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HomeMy WebLinkAboutMINUTES-2010-04-12-2010U Ox SPECIAL CITY COUNCIL MEETING Monday, April 12, 2010 7:30 pm Council Chambers Lorraine H. Morton Civic Center 2100 Ridge Avenue Evanston, IL. Mayor Tisdahl called the Special meeting to order at 7:30 pm, read her letter explaining the reason for the call and informed the audience of the order of business for the night. After the reading she asked the City Clerk, Rodney Greene for a roll call. Roll Call: Alderman Jean -Baptiste Alderman Grover Alderman Wynne Alderman Rainey Alderman Wilson Alderman Burrus Alderman Holmes Alderman Fiske Alderman Tendam Presiding: Mayor Elizabeth B. Tisdahl Public Comment: Lynne Greene, 2016 Brown Ave, spoke on the new fees the Sanitation and Water Department were adding to the water bill of the Evanston residents. Mrs. Greene expressed the main concern of the neighbors on her block. She stated "if indeed the new fees were to be added to the resident's water bill, and if they fell behind in paying these fees would their water be turned off?" She went on to state "the people who are elderly can not afford any extra fees on their fixed income, while trying to stay in the homes they have lived in for more than 80 plus years". She asked that the Council reconsider these new fees, and to figure out a way to help these people who are in need. Ms Greene then expressed her concern for the recycling charges as well, and the $1.75 for a sticker to be placed on the yard bags. Alderman Rainey asked Ms. Greene to come back to the podium to explain to her "there were no charges at any time for recycling, and the fee for the 95 gallon garbage cans would only be increased by an extra five dollars if the resident wished to have one. SP Council Meeting 04/12/10 If not the resident could call Ms. Suzette Robinson and request a new 65 gallon can, and continue paying $6.95 for the usage". She also stated the biggest problem was the $1.75 stickers were not sticking to the bags. Alderman Rainey proposed some type of discount program for the elderly/disabled residents to assist them. Alderman Burrus stated the Council need to better educate the public and said that "Ms. Greene was giving misinformation over the air concerning the recycling being on the water bill, because it was not on the water bill and it was never on the bill" Alderman Rainey stated "no one was being charged for the new bens and whatever was on the water bill last year will remain if you reduce to the 65 gallon can, but the new yard waste fees will be the only things added this year". Alderman Holmes stated there would be a 51h ward meeting Thursday, April 15, 2010, and Ms. Suzette Robinson would be in attendance to talk about this very issue. Alderman Rainey announced her 81h ward meeting on Tuesday, April 201h Ms. Robinson will be attending as well. Junad Rizki, 2761 Ridge Ave., spoke of his concerns of the Capital Planning. He stated in the past years there was talk about the water bill costs increasing 40%, and he wanted to know how much of this increase would be real capital cost and loss of revenue and excessive operative costs. He stated he found many discrepancies in the Water Department with no decrease in staff. He also stated his willingness to sit down with the Council members in his home, and offer some meaningful discussions on Capital Planning under the Open Meeting Act. Sari Kadison-Shapiro, 1432 Elmwood, spoke on the CIPP Sewer Relining process. She explained the unpleasant odor that has been coming into her house, injecting a chemical into the ground. They had not notified her and the neighbors when the operation would occur. This injection is one of the most carcinogenic agents that are very detrimental to the environment and residents. She named the Kenny Construction as the perpetrator. She also wanted directed the listener's attention to some websites to obtain more information. Mayor Tisdahl asked Mr. Stoneback if he had any answers to this isuue. Mr. Stoneback stated he did not have answers to all of the questions, but he had talked to Kenny and they would not be injecting at the pumping station. He also stated "that CIPP lining process has been used since 1986 with no one getting sick, even though it is a very pungent smell". "This project is not an Evanston venture, the project is one of the Chicago Metropolitan Water Reformation District", as stated by Mr. Stoneback. Harry Major, 2211 Crestview Lane, Wilmette stated he is a property owner. He stated over the past three or four years he has experienced water leaks that were not identified until after the water bill arrived. He stated the bill is multiplied by the sewer cost as well as the regular water cost. He asked the Council to look at these issues when they happen to prevent enormous water bills for the owners. In these situations to charge the owner just for the water charge and not the multiple, and he mentioned the coin operated laundries that are not big money makers any more. Alderman Rainey commented in response to Mr. Major's concern, by stating in her similar issues the Water Department have been on top of leakages like his and have responded quickly to notify the owners of water problems. 2 SP Council Meeting 04/ 12/10 The City Manager, Mr. Bobkiewicz stated there were two presentations to be presented tonight. The first would be the "Water and Sewer Fund" by Mr. Stoneback, Director of Utilities and Mr. Lyons, Assistant City Manager. Mr. Bobkiewicz stated the Council still have a long way to go as well as a concern for declining water sales, and the initiatives of how to deal with the declining revenue. These are just proposals for the Council to consider for the water sale to the users and alternate services. Mr. Stoneback gave a power point presentation of the progress for the past several years and the future sewer rate charges due to the decrease of water usage by the residents. The Questions and concerns were bought up by the Aldermen: 1) If it isn't the water rates why is water consumption decreasing when you have increases in population? Answer: Many of the newer machines use less water to operate, they are more efficient and the water conservation devices. 2) By going "Green" is really expensive? Answer: Yes, with the 14 million debt service we have acquired places us in a tight situation. 3) Can we look at the trend of how much the three major users of water have cut back as well? Answer: We can supply you with those statistics. At the end of this current budget year, there will be a $lmillion deficit in the sewer fund. Mr. Lyons spoke on the Sewer Fund Options. Option 1: $12M in bonds three annual increases of 6%, 7%, and 8% beginning on January 1, 2011. Alderman Rainey questioned using the water to determine the sewer rate, when most of the water used does not go into the sewer. Alderman Jean -Baptiste stated what was being said is still sounding a little arbitrary. Are there any alternative sources? Answer: Some municipalities place the charge on the property tax, which usually is a fixed fee. Alderman Grover asked if the assumptions were based on the stats projections. Answer: That's correct. Option 2: $1OM in bonds over three years with a $803,000 annually for 20 years. The Sewer Fund would not cover all of these costs, so they would be looking at a property tax levy that would not be abated. By the end of the year it would be approximately a 2% increase on the property tax levy. Option 3: $17M in bonds over four years with no sewer rate increase the debt service of $1,364,000 would be annually for 20 years. Alderman Wynne asked if the first Option added to the property tax. Answer: No. Option two what does it do? Answer: It adds a 2% increase over a three year period. What does Option 3 do? Answer: It adds 1%, 0.8%, 0.7% (for three and four). She also asked for a cost comparison. Alderman Rainey stated she liked the part of option 3, where the City bills the property tax payers to pay their fair share of the City debt, and then apply a reasonable amount to water & sewer for not -for -profits. She also stated the water bills are becoming so heavy SP Council Meeting 04/12/10 with a lot of additions, that it becomes burdensome for property owners who find it difficult to even pay their mortgages. Mr. Farrar, the City Attorney came forward to explain the legality of pursuing the institution of applying a reasonable charge on a non -for -profit entity for water is fully supported by the case law. Mr. Stoneback proceeded to present the Water scenarios after the Aldermen completed their inquiries. Mr. Stoneback stated the water costs are not driven by debt services, but by a proposed capital improvement program. The last rate adjustment was in 2006. The following are concerns that arose from the Aldermen: 1) Why is Skokie paying less than Evanston, is that true? Answer: No it is not true the water bill for a resident in Skokie is more than a resident in Evanston. 2) There have been misreading of the water meters, how is this possible with the equipment that the City now has in operation? Answer: Whenever water passes through the water meter reading device, it is registered in the plant. It could be from a leaky toilet, sink or a pipe. The equipment is working properly and water has to go through the meter to turn the dials. 2) Can you place numbers to what is presented in the slide? Answer: We do not have the numbers now, but will get them to you later. Mr. Lyons returned to present the proposed options for the water budget. Option Wl: $18.1 Million in bonds over four years with debt service. With increases 10%, 5%, 3%, 0% (for 4 and 5), beginning on January 1, 2011. Option W2: $17 million bonds over four years with debt service from property tax levy. There will be three annual rate increases of 10%, 5% and 3% beginning on January 1, 2011. Questions asked by Aldermen: 1) What is a wholesale customer? Answer: They are those communities that have companies who have direct contracts with the city and they all share the same cost. 2) Does being a wholesale customer to Evanston appear attractive to those whole sale customers in Chicago? Answer: Yes, it does. This is just an option. Wholesale Water Customers are the Northwest Water Commission and Village of Skokie. If we partner with the Village of Skokie or the Northwest Water Commission, and Evanston has the infrastructures to make it possible, the City could possibly sell to some of their customers. Mr. Bobkiewicz stated he, Mr. Lyons and Mr. Stoneback have talked to the various communities and their leaders with the possibility of partnering with one or both. The City Manager urged the Council to move forward with forming a partnership. Questions from the Aldermen: 1) What regulates the amount of water the City can draw out of Lake Michigan, and are there other regulatory issues that Evanston has to face? Answer: Each individual community has their own allocation. The regulation goes to the consumer and not the supplier of the water. 4 SP Council Meeting 04/12/10 2) Other than Chicago is there anyone else who has the potential to do this kind of expansion? Answer: The Village of Wilmette which is a much smaller facility, as well as Central Lake, but Evanston is in a better situation to supply. 3) Is there an existing international treaty that states how much water the City may take from Lake Michigan? Answer: There is an agreement that each community has as an allocation of water they may remove from the Lake. 4) Will the service that Evanston provides be to treat and transmit water to the community? Answer: Yes, that is correct. Mr. Bobkiewicz stated the City needed to outreach to other communities concerning the City's capability to become their water supplier. He also stated staff will come back later to discuss the progress that has been talked about tonight. He then stated his proposal to perform a review of the services of the various departments internally, starting with one per year. He proposed to begin with the department of Parks, Recreation and Community Services. He stated these programs under this department have been performing well. He named the six programs that will be reviewed first, and they are: Cultural Arts, Forestry, Program Marketing and Registration, Senior Services, Special Events and Youth Services. He recommended to move forward in the next few months and asked for the Council's direction on how involved the Council would be in the reviews with his twelve month plan. After comments from the Aldermen the final decision was to allow the City Manager to move forward with the inclusion of comments, and informing the Council members of the progress as well as to include outside expertise in the review process. Alderman Wilson motioned to convene into Executive session and the motion was seconded by Alderman Jean -Baptiste. The meeting ended at 9:58 pm. Respectfully submitted, Rodney Greene, City Clerk A CD OF THIS MEETING WILL BE AVAILABLE IN THE CITY CLERK'S OFFICE AFTER APRIL 29, 2010 1 1 1 1