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HomeMy WebLinkAboutMinutes - 08/14/1996 - City Council REGULAR MEETING AUGUST 14, 1996 The Regular Meeting of the McHenry City Council was called to order by Mayor Steven Cuda on Wednesday, August 14, 1996 at 7:30 P.M. in the Council Chambers of the Municipal Center. At roll call the following Aldermen were present: Bolger, Locke, Bates, Baird. Lawson arrived at 7:35 P.M. Absent: None. City Staff in attendance were: City Clerk Althoff, City Administrator Jordan, Director of Public �-' Works Batt, Director of Building and Zoning Lobaito Director of Parks and Recreation Merkel, and Chief of Police Joyce. City Attorney McArdle arrived at 7:50 P.M. Absent: None. TEN MINUTE PUBLIC INPUT SESSION Laura Davis and Linda Hiatt, residents of Orleans Avenue, addressed Council expressing their concerns over the additional influx of traffic the new McHenry City Centre industrial development will create. A copy of the petition they were distributing within their Mill Creek Subdivision was presented along with their request to place further discussion of their concerns on the next regularly scheduled Council agenda. Mayor Cuda directed staff to place this item on the September 4, 1996 regular Council Meeting agenda, allowing staff ample time to supply Council with the pertinent information regarding this issue. Alderman Lawson arrived at 7:35 P.M. CONSENT AGENDA `- Motion by Bolger, seconded by Lawson, to approve the Consent Agenda as follows: (1 ) July 31 , 1996 Regular City Council Meeting Minutes; (2) Tuition Reimbursement Request - Dan Marcinko: ACC 151, Principles of Accounting, $124.00; (3) Picnic/Beer Permit Requests. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. STATUS UPDATE - COUNTY ZONING PETITION #96-22 John Fuhler, Jr., Petitioner for County Zoning Petition #96-22 requesting rezoning from Agricultural to Commercial and a conditional use permit for outdoor commercial storage and caretaker living quarters for a mini-warehouse operation within 1 1/2 mile of City, was in attendance. Mr. Fuhler explained as he had agreed to all the conditions required by the City of McHenry, and as the County Board had not rezoned the property, but only allowed the mini-warehouse conditional use in the current Agricultural zoning district, he respectfully requested the removal of restrictive language required by the City of McHenry from the real estate deed to the property in question. He noted the deed restriction was no longer necessary. Some discussion followed. As City Attorney McArdle was not in attendance, it was the consensus of Council to postpone further discussion and action on this issue until after he arrived. ENABLING ORDINANCES - EAST OF THE FOX RIVER SANITARY SEWER EXTENSION AND SOUTH WASTEWATER TREATMENT PLANT EXPANSION Carl Moon of Baxter & Woodman and Harold Warren of Warren & Associates were in attendance. City Administrator Jordan informed Council with regard to the South Wastewater Treatment Plant expansion, it was staff's recommendation to increase the plant's capacity to the 10,000 P.E. He cited the numerous annexations yet to be developed, the Illinois Environmental Protection Agency's recent report of the South Wastewater Treatment Plant's 100% capacity levels, and the 2-3 year project completion time. Harold Warren addressed Council. He explained the first $3.6 million enabling East of the River sanitary sewer extension General Obligation Alternate Revenue Bond would be refinanced with sales tax revenue received from the commercial properties located East of the River. There would be no additional costs to taxpayers. August 14, 1996 Page 2 The second $6.0 million enabling South Wastewater Treatment Plant expansion revenue bond would be financed from a pledged revenue source. In this particular instance, from the Water and Sewer Enterprise Fund. City Attorney McArdle arrived at 7:50 P.M. Mr. Warren informed Council that passage of these enabling ordinances would not commit the City to expending the full bond amounts, $3.6 million and $6.0 million respectfully. Enabling ordinances were only the first step in the bond process, allowing expenditures up to the stated bond amount. Before bonds are sold, bid specifications can be created and contracts awarded, allowing for a more definitive project cost and subsequent bond sale amount. Mr. Warren clarified the need to reference two types of bond authorizations in regard to the $6 million enabling South Wastewater Treatment Plant expansion ordinance. As a result of the City of McHenry's $4,575,000 outstanding Water/Sewer Revenue Bond Issue the City is required to comply with two separate State Statutes; one regarding the issuance of revenue bonds; the other regarding the issuance of alternate bonds. Alternate bonds are considered double barreled security, as they are general obligations of the City, payable from property taxes and other funds can be used to pay debt. In this case, water and sewer funds. City Engineer Carl Moon of Baxter & Woodman addressed Council. He referenced numbers prepared for the City of McHenry in 1991 in anticipation of the South Wastewater Treatment Plant's expansion to 10,000 P.E. capacity. At that time, Council decided to wait until the existing plant reached current capacity. Cost estimates at that .time for construction for the full 10,000 P.E. capacity was $4.2 million. Phasing the project resulted in cost estimates of $2.8 million for Phase A, a 5,000 P.E. capacity and $1 .6 million for Phase B and the balance of the 10,000 P.E. capacity. Moon noted as there have been numerous regulation changes and major equipment modifications over the past five years, a new cost analysis would be required. He stated the cost of this analysis might be substantial. A tentative cost estimate based on -a 3%-5% annual increase would be $5.4 million for the total construction of the 10,000 P.E. capacity, $3.6 million for Phase A and $2.0 million for Phase B. A lengthy discussion followed. Alderman Locke requested Council consider the creation of a sanitary district. Alderman Bolger inquired as to any infiltration problems at the South Wastewater Treatment Plant. Director of Public Works Batt noted there is little or no infiltration problems at this time. Alderman Lawson expressed his concerns regarding the lack of cost information provided to Councikprior to this evening's meeting regarding the South Wastewater Treatment Plant's expansion enabling ordinance. Director of Public Works Batt stated staff did not request Council authorization for a new cost analysis, as the passage of the enabling ordinance was just the first step in the bond process, and once passed, all subsequent expenditures can be reimbursed by the bond's issuance. Further discussion continued. It was the consensus of Council that City water and sewer rates should not be increased to cover the cost of this sanitary sewer plant expansion. Council requested City Engineers Baxter & Woodman provide a not to exceed cost with regard to the revised cost analysis for the expansion of the South Wastewater Treatment Plant to 10,000 P.E. capacity for review at the September 4, 1996 regular Council Meeting. Motion by Bolger, to pass the $6.0 million revenue enabling ordinance for the expansion of the South Wastewater Treatment Plant. Motion died for lack of a second. August 14, 1996 Page 3 Alderman Lawson suggested further discussion regarding the $6.0 million enabling ordinance for the expansion of the South Wastewater Treatment Plant be continued at the September 4, 1996 regular Council Meeting. Council concurred and requested the following information be provided for further discussion: (1 ) Provide the information used to determine the need for 10,000 P.E., �- rather than 5,000 P.E.; (2) Comparisons of P.E. ratios by zoning classifications; (3) Rate of development projected out using historical data from Building and Zoning Department; (4) Comparison of Lake-in-the-Hills recent $1 .2 million expansion. Motion by Baird, seconded by Lawson, to pass the $3.6 million Enabling Ordinance for East of the River sanitary sewer extension General Obligation Alternate Revenue Bonds, which will be financed with sales tax revenue received from the commercial properties located East of the River. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Mayor Cuda called for a recess at 9:10 P.M. The meeting reconvened at 9:23 P.M. with everyone still in attendance. Mayor Cuda requested Council continue the discussion regarding John Fuhler's County Petition #96-22, since City Attorney McArdle was now present. COUNTY ZONING PETITION #96-22 Attorney McArdle was informed of Mr. Fuhler's request for the removal of restrictive language from the real estate deed. City Attorney McArdle stated it was his opinion that the City of McHenry was completely protected and all the conditions would be upheld, as they were included within the County's written ordinance. Motion by Locke, seconded by Bolger, to remove the required restrictive language from the real estate deed associated with County Petition #96-22 based on Attorney McArdle's recommendation, as the McHenry County Board has only allowed a conditional use for mini-warehouse usage and caretaker living quarters on property currently zoned County Agricultural, located on Route 120 just outside of McHenry's City limits. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Council also recommended Mr. Fuhler and the other property owners consider annexation to the City of McHenry. MAYOR - STATEMENT AND REPORTS Mayor Cuda had no Statement and Reports this evening. COMMITTEE REPORTS Chairman of the Building and Zoning Committee, Alderman Baird, scheduled a Building and Zoning Committee meeting for Monday, September 9, 1996 at 7:30 P.M. The agenda will include review of a Tree Preservation Ordinance, a revised Sign Ordinance and the Landmark Commission's Preservation Ordinance. STAFF REPORTS Director of Public Works Batt informed Council that he and City Administrator Jordan had met with Roger Gerstad of Gerstad Builders regarding the Green Street property dispute between Gerstad Builders and property owner Don Jordan. Gerstad Builders is still making every effort to obtain the required easement from Mr. Jordan for the left-hand turn lane at the entrance to the Pebble Creek subdivision. August 14, 1996 Page 4 Director of Public Works Batt also noted that Roger Gerstad has contacted City resident Mr. William Knorr in response to Mr. Knorr's concerns over the detention pond on his property in the Trails of Winding Creek subdivision. Director of Public Works Batt then reported that Well #2 is being shut down as ..� per City Engineers Baxter & Woodman's recommendation. They have expressed concerns that this well may have been affected by the underground fuel tanks' soil contamination at this site. Batt also noted that Council will be presented with a contract for Baxter & Woodman to provide additional services to clean up this site, as well as the potential installation of additional monitoring wells. Director Batt will keep Council apprised of the situation. City Attorney McArdle requested that Potential Litigation be added to Executive - Session. Council concurred. City Administrator Jordan informed Council staff has recently completed the required reporting associated with the Ridgeview Drive DCCA Grant audit. NEW BUSINESS Alderman Bates expressed his concerns with the increase in construction traffic through the Mill Creek subdivision associated with the development of the McHenry City Centre property. Mayor Cuda stated Council had agreed to place further discussion of this issue on the September 4, 1996 Council Meeting agenda. Discussion followed regarding the temporary closing of Oak Street as it relates to the realignment of Oak Street and Industrial Drive. Council requested City Administrator Jordan and Director of Public Works Batt make every attempt to keep Oak Street open throughout the realignment construction of Industrial Drive. Alderman Baird requested staff determine how long Crystal Lake Avenue in Crystal Lake will be closed . EXECUTIVE SESSION Motion by Bates, seconded by Bolger, to go into Executive Session at 9:50 P.M. to discuss Personnel and Potential Litigation. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Motion by Bates, seconded by Locke, to go back into Open Session at 10:18 P.M. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. ADJOURNMENT Motion by Bates, seconded by Locke, to adjourn the meeting. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. "1 The meeting adjourned at 10:19 P.M. MAYOR CITY C ERK