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Home My WebLink AboutMinutes - 01/08/1997 - City Council (2) REGULAR MEETING JANUARY 8, 1997 The Regular Meeting of the McHenry City Council was called to order by Mayor Steven Cuda on Wednesday, January 8, 1997 at 7:30 P.M. in the Council Chambers of the Municipal Center. At roll call the following Aldermen were present: Bolger, Locke, Lawson, Baird. Bates arrived at 7:34 P.M. Absent: None. City Staff in attendance were City Clerk Althoff, City Administrator Jordan, City Attorney McArdle, Director of Public Works Batt, Director of Building and Zoning Lobaito, Director of Parks and Recreation Merkel, Chief of Police Joyce. Absent: None. Mayor Cuda introduced Boy Scouts Ryan Wildenhaim and Chris Gilger, who were in attendance to complete a Boy Scout badge requirement. TEN MINUTE PUBLIC INPUT SESSION No one signed in to speak during the Ten Minute Public Input Session. CONSENT AGENDA Motion by Baird, seconded by Locke, to approve the Consent Agenda as follows: (1) Council Meeting Minutes for Approval: December 4, 1996 Regular City Council Meeting; December 11 , 1996 Regular City Council Meeting; December 16, 1996 Regular City Council Meeting; (2) Tuition Reimbursement Request: Roland Wood, ENG 152, $146.00; (3) Payment to Pro-Clean for cleaning services, 11/4/96-12/20/96, in the amount of $4,520.00; (4) List of "As-Needed Checks" for review and approval; (5) List of Bills for Approval: As-Needed Checks General Fund 84610 HEALTH PLAN MANAGEMENT $ 7944.35 84611 MCHENRY POLICE OFFICERS $ 1012 .50 �- 84612 NCPERS GROUP LIFE INS $ 144.00 84613 HOME STATE BANK $ 325000.00 84614 WATER/SEWER FUND $ 200000.00 84615 RETAINED PERSONNEL ESCROW $ 1298.75 84616 WATER/SEWER FUND $ 46.55 84617 SUN LIFE OF CANADA $ 699.60 84618 ILLINOIS STATE POLICE $ 36.00 84619 ILLINOIS STATE POLICE $ 36.00 84620 INSURANCE CLAIMS ACCOUNT $ 7657.84 84685 MCHENRY COUNTY MUNICIPAL $ 4960.00 84686 PRO-CLEAN INC $ 3375.00 84688 FISH OF MCHENRY INC $ 45.00 84689 HAROLD MILLER $ 2350.00 84690 MCHENRY COUNTY JUVENILE $ 40.00 84691 FISH OF MCHENRY INC $ 75.00 84692 SOME OTHER NUTS $ 597.96 84693 POLICE PENSION FUND $ 953.09 84694 PAYROLL ACCOUNT $ 158496.63 84695 CLERK OF THE CIRCUIT $ 110.00 84696 HEALTH PLAN MANAGEMENT $ 1537.70 84697 ICMA RETIREMENT TRUST-457 $ 3864.46 84698 NACO CLEARING ACCOUNT $ 1487.60 84699 ILLINOIS DEPT OF REVENUE $ 6574.51 84700 POLICE PENSION FUND $ 6882 .04 84701 MCHENRY STATE BANK $ 69306.80 84702 FORT DEARBORN LIFE $ 268.66 84703 AFLAC $ 1352.50 84804 WATER/SEWER FUND $ 65000.00 84805 INSURANCE CLAIMS ACCOUNT $ 12415.41 �.. 84806 ILLINOIS ASSOCIATION OF $ 65.00 84807 PROJECT ASSESSMENT FUND $ 48000.00 84808 WATER/SEWER FUND $ 150000.00 84809 SEYFARTH SHAW FAIRWEATHER $ 601.40 84810 PETTY CASH FUND $ 170.07 84811 INSURANCE CLAIMS ACCOUNT $ 10161.17 84812 MCHENRY COUNTY RECORDER $ 21.00 84813 UNITED STATES POSTAL SERV $ 660.00 84814 CLERK OF THE CIRCUIT $ 110.00 84815 MARY ANN MILITANO $ 400.00 84816 INTERNAL REVENUE SERVICE $ 150.00 84817 HEALTH PLAN MANAGEMENT $ 1537.70 84818 ICMA RETIREMENT TRUST-457 $ 3188.46 84819 NACO CLEARING ACCOUNT $ 1487.60 84820 ILLINOIS DEPT OF REVENUE $ 4494.76 84821 PAYROLL ACCOUNT $ 110101.46 84822 POLICE PENSION FUND $ 5204.93 84823 MCHENRY STATE BANK $ 45916.20 January 8, 1997 Page 2 General Fund (cont'd) 84824 MCHENRY STATE BANK $ 37.90 84825 INSURANCE CLAIMS ACCOUNT $ 3329.20 84826 WATER/SEWER FUND $ 250000.00 84827 MCHENRY SAVINGS BANK $ 675000.00 84828 MCHENRY SAVINGS BANK $ 200000.00 84829 MCHENRY STATE BANK $ 250000.00 84830 WATER/SEWER FUND $ 2800.00 84831 CAPITAL DEVELOPMENT $ 16789.00 84832 POLICE PENSION FUND $ 1073.80 84833 DEPRECIATION RESERVE $ 1430.54 84834 BOND RESERVE FUND $ 678.08 84835 WATER/SEWER FUND $ 16473.59 84836 RECREATION PROGRAMS FUND $ 25000.00 84837 INSURANCE CLAIMS ACCOUNT $ 4522.13 Report Totals 2712971.94 Water/Sewer Fund 13097 GENERAL FUND $ 290000.00 13098 MCHENRY STATE BANK $ 395000.00 13099 MCHENRY SAVINGS BANK $ 200000.00 13100 POSTMASTER MCHENRY IL $ 208.28 13101 SUN LIFE OF CANADA $ 103.35 13122 MCHENRY COUNTY RECORDER $ 316.00 13124 GENERAL FUND $ 23595.97 13125 EMPLOYEE INSURANCE $ 4650.00 13127 RETIREMENT FUND $ 8129.17 13161 GENERAL FUND $ 1026.87 13162 GENERAL FUND $ 125000.00 13163 UNITED STATES POSTAL SERV $ 200.00 13164 MCHENRY SAVINGS BANK $ 250000.00 13165 GENERAL FUND $ 21110.53 Report Totals 1319340.17 Parks Fund 6915 HOME OF THE SPARROW $ 35.00 6916 MAX KOCH $ 35.00 6917 POSTMASTER MCHENRY IL $ 1293.67 6918 SUN LIFE OF CANADA $ 23 .85 6936 GENERAL FUND $ 7368.42 6937 EMPLOYEE INSURANCE $ 975.00 6960 PETTY CASH FUND $ 28.42 6961 ANNA MARIE BERG $ 756.00 6962 UNITED STATES POSTAL SERV $ 140.00 6963 LOIS CARRICO $ 378.00 6964 STEVE JURACKA $ 378.00 6965 GENERAL FUND $ 8178.28 Report Totals 19589.64 BILLS General Fund 84846 ABEL ICE INC $ 225.00 84847 ADAMS AIR & RADIATOR SERV $ 35.00 84848 DAN ADAMS STEEL SERV INC $ 237.40 84849 R A ADAMS ENTERPRISES INC $ 4489.64 84850 ADVANTAGE SALES & SERVICE $ 294.50 84851 AMERITECH $ 1349.18 84852 ARROW ROAD CONST CO $ 695.52 84853 AUTO TECH CENTERS INC $ 479.72 84854 BARCLAYS LAW PUBLISHERS $ 100.00 84855 BADGER UNIFORMS $ 1151.30 84856 BATTERY NETWORK INC $ 100.80 84857 G W BERKHEIMER CO INC $ 1366.09 84858 PHILLIP E BRADY & ASSOC $ 545.00 84859 BURNS INDUSTRIAL SUPPLY $ 240.47 84860 BUSS FORD SALES $ 23.35 84861 CENTEGRA-NORTHERN $ 239.75 84862 SUSAN CHRISTENSEN $ 258.00 84863 COMMUNICATIONS REVOLVING $ 425.00 84864 JOSEPH DOHERTY $ 57.95 84865 DON'S TOWING $ 90.00 84866 ECOLOGIC PLANNING INC $ 400.00 84867 EXTECH COMPANY $ 97.35 84868 GATEWAY2000 $ 144.00 84869 DAVID HERDA $ 26.63 64870 IL PLUMBING INSPECTORS AS $ 50.00 84871 INTOXIMETERS $ 53.25 84872 MYRON BROKAW D\B\A $ 2045.00 84873 LETN $ 388.00 84874 DAN J MARCINKO $ 143.95 84875 MINUTEMAN PRESS OF MCH $ 47.24 84876 LAURA MOATS $ 146.00 84877 MCHENRY COUNTY CHIEFS OF $ 40.00 84878 MCH CTY MUNICIPAL ASSN $ 357.00 84879 MCHENRY COUNTY MUNICIPAL $ 2429.00 84880 MCHENRY SPECIALTIES $ 53.00 84881 POSTMASTER MCHENRY IL $ 85.00 84882 FRED PRYOR SEMINARS $ 99.00 84683 SINGER COMPUTER SERVICE $ 82.50 84884 RICH STULL $ 124.00 84885 TERRY'S VILLAGE $ 2158.24 84886 THOMPSON ELEVATOR $ 178.00 t January 8, 1997 Page 3 General Fund (cont'd) 84887 THOMPSON PUBLISHING GROUP $ 271.00 84888 UNIVERSITY OF ILLINOIS $ 125.00 84889 DV8 INC $ 30.00 84890 LONG JOHN SILVERS $ 30.00 84891 VINCENT SIGN COMPANY $ 30.00 Report Totals 22036.83 Water/Sewer Fund 13168 ADAMS AIR & RADIATOR SERV $ 52 .64 13169 DAN ADAMS STEEL SERV INC $ 15.34 13170 AMERITECH $ 545.75 13171 CREATIVE FORMS $ 1339.48 13172 CRYSTAL LAKE DISPOSAL INC $ 106.00 13173 GENE HESTER $ 72.41 13174 MCHENRY ANALYTICAL WATER $ 504.00 13175 WARREN ASSOCIATES $ 6500.00 Report Totals 9135.62 Parks Fund 6967 ADOBE SYSTEMS INC $ 149.00 6968 AMERITECH $ 140.23 6969 BSN SPORTS $ 1212.12 6970 CHICAGO CUBS GROUP SALES $ 458.00 6971 BERG CHRISTIAN ENTERPRISE $ 90.00 6972 COMPUTERTOTS INC $ 120.00 6973 THE FIRESIDE $ 1699.70 6974 HI-LITER GRAPHICS INC $ 4234.30 6975 PATTIE LUNKENHEIMER $ 107.82 6976 PETE MERKEL $ 38.33 6977 KATHLEEN QUICK $ 40.39 6978 RECREONICS $ 444.67 6979 MIA SZAMLEWSKI $ 13 .88 6980 VERMONT SYSTEMS INC $ 1985.00 6981 DAILE COYLE $ 15.00 6982 LYNN FELDER $ 72 .00 6983 MARY SUE HEINZELMANN $ 18.00 6984 PAT O'HEARN $ 30.00 6985 SARA RAMOS $ 6.00 6986 WILLIAM SCHNEIDER $ 125.00 Report Totals 10999.44 Voting Aye: Bolger, Locke, Lawson, Baird. Voting Nay: None. Absent: Bates. Motion carried. RENEWAL OF EMPLOYEE INSURANCE Scott Smiricky of The Splinter Group was in attendance. Alderman Bates arrived at 7:34 P.M. Mr. Smiricky informed Council the City's current health plan coverage and claims administration agreements will expire on January 31 , 1997. Mr. Smiricky presented the proposed 1997-98 fixed costs and claim expenses for the City's Specific Employee Health Insurance contract on a 15/12 basis, and the aggregate insurance on a 12/12 basis with existing benefits. He noted the cost reduction in the City's claims liability amount from $306,000 to $273,000, and an increase in the fixed costs from $85,000 to $93,000, for a total reduction in cost of $9,126.00, or 2%. A lengthy discussion followed regarding this year's claim history, premium increases and specifics of the self-funded insurance plan. It was noted that the 1996- 97 health premiums will be slightly higher than those of 1996, specifically, an additional $15.00 for Single coverage and $30.00 for Family coverage. However, this would fully fund the insurance program. City Clerk Althoff and Mr. Smiricky noted negotiations were being conducted to extend the insurance program for an additional two months in an attempt to better coincide with the City's fiscal year. Claim analysis of the City's end of the year health claims will continue to determine the purchase of a 15/12 or 12/12 specific employee health insurance contract. At this time, Mr. Smiricky distributed a letter from insurance carrier Blue Cross/Blue Shield stating their inability to match the City's current health program, both in features and cost. January 8, 1997 Page 4 Motion by Baird, seconded by Lawson, to approve renewal of the City's aggregate insurance on a 12/12 basis and the City's specific health insurance contract on a 15/12 or 12/12 basis, to be determined by the Mayor prior to January 31 , 1997, and to renew the City's contract with Health Plan Management for processing health claims at $7.10/month/employee. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. BOND ISSUES - EAST SIDE SANITARY SEWER, $3,600,00; AND SOUTH WASTEWATER TREATMENT PLANT EXPANSION, $2,900,000 Harold Warren of Warren Associates Municipal Financial Consultants was in attendance. It is the recommendation of Mr. Warren and staff to bond the full $3,600,000 for the East of the River sanitary sewer extension and $2,900,000 for the South Wastewater Treatment Plant expansion. The $700,000 balance for the South Wastewater Treatment Plant expansion would be financed from Capital Development Fund monies. The Capital Development Fund reserve of $1 ,700,000 could then be utilized for future projects, improvements and investment purposes. Mr. Warren and staff also recommended the City bond for a period no longer than 12 years. Some discussion followed regarding future water projects, specifically, the replacement of Water Well #1 and the construction of an elevated storage tank, costing approximately $2 million over the next two years. In response to Alderman Bates' inquiry, City Administrator Jordan stated there would be sufficient sales tax revenue from East of the River retail and commercial enterprises to pay the full principal and interest on the $3.6 million bond issuance for the East of the River sanitary sewer extension. Further discussion followed regarding the bonding amount for the South Wastewater Treatment Plant expansion. It was suggested General Fund revenue as well as Capital Development funds be used to reduce the bonding amount further. A cursory comparison of interest payments when the total bonding amount is reduced by $500,00, $1 ,000,000 and $1 ,500,000 was noted by Alderman Baird. It was the consensus of Council to reduce the total $3.6 million bonding amount for the South Wastewater Treatment Plant further than the recommended $700,000. A Finance Committee meeting was scheduled for Monday, January 20, 1997 at 7:30 P.M. to discuss the financing of the South Wastewater Treatment Plant project further. Some discussion followed regarding the current $3.00/month debt service charge on the City's water and sewer bills. Mr. Warren noted Council could eventually eliminate the debt service, however, monies garnered from this fee would have to be replaced from some other revenue source. An additional charge of $.53/1 ,000 gallons for water and/or sewer usage would be required to create the same revenue amount. In response to Alderman Bates' inquiry, Mr. Warren noted the bonds can typically be called after ten years. Mayor Cuda noted the specific bonding amounts could be determined at the January 20, 1997 Finance Committee meeting, yet the resolutions authorizing a public hearing on January 29, 1997 concerning the McHenry City Council's intent to sell bonds for the East of the River sanitary sewer extension and the South Wastewater Treatment Plant expansion can be passed as part of this evening's Council action. Motion by Baird, seconded by Lawson, to pass a resolution authorizing a public hearing on January 29, 1997 concerning the City Council's intent to sell General Obligation Bonds in the an amount not to exceed $3.6 million for the East of the River sanitary sewer extension. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. January 8, 1997 Page 5 Motion by Baird, seconded by Lawson, to pass a resolution authorizing a public hearing on January 29, 1997 concerning the McHenry City Council's intent to sell General Obligation Bonds in an amount not to exceed $3.6 million for the expansion of the South Wastewater Treatment Plant. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Mayor Cuda directed Mr. Warren to present different financing scenarios for the January 20, 1997 Finance Committee Meeting's consideration. Mayor Cuda also requested Director of Public Works Batt present in writing a time frame and cost estimate for the construction of an elevated water tank and replacement of Water Well #1 . ORDINANCE ABATING REAL ESTATE TAXES COLLECTED IN 1997 Mayor Cuda informed Council the City issued $3 million in Alternate General Obligation Bonds in 1990 to construct the Municipal Center. The bonds were to be payable from sales tax collected by the City. To ensure the security of the repayment of these bonds to the bond holders, the bonds are also secured by the full faith and credit of the municipality and are included in the Real Estate Property Tax Levy. It has been the intention of the City to abate these real estate taxes every year and make these payments from sales tax collected. The amount for the 1996 Tax Levy year is $31 1 ,300.00. Motion by Baird, seconded by Bolger, to pass an ordinance abating the real estate taxes for the 1996 Tax Levy year for the $3 million Alternate General Obligation Bonds for the construction of the Municipal Center. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. �-- Voting Nay: None. Absent: None. Motion carried. CHANGE IN NISRA BYLAWS Director of Parks and Recreation Merkel informed Council that the Northern Illinois Special Recreation Association is proposing a bylaws amendment which must be ratified by 2/3 of the member districts. The proposed change is in Article V - Officers. The Board of Directors felt that the position of Vice President should be changed to President Elect. This enables the Board of Directors to elect officers with the ability to place the President Elect in the position to automatically succeed the current year President. The proposed amendment was approved at the Northern Illinois Special Recreation Association's November Board of Directors meeting, and at the December 3, 1996 Board of Trustees meeting. Motion by Baird, seconded by Bates, to approve the change in the Northern Illinois Special Recreation Association Bylaws, Article V to allow the position of Vice President to be changed to President Elect. Voting Aye: Bolger, Bates, Lawson, Baird. Voting Nay: Locke. Absent: None. Motion carried. Alderman Bates noted all Northern Illinois Special Recreation Association officer positions are voluntary, and no compensation is provided. January 8, 1997 Page 6 MAYOR - STATEMENT AND REPORTS Mayor Cuda reported Mr. Louis Pacini had informed him they would be starting the development process for their properties in the Spring. COMMITTEE REPORTS Alderman Bates, Chairman of the Parks and Recreation Committee, scheduled a Parks and Recreation Committee meeting for Thursday, January 23, 1997 at 7:30 P.M. STAFF REPORTS Director of Building and Zoning Lobaito informed Council the demolition of the Main Street building was complete and the demolition of the Elm and Green Streets building was close to completion. Director of Public Works Batt informed Council a ground-breaking for the East of the River Sanitary Sewer Extension was tentatively scheduled for Monday, January 20, 1997. He also reported the City of McHenry was under contract with Gluth Brothers for the Lakeland Park drainage project and the Donovan Street lift station agreement had been executed. The Easement Agreement required for the Donovan Street lift station project from Union Pacific Railroad, Inc. has been modified to allow for a six-month removal notification as opposed to the original 30-day removal notification. The Oak/Industrial Drive realignment specifications are being developed and staff will be advertising for bids in the near future. Chief of Police Joyce informed Council the next negotiation session with MCPOA, Unit 2 was scheduled for January 17, 1997. City Clerk Althoff informed Council the Landmark Commission has authorized a 45-day moratorium on facade grants until the current application can be amended. She also invited all Councilmen to Deputy Clerk Joan Marth's retirement party on Wednesday, January 22, 1997 from 3:00 P.M. to 5:00 P.M. in the Municipal Center Council Chambers. In conclusion, City Clerk Althoff reported the Applebee's Ribbon Cutting Ceremony was scheduled for Monday, January 20, 1997 at 5:00 p.m. EXECUTIVE SESSION Motion by Baird, seconded by Lawson, to go into Executive Session to discuss Personnel Matters. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Council went into Executive Session at 9:20 P.M. Motion by Locke, seconded by Lawson, to go back into Open Session. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Council went back into Open Session at 10:50 P.M. I January 8, 1997 Page 7 Motion by Bolger, seconded by Baird, to confirm the hiring of Donna Lee Wilkinson of McHenry for the part-time job share Receptionist/Clerk position at a rate of $7.00/hour, and the ability to increase her salary to $7.25/hour upon her successful performance evaluation by the City Clerk after six months of employment. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Motion by Baird, seconded by Locke, to approve the hiring of Phillip J. Maggio as an exempt employee for the position of City Planner at Grade 10, Step 5, with a salary of $38,500, and a two-week vacation after six months of employment. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Alderman Bolger requested Council consider the feasibility of placing a stop sign on John Street at the Center Street intersection. ADJOURNMENT Motion by Bates, seconded by Lawson, to adjourn. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. The meeting adjourned at 10:54 P.M. MAYOR CITY, LERK i