HomeMy WebLinkAboutMinutes - 12/03/2018 - City CouncilCity Council
Meeting Minutes
December 3, 2018
Page 1
City Council Meeting
December 3, 2018
Call to Order
Mayor Wayne Jett called the regular meeting scheduled for December 3, 2018 of the McHenry
City Council to order at 7:00 pm in the McHenry City Council Chambers, 333 S. Green Street,
McHenry, IL.
Roll Call
Deputy Clerk Meadows called the roll. Roll call: Members present: Alderwoman Condon,
Alderman Devine, Alderman Mihevc, Alderman Curry, Alderman Schaefer, Alderman Glab,
Alderman Santi and Mayor Jett. Others present: Attorney McArdle, Administrator Morefield,
Director of Public Works Schmitt, Director of Community Development Polerecky, Finance
Director Lynch, Director of Parks and Recreation Hobson, Director of Economic Development
Martin and Chief of Police Birk.
Pledge of Allegiance
Mayor Jett proceeded to lead those present in the Pledge of Allegiance.
Public Hearing: concerningthe City of McHenry 2018 Proposed Tax Levy Ordinance in the amount
of $4,618,786. Representing a 0% increase above the 2017 Tax Levy extension.
Mayor Jett called the public hearing to order at 7:02 p.m. He asked if anyone in the audience
wished to comment on this matter. Those in attendance offered no comments. A Motion was
made by Alderman Santi and seconded by Alderwoman Condon to close the public hearing.
Roll call: Vote: 7-ayes: Alderman Santi, Alderman Mihevc, Alderman Glab, Alderman Schaefer,
Alderman Curry, Alderman Devine and Alderwoman Condon. 0-nays, 0-abstained. Motion
carried.
Motion to adopt an Ordinance far the Levy of Taxes for the Year 2018 in the amount of
$4,618,786.
Mayor Jett asked if any of the Council Members had any comments on the proposed tax levy
ordinance under consideration.
Alderman Glab stated that he was proud thatthe City Council has been able to keep the property
tax levy flat for many years.
Alderman Curry thought that it was important to note that even though the City continues to
freeze or reduce the City's portion of the tax bill other factor such the Equalized Assessed Value
(EAV) which has increased by 6.8% and other taxing bodies impacts the calculations used to
determine the annual property taxes.
CityCouncil
Meeting Minutes
December 3. 2018
Page 2
Alderwoman Condon commented on the fact that she continues to support keeping the tax levy
flat. However, she would encourage future Councils to be cautious and mindful of the continual
increases in operational expenses, maintenance costs and the need for infrastructure
improvements. Alderwoman Condon noted that she would not want a revenue shortfall to
impact the quality of life in the community.
There being no further discussion, a Motion was made by Alderman Glab and seconded by
Alderman Curry to adopt an Ordinance for the Levy of Taxes for the Year 2018 in the amount
of $4,618,786 representing a 0% increase above the 2017 Tax Levy extension. Roll call: Vote: 7-
ayes: Alderman Glab, Alderman Curry, Alderman Santi, Alderman Schaefer, Alderman Mihevc,
Alderman Devine and Alderwoman Condon. 0-nays, 0-abstained. Motion carried.
Public Comment
Mayor Jett asked if anyone in the audience wished to address the Council Members. Those in
attendance offered no comments.
Consent Agenda:
Motion to Approve the Following Consent Agenda Items:
A. Resolution establishing the 2019 City Council Meeting Schedule;
B. November 26, 2018 City Council Meeting minutes;
C. Payment of Bills in the amount of $76,339.12,
Mayor Jett asked if any of the Council Members wished to remove any items from the consent
agenda for separate consideration. The Council Members offered no comments.
There being no further discussion on the motion, a Motion was made by Alderman Santi and
seconded by Alderman Schaefer to approve the consent agenda items A-C as presented. Roll
call: Vote: 7-ayes: Alderman Santi, Alderman Schaefer, Alderman Glab, Alderman Curry,
Alderman Mihevc, Alderman Devine and Alderwoman Condon. 0-nays, 0-abstained. Motion
carried.
Individual Action Item Agenda:
Motion to adopt Ordinances for the abatement of real estate taxes levied for the 2018 Tax Levy
Year for the following bond issues: General Obligation Bonds (Recovery Zone &Build America)
Series 2010B, $413,120.00; General Obligation Bonds (Alternate) Series 2010C, $448,440.00;
General Obligation Bonds (Alternate) Series 2012, $207,332,50; General Obligation Bonds
(Refunding) Series 2013, $36,370.00; and General Obligation Bonds (Refunding) Series 2015,
$582,878.76.
Finance Director Lynch reported
that the City
of McHenry has issued a variety
of bonds backed
by the full faith and credit of the
municipality.
This requires that property taxes
be levied by the
Ity council
Meeting Minutes
December 3, 2018
Page 3
County Clerk. However,
the
City's intentions are to
abate these taxes through the Country Clerk's
Office annually through
the
abatement ordinances
under consideration.
Mayor Jett asked if anyone in the audience wished to comment on the matter under
consideration. Those in attendance offered no comments.
There being no further discussion on the motion, a Motion was made by Alderman Curry and
seconded by Alderman Glab to adopt the ordinances for the abatement of real estate taxes
levied for the 2018 Tax Levy Year for the following bond issues: General Obligation Bonds
(Recovery Zone & Build America) Series 2010B, $413,120.00; General Obligation Bonds
(Alternate) Series 2010C, $448,440.00; General Obligation Bonds (Alternate) Series 2012,
$207,332,50; General Obligation Bonds (Refunding) Series 2013, $36,370.00; and General
Obligation Bonds (Refunding) Series 2015, $582,878.76. Roll call: Vote: 7-ayes: Alderman Curry,
Alderman Glab, Alderwoman Condon, Alderman Devine, Alderman Mihevc, Alderman Schaefer
and Alderman Sant!. 0-nays, 0-abstained. Motion carried.
Discussion Only Items:
Leopardo Companies, Inc. regarding addressing capital infrastructure needs through the
implementation of energy efficiency improvements.
Administrator Morefield introduced Leopard's Principal members who were present to provide
the Council Members with a presentation regarding capital creation strategies. Chief Business
Officer, Rob Voilrath and V.P. of Engineering, Mr. Drake Wahlers initiated the presentation. They
began by thanking Staff for their efforts in gathering all the data required for them to draft a
scope of work regarding energy and operational cost saving strategies,
Mr. Vollrath and Mr. Wahlers continued on to discuss a portion ofthe proposal regarding interior
and exterior building lighting, including park lighting fixtures. They noted that LEDs have the
potential of reducing lighting energy cost by 40-50%. In addition, the LED lighting fixtures reduce
maintenance cost as their lifespan is twenty years and there is no need for reflectors and
diffusers.
They went on to note that one of the more critical needs is to address the older HVAC equipment
throughout the City. They noted that multiple systems are near the end of their useful lifecycle
and should be replaced with higher efficiency equipment which also requires less maintenance.
Mr. Wahlers commented on the Cites current salt bin status. He noted that the road salt is
currently being stored uncovered on a concrete pad at the Wastewater Treatment Plant site. He
reported that Leopardo recommends building a new salt dome at the Public Works facility by
relocating the new dome to Public Works to increase convenience and efficiency.
City Council
Meeting Minutes
December 3, 2018
Page 4
Mr. Vollrath discussed the City's existing fleet conditions. He reported that the City owns and
maintains a fleet of 107 vehicles ranging in age from 1 to 24 years from a variety of
manufacturers, of which 52 vehicles are over 10 years old.
Over the last 6 years only 31.6% requests for newvehicles by all the departments combined have
been approved. Mr. Vollrath continued on to discuss vehicle replacement costs which in total
would be estimated at a cost $6,719,410. Mr. Vollrath reported that Leopardo recommends the
City implement a fleet management program to include vehicle leasing. He noted that the
features of the open-ended leasing product are characterized by:
• Improved cash flow
• No mileage restrictions or wear and tear charges
• Flexible financing options
• Flexibility of ownership
• Customized terms for use and type of vehicle
• Retention of ownership rights
• Aftermarket can be included in lease
• Vehicles delivered "road ready"
• Initial registration and annual license renewal can be included
Leopardo Principals finished their presentation with a discussion regarding entering into a solar
power purchase agreement. They reported that a power purchase agreement is a financial
agreement in which a third- party developer provides design, permitting, and installation of a
solar array on City own property. Through this agreement, the City purchases the electricity from
the developer while the developer operates and maintains the array. These agreements typically
last between 10 and 25 years. Upon expiration of the agreement, the City owns the solar array.
This arrangement will yield a utility savings of $121,531 per year with an additional $20,000 of
revenue through the lease of the property.
Alderwoman Condon noted that Council recently had another solar power presentation in which
the agreement's term would have been 35 years.
Alderman Curry reported that he prefers this proposed site over the previous solar site.
There was some discussion on the proposal. Staff identified that additional information regarding
the fleet management program would be gathered and Council Members concurred that a Letter
of Intent will be placed on a future agenda for Council consideration.
Solicitation of proposals for the redevelopment of the Central Wastewater Treatment Plant
(CWWTP) site.
Administrator Morefield reported that as Council is aware the Central Wastewater Treatment
City Council
Meeting Minutes
December 3, 2018
Page 5
Plan has been decommissioned and at the end of this calendar year the site is available for
redevelopment. The City received a formal appraisal from Harrison & Associates, Inc. which
identifies, with certain assumptions, a land value of $1,268,000 and a boat launch/slip value of
$223,000. The demolition cost of the site is estimated between $1.5 and $2 million.
Alderman Curry questioned if the demolition estimate was accurate. Administrator Morefield
stated that Staff would verify the estimate and report back.
Alderman Santi commented on the section of the appraisal referencing Waukegan Road. He
noted that Waukegan Road is reportedly a private road which is used to access D's Marine and
the wastewater plant components of the subject property. Director Martin reported that
Waukegan Road is subject to a prescriptive easement for continued use as an access road for all
properties that front on it.
Alderman Glab noted that originally when the Council Members chose not to rebuild the WWTP
on the site, preliminary plans were drafted depicting potential public and private uses. He
recommended that Staff present the original preliminary site plan to the full Council.
There was some discussion with respect to the revenue that is generated by the boat slip rentals.
Alderman Giab asked Staff to report back on the annual average boat slip revenue and any annual
property tax incurred.
Alderwoman Condon also recalled previous reviewing preliminary site plans depicting potential
uses of the property. She recommended staff dust -off the original preliminary plans for Council's
review.
Administrator Morefield noted that the said property is zoned C-4 which allows the ability to be
creative when drafting land use plans.
With the gathering of additional information as identified, this matter along with aRequest-for-
Proposal (RFP) and a Request for-Quacations (RFQ) will be placed on an upcoming Council
agenda.
Executive Session:
Motion to enter into Executive Session to conduct the Semi -Annual Review of Executive
Session minutes as permitted by S ILCS 120/2 (C) (21).
Mayor Jett stated at this time he would entertain a motion to enter into executive session to
discuss approval and release of executive session minutes as permitted by 5 ILCS 120 (C) (21)
with action to follow.
City Council
Meeting Minutes
December 3, 2018
Page 6
A Motion was made by Alderman Schaefer and seconded by Alderman Devine to enter into
executive session to conduct the semi-annual review of executive session minutes as permitted
by 5 ILLS 120 (C) (21) with action to follow. Roll call: Vote: 7-ayes: Alderman Schaefer, Alderman
Santi, Alderman Curry, Alderman Glab, Alderman Mihevc, Alderman Devine and Alderwoman
Condon, 0-nays, 0-abstained. Motion carried.
The Council Members along with Administrator Morefield, Attorney McArdle, Director Hobson
and Deputy Clerk Meadows entered into executive session 8:25 p.m.
Reconvene/Roll Call:
The Council Members along with Administrator Morefield, Attorney McArdle, Director Hobson
and Deputy Clerk Meadows returned to the public meeting at 8:31 pm. A Motion was made by
Alderman Sant! and seconded bvAlderman Devine to reopen the public meeting. Roll call: Vote:
7-ayes: Alderman Schaefer, Alderman Sant!, Alderman Glab, Alderman Curry, Alderman Mihevc,
Alderman Devine and Alderwoman Condon. 0-nays, 0-abstalned. Motion carried.
Motion to pass a Resolution a) approving Executive Session meeting minutes as presented;
b)authorizing the release of Executive Session meeting minutes as presented; and, c)
destruction of any Executive Session recordings that exist more than 18 months and for which
the minutes of that meeting have been approved.
There was some discussion regarding the retention dates of the executive session recordings.
Staff will investigate this matter and report back. A Motion was made by Alderman Curry and
seconded by Alderman Glab to table this matter until the December 17" City Council meeting.
Roll call: Vote: 7-ayes: Alderman Curry, Alderman Glab, Alderman Santl, Alderman Schaefer,
Alderman Mihevc, Alderman Devine and Alderwoman Condon. 0-nays, 0-abstained. Motion
carried.
Staff Reports:
Director Hobson provided the Council Member with an update on the 2019 Shamrocks the Fox
event. Administrator Morefield noted that this year Staff had partnered with various community
organizations to coordinate all major special events.
Mayor and City Council Comments:
Mayor Jett announced that Hub Market is scheduled to open this upcoming weekend all those
involved are very excited.
City Council
Meeting Minutes
December 3, 2018
Page 7
Alderwoman Condon reported that the Community Development Committee is scheduled to
meet on Monday, December 101h at 7:00 pm here in the Council Chambers,
Alderman Curry reported that the Finance and Personnel Committee has drafted a
recommendation with respect to additional revenue sources.
Adjournment:
There being no further public business to discuss, a Motion was made by Alderman Santi and
seconded by Alderman Schaefer to adjourn from the public meeting at 8:38 p.m. Roll call: Vote:
7-ayes: Alderman Santi, Alderman Schaefer, Alderman Glab, Alderman Curry, Alderman Mihevc,
Alderman Devine and Alderwoman Condon. 0-nays, 0-abstained. Motion carried.
Respectfully submitted,
Debra Meadows
Mayor D pu`�ty�lerk