McHenry Times

City of Woodstock City Council met Sept. 16.

Here is the minutes provided by the council:

The Special City Council Workshop of the Woodstock City Council was called to order at 2:30 PM by Mayor Brian Sager on Monday, September 16, 2019 at Stage Left Café. The Agenda for this Special Meeting was posted no less than 48 hours in advance of the meeting, and the Media and all Council members were notified of the meeting.

City Clerk Smiley confirmed the agenda before the Council is a true and correct copy of the posted agenda.

A Roll Call was taken.

COUNCIL MEMBERS PRESENT: Darrin Flynn, Lisa Lohmeyer, Wendy Piersall, Jim Prindiville, Gordon Tebo, Michael Turner, and Mayor Brian Sager.

COUNCIL MEMBERS ABSENT: none

STAFF PRESENT: City Manager Roscoe Stelford, Assistant City Manager/Finance Director Paul Christensen, Economic Development Director Garrett Anderson, Public Works Department Director Jeff Van Landuyt, Building and Zoning Director Joe Napolitano, Library Director Nick Weber, Chief John Lieb, Human Resources Director Debbie Schober, Opera House Managing Director Daniel Campbell, IT Director Dan McElmeel, Assistant Public Works Director/City Engineer Ryan Livingston, City Planner Darrell Moore, Parks Superintendent Chris Lynk, Fleet Superintendent Rob Lamz, Grants/Communications Manager Terry Wilcockson and Executive Assistant Jane Howie.

OTHERS PRESENT: City Clerk Cindy Smiley

Mayor Sager noted a quorum was present. He stated this is an informal workshop session to discuss a

variety of items.

Mayor Sager expressed his pride and appreciation to the City Council for the aggressive, positive, and constructive actions taken thus far. He noted the agenda for this workshop is aggressive but is appropriate and is intended to be positive in terms of approach.

Mayor Sager noted Council has approved foundational ordinances to allow the sale of marijuana stating it was the right thing to do in terms of the UDO to identify this as a special use and to establish the taxing level. He stated there have been a number of inquiries, but nothing has been determined at this time.

Mayor Sager noted Council will be looking at a noise ordinance tomorrow night and also the bag ordinance, stating these are proactive efforts. He stated he is proud of the Council for considering these actions.

Noting there are a number of outstanding items ahead, Mayor Sager cited a Neighborhood Improvement Program, Development Review Process, and Landlord Registration Program as examples. He asked for Council’s cooperation as these are reviewed.

Mayor Sager stated this workshop will assist in laying the framework for some of these things to be looked at in coming weeks and months. He stated the intent is to derive Status Reports and staff follow-up with visions and expectations identified to turn them into action steps for Staff to move forward. Mayor Sager commended Staff for their work to ensure that Council has the information needed to consider these things.

DISCUSSION ITEMS

1. Streets – Bond Financing

City Manager Stelford stated when meeting with Council members individually many expressed concerns about using bond financing for a street program, noting as a result Staff met with a financial advisor. He stated it has become clear that many communities are using bond financing for street maintenance, making this a viable strategy.

Mr. Stelford stated Staff still needs to do more work on this to obtain even more information, and is planning to meet with IDOT to talk about the Route 47 improvements to see how much money the City will need for our share of the improvements. He noted the analysis performed by Mr. Livingston does not include funding for Route 47, but only City streets going forward. In response to a question from Councilman Turner, Mr. Stelford stated the City is probably looking at the Route 47 project going into construction in the next two or three years. Mayor Sager stated two or three years is the best-case scenario, noting federal funding could affect the City’s costs and agreed the City should have a better picture of costs after speaking with IDOT.

Ryan Livingston presented information he has obtained concerning various scenarios for street improvements. He noted the study began with looking at condition ratings for each street with levels assigned based on condition and expense. He noted the study projected out a 40-year Street Improvement Program that was based on various assumptions. Mr. Livingston stated the study focused on streets getting ready to drop into the next most expensive category, thereby reducing future costs. He noted he developed forecasts over 40 years for applying available CIP fund and also bonding.

Mr. Livingston stated three approaches were identified to complete the needed street improvements, providing information on costs, amount required, and available funds for each over the 40 years. He opined the study concluded the best method would be a balanced approach, providing various levels of funding throughout the different categories of streets.

Mayor Sager stated it is important to get in front of this issue, noting the City must face the fact that it must infuse a major amount of funds. He talked about the cost of improving streets in the order of rating, (i.e. treating failed streets first vs. the costs to prevent streets from dropping in condition rating). Discussion followed of the various scenarios, including costs involved and possible results. Mayor Sager noted a couple of years ago the City Council made the decision to begin to try to prolong the life of good streets. He stated now it is important to decide on the strategy to use to improve the streets. Mayor Sager stated Staff is recommending the best way to use the City’s limited resources is to continue to conduct maintenance efforts, but also to focus on the poor to base failure street categories. He noted the categories above will be handled with maintenance. He stated by focusing on these categories, they will move up to the higher categories. Mayor Sager noted the City will still have failed streets, stating some will question why the City is not concentrating on failed streets. He emphasized these streets will not be ignored, but the primary budget focus will be working on the poor to base failure streets. He noted this is the primary recommendation of Staff.

In response to a question from Councilman Tebo, Mr. Livingston stated the City is currently spending $2 million on streets with 60% of the funds going to bring failed streets to excellent and the rest going to prevention (i.e., 10% on resurfacing, 60% on very poor to failed, 30% on preventative maintenance).

Mayor Sager stated Council is aware that this problem is so large that it will require a major infusion of funds to move forward. Noting conversations with Staff concerning bonding and revenues sources, Mayor Sager requested further information from Mr. Stelford. Mr. Stelford noted the State increase in the MFT, a portion of which will be passed on to the City, could be devoted to a bond payment. He talked about how this will affect contracts for major projects and engineering, noting how the very poor to failed pavement requires engineering and experience cost increases over times. He noted larger jobs are affected by more factors than smaller jobs. Mr. Stelford stated this also would present challenges to the Water & Sewer Fund, as it would make sense to work on the water/sewer lines when doing large streets projects.

Noting this is a complicated issue, Mayor Sager stated Council must review street improvements in relation to other utilities, opining opportunities for revenue and financing must be looked at realistically. He asked for discussion on bonding, with a potential of up to $50 - $55 million over the next five years, with a $10 million bonding commitment in the first year to move the City’s roads into the future.

Councilman Turner advocated for an injection of additional funds. He noted the City has had to stretch its limited budget, but bonds coming off the books in the near future will give the City an opportunity to do this type of program. He advocated for dedicating a portion of the Home Rule sales tax toward this bond payment. Mayor Sager agreed, but noted Staff is concerned about how to deal with this program and future CIP needs. He noted if the City were to commit to the maximum debt amount, the annual debt service payment would be $3.75 million, based on a 20 year repayment schedule.

Councilman Turner stated he is open to this approach, suggesting 1) additional MFT funds are dedicated to streets; 2) a one-time PTELL increase used for the bonds; and 3) a future discussion regarding fees.

Mayor Sager stated the City must look at the big picture first and ask if we are willing to make this commitment and then charge Staff to look at opportunities for funding to see how we can do this. He stated the City cannot just say it will drop certain areas of the CIP Program in favor of this. He noted there must be funds to support the City’s current CIP Program. Mr. Christensen provided estimates for various revenue scenarios including the Capital Bill, MFT, and Home Rule Sales Tax and how this would affect the CIP Program and Route 47 improvements.

Mayor Sager discussed how this would affect construction, noting it could result in a longer construction season and create more interest from contractors. He also discussed the possible advantages in letting bids and in timing for these larger projects.

In response to a question from Councilwoman Piersall, Mayor Sager agreed this proposal could affect other projects Council has discussed, which would need to be reviewed. He noted funds must be dedicated to the CIP Program and Council must decide on the major priorities. A brief discussion ensued of other CIP projects.

Noting there are many details, Mayor Sager asked Council to focus on the big picture to decide if they are willing to explore this path and then give direction to Staff to gather information on how to get this done and bring it back to Council for future discussion. He stated the purpose of this discussion is to provide direction for Staff for the future.

In response to the a question from Mayor Sager, it was the consensus of Council to support the improvement method recommended by Staff as identified, knowing funding must be identified.

In response to a question from Mayor Sager, it was the consensus of Council that a significant injection of funds will be needed from bonding in order to make the improvements necessary and demanded by the residents and businesses.

In response to a question from Mayor Sager, it was the consensus of Council to consider a level of investment at a bonding capacity of $10 million per annum for five years.

In response to a question from Mayor Sager, it was the consensus of the Council to discuss the revenue commitment in terms of bond payment including MFT, sales tax, and MFT from the State, and to ask Staff to investigate additional revenue capacity to pay bonds.

In response to a question from Mayor Sager, it was the consensus of the Council that out of the current Home Rule Sales Tax collections, the City is looking at devoting $500,000 to the CIP Program for other infrastructure projects.

2. Compensation Study

Mayor Sager discussed the need for this Compensation Study, noting one had not been performed for over 15 years. He noted this ensures the City is competitive and appropriately compensates its employees. Mr. Stelford discussed why it was important to secure the services of an outside consultant to perform the study.

Human Resources Director Deb Schober noted this was a pivotal point in her career and one of the top five projects she has completed, stating it was her honor to do so. She provided information on the results of the study, stating employees will receive training on this on October 7th, noting the study and the resulting new pay structure will be explained. She noted this study focused on non-represented, year-round employees. Ms. Schober stated the next phase will include updating the City’s job descriptions, describing this process further.

Ms. Schober stated it is her recommendation that any pay changes needed to bring an employee to the minimum become effective October 28th, providing information on the resultant cost for the remainder of the fiscal year, noting sufficient funds were budgeted for the implementation of this study. She stated all recommended adjustments will be done in this fiscal year. Ms. Schober explained the impact this will have on salaries and discussed communicating this to the employees.

Mayor Sager thanked Ms. Schober for her summary and her work on this project, noting it is timely given State action and the City’s need to be able to hire and keep quality staff. He noted these are important things to consider at tomorrow evening’s Council meeting. He expressed his support of the study and the recommendations made.

In response to a question from Councilman Turner, Ms. Schober stated this is the most difficult time she has ever had in recruiting, noting the low unemployment rate. She explained some the difficulties and some of the reasons, including competition from other communities. She opined it is a balancing act that has become more difficult.

A brief discussion followed of certain positions and classifications and the effect of the study. Mayor Sager stated staff must evaluate how this can be done within the current Budget. He stated today’s discussion is looking at the Compensation Study with the question being whether the City will be in concert with the minimum wage plan and the Compensation Study. Further discussion ensued with the Mayor noting there will be staff and budgetary decisions to be made, with the hardest part not being commissioning the study, but rather putting it in place should the Council approve it. He opined the City has high expectations for its Staff and needs to compensate it as such.

3. Bumpouts

Public Works Director Jeff Van Landuyt, joined by Parks Superintendent Chris Lynk, gave an update on the work being done on the bumpouts on the Square. Mr. Van Landuyt noted in response to concerns expressed by a resident, Mr. Lynk made inquiries and visits to other municipalities with similar streetscape areas. Mr. Van Landuyt stated Nicor did work that impacted the bumpouts and also discussed the effect events have on the Park in the Square, including bare spots.

Mr. Van Landuyt provided a history of what was done in the fall of 2018 and spring of 2019, stating the bumpouts were thinned and replanted, including the placement of 900 annual and perennial flower bulbs. He noted there was a near zero-percent success rate for growth and bloom of these plantings. Mr. Van Landuyt stated Mr. Lynk investigated the reasons for the failed plantings, detailing the steps taken. He also detailed the steps taken to overcome this challenge, noting to date 10 bumpouts have been refurbished by Parks and Facilities Staff. He noted cobblestones have been added to bumpouts to retain mulch and help control erosion.

Mr. Van Landuyt stated a formal plan for regular maintenance and continued long-term improvements will be established, describing potential solutions and identifying programs to move forward. He noted when speaking with municipalities, it was learned that most are supplementing their Staff with a professional service, volunteer committees, or retail sponsorship and maintenance of plantings. He noted Mr. Lynk and the Parks Staff have many other duties such as field maintenance and mowing, noting it may be time to put outside help in the Budget. He opined perhaps the beds will have to be replanted two or three times per year to keep them looking good, along with the installation of some type of irrigation system.

Mayor Sager thanked Mr. Van Landuyt and Mr. Lynk for their presentation, stating he realizes the challenges they face with the many significant projects for which they are responsible. He expressed support of the points made by Mr. Van Landuyt, opining the City cannot expect current Staff to add this project as an additional requirement. He stated Council should discuss whether it would be appropriate to hire additional seasonal staff whose job it is to deal with Downtown landscaping or whether it would be better to subcontract this to the outside. He expressed opposition to retail sponsorships of the bumpouts and to the use of volunteer groups for this.

In response to Councilman Tebo’s statement that people step into dirt when parking by the bumpouts, Mr. Lynk noted Public Works’ Staff has identified this and is taking steps to remedy.

Councilwoman Piersall stated the person who brought his concerns about this forward at a Council meeting has contacted her to say he has seen much improvement.

Councilwoman Lohmeyer expressed her concern with letting businesses sponsor and advertise in plantings, especially with cohesiveness.

Councilman Flynn stated he would like to see all bumpouts the same and consistent.

Councilman Prindiville advocated for more hard surface to walk on, opining it would be better to use pavers rather than the cobblestones.

4. Neighborhood Redevelopment

Mayor Sager stated this is a major priority of the City Council. Mr. Stelford stated Building and Zoning took the lead on this project, asking Director Joe Napolitano to provide additional information.

Mr. Napolitano stated Staff looked at other communities who have implemented a Neighborhood Improvement Program. He stated the purpose of such a program would be to improve the appearance of the City’s neighborhoods, stating his department’s Code Enforcement Officer, City Manager Stelford, and the Police Department studied various neighborhoods in an effort to determine a Pilot Program Area using the following criteria: overall visual appearance, Police calls for service, Census data, and owner vs. rental. He said the area with general boundaries between Judd, Calhoun, Madison, and Route 47 is recommended as the Pilot Area.

Mr. Napolitano discussed recommendations for who should be eligible for assistance with this program including owner-occupied properties. He noted items to be discussed include eligibility of owners of rental properties and income limitations, stating the majority of programs offered are done through CDBG and have income limitations. He then discussed the application process, noting it is recommended it include demonstration of need and meeting established criteria. He stated under this proposal a committee would be established to select projects, including prioritization.

Mr. Napolitano then provided information on possible types of financial assistance including grants, low-interest loans, and forgivable loans.

Discussing a budget for such a program, Mr. Napolitano opined it would be important to have funds available to do more than just one or two houses. He noted funding is dependent upon the City’s potential partners, stating McHenry County, through the CDBG Program, and Habitat for Humanity are two potential funding partners. He provided additional information on these programs. He also provided information on other potential partners including local stores and volunteer organizations.

Mr. Napolitano noted the next steps to be Community Outreach, including gauging the interest of the residents in the Pilot Program Area; working with McHenry County on a CDBG funding application; and working with Habitat for Humanity, with a target date of the summer of 2020 for implementation.

Mayor Sager expressed appreciation to Mr. Napolitano and other Staff for their efforts on this program. In response to his question, it was the consensus of the City Council to support this pilot program for implementation in 2020.

Mayor Sager stated he appreciates the Plan’s outreach to local partners and the usage of volunteers. He noted this will provide motivation for other areas in the community.

Discussion followed of developing a possible theme for the neighborhood including the use of planned elements. It was opined this could tie things together and give the neighborhood a sense of working together to make the neighborhood unique.

Mayor Sager noted this is the initial foray into a Neighborhood Improvement Program and consideration must be made of funding sources.

Councilman Turner opined there may be some property tax leverage for this program, urging Staff to be creative.

Councilman Prindiville opined the neighborhood meeting will be very important, suggesting getting a theme or name from neighborhood residents. He suggested it might be good to focus on owner- occupied, but expressed his wish not to leave rental properties behind. He opined this is a Program residents want to see.

In response to a question from Mayor Sager, it was the consensus of the City Council that there is a strong commitment for Staff to continue efforts to move forward with this Program.

5. RFP for Old Courthouse

City Planner Darrell Moore gave an update on the current masonry project. He then gave an update on the RFP process.

Mr. Moore noted the Old Courthouse Commission made a recommendation for uses for the Old Courthouse and a funding structure. He stated in order for this to work, the City must obtain Historic Tax Credits from the State and Federal governments, noting detailed architectural drawings are needed to qualify for these. He stated the Old Courthouse Commission will be formally interviewing architects and making a recommendation to the City Council, after which the City could enter into a contract, with the goal being to have drawings by early 2020 to send to the National Parks Department and Department of Interior for their review. He noted the City then will have everything together for submittal to the State, stating the application period will open in June of 2020. Mr. Moore stated it is felt the City has a very strong application based upon qualifying criteria. He noted while working on the architectural elements, work will also proceed on putting out a call for more tenants that can fill the space the City will be renovating.

Mr. Moore stated RFP materials are being professionally prepared by a5, noting it is hoped they will go out in October. He provided more information on the materials, including their costs. He stated it is wished to get the materials into as many hands as possible, and noted a website is being created, which will have a look consistent with the printed materials. He also discussed the use of social media.

Discussion followed of the materials, their use, and who they should go to. Councilman Turner urged the use of targeted marketing. Mayor Sager urged a balanced approach. Mr. Moore stated the key to the materials is to drive people to the website, which will provide more information, with the key to the website being to get people to call so they may be given a tour.

Councilman Turner urged Staff to be ambitious and to tighten up the marketing. He opined if the objective is to get the highest and best use for the buildings, the materials will have to be professional and cast a wide net. He stated Council should talk about a budget for this.

Councilman Flynn urged Staff to look to Woodstock businesses.

Councilwoman Lohmeyer stated Staff should not shy away from white boxing some of the spaces.

In response to a question from Councilman Prindiville, Mr. Moore provided more information on the process, noting per federal regulations it is not necessary to go out for an RFQ for the architect, explaining this further.

Mr. Christensen provided information on the process to apply for Historic Tax Credits, noting Staff is working with a tax attorney and the City Attorney.

In response to a question from Councilman Turner, Economic Development Director Garrett Anderson talked about possible incentives.

Councilman Prindiville expressed his disagreement with the City’s direction for this project.

In response to a question from Mayor Sager, it was the consensus of the City Council to move forward aggressively in terms of application, aggressively look for Historic Tax Credit opportunities, move forward with marketing efforts, noting the comments made by Council, and move forward in terms of an aggressive schedule in this coming fiscal-year cycle. Mayor Sager noted Councilman Prindiville’s comments.

In response to a question from Councilman Flynn, Mr. Moore stated it is hoped space will remain available for the art gallery tenant in an arts-focused community center.

6. Revolving Loan Amendments

Mr. Stelford explained a situation has arisen regarding a request to modify the payments for a revolving loan. Stating he does not have the authority to modify the loan, Mr. Stelford stated he would like to ask Council to ratify the Administration’s decision to modify the loan agreement.

In response to a question from Mayor Sager, it was the consensus of the City Council to modify this agreement and to review this process in the future.

7. Development Review Process

Opining there will be increased interest in development within Woodstock, Mayor Sager stated in the history of the City Council there has been a preliminary review process, discussing this further. He noted the wish today is to have a brief discussion and have the topic come back to the Council for discussion of a process, which would allow an opportunity to look at new projects.

Mr. Stelford explained this in more detail, noting such a preliminary review is now voluntary and asking whether Council wishes it to become mandatory.

Councilman Turner stated he does not feel it must be mandatory, noting he would leave it to the Mayor and the City Manager to suggest that a developer do a preliminary review with Council. Councilman Prindiville agreed the process should be available and encouraged, but not mandatory. Councilman Flynn stated he would like a score card to come before Council, opining there should be certain established criteria, with Council being informed as to what has happened, and that there has been no deviation from them.

In response to a question from Mayor Sager, it was the consensus of Council that Staff be encouraged to continue to move this forward, with Council to have a pre-concept review opportunity.

8. Other Matters

Mayor Sager stated the City has been dealing with a challenging issue regarding the maintenance of detention ponds for some time. He noted there are homeowners’ associations who have responsibility for these areas, but have not taken on that responsibility, giving some examples. Mayor Sager opined it is a very difficult thing for the City to get involved in the maintenance of a large number of these areas within the City because it is the responsibility of the homeowners’ associations rather than the

other taxpayers of the City. He opined this is a civil matter up to the courts. He noted there are ramifications to the City because these could cause drainage issues, giving the City just cause for legal action. He asked for comments from the Council.

Councilman Flynn opined this should go back to the homeowners’ association with the City taking civil recourse if needed.

Councilman Prindiville stated he would like to see the City try to negotiate this, getting the people involved to talk with each other. Mayor Sager stated he is not suggesting that the City cannot play a role in getting people together, but opined if this is not realistic, the City must step back and say civil legal action is their recourse. He stated the City cannot come to the financial aid of the associations. In response to Councilman Prindiville’s statement that telling people that it is their problem is harsh, Councilman Flynn noted this is private property. Mayor Sager stated he is not opposed to facilitating discussions, but noted he has a hard time placing the financial responsibility for a homeowners’ association on all of the taxpayers.

ADJOURN

Motion by M. Turner, second by G. Tebo, to adjourn this Special Workshop of the Woodstock City Council to the next regular meeting on Tuesday, September 17, 2019, at 7:00 PM in the Council Chambers at Woodstock City Call.

A vote was taken. Ayes: D. Flynn, L. Lohmeyer, W. Piersall, J. Prindiville, G. Tebo, M. Turner, and Mayor B. Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried.

The meeting was adjourned at 5:37 PM

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