McHenry Times

City of Crystal Lake City Council met June 18.

Here is the minutes provided by the council:

Call to Order 

Mayor Shepley called the meeting to order at 7:30 p.m.

Roll Call 

Mayor Aaron Shepley and Councilmembers Ellen Brady, Ralph Dawson, Cathy Ferguson, Haig Haleblian, Brett Hopkins, and Cameron Hubbard were present. City Clerk Nick Kachiroubas was present.

Also present were City Manager Gary Mayerhofer, City Attorney John Cowlin, Deputy City Manager Eric Helm, Director of Finance George Koczwara, Director of Community Development Michelle Rentzsch, Director of Public Works Mike Magnuson, City Engineer Abby Wilgreen and Chief of Police James Black. David Pardys, City special counsel, was also present.

Pledge of Allegiance 

Mayor Shepley led the Council and the audience in the Pledge of Allegiance,

Approval of Minutes 

Councilwoman Ferguson moved to approve the minutes of the June 4, 2019 Regular City Council meeting. Councilman Hubbard seconded the motion. On voice vote, all voted yes. Motion passed.

Accounts Payable 

Councilwoman Ferguson moved to approve the Accounts Payable in the amount of $1,674,003.80. Councilman Haleblian seconded the motion. On roll call, all present voted yes except in order to avoid any possible conflict of interest, Mayor Shepley abstained on payments to Centegra Occupational Health or Northwestern Occupational Health or any related entities. Motion passed.

Public Presentation 

Mayor Shepley asked if anyone in the audience wished to speak on matters of general public interest or concern not included in the regular agenda, advising that they would be given an opportunity to speak when the agenda item is considered.

Rich Black, resident of 420 Spruce Lane, discussed the monies available to the City of Crystal through the State of Illinois Treasurer's Unclaimed Property Website. He stated there are 11 items that the City could pursue. George Koczwara, Finance Director, indicated the City has already filed for these items and they are moving through the system.

Mayor's Report 

Mayor Shepley wished Councilman Dawson a Happy Birthday.

City Council Reports

Councilwoman Brady stated that June is also the Dawsons' 60th Wedding Anniversary.

Consent Agenda 

Councilwoman Brady moved to approve a Consent Agenda consisting of Items 9a, 9b, with the addition of Items 10, 11, 12, 14, 15, 16 and 22. Councilwoman Ferguson seconded the motion. Mayor Shepley asked if anyone in the audience wished to comment on any of the listed items, noting that without any objection, they would most likely be approved. There was no public comment.

On roll call, all voted yes. Councilman Haleblian abstained from voting on Agenda Item 10. Motion passed.

9. a. Approved a Special Event Request and Lake Street Closure for St. Thomas the Apostle Church Outdoor Mass and Picnic, Sunday, July 28, 2019.

b. Approved a Special Event Request, Waiver of No-Wake Restrictions and Fee Waiver for the Crystal Lake Water Ski Association Tournaments, 300 Lake Shore Drive, July 14, August 18 and September 1, 2019.

10. Approved the PZC Recommendations and adopted an Ordinance granting the Special Use Permit to allow for a Used Merchandise Store, On Angel's Wings, 2 Crystal Lake Plaza.

11. Approved the PZC Recommendations and adopted an Ordinance granting the Final Planned Unit Development Amendment for exterior changes, Arby's, 6000 Northwest Highway.

12. Approved the PZC Recommendations and adopted an Ordinance granting the Final PUD Amendment to allow changes to the façade and signage, Bohl Farm Marketplace - Five Below, 5460 Northwest Highway.

14. Approved the PZC Recommendations and adopted an Ordinance amending Chapter 650 of the Code of Ordinances of the City of Crystal Lake for the changes to Article 2 and Article 4 regarding stealth design wireless communication antennas and a clarification about temporary parking of motor homes on residential driveways.

15. Adopted a Resolution authorizing the City Manager to execute a one-year lease agreement with Lou Street Lockup for the use of the property at 6210 Lou Street, at a rate of $2,000 per month.

16. Adopted a resolution amending the Vehicle Leasing and Replacement Program for the 2019-2020 Fiscal Year.

22. Reappointed Hamilton Hale and Bob Wyman to the Historic Preservation Commission.

13. Pingry Place Townhomes Planned Unit Development Amendment to allow changes to the approved elevations and floor plans. 

Dave Helmrich, of Metronomic, a real estate development company that has purchased the 20 lots in the Pingry Place Development and hopes to improve these undeveloped lots and assist the Homeowners Association with their façade changes to the existing 14 units to allow for repairs. He indicated that the exterior of the new units will look the same as the older units once improved. Floor plans have been changed.

Mayor Shepley asked who owns the 14 older units. Mr. Helmrich indicated that they are individually owned and the Homeowners Association represents the individual owners of the original 14 lots in making the façade improvements.

Councilman Dawson asked why the Planning and Zoning Commission gave a December 31, 2020 deadline and asked when the new building improvement will be completed. Mr. Helmrich indicated that they hope to be completed with the new buildings by the end of 2020. They have already applied for a permit on the first building (five units). Mr. Dawson asked who would be paying for the façade improvements for the existing 14 units. Mr. Helmrich said the Homeowner's Association would be paying for façade improvements for these units.

The new façade is a less expensive alternative than the original plan for the Homeowner's Association. More than likely Metronomic will be the developer, but another may be used. He indicated improvements to the existing buildings will be completed over many years.

George Sax, Secretary of the Pingry Place Homeowner's Association also spoke regarding the project. He indicated what had been stated is correct and the façade changes will be a great improvement.

Mayor Shepley asked staff to clarify that the petitioner needed to receive City Council approval of the new façade and materials, which differs from the original approvals.

Councilmember Dawson indicated the older materials are a safety issue and need to be addressed. The petitioner said a maintenance-free Hardieboard will be used. City staff indicated the proposed materials are acceptable.

Councilwoman Brady indicated that the PZC had set a date of December 31, 2020 for improvements to be completed. She said she did not want to impose a deadline that could not be met. The petitioner said language was added to indicate this is a target. Mayor Shepley indicated that the date could serve as a check-in for progress.

Councilman Hopkins stated he was concerned with parking. Director of Community Development Michelle Rentzsch indicated that the petitioner is working on the parking issue, Resolving parking issues is a condition of approval, He stated he is in favor of the project, but that the repairs on the façade have been a problem for some time. He expressed concerns regarding the Homeowners Association receiving funding for improvements to the existing units.

Mr. Sax stated they will move as quickly as possible to secure funding. Councilwoman Brady clarified that Association has an estimate for the costs and a budget and the members of the Association are in agreement with making the improvements. Costs would be covered through fees and special assessments over a four-year period. She wanted to make sure the individual homeowners are aware of the costs stemming from these improvements.

Mayor Shepley stressed that the only thing the City Council could consider was the change to the façade. As these are private properties, the City Council does not have authority to consider how the improvements are financed.

Councilman Hopkins stated he agreed with Mayor Shepley, and thanked the Council and petitioner for the discussion.

Councilman Hubbard indicated he was in favor of the project.

Councilman Haleblian indicated he liked the project and asked if they had a price point for the units. The petitioner said he was working on numbers now, that units would be leased. He stated they would serve as the management company, and would be responsible for maintaining common areas.

Mayor Shepley said he was in favor of the project, which enhances the Downtown. He indicated it would be to the petitioners' advantage to move quickly.

Councilwoman Brady moved to approve the PZC recommendation and adopt an ordinance granting the PUD Amendment to allow changes to the approved elevations and floor plans at the Pingry Place Townhomes. Councilman Hubbard seconded the motion. On roll call, all voted yes. Motion passed.

17. Purchase – Six (6) inch Portable Wastewater Pump. 

Councilwoman Brady moved to adopt a resolution authorizing the City Manager to execute an agreement with Xylem for the purchase of a Godwin 6-inch portable pump through the U.S. Government's General Service Administration Federal Supply Schedule 084, in the amount of $104,699.40 with a 10% contingency, Councilman Hubbard seconded the motion. On roll call, all voted yes. Motion passed.

18. Bid Award – Ackman/Huntley Road Path Construction.

Councilwoman Brady moved to award the Ackman/Huntley Road Path Construction bid to the lowest responsive and responsible bidder, Schroeder Asphalt Services, in the bid amount of $336,952.78, and adopt a resolution authorizing the City Manager to execute a contract with Schroeder Asphalt Services, allowing for a 10 percent contingency, Councilman Hubbard seconded the motion. On roll call, all voted yes, Motion passed.

Mayor Shepley clarified that the City put the item out for bid, but only will be paying a small portion of the costs for the project.

19. Appropriation of Motor Fuel Tax (MFT) funds for the pedestrian improvements for the AckmanRoad/Huntley Road Path. 

Councilwoman Brady moved to adopt a resolution appropriating $47,500 in MFT funds for the pedestrian improvements for the Ackman Road/Huntley Road Path. Councilman Hubbard seconded the motion, On roll call, all voted yes. Motion passed.

20. Consideration of a Resolution - Urging action to alleviate Wedgewood Subdivision Drainage Issues. 

City Manager Gary Mayerhofer explained to the Mayor and City Council this item is in response to the request made at the June 4, 2019 City Council Meeting from the Wedgewood Home Owners Association, and that City staff has spent significant time with area residents regarding this issue.

Public Works Director Mike Magnuson suminarized that several issues have been identified that will require coordination with the Village of Lakewood to resolve. He indicated that in addition to meeting with residents, staff has met with the Village of Lakewood in the past regarding this issue but the Village has not been responsive to past requests for status on any resolutions. He indicated that Lakewood had contacted the City today regarding this matter. He stated that the resolution before the City Council is a means to have accountability for both the City and Lakewood to work towards a solution.

Councilwoman Brady moved to adopt a resolution urging the Village of Lakewood to investigate water inundation issues negatively affecting the Wedgewood Subdivision and implement solutions. Councilman Hubbard seconded the motion. On roll call, all voted yes. Motion passed.

21. General Obligation Bonds, Series 2019 and the Refunding of Series 2009 A and B Bonds. 

Finance Director George Koczwara, Andrew Kim PMA Financial Advisors and Kelly Kost of Chapman and Cutler, LLP, the City's Bond Counsel, provided the Mayor and City Council an overview of the purpose of the two bond sales and the parameters ordinance.

Mr. Koczwara explained that the bonds will provide financing for several projects, including flooding improvements -- the North Shore Storm Sewer Project and the Pine/Oriole Storm Water Project, two water main improvements – Illinois Route 176 and Main Street, and McCormick Park area water main. Existing debt will also be refinanced to help the City realize a significant net savings.

Public Works Director Michael Magnuson provided an overview of the projects. Councilwoman Ferguson and Councilman Dawson expressed concerns regarding resident agreement necessary for removal of homes for the Pine/Oriole project.

Councilman Dawson asked if the bonds are approved can they only be used for these projects, or could it be used for something else. Mr. Kost explained that the bonds proceeds can only be used for these projects. However, Mr. Kost highlighted Section 16 of the Bond Ordinance outlining if a project does not go forward once the bonds are issued, the City Council can take formal action to change the projects or if a project does not go forward, the money can only be used to repay the bonds.

Mr. Koczwara noted that ss part of this bond issuance, Standard and Poor's recently reaffirined the City's AA+ rating and stable outlook. AA+ is the second highest rating a debt issuer can receive. About Crystal Lake, S&P noted: "Strong economy, with access to a broad and diverse MSA; Very strong management, with strong financial policies and practices under our Financial Management Assessment (FMA) methodology"

Mr. Koczwara explained the next steps of the process, which will include two competitive bond sales - one on June 25, 2019 and one on July 10, 2019. The ordinance will authorize the Mayor, City Manager and Finance Director to approve the sale results as long as they are in the City's best interests. A summary of the sale results will be presented to the City Council at the July 16, 2019 City Council meeting,

Mr. Kim provided the City Council with a market overview national municipal bond issuance. He indicated that is a favorable time for municipalities to bring bonds to market. He also explained the Parameters Ordinance, which authorizes the City to sell bonds as long as results of the sale fall within certain parameters, including maximum par amount, maximum annual debt service, maximum interest rate, and minimum savings percentage. If these parameters are not met, by law  the sale will not occur, The Parameters Ordinance allows the City more flexibility to take advantage of favorable interest rates while taking advantage of bank-qualified bond rates for the first bond sale.

Mayor Shepley summarized the recommendations of both City staff and the consultants.

Councilwoman Brady moved to adopt a resolution authorizing the development of a financing plan for the issuance of General Obligation Bonds, Series 2019 and the refunding of Series 2009 A and B bonds, and authorizing the City Manager to execute agreements for services related to the development of a financing plan for the issuance of General Obligation Bonds, Series 2019 and the refunding of Series 2009 A and B bonds. Councilman Hubbard seconded the motion. On roll call, Councilmembers Hopkins, Hubbard, Brady, Ferguson, Haleblian and Mayor Shepley voted yes. Councilwoman Ferguson stated her yes vote is not approval of the four projects included in the bonds. Councilman Dawson voted no. Motion passed.

Councilwoman Brady moved to adopt an Ordinance providing for the issuance of not to exceed $15,000,000 General Obligation Bonds of the City of Crystal Lake, McHenry County, Illinois, for the purpose of financing certain capital improvements within the City and refunding certain outstanding bonds of the City, providing for the levy and collection of a direct annual tax for the payment of the principal of and interest on said bonds, authorizing the sale of said bonds to the purchasers thereof and providing for the execution of an escrow agreement in connection with such issuance. Councilman Haleblian seconded the motion.

Mayor Shepley stated that property taxes are not being raised for the issuance of these bonds. These items are included in the approved fiscal year budget.

On roll call, Councilmembers Brady, Haleblian, Hubbard, Hopkins and Mayor Shepley voted yes. Councilmembers Ferguson and Dawson voted no. Motion passed.

Councilwoman Brady moved to adopt a Resolution approving a Disclosure Compliance Policy. Councilman Haleblian seconded the motion. On roll call, Councilmembers Brady, Ferguson, Haleblian, Hubbard, Hopkins and Mayor Shepley voted yes. Councilman Dawson voted no. Motion passed.

Council Inquiries and Requests. 

Councilwoman Ferguson asked about the schedule of the lighting and striping for Congress Parkway and Pingree Road. Mr. Magnuson stated Engineering will be bidding out striping later this summer and it is hoped the ComEd will work with the City regarding lighting in the next few months.

Councilwoman Ferguson asked about a workshop meeting on June 25, 2019. City Manager Mayerhofer indicated that it will be rescheduled.

Adjourn 

There being no further business, Councilwoman Brady moved to adjourn the meeting at 8:59 p.m. Councilman Hubbard seconded the motion. On voice vote, all voted yes. Motion passed.

https://ecode360.com/documents/CR2206/public/499616899.pdf