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City Council Minutes 2013 03-26-13 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, HELD IN THE CITY COUNCIL CHAMBERS 800 GAME FARM ROAD ON TUESDAY, MARCH 26, 2013 Mayor Golinski called the meeting to order at 7 : 00 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Deputy City Clerk Pickering called the roll. Ward I Colosimo Present Koch Present Ward II Milschewski Present Kot Present Ward III Munns Present Funkhouser Present Ward IV Spears Present Teeling Present Also present: Deputy City Clerk Pickering, City Attorney Orr, City Administrator Olson, Chief of Police Hart, Public Works Director Dhuse, Community Development Director Barksdale-Noble, Interim Director of Parks and Recreation Schraw, EEI Engineer Sanderson, Human Resources Manager Ostreko, and Administrative Intern Weckbach. QUORUM A quorum was established. AMENDMENTS TO THE AGENDA None. PRESENTATIONS None. PUBLIC HEARING PC 2013 -02 Tim Greyer, Petitioner, has filed an application with the United City of Yorkville, Kendall County, Illinois, requesting an amendment to the Briarwood Subdivision (formerly Cornerstone) Annexation Agreement and Planned Unit Development dated July 22, 2003 and subsequently amended on April 24, 2004 related to the reduction of building and development fees. The real property consists of approximately 18 acres located generally north of Route 71 ; west of Route 47; and generally east of Walsh Drive in Yorkville, Illinois. Mayor Golinski said that the public hearing would be continued to the April 23 , 2013 City Council meeting at the petitioner' s request. CITIZEN COMMENTS ON AGENDA ITEMS None. CONSENT AGENDA 1 . Resolution 2013-07 — for MFT General Maintenance Appropriation for FY 2014 — authorize Mayor and City Clerk to execute (PW 2013 -08) 2 . Heartland Commercial Center Sanitary Sewer Acceptance — accept the public improvements (sanitary sewer) as described in the Bill of Sale for ownership and maintenance by the City and authorize the waiver of the requirement for a performance guarantee equal to 10% of the value of the public improvements, subject to verification that the developer has no outstanding debt owed to the City for this project. (PW 2013 -09) 3 . Resolution 2013-08 — Approving a Revised Parkway Tree Program - authorize Mayor and City Clerk to execute (PW 2013 - 10) Mayor Golinski entertained a motion to approve the consent agenda. So moved by Alderman Munns; seconded by Alderman Funkhouser. Motion approved by a roll call vote. Ayes-8 Nays-0 Munns-aye, Milschewski-aye, Koch-aye, Teeling-aye, Funkhouser-aye, Kot-aye, Colosimo-aye , Spears-aye MINUTES FOR APPROVAL None. The Minutes of the Regular Meeting of the City Council — March 26. 2013 — Page 2 of 6 BILLS FOR PAYMENT (Informational) : $706,232 .38 REPORTS MAYOR' S REPORT Ordinance 2013 47 Extending the New Residential Construction Incentive Program by Amending Ordinance Number 2012-21 (B.U.I.L.D. Program) (CC 2013 - 16) Mayor Golinski entertained a motion to approve an Ordinance Extending the New Residential Construction Incentive Program by Amending Ordinance Number 2012-21 (B .U.I.L.D . Program) and authorize the Mayor and City Clerk to execute . So moved by Alderman Kot; seconded by Alderman Teeling. Motion approved by a roll call vote. Ayes-7 Nays- 1 Milschewski-aye, Koch-aye, Teeling-aye, Funkhouser-aye, Kot-aye, Colosimo-nay, Spears-aye, Munns-aye Letter Opposing Cuts to Local Government Distributive Fund Revenues (CC 2013 - 18) Mayor Golinski entertained a motion to approve a Letter Opposing Cuts to Local Government Distributive Fund Revenues and authorize staff to send to state elected officials . So moved by Alderman Funkhouser; seconded by Alderman Munns . Mayor Golinski said that Governor Quinn has announced that the state would like to cap the Local Government Distributive Fund (LGDF) revenues that go to municipalities. Governor Quinn is proposing to cap the amount that municipalities receive at the level where it currently is . This means that if there is any growth in the LGDF revenues, it would go to the state instead of the municipalities . If approved, the proposal to cap the LGDF revenues would end up costing the City anywhere from $90,000 - $200,000 in revenue each year. Motion unanimously approved by a viva voce vote. PUBLIC WORKS COMMITTEE REPORT Fox Hill and Sunflower Estates SSA for Mowing and Maintenance — Bid Award (PW 2013 - 11 ) A motion was made by Alderman Teeling to accept the bid proposal for the mowing and maintenance of the Fox Hill and Sunflower Estates subdivisions for the fiscal year 2013 -2014 from Marywood Landscaping, Inc. ; seconded by Alderman Munns. Mayor Golinski said that the bids came back lower than expected this year. Motion approved by a roll call vote . Ayes-8 Nays-0 Teeling-aye, Funkhouser-aye, Kot-aye, Colosimo-aye, Spears-aye, Munns-aye, Milschewski-aye, Koch-aye Infrastructure Costs (PW 2013 -06) Administrator Olson said that staff is seeking endorsement from the City Council on the staff recommendation for the five year Road to Better Roads Program that is in the packet. He explained that if staff proceeds as proposed, the roads that would be repaired this year would be Bristol Avenue, Leisure Street, McHugh Road, Walnut Street, and Somonauk Street. Administrator Olson noted that if the City Council would like staff to proceed, it would result in an EEI engineering agreement for the design of the Bristol Avenue water main project being placed on the April Public Works Committee agenda. He said that each individual road project would require an engineering agreement that would outline the scope of services for each project. These engineering agreements would be placed on an agenda for City Council approval. Since the engineering agreements will need City Council approval, endorsement of the proposed five year plan would not obligate the council in the future if they decide to change their mind. The general consensus was for staff to proceed with the proposed five year road repair program. ECONOMIC DEVELOPMENT COMMITTEE REPORT No report. PUBLIC SAFETY COMMITTEE REPORT No report. The Minutes of the Regular Meeting of the City Council — March 26, 2013 — Page 3 of 6 ADMINISTRATION COMMITTEE REPORT Bond Refinancing — Library 2005B and Countryside TIF (ADM 2013 - 12) Library 2005B — Engagement Letter with Bernardi Securities A motion was made by Alderman Spears to approve an engagement letter with Bernardi Securities regarding refinancing the Library General Obligation Bond, Series 2005B and authorize the Mayor and City Clerk to execute; seconded by Alderman Milschewski. Alderman Kot asked if there was a recommendation from the Administration Committee as to whether the City should move ahead with this bond refinancing. Alderman Spears said that the library bond received a positive recommendation to move forward with the refinancing, while the Countryside TIF bond was moved forward for discussion by the entire City Council . Mayor Golinski suggested the City Council talk about the library bond first and take a vote and then they could discuss the Countryside TIF bond. Alderman Funkhouser commented that while no one wanted to push the city' s financial responsibilities further into the future, refinancing the library bond would help the financial ability of the city as a whole. Alderman Kot questioned if the $50,000 savings that the city would realize from the library bond refinancing would happen soon enough to offset the library' s projected deficit for this year. Administrator Olson explained that it would not impact the library' s budget because the library bond was a referendum approved construction bond and by refinancing it to save money, it would result in a lower portion of property taxes going towards repayment of the bond. He said that by refinancing this bond, the debt service payments are also decreased each year. Motion approved by a roll call vote . Ayes-8 Nays-0 Kot-aye, Colosimo-aye, Spears-aye, Munns-aye, Milschewski-aye, Koch-aye, Teeling-aye, Funkhouser-aye Attorney Orr informed the City Council that staff was planning on bringing the library bond refinancing ordinance to the City Council to vote on at the April 23 meeting. She explained that tonight' s vote was just to engage the underwriter to get started with the process. Countryside TIF Mayor Golinski asked Administrator Olson to update the City Council on the Countryside TIF bond. Administrator Olson explained that the refinancing of the Countryside TIF bond was proposed as part of the budget process from a debt service schedule perspective. He said that to align with the budget timeline, staff would need direction in the next month as to whether they should start the refinancing process. Administrator Olson said that refinancing the bond was originally proposed because the city has been paying the debt service payment each year out of the bond proceeds. If the bond is not refinanced by fiscal year 2019, there will not be any money left in the TIF fund to make the debt service payments . Last fall City Council approved an incentive agreement with a developer to build a theatre. The incentive agreement says that the city will pay out whatever is left in the bond proceeds fund when a certificate of occupancy is issued to the theatre. The remainder of the incentive money would be paid out over time from the amusement tax revenues . Administrator Olson explained that when staff looked at the debt service schedule, they found that at the time of payout to the developer, regardless of whether the amount left in the bond proceeds is 1 .2 million dollars or 1 . 8 million dollars, the city will still be looking at making next year' s bond payment as a temporary loan out of the general fund. He further explained that until the theatre is built, the property is fully assessed, and the property owner starts making property tax payments on a completed theatre, the Countryside TIF fund will be running at a deficit. Once those things happen, is when the City will start to get the TIF revenue and that' s when the City can use the TIF revenue to start offsetting the bond payment. Administrator Olson said the question is — does the City Council want to be in deficit the next couple of years or do they want to just refinance the bond which would lower the City' s payments and stretch out the life of the TIF . He said that the answer depends on what the City can afford from a cash flow perspective . Alderman Colosimo questioned from a budget and cash flow perspective what incentive is there for the City to refinance the bond to make an early $600,000 payment to the developer. In his opinion, the developer entered into an agreement that they would get 1 .2 million dollars and that the rest would be paid off by the TIF . Attorney Orr clarified that the rest of the money would be paid off by the City' s share of the amusement tax. She said that if the developer obligation was paid off then the City would receive the amusement tax money sooner, which would result in a more realistic view of revenues versus obligations . Administrator Olson said that the question remains as to whether the City should try to refinance this bond or not. He said that the process takes a couple of months, so he would like clear direction as to whether he should proceed. Attorney Orr mentioned that the bond is General Obligation backed, so if the The Minutes of the Re!ular Meeting of the City Council — March 26, 2013 — Page 4 of 6 City cannot fund the debt service payments from TIF proceeds, then the City has to fund the debt service payments out of the general fund. This is the reason to look at the numbers so that if the interest rate is less, then the City doesn't have to fund the debt service payment out of the general fund. Administrator Olson said that his suggestion from a budget prospective is to be conservative and amend the budget to remove the refinancing from budget and then continue the discussion as to whether to refinance at a later date. He said that if they proceed this way, then the city would be preparing for the most expensive scenario in regards to that fund. Alderman Colosimo thought that the City should budget conservatively for the most expensive scenario and then have staff investigate the refinancing option. The general consensus was to proceed with Alderman Colosimo ' s suggestion. Benefit Insurance Program Renewal — FY 14 (ADM 2013 - 16) A motion was made by Alderman Spears to authorize staff to cancel the contract with Lincoln Financial Group and approve a contract with Guardian for life insurance, to renew a contract with EyeMed for vision insurance, to renew a contract with Blue Cross Blue Shield for dental insurance, to renew a contract with Blue Cross Blue Shield for health insurance for current HMO and PPO plans with no change from the previous fiscal year for non-union employee contribution rates, and to add a second PPO option with employee contribution rates at 4% ; seconded by Alderman Milschewski. Motion approved by a roll call vote. Ayes-8 Nays-0 Colosimo-aye, Spears-aye, Munns-aye, Milschewski-aye, Koch-aye, Teeling-aye, Funkhouser-aye, Kot-aye PARK BOARD Mower Trade-in and Purchase (CC 2013 - 19) Mayor Golinski entertained a motion to approve the trade-in of a 2003 Toro mower to Reinders, Inc ., as part of the purchase of a new mower. So moved by Alderman Munns; seconded by Alderman Milschewski . Motion approved by a roll call vote. Ayes-8 Nays-0 Spears-aye, Munns-aye, Milschewski-aye, Koch-aye, Teeling-aye, Funkhouser-aye, Kot-aye, Colosimo-aye PLAN COMMISSION Ordinance 2013 48 Approving the Salek Subdivision of Lion ' s Pool Final Plat of Subdivision (PC 2013 -01 ) Mayor Golinski entertained a motion to approve an Ordinance Approving the Salek Subdivision of Lion' s Pool Final Plat of Subdivision and authorize the Mayor and City Clerk to execute. So moved by Alderman Colosimo; seconded by Alderman Funkhouser. Mayor Golinski commented that there had been a minor scrivener' s error on the plat that was approved by the City Council at a previous City Council meeting. He explained that this revised plat will correct the error. Motion approved by a roll call vote . Ayes-8 Nays-0 Munns-aye, Milschewski-aye, Koch-aye, Teeling-aye, Funkhouser-aye, Kot-aye, Colosimo-aye, Spears-aye ZONING BOARD OF APPEALS No report. CITY COUNCIL REPORT No report. CITY CLERK' S REPORT No report. CITY TREASURER' S REPORT No report. COMMUNITY & LIAISON REPORT School Board Meeting Alderman Funkhouser reported that the school board had held a public hearing last week for the online charter school that has been proposed. He said that the public comment was very unfavorable to a charter school in the community. The Minutes of the Regular Meeting of the City Council — March 26, 2013 — Page 5 of 6 Letter regarding Tattered American Flags Mayor Golinski read an email that he had received from Mr. Justin Wright, who is a disabled American Veteran. Mr. Wright' s email said that he had served in the Marine Corps for seven years and he was very concerned that some of the businesses in Yorkville were flying torn and tattered American flags. In his email he said that if addressing this concern was a matter of man power, that he would offer his services to lower the tattered flags and raise new ones . Mayor Golinski said that he received a list of thirteen businesses with tattered flags from Mr. Wright and that staff started calling businesses . He said that all of the businesses that they called changed their flag right away. Mayor Golinski said that he wished to thank Mr. Wright for bringing this to the City' s attention and he asked that if anyone sees a tattered flag, just to call City Hall and let the staff know. Alderman Colosimo mentioned that there is a bin in the front of the American Legion on Route 34 where American flags can be dropped off so that they can be properly disposed of. STAFF REPORT No report. MAYOR' S REPORT (cont' d) Proposed Fiscal Year 2013-2014 Budget (CC 2013 - 12) Library Transfer Mayor Golinski said that there are a couple of outstanding issues with the budget which need to be discussed again, the first of which is the request to transfer money into the library' s budget. He mentioned that the Library Board had sent all of the elected officials a letter regarding the library' s request for the City to transfer $21 , 000 into the Library Operations line item. The City Council discussed that the library already has an approximate fund balance of thirty-seven percent, while the city is currently facing a deficit and also that complaints have been received that the library is not open on Sundays. It was brought up that the City should approve the transfer because the library, in previous years, had made concessions to the city by taking less than the maximum levy allowed by law based on the City telling them that if they took the smaller levy, that the City would keep their funding at the same level that the Library had previously received. Mayor Golinski took an informal poll and the majority of the City Council were in favor of adding the $21 ,000 transfer to the library' s budget, based on the concessions that the library had made in the past at the city' s request. Senior Garbage Subsidy Mayor Golinski said that the next discussion item is the senior garbage subsidy. He feels that the City should go with the full senior garbage subsidy for FY 14 as he thinks that it is too late to change at this point. He said that a three tiered system was looked at and it appeared that it would be very difficult to administer with the current staffing levels . Mayor Golinski thought that the City Council should consider a true needs-based program, which would be based on circuit breaker eligibility. If seniors qualified for circuit breaker, then they would just be charged a flat dollar amount such as $5 .00 per month for garbage service. In addition, the City could still offer a senior discount for seniors who are ineligible for circuit breaker. He said that it could be a discount of 25 % or 30% off the cost of garbage service . Alderman Colosimo said that he still thinks that the City should have a three tiered system. Alderman Milschewski asked if the staff had looked to see what other communities where doing. Administrator Olson said that most other communities offer an age based discount only. Mayor Golinski said that he thinks that our subsidy is an anomaly; that no other community offers seniors garbage service for fifty cents a month. Administrator Olson said that based on the discussion, his recommendation is to budget for the full subsidy of $ 140,000 for FY 14 and then budget $75 ,000 per year for the subsidy for FY 15 through FY 18 and work on the senior discount policy over the next year. Mayor Golinski said that he would like to send the senior discount policy to the Administration Committee for the committee to work out a policy for next year. Countryside TIF Alderman Colosimo questioned what the timeline was for the City Council to make a decision as to whether the city should fully fund the incentive payout for the theatre . Administrator Olson said that an informal decision would be made as part of the budget process . Depending on the direction as part of the budget process, staff would bring a revised development agreement to the City Council if that was the direction given. Alderman Kot asked if the incentive payout had been discussed recently with the developer. Administrator Olson said that the original development agreement contemplated a $ 1 . 8 million dollar payout from the TIF fund and when the construction timeline and the debt service payments were looked at, it was realized that there would probably only be around $ 1 .2 million dollars left in the TIF fund depending on the final construction timeline . He said that the developer was planning on receiving the $ 1 . 8 million dollar amount from the TIF fund. Alderman Kot thought that the City Council should talk to the developer about this . Mayor Golinski commented that the total incentive to the developer was two million dollars and it was originally thought that the developer would be receiving $ 1 . 8 million when the theater opened with the remainder of the incentive money being paid out over time from the amusement The Minutes of the Regular Meeting of the City Council — March 26, 2013 — Page 6 of 6 tax revenues . He mentioned that he was out at the job site earlier that day and that the footings had been poured and that the walls should be going up during the early part of April. Administrator Olson said that they could budget conservatively with the most expensive scenario for budget purposes. Employee Health Care Costs Alderman Kot asked for clarification on the employee health care costs. Administrator Olson said that the original budget proposal included a gross raise that would be approximately five percent for employees and in return the employees would be asked to contribute a higher percentage toward health insurance costs. He said that the latest revision to the budget reverts to a two percent gross raise and eliminates the additional percentage that had been proposed for employees to contribute towards health insurance costs. Employees will pay the same percentage cost that they have been currently paying. Administrator Olson mentioned that health insurance premiums were increasing for FY 14, so the monthly insurance costs would increase a little for employees . Mayor Golinski said he would be bringing an ordinance approving the budget to the April 9 City Council meeting. ADDITIONAL BUSINESS Route 47 Construction — Truck Route Alderman Koch asked if the alternate truck route was mandatory for trucks during the Route 47 construction project. Administrator Olson said that the truck route is optional and that the construction staging is set up to allow for wide loads to still travel on Route 47 . Safe Routes to School Sidewalk Project Alderman Kot wanted to make sure that information was communicated to residents about the Safe Routes to School sidewalk program. Engineer Sanderson said that the project was supposed to be starting the following week and that a flyer would be passed out to the residents about the project. EXECUTIVE SESSION None . CITIZEN COMMENTS Mr. Larry DeBord commented that he thought that the City Council should refinance the bonds if they could since interest rates were currently at a fifty year low. He also asked if the city was on the hook for any bills for the bike path. Mayor Golinski said that the Push for the Path group had raised over $ 100,000 so far for the bike path. He said that as the bills come in for the project, the Push for the Path group is turning over funds to the city to pay the bills. ADJOURNMENT Mayor Golinski adjourned the meeting at 8 : 13 p .m. Minutes submitted by: 066Q Lisa Pickering, Deputy City Clerk, City of Yorkville, Illinois REGULAR CITY COUNCIL MEETING March 26, 2013 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS:� lq✓/s t Z /Z U L/, S 1� 1C. 11 -'17 1 X11 F,4 0 o le Kotvlq4p *Lekl,�wv (z7-- v,