Village of Oswego Committe of the Whole met November 7.
Here is the minutes provided by the Committee:
Call To Order:
President Gail E. Johnson called the meeting to order at 6:01 p.m.
Roll Call:
Physically Present: President Gail Johnson and Trustees Ryan Kauffman (attended at 6:08 p.m.), Karin McCarthy-Lange, Pam Parr, Luis Perez , Judy Sollinger and Joe West.
Staff Present: Dan Di Santo, Village Administrator; Christina Burns, AVA/HR Director; Tina Touchette, Village Clerk; Jennifer Hughes, Public Works Director; Jeff Burgner, Police Chief; Rod Zenner, Community Development Director; Mark Horton, Finance Director; Tim Zasada, Asst. Public Works Director- Utilities; Corinna Cole, Economic Development Director; Jenette Sturges, Community Engagement Coordinator- Marketing; and Dave Silverman, Village Attorney.
Consideration Of And Possible Actions On Any Requests For Electronic Participation In Meeting:
There was no one who participated electronically.
Public Forum:
Public Forum was opened at 6:01 p.m. There was no one who requested to speak; the Public Forum was closed at 6:01 p.m.
Old Business:
There was no Old Business.
New Business:
F.1. Consideration and Discussion of the Acquisition of Neptune Water Meters and AMI System
Director Hughes and Asst. Director Zasada addressed the Board regarding water meter and reader replacement. The water meter system consists of four components: the water meter and register, the radio transmitter, the collectors, and the software. The Village needs to replace all of the existing water meters, outside readers, radio transmitters and the collectors. The replacement program could be completed in one year or over a five-year period dependent on funding. The Village has approximately 11,600 commercial, industrial and residential water meter accounts. Public Works employees read approximately 1,500 water meters manually for a variety of reasons. The current supplier of the Village’s existing meter reading technology is no longer manufacturing or supporting the equipment and a large percentage of the equipment is more than 15 years old. Each transmitter has a 20-year battery life; many of the current transmitters are not functioning properly and need to be replaced. The collector manufacturer has eliminated support for this equipment and no longer supplies parts or service for repairs. There are also meters from multiple manufacturers in the system. Staff met with several vendors who provided system specifications and cost estimates to ensure the system can meet future needs. The systems are proprietary and for the most part not interchangeable. The primary difference between the vendors is the method of communicating between the transmitting unit and the collectors. One system uses a grid system and the others are a star configuration. The differences between the two are:
• The grid will send a signal to the next transmitter closest to it and continue this until it reaches the collector
• The star will send a signal directly to the collector
Two types of radio transmission are utilized by the manufacturers evaluated:
1) Primary Licensed Frequency where the Village is the licensed holder
2) Unlicensed band using frequency hopping spread spectrum technology that shares the frequency
Due to the complexities of the systems, the long-term commitment to maintenance with specific vendor and the difficulty of comparing “apples-to-oranges”, staff requested the waiving of sealed bids. The installation of the new collectors, setting up the software and replacement of water meters that are manually read will be the first steps in transitioning to the new system. Staff recommended the installation of a Neptune ARB Utility Management System:
• Founded in 1886
• Established meter manufacturer in Europe and entered the North American water meter market in 2012
• One of the largest meter manufacturers in North America and the only company with its own foundry located in Tallassee, Alabama.
• System has been a proven technology and is in its fourth generation
• Extensive research and development department
• Unlicensed network utilizing frequency hopping spread spectrum technology
• No FCC license is required
• Offers hosting of all data and a customer portal
• Backwards compatibility will ensure they will not discontinue manufacturing or supporting a product produced today and into the future
• If a collector were to be out of service, the system can be utilized as a drive by system allowing staff to continue to read meters with no billing interruptions
• Total project cost= $6,081,516.54
Board and staff discussion focused on wanting to go with one meter instead of several different meters; concerns with product availability, product support and the reliability of the grid radio system; modern registers can store up to 90 days of usage and can detect minor and major leaks; cost projected over 20 years with 2.8% growth factor added in; current system is 15-17 years old; losing efficiency; batteries currently are not replaceable; 150 homes currently not working; 1,500 on older systems and staff needs to read the meters manually; manufacturer no longer supplying transmitters; warranty expires in four years for the receiver on the tower; warranty parts not available for the receiver; Neptune is a backward compatible system; funds budgeted for this fiscal year; start installing meters on those that don’t work first and then replace from oldest to newest; 11,000 meters need to be replaced; Neptune has a 20 year guarantee; water rate study; costs built into the rate increases; includes cost to hire a contractor to do the installs; needing to schedule times to get into 11,000 homes; needing to have the ERP system in place; why the Village is not recommending Sensus; other communities have Sensus; whether FCC licensing is needed; comparisons between Sensus and Neptune; working with the Village’s Purchasing Manger on the project; most equipment will be purchased over several years; residential billing would be processed through the Village; what technology is needed if connecting to DuPage for the Village’s water supply; spreading out the replacement of meters over a five year period; needing to get the backbone in first; annual maintenance for the Zenner system is far below the others; wide variance in cost.
Staff to provide a list of communities that have gone to Neptune. Additional questions should be forwarded to Administrator Di Santo or Director Hughes. Item will be brought back at a future meeting for vote. There was no further discussion.
F.2. Review and Accept the Actuarial Report for the Fiscal Year Beginning May 1, 2017 and Ending April 30, 2018
Director Horton presented the actuarial report for FY beginning May 1, 2017 and ending April 30, 2018. The Village contributes an amount each year to support the Police Officers Pension Fund. The amount contributed must be based on an actuarial valuation completed each year. The Illinois Compiled Statutes state how a municipality shall finance the Police Pension Fund. The Village contracted with TWS Actuary to complete the fiscal year 2018 valuation. The actuarial report determined the Village must contribute $1,342,897 to the pension fund in fiscal year 2019. There was a change with respect to Actuarial Assumptions from the prior year to reflect revised expectations with respect to mortality rates. The mortality rates have changed to the RP 2014 Mortality Table projected to 2017 using improvement scale MP-2016. The Village’s Tax Levy Requirement has decreased from $1,392,423 last year to $1,342,897 this year (3.6%). The decrease is due to the investment return being greater than assumed. The percent funded increased from 66.2% last year to 70.1% this year. Plan participants must be 50 years old with 20 years of service to retire.
Summary of Results – as of May 1, 2017-
• Market value of assets= $26,176,298
• Actuarial value of assets= $26,467,039
Tax Levy Requirement-
Public Act 096-1495 Tax Levy Requirement is determined as the annual contribution necessary to fund the normal cost plus the amount to amortize the excess (if any) of 90% of the accrued liability over the actuarial value of assets as a level percentage of payroll over a 30 year period, plus an adjustment for interest. The 100% amortization amount is equal to the amount to amortize the unfunded accrued liability as a level percentage of payroll over a 30 year period which commenced in 2011.
Year Ending April 30, 2018-
• Village normal cost as of beginning of year= $675,146
• Amortization of unfunded accrued lability/(surplus)= $579,898
• Interest for one year= $87,853
• Tax levy requirements as of end of year= $1,342,897
Board and staff discussion focused on the Village should be funding at 70%, but ideally funding at 100%; 5% salary rate assumption; market is good for the pension fund; Village is funding better than most; 6-8 plan participants could retire within the next year; projected pension payments could be double; concerns with funding; need to contribute what the actuary tells the Village to fund. There was no further discussion.
F.3. Receive the Police Pension Fund Tax Levy Request for Calendar Year 2017
Director Horton presented the Police Pension Fund Tax Levy Request. State statutes require the Police Pension Fund to submit a tax levy request for the calendar year to the Village Board for the purpose of accumulating sufficient resources to pay for the annual requirements of the Pension Fund. The Police Pension Board approved the levy request at their Board meeting on October 26, 2017. The pension board is requesting the Village Board levy not less than $1,342,897 for calendar year 2017. The levy request is based on the amount determined to be levied by the actuarial report completed by the Village hired actuary. The Village will add an additional $57,103 of general operating revenues to contribute a total of $1,400,000 to the pension fund in fiscal year 2019. The Village Board accepted the levy request. The request was filed with the Village Clerk. There was no further discussion.
F.4. Receive and Review the Municipal Compliance Report from the Police Pension Fund
Director Horton presented the Municipal Compliance Report from the Police Pension Fund. House Bill 5088 (Public Act 95-950) requires the Police Pension Fund to submit to the Village Board an annual report on the condition of the pension fund. The 2017 Municipal Compliance Report was submitted for acceptance by the Village Board. The report summarizes the current fiscal year and prior fiscal year information from the Actuarial report in an easy to understand format.
Current Fiscal Year-
• Total cash and investments= $26,184,080
• Net income received from investment of assets= $2,290,172
• Assumed investment return; private actuary= 7.00%
• Actual investment return= 9.86%
Preceding Fiscal Year-
• Estimated receipts- employee contributions= $443,700
• Estimated receipts- all other sources= $1,832,900
• Municipal contributions= $1,342,897
• Pay all pensions and other obligations= $801,200
• Net income received from investment of assets= $169,589
• Regular retirement pension= $619,053
The Village Board accepted the report. There was no further discussion.
Closed Session:
A motion was made by Trustee Sollinger and seconded by Trustee Kauffman to enter into Closed Session for the purposes of discussing the following:
a. Pending and Probable Litigation [5 ILCS 120/2(c)(11)]
b. Appointment, Employment, Compensation, Discipline, Performance, or Dismissal of Personnel
[5 ILCS 120/2(c)(1)]
c. Collective Bargaining, Collective Negotiating Matters, Deliberations Concerning Salary Schedules
[5 ILCS 120/2(c)(2)]
d. Sale, Lease, and/or Acquisition of Property [5 ILCS 120/2(c)(5) & (6)]
Aye: Ryan Kauffman Karin McCarthy-Lange
Pam Parr Luis Perez
Judy Sollinger Joe West
Nay: None
The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.
The Board adjourned to Closed Session at 6:45 p.m.
The Board returned to open session at 7:12 p.m.; all remaining members still present.
Adjournment:
The Committee of the Whole meeting adjourned at 7:12 p.m.
http://www.oswegoil.org/pdf/2017.11.7-cotw-minutes.pdf
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