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Village of Maryville, Illinois

Description Caucus Meeting
Date 1/27/2010 Location Council Chamber
Time Speaker Note
6:30:00 PM Gulledge Called the Caucus meeting of Wednesday, January 27, 2010 to order and invited those in attendance to join in the Pledge of Allegiance. After the Pledge, asked for a roll call of those officers present. Answering the roll call were Trustees Limberg, Schmidt, Kostyshock, Garcia and Short; Bell was late. Also in attendance were Deputy Clerk Fenton, Attorney Wigginton, Administrative Assistant Henry, Village Engineer Juneau, Public Works Director Presson, one (1) reporter and one (1) resident.
6:30:47 PM Gulledge Called for approval of the January 13th meeting minutes. Asked if there were any questions, additions or subtractions to the minutes as prepared by the Clerk. There were none. Motion to approve was made by Limberg and seconded by Schmidt. Voting on the motion: Limberg - yes; Schmidt - yes; Kostyshock - yes; Garcia - yes; Short - yes. Motion carried.
6:31:38 PM Bell Arrived and was seated.
6:31:45 PM Gulledge Went to first agenda item, Madison County Recycling Grant. Explained this is an annual grant application for park equipment with an 80/20 split up to a total of $15,000. Stated traditionally the total cost has been $15,000, for which the County does $12,500. Stated it is the Park Committee's recommendation to apply and to allow Gulledge and Bell to decide on the items i.e., picnic benches, trash receptacles, etc. Stated due to the timing of meetings, the Park Committee did not have time to choose items, which is why they have left it up to Gulledge and Bell. Stated they have to turn in three bids to the County by February 12th. Stated they are currently soliciting RFPs from companies. Stated they will have the specific information before next Tuesday. Polled the Board: All were in favor of applying for the grant.
6:35:41 PM Gulledge Went to next item, Water Tower Property. Stated they have been discussing the proposal to discontinue burning at the tower for some time. Asked Presson to discuss.
6:36:22 PM Presson Stated the intent is to issue a no burn and no collecting policy at the tower. Stated they will have to change the current tree and limb program to only curbside pickup and discontinue drop-off. Stated they will continue to mulch and store the chips on-site, and mulch will continue to be used for parks.
6:37:29 PM Gulledge Commented the intention to cut out the burning before the spring season. Commented houses continue to be built closer to the property, and burning will affect the new water storage facility with painting issues, etc.
6:38:37 PM Presson Stated they will install bullards at the end of the access road at Lakeview Acres, for which keys will be maintained by personnel that currently have keys to the gate.
6:40:12 PM Limberg Commented his opinion they need to review the Village-wide burning ordinance as well.
6:40:43 PM Bell Asked if the chipping program is limbs only, or will they also do construction lumber.
6:40:55 PM Presson Stated they will not pick up lumber. Bell asked if that would fall under large item pickup. He was told large item pickup does not take construction material. Presson commented they have briefly discussed adding another large-item pickup date.
6:42:55 PM Gulledge Went to next item, Water Rate Study. Explained the Public Works Committee, including Jolene Henry and Charlie Juneau have been doing a Water Rate Study for the past three years. Explained they have been running at a deficit for the last few years, and cannot continue to operate this way. Explained the Water/Sewer Department is an Enterprise Fund, and is therefore run as a business on its own merit.
6:44:37 PM Juneau Thanked Jolene for all her work. Commented the Village has been faced with increases in sewer rates due to the Collinsville Wastewater Treatment Plant expansions. Stated Maryville has been fortunate to be named one of the recipients of the IEPA and Federal Stimulus Funds for expansion of the water treatment plant to add additional softeners, expand the building and construction of a ground storage tank and pumping station. Explained the debt service must be taken into account when looking at rates. Commented 25% of the cost of that project was by grant in the form of a loan that is being forgiven, for which the Village will owe 75% of the cost to the State at 0% over 25 years. Referred to the distributed report which shows the current water/sewer rates charged by the Village. Referred to reserve and replacement costs that are kept back on an annual basis for equipment maintenance and repair/replacement. Stated they are projecting a need of $70,000 per year for this reserve. Explained they also have an extensive distribution system consisting of 450 valves and 280 hydrants for which they projection is $33,000 per year for repair/replacement. Moved on to expenses and revenues May 1, 2004 through May 1, 2008. Commented this report shows more money going out than coming in for a number of years. Commented they have been supplementing the losses with water and sewer tap-on fees, which is not a legitimate expense for the improvements and additions because they are being caused in many cases because of the growth in the community. Commented last year the sewer rates were substantially raised due to the cost of the expansion of the Collinsville Treatment Plant; however water rates were not raised. Explained the Village has been aggressive in replacing water meters, which decreases water losses of unbilled water and allows more efficient reading of meters. Stated approximately 2,000 radio read meters have been installed to date, with approximately 1,100 more for completion, the cost of which needs to be allocated into the rates because they are replacing existing infrastructure. Explained they will be receiving $623,000 of loan forgiveness for which there are two parts: The first is half of the funds of the $2.5 million project are coming from the American Recovery and Reinvestment Act, of which $623,291 is a loan forgiveness and $623,290 will be a 20 year, 0% interest loan which IEPA is matching with a 0% interest loan of $1,246,580 for 20 years. Stated the total annual debt service will be $93,494. Stated Operation and Maintenance costs have been held in line over the last three fiscal years for an average of $1,136,000. Explained increases must be built in for raises in equipment costs, power costs, salaries, etc. Explained projected expenses have been shown for the next four years with a 3% increase per year. Explained the water usage information is shown for historical review, although water sales have not be going up as rapidly in the past. Explained due to a couple of wet years, as well as the advent of new toilets and the introduction of more conservation, water sales are not increasing at the rates they used to. Explained they are projecting annual monthly billing over the next four years. Explained many municipalities are passing rate increases based on going-forward so as to avoid waiting three or four years between each rate increase, resulting in a substantial amount when an increase is passed. Stated they are recommending passage of an ordinance that will provide for rate increases over the next few years and also allow for adjustment if needed upon review. Stated the Public Works Committee is recommending a water rate increase of 14% for next year, and 7% for each of the following three years.
7:04:49 PM Limberg Commented by his calculations the increase is 19%. Juneau corrected himself, saying it is 19%.
7:05:09 PM Schmidt Stated the first year is 19%, the second year is 10%, the third is 9.5%, and the fourth is 8.7%.
7:05:45 PM Gulledge Commented regarding the additional debt: IEPA has Maryville on a critical list, so improvements must be done. Commented it may be happening a little faster than it has to; however they are trying to take advantage of the stimulus money which in the long run will be a benefit to every water user.
7:07:03 PM Juneau Commented the Mayor, Patrick and the Fire Department have been very aggressive in trying to bring down the ISO rating of the Village. Explained these improvements will greatly impact the rating and hopefully lower it enough to save all Village residents money on their insurance rates. Discussion ensued as to impact of ratings on insurance rates.
7:09:18 PM Bell Asked what percentage rates were raised the last time. Commented 19% is pretty substantial.
7:09:38 PM Juneau Responded the water rate was last changed November 21, 2007 with an increase of 55 cents, or 20%.
7:10:10 PM Gulledge Commented he agrees this is a large increase. Explained Patrick has done a good job cutting expenses; however they must have money to operate. Commented he has repeatedly resisted raising rates a little at a time despite recommendations from Juneau. Commented if the rates had been increased over three years, the end result would have been the same.
7:11:21 PM Kostyshock Commented even with the raise, in 2010 they will still be operating at a $300,000 deficit and will only break-even at 2013.
7:11:41 PM Bell Asked if a comparison to other communities was done.
7:11:52 PM Juneau Responded yes, and pointed it out in the report. Commented Maryville is substantially lower than most of the communities even with the rate increase.
7:13:10 PM Gulledge Commented in addition to the increase, the Village is planning on going to monthly billing. Explained they believe it is a good time to do so. Explained it helps with cash flow and will help users when they have a water break. Explained with the current bi-monthly billing, breaks are not caught in a timely manner causing residents to be responsible for a big bill.
7:15:05 PM Juneau Stated in addition to a water rate increase, they are recommending an increase in tap-on fees of $100 across the board both for inside and outside city limits.
7:16:03 PM Gulledge Explained the Committee is recommending a one-time increase, and continue to monitor the rates each year. Commented they need to remain cognizant of Maryville's small retail sales tax base and continue to make builders comfortable building in Maryville.
7:17:06 PM Short Commented the columns on the schedule for inside and outside rates are backwards.
7:17:33 PM Schmidt Commented his agreement with the figures for the water rate increase. Commented his opinion they need to be more aggressive on tap-on fees. Commented the nature of the fee as a one-time charge, and his opinion is they should maximize the affect. Commented his opinion they will not lose new construction by raising tap-on fees. Referred to the handout he distributed, showing figures he computed at an increase to $6,000 overall for water, sewer and inspection fees versus the Committee's recommendation of $5,050. Referred to the current local comparison to other municipalities, noting the $6,000 increase is still less than Edwardsville and Collinsville and approximately $500 more than Glen Carbon.
7:21:09 PM Kostyshock Commented they cannot compare Maryville to the other municipalities listed, as they have larger populations and more revenue income. Stated in the last five years Maryville has led Madison County in new homes. Commented one of the reasons for that might be they are keeping rates low. Stated his opinion $100 is sufficient. Stated they must look at the overall picture: For each new home built, Maryville gets the water and sewer tap-on fees, the water and sewer usage, property tax, motor fuel tax, sales tax, etc. Stated his opinion they don't want to take a chance of curtailing new construction.
7:22:05 PM Schmidt Responded whomever is building homes in town are really getting a break because Maryville has not raised building construction fees in over eight years. Commented his disbelief that raising tap-on fees more than $100 will cause developers or builders to go to a different community. Stated the reason they want to build here is other than the tap-on fees. Commented if there is no agreement on the figures he has proposed, they should consider increasing it over three or four years similar to what is being done with rates.
7:23:34 PM Garcia Commented the builder will simply pass the fee on to the homebuyer. Kostyshock disagreed. Discussion ensued.
7:24:02 PM Schmidt Commented on the argument of other municipalities having a bigger tax base: That is all the more reason for a higher tap-on fee because Maryville does not have a retail tax base. Commented his opinion the fee will not be re-addressed in the future.
7:24:56 PM Gulledge Commented they have been adjusted in years past. Stated that is the reason they do the Water Rate Study each year. Commented he is not in favor of raising rates by such a high amount as $600. Discussion ensued.
7:32:13 PM Bell Commented he is more in favor of raising tap-on fee rates to contractors versus water rates to residents. Commented his idea to offset a lower rate increase to residents with a higher tap-on fee for contractors.
7:32:59 PM Short Commented that idea is somewhat counter productive because water rate increases will be a continuous revenue, whereas they could not raise tap-on fees enough to make up for that revenue. Further commented a $6,000 increase to build a $200,000 home is only about a 3% increase, which is a lot less than the water rate increase as well as many utilities. Stated he believes such a large increase would hurt large developers versus individual builders. Stated he likes Schmidt's idea, but believes it would have to be incremental rather than all at once.
7:35:06 PM Juneau Commented the problem with relying on tap-on fees to make expenses is that it is very unsure money. Commented many municipalities have seen building drop significantly. Stated you cannot rely on tap-ons to meet Operating and Maintenance expenses. Discussion ensued.
7:42:39 PM Gulledge
Polled the Board; Limberg was in favor of raising $100 this year and revisit the issue each year; Schmidt was in favor of $100 per year through 2013; Bell was in favor of $100 each year through 2013; Kostyshock was in favor of $100 this year and revisit the issue each year; Garcia was in favor of $100 this year and revisit the issue each year; Short was in favor of $100 each year through 2013; Gulledge was in favor of $100 this year and revisit the issue each year.
7:43:32 PM Juneau Clarified all are in favor of the water rate increase. Bell commented his opinion the increase is too much all at once. Discussion ensued as to prior increases.
7:44:39 PM Gulledge Clarified all are in favor of going to monthly billing. Stated additional expenses are estimated at $7,000 per year. Bell continued his dissatisfaction with the large rate increase.
7:45:57 PM Gulledge Commented they should have been raising rates by 4-5% for the last three to four years and haven't been, so the consumer has kept their money. Stated Maryville rates are comparable to other communities. Bell continued to argue. It was pointed out that prior increases were done every ten years with softening fees added in 1999. It was further explained the raises in sewer rates were dictated by Collinsville for their waste water treatment charges.
7:50:59 PM Juneau Reviewed sewer information. Explained reserved replacement costs for pump stations and operation maintenance costs. Stated they are projecting operating and maintenance costs from $800,000 in 2010 to $926,000 in 2013. Explained there are two bonds to pay off. Commented on payments to Collinsville with increases from 2000 at $93,000 to current costs that are almost double. Schmidt asked if that is a fixed increase each year. Gulledge explained they are supposed to meet each year to review costs and if they are more than the Village has paid each month, the amount must be made up; if it is less Maryville gets credit. Discussion ensued as to how the costs are calculated. Juneau commented Collinsville has imposed a substantial rate increase over a very short period of time. Further explained the figures for sewer charges and tap-ons. Commented tap-ons dropped off in 2008 and have continued to do so. Stated they have projected the future number of users and future flows, which is critical to how the number is divided to bill per 1,000 gallons. Stated they have projected reserve and replacement costs, operating and maintenance costs, debt service (on which there is currently none), payments to Collinsville and what is needed to run the system. Next, referred to proposed rates. Commented in 2008 there was a substantial sewer rate increase of approximately 33%. Stated that is currently close to meeting expenses, so they are projecting that a 20 cent per increase per year be made over the next four years for an approximate 5% increase.
7:58:49 PM Gulledge Commented Maryville cannot control most of the sewer, and it will be dependent on what happens with the billing from Collinsville. Commented his opinion it will not be less.
8:00:34 PM Juneau Stated the recommended increase to sewer tap-on fees is $100 per tap and an additional $50 on the inspection fee.
8:01:15 PM Schmidt Stated he would like to see the tap-on fees increase yearly, even at $100.
8:01:30 PM Bell Stated his agreement with Schmidt.
8:01:36 PM Gulledge Polled the Board. Each Trustee had the same opinion as for the water tap-on fee increase, respectively.
8:02:24 PM Juneau Commented the contract has been awarded for the water project with the hope they will be starting once the weather breaks. Schmidt asked if the soil samples were unusual. Juneau responded no. Commented extra foundation work will need to be done due to the types of soil there. Schmidt asked how the money will come in. Juneau explained the payments come in fast if the bills are submitted to the State fast enough. Commented his recommendation would be for the Board to authorize the Mayor to approve the bills for reimbursement. Stated there should be a two to three week lag between invoices so that once the bills are approved for payment the money is already in the bank.
8:07:02 PM Presson Reviewed ACH information, which is an automatic deduction program through customers' bank for water/sewer bills.
8:07:37 PM Gulledge Stated Attorney is reviewing the paperwork, and the Board will have to give their approval. Discussion ensued as to different ways to pay bills.
8:12:03 PM Presson Stated he received quotes for a tailgate spreader for the new dump truck. Stated the quote for a stainless steel spreader was $2,800 or the current type steel which ranged at $3,650. Stated with Board approval, he would recommend purchase of the stainless steel and would like to move on it as there is a limited quantity available. Stated the labor price for installation would be approximately $500.
8:13:52 PM Gulledge Polled the Board: All were in favor of purchase of the stainless steel spreader, installed.
8:14:12 PM Gulledge Went to Calendar Updates. Events were discussed.
8:20:52 PM Gulledge Went to To Do List. There were no comments.
8:22:00 PM Gulledge Went to Trustees' Comments. There were none.
8:22:15 PM Gulledge Went to Mayor's Comments. Stated they will be bringing the issue of appointing an FOI Officer to the Board at the next Caucus meeting, as it must be approved in February. Stated the Officer must be in place as soon as possible, and certified by July 1st. Stated Spring Clean Up will be the last week of March.
8:23:00 PM Gulledge Asked for a motion to go into Closed Session to discuss Personnel Matters under 5ILCS120(2)(c)(1). Motion was made by Schmidt and seconded by Short. Voting on the motion: Limberg - yes; Schmidt - yes; Bell - yes; Kostyshock - yes; Garcia - yes; Short - yes. Motion carried.
8:46:09 PM Gulledge Asked for a motion to come out of Closed Session. Motion was made by Schmidt and seconded by Short. Voting on the motion: Limberg - yes; Schmidt - yes; Bell - yes; Kostyshock - yes; Garcia - yes; Short - yes. Motion carried.
8:46:28 PM Gulledge With no further business to come before the meeting, asked for a motion to adjourn. Motion was made by Bell and seconded by Schmidt. Voting on the motion: Limberg - yes; Schmidt - yes; Bell - yes; Kostyshock - yes; Garcia - yes; Short - yes. Motion carried.
8:46:47 PM   The meeting ended.

Respectfully submitted,

Thelma Long, Village Clerk

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The Village of Maryville