HomeMy WebLinkAboutMinutes - 06/06/2011 - City Council REGULAR MEETING
JUNE 6, 2011
Mayor Low called the regularly scheduled June 6, 2011 meeting of the McHenry City
Council to order at 7:30 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer,
Blake, Wimmer, Peterson, and Condon. Absent: None. Also in attendance were City
Administrator Black, Deputy City Administrator Martin, Assistant City Administrator Hobson,
City Clerk Jones, City Attorney McArdle, Construction and Neighborhood Services Supt. Regner,
Parks and Recreation Director Merkel, Chief of Police Jones, City Engineer Pieper.
PUBLIC INPUT SESSION
There was no one who signed in to speak during the Ten Minutes of Public Input.
CONSENT AGENDA
Motion by Wimmer, seconded by Santi,to approve the Consent Agenda as presented:
A. Purchase of vehicles for the Public Works Street Division: Wheel Loader, $157,865.75; and Dump Truck with Snow
Plow,$119,079.00;
B. City Council Minutes:
May 16,2011 regularly scheduled meeting;
May 23,2011 regularly scheduled meeting;
C. Picnic Permits;
D. List of As-Needed Checks
BLUE CROSS BLUE SHIELD O 121,212.25
._. COOK COUNTY SHERIFF'S TR 100.00
FOP UNITS I/II 1,824.00
HOME DEPOT CREDIT SERVIC 745.82
HOME STATE BANK 1,375.00
IUOE, LOCAL 150 2,221.87
JOSEPHSON INSTITUTE 245.92
KLEAN, KENNETH P 75,873.28
MISS MCHENRY COUNTY QUEE 125.00
NATIONAL GUARDIAN LIFE I 42.33
NCPERS GROUP LIFE INS. 256.00
NORTH SUBURBAN WATER 45.00
NORTHEASTERN IL REGIONAL 30,306.27
PETTY CASH FUND 126.60
POSTMASTER MCHENRY IL 4,625.27
PRE-PAID LEGAL SERVICES 142.45
RESERVE ACCOUNT 1,374.74
UNITED PARCEL SERVICE 123.85
UNUM 1,632.35
GRAND TOTALS 242,398.00
FUND TOTALS
GENERAL FUND 43,105.26
PAGEANT FUND 125.00
MCHENRY AREA CHARACTER COUNTS 245.92
DEBT SERVICE-1997A FUND 1,375.00
WATER/SEWER FUND 461.29
EMPLOYEE INSURANCE FUND 121,212.25
POLICE PENSION FUND 75,873.28
TOTALS 242,398.00
E. List of Bills:
AALTO, BRIAN 160.42
1 ACE TOWING & RECOVERY 71.00
Regular Meeting
Page 2
June 6,2011
ADAMS ENTERPRISES INC, R 197.62
ADAMS OUTDOOR POWER EQUI 13.90
ADAMS STEEL SERVICE INC 545.60
ADAMS, JOHN 318.00
AFTERMATH INC 95.00
AMELIO, ROBERT 376.00
AT&T 3,155.46
AUTO TECH CENTERS INC 406.00
AUTO TRUCK GROUP 84.56
BALDUS COMPANY, THE 5,400.00
BANK OF NEW YORK MELLON 218,259.41
BLUIS, JENNIFER 23.33
BOONE CREEK GOLF ACADEMY 645.00
BOXX THIS INC 54.80
BREMER, CURTIS H 2O8.00
BRENNAN, DAN 1,120.00
BUNCH DISTRIBUTING INC 139.92
BUSS FORD SALES 283.15
CARDIAC SCIENCE CORP 3,890.16
CAREY ELECTRIC 1,835.00
CDW GOVERNMENT INC 1,148.30
CENTEGRA OCCUPATIONAL HE 224.42
CHICAGO INTERNATIONAL TR 152.68
CLA-VAL CO 820.80
COMED 27,016.20
CONSERV FS 1,044.40
CONSTELLATION NEWENERGY 46,011.74
CRESCENT ELECTRIC SUPPLY 2,064.42
CURRAN CONTRACTING COMPA 3,306.85
DELISI, PHIL 250.00
DIVE CINCINNATI INC 32.00
DONS CLEANERS 12.75
DREISILKER ELECTRIC MOTO 377.13
DURA WAX COMPANY INC, TH 54.15
ED'S RENTAL & SALES INC 108.43
EXIT REALTY 273.37
EZEL, KATHLEEN 130.00
FAMILY TAILOR SHOP 86.50
FIRST STUDENT CORP 1,863.75
FISCHER BROS FRESH 509.25
FOERSTER, JEFFERY S 86.00
FORE GOLF LLC 340.00
FOWLER, JEFF R 138.00
FOXCROFT MEADOWS INC 1,170.00
G IMPRESSIONS INC 185.55
GLUTH, GAY 26.66
GOLD MEDAL PRODUCTS 312.19
GRAINGER 142.43
GREAT LAKES FIRE & SAFET 15.75
HAHN, JIM 106.87
HANSEN'S ALIGNMENT, DON 70.00
HARMENING, CHRISTOPHER M 299.00
HOWARD, LAURIE 46.66
ICMA 584.85
ILLINOIS CITY/COUNTY MAN 269.75
ILLINOIS STATE TREASURER 3,199.55
KASPAR, SUSAN 72.66
KIMBALL MIDWEST 186.66
KURZ JR, ALFRED P 69.96
LIFEGUARD STORE INC, THE 100.00
MAACO COLLISION REPAIR & 1,000.00
MAZZUCA, JOE 230.00
MCAULIFF & SEMROW PC 1,087.50
MCH COUNTY DEPT OF HEALT 45.00
MCHENRY ANALYTICAL WATER 60.00
MCHENRY AREA CHAMBER OF 450.00
MCHENRY COUNTY COLLECTOR 17,713.44
MCHENRY COUNTY COUNCIL 0 160.00 i
MCHENRY FAVORITE SPORT C 39.00
MCHENRY FIRESTONE 700.11
Regular Meeting
Page 3
June 6,2011
MCHENRY POWER EQUIPMENT 42.55
METROPOLITAN INDUSTRIES 1,991.62
MID AMERICAN WATER OF WA 455.00
MOLL, DALE 8.00
MOORE, KEVIN 127.50
MORTON SALT 53,235.11
NICOR GAS 2,467.80
NORTH EAST MULTI-REGIONA 11,565.00
NORTH SUBURBAN WATER 45.00
NORTHWEST TRUCKS INC 167.49
PARKSON CORPORATION 146,000.00
PEPSI BEVERAGE COMPANY 202.94
PETROLIANCE LLC 7,752.36
PETTIBONE & CO, P F 172.98
PIONEER MANUFACTURING CO 153.95
PITEL SEPTIC INC 600.00
PRECISION SERVICE & PART 36.00
PTAK, GLORIA 60.00
RADICOM INC 410.00
REBARS & STEEL COMPANY 8.00
REINDERS INC 389.33
RIETESEL, BYRON 60.00
ROMANO, JENNIFER 26.66
SERVICEMASTER BY DIDIER 576.00
SHERMAN MECHANICAL INC 1,437.50
SHERWIN INDUSTRIES INC 220.88
SIRCHIE FINGER PRINT LAB 328.28
SMITH ECOLOGICAL SYSTEMS 22,550.00
SPORTS SUPPLY GROUP INC 1,229.51
ST PAULS EPISCOPAL CHURC 206.70
STAPLES ADVANTAGE 281.41
STERWERF, JASON 92.00
SWIFT CO INC, JOHN S 2,718.00
TAPCO 70.18
THELEN MATERIALS LLC 336.70
THIRD MILLENNIUM ASSOCIA 6,253.86
TRAFFIC CONTROL & PROTEC 142.20
TROPIC STOP TAN 30.00
ULTRA STROBE COMMUNICAIT 41.95
USA BLUEBOOK 401.30
VACULA, JOHN T 2,000.00
WALMART COMMUNITY 131.34
WASTE MANAGEMENT OF WI P 7,391.95
XYBIX SYSTEMS INC 475.00
ZAHN, DAN 618.00
GRAND TOTALS 625,187.11
FUND TOTALS
GENERAL FUND 94,084.05
MOTOR FUEL TAX FUND 53,235.11
DEVELOPER DONATION FUND 7,066.52
DEBT SERVICE-1997A FUND 57,802.50
CAPITAL IMPROVEMENTS FUND 5,400.00
WATER/SEWER FUND 223,973.73
UTILITY IMPROVEMENTS FUND 168,550.00
MARINA OPERATIONS FUND 10,640.71
RISK MANAGEMENT FUND 53.90
INFORMATION TECHNOLOGY FUND 1,181.04
POLICE PENSION FUND 3,199.55
TOTALS 625,187.11
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Regular Meeting
Page 4
June 6,2011
ORDINANCE AUTHORIZING MINOR VARIANCE TO ALLOW GARAGE EXPANSION —4220 SOUTH
STREET, BRYAN AND MEGAN PRICE
Deputy Administrator Martin stated a request was submitted by Bryan and Megan Price
for a minor variance to allow the expansion of the garage on their property located at 4220
South Street. The previous property owners had expanded the kitchen area into the existing
one car garage which prohibits use of the garage for vehicle storage, due to its reduction in
usable garage space. The applicants would like to expand the usable garage space to allow its
use for the storage of a vehicle within its confines. Deputy City Administrator Martin noted the
plat of survey of the subject property which was platted in 1953 includes a 30-foot front yard
building setback. The applicants require a 5 foot front yard setback variance to accommodate
their request.
Deputy Administrator Martin noted the applicants presented their request before the
Planning and Zoning Commission and received a unanimous recommendation of approval. Staff
has prepared an ordinance allowing the 5 foot front yard setback variance for Council
consideration.
Motion by Condon, seconded by Wimmer, to accept Staffs recommendation to pass an
ordinance granting a reduction in front yard setback from 30 feet to 25 feet to allow the
expansion of the existing one car garage as presented.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
REQUEST FOR ANNUAL COUNTRY MEADOWS CRAFT SHOW AND DOWNTOWN WINE
FESTIVAL, SEPTEMBER 18, 2011— MCHENRY AREA CHAMBER OF COMMERCE AS FOLLOWS:
1. USE OF VETERANS MEMORIAL PARK;
2. POSTING TEMPORARY SIGNS IN MUNICIPAL RIGHTS-OF-WAY ADVERTISING THE
EVENT;
3. SPECIAL EVENT LIQUOR LICENSE
Assistant Administrator Hobson stated the McHenry Area Chamber of Commerce has
request assistance in hosting the annual Country Meadows Craft Show and Downtown Wine
Festival on September 18, 2011. This is the second year for the joint event to be scheduled at
Veterans Memorial Park. The Chamber is seeking permission to post temporary advertising
signs in the municipal rights-of-way and a special event liquor license for the event. Staff
supports the request and recommends approval as presented.
Motion by Schaefer, seconded by Blake, to accept Staffs recommendation regarding the
McHenry Area Chamber of Commerce request to host the annual Country Meadows Craft Show
and Downtown Wine Festival on September 18, 2011:
Regular Meeting
Page S
June 6,2011
1. to approve use of Veterans Memorial Park;
2. to allow posting of temporary advertising signs in municipal rights-of-way as presented;
3. to grant a special event liquor license for the event.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
REQUEST FOR ANNUAL JAYCEES DAY FOURTH OF JULY EVENT,JULY 2, 2011:
1. USE OF PETERSEN PARK;
2. CITY SUPPORT SERVICES;
3. WAIVER OF ALL ASSOCIATED FEES FOR THE EVENT;
4. AWARD OF CONTRACT FOR FIREWORKS PROGRAM IN THE TOTAL AMOUNT OF
$1S,000—MELROSE PYROTECHNICS
In attendance were Chuck Tonyan and Kathryn Spranger of the McHenry Area Jaycees.
Assistant Administrator Hobson stated the City's 2011/2012 Fiscal Year Budget includes
a $5,000 contribution toward the 2011 fireworks display scheduled for July 2, 2011. The total
amount of the event indicated in the requests for proposals was $15,000 which included a
$10,000 contribution by the McHenry Area Jaycees. The City also provides support services
from Parks, Public Works, and Police for the event. As the event is a partnership between the
City and the Jaycees, Staff recommends waiver of associated fees.
Assistant Administrator Hobson noted requests for proposals were sought from area
fireworks companies. The only proposal submitted was by Melrose Pyrotechnics.
In response to Alderman Schaefer's inquiry, Assistant Administrator Hobson stated it
would be a group consensus to delay the event until Sunday, July 3rd, a predetermined rain
date.
Mayor Low stated she truly appreciated the Jaycees contributions towards the event.
Mr. Tonyan thanked the City for its participation in the event and presented a check in
the amount of $10,000 to City Administrator Black. He stated he is looking forward to another
great show this year.
Motion by Schaefer, seconded by Condon, to accept Staff's recommendation regarding
the McHenry Area Jaycees request for its Jaycees Day Fourth of July event scheduled for July 2,
2011 with a rain date of July 3, 2011 as follows:
1. Use of Petersen Park;
2. City support services;
3. Waiver of all associated fees for the event;
Regular Meeting
Page 6
June 6,2011
4. Award of contract for fireworks program in the total amount of $15,000 — Melrose ~
Pyrotechnics including the City portion of the contract in the amount of$5,000 for the
event.
Voting Aye: Santi, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: Glab.
Absent: None.
Motion carried.
REQUEST FOR ECONOMIC INCENTIVE AGREEMENT: MCHENRY COMMONS SHOPPING CENTER
Deputy Administrator Martin stated on April 25, 2011 a conceptual sales tax rebate
proposal was presented to Council for discussion. Regency Centers, owner of the northern half
of the McHenry Commons Shopping Center, has approached Staff regarding an economic
incentive agreement for its shopping center. The agreement provides for a maximum sales tax
rebate of $1,000,000 over a 20-year term. The agreement does not include any portion of the
one-half percent home rule sales tax implemented on January 1, 2011.
Deputy Administrator Martin noted Regency Centers is represented by Matt Hindy and
the owner's attorney, Harold Francke, who are present to respond to Council questions and
comments this evening.
Alderman Wimmer inquired what would happen if Regency Centers sold the property.
Mr. Hindy responded if Regency sells, the agreement could be assigned to a third party
purchaser. Alderman Wimmer inquired if Staff would be provided with a list of all
improvements made to the property relating to the reimbursement provisions of the contract.
Mr. Hindy responded Regency Centers would. be happy to share the exact costs of the
improvements once the numbers have been determined. He noted the size of the area to be
renovated for the proposed tenant, Hobby Lobby, is 76,000 square feet. He stated the
anticipated cost to renovate the entire building is anticipated at $3.1 million. The cost to
improve the Hobby Lobby portion of the building is approximately$1.5 million.
Alderman Peterson inquired how the tenant allowance portion of the agreement was
determined. Mr. Hindy responded the tenant allowance is based upon the area of the building
they will occupy. Tenant allowance can be used solely for hard costs which include actual
building improvements and not for such items as inventory, etc.
Alderman Condon expressed her belief that Hobby Lobby will do well in the community.
She noted she has some concerns about the $1 million sales tax rebate. She stated she
understands Regency's risk, but the City is at risk as well. Alderman Condon stated she wants to
help the business succeed, but believes a 50/50 cost share of the improvements would be more
equitable. She noted it is in Regency's best interest to have a tenant on the property. She
expressed concern regarding the 20-year term of the proposed rebate agreement as well as the
$1 million figure to be rebated. Alderman Condon stated she wants to work with Regency but
Regular Meeting
Page 7
June 6,2011
believes the $1 million figure is too high. Mr. Hindy stated if this agreement does not go
through, the contract would have to be re-negotiated with Hobby Lobby.
Alderman Condon stated her belief that Hobby Lobby is a great store, but she has no
real knowledge of how long it would take to reach the $1 million rebate. Mr. Hindy stated
Hobby Lobby is a fiercely private company which has been unwilling to share that information.
Alderman Condon restated her belief that a $1 million rebate is too much.
Alderman Santi inquired as to the area of the Hobby Lobby portion of the building. Mr.
Hindy stated the size of the store is 52,000 square feet. Alderman Santi expressed concern
regarding the percentage of the City's proposed participation in the improvements. Mr. Hindy
stated $600,000 includes work on the Hobby Lobby portion of the building, not solely the HVAC
costs.
Alderman Glab stated he has a problem with taxpayers paying for roof repairs, etc, to
the premises. He believes $1 million is too high of a contribution. He stated he has concerns
with some of the proposed improvements that are to be made utilizing taxpayer dollars.
Mr. Francke stated he understands Council's concerns. He wants Council to be
comfortable approving the request. He noted initially the request was for $1.1 million and
Regency has already agreed to certain concessions in order to reduce the request. He stated
the City's analysis has to be what is being leveraged. For instance, what are the City dollars
being invested it? He opined this is a good project. He would be happy to continue to negotiate
with the City regarding a mutually acceptable agreement.
Mr. Hindy stated Regency is at the point with Hobby Lobby that they need to know what
direction the Council is willing to proceed.
Alderman Schaefer requested clarification regarding the figures presented. Mr. Hindy
stated the rebate would solely cover the cost of improvements to get the tenants into the
building.
Alderman Condon stated in her mind the $1 million is still too high. She recognizes the
benefit to the City of having a tenant in the building. She would consider rebating half of the
$1.78 million, approximately $880,000. She does not care for the 20-year term of rebate and
would prefer a 13-year term. She would like to work with Regency but believes some
concessions should be made.
Alderman Peterson stated he still sees it as the redevelopment of the whole shopping
center in that particular area of town. He sees the incentive agreement as an economic
development tool. It is good for the City to have this particular retailer come into town.
Regular Meeting
Page S
June 6,2011
Alderman Schaefer concurred with Alderman Peterson. He stated he would like to see
the improvements itemized in writing. He noted 100% of$0 is $0.
Mr. Hindy responded to Alderman Peterson, stating Regency's investment ends at the
Rent-A-Center.
Attorney McArdle inquired of Mr. Hindy if it was correct that the lease with Hobby
Lobby is not contingent upon the approval of the incentive agreement with the City. And, if the
Hobby Lobby deal does not go through, the agreement with the City would then be void. Mr.
Hindy responded in the affirmative.
Mayor Low noted all points made by Council this evening were valid. She understands
what everyone is thinking. Hobby Lobby would be a great addition to the community. Mayor
Low stated her belief that the shopping center area needs a boost which this project could
provide. Revitalization is important to the entire area.
Alderman Santi inquired when Hobby Lobby is projected to open. Mr. Hindy responded
it is likely Hobby Lobby would open by the end of 2011.
Alderman Glab inquired if Regency would agree to $50,000 per year. Mr. Hindy stated if
Hobby Lobby is successful, the $1M could be realized before the end of the 20-year term of the
contract.
Alderman Wimmer inquired if this project does not move forward, that part of town is
going to look very sad after WalMart's departure.
Motion by Wimmer, seconded by Schaefer, to pass an ordinance providing for the
Mayor's execution of an economic incentive agreement with the owners of McHenry Commons
Shopping Center as presented.
Voting Aye: Glab, Schaefer, Wimmer, Peterson.
Voting Nay: Santi, Blake, Condon.
Absent: None.
Motion carried.
MAYOR STATEMENT AND REPORT
Mayor Low reported the City's first City Band concert of the season was well-attended
last week. The second in the series will take place Thursday evening at 7:30 p.m. She
announced the Adams Trailer historical exhibit will be available for viewing at all band concerts
this year. She noted the trailer is an amazing exhibit.
Regular Meeting
Page 9
June 6,2011
Mayor Low announced the following upcoming events:
Kiwanis Soap Box Derby on Saturday, June 11, 2011 at Green and Waukegan;
Lion's Club Carnival June 9-11, 2011 at Petersen Park;
Fishing Derby at Whispering Oaks Park on Saturday, June 11, 2011;
Green Street Cruise Nights every Monday evening, beginning tonight.
Mayor Low noted the City looks beautiful and the community looks wonderful. She
expressed her gratitude to Staff.
Mayor Low acknowledged the historical banners have been installed and the business
district "foxes" have been displayed on area light poles.
COMMITTEE REPORTS
There were no Committee Reports.
STAFF REPORTS
There were no Staff Reports.
FUTURE AGENDA ITEMS
Alderman Peterson stated he would like to see the Riverwalk Center on the Agenda.
Mayor Low responded it will be on Council's Agenda soon.
Alderman Glab inquired if the Riverwalk Center would come forward with a proposal or
for discussion? He suggested the matter be brought forward as a discussion item.
Mayor Low stated she understands Council's desire to proceed to resolution regarding
this matter. She acknowledged discussions would take place in the near future.
Alderman Condon requested clarification as to whether the Riverwalk Center should be
discussed at a Committee level, i.e. a Committee of the Whole Meeting, prior to being
presented for action before Council. She opined there is no point in having a meeting to discuss
something if there is no specific proposal before Council to be considered and voted upon.
Alderman Condon expressed her confidence in City Staff which is great benefit to the
City.
Alderman Santi expressed his appreciation to Staff and the Mayor for their efforts in
bringing the bank president forward to discuss the Riverwalk Center.
Regular Meeting
Page 10
June 6,2011
EXECUTIVE SESSION: PERSONNEL
Motion by Condon, seconded by Santi, to go into Executive Session to discuss Personnel
at 9:01 p.m.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Council went into Executive Session at 9:04 p.m.
Motion by Wimmer, seconded by Peterson, to go back into Open Session at 9:40 p.m.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Council went back into Open Session at 9:40 p.m.
OPEN SESSION REGARDING MATTERS DISCUSSED IN EXECUTIVE SESSION
There was no action taken in Open Session regarding matters discussed in Executive
Session.
ADJOURNMENT
Motion by Wimmer, seconded by Peterson, to adjourn the meeting at 9:40 p.m.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
The eting was adjourned at 9:40 p.m.
IV `�.
May& City Clerk