City Council Minutes 2011 04-23-11 special meeting MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL
OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY ILLINOIS
HELD IN THE GRANDE RESERVE ELEMENTARY SCHOOL CAFETERIA
3142 GRANDE TRAIL ON
SATURDAY, APRIL 23, 2011
Mayor Bard called the meeting to order at 9:05 a.m. and led the Council in the Pledge of Allegiance.
ROLL CALL
Clerk Milschewski called the roll.
Ward I Gilson Present
Werderich Absent
Ward IT Golinski Present
Plocher Absent
Ward III Munns Present (until 10:15)
Sutcliff Absent
Ward IV Teeling Present
Spears Present
Also present: City Clerk Milschewski and City Administrator Olson.
AMENDMENTS TO THE AGENDA
Mayor Bard entertained a motion to move the Citizen's Comments to after Business. So moved by
Alderman Golinski; seconded by Alderman Spears.
Motion approved unanim ously by a viva voce vote.
BUSINESS
Grande Reserve Subdivision Issues
Mayor Bard explained that she called the meeting so that the two current Ward IV aldermen and the
mayor -elect could hear the resident's concems without violating the Open Meetings Act. She turned the
floor over to Administrator Olson.
Administrator Olson explained that the subdivision is being controlled by a subsidiary of Bank of
America (BAC) and there is a management firm overseeing the Homeowner's Association (HOA). BAC
has been given the punchlist and asked to address sidewalks, street lights, the final lift on the roads, etc.
The reason that nothing is being done is that they do not want to outlay the money and unfortunately the
city does not have a mechanism in place to force them to comply. There are bonds and letters of credit
(LOC) in place for the north areas of the subdivision. These can be used to complete the work in those
areas. The central and south areas do not have bonds or LOC's but have an SSA. The city cannot call
bonds to get things done in these areas. As to the HOA, Administrator Olson explained that it is a civil
matter between the homeowners and BAC. The city has no enforcement authority over the HOA.
CITIZEN COMMENTS
Diane Jaskowski stated that the management company has increased their budget 25% for things other
than the pool such as a new pump for the waterfall and snow removal. She suggested the clubhouse be
closed since residents have to pay to use it anyway. Also, the common areas are not being maintained
like they said they would be.
Charlie Martin stated that the increase in the HOA was not a city problem. He felt the residents of
Grande Reserve needed to work together. Everyone received a letter about the increase and has thirty
days to respond. He noted that there is the potential for the residents to take over the HOA and he
questioned what was needed to do this.
Administrator Olson explained that mechanisms to take over the HOA are indicated in the covenants and
there are "trigger points" for when this can be done. He noted that Prairie Meadows' residents took over
their HOA early on. They staffed the board, made cuts, increased dues, etc. He also noted that the
developer of Windett Ridge asked the residents to take over their HOA when they declared bankruptcy.
John Kaufinan stated that he read through the covenants and they can take over the HOA in seven years
or when the subdivision is 75% complete whichever comes first. He stated the he did not see any
information on early take over.
James Weaver stated that in 2010 when MPI filed for foreclosure a group got together, developed a
budget and met with PSI (managing company for BAC). They asked them for their budget and bids and
The Minutes of the Special Meeting of the City Council — April 23 2011— page 2
were given them. He felt that the biggest problem with PSI is a lack of communication. He also felt that
even if the residents take over the HOA a management company will be needed.
Mayor Burd suggested that the Grande Reserve residents meet with the Raintree Village residents. They
took over their HOA from Lennar and are manning it themselves for one year in order to keep costs
down.
Charlie Martin asked if the city would tell the residents what needs to be done to take over the HOA.
Administrator Olson stated that certain infrastructure improvements may be needed such as gravel for
trails. The city can try and help as things come up.
Rey Borjas suggested residents take over the mowing themselves or hire local help to do it.
Michelle Johnson, Colonies of Grande Reserve, stated that she was having an attorney look over the HOA
to see what the residents can do. She noted that only twenty out of 90 planned home sites have been
completed. She stated that PSI violated the covenants by not meeting with residents. She explained that
she spoke with Mary at PSI who told her PSI does not have the ability to change anything; they are just
representing BAC.
Alderman Gilson asked if any of the residents has asked for the official punchlist from the city. None of
the residents had requested this.
Takashi Nelson noted that the HOA budget concerning the pool was prorated based on the lots in the
subdivision. BAC changed this to prorate it between the homes occupied in the subdivision so residents
are now paying BAC's portion. Administrator Olson stated that typically the ownership of the pool is
divided between each person who lives in the subdivision.
Lucas Kavlie stated that he is a law student and he feels the residents are "screwed ". He explained that at
any time they can impeach the board members of the HOA and install homeowners on it. However the
declarent appoints the board members and that is BAC. The board is also allowed to change its by -laws.
He stated he was writing a letter to BAC and asked the other residents if they wanted to add comments.
He felt it would be better to comment as a group. He read his draft letter to the group and invited
interested residents to sign it along with him.
Will Roehkel, McClellan Blvd., suggested the residents get a meeting together and put a structure
together for a formal presentation. This group could determine who will represent Grande Reserve.
Mrs. Jaskowski agreed the group needed legal representation. She stated that she contacted four attorneys
and only one was willing to take the case. The cost was $675.00 for three hours to review the paperwork,
explain available options to the residents and draft a letter to BAC. He did not want a group of clients but
rather just one point person to deal with. The point person would collect the money for his payment from
residents.
Peter Newton, an attorney and Grande Reserve resident stated that impeachment of the board is a good
idea but empty lots can vote. BAC has the quorum and majority vote. He felt there was no way to fight
back on the increased fees. He also commented on the residents taking over the HOA. He stated that this
may be a great idea but what happens if volunteers don't do the work; there is no enforcement. He felt
that a management company would be needed. He also wanted to know what BAC was doing to promote
sales. If more houses are sold the assessment for the HOA will be less. He stated that his law firm
represents banks and they do not want to have land. He noted that if no one pays the HOA the property
will deteriorate and then no one will buy the empty lots. Also, the pool was a big marketing ploy
however if it goes downhill who will be attracted by it. He felt that some people may not be able to
afford the increase and it may put more houses into foreclosure. He stated that the Grande Reserve
residents feel that BAC should contribute more.
Administrator Olson responded to Mr. Newton's question regarding what BAC was doing to market the
property. He stated that they have put new realtor signs up and were trying to get one developer to take
over the subdivision. In the Windett Ridge subdivision BAC has an obligation to pay the SSA which is
driving the price of the lots to zero. This may be the same case in Grande Reserve. BAC may be looking
to sell off lots in smaller portions as they do not want to be a developer.
Frank Vandy, Cryder Way, asked if the city had anything in place to keep the area safe. He explained
that there was a sales trailer on the lot next to his which was torn down and now there is a pile of debris
on the lot. Mayor Burd asked if he had reported this to the city and he stated he had not but had called the
The Minutes of the Special Meeting of the City Council — April 23 2011— pate 3
management company. Alderman Spears advised the residents to call her, Alderman Teeling or the city
to report problems like this. She explained that the code enforcement department can go out and view the
problem. The city can then demand that the property be cleaned up or the owner will be fined. She also
asked the residents to report weeds that are too tall. Mr. Vandy asked about the replacement of parkway
trees. Administrator Olson explained that the city has not accepted any part of the Grande Reserve
subdivision so the replacement of trees is the developer's responsibility. He further explained that the
city has a new policy that provides trees at a discounted price for residents to purchase and then the city
plants them
Alderman Gilson asked if any bonds were being held. Administrator Olson stated that they were for the
north section of the subdivision. There are no bonds in place for property south of the railroad tracks.
For this section, the Annexation Agreement let SSA funds be used instead of the developers posting
bonds.
Ed Tomse commented on the seed that was planted in the empty lots. He stated that the only one happy
about it are the blackbirds. Administrator Olson explained the new policy about planting empty lots with
a certain type of seed mix in an effort to avoid erosion. Alderman Spears stated that she surveyed
residents about plantings and most of them were strongly against the practice. Alderman Teelmg added
that the planting policy instructed that the empty lots be graded and leveled off before planting however
this appears not to have been done. There is debris still in lots that were planted.
Steve Sumko clarified that the city decided on the SSA and its use in 2004. He asked why there was no
liability for the city and why an SSA was allowed for one third of the development. Mayor Burd stated
that the developers wanted the SSA so they could offer the houses for less while being able to construct
the infrastructure needed for the subdivision. Mr. Sumko questioned if the subdivision could de- annex.
Mayor Burd pointed out what services the residents would lose if this occurred.
Lorraine Bellas asked what could be done if the HOA is not paid by a person who owns their house
outright? Administrator Olson explained that a lien could be placed on the property and this could lead to
foreclosure.
Frank Funari questioned why residents were getting hit with another sewer fee when the SSA was for the
sewers. He also commented that there are no sidewalks in the subdivision and no bus service making it
difficult for kids to get to school. Administrator Olson explained that there are two fees. One was to be
paid by the builder and is for the infrastructure for the entire development. The other is for the sewer line
to each home.
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Rolph Snobeck stated he was concerned with the increase in the assessment and felt that a lot of people
won't be able to afford it. He noted that residents are suffering from a "double whammy"; increased
property taxes and an increase to the HOA. He commented that BAC patched the road and he felt that
was the reason behind the increase in the HOA because BAC has to make up their deficit. He cautioned
that the residents should watch they wish for because they may have to "pony" up the money if they take
over the HOA themselves.
John Rowoldt asked if fines paid for by BAC could be funneled into the HOA. Mayor Burd explained
that they could not. He suggested that the city continue fining them for code violations on their lots.
Alderman Gilson encouraged residents to call the city and report violations. Administrator Olson added
that if residents were unsure of address to give city staffthe geographical for the lot.
There was a brief discussion about LOC's, sidewalks, suing BAC, etc.
ADJOURNMENT
Mayor Burd entertained a motion to adjourn the meeting. So moved by Alderman Teeling; seconded by
Alderman Spears.
Adjournment of the meeting was unanim ously approved by a viva voce vote.
Meeting adjourned at 10:45 a.m.
Minutes submitted by:
Jacquelyn Milschewski,
City Clerk City of Yorkville, Illinois
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