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.
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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
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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
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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
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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
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UNITED CITY OF YORKVH LE
SIGN IN SHEET
ADMINISTRATION COMMITTEE
April 11, 2000
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