VILLAGE OF LINCOLNWOOD

PRESIDENT AND BOARD OF TRUSTEES

COMMITTEE OF THE WHOLE MEETING

VILLAGE HALL COUNCIL CHAMBERS

JUNE 18, 2019

Call to Order

President Bass called the Committee of the Whole meeting of the Lincolnwood Board ofTrustees to order at 6: 04 P. M., Tuesday, June 18, 2019, in the Council Chambers of theMunicipal Complex, 6900 North Lincoln Avenue, Village of Lincolnwood, County of Cook andState of Illinois.

On roll call by Village Clerk Beryl Herman the following were:PRESENT: President Bass, Trustees Ikezoe-Halevi, Hlepas Nickell, Sargon, Klatzco, Patel (via remote)ABSENT: Trustee Cope

A quorum was present.

Also present: Anne Gaura, Village Manager; Charles Meyer, Assistant Village Manager;

Heather McFarland, Assistant to the Village Manager; Andrew Letson, Public Works Director;

Nadim Badran, Assistant to the Public Works Director; Steve McNellis, CommunityDevelopment Director; Doug Hammel, Community Development Manager; Jason Parrott,Police Chief; Robert Merkel, Finance Director; Ben Harris, Accountant; Mike Hansen, FireChief; Jim Amelio, Village Engineer.

Approval of Minutes

The minutes of the May 21, 2019 and the June 4, 2019 Committee of the Whole were presentedto the Village Board.

Trustee Hlepas Nickell moved to approve the minutes as presented, seconded by TrusteeIkezoe-Halevi.

The motion passed by Voice Vote.

Regular Business

1. Discussion Regarding General Obligation Bond Issuance

This item was presented by Eric Anderson of Piper Jaffray

Mr. Merkel stated that this is a discussion of General Obligation Bonds( GO) bonds. The two projects

involved are not revenue producing. GO bonds have not been issued for many years.

The projects are:

Northshore Outfall Sewer

Water Transmission Main

Piperjaffray

Village of Lincolnwood

Matters Related to Issuance of General Obligation Bonds

0SLIP,

b

LI

Interest Rates Have Dramatically Declined In Fast Seven Months

Intwest revs have plungedG, a, fi i „ rte iim x, mon fi Novembet after the

40 yearUD 1A 2.79% Otoentxu equity coffitotion,1WIN, continued low inflation, tatiff

J1.I is and

20 year MMO 2.14% 3,28% atm aovwnio tactors.

The Federal Fte ae has

stated!they we$Xepwed to

ensure growths " Reese is11 cumntlya 0+% expectation

S Os% of a out in the Fest Funds saget _ 2 °

JuIly

1 t"mix

i zwt

Piperjaffray

Spreads To Treasuries

i yin liU I

4) 11jIGo6o: 41 IhrulIiiP6 lilil tdeclined meaningfully,

o US Treasuries have

20 year 88.1' x, 84%- 97%Note try 52~let cam,.We we t

144 mkkk of the rwVe

00% Curmntly for mostaftorhavirig

d esta " ed s tot4

about

S 4s

7Is 00%

74

83, 4 ,"

W00%

5 Y" FlO € 9 14 JaarMAC, t5yew Mt: 20 ie

I'ir ffrayl

or Shore Outfall Sewer

Proposed Improvements

Installation of a separated storm sewer on:

NORTH SHORE AVENUE — DRAKE TO THE CHANNEL

KIMBALL AVENUE — NORTH SHORE TO ALBION

SPAULDING AVENUE —COLUMBIA TO NORTH SHORE

COLUMBIA AVENUE —CHRISTIANA TO SPAULDING

Estimated Construction Cost: $3.6 million

MWRD Grant:$ 1.4 million

6 0 Bond:$ 2. 1 mitlion

Water Transmission Main

Proposed Improvements

Installation of a 204nch water transmission main to connect the Viltage's potable

water system with EvanstoWs system

Resurfacing of roadways along the project route

Select distribution of in replacements and sewer repairs

Estimated total cost: $12 million

Funded by GO Bond

Amount I Structure I Tax Designation of Borrowing(s)

3 $14, 100,000-$ 14,700,000for projects plus costs of issuance capitalized into

r t am un oaf bonds — $ 14,400,000will beused for presentation purposes

Q 20 year retirement

Level debt service- or- step up structure to create' hole' for future projects andallow for asst savings to materialize

0 Tax. Exempt( non-bank qualified or a combination bank qualified and tastable)

Z1 Interest dates of June 1 and December 1

Principaldateof December 1

First interest payment commencing June 1, 2020

0 First principal payment commencing December 1, 2020

3 CalI provision of nineto ten years

3 Bonds wilIbeunlimitedtaxgeneralobi igatio s

3 Bond levy abatement affecting 2019lev yadopted and filed by March 1, 2020

0), Piperjaffray

Current Interest Rates as of June 10, 2019

Y*1

2= Um 1Bond I d Curve

2x21 AGaS'. 1.61%

2 AM LAM s a

2023 IMN 1.72%

20124 Ich 1lft

ZMs IMN 1

2M6 IM 1,0214 xs

2W IMN 1.

2= IM 2

2W 510M 2, 12%

2Oo Isaac 2196

Un Um 2, 534

202 I 2A

Us 40M 2. 6mi .W

2ce4 AM 2

LOS A€X 2.7 csc

Uss ACM 242%

2037 AM 2 0= 44

2M I $.14%

rates and yiOds we sutoctto chmpS

iperj ) r

Level Debt Service-$ 14,400,000 General Obligation Bonds

or f

r* T

9 S 24L= s22zws

S23,22a sm

1 14tW Sam wzm

ZCt4IMAM = 72 Ir= gsxi N

zea 298,312 Sam usm

2m 24134 num W= 1,

zm IAR,44 221= vim

2M 14AM SUM V4=

2 23& 9 MW Mm

2W 141M Mau w

mu 23 n IV= wzm

296 2$" l snm WZ= t

zu Utz& 2211M

2€ss 23@,,327 su" sa>oao

X87 IAM7 3229 W41W

WIM 224" rum

2

s466 S Z $ AASUV 8

Piperjaffray

Step Up Debt Service-$ 14,400,000 General Obligation Bends

tow 3( ; t ' u'AfQ

Zra S low S 672942 S. VAM

7021. 2m.666. 964?62 96419 1:

3: 21 407.14" 669.39 990,492

mn 704,tl9 364626 964570

206, 375 466.162..

2454 lm,m 3K40 mm"m

futum f,^9?m 202,370 66.776 21.Emla mov

and to aftw for7099 mms7la 16trt76 M4"71q ''

7. Sy f

X27 103,,.9! 96$ 222 667,9@ &

Stili 2431927 loam 3, 24m tv be reahzed.

9126 206. 349 3, 242348 16294

Sag Sm,44 1<1240m 2815

Sm 20.t20 2. 2714193. IINKI94

2m 5041061. 2391466 104407

2757 taxi 2370216 224$ 306

401, 356 11342„! 76. VISMUO

7076 2mos. 13271= 235124@

2296 206192 21214* 7 284900

9.x91 24Mo+ 24 11124,21% 2,:84w.

am 2m.;m1 11314M3.. 92374: 17627171 3Y1a 2' iG72. xla aa#a ia5`

sais 9.. S mow +'537.322,516 S s0,6[ 2 +tom 6Rmss( Y n. k

lliperjafft yr

Future GO Bond ss ante

The following are the estimated amounts that will be need to bebonded each May of each calendar year to achieve the Village' s tenyear infrastructure plan:

o i

1 . 0 million

9.9 million

Pvtlpp

Band Statistics -$ 14,400,000 General Obligationgation Bands

A#-

Levet debt: 2.97%

Step Up debt, 3.08%

Calable Bonds

Bonds calable 1211130 and thereafter callable at par beginning 1211brevet debt; 7.990 m4ort callable

Step Up debt:: S10. n callable

In 1ghangilLevel debt: 159,290

Step tip t; S184,463

stsof n

Presentlyusing 1, 45% ofparvakie as cost of issuance and underwritersdiscount budgetaryfigure, capitalized into par valuelinterest rate on bonds.

Subject to orange

Bank Qualified I Tan-Bank Qualified/ Taxable Designation

t Qalfgg QUgationAvailable to all units of Owwwneint regardlass of safe or of 90VWMMWt, it alDOWS a k)C3J government to

d" risto tax wampt rt feed f the anwAl of tax wwript bonds a oslendar year is ertual to

or liess then$ 10,0D0,000.

Baink ` fsca s bariks, to parboipm in finar4rqs and ertcy ceftan tax advanta;lesfor the interest eamedon this type of borer, and was created from the Tact Reform Act of 19W to w= urage banks to invest in fixe bonds, oflocal unh of government, The t rds qualification examination is an armual test,

In ori to issue tats as tax exempt there is a spend doiim redthremerit, To pr"ope"rty destnate,the bonds as taxeksmot, t® nably » that at least % of s borrowed will be spent b

pro2octs within a thmt year period, Our prehmwaty work r4oates met the WISP KU a e eXpeclaWft treat 4

will t this Oxamination.

Sased'on the& W amount detenwiod ra ar yew 2019, and it

confilriction wililijokins forcaIlendaryear 2020offenng(s)',,we willPexamm the mostcoV-effzierd mw~ n which to Jswe Me bonds aid ptoods,nowvnendabionto

the "'

Bank Qualified I Nan-Bank Qualified I Taxable Designation

NgAmlt

For units of gowemtrernt issuft mone than $ 10,000,000 in is exempt bonds in any calcar year, bonds aredes4witedas ink sten a as" fr t for irra

are issued aty ds than t des+ ated bank quWied. Note that am issuer may not desi; nates it*first$ 10 milof bonds as bank qualified, with amounts issued above mat designated as nk qualified.

Based on the frW swunt detemineo to mw An c y r 209, and sh

cost-eff ru ffwvw is which to issue the boasts and providerex ttn eatean to

Bank Qualified C Non-Bank Qualified Taxable Designation

r

Certain pmjeotswe not ° ifor tax Ciampi ftmoiN, 4r in caw Where, boond prooeeds we spent over a INWOne period than 36 rnmths, the bonds are issued haves taxable rates of angst,

Addhionally_ there are occasions where an plans to save an anrount Over S 10, OW,000 in a Calendar Year, andissues a oombiriation of bank quafified bonds for thaw& st$ 10,000.000 of issue, with the bapince issuedat

taxable rates. This is lar an eccoomic mhvation,

Sased'ondieft0ammor determiried to issue in calendar, yaar ^ t9, aridincoWchm b phins fidrrAkr4ar year 2020 o ` s# the mat

cost-efikuent saAmer in wtAch to issue the Fronds, and povide to

the

0 IrJffray,

Taxpayer Impact Avoided Through Abatement

If all debtservice weretc be levied upon resdents, below provides the impact upon homeownersatvarliduslevelsof home value( using level'debt se ` a oac h)

raw oa

SMOM S400sm s Xam $ S700000 ssagwo

At$M* r sj ' U%) s 3dAW $ 2420

14WbWjoMftoorPj7I

Jbtrlbw seem aU 14113 s177.M $ mss s2azau

stem'stemptiom IMOMI t 40001 114

14womw nssary 72,811 $ s S247,742 $ 197229 Isms

ms+ E,te # f • Ss` 011II $ o.isn S 4302 $ 2 $ 0442

MENEM

asmcr ae+ ca + al i us

zed aoao s3ansstarrtr, tars 4 aess

ata moc« 43132

In order to not extend the bond and Merest lever, property taxes associated with theSeries 2019 bond need to be abated annually, tote we are using levy year 2017informtiontopresentthisinVact—ttteequafization factor as wellasequalized assessed

valuation fiqu tea are expectedto change annually.

Piperjaffray'

Parameters Ordinance Usage

A pw&TAm ordrance t used to raminize th* voUtilty associatedpot t wai( et am% that

ocour on the date of a Boardoffing for cue pe ptanr

At an upomwl Boaid of Tru rd would consider a forth thetervs and

condrhomofthet sate,

This of a parametm ordiname, estabishes an Acceptable" of,pammetes that Alow fortaxsorthree de fromtrte VASQ& to apptovethe ftando; tvrnsonoet ywe aakmd'

Para" ters irA%xW are the Wowing:MaKirnumparamountMAXMM= pon rate of intwest

MaXMvjM annal bond jr4 interestMaxwrurn'maturitydrmMinor0im,acceptable paid bypoohaw

Authcxized delegates enipvweved'to s000 bond sale reaft

The tes ftm the VAage atrthoeted with approving tefts, but at lasst one boardmoambermustbeauthoreed, ' tie t Vs' a the V M cif

Should market condtors be wflawable on the intilly s e. ft VASQ0 nW defet the saanother date Likewse, shodd arrms of the sale e4he be ottsde orthe parwr4ers, estabished, or be taxlesirabb bthe the salewould be de ed until firworable oaxf4ims are rpt

Piperjaffray

General Obligation Bands and Tax Increment Notes

The V" " a contemplated sswooe of tit SorxW as an UnArmied Tax General 0bkRtiw dfts from

its proposed issuence,of Tax Inaernent Notes in maqjkW aspeds, OKWOV

you ' yTax inc(ement

BondsAp-

ai

Is a tax lever upon rets Yes, and abated as the

v

yNo, canrtat ever be WAWTrustees act upon residents

Ifi@II q 4li Ilik MhN ryry^yp,, @

II

itar N n hIai axi. e

i wY'°# P' 7f'* R! o

Counts towardstlebt issuancearnount desigraftn in any Yes, Yes

calendaryear s

I' trJaiF a

Other Timing& Issuance Considerations

D Adoption of reimbursement resolution for certain costs expended priorto

debt issuance

0 Adoption of day-of-saleor parametersbond ordinanceby and of Trustees

Z3 Bond market timing( hol idays/ economic events/ headlines)

Q Spenddown considerations and drawschedule

3 Bond rating- Moody's Investors Service-- lateJuly rating presentation withVillsage staff

3 "Stay away" dates( especially near rating dates and/ or sale dates)

Z3 Volatil ity in bond market

Iliperjaiffray

Potential Calendar of Bond Issuance Events—Parameters Award

C4" Mniftft PW

July 16 Reserved for Bar ter presentatkMtocomm4tee oft iewholess

myIBoais

rd ofTrustees a4ustzo

JulT% Ni Stiptembv 17

Late July Bond rating presentation with Staff Octobor 2

octzbr 16

An, 10A.uqW 6 Poteittlat Special Meeft to award consWidiort,contracts 12911dufan

and adopt parameters bond"( financela) raw IS

1I. 111iSRI''

LIvA

10mid",

August19 Bond sale conducted- bonds awarded by delegatesA20

A; September 17

jd' ol1

0, 0.

This sohedule maybe amended soowdk* y to a= omer4date the Vi bmetab* 5

Piperjaffray

Potential Calendar of Band Issuance Events—Day of Sale Award

comm'tfte and

1 _ oft FIT oi iii! viii d

July Is Reamed for further presentabonslo Committee oftheWholeun`

I6

IL

PPHP

Late July; Bond rating presentation with off car 2

l, 16

P6 R

August6 Potential Special Meeting to award constructim contracts: bed Atssta xJuft is

liti fil iJOY 36

Aust Erg

August 20 Bond outconducted/ Board of'f'icrimes adopt ta Auvati zo

ordinance(s) and bonds awarded

ii i E ii ns UOctober"sOctober 16

Thts scheftle may be anwr4ed ao= dNty toaccomyroodate s tomtable howirtwr 5

poftmffaV 5{ecia(

1' ip rJaffc

Discussion ensued as Mr. Anderson, Mr. Merkel and Ms. Gaura provided information for clarification.

Mr. Anderson commended the Village for the lack of debt and position on pension funding.

2. Discussion Regarding Village' s Pump Station and Boil Order

President Bass commended Staffon the work done during the Boil Order event ofJune 13,2019.

Trustee Hlepas Nickell suggested that the Board take a break and begin this discussion at 7PM

as announced so that residents may attend the discussion.

This item was presented by Mr. Letson at 7PM as announced.

Purpose of Discussion

Key TakeawaysReview of the events of June 13, 2019

Review the causes of the low water system pressure

Opportunities for improvement

Operations at the Pump HouseManagement of emergency preparedness

Communication during emergencies

Key Takeaways

Response was a full staff effort

Over 700 calls were received

First system-wide boil order in over 40 years

First activation of the Revere 911 system for an emergency in at least 5 yearsThe boil order was out of an abundance of caution

Low pressure can allow for backflows or growth ofbacteria, potentially causing harmThere are opportunities for improvement (short term and long term)

Operation at the Pump HouseManagement of emergency preparedness

Communication during emergencies

Timelines of events were exhibited from 3: 30 AM June 13, 2019 through 11: 20 AM June 14,

2019 when Boil Order was lifted.

Reverse 911 Call Statistics were presented.

Electrical Redundancy

The Pump House is fed by two separate circuits from Com EdIf there is an outage on one circuit, the system automatically switches over to the other

Portable Generator

A portable generator is housed at the Public Works Facility that can be transported tothe Pump House in emergencies

The portable generator is too large to be housed at the Pump HousePreviously the generator was used for the Public Works Facility, the Standpipe and thePump House

The Public Works Facility and Standpipe had permanent generators installed in2013 using TIF fundsTypically, there is enough time to set up the generator in an emergency, as theStandpipe maintains pressure n the system

A generator would not have prevented the problem in this instance.

Water Pressure Loss— Causes

Automatic Transfer Switch( ATS) RelayThe Pump House is fed by two circuits from ComEd and an ATS allows for an automatswitch between circuits during a power failureThe ATS has a relay that will not allow the pumps to turn on for 10- 15 seconds after apower failure to ensure that the electricity coming from ComEd is consistent

Inconsistent power could damage the pumps

The relay failed, causing the pumps to not be able to be turned onStandpipe undergoing maintenance

Typically the standpipe would provide a buffer by maintaining pressure in the systemwhile staff hooked up the portable generator or opened an emergency connectionThe standpipe is currently empty to accommodate the rehabilitation projectWhen the power at the Pump Station failed, the pressure dropped immediately

Opportunities for Improvement of Operations at the Pump HouseShort Term

Develop a boil order template( complete)Locate the portable generator at the Pump House ( complete)Revise pump failure procedures ( in progress)Revise emergency information at the Pump House ( complete)

Re-establish Wi-Fi at the Pump House( in progress)

Long TermReview with the Village Board the cost of a permanent generator

Evaluate a second emergency interconnection with SkokieEvaluate installation of a second service line from ComEd

Complete the standpipe rehabilitation process ( in progress)

Purchase an electronic message board trailer

Opportunities for Improvement of Management of Emergency PreparednessShort Term

Debriefing of the event ( complete)Emergency Operations Center tabletop to review the event( complete)

Long TermQuarterly Emergency Operations Center( EOC) training for senior management staffAnnual tabletop disaster drillComprehensive update of the Emergency Operations Plan ( EOP) ( in progress)

Opportunities for Improvement of Communication During EmergenciesShort Term

Update Reverse 911 System access to include additional staffmembers and

administrators ( complete)

Reprioritize communication roll out during emergencies ( complete)1. Reverse 911, 2.Social Media, 3. Mass Media

Train senior management on Reverse 911 system ( complete)

Utilize Reverse 911 text capabilities (complete)

Long TermPublic information campaign to increase participation in Reverse 911 system (inprogress)

Refines duties of staff members during emergencies ( in progress)Push enrollment for the Village' s app and provide education regarding notifications (inprogress)

Explore enhanced communication capabilities through cable providers

Key Takeaways

Response was a full staff effort

Over 700 calls were received

First system-wide boil order in over 40 years

First activation of the Reverse 911 system for an emergency in at least 5 years

The boil order was out of an abundance of caution

Low pressure can allow for backflows or the growth ofbacteria, potentially causingharm

There are opportunities for improvement (short term and long term)Operations at the Pump HouseManagement of emergency preparednessCommunication during emergencies

Discussion ensued with Mr. Letson and Ms. Gaura providing clarification and informationregarding the future actions which will be taken. There will be better and earliercommunication. Reverse 911 will be the first notification with Social Media and Mass Media

coming next. Staff training is in progress to provide more communication opportunities.

They thanked the Public Works staff for their work and dedication.

Residents and businesses were notified by staff.

Thanks to District 74 for assisting in notification.

Public Forum

Resident and former mayor Jerry Turry addressed the Board.

He questioned why the mayor was not contacted until 7AM, nearly four hours after the incidentbegan.

Resident Charles Halevi spoke regarding the water issues of this incident as well as others.

Adjournment

At 8: 07P.M. Trustee Hlepas Nickell moved to adjourn Committee of the Whole, seconded byTrustee Ikezoe-Halevi.

The motion passed by Voice Vote.

Respectfully Submitted,

t'

Beryl Herman

Village Clerk