Dupage Policy Journal

City of Elmhurst Finance Council Affairs & Administrative Services Committee met Dec. 11

Here are the minutes provided by the committee:                         

1. Call to Order

Chair Talluto called the meeting to order at 7:01 p.m.

2. Roll Call 

Committee Members Present: Talluto, Jensen, Nudera, Irby

Committee Members Absent:

Other Elected Officials Present: Curran

City Staff and Others Present: Coyle; Bruns; Grabowski; Derek Wold & Mark Golkowski – Baxter & Woodman (7:46); David Giuliani (8:14)

3. Public Comment – None.

4. Receipt of Written Communication – None. 

5. Business Before the Committee

A. Minutes of the November 27, 2023, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the November 27, 2023, FCA&AS Committee meeting was made by Alderman Irby and seconded by Alderman Nudera. A voice vote was taken and the minutes of the November 27, 2023, FCA&AS Committee meeting were approved unanimously.

B. Report – IEPA Loan Amendment Request for Bundle 5

Director Coyle presented a report to the Committee which recommended amending an IEPA loan for the Bundle 5 project at the Water Reclamation Facility. The original loan request was awarded in July 2023 in the amount of $26.5 million. The original loan request was based upon an engineer’s estimate of $25 million for Bundle 5, the fifth round of projects at the Water Reclamation Facility which are necessary to replace aging infrastructure, modernize the facility, and begin to reconfigure the plant to remove phosphorus in the treatment process, a mandate for the City by 2031. On November 21, 2023, bids were received the low bid for the project was $32.3 million. The Committee discussed the drivers of the increase from the original engineer’s estimate which included a $3.8 million increase for equipment, a 5% increase in labor cost, an 8.7% increase in concrete cost, and a 10% increase in fuel prices. Additionally, there were $1.7 million in scope changes for fiber optic cabling improvements and rehabilitation of the SCADA system, neither of which are sufficient to support current and future wastewater operations. In order to fully fund the project, it is recommended that a revised loan amount be requested at $36.5 million from the IEPA by adopting an amended loan ordinance. The Committee approved the report with modifications, recommending that the City Council direct the City Attorney to prepare the appropriate documents so that that the City Council can amend the loan from the Illinois Environmental Protection Agency in an amount not to exceed $36,500,000. A motion was made by Alderman Jensen and seconded by Alderman Nudera. Roll Call vote: 4 ayes, 0 nays. Motion duly carried.

C. Water & Sewer Rate Study

Director Coyle presented new information requested by the Committee at the prior meeting, including a Gantt chart depicting the timeline for debt funded Municipal Utility Fund projects which outlined the timing of engineering, construction, and debt service repayment. Chair Talluto asked Committee members for their position on funding the operating and capital needs through a larger one-time increase with smaller consistent future increases versus spreading out multiple larger increases, as well their thoughts on the scenarios presented. After significant discussion, the Committee reached consensus to determine a larger one-time increase for 2024, as opposed to spreading larger increases over time. The Committee also agreed that the capital plan should not be reduced and that Capital Investment Recovery Charge (CIRC) ratios should be updated to align them with American Water Works Association (AWWA) standards. The Committee supported the rate scenario with a tiered (inclining block) structure, and plans revisit this in 2024 for implementation in 2025. This will allow the Committee to fully evaluate all factors involved with moving to a tiered system, and allow sufficient time to educate customers on the changes to the billing structure. The Committee asked staff to bring back additional increase scenarios for comparison at the next Committee meeting, with the intention of arriving at a final decision on a 2024 water and sewer rate increase.

6. Other Business

The Committee discussed the fact that there will be no Committee meeting the week of Christmas. It is also expected that the Council meeting on 1/2/2024 will be cancelled due to a lack of quorum.

7. Adjournment

A motion to adjourn was made by Alderman Nudera and seconded by Alderman Jensen.  Motion carried by unanimous voice vote.

The meeting was adjourned at 9:08 p.m.

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