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HomeMy WebLinkAboutMinutes - 10/27/1999 - Finance and Personnel Committee Finance and Personnel Committee Meeting � October 27, 1999 Members Present: Chairman Alderman Murgatroyd, Alderman Baird, Alderman McClatchey Also Present: Mayor Cuda, Alderman Glab, City Administrator Lobaito, Assistant City Administrator Maxeiner, Deputy Clerk Kunzer, Director of Public Works Batt, Assistant Director of Public Works Marcinko, Director of Pazks and Recreation Merkel. Chairman Alderman Murgatroyd called the Finance and Personnel Committee Meeting to order at 7:07 p.m, on Wednesday, October 27, 1999. Year 2000 Street Pr�ram City Administrator Lobaito stated the reason for this issue being presented to the Finance and Personnel Committee is twofold: ■ Discuss financing of the program; and ■ Discuss which streets should be addressed and the amount of funds needed to implement a 4- yeaz street maintenance/reconstruction program. City Administrator Lobaito referred to Table A created by Assistant Administrator Maxeiner delineating four potential financing options for an MFT backed street program. A copy of Table A is incorporated as a part of these minutes. The four potential financing options aze: � ■ $3.9 million, $975,000 annually in 2000 through 2003; ■ $4.25 million, 2004-$1.1 million; 2001-$1.1 million; 2002-$1.OS million; 2003-$1 million; ■ $4.5 million, 2000-$1.25 million; 2001-$1;2002-$1.25 million; 2003-$1 million; � $5.0 million, 2000-$1.5 million;2001-$1.5 million;2002-$1 million;2003-$1 million. City Administrator Lobaito noted the MFT fund projections for the next ten years aze based on $28.50 per capita with an increase of 429 residents per year. In addition, the projections include figures which could be produced by two special census conducted in the City in year four and year six af the ten yeaz financing program. He noted the cost of a special census is approximately $35,000 which would be realized by increased MFT revenue almost immediately. General discussion occurred regarding the four available financing options. It was the consensus of the Committee the $5 million program is too rich for the City. Discussion continued regarding the advantages of the $3.9 million and$4.25 million options. City Administrator Lobaito stated Staff is seeking direction from the Committee regazding establishing a 10-year financing program in which bonds would be sold to facilitate the street program for the ne�ct four years. The drawback would be there would be less funds available in yeazs 5-10 of the fmancing program Assistant Administrator Ma�ceiner noted the City's bond consultant,Harold Warren, suggested the City might want to consider issuing all the bonds in the first year rather than issue a portion each of the ne�rt four years, which would reduce the issuance cost by approximately $30,000 ($10,000�r yeaz). � Page 2 � Finance and Personnel Committee 10/27/99 Directar Batt noted the City could size the street program to the amount of money Council would like to spend on the program. He pointed out construction cost would continue to escalate. Director Batt stated he would like to go out for bid on the 2000 Street Program in January or February. Director Batt e�cplained it would be less costly to implement the street maintenance program as opposed to the street reconstruction program which would require a registered P.E. An on-site registered P.E. would cost the City approximately $125,000 per year. In essence, if the street maintenance program were implemented, the savings would more than pay for the hiring of the Engineering Inspectar position vacated by Assistant Director Marcinko. Director Batt noted the proposed list of streets requiring work includes streets removed from the 1999 program in addition to streets recently placed on the list by IMS. He pointed out there are several streets which should be televised to determine the status of the infrastructure below them. The televising of the streets should be done prior to any work being done on the pavement. He asked for a recommendation from the Committee to full Council that the televising of these highlighted streets be done immediately, prior to putting the 2000 Street Program out for bid. He noted the tele�•ising of these streets would have to be put out for bid as the anticipated cost is approximately$15,000. �' Motion by Baird, seconded by McClatchey, to recommend to full Council that Staff be authorized to prepare the specifications and associated bid documents necessary for the televising of specified streets. All Ayes. Motion carried. Director Batt noted any potential infrastructure improvements and/or engineering fees have not been included in the program as shown to the Committee this evening. Director of Parks and Recreation Merkel arrived at 7:52 p.m. General discussion occurred regarding the four proposed financing options. The City Administrator noted it is not the task of this Committee to determine which streets should be included in the program. The Committee is being asked to determine the best financing option. Following determination of the best financing vehicle, there could be a joint meeting of the Finance and Personnel Committee and the Public Works Committee to ascertain which specific streets would be included in the progam and the specific work to be done on each. It was the consensus of the Committee the determination of specifics to be included in the 2000 Street Program could be done at a Workshop City Council Meeting. � Page 3 � Finance and Personnel Committee 10/27/99 Motion by McClatchey, seconded by Baird, to recammend to the full Council that Revenue Bonds in the Amount of$3.9 million be issued for the purpose of fmancing the Street Program for the fiscal years 2000-2001, 2001-2002, 2002-2003 and 2003-2004 with a projected expenditure of$1.5 million in Fiscal Year 2000-200�; and that said bonds be paid off by Motor Fuel Tax Fund Revenues, with an annual reserved MF'f amount of $75,000 for contingency purposes, plus the set aside amount required for salt purchase each year. All Ayes. Motion carried. Director Batt and Assistant Director Marcinko were excused from the meeting at 8:00 p.m. Develoaer ponation Fees-Parks City Administrator Lobaito e�lained Staff has been researching a possible increase in Parks Developer pona.tion Fees. Currently, a fair market value of$36,820 is being used to calculate fees. The last review of land costs was done in 1991. Council authorized Staff to hire an appraiser to determine the fair mazket value of an acre of land by today's standards. The appraisa.l was completed reflecting a fair market value is $113,000 per acre. City Administrator Lobaito reminded the Committee the Subdivision Control Ordinance has a formula used to determine the acreage of land required to be donated for new development or, in �'' the alternative, monies to be donated to be used in pazk land development. The cash equivalent is deternuned by simply multiplying the acres of land required to be donated by the "fair market value" of one acre of land. He noted the Pazks Developer ponation Fees for a three-bedroom house is currently $1,583; the Pazk Developer ponation Fees based on $113,000/acre would be $4,914 for the same three-bedroom house. Director Merkel stated it cost the City approximately $600,000 to develop Althoff Pazk which is comprised of approximately 20 acres. Mayor Cuda opined the greatest deterrent to growth is the fees that are charged at the time of building permit issuance, including Developer ponation Fees and Capital Development Fees. City Administrator Loba.ito pointed out the current Subdivision Control Ordnance states the City may choose to accept land as opposed to the required cash equivalent fees. It is up to the discretion of the City to request either a land donation or remunerative compensation in the amount as computed by ordinance. Director Merkel opined the City is pazk land rich at this time and needs the monies to develop existing park lands. Discussion occurred as to a possible phase in period for implementation of the new fees and the annual adjustment of the fee schedule according to the Consumers Price Index figures provided each year. Further discussion ensued regarding the revision to Water Capital Development Fees being scheduled as a Council Agenda Item on November 3, 1999. It was the recommendation of the Committee tha.t the Water Capital Development Fee revisions be removed frorn the Novemher 3`d Agenda and tha.t both Water Capital Development Fee revisions and Park � Page 4 � Finance and Personnel Committee 10/27/99 Developer ponation Fees be included as Agenda Items on the November 10�' regularly scheduled Council Meeting. Further discussion occurred regarding the "fair market value" to be used in determining cash equivalent fees. Motion by McClatchey, seconded by Baird, to recommend to full Council that the Park Developer ponation Fees be increased to reflect a "fair market value" of$100,000 per acre as follows: Detached Single Family Two bedroom $3,026 Three bedroom $4,349 Four bedroom $5,646 Five bedroom $5,655 Attached Single Family One bedroom $1,790 Two bedroom $2,985 Three bedroom $3,588 Four bedroom $4,718 �"` Apartments Efficiency $1,941 One bedroom $2,637 Two bedroom $2,871 Three bedroom $4,580 And that a 90-day grace period following date of approval by City Council be granted to phase in the new fee structure; and that the Pazk Developer ponation Fees be increased in 2001 as dictated by current Consumer Price Index adjustments. All Ayes. Motion carried. New Business There was no New Business. � Page 5 � Finance and Personnel Committee 10/27/99 Adiournment Motion by Baird, seconded by McClatchey, to adjourn at 8:30 p.m. All Ayes. Motion carried. Respectfully submitted: .�X'�'��rJ ''/ Steven Murgatroyd, Chairman McHenry Finance and Personnel Committee � �