Loading...
HomeMy WebLinkAboutMinutes - 03/04/1991 - City CouncilSPECIAL MEETING MARCH 4, 1991 A Special Meeting of the McHenry City Council was called to order by Mayor Busse on Monday, March 4, 1991 at 7:30 P.M. in City Hall. At roll call the following Aldermen were present: Bolger, Donahue, Teta, Smith, McClatchey, Patterson, Serritella. Absent: Lieder. City Staff in attendance were: Attorney Narusis, Clerk Gilpin, City Administrator Peterson, Director of Public Works Batt, Building and Zoning Officer Halik. Park Director Merkel arrived at 8:57 P.M. Absent: Chief Joyce. The purpose of the Special Meeting was to review the projected May 1, 1991 Budget fund balances; to consider the South Wastewater Treatment Plant Expansion timeframe, the Capital Development and Improvement Programs, and the future Goals and Objectives. Administrator Peterson reviewed the projected fund balances with the Aldermen and answered specific questions on various accounts. The matter of the timeframe for expansion of the South Wastewater Treatment Plant and the proposed funding for that plant were discussed in detail by the Council. Peterson explained that there were several methods of funding the expansion of the SWWTP. The Illinois Environmental Protection Agency (IEPA) has funds available through a revolving loan fund program but in order to be eligible, the completed construction plans must be submitted with other loan documents to the IEPA by March 31, 1991. The advantage of the IEPA loan is that the interest rate would be approximately 50% of an open market interest rate. The current rate for a revolving loan fund is 3.49% One of the requirements is that only dedicated revenue sources can be used to repay the loan. Based upon a preliminary review of the City's ability to repay principal and interest on a $5,000,000.00 loan, it would be necessary to increase sewer rates by as much as s.60 per thousand gallons and $6.00 per quarter to meet criteria for the revolving loan fund. A number of options are available to the City instead of the revolving loan fund such as building the plant in smaller increments with cash and smaller bond issues; using revenue bond financing; using general obligation bond financing; and using general obligation bond alternate revenue financing. Following discussion it was the Council's decision not to pursue the IEPA revolving loan fund, but to use one of the other financing techniques available to the City. Motion by Bolger, seconded by Serritella, to have the City Administrator instruct Baxter and Woodman to complete construction plans for expansion of the South Wastewater Treatment Plant so that everything will be on line when the Council decides to go ahead with expansion. Voting Aye: Bolger, Donahue, Teta, Smith, McClatchey, Patterson, Serritella. Voting Nay: None. Absent: Lieder. Motion carried. Administrator Peterson then presented the Capital Development and Improvement Program so that the Council could prioritize City services, evaluate infrastructure needs, and influence future development decisions. Capital projects, ranging from providing or maintaining basic municipal services to increasing the level of municipal services offered, were presented for discussion. Projects listed for consideration included: Water Treatment Facilities and Improvements, Wastewater Treatment Expansion, Maintenance and Improvements, Storm Water System, Public Works Building Expansion and Improvements, Parks and Recreation Projects, Sidewalk and Street Projects, and Miscellaneous Improvements. Aldermen Patterson left the meeting at 8:50 P.M. Under Wastewater Treatment Projects, it was felt the Central Plant dechlorination and Central Plant centrifuge were high priority items. Construction of a North Plant and extending sewers to the east side of the river were put on the low end of the priority list. March 4, 1991 Page 2 South Wastewater Treatment Plant expansion was a project that was listed for consideration within a five-year timeframe. Under Water Systems Projects, the first priorities were for water supply wells on the north and south sides of the City. Installation of a 12" main on Route 31 and corrections of various dead ends and mains in the City were immediate priorities. All of the other master projects were discussed, but no priorities were placed on those items per se. Aldermen Serritella left the meeting at 9:47 P.M. Under Sidewalk Projects, new construction and replacements were discussed. Motion by Smith, seconded by Bolger, to spend the income from the , gravel pit annexation fees in an amount not to exceed $50,000.00 a year on sidewalk construction, both new and replacement. Voting Aye: Bolger, Voting May: Teta. Absent: Lieder, Motion carried. Donahue, Smith, McClatchey, Busse. Patterson, Serritella. Mayor Busse presented his draft of a Goats and Objectives Statement for 1991. He presented the statement for discussion and consideration only, and not for approval at this meeting. Several Aldermen had suggestions and additions to the eleven point statement. Mayor Busse asked that anyone who had suggestions or alterations should present them in writing to him within the next two weeks so that the Goals and Objectives Statement can be completed. Motion by Smith, seconded by McClatchey, to adjourn. Voting Aye:' Bolger, Donahue, Teta, Smith, McClatchey,. Voting Nay: None. Absent: Lieder, Patterson, Serritella. Motion carried. The Meeting adjourned at 10:10 P.M.