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Admin Committee Minutes 2000 04-11-00 UNITED CITY OF YORKVIL,LE ADMINISTRATION COMMITTEE MINUTES APRIL 11, 2000 SANITARY SEWER FINANCING - Kevin McKenna Administrator Nanninga explained that the City hopes to bring the sanitary sewer up along the north side of Countryside Parkway at route #47. This would serve about 100 acres, but as Menards develops we want to extend this to the east to serve the Hamman property and perhaps Hinsdale Nursery, and maybe the Moser development. WE need to be ready for the development that is coming. We got an estimate from YBSD of $1.371 million, and Mr. McKenna estimate is at $1.5 million. Any line over 18" will belong to YBSD, it would be designed by Deuchler with possible recapture. Businesses would be exempt, and we could try to cover them with another plan. Mayor Prochaska stated the size of the business and what they are bringing would determine whether they would be exempt or not. Nanninga stated the aerial photography has already been approved by City Council. Mr. McKenna explained that when borrowing for water & sewer there are two ways you can do this, an installment contract or alternate revenue bonds. Installment contracts are higher and are generally spread out over a 20 year period. Alternate revenue bonds are cheaper at a rate of 6% for un -rated revenue bonds, and are more flexible. You pay interest only during buildout, usually the first 3 years. Either of these securities could be done right away. Rates are coming down. When Greenspan says rates are going up, he is referring to short term. Long term are coming down. If we issue this rates are about 5.30 to 5.40. With alternate bonds you would have cash on hand. Installment is more expensive, but quicker and no chance of a back -door referendum. With level debt service and lots of growth you could probably call in alternate bonds early. Year for year installment is 1 /10% to 1/4% higher. Don't limit to a five year balloon, go for 20 years. All in all alternate bonds are better security. Borrow a little extra, as interest rates change this won't mean much, perhaps $1000. per year. Nanninga stated that in June of 2001 the City will receive $240,000. from F.E. Wheaton, this demonstrates that over the next few years our' debt is coming down. Mr. McKenna had indicated the City could afford to do this without recapture if we chose to. Mayor Prochaska stated our income is also higher now due to growth and new business. The estimate for Menards first year is $3 5. million. Treasurer Allen stated that we could afford to do it without borrowing in 3 years. Mayor Prochaska stated the business is here now. We can't wait and hope we will have something come then. Menards wants road to route #34 & without sewer there is no road. Hamman won't annex and Mendards is the catalyst. 1 Alderman Sticka questioned turning over any sewer over 18" to YBSD. Mayor Prochaska stated we don't have to turn it over. We could maintain it ourselves. The questions is. Do we want to maintain them. Nanninga stated that actually it was Ralph Pfister of YBSD who suggested the 18" rule. They have an easier time working with land owners to get easements than we do. Mayor Prochaska posed the question. Do we want to go ahead? Menards is buying more property. Their main artery needs service. Treasurer Allen suggested we consider waiting. Mayor Prochaska that without sewer Menards could change their direction and not come here, Hamman has not annexed yet, and we would have no road to route #34. Treasurer Allen stated the interest from the new City Hall building was spent on other items. Nanninga stated it was spent on landscaping for the building. Alderman Kot stated that if we drag our feet people get the idea we don't want to work with them. Treasurer Allen stated he is concerned with our timing and that there will be other growth. Is the return on the investment worth it. Mayor Prochaska we have to be ready when the economy is ready. Look to the north, dragging things out is not beneficial to Yorkville. Alderman Sticka stated that a few months ago no one dreamed of Menards coming to Yorkville. Mayor Prochaska stated Menards will be up and running before we have this finished. Alderwoman Spears stated we could add the $240,000. from F.E. Wheaton on 6/2001 to the project. Alderman Anderson stated we simply have to decide how to finance it. Mayor Prochaska stated we can budget for no principal during construction, only after construction is done. Mr. McKenna stated we would have a small amount due January 1, 2003 (the 1st principal payment). We would decide what we want for the calendar year toward this debt payment. Payments would start January 1, 2004. Decide on timing, when do we need the money. If we go with Alternate revenue bonds, we pledge a source, such as sales tax and City Council passes a 2 i i resolution, publish and ready in 30 days. WE can get the money before we have to select a contractor. The Installment contract is more restrictive, you have to name the contractor. Alderman Sticka asked if we have an agreement to do the sewer with Menards. Nanninga stated we would need a little money to pay for the engineering. We would need 2 months in the Fall for engineering, we would be ready to bid in January or February, with construction in Spring. Sewer would run with road to east. Deuchler would show a plan. Mayor Prochaska stated once we have a signed agreement with Menards we should move ahead on this. WE would have a guarantee of their store before we start the sewer, and they would be close to up and running. Nanninga asked Mr. McKenna to set up a schedule with resolution and publishing scheduling money by Fall. Mr. McKenna advised we talk to local banks and see what they want, and sell the rest based on $1.4 million. Alderman Kot asked if there is any way to say some. Mr. McKenna stated the trend for long term rates are up. Mayor Prochaska advised Administrator Nanninga to work with Mr. McKenna to take loan in September. Find out what preparation we need in place. Bring proposal back to Administration Committee. Alderman Sticka stated that Menards has a big incentive to bring business to Yorkville. ADDITIONAL BUSINESS Budget Mayor Prochaska stated next year he wants salaries in a line item. Nanninga asked if he wanted it that way for this budget. Mayor Prochaska stated he wanted the lieutenant and sergeants together. Command Salaries. Treasurer Allen asked how many were still on the COPS Grant. Alderman Kot stated we absorb one per year. Mayor Prochaska stated the salary proposed for Administration is $65,000. , include the adjustment of Chief $61,100. and Recreation Director: $34,320. Keep full -time and part-time salaries separate. Can leave it this way for this year. Should show 1/2 year budget in better 3 format. Engineering should be a combined line item. There should be a line item for salaries and increases. Nanninga stated he would have new budget books for everyone for Thursday. Janitorial Service Nanninga stated the janitorial position will pay $10.00 per hour for not more than 1000 hours per year. There were 4 applicants, and 1 dropped out. Lieutenant Martin and Nanninga interviewed them and asked same basic questions of each. They felt that each had pluses, Richard Sparsky could fix everything, but Lorrie Barr has been at the Moose for 8 years. She is a good hard worker and livers on Tower Lane. She is the only Yorkville resident among the applicants. Both Martin and Nanninga recommended Lorrie Barr with a 90 day standard probationary period. It was felt it was not necessary to bond or insure her, but will check on health insurance option. A background check was done on all applicants, all were clean. As the mayor has the authority to hire for part-time alone, she will start 1 day after we notify her. Erdmann Advertising Nanninga stated that we need a transition and to give us some time he recommends we extend Ms. Erdmann's until September 30th at the same rate & hours. The contract is the same as always with a 60 day termination clause included. Treasurer Allen asked how close they were to hiring someone, and why they didn't hire Ms. Erdmann. The City has spent money for the co -op, $52,326.00. Nanninga stated they have lost the only two applicants they had, so they are not close at all. Bobbi Erdmann had applied for the job, but they did not consider her as she has her own business. Alderman Anderson asked if she does anything with the Chamber or Schools. There was further discussion regarding a person for the co -op and the City loosing money due to their hold up on hiring someone. Alderman Sticka stated he likes Ms. Erdmann, but she is weak, no negotiator, cannot close and he wouldn't recommend hiring her full -time. Alderman Kot stated they need to move on this issue. Alderman Anderson stated he had talked to the Mayor, they are moving. Undesser Has not had a report from Attorney Kramer since he sent the letter to Undesser. Lite Construction Nanninga stated that the material was available within a reasonable time. He will have documents from F.E. Wheaton for the next meeting. They should have ordered it, it would have been 4 I available within 6 weeks and they say it would have meant a delay. It should have fit if they had ordered it right. Alderman Anderson asked if it was available or not. Alderman Sticka stated they made a competitive bid - they had plenty of time Alderwoman Spears stated the parking lot has spots where is has standing water when it rains. Nanninga stated that Aurora Blacktop will try to shape it with heat to correct this. He will bring it back to Administration again next meeting. Car Show Budvet WSPY's DJ's fee is $300. but he will get sponsors and this will cover porta potties too. The total expenses are $760. but next year it will be self sustaining. The mayor can authorize this expense but wants feedback. He will find prize donations and he goes to lots of other shows where he will pass out flyers, etc. A lot for $300. Additional Business Alderman Sticka asked about the pine tree treatment Nanninga stated he would check on this. Alderman Sticka stated we should call Kramer and get an opinion on the Library's choice of the computer expert they have selected to be paid from Grant money. Russ Walter is a board member and we need legal advise on if we should allow this. Alderman Anderson asked if this was his business, how does he qualify, and what was the grant amount. It has an unfavorable tone about it. Alderman Kot suggested we look at the provisions of the grant, which might dis -allow this for a start. Alderwoman Spears asked about the high phone costs for the resource center. Mayor Prochaska stated that is the main thing they do there. The internet and phoning, it all comes from grant money. Adjourned 8:15 PM Minutes by Sandy Marker 5 I UNITED CITY OF YORKVH LE SIGN IN SHEET ADMINISTRATION COMMITTEE April 11, 2000 NAME (PLEASE PRINT!) REPRESENTING PHONE # O rr r� 1�� J o 1 61oviI(e �- Q I o � � �f WoJrA ,1� 5,5 3 e <-U 17 I i r 01 A/ M C c I, h S PL�L f� i.✓f vc;AC r z 7 8 o 2 17p i I i i i I