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City Council Minutes 2008 04-22-08 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL, OF THE UNITED CITY OF YORKVIL.LE. KENDALL COUNTY. ILLINOIS, HELD IN THE CITY COUNCIL CHAMBERS, 800 GAME FARM ROAD ON TUESDAY. APRIL 22.2008. Mayor Burd called the meeting to order at 7:04P.M and led the Council in the Pledge of Allegiance. I ROLL CALL Clerk Milschewski called the roll. Ward I Werderich Present Ward II Golinski Present Plocher Present (left at 11:20) Ward III Munns Present (arrived 7:25) Sutcliff Present I Ward IV Besco Present Spears Present Also present: City Clerk Milschewski, City Treasurer Powell, City Attorney Orr, City Administrator McLaughlin, Assistant City Administrator Olson, Finance Director Mika, Director of Public Works Dhuse, Police Chief Martin, Director of Park & Recreation Mogle, Community Development Director Miller and City Engineer Wywrot. OUORUM A quorum was established. 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 None. COMMITTEE MEETING DATES Public Works Committee 6:00 p.m., May 20, 2008 City Hall Conference Room Economic Development Committee 7:00 P.M., Thursday, May 1, 2008 City Hall Conference Room I Administration Committee 6:00 p.m., May 8, 2008 Yorkville Public Library Public Safety Committee 6:00 P.M., Thursday, April 24, 2008 City Hall Conference Room PRESENTATIONS Yorkville Green Committee Update Chuck Roberts, a member of the Yorkville Green Committee, addressed the City Council. He reported that the committee's next meeting would be on April 28, 2008 from 7:00 to 9:00 p.m. There will be two guest speakers; Nancy Wager, Senior Policy Advocate at the Environment Law and Policy Center and Megan Andrews, Resource Conservationist with the Kendall County Soil and Water Conservation District. The Giving Tree Band will also play from 6:00 to 7:00 p.m. There will be refreshments and a raffle of rain barrels. He further reported that the committee is working on the tree ordinance, water conservation and building standards. The committee will also be involved in a Fox River clean up on ( May 31, 2008 from Freeman's Sports to Silver Springs State Park. Alderman Sutcliff commented that the Kendall County Soil and Water Conservation District will be selling rain barrels at a reduced cost at the April 28, 2008 meeting. Alderman Besco asked if the committee was working with Director Miller in regards to the tree ordinance. Director Miller indicated that they were working with him as well as with Park Designer Laura Haake. i I i I The Minutes of the Regular Meeting of the Citv Council — ADril 22.2008 — Daze 2 i Club 47 Lease Presentation Director of Park and Recreation Mogle presented a PowerPoint presentation (see attached) on the Club 47 acquisition. Superintendent of Recreation Swithin gave an overview of programming including the effort to mesh current recreation classes with the centers current classes. I Former alderman Jason Leslie explained that he negotiated the financial aspects of the proposal. He stated that he tried for a month to uncover revenue sources but was unsuccessful. He discussed this with the owners of Club 47, the Walkers, and proposed a plan to use the business cash flow to finance the acquisition. The Walkers were open to this so an agreement was negotiated where the city would pay an upfront cost for long -term amenities and would lease the business. If the business model stays in play then the business will break even. The City had Speer Financial go over at the information and they confirmed this. Director Mogle concluded with the following: • This is an opportunity to acquire substantial programmable recreational space with a limited capital investment. • The opportunity comes with an established income stream to support the operations of the facility which makes itself sustaining. • The city does not have to build a facility at three times the cost with no immediate source of income and which could take years to come to fruition. • There is a generous amount of time in which to exercise the option to purchase. • The agreement locks in a lease payment and sale price through the term of the agreement. • The acquisition assures that the facility, which has a reputation of meeting recreational and fitness needs in Yorkville, will continue this service at an affordable price. j Swearing -in of Officer John F. Hunter Mayor Burd and Chief Martin swore in Officer John Hunter as a patrol officer. Chief Martin stated that Officer Hunter previously worked for Montgomery and has also worked for a local bank for eight years. He stated he was very happy to have him on the police force. i PUBLIC FORUM Club 47 Lease Don Burks, 421 Jackson, stated that he learned about the city's financial situation from the mayor and shortly afterward he heard a report that the city was considering the purchase of Club 47 for $4 million. In addition, he learned that the city recently purchased park property. He expressed his concern with the affordability of the facility and he felt that the city, county, YMCA and school district don't work together to use facilities to the best ability. He commented on the list provided by Director Mogle of communities that own and operate fitness centers and noted that many have park districts. He stated that he did not feel the proposed contract was in the best interest of the city and he asked if there had been a certified audit of Club 47's profits. He took exception to the following provisions of the contract: the $250,000.00 payoff for equipment upon the purchase of the business because the equipment is already 13 years old; the purchase price of the facility which will be $5.3 million in ten years because of the escalator and the upfront funds the city is to pay the Walkers. He felt that the contract favored the owners of the facility. He indicated that he had spoken to several business owners who also did not feel this was a positive for the city. Mark Johnson, 204 Georgeann, commented that the formation of a park district has been voted on at least three times in the past and it was not supported because people did not want to spend the money. He commented that if this is what people want, why weren't they lined up to join Club 47? He stated that he felt that government lacked common sense and has lost focus on doing what people basically need. He asked the City Council to use common sense. He also stated that he took exception to a comment made by the mayor stating that this is not a business venture. He commented that the purchase of Club 47 was a bauble or trinket for the city. He stated that he supported the venture only if it paid for itself however if he feels his taxes are paying for the facility he will be very vocal about it. He asked the City Council to take care of necessities and delay "wants" until the funds are available. Carol Baumgardt, 656 Red Tail Court, commented that she was the teacher for the Parks and Recreation Department's preschool and that she has taught at Beecher, Parkview and New Life Church because the program has been bounced around. She indicated that the preschool program shares its current location with other classes. Parents have indicated to her that they would like more programs however there is no room. She felt that this is a great opportunity to offer more programming to residents. She supported the purchase of Club 47. I The Minutes of the Regular Meeting of the Citv Council — Anril 22.2008 — nage 3 Fred Dollman commented that he felt the land was costing too much and suggested that less costly land be found elsewhere for a facility. He felt that the acquisition would cost the city in lost tax revenue and he stated he would like to see an alternative to this facility. George Gilson, 498 Sunflower Court, questioned if the city would break even. Director Mogle explained that the city would use the combined budget of the Parks and Recreation Department and Club 47. Mr. Gilson suggested that the city reconsider the $100,000.00 for capital improvements to the building but he stated that if this was a "break even" proposal he supported it. Brian Pross, 300 Walsh Circle, stated that he was not arguing the need for a facility but he was arguing the cost feasibility. He asked if a regression analysis was done because some existing Club 47 members may not renew. He asked what percentage of renewals were needed to sustain the project. He also asked if there was a way for the city to opt out of the agreement including different time frames for this. He indicated that if all the numbers work out he supported the acquisition. Mr. Leslie explained how a regression analysis was performed. He also reminded everyone that immediacy is the issue. A member of the audience questioned if a fee schedule had been worked out. Director Mogle stated that he and Ms. Swithin were working on this and he hesitated to go into details at this time however they were working on affordable packages. i Dale Woodworth, 508 E. Main, noted that he ran a s wimmin g pool in the city for twenty years and he felt stating that this will break even is going down a slippery slope. He stated that sometimes he broke even but often lost money. He was concern that the city was not rich but in debt. He questioned what the current cost of a Club 47 membership was and Mr. Walker indicated it was $59.00 /month based on a yearly commitment and family members get a reduced rate. Mr. Woodworth commented that the residents should be able to vote for a park district which will get tax dollars to use for amenities. i Mayor Burd commented that the facility will provide space to house recreation programs and it comes with an income. She stated that if it pays half the way it will be paying more than any other facility. She noted that other cities pay to rent space and that this will pay its own way. Tate Smock, 554 Red Horse Lane, asked the City Council to vote for Club 47. He indicated he participated in the basketball program for four years and he would like to see the program have a permanent home. He felt the city would benefit from the increased revenue from programs such as this. Mike Skinner, 1534 Walsh Drive, indicated that he is a ten year member of Club 47 and he wanted to know what it would cost him to maintain his membership. He also questioned if the quality of the programming would be maintained. Director Mogle stated he couldn't answer the question on the cost of the membership at this time. Ms. Swithin indicated that there will be two tiered membership rates; user based versus "gong ho" membership. There will also be a non - resident rate similar to the current membership rate. She further indicated that the Parks and Recreation Department was looking at fitness and wellness classes. Tammy Smock, 554 Red Horse Lane, a former Park Board member and Parks and Recreation Department instructor noted that the department used to have the use of Beecher Center. While she was happy it was being used as a senior center, she stated that the Parks and Recreation Department was told they would have to go elsewhere and rent space. She felt it was time for the Parks and Recreation Department to j have its own facility. She pointed out the buildings being used for progr such as the old post office, riverfront building and the various school locations. She questioned would happen if the school district finds itself in a budget crunch and they tam off the lights and shut the buildings. She felt that this was an investment in the future. Anne Engelhardt, 312 E. Blackberry Lane, noted that it was Earth Day, and the Club 47 building was being reused. She stated that she supports a business venture that supports itself financially and that this was an opportunity for progr for all ages. Robin Circle, stated that she used the YMCA and Parks and Recreation Department for programs and she felt that the Recreation Department worked well with the schools. She stated that her children have ridden their bikes to Club 47 and have been in the basketball program. She felt that the best thing anyone can do is protect kids and invest in their fixtures and families. She noted that there is not much for kids to do in Yorkville so people need all the facilities possible. Chris Rollins, Park Board President, asked when a dollar is not a dollar; when it is for recreation. He felt that when funds are spent for parks and recreation multiple dollars are returned. He stated that Speer I I The Minutes of the Regular Meeting of the Citv Council — Anril 22.2008 — ua t 44 Financial could have found ways that the city could lose money however their analysis indicated that it would be negligible for the city. He stated that he felt the Recreation Department will do better than what Speer estimates and that the citizens can be comfortable that the deal has been scrutinized and they will get something of value. I Debra Mueller, a fitness instructor for the Recreation Department for eighteen year, commented that space has always been a concern. She noted that her program has been at the Beecher Center, moved from school to school and even been cancelled because space was needed for other things. She stated that she felt this was a great opportunity because more programs could be offered in the larger space. i Marian Bazan, 3862 Cannonball Trail, stated she was the oldest participant at Club 47. She asked that if this is such a great opportunity and this is the first time citizens have been able to comment why is the vote for the purchase tonight. Director Mogle explained that staff had been working on this since July 2007. The matter was on an earlier agenda for a vote however the City Council asked for a public forum. Mrs. Bazan stated that she has heard comments from other residents that they didn't have a chance to address the Council in the matter earlier. Director Mogle explained the need for confidentiality early in the negotiations. I Don Burks suggested that the city renegotiate the amount paid for the equipment upon the purchase of the building because after depreciation, the equipment probably won't be worth anything. He also suggested polling current Club 47 members as to if they will stay after the purchase. He indicated that he has heard from some who stated they will leave_ He felt the poll could gage business. He commented that this will be an added expense to the city at a time when he budget is in a shortfall, the Police Department is cutting their budget and road repairs are being "whittled" down. He felt that things are "being squeezed down" except the Parks and Recreation Department. He commented that a park district would allow for funds to be kept separate. j i Mayor Burd explained the $400,000.00 reduction to the Police Department budget and indicated that the Parks and Recreation Department reduced their budget by $70,000.00. She also explained that the In- Town Road Program has been put on hold however needed repairs to McHugh Road and Palmer Court will proceed. She stated that when she became aware of the budget deficit she asked for cuts from all the departments. All department line items were reduced with the Police Department items being reduced the most. She also explained that a hiring freeze has been put in place unless replacements are needed and $2.6 million will be taken out of the Revenue Fund, which is saved for "rainy days" such as the short fall. I Mark Johnson stated that the City Council was elected to take care of business; residents don't have the right to vote. He noted that several speakers tonight have been instructors, employees, Park Board members, etc. and very "pro" recreation. He felt the problem was with pro grammin g and the fact that the previous administration "gave away" the Beecher Center. He noted that the Beecher Center was built as a community building not a senior center to be used by seniors from several counties. i George Gilson felt that the City Council was listening to both sides. He also felt that this was a "win -win' situation; it will pay for itself and get kids off the street. i Kristin Carrington, 27 Timberview Lane, stated that she was a life time resident, Club 47 member and Recreation Department user. She supported the acquisition and trusts the City Council, Park Board and the Walkers. She felt it was zero cost to the city, will benefit children and will keep dollars in Yorkville. Another member of the audience indicated that he was a fifteen year resident and five year member of Club 47. He stated that he was involved in the Silver Sneakers program where his insurance pays his membership fees. He asked if this would transfer to the city. Ms. Swithin stated she had been discussing the program with the Walkers and that she was still learning about the insurance program. She stated that she wanted to get into the facility without "upsetting the basket ". She indicated that the current memberships will remain however new waivers will be needed. He then asked what part of the fees would go toward the city. Ron Walker, owner of Club 47, explained that the city was getting the Club 47 business which includes prepaid fees and $4 million worth of land and building. The city was asked for $100,000.00 for capital improvements, earnest money or option money. Mr. Leslie suggested using the option money to make improvements however if the city does not warn this he was willing to have "it go away ". Tim Johnson, 213 Leisure Street, asked for more activities for small children. He commented that better marketing needs to be done for the programming. He also felt the public needed more time to digest the acquisition and suggested that the matter be tabled. Mayor Burd stated that the matter has already been tabled three times and the public was informed in the newspapers one and a half month ago. The Minutes of the Regular Meeting of the Citv Council — Anri122. 2008 — nage 5 Steve Barczi, 624 White Oak Way, commented that the cart was before the horse because the numbers haven't been crunched. He asked if any fees have been presented to the aldermen and Director Mogle indicated that the focus has been on the lease and purchase. He stated that the Recreation Department was "days away" from releasing program costs. Mr. Barczi stated that the numbers should be made available to the public to see the response. I Mr. Rollins noted that this has gone under more public scrutiny than any other building. He felt that things were being brought up that should not be discussed at a meeting. He stated that Mr. Walker has been very accommodating and there was no requirement for full disclosure. Bob Loftus questioned if the city was leasing the business with an option to purchase it or if it was leasing the business and the buildings. He stated that if the city is only leasing the business it will still be in the same situation it is in currently. Mayor Burd commented that the city was hoping to buy the building. There were no further comments or questions. PUBLIC HEARINGS None. CITIZEN COMMENTS None. i CONSENT AGENDA 1. Ordinance 2008 -25 - Amending City Code to Add Additional Class A -1: Retail Tavern/Bar I License - authorize Mayor and City Clerk to execute (PS 2008 -04) 2. Ordinance 2008 -26 - Amending City Code to Add Additional Class G: Beer Garden/Patio j License - authorize Mayor and City Clerk to execute (PS 2008 -13) 3. Bid Results for Grande Reserve Shared -Use Path Improvements - award contract to DeKalb Paving, Inc. in an amount not to exceed $62,887.50 (PW 2008 -59) 4. Fox River Dam — Plat of Easement - authorize Mayor and City Clerk to execute (PW 2008 -60) 5. Resolution 2008 -14 - IDOT Highway Permit and Resolution — Yorkville Animal Care Center - authorize Mayor and City Clerk to execute (PW 2008 -61) 6. Resolution 2008 -15 - MFT Appropriation Resolution — 2008 Crack Filling Project - authorize City Clerk to execute (PW 2008 -62) 7. AT &T Easement at Grande Reserve Regional Park - authorize Mayor to execute (PW 2008 -63) 8. Yorkville Market Square — Letter of Credit Expirations - authorize City Clerk to call letters of credit if they are not renewed by June 13, 2008 (PW 2008 -64) 9. Bristol Bay Unit 9 — Bond Reduction 41 - authorize reduction in an amount not to exceed $605,445.82, subject to verification that the developer has no outstanding debt owed to city (PW 2008 -65) 10. Bristol Bay Unit 11 — Bond Reduction #1 - authorize reduction in an amount not to exceed 11. $652,612 27, subject to verification that the developer has no outstanding debt owed to city (PW 2008 -66) 12. Monthly Treasurer's Report for February 2008 (ADM 2008 -25) 13. Amended and Restated Governing Ordinance - authorize Mayor and City Clerk to execute (ADM 2008 -28) 14. Ordinance 2008 -27 - Amending City Code Regarding Plan Commission Appointments - authorize Mayor and City Clerk to execute (ADM 2008 -29) Mayor Burd entertained a motion to approve the Consent Agenda as presented. So moved by Alderman Munn s;seconded by Alderman Werderich. I Motion approved by a roll call vote. Ayes -6 Nays-0 Munns -aye, Plocher -aye, Spears -aye, Sutcliff-aye, Werderich -aye, Besco -aye i * Alderman Golinski was not present for the vote. PLAN COMMISSION /ZONING BOARD OF APPEAL Director Miller reported that the next Plan Commission meeting was scheduled for May 14, 2008 at 7:00 p.m. MINUTES FOR APPROVAL A motion was made by Alderman Munns to approve the minutes of the City Council meeting of March 25, 2008; seconded by Alderman Spears. I I The Minutes of the Regular Meeting of the Citv Council — Auril 22.2008 — uagL6 Motion approved by a viva voce vote. BILLS FOR APPROVAL A motion was made by Alderman Munns to approve the paying of the bills listed on the Detailed Board Report dated April 17, 2008 totaling the following amounts: checks in the amount of $1,109,893.74 (vendors); $252,384.24 (payroll period ending 4/12/08); for a total of $1,362,277.98; seconded by Alderman Besco. Alderman Spears questioned the following items from the bill list: • Page 1, Action Graphix - admin sign - in the amount of $54.58. Director Mika stated she was not sure what the sign was for and she would have to pull the bill to verify it. • Page 12, Jewel — comm. /dev — cookies, brownies, etc. — in the amount of $67.40. Director Miller indicated that this was the bill for the refreshments served at the Comprehensive Plan Advisory meeting. • Page 22, Plainfield Signs — Municipal Bldg — 6 Welcome to Yorkville signs — in the amount of $257.10. Director Dhuse indicated that this was for the signs changing the mayor's name. • Page 24, Glory Spies — Admin — Invitations — in the amount of $34.03. Director Mika explained that this was for the invitations for Volunteer Appreciation Day. Alderman Spears asked if the invitations could have been produced in- house. Mayor Burd stated that staff does not have the time to produce the invitations themselves. • Page 27, Waubonsee Community College — Admin — public access TV — in the amount of $72.00. Alderman Spears asked who took the class. Director Mika stated that she would have to look at the bill to see which employee took the class. Alderman Munns asked if this training was part of the city belonging to the cable consortium. Alderman Golinski stated that the city pays for people to learn how to film City Council meetings. Alderman Spears asked that the bill be taken off the list until the Council was told who took the class. • Page 29, Yorkville General Fund — comm/dev and admin - in a total amount of $219.04. She questioned why office suppliers where being taken out of the General Fund, Director Mika explained that this was not the best choice for the invoice description and that the Community Development and Administration Departments are charged for the supplies they use., Alderman Spears commented that the General Fund keeps getting lower. I Mayor Burd clarified that the Council wanted the Waubonsee Community College bill removed from the bill list. Alderman Golinski stated that the city should only pay for the class if it someone was going to tape the City Council meetings. He noted that the city has previously paid for the class and he hasn't seen anyone different taping the meetings. Director Mika produced the bill and indicated that a part-time Community Relations employee took the class. Alderman Munns questioned who approved her to take the class and Mayor Burd stated that the department head signed the approval so the city should pay for the class. Alderman Munns asked who the department head was and Mayor Burd indicated it was Mrs. Spies. He asked why she wasn't present at the meeting and Mayor Burd stated that she told her to go home. Alderman Spears asked if the city paid for classed for part-time employees. Superintendent of Recreation Swithin explained that employees can take the class in order to be able to use the equipment at events such as 'Music Under the Stars ". Mayor Burd polled the Council to see if there was a consensus to remove the bill from the bill list. It was the consensus of the Council to leave the bill on the list. Motion approved by a roll call vote. Ayes -5 Nays -2 Munns -aye, Plocher -aye, Spears -nay, Sutcliff -aye, Werderich -aye, Besco nay, Golinski -aye COMMITTEE REPORTS ECONOMIC DEVELOPMENT COMMITTEE REPORT Ordinance 2008 -28 Authorizing the Acquisitions of 202 E. Countryside Parkway (EDC 2007 -24) A motion was made by Alderman Golinski to approve an ordinance approving the acquisition of 202 E. Countryside Parkway, as presented, and authorize Mayor and City Clerk to execute; seconded by Alderman Plocher. Alderman Besco stated he was very critical of the purchase. He questioned what would happen if after leasing the facility for ten years the city would not have the funds to purchase. He stated that he requested an audit of the businesses books but he still has not seen one. He questioned who would be I The Minutes of the Regular Meeting of the Citv Council — A - oril 22, 2008 — nag responsible for the property taxes. Mayor Burd explained that the building would not be off the tax roll until the city purchased it. Alderman Besco stated that several years ago he suggested that the city move toward forming a park district. He suggested a merger with the Fox Valley Park District or forming a district with Plano. He also spoke with a builder who indicated that he could build the city a building without a pool for about $1 million. He stated that he understood the need for more space and thought it was nice to have a vision however it was the Council's job to control essential functions. He felt that services like the Police Department came first. He felt that if the economy was better it would be easier to support this. Alderman Sutcliff stated that she appreciated the public who attended the forum and that the best situation for the city would be if someone donated a building. She indicated that the Walker's have been patient with the city. She indicated she would make her judgment on what is best for Yorkville. She noted that both Chief Martin and Director Dhuse reassured her that the streets would be safe and repaired even with their departments' budget cuts. Alderman Munns questioned if the city could opt out of the contract at anytime. Director Mogle explained that the term is ten years. Mr. Walker indicated he would agree to a five year commitment. Alderman Munns questioned that if after twenty -four months the city realizes this won't work would the city still have to lease for three moire years. He also noted that he was made aware that the roof is leaking. Director Mogle stated that the Walkers are responsible for the roof and pool equipment such as filtration lines. Alderman Munns questioned the need for additional staff and Director Mogle stated that the city would inherit the Club 47 staff which consists of one full-time employee and several part-time employees. Alderman Munns noted the pros to the acquisition; provides space that is needed, quality of life for residents, etc. Likewise he noted the cons; older building, not best location — prime real estate area, if purchased the property comes off the tax rolls, etc. He commented that if this fails, the funds should come out of the Parks and Recreation Department budget. Alderman Spears questioned the $100,000.00 capital improvement payment and the $100,000.00 termination fee. She felt this was a great risk for the city to take because with the current economy families can not afford items such as a membership. She felt that breaking even was not good enough for the city. She expressed her concern with the acquisition since the Police Department has cut its budget, the In -Town Road Program has been tabled and KenCom is in need of assistance with funding. She felt the acquisition would be a burden on the taxpayers. She asked Mr. Leslie what he thought was the value of the property. He stated that it was appraised at $3,900,900.00. Alderman Spears stated that the existing equipment was old so the city will have to replace it. She questioned where this equipment would be stored if the facility isn't purchased. She also commented that several Club 47 members contacted her and indicated they would cancel their memberships if the city acquired the business. She stated that the city cannot assume that all 5000 households in Yorkville will want to use the facility. She was concerned with not knowing what the proposed fees were and that the Council would be voting without all the information. She thanked Director Mogle and Superintendent of Recreation Swithin for their efforts and the public for attending the forum. She noted she requested the forum and also asked for a referendum regarding the acquisition. She stated those elected needed to be safe with the taxpayers' dollars so she was recommending that the matter be tabled until more revenues came in. She stated that if funds were available, she would support the expansion of recreational progr Alderman Plocher stated he would like to see someone build a facility for $1 million. He felt that Superintendent of Recreation Swithin has never let the city down and he asked if she had a proposed budget. Ms. Swithin stated that the proposed budget shows a self - supporting project and she indicated that she would give the project her best efforts however there were no guarantees. Alderman Plocher stated that this was a quality of life matter and the city could provide simple pleasures for the residents at no cost to anyone. Alderman Werderich thanked everyone in attendance and the City Council for allowing a public forum. He stated that his first reaction was how the city would pay for the facility. He felt the best people were put on the project, Alderman Golinski and former Alderman Leslie, and they put together something viable for the city. The benefits are that the city gets into the game with something the community wants. He felt the lease with purchase to buy was good. He noted that the facility was located on prime real estate location so the city could sell the facility in the firture in order to fund another facility. He felt that if the operation does not break even the city could walk away. He commended everyone who worked on the negotiations. Alderman Golinski commented that it was a pleasure to work with former Alderman Leslie. He stated that he had looked at the acquisition from many angles and he was confident that the facility will not be a burden to the taxpayers. The Minutes of the Regular Meeting of the Citv Council — Anril 22.2008 — naLye 8 Alderman Besco challenged Director Mogle and Superintendent of Recreation Swithin to prove him wrong however he did not support the acquisition. Alderman Muni stated he was still worried about the term of the agreement and that he would prefer to see a shorter term. Mayor Burd commented that the longer term gives the city time to go for a referendum. i Alderman Spears questioned that if the acquisition is approved could the city still go for a referendum. Attorney Orr stated that it depended on how the facility will be financed; if bonds are to be used a referendum will be needed. Alderman Werderich stated that if the city purchases the building a referendum would allow people to vote on it. Alderman Golinski thanked the Walkers for their patience wit the negotiations. Motion approved by a roll call vote. Ayes -6 Nays -2 Besco -nay, Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye, Werderich -aye, Golinski -aye, Burd -aye The City Council decided to take at 10:10 p.m. The Council returned to the meeting at 10:30 p.m. REPORTS MAYOR'S REPORT Resolution 2008 -16 Support for the Yorkville Big Band (CC 2008 -28) Mayor Burd asked that this item be moved up on the agenda. She stated that she brought this forward because there have been "ups and downs" in discussing the Yorkville Big Band. She wanted them to know what the members of the City Council's thoughts were so a resolution was drafted so the Council members could voice their opinion. Mayor Burd entertained a motion to approve a Resolution of Support for the Yorkville Big Band and authorize Mayor and City Clerk to execute. So moved by Alderman Plocher; seconded by Alderman Sutcliff. Alderman Besco commented that there were misunderstandings and misstatements made regarding the Yorkville Big Band. He stated that the last time the director was before the Council, he was asked if he had obtained tax exempt status and he said that he did. Later, Alderman Besco read in the paper that the band was in the process of obtaining this status. Mayor Burd clarified that as of January 2008 they received this status. Alderman Besco stated that it was unfortunate that everything happened the way that it id. He found it disturbing and deceptive to the entire city someone misrepresents themselves. He stated that he did not know what a resolution would do at this point to change anything. Mayor Burd explained that they incorporated as a business but anyone looking at what they were doing could understand they were non - for - profit. She noted that the Boys Scouts of America in some areas had accidently incorporated as a business and had to change their paperwork. She stated that if a little discretion was used in looking at what they were doing one would see that they have not changed and are eligible to be called a non - for - profit. Alderman Besco pointed that they are at this time however they were not when they initially came before the Council. He stated the problem was that they knew whether or not they were non - for - profit. Mayor Burd wanted to know the benefit behind Alderman Besco's remarks and the benefit behind having this organization in the community. She asked if what they did should disallow them from being in Yorkville. Alderman Besco stated that he was not questioning their benefit to the community but when someone represents themselves before a public entity they should be truthful. He stated that United City of Yorkville is a taxing body who performs services for residents and business. When they came before the Council, different pricing for the Beecher Center was applied due to the non - for -profit status. He noted that the Beecher Center is in great demand; if a private business came in, they would have paid a different rate to use the facility. He stated that he wasn't trying to place blame but felt it was unfortunate that the situation went the way it did. He did not feel a resolution would solve anything. The Minutes of the Regular Meeting of the Citv Council — April 22. 2008 — ua g 99 Alderman Sutcliff commented that she supported the band and was glad they were in attendance at the meeting. She commended them for the service they provide to the community. Alderman Munns commented that music makes people happy in a world filled with negatives. He did not feel the resolution was a bad thing. Alderman Spears stated that she had nothing against the band itself however she did not like how they represented themselves regarding their non - for -profit status. She noted that she had a letter dated January 25, 2008 from the Yorkville Big Band to the City Council in which the band offered to perform free on July 4, 2008. The letter goes on to offer a second free performance which "could be" and gives possible dates. Alderman Spears took exception with this wording and felt it should state "will be ". Mayor Burd noted that these terms were already voted on and could not be brought back up. Alderman Spears stated that it was voted on to accept two free concerts. She read a statement saying that they `would like to clear the air so those involved in the city government can get back to their elected positions and solve some of the major current critical issues of the city and put the band issue to rest ". Alderman Spears stated that she agreed with this until she read another article in the Beacon News quoting the mayor as saying she looked at this "as a blot on my administration so far ". The same article indicated that the band director, Mr. Falato, offered to pay the city its rental fee out of his own pocket. Alderman Spears stated that she never heard this from him directly and she asked Administrator McLaughlin if he received such an offer. Administrator McLaughlin stated that he never had a conversation with Mr. Falato. Alderman Spears noted that the band used to be called the American Legion Band and she was told the name was changed because the Paramount Theater would not let them perform at their facility. She asked if this was true. Alderman Spears stated that changing the name of the band was an insult to the entire country as well as the armed forces. Mayor Burd stated that Alderman Spears should not be asking questions but should be commenting on the resolution. She asked the Council not to talk or "bait" the audience. Alderman Plocher stated that he was not in favor of having the City Attorney draft a legal document regarding the receipt of money. Alderman Werderich stated that there was confusion in the non - for -profit versus profit status. He felt that Mr. Falato didn't go into the venture to make money but because he loves music. Alderman Golinski, as a point of order, read from the Governing Ordinance regarding aldermen being recognized by the presiding officer and addressing their remarks without a response from the presiding officer. He noted that Mayor Burd had the tendency to "chime in" after every alderman speaks and according to the Governing Ordinance she wrote that is not allowed. In regards to the Yorkville Big Band, he felt it was aggravating to have it come up again. He supported the band however Alderman Spears has brought up legitimate concerns on behalf of the taxpayers. He did not have a problem with the resolution supporting them but he did feel they had an unsettled debt to pay. Mayor Burd called a point of order on Alderman Golinski because he addressed the audience and he should have addressed her. She explained that she brought forward the resolution because there was concern that the band felt they were not getting moral support from the City Council and the community. She felt it was an honor for them to have Yorkville in their name. She explained that all the resolution states is that they provided the city with exceptional music and that they are emissaries of good well for the United City of Yorkville. She stated that she did not know how sullying their name helped the community. She wanted the band to understand that the city supports having them in the community. She noted that the Council approved the agreement with them and she did not know why this was misunderstood. Administrator McLaughlin stated that he thought the Council took final action on the agreement which included two free concerts. On date was July 4, 2008 and the second date was undeclared however it was offered to play at Christmas. Mayor Burd reminded the Council that the Resolution of Support was on the table and the agreement had been previously voted on and that issue is over with. She felt it was unfortunate that the bands reputation was besmirched. Alderman Besco stated it was unfortunate that it was felt that Alderman Spears has "black balled" the band. He thought that when the Council acted on the agreement the matter was done and over; the issue was solved. He didn't know what the point of the resolution was. Alderman Spears noted that with the recent publicity with a local business being black balled by an alderman this could be coming to the Council to make another business more popular. She did not understand the need for the resolution and felt it was ridiculous. The Minutes of the Regular Meetine of the Citv Council — ADril 22, 2008 — Dage 10 Alderman Sutcliff called the question. There was no second. Motion approved by a roll call vote. Ayes -5 Nays -2 Besco -nay, Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye, Werderich -aye, Golinski -aye ADDITIONAL COMMITTEE REPORTS PUBLIC WORKS COMMITTEE REPORT Resolution 2008 -17 IDOT Highway Permit No. 2 and Resolution — Raging Waves (PW 2008 -67) Alderman Besco asked that this item be moved up because there was a gentleman in the audience who had been waiting all night for this one issue. A motion was made by Alderman Besco to approve IDOT Highway Permit #2 and resolution for Raging Waves and authorize Mayor and City Clerk to execute; seconded by Alderman Golinski. Motion approved by a roll call vote. Ayes -6 Nays -1 Sutcliff -aye, Munns -aye, Spears -aye, Plocher -nay, Werderich -aye, Golinski -aye, Besco -aye REPORTS MAYOR'S REPORT, CONTINUED Federal and State Lobbying Contract (CC 2008 -25) Mayor Burd stated that she asked for this to be placed on the agenda because while she was in Springfield, Illinois she was introduced to this gentleman and he asked if he could present a proposal to the city. She and Administrator McLaughlin met with him and an associate where he made her aware that there is money available through the state for filling potholes and he can help with available grants. Mayor Burd entertained a motion to approve a proposal from Dan Shoman, Inc to provide lobbying services as presented. So moved by Alderman Sutcliff; seconded by Alderman Plocher. Alderman Golinski stated that he had a problem with the proposal because Mr. Shoman was recently in the news because Aurora aldermen aren't really convinced of his work; they do not know what they are getting for their money. He also had a problem using tax dollars to buy access to elected officials. He read a quote from Senator Lauzen regarding Kane County and Aurora hiring lobbyist and his feelings against it. Senator Lauzen felt it was preposterous and wrong and Alderman Golinski stated he agreed with him. Alderman Werderich had a problem with law makers suggesting that a lobbyist be hired to get what everyone is entitled to. He did not support the proposal. Alderman Besco stated felt that lobbyist are what is wrong with government and he agreed with Senator Lauzen's statement. Alderman Munns disagreed with paying someone to talk to the people that were elected to serve the public. He felt they should have an open door to speak with residents and he agreed that lobbying was a bad system. He questioned that if Mr. Shoman was hired if staff could go along with him to learn. Alderman Spears stated she was not in favor of the proposal and asked where Mr. Shoman's office was located. Administrator McLaughlin stated he was located out of Chicago and Springfield. Alderman Werderich asked if staff could lobby for the city. Mayor Burd stated that the lobbyist are in Springfield all the time and staff doesn't have the capability to lobby all the time and they don't have contacts in Springfield. Alderman Sutcliff stated that she knows two lobbyist and they do good things. Someone in this position knows what is going on with things such as grants. Alderman Plocher stated that hiring a lobbyist should be looked into. The Minutes of the Regular Meetine of the Citv Council — ADril 22, 2008 — pa 11 Motion denied by a roll call vote. Ayes -3 Nays -4 Spears -nay, Plocher -aye, Werderich -nay, Golinski -nay, Besco -nay, Sutcliff -aye, Munns -aye Appointment to Zoning Board of Appeals (CC 2008 -26) Mayor Burd entertained a motion to appoint Samuel M. Clementz to the Zoning Board of Appeals. So moved by Alderman Munns; seconded by Alderman Werderich, Alderman Spears asked how many people applied and Mayor Burd stated only one. She explained that Mr. Clementz was new to the city and lived in the Bristol Bay area. Motion approved by a roll call vote. Ayes -7 Nays -0 Plocher -aye, Werderich -aye, Golinski -aye, Besco -aye, Sutcliff- -aye, Munns -aye, Spears -aye Resolution 2008 -18 Supporting Application/Inclusion in Illinois Transportation Enhancement Program (CC 2008 -27) Mayor Burd explained that this is a grant being prepared for a bike /pedestrian path that would run from Van Emmon Road to the Raintree Village subdivision along the ComEd easement. Mayor Burd entertained a motion a resolution supporting application/inclusion in the Illinois Transportation Enhancement Program as presented, and authorize Mayor and City Clerk to execute. So moved by Alderman Golinski; seconded by Alderman Besco, Alderman Spears noted that the city would have to pay 20% or $572,100.00 if the grant is received. She questioned where the money will be coming from. Director Mogle explained that from the time the application is processed and the funds are received can take a few years so it gives the city time to put funds in place. Alderman Spears noted that the way the grant works is that the city would have to upfront the funds and then is reimbursed later. She indicated that she would like better information before voting on the resolution. Mayor Burd indicated that the grant is due by May 5, 2008. She indicated that the city could always turn the grant down and Alderman Spears stated that turning a grant down does not look good for the city. Alderman Sutcliff stated that people want paths and there is time to plan for funding. Alderman Besco recommended that a revenue stream be identified first before grants are applied for. He suggested revenues from Club 47 could be applied to this. Alderman Golinski asked what the time frame is if the city is awarded the grant. Director Mogle stated that the city applied for a grant for the path over a year ago but it still hasn't been awarded. He stated that the city could apply for the grant and have the funding in place when the grant begins. He also noted that the city applied for this grant in 2005 but it was denied because the city did not have signoffs from ComEd and IDOT. i Administrator McLaughlin stated that if 80% of the funding would be received this would be over $2 million from the state. He stated that a series of option such as a short term loan could be investigated to fund the match. He stated that there is almost $2 million in the Capital Fund which could be used toward this project as well as Land Cash. There was some discussion regarding the material used for the path. Alderman Besco suggested using crushed limestone instead of asphalt for a "greener" path. Motion approved by a roll call vote. Ayes -6 Nays -1 Werderich -aye, Golinski -aye, Besco -aye, Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye Ordinance 2008 -30 Approving the 2008 -2009 Fiscal Budget (ADM 2008 -11) Mayor Burd entertained a motion to approve an ordinance approving the 2008 -2009 Fiscal Budget for the United City of Yorkville and authorize Mayor and City Clerk to execute. So moved by Alderman Munns; seconded by Alderman Plocher. Alderman Besco asked if any changes were made to the Community Relations budget. Administrator McLaughlin stated that he did not receive direction from the City Council to change anything. Alderman Besco stated that prior to this year funds for this department came out of the General Fund so there was no way to track what was spent in this department. He felt it was difficult to determine if cuts were taken The Minutes of the Regular Meeting of the Citv Council — Anril 22, 2008 — na 12 in this area or if there has been an increase in this budget. He suggested that in the future any new departments should have their own line item. Alderman Munns noted that each department head came in with a lower budget than requested. He asked if they were comfortable with this and Director Mika stated that they were comfortable with the budget as presented. Alderman Spears stated that she did ask for funds to be cut from the Community Relations and Administrator McLaughlin stated that he was aware of this however there wasn't a consensus from the Council as to what direction to give the staff. Motion approved by a roll call vote. Ayes -6 Nays -1 Gohnski -aye, Besco -aye, Sutcliff -aye, Munns -aye, Spears -nay, Plocher -aye, Werderich -aye ADDITIONAL BUSINESS Alderman Plocher apologized for recent comments he made about a local business. He recognized they were inappropriate and that there was a better way for him to state his personal opinions. Clerk Milschewski called it to Mayor Burd's attention that she skipped over most of page three of the agenda. CITY COUNCIL REPORT No report. ATTORNEY'S REPORT No report. CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT No report. CITY ADMINISTATOR'S REPORT No report. FINANCE DIRECTOR'S REPORT No report. DIRECTOR OF PUBLIC WORKS REPORT No report. CHIEF OF POLICE'S REPORT Chief Martin reported that the open job position was offered to Yorkville's first former police cadet Behr Pfizenmaier who is currently employed by the Sheriff's Department. He should be on the street in two weeks and Chief Martin indicated that he was pleased to see Officer Pfizenmaier join the force. He thanked Alderman Spears for supporting the cadet program. DIRECTOR OF PARKS & RECREATION'S REPORT No report. COMMUNITY DEVELOPMENT DIRECTOR REPORT No report. COMMUNITY RELATIONS OFFICER'S REPORT No report. COMMUNITY & LIAISON REPORT No report. COMMITTEE REPORTS I 1 The Minutes of the Regular Meeting of the Citv Council — Anril 22.2008 — nape 12 PUBLIC SAFETY COMMITTEE REPORT No report. ADMINISTRATION COMMITTEE REPORT No report. i MORE ADDITIONAL BUSINESS Countryside TIF Alderman Spears asked the status of the Countryside TIF. Attorney Orr stated that the redevelopment agreement ha to be performed by March 31, 2008. This did not occur so she sent them a default letter and they came in today with a new development scheme that is under review. She hoped this would go before the Economic Development Committee at their June meeting. Yorkville Youth Baseball Alderman Spears asked Director Mogle if parents were paying $10.00 /child to participate in the program. Director Mogle stated that this was requested by the Parks and Recreation Department however no agreement was reached. Alderman Spears asked how fields were being assigned and Director Mogle explained that they decided on the fields to be used and the schedule for use. Alderman Spears stated she was told that a permit was needed to use a field. Director Mogle stated that these signs were removed. Congratulations to Oswego Alderman Besco congratulated Oswego on their 175 anniversary. He suggested that the United City of Yorkville send something to them in recognition. Fasted Growing Area in Country Alderman Besco commented on a recent article in the municipal leagues magazine which stated that Kendall County is the fasted growing area in the country and it has been so for the last seven years. Northeastern Illinois Area Agency on Aging Alderman Golinski reported that he and Alderman Spears attended the Northeastern Illinois Area Agency on Aging where Alderman Spears was honored and elected to their board of directors. Minutes Alderman Sutcliff complimented Clerk Milschewski for getting the minutes back in a timely basis. The City Council thanked her work. EXECUTIVE SESSION Mayor Burd entertained a motion to go into executive session for the purpose of the appointment, employment, compensation, discipline, performance or dismissal of specific employees of the public body or legal counsel for the public body, including hearing testimony on a complaint lodged against an employee of the public body or against legal counsel for the public body to determine its validity. Mayor Burd noted that no action would result from the executive session. So moved by Alderman Sutcliff, seconded by Alderman Werderich. i Motion approved by a roll call vote. Ayes -5 Nays -1 Spears -aye, Sutcliff-aye, Werderich -aye, Besco -aye, Golinski -nay, Munns -aye The Council entered into the session at 11:30 p.m. The Council returned to regular session at 11:40 p.m. ADJOURNMENT Mayor Burd entertained a motion to adjourn. So moved by Alderman Munns; seconded by Alderman Sutcliff. Motion unanim ously approved by a viva voce vote. Meeting adjourned at 11:41 P.M. Minutes submitted by: Jacque yn Milsc ewski, City Clerk City of Yorkville, Illinois i CITY COUNCIL MEETING APRIL 22, 2008 PLEASE PRINT NAME: ADDRESS: �0 �I���� e A,, k, ) i� 1. ZA (t fi �t I r ,� �� �� 1 SIGNIN CITY COUNCIL MEETING APRIL 22, 2008 PLEASE PRINT NAME: ADDRESS: iWW 4 - 1 d k;eP AD ie��57 6 r v� r. , 3 Aosle F,- 4qvm J))'-. V s ir I // Ile, U 1:7� ��r1( ?wbN 01 lk— j Loy -� (it4+ Q- K.kzlZ I I (,n OCLYYI C7Ye— _ _ L-u 4 A Z --7 SIGNIN CITY COUNCIL MEETING APRIL 22, 2008 PLEASE PRINT NAME: ADDRESS: - ,- ,0 Ae / lt,4- IF I � r2CD Sel 478 Wcu-1 XY6 6075WOO PR, ca" G C /�J .�ic- t c% ��J , �i•�Cvi //e nh e C ► s C►� n/ K)6 B O WL �gc x " y ` SIG IN CITY COUNCIL MEETING APRIL 22, 2008 PLEASE PRINT NAME: ADDRESS: 1 I i1�i �Cfrri r� .7 c'17 / rl r 75 li V 97 Aq v-yE) Ae � / t c:i �Sz. K1� �E�Sn �J �`l� 'i►ru'►3ER C�/�i�5 vSZ v f � ' /(/Ilk � /aw& w Dk. r SIGNIN REC Center YORKVILLE PARKS & RECREATION DEPARTMENT a jt Parks and Recreation Department Mission /Vision Statement and Goals... C', ` "To create unique recreational and park experiences that enrich lives and create a sense of community ". Vision statement from City Council... "expanding the park system and recreational programs to support community growth ". 2004 Master Plan objective... "investigate the feasibility of a new Community /Fitness Center to help augment Beecher Center" 2006 Park Board Retreat goal... "'securing recreation programming space ". Community Survey 2007... CJ ❖ Recreation and Fitness Center A facility dedicated to health and fitness and recreation center, with instructional rooms and gym, were 2 nd and 3rd most desirable facilities considered somewhat or very important for residents. An average of 75% of respondents believe that additional recreation programs for the following categories were somewhat or very important: children under 5 year old, children 5 -12 years, teens and senior citizens. Approximately 70% of respondents believe additional adult ioiatr uc tiv�iai p r og r a ms car's siDiiiewl:at or `firer y 'r:::porta::tr "...Yorkville REALLY needs indoor recreation /exercise facilities and programs, though. Yorkville really needs to be able to offer some adult fitness classes to the public at an affordable price. Also, toddler and baby programs." Quote from citizen - 2007 community mail survey. Facility opportunity... CJ Reasons to Lease Club 47 facility... Acquire a recreation /fitness center with little capital investment. There is no obligation to take the purchase option. We have the ability to lease for up to 10 years. Facility is already well established with an existing cash flow and we would inherit a membership. It allows the Recreation Department to have much needed space now. This is a well known facility with Yorkville residents and is centrally located for the citizens. Facility Opportunity.. ❖ Reasons to Lease Club 47 facility... cont. i� To secure recreation programming space, addinq programs and activities to the facility that are already esta lished and successful. Able to make capital improvements with the owner fronting the funds. The lease contract allows us to lock in the building and property price at 4 million dollars with a maximum of 2.5% inflator per year. Lease payment stays the same for 2 years, with a maximum 2.8% increase per year beginning in the 3rd year. Assures that the facility continues to serve recreational and fitness needs for residents. i Public Recreation and Fitness Centers... C J ❖ Many municipalities own and operate Recreation and Fitness Centers in Illinois. Addison Park District - Glen Ellyn Park District Orland Park Rec. & Parks Dept -Alsip Park District - Glendale Heights Park & Rec. Dept. - Oregon Park District - Arlington Heights Park District - Glenview Park District - Park Ridge Rec. & Park District - Barrington Park District - Godley Park District - Pekin Park District - Bartlett Park District - Hanover Park Park District - Peoria, Pleasure Driveway & Park Dist.- Bensenville Park District - Hazel Crest Park District - Pleasant Dale Park District - Bolingbrook Park District - Hickory Hills Park District - Princeton Park District - Bridgeview Park District - Highland Park, Park District - Prospect Heights Park District - Broadview Park District - Hinsdale Park and Recreation Dept.- River Trails Park District- Buffalo Grove park District- Hollis Park District - Rock Island Park & Rec. Dept - Byron Park District - Homewood - Flossmoor Park District - Rolling Meadows Park District - Calumet Memorial Park District - Huntley Park District - Romeoville Recreation Dept - Carol Stream Park District - Itasca Park District - Roselle Park District - Cary Park District - Lan -Oak Park District Rosemont Park District - Central Stickney Park District - Lake Bluff Park District - Round Lake Area Park - Channahon Park District - Lemont Park District - Schaumburg Park District - Chicago Heights Park District - Lincoln Park District - Skokie Park District - Chicago Park District - Lisle Park District South - Barrington Park District - Chicago Ridge Park District - Lockport Township Park District - South Holland Parks & Rec. Dept. - Country Club Hills Park District - Matteson Parks & Rec. Dept. - Sterling Park District - Countryside Recreation - Medinah Park District - Streamwood Park District - Decatur Park District - Memorial Park District - Tinley Park - Park District - DeKalb Park District - Morton Grove Park District - Sycamore Park District - Des Plaines Park District - Mount Sterling Park District - Vernon Hills Park District - Downers Grove Park District - Mt. Prospect Park District - Veterans Park District - Dundee Township Park District- Mundelein Park & Rec. Dept. - Warrenville Park District - Elk Grove Park District - Niles Park District - Wauconda Park District - Elmhurst Park District Norridge Park District - Westchester Park District - Flagg - Rochelle Comm. Park Dist. - Northfield Park District - Westmont Park District - Fox Valley Park District - Oak Brook Park District - Wheaton Park District - Frankfort Square Park District - Oak Forest Park District - Wheeling Park District - Franklin Park, Park District of Oak Lawn Park District - Winfield Park District - Geneva Park District - Oakbrook Terrace Park District - Wilmette Park District - Wood Dale Park District. Club 47 Lease Opportunity... c� Club 47 Facility 37,000 sq. ft. Large gymnasium Small gymnasium 4 :� Studio 1 Studio 2 Weight Room Pool /Showers /Locker Rooms Open Fitness Area Classroom / Kid's Care "Think of this opportunity as a public Recreation Center for programs with a fitness component that will create an income to support the facility Dave Mogle, Director of Parks and Recreation Department "I think we really need to add things to our community that will keep our youth out of trouble." Quote from citizen — 2007 Community Survey C� .P "I think the P and R has come a long way the last 5 -7 years. Keep improving and being creative — good for the city." Quote from citizen — 2007 Community Survey OR e- °1 0 IP { c "I have taken yoga and Pilates for several years through the Rec Dept. and I'm getting tired of sharing our space with a preschool or having to have classes in the intermediate school band room." Quote from citizen — 2007 Community Survey -MOM f _ "Our family likes Yorkville very much. As this city grows, parks and rec. will definitely need to expand programs, both adult & youth." Quote from citizen — 2007 Community Survey i Y I � Stu 2 "As our community grows, more space is needed for activities, especially for kids and teens. They need to be involved and occupied, if you want to keep them out of trouble." Quote from citizen — 2007 Community Survey E f + • • r •. T A ' A e "Yorkville really needs a public pool indoor /outdoor (either one). I think that would help get more money in the town too (swimming lessons) ". Quote from citizen — 2007 Community Survey. J w- 6' i I Proposed Lease Agreement Highlights... o Term of lease is for 10 years. City may activate option for purchase of building and property at anytime during this time. C� Lease payment of $17,500 per month in years one and two. No greater than 2.8% increase per year from year three through term of lease. Lease includes all current equipment. New equipment is the responsibility of the Parks and Recreation Department. Rent and taxes = $7.00 per sq. ft. � Current market lease price = $18.00 - $20.00 per sq. ft. Future Proposed Purchase Option... Building and property purchase price $4,000,000. Increases $100,000 per year through term of lease. No greater than 2.5% increase per year. a City pays $100,000 capital improvement payment at signing of lease to be credited to mutually agreeable capital improvements. v� City pays $100,000 penalty clause if it chooses not to activate purchase option by the end of the term. Proposed Facility Improvements: c� ❖ Initial Improvements, agreed by both parties: Pool: ceiling, whirlpool tiles, clean deck, paint ��- Small Gym: ceiling, refinish floor m- Main room: Replace carpet throughout facility, paint, lighting -:® Front Lobby: lighting, paint a- Office Areas: Paint, layout Parks and Recreation Department responsibility: (The equipment will be replaced and rotated as needed...) • Office Equipment Replacement •:� Facility Maintenance ❖ Fitness and weight equipment replacement ❖ Owner's expense and responsibility: Roof repair / replacement All structural repairs ®:- All underground filtration lines, main water and sewer lines Appraisals of Building and Property... CJ ❖ Report from Pin el and Associates, LLC. p 9 ®� Facility was built in 1996 - 13 years old Facility was found to be in good condition New facility cost = $11,000 (42,000 sq. ft. = $200.00 per sq. ft. const. cost) "Based on our observations, it is our opinion that the physical condition of the facility is good and would be a quality recreation facility acquisition for the City ". Pingel and Associates, LLC Value of Building and Property... ❖ Report from Argianas & Associates, INC. Value of land and building $3,900,900 "...our preliminary opinion of the market value of the fee simple intereston an "as is" basis. Argianas & Associates, Inc. Financial Report..,. Independent review and opinion of the financial impact of proceeding with the City`s lease of Club 47. n The report stated that it is likely that there will be a significant variation in these numbers over time and that the projected budget is essentially breakeven. This lease opportunity will not cause an increase in taxes. "We understand that profit is not the prime rationale and there may be other policy reasons to enhance recreation opportunities for city residents." Speer Financial, INC. Recommendation... V'V CJ Park Board and Park and Recreation Staff unanimous recommendation... Approve the lease agreement, with future purchase option with the owners of Club 47, to allow for expansion of recreational services for the citizens of the United City of Yorkville.