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Public Works Minutes 2011 11-15-11 APPROVED 2/21/12 RE-APPROVED W/ CORRECTIONS 5/15/12 UNITED CITY OF YORKVILLE 800 Game Farm Road Yorkville, IL 60560 PUBLIC WORKS COMMITTEE MEETING City Hall, Conference Room Tuesday, November 15, 2011 at 6:00 p.m. COMMITTEE MEMBERS PRESENT: Alderman George Gilson Alderman Diane Teeling Alderman Jackie Milschewski Alderman Larry Kot OTHER CITY OFFICIALS PRESENT: Alderman Rose Spears Bart Olson - City Administrator Eric Dhuse - Public Works Director Brad Sanderson - EEI Krysti Noble - Community Development Director MEMBERS OF THE PUBLIC: Tony Scott, Kendall County Record Rolph Snowbeck, Resident of Grande Reserve Becky Snowbeck, Resident of Grande Reserve Alderman Gilson called the meeting to order at 6:00 p.m. Citizens Comments: None. Minutes for Correction/Approval: PW 2011-65 Kennedy Road Shared Use Path - ITEP Grant Award - Mr. Olson stated this is a grant the city was awarded last year for Kennedy Road east of 47 to Grande Reserve and a final link to the Chicago Trail System. Mr. Olson said the total cost of trail is $350,000 because it is a federal grant and requires a fair amount of paperwork and engineering, which is a additional financial obligation to consider and it is four to five years out. Mr. Olson stated a minimum of three years before construction and the cost to the city would be $45,000 over three years. Alderman Teeling asked what happens if the city does not do it. Mr. Olson stated that there is not a penalty and the city can apply again. Alderman Teeling said she talked to a lot of residents and they all are in favor of this. She stated that they love the trails in their subdivision and they want this link. Alderman Kot asked about the net cost to the city and Mr. Olson said for the next three years it would be $45,000. Mr. Olson stated after that the construction is around $350,000. Alderman Kot asked when the city applies for the state grant. Mr. Olson stated the city would apply for that after the city decides to do this. Mr. Olson stated that would get it below $200,000. Mr. Olson stated the issue on the table tonight is an engineering contract with EEI to do phase one and two and it is over $20,000 so it has to be signed off by city council. Mr. Olson said that additionally IDOT requires to do a trail/grant agreement committing to do a trail. Mr. Sanderson stated it is a joint agreement that specifies the funding for phase one and two engineering. Mr. Sanderson stated it must be completed within 10 years. Mr. Sanderson said once the city commits to start, it must follow through or could be subject to reimburse the state. The city has 10 years to get the project started with construction. Alderman Gilson asked about the $45,000 for the first three fiscal years and if it has been budgeted. Mr. Olson stated that it has not. Mr. Olson stated that it would be funded by the general fund. Alderman Gilson asked when the funds would become due. Mr. Olson said that would be billed out as the project moves along and when the project is completed, we would submit for reimbursement from IDOT. Alderman Gilson asked if the city would see a bill in 2012. Mr. Sanderson stated that it usually takes four to six months to be approved, so that would put it to the tail end of the fiscal year before the city could start. Mr. Olson said the first bill from EEI would be toward the middle to end of 2012. Mr. Sanderson said they would invoice through the project. He stated that phase one would take six to eight months to get together. He said that it would be at least 18 months before it would begin Phase II design. Alderman Gilson stated it is a commitment to pay $350,000 to finish the whole project. He said if we haven't budgeted for the first $45,000, I have a hard time telling my constituents that we can't fix their roads, but we are going to spend this amount on trails. Alderman Kot asked if we don't go ahead with the trail now, he said he sees there are land acquisitions, so what will happen. Mr. Sanderson stated there are some easements that need to be acquired and some right away. Alderman Kot asked if the city tries to acquire it today, or 10 years from now, is there an issue either way. Alderman Kot asked if there is something time sensitive about acquiring this property. Mr. Sanderson said the land would get more expensive and construction prices would go up. Mr. Olson stated it is adjacent to the Grande Reserve subdivision, so when those units get platted we can just ask for an easement, so it shouldn't change price over time. Mr. Olson stated there are a couple of small out parcels not in city limits we have to acquire from a private party right away, which is a variable in this situation. Alderman Milschewski asked if it goes on both sides of the road. Mr. Olson stated that it is just the south/east side. Alderman Kot stated that he agrees with Alderman Gilson. Alderman Kot said that he has a hard time telling the residents there is little money for roads, but we are going to put in a trail. Alderman Kot said we could revisit this in a few years, he stated it is not a priority. Mr. Olson said that we have to reapply. Alderman Teeling said that the residents are very much in favor of having this and they want it. Alderman Kot said that if he asks the residents if they want their roads fixed or create a trail that they are not going to use now, they will want the roads. Alderman Kot said that it is not the time, we don't have the money. Alderman Milschewski said she agrees with Alderman Kot, the concept is great, but we have other things that need to be done for the whole of Yorkville not just that area. Alderman Teeling asked what the citys chances are when they apply again. Mr. Olson said he would think it would be the same result, but sometimes grant committees don't like to see a grant they previously awarded and then they denied it. Alderman Teeling said basically, this trail, if we decide to do on our own will cost 1.3 million and it won't happen if we don't get this grant again. Alderman Gilson stated that is pure speculation. Alderman Gilson said what we know is the city has roads and sewers that need fixed and don't have the money and the city needs to take care of what needs to be taken care of and make priorities. Alderman Milschewski asked about the plans for Kennedy Road. Mr. Olson said there are two obligations with Autumn Creek and Grande Reserve that are supposed to fund large portions of the project at a certain point. Mr. Olson said he thinks that the trigger points are 500 units in Grande Reserve and Autumn Creek there is a time line. Alderman Milschewski asked if Grande Reserve can do the trail. Mr. Olson stated no that will not be possible. Alderman Gilson asked the Mr. and Mrs. Snowbeck how they felt about the trails. Mrs. Snowbeck stated that she didn't care. PW 2011-68 Grande Reserve Request for Letter of Credit Reduction - Mr. Olson stated someone from Avanti/Bank of America one of the buyers/seller of subdivision was supposed to be here to state their request. Mr. Olson stated they let the city know yesterday they would not be in attendance. He said there is not an agreement they are reviewing our counter offer to their offer. Mr. Olson said where we started every request they had would require city council authorization. They studied the infrastructure of the subdivision and told the city what they had remaining. The city reviewed it and disagreed with certain things. Mr. Olson said we are getting close to an agreement. He said only one thing they want requires an annexation agreement. Mr. Olson said what they are asking for can be done at staff level and city council level. Mr. Olson stated that they have completed work. Mr. Olson stated they are going to pave some roads and complete some sidewalks and they would like a reduction of credit for that. Mr. Olson stated they are asking some of the obligations to be transferred to the future purchaser. Mr. Olson said they are asking to draw an area in different areas and release letters of credits for those areas because we are not planning to build on it, which requires an annexation agreement amendment. Mr. Olson said they do intend to complete entire units of infrastructure in the subdivision and take it to final acceptance to the city, instead of posting a warranty bond, to give us cash and assume the risk under the warranty period, which we have done in the past. Mr. Olson stated they should be here Tuesday to discuss it in public hearing. Alderman Gilson said he is concerned about taking the cash payment in lieu of security and if they don't complete, would we be at risk. Mr. Olson said we would study that and see what they actually do. We will have the engineers look at it and see what the risk is for the city, or is it complex and something we don't want a part of. PW 2011-63 Northland and Western - Traffic Control Signage - Mr. Sanderson said a request came in to look at that intersection. There is no signage or control at that intersection. Mr. Sanderson stated the intersection is open with the exception of one tree. He stated traffic is below the 2,000 units per day. Mr. Sanderson stated there is not an accident history at that intersection. He said that this intersection is not a good candidate for a yield sign based on the MUTCD regulations. The side street yields to the major street and it should operate well that way. Alderman Gilson asked who the request was submitted by. Mr. Sanderson stated it was an alderman that submitted it. Mr. Olson stated some of the residents were concerned it was next to a park and some are uncomfortable with an unsigned intersection. Mr. Dhuse stated if the tree is a problem, it will be removed. This item will be moved to consent. PW 2011-64 Miscellaneous Bituminous Patching - Mr. Sanderson stated this payment request is for the patching on Game Farm Road. The work is 100% complete, so we are recommending payment in the amount of $47,092.90. This will be the one and only pay request and it is below the authorized amount set earlier this year. This will move to consent. PW 2011-66 Autumn Creek Bond Reduction - Mr. Sanderson stated Pulte discovered earlier this year they were double bonded, meaning they had SSA bonds to cover part of the infrastructure and conventional bonds as well. Apparently, this was a problem in Bristol Bay, as well. They do not need to provide both. Several years ago they corrected this issue in Bristol Bay and discovered that this was an issue in Autumn Creek. Basically, our recommendation is for reductions. Mr. Sanderson stated they did a check to confirm the amount of conventional bonding and the SSA bonds to make sure there is enough bondage in place for the completed work and it is in place to cover ourselves. Mr. Sanderson stated they are recommending reducing bonding. Alderman Kot asked how this can go undetected for so long. Mr. Sanderson stated that it is an oversight back when building was moving quickly, it happened. Alderman Gilson asked why conventional bonding is still required and why would there be conventional bonding still required, if we had them double bonded. Mr. Sanderson stated they had a lot of money for earth work through the SSA for example, and they have already spent the $400,000 and we still need to have some more work out there, so we still need money to cover that so we need conventional bonding for that. Alderman Gilson asked if it was double bonded and we had money on the SSA side, why do we need conventional bonding. Mr. Sanderson stated double bonding means they had within the SSA bonds there are 10 line items where they could expend money. On the earth work side, they have expended all their money toward that and we still need to have security in place for that. Alderman Gilson asked about the appreciation that it will cost to complete, we will never have enough money over time, that bond will fall short, it is simple math. Alderman Gilson asked if we reduce these bonds, are we reducing these bonds according to the estimates from what year. Mr. Sanderson said from 2005. Mr. Sanderson stated it takes into account inflation, which is taken into consideration. Alderman Gilson stated that is good, but it will still not cover it. Alderman Gilson worries about reducing and not having enough bonds over time. Mr. Olson stated that is understandable, but this is the only subdivision that has built anything recently and it is in our own policy that we will do this, so if the city does not do this, it will be a red flag for future developers that we are not following our policies. Ms. Noble stated that this is in our annexation agreement that the developer has the discretion to choose one or the other. Alderman Gilson stated simplified legally, we are bound to not have them double bonded, if they request to do so. Mr. Olson stated that is correct. Mr. Dhuse stated in this case we should be well covered. Mr. Dhuse said he thinks the total minimum is 2.88 and if I am adding right it is a little over 5.1 million that we are still holding in bonds. Mr. Sanderson stated that is correct and Pulte is out there going through the development taking care of the punch list and they would like the city to come out in the fall and get a punch list they can work on in the winter and then in the spring get a good chunk of the development to the acceptance stage. This item will be moved to consent. PW 2011-67 Kendall Marketplace Improvements - Mr. Sanderson stated this is a pay request for work that has been completed in Kendall Marketplace. This will not be the final payment. It is for the amount of $61,057.18 for work that has been performed to date by Wilkinson. At this point, we will come in at or even slightly below the original value. Mr. Sanderson said generally, the work for the most part has been completed. The painting, curb and additions in grading. The grading was completed at the park site. The seeding was held off, due to the discussion with the parks. That work will be finished in the spring. Alderman Gilson asked what the other payments are for. Mr. Sanderson said that we had to cut off the date at a certain time for work performed. There was work done between the cut off date and now that is what is coming. When the spring work is complete, there will be a final invoice in the spring. Alderman Gilson asked if we looked at the stabilization of that area, will it hold up until that area is developed. Mr. Sanderson said we still need a punch list, but it did what it was meant to do. It cleaned up things and shaped it up. The additional pavement will prolong the life of it and it is a positive affect. Mr. Dhuse said they did extra fine grading that will help. Alderman Gilson asked if this will last awhile and in a year we won't have issues. Mr. Sanderson said that can depend on mother nature, but he feels that things are pretty solid out there. This item will be moved to consent. Old Business: PW 2011-52 Windett Ridge Mowing Update - Ms. Noble said that this is an update from the mowing complaints from the adjudication hearing in September. There were 14 units that lead to a $57,200 fine to Windett Ridge, LLC. Ms. Noble stated that on October 20th they were cited again this time 144 lots total. The hearing is scheduled for November 21st and she said we will again go after this development at a higher minimum lot fee. Mr. Olson stated there is a minimum fine in place now. Alderman Gilson said we have notified, adjudicated and fined, can we lien the first $57,200. Mr. Olson said you can't lien until we take the case itself to administrative review. Alderman Gilson asked why we can't with the first $57,200. Mr. Olson said they would prefer to do it all at once because of costs. Ms. Noble said that the city can't file the lien because the city did not perform the actual work. You can only lien against work that we completed. Alderman Gilson said that was not what was stated before when the citizens were sitting here. Mr. Olson said we are still intending on putting a lien, but we have to go through a hearing process to lien because the city didn't actually perform the work. Alderman Gilson said for security sake, we don't know what is going to happen with the new entity to place a lien on, so why can't we lien now before they file a transfer of ownership or bankruptcy. He feels that would be a smart thing. Mr. Olson stated that the hearing is this coming Monday. Alderman Gilson asked if the city will do that on Monday. Mr. Olson stated that it depends on what happens at the hearing. Alderman Gilson stated that we could be waiting another month and a half before something is done whereas if we file a lien, we could do something right now. Mr. Olson said no, we will have to go through an administrative system. Mr. Olson stated that he prefers to do two at once that is Attorney Orr's recommendation. Alderman Spears stated that will be less attorneys fees. PW 2011-48 - Road Maintenance on Tommy Hughes Way and Saravanos Dr. Update - Ms. Noble said this is a verbal update. She stated that she contacted the marketing manager for Circle K, Terry Johnson. He stated that there is not an agreement that he is aware of that Circle K has with Saravanos to maintain the area. Ms. Noble said the First Midwest Bank has the title to the property now. Alderman Gilson said we were told that Circle K was going to maintain the road because of the agreement between the owners/trust. Mr. Dhuse said at that time it was Shell not Circle K. Ms. Noble said now the bank that owns it. Ms. Noble said that they addressed the pot holes. Alderman Gilson said the public is using that as a road and it is private property, so how is this ever going to get maintained. Mr. Dhuse said it doesn't have to because it is private property like your driveway. Alderman Kot said they could close that off. Ms. Noble stated they are going to do that to parts of it. Mr. Olson stated that the simple answer is this is a property maintenance issue and if it is not kept up, they will be cited. Additional Business: Alderman Kot asked about the leaf pickup. Mr. Dhuse said that the south side was completed Monday morning and they are on the north side at Spring Street. Mr. Dhuse stated if we go any further into the year, we get snow and we can't do it after it snows. It is a planned time for pick up. We don't come around twice, they have to pick them up using bags. Alderman Milschewski asked if we have someone that we contact at the Patch. She said they have the meeting time listed wrong. Alderman Milschewski asked about Mr. Nicholson's property. Ms. Noble said that he has been cited again and he is scheduled for adjudication for December 21st. There being no additional business the meeting was adjourned at 7:14 p.m. Minutes Respectfully Submitted by: Lisa Godwin Minute Taker