McHenry Times

City of Crystal Lake City Council met May 2

Here are the minutes provided by the council:

Call to Order

Mayor Haleblian called the meeting to order at 7:00 p.m.

Roll Call

Mayor Haig Haleblian, Councilmembers Ellen Brady, Brett Hopkins, Mandy Montford, and Ian Philpot were present. Councilman Cameron Hubbard was absent. City Clerk Nick Kachiroubas was also absent.

City Manager Eric Helm, Assistant City Manager Nick Hammonds, Director of Public Works and Engineering Michael Magnuson, Director of Community Development Kathryn Cowlin, Finance Director Jodie Hartman, Police Chief James Black, Fire Rescue Chief Paul DeRaedt, and City Attorney John Cowlin were also present. Special Legal Counsel Victor Filippini was present telephonically.

Pledge of Allegiance

Hawley Haleblian, Councilwoman Brady's grandchildren, Councilwoman Smith's children, Judge James Cow lin and Judge Justin Hansen, led the City Council and the audience in the Pledge of Allegiance.

Oaths of Office

Mayor Haleblian and City Councilmembers Ellen Brady, Brett Hopkins and Denise Smith took the Oaths of Office.

Approval of Minutes

Councilwoman Montford moved to approve the minutes of the April 18, 2023 Regular City Council Meeting. Councilman Hopkins seconded the motion. On roll call, all present voted yes. Motion passed.

Accounts Payable

Councilman Hopkins moved to approve the Accounts Payable in the amount of $2,139,516.41. Councilwoman Montford seconded the motion. On roll call, all present voted yes. Motion passed.

Public Presentation

None.

Mayor's Report

Mayor Haleblian wished City Clerk Kachiroubas and Councilwoman Brady Happy Birthday. In addition, Mayor Haleblian said May 4th marks the third anniversary of Mayor Shepley's passing. He said he misses him and not a day goes by that he does not think of him, and that he set a precedent for the City and set things on a good path forward.

City Council Reports

None.

Consent Agenda

Councilwoman Brady moved to approve a Consent Agenda, including Items l0a, l0b, 10c and 10d, and adding Items 11,12,13,14,15,16,17. Councilman Hopkins seconded the motion.

Mayor Haleblian asked if anyone wished to speak on the Consent Agenda. No one wished to speak. On roll call, all present voted yes. Motion passed.

l0a. Approved a waiver of fees for District 155 students associated with the Prairie Ridge High School Fishing Tournament, to be held on Saturday, May 6, 2023, from 7:00 a.m. to 10:00 a.m., and a waiver of fees for an additional weekday fishing tournament for District 155 students at Three Oaks Recreation Area, subject to the recommended conditions, for a total fee waiver request of$310.

l0b. Approved the 2023 Crystal Lake Central Homecoming Parade to be held on Saturday, September 16, 2023, as requested subject to the conditions contained in this agenda supplement and a waiver of the Police Department chargeback fees (-$1,403.04).

10c. Approved the 2023 Crystal Lake South Homecoming Parade to be held on Monday, September 18, 2023, as requested subject to the conditions contained in this agenda supplement and a waiver of the Police Department chargeback fees (-$1,516.82).

10d. Approved the 2023 Prairie Ridge Homecoming Parade to be held on Friday, September 29, 2023, as requested subject to the conditions contained in this agenda supplement and a waiver of the Police Department chargeback fees (-$891.09).

11. Approved the following requests for the 2023 Lakeside Festival to be held June 29 through July 2,2023: The application for a special event pursuant to staff recommended conditions, and a waiver of the Police chargeback fees ($19,567.42) for the Police Officers assigned to the festival.

12. Adopted an Ordinance waiving competitive bidding and: 1} approving an extension of the contract with a5 Branding + Digital for marketing services in the not-to-exceed amount of $69,000 and authorizing execution of the contract by the City Manager; and 2} authorizing the City Manager to implement the marketing initiatives in the not-to-exceed amount of $86,000 recently approved in the FY23-24 Budget.

13. Adopted a Resolution approving a five-year lease agreement, with three optional five year extension terms, with Breaking Bread Catering and Deli, and authorizing the City Manager to execute the lease agreement.

14. Adopted a Resolution approving a change order to the Year 2 contract with Patriot Pavement in the amount of$17,000 increasing the total compensation to $67,000 for the 2023 Crack Sealing program.

15. Adopted a Resolution approving an Agreement for use of Right-of Way between the City of Crystal Lake and i3 Broadband and authorizing the City Manager to execute said Agreement.

16. Awarded the proposal for the Dole Avenue Reconstruction Project Phase III Construction Engineering Services to the most qualified, responsible and responsive proposer, Baxter & Woodman, Inc., and adopt a Resolution authorizing the City Manager to execute an agreement with Baxter & Woodman, Inc. in the amount of $682,390.00 with a 10-percent contingency for changes in scope and approve warranted completion date extensions.

17. Adopted a Resolution authorizing the City Manager to accept two donations, each in the amount of $15,000 designated for the expansion of the 2023 Independence Day Fireworks Show, per City Code Chapter 102.

Adopted a Resolution authorizing the City Manager to execute a contract amendment with American Fireworks for an additional amount of $30,000, with a total contract price of $60,000 for the 2023 Independence Day Fireworks Show and a corresponding Budget Amendment to increase the budgeted amount for the 2023 fireworks display to $60,000 for fiscal year 23/24 and authorizing the City Manager to approve up to 10 percent in justifiable contract amendments from a contingency allowance.

City Manager Helm clarified the motion for Agenda Item 17.

Mr. Ron Russell congratulated the Mayor and City Council and thanked them for the approval of the 2023 Lakeside Fest.

18. Outdoor seating at various locations on public propertv - Discussion Only

Community Development Director Kathryn Cowlin provided a review of outdoor seating approvals from the past year, mostly in the downtown area. She indicated that City staff has received primarily positive feedback regarding outstide seating areas. A few concerns were received regarding seating at Cafe Olympic, but issues have been resolved.

Mayor Haleblian asked if anyone from the public wished to comment on this issue. No one wished to speak.

Councilman Hopkins asked if there are any changes to the seating at Jude's. Ms. Cowlin said the seating in front of Jude's remains the same. However, use of space in front of the Material Girl location is a Special Use Permit and requires the approval of the business owner. When ownership changes they will need to work with the new property owner.

Councilman Philpot said he loves what has been done. He said he supports granting the downtown area the ability to have outdoor seating without going to the City Council, as long as permits from staff are obtained.

Mayor Haleblian said he agrees with Councilman Philpot and inquired about businesses north of the railroad tracks using public space. Ms. Cowlin said there are several businesses there that have outdoor seating on private property. Staff has received inquiries from the Junction and Moontime for outside seating on public property, which is required to go to the City Council by the City Code.

Mayor Haleblian asked about DaBaffone. Ms. Cowlin said it is tight in front of the property, but the business may be interested utilizing the back of the property.

19. Lead Service Replacement Policy for City Capital Projects

Public Works and Engineering Director Mike Magnuson said staff is looking for direction regarding the funding for the replacement of lead service lines as part of the Dole Avenue Reconstruction Project.

He explained there are two mandates included as part of Public Act 102-613. First, the City must offer to replace, but not necessarily fund, replacement of service lines on the private side (from curb stop to the house). In addition, all service lines must be replaced starting in 2027 with annual number to be replaced based on the total number of service lines in the municipality. Crystal Lake must have them replaced over 17 years - by 2044.

The first mandate impacts the Dole A venue Reconstruction Project, as service lines will be disturbed with the water main replacement. The IEPA requires the City to offer to replace services, but not necessarily pay for them. In addition, there is a time limit (30 - 120 days) to replace the services once they have been disturbed.

Mr. Magnuson said tonight the City Council would be discussing the first mandate, what happens when services are disturbed.

He said funding is available from the IEPA revolving loan program, through an annual application process. The demand for loans is typically greater than supply, with the State's "Intended Funding List" typically released in June.

Loans are project specific, typically a 20-year term with low interest rate. The IEPA may elect to "forgive" some or all of the loan balance for lead service line replacement programs, although this is still to be determined.

Loan forgiveness will likely be based on economic need, looking at demographics of the areas where services would be replaced.

Mr. Magnuson said if 100% loan forgiveness is provided, the City must replace the entire line at no cost to property owner (current draft IEPA guidance).

If funding is in the form of a loan (no or partial forgiveness) the City is encouraged to fund the private portion at no additional cost to the homeowner (current draft IEPA guidance).

Loan forgiveness based on demographics means not all areas of the City may qualify for the same level of loan forgiveness; this will depend on census tract information.

It is also unlikely that funding will be consistent from year to year.

Mr. Magnuson outlined policy decision points for the Mayor and City Council.

Option One: City Receives IEPA Loan with Full Forgiveness - The City would replace the City and property owner side of the service line. He said the City funds 100% of emergency repairs (water main leakslbreaks) due to the time constraints, and would continue to do so.

Option Two: City Receives IEP A Loan with Partial or No Forgiveness - There are two possible choices -

1) The City could fund 100% of City and Property Owner Side. Mr. Magnuson said for the Dole Avenue project, the Budget impact to the current CIP is between $132,000 - $192,000. For the Highland Avenue Project, this is already part of project budget, as the water main will be relocated. He said beyond the 5-Year CIP, the budget impact is unknown.

2) The City could Fund 100% of City Side and Require Property Owner to Pay for Private Side through upfront payment ($10,000 - $12,000 each, individual SSA's (0% interest loan), or partial City funding with SSA repayment.

He said the City funds 100% of emergency repairs (water main leaks/breaks) due to the time constraints, and would continue to do so.

He discussed what some other communities are doing right now when a project occurs. Some communities are paying nothing, some are paying a percentage, and some are paying the total if under a certain amount.

Mr. Magnuson said City staff surveyed communities what they are doing during current water main projects. He said age of community, growth over time and number of lead service lines compared to all services all contributed to different municipal policies.

Mr. Magnuson said staff is looking for direction from the Mayor and City Council regarding the Dole A venue Project. He said the draft guidance from the IEPA has changed and will most likely continue to do so for future mandates.

Mayor Haleblian asked when lead was no longer used in water services. Mr. Magnuson said late 1960s or 1970s because it was determined to be a health hazard. Prior to that, lead was used because it was easy to work with and was very pliable.

Mayor Haleblian asked what the procedure has been for removing the services. Mr. Magnuson said the City is not required to remove the lines from the ground. Contractors have been directionally drilling an entirely new service and leaving the old one.

Councilwoman Montford asked about the funding the City will receive in June, and if it would cover the Dole A venue project. Mr. Magnuson said it is not guaranteed the City will receive any funding or how much.

Councilwoman Brady asked how the loan would work not knowing if it would be forgiven or not. Mr. Magnuson said it is his understanding the City will know what the requirements are for forgiveness when the City is approved for the loan.

Councilwoman Montford asked if the City Council could wait until June to make a decision. She asked what the ramifications would be. Mr. Magnuson said the Dole A venue project would be pushed back until fall of next year.

Mayor Haleblian asked if there was anyone in the public who wished to comment on this agenda item. No one wished to speak.

Councilman Philpot said he feels the City is forcing the hand on Dole; the City should try to pay the entire cost. He also thought a max cap for private side replacements.

Councilwoman Brady asked about the Coventry subdivision. Mr. Magnuson said there is mostly copper in that area.

Councilwoman Brady asked if services are replaceable for $6,500. Mr. Magnuson said the replacements on North Main Street were around $10,000.

Councilwoman Brady she is surprised Woodstock is taking that strategy and asked if Woodstock would be more qualified demographically. Mr. Magnuson said he does not think Woodstock is as far along in the surveying of services as we are.

Councilwoman Brady said when the North Shore was annexed; people did not have choice, and were made to pay. City Manager Helm said there was not a Special Assessment established and the City had difficulty collecting payments for the project.

City Attorney John Cowlin explained what occurred in the West End and North Shore when they were annexed into the City.

Councilwoman Montford said doing the project this summer makes good sense, as the improvements may be more expensive. She asked how do we make people pay this.

Councilwoman Brady asked if the City has surveyed areas in the City. Mr. Magnuson said a contractor is currently surveying areas and if they find a lead service line, residents are notified. Residents are told the City is looking for funding, but there is no guarantee.

Councilwoman Brady said she is not for delaying Dole Avenue improvements.

Councilman Hopkins said a decision needs to be made regarding Dole A venue. He said future replacements could be decided later. He asked the City Attorney regarding liability for work completed regarding Dole Avenue service lines replacements.

Mr. Magnuson said property owners sign agreements that limit liability and after the service is installed, maintenance of the service line is turned back over to the homeowner. Special legal counsel Victor Filippini also said the language is very clear regarding this issue.

Mayor Haleblian said the City should fund this project with the hope the funding comes through.

Councilman Philpot moved to adopt a Resolution for the Dole A venue Reconstruction Project with the City paying 100% of the service line replacement cost as part of project. Councilwoman Smith seconded the motion. On roll call, all present voted yes. Motion passed.

Council Inquiries and Requests

None.

Adjourn

There being no further business, Councilman Hopkins moved to adjourn the meeting at 8:00 p.m. Councilwoman Montford seconded the motion. On voice vote, all present voted yes. Motion passed.

https://ecode360.com/CR2206/document/727190431.pdf