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City Council Minutes 2005 10-25-05 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, OCTOBER 25.2005. Mayor Prochaska called the meeting to order at 7:01 P.M and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Milschewski called the roll. Ward I James Absent Leslie Present Ward II Burd Present Wolfer Present Ward III Ohare Present Munns Present Ward IV Besco Present Spears Present Also present: City Clerk Milschewski, City Treasurer Powell, City Attorney Wyeth, Police Chief Martin, Director of Public Works Dhuse, Finance Director Pleckham and City Intern Olson. OUORUM A quorum was established. INTRODUCTION OF GUESTS Mayor Prochaska asked the staff and guests to introduce themselves. He welcomed the guests and asked them to enter their names on the attendance sheet provided. AMENDMENTS TO THE AGENDA None. COMMITTEE MEETING DATES Public Works Committee 7:00 P.M., Monday, November 7, 2005 City of Yorkville Conference Room 800 Game Farm Road Economic Development Committee 7:00 P.M., Thursday, November 17, 2005 City of Yorkville Conference Room 800 Game Farm Road Administration Committee 7:00 P.M., Thursday, November 3, 2005 City of Yorkville Conference Room 800 Game Farm Road Public Safety Committee 7:00 P.M., Thursday, November 10, 2005 City of Yorkville Conference Room 800 Game Farm Road Ad Hoc Technology Committee T.B.A. PRESENTATIONS None. PUBLIC HEARINGS (� Raintree Village H Special Service Area 2004 -107 Mayor Prochaska entertained a motion to go into public hearing for the purpose of discussing the Raintree Village H Special Service Area 2004 -107. So moved by Alderman Wolfer; seconded by Alderman Besco. Motion approved by a roll call vote. Ayes -7 Nays -0 Besco -aye, Burd -aye, Leslie -aye, Munns -aye, Ohare-aye, Spears -aye, Wolfer -aye David We from Concord Homes addressed the City Council. He explained this SSA would be for the southern section of the development and would cover public improvements such as sewers, roads, public lands, etc. The total amount of the bond will be $9,409,510.00 with amount for the public improvements being $6,690,094.00. The Minutes of the Regular Meeting of the Citv Council — October 25. 2005 — nage 2 Mayor Prochaska opened the floor for public comment. John Butler a resident of Raintree Village inquired about the difference in the total amount for the bond versus the amount for public improvements. Kevin McCann, from Spear Financial (the City's bond consultants), explained the difference. A portion of the bond issue will be used for construction (approximately $7 million) while 10% will be placed in a reserve debt service account (approximately $1 million). He further explained that while the debt service reserve is borrowed, it earns interest which is used to lower the annual payments and to make the final payment of the bond. Also interest will be capitalized for two years (approximately $1 million) to make sure there is no tax bill until the house is built. Mr. Butler asked if the details of the SSA will be posted so that residents could investigate it further and try to understand it. Mr. McCanna stated that the amounts would be detailed in the bond documents when it was finalized and this information would be available at the City offices in a day or two. Mr. Butler asked what the duties of David Taussig & Associates were and Mr. McCanna explained that they were hired by the City to do an annual report on the SSA. Mr. Butler commented that it seemed that when compared to a normal issuance of bonds, SSA's are an inefficient means of financing the infrastructure. He questioned why a company like Lennair needs to finance the construction through an SSA when they are capable of funding the infrastructure themselves. He questioned the thirty -yeas burden placed on homeowners for this mechanism and suggested that it would be better for the developers to charge the appropriate amount for the houses to cover the costs. There were no other public comments. Mayor Prochaska opened the floor for City Council comment. Alderman Spears asked Mr. Butler if he was aware of the SSA when he purchased his house. He explained that he did but he did not have a lot of information regarding SSA's. He stated that he did not have a problem with the SSA on his property however he has further researched them since his purchase and feel they are inefficient. Alderman Spears noted that some members of the City Council are against SSA's. Mr. Butler also commented that the public notice for the hearing did not clarify the areas that eh SSA affected. He stated that he spoke with Director Pleckham who was very helpful and clarified the public notice for him. Alderman Ohare questioned why Mr. Butler bought a house with an SSA considering his concern with it- Mr. Butler stated he accepts the fact he has an SSA and his consumer decision was based on the cost of the house. He bought a good house at a lower initial cost and with higher than average taxes which was a good decision for him. However, he felt that the infrastructure for the development could be attained without the need for an SSA and that the SSA was a marketing ploy - Alderman Leslie asked if this marketing ploy factored into Mr. Butler's purchase of his house. Mr. Butler stated that it did not. Mr. Butler explained that his SSA amount is not part of his escrow account so he had to calculate how this affected his budget so that he could set this amount aside. He questioned what the benefit of the SSA was to the entire City when Lennair has the funds to construct the infrastructure. City Treasurer Powell agreed with Mr. Butler that SSA's require education on the part of real estate agents, tax assessor, homeowners, etc. He noted that there is a cost to financing the infrastructure and this is passed down to the home buyer. He commented that the lower cost of the house allows some buyers to purchase more home than if they bought one without an SSA and that the buyer has the right to pay the SSA assessment upfront when the home is bought. He felt there SSA's have a place in Yorkville as well as other communities as long as the buyers are aware of what they are committing to. Alderman Burd commented that the Economic Development Committee would be having further discussion regarding SSA's at their meetings. Alderman Burd stated that the Committee would like to discuss SSA's with the public because they are looking for the downside of SSA's because all they hear are positive things. She stated she would like to talk with resident's who have SSA's to hear their reaction to them. She questioned that if the SSA can be paid off in the beginning why is an extra layer needed. She stated that the realtors she has spoken with are against SSA's because they lead to more bankruptcies and foreclosures. She felt they should be looked at from the resident's angle not the developer side. The Minutes of the Regular Meeting of the Citv Council — October 25. 2005 — Mgt 3 Mayor Prochaska and Alderman Munns noted that this will be on the Economic Development Committee meeting agenda November 17, 2005 and invited anyone with questions to attend. Mayor Prochaska stated that Mr. Butler made a strong argument however he would like to see the information that he based it on. He asked if Mr. Butler would provide Director Pleckham with the information so the City Council could use it to look at SSA's in a different way. Mr. Butler agreed to pass his information on to Director Pleckham. He commented that the first homebuyer of the property has a large burden placed on him and he could see where people could get in over their heads. He was surprised that more residents did not show up to discuss this tonight however he felt the confusion of the public notice might have deterred them. He again thanked Director Pleckham for her assistance in this matter. Mayor Prochaska entertained a motion to close the public hearing. So moved by Alderman Ohare; seconded by Alderman Besco. Motion approved by a roll call vote. Ayes -7 Nays -0 Burd -aye, Leslie -aye, Munns -aye, Ohare -aye, Spears -aye, Wolfer -aye, Besco -aye CITIZEN COMMENTS Paul Burd, 300 E. Hydraulic, addressed the City Council. He stated that at the last City Council meeting it was implied and reported that there might be something improper and maybe illegal concerning where he and his wife Alderman Burd live in regards to the downtown TIF district. He stated he wanted to comment on this and set the record straight. He explained that he and Alderman Burd purchased the property in question in 1988 and it was not in any previous City plans. He further explained that originally the property consisted of the brick factory building that is now townhomes, a lot on the other side of this building and the house they live in. In 1995 they sold the property and were going to move out of state. A developer offered to purchase the property and part of the purchase contract was to rezone from manufacturing to multifamily. The property was rezoned and all three parcels fell under a Planned Unit Development Agreement. He stated that at the time most of the City Council voted for the rezoning and PUD. He noted that Mayor Prochaska voted against it at the time and Mayor Prochaska stated he thought he was the only one who voted against it. Mr. Burd stated that through some events, he and Alderman Burd regained possession of their house and the eastern lot but not the factory building. Other than this nothing has changed since 1995. He stated that there is nothing improper with Alderman Burd living there. He further noted that the Facade ordinance does not affect them as its boundary ends at Mill Street. He stated that if the property is sold, he hopes to make money on it after living there all these years and working on the house which is just what any homeowner should expect. CONSENT AGENDA 1. Monthly Treasurer's Report for August 2005 2. Resolution 2004 -71— Adopting Recommended Plan to Implement Governance Enhancements as Proposed by Dr. Curt Wood and Dr. Gerald Gabris - authorize the Mayor and City Clerk to execute 3. Bruell Street Sanitary Sewer — Shed Replacement — authorize purchase of tool shed from Shedcraft & Decks, Inc. in an amount not to exceed $7,281. 00 4. Rob Roy Creek Interceptor Contract 3 — Change Order #2 — authorize increase in an amount not to exceed $244,359.50, funding from the Yorkville Bristol Sanitary District Infrastructure Participation Fee 5. Recreation Office Internet Contract — approve 24 month contract with SBC at $36.99 per month with no modem cost 6. Water Department Reports for July 2005 7. River's Edge Unit 1— Letter of Credit Expiration — authorize the City Clerk to call Letter of Credit should it become necessary 8. 2005 Joint & Crack Filling - Change Order #1 - authorize increase in an amount not to exceed $3,330.63 and authorize Mayor to execute 9. Rob Roy Creek Interceptor Contract #3 — authorize a ninety day time extension to March 1, 2006 and authorize City Engineer to execute 10. Kylyn's Ridge Unit 1 — Old Second Letter of Credit # 15367 — Reduction #4 - authorize reduction in an amount not to exceed $244,577.31 11. Kylyn's Ridge Unit 2 — Old Second Letter of Credit #15540 — Reduction #3 - authorize reduction in an amount not to exceed $81,676.68 12. Castle Bank - Letters of Credit No. 606 & No. 607 Kylyn's Ridge Unit 1 — Reduction #4 - authorize reduction in an amount not to exceed $244,5 77.31 13. Fox Hill Unit 7 Letters of Creditl — Reduction #4 - authorize reduction of Old Second Letter of Credit #15716 in an amount not to exceed $3,420. 60 and authorize The Minutes of the Regular Meeting of the Citv Council — October 25, 2005 — Dam 14. reduction of Old Second Letter of Credit #15804 in an amount not to exceed $285,355.40 15. Resolution 2005 -72 — IDOT Highway Permit and Resolution — Heartland Center - authorize City Clerk to execute 16. Resolution 2005 -73 — IDOT Highway Permit and Resolution — McVickers Development - authorize City Clerk to execute 17. Final Acceptance of Heartland in Yorkville Units 1, 2 and 3 — accept the public improvements 18. Water Department Reports for August 2005 19. Resolution 2005 -74 - Fox Industrial Park Project— Supplemental MFT Appropriation Resolution - authorize City Clerk to execute 20. In -town Drainage Improvements - Change Order Nos. 8 -11— authorize the total increase in an amount not to exceed $27,392. 00 (No. 8 - $4,242. 00, No. 9 - $11,120.00, No. 10 - $3,015. 00 and No. I1- $9, 015.00) and authorize the Mayor and City Clerk to execute 21. Rob Roy Creek Interceptor Contract 5 — Temporary Easement - authorize Mayor to execute 22. Rob Roy Creek Interceptor Contract 4 — Bid Results - award to D. Construction, Inc. in an amount not to exceed $1,495,900. 00, funding in accordance with the Yorkville - Bristol Sanitary District Intergovernmental Agreement 23. Resolution 2005 -75 — IDOT Highway Permit and Resolution — Raintree Village Route 126 Improvements — authorize Mayor and City Clerk to execute 24. Nextel Second Line Option — approve implementing second line option Mayor Prochaska entertained a motion to approve the Consent Agenda as presented. So moved by Alderman Besco; seconded by Alderman Ohare. Motion approved by a roll call vote. Ayes -7 Nays -0 Burd -aye, Leslie -aye, Munns -aye, Spears -aye, Wolfer -aye, Ohare -aye, Besco -aye PLANNING COMMISSIONMONING BOARD OF APPEAL No report. MINUTES FOR APPROVAL A motion was made by Alderman Ohare to approve the minutes of the City Council meetings of September 13, 2005 and September 27, 2005 and the Committee of the Whole meeting from August 16, 2005; seconded by Alderman Besco. Alderman Leslie stepped out of the meeting during this vote. Motion approved as corrected by a viva voce vote. BILLS FOR APPROVAL A motion was made by Alderman Ohare to approve the paying of the bills listed on the Detailed Board Report dated October 14, 2005 totaling the following amounts: checks in the amount of $689,180.25 (vendors); $183,141.74 (payroll period ending 1011105); for a total of $872,321.99 seconded by Alderman Burd. Motion approved by a roll call vote. Ayes -7 Nays -0 Besco -aye, Burd -aye, Leslie -aye, Munns -aye, Ohare -aye, Spears -aye, Wolfer -aye REPORTS MAYOR'S REPORT Ordinance 2005 -87 Amending and Restating Ordinance 2005 -77 Vacating Scott Road Mayor Prochaska entertained a motion to approve an ordinance amending and restating Ordinance 2005 -77 — Vacating Scott Road. So moved by Alderman Besco; seconded by Alderman Ohare. City Attorney Wyeth noted that one of the owner's names was omitted from the original ordinance. Motion approved by a roll call vote. Ayes -7 Nays -0 Leslie -aye, Munns -aye, Ohare -aye, Spears -aye, Wolfer -aye, Besco -aye, Burd -aye The Minutes of the Regular Meeting of the Citv Council — October 25, 2005 — naue 5 CITY COUNCIL REPORT No report. ATTORNEY'S REPORT No report. CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT City Treasurer Powell reported that the Annual Treasurer's Report for Fiscal Year 2004/2005 would be published on October 27, 2005 in the Kendall County Record. It has also been filed with the City Clerk's office and will be filed in the Kendall County Clerk's office. CITY ADMINISTATOR'S REPORT No report. FINANCE DIRECTOR'S REPORT No report. DIRECTOR OF PUBLIC WORKS REPORT No report. CHIEF OF POLICE REPORT No report. EXECUTIVE DIRECTOR OF PARKS & RECREATION REPORT No report. COMMUNITY & LIAISON REPORT Facade Committee Alderman Burd reported that she attended the Facade Committee meeting where they approved the payment of $5,130.50 to Bob Dearborn for the garbage enclosure at 213 Bridge Street. She also stated that she would be working on an amendment to the Facade Program ordinance. COMMITTEE REPORTS PUBLIC WORKS COMMITTEE REPORT No report. ECONOMIC DEVELOPMENT COMMITTEE REPORT No report. PUBLIC SAFETY COMMITTEE REPORT No report. ADMINISTRATION COMMITTEE REPORT Resolution 2005 -76 Bristol Bay SSA Resolution Declaring Official Intent A motion was made by Alderman Ohare to approve a resolution declaring official intent regarding Special Service Area Number 2005 -109, Bristol Bay I as presented, seconded by Alderman Wolfer. Motion approved by a roll call vote. Ayes4 Nays -3 Leslie -aye, Munns -aye, Ohare -aye, Spears -nay, Wolfer -aye, Besco -nay, Burd -nay Ordinance 2005- 88 Rob Roy Creek Bond Ordinance A motion was made by Alderman Ohare to approve an ordinance authorizing and providing for the issue of not to exceed $12,000,000.00 General Obligation Bonds (Alternate Revenue Source) Series 2005D, of the United City of Yorkville, Kendall County, Illinois, for the purpose of financing the construction of a sanitary interceptor sewer and related improvements, prescribing all of the details of said bond, and providing for the collection and segregation of the revenues sufficient to pay such bonds as presented; seconded by Alderman Wolfer. Motion approved by a roll call vote. Ayes -7 Nays -0 Ohare -aye, Spears -aye, Wolfer -aye, Besco -aye, Burd -aye, Leslie -aye, Munns -aye The Minutes of the Regular Meeting of the Citv Council — October 25. 2005 — nage 6 ADDITIONAL BUSINESS, None. EXECUTIVE SESSION Mayor Prochaska entertained a motion to go into an Executive Session for the purpose of discussing: 1. The purchase or lease of real property for the use of the public body. 2. For the appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body or legal counsel for the public body, including hearing testimony on a complaint lodged against an employee of the public body or against legal counsel for the public body to determine its validity. He asked that the City Clerk Milschewski, City Attorney Wyeth, Director of Public Works Dhuse, Finance Director Pleckham and City Intern Olson be included. He noted that no action would be taken after the session. The City Council entered into executive session at 7:50. The City Council returned to regular session at 8:19 ADJOURNMENT Mayor Prochaska entertained a motion to adjourn. So moved by Alderman Ohare; seconded by Alderman Burd. Motion approved by a viva voce vote. Meeting adjourned at 8:19 P.M. Minutes submitted by: Jacquelyn Milschewski, City Clerk City of Yorkville, Illinois CITY COUNCIL MEETING October 25, 2005 PLEASE PRINT NAME: ADDRESS: xx� �' J� o�2a ��h'►���— l %D �, ,huh al vL i Jy ycm� Ire tap Score Wl n� 5n,, � �� � �..� c� — rz.� � 4 �L G"LL/rx f o I e y d L u-,.% r e , 11 , / C 2-9- r ( — (vZic GA Cc AP Sb ( a O Wm Arkei 6S Ar& aA .. %ka k-� 11tiz 7 S9 '( i1 c� 5 �� �e Le a SIG CITY COUNCIL MEETING October 25, 2005 PLEASE PRINT NAME: ADDRESS: ��2 � all l �Lv Sr2 � P �.�� C ,► lP,�ar� x001 i c , SIGNIN I