HomeMy Public PortalAbout11.22.99 COW Agenda
' ~ ~ VILLAGE aF PLAINFIELD
WILL COUNTY'S OLDEST COMMUNITY
WORKSHOP OF THE PRESIDENT AND BOARD OF TRUSTEES
HELD ON MONDAY, NOVEMBER 22,1999
AT THE VILLAGE BOARD ROOM
530 W. LOCKPORT STREET, SUITE 20b, PLAINFIELD
7:00 P.M.
1) CALL TO ORDER, ROLL CALL, PLEDGE
2) MINUTES -Workshop Monday, November 8, 1999
Richard A. Rock
PRESIpENT
TRUSTEES
Stephen J. Calabrese
John H. Cherry
Michael Collins
Kathy O'Connell
Steven L. Rathbun
Raymond Smolich
Susan Janik
VILLAGI; CLERK
3) COMMITTEE STRUCTURE. At the Village Board meeting of May 17, 1999, the Committee of the
Whale was adopted replacing four working committees. The motion adapting the Committee of the Whole
included a review process following asix-month trial period. That review is now before us.
The Committee of the Whole system has permitted all of the elected officials to receive all of the
information at the same time. Participation, influence and direction was equal among the elected officials.
i Major policy questions received the central focus. Topics such as Renwick Road Bridge, downtown
architectural services, Village Hall space analysis, intergovernmental issues and development plans were
investigated, reviewed and modified by input from the entire Village Board. Less significant issues
required the staff to synthesize data and prepare public briefs for consideration at regular Board meetings
increasing staff and Board efficiency.
The individual committee system stretched staff time and availability and delayed progress far a number
of issues such as Des Plaines Street reconstruction, Van Dyke Road and the Facility Plan. Additionally,
the staff from time to time became confused upon receiving direction from the Village Board that might
conflict with direction of the individual committee.
Attached is a report prepared in 1997 discussing most of the issues of Board structure. The staff
unanimously recommends continuation of the Committee of the Whole.
4) BOLINGBROOK INTERCHANGE INITIATIVE. At a recent meeting Mayor Claar and his staff
reviewed with the Village Board and the public the results of Bolingbrook's feasibility study for the
expansion of the interchange at Route 126 and I-55. At the meeting the Board decided to defer any action
ar comments until it had more time to evaluate the study and its alternatives. As Mayor Claar had
indicated at that public meeting, the study is a concept plan presently and none of its individual alternatives
represent final construction components. The study does however point out the relationships to our work
. in extending 143rd Street east from Route 59 and provides an opportunity to work with other municipal
jurisdictions in securing federal financing and state approvals.
530 W. LOCKPORT STREET, SUITE 206 •PLAINFIELD, ILLINOIS 80544 ($15) 436-7093 Fax ($15) 436-1950
The Staff recommends that the Village of Plainfield work cooperatively with the Village of Bolingbrook
to explore the alternative to use Route 126 as an extension of our work on 143rd Street. Some of the
Bolingbrook alternatives may affect negatively the Lakeland Development or increase traffic on 135th
Street significantly. Our full participation will protect these interests. Your direction can be useful to our
consultant for our Phase I Study on 143rd Street, but not preclude the option of extending 143rd Street
beyond Route 126 as originally considered.
(Information previously distributed)
5) INVESTMENT POLICY. Discussion of proposed investment policy for Village operating funds. State
Statutes require the adoption of an investment policy by January 1, 2000. Seeking a recommendation for
adoption at the December 6, 1999 meeting of the Board of Trustees.
6) LIBRARY MATTERS UPDATE. The administrator will update the Board and the public on the status
of negotiating with Library.
7) ANY OTHER BUSINESS
$) EXECUTIVE SESSION for the purpose of discussion on property acquisition.
DEFERRED ITEMS
Joint Meeting with Plan Commission -Jeff Durbin
Ordinance Updates -Jeff Durbin
Open Space Definition -Jeff Durbin
Infrastructure Maintenance Fee-Chris Minick
Radium Compliance -Allen Persons
Oswego Boundary Agreement -Terry Burghard
DesPlaines Street Power Lines-Terry Burghard
Bolingbrook Rt. 126 Interchange-Terry Burghard
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Richard A. Rock
PFtESidENT
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J
TRUSTEES
Stephen J. Calabrese
VILLAGE OF PLAINFIELD Michael co f s
WILL. COUNTY'S OLDEST COMMUNITY KathyO'Cnnnell
Steven L. Rathbun
Raymond Smolich
Susan Janik
VILLAGE CLEflK
November 17, 1999
To: Mayor Rock and the Board of Trustees
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From: Chris Minick, Finance Director ~
Subject: Investment Policy
Enclosed is a copy of an investment policy for the Village. State statutes require that we have an
investment policy in place by January 1, 2000. I have modeled this policy from the samples as
provided by the Illinois Government Finance Officers Association and the Illinois Municipal
League. I have also included a sample of the monthly investment report as required by the
policy. This report reflects the actual report that would have been submitted far September of
1999 had the policy been in place.
The Village's investments to date have been reasonably simple. We have invested mainly in the
. Illinois Funds (formerly IPTIP) and CD's from local banking institutions. The Illinois Funds is
an investment pool of communities and taxing districts from all over the state. This money is
then "pooled" and the Illinois Funds invests in securities as authorized by State statutes. The
investment earnings are then allocated to the participants on a pro-rata basis. The Illinois Funds
is administered by the State of Illinois Treasurer's Office. Funds in this pool are extremely
liquid; they may be withdrawn at any time by the participants and used to pay obligations. The
pool's 365-day rate of return as of the date of this memo is 5.84%. This is a typical annual rate of
return for this pool. By way of comparison, the rate of return fora 360 day US Treasury Security
was 5.48% for the week ended November 12, 1999.
The Village has also traditionally invested in certificates of deposit from local financial
institutions, mainly New Lenox State Bank and First Midwest Bank. The Village requires a
combination of FDIC Insurance and collateral from these institutions for Village funds on
deposit. As of April 30, 1999, the date of the Village's last review, all deposits with NLSB and
First Midwest Bank were either fully insured or collateralized with securities held by the
Village's Agent in the Village's name. This is the safest type of collateral that there is, and
means that the Village would need to authorize any change in collateral provided for these
deposits.
This investment mix has traditionally been followed because the cash flow and liquidity needs of
the operating funds of the Village are short-term and the Village has needed to assure that
adequate cash is on hand to pay obligations as they come due. Because the Illinois Funds allows
withdrawal of any deposits on an immediate basis, the Village has used this investment vehicle to
maximize its investment earnings while maintaining liquidity for cash flaw purposes.
530 W. LOCKPORT STREET, SUITE 206 pLAINFIELD, ILLINOIS 60544 (815) 436-7093 Fax (815) 436-1950
The Police Pension Fund is not covered by the provisions of this policy. I have no authority or
standing on the Police Pension Board to authorize any transactions or investment decisions. The
Pension Board will need to pass its own investment policy based on its needs and current
practices.
I am recommending adoption of the investment policy at the next scheduled meeting of the
Village Board on December 6, 1999. This time schedule will comply with the deadline as
imposed by State statutes.
Village of Plainfield Investment Policy
I. Policy
It is the policy of the Village of Plainfield to invest public funds in a manner which will provide the
highest investment return with the maximum security while meeting the daily cash flow demands of
the Village and conforming to all state and local statutes governing the investment of public funds.
II. Scope
This policy includes all funds governed by the Board of Trustees of the Village of Plainfield, except
for pension retirement system funds. Those funds are covered by a separate policy.
Except for cash in certain restricted and special funds, the Village of Plainfield will consolidate cash
balances from all funds to maximize investment earnings. Investment income will be allocated to
the various funds based on their respective participation and in accordance with generally accepted
accounting principles. Re-allocations of this interest income may be made to the General Fund to
reimburse the General Fund for administrative costs incurred in administering the investment
program.
III. Standards of Care
Investments shall be made with judgment and care, under circumstances then prevailing, which
persons of prudence, discretion and intelligence exercise in the management of their own affairs, not
for speculation, but for investment, considering the probable safety of their capital as well as the
probable income to be derived.
The standard of prudence to be used by investment officials shall be the "prudent person" standard
and shall be applied in the context of managing an overall portfolio. Investment officers acting in
accordance with written procedures and this investment policy and exercising due diligence shall be
relieved of personal responsibility for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion and the liquidity and the sale
of securities are carried out in accordance with the terms of this policy.
N. General Objectives
The primary objectives, in priority order, of investment activities shall be:
1. Legality -conformance with federal, state, and other legal requirements
2. Safety -preservation of capital and protection of investment principal.
3. Liquidity -maintenance of sufficient liquidity to meet operating requirements that may be
reasonably anticipated.
4. Yield -attainment of a market rate of return.
The portfolio shall be reviewed periodically as to its effectiveness in meeting the Village's needs for
• safety, liquidity, rate of return, and its general performance.
• V. Delegation of Authority
Management and administrative responsibility far the investment program is hereby delegated to the
Finance Director, who, under the delegation of the Board of Trustees, shall establish written
procedures for the operation of the investment program.
VI. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business
activity that could conflict with the proper execution and management of the investment program, or
that could impair their ability to make impartial decisions.
VII. Authorized Financial Dealers and Institutions
The Finance Director will maintain a list of financial institutions authorized to provide investment
services. Where possible, preference for investment of Village funds will be given to financial
institutions and brokers/dealers located within the Village of Plainfield.
In addition, a list will also be maintained of approved security brokers/dealers selected by credit
worthiness
VIII. Authorized and Suitable Investments
Investments may be made in any type of security allowed for in Illinois statutes regarding the
investment of public funds.
Investments shall be made that reflect the cash flow needs of the type of funds being invested.
IX. Collateralization
Funds on deposit (checking accounts, certificates of deposit, etc.) in excess of FDIC limits must be
secured by some form of collateral, witnessed by a written agreement and held at an independent
third party institution in the name of the municipality.
X. Safekeeping and Custody
All securities transactions entered into by the Village will be conducted on a delivery vs. payment
(DVP) basis. Securities will be held by an independent third-party custodian designated by the
Finance Director and evidenced by safekeeping receipts and a written custodial agreement.
XI. Diversification
The entity shall diversify its investments to the best of its ability based on the types of funds
invested and the cash flaw needs of those funds. Diversification can be by type of investment,
number of institutions invested in, and length of maturity.
XII. Maximum Maturities
To the extent possible, the Village of Plainfield shall attempt to match its investments with
anticipated cash flow requirements. Unless matched to a specific cash flow, the Village will not
directly invest in securities maturing more than one (1) year from the date of purchase.
Reserve funds may be invested in securities exceeding one (1) year if the maturity of such
investments is made to coincide as nearly as practicable with the expected use of the funds.
Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the
portfolio should be continuously invested in readily available funds such as LGIPS, money
market funds, or overnight repurchase agreements to ensure that appropriate liquidity is
maintained to meet ongoing obligations.
XIII. Internal Controls
The Finance Director is responsible for establishing and maintaining an internal control structure
designed to insure that the assets of the Village are protected from loss, theft or misuse. The
internal control structure shall be designed to provide reasonable assurance that these objectives are
met. The internal controls shall address the following points:
+ Control of collusion
• Separation of transaction authority from accounting
• Custodial safekeeping
+ Clear delegation of authority to subordinate staff members
• Written confirmation of telephone transactions for investments and wire transfers.
XN. Performance Standards
This investment portfolio will be managed in accordance with the parameters specified in this
policy. The portfolia should obtain a comparable rate of return during amarket/economic
environment of stable interest rates. Portfolio performance should be compared to benchmarks with
similar maturity, liquidity, and credit quality as the portfolio. Such benchmarks may include the
Illinois Funds rate of return, the 90-day T-bill rate of return, or other benchmarks as deemed
appropriate based on the parameters noted above.
XV. Reporting
The Finance Director shall prepare an investment report at least monthly. The report should be
provided to the Board of Trustees and available on request. The report should be in a format
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suitable far review by the general public.
XVI. Marking to Market
A statement of the market values of the portfolio shall be issued to the Board of Trustees on a
quarterly basis if the Village holds any investments in its portfolio subject to market value
fluctuations.
XVII. Investment Policy Adoption
The investment policy shall be adopted by the Board of Trustees. The policy shall be reviewed on
an annual basis by the Finance Director and any modifications made thereto must be approved by
the Board of Trustees.
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Village of Plainfield
Sample Cash and Investmen t Report
30-Sep-99
Account Principal Coupon Purchase Maturity
Institution LLumber ~Am4.lJJlt Rate ~~ ~-~
New Lenox Stat~B~n~C
Operating Account
300801189
1,648,425.75
2.00%
N/A
N/A
DARE Account 300804852 25,279.98 0.00% N/A N/A
CD 300774084 199,171.51 4.75% 7/8/99 1/6/00
CD 300774085 165,976.23 4.75% 7/$/99 1/6/00
CD 300906208 80,527.94 5.05% 10/29/98 10/29/99
CD 300774082 65,734.15 4.75% 7/10/99 1/8/00
CD 300774114 131,266.07 4.75% 6/3/99 6/3/00
CD 300774115 132,383.51 6.10% 12/5/97 12/4/99
CD 300774116 130,447.43 4.50% 9/1/99 11/30/99
Institution Total: 2,579,212.57
First MidwestBank:_
Utility Bill Payment Account
6703492
79,336.81
1.50%
N/A
N/A
K-9 Account 1300440003 23,295.87 1.50% N/A N/A
CD 227649 135,191.71 5.00% 7/14/99 10/14/99
CD 227644 269,130.46 5.00% 7/7/99 10/7/99
CD 227645 309,324.04 5.00% 7/11/99 10/11/99
CD 227646 129,452.64 5.00% 7/5/99 10/5/99
CD 227647 371,188.88 5.00% 7/11/99 10/11/99
CD 227648 92,869.20 5.00% 7/10/99 10/10/99
CD 242801 67,858.08 5.00% 7/14/99 1p/14/99
Institution Total: 1,477,647.69
General Account 713913969-0 6,911,955.53 5.05% N/A N/A
Motor Fuel Tax (MFT) Account 713913970-8 939,351.26 5.05% N!A N/A
Institution Total: 7,851,306.79
Fo nders BanLL_
Utility Bill Payment Account
5049317
10,178.45
4.00%
N/A
N/A
11,918,345.50
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To: Mayor and Board of Trustees
From: T.L. Burghard, Village Administrator
Date: May 19, 1997
Subject: Committees
Prior to the Board meeting of May 5, Mayor Rock asked me for my observations on
Committees and the methods by which the Board organized it's business.
Background
In Illinois, Village Boards and City Councils have great latitude in organizing and
processing their public business. Actually, state statutes do not mandate to a Village Board a
committee structure of any kind, although they require certain Boards and Commissions such as
the Pension Boards and Plan Commission for oversight functions. Similarly, our local Code of
Ordinances does not require and create the individual committees that we have utilized in recent
years. These committees are established and operate by custom and are not codified. Presently
there are six committees:
Ways and Means
Economic Development
Growth Management
Public Works
Public Safety
Planning and Development
I understand that these committees were initiated by Mayor Peterson during his recent
term and assume that the total of six such committees is an attempt to involve and divide the
workload among the six Trustees. Each Trustee is a member of two committees and each
committee is made up of two Trustees. There are several obvious situations where, in name at
least, there appears to be overlapping areas of responsibility. For example, Economic
Development and Planning and Development are closely related and interdependent. Public
Works surely has a number of issues that relate directly upon Public Safety as well as upon Ways
and Means. Fortunately, from what I understand, no serious "jurisdictional" conflicts ever
developed and perhaps the appearance of overlapping responsibility may occur in name only. In
many governmental structures, the jurisdictional disputes of committees hobble the organization
completely. As long as we have cooperation among elected officials I assume that cannot happen
here in Plainfield.
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Some Options
For simple clarification the committees may need a change of name and not necessarily
purpose.
Existing Committees
Renamed Committees
Ways and Means
Economic Development
Growth Management
Public Works
Public Safety
Planning and Development
Finance
Community Development
Development Ordinance Review
Public Facilities
Police
Zoning and Plan Review
This type of structure follows functional lines, is understandable, and common in a
number of municipalities; but, among other problems, overlapping jurisdiction remains and an.
opportunity for severe disfunction exists. For example, does the Water Department discuss its
requirements for long term capital improvements with the Public Facilities Committee (planning
the improvement) or with the Finance Committee (funding the improvement)? Probably both.
Community Development would have an interest also since such an improvement may meet
existing development needs or future needs of a project long stalled by inadequate facilities. Do
Growth Management and Economic Development Committees have a relationship to oversee the
plans of a major subdivision or should that rest entirely with Planning and Development?
Because most functions clearly cut across committee jurisdictions, at least those functions that
have some long term significance, the problem with overlapping would remain. Change in name
only has no effect upon purpose and, thus, na effect upon overlapping.
The overlapping and jurisdictional issue may be due in part to having six committees and
only two Board members an each committee. An example of this may be a Trustee who sits on
the Finance Committee but not on the Public works Committee. If a major capital expense is
discussed and adopted at the Public Works Committee but its funding runs contrary to the
existing fiscal needs of the Village, its approval by the entire Board is going to be troublesome
because the member. of the Finance Committee may give greater priority to other projects.
Reducing the number of committees and adding a third Trustee to each remainder
committee enhances the Board's ability to reduce overlapping, advances the dissemination of
necessary information and initiates the construction for a workable consensus. The various
committee functions become sharpened in scope and mare manageable; the membership, and
hence the understanding of information, becomes expanded; and, consensus building can begin.
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But the reduction in the number of committees and adding members to the remainder also
bring a new set of problems. How shall the Chairmen of committees be chosen? By seniority an
the Board? By custom? By prior experience? Should Trustee Dement be the Chair of the Finance
Committee since he has been on that committee (Ways and Means) for a number of years and
understands the financial workings of the Village? Should Trustee O'Connell be the Chair for the
Planning and Development Committee since she has prior experience as a member with the Plan
Commission? Should we operate as the Federal government does and permit the senior elected
officials with the longest tenure effectively choose their committees? If we reduce the number of
total committees, say four committees rather than six, how do we determine which duly elected
official is without a Chair? If the Mayor nominates other Village Officers should his position
organize committee assignments? There are procedural problems here and I sense a dispute of
jurisdiction.
Aside from the issues of who should be where and why, reducing the number of
committees does not eliminate overlapping. Adding committee members initiates the possibility
of a consensus but does not create it. Additionally, if we continue with the system of multiple
committees, and make no other changes, we actually increase the committee work load. If there
were a hundred items of work for six committees before and the work load remains the same, the
average work load among four committees is now increased by a factor of 25%. More work for
fewer resources.
Findings
In the short time that I have been with the Village, but filtered through my seventeen
years of municipal experience, I observe the following:
A) Your present system of Committees is inefficient. It is a time consuming measure that
seldom produces clear directions and requires that final action be taken by the entire Board.
B) The Village Board is bagged dawn in day to day detail and seldom has the opportunity to
effectively explore overall policy.
C) Your clients, whether they are developers, local businesses or citizens, find the present
system cumbersome, confusing and prolonged.
D) The limited staff is stretched thin in achieving committee needs for information and
attending too many meetings.
E) Elected officials do not receive all the same information or operate in a similar working
environment.
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A Goal
I propose a two fold solution. Eliminate multiple committees altogether; and, focus upon
policy issues rather than day to day details.
Our oaths of office command the standard of upholding the Constitution and the faithful
discharge of the duties of our particular office. Unstated, but assumed within triat oath is the
management and advancement of the Public Trust. Inherent in the Public Trust is the mandate
that public business be pursued legally, openly, forthrightly, and with an adequate balance for the
short and long term benefit to the public's interest. In that pursuit, our individual objectives are
clearly secondary to that of the public's. While it is often difficult to articulate the public interest
coherently, each of us has a sense, or feel, for what is fair and equitable as opposed to burdening
and self serving. Whatever system we adopt must in the end help us articulate the public's
interest and advance the Public Trust.
On a temporary basis, and I stress TEMPORARY, The Village Board can experiment
with a Committee of the Whole system that meets on the off-Mondays, limits and concentrates
its Agenda to policy matters and delegates ordinance enforcement to the appropriate bodies. The
Board could consider an Ordinance establishing a Committee of the whole (COW) for twelve
months from the date of its adoption and requiring that at the end of the twelve month
experiment a formal evaluation be conducted by the Board to see if the trial system has met its
objectives.
I can envision the following objectives of a COW system, and the Board members may
want to add or clarify these objectives:
A) Does the entire Board gain a better or worse understanding of community issues when
compared to the present system?
B) Daes the COW system build or hinder consensus?
C) Is the Board's valuable public time sufficiently allocated to identifying and managing
major policy issues?
D) Is the staffs expertise and the Advisory Board's and Commission's work correctly
utilized in providing the Board with policy background and options?
E) As a unit, does the Board better utilize the experience of its own members?
Within a COW system all issues and all data are presented and shared with the elected
officials equally. All discussion and deliberation take place at a regularly scheduled evening
meeting and each elected official has the opportunity far equal input. The power of the Board to
act as a unit is simplified, its actions distinct, clear and understandble to staff, clients and the
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• public. The number of public gatherings and meetings is greatly reduced, review processes
consolidated and the use of tax revenues focused upon community issues rather than day to day
details.
Disadvantages of the COW include the possibility of greater public conflict among
elected officials, a distancing from same of the day to day Village operations and subsequent
contact with individual staff members responsible for those operations, and a possibility of
longer public meetings.
It is this last disadvantage, longer public meetings, that drives the second goal of this
recommendation ... the Board focus upon community policy issues rather than day to day detail.
This change requires the discipline to demand clear analysis and direction from Advisory Boards
and staff; and, in turn, to trust their evaluations and recommendations as they relate to our plans,
goals and our local ordinances. And, where our plans, goals and ordinances are deficient they
need to be outlined, redefined and officially adopted. The Board sets overall policy direction; the
staff and Advisory Boards carry out that policy. If they cannot or do not carry out the legally
adopted policy then these people should be changed. If our policies do not legally and clearly
adopt our goals, they too should be changed. We cannot expect performance or achievement
unless we determine and communicate direction and standards by which we will measure that
achievement.
For example, if development within our community has not satisfied our expectations it is
not because we have not expended sufficient time, effort and money. A new development
brought to us is reviewed nine times from concept plan to final plat. A business property that is
currently zoned properly still appears before us several time for site plan approval. On the one
hand we state publicly that we want good development and need to shift the tax burden away
from existing residential properties. On the other hand, our procedures and codes transmit quite
another idea, readily consumes private and public finances, and delineate uncertainty to all.
I recommend that the Board better utilize its limited resources by establishing realistic
goals and procedures, remand their enforcement to the appropriate bodies while clearly holding
them accountable and emphasize an outlook as to how this community relates to the region. A
COW system can and does provide this venue. Twice a month the Board as a whole will discuss
such issues.
The Board may have a need for some individual Trustee liaison assignments to the
School District, the Chamber of Commerce, regional Planning Agencies, or specific assignments
that are topic related as with electric deregulation, area land fills, pending legislation in
Springfield and system wide transportation needs.
There are time and issues that do dictate the need for Ad Hoc Committees. Specifically,
at budget time each Spring the Board may find a Budget Committee useful in processing the
volumes of data into one coherent document. Similarly, the review and modification of the
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Comprehensive Plan or the local Transportation Plan may be best served by a Board Ad Hoc
Committee. But in each such instance there should be three members assigned and they should
reflect all Board interests as a real attempt to build consensus and satisfy the Public Trust.
Recommendation
1 recommend that the Mayor and Board of Trustees instruct the Village Administrator to
have an Ordinance prepared to temporally adopt a Committee of the Whole system with an
evaluation to be conducted at the end of the one year trial. The ordinance should be scheduled for
the next available Board Agenda for discussion and consideration.
Respectfully submitted, T. L. Burghard
cc All Department Directors
Village Attorney
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