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HomeMy WebLinkAboutMinutes - 03/07/2016 - City CouncilREGULAR MEETING March 7, 2016 Mayor Low called the regularly scheduled March 7, 2016 meeting of the McHenry City Council to order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer, Wimmer, Peterson and Condon. Absent: Curry. Also in attendance: City Administrator Morefield, Deputy City Administrator Hobson, Director of Economic Development Martin, Director of Public Works Schmitt, Director of Finance Lynch, Director of Community Development Polerecky, Chief of Police Jones, City Attorney Cahill, City Engineer Pieper and City Clerk Jones. CITY OF MCHENRY MISSION STATEMENT Mayor Low read aloud the Mission Statement of the City of McHenry. MOTION TO APPROVE A RESOLUTION HONORING PASTOR ROGER AND ROSEMARY SCHNEIDER OF SHEPHERD OF THE HILLS CHURCH Mayor Low read aloud the Resolution honoring Pastor Roger and Mrs. Rosemary Schneider of Shepherd of the Hills Church. Mayor Low announced Pastor Schneider's retirement following his devotion to the community of McHenry for 47 years. Mayor Low stated that Pastor and Mrs. Schneider would continue their contributions to the community as it is their intention to reside in McHenry. Motion by Santi, second by Condon, approving the Resolution honoring Pastor Roger and Mrs. Rosemary Schneider of Shepherd of the Hills Church, as presented. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. PUBLIC INPUT SESSION No one spoke at the Public Input Session. CONSENT AGENDA A. Resolution adopting Illinois Municipal Retirement Fund (IMRF) Veterans Benefits; B. Award of bid to Merryman Excavation for construction of Sanitary Sewer System Improvements Forcemain Extension, for an amount not to exceed $2,916,249.50; C. Award of bid to Tecorp., Inc. for construction of Water Tower #3 Maintenance & Repair, for an amount not to exceed $284,600; D. Tenant Farm Lease Agreement between the City of McHenry and Charles Schaefer for the Petersen Farm Ball Field Annex property for a one-year term at $175/acre for a total of $3,500; E. Intermittent closure of Center Street and Kane Avenue during the McHenry High School Marching Band Festival from 12:00 noon to 6:00 pm on Saturday, September 10, 2016; F. Special Event Liquor License for Summer Concert Series in Veterans Memorial Park G. Special Event Liquor License for the Church of the Holy Apostles Annual Fundraiser on April 7, 2016; H. Special Use/Park Picnic Permits; and I. List of Bills, in the amount of $636,656.81, Regular Meeting Page 2 March 7, 2016 Alderman Santi requested that Item B on the Consent Agenda be pulled for further discussion and voted on as a separate item. Motion by Santi, second by Wimmer, approving the Consent Agenda, Item A and Items C through I, as amended. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. Responding to Alderman Santi's inquiry City Engineer Pieper explained to Council the reason for the difference between the Engineer's opinion of probable cost and the actual cost of the project. Alderman Glab stated that he feels the pricing is excessive at 25% higher than the engineer's opinion of probable cost. City Engineer Pieper stated that Merryman Excavation is very solid on the numbers provided. Motion by Santi, second by Condon, approving Item B on the Consent Agenda, as presented. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. MOTION TO APPROVE THE MAYOR'S EXECUTION OF A REVOLVING LOAN AGREEMENT MODIFICATION AND •PERSONAL GUARANTIES BETWEEN THE CITY OF MCHENRY AND UTOPIAN ROAST, LLC D/B/A HIDDEN PEARL CAFE Director of Finance Lynch reiterated to Council that on October 7, 2013, an agreement was approved with Utopian Roast, LLC d/b/a Hidden Pearl Cafe for a revolving loan in the amount of $34,000. First National Bank handled the underwriting as well as the loan service on the revolving loan. On June 1, 2015, Council approved the reassignment of the loan to the City of McHenry. Director Lynch informed Council that since the reassignment of the loan one of the owners of the Utopian Roast, LLC has filed and been granted bankruptcy. The bankruptcy nullifies the personal guaranty previously executed. Director Lynch informed Council that the loan payments have not been made in a timely fashion. City Attorney McArdle and staff met with the principals of Utopian Roast, LLC, Dan and Christine Kernes, to ascertain their intentions. Mr. and Mrs. Kernes stated their intentions to re- sign personal guaranties as well as create a new payment schedule as soon as they bring in additional revenue. Regular Meeting Page 3 March 7, 2016 Staff prepared a new modified loan agreement between the City of McHenry and Utopian Roast, LLC, as well as personal guaranties with Dan and Christine Kernes. The new agreement payment schedule requires a payment of $200 at the execution of the agreement and $150 weekly thereafter. Mr. and Mrs. Kernes expressed confidence to Staff that the business will pick up with the addition of a new location, at which time they will begin making the original payments of $660.73 per month. Staff is recommending approving the Mayor's execution of the Loan Modification Agreement with Utopian Roast, LLC d/b/a Hidden Pearl Cafe with the payment terms of $200 upon execution of the Agreement and $150 payments each week until 60-days following the opening of the new business location, or June 1, 2016. Alderman Condon expressed regret that the business has struggled, acknowledging the impact of the closure of the theatre. Alderman Condon stated she supports working with the owners of the Hidden Pearl to facilitate their success. Motion by Condon, second by Wimmer, approving the Mayor's execution of the Loan Modification Agreement with Utopian Roast, LLC d/b/a Hidden Pearl Cafe, as presented. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. MOTION TO APPROVE AN ORDINANCE GRANTING A ZONING MAP AMENDMENT FROM I-1 INDUSTRIAL TO C-5 HIGHWAY COMMERCIAL, FOR THE PROPERTY LOCATED AT 4104 WEST ELM STREET Director of Economic Development Martin informed Council the applicant currently operates a brokerage office on the subject property and is proposing to tear down the existing building and construct a new one-story 4,264 square foot office building and continue with the same land use. Director Martin stated the character of the area near the subject property consists of primary highway commercial land uses generally to the east, west and south of the subject property, with the exception of the property at the southeast corner of Crystal Lake Road and Illinois Route 120. Director Martin outlined the criteria for approval of the zoning map amendment. He informed Council that the current structure on the property was constructed around 1926 and has maintained an Industrial Zoning classification for numerous years. Director Martin noted the trend of development along Illinois Route 120 (Elm Street) is retail, restaurant, financial, shopping center development and office land uses. Director Martin stated that directly to the north and south along Main Street, many of the properties have Industrial Zoning classifications due to the development of Main Street around the railroad, however, similar to the subject property, while there still exists viable industrial uses in the area a more commercially oriented zoning classification is appropriate when these properties sell, redevelop and/or change land use. Staff has determined that the trend of development in the general Regular Meeting Page 4 March 7, 2016 area since the original zoning of the affected property was established supports the proposed use or zoning classification. The Planning and Zoning Commission unanimously recommended approval of the zoning map amendment from 14 Industrial to G5 Highway Commercial for the property located at 4104 West Elm, McHenry, Illinois. Motion by Schaefer, second by Santi, approving the Ordinance granting a zoning map amendment from -1 Industrial to G5 Highway Commercial for the property located at 4104 West Elm, City of McHenry, as presented. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. MOTION TO APPROVE AN ORDINANCE GRANTING A__.CONDITIONAL USE PERMIT FOR ASSEMBLY USE (EDUCATIONAL INSTITUTION) FOR RIVERWOOD SCHOOL, 300 S. DRIFTWOOD TRAIL Director of Economic Development Martin informed Council that McHenry Elementary School District 15 is currently in the process of a long range plan to remove mobile classrooms at all of District 15 schools and replacing them with permanent building additions. The first four additions, which have been approved, were at Chauncey H. Duker Middle School; Hilltop Elementary School; Edgebrook Elementary School; and Valley View Elementary School. Director Martin stated that the proposed addition and alteration, which is the subject of tonight's request is at Riverwood Elementary School, located in the Trails of Winding Creek Subdivision. The Citys Zoning Ordinance classifies schools as assembly uses. Assembly uses are Conditional Uses in all residential zoning districts. Director Martin informed Council the proposed building addition consists of 7,890 square feet, which will replace two existing mobile classrooms at the southeast corner of the building and a structural alteration of an existing open courtyard consisting of 1,930 square feet is also proposed, which will add more enclosed space adjacent to the library/learning center within the school. Staff believes the additions would not adversely impact neighboring properties or public safety and health. Director Martin stated that the actual building plans are reviewed by the Regional Superintendent of Education's office however; the City will be required to issue a Stormwater Permit for the building additions following consideration of the zoning request by the Planning and Zoning Commission and Council's anticipated approval of the request. Regular Meeting Page 5 March 7, 2016 Mayor Low acknowledged the presence of Alan Hoffman, McHenry School District 15 Superintendent. Mayor Low thanked Superintendent Hoffman for working with the City on the project. Motion by Wimmer, second by Schaefer, approving the Ordinance granting a Conditional Use Permit to Allow an Assembly Use (Educational Institution) on the Property Located at 300 S. Driftwood Trail (Riverwood Elementary School) in the City of McHenry, McHenry County, Illinois, as presented. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson. Voting Nay: None. Abstain: Condon. Absent: Curry. Motion carried. MOTION TO APPROVE AN ORDINANCE GRANTING A ZONING MAP AMENDMENT FROM O-2 OFFICE TO RS-3 MEDIUM -HIGH DENSITY SINGLE-FAMILY RESIDENTIAL, FOR THE PROPERTY LOCATED AT 305 N. DALE AVENUE As background, Director of Economic Development Martin informed the Council in 2014 a dry -cell battery storage facility was approved on the property located at 302 Front Street, immediately south of the subject property. Director Martin informed Council that the applicant of this matter was the landowner who sold the property to facilitate the construction of the battery storage facility located at 302 Front Street, and he retained approximately 1.13 acres immediately adjacent to and west of his primary residence at 305 N. Dale Avenue. The applicant constructed an approximately 287 square foot shed on the subject property without obtaining a building permit. The structure is approximately 9.8 feet from the property located at 303 N. Dale Avenue, immediately to the south of 305 N. Dale in the applicant's required side yard, which is currently 254eet due to the 0-2 Zoning designation. The applicant is proposing to rezone the subject property to RS-3, consistent with the zoning of his primary residence, as well as those generally to the north and east of the subject property. If rezoned to RS-3, the shed would not be in a required side yard, as the required side yard in RS-3 Districts is 104eet or 10% of the lot width. The lot width in this instance is 76 feet; the required side yard would equal 7.6 feet and the shed would be in compliance. The Planning and Zoning Commission unanimously recommended approval of a Zoning Map amendment from O-2 Office Park to RS-3 Medium -High Density Single Family Residential for the property located at 305 N. Dale Avenue. Motion by Santi, second by Wimmer, approving the Ordinance granting a Zoning Map Amendment from 0-2 Office Park to RS-2 Medium High Density Single Family Residential for the property located at 305 N. Dale Avenue in the City of McHenry, Illinois, as presented. Regular Meeting Page 6 March 7, 2016 Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. MOTION TO APPROVE AN ORDINANCE AUTHORIZING THE EXECUTION OF A GRANT OF EASEMENT AND ASSIGNMENT OF LEASE AGREEMENT BETWEEN THE CITY OF MCHENRY AND GLOBAL SIGNAL ACQUISITIONS IV, LLC FOR THE TELECOMMUNICATIONS TOWER, LOCATED AT 1415 INDUSTRIAL DRIVE Director of Economic Development Martin informed Council the Finance and Personnel Committee meeting held on September 21, 2015, considered three written offers to purchase the City's existing cellular communications lease with Verizon for the monopole tower located at 1415 Industrial Drive (Public Works Facility). While the City owns the subject property, Verizon owns the telecommunication tower and all associated appurtenances. They also lease 1,600 square feet of ground space from the City to accommodate the tower and ground equipment. Although, the purchase of existing leases with various telecommunications providers has been considered in the past, at the time of its September meeting, the Finance and Personnel Committee did not wish to move forward with the request and were in favor of further investigation to possibly pursue a potential lease buyout of leases the City currently maintains with Verizon. The primary concerns/suggestions expressed by the Finance and Personnel Committee were: • Granting a perpetual easement or any easement at all; • Contact two of the providers to ascertain if they would move forward without the grant of a perpetual easement; • Contacting Verizon to see if they were willing to match any of the offers submitted; and • Hiring an independent consultant to review a lump sum payment, as opposed to a lower annual payment the City of McHenry would receive for several years. The Finance and Personnel Committee directed Staff to present the best offer to full Council following research of the concerns presented. Director Martin noted that since the September 2015 meeting, a fourth offer was received by the City to purchase the Verizon lease, which is commensurate with the other three offers initially reviewed. Staff contacted each of the companies that submitted offers and informed them a perpetual lease was not an option. Subsequently, Crown Castle and Tower Point Capital submitted 30, 40, and 50-year lease offers. Staff did not investigate the option of hiring a consultant to review the option of a lump sum payment versus a multi -year smaller annual payment after concluding a consultant would not provide a substantial benefit due to the lack of comparable lease buyouts in the area. Regular Meeting Page 7 March 7, 2016 Staff is of the opinion Crown Castle provided the best offer and option to purchase the City's lease with Verizon. Staff proceeded to work with Crown Castle on a Grant of Easement and Assignment of Lease Agreement, Director Martin worked with City Attorneys David McArdle and Michael Smoron to negotiate the terms of the Agreement. The terms of the proposed Agreement with Crown Castle is similar to lease agreements the City of McHenry has with other telecommunication providers: • 50-year easement and assignment of the Verizon lease to Crown Castle, which commences 45-days following the expiration of Verizon's 30-day right of first refusal option; • One-time non-refundable payment of $417,500 to the City of McHenry upon commencement or execution of the Grant of Easement and Assignment of Lease Agreement; • Payment of any real estate/personal property taxes attributable to the existing tower, equipment and/or the 1,600 square foot lease area; and • Removal Bond maintained by the City if the lease terminates and equipment, tower, etc., is not removed and the lease area is not restored. Alderman Glab expressed concern that the Council was not kept apprised of the negotiations during the entire process. Motion by Schaefer, second by Santi, approving the Ordinance authorizing the Mayor's execution of the Grant of Easement and Assignment of Easement Agreement between the City of McHenry and Global Signal Acquisitions IV LLC for the property located at 1415 Industrial Drive, in the City of McHenry, McHenry County, Illinois, subject to the condition that Verizon does not exercise its right of first refusal in accordance with the timeframe and provisions of the existing Lease Agreement between the City of McHenry and Chicago SMSA Limited Partnership d/b/a Verizon Wireless, as presented. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. MAYOR'S STATEMENT AND REPORT Mayor Low informed Council that the Executive Session item schedule for tonight's meeting will be presented on March 21, 2016. Mayor low thanked Attorney Cahill for her attendance at tonight's meeting. Mayor Low reminded Council the Rotary sponsored Shamrock Shuffle 5K is taking place on Sunday. Registration is at 7:00 am and the Shuffle begins at 8:00 am. Regular Meeting Page 8 March 7, 2016 Mayor Low congratulated Deputy City Administrator Hobson and Recreation Center Manager LaPorte on the success of the recently opened McHenry Recreation Center. Mayor Low noted that as of March 4, 2016, membership was 860 members. Deputy City Administrator Hobson noted that an official Grand Opening would be scheduled following the planting of the grounds around the Recreation Center. COMMITTEE REPORTS Alderman Schaefer informed Council a Public Works Committee Meeting is scheduled for March 215Y at 5:30 pm in the Municipal Center Council Chambers. STAFF REPORTS City Administrator Morefield reiterated that Council has been provided with an Agenda Supplement for the Committee of the Whole Meeting scheduled on Monday, March 28, 2016, regarding Strategic Planning, which will focus on refining actionable goals. FUTURE AGENDA ITEMS Responding to an inquiry from Alderman Glab regarding the content of the agenda for the Public Works Committee meeting on March 21, 2016, Director of Public Works Schmitt informed Council it is anticipated that two honorary street dedications, Lakeland Park drainage, National Pollutant Discharge Elimination System Stormwater Discharge Permit Annual Summary; and a review of the amended list of roads included in the 2016 Road Program would be presented. EXECUTIVE SESSION There was no Executive Session. ADJOURNMENT Motion by Condon, second by Santi, to adjourn the meeting at 7:49 pm. Voting Aye: Santi, Glab, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: Curry. Motion carried. The meeting was adjourned at 7:49 pm. Mayor City Clerk