HomeMy WebLinkAboutMinutes - 02/10/1999 - City Council REGULAR MEETING
FEBRUARY 10, 1999
The Regular Meeting of the McHenry City Council was called to order by Mayor
Cuda at 7:30 P.M. on Wednesday, February 10, 1999 in the Council Chambers of the
Municipal Center. At roll call the following Aldermen were present: Bolger, Murgatroyd,
Baird. Absent: Glab, McClatchey. City Staff in attendance were: City Administrator
Lobaito, City Clerk Althoff, City Attorney McArdle, Chief of Police Joyce, Director of
Public Works Batt, Director of Parks and Recreation Merkel, Director of Community
Development Napolitano. Absent: None.
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 Bolger, to approve the Consent Agenda as follows:
■ Resolution Authorizing Sale of Property;
■ Approval to seek bids - Painting of Clarifiers at South
Wastewater Treatment Plant;
■ Approval to seek bids - 1999 Mowing Contract;
■ Approve Executive Session Minutes:
September 18, 1996, December 4, 1996, February 19, 1997,
March 5, 1997, March 19, 1997, June 4, 1997, July 2, 1997,
January 12, 1998, July 8, 1998, August 5, 1998, September
2, 1998, September 30, 1998, November 11, 1998, December 2,
1998;
■ List of As Needed Checks;
GENERAL FUND:
CHECK# VENDOR NAME AMOUNT
91884 NORTHERN ILLINOIS $ 528.00
91885 GAMBLER, THE $ 710.00
91886 SLOPPY T'S $ 710.00
91887 DONNA L WILKINSON $ 25.27
91888 ROBERT G PETERSEN $ 6066.40
91889 PAYROLL ACCOUNT $ 122489.76
91890 CLERK OF THE CIRCUIT $ 110.00
91891 CLERK OF MCHENRY CIRCUIT $ 61.40
91892 LYDIA S MEYER, TRUSTEE $ 378.46
91893 FLEX TRUST ACCOUNT $ 1621.09
91894 ICMA RETIREMENT TRUST-457 $ 4407.81
91895 NACO CLEARING ACCOUNT $ 1112.93
91896 ILLINOIS DEPT OF REVENUE $ 4965.31
91897 POLICE PENSION FUND $ 5503.06
91898 MCHENRY POLICE OFFICERS $ 925.00
91899 MCHENRY POLICE OFFICERS $ 531.30
91900 UNITED WAY $ 371.00
91901 UNITED STATES LIFE INSUR. $ 729.00
91902 PETTY CASH FUND $ 190.43
91903 RABINE PAVING $ 144106.33
91904 HEALTH PLAN MANAGEMENT $ 11130.91
91905 BONNIE FORNER $ 101.42
91906 AFLAC $ 1452 .32
91907 MCHENRY COUNTY RECORDER $ 31.00
91908 NCPERS GROUP LIFE INS $ 222.00
91909 NATIONAL GUARDIAN LIFE $ 148.83
91910 CAPITAL DEVELOPMENT $ 54240.00
91911 WATER/SEWER FUND $ 7540.00
91912 DON SCHATZ $ 150.00
91913 INSURANCE CLAIMS ACCOUNT $ 56556.74
91975 ELM ST DESIGN $ 250.00
91976 MCHENRY COUNTY CHIEFS OF $ 12.00
91977 PAYROLL ACCOUNT $ 125053.95
91978 INSURANCE CLAIMS ACCOUNT $ 5450.85
91979 CLERK OF THE CIRCUIT $ 110.00
91980 LYDIA S MEYER, TRUSTEE $ 378.46
91981 INTERNAL REVENUE SERVICE $ 150.00
91982 FLEX TRUST ACCOUNT $ 1651.09
91983 ICMA RETIREMENT TRUST-457 $ 4407.81
91985 ILLINOIS DEPT OF REVENUE $ 5104.66
91986 POLICE PENSION FUND $ 5568.58
91987 NACO CLEARING ACCOUNT $ 1102 .93
91988 CARMICHAEL CONSTRUCTION $ 16196.00
91989 FBI NAA $ 20.00
91990 MCHENRY COUNTY CHIEFS OF $ 12 .00
91991 RON RIVENBURGH $ 100.00
91992 STEAK AND SHAKE $ 445.00
92052 INSURANCE CLAIMS ACCOUNT $ 7637.23
92053 MCHENRY COMMUNITY HIGH $ 105560.00
92054 MCHENRY COMMUNITY SCHOOL $ 196040.00
92055 MCHENRY PUBLIC LIBRARY $ 23520.00
92056 MCHENRY TOWNSHIP FIRE $ 23732 .00
92057 TEAMSTERS LOCAL 301 $ 2877.00
92058 GARY LANG CHEVROLET INC $ 24658.00
92059 SECRETARY OF STATE $ 21.00
Report Totals 977174.33
February 10, 1999 Page 2
WATER SEWER FUND:
CHECK# VENDOR NAME AMOUNT
14832 POSTMASTER MCHENRY IL $ 1065.60
14833 RETIREMENT FUND $ 10208.33
14834 UNITED STATES LIFE INSUR. $ 105.30
14836 FIRST MIDWEST BANK $ 315000.00
14837 FIRST MIDWEST BANK $ 100000.00
14850 ILLINOIS STATE BANK OF $ 8000.00
14851 WALCZAK, JOHN $ 3.00
14871 GENERAL FUND $ 55797.35
14872 FIRST MIDWEST BANK $ 300000.00
Report Totals 790179.58
RETAINED PERSONNEL FUND:
CHECK# VENDOR NAME AMOUNT
39000309 GENERAL FUND $ 1045.00
POLICE PENSION FUND:
CHECK# VENDOR NAME AMOUNT
36001114 GREGORY P BURG $ 2602.24
36001115 RAMON GREGORIO JR $ 1917.25
36001116 DANIEL A KING $ 913.33
36001117 MARIANNE KRANZ $ 2459.30
36001118 DUANE R LANGE $ 902.34
36001119 DANIEL E KINNERK $ 2557.23
36001120 ANTHONY A MILITANO $ 2157.99
36001121 MICHAEL OLIVER $ 2572.16
36001122 JOHN R WEICHMANN $ 644.51
36001123 HARRIS BANK $ 1593.00
36001124 INSURANCE CLAIMS ACCOUNT $ 1675.00
Report Totals 19994.35
Report Totals 1045.00
PROJECT ASSESSMENT FUND:
CHECK# VENDOR NAME AMOUNT
57000433 BOND AND INTEREST $ 14322.92
Report Totals 14322.92
MFT FUND:
CHECK# VENDOR NAME AMOUNT
22000545 IMS $ 4350.00
Report Totals 4350.00 --
Voting Aye: Bolger, Murgatroyd, Baird.
Voting Nay: None.
Absent: Glab, McClatchey.
Motion carried.
USE OF KNOX PARK FOR TWIN CITIES/WISCONSIN/CHICAGO AIDS RIDE #4
Mark Hauser, Logistics Director of the Twin Cities/Wisconsin/Chicago AIDS Ride
was in attendance. Mr. Hauser thanked the City of McHenry for its hospitality the past
three years, and noted the City's most generous welcome to and encouragement of the
participating riders. Eighteen hundred riders participated and raised over $5.75 million
for individuals struggling with HIV and AIDS. Director of Parks and Recreation Merkel
reported he has reviewed the Knox Park site plan for this year's event scheduled for the
week of July 12th through July 17th. Access to Knox Park would be required on
Thursday, Friday and Saturday, July 15th through the 17th. Some discussion followed
regarding possible route changes through the City of McHenry in an attempt to avoid any
potential traffic congestion in conjunction with the Fiesta Days celebration at Petersen
Park.
Motion by Baird, seconded by Bolger, to approve the request by the Twin
Cities/Wisconsin/Chicago AIDS Ride organization and permit their use of Knox Park as a
site to host the Twin Cities/Wisconsin/Chicago AIDS Ride #4 on Thursday, July 15th
through Saturday, July 17th, 1999, subject to the submission of appropriate insurance
certificates and final site plan approval by Director of Parks and Recreation Merkel.
Voting Aye: Bolger, Murgatroyd, Baird.
Voting Nay: None.
Absent: Glab, McClatchey,
Motion carried.
February 10, 1999 Page 3
TCI FRANCHISE AGREEMENT
Richard Flood, Attorney and Partner for the law firm Zukowski, Rogers, Flood and
McArdle, and Telecommunications Inc. representatives John Higgins, General Manager
Anne Meyer, Operations Manager Pat Schiffelow, and Installation/Services Manager Brett
Roderick, were in attendance.
City Administrator Lobaito reminded Council cable television franchise renewal
negotiations had been ongoing for the past nine months with representatives from cable
service provider TCI of Illinois. Prior to initiating negotiations, Crowe Chizek was retained
to conduct an audit of the 1997 revenues of TCI, and determine whether TCI properly
'— calculated franchise fees for the City of McHenry. The audit report was completed on
December 7, 1998, and Mr. Chizek raised several points regarding the franchise fee
calculations. In light of audit results, TCI has agreed to pay a $35,000 renewal fee,
subject to the submission of a letter from the City of McHenry verifying TCI's compliance
with the previous franchise agreement. TCI suggests, however, the $35,000 be included
in its subscribership rate base.
In addition, the City of McHenry via its newsletter solicited comments regarding
cable television services, specifically, customer relations. City Administrator Lobaito
noted survey results reflected customer service to be the second most stated complaint.
The term of the renewal agreement was also an issue. The City of McHenry
wished to have a five year agreement; TCI, a fifteen year agreement. A compromise of
10 years was tentatively agreed upon. Three impasse items remain:
• Limiting of late payment fees;
• Maintenance of a local office and telephone number;
• Free Internet Services for government buildings.
The franchise renewal agreement includes twenty-nine upgrades, enumerated by
City Administrator Lobaito, which are attached to these minutes as part of the official
record for the February 10, 1999 regularly scheduled Council Meeting.
Attorney Flood stated it was Staff's recommendation to accept the ten-year
renewal term instead of the five as Council originally requested. The renewal agreement
requires the initiation of negotiations thirty-six months prior to the expiration of the
franchise agreement. Following the execution of a five year agreement, negotiations
would have to commence within the next year, as the current franchise agreement would
expire in May 2002.
City Administrator Lobaito also noted the service call center has been moved from
Denver, Colorado, back to the McHenry area, specifically, Mount Prospect. Service calls
are being monitored and, although, not up to the stated standard, significant improvement
has been noted by Staff. Some discussion followed regarding the proposed franchise fee
increase from the current 3% rate to 5%.
In response to Alderman Bolger's inquiries, City Administrator Lobaito noted a total
of $58,000 was collected this year in franchise fees. The proposed 5% increase would
be passed on directly to participating subscribers. Billing Statements can include a
separate line item reflecting franchise fees.
Council directed Attorney Flood to include language permitting, upon a specified
notification period by the City of McHenry, a franchise fee increase to 5% of the gross
revenues. In response to Alderman Baird's request for clarification regarding Section VI,
.: Paragraph F, regarding density, City Administrator Lobaito stated, as the density standard
is defined in the franchise renewal agreement, every resident within the corporate limits
of the City of McHenry will be furnished cable service at the prevailing installation charge.
Some discussion followed regarding the $35,000 signing allocation and TCI's intent to
pass this cost on to subscribers. Council requested every effort be made to amortize this
cost over the ten year life of the renewal agreement.
February 10, 1999 Page 4
TO representative, Mr. Higgins, stated the cost has always been amortized as per
FCC regulations, however, the City's ten-year amortization request will be considered.
Mr. Higgins, responding to Alderman Baird's inquiry, stated credit requests for service
interruption can be made in writing or verbally, by telephone. A lengthy discussion
followed regarding the assessment of late fees.
Mayor Cuda requested Council be provided TCI's national range of assessed late
fees. Attorney Flood reported lengthy investigation has verified the late fee is assessed
after cable services have been provided. In addition, Mr. Higgins reported TCI's billing
cycle process has been upheld as a national standard. The late fee is assessed if the
current bill has a balance of $10 or more. Further discussion followed regarding the
expanded definition of gross revenues. In response to Alderman Baird's inquiry, Mr.
Higgins confirmed many cable service costs, including leased access, commercial
advertising, home shopping and equipment, can be included in cable programming rates.
Mr. Higgins stated TO would be unwilling to agree to this limitation. Federal regulation
grants cable providers this cost (pass-through) option. Although TO currently does not
include these service costs in their cable programming rates, they would be unwilling to
preclude their ability to initiate this option. The discussion continued.
Attorney Flood stated language could be incorporated into the proposed renewal
agreement requiring all additional gross revenues must be attributable to services provided
within the corporate limits of the City of McHenry. In addition, Mayor Cuda directed
Attorney Flood to incorporate language into the proposed renewal agreement prohibiting
the inclusion of specified service costs within cable programming rates.
It was noted a twenty-four hour minimum notification to affected property owners
prior to construction or reconstruction requiring entry on private property is required as
part of the renewal agreement. Work performed in an emergency in easements, as well
as installation and service calls, are exempt from this provision.
In response to Mayor Cuda's inquiry regarding construction cleanup,Attorney Flood
explained the City can utilize the Letter of Credit provided for by TO in the amount of
$20,000 to remedy any such franchise breach. In response to Alderman Murgatroyd's
inquiry, Mr. Higgins stated feeder cable from the line to individual homes is typically
buried six inches deep, but can be buried as deep as twelve inches.
In response to Council's inquiry regarding deregulation, Mr. Higgins stated
deregulation affected expanded basic service rates only. In response to Alderman
Murgatroyd's inquiry, Attorney Flood stated all other area municipalities are requiring the
5% franchise fee increase during franchise renewal negotiations. Alderman Baird again
requested consideration be given to changing the late payment fee cycle to a later time
frame. Mr. Higgins stated the billing cycle will not be changed, however, a reduction in
the late payment fee will be considered.
Mayor Cuda requested Attorney Flood investigate Mr. Higgins statement regarding
the inability to change the billing cycle. In response to Alderman Bolger's inquiry
regarding construction specifications, Mr. Higgins stated Illinois Statutes regulate
construction specifications for all utilities. In addition, all cable installers undergo a
rigorous 16-week training program and become certified.
In conclusion, Mayor Cuda summarized Council's comments and concerns:
• Inclusion of language permitting the increase of franchise fees from 3% to 5%
upon written notification by the City of McHenry;
• The ten-year amortization of the $35,000 signing fee;
• Submission of TCI's national range of assessed late fees;
• Incorporate language into the renewal agreement requiring all additional gross
revenues must be attributable to services provided within the corporate limits of
the City of McHenry;
• Incorporate language into the proposed renewal agreement prohibiting the inclusion
of specified service costs within cable programming rates;
• Verification regarding the billing cycle process and the inability to customize the
cycle for the City of McHenry;
• Attempt to reduce the $5 late fee.
February 10, 1999 Page 5
City Administrator Lobaito concluded the discussion informing Council their request
for a twenty-four hour local number will not be feasible, as stated by TCI. TCI does,
however, maintain a local office with regular business hours. In addition, the call center
has been relocated from Denver to a northeastern Illinois suburb, Mount Prospect.
Quarterly service reports must be submitted to the City of McHenry, and, if service
standards are not met, fines can be assessed. TO has also informed Staff, Council's
request for Internet Services will not be possible. TCI has stated their Internet Service
is a joint venture, and therefore, cannot be given away free of charge. Free drops will
continue to be provided public buildings.
AWARD OF BID: PETERSEN FARM WINDOW REPLACEMENT - MARSHALL-
WIEDENHOEFT - $2260.00
City Administrator Lobaito informed Council as per the stated conditions of the
Purchase Agreement for Petersen Farm, the City of McHenry is obligated to maintain the
condition of the Petersen Farm residence. Window replacement and repair was
specifically enumerated in the Purchase Agreement. Window repair work was initiated.
It was discovered, however, the kitchen bay window had deteriorated beyond repair.
As the Petersen Farm site has now been designated a City of McHenry Historic Landmark,
Staff applied for and received a Certificate of Appropriateness from the Landmark
Commission. Quotes were sought to replace the bay windows that consist of three
separate double-hung windows in the bay area. Marshal l-Wiedenhoeft of McHenry,
Illinois, submitted the lowest quote in the amount of $2,260. City Administrator Lobaito
also noted the 1998-1999 Budget reflects a $4,000 figure for this window project. He
explained if Council awards the bay window installation project to Marshall-Wiedenhoeft,
the project will be $520 over budget.
Motion by Bolger, seconded by Murgatroyd, to award the Petersen Farm kitchen
bay window installation project to the low quote by Marshall-Wiedenhoeft of McHenry,
Illinois in an amount not-to-exceed $2,260.
Voting Aye: Bolger, Murgatroyd, Baird.
Voting Nay: None.
Absent: Glab, McClatchey.
Motion carried.
City Administrator Lobaito also noted the Agenda Supplement was incorrect.
Windows were repaired, however, screen replacement was not included in the initial
repair.
MAYOR - STATEMENT AND REPORTS
There were no Mayor Statement or Reports.
COMMITTEE REPORTS
Finance Committee Chairman Alderman Murgatroyd reported a Joint Finance and
Parks and Recreation Committee Meeting had been conducted just prior to this evening's
regularly scheduled Council Meeting. The Committees would be bringing the following
joint recommendation to full Council:
• A 50/50 yearly share between the General Parks Developer Donation Fund and the
_ Recreational Center Fund;
• Payments would be made on a semi-annual basis.
Finance Committee Chairman Alderman Murgatroyd also reminded Council a
Finance Committee Meeting was scheduled for tomorrow, Thursday, February 11 , 1999,
to begin 1999-2000 Budget discussions. A second Finance Committee Meeting was
scheduled for Wednesday, February 24, 1999, at 7:00 p.m. to discuss projected
revenues and consider proposed policy decisions.
February 10, 1999 Page 6
STAFF REPORTS
Director of Community Development Napolitano reported a Committee of the Whole
Meeting will be scheduled sometime during the second week of March to review the
updated Comprehensive Plan Draft.
Director of Public Works Batt reported he and City Administrator Lobaito had met
with representatives of Teamsters Local #301 and the Public Works Bargaining Unit to
begin contract negotiations. Ground rules and standards were discussed with the first
negotiation session scheduled for March 1st.
Director of Parks and Recreation Merkel reported the Junior Youth Ball League Joint
Meeting was scheduled for February 23rd at 7:00 p.m. in the Parks and Recreation
Conference Room.
Chief of Police Joyce reported he and City Administrator Lobaito had met with the
McHenry Police Officer Association Bargaining Units 1 and 2. A list of their requests will
be provided Council by City Administrator Lobaito in the Friday Agenda Packet.
NEW BUSINESS
Parks and Recreation Committee Chairman Alderman Baird reported he had
attended a Northern Illinois Special Recreation Association Meeting on Monday, February
8th. The NISRA organization is seeking new larger office space. A vote had been taken
by the Board Members to authorize the NISRA Staff to negotiate a lease and/or a lease
purchase agreement. Property ownership by NISRA participating municipalities has been
addressed. If a municipality withdraws from the NISRA organization, property ownership
rights are forfeited. However, if the NISRA organization dissolves, each participating
municipality will maintain a prorated equity portion.
ADJOURNMENT —'
Motion by Baird, seconded by Murgatroyd, to adjourn at 9:03 p.m.
Voting Aye: Bolger, Murgatroyd, Baird.
Voting Nay: None.
Absent: Glab, McClatchey.
Motion carried.
The Meeting was adjourned at 9:03 p.m.
'1
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CI CLER MAYOR