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HomeMy WebLinkAboutMinutes - 10/06/1993 - City Council REGULAR MEETING OCTOBER 6, 1993 The Regular Meeting of the McHenry City Council was called to order by Mayor Cuda on Wednesday, October 6, 1993 at 7:30 P.M. in the Council Room of the Municipal Center. At roll call the following Aldermen were present: Bolger, Locke, Bates, Lawson, Baird. Absent: None. City Staff in attendance were: City Clerk Gilpin, City Attorney McArdle, City Administrator Peterson, Director of Public Works Batt, Director of Parks & Recreation Merkel, Chief of Police Joyce. Absent: Director of Building and Zoning Lobaito. TEN MINUTE PUBLIC INPUT SESSION During the Ten Minute Public Input Session, seven homeowners from the Oaks of McHenry subdivision signed up to speak to the Council regarding the warranty work which was not completed by Home by Hemphill developers. They agreed to wait and speak on the subject when the agenda item came up on the Council Meeting. CONSENT AGENDA Motion by Baird, seconded by Bolger, to approve the Consent Agenda as follows: (1) Request for additional mechanical amusement device licenses by Daniel K. Smith for the Town Club at 1401 N. Riverside Drive; (2) Tuition reimbursement request of Thomas Jenkins for CJAD 350 Corrections Class, $270.00; (3) Change Order No. 3 for the Central Wastewater Treatment Plant, $695.10 reduction; (4) Interest payment on the 1986-A Water & Sewer Revenue Bond in the amount of $117,562.60; Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. OUTSTANDING LETTERS OF CREDIT Director of Public Works Batt reported that eight Letters of Credit were open for subdivisions that have remaining public improvements to be completed. Those subdivisions are all beyond their two-year completion date for public improvements, as required by the Subdivision Control Ordinance. Those eight subdivisions were: 1) Brittany Heights 2 and 3 by Granite Builders 2) Green Valley - All units by Granite Builders 3) Corporate Center Unit 2 by Prime Development Corporation 4) Deerwood Estates 2 and 3 by Gerstad Builders 5) Martin Woods II by Hawthorn Estates 6) The Oaks Phase I by Hemphill 7) Winding Creek 4, Units 3 and 4 by Gerstad Builders 8) Wooded Ridge by Ron Bykowski The above named developers were advised prior to this year's construction season that they were past due on time of completion. Those that have not yet been completed this year, and were notified, are: Remaining Value Date to Complete 1) Green Valley - all units $276,969.00 Expired 12-1-93 2) Martin Woods II $406,971.56 Expired 7-31-93 3) The Oaks Phase I $214,577.00 10-16-93 4) Wooded Ridge $ 10,000.00 6-13-93 After lengthy discussion, it was decided to call the Letter of Credit for the Oaks of McHenry, Phase I (Hemphill) because the City was notified on September 29, 1993 that Hemphill had ceased its operations effective September 22, 1993, and were now in the process of liquidation. Motion by Bates, seconded by Locke, to authorize the Clerk to execute the documents to draw the Letter of Credit from the Oaks of McHenry, Phase I (Hemphill) in the amount of $214,577.00. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. October 6, 1993 Page 2 Concerning Green Valley, Chris Newkirk, President of Granite Builders, addressed the Council and said he would be willing to put the final road surfaces and sidewalks in if requested by the Council, but that 70 lots were still vacant in that subdivision, and he felt the roads and sidewalks would be damaged by construction traffic when the balance of the lots were built out. It was the consensus of the Council not to call the Letter of Credit or require that the work be done at this time, but rather that Director of Public Works Batt work with Mr. Newkirk in fixing the raised manholes in that subdivision so there would not be any damage to the snowplows during this winter as there was last winter. If the work was not done as required by Director of Public Works Batt, the City could then call the letter of credit at any time. Concerning Martin Woods II, it was the consensus not to call the Letter of Credit, but rather to work with the developer in trying to repair their detention pond which has not functioned properly. Minor final details were necessary for Wooded Ridge Subdivision. Motion by Bates, seconded by Baird, to give the developer, Ron Bykowski, thirty days to take care of the minor items needed on that subdivision, and if not done in thirty days, the City would get take the money in escrow and complete the work. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Homeowners from the Oaks of McHenry who have unresolved warranty problems addressed the Council with their complaints. Josef Woowyn of 1911 Redwood Lane; Theresa Fetherston, 203 Birch Lane; Joyce Craig, 1910 Pine Drive; John Lykouretzos, 1915 N. Redwood Lane; Robert Alexander, 2005 Pine Drive; John Herman, 312 Chestnut Drive; and Jim Schneider, 1912 North Redwood Lane detailed their problems. . -- After listening to all the complaints, the Mayor scheduled a Committee Meeting of the Whole for Sunday, October 10, 1993 at 10:00 A.M. at the home of John Lykouretzos at 1915 N. Redwood Lane to inspect and view the complaints of the homeowners. RECESS Mayor Cuda called for a recess at 9:20 P.M. The meeting reconvened at 9:35 P.M. ZONING BOARD OF APPEALS RECOMMENDATION Donald and Debbie Kates of 1402 N. Green Street requested that their property be reclassified from C-4 to RS-4. The property is zoned commercial, but is being used as a residence. The Zoning Board of Appeals voted 7-0 to change the property from C-4 Downtown Commercial District to RS-4 High Density Single Family Residential District. Motion by Baird, seconded by Bates, to concur with the Zoning Board of Appeals' recommendation, and pass an ordinance reclassifying the property at 1402 N. Green Street from C-4 Downtown Commercial District to RS-4 High Density Single Family District. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. --- Voting Nay: None. Absent: None. Motion carried. REDEMPTION AND REFUNDING OF OUTSTANDING BOND ISSUES Harold Warren of Warren and Associates, addressed the Council and explained that the City could save $630,000 if three outstanding bond issues were redeemed and refunded. As a result of lower interest rates, it would be advantageous for the City to redeem and refund these issues and obtain lower interest rates than currently exist. There are two revenue bonds and an Alternate General Obligation Bond eligible for redemption and refunding. October 6, 1993 Page 3 Motion by Bolger, seconded by Lawson, to authorize Warren & Associates to work with the City Attorney and the City Administrator to proceed with the redemption and advance refunding of three outstanding bond issues as presented, with an estimated savings of $630,000 over the life of the bonds. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. COUNTRY CLUB ESTATES SPECIAL ASSESSEMENT FINANCING The City solicited proposals from a number of local financial institutions for financing the Country Club Estates Special Assessment project. An installment contract, assignment and certification of assignment had been drafted for this project. The low proposal came in from the First National Bank of McHenry at 4.25% interest. These documents were forwarded to the First National Bank of McHenry for their review and their attorney has found them to be satisfactory. The documents provide for the contractor of the project, who has yet to be selected, to assign their rights to the First National Bank at the rates and conditions quoted to the City. This process will provide favorable financing rates for the residents of Country Club Estates. Motion by Locke, seconded by Baird, to approve the installment financing method as presented, and authorize the Mayor and Clerk to sign these documents when the final costs for the project are determined. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. FINANCE COMMITTEE RECOMMENDATIONS Five recommendations were presented from the Finance Committtee at its meeting of September 22, 1993. Motion by Bates, seconded by Baird, to approve the recommendations of the Finance Committee as follows: 1. The employment of 10 part-time summer maintenance employees be deferred and included as part of the 1994-95 City Budget discussions; 2. Staff continue to work with the City Engineers to draft a recommendation regarding the Willow and Donovan Street lift station improvement and sanitary sewer transmission lines; and that the staff undertake the construction of access manholes for the stormsewer that begins between McHenry Junior High and Edgebrook Schools; 3. The City's prosecuting attorney fees be increased from $4,000 to $5,600/month based upon an increase in work load caused by the State's Attorney's request to have municipalities prosecute DUI 's and summary suspension matters; 4. A Committee of the Whole meeting be held on October 25, 1993 at 7:30 P.M. to meet with the City auditor to review the audit and management letter; Voting Aye: Bolger, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Abstaining: Locke. Motion carried. One item on the Finance Committee recommendations was to consider sending a letter to the County asking them to adopt a property tax cap for long term residents. This item was not approved by the Council. October 6, 1993 Page 4 POLICE DEPARTMENT CAREER DEVELOPMENT PROGRAM Chief Joyce explained the career development program for the Police Department, which is a program that was approved in 1987. Pay bonuses are associated with attained Police Officer Level I, II, and III. Payments are made on a semi-annual basis for each level. The following officers have satisfactorily completed the career development program: Officer Thomas Beyer Police Officer I $ 500.00 Officer William Brogram Police Officer III $1,000.00 Officer Jeffrey Foerster Police Officer III $1,000.00 Officer Thomas Jenkins Police Officer III $1,000.00 Officer Roland Wood Police Officer III $1,000.00 Motion by Baird, seconded by Bates, to approve the payment of $4,500.00 to the Police Officers identified as having attained specific advancement levels, as presented. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. AWARD OF BID - SOUTH RIVERFRONT BOAT LAUNCH A bid was put out for the construction of an access road, parking lot, and boat ramp at South Riverfront Park. Over the last five years, the project has been changed, primarily based on increased regulations from the Army Corps of Engineers. The City received a Grant for $190,000.00 from the Illinois Department of Conservation, which has been amended to $140,000.00. Three bids were received for the work to construct the roadway and parking lot facility. Motion by Locke, seconded by Baird, to award the contract to the low bidder, Mann Bros. Inc. of Elkhorn, WI in the amount of $187,947.00; and authorize expenditures from the Park Development Fund to complete the City's obligations under a Grant from the Illinois Department of Conservation in the amount of approximately $70,000.00. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Alderman Locke left the meeting at 10:04 P.M. He returned at 10:08 P.M. MAYOR'S STATEMENT AND REPORTS The Mayor presented a letter from Frank Gradishar and Scott Hunt concerning their wish to continue discussions on annexation of White Oak Ridge. Lengthy discussion was held concerning the type of fees to be charged and the timing for payment of those fees. After lengthy discussion, the Mayor summarized the Council's wishes as follows: - Annexation fees of $1,000 per acre to be paid within 60 days of signing of the annexation agreement, and $500.00 per unit to be paid at the time of building permit issuance; - Developer Donation fees to be paid at the time the permit is issued. _ - Tax Lag (Operations Fees for schools) to be paid at the time an occupancy permit is issued. Scott Hunt was in the audience to respond to the Council's questions and concerns. It was decided that the City Administrator should send a list of all the fees that were charged in the Hillside Subdivision annexation agreement so that Gradishar and Hunt could study the matter and then decide whether they wanted to come back to the Council for further action. October 6, 1993 Page 5 STAFF REPORTS The City Clerk reported that Fegers Subdivision and Country Club Drive had requested the City provide snowplowing services, as has been done for many years in the past. Motion by Bolger, seconded by Bates, to approve the City's snowplowing of the Fegers and Country Club Drive Subdivisions for the 1993-94 winter season, in the amount of $750.00 for Fegers Subdivision, and $650 for Country Club Drive and that a letter of agreement be sent to both. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. EXECUTIVE SESSION Motion by Locke, seconded by Bates, to go into Executive Session at 10:43 P.M. to discuss pending litigation and sale of City property. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Motion by Locke, seconded by Bates, to go back into Open Session at 11:02 P.M. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Motion by Locke, seconded by Lawson, to authorize the City Administrator to take action as discussed in Executive Session regarding the sale of City property. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. ADJOURNMENT Motion by Bates, seconded by Locke, to adjourn. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. The meeting adjourned at 11:03 P.M. CO. CITY CLERK MAYOR