HomeMy WebLinkAboutMinutes - 01/14/2002 - City Council REGULAR MEETING
JANUARY 14, 2002
The Regular Meeting of the McHenry City Council was called to order by Mayor
Althoff, at 7:30 P.M. on Monday, January 14, 2002 in the Council Chambers of the
Municipal Center. At roll call the following Aldermen were present: Bolger, Glab, Low,
Murgatroyd. Absent: Wimmer. City Staff in attendance were: City Administrator Lobaito,
City Clerk Jones, Attorney Cahill, Director of Public Works Batt, Director Community
Development Napolitano. City Attorney McArdle arrived at 9:09 P.M. Absent: None
PUBLIC MEETING: REDEVELOPMENT PROJECT AREA RELATING TO THE
ESTABLISHMENT OF A TAX INCREMENTAL FINANCING DISTRICT
Mayor Althoff opened the Public Meeting on the redevelopment project area relating
to the establishment of a Tax Increment Financing (TIF) District at 7:32 p.m. She stated
the intention of the meeting was to provide an overview of the project to the public.
In attendance were Attorney Kathleen Orr of Orr and Associates, TIF District legal
advisor, and Jack Pettigrew, principal of Trkla, Pettigrew, Allen & Payne, Inc., the planning
firm involved in the project.
Mayor Althoff stated the parameters of the meeting, noting following questions
and/or comments from Council, she would open the floor to audience participation. No
formal action will occur.
Ms. Orr addressed Council stating Tax Increment Financing is an economic
�-- development tool utilized by most municipalities throughout the State of Illinois. She
explained Tax Increment Financing is a mechanism, which permits the increase in taxes, to
be utilized by the municipality, captured by the municipality for reinvestment in a specially
designated area. Additionally, Ms. Orr explained there are very strict laws governing the
TIF District requiring individuals affected by the TIF be provided with a thorough
understanding of the process.
Mr. Pettigrew summarized the TIF Eligibility Study explaining the Study is required
by law to determine if the project area qualifies as a TIF District. Mr. Pettigrew informed
Council the Project Area contains 167 buildings located within 21 tax blocks. The entire
Project Area consists of approximately 129.2 acres:
■ 31.5 acres - the Fox River and Boone Lagoon water areas;
■ 22.1 acres - street rights-of-way; and
■ 75.6 acres - developed land within the 21 tax blocks.
Mr. Pettigrew stated the Project Area is characterized by aging and deteriorating
properties, as well as vacant buildings and spaces within buildings, with most blocks
containing a mix of incompatible commercial and residential activity.
Mayor Althoff stated establishment of the TIF District does not guarantee a
commitment on the part of the City. It permits the City to continue investigating the
desirability of moving forward with the project, including further investigation of the total
cost of the project and how the City would pay the cost back. She advised the
development of the TIF District is an ongoing process, which will provide ample
opportunity for any inquiries as progression of the project takes place.
Page 2
1/14/02
Mayor Althoff stated with certainty should the project move forward easements would be
required from those property owners located along the Fox River and the creek bed. It is
not anticipated that any owner-occupied buildings would be acquired. Most of the project
is done to enhance the commercial downtown Green Street and Riverside Drive areas.
Mayor Althoff opened the floor to comments and questions from Council.
Alderman Bolger stressed the advantages of a TIF District as a great stimulus to
economic development in the City and expressed his support for the project.
Mayor Althoff opened the floor to questions from the public.
Richard Hignight, 715 North Lillian, opined the increase of businesses in the
downtown area may be affected by the large businesses in the surrounding area.
Alderman Glab opined the Riverwalk Project would unify the downtown area.
Bruce Uhl, 701 Woodridge Trail, stating he does not live in the Project area,
inquired about the statistics of the TIF District presented by Mr. Pettigrew and the affect of
the TIF District on those living outside the area. Ms. Orr responded the statistical study
shows the area taxes have increased annually only 1.29%. The rationale for TIF is the
maximum life of the TIF District is 23 years, if the project is completed prior to that period
of time there is an increase in the Equalized Assessed Value to the tax base.
Dick Buchert, property owner of 3308 West Elm, stated his tenant would not
appreciate the increase in rent a TIF would facilitate due to the EAV going up. Mr. Buchert
inquired if the Riverwalk would increase the value of his property. He was informed it was
unknown at this time if specific property values would increase.
Pam Nolan, 3403 Venice, stated she would like to see the community take a vote on
whether or not to approve the Riverwalk Project and proceed. She opined if the project is
a community project, which benefits the entire community, the entire community should be
paying for the improvement not just the TIF District. Ms. Nolan expressed concern
regarding the viability of the project. In response to Ms. Nolan's inquiry Mayor Althoff
stated the TIF District is not paying for the project and a great deal more investigation will
take place prior to ground breaking. Alderman Murgatroyd noted in addition to $1.2
million, already set aside for the project, other sources are being explored for financing of
the project
Thomas Popovich, property owner of 3416 W. Elm Street, inquired how the
boundaries of the TIF District were determined. In response Mr. Pettigrew explained the
study was influenced by experience within the City encompassing as much of the
downtown area as possible that qualified under statute. Mr. Popovich asked if any of the
seated Aldermen resided within the TIF District. Ms. Orr responded the law provides if an
Alderman or Mayor owns property or resides within the TIF District, they may not
participate in discussion or vote on the TIF District.
Page 3
1/14/02
Len Gerdzunas, 3413 Venice, inquired why the Main Street area was not included
in the TIF District. It was acknowledged by Ms. Orr other areas could be included in the
future. Mr. Pettigrew explained when a TIF area is being studied, and a plan is being
proposed, it is more generalized, as a decision has not been made to proceed with
implementation. After a decision has been made to adopt a TIF District, the details of the
plan become more definitive.
Ms. Orr outlined the scheduled timeline to Adopt the Tax Increment Redevelopment
Plan & Project for the City of McHenry. It is anticipated the Redevelopment Plan and
Budget will be presented at the first Council meeting in February 2002. Ms. Orr advised
adopting a TIF District is a lengthy process and each step must be addressed.
Bob Zriny, 3321 West Venice, referencing the expiration of the TIF District after 23
years, inquired when the 23-year period begins. In response Ms. Orr stated the term
begins on December 31st of the year the TIF is approved and expires December 31", 23
years later.
Mayor Althoff thanked Ms. Orr and Mr. Pettigrew for their presentation, and
expressed Council's gratitude to the audience for their questions and comments.
Motion by Glab, seconded by Bolger, to close the Public Meeting regarding the
redevelopment project area relating to the establishment of a Tax Increment Financing
District.
Voting Aye: Bolger, Glab, Low, Murgatroyd
Voting Nay: None.
Absent: Wimmer.
Motion carried.
The Public Meeting was closed at 8:47 P.M.
Mayor Althoff called a recess. The regular Council Meeting was reconvened at 8:56
P.M. with all still in attendance.
TEN MINUTE PUBLIC INPUT
No one signed in to speak during the Ten Minute Public Input Session.
CONSENT AGENDA:
Motion by Bolger, seconded by Low, to approve the Consent Agenda, as presented;
■ Proclamation in recognition of a Day of Service in honor of Martin Luther King,
Jr.;
■ Request to connect to Police Department alarm panel from Rubloff Development
Group for the following locations:
1. 2244 North Richmond Road
Page 4
1/17/02
2. 2328 North Richmond Road
3. 2334 North Richmond Road
4. 2340 North Richmond Road
5. 2344 North Richmond Road
6. 2346 North Richmond Road
7. 2362 North Richmond Road.
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
Absent: Wimmer.
Motion carried.
YEAR 2002 FIESTA DAYS SCHEDULE AND REQUEST TO USE CITY FACILITIES
In attendance were Deborah Harr, President and Chief Executive Officer of the
McHenry Area Chamber of Commerce; Michael Billings from Testing Service Corporation
and Chairman of the 2202 Fiesta Days Committee; Karen Noel from Pressing Matters;
Fiesta Days Entertainment Director John Noel from Pressing Matters; Jack Slaughter from
Wal-Mart; Kathy Pelz from McHenry Savings Bank; Carolyn Wottring from Family Services
and Community Mental Health; Kurt Rice from Culligan Water Services.
Ms. Harr advised Council the 54th Annual Fiesta Days will be held starting July 12,
2002 through July 21, 2002. She noted the following revisions/highlights to the 2002 "1
Fiesta Days Schedule of Events:
• Amusement rides, which in the past have taken place on Friday, Saturday, Sunday
and Monday, will this year take place on Thursday, Friday, Saturday and Sunday.
Ms. Harr stated the Big Wheels Race and Kiwanis Teen Night, previously held on
Monday night will be rescheduled to Thursday, July 11, 2002.
• The entertainment contracted for Friday, July 12, 2002 is Kansas and Full Tilt.
Contracts have been signed, tickets will be pre sold. The Chamber of Commerce
anticipates a capacity crowd.
• Entertainment on Saturday, July 13, 2002 is Dr. Rhythm & the Rockers,
Backstreet Driver and American English.
Entertainment on Sunday, July 14, 2002 is Denny Diamond, Johnny Star & the
Meteors and Avenue Max.
• The Laser Show, tentatively scheduled for Sunday, July 141h will be confirmed within
the next thirty to sixty days;
• The Parade is scheduled for Sunday, July 21 st at 1:30 p.m. with the route yet to be
determined.
Page 5
1/14/02
Motion by Bolger, seconded by Low, to approve the 2002 Fiesta Days schedule for
July 12, 2002 through July 21, 2002, as follows:
Friday.July 12°i Saturday.July 13" Sunday,July 14'"
6 pm—11 pm D Noon—10 pm
Big Band Nigh Food Fiesta ay#1 Food Fiesta Day#2
Entertainment Entertainment Entertainment
Petersen Park Petersen Park Petersen Park
Beer/Wine Service Beer/Wine Service Beer/wine Service
Volleyball Tournament Volleyball Tournament
Plywood Boat Challenge/McCullom lake Car Show—9 am to 2 pm
Amusement Rides Laser Shaw
Amusement Rides
Thursday,July 18'" Friday.July I? Saturday.July 20" Sunday,July 21'
6 pm—9:30 pm 3 pm—8 pm All Day 11 am—6 pm
Concert in the Park Kid's Ice Cream Social Sidewalk Sales Jaycees BBQ Chicken Dinner
Parade Marshal and Kid's Entertainment Arts 8 Crafts in the Park Parade—1:30 pm
Sponsor Ceremony Veteran's Memorial Park 9:30-4:30 Vet's Park Entertainment in Gazebo after Parade
7:45 PM—8:15 PM No Beer/Wine Service Antique Boat Show 3 pm to 5 pm Vet's Park
Entertainment 10 am—3 pm No Beer/Wine Service
City Stage Band Dobyn's House Pier
Beer/Wine Service
Veteran's Memorial Park
2002 Parade Route:Still to be determined.
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
�-- Absent: Wimmer.
Motion carried.
Alderman Bolger suggested Kay Bates, Membership Director for the McHenry Area
Chamber of Commerce be introduced and recognized for her efforts in Chamber-related
activities throughout the year.
Ms. Harr announced Dennis Welter as the winner of this year's Frank E. Low
Award. Ms. Harr informed Council Mr. Welter will receive the award at the Chamber of
Commerce Dinner Dance, scheduled for January 26, 2002.
Additionally, Ms. Harr announced the Chamber of Commerce is celebrating its 50th
anniversary.
REQUEST TO WAIVE BIDS AND AWARD CONTRACT TO PERFORMANCE
PIPELINING, INC., IN AN AMOUNT NOT TO EXCEED $11,304
Assistant Director of Public Works Marcinko informed Council in May of 2001 City
Engineers, Baxter and Woodman submitted a Facility Planning Report for wastewater
treatment plants for the City of McHenry. In their report Baxter & Woodman recommended
the City locate and correct any infiltration, groundwater entering into the sanitary service
system, adding to the hydraulic capacity of each plant.
Page 6
1/14/02
Four known sources of infiltration through manhole covers have been identified:
• Route 31, Irish Prairie
• Route 31, Northwest corner of Super 8 (No. 1)
• Route 31, Northwest corner of Super 8 (No. 2)
• Route 31, Behind Buss Ford
It has been determined due to the depth, location and volume of flow through each
of the manholes identified it would be cost prohibitive to replace them.
Assistant Director Marcinko advised Council Performance Pipelining, Inc. provides a
service, which enables the rehabilitation of manholes without taking them out of service,
resulting in less disruption to residents in the area. Staff is recommending utilization of the
Permacast 10,000 Manhole Rehabilitation System at a cost of $11,304. Assistant Director
Marcinko noted the Irish Prairie manhole replacement is budgeted at $40,000,
recommending this line item be utilized to eliminate the four areas of known infiltration
indicated.
Motion by Bolger, seconded by Glab, to authorize the waive of bid, and to authorize
the Mayor's execution of a contract with Performance Pipelining, Inc., in an amount not to
exceed $11,304.
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
Absent: Wimmer.
Motion carried.
SEMI-ANNUAL DISTRIBUTION OF DEVELOPER DONATIONS TO TAXING ENTITIES
Mayor Althoff addressed Council advising Developer Donation Fees are collected
by the City of McHenry and distributed twice a year to the appropriate taxing bodies. Mayor
Althoff noted in July 2001 it was established all affected taxing districts would be asked to
appear at the July meetings only and the January checks would be mailed directly to the
taxing entities. As outlined in the City's Subdivision Control Ordinance, Council must
approve and direct the City Clerk's semi-annual disbursement of Developer Donation Fees
to the following taxing districts:
McHenry Elementary School District 15
McHenry High School District 156
McHenry Public Library District
McHenry Township Fire Protection District.
Developer Donation Fees collected for the second half of 2001 are as follows:
McHenry School District 156 $ 94,863.30
McHenry School District 15 $176,174.70
McHenry Public Library District $ 24,023.00
McHenry Township Fire Protection District $ 24,023.00
TOTAL $319,084.00.
e
Page 7
1/14/02
City Clerk Jones noted the City of McHenry's Park and Recreation Department
received $339,495.00 in Developer Donation Fees for the same time period.
Motion by Glab, seconded by Bolger, to approve and direct the City Clerk's
disbursement of Developer Donation Fees for the second half of 2001, as follows:
McHenry School District 156 $ 94,863.30
McHenry School District 15 $176,174.70
McHenry Public Library District $ 24,023.00
McHenry Township Fire Protection District $ 24,023.00
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
Absent: Wimmer.
Motion carried.
AUTHORIZE THE EXPENDITURE OF $296,635 TO THE ILLINOIS DEPARTMENT OF
TRANSPORTATION FOR ROUTE 120 IMPROVEMENTS
Director of Public Works Batt informed Council the original cost of the Illinois
Department of Transportation (IDOT) Route 120 Improvements Project was over $800,000,
noting Assistant Director of Public Works Marcinko and City Engineers Smith Engineering
�- Consultants are to be commended for their efforts in bringing the cost of the project down
to $296,635. This amount includes black light poles in place of cast aluminum poles.
City Attorney McArdle arrived at 9:09 P.M.
Staff is requesting Council's authorization of the expenditure of $296,635 payable to
the Illinois Department of Transportation for Route 120 improvements. Assistant Director
Marcinko noted upon approval of the Agreement, the City is required to pay the State 95%
of its obligation under the Agreement. Director Batt advised the bid letting for the project is
June 2002 and the award of contract will likely occur in July 2002.
The amount covered in the Agreement is broken down as follows:
1. Traffic Signals
a. Draper/Ringwood $17,825
b. Meadow Lane 17,825
C. Oak Drive 9,513
d. Crystal Lake Road 9,513
e. Route 31 @ IL Rte. 120 no cost
TOTAL $54,676 $ 54,676.00
2. New Sidewalks
a. various locations between $16,819
IL Rte 31 and Draper Road
TOTAL $16,819 $ 16,819.00
Page 8
1/14/02
3. Resurfacing Parking Lanes
a. along IL Rte. 31 from $ 6,900
James Street to Main Street
TOTAL $ 6,900 $ 6,900.00
A breakdown of anticipated City expense at a 100% level is as follows:
1. Reconstruct parking lanes on the north side of Illinois Route 120, east of Illinois
Route 31
Cost $ 22,081 $ 22,081.00
2. Watermain adjustments at various locations throughout the project which
includes frame & lid adjustments, manhole adjustments, valve vault adjustments
and valve vault reconstruction.
Cost $ 41,159 $ 41,159.00
3. Street Lights (black coated)
Cost $155,000 $155,000.00
4. Traffic signals (black coated — 20 mast arms)
Five intersections x 4 mast arms per intersection, approximately
Cost To be determined -1
TOTAL $g 96 635.0
Motion by Bolger, seconded by Murgatroyd, to authorize the Mayor's execution of
an Agreement between Illinois Department of Transportation and the City of McHenry, with
an expenditure of$296,635, for the Route 120 Improvements Project.
Voting Aye: Bolger, Glab, Low, Murgatroyd
Voting Nay: None.
Absent: Wimmer.
Motion carried.
MAYOR— STATEMENT AND REPORT
There was no Mayor Statement and Report.
COMMITTEE REPORTS
Ad Hoc Ward Redistricting Committee Chairman Alderman Glab reported the
Redistricting Committee will be meeting on Wednesday, January 16, 2002 at 10:30 A.M. to
discuss redistricting of the Wards.
Parks and Recreation Committee Chairman Alderman Low informed Council a
Parks and Recreation Committee Meeting was held on January 10, 2002, iterating
discussions have begun regarding electrical improvements in Whispering Oaks Park and
Veterans Memorial Park in anticipation of the 2002 holiday season. Alderman Low also
stated some discussion took place concerning updating of holiday display decorations.
Page 9
1/14/02
DEPARTMENT HEAD REPORTS
�-- Director of Public Works Batt updated Council regarding the status of the Riverside
Drive North Interceptor Sewer Project. He advised while roadwork has been suspended
on Riverside Drive for the winter season, the contractor was not prohibited from working
along the detention pond in Timber Trails Subdivision. Staff discovered a newly-
constructed manhole has sunk an inch and a half since roadwork was suspended. Director
Batt opined this was an indication of unusually poor soil conditions and advised additional
soil borings have been initiated to ascertain the extent of the poor soil conditions. Director
Batt noted the Riverside Drive roadwork was scheduled to resume on March 18, 2002.
However, pending the results of the soil boring, the entire project has been halted.
Director of Community Development Napolitano noted Community Development
Committee Chairman Alderman Wimmer has scheduled a Community Development
Committee meeting for Wednesday, January 30, 2002 at 3:30 P.M.
City Clerk Jones stated letters addressing delinquent vehicle stickers were mailed
to residents with last names beginning with the letters A through M on January 11, 2002.
The program has generated $750 to date.
City Administrator Lobaito advised Council Staff continues to research the inception
of a Storm Water Fee for possible implementation to offset a program to assist in
resolution of some of the drainage issues throughout the community. City Administrator
Lobaito noted the House of Representatives is considering House Bill 3726. The Bill
provides that a municipality by ordinance may establish stormwater management service
fees to be assessed upon property served by the drainage system. It was noted a separate
stormwater service fund would be required for funds collected from the service fees. City
Administrator Lobaito stated he would keep Council apprised of progression of the House
Bill 3726.
City Administrator Lobaito reported the packets distributed to Council on Friday
were sent out via first class United States mail. The packets were not delivered until
Monday, January 14, 2002 and in some cases have not been received at all.
Consequently, City Administrator Lobaito stated the informational packets will, as in the
past, be hand delivered on Friday evenings to Council at their residence.
NEW BUSINESS
There was no new business.
EXECUTIVE SESSION
Motion by Bolger, seconded by Glab, to go into Executive Session at 9:17 p.m. to
discuss Potential Litigation.
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
L. Absent: Wimmer.
Motion carried.
Page 10
1/14/02
Council went into Executive Session at 9:17 p.m.
Motion by Bolger, seconded by Murgatroyd, to return to Open Session at 9:38 p.m.
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
Absent: Wimmer.
Motion carried.
Council went back into Open Session at 9:38 p.m.
ADJOURNMENT
Motion by Low, seconded by Glab, to adjourn the meeting at 9:39 p.m.
Voting Aye: Bolger, Glab, Low, Murgatroyd.
Voting Nay: None.
Absent: Wimmer.
Motion carried.
The Meeting was adjourned at 9:39 p.m.
Aw e-L '
MAYOR R / CITY CI_ RK
e