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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. y 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 SPECIAL CITY COUNCIL MEETING April 23, 2011 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: L um6t-(\ � k Gf4NCf 1 6. Y\ S o A- c--\ 4 Oro a n C.1 (L ST SIGNIN SPECIAL CITY COUNCIL MEETING April 23, 2011 PLEASE PRINT NAME: SUBDIVISION OR BUSINESS: �'/�,N�t'LC,�J� (�v,,���t ���Lv,cJ��� ( I S rRv� 1 d R 7 , A-7 i Do <OLGiu /CS D ONNA f� :6- �l Cc�la�illesa (G rcv? IESt C�Ir,' S HSOU C 016L4 1'e $ (9 t4wd✓fe ctVe ljcl�. 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