Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus - present. Clerk Lee present.
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1 MINUTES OF THE SPECIAL MEETING OF THE BOARD OF TRUSTEES OF THE VILLAGE OF GRAYSLAKE HELD OCTOBER 21, 2017 The Special Meeting of the Board of Trustees of the Village of Grayslake was called to order in the Board Room of the Grayslake Village Hall at 8:30 a.m. Mayor Taylor presiding. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus - present. Clerk Lee present. Also present were various staff members. Mayor Taylor welcomed Board members to the special meeting to discuss the 2018 capital improvement program. Charlotte Renehan read a statement noting the importance of Grayslake s history, how the Historical Society s archives and collections are essential to preserving our history, the need for storage for these items and the Society s preference that the Village buy a building on Whitney Street. She thanked the Village for any help in this regard. Trustee Vogel made a motion to go into Executive Session pursuant to 5 ILCS 120/2(c)(5) and 5 ILCS 120/2(c)(11) and to include in the meeting Clerk Lee, Village Manager Ellis and Assist Village Manage Timony. Seconded by Trustee Jarvis. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all aye. Motion carried. Trustee Davies made a motion to reconvene the special Board meeting. Seconded by Trustee Vogel. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all aye. Motion carried. Mayor Taylor asked Village Manager Mike Ellis to present information on Village financial forecasts and capital projects. Mr. Ellis began by reviewing the meeting discussion topics and Mr. Ellis then reviewed different financial stability factors that are used to illustrate a healthy financial situation. He described the expectation of our customers that the Village remain sound financially with the ability to deliver, at least, the services we now provide. He provided information on the overall set-up of the Village s different operating and capital funds noting that the Village s General Fund includes the General Operating Fund which supports certain operations that do not typically generate sufficient dollars on their own to support their costs. These include things like police, management services, recreational facilities like the senior, aquatic and heritage centers, and building/code enforcement. These operations are paid for with general revenues. After paying for operations the remaining General Fund dollars support the Resurfacing Fund, General Capital Project Fund and the Economic Development Capital Fund which are the three General Fund capital funds. He specifically reviewed the fragile nature of the General Fund (General Operating Fund/Resurfacing Fund/General Capital Project Fund/Economic Development Capital Fund) due to certain factors including a lack of control of major revenue sources, narrow sales tax base, few new revenue options, a reluctance to add new revenue sources, property tax caps, and the fact that most General Fund operating expenses ( police/snow plowing/aquatic center) are impacted by outside factors. For this reason the Village has developed certain fiscal defenses. He stated that
2 these defensive methods were key to the Village s ability to get through the economic downturns while maintaining services and the planned capital program. One main fiscal defense has been maintaining a lower dependency on economically sensitive and unpredictable revenues for operations. Since maintaining this defense means that some of these revenues are not used for operations they become available for infrastructure/capital purposes. If the Village grows weaker financially due to higher dependency on the revenues for operations, the natural result is less infrastructure dollars. Historically the Village has been a low expense operation including recent large cuts in non-police full-time staffing. This is in response to declining annual General Fund economically sensitive revenues from their peak years (-$ 1,903,633/year). The cost cutting has been possible by implementation of various atypical operating approaches and, as a result, the Village spends significantly less on operations than comparable sized communities. He reviewed a 2014 operating cost comparison of similar area towns. He noted that the water/sewer infrastructure payback to the General Fund has helped as well. He discussed major fall updates to the Multi-Year Financial Forecasts which continue to reflect a very slow weakening of the financial position over the next ten years. This is reflected in a gradually rising dependency on economically sensitive and unpredictable revenues for General Operating Fund costs and decreasing availability of dollars for infrastructure or capital projects to the point where there is little capital funding. He presented a chart depicting the projected dependency percentages for the General Operating Fund and combined dependency for operations and resurfacing. The Board reviewed projections for the General Capital Project Fund showing a gradual decline in available project dollars. Mr. Ellis reviewed FY 17/18 projects that have not been started, projects previously selected by the Board for FY 18/19 and routine annual capital expenses. He noted that the current projections included these cost items. The Board reviewed the ten year cash flow projection for this fund and it was noted that no new multi-year projects are included in later years. The Board reviewed projections for the Economic Development Capital Fund noting that the projections only include regular normal expenses. Actual costs are determined during the annual budget process. Mayor Taylor asked the Board to consider EDC recommendations on two incentive arrangements and the Grayslake Business Partnership (GBP) contract extension. He expressed support for the Lake County Fair Association incentive request. Board members discussed this request and the consensus was to provide the incentive. The Board then discussed the Light the Lamp restaurant project request and the EDC recommendation for a lower incentive amount of $150,000 reflecting building improvement costs. Trustee Nicodemus questioned the incentive figure and asked for clarification on how the EDC reached this amount. Assistant Village Manager Timony briefly reviewed the building cost numbers and added that the incentive is intended to cover the previous exterior improvements as well as the Light the Lamp request. Trustee Vogel noted that it is assumed that the property owner will not be seeking reimbursement for the exterior work. Several Trustees commented on past incentive arrangements noting that this amount is generally in line with past arrangements and that a higher amount for this project could be supported due to the value of redevelopment of an old and longtime vacant downtown building.
3 Board members discussed the EDC recommended Grayslake Business Partnership (GBP) services contract extension. Mayor Taylor, Trustee Vogel and Trustee Shores reviewed the GBP past services, the new operating arrangements recently started and monthly reporting to the Board. Mayor Taylor specifically reviewed the evaluation items which include achieving of actual outcomes beyond just providing recruitment services. It was noted that these outcomes would be used to evaluate whether the contract has value beyond the EDC recommended two years. Quarterly reporting will be provided on the metrics. Trustee Vogel made a motion to approve a $25,000 incentive for the Lake County Fair Association, 150,000 incentive for the Light the Lamp project and authorize execution of a new GBP contract ending October 31, Seconded by Trustee Waldenstrom. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all aye. Motion carried. Mr. Ellis reviewed the status of the Water and Sewer Capital Fund noting that revenues are limited due to limited development activity and limited projected costs including the water meter MXU replacement initiative and miscellaneous project expenses. Mr. Ellis discussed his suggested transfer of excess funds in the General Operating Fund balance to the Police Pension Fund and storm reserve. Mr. Ellis answered questions from the Board about the status of these funds and the recommended transfer. The Board consensus was to draft the needed resolution for final consideration of the Board at a future Board meeting and include the recommended transfers. Mayor Taylor directed the Board to information on planning initiatives previously discussed by the Board for the north downtown area and the Gelatin property. He reviewed a resident meeting regarding the Gelatin property and stated his view that the Village s planning consultant had captured the conceptual intent of the directions he received. Trustee Davies provided background on the idea of winter family friendly activity features and how possible events on the site could eventually act as attractions for the downtown. Board members discussed the road configuration to reduce the possibility of cut-through trips and the road location with members supporting a location nearer to the tracks with curves to slow traffic. It was noted that with this change the layout of other improvements would need to be modified. Board members discussed various activity items. Trustee Nicodemus expressed her opposition to a skating facility as not practical, the tower due to liability concerns and the costly preservation of the existing factory smokestack. Trustee Davies noted that amenities could support downtown and would be reasonable considering the substantial passive acreage to the north. She expressed support for the rink and included activity items, particularly the exercise hill. Trustee Shores stated his support for the concepts and the skating facility including the possibility of a skating path idea. Several Board members expressed a desire for more parking and the possibility of vertical parking along the Central Park road. Trustee Vogel requested that a tree line be added along the railroad tracks. Mayor Taylor said virtually every person he talks to wants to preserve the smoke stack. The Trustees discussed the costs and whether support would be as high if costs are mentioned. The Mayor reiterated that people support its preservation even at a cost. The Board reviewed the draft plan as it relates to the path/trees surrounding the stack and several stated their support for this concept.
4 After the Board discussion Mr. Ellis suggested that the plan be revised with new road and parking layouts and that the various amenities be realigned with the new layout and taking into account various Board comments. The costs/issues for each amenity will be developed for individual consideration at a later time. Mayor Taylor then asked the Board to comment of the draft North Downtown Plan noting that this is a vision document and not intended to be inflexible. He stated his support for the primarily small single family nature of the concepts, suggested elimination of the shown building on the Slusser Street parking lot and questioned the location of the greenspace at Hawley Street/Slusser Street. Trustee Davies noted the market challenges for this plan but expressed support for it as a preference. She reiterated her support for greenspace in this area and Trustee Shores noted new greenspace would help address the concern about expanded paved areas. Board members discussed possible capital projects in the plan including alley improvements, streetscaping and curb/sidewalks along Slusser Street. Questions were answered about the previously adopted improvement concepts for in front of the Heritage Center. Trustee Davies suggested additional greenspace, and Mayor Taylor noted the importance of preserving the old water tower. Mayor Taylor provided background on discussions with two downtown businesses about clean-up of their properties along the railroad tracks and the possible need for financial assistance. Trustee Nicodemus asked if enforcement is an option. It was noted that legal enforcement is possible but costly and not very effective. The Trustees expressed support for a cooperative approach. Mayor Taylor asked the Board if there is interest in pursuing clean-up actions on old parcels on Route 83 as part of the effort to improve the corridor. This could involve building teardowns increasing open space or for economic development. He noted the availability of two parcels. Trustee Nicodemus expressed opposition of any purchases noting the Village is not in the real estate business. Trustee Davies noted that the Village should be open to considering parcels but thought opening the two available parcels might hurt people s enjoyment of the park. Access to Route 83 might be a positive. The consensus was to not proceed further on the two identified parcels. Trustee Vogel made a motion to authorize design services and bidding for the annual road resurfacing program as presented. Seconded by Trustee Waldenstrom. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all aye. Motion carried. Mayor Taylor asked if there were any concerns regarding the proposed changes to our insurance coverages. There were none so it was directed that the process of gaining coverages be done. The Board then discussed the concept for contracting certain pool operating activities including possible benefits of this approach and the extra costs. Mayor Taylor felt that the proposed concept was a good one even at the extra costs. Trustee Vogel noted that if we want to provide a pool, and many residents use the facility, then the service must be sustainable when we have staff turnover. Trustee Nicodemus thought presenting this option is not responsible since it will increase costs resulting in greater operating losses. Village Manager Ellis noted that facilities like the pool, heritage center and senior center have been chosen by Village Boards for funding for their community benefits despite the possibility of operating deficits. Proposals are presented to the
5 Board on the basis of operating effectiveness and/or cost impacts for many Village operations to gain Board input and feedback. This presented concept has both Village and pool operational benefits and cost impacts. He noted the importance of back-up expertise for specialized services in light of staff reductions. Mayor Taylor noted that it was known when these facilities were provided that revenues specifically generated by each may not be sufficient to pay all costs for each. In the case of the pool the Village has, in different years, made money, broke-even, lost money or generated dollars for facility additions. The dollar deficits for the pool are small in comparison to the overall budget. He noted that perhaps the Village may have gone further than it should in its efforts to cut costs through full-time non-police position reductions. It was noted that the contract cost is still being worked on in the hope of reduced costs. Trustee Waldenstrom made a motion to authorize execution of a contract with Jeff Ellis Management LLC in an amount not to exceed $ 239, Seconded by Trustee Davies. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores all aye. Trustee Nicodemus nay. Motion carried. Trustee Waldenstrom provided information on a request for $2,500 for a new Miss Grayslake pageant where applications would be accepted only from persons within Village of Grayslake boundaries. The Board discussed the existing pageant, funding for pageants in general and the value of supporting groups who create events/activities for the community. Mayor Taylor noted that the Village only does this in a limited way and sometimes assists to help sponsoring groups get started. Trustee Vogel stated the Board periodically reviews the list and makes changes and perhaps we should do this again. Trustee Shores suggested developing criteria for evaluating requests and other members supported this idea. It was the consensus to not make the required contribution and to develop a criteria for considering support request. Trustee Shores will work on the criteria. Trustee Shores provided information on community branding efforts for economic development, visitors and other purposes. He noted the possibility of suggesting a use of various communication platforms may also help in the Village s communication efforts. Noting the limitations on staff time for this, he provided information on a brandstorming process offered by the firm DHD where ideas can be determined. The firm would offer a session like this at no cost of the Village and the Village could so beyond this initial session as it chooses. The Board discussed communications in general, how the proposed elected officials session would work and possible outcomes. Trustee Davies noted the currently underway Village Center logo/tag line project. The consensus was to proceed with the session in the upcoming months. Trustee Shores will contact DHD. Board members discussed a draft alley plan for the Whitney Street to Slusser Street alley including the idea of a one-way alley concept, the sidewalk layout, traffic flow, dumpster enclosures and next steps with property owners. The consensus was to contact the property owners using the proposed concept to gain permissions needed to construct, maintain and operate the improvements on private property and proceed with formal design and bidding. Trustee Vogel brought the Board up-to-date on the Heritage Center Committee discussions since the July rain event. He discussed the short term objective of getting the center operating as normal which requires finding storage space for the Historical Society collections/archives through a property purchase (Society preference) or rental of space. Rental would be in the range of $15,000/
6 year. It was noted that the Village s obligation is to allow the Society to use the center basement and annex and not to provide other spaces. Trustee Vogel stated the view that longer term options need to be explored further and various Board members commented on possible future scenarios for the building in the future. Possible rental locations were mentioned by Board members. Trustee Jarvis made a motion to direct staff to find and lease 1,200 square feet of suitable space for rent for storage of the Society collection/archives for a cost not to exceed $ 15,000/year and defer long term options for further study. Seconded by Trustee Shores. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all ayes. Motion carried. Mr. Ellis then provided information on the Consolidated Project List, a list of previously funded 18/19 projects, a list of unstarted but funded FY 17/18 projects and the Recently Identified Projects List. He reiterated that, except for the Lake Street grant project covered by intergovernmental agreement, any projects on any of these lists could be eliminated, rescheduled or funded as the Board determines each year. Mayor Taylor confirmed with the Board that the consensus was to proceed with design and bidding of unstarted FY 17/18 projects and planned FY 18/19 projects as presented. He suggested that the Board set an amount of $2.0 million for additional projects for FY 18/19. Board members concurred with this approach and discussed various projects from the Consolidated Project List and the Recently Identified Project List. Mayor Taylor recommended funding for Stormwater Management Study, Mockingbird Court overland drainage, Burton Street drainage enhancement and the alley storm sewer replacement for a total estimated cost of 398,000. The Board consensus was to include these projects in the FY 18/19 program. Board members continued their discussion of various projects including the splash park at the aquatic center, entryway signs ( locations/sizes/costs), EDC recommended studies on property taxes and the old fairgrounds, neighborhood tree planting, Washington Street planted medians and Alleghany Road curbing. Extended discussion was held on the Alleghany Road path and the Center Street utility burial with some Trustees favoring the path and others the utility project. Mayor Taylor noted the electricity reliability benefits of the utility project in downtown. Mayor Taylor polled Trustees with four favoring the utility project and two the path project. Mayor Taylor then suggested that the utility project be included in the FY 18/19 program. After further discussion Trustee Vogel made a motion to authorize design services and bidding for the following projects: Stormwater Management Study Mockingbird Court Overland Drainage Burton Avenue Drainage Enhancement Alley Storm Sewer Replacement EDC Old Fairgrounds Study EDC Property Tax Study Entryway Sign Replacements Route 45/Route 120 Landscaping and Monument (southwest corner) Alleghany Road Curbing Project Center Street Utility Burial Project
7 Seconded by Trustee Shores. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all ayes. Motion carried. Trustee Jarvis wanted the minutes to reflect he supports the overall program but remains opposed to the entryway signs as proposed. It was noted that the projects have a total estimated cost of $1,370,510. The Board directed that the Washington Street storm sewer project, Railroad Avenue project and Slusser Street curb/sidewalk project be added to the Consolidated Project List. Mayor Taylor suggested that the Board defer discussion on the extended financial forecast information and suggested the Board hold a meeting on January 13, 2018 for this discussion and further discussion on the Gelatin property and Heritage Center items. The consensus was to schedule this meeting. Mr. Ellis requested Board feedback on the provided financial information between now and 1/13/2018 and reiterated that the team can provide additional information as requested. Trustee Jarvis made a motion to adjourn at 1:50 p.m. Seconded by Trustee Waldenstrom. Roll call: Trustees Vogel, Jarvis, Waldenstrom, Davies, Shores, Nicodemus all aye. Motion carried.
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