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HomeMy WebLinkAboutPacket - 12/17/2001 - City Council A G E N D A REGULAR CITY COUNCIL MEETING Monday, December 17, 2001 7:30 P.M. 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Public Input Session – 10 Minute Limitation 5. Consent Agenda:  Resolution : Richard Overton Park;  Resolution Water and Sewer Rate Increase;  Amended Resolution: Year 2002 City Council Meeting Schedule;  Ordinance Reducing the Number of Class A Liquor Licenses;  Ordinance Granting Parking Variance to McHenry Grounds Shopping Center, N. Richmond Rd.;  Authorization to Advertise for Assistant City Administrator ;  Authorization to Advertise for Information Technology Specialist;  Final Payment: Testing Service Corporation for 2001 Street Program, $5,992.86;  Final Payment: Fence Connection for Fox Ridge Park Fencing, $18,513.60;  Approve City Council Minutes of November 12, November 19, and December 3, 2001;  As Needed Checks for Approval;  List of Bills. 6. Request for Zoning Map Amendment, Conditional Use Permit, and Variance at 1309 Richmond Road. 7. Hickory Creek Farm Lease Agreement. 8. Request for Subordination of Lein from D& J Automotive, 926 North Front Street. 9. Recommendation to name Amcore Bank as City of McHenry Depository Bank. 10. Resolution Authorizing Investments in Banking Institutions. 11. Ordinance Amending Chapter 13, Sec. 13-501 providing for the Installation of Stop Signs in Boone Creek Subdivision. 12. Resolution and Joint Agreement with the Illinois Department of Transportation for Route 120 Improvements. 13. Mayor – Statement and Reports 14. Committee Reports 15. Department Head Reports 16. New Business 17. Executive Session: Litigation /Personnel 18. Adjournment Posted and Mailed: December 13, 2001 C O N S E N T A G E N D A The Consent Agenda for the December 17, 2001 City Council meeting consists of the following items:  Resolution : Richard Overton Park;  Resolution Water and Sewer Rate Increase;  Amended Resolution: Year 2002 City Council Meeting Schedule;  Ordinance Reducing the Number of Class A Liquor Licenses;  Ordinance Granting Parking Variance to McHenry Grounds Shopping Center, N. Richmond Rd.;  Authorization to Advertise for Assistant City Administrator ;  Authorization to Advertise for Information Technology Specialist;  Final Payment: Testing Service Corporation for 2001 Street Program, $5,992.86;  Final Payment: Fence Connection for Fox Ridge Park Fencing, $18,513.60;  Approve City Council Minutes of November 12, November 19, and December 3, 2001;  As Needed Checks for Approval;  List of Bills. Attachments C O N S E N T A G E N D A TO: Mayor and City Council FROM: John A. Lobaito, City Administrator FOR: December 17, 2001 Regular City Council Meeting RE: Water and Sewer Rate Increase In 1997, the City Council approved an ordinance raising the water and sewer rates to offset the rising operational cost of the water and sewer fund. At that time, a 30% increase was implemented over a three-year period (10% each year). The 1997 ordinance also provided for an annual adjustment to the rates in subsequent years based on the rate of inflation of the prior year. Rate adjustments are not automatic. The City Council must annually approve the new rates. Adjustments are calculated using the Consumer Price Index for All Urban Consumers for Chicago-Gary-Kenosha, as published by the U.S. Department of Labor. The rate of inflation for the past 12-months is 2.4%. By ordinance, the increase in rates is effective beginning February 1, 2002. The new rate schedule is included in the attached resolution. It is recommended that the City Council approve Resolution R-01-026. mmg CONSENT AGENDA TO: Mayor and City Council FROM: John A. Lobaito, City Administrator FOR: December 17, 2001 City Council Meeting RE: Reduction in Class A Liquor Licenses Recommendation: To approve the attached Ordinance reducing the number of Class A Liquor Licenses from Twenty-five to Twenty-four. As the City Council is aware, the Tamara Royale Inn/Ramada Conference Center located at 4100 W. Shamrock Lane closed for business this past summer. The Class A-18 liquor license for that establishment was never formally nullified. Mayor Althoff is recommending the approval of the attached ordinance reducing the number of Class A liquor licenses from twenty-five to twenty-four. mmg AGENDA SUPPLEMENT TO: Mayor and City Council FROM: John A. Lobaito, City Administrator FOR: December 17, 2001 Regular City Council Meeting RE: Revolving Loan Fund – D&J Automotive, 926 N. Front Street Recommendation: To approve the request and authorize the Mayor’s execution of the attached Subordination of Lein Agreement with Illinois State Bank. In 1998, Joe Rubino owner of D&J Automotive at 926 North Front Street secured a $50,000 loan from the City of McHenry through its Revolving Loan Program. The loan was secured via a second mortgage position against this property at 926 North Front Street. First Midwest Bank currently holds the first mortgage position. Pursuant to the attached letter, Mr. Rubino is attempting to refinance an existing loan for $80,000 with Illinois State Bank to reduce his interest rate. This loan will payoff the First Midwest Bank loan. The Illinois State Bank will secure their proposed loan with a mortgage filed against the property and move to first mortgage position. The Subordination of Lein agreement allows Illinois State Bank to obtain the first position against the property. The City of McHenry will continue to hold second position, the same position it held with regard to the original loan in 1998. It is recommended to approve this request and authorize the Mayor’s execution of the attached Subordination of Lein Agreement with Illinois State Bank. The agreement has been reviewed by the City Attorney. mmg AGENDA SUPPLEMENT TO: Mayor and City Council FROM: John A. Lobaito, City Administrator FOR: December 17, 2001 Regular City Council Meeting RE: Lease Agreement – Hickory Creek Farm Attachment: Copy of Proposed Lease The current lease for the Hickory Creek Farm between the City of McHenry and Mickey Sikula is set to expire on January 31, 2002. Prior to establishing a new lease, it is necessary that the City Council discuss the terms of the lease. A request for formal action will be placed on the January 7, 2002 City Council agenda. Background In 1994, the City of McHenry was successful in securing grant funds through the Open Space Lands Acquisition and Development (OSLAD) program for the purchase of the Hickory Creek Farm property. The acquisition was critical for the city if it were to remain in control of the shoreline along McCullom Lake. In acquiring the property, the city also took possession of the barn, which was leased, to Mickey Sikula who operates a horse boarding and training facility. Since that time, McHenry has not developed a plan for the ultimate use of the property and consequently, has maintained the lease with Mr. Sikula. Discussion TERM OF LEASE. Since 1994, the term of the lease has varied from one to three years. Since 1998, the term of the lease has been one year. To reduce administration time involved in an annual renewal, it is recommended that the term be extended for a minimum of two years. Additionally, there are no immediate plans to change significantly the use of the property from its present use; therefore, a two-year lease would not be detrimental to the City of McHenry. RENT. Since 1994, the original monthly lease amount of $1,650 has steadily been increased to its current level of $1,958 per month. The methodology for calculating the lease payment has changed over time, and for the past two years has been adjusted on an annual basis using the Consumer Price Index of All Urban Consumers (CPI-U) for Chicago-Gary-Kenosha, published by the U.S. Department of Labor. Depicted below are the increases for the past two years and the proposed increase for 2002. Year CPI Monthly Rent 2000 2.2% $1,907 2001 2.7% $1,958 2002 2.4% $2,005 It is recommended that this methodology be continued and incorporated into the lease agreement. ACCESS TO PREMISES. As this is a publicly owned facility, the past City Council expressed an interest in providing activities on the property for the general public. In cooperation with Mr. Sikula, the Director of Parks & Recreation has established certain activities that are planned throughout the year. These activities are specified in the lease and listed below.  Hayrides  Tours  Heritage Days/Open House Program  Advertisement In addition, a provision has been added to the lease clarifying the city’s right to access the property for the construction and installation of utilities. Recommendation It is recommended that the City Council approve the monthly lease amount, the methodology in calculating the monthly lease amount, and the two-year term of the lease. mmg -2- AGENDA SUPPLEMENT TO: Mayor and City Council FROM: John A. Lobaito, City Administrator FOR: December 17, 2001 Regular City Council Meeting RE: City of McHenry Police Department Dispatch Services The City of McHenry currently has intergovernmental agreements with the Village of Johnsburg, Village of McCullom Lake, and the McHenry Township Fire Protection District to provide them with police dispatch services. The current agreement with Johnsburg was entered into May 1, 2000 and expired April 30, 2001. Pursuant to the terms of the agreement, subsequent contract years will be changed annually May 1 by the increase in cost to McHenry to operate it communications center and increases to the authorized strength of the Johnsburg Police Department. The last time police dispatch service fees were increased for the McHenry Fire Protection District was 1997 and the Village of McCullom Lake in 1993. Because of the increases in operating costs and the probable increase in each village and/or district’s staff, these agreements should be reviewed. Staff is looking for direction from the City Council to draft new police dispatching services agreements for Johnsburg, McCullom Lake, and the McHenry Fire Protection District for the City Council’s review in January 2002 to reflect increases in the cost to operate the McHenry Police communications center and the increase of strength in each village and/or district’s staff. mmg CITY ADMINISTRATOR REPORT TO: Mayor and City Council FROM: John A. Lobaito, City Administrator FOR: December 17, 2001 Regular City Council Meeting RE: Route 31/McCullom Lake Road Project Bond Issuance At the December 3, 2001 City Council meeting, I reported that I would be recommending the City Council delay issuing the bonds for the above referenced project. As the Council is aware, staff was authorized to issue $940,000 in Alternate General Obligation Bonds as part of the financing sources for the project. The balance of the funding is provided from Surface Transportation Funds (STP) via the Council of Mayors for $520,000 and Illinois First Funds via State Representation Lee Daniels for $750,000. Recently, I was made aware of the possibility of receiving additional funding form the Council of Mayors. At the February Council of Mayors meeting, Mayor Althoff will be requesting the Council consider funding the project an additional $480,000. This would bring the total funding from the Council of Mayors to $1,000,000. This amount is the maximum funding allowed for any one project. In addition to this request, the city will be submitting an application to CMAQ for funding. Funds through this program are directed towards projects that improve air quality. Lower vehicle emission is achieved by interconnecting two or more traffic signals in the area. The application submittal date is March 2002 and awarded in the fall of 2002. The potential funding from these two programs warrants delaying the issuance of these bonds. If the city is successful with either one or both programs, the bond issue can be dramatically reduced. It is recommended that the City Council delay the issuance of the bonds for the McCullom Lake Road/Route 31 project until these alternate funding options are explored. mmg