Village Board

EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 1 of 8 Call Meeting to Order; Pledge of Allegiance Administrator Suhm verified the meeting was posted according to law. Roll Call: President Seager called the meeting to order at 6:30 p.m. Present: President Scott Seager, Trustees John Alexander, Alexander Alger, Alan Boyes, John J. Jacoby, Matt Johnson and Forty Renucci Excused: Others: Chief Swendrowski, DPW Director Equitz, Administrator Suhm, Attorney Pruitt Youth in Government Representatives Taylor Grenier and Cameron Otto Citizen Participation No citizen participation. Consent Agenda (One motion and second will approve all of the following items. Any item may be pulled from the list and voted on separately.) 1. Approval Minutes – 6/18/2018 2. Operator’s Licenses – Harlee M. Hieneman 3. Consider approval of Special Event for East Troy Chamber of Commerce, August First Fridays Square Fest, August 3, 2018, 5 pm to 8 pm, Vanessa Lenz, Chamber Director, Event Chairperson. a. Consider approval of Temporary Class B Beer License for the East Troy Chamber of Commerce August First Fridays Square Fest, August 3, 2018, Operators: Vanessa Lenz, Sarah Manke 4. Consider approval of annual renewal for Mobile Home Park Permit for Meadows Development Group LLC - Skyview Terrace, 2742/2786 Main St. 5. Consider approval of Special Event for Friends of the East Troy Airport, Airport Open House and Pancake Breakfast, August 11, 2018, from 7 am to 5 pm. (contingent upon receipt of fees) 6. Consider approval of Special event for East Troy Bible Church, Rock the City, August 26, 2018, 10 am – 2 pm, Mitchell Field Grandstand. (contingent upon receipt of fees) Motion by Trustee Alexander, second by Trustee Johnson, to approve the Consent Agenda with Item 4 removed. Motion carried. Trustee Boyes requested pulling Item 4. He asked Director Equitz and Chief Swendrowski if all cross connections have been addressed and if there are any matters of concern. Director Equitz reported 75% of cross connections have been addressed and he did not feel there was a need to hold the permit based on this. Motion by Trustee Boyes, second by Trustee Alexander, to approve the mobile home park permit for Meadows Development Group LLC, Skyview Terrace. Motion carried. Miscellaneous Business  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 2 of 8 1. Kathrine Gaulke, (running for Representative to the Assembly, Dist. 32-Democratic Party) Introduction to the Board (No packet materials) Dr. Katherine Gaulke introduced herself and explained that she is available to discuss how the Village and State can work together to address resident’s needs. 2. Consideration of delaying 2018 sidewalk project to combine with 2019 sidewalk project Director Equitz explained that the 2018 Sidewalk Project was projected to come in at $480,000 and came in at over $600,000 with only one bid. The recommendation is to design the 2019 project now and roll it into one project to be bid after the first of the year to get the best pricing and the most bids. Trustee Johnson questioned if there is any project scheduled in the 2019 budget that we could move up to 2018 to utilize the bond funds. Director Equitz will review, but is concerned that with any major projects we may run into the same issues with availability and bid amounts. Engineer Nunn discussed that she has this situation, where a project is bid and receives a lack of bids or excessive costing, once every other year, depending on the construction environment. Engineer Nunn called six or seven concrete companies leading up to this bid to see if they were pulling plans to bid and many explained they have no capacity for additional jobs. Trustee Johnson asked about projected costing for the project. He does not want us to get to next year’s bids and find we are still over budget versus now when we are doing capital budgeting for next year. Engineer Nunn feels the project estimates are not too far off but the key will be to get it out to bid in January or February next year, while contractors are setting schedules. The sidewalk easements for the 2018 project have been secured except for the two far west properties, which will not be built on. All DOT permits have been received but will need to be refiled for next year, based on construction schedule, but they had no concerns. An Occupancy Agreement for Walworth County will be brought to the Board for final signatures and Walworth County also had no concerns. Director Equitz explained that now we can design the 2019 project from Highway G Bridge to Honey Creek Road. Engineer Nunn explained that one of the major design concerns with that section for the DOT is going under the I-43 overpass. If the sidewalk is behind the ditch it will require retaining walls and structural accommodations and if the sidewalk is placed in front of the ditch it will require curb, gutter and a wider sidewalk. There will also need to be reconstruction of the islands in the northbound off ramp. There will be a large amount of design effort and coordination to meet the DOT requirements. Also, the DOT Southeast Permit Coordinator is backlogged with permit applications due to Foxconn. The sooner we can get information in for permitting, the better. Engineer Nunn suggested structuring the 2019 bid by road segment so the Village can pick and choose projects based on the funds amount available in case the overall bid comes in over budget. Motion by Trustee Boyes, second by Trustee Johnson, to reject the bid for the 2018 sidewalk project. Motion carried. Motion by Trustee Johnson, second by Trustee Boyes, to award Lynch and Associates the 2019 sidewalk engineering proposal. Motion carried.  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 3 of 8 3. Consideration of amendment for engineering design services for sidewalk projects (from 5/21/2018 meeting) Tim Lynch, Lynch and Associates, revisited the prior conversation about the 2018 Sidewalk Project bid and explained that they are hearing that the smaller concrete companies are not being guaranteed concrete from suppliers, which is causing a large strain among contractors, resulting in the current bidding climate. Regarding the amendment for engineering design services he discussed the challenges during the project and believes they did a good job communicating those challenges to the Director of Public Works, but fell short on communicating the cost of those challenges. He expressed their desire to be a good partner with the Village on the project costs and have an estimated $48,000 of unbilled labor. Trustee Johnson explained that the Village understands there are always unforeseen challenges on these projects and if we can recognize those challenges for the 2019 segment, communicate with the Village in the future and have a game plan to prevent this from happening again, it will be a much better outcome. Trustee Renucci questioned a charge for an additional survey required to relocate a sidewalk on private property. Engineer Nunn explained the original survey was from right-of-way line to right-of-way line but they ended up having to design the sidewalk 10 feet onto private property and that was not picked up during the initial survey. County base mapping of property lines cannot be relied upon and must be verified. Director Equitz explained that part of surveying is locating the utilities which is not on the County mapping system. Motion by Trustee Johnson, second by Trustee Jacoby, to approve the amendment for $17,500. Motion carried. 4. Consideration of sanitary sewer modifications for East Troy Brewery project Director Equitz explained his memo and noted that the County GIS mapping shows a 9- foot strip of property that holds a sanitary sewer that was originally constructed to Village standards. It was likely an alley at one point and there are multiple taps on the sewer line going both east and west but now it only serves the Brewery. The issue is the line is flat and not pitched and a sewer needs to be pitched to utilize gravity. This worked for many years for the bank with one restroom, however, with the new proposed use of a restaurant, this will likely be an issue. This will be also need an easement from the owners. The project has an estimated cost of $30,00.00 and will need to be publicly bid. Director Equitz needs to know if the Board is agreeable to this plan to move forward. Director Equitz can get this out to bid next week and have bids back within a couple of weeks. It is a small job and there has already been some interest in the project. This was not budgeted for but Director Equitz does have some funds originally for sanitary collection system repairs that may be available to be used.  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 4 of 8 Attorney Geary did not see any issues other than having the easement recorded. Ted Zess was present and expressed no concerns with addressing this in that manner other than timing. Director Equitz has sewer cleaning that televising he indicated needs to be done that is estimated at $5,000 - $7,000. The bids for this sewer project will determine if there funds available to do both. Motion by Trustee Johnson, second by Trustee Alexander, for Director Equitz to put this project out to bid. Motion carried. 5. Consideration of issuing building raze order for 2765 Main Street Chief Swendrowski explained during an inspection multiple issues were observed at this property. These included broken windows and all three entrance doors wide open. It did not appear anyone was living there and he could not reach the owner. He and the Building Inspector entered the building to investigate further. He shared pictures in the packet with the Board. The property has holes in the roof, mold is evident, stairs are rotting and there are holes in the foundation. The property is in very bad condition. It is a Village Board decision to raze a building. The Building Inspector confirmed that the property would require more than 50% of the assessed value to repair it to a livable condition. Attorney Pruitt was consulted on the legal process to raze a building. The taxes have not been paid in five years. Administrator Suhm discussed the property with Walworth County and they were considering foreclosing on the property but are hesitant given the condition of the property and potential environmental issues. With a potential raze order the County will not pursue foreclosure for back taxes however they also will not forgive the back taxes should the municipality issue a raze order and take the property. Some counties do forgive the back taxes if the municipality razes and takes ownership of the property. Attorney Geary reviewed several options. These included the process of determining the 50% threshold of repairs to assessed value, pull a letter report from the title company for the owner of record and lien-holders to notice them of the pending action, publish the notice in the newspaper, record it against the property and personally serve the property owner or agent to put them on notice of the raze order. There are two notices served – one is the order to raze and the other is to remove personal property. The owner has 30 days from the notice to respond to the court to request a hearing at circuit court. Once the 30 days are up we can do the razing ourselves and charge the cost back to the owner or the municipality can affirmatively request the court order the property owner to raze the building themselves. This is usually not a good option as the property owner generally does not have the resources to do this. The municipality then hires a contractor to do the work and passes the charges to the owner through the tax bill. The work does not have to be bid out. Another option would be declaring the property a public nuisance, notice the owner to abate the nuisance and if they do not comply the municipality then can  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 5 of 8 abate the nuisance and board up the property. Another option would be to have the building inspector post the property as unfit for human habitation. Discussion followed of a plan of action to begin the process to raze the building, direct the Building Inspector to post the building as uninhabitable, if there is no action by the owner contract to have the property boarded-up and continue moving forward with the raze order while working with the County to try to find a long-term solution for the property. The potential cost to raze the building is estimated at $20,000-$25,000, does not count any prior inspections, any clean out before razing and clean-up and in-fill after razing. Chief Swendrowski has discussed this situation with Fire Chief Barutha and they may be interested in assisting. The building would need to be inspected first and a permit received from the DNR. There is also an electrical pole in front of the house with service to Golden Dragon so, if razed WeEnergies will need to move the electric service. Motion by Trustee Boyes, second by Trustee Jacoby, that regarding 2765 Main Street the Building Inspector be contacted and if the property is deemed uninhabitable that it be posted as an uninhabitable building; and, based on Village ordinance, after the waiting period, the building is boarded up and secured; and that staff/attorney contact the County to work on proceeding with the razing process and/or transferring the property to the Village. Motion carried. 6. Discussion/direction to staff regarding Airport Natural Lawn permit/ordinance amendment and staffing for lawn mowing Director Equitz stated that the Board asked him to report on the costs of mowing grass at the airport. He provided costs for operators and equipment. This operation will continue to utilize Village equipment, whether it is public works staff or the airport manager operating the equipment. He used the published DOT rates and indicated that he felt the published rates were aggressive and stated that he felt confident to suggest that the cost would be closer to $500 per day and would take two days, twice a month. Attorney Geary discussed the contracts involved at the Airport - the Farm Lease and the Airport Manager’s contract. The contract currently has certain areas that require the Airport Manager to mow and keep at 8 inches or less in height and other areas that are at his discretion to allow to grow to a natural height and be cut for hay. If the Village would like those areas to be mowed, the contract would need to be reopened and possibly more compensation offered for the additional work, or the work could be done by Village employees. Further complicating the issue is the natural lawn ordinance and the Board’s sense that exempting the Village from the mowing ordinance is not a good option. Also in the current zoning district where the land is being farmed under the lease it should be allowed by conditional use. Since the Village is looking for middle ground, an option would be that if the zoning allows for the use and the applicant is willing to go through the conditional use process, then change the ordinance to allow a conditional use for grass to grow to a  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 6 of 8 height to mow for farming. This would need to be qualified based on the amount of acreage. This situation could also apply to the land in the industrial park. Right now, the ordinance states grass needs to be cut before it reaches a certain height. The Airport contracts state that for most of the grass the Airport Manager is responsible but for some of the grass he is not, and for the area that is being leased the farmer does not want to do it anymore, is delinquent in his lease and has not responded to the request to terminate the lease. Regarding the farm lease the Village is now in a position to formally evict him which requires a 30-day notice and taking him to small claims court. Another option would be to request written termination of the lease which may be a less expensive option for the Village. Discussion included if the grass should be cut, the safety at the Airport, the aesthetics of the Airport, meeting the same requirements as the hangar owners and the need to review the Airport Manager’s contract regarding the grass cutting as allowed in December, the current disposition of the industrial park land and when that would become the Village’s responsibility to determine. There are three points – 1) the farm lease and instructions to our attorneys on proceeding, 2) the longer-term issue for larger tracts of land that the Village will be purchasing and what is done specifically about the land at the airport and how it relates to mowing, and 3) the contract with the Airport Manager. Motion by Trustee Johnson, second by Trustee Boyes, to instruct Attorney Geary to contact the farmer and offer that if he will sign the termination we will forgo attorney fees. If he does not, they should proceed with eviction. Motion carried. Motion by Trustee Johnson, second by Trustee Jacoby, to instruct Director Equitz to work with the Village Attorney to figure out long-term what to do about grass cutting for larger properties outside of the airport. Motion carried. Motion by Trustee Johnson, second by Trustee Boyes, to instruct Jason and his crew to go ahead and start mowing the area in question at the airport and begin discussions in preparation for the December meeting with the Airport Manager regarding how to adjust the contract. Motion carried. 7. Discussion of status and recent developments with respect to pending land purchase, discussion and possible action as to securing DNR feedback as to same, and discussion and possible action as to possibility of separate closings on each property (no packet materials, Atty. Geary report) Environmental reports have been received on both parcels under contract. The Honey Creek parcel completed phase one and no phase two was necessary. By title there is a limited access off Honey Creek Road that was known. There is one use restriction from when MLG sold land to Marcus Inc. - Marcus requested that there be deed restrictions  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 7 of 8 on remaining parcels to not allow competing businesses, gentleman’s clubs or adult bookstores. The environmental phase one report on the landfill parcel was received and, given the circumstances of this location, it was recommended to have phase two testing. This test is for soil contamination, soil gas and groundwater contamination. The testing for soil tests and soil gas came back great however, the groundwater contamination was termed in exceedance. It was just over the reporting threshold but well below an enforcement standard. This was due to metals - arsenic, cadmium and lead. All three levels are well below any sort of cleanup level or requiring of pumping of groundwater. It does require notification to the DNR. Concerns would be cleanup costs and how contamination would impact the ability to sell the property or impact loans from banks. During a discussion with Tina Reese, the Environmental Consultant working with the Village, she felt this would be a non-issue because the development planned will have public water and not private wells. She anticipates once the DNR is notified and they review the data, they will issue an order stating no action required. She suggested another thing the Village could do is ask for a Technical Assistance Letter, basically a comfort letter, that doesn’t provide any legal advice or liability protection, where the DNR reviews the reports and the proposed use and provides recommendations and what they feel the Village would not need to worry about. There is also a deed restriction put in place by the prior landfill when the land was sold, stating there cannot be any wells within 12,000 feet of the landfill and that public water and sewer needs to be available before building. The property owner is required to maintain an access to the landfill, but it does not need to be the current access. There is a holding tank agreement recorded against the large parcel in 1995, but there is no known location of the holding tank. The current parcel was cobbled together from three separate parcels and one of the parcels was a farm that had a holding tank installed. The farm has since been razed and the County is no longer monitoring this tank. They cannot tell us where it is, so it may be found during development. Tina Reese is following up with the DNR to review their data from this landfill. Also, there are monitoring wells around the landfill and the reports from those wells are sent to the Village and have shown no significant spikes in the last year and a half according to Engineer Nunn. Procedurally, MLG, as the property owner, needs to notify DNR of the findings. The Village would authorize its Environmental Consultant to act as MLG’s Environmental Consultant, the DNR will review the findings and send the “no further action” letter, which should take two to three months for that process. MLG and the Village would like to move forward and take advantage of the development climate and it was proposed to MLG to split the transaction. MLG sees that the Village is committed to purchasing both  EAST TROY VILLAGE BOARD MINUTES July 2, 2018 Page 8 of 8 properties so they would be willing to close on the Honey Creek parcel, provided the Village waives all contingencies for the landfill parcel, except for the environmental item. Motion by Trustee Johnson, second by Trustee Alger, to go ahead and close on the Honey Creek property and draw up contingency papers on the Highway 120 property, and to get the comfort letter from DNR. Motion carried. Reports 1. DRAFT Plan Commission Minutes – 6/11/2018 Adjourn Motion by Trustee Johnson, second by Trustee Alexander, to adjourn at 8:05 p.m. Motion carried. Respectfully Submitted, Eileen Suhm Administrator