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HomeMy WebLinkAboutMinutes - 02/17/2014 - City CouncilMCHENRY CITY COUNCIL REGULAR MEETING February 17, 2014 The regular meeting of the McHenry City Council was called to order by Mayor Susan Low at 7:30 PM on Monday, February 17, 2014, in the Municipal Center Council Chambers. COUNCIL MEMBERS PRESENT: Aldermen Geoff Blake, Geri Condon, Andy Glab, Robert Peterson, Victor Santi, Jeffrey Schaefer, and Richard Wimmer. COUNCIL MEMBERS ABSENT: City Clerk Janice Jones. STAFF PRESENT: City Administrator Derik Morefield, Deputy City Administrator Doug Martin, Deputy City Administrator Bill Hobson, Public Works Director Jon Schmitt, Deputy Police Chief John Birk, Finance Director Carolyn Lynch, City Attorney David McArdle, and Executive Assistant Marci Geraghty. OTHERS PRESENT: Russell Ruzicka, City of McHenry Wastewater Superintendent and City Engineers Chad Pieper and Ed Coggin, HR Green, Inc. PUBLIC INPUT SESSION None. CONSENT AGENDA Motion by R. Wimmer, second by G. Condon to approve the Consent Agenda as presented. A. Approve a request from the McHenry Area Chamber of Commerce for a temporary use and sign permit for the annual Business Expo on March 15"' at West Campus High School; B. Approve a request from the McHenry Cobras Baseball Association for a temporary sign permit advertising a fundraiser at the McHenry Moose Lodge on March I"; C. Approve a request from Letizia Financial Group for special use and temporary sign permits and waiver of associated fees for the annual Back to Family Outdoor Movie Night in Veterans Memorial Park from September 5 thru 26t11; D. Approve a request from Letizia Financial Group for special use and temporary sign permits and waiver of associated less for the annual Green Street Cruise Night from June 9t" thru September 29th; E. Approve a request for a special event liquor license for The Church of Holy Apostles, 5211 Bull Valley Road for annual Mardi Gras Dinner/Dance fundraiser; F. Approval of January 6, 2014 Committee of the Whole meeting minutes; G. Approval of January 6, 2014 Regular City Council meeting minutes; H. Approval of As Needed Checks: AT&T 101.20 BANKCARD PROCESSING CENT 5,306.30 BLUE CROSS BLUE SHIELD O 131,771.99 BUSS FORD SALES 37,494.00 CGS-NIU 35.00 COMCAST CABLE 174.75 COMED 65.02 DIRECT ENERGY BUSINESS 21,093.57 FOP UNITS I/II 2,021.00 IUOE, LOCAL 150 5,779.68 KIMBALL MIDWEST 1,043.32 LEGALSHIELD 64.75 NATIONAL GUARDIAN LIFE I 42.33 NCPERS GROUP LIFE INS. 192.00 POSTMASTER MCHENRY IL 3,300.00 RESERVE ACCOUNT 1,089.27 RYAN LANNING 290.00 SCHATZ, DONALD 195.00 UNITED PARCEL SERVICE 153.13 GRAND TOTALS 210,212.31 FUND TOTALS GENERAL FUND 39,085.44 CAPITAL EQUIPMENT FUND 37,494.00 WATER/SEWER FUND 427.28 McHenry City Council February 17, 2014 Page 2 of 7 EMPLOYEE INSURANCE FUND 131,771.99 INFORMATION TECHNOLOGY FUND 843.60 RETAINED PERSONNEL ESCROW 290.00 POLICE PENSION FUND 300.00 TOTAL 210,212.31 Approval of List of Bills: AALTO, BRIAN 14.44 ACE HARDWARE, BJORKMAN'S 2,380.28 ACE TOWING & RECOVERY 150.00 ADAMS ENTERPRISES INC, R 398.16 ADAMS, SAMANTHA 258.13 ADVANTAGE BEHAVIORAL HEA 1,287.00 ADVANTAGE MECHANICAL INC 520.00 AMERICAN HEATING & COOLI 253.00 APWA - ILLINOIS PUBLIC S 695.00 ARCO MECHANICAL EQUIPMEN 1,350.00 AT&T 2,076.47 B&W CONTROL SYSTEMS INTE 240.00 BAKER & SON CO, PETER 965.00 BANK OF NEW YORK MELLON, 428.00 BANKCARD PROCESSING CENT 6,046.95 BAXTER & WOODMAN 3,006.25 BOLGER, WILLIAM J 395.00 BONNELL INDUSTRIES INC 3,664.15 BOTTS WELDING & TRUCK SE 32.00 BPH PUMP & EQUIPMENT INC 729.60 BSN SPORTS INC 219.68 BUSS FORD SALES 357.69 CARY COMPANY, THE 671.24 CDW GOVERNMENT INC 168.01 CENTEGRA OCCUPATIONAL HE 290.10 CINTAS CORPORATION LOC 3 434.92 COMCAST CABLE 470.13 COMED 5,250.03 COMMUNICATIONS REVOLVING 10.00 CROWNE PLAZA 369.00 D'ANGELO NATURAL SPRING 33.00 DATALUX CORPORATION 270.00 DIRECT ENERGY BUSINESS 1,016.01 DREISILKER ELECTRIC MOTO 136.14 ED'S AUTOMOTIVE/JIM'S MU 103.00 ED'S RENTAL & SALES INC 77.25 FBI NAA 95.00 FOX VALLEY FIRE & SAFETY 1,492.50 FREUND & SON INC, S H 1,444.69 FUTAVA, KATIE L 203.00 FUTURE LINK OF ILLINOIS 127.28 G IMPRESSIONS INC 240.00 GALLS LLC 207.90 HABITAT FOR HUMANITY 8,218.70 HAWKINS INC 645.18 HRGREEN 9,358.44 ILLINOIS DIRECTOR OF 4,334.00 ILMO PRODUCTS COMPANY 74.00 KANDEL, LOURDS 91.12 KIMBALL MIDWEST 592.86 KING, LAURA 16.00 KIRCHNER FIRE 616.75 KOTIW, MIKE S 80.00 KREASSIG, DANIEL 8.00 LAMBERT, FRANCES B 9.50 LEACH ENTERPRISES INC 27.31 LILLEENG, MICHAEL D 2,400.00 MCCAFFERTY, BRITTANY 360.00 MCCANN INDUSTRIES INC 342.96 MCCORMICK, JENISE M 146.25 MCHENRY ANALYTICAL WATER 450.00 MCHENRY AREA CHAMBER OF 906.00 MCHENRY COMMUNITY HIGH S 14,008.65 MCHENRY COMMUNITY SCHOOL 25,630.35 MCHENRY COUNTY CHIEFS OF 45.00 MCHENRY COUNTY RECORDER 1,298.00 McHenry City Council February 17, 2014 Page 3 of 7 MCHENRY PUBLIC LIBRARY 5,128.00 MCHENRY TOWNSHIP FIRE PR 5,055.00 MCKEEN, BRIAN J 8.00 MCMASTER-CARR SUPPLY CO 271.91 MERWIN, BENJAMIN J 800.00 METRO DOOR AND DOCK INC 198.00 MEYER MATERIAL COMPANY 1,653.17 NAPA AUTO PARTS MPEC 4,427.78 NATIONAL PUBLIC EMPLOYER 205.00 NEUMANN JR, EDWARD J 500.00 NORTH AMERICAN SALT COMP 24,877.00 NORTHERN TOOL & EQUIPMEN 340.87 OTTOSEN BRITZ KELLY COOP 4,813.13 PALA, JOSEFINA 200.00 PETROLIANCE LLC 15,621.08 PETTIBONE & CO, P F 328.85 PITEL SEPTIC INC 250.00 PLATINUM HEATING & COOLI 600.00 POIERIER, SHIRLEY 375.00 POLERECKY, ROSS 170.00 PRATHER, JAIMIE 6.40 PRUDENTIAL FIRST REALTY 30.00 PSP-BROOKFIELD 383.52 QUILL CORPORATION 24.55 RADICOM INC 915.84 REGNER, WILLIAM J 34.50 REX AUTO BODY 7,569.69 RICHARD LEISTEN 145.00 RUSH TRUCK CENTERS OF IL 6,423.77 SANTO SPORT STORE 1,806.42 SCHATZ, DONALD 195.00 SCHULHOF COMPANY 110.77 SECTION 8 DOORS & HARDWA 245.00 SHAW MEDIA 90.60 SPEER FINANCIAL INC 402.50 SPRING ALIGN OF PALATINE 228.86 ST PALLS EPISCOPAL CHURC 190.80 STANS OFFICE TECHNOLOGIE 179.00 STAPLES ADVANTAGE 756.49 STATE TREASURER IDOT 16,060.62 SUBURBAN BUILDING OFFICI 125.00 SUNNYSIDE COMPANY 369.00 THEODORE POLYGRAPH SERV 135.00 THINK INK INC 49.86 TOBIN, TRACY 45.00 TRAFFIC CONTROL CORPORAT 6,225.00 US BANK EQUIPMENT FINANC 135.00 USA BLUEBOOK 940.70 VALLEY NAILS & SPA 30.00 VALLEY VIEW ACRES 425.00 VAN GALDER BUS COMPANY 1,734.00 VERIZON WIRELESS 2,681,86 VIKING CHEMICAL COMPANY 9,745.80 WALSH, THOMAS M 16.00 WASTE MANAGEMENT 7,160.00 WASTE MANAGEMENT OF WI P 11,781.97 ZEP SALES & SERVICE 677.55 FUND TOTALS GENERAL FUND 101,279.99 ALARM BOARD FUND 968.50 ANNEXATION FUND 4,153.50 MOTOR FUEL TAX FUND 26,438.08 DEVELOPER DONATION FUND 53,897.20 DEBT SERVICE- 1997A FUND 830.50 CAPITAL IMPROVEMENTS FUND 4,227.96 WATER/SEWER FUND 44,214.55 RISK MANAGEMENT FUND 10,922.29 INFORMATION TECHNOLOGY FUND 2,795.36 RETAINED PERSONNEL ESCROW 1,415.00 TOTAL 251,132.93 McHenry City Council February 17, 2014 Page 4 of 7 Mayor Low asked to call the roll: Ayes: Wimmer, Condon, Santi, Glab, Schaefer, Blake, Peterson Nays: None Abstentions: None Absentees: None Motion carried. Alderman Glab suggested prohibiting the installation of all temporary signs in construction zones. APPROVAL TO REQUEST A PROFESSIONAL SERVICES AGREEMENT WITH FIR GREEN, INC. FOR ENGINEERING DESIGN TO CONSOLIDATE THE CENTRAL AND SOUTH WASTEWATER TREATMENT PLANTS. Director of Public Works Schmitt presented the City Council with background on the city's efforts to date to decommission the Central Wastewater Treatment Plant (CWWTP). The process began in 2005 when the City Council approved a long-term plan for wastewater services that included closing the CWWTP and expanding the South Wastewater Treatment Plant (SWWTP). In 2008, the Council approved an engineering services agreement for the design of a 4.0 million gallon per day expansion of the SWWTP; and in March 2009, the Council directed staff to begin the process of consolidating the two plants. This process was part of a plan approved by the IEPA in 2008 that permitted the city a 10-year time frame to consolidate the plants, expiring in 2018. The IEPA approval also allowed the city to make necessary repairs at the CWWTP to keep it operational during the 10-year time period. Director Schmitt reported the city is nearing the 10-year commitment it made with the IEPA City Engineers Chad Pieper and Ed Coggin provided a PowerPoint presentation on plant consolidation. The CWWTP was constructed in the 1950's with a life expectancy of 50 years. The CWWTP serves two-thirds of the city. Mr. Coggin reported the Council in 2007 approved a design contract for consolidation and expansion of the plants for a cost of $30 million however the project was shelved due to economic conditions. hn 2009, the Council directed staff to begin consolidation of the plants under a phased approach. The first phase of decommissioning the CWWTP was performed as a response to a failing solids handling system at the plant. The city borrowed $6.4 million to move the system to the SWWTP, which involved construction of conveyance lines between the treatment plants and several equipment modifications. Debt service for this project resulted in a bi-monthly service charge of $6 per utility user. As identified in CIP discussions with the Council on February 3, 2014, decommissioning the CWWTP presents a financial obstacle with a proposed cost of more than $20 million, which will continue to escalate in time. In addition, millions of dollars for upgrades will be required to maintain the existing CWWTP until such time as decommissioning can occur. Two approaches to meet the IEPA commitment of decommissioning the CWWTP by 2018 were presented to the Council: Approach #1 is a plan to build now and utilize the State Revolving Fund (SRF) program to fiend the project. The SRF is administered by the IEPA and was introduced last year through the Clean Water Initiative. The program offers two-year loans at an interest rate of 1.99%. The SRF application process is now much quicker and the city could be approved in time to begin the project next year. Mr. Coggin noted his contacts at the SRF told him there is a three-year window for available funding, interest rates are expected to increase in 2015; and, the city has a verbal commitment for funding. In addition the IEPA and state environmental groups have approved the new technologies proposed in Approach #1, which increases the probability of approval for the project. Projected cost for Approach #1 is $21 million. McHenry City Council February 17, 2014 Page 5 of 7 Approach #2 proposes to build later however the cost of construction will increase and there is no guarantee the IEPA will extend the 2018 deadline and, if they do there will be additional costs added to the permit. Further the city will be required to make additional repairs and adjustments to the CWWTP to keep it operational until consolidation is possible, which will add dollars to the cost of the project. Projected cost for Approach # 2 is approximately $35 million. The Mayor asked for questions or comments from the City Council: Alderman Schaefer asked how approval of SRF funding will affect user rates; how is the loan to be paid? Mr. Coggin replied the ultimate responsibility to pay for the improvements will fall on the current user base. A rate study will provide the exact cost to the current users. Alderman Schaefer noted residents have incurred almost 20% in rates increases in the past five years. City Administrator Morefield stated capital improvements that will be needed to keep the CWWTP operational will cost approximately $8 million and would also have an impact on user fees. He further stated there are 8,200 user accounts in the city. Total SRF funding of $1.2 million for 20 years spread out evenly for 8,200 city user accounts would be $150 per account per year for 20 years. Adjustments will be made based on the number of users, consumption, and type of use i.e., business or residential. Alderman Schaefer asked if rates would decrease after 20 years. City Administrator Morefield noted the city currently charges $6 per account for capital development fees to pay for SWWTP improvements. A similar debt service charge placed on water bills is passed on to user. Alderman Glab asked if consolidation would affect water and sewer users. City Administrator answered sewer users. Alderman Glab asked if Approach # 1 takes into consideration fiiture development and all FPA's, specifically the Gerstad Preserves of Boone Creels property. Mr. Coggin said yes, and referred to a slide depicting the CWWTP site, which included the Preserves of Boone Creek in the treatment plant collection areas. Mr. Coggin added the technology proposed in Approach # I also provides for the addition of small increments of added capacity for a much lower cost. He also told the Council future development is not added in the cost of the project at this time so existing users do not have to pay for future development. Alderman Peterson asked if there is room at the SWWTP for expansion and Mr. Coggin answered yes. Alderman Peterson asked what the normal bond rate is and Deputy City Administrator Martin answered 3.25% Alderman Blake commented costs passed on to existing users for Approach # 1 seem high. Alderman Santi asked if there was a deadline to apply for the SRF. Mr. Coggin said the deadline is March 31, 2014, but the state told him the city may apply for the SRF at any time however the loan process takes time so we need to begin the process quickly so we are on track for SRF approval in 2014, bid letting in January 2015, and construction in April 2015. Formal approval will be considered by the Council after bids are received. Alderman Santi inquired about the three-year window for the Clean Water Initiative mentioned in the presentation. Mr. Coggin said the city is in the middle of the Clean Water Initiative, which is a three year program. Alderman Santi asked if there are currently 110 applicants for SRF funding. Mr. Coggin said yes if we meet the application deadline the money will be available. If McHenry waits until next year, we run the risk of being placed on a waiting list. Mr. Coggin added the SRF program representatives stand behind their commitments. McHenry City Council February 17, 2014 Page 6 of 7 Alderman Santi asked if HR Green is assisting other communities with SRF funding applications. Mr. Coggin said yes, Marengo and a small community in southern Illinois. Alderman V. Santi made a motion, seconded by Alderman R. Wimmer to authorize HR Green, Inc. to prepare a Professional Services Agreement for the engineering design of consolidating the Central and South Wastewater Treatment Plants. Mayor Low asked for discussion on the motion. Alderman Glab asked if other engineering firms were asked to submit proposals for the project to make it competitive. City Administrator Morefield answered no. Mayor Low added HR Green is the city's designated engineer. Alderman Santi asked if the Council would see the professional services agreement before it is approved. Mayor Low answered at this time all the Council is asked to authorize is preparation of the professional services agreement; the document will be brought back to the Council for consideration at another meeting. Mayor Low asked to call the roll: Ayes: Santi, Wimmer, Peterson, Condon, Schaefer, Blake Nays: Glab Abstentions: None Absentees: None Motion passed. ADOPTION OF FY 14/15 THROUGH FY 18/19 CAPITAL IMPROVEMENT PROGRAM (CIP City Administrator Morefield presented the CIP for FY 14/15 through FY 18/19. He stated the CIP as presented continues to reflect the guiding principles that it be balanced and meet the needs of the full -service city. He noted the only changes made to the document were recommendations made by the Council at the January 6, 2014 Committee of the Whole meeting. Alderman Schaefer said the CIP is a good tool and keeps the Council apprised of future capital projects and improvements. Aldermen Blake, Schaefer, and Wimmer agreed with Alderman Schaefer and thanked City Administrator Morefield and city department heads for developing the document. Alderman Glab noted this is a five year plan with changes made to it every year; he said he needs more information adding it is difficult for him to understand why $13 million for the Riverwalk is designated in the plan when we started at $9 million. Deputy City Administrator Hobson noted the CIP is just a planning tool and takes into consideration future increases in the cost of construction. Real construction costs for the first phase of the Riverwalk was $3 million— the $13 million figure in the CIP includes future expansion of additional phases of the project. Alderman Schaefer made a motion, seconded by Alderman Condon to adopt the FY 14/15 through FY 18/19 Capital Improvement Program as presented. Mayor Low asked to call the roll: Ayes: Schaefer, Condon, Santi, Glab, Blake, Wimmer, Peterson Nays: None Abstentions: None Absentees: None Motion passed. McHenry City Council February 17, 2014 Page 7 of 7 MAYOR STATEMENT AND REPORTS Mayor Low offered her compliments to the city's Snowplowing Crews for keeping city streets as clear of snow and ice as possible noting they are working long hours this winter season. COMMITTEE REPORTS Alderman Blake announced a Public Works Committee meeting is scheduled for February 26"' at 6:00 PM and, he is waiting for confirmation from IDOT for a public forum tentatively scheduled for March 12t" at 6:00 PM regarding the IL 31 from IL 176 to IL 120 improvements project. STAFF REPORTS None. FUTURE AGENDA ITEMS Alderman Glab said it is election season and suggested staff send a letter to the candidates informing them of city regulations regarding election signage. ADJOURNMENT Motion by R Petersen, seconded by R. Wirnmer, to adjourn the regular meeting of the McHenry City Council to the next regular meeting. Mayor Low asked to call the roll: Ayes: Petersen; Nays: None Abstentions: None Absentees: None Motion carried. Meeting adjourned at 8:26 PM. Respectfully submitted, Wimmer, Condon, Santi, Glab, Schaefer, Blake. Mayor Susan E. Low Executive Assistant 4arci Iraghty