McHenry Times

City of Crystal Lake City Council met Aug. 6.

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, Haig Haleblian, Brett Hopkins and Cameron Hubbard were present. Councilwoman Cathy Ferguson was absent. City Clerk Nick Kachiroubas was present.

Also present were City Manager Gary Mayerhofer, City Attorney John Cowlin, Director of Finance George Koczwara, Director of Community Development Michelle Rentzsch, Director of Public Works Mike Magnuson, City Engineer Abby Wilgreen, Chief of Police Jim Black, and Vic Filippini, special counsel.

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

Approval of Minutes Councilman Hopkins moved to approve the minutes of the July 16, 2019 Regular City Council meeting, the April 4, 2019 Budget Workshop Meeting and the September 11, 2018 Workshop Meeting. Councilman Hubbard seconded the motion. On voice vote, all present voted yes. Motion passed.

Accounts Payable Councilman Hopkins moved to approve the Accounts Payable in the amount of $2,148,044.44. Councilman Hubbard 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 McHenry Hospital 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 was considered. No one wished to speak.

Mayor's Report 

None.

City Council Reports 

None.

Consent Agenda Councilwoman Brady moved to approve a Consent Agenda consisting of Items 9a and 9b, with the addition of Items 10, 11, and 14. Councilman Haleblian 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. No one wished to comment. On roll call, all present voted yes. Motion passed.

9. a. Approved the Annexation Public Hearing Continuations for 1) Chicago Title Land

Trusts 1004004149 & 1004004152 and 2) Reinhardt/Kirk requests to the September 3,2019 City Council meeting for the Annexation Public Hearings.

b. Approved the issuance of a Class 16 Temporary Liquor License to the Crystal Lake Teen Center (The BREAK), Oktoberfest at Main Beach, 300 Lakeshore Drive, September 14, 2019.

10. Approved the issuance of a Class 16 Temporary Liquor License to Fire Wagon Hockey Inc., Annual Fundraiser at Crystal Ice House, 320 E. Prairie Street, August 10, 2019.

11. Approved the PZC recommendation and adopted an Ordinance granting the Special Use Permit for the building addition at 820 Darlington Lane, Coventry Elementary School.

14. Adopted a resolution authorizing the City Manager to accept donations of fitness equipment in the estimated value amount of $35,700, from Fitness Specialist Inc., per City Code Chapter 102. Also, adopted a resolution designating the items identified in Exhibit "A" as surplus property.

Mayor Shepley thanked Fitness Specialist Inc. for the equipment donation.

12. Bid Award - Stormwater Solutions: North Shore Storm Sewer Construction

Councilwoman Brady moved to award the North Shore Storm Sewer Construction bid to the lowest responsive and responsible bidder, Copenhaver Construction, in the bid amount of $1,728,852.50, and adopt a resolution authorizing the City Manager to execute a contract with Copenhaver Construction, allowing for a 10 percent contingency. Councilman Hopkins seconded the motion. On roll call, all present voted yes. Motion passed.

Councilmember Dawson stated he had talked to a representative of the North Shore who had expressed hope that this item would pass.

13. Various Storm Water Projects - Phase 3 Consultant Selection

Councilwoman Brady moved to award the proposal for the Various Stormwater Solutions Projects for Phase III Construction Engineering to the most qualified, responsible and responsive proposer, Christopher B. Burke Engineering, Ltd., and adopt a resolution authorizing the City Manager to execute an agreement with Christopher B. Burke Engineering, Ltd., in the amount of $136,083.00 and approve changes in scope by 10 percent of the original price. Councilman Haleblian seconded the motion. On roll call, all present voted yes. Motion passed.

15. Unified Development Ordinance (UDO) Amendment – Rezoning around Three Oaks Recreation Area Planned Unit Development District Overlay 

Mayor Shepley provided information regarding the origin of the Amendment and asked Director of Community Development Michelle Rentzsch to provide additional information.

Ms. Rentzsch explained the Planning and Zoning Commission reviewed the Vulcan Lakes TIF District, Comprehensive Land Use Plan and Zoning Ordinance and unanimously recommended to amend the Unified Development Ordinance and establish the Three PUD Overlay District and to include the Crystal Court Shopping Center Corridor. She outlined that the Overlay District would add a Planned Unit Development zoning component to parcels included in the area, which would not impact existing businesses, but would come into play when a parcel or parcels are redeveloped.

Mayor Shepley explained adding a Planned Unit Development (PUD) component requires properties to receive approvals to certain alterations to properties.

Councilwoman Brady moved to approve the PZC recommendation and adopt an ordinance amending Chapter 650 UDO to establish the Three Oaks PUD Overlay District and referring to the PZC the extension of the PUD overlay to the Crystal Court Shopping Center property. Councilman Hubbard seconded the motion. On roll call, Councilmembers Hopkins, Dawson, Brady, and Hubbard and Mayor Shepley voted yes. Councilmember Haleblian abstained. Motion passed.

16. Cannabis Regulation and Tax Act

Mayor Shepley asked the City's special counsel Vic Filippini to provide an overview of the Cannabis Regulation and Tax Act, which impacts all municipalities in the State of Illinois. Mr. Filippini explained that the Act, which was signed into law earlier this year, is a comprehensive State-wide law covering all cannabis activity other than medical marijuana, which is covered by legislation passed several years ago. It includes regulations on use and how the property is to be operated and regulated.

The Act is State wide but there are opportunities for limited local control. The kick-off date is January 1, 2020, however, some activities have already started with applications and licensing

It is important to note that home rule powers are pre-empted in the Act, and there are limited areas for local regulation except through zoning. There is little municipalities can do other than mirror the State in terms of regulation.

There are taxes that would be distributed to local governments even if they do not participate in. Funds are ear marked for certain uses relating to cannabis. In addition to distributive funds, the Act allows for a local cannabis retailers occupation tax of up to 3 percent, which is on the dispensary/sale of cannabis if you have a licensed facility in your municipality.

Local governments cannot prohibit home cultivation for those registered by the state for medical uses, and cannot prohibit recreational use more restrictively than the Act allows. The Act allows local governments to limit and prohibit through land use and zoning restrictions.

Mayor Shepley compared the City's control with the Act to that of adult uses. Mr. Filippini said the City would have less control on adult uses with zoning, but more control on adult uses regulations. He indicated we have less authority on regulation in the Cannabis Regulation and Tax Act.

There is no deadline to act, but as of August 9, 2019, existing medical marijuana facilities can apply to the State for a secondary Cannabis Business site. There is some urgency to prohibit or review in order to prevent someone to claim there is a vested right for a business,

Mr. Filippini outlined options presented to the Council for action: 1) adoption of a redflag resolution to allow for further consideration. The resolution would prevent someone from asserting a right to move forward with a dispensary or other cannabis business. 2) prohibition of Cannabis Businesses within the City limits.

Councilman Dawson asked for further details regarding the difference between the two options. Mr. Filippini indicated that the redflag resolution is the first step in referring back to the PZC for further consideration as it is dealing with potential zoning impacts. This could still result in prohibition, but allows for exploration, where prohibition would not allow any cannabis businesses in the City limits outright.

Mayor Shepley said he is not happy with the Act and this is an example of how the State is a broken state, and an easy way out of existing problems. He stated that surrounding communities are exploring the issue further and Crystal Lake should as well. He compared it to how the City Council handled video gambling, taking things slow and working to develop a process instead of jumping right in. He said due diligence needs to be completed to see if an ordinance can be developed tailored to the community.

Councilman Dawson said on the surface he does not support it, but may with additional review. He said he felt that this is an opportunity for the State to make money.

Councilwoman Brady asked if other States were in similar financial situations when marijuana legislation was adopted. She said that this may be the wave of the future and so it is beneficial for the City to study it further.

Councilman Hopkins said he has no issues with referring a resolution to the PZC for further exploration and learn more about the issue.

Councilman Hubbard agreed this was something that needed to be done and not left entirely to the State.

Councilman Haleblian said he was in favor of the resolution. He stated that he has been to dispensaries in Oregon and stated as long as regulations are developed that are safe and above-board he is ok. He agreed with Councilwoman Brady regarding other states adopting marijuana laws and this being a trend.

Councilwoman Brady moved to adopt a resolution referring the matter to a future PZC meeting for a public hearing of the appropriate zoning regulations for this use. Councilman Hubbard seconded the motion. On roll call, all present voted yes.

17. Crystal Creek Culverts Removal and Replacement Change Order

Councilwoman Brady moved to adopt a Resolution authorizing a Change Order to a Construction Contract by and between the City of Crystal Lake and Copenhaver Construction Inc., for work related to the Crystal Creek Culvert Removal and Replacement Project and authorize the City Manager to execute said Change Order for a new contract amount of $1,611,815.83 with a 10 percent contingency; and adopt an ordinance for a corresponding budget amendment. Councilman Hopkins seconded the motion.

Mayor Shepley asked City Manager Gary Mayerhofer to review the item. Mr. Mayerhofer said there is a need for a change order and budget amendment for the ongoing culvert project. There were issues with the survey completed for the project. He indicated that the consultant is agreeable to pay overages above the amount the City would have paid if the items were included in the original bid. He stated the City is not happy the situation has occurred, and that a change order has not happened in a long time. Staff was disappointed with Thompson Surveying who will be paying for costs incurred.

Public Works Director Michael Magnusson also said some of the issues were related to utility companies, which the City will be going after for delays. Situations arose where the City was provided with information that a location was clear of utilities and that was not the case.

Mayor Shepley stated this happens frequently with utility companies holding up construction projects.

Councilman Dawson stated the additional monies are coming from the survey company and and Christopher Burke for the redesign of the project are minimal considering the costs being incurred. He said the City should have known the location of the sewer, with the old line having been there for approximately 75 years. He indicated that the overages are not acceptable.

Councilwoman Brady said she would like to discuss the project after the vote.

Councilman Hopkins asked what the likelihood was the City would be able to recoup costs from AT&T and Nicor. City Engineer Abigail Wilgreen stated that the City was able to recoup costs from AT&T for delays during the Crystal Lake Avenue project, so she is confident the City will be able to do so for this project.

Councilman Hubbard asked about negotiating the costs. Ms. Wilgreen indicated that included in the $173,039.039 to paid be the City includes the change orders from the utilities as well as the pumping change order for the Country Club and Broadway Avenue culverts that was completed in the spring due to excessive rain amounts. The $159,976.00 mentioned by the City Manager is a cost determined using IDOT pricing that the City would have incurred if it was known the sewer was in conflict originally. The remaining monies will be paid by Thompson Survey. She said the $173,039.39 is the maximum the City will pay for the sanitary sewer relocation. Anything above that will be paid by Thompson

Councilman Halelblian indicated he understands things happen, but he has a hard time paying additional monies when there was a bid for the work.

Councilwoman Brady asked if we have had concerns with the contractor on the project as more projects were awarded to them at this meeting. Ms. Wilgreen said none of the change orders listed were the fault of the contractor.

Councilmembers Hubbard, Haleblian, Brady, and Hopkins, and Mayor Shepley voted yes. Councilmember Dawson voted no. Motion passed.

Councilwoman Brady stated it is like a freeway near the project now. No one is following the detour route. She indicated there are a number of cars cutting through, but it is also hard for residents living in the project area. She asked what can be done to help with the traffic, especially with the project being extended into September.

Ms. Wilgreen indicated that the Dartmoor Drive portion of the project will be completed in September, but she is hopeful the McHenry Avenue portion will be completed next week.

Councilwoman Brady asked about plans for students who will be starting school soon. Ms. Wilgreen said they will have to utilize McHenry Avenue when it opens. The City has been working with the school district and there will be a bus service for students who usually walk to school along Dartmoor Drive. All impacted parents in the Coventry area have been notified. She said the school has been very helpful throughout this process.

Police Chief James Black indicated the Department can post cars at this location to help with cut through traffic.

Council Inquiries and Requests 

Councilman Dawson asked if the Barlina Road Culvert is complete. He said the roadway is terrible. Ms. Wilgreen said there are several restoration items to be completed.

Mr. Dawson asked staff to please look at this location, as the roadway is unacceptable. Ms. Wilgreen said staff will do so.

Adjourn to Executive Session for the purpose of discussing matters of pending and probable litigation 

Councilwoman Brady moved to adjourn to Executive Session at 8:17 p.m. Councilman Hopkins seconded the motion. On roll call, all present voted yes. Motion passed.

Reconvene in Regular Session 

Councilwoman Brady moved to reconvene to Regular Session. Councilman Hopkins seconded the motion. On roll call, all present voted yes. The Council reconvened at 8:37 p.m.

Adjourn

There being no further business, Councilwoman Brady moved to adjourn the meeting at 8:38 p.m. Councilman Haleblian seconded the motion. On voice vote, all voted yes, Motion passed.

https://ecode360.com/documents/CR2206/public/504104859.pdf