances have been instituted in the past which were beyond State Statutes." 2. Page 4453 - under Resolution #76-1 - second paragraph changed to read, "Moved by Marienthal , seconded by Driscoll to approve Resolution #76-1 subject to approval of a signed contract with the engineering firm, revised by the Village Attorney, executed by Lake County and then by the Village and that the Resolution not be implemented beyond $34,000 without Board approval ." 3. Page 4454 - new paragraph at end of page - "Trustee Marienthal stated that the HUD Ordinance would have to be placed on the agenda before February 1 , 1976, so that it could be mailed in to the proper authorities." Upon roll call , the vote was: AYES: 5 - Mahoney, Rech, Bogart, Carroll , Marienthal NAYES: 0 - None ABSENT: 1 - Driscoll Motion declared carried with additions. 2. President 's Report Upon recommendation of the Industrial Commission , President Fabish appointed Irving Capitel to the Industrial Commission Trustee Driscoll arrived. Moved by Carroll , seconded by Rech to concur with the President 's appointment. Upon voice vote, the motion passed unanimously. 4457 1/12/76 Jaycee Week President Fabish proclaimed the week of January 18 through 24, 1976, as Jaycee Week. 3. Questions from the Audience There were no questions from the audience. 4. COMMITTEE OF THE WHOLE Water-Sewer Rate Trustee Rech introduced members of the Water-Sewer Rate Study Committee who were Trustee Bogart, Donna Force, Nicholas Rubino, Richard Glueckert, and James Shirley. Trustee Rech reviewed the Water Rate Study Report, dated December 2, 1975, which outlined the goals of the Committee, the background of the water-sewer system and rates, a survey of users and consumption, the bond requirements, operation and maintenance of the system, capital outlay, system expansion, rate formulation, and recommendations of the Committee. 4It was explained that impact of the rate change included the fact that the 5,000, 6,000, and 7,000 U gallon per month user and the over 50,000 gallon per month user would receive a slight to moderate increase with all other users receiving a slight to moderate decrease. Mr. Larson arrived during the presentation. Mr. Shirley stated that the rate considered this evening is a combined water- sewer rate. He said the Committee felt that the Village must continue to generate the same revenue as generated by the existing rate because it is needed. He said the recommendation is a change in how the money is collected. Frank Clayton, 911 Twisted Oak, noted that those users using 5,000, 6,000, and 7,000 gallons per month, which represents 400 of the homeowners , will receive an increase in their water bill . Mr. Shirley stated that the Committee is aware of this. He then calculated, on the blackboard, the individual steps of the current rate for comparison with the proposed rate to illustrate the reason for this. Mr. Shirley stated that the proposed rate includes the $6.00 base rate for the debt service plus $1 .00 per 1 ,000 gallons so that those using the water pay for it. Trustee Rech stated that after much debate on this subject, the Committee felt the rate should be the same for all users of the system. Because he felt the rate enacted in 1975 could have effected the amount of lawn sprinkling, Trustee Mahoney asked if it is reasonable to assume that substantially the same usage occurred during 1975 as in 1974 for single family homes. Mr. Shirley stated that the usage was almost the same. In response to a question from Mel Kandel , 250 Lake Boulevard, Trustee Rech stated that in Cambridge-on-the-Lake, 64 units fall within the 3,000 gallon per month catagory, 124 units within the 4,000 gallon catagory, and 124 units within the 5,000 gallon catagory. Mr. Raysa arrived at this time. David Fleischauer, 233 Downing, objected to the $6.00 base rate because he felt he would be subsidizing the system. Trustee Rech explained that it was necessary for all users of the system to share the cost of debt service. Mr. Shirley explained that the $6.00 base rate would allow the Village to meet the current bond issue requirements which is necessary even if no water is used. 4458 1/12/76 Sherwin Rosenfeld, 1040 Knollwood, suggested that the $6.00 rate for debt service be a property tax item against all improved property. He also suggested that the first 1 ,000 gallons of water be included in the $6.00 rate. He did not feel the commercial users were influenced by water rates because they can write it off as a business expense. Trustee Rech stated that retail establishments are not large users. Mr. Rubino stated that if the rate on the first 1 ,000 gallons were eliminated, it would cost the system $5,800 a month. Mr. Shirley stated that the debt service fee may not be charged through taxes because the Village passed a Revenue Bond issue which requires the debt be paid with revenue generated by the system. Mr. Raysa agreed with Mr. Shirley and stated that State Statutes do not permit a tax to be levied for this purpose. Mr. Rosenfeld asked if the Lake County sewer fee could be set up as a tax. Mr. Larson stated that Lake County does not have the statutory authority to do this. A citizen, who did not wish to be identified, stated that in December, 1974, she had a water main break in her rear yard, but that Village personnel advised her that it was not a water main break, that it was an artesian well . In September of 1975, it was discovered that it was a water main break. She felt that a great deal of water had been wasted. Mr. Rosenfeld felt that the amount of unaccounted water was high. Trustee Rech referred to Manual of Water Utility Operations which stated that unaccounted water should not exceed 20% to 25% and in a well managed system be about 5% to 10%. She noted that the Village does fall within those limits. In response to a question from Morris Rossman, 963 Knollwood, Mr. Larson stated that the $6.00 rate will be charged to the apartments on a per unit per month basis. President Fabish asked how many users can be put on the system before it has to be expanded. Mr. Seaberg stated that the professional study of the system, as recommended by the Committee, would determine that. He also recommended a study on new capital improvement fee. Trustee Mahoney asked if it is worth making the change in rate for the minimal impact it would have. He did not agree that a rate should be set that would have to be reviewed and changed every year. He said that the reason the current rate was set with a lower rate to over 30,000 gallon users was to give a break to the school districts and to not discourage future businesses from coming into the Village. He asked if the approach to the proposed rate were legal . Mr. Shirley stated that he contacted Bob Sharp of Chapman and Cutler and Peat, Marwick, and Mitchell , and neither felt it was illegal . He said that Benjamin and Lang, bond counsel , advised that provided paragraph B of page 16 of the Bond Ordinance is met , the rate structure can be set in any way. Mr. Raysa agreed. Mr. Shirley felt that the accounting system should be changed so that it is clear in each accounting month end report what is being done with reserve funds. 1 Mr. Shirley referred to a memo, dated January 8, 1976, from Mr. Larson , and stated that he is convinced that the proposed rate structure will generate the same revenue as the current rate. 4459 1/12/76 Mr. Larson stated that he did not feel a usage rate should pay for capital improvements. Mr. Shirley stated that the Committee would agree. Mr. Larson suggested that the Board consider issuance of revenue bonds to assist in financing major improvements to the system. Trustee Mahoney asked what the administrative cost would be to change the rate. He also was concerned about adjusting the rate every year. He wondered if the rate would discourage businesses. He suggested that a change in rate be delayed until there is a need to adjust the rate. President Fabish asked which rate structure would adjust better. It was the feeling of the Board that the proposed structure would be easier to adjust. President Fabish polled the Board, "yes" favored the Committee's recommendations and "no" opposed. The poll found the following: YES: 6 - Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal NO: 0 - None Trustee Bogart referred to a letter from John B. Black, Consulting Engineers, eL0014,17r1 which was attached to Mr. Larson 's memo and stated that,Trustee Bogart was not i pleased with the cost of Black's last report. Trustee Rech suggested that if a professional study is done, proposals from all top engineering firms be considered. She felt the proposals should be on a total package. The Committee was commended for their report. Payroll Reporting In response to a question from Trustee Mahoney, Mr. Glueckert stated that Robert F. White does not have the same flexibility in their system and would not be able to produce the reports that Automatic Data Processing could. Moved by Bogart , seconded by Rech to change payroll processing to Automatic Data Processing. Upon roll call , the vote was: AYES: 6 - Mahoney, Rech, Driscoll, Bogart, Carroll , Marienthal NAYES: 0 - None Motion declared carried. Mr. Glueckert recommended that the payroll account be transferred to the Buffalo Grove National Bank. Mr. Larson stated that a resolution would be prepared to provide for this change. Public Hearing Dates The following public hearing dates were set: February 16, 1976 - Poppin Fresh Pies annexation February 23, 1976 - Mill Creek Apartments Phase 2 March 2, 1976 - Marquardt Parcel 4460 1/12/76 5. Board Comments Carnival Ordinance Trustee Bogart stated that he had given Oak Lawn 's Carnival Ordinance to Mr. Raysa for his review. Civil Defense Trustee Carroll stated that a recent editorial in Paddock Publications commended Buffalo Grove's Civil Defense unit and the support that the Village gives it. 6. Adjournment Moved by Mahoney, seconded by Carroll to adjourn the meeting. Upon voice vote, the motion passed unanimously. Time: 10:55 P.M. Respectfully submitted, Verna L. Clayton, Village Clerk PASSED AND APPROVED this 9 day of , 1976. u, ri.(v Zt, (,: 7y;;,(14.71 Village President ../