HomeMy WebLinkAboutMinutes - 11/12/2001 - City Council REGULAR MEETING
NOVEMBER 12, 2001
The Regular Meeting of the McHenry City Council was called to order by Mayor
Althoff at 7:30 P.M. on Monday, November 12, 2001 in the Council Chambers of the
Municipal Center. At roll call the following Aldermen were present: Bolger, Low,
Murgatroyd, Wimmer. Alderman Glab arrived at 7:40 p.m. Absent: None. City Staff in
attendance were: City Administrator Lobaito, City Clerk Jones, Director Public Works Batt,
Director Parks and Recreation Merkel, Director Community Development Napolitano,
Assistant Administrator Maxeiner. City Attorney McArdle arrived at 8:30 p.m. Absent: City
Chief of Police Kostecki.
TEN MINUTE PUBLIC INPUT SESSION
Joseph Rubino owner and operator of D&J Automotive located at 926 North Front
Street addressed Council concerning the City's installation of approximately 35 feet of sod
in front of his business establishment. Mr. Rubino opined the sod is creating a problem for
his customers attempting to utilize spaces in his parking lot. Mr. Rubino requested the City
remove the sod and restore the parking area to its original condition.
Mayor Althoff referred Mr. Rubino to City Administrator Lobaito with direction that
Staff investigate Mr. Rubino's concerns and report back to Council at the November 19,
2001 Regular Council Meeting.
L.. CONSENT AGENDA
Motion by Bolger, seconded by Low, to approve the Consent Agenda as presented:
• Proclamation, Snug Hugs for Kids Days;
• Payment of Debt Service due on long term debt:
1. 2000 Special Service Area 1A, $42,100
2. 2000B Alternate GO Bonds, $282,200
3. 2000A Alternate GO Bonds, $284,600
• Recommendation to hire Matthew Werhane as Water Meter Reader;
• Recommendation to hire Kurt Yencich as Water Meter Reader;
• Recommendation to hire Esteban Ramirez as replacement employee in the Street
Division
• Employee Transfer, Water Division employee William Regner to Building Inspector
II;
• Ordinance reducing number of Class A Liquor Licenses from 26 to 25;
• Approval of Year 2002 City Council Meeting Schedule;
• Main Street Revitalization Project, final payment and change order, not to exceed
$47,307.04;
• Letter of Credit reduction, Boone Creek Phase I;
• Approve City Council Minutes, October 1, 2001
Voting Aye: Bolger, Low, Murgatroyd, Wimmer.
Voting Nay: None.
�— Absent: Glab.
Motion carried.
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PROPOSED YEAR 2001 TAX LEVY
Assistant Administrator Maxeiner informed Council each year the corporate
authorities are required to estimate the revenues required to operate the various functions
city government. Included in the revenues are those amounts funded through property tax.
Council must estimate the amounts required for property tax levy so that the funds
generated from real estate taxes will become available for use during the 2002-2003 Fiscal
Year. As per State Statute the estimated levy must be approved by Council and submitted
to the County Clerk by the last Tuesday in December, which is Tuesday, December 25"'.
Staff is proposing a 2001 levy amount of $2,930,848, an increase of 15% over the prior
year's extension, $2,548,564. The actual levy extension, however, will likely be less after
the County Clerk has applied the property tax extension limitation. The levy extension over
the past five years has grown between 5.7% and 7.7% per year. The County Clerk will
provide the limiting tax extension in March 2002, and will reduce the levy amount
accordingly, if the tax extension limitation has been exceeded. It is therefore critical the
original estimate for tax levy request be considerably higher than the anticipated levy, in
order to capture all new growth in the community, and all of the property tax revenue the
City of McHenry is entitled to receive. As the tax levy estimate reflects an increase of more
than 5% when compared to the previous tax levy extension, a Public Hearing must be held
to meet the requirements of the Truth in Taxation Act. Staff is recommending the Public
Hearing be scheduled for December 3, 2001 at 7:30 p.m., prior to the Regular City Council
Meeting.
Alderman Murgatroyd noted the importance of capturing growth money. If the levy is
not set high enough, valuable new growth could be lost once the extension limitation is in
place. He noted the new limit is based on the increased levy total. Most of the levy
increase is derived from new construction. City Administrator Lobaito stated due to the
amount of growth experienced in the area the tax rate has been driven down. Although
more is being collected in property taxes the actual rate being paid has been reduced.
Motion by Murgatroyd, seconded by Wimmer, to schedule a Public Hearing, as
required by the Truth in Taxation Act of 1981, for December 3, 2001 at 7:30 p.m.
Voting Aye: Bolger, Low, Murgatroyd, Wimmer.
Voting Nay: None.
Absent: Glab.
Motion carried.
THE PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM
City Administrator Lobaito stated the Capital Improvement Program (CIP) was
established as a tool to determine what revenues are available for Capital Improvement
Projects and to establish a means of evaluating the status of the City's ongoing Capital
Improvement Projects. Additionally, the CIP provides an opportunity to create and discuss
numerous policies for Council consideration. City Administrator Lobaito noted the CIP -�
document represents an aggregation of project requests received, which can be
considered during the 2002-2003 budget discussions.
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`-- A Capital Improvement Program establishes project priorities, estimates projects
costs, and identifies available funding sources. It is recognized as a finance management
tool as well as a long-range planning device. City Administrator Lobaito stated, as
presented, the proposed Five-Year Capital Improvement Program attempts to balance the
competing needs of maintaining existing facilities versus the need for expanded and/or
new facilities. Examples of capital improvement projects include of a public building,
streets, sidewalks, storm sewers, parks, and water/sewer systems including treatment
plants.
A Capital Improvement is an improvement of public facilities or infrastructure that
meets predetermined criteria. Capital Improvements represent projects involving the
expenditure of public funds over and above annual operating expenses for the purchase,
construction and/or replacement of the long-term physical assets of a municipality. The
predetermined criteria for the City of McHenry Capital Improvements Program are as
follows:
The proposed project must:
■ Be large in size and/or scope;
■ Have a substantial price tag in excess of$10,000;
■ Have long-term usefulness and permanence, specifically, greater than ten years;
■ Involve expenditures of a non-recurring nature;
■ Add substantially to the value of the City's fixed assets.
Alderman Glab arrived at 7:40 p.m.
Assistant Administrator Maxeiner expressed appreciation to Director of Public
Works Batt, Director of Parks and Recreation Merkel and Assistant Director of Public
Works Marcinko for their efforts in providing and compiling the information in this evening's
packet. Assistant Administrator Maxeiner introduced Christy Lamphier, Senior Accountant.
Assistant Administrator Maxeiner stated the first year of the CIP, referred to as the Capital
Budget Year, was incorporated into the City's 2001-2002 operation budget. He explained,
as a planning device, the Capital Improvement Program does not appropriate funds for
capital projects. Projects, instead, are included in subsequent year budget requests
submitted to Council for consideration. The succeeding year's schedule of projects makes
up the Capital Improvement Program. The Capital Improvement Program is then a multi-
year preparation, scheduling, and updating of projects and related equipment to be built,
improved, and/or acquired by a municipality, within a fixed period of time.
Assistant Administrator Maxeiner also noted the following benefits of adopting a
Capital Improvement Program:
■ Reduction of budget spikes from year to year;
■ Enhanced ability to compare operational expenditures from year to year;
■ Collective assessment and prioritization of projects;
■ Higher bond ratings attributable to the existence of a formal Capital Improvement
Program;
■ Significant savings on interest for projects financed through bond issuance;
■ Improvement of intergovernmental and regional cooperation;
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■ Enhanced opportunities for participation in federal and/or state grant programs;
■ Better analysis of future revenue allocations for proposed projects.
In conclusion, Assistant Administrator Maxeiner iterated the adoption of the
proposed five-year Capital Improvement Program does not replace the appropriation
ordinance and/or the budget. It is only a financing tool and planning device.
City Administrator Lobaito and Assistant Administrator Maxeiner presented the
proposed five-year Capital Improvements Program highlighting the following information:
■ Project Selection Guidelines, Page 4
■ Capital Improvements Program Financial Policies, Page 5
■ Summary Section, Page 5;
■ Index of Projects, Page 7;
■ Drainage Projects, Pages 11 through 20;
■ Water/Sewer Service Projects, Pages 21 through 42;
■ Economic Development Projects, Pages 43 through 45;
■ Municipal Facility Projects, Pages 46 through 61;
■ Transportation Projects, Pages 62 through 72;
■ Funding Sources and Mechanisms, Pages 73 through 78;
■ Funding Sources by Project Summary, Pages 79 through 83;
■ Schedule of Projects by Funding Source, Pages 84 through 96
■ Summary of Revenue by Funding Source, Pages 97 and 98;
■ Existing Long Term Debt Service Requirements, Page 99
City Administrator Lobaito stated Staff was seeking Capital Improvement Program
approval by January of 2002, to permit project incorporation into the 2002-2003 budget
process. He noted at later meetings Council will be asked to prioritize the projects and
pare them down to a manageable level. Staff continues to analyze current revenue trends
in light of recent global and national events.
CAPITAL IMPROVEMENTS PROGRAM PROJECTS- FISCAL YEAR 2002-2003
Assistant Director of Public Works Marcinko reviewed the proposed Capital
Improvements Program projects for Fiscal Year 2002-2003, including:
Drainage Proiects:
■ Bull Valley Drainage;
■ Edgebrook Drainage Phase II;
■ Lakeland Park Drainage, Meadow.
Water/Sewer Service Projects:
■ Water Source Study;
■ Main Street Sanitary Sewer;
■ Sioux Lane Elevated Tank Painting;
■ Water Main, Route 120;
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a.
■ North Central Interceptor Sewer;
■ Construction Water Plant No. 5;
■ Well No. 12;
■ Central Wastewater Treatment Plant Nitrification and Expansion;
■ Elevated Storage Tank, West Side;
■ South Wastewater Treatment Plant Expansion.
Economic Development Proiects:
■ Riverwalk.
Municipal Facilities Proiects:
■ South Riverfront Park Bridge;
■ Olde Mill Pond Bridge;
■ Veteran's Park Electrical;
■ Knox Park Access Drive;
■ Project Zone Skate Park Lighting;
■ Petersen Park Beach Expansion;
■ Freund Field Improvements;
■ Recreation Center;
�.- ■ Public Works Garage;
■ Public Safety Radio Infrastructure;
■ Civil Defense Sirens;
■ Miscellaneous Playground Renovations
Transportation:
■ Walkway, Maple Avenue to Leonard Street;
■ Route 120 Improvements, Local;
■ Royal Drive and Crystal Lake Road Intersection Traffic Signal Installation;
■ Street Lights Installation on Route 120;
■ Street Improvements Program;
■ Winding Creek Traffic Signal Installation.
In response to Alderman Bolger's inquiry regarding the exact location of the Bull
Valley Drainage problem, Staff explained the problem extends just west of Hilltop, south of
Bull Valley Road and down to the channel, including some of the side roads. City
Administrator Lobaito citing extensive flooding in the area during June of 1999, Council
authorized Baxter and Woodman to conduct a drainage study analyzing and identifying
potential improvements. Extensive discussion ensued regarding drainage issues.
Alderman Bolger questioned the need for an engineering study for the Meadow
Lane Box Culvert. City Attorney Lobaito explained the engineering study was necessary to
determine the extent of work required and the impact of additional flows experienced due
to development.
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Alderman Glab expressed concern regarding the Lakeland Park Drainage project's
effect on Boone Creek, suggesting retention upstream as well as redirecting water to
McCullom Lake. Additionally, Alderman Glab noted his concerns with the affects drainage
improvements in one subdivision might have on surrounding areas. Staff assured
Alderman Glab his concerns would be addressed as each project comes to fruition.
Staff suggested the issuance of bonds to allow for a comprehensive approach to
drainage across the City, enabling the possibility of initiating two programs simultaneously
for the sake of expediency.
In response to Alderman Bolger's inquiry regarding a Storm Water Utility Fee to
fund a portion of the drainage projects, City Administrator Lobaito explained Alderman
Bolger was referring to an article in Baxter and Woodman's newsletter, regarding the use
in some communities of a Storm Water Utility Fee, which is included on each resident's
utility bill. City Administrator Lobaito noted any money collected as a result of this fee is
deposited into a special fund used only for storm water improvements. City Administrator
Lobaito informed Council he has investigated the program and discovered it is unavailable
to the City, as McHenry is not a home rule community.
City Administrator Lobaito suggested Council explore other revenue sources to
initiate a program to address the City's major drainage areas. He noted Public Works
Department personnel currently address a number of drainage problems, to the detriment '1
of other maintenance projects throughout the City. Extensive discussion ensued
concerning the issues of drainage improvements and funding mechanisms.
In response to Council inquiry, Staff noted the Miscellaneous Playground
Renovations line item entails park system playground equipment replacements resulting
from the Americans with Disabilities Act (ADA) and new safety guidelines.
City Attorney McArdle arrived at 8:30 p.m.
Assistant Director Marcinko informed Council Baxter and Woodman will be
conducting a water source study to determine the future locations of wells, types of wells
required, and the timing of requirements over the next twenty years.
Assistant Director Marcinko noted installation of a 12-inch water main on Green
Street from John Street to Kane Avenue, currently scheduled in the Capital Improvement
Program for 2006-2007, originally was on the 1988 Master Plan, but never initiated.
Assistant Administrator Maxeiner advised Council the Riverwalk Project currently is
the only project outlined under Economic Development. The design and function of the
Riverwalk is yet to be determined. Development plans are currently underway.
Director of Parks and Recreation Merkel summarized the projects outlined under
Municipal Facility Projects for Council. Discussion followed regarding design and
construction of the Knox Park Access Drive. City Administrator Lobaito advised Council
numerous discussions have taken place regarding the limited access to the Knox property,
immediately south of the Municipal Center, and how to develop a driveway or roadway
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system to access the Knox Barn and Skate Park. City Administrator Lobaito opined with
current growth and development on Route 31 and the possibility of a community center on
property adjacent to the Municipal Center, it has been suggested a roadway study
exploring access to all of the surrounding properties might be in order.
Director Merkel advised Council prior plans for the Recreation Center have called
for a Recreation Center with basketball and racquetball courts, fitness center, meeting
rooms, swimming pool, locker room facilities and administrative offices. He stated the City
is currently exploring the possibility of partnership with a private entity to fund a Recreation
Center.
Assistant Director of Public Works Marcinko stated the current Public Works garage
has reached maximum capacity. Design engineering for the new Public Works garage has
been targeted for the year 2002-2003, with proposed construction beginning in 2003
through 2005. Construction of a new facility would facilitate equipment for the Public
Works Department to be maintained in one area rather than multiple facilities throughout
the City. Extensive discussion followed regarding possible uses for the current Public
Works garage adjacent to Knox Park.
Motion by Bolger, seconded by Glab, to go into Executive Session at 9:30 p.m. to
discuss Personnel, Property Acquisition and Potential Litigation.
Voting Aye: Bolger, Glab, Low, Murgatroyd, Wimmer.
Voting Nay: None.
Absent: None.
Motion carried.
Council went into Executive Session at 9:30 p.m.
Motion by Bolger, seconded by Low, to return to Open Session at 10.20 p.m.
Voting Aye: Bolger, Glab, Low, Murgatroyd, Wimmer.
Voting Nay: None.
Absent: None.
Motion carried.
Council went back into Open Session at 10.20 p.m.
ADJOURNMENT
Motion by Low, seconded by Glab, to adjourn the meeting at 10:20 p.m.
Voting Aye: Bolger, Glab, McClatchey, Murgatroyd, Baird.
Voting Nay: None.
Absent: None.
Motion carried.
�.. The meeting was adjourned at 10:20 p.m.
MAYOR \�ITY CLERK