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City Council Minutes 2008 10-14-08 1 I I 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, OCTOBER 14.2008 I I 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 Allen Present Werderich Present Ward II Gohnski Present Plocher Present Ward IlI Munns Present Sutcliff Present Ward IV Besco Present Spears Present I Also present: City Clerk Milschewski, City Treasurer Powell, City Attorney Orr, City Administrator McLaughlin, Assistant City Administrator Olson, Finance Director Mika, Public Works Director Dhuse, Police Chief Martin, Police Lieutenants Hart & Schwartzkopf, Director of Park & Recreation Mogle, Community Development Director Miller, City Engineer Wywrot and Public Relations Officer Spies. i OUORUM I 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 Mayor Burd noted that there would not be an Executive Session needed tonight. COMMITTEE MEETING DATES Public Works Committee 6:00 p.m., October 21, 2008 City Hall Conference Room Economic Development Committee 7:00 P.M., November 4, 2008 City Hall Conference Room Administration Committee 6:00 p.m., November 13, 2008 City Hall Conference Room I Public Safety Committee 6:00 P.M., October 16, 2008 City Hall Conference Room PRESENTATIONS None. I PUBLIC HEARINGS None. CITIZEN COMMENTS Chris Schramm, 128 -A Bertram Drive, Bristol Bay subdivision, addressed the City Council regarding the parking ordinance for Bertram Drive. He explained that some of the buildings along the street have no on -street parking. 138 and 136 Bertram have four visitor spaces and 134 Bertram has eight spaces. He I asked the City Council to consider allowing parking on the street to accommodate visitors. Joe Lusk addressed the City Council regarding his request for a variance. He explained that he wants to square off his lot at 308 Walnut to make his lot more useable and asked them to consider allowing his variance. I , I i The Minutes of the Regular Meeting of the Citv Council — October 14. 2008 — ua 2 CONSENT AGENDA 1. Police Reports for August 2008 (PS 2008 -40) 2. Request for TracView Program — approve as presented (PS 2008 -41) 3. Ordinance 2008 -86 - Approving a Special Use Permit Application for Richard Marker Associates, Inc. at 728 E. Veteran's Parkway authorize Mayor and City Clerk to execute (PC 2008 -18) 4. Loren and Rhonda Miller — 1 1/2 Mile Review for Rezoning (a -1 to M -1) — recommend to the Kendall County Board as they consider the Loren Miller Map Amendment to rezone a 0.753 parcel (PIN 02- 16- 426 -010), located at 2450C Cannonball Trail, Bristol Township from A -1 to M -1 to consider the following: 10 require the outdoor storage area existing on the property be enclosed with a solid wall/fence at least 8' in height per the Kendall County Zoning Ordinance Section 10.01 a.2; and 2) require the access drive serving the property be' mproved to minimize the current ruts in the driveway by providing an even grade and surface (PC 2008 -21) 5. Monthly Treasurer's Report for August 2008 (ADM 2008 -89) 6. Resolution 2008 -41- To Release Closed Session Minutes — authorize Mayor and City Clerk to execute (CC 2008 -69) 7. Agreement between Yorkville - Bristol Sanitary District and the United City of Yorkville (I & H Investigation) — authorize Mayor and City Clerk to execute (CC 2008 -70) 8. Prairie Meadows Park Change Orders 1 & 2 — authorize Mayor to execute (CC 2008 -71) 9. Whispering Meadows Park Change Order 1— authorize Mayor to execute (CC 2008 -72) Mayor Burd entertained a motion to approve the Consent Agenda as presented. So moved by Alderman Werderich; seconded by Alderman Allen. Motion approved by a roll call vote. Ayes -8 Nays -0 Golinski -aye, Werderich -aye, Plocher -aye, Spears -aye, Munn -aye, Sutcliff -aye, Allen -aye, Besco -aye PLAN COMMISSION /ZONING BOARD OF APPEAL I Ordinance 2008 -87 Approving a Side Yard Fence Variance for Joe Lusk Property Located at 308 Walnut Street (ZBA 2008 -04) Mayor Burd entertained a motion to approve an ordinance approving a side yard variance for Joe Lusk for the property located at 308 Walnut Street, as presented, and authorize the Mayor and City Clerk to execute. So moved by Alderman Allen; seconded by Alderman Besco. i Motion approved by a roll call vote. Ayes -8 Nays -0 Spears -aye, Plocher -aye, Werderich -aye, Gohnski -aye, Besco -aye, Allen -aye, Sutcliff -aye, Munns -aye MINUTES FOR APPROVAL A motion was made by Alderman Munns to approve the minutes of the City Council meetings of August 26, 2008 and September 9, 2008; the minutes of Special City Council meetings of September 9, 2008 and September 15, 2008 and the minutes of Special City Council /Joint Meeting with Oswego of September 23, 2008: seconded by Alderman Werderich. Motion approved by a viva voce vote. BILLS FOR APPROVAL A motion was made by Alderman Mums to approve the paying of the bills listed on the Detailed Board Report dated October 9, 2008 totaling the following amounts: checks in the amount of $3,557,880.13 (vendors); $271,411.03 (payroll period ending9 /27/08); for a total of $3,829,291.16; seconded by Alderman Werderich. Alderman Spears questioned a bill on page 39 for Napa Auto Parts in the amount of $72.86. She asked if the Water Department repaired the brakes themselves and Director Dhuse stated that they did. Alderman Allen questioned the note form the Director Mika regarding pulling a check. He asked if the new totals reflected this change and Director Mika stated that they did. Motion approved by a roll call vote. Ayes -8 Nays -0 Munns -aye, Plocher -aye, Spears -aye, Sutcliff -aye, Werderich -aye, Besco -aye, Golinki -aye, Allen -aye i The Minutes of the Regular Meeting of the Citv Council — October 14, 2008 — ua 3 I REPORTS i MAYOR'S REPORT Ordinance 2008 -88 To Set a Date for, and to Approve a Public Notice, of a Public Hearing for the Countryside Center Business District Development Project Area (CC 2008 -73) Mayor Burd entertained a motion to approve an ordinance to set a date for, and to approve a Public Notice of a Public Hearing for the Countryside Center Business District Development Project Area, as presented, and authorize the Mayor and City Clerk to execute. So moved by Alderman Munns; seconded by Alderman Allen. Attorney Orr explained that this is part of the Redevelopment Agreement that the Council previously approved. The City Council agreed to create a business district in order to collect business district tax. To accomplish this, there needs to be two public hearings and a plan for the business district on file which Administrator McLaughlin has. The public hearing will be at the next two City Council meetings with a vote at the following meeting. For the record, Mayor Burd noted that the dates for the public hearings were October 28, 2008 and November 10, 2008. Motion approved by a roll call vote. Ayes -8 Nays -0 Plocher -aye, Werderich -aye, Allen -aye, Besco -aye, Allen -aye, Sutcliff -aye, Munns -aye, Spears -aye Proclamation for Arts & Humanities Month (CC 2008 -74) Mayor Burd read the proclamation for Arts & Humanities Month (see attached). Green Town Conference Date (CC 2008 -75) Mayor Burd reported that she attended the Green Town Conference on October 2, 2008. Speakers at the event were Terry T former Secretary of the California EPA; Dean Kubam from Santa Monica. and Bob Dixon, Mayor of Greensburg Kansas. Items covered were the sustaining society by using the environment wisely, recycling, development task forces and building green communities. i Outstanding Financial Obligations (CC 2008 -76) Mayor Burd reported that not long after Attorney Orr joined the city staff she encountered encumbrances that the staff and the mayor were not aware of Staff has researched annexation agreements, etc. to determine the financial obligations of the city. Administrator McLaughlin prepared a memorandum dated October 10, 2008 (see attached) outlining the city's outstanding financial obligations which he went over: Litigation L Landfill Litigation — legal fees to date approximately $225,000.00. A dministra tor McLaughlin indicated that this is now estimated to be $315,000.00. Alderman Werderich asked if this is for the entire legal fee or just the appeal and if the city could recoup the expense. Mayor Burd indicated that the $315,000.00 was the entire cost of which $154,000.00 should be paid by Mr. Hammon. There is a hearing in December regarding Mr. Hammon's fees. In response to questions from Aldermen Golinski and Allen, Attorney Orr explained that Mr. Hammon has not paid $154,000.00 owed to the city from the landfill process. The remainder is for legal fees incurred pursuing payment and will be paid for by the citizen's of Yorkville. Alderman Allen noted that the City Council has expended a dramatic amount of money to protect the city and it won't get the money back. Mayor Burd clarified that this was correct. 2. Aspen Ridge Litigation — damages sought exceed $24 million., Alderman Spears asked if this amount included legal fees and Attorney Orr indicated that legal fees are ongoing. 3. LayCom Litigation — damages being sought in excess of $12 million. Utility Recaptures or Improvements 4. MPI Water Improvements Reimbursement — estimated payment is $1.2 million. Administrator McLaughlin explained that the city committed to turn over tap on fees for the Grande Reserve Development. The city does not have a fund holding these funds; there is no reserve and no tracking for the fees. He felt that the collected fees may have been used to fund other things. He has asked Director Mika to track the fees in order to have funds in place when the developer requests them. Alderman Werderich asked if any money was fimneled into the budget to cover this and Administrator McLaughlin stated there was not. i i i i i i The Minutes of the Regnl4r Meeting of the Citv Council — October 14, 2008 — Dau 44 i 5. Fox Hill Utility Recaptures — obligation is estimated at $1,141,000.00. Administrator McLaughlin explained that in 1993 the city agreed to a recapture agreement if the developer oversized the water and sewer lines. The agreement states that if no one taps into the oversized lines the city agreed to pay the developer. No one has tapped into the lines and the amount owed the developer has been compounding interest since 1995. The estimate owed the developer is $1.1 million. Due to other improvements such as the Rob Roy Interceptor, there is no benefit for the Rob Roy Falls development to connect to these lines. The city may be totally responsible for the recapture. Alderman Plocher asked if any funds had been set aside to pay this and Administrator McLaughlin stated that they had not and that there are negotiations to recover the money with future sales tax revenues. Negotiations with the developer of Fox Hill to adjust the amount are now out the table. 6. Bristol Bay Stormwater Basin — estimated to cost $4 million to be built as development occurs. Mayor Burd asked if this was part of the Raymond Outfall and Director Miller explained that the stormwater basin is in addition to the outfall. He explained that Raging Waves excavated the area at no cost because they needed fill. The basin is to be built as needed by developers. If the city chooses to finish it would cast approximately $4 million. Alderman Plocher asked if the $4 million would be a wash if the area builds out as designed. Director Miller stated that it would be however the city needs to monitor and track development in the area to insure developers contribute to the basin. If this occurs most of the outstanding liability should be covered. 7. Inland Sanitary Sewer — the city committed to install a sanitary sewer interceptor at an estimated cost of $1.4 million to serve the Route 47 — Baseline Road area. It was counting on the property south of the Inland property to develop and fund the project however there is currently no action on it. Alderman Werderich asked if the city had any leverage against the Marquette property and Administrator McLaughlin stated that the city was in good position to compel them to develop. 8. Centex Loan — Centex loaned the city $105,000.00 to design wetlands for the Raymond Regional Detention Area. The loan, including prime rate interest plus 2 %, is due for repayment in 2010. 9. Wmdett Ridge Sanitary Sewer Reimbursement — the city is expected to pay $170,000.00 for oversizing the sanitary sewer. 10. Raintree Village Sanitary Sewer Reimbursement - the city is expected to pay $318,433.00 for oversizing the sanitary sewer. Administrator McLaughlin stated that there was a commitment in both the Windett Ridge and Raintree Villages PUD agreements that the city will pay for the oversizing of the sanitary sewer. He noted that the city has already paid Raintree some funds earlier this year. Alderman Allen asked if the same entity the city was paying was responsible for the maintenance on the unimproved lots in the development and if so could the city bill for maintenance. Administrator McLaughlin explained that if code enforcement is needed for property maintenance the city could hire an outside firm however the city has been mowing. Alderman Allen noted that residents in the subdivision are mad about the lack of maintenance. Attorney Orr noted that the adjudication process has been established to address issues such as this. Administrator McLaughlin stated that the maintenance of empty lots has been discussed at the Public Works Committee and that the developer Wiseman Hughes has been contacted concerning the problem. 11. Autumn Creek Sanitary Sewer Recapture — the city committed to waive 190 connection fees at $2,000.00 each as part of a recapture agreement. Road Construction 12. Fox Hill Permanent Signal — the city committed to IDOT to have a signal, estimated cost $250,000.00, installed by 2010. 13. Kennedy and Mill Road Improvements — the city will receive $1.1 million for road improvements which have an actual cost of $1.8 million. 14. Game Farm Road/Somonauk Improvements — city portion of project is $3.3 million. Administrator McLaughlin stated that resources are earmarked in any budget. Alderman Besco asked if funds from the Kane County Council of Mayors were going to be used. A dministra tor McLaughlin stated that they were however the city will still be responsible for $3.3 million 15. Route 47 Improvements — the local share obligation is in excess of $1.7 million. 16. Eldamain Road Improvements — the city is obligated to spend, $1 million before Plano is expected to cost share. 17. Fox Road — the city's share of the project is projected at $140,000.00_ Other 18. Club 47 Lease — the monthly lease is expected to be covered by revenues however the total lease obligation is $1,086,000.00 over five years. 19. 2007 Clark Property Installment Purchase — the cost is $300,000.00 over three years. 20. DPW Land & Building Purchase - $1.25 million. Note is held by the former owner and will amortize over 20 years. 21. Hoover — the city may be responsible for various infrastructure improvements i The Minutes of the Regular Meeting of the Citv Council — October 14, 2008 — uage f Sales Tag Rebate Obligations — Administrator McLaughlin noted that terms have been written into each economic incentive agreement. He stated that Director Miller is working on a new economic incentive policy. Alderman Plocher asked if anything obligates the city to offer incentives and Attorney Orr stated there was nothing. (See attached memo for list of specific agreements). Litigation Covered by IML Insurance (See attached memo for list of specific litigation). Alderman Spears stated that she has voiced her concerns with the Rob Roy Falls and Cobblestone incentive agreements. She felt that the incentives should stop. She also raised concerns with how the city has been spending money. She asked if staff was aware of the money owed before the city acquired property. Administrator McLaughlin stated that it did however he wasn't aware that funds had not been put aside. Mayor Burd explained that she has asked staff to cut the budget and it has been cut over $1 million. She also stated that she has told the Parks and Recreation Department that Club 47 has to be self - sustaining or they cut their budget. As to the Public Works building, the funds are available and cannot be used to cover other liabilities. She stated that she would still have purchased the Clark Property because the cost was $300,000.00 over three years and was a good deal for the city. She stated that the city needs to find other ways to find funding because it cannot depend on permits and growth to pay its way. Alderman Spears stated that the acquisition of other properties has been discussed in Executive Session however she felt that the city should stop spending money for open space. She stated that she had a great concern with relying on developer's fees. She felt that the city can't keep this up. Alderman Spears also expressed her appreciation to Administrator McLaughlin for his research. Alderman Allen stated that he supported the spirit to cut the budget. He also stated that decisions were f group decisions by the City Council in the past and they should not be beat up for it. He felt that funds should be spent to defend the city in litigation matters and that the Administration Committee needs to look at the six month budget. Alderman Sutcliff stated that the information in Administrator McLaughlin's memo was sobering. She felt it was good to know where the city is and that the mayor and staff did a good job cutting the budget. She stated that the city should look for alternative revenue streams so that the quality of life isn't changed. Alderman Werderich thanked Administrator McLaughlin for the information and stated that this will allow the Council to be aware of finances in the future. Alderman Werderich stated that the litigation is allegations, not judgment and the city should fight against it. Mayor Burd cautioned the City Council when developers of commercial property approach them because sales tax is a revenue stream. She stated that the Rob Roy Falls development is owned and being developed by a Yorkville family and the City Council shouldn't take it out on them. She commented that there is no way to budget against the calamity of litigation and she hoped that the city would be successful with the litigation. Alderman Besco questioned the status of the Ocean- Atlantic litigation and Attorney Orr stated that the city has a judgment and is leining the property so progress has been made. She further noted that in the Aspen Ridge case, the plaintiff is amending their motion. Response to Forest Preserve District Letter Regarding Hoover (CC 2008 -77) Mayor Burd distributed and read a letter dated October 14, 2008 from the President of the Kendall County Forest Preserve District, Kay Hatcher (see attached) in which the District proposed to return to the City any and all payments they made toward Hoover. Mayor Burd asked the City Council if they felt the city should pursue termination of the agreement. i Alderman Spears asked if the city could ask for a dollar amount plus about 40 acres. Mayor Burd stated that this was possible. Alderman Spears asked who would maintain the property after the termination and Mayor Burd stated that the Forest Preserve District would be responsible. Alderman Besco asked if the County Board was cognizant that without the former mayor, former city staff members, CorLands, etc. the property would have been White Tail Ridge. He stated that he supported the city's role in Hoover however he felt it may be good to severe relationship with the Forest Preserve District. He stated that residents will still benefit. He asked if there were any CorLands penalties and the mayor stated that CorLands has been paid and any other fees will be the Forest Preserve District obligation, j i i The Minutes of the ReL-ular Meetine of the Citv Council — October 14. 2008 — Mee 6 Mayor Burd reiterated that Yorkville originated the acquisition of the property and city staff solicited $5 million in grant dollars from Speaker of the House Hastert. The grant money needed to go to the Forest Preserve District so the city partnered with them. In exchange for the city's efforts, Yorkville was to get a prime location on the property. Alderman Werderich stated that he felt the dollar figure seemed fair and that he would like the city to receive the funds. He expressed concern with the city having a lease agreement with the Forest Preserve District for open space and agreed with Alderman Spears that the city should ask for funds plus acreage. He felt 40 acres seemed fair. Director Mogle indicated that the Park Board shared the opinion that the city should receive funds plus land in exchange for dissolving the Intergovernmental Agreement. The Park Board supports discussions regarding this. Alderman Golinski stated that he did not see anything in writing regarding land. Mayor Burd indicated that this information was in the Forest Preserve District's minutes. Alderman Spears stated that the City Council received a spreadsheet showing expenses paid to CorLands. She asked if city staffs time has been accounted for and she asked Director Mogle if he could compile this information. Mayor Burd stated that there was not as much staff time as one might figure. Alderman Spears questioned if the city had the funds to build new baseball fields and Director Mogle responded that if the city received funds plus land the funds could be used toward fields as the City Council wishes. There was also discussion about leasing the property for twenty years and the planned use for it. It was discussed to take the funds and use it toward property at another location where lighted fields could be developed. Also it was discussed that Land Cash funds expended had to be returned to the Land Cash fund dollar for dollar. Administrator McLaughlin noted that Director Mika has created a Land Cash Fund report with and without Hoover which she is in the process of tweaking. I The City Council also discussed the city having a preference for the location of the ball fields, the right to control any property leased and no cost easements. Mayor Burd stated she would contact the Forest Preserve District about dissolving the agreement and then report back to the City Council. CITY COUNCIL REPORT No report. ATTORNEY'S REPORT No report. I CITY CLERK'S REPORT No report. CITY TREASURER'S REPORT Treasurer Powell reviewed the city's investment policy. The priorities of the policy are preservation of capital, liquidity and yield. No investments are made that would put the city funds at risk. Approved investments are checking, savings accounts, money market accounts, certificates of deposits and Illinois money market accounts. Any other type of investment requires City Council approval. In general, city funds are held at local banks to provide funds for liquidity. He noted that FDIC insurance has recently been increased from $100,000.00 to $250,000.00. The investment policy requires that the financial institutions provide collateral above that amount which is held by a third party. In a monthly report of collateral is submitted by each financial institution. He stated that he and Director Mika recently met with the banks and reviewed the collateral report and he was assured that sufficient collateralization has been provided. The reports are also reviewed annually by the city's auditors and adjusted if necessary. Alderman Plocher clarified that recent events in the stock market have not affected city funds. Treasurer Powell stated that no city money is invested in the stock markets. CITY ADMINISTATOR'S REPORT No report. FINANCE DIRECTOR'S REPORT No report. The Minutes of the Regular Meeting of the Citv Council — October 14. 2W8 — uage 7 i i The Minutes of the Regular Meeting of the Citv Council — October 14, 2008 — uaEe 7, DIRECTOR OF PUBLIC WORKS REPORT Director Dhuse reported that the city closed on the new Public Works building and they will be meeting with the former owner. CHIEF OF POLICE'S REPORT Halloween Hours Chief Martin reported that the business trick or treat would be October 25, 2008 from 11:00 a.m. to 2:00 p.m. and Halloween trick or treat hours will be 4:00 to 7:00 p.m. BASSET Training Chief Martin reported that the next Beverage Alcohol Sellers and Servers Education and Training (BASSET) class was scheduled for October 20, 2008 at the Best Western Timber Creek Inn in Sandwich starting at 10:00 a.m. Senior Police Academy Chief Martin reported that the next Senior Police Academy was being held on October 29, 2008 at the Historic Kendall County Courthouse from 8 :00 a.m. to 3:00 p.m. The event is being hosted by the Police Department along with the Kendall County Triad and the Oswego Police Department. Super Seniors Chief Martin reported that the Police Department has partnered with the Secretary of State for the Super Seniors Program that will be held on November 13, 2008 from 10:00 a.m. t o 2 :00 p.m. at the Beecher Center. The event is designed to help local seniors meet their driving qualifications. Cells for Seniors Chief Martin reported that the Kendall County Triad has collected 35 cell phones for use by senior citizens i DIRECTOR OF PARKS & RECREATION'S REPORT Director Mogle reported that a Playful City Celebration was held on Columbus Day and about 100 children and adults were in attendance. Hot dogs were served at the Riemenschneider Park and the Riemenschneider family attended. He stated that it was an outstanding event. COMMUNITY DEVELOPMENT DIRECTOR REPORT Wetland Meeting Director Miller reported that the Conservation Foundation would be hosting a meeting for Homeowner's Associations tomorrow at 7:00 p.m. at the library. The discussion will be about wetland basins. Comprehensive Plan Director Miller reported that a public hearing for the Comprehensive Plan was scheduled for October 28, 2008 City Council meeting at 7:00 p.m. The draft plan is available online for viewing by the public and has been distributed to the City Council. He asked the Council to contact him with any questions or concerns. COMMUNITY RELATIONS OFFICER'S REPORT Green Committee Events Mrs. Spies reported that the Green Committee would be holding its first recycling event on November 1, 2008 at the Kendall County Fair Grounds from 9 :00 a.m. to 2:00 p.m. The event is being held in order to help the public recycle computers, CDs, other electronic equipment, clothing, etc. There will also be a hazardous waste disposal event on October 25, 2008 from 8:00 a.m. to 3:00 p.m. at the Kendall County Highway Department. COMMUNITY & LIAISON REPORT Legislative Report � Alderman Spears presented a report on several legislative actions: • HR/3221 /s 2636 — Foreclosure Prevention Act - Two provisions of this bill affect seniors as it allows taxpayers who do not itemize their income tax deductions to deduct up to $500.00 ($1,000.00 per couple) in property taxes on their home while still taking the standard deduction. This is helpful to seniors who do not itemize because they usually pay little deductible interest since their homes are paid for. o A new housing law will make changes to reverse mortgages by limiting origination fees, increasing the maximum size of the reverse mortgage and forbidding the lender to require lenders to purchase annuities or long term insurance. • A bill to increase the volunteer travel deduction to 70% of the business rate has recently been introduced and does not have a number yet. This tax deduction rate has not been changed since 1998 and with recent gas process the small deduction makes it difficult for many charities and volunteer groups to recruit participants. The current deduction is 14 cents /mile for volunteers and 58.5 cents for business related travel. Some are of the opinion that the volunteer rate should equal the business raze, not just 70% of it. Alderman Spears encouraged everyone to contact their legislative bodies in support of increasing the volunteer rate to equal the business rate. i i i The Minutes of the Regular Meeting of the Citv Council — October 14, 2008 —Wage 8 i Plan Commission Alderman Allen reported that he attended the Plan Commission meeting where a number of issues were discussed. The Plan Commission requested that the City Council discuss their decision on the gas station in front of the Plan Commission. He explained that the Council makes decisions independently with information provided by the Commission. Library Board Alderman Allen reported that he attended the October 13, 2008 Library Board meeting where they discussed forming a Library District however some members of the Board found out about this topic by reading it in the newspaper. They also discussed an independent revue of their financial records. Director Mika added that the Library Board Treasurer requested the revue because she is putting together their budget. They want to hire an auditor who will work with Director Mika however the city monitors their finances. Mayor Burd felt this would be a duplication of work and a waste of money. Adopt a Highway Alderman Allen reported that the city participated in the Adopt a Highway program and the mayor and other volunteers did a good job picking up trash. I i COMMITTEE REPORTS i PUBLIC WORKS COMMITTEE REPORT In -Town Road Program (Phase 2) — Parkway Landscaping (PW 2008 -119) A motion was made by Alderman Besco to approve payment of 4 Seasons Landscaping Invoice #2624 in the amount of $24,062.67; second by Alderman Munns. Alderman Besco stated that this item was brought back to the City Council after Alderman Werderich questioned the invoice. Alderman Werderich stated that he questioned the city being charged $80.00/hour for landscaping labor. He felt that it would have been cheaper having four department heads doing the work. Administrator McLaughlin explained how the Prevailing Wage Act applies to this and that the city is obligated to pay. He stated that any public project falls under the act. Attorney Orr confirmed that the Act applies to any government project. City Engineer Wywrot explained that when the city bids out a project, the prevailing wages are included in the bids along with material costs. He stated that this project was labor intensive because they went project to project landscaping. I Alderman Werderich felt the city should be more careful with checking cost before hiring or should have an estimate before the work is preformed. Administrator McLaughlin stated that the city did know the raze but did not know the total hours needed to do the job. He noted that the staff had no complaint with the time incurred. Alderman Werderich suggested looking into having these types of projects done in- house in the future. Mayor Burd questioned if the city had the staff to do the work. Administrator McLaughlin questioned the legal line that might be drawn by using city staff. I Alderman Sutchff agreed that if the city staff is able to do the work they should. She noted that the company used is local and she hoped they were spending the dollars in Yorkville. Alderman Allen noted that the company is local but the employees may live elsewhere. Alderman Besco asked how the city can be assured the employees of contractors are getting paid the prevailing wage. Attorney Orr stated that the law is enforced by the Illinois Department of Labor and there are complaint forms on their website. A municipality has no right to enforce the payment of prevailing wages even though the work is done for them. Motion approved by a roll call vote. Ayes -8 Nays -0 Werderich -aye, Golinski -aye, Besco -aye, Allen -aye, Sutcliff- -aye, Munns -aye, Spears -aye, Plocher -aye ECONOMIC DEVELOPMENT COMMITTEE REPORT No report. I The Minutes of the Regular Meetine of the Citv Council — October 14, 2008 — na eg_9 I PUBLIC SAFETY COMMITTEE REPORT Ordinance 2008 -89 Amending City Code Title 6 — Traffic, Chapter 2 Regarding Parking Restrictions A motion was made by Alderman Spears to approve an ordinance amending City Code Title 6 — Traffic, Chapter 2 regarding parking restrictions, as presented, and authorize Mayor and City Clerk to execute; seconded by Alderman Munns. Mayor Burd asked if Bertram was removed from the restricted streets. Administrator McLaughlin stated that parking is being allowed on Bertram Drive. He stated that the road has been paved and striped by the developer indicating no parking. There will be a cost to the city to re -stripe the street. Chief Martin indicated that the road is a dead end and may not need re- striping at this time. In the future when the road is opened up, the striping can be changed. i Motion approved by a roll call vote. Ayes -8 Nays -0 Gohnski -aye, Besco -aye, Allen -aye, Sutcliff -aye, Munns -aye, Spears -aye, Plocher -aye, Werderich -aye ADMINISTRATION COMMITTEE REPORT No report. ADDITIONAL BUSINESS Maintenance of Foreclosed Properties Alderman Spears noted that there was recent article in the Tribune newspaper on Yorkville. She questioned if the city had an ordinance which addresses the maintenance of foreclosed properties. Attorney Orr stated that the upkeep on foreclosed properties is no different from that of any other property in the city, the owner is still responsible. Alderman Spears stared that she has researched this and in California there are ordinances which hold the lenders liable for upkeep and assessed fines. Also, Boston has an ordinance which requires foreclosed properties to be registered with the city. Attorney Orr stated that under Illinois law there is no ability to enforce this type of law. Mayor Burd suggested that j this subject be put on a Public Works Committee agenda so a policy can be developed. She asked the committee to report back to the City Council. Ward I Meeting Alderman Allen reported that there will be a Ward I meeting on October 23, 2008 at 6:30 a.m. at the Southern Belle restaurants. Coffee will be provided. Kendallwood Estates Alderman Gohnski questioned if Van Emmon Road was going to be paved by Kendallwood Estates. Mr. Wywrot explained that the City Clerk is prepared to call the letter of credit if the road is not paved by the end of the week. The repair should be made by November. EXECUTIVE SESSION None. I ADJOURNMENT I Mayor Burd entertained a motion to adjourn. So moved by Alderman Golinski; seconded by Alderman Werderich. Motion unanim ously approved by a viva voce vote. i Meeting adjourned at 9:25 P.M. I Minutes submitted by: Jacquelyn Milschewski, City Clerk City of Yorkville, Illinois ,I REGULAR CITY COUNCIL MEETING OCTOBER 14, 2008 PLEASE PRINT NAME: ADDRESS: P Ar, 1 A ae, sc/'.JMn^ -W r� /l / J • J Il I �� Y /�Pu�rla p�. 7o kvd��e i SIGNIN ZI /������y..r• �wn■r� 1 �nunr• �,uurr• �,.w■r• ♦ �,unu 1 �uuur• 1 �n,u■r• purer• p•unr• ♦ �uunr• �uuuy •u.• �► �.�1�2�1i�Z! ?!li�1!I!li �Z! I! li. �1!?! li�1! I! ti. �Zl T�li� !li��!I!li�1!I!li�1 �ItIj111i'i'� ' r�'�'� ► UNITED CITY OF YORKVILLE I►hh' I Y wc & unafion G ���11►►►' ;I f'' ►'� Illinois Arts & Humanities Month •_ . � Whereas, the arts and humanities are the embodiment of all things beautiful and 11; entertaining in the world — the enduring record of human achievement; and�;��11. 11 Whereas, the arts and humanities enhance every y aspect of life in the United City "—, �� II , 111 ►hc�. t�.�� 4111 •'; of Yorkville — improving our economy, enriching our civic life, driving tourism, and • .I;;' ' I ►►�•�. exerting a profound positive influence on the education of our children; and III N•;.� ,1 11► ?; ;,ail Whereas, arts education research shows that the arts help to foster discipline, ;._!.'i� 11'1 ►,r��, creativity, imagination, self - expression, and problem solving skills while also helping to %, /'1�1 1 develop a heightened appreciation of beauty and cross - cultural understanding; and '� Whereas, we use the humanities — history, literature, philosophy — to explore 1�1 what it means to be human; and �i� �fll'1'i� Whereas, the arts and humanities play a unique and intrinsically valuable role in 111 NI � X 11 ► 1,0!:�� the lives of our families, our communities, and our state; and �� i l�' 1 ►1 1 1 / � Whereas, the month of October has been recognized as National Arts and 11 ► Humanities Month by thousands of arts and cultural organizations, communities, and �;'� �►� ►.: -• states across the country, as well as by the White House and Congress for more than • =��'1 rte, two decades: '''— .�/�1 �► NOW THEREFORE I Valerie Burd Mayor of the United City of Yorkville do hereby proclaim October 2008 as UNITED CITY OF YORKVILLE ARTS & 11 ► HUMANITIES MONTH and call upon our citizens to celebrate and promote the arts ►►:;� and humanities in our city and to specifically encourage the greater participation by 11 those said citizens in taking action for the arts and humanities. ,. '1� a Dated this 14 day of October, 2008, A.D. 1►I ��►� �;;� Valerie Burd, Mayor ,0 l �,;�.:,.�: =�fi �L���li ��C��J� �L�:�::�J� ���:•::�J� �1���J� ����J� �L���J� �L�:•:�J� ���•:�:�1� �L�:�:�J� �L�::�J� �L�•:::�• ,•;. ���..,.,... T:.r. r. r.,.. I:.,. r. r.,.. L.r. r. r.,.. L.r. r. r.,.. L.,. r. r.,.. L.r. r. r. r,. L.,. r.,. r.. L.,. r.,.,.. L.r. r.,.,.. L.,.,. ..,..L.,.,.r.,..L..;.,...,,,,,. Memorandum To: Mayor Burd & City Attorney Orr EST 1 1836 From: Brendan McLaughlin, City Administrator -� Date: October 10, 2008 Subject: Outstanding Financial Obligations <CE Y �b� 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. 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. LayCom Litigation — Yorkville and Centex are being sued for breach of contract. Damages sought are over $12 Million. UTILITY RECAPTURES OR IMPROVEMENTS l 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. s. 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. 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. 10. 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. i 13. Kennedy & Mill Road Improvements — Under the 2004 Grande Reserve Annexation Agreement, the city will receive $1.1 million dollars to improve Kennedy Road from developers. The actual price tag to improve the road is closer to $1.8 million. Construction timing is based on permit issuance and is currently forecasted for Fiscal Year 2010/11 to coincide with the opening of Autumn Creek Elementary. 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. IVIFT 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 i 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 1 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 $1,086,000 over 5 years per the 2008 Lease /Purchase Agreement. 19. 2007 Clark Property Installment Purchase - $300,000 over three years. 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 incentive agreements. Below is a list of developments that the City economic nce g p y 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 date 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 a 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) f l 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 -7b (forlewel 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 center west 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 30. Lincoln Prairie — 50% Sales Tax Rebate for certain improvements are to be paid back in full. (Agreement date 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 signalization 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) 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% 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. (a dated )an 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 -36) 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 (agreement dated May 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 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. KENDALL COUNTY FOREST PRESERVE DISTRICT County Office Building • 111 West Fox Street • Yorkville, IL 60560 • 553 -4025 i t I October 14, 2008 I Mayor Valerie Burd & Yorkville City Aldermen 800 Game Farm Road Yorkville, IL 60560 RE: Intergovernmental Agreement between Kendall County Forest Preserve District and the United City of Yorkville dated November 9 2004 concerning the Hoover Outdoor Education Center Property. Dear Mayor Burd & City Aldermen: Please allow this correspondence to serve as a written confirmation of the Kendall County Forest Preserve District's present position in regards to the Intergovernmental Agreement between the United City of Yorkville (City) and the Kendall County Forest Preserve District (District) pertaining to the parcel commonly know as the Hoover Outdoor Education Center Property. At this time, the District is proposing to return to the City any and all principle payments made by the City with interest as calculated on the attached spreadsheet in exchange for mutual termination of the Intergovernmental Agreement dated November 9` 2004. I have been given direction to begin discussions with the City on behalf of the District regarding this matter. I look forward to hearing from the City on this matter. Ver truly yours, C4 Ka Ha " tcher President Kendall County Forest Preserve District Hoover Boy Scout Camp Acquisition Ci o f Yorkvil - Paid C orl-ands Expenses Invoice Num Amount 43- 00 -09 -03 33,607.50 43- 00 -10 -03 _ _ 1,470.00_ 43- 00 -11 -03 16,997.76' -- 43- 00 -03 -04 _ _ 11,226.81 43- 00 -04 -04 _ -- 27,475.69 43- 00 -05 -04 ----- ---- ______ _ _ -_ _ 11, 936.88 - -06 -04 __ 12,364.44 43- 0 - 07 -04 _ 16,737. 43- 00_08 -04 28,1 94.86 - -- 43-00-12-04 - 69 ,161.12' 43- 00- 07 -21 -05 48, 669.30 - �- 43- 00 - 10 -11 -05 51,894 ----- - - - - -- 43- 00- 01 -18 -06 55,938.16 43- 00- 07 -20 -06 116,637.68 43- 00- 10 -20 -06 _ 61,880.64E 43- 00- 01 -23 - 61, 860.76,- - 43- 00- 04 -21 -07 - -- - ,74.45 - - - - -- -- 32 - 9 - 74.4 - -- -- _ _- 659,027.91 --- - - - - -- -- -- - --- - - - - -- - - - - -- -- - - - - -- I nterest - Earned - - 71,776.19 - -- - - --- - - - - -- - - - -- - - -- -------------------------- Total 730,804.10