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City Council Minutes 2011 01-11-11 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, JANUARY 11, 2011 Mayor Burd called the meeting to order at 7 :07 p.m. and led the Council in the Pledge of Allegiance. ROLL CALL Clerk Milschewski called the roll. Ward I Gilson Present Werderich Present Ward I I Golinski Present Plocher Present Ward III Munns Present Sutcliff Present Ward W Teeling Present Spears Present Also present: City Clerk Milschewski, City Treasurer Powell, Attorney Orr, Police Chief Hart, Deputy Chiefs of Police Delaney and Hilt, Public Works Director Dhuse, Finance Director Fredrickson, City Engineer Wywrot and Community Development Director Barksdale - Noble. QUORUM A quorum was established i INTRODUCTION OF GUESTS Mayor Burd asked the staff and guests to introduce themselves. She welcomed the guests and asked them to enter their names on the attendance sheet provided. AMENDMENTS TO THE AGENDA Alderman Spears requested that Item #I wider the Mayor's Report, Park Naming Request — Marge Cluie (CC 2010 -104) be tabled until the February 8, 2011 City Council meeting due to an additional application being received. Amendments approved unanimously by a viva voce vote. Mayor Burd requested that Item #6 under the Mayor's Report, State of the City Address (CC 2011 -03) be moved up to Item #1 under her report. Amendments approved unanimously by a viva voce vote. COMMITTEE MEETING DATES Public Works Committee Meeting: 6:30 p.m., January 18, 2011 City Hall Conference Room Economic Development Committee: 6 :30 p.m., February 1, 2011 City Hall Conference Room Administration Committee Meeting: 6:00 p.m., January 20, 2011 City Hall Conference Room Public Safety Committee Meeting: 6:30 p.m., January 27, 2011 City- Hall Conference Room PRESENTATIONS None. PUBLIC HEARINGS None. CITIZEN COMMENTS Mike O'Connell, Fos Run, commented that a resident was upset about the increase in taxes at the last City Council meeting. He noted that the city only gets 5% of real estate taxes whereas 70% goes to the School District. He felt the city was being demonized. He noted that Kendall County and the School The Minutes of the Regular Meeting of the City Council — January 11, 2011— page 2 District have approved raises. He felt that if the School District cut 2% it would exceed what the city has cut. Also, Kendall County should make an effort to cut tales as well. He also discussed the amenities the city has such as the water park, kayak chute, old jail, etc. He stated that the city has the opportunity to get 80% toward bike trails. He felt bike trails would attract people to the city which would help grow the tax base. He noted that Wisconsin turned down a high speed rail system so California stepped up for the finds. If the city- does not take IDOT funds for the trails some other community will. Judy Somerlot, Friends of the Yorkville Library, reported that the library submitted an application to the Pepsi On Line Project which is a grant program. The library is a finalist and is hoping to win fiords so they can purchase star - shaped yard signs to give children who complete the library summer reading program. Thirty-two grants will be awarded each month based on online votes. She explained the voting procedure and distributed a handout regarding the grant. She encouraged everyone to vote for the library. Mayor Burd indicated that she would have the city's PR person add the information to the city's news blast. Rolph Snobeck, Grande Reserve, stated he was an avid cyclist and that he would like to see bike paths in Yorkville however the question is do we want paths or need paths. He felt public safety is a # 1 concern and noted that there have been accidents due to snow not being plowed. He asked if the City Council had the public's trust. He noted that in November there was a referendum on the ballot for the bike paths and it did not pass. Each member of the City Coumcil has won an election. He questioned what would happen if their opponent wanted a "re-do", would the City Council let it happen? Once a vote fails, it fails and there are no "re- dos ". He asked how much it would cost to maintain the bike trails if they are built and where the money would come from. He also questioned what would happen if the state does not come up with the money. He noted that the state has not come forward with money it promised to other projects such as new roofs for the Brookfield Zoo. He asked what the rush was for the trails. He noted that two weeks ago the City Council chamber was packed with union guys in support of the trails. He asked how many of them actually live in the city. He questioned who they were to demand a job from the city. He stated that it his job as a boss, not the taxpayers, to find work for his employees. He encouraged residents to speak out at the next election in April. The city, state and the voters are broke. If there is no money, a project should not be done. Mayor Burd explained that the cost for the trails would be about $13.00 a year depending on the value of a home. Also, the city is not front funding the trail project, if the state does not give the city the fiuids, then the trails won't be built. Jesus Almaraz shared Mr. Snobeck's sentiments. He stated that programs are good but sometimes the fiords for them are not there. He felt that the paths were a good idea however this was a bad time for them. He added that he felt that if taxes were going to be increased it should be for the Police and Fire Departments. Elizabeth Snobeck, Grande Reserve, stated she was a student athlete who runs cross - country in college. She is required to nor and bike so she would like paths however people are in debt and this problem should be taken care of first. She stated that she is part of a unique population of new residents. The only tie to Yorkville is through her parents. She asked the City Council to look at the big picture and see where young home buyers are going. She stated she couild purchase something in a neighboring community and pay less taxes. Todd Milliron, Cotswold Drive, noted that the reason for the bike path issue at this time is because IDOT is doing improvements to Routes 47, 71 and 34. The bike trails are part of the projects. He explained that MFT funds are a dedicated revenue source for the payment of the project. He felt this is a onetime shot and if the money does not come from the state then the city will have no reason for the bonds. He stated that it is being put on the ballot again so that with more information the voters can make a choice. CONSENT AGENDA None. PLAN COMMISSION /ZONING BOARD OF APPEAL None. MINUTES FOR APPROVAL A motion was made by Alderman Sutcliff to approve the minutes of the City Council meeting of October 26, 2010, November 9, 2010 and November 23.2010; seconded by Alderman Plocher. Motion unanimously approved as amended by a viva voce vote. The Minutes of the Regular Meeting of the City Council — January 11, 2011— page 3 BILLS FOR APPROVAL A motion was made by Alderman Sutcliff to approve the paying of the bills listed on the Detailed Board Report dated January 5, 2011, totaling the following amounts: checks in the anount of $614.247.07 (vendors); $223,142.22 (payroll period ending 1 /1 /11); for a total of $837,38929 (total); seconded by Alderman Werderich. Motion approved by a roll call vote. Ayes -8 Nays -0 Plocher -aye, Spears -aye, Munns -aye, Sutcliff -aye, Gilson -aye, Teeling -aye, Golinski -aye, Werderich -aye REPORTS MAYOR'S REPORT State of the City Address (CC 2011 -03) Mayor Burd presented the 2010 State of the City Address (see attached). Ordinance 2011 -01 Approving a Land Lease Agreement with Verizon Wireless (2225 Wheaton Avenue, Wheaton Woods Park) Second Reading (CC 2010 -114) Mayor Burd entertained a motion to approve an ordinance approving a Land Lease Agreement with Chicago SMSA Limited Partnership doing business as Verizon Wireless (225 Wheaton Avenue, Wheaton Woods Park) and authorize the Mayor and City Clerk to execute. So moved by Alderman Plocher; seconded by Alderman Munns. Attorney Orr thanked Alderman Golinski for his question about the language in an earlier draft. The language was discussed with Verizon and corrected. Motion approved by a roll call vote. Ayes -8 Nays -0 Sutcliff -aye, Munns -aye, Spears -aye, Plocher -ave, Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye Tax Abatement Ordinances (CC 2010 -111) Abating the Tax Hereto Levied for the Year 2010 to Pay the Principal of and Interest on $3,500,000 General Obligation Bonds (Alternate Revenue Source), Series 2004B (Countryside Interceptor) Abating the Tax Hereto Levied for the Year 2010 to Pay the Principal of and Interest on $3,020,000 General Obligation Bonds (Alternate Revenue Source), Series 2007A (Refinance 2003A) Abating the Tax Hereto Levied for the Year 2010 to Pay the Principal of and Interest on $11,300,000 General Obligation Bonds (Alternate Revenue Source), Series 2005D (Rob Roy Creek) Abating the Tax Hereto Levied for the Year 2010 to Pay the Principal of and Interest on $2,020,000 General Obligation Bonds (Alternate Revenue Source), Series 2008 (Refinance Rob Roy Creek) Abating the Tax Hereto Levied for the Year 2010 to Pay the Principal of and Interest on $3,825,000 General Obligation Bonds (Alternate Revenue Source), Series 2005A (In -Town Road Program) Mayor Burd entertained a motion to approve the Tax Abatement Ordinances for the following General Obligation Bonds: Series 2004B — (Countryside Interceptor); Series 2007A — (Refinance 2003A); Series 2005D. — (Rob Roy Creek); Series 2008 — (Refinanced Rob Roy Creek) and Series 2005A (In -Town Road Program) and authorize the Mayor and City Clerk to execute. So moved by Alderman Sutcliff; seconded by Alderman Plocher. Burd clarified that a "no" vote to abate the ordinances would mean the cost will be put on the real estate tax bills. A "yes" vote will create an issue of how to pay for the bonds. She noted that the City Council asked the Yorkville Bristol Sanitary District for financial help but they are unable to help. The Minutes of the Regular Meeting of the City Council — January 11, 2011 — page 4 Aldennan Gilson read a statement regarding his feeling on the abatement ordinances (see attached email). Alderman Plocher asked Alderman Gilson if he supported a fee for the sewers on the water bills. Alderman Gilson stated he did not support residents paying any added fees. Alderman Sutcliff noted that a "yes" vote is like saving it is okav to default on loans. She felt there is no other solution. She stated she would not be responsible for the city defaulting on loans. Alderman Spears stated that the City Council was warned about outstanding financial obligations by former City- Administrator McLaughlin in an October 10, 2008 memo (see attached). She stated that she voted against the city budget due to this warning. She felt Mr. McLaughlin's warning was ignored and if steps had been taken in 2008 this might not be happening. She stated that previous administrations are getting blamed but this present council was aware due to the memo. Alderman Munns questioned how defaulting on the bonds would affect the city. Finance Director Fredrickson explained that if the city defaults it tivill be impossible to obtain future bonds. He reminded the Council that a fee of $62.00 can be placed on each water bill to pay off the bonds. Alderman Munns stated that people can criticize past administrations but ideas are needed now to come up with something better. Mayor Burd noted that Administrator Olson had distributed a memo indicating what future cuts could be made however this would be cutting all staff except the Police Department. She stated that when the bad debt was recognized, she implemented a Bad Debt Policy and the funds were no longer used as a revenue source. She explained that money is being taken out of the water fund to pay back the Grande Reserve development due to the mismanagement of funds. She added that the City Council cannot let the financial situation deteriorate so that future projects are negatively impacted by the lack of financing. She added that if the increase in sales tax is approved, these bonds can be abated next year and taken off real estate tax bills. Motion defeated by a roll call vote. Ayes -3 Nays -5 Munns -nav, Spears -ave, Plocher -nay, Werderich -nav, Golinski -aye, Teeling -nay Gilson -aye, Sutcliff -nay Approval of a Revised Early Retirement Proposal (CC 2011 -01) Mayor Burd entertained a motion to approve a revised early- retirement proposal from Sergeant Bang Groesch and authorize the Mavor to execute. So moved by Alderman Plocher; seconded by Alderman Sutcliff. Motion approved by a roll call vote. Ayes -8 Nays -0 Sutcliff -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -aye, Golinski -ave, Teeling- aye, Gilson -aye Resolution 2011 -01 Providing for and Requiring the Submission of a Proposition to Impose a Non -Home Rule Municipal Retailers' Occupation Tax and Service Occupation Tax in the Amount of 1% to the Voters of the United City of Yorkville at the General Election to be held on April 5, 2011 (CC 2011 -02) Mayor Burd entertained a motion to approve a resolution providing for and requiring the submission of a proposition to impose on Non -home Rule Municipal Retailers" Occupation Tax and Service Occupation Tax in the amount of I% to the voters of the United City of Yorkville at the General Election to be held on April a, 2011 and authorize the Mayor and City Clerk to execute. So moved by Aldennan Plocher: seconded by Alderman Sutcliff: Mayor Burd felt the increase in sales tax was the best solution in order to get the bond payments off the real estate tax bills. If the referenduun is approved, a commitment was needed from the City Council to use the proceeds to fund bond payments so that the bonds can be abated next year. She was asking for this now due to the upcoming election. If the City Council approves this at this time, a special election for the referendum won't be needed. She noted that the bond payments will escalate before they are paid in full. Also, if the city has a dedicated revenue source, it will be easier to refinance the bonds. Alderman Munns asked what would be put in place to dedicate the proceeds to the bond payments. Attorney Orr explained that once the money comes in, the funds are placed in the general fund. The City Councif can pledge the fiords towards the payment and/or refinancing of the bonds. Alderman Munns The Minutes of the Regular Meeting of the City Council — January 11, 2011 — page 5 asked if any studies have been done as to how this would affect the local economy or if the increase had been discussed with the business community. Mavor Burd stated that no studv or discussion had taken place. She noted that this was the last might to vote on the resolution so that the referendum could be placed on the April ballot. If it does not go on this ballot, the city will have to pay for a special election. She felt that Alderman Munns had a good question and she suggested that the matter be discussed with the Chamber of Commerce. Alderman Golinski asked if a sunset clause would be added so that the increase in the tax would only be applicable until the bonds are paid off. Attorney Orr stated that if the revenue source is temporary, it cannot be used toward the refinancing of the bonds. However, if another revenue source comes in, the sales tax can be decreased as long as the new source is dedicated to the bonds. There was a brief discussion on shopping at other communities versus in Yorkville. Alderman Golinski noted that he, like many people, passes several stores on his way home from work and could easily shop elsewhere. He stated that even if he could do this, he would still shop in Yorkville. Alderman Spears stated that currently other surrounding communities are equal in tax_ She felt that increasing the sales tax in Yorkville would take the city out of competition with area communities. She stated she discussed the increase with a few businesses that were dead set against it. She questioned if the increase would deter businesses from coming to Yorkville. She felt that people were more willing to pay for gas than pay a higher sales tax. Also, she was concerned that if the residents vote this down and people on the City Council don't like the results, would it be brought back for another vote. She stated she could not support the increase. Alderman Gilson also felt the increase was a detriment to local businesses however he did not have a problem asking residents for their opinion on the April ballot. Alderman Sutcliff stated that this was an effort to lessen the burden to the residents. She noted that the sales tax affects others who shop in Yorkville not just residents. She felt a message needed to get out to residents because they are anti -tax. If they vote for the referendum it will bring relief to their property taxes. i Mavor Burd noted that if the referendum is voted down it ,� t be evident that residents want the increase on their property tax bill. She stated that unless astronomical growth is seen, the property tales will probably be affected next year too. Alderman Golinski questioned the timing of the increase if the residents vote it in. Attorney Orr thought that if the increase is adopted at the April election it would become affective in January 2012 however she was going to verify this. Motion approved by a roll call vote. Ayes -6 Nays -2 Plocher -aye, Werderich -ave, Golinski -nay, Teeling -aye, Gilson -aye, Sutcliff -ave, Munns -aye, Spears -nay CITY COUNCIL REPORT None. CITY ATTORNEY'S REPORT No report. CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT - No report. CITY ADMINISTATOR'S REPORT No report. DIRECTOR OF PARKS & RECREATION'S REPORT No report_ FINANCE DIRECTOR'S REPORT No report. The Minutes of the Regular Meeting of the City Council — January 11, 2011— page 6 CITY ENGINEER'S REPORT No report. DIRECTOR OF PUBLIC WORKS REPORT No report. CHIEF OF POLICE'S REPORT No report. COMMUNITY DEVELOPMENT DIRECTOR REPORT Director Barksdale -Noble reported that the Integrated Transportation Plan group meets once a month to track the progress of the plan and funding. In December they discussed a grant that was available in November 2010 for the Kennedy Road path and the city's commitment to the project. They wanted information on other grants that might be available to help reduce the city's share of the commitment. She also reported on the Building Code Update Committee. Their goal was to be done by the end of 2010. They have reviewed and discussed amendments to six out of ten codes. If the remaining codes are completed there should only be two more meetings before sending the amendments to the city attorney for review. After Attorney Orr's review, there will be a public hearing for the amendments. COMMUNITY RELATIONS OFFICER'S REPORT No report. COMMUNITY & LIAISON REPORT Yorkville Bristol Sanitary District Alderman Gilson reported that he attended the Yorkville Bristol Sanitary District meeting on January 10, 2011 where they discussed two proposals; lending the city money and lowering fees. They also discussed discontinuing their cell phone service, visiting Plainfield's facility and the Deuchler report on expansion. - Springfield Alderman Sutcliff reported that she was back from Springfield where she attended the inauguration. She stated she met with the governor. senators, IDOT, etc. She stated she brought the needs of Yorkville to the state in order to establish a good relationship. Mayor Burd added that she would be going to Springfield for Kay Hatcher's swea.rulg -in ceremony. Northeastern Illinois Area Agency on Aging Alderman Spears reported that she attended the Northeaster Illinois Area Agency on Aging (NEIL) meeting (see attached report)_ COMMITTEE REPORTS PUBLIC WORKS COMMITTEE REPORT Proposed Revisions /Clarifications to Letter of Credit Policy (PW 2010 -75) Ordinance 2011 -02 Amending the City Code Providing for the Posting of Improvement Securities Prior to the Issuance of a Building Permit A motion was made by Alderman Plocher to approve an ordinance amending the City Code providing for the posting of improvement securities prior to the issuance of all building permanent and authorize the Mayor and City Clerk to execute; seconded by Alderman Munns. Motion approved by a roll call vote. Ayes -8 Nays -0 Werderich -aye, Golinski -aye, Teeling -aye, Gilson -aye, Sutcliff -aye, Munns-ave, Spears -aye, Plocher -aye Ordinance 2011 -03 Amending the City Code Amending the Requirements for the Posting of Maintenance Bonds A motion was made by Alderman Plocher to approve an ordinance amending the City Code amending the requirements for the posting of maintenance bonds and authorize the Mayor and City Clerk to execute; seconded by Alderman Munns. The Minutes of the Regular Meeting of the City Council — January 11, 2011— page 7 Motion approved by a roll call vote. Ayes -8 Nays -0 Golinski -ave, Teeling -aye, Gilson -aye, Sutcliff -aye, Muums -aye, Spears -aye, Plocher -aye, Z1l%erderich -aye Resolution 2011 -02 Amending Resolution Number 2009 -40 Clarifying the Policy on the Release of Security for Land Improvements a motion was made by Alderman Plocher to approve a resolution amending Resolution Number 2009 — 40 clariA ing the Policy on the Release of Security for Land Improvements and authorize the Mayor and City Clerk to execute; seconded by Alderman Teeling. Motion approved by a roll call vote. Aves -7 Nays -1 Teeling -aye, Gilson -nay, Sutcliff -aye, Mumns -aye, Spears -ave, Plocher -ave, Werderich -ave, Golinski -ave ECONOMIC DEVELOPMENT COMMITTEE REPORT No report_ PUBLIC SAFETY COMMITTEE REPORT No report. ADMINISTRATION COMMITTEE REPORT No report. ADDITIONAL BUSINESS Old Jail Aldennan Golinski reported that there was a broken window in the door of the Old Jail. Mayor Burd stated that it happened recently and that the door was in the section of the building to be removed. It will be boarded up. She added that the commission for the Old jail would be meeting soon. KenCom Alderman Golinski stated that he had a possible solution to the KenCom funding problem. He suggested that Kendall County check if it would be possible to add a fee on to their court costs. Attorney Orr stated that there is a statutory amount to be paid and she would check into Alderman Golinski's suggestion. Mayor Burd stated that she suggested an increase to the 911 surcharge on cell phones. River Front Park Aldernian Golinski asked how the city acquired River Front Park. He showed the City Council a copy of a warranty deed from the Meinert family dated 1981 _ The deed indicates there is a covenant and restriction on the park name. He stated he would provide staff a copy of the deed. Director Dhuse and Community Development Director Barksdale -Noble stated they would investigate the deed. EXECUTIVE SESSION Attorney Orr stated that she forgot to indicate at the amendment portion of the meeting that there would be no executive session tonight. ADJOURNMENT Mayor Burd entertained a motion to adjourn the meeting. So moved by Alderman Plocher; seconded by Alderman Spears. Adjournment of the meeting was unanimously approved by a viva voce vote. Meeting adjourned at 8:54 p.m. Minutes submitted by: Jacquelyn Milschewski. City Clerk City of Yorkville, Illinois REGULAR. CITY COUNCIL MEETING January 11, 2011 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: ` e vi a4e //e Ile U t air o r c (L REGULAR CITY COUNCIL MEETING lF% — Gc t.%mLt-j—% January 11, 2011 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: /G / Crier/ 51 fl Y�l- L P L �fizc��e 5n E/ I n r SIGNIN I I I� c1 p Memorandum To: City Council EST , 1836 From: Rob Fredrickson, Finance Director .� CC: Bart Olson, City Administrator p Date: January 11, 2011 SCE Subject: Change in Bill List Amount I There was an error in the processing of a reimbursement check issued to Ald. Robyn Sutcliff for expenses incurred relating to Holiday Under the Stars. The original amount entered of $258.02 included duplicate receipts. The corrected check amount to be approved is $129.01. As a result of this correction, the bill list totals for tonight's meeting have been reduced by $129.01, from $614,247.07 to $614,118.06. I ' I I II State of the City 2010 Each year since I've been mayor, I've given the City Council a summary of the State of the City in January. This is my fourth such update. I don't think this City Council needs me to tell it that we are living through some very hard times — hard for Yorkville residents who are struggling to make ends meets, to keep their homes out of foreclosure, and to keep food on their tables. We are also, as a City, facin g the same issues that our residents are facing — how to pay bills that we can not cut out of our budget. We also have to decide how to provide services. How to keep Yorkville a great place to live and give our residents the most benefits for the money they send us in their taxes. In 2010, Yorkville found itself struggling, like all our fellow municipalities, to get through the worst recession we have faced in our lifetimes. Our issues have included falling revenues, continuing landfill- related litigation that is bleeding money from our general fund, foreclosed developments with vacant lots and unpaved streets (sometimes it seems that Bank of America owns half of Yorkville), rising health -care expenses, and ballooning bond payments on infrastructure improvements to sewer and water services. In ?O10 the City had to institute the first water service rate increase in eight years and put into place a water infrastructure improvement maintenance fee to pay the City's water bonds because the City has lost its tap on fees that were meant to pay for all the infrastructure improvements. In 2010 we learned that the previous administration's fail - safe back -up plans to cover these bond payments had, in fact, failed and now all Yorkville residents, all of us, are on the hook. A similar problem is before you tonight, only this time it is for our sewer bond payments. Our options are limited. Let the payments go onto property taxes. Increase the monthly sewer bills. Or let the bonds default. No matter who is sitting in these seats next December, if we don't take the right actions tonight, in May 2012 the property tax bill will be even higher and it will continue to escalate. Could we have solved these bond payment issues last year by cutting the general fund sooner? You all know that cuts to our operating expenses would not make a dent in this $2-1 million sewer bond deficit we are projecting for this year's sewer payment. To toss that out as a possible solution just doesn't tell a true picture of what's going on with our City finances. Cuts in the general fund replace legal and bad debt and revenue losses; they don't cover these massive deficits in the water and sewer funds. Why didn't my administration come forward with solutions sooner? Because the solutions we have found — putting the payments onto the real estate taxes or increasing the rates, are not something that I, or that anyone on the City Council, would want to do until it needs to be done. I am for doing what is needed when it is needed and now is the time that action is needed, not last year and not next year. These are hard decisions to make, but we need to make them, and we need to do it now. And I believe that now is the time we need to decide to take the burden of the sewer bond payments off of our residents future property taxes and put it onto a less onerous sales tax. And we need to get the message out to our residents that this sales tax will allow the Council to get the sewer bond payments off of the 2012 property tax bills. We need to remember that many of our business owners pay property taxes too. o We began 2010 with a 20% reduction in our full -time staff and we would see another 9 people laid off at the end of the year, bringing the reduction to almost 30 %. This past year, we continued our second year of week -long furloughs in all departments but police, our hiring freeze except for two department heads who were replaced, and our wage freeze. I would like to here say that we are very fortunate in our employees. Our new Police Chief Rich Hart and City Administrator Bart Olson were able, without lawyers, to negotiate a new police contract that included a provision for a wage freeze. This is very unusual in municipal government, but it shows that our officers understand that we all need to work together if we are going to get through these hard times. I thank them for their spirit of cooperation and I think they prove what I've been told many times, we have the best police force in the Kendall County. Our other employees have gone through three years of wage freezes, and staff reductions. They are doing more with less and I think they also are doing a great job for our residents. I'd like to thank them too for all they do, plowing our streets over the holidays at all hours, getting out and fixing broken water mains in all kinds of weather, maintaining our parks and providing information to our residents. It's not easy to see your fellow workers laid off. My having to approve those layoffs were the hardest thing I've had to do during my four years as mayor. But those final layoffs should help balance the general fund through 2011/2012. But we still have financial issues. Moving into this year's budget discussions, the Council will have to decide what to do about our elusive fund balance. After writing off $1.7 million of bad debt and with the $1 million drain from the landfill litigation, the City's $2.6 million fund balance has disappeared. It almost makes me wish I had i continued to use the former administration's method of reporting the fund balance by including the bad debt as revenue, which would now show us to actually be up by $1.7 million. But at the end of the day, I think it is better to know the truth and try to fix the problem, than hide it and hope it goes away. So one of our goals is going to have to be to fix this deficit, but these general fund problems have to date been handled without resorting to real estate tax increases and I am sure the Council will continue to follow that path. Another budget discussion we will be having is about including development fees in our general fund revenues. In the past, this money was used to pay for new employees' salaries, but it is not a sustainable revenue source and I want it moved into another fund, such as the capital fund, where it can help to pay for one -time projects. And of course, we will be talking about the REC Center and its ongoing impact on the City's budget. Is it worth it to us as a City to pay $60,000 a year to provide that facility and all that it offers for our residents in recreation programs? Can we make more cuts to bring down that deficit? I plan to sit down with the Walkers, the owners of the building, in the next month and see how amenable they are to renegotiating the lease in light of the recession and decreasing property values. But this is a decision we will have to make by the end of this year — to keep the REC Center or to opt out of the lease in 2013. Back to 2010 It wasn't all doom and gloom. On a brighter note, this past year we purchased the Old Kendall County Jail, and with almost $6,000 in our budget from the Jail of the Dead Haunted House, the City will have enough money to pay the building's insurance and incidental expenses for at least three years. So contrary to dire predictions made when the City purchased the property, this project should not cost our taxpayers anything to maintain and it has already brought a lot of people a lot enjoyment. Hopefully, the Haunted House will become a Halloween fixture for our downtown. We were able in 2010 to work with two developers, Pulte and McCue Builders, to extend developments agreements to mirror those that were in place in 2006, and as a result, they both are continuing to build in existing developments in Yorkville. I look at that as something positive, because we need our vacant lots built on if we are going to move out of our current financial situation. i Even in these tough economic times, we had several new businesses open their doors in Yorkville this past year, including the Ultimate Sports Bar which includes the Hawthorne Off Track Betting facility, Hoppers Inflatable Bouncers, Donati's Cafd, Lakeview Bar & Grille, Yorkville Sports Academy, the Hampton Inn, General Laboratory Products, Todd Lawrence Photography, Steps for Kids, Nuture Your Pet, NetComm Communications, Tacos, Tacos, Tacos, Design 99, and Ulta Cosmetics, and Subway opened a second location on the City's southside. Some of our businesses, like Home Depot, Target and Kohl's, report that they are leaders in their areas for increasing revenue generation. That's good news, because all of this means more sales tax revenue for our City. This past year, the Illinois Department of Transportation moved forward with planning for the widening of Rt. 47 through our downtown, something that several of the members of this Council have been working to bring about for many years. Bids are scheduled to be let at the end of this year on that project, and planning is moving forward on the widening of Rts. 34 and 71. Yorkville's major arterial roads are all slated to be widened and improved, finally. But somewhere in our City budget, within the next two years, Council members will have to find funding to address our side streets, streets like Game Farm Road that are crumbling and desperately need attention. That is another challenge the City has to face. This coming year we will see construction begin on the new Rush - Copley emergency room, and the opening of the Car Care Collision Center and Hertz, and I am continuing to meet with groups interested in forming a coalition to build a solar panel energy plant in our area. This coming May, the City will join with state officials in the official opening of our White Water Park, the only facility of its kind in the entire state of Illinois, and in our northwest region. We are already seeing kayakers down at the riverfront, even in cold weather, trying the chutes. An influx of new people in our downtown is going to attract new businesses, and I predict that within months, the City will be announcing plans for new development in our downtown. There are a lot of good things happening in our city. There are a lot of opportunities, and yes, there are a lot of problems still left to resolve. I would encourage the City Council members to bring forward their ideas and to become part of the solution process. Just because the staff and I present our recommendations doesn't mean they are written in stone. If you have a better idea, don't wait for an invitation to speak. Each and every one of you has a forum at least four times a month at City Council meetings to state your ideas and to work with your fellow Council members in a positive way. I would like to thank all the members of the Council for the hours you have spent, working on behalf of your constituents during this past year. And I look forward to working with you in the coming months. Thank you. i Page 1 of 2 Jackie Milschewski From: <gilsonwardl @comcast.net> To: "Jackie Milschewski" <jzm401 @sbcglobal.net> Sent: Wednesday, January 12, 2011 12:29 PM Subject: Tuesday's Comments For The Record Jackie, Please find below my comments on Tuesday as it related to the Tax Abatements and the Proposed Sales Tax Referendum for the record: Tax Abatement Ordinances: I have already stated my feelings on this at the previous City Council meetings. If better budgeting practices were kept to realize that these bonds were due to be paid by a certain date and the City would have acted responsibly and reacted sooner with the appropriate adjustments, then we would not be passing on as steep of fees and or taxes that we are now proposing on our residents. It is my understanding that the City decided to go forward with approximately 25 million dollars of sewer debt in the name of growth, that should have been paid by developers and or upfront fees. The City went forward with these bond dollars without any responsible plan to pay off these bonds as growth slowed and revenue diminished. It is my understanding that according to a report I read that our water and sewer system was expanded to serve over 30,000 people, which is almost twice our current population in Yorkville. In additions to the actions taken by our City before my tenure as alderman, the City is also paying back the Grande Reserve developer for water connection fees that we agreed to rebate once collected. The City collected these fees, but never rebated the developer when collected, thus resulting in litigation and court order. The City has written off roughly 1.43 million dollars of debt due to the failure to collect developer deposits up front per the City's policy. The mayor mentioned 1.7 million dollars tonight and this is the first time I have heard this number. I was not a part of that past administration and myself and the residents, more importantly the residents of Yorkville were not responsible for getting us into this mess. I have voted against and continue to oppose our current budget as passed, and all non - priority spending and acquisitions that some of the current members of council have and continue to support. I cannot and will not embrace and ratify added taxes and fees on the residents for all of the poor budgeting, governing, and mismanagement with my vote. You can dramatize this stance, play politics with this stance, or point fingers at me for the blame, but I cannot and will not vote for any added taxes and fees on our residents in light of the situation I have outlined and detailed here tonight. I don't know if I have a 100% solution to this problem, other than use improper budgetary procedures to funnel more cutback savings into paying down these bonds and or refinancing these bonds and PROPERLY managing a long term payoff. One thing is for certain, 1, like the majority of our residents, are sick of poor governing, excess spending, and mismanagement of our tax dollars. Therefore I cannot vote to embrace adding this burden onto the residents. I liken this to having a car payment. I budget for my car payment when it comes due each month. If I cannot come up with the funding for the payment, I do not ask someone else to pay it for me. Sales Tax Referendum: 2/3/2011 Page 2 of 2 I also feel that there may be detriment in increasing our sales tax, but in light of our current situation, I have no issue going to the voters to ask their permission on this one. I think I know what their answer will be. Increasing any taxes in this time of recession is troublesome to me. Respectfully, George Gilson Jr. Alderman - Ward I United City of Yorkville Sent from my BlackBerry® wireless device from U.S. Cellular II I I 2/3/2011 Memorandum To: Mayor Burd & City Attorney Orr W. Z 1836 From: Brendan McLaughlin, City Administrator Date: October 10, 2008 C9 y`2C Subject: Outstanding Financial Obligations v LE � i As a follow up to our meeting of August 26 I have prepared a listing of the known, significant financial obligations of the United City of Yorkville. LITIGATION 1. Landfill Litigation — The IPCB is expected to hold hearings this fall and render a decision in the first quarter of 2009. At that time the city's legal costs should reduce dramatically. To date the legal fees associated with the landfill have been approximately $225,000. - 3 1 coo 2. Aspen Ridge Litigation — In multiple claims against the City, the owner of the Aspen Ridge property is claiming breach of contract and fraud against the city. The insurance carrier has denied coverage for this claim. Damages sought exceed $24 million and there is no estimate on defense costs at this time. This is a demand that the city also pay John Wyeth's attorney fees as he claims that he was an employee of the city and entitled to a defense pursuant to state law. Illinois law mandates municipalities defend an employee against any claim so long as the { employee was acting in the scope of his or her employment. 3. tayCom Litigation — Yorkville and Centex are being sued for breach of contract. Damages sought are over $12 Million. I UTILITY RECAPTURES OR IMPROVEMENTS 4. MPI Water Improvements Reimbursement — The city committed in the 2003 Annexation Agreement to enter into a reimbursement agreement with MPI (Grande Reserve Developer) for the regional water improvements they installed. The city is expected to turn over all water fees generated north of the river and east of 47, within a specific water pressure zone, to MPI. To date, the City has not reserved any of the funds collected and has been funding capital improvements and operations within the water fund with these monies. The estimated payment to MPI is $1.2 million. 5. Fox Hill Utility Recaptures — The text in the 1993 Annexation Agreement and 2003 Recapture Agreement can be interpreted that the City would have to pay if future development within the defined benefitted area does not tap into the oversized water and sewer lines installed as part of the Fox Hill subdivision. Estimates related to Rob Roy Falls development put the price tag for this obligation at $1,141,000, for which the city may be totally responsible. 6. Bristol Bay Stormwater Basin — In the 2005 Annexation Agreement, the city has obligated itself to build the stormwater basin to serve developments in the northern portion of the city. It is estimated to cost $4,000,000 and be built as development occurs. 'f y f rn��n. i 7. Inland Sanitary Sewer — The city committed in the 2004 Annexation Agreement to have a sanitary sewer interceptor installed to serve 47 and Baseline Road. The city had planned on an approved development south of the Inland property to develop and fund the installation of the pipe, but that development has not progressed. The project is estimated at $1.4 million for which the city may be responsible. 8. Centex Loan — Centex lent the city $105,000 to design the wetlands within the Raymond Regional Detention Area. Repayment is due in 2010 and includes prime rate interest plus two percent per the 2005 Annexation Agreement. 9. Windett Ridge Sanitary Sewer Reimbursement — The city is expected to pay the developer of Windett Ridge $170,000 for sanitary sewer oversizing per the 2005 PUD Amendment. 1o. Raintree Village Sanitary Sewer Reimbursement — The city is expected to pay the developer of Raintree Village $318,433 for sanitary sewer oversizing per the 2002 Annexation Agreement Amendment. The revenues to pay down this obligation are the $108 per year sanitary sewer charge placed on each customer within Raintree Village. 11. Autumn Creek Sanitary Sewer Recapture — The City has committed in the 2005 Annexation Agreement to waive 190 sewer connection fees ($2,000 each) for the next 190 building permits applied for in the Autumn Creek subdivision as part of the Autumn Creek Sanitary Sewer Recapture /Recovery Agreement. ROAD CONSTRUCTION 12. Fox Hill Permanent Signal — In 2007, the city committed to IDOT to have the signal installed in 2010. Cost estimate is $250,000. If Rob Roy Falls does not annex and develop, the city shall be responsible to pay for this signal. 13. Kennedy & Mill Road Improvements — Under the 2004 Grande Reserve Annexation Agreement, the city will receive $1.1 million dollars to im ove Kennedy Road from developers. The actual price tag to improve the road is closer to $1. million. Construction timing is based on permit issuance and is currently forecasted for��iscal Year 2010/11 to coincide with the opening of Autumn Creek Elementary. (f }-, , 7 14. Game Farm Road /Somonauk Improvements — First applied for in 1999, this federally aided road project is slated for Fiscal Year 2009/10. The city portion of the $5.6 million project is $3.3 million. MFT dollars are expected to pay for this project. 15. Route 47 Improvements — This state project with matching federal funds is expected to have a local share obligation in excess of $1.7 million for utility relocation, sidewalk installation and traffic signal modifications. 16. Eldamain Road Improvements — Based upon the 1999 Boundary Agreement, the city is obligated to spend the next $1 million dollars before Plano is expected to cost share on a 50/50 basis as 7. development occurs. It is expected that development on the Yorkville side would have to fund these improvements. 17. Fox Road — The city is expected to receive a LAPP grant in 2008 to fund improvements to Fox Road. The city's share is projected at $140,000 and the federal aid amount is $430,000 for a total project cost of $570,000. OTHER 18. Club 47 Lease — The monthly lease payments are expected to be covered by monthly revenues generated from memberships and parks programs. The total lease obligation to the City is N $1,086,000 over 5 years per the 2008 Lease /Purchase Agreement. 19. 2007 Clark Property Installment Purchase - $300,000 over three years. J 20. 2008 DPW Land & Building Purchase - $1.25 million 21. Hoover — Various infrastructure improvements were contemplated in the original agreements. It is anticipated that a new agreement will be developed relieving the city of any infrastructure obligations. Rough projections for water, sewer and park improvements exceed three million dollars. SALES TAX REBATE OBLIGATIONS The City has had a practice of rebating half of the sales tax generated from new commercial developments back to the developer of the site for public improvement costs identified in each incentive agreement. These commitments are memorialized in either annexation agreements or economic incentive agreements. Below is a list of developments that the City has entered into these agreements by year along with key points from detailing the city's obligations. 2000 22. Menard's — 50% Sales Tax Rebate for Roads "A" through "C" for 10 years "from the date of acquisition of the 'subject property' by owner ". Certain other improvements are to be paid back in full over the term of the agreement. (Agreement dale July 13, 2000 term 20 years under Ordinance 2000.32 and amended on October 11, 2001) 23. Yorkville Crossings — 50% Sales Tax Rebate. Certain improvements are to be repaid in full with 4.2% interest with a maximum repayment period of 15 years, but not commencing until Menard's Incentive Agreement has been completed or expired. (amended agreement dated March 11, 2008 under Ordinance 2008 -21; original annexation agreement dated July 13, 2000 under Ordinance 2000 -34) 24. Prairie Gardens — 50% Sales Tax Rebate - Certain improvements are to be repaid in full, with a maximum term of 12 years from the execution of this agreement. (agreement dated July 27,2000, Ordinance 2000 -36) 25. Herren Property (Ratos, Asparagus Crate) — 50% Sales Tax Rebate. Certain improvements are to be repaid in full with 5% simple interest per annum with a maximum term of 20 years. (NEC of 47 & Cornelis, agreement dated July 25, 2006, original annexation agreement dated September 28, 2000 under Ordinance 2000 -50) 2001 26. Yorkville Marketplace Part 1 —50% Sales Tax Rebate for certain improvements to be repaid in full with 5% simple interest per annum with a maximum term of 18 years from the one year anniversary of the date of passage and execution of this agreement. (Agreements on March 1, 2001 term 20 years under Ordinance 2001 -7a and Ordinance 2001 -76 (for Jewel and property north and east of it); 27. Yorkville Marketplace Part II — 50% Sales Tax Rebate for certain improvements to be repaid in full with 5% simple interest per annum with a maximum term of 18 years from the one year from March 30, 2001. (Agreement on May 24, 2001 under Ordinance 2001 -29 and 2001 -30 (for strip centerwest of Jewel) 28. Yorkville Marketplace Part III — 50% Sales Tax Rebate for certain improvements to be repaid in full with 5% simple interest per annum with a maximum term of 18 years from the one year from April 1, 2002. (Agreement on May 24, 2001 under Ordinance 2001 -29) "Additional Reimbursable improvements" up to $515,000 for the traffic signal at Route 34 and Marketplace Drive are entitled to be recovered until March 31, 2025. (Agreement on February 27, 2007 under Ordinance 2007.19) 2002 29. Cannonball Trail Development (Ratos Property) — 50% Sales Tax Rebate for certain improvements are to be repaid in full (no timeframe) plus 5% simple interest per annum. (Agreement dated June 11, 2002 under Ordinance 2002 -15) 2003 2004 2005 3o. Lincoln Prairie — 50% Sales Tax Rebate for certain improvements are to be paid back in full. (A dale May 24, 2005 under Ordinance 2005.48) 31. FE Wheaton — 50% Sales Tax Rebate for certain improvements are to be repaid in full with 5% simple interest per annum with a maximum term of 10 years from the date of passage and execution of this agreement (March 1, 2005). Economic Incentive agreement commences March 1, 2005, original commitment under Ordinance 1995.05 dated March 8, 1995. 2006 32. O'Keefe (Raging Waves) — 55% Amusement Tax Rebate which is 5% plus 50% sales tax rebate for Route 47 improvements including right of way with six percent interest. Certain improvements are to be repaid in full with a maximum of 20 years (explicit). Ordinance 2006 -101 the exact text related to ROW Is as follows: 'The period of computation of the sales tax rebate agreement will begin separately for DEVELOPER, and OWNER when OWNER undertakes development of Lot 1. The period of computation shall begin for DEVELOPER, and OWNER upon occupancy of the first unit of commercial retail development within each respective Lot on the SUBJECT PROPERTY, and will continue for a period of twenty (20) years or until the OWNER and DEVELOPER have been rebated one hundred percent (100 %) of their Route 47 land dedication, as well as one - hundred percent (100 %) of any required Route 47 Improvements and /or slgnalization including but not limited to design, engineering, as well as six percent (6 %) Interest whichever occurs first." (Amended agreement dated June 10, 2008 under Ordinance 2008 -50) I 33. Kendall Marketplace — 50% Sales Tax Rebate and 0.5% Business District Tax Rebate to pay bonds. Business District has a term of 23 years (development agreement approved August 22, 2006 under Ordinance 2006.88; business district tax created December 12, 2006 under Ord 2006 -147; Business District Tax Bond Ordinance approved December 12, 2006 under Ordinance 2006.148; Sales Tax Bond Ordinance approved January 23, 2007 under Ordinance 2007 -09;) 2007 34. Kappos Property — 50% Sale's Tax Rebate for certain improvements are to be repaid in full with 3% simple interest per annum with a maximum term of 20 years. (agreement dated Jan 23,2007 (SW corner of Route 47 and Cornelis Road) under Ordinance 2007 -08) 35. Fountain View — 50% Sales Tax Rebate for certain improvements are to be repaid in full with 3% simple interest per annum with a maximum term of 20 years. (agreement dated April 24,2007 under Ordinance 2007.361 36. Yorkville South (MPI) — 50% Sales Tax Rebate for certain improvements are to be repaid in full with 6% simple interest per annum with a maximum term of 20 years, but not commencing until the first occupancy in the commercial unit is issued. (agreement dated February 27 ,2007 under Ordinance 2007 -24) 2008 37. Countryside Center - 50% Sales Tax Rebate to cover TIF bonds (23 years) and Alternate Revenue Bonds (23 years) in that order. In addition, business district will be formed for an additional 1% sales tax that will be used to pay off the TIF and alternate revenue bonds. Business district has not been formed yet, and (new) bonds have not been sold. (Agreement date August 12, 2008 under Ordinance 2008 -73; original Redevelopment Agreement dated March 8, 2005 under Ordinance 2005.21) 38. Yorkville Town Center — Not more than a 50% of Sales Tax Rebate with maximum of $1,600,000 with no interest assessed and paid over 12 years pursuant to a separate Economic Incentive Agreement (not yet established). The 2008 agreement contains clause which commits the developer to have a 40,000 sf tenant in place prior to any rebates, and 80,000 sf in additional tenants within 5 years from date of Economic Incentive Agreement (a dated Ma 27,2008 under Ordinance 2008 -43) 39. Cobblestone Commons — Business district contemplated. 50% Sales Tax Rebate to payoff bonds. (agreement approved on August 26, 2008 under Ordinance 2008 -80, has not been recorded yet awaiting payment of fees.) LITIGATION COVERED BY IML INSURANCE U ANCE 40. Huss Litigation — There is a case against the city for damages to a contractor who had an excavation collapse on him during a water main break. He claims the water was not shut off quickly enough. Insurance is expected to cover any potential judgment. 41. Anderson Litigation — This is a case where a woman tripped and fell adjacent to a work site. Insurance is expected to cover any potential judgment. I 12/14/10 LIAISON REPORT NEIL DECEMBER BOARD MEETING Mr. Eric Weakly, NEIL Planning Staff member, had resigned and is now working at the Administration on Aging in Washington D.C. The Veterans Independence Project (VIP) that Mr. Weakly had been working on is doing very well. NEIL and its VIP grantees are in process of reviewing 26 veteran referrals. The Kendall County Transportation Service had received the Governor's Award e G e a d for Unique Achievement. LEGISLATIVE COMM., ITTEg REPORT: Drug recalls — The committee reviewed HR 5740 which would give the Food & Drug Administration increased authority to intervene when a manufacturer recalls a prescription drug or over -the- counter drug due to contamination, adulteration, 1 misbranding, or other significant quality problem. The ultimate tool would be authority to order an immediate recall if there is an immediate threat; which the FDA currently is not authorized to do. Social Security payback option — Retirees receiving Social Security have the option of stopping their benefits and paying back everything they have received, and then resuming the benefit either immediately or later at a higher rate. Few people are aware of this option, and even fewer exercise it due to the difficulty of repaying and the uncertainty of life expectancy. Most of those who use the payback option were either very unhappy in retirement and eager to return to work; or, had been highly paid and were recalled by their employers due to a unique skill. He added that Social Security had originally been a retirement benefit, but it had become an annuity when people were allowed to continue working without loss of benefits after reaching the full age of retirement. of staff time. The current payback option is another annuity characteristic. 2 The Social Security Administration was proposing to limit the option to once in a lifetime and only during the first year of receiving benefits. This proposal would be an administrative rule, not a congressional action. It was noted that the Social Security Administration used to have "public information officers" who helped the general public understand this complex program. This position had been eliminated, and there was a widespread confusion and misinformation about benefits, contributions, the program's long -term solvency, and other aspects of Social Security Poverty and income data The number of people of all ages in poverty had increased from 39.8 million in 2008 to 43.6 million in 2009, the third consecutive year of increase, and that the number of poverty in 2009 was the highest since the government began measuring poverty 51 years ago. 3 Waste and fraud in Medicare and Medicaid The House Energy & Commerce Committee's Health Subcommittee recently held a hearing on the effort to reduce waste, fraud, and abuse in Medicate and Medicaid programs, especially in home health and durable medical equipment. The Affordable Care Act increases funding and provides several new tools and resources to combat these costly problems. It was noted, the staff working on fraud detection and prevention is too small and often poorly trained, and that doctors and other providers who are trying to defraud the program quickly learn techniques such as multiple billings for the same procedure. They know how to keep their scams small enough to avoid detection. Many common practices are wasteful, although not fraudulent, such as buying new walkers and wheelchairs for every patient, rather than re -using them. 4 01 -11 LIAISON REPORT HOLIDAY MEALS ON WHEELS UPDATE • H2O10 Holiday and weekend delivered meals surpassed the i 21,562 meals delivered in 2009. Without including December statistics, 24,042 nutritious meals have been delivered on holidays and Saturdays to hungry seniors. With December still to report for some providers, we are certain to break the 2007 record of 24,532. • An additional $718 donation was received last month. • The first week of the New Year, the Agency received $325 in donations. A $100 donation was a result of the Suzette's Dine Around mailing. • SUZZETTE% DINEAROUND: On Thursday, January 27 ", patrons may pretend they are dining in France. Donna Hesik and Suzzette's staff are excited to host the first Dine Around meal. To date, 15 reservations have been received. Space is limited in this quaint intimate restaurant. If you would like to attend this 3- course sit down dinner, please call the Agency's Kim Robey at: (630) 293 -5990 to secure your reservation.