Kendall County Times

Village of Oswego Committee of the Whole Met Jan. 12.

Here is the minutes provided by the committee:

Pursuant to Public Act 101-0640 and Guidance Provided by Legal Counsel, the Village of Oswego may conduct all or portions of this meeting by use of telephonic or electronic means. Instructions on public access to this meeting is available through the link within the agenda.

CALL TO ORDER

President Troy Parlier called the meeting to order at 6:09 p.m.

ROLL CALL

Board Members Physically Present: President Troy Parlier; Trustees James Marter II and Terry Olson. 

Board Members Attended Electronically: Trustees Pam Parr, Judy Sollinger and Brian Thomas. 

Board Members Absent: Trustee Luis Perez.

Staff Physically Present: Dan Di Santo, Village Administrator; Tina Touchette, Village Clerk; Jeff Burgner, Police Chief; Mark Horton, Finance Director; Joe Renzetti, IT/GIS Director; Jenette Sturges, Community Engagement Coordinator, Marketing; Carri Parker, Purchasing Manager; and Karl Ottosen, Village Attorney. 

Staff Attended Electronically: Christina Burns, Asst. Village Administrator; Jennifer Hughes, Public Works Director; Rod Zenner, Community Development Director; Scott McMaster, Economic Development Director; Mark Runyon, Asst. Public Works Director; Steve Raasch, Facilities Manager; and Ryan Morton, Village Attorney.

PUBLIC FORUM

Public Forum was opened at 6:09 p.m.

Comments provided in-person:

Gerald Sternberg addressed the Board regarding Oswego’s leadership; lives in Steeplechase; sidewalks are unlevel and need fixing; HOA turns in list to Public Works each year; they did not do the sidewalks in July; Public Works put in asphalt patches as a temporary fix; need to rent a mud jack machine. If not going to do the sidewalks, then tell them; snow is still being pushed into the corners; need to learn how to plow; have 55 and older in the community; multiple people have fallen; Delta Sonic applied for a permit; they need to do what was in the permit.

There was no one else who requested to speak. The public forum was closed at 6:13 p.m.

OLD BUSINESS

There was no old business.

NEW BUSINESS

G.1 Police Headquarters Financing Update

Director Horton addressed the Board regarding the financing of the new Police Headquarters. Some of the current Board members were not here when this building was financed. Mayor Parlier requested a review of the financing during a Committee of the Whole Meeting. The previous Board agreed to proceed with building a new police facility in January 2016. The new police facilities projected cost was $30 million, in addition to the price of the land which was approximately $207,850. At the April 5, 2016 Board meeting, the Village Board was presented with two options for issuing General Obligation Bonds (GOB) to finance the police facility project. One option was to issue GOB in an amount to generate bond proceeds to pay for all bond issuance costs and provide $30 million for construction of the facility. The estimated total cost of this option, to pay for principal and interest on the bonds, was $44.6 million. The other option was to issue the bonds in smaller issuances over a three-year period to potentially save on interest expenses on the bonds. The estimated total cost of this option, in amounts necessary to pay for all bond issuance costs and provide $30 million in project costs, was $48.9 million. Staff recommended and the Village Board agreed to proceed with one bond issuance in an amount to not to exceed $32 million to finance the project.

The 2016 GOB were issued on June 8, 2016. The par amount of bonds issued was $27,105,000 which was lower than the authorized $32 million. The GOB was sold at a premium providing $30,988,608 in bond proceeds to pay for all the bond issuance costs, capitalized interest and $30,000,000 for the construction of the new police facility. The total cost of the principal and interest on the bonds issued was $45,781,100 if paid to maturity. The debt service schedule on the 2016 GOB was structured in combination with the Village’s existing debt to provide level annual debt payments through the maturity of the 2016 GOB. The Village’s existing debt service for fiscal year 2016 was approximately $1.7 million prior to the 2016 GOB issuance. All the debt was being paid from General Sales Taxes received. The existing outstanding debt schedule showed the annual amount declining each year to maturity in 2028. With a growing Village and limited revenues, the 2016 GOB were structured combining existing outstanding debt to provide a level debt service amount to be paid annually through the life of the 2016 GOB issuance. The new annual amount to be paid on the outstanding debt would be approximately $2.7 million.

The funding to pay the annual debt service would be provided from the existing $1.7 million of General Sales Tax allocated for debt service and the Home Rule Sales Tax (HRST) being received. The HRST rate was increased in July 2015 to be effective January 2016 by 3/4ths of one percent. The increase was estimated to generate an additional $2.8 million in HRST. The Board agreed to allocate $1.4 million of the additional HRST and combine it with the $600,000 of Motor Fuel Tax being spent on the annual road program. This would increase the annual road program to $2 million annually. The remainder of the estimated $2.8 million would be used for other capital projects including the new police facility debt. The increase in the HRST rate was estimated to generate $2.8 million annually but has actually generated $2.9 million in Fiscal Years 2017 & 2018 increasing to $3.1 million in Fiscal Years 2019 and 2020. Staff allocates 60% of the total HRST received to the Capital Improvement Fund to pay the annual debt service on the 2016 GOB and other capital improvement projects. Staff has been using approximately $1.4 million from HRST recorded in the Capital Improvement Fund to pay the annual debt service on the 2016 GOB. This amount will be sufficient through Fiscal Year 2024. The annual debt service increases over the next three subsequent fiscal years leveling off at $2.8 million through maturity. General Sales tax previously used to pay outstanding debt service ($1.7 million) combined with $1.4 million from the HRST will be used to pay the debt service until the bonds are paid off.

Police Facility Funding

Board and staff discussion focused on current premium rate; after year 2027, the bonds can be refinanced; three issuances at $10 million each was an option; cheaper way was $30 million upfront; chance of rates going up with the three issuance option was greater; cost of issuing each bond was considered; staff negotiates bond sales and watches the market before issuing bonds; have been able to get low rates so far; increasing payments over time; tapering off debt service; bond policy is to maintain debt service over time; structure around existing for budget purposes; maturity amounts; more of new debt being paid; HRST was increased in 2015; road program; capital projects; MFT. There was no further discussion.

G.2 Discussion of Snow and Ice Control Program

Director Hughes addressed the Board regarding the Village’s snow and ice program.

Policies

• Mailboxes

⮚ Section 8-8-1(F) of Village Code- Village will reimburse residents up to $75 if the plow blade or other part of the truck hits the mailbox.

⮚ Village will not reimburse for damage if snow coming off the plow blade damages the box. 

⮚ Staff supervisor will inspect the mailbox upon notification by a resident within three days of the event to determine the cause of damage.

⮚ Complaints tend to peak when the snow is wet and very heavy as the snow itself will damage the box. 

⮚ The value of the reimbursement is limited to the cost to install a basic mailbox and post from a big box store.

⮚ Staff has had instances where residents have installed elaborate mailboxes who have requested reimbursement significantly higher than $75. Staff has denied those requests in accordance with the Village Code.

• Cul-de-sacs

⮚ On February 5, 2013, the Village Board affirmed protocol for snow operations in cul-de-sacs. 

⮚ Cul-de-sacs are the third priority for operations after primary and secondary roads are completed. 

⮚ Staff typically schedules the contractor to start removal operations once the snow stops. 

⮚ Will not plow cul-de-sacs if there is less than 2” of snow.

⮚ Do not typically salt cul-de-sacs unless there is an ice storm or anticipation of an extended period of well below freezing weather.

• Snow removal equipment

⮚ Equipment necessary for the maintenance of property is exempted from noise regulations. 

• Depositing of snow on street

⮚ It is unlawful to deposit snow onto the streets while removing snow from resident driveways and sidewalks.

• Parking prohibitions

⮚ On Main Street, Jefferson Street, and Madison Street when more than one inch (1”) (all other streets two inches) of snow or when the Village is carrying on or conducting snow removal operations until the streets are plowed, or the snow has been removed.

Salt

Staff uses salt to lower the freezing point of water. Rock salt itself is not effective. Staff relies on car tires to break up the rock salt and spread it out so the salt can be effective over a large area. Because cul-de-sacs have lower traffic volumes, the salt does not spread very well, making it less effective. The friction between the tires and pavement creates heat which helps raise the temperature of the pavement, thereby helping melt snow. Once the salt dissolves in water, it cannot be easily or cheaply removed from the environment. The chlorides make their way to water bodies and wetlands. The EPA is working with communities to reduce chlorides placed in the environment during snow operations.

Contractor Assistance

The Village first hired a contractor to plow snow in cul-de-sacs in 2011-2012. The Village awarded a contract to Forestview Landscaping to plow snow in 140 of the 223 cul-de-sacs at a price of $3,910.00 per push. The direction was that the contractor would be called in after two (2) inches of snow has accumulated. In October 2012, staff discussed with the Board to expand the contract to include all cul-de-sacs and issuing the contract for three years. Staff recommended to only call out the contractor when two (2) inches or more snow occurred. If there was less than two inches of snow, the cul-de-sacs would not be plowed. The next contract occurred in 2012. The Village Board affirmed that no plowing would occur for snow less than two (2) inches.

Staff received three bids for 2015-2018 contract years. Forest View Landscaping was awarded the contract. Stonehill and Snow Systems were the other bidders. In 2015, the contracted price for plowing cul-de-sacs was $6,550. Staff bid the contract again on July 26, 2018 and received no bids. The feedback was the project was too large. Staff then split the contract into four bid packages:

• 1 & 2- two packages of ½ of the cul-de-sacs

⮚ Two contractors (Stonehill and Snow Systems) bid on ½ of the cul-de-sacs; each a different ½. There was a significant discrepancy in cost.

⮚ Re-bid ½ of the cul-de-sacs on September and did not receive any bids.

⮚ Obtained a quote and awarded both cul-de-sac packages to Stonehill.

⮚ Awarded the downtown and parking lots to Beverly.

• 3- downtown/Village Hall/parking lots, and the police department

• 4- fire department lots.

In 2020, staff received five bids for snow services. Like previous years, it was broken into packages:

• All 243 cul-de-sacs

⮚ Semper Fi and Figgins, declined to bid on the cul-de-sacs.

⮚ Cul-de-sac bidders included Stonehill, Shamrock (Elburn), and DGO (Des Plaines)

⮚ Low bid price was $12,636.

⮚ Second lowest bid was $13,000.

⮚ High bid was $15,000.

⮚ The cost to spread salt in cul-de-sacs ranged from $13,478 to $17,500.

⮚ Bidders agreed to hold their prices while the Village Board discusses the snow and ice control program on 2/2/21.

• Village-owned property & downtown

• Reserve at Hudson Crossing

• Police Headquarters

Board and staff discussion focused on most challenging program due to unpredictability; have to rely on forecast; bringing in crews overnight; working under contract with two contractors over the years; not a lot of businesses want to bid on cul-de-sacs; every snow event, the Village receives complaints; mailboxes get plowed-in; guys working in bad conditions; have policies in place for replacing mailboxes; policy has been in place since 2008; $75-$100 replacement for most communities; no parking regulations; do not have a bare pavement policy; balance out costs; environmental concerns with salt in the water system; salt lowers melting temperatures; careful with drifting on certain roads; complicated and react as quickly as possible; drivers taking over routes they are not familiar with; utilizing See-Click-Fix; calls after hours go to the on-call person who may already be plowing; 10- 40 events per season; why Public Works doesn’t clear out hydrants; there are 3,000 hydrants in the Village; Village asks that residents clear the hydrants; also ask residents to clear out around mailbox; stumbled with cul-de-sacs at the last event; more effort into policies; using social media to give residents more information; asked for consensus to raise the mailbox reimbursement to $100; how many complaints received this year; 32 complaints received not all relating to snow plowing; all but two complaints are closed out; damage to mailboxes need to be reported within 3 days; heavy wet snow is usually the issue with damage to mailboxes; concerns with trying to fix something that doesn’t need to be; pushback on the cost of replacing a basic mailbox; reimbursement basis; cul-de sac contractor pays for the damages; cul-de-sac contractor goes out with direction from Public Works; if 4” is predicted, they will go out after it has stopped snowing; if 14” is predicted, they will go out several times; in 2016, eleven mailboxes were damaged; in 2017/2018, 57 mailboxes were damaged; varies based on the number of events and the type of snow; majority is the snow coming off the blades; do research on how much it costs to replace an average mailbox; staff will bring back the cost and average number of mailboxes hit at the next meeting; state highways are not the Village’s responsibility; county would be involved on some of the roads; each state route driver is assigned 40 miles to plow; Oswego is at the end of the route; Public Works will escort ambulances to the hospital; can step in and plow state routes; repairing if snow comes off the blade and causes damage; some mailbox poles are rotted and barely standing; some residents take advantage of snow events; flowchart for salting; more information needs to be available on social media; visible to See-Click-Fix on our website. There was no further discussion.

CLOSED SESSION

There was no closed session.

ADJOURNMENT

A motion was made by Trustee Marter II and seconded by Trustee Olson to adjourn the meeting; upon a voice vote with all remaining members present voting aye, the meeting was adjourned at 6:58 p.m.

https://www.oswegoil.org/Home/ShowDocument?id=3649