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Home My WebLink AboutMinutes - 01/24/1980 - City CouncilSPECIAL MEETING THURSDAY, JANUARY 24, 1980 7:40 P.M. Mayor Stanek called to order a Special Meeting of the City Council on Thursday, January 24, 1980 at 7:40 P.M. for the purpose of considering possible construction of a sewer plant south and the bidding of a paint Striper. The following aldermen were present: Pepping, Nolan, Harker, Datz, Wieser, Adams, Schooley, Meurer. Absent: None. Also present were City Attorney Bernard Narusis; City Clerk Barbara Gilpin; Deputy Clerk Anne Kranz; David Ladd and Bob Robinson of Brittany Builders Development Co.; Dr. Hal Sundin of Baxter & Woodman; Roger Sterling of Channer, Newman Securities Co.; James Bishop, attorney representing Brittany Builders and interested spectators Don Virgens, Bob Cable and Don Toole. Supt. of Public Works Meyer arrived at 7:56 P.M. As background for this meeting, Mayor Stanek related that Brittany B&iiders acquired 100 acres of the Bernard Bauer farm on South Green Street and with that annexation, the City received a parcel of land approximately 272 acres in size that has been the proposed location for a regional sewer plant for 15 years. In discussing the lot sizes and zoning, it was determined that Brittany Heights developer's wanted 10,000 square foot lots which would require that they be serviced with city water and sewer. Initally, it was det:e:-ri~c.: t'iat the developers .aould construct a forced main and pumping station tatting the influent from their subdivision across the hill at Shepherd of the Hill Lutheran C'�,�arch and down into the city's regular truL!C line. When the 272 acres was acquired, the question arose as to the possibility of constructing a sewer plant in that location, jetting other parties interested in cost sharing the development of this plant and, in effect, save the cost of running the forced main over the hill. The devel- opers agreed that whatever it cost, which was estimated at approximately $200,000 to put the forced main and the pumping, station in, they would contribute that in cash towards the construction of -a sewer plant on the 272 acres if the City could see its way through to do this. Thursday, January 24, 1980 Page 2 The City had preliminary discussions with Dr. Hal Sundin and it seemed as if the numbers quoted were attainable. Stanek talked to Roger Sterling who had assisted the City with the enlargement of its existing sewer plant, and asked him to determine what remaining bonding power the City had left for its Revenue Bonds. Sterling discussed the matter with Mr. McGree and others from Chapman and Cutler and they came back with a number that sounded as if it would be possible to consider construction of a plant in that location. Since then, however, there has been an escalation of cost estimates and some of the queries that were directed to the EPA on the matter have not been answered. Now the City is not certain what would be acceptable to the EPA. At this meeting, Dr. Sundin and Sterling were in attendance to give the Council an update on costs and funding potential. Each alderman was furnished with an outline of available monies in the Sewer and Water accounts, the Capital Development Fund and a breakdown of expenses and due dates on all bonds. Dr. Sundin addressed the Council and presented updated cost estimates for a sewer plant south with 6,000 P.E. (Population Equivalent) at a cost of $1,077,000 for 2 tanks and $813,000 for 1 tank ; also a cost estimate for 5,000 P.E. for 1 tank at $769,000. Estimated costs for an outfall pipe to the Fox River were quoted at $119,500 for a 30 inch pipe and $99,000 for a 15 inch pipe. Sundin emphasized that all costs were estimated at today's prices. Sundin stated that to locate a plant on the proposed 272 acres, it would 'be necessary to discharge the effluent into the Fox River. Since the City does not own land fronting on the River and since Mr. Tom Decker does own land between the proposed sewer site and the River it would be necessary for the City to acquire a permanent easement over the Decker property in order to run the outfall pipe into the Fox River to discharge effluent from that proposed sanitary sewer plant south. Dr. Sundin also said it would be necessary to acquire a temporary construction easement over the property to facilitate installation of that outfall pipe. Thursday, January 24, 1980 Page 3 Roger Sterling reported that in his discussions with Chapman and Cutler, it was determined the City could handle a--$600,00O Revenue Bond issue with a maximum of a $800,000 issue if it was consummated in the 1979- 1980 fiscal year. He noted that without EPA approval, it would be difficult if not impossible to offer any ''ponds to prospective buyers. Other items discussed by Sterling were possible income from G.O. (General Obligation) bonds or Special Service District taxation. Neither method received favorable comment from the Council. Sterling also furnished each alderman with a listing of Current and Proposed Debt Service Schedule on Waterworks and Sewerage Revenue Bonds. David 'Ladd of Brittany Builders stated his company would be willing to put its money in whatever system the City feels would be the 'best solution for a sewer facility. He noted that approximately 300 single family homes would be constructed on his 100 acre development known as Brittany Heights which would result in an estimated population of 1,000 people. At 8:23 P.M. Mayor Stanek declares a 15 minute recess. The meeting was reconvened at 8:42 P.M. with everyone still in attendance. Further discussion was held on acquiring an easement over the Decker property, if necessary, through condemnation proceedings. Motion by Harker, seconded by Nolan, to authorize Attorney Narusis to take whatever steps are necessary to acquire a permanent easement and a temporary construction easement over the Decker property for the purpose of running an outfall pipe to the Fox River. Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Adams, Schooley, Meurer. Voting Nay: None. Absent: None. Motion carried. The acquisition of a paint striper for the Public Works Department was then discussed. The McHenry Township Road Commissioner had advertised that bids would be accepted for a paint striper he was replacing; and bids were to be submitted by 10 A.M. Monday, February 4, 1980. Since the regular Thursday, January 24, 1980 Page 4 Council meeting would not be until 8 P.M. February 4, 1980, it was decided to bring the matter before this special meeting. At 9:14 P.M. the Mayor declared a 10 minute recess. The meeting was reconvened at 9:26 P.M. with all aldermen still in attendance. Motion by Wieser, seconded by Schooley, to authorize the Pur- chasing Committee to inspect the paint striper in question and if, in their judgement, they determine that the striper merits it, they be authorized to enter a bid of $5,001.00. Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Adams, Schooley, Meurer. Voting Nay: None. Absent: None. Motion carried. Motion by Adams, seconded by Wieser, to adjourn. Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Adams, Schooley, Meurer. Voting Nay: None. Absent: None. Motion carried. Meeting adjourned at 9:31 P.M. 7 ec�.R� Y WATER SEWER FUND REVIEW AND GENERAL STATUS FROM 1-1-80 to 7-1-81 BONDS PAYABLE: 1/24/80 General Obligation due 7-1-80 982.91 1-1-81 5,867.19 7-1-81 867.19 General Obligation due 7-1-80 7,830.31 1-1-81 61,211.25 7-1-81 6,211.25 Revenue Bonds due 5-1-80 9,440.00 11-1-80 1,280.00 5-1-81 9,280.00 Revenue Bonds due 5-1-80 9,000.00 11-1-80 9,000.00 5-1-81 94,000.00 RECAP OF PAYMENTS: 1966 Series 1969 Series 1956 Series Storm Sewer Sewer Improvement (8,000. principal, 1,440.00 interest) (interest) (8,000. principal, 1,280.00 interest) 1979 Series (interest) (interest) (85,000. principal, 9,000.00 interest) due 5-1-80 18,440.00 due 7-1-80 8,813.22 due 11-1-80 10,280.00 due 1-1-81 67,078.44 due 5-1-81 103,280.00 due 7-1-81 7,078.44 214,970.10 GENERAL OBLIGATION due 7-1-80 8,813.22 due 1-1-81 67,078.44 due 7-1-81 7,078.44 82,970.10 DUE FROM WATER SEWER FUND TO GENERAL FUND: REVENUE due 5-1-80 18,440.00 due 11-1-80 10,280.00 due 5-1-81 103,280.00 132,000.00 Sept. 1979 General Fund paid to Water/Sewer Fund 170,729.92 Nov. 1979 Water/Sewer Fund repaid General Fund - 35,000.00 Jan. 1980 Water/Sewer Fund repaid General Fund-100,000.00 Water/Sewer Owes General Fund 35,729.92 ASSETS IN WATER SEWER FUND: $20,162.00 passbook 4,000.00 checking account //D _7NV I''-7',Ad(rJ7 TOTAL ASSETS AVAILABLE IN CAPITAL DEVELOPMENT FUND: $299,879.36 Approximate Breakdown: Water Permits 99,000.00 Sewer Permits 200,000.00 0 WATER SEWER FUND REVIEW AND GENERAL STATUS FROM 1-1-80 to 7-1-81 BONDS PAYABLE: 1/24/80 General Obligation due 7-1-80 982.91 1-1-81 5,867.19 7-1-81 867.19 General Obligation due 7-1-80 7,830.31 1-1-81 61,211.25 7-1-81 6,211.25 Revenue Bonds due 5-1-80 9,440.00 11-1-80 1,280.00 5-1-81 9,280.00 Revenue Bonds due 5-1-80 9,000.00 11-1-80 9,000.00 5-1-81 94,000.00 RECAP OF PAYMENTS: 1966 Series 1969 Series 1956 Series Storm Sewer Sewer Improvement (8,000. principal, 1,440.00 interest) (interest) (8,000. principal, 1,280.00 interest) 1979 Series (interest) (interest) (85,000. principal, 9,000.00 interest) due 5-1-80 18,440.00 due 7-1-80 8,813.22 Oue 11-1-80 10,280.00 due 1-1-81 67,078.44 due 5-1-81 103,280.00 due 7-1-81 7,078.44 214,970.10 GENERAL OBLIGATION due 7-1-80 8,813.22 due 1-1-81 67,078.44 due 7-1-81 7,078.44 82,970.10 DUE FROM WATER SEWER FUND TO GENERAL FUND: Sept. 1979 General Fund paid to Water/Sewer Fund Nov. 1979 Water/Sewer Fund repaid General Fund Jan. 1980 Water/Sewer Fund repaid General Fund Water/Sewer Owes General Fund ASSETS IN WATER SEWER FUND: $20,162.00 passbook 4,000.00 checking account REVENUE due 5-1-80 18,440.00 due 11-1-80 10,280.00 due 5-1-81 103,280.00 132,000.00 170,729.92 - 35,000.00 -100,000.00 35,729.92 TOTAL ASSETS AVAILABLE IN CAPITAL DEVELOPMENT FUND: $299,879.36 Approximate Breakdown: Water Permits 99,000.00 Sewer Permits 200,000.00 WATER SEWER FUND REVIEW AND GENERAL STATUS FROM 1-1-80 to 7-1-81 BONDS PAYABLE: 1/24/80 General due 7-1-80 1-1-81 7-1-81 General due 7-1-80 1-1-81 7-1-81 Obligation 982.91 5,867.19 867.19 Obligation 7,830.31 61,211.25 6,211.25 Revenue Bonds due 5-1-80 9,440.00 11-1-80 1,280.00 5-1-81 9,280.00 Revenue Bonds due 5-1-80 9,000.00 11-1-80 9,000.00 5-1-81 94,000.00 RECAP OF PAYMENTS: 1966 Series 1969 Series 1956 Series Storm Sewer Sewer Improvement (8,000. principal, 1,440.00 interest) (interest) (8,000. principal, 1,280.00 interest) 1979 Series (interest) (interest) (85,000. principal, 9,000.00 interest) due 5-1-80 18,440.00 due 7-1-80 8,813.22 due 11-1-80 10,280.00 due 1-1-81 67,078.44 due 5-1-81 103,280.00 due 7-1-81 7,078.44 214,970.10 GENERAL OBLIGATION due 7-1-80 8,813.22 due 1-1-81 67,078.44 due 7-1-81 7,078.44 82,970.10 DUE FROM WATER SEWER FUND TO GENERAL FUND: Sept. 1979 General Fund paid to Water/Sewer Fund Nov. 1979 Water/Sewer Fund repaid General Fund Jan. 1980 Water/Sewer Fund repaid General Fund Water/Sewer Owes General Fund ASSETS IN WATER SEWER FUND: $20,162.00 passbook 4,000.00 checking account REVENUE due 5-1-80 18,440.00 due 11-1-80 10,280.00 due 5-1-81 103,280.00 132,000.00 170,729.92 - 35,000.00 -100,000.010 35,729.92 TOTAL ASSETS AVAILABLE IN CAPITAL DEVELOPMENT FUND: $299,879.36 Approximate Breakdown: Water Permits 99,000.00 Sewer Permits 200,000.00 Year 1980- 1931 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 CITY OF MC HENRY. ILLINOIS CURRENT AND PROPOSED DEBT SERVICE SCHEDULE ON WATERWORKS AND SEWERAGE REVENUE BONDS 1956 & 1979 Issues 1980 Issue Combined Principal Principal Principal and Interest and Interest and Interest $ 56,800 $ 30,000 $ 86,800 164,56o 45,000 209,56o 164,140 45,000 209,14o 169,420 45,000 214,42o lo8,o6o 45,000 213,o6o 167,400 45,000 212,400 165,400 45,000 2102400 168,100 45,000 213,100 155,200 45,000 2001200 157,400 45,000 202,400 159,000 45,000 2o4,000 189,375 189,375 178,125 178,125 166,875 166,875 155,625 155,625