City Council

GENEVA CITY COUNCIL MEETING DECEMBER 21, 2015 CALL TO ORDER The December 21, 2015 meeting of the Geneva City Council was called to order at 7:00 p.m. in the Council Chambers of City Hall by Mayor Kevin Burns. Aldermen present: Mike Bruno, Tara Burghart, Don Cummings, Dean Kilburg, Craig Maladra, Richard Marks, Jim Radecki, Mary Seno, Tom Simonian, Ron Singer. Aldermen absent: None. Also attending: City Atty. Charles Radovich, City Administrator Mary McKittrick, Public Works Director Richard Babica, Economic Development Director Cathleen Tymoszenko, Water & Sewer Division Superintendent Bob VanGyseghem, Finance Manager Rita Kruse. PLEDGE OF ALLEGIANCE Led by Luke Holtz, Jean Gaines’ grandson. PUBLIC HEARINGS, SPECIAL ITEMS AND PRESENTATIONS Approve Mayor’s Appointment of Jean Gaines to the Mental Health Board Moved by Ald. Marks, seconded by Ald. Seno to approve the Mayor’s appointment of Jean Gaines to the Mental Health Board. Carried unanimously by voice vote. MOTION CARRIED Presentation by John Ryan/Land and Water Resources, Inc. on Prairie Green Wetland Bank Project John Ryan, president of Land and Water Resources (LAWR), and Randy Vogel, manager of operations, were present to provide information on LAWR, their proposal to restore the wetlands area and lift the Army Corps of Engineers suspension of wetland credit sales. Mr. Vogel said that based on the sale of a projected 83 wetland credits, LAWR would supply up to $4 million to the City, that amount contributing to the retirement of Prairie Green bonds. He emphasized that LAWR assumes any risk and that there would be no further cost to the City. He said that LAWR would bring the wetland bank back into compliance, monitoring, managing and maintaining it thereafter. He detailed the work involved in performing these tasks. Questions were then entertained. Ald. Maladra asked how LAWR would be more successful on this project than were previous efforts. Mr. Ryan explained that the wetland dried up due to mismanagement, specifically tampering with the water control system. He said the situation could be corrected. Ald. Radecki asked if the geographic area in which Prairie Green credits could be sold is restricted. Mr. Ryan responded that the area is restricted to Kane County and Fox River watershed areas in Cook County. In response to another question from Ald. Radecki, Mr. Ryan said that some of the bank area could be used to grow trees that later might be transplanted elsewhere in Geneva. To a question from Ald. Singer, Mr. Ryan, citing demand, said he is prepared to sell credits as soon as the wetland site is restored. Ald. Simonian asked Mr. Ryan what has been LAWR’s success rate on the 31 previous projects it have managed, with Mr. Ryan answering 100 percent. Ald. Simonian also sought information on the value of the 83 credits LAWR hopes to sell, with Mr. Ryan stating between $50,000 and $100,000 per credit. Ald. Simonian said that he was bothered that Mr. Ryan seems able to easily define the problem when those previously involved were unable to do so. Answering other of Ald. Simonian’s questions, Mayor Burns said that the City bonded approximately $10 million by referendum for land acquisition, with Admin. McKittrick saying the City has invested about $200,000 into the project, adding that the City had to hire consultants with expertise in wetland management. She further said that funding became a problem, leading to intermittent investing in the Prairie Green project. Geneva City Council Meeting December 21, 2015 1379 Additional questions and comments were heard regarding specifics on the economics and development procedures of the Prairie Green project, with Ald. Kilburg contributing, including his questioning if this project should be put out for bid, given the amount of money involved. Atty. Radovich replied that he and Admin. McKittrick have considered that issue and he has advised the city administrator to ask the Council, if it considers LAWR’s proposal, that it waive the bidding process so it is clear that the Council is exercising its ability to waive bids under the Municipal Code. Council consensus was to direct Admin. McKittrick, Atty. Radovich and Staff to continue working with LAWR with the goal of preparing a full presentation of the draft document before the Council in mid-January. Presentation on Special Service Area #1 Debt Refunding Options Finance Mgr. Kruse first provided some history on the SSA #1 debt, saying the 15-year loan of $400,000 was established in 2001, with a balloon payment due in 2016. The loan was for the purchase of the Seigle’s parking lot and related improvements. She discussed the refunding requirements. She presented two refunding options, those being to finance through the bank or finance through the City’s Electric Fund. She gave a debt service comparison, effect on a property tax bill, and the pros and cons of each option. She consulted with City Treasurer Pat McQueeny, who expressed concern with financing through the Electric Fund, saying interest income would be lost with the open market going up, and that by subsidizing SSA #1 with a lower rate, the electric rate payers would be funding that subsidy. Ald. Radecki suggested retiring the debt altogether, but Mgr. Kruse and Admin. McKittrick pointed out that that would result in a considerable increase in SSA #1 taxation. Ald. Cummings said that financing through the Electric Fund would take potential future income from it. He favored financing through the bank, but suggested talking to other banks in addition to MB Financial about the refunding. Ald. Simonian asked Ald. Cummings what the downside risk would be in not having money available in the Electric Fund for reinvestment against a guaranteed loan rate. Ald. Cummings cited the current environment of flat to rising interest rates being inopportune to a fixed rate loan. After brief discussion with Ald. Cummings, Ald. Simonian favored bank financing over Electric Fund financing. Council direction was to refund the SSA #1 through bank financing. AMENDMENTS TO AGENDA Moved by Ald. Kilburg, seconded by Ald. Marks that the agenda be amended to include a Closed Session on the purchase, sale or lease of real property for the use of the public body. Roll call: AYES: 10 (Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Seno, Simonian, Singer) NAYS: 0 MOTION CARRIED OMNIBUS AGENDA All items listed on the Omnibus Agenda are considered to be routine by the Council and will be enacted by one motion. There will be no separate discussion on these items unless a Council member or citizen so requests in which event the item will be removed from the Omnibus (Consent) Agenda and considered in its normal sequence on the Agenda. Moved by Ald. Bruno, seconded by Ald. Marks to approve the Omnibus Agenda as presented. Roll call: AYES: 10 (Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Seno, Simonian, Singer) Geneva City Council Meeting December 21, 2015 1380 NAYS: 0 MOTION CARRIED APPROVE MINUTES OF THE LAST REGULAR MEETING HELD DECEMBER 7, 2015 Moved by Ald. Bruno, seconded by Ald. Marks to approve motion as presented. Approved by unanimous roll call vote. (Omnibus Agenda). MOTION CARRIED APPROVE REPORTS Moved by Ald. Bruno, seconded by Ald. Marks to approve motion as presented. Approved by unanimous roll call vote. (Omnibus Agenda). MOTION CARRIED COUNCIL COMMITTEES Committee of the Whole January 11, 2016 at 7:00 p.m. OTHER ITEMS AND CORRESPONDENCE None MUNICIPAL BILLS FOR PAYMENT The following bills were presented for payment: General Fund $87,212.33 Cultural Arts Fund 314.99 SPAC Fund 103.10 Tourism Fund 1,300.04 Restricted Police Fines 268.59 Tri‐Com Fund 148,169.72 SSA #16 9,290.00 Infrastructure Capital Projects 21,216.23 Electric 2 ,743,526.10 Water/Wastewater 410,978.12 Refuse 114,031.92 Cemetery 642.29 Commuter Parking 92.70 Group Dental 4,001.60 Utility Refunds 414.34 ____________ Total Funds $3,541,562.07 Moved by Ald. Bruno, seconded by Ald. Seno that the bills be approved and vouchers prepared. Roll call: AYES: 10 (Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Seno, Simonian, Singer) NAYS: 0 MOTION CARRIED COMMITTEE OF THE WHOLE ITEMS OF BUSINESS Approve Resolution 2015-115 Authorizing Bid Award and Contract to Midwest Well Services/Municipal Well & Pump in the Amount Not to Exceed $131,415.00 for Well No. 6 Rehabilitation Moved by Ald. Marks, seconded by Ald. Bruno to approve Res. 2015-115 authorizing bid award and contract to Midwest Well Services/Municipal Well & Pump in the amount not to exceed $131,415.00 for Well No. 6 rehabilitation. Roll call: Geneva City Council Meeting December 21, 2015 1381 AYES: 10 (Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Seno, Simonian, Singer) NAYS: 0 MOTION CARRIED Approve Resolution 2015-116 Authorizing Execution of PACE Subsidy Agreement Effective January 1, 2016 through December 31, 2016 Subject to FY2016-17 Budget Approval (Ride in Kane PACE Subsidy Agreement) Moved by Ald. Bruno, seconded by Ald. Marks to approve Res. 2015-116 authorizing execution of the PACE Subsidy Agreement effective Jan. 1, 2016 through Dec. 31, 2016 subject to FY2016-17 budget approval. Ald. Singer called attention to two pieces of literature distributed to the Council that provide information on the Ride in Kane program, which serves seniors and persons with disabilities. He said that Geneva has approximately 345 senior citizens subscribing to the program. He went over some of the ridership statistics, noting rider usage criteria and procedures. Emphasizing the importance of the program, Ald. Singer expressed the hope that it will continue to be budgeted. Ald. Simonian sought clarification of the cost reductions in recent years. Admin. McKittrick said the reductions are due to new rules restricting the number of monthly rides per person and the geographic area covered. Ald. Singer also noted that declining fuel costs also are helping to reduce program costs. Roll call: AYES: 10 (Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Seno, Simonian, Singer) NAYS: 0 MOTION CARRIED Reaffirm Economic Incentive Policy as Adopted November 2014 Moved by Ald. Bruno, seconded by Ald. Marks to approve motion as presented. Approved by unanimous roll call vote. (Omnibus Agenda). MOTION CARRIED Approve Certificate of Completion for Park Place Electrical Installations Moved by Ald. Bruno, seconded by Ald. Marks to approve motion as presented. Approved by unanimous roll call vote. (Omnibus Agenda). MOTION CARRIED Approve Certificate of Acceptance for Prairie Ridge Electrical Installations Moved by Ald. Bruno, seconded by Ald. Marks to approve motion as presented. Approved by unanimous roll call vote. (Omnibus Agenda). MOTION CARRIED Approve Resolution 2015-117 Authorizing Solicitations for “Request for Qualifications” to Secure Storm Water Utility Consultant for Possible Future Implementation of Storm Water /Drainage Utility Moved by Ald. Bruno, seconded by Ald. Marks to approve motion as presented. Approved by unanimous roll call vote. (Omnibus Agenda). MOTION CARRIED PRESENTATION OF ORDINANCES, PETITIONS, RESOLUTIONS, AND BID AWARDS None NEW BUSINESS Mayor Burns introduced Melissa Marks, daughter of Ald. Marks, who is a senior at St. Louis University majoring in civil engineering. She said that she recently interned for the City of Elgin assisting in the construction management of a parking lot. Geneva City Council Meeting December 21, 2015 1382 CLOSED SESSION ON THE PURCHASE, SALE OR LEASE OF REAL PROPERTY FOR THE USE OF THE PUBLIC BODY Moved by Ald. Simonian, seconded by Ald. Marks that the Council adjourn to Closed Session. Carried unanimously by voice vote. MOTION CARRIED The Council adjourned to Closed Session at 9:12 p.m. Moved by Ald. Marks, seconded by Ald. Bruno that the Council return to Open Session. Roll call: AYES: 10 (Ald. Bruno, Burghart, Cummings, Kilburg, Maladra, Marks, Radecki, Seno, Simonian, Singer) NAYS: 0 MOTION CARRIED The Council returned to Open Session at 9:38 p.m. ADJOURNMENT There being no further business, moved by Ald. Simonian, seconded by Ald. Seno to adjourn the Geneva City Council meeting. Carried unanimously by voice vote. The meeting adjourned at 9:39 p.m. ________________________ Lynn P. Landberg, City Clerk Geneva City Council Meeting December 21, 2015 1383