Village Board

VILLAGE OF HUNTLEY VILLAGE BOARD December 6, 2018 MEETING MINUTES CALL TO ORDER: A meeting of the Village Board of the Village of Huntley was called to order on Thursday, December 6, 2018 at 7:00 p.m. in the Municipal Complex, Village Board Room, 10987 Main St., Huntley, Illinois 60142. ATTENDANCE: PRESENT: Mayor Charles Sass; Trustees: Ronda Goldman, Tim Hoeft, Niko Kanakaris, John Piwko and JR Westberg. ABSENT: Trustee Leopold IN ATTENDANCE: Village Manager David Johnson, Assistant Village Manager Lisa Armour, Director of Public Works and Engineering Tim Farrell, Chief of Police Robert Porter, Director of Finance Cathy Haley, Human Resources Manager, Chrissy Hoover, Village Clerk Rita McMahon and Village Attorney John Cowlin. Mayor Sass said asked everyone to please stand for a moment of silence in honor of the passing of President George H. W. Bush. PLEDGE OF ALLEGIANCE: Mayor Sass led the Pledge of Allegiance. PUBLIC HEARING: Village of Huntley Fiscal Year 2019 Annual Operating and Capital Budget A MOTION was made at 7:01 p.m. to open the Public Hearing. MOTION: Trustee Westberg SECOND: Trustee Piwko The Voice Vote noted all ayes and the motion carried. Village Manager David Johnson presented an overview of the proposed Fiscal Year 2019 Operating and Capital Budget. In accordance with Illinois State Statute and direction received from the Village Board of Trustees, the Fiscal Year 2019 Annual Operating and Capital Budget is presented for final consideration. The annual budget document represents the single most important policy document adopted annually by the Village President and Board of Trustees. The Village prides itself on preparing a budget document that clearly communicates Village priorities in providing services, programs and public improvements for the benefit of Village residents. Budget and priorities for FY19 have been proposed which are in support of the mission, vision, and values statement of the 2016-2020 Strategic Plan. The operating and capital budgets have been reviewed with the Village Board in the following meetings:  October 11, 2018 – Village Board Meeting - Review of Financial and Debt Management Policies (one-time transfer history, outstanding debt balances, TIF information and debt per capita data) 12.06.18 VB Meeting 1   October 25, 2018 – Village Board Meeting - Review of Personnel and Staffing, Pension, and Insurance Summary. Review of Major Capital Revenue Sources, and Preliminary Capital Requests from Departments.  October 25, 2018 – Village Board Meeting – Policy Direction Regarding 2018 Tax Levy  November 8, 2018 – Village Board Meeting – Review of 2016-2020 Strategic Plan Priorities, Goals, and Objectives Each year the budget process allows Village officials an opportunity to review the Village’s current financial position and major accomplishments over the course of the last fiscal year. Noteworthy accomplishments in 2018 include: a. Completed the Pavement Management Program including: MFT resurfacing project in the Huntley Meadows subdivision for a total of 2.24 miles of paved road; Coordinated crack sealing, pavement patching and pavement marking on various streets throughout the Village as part of the overall Pavement Management Program; Coordinated the seal coating of the Municipal Center and Downtown Municipal Parking Lots, and Sun City Neighborhood 8; and Coordinated the edge mill and overlay of roadways in Sun City Neighborhood 16 b. Completed the $3 million improvement program for the East and West Wastewater Treatment Facilities consistent with Comprehensive Master Utility Planning document and NPDES Permit requirements c. Received IDOT Project Development Report (PDR) approval and then subsequently awarded an Illinois Transportation Enhancement Program (ITEP) grant for engineering and construction for the Reed Road multi-use path extension from Vine Street to IL Rt 47 d. The Village continued downtown revitalization efforts with the opening of the BBQ King Smokehouse restaurant and facade improvements to the American Legion Building. e. Completed the beautification improvement project at the southwest corner of Main Street and IL Route 47 f. Purchased and installed a new in-car camera system in all Police Department squad cars g. Deployed Phase 1 of new Village-wide financial management software (New World) for all financials (General Ledger, Accounts Payable, Receivables, Purchasing and Cashiering). Began discovery and planning for the implementation of new permitting software with Development Services and Utility Billing and Customer Service portals. Running parallel payroll records for the January 1, 2019 “go live” with the Payroll and Human Resources modules. Compared to the FY18 Budget, the proposed FY19 Budget proposes $2,352,644 (8.98%) less in total expenditures. With the proposed $25,000 addition of the 2019 Ford Fusion to replace the 2006 Ford Crown Victoria in the Police Department Support Services Division, the FY19 Operating and Capital Budget totals $23,841,557 in expenditures for all funds, excluding the one-time revenue transfer of $1,375,000 from the FY17 audited surplus in the General Fund and transfers from Water Operating ($1,258,881) to Water Capital Improvement and Equipment and from Wastewater Operating ($940,159) 12.06.18 VB Meeting 2 to Wastewater Capital Improvement and Equipment. Major projects included in the FY19 budget are: a. $2,160,000 Annual Street Improvement Program that will provide for roadway resurfacing in the Georgian Place Subdivision ($1,810,000) and pavement patching, crack sealing, seal coating, and pavement marking at various locations throughout the Village, most notably in Sun City Neighborhoods 4 and 15 b. $385,000 in the Water Capital and Equipment Fund for necessary water main replacements c. $276,800 spread across three funds, the second year of a two-year process to replace the Financial Management Software d. Reed Road Multi-Use Path ($48,000) for the extension of a multi-use path on the north side of Reed Road from Vine Street east to IL Route 47. The project is funded by a grant from the Illinois Department of Transportation in the amount of $192,000.00, representing 80% of the costs for Phase II and Phase III engineering and construction, with the remaining 20% of the project costs to be matched by the Village. e. $50,000 upgrades and modifications to the Emergency Operations Center In accordance with Village Financial and Budget Policies, the proposed budget for the General Operating Fund is balanced with $11,918,954 in revenues and expenditures. A five-year financial forecast is included for the General Fund in the budget document. The number of proposed authorized/budgeted positions for FY19 remains at 98.5 subject to adequate funding being available. This is the same as FY18 and equates to 3.7 employees per 1,000 residents. Historically, the Village’s ratio of employees per 1,000 residents has been below comparable communities in the region. Pursuant to State law, the draft budget document was made available for public inspection on the Village’s website and at the front counter of the Municipal Complex beginning Monday, November 26, 2018. In addition, the required public notice was published in the Northwest Herald on November 27, 2018, informing the general public of the budget public hearing scheduled for Thursday, December 6, 2018, at 7:00 p.m. at the regularly scheduled Village Board meeting. Mayor Sass asked if anyone had any comments or questions regarding the Budget. There were none. A MOTION was made at 7:12 p.m. to close the Public Hearing. MOTION: Trustee Piwko SECOND: Trustee Kanakaris The Voice Vote noted all ayes and the motion carried. PUBLIC COMMENTS: None ITEMS FOR DISCUSSION AND CONSIDERATION: 12.06.18 VB Meeting 3  a) Consideration – Approval of the October 25, 2018 Village Board, November 8, 2018 Liquor Commission, and November 8, 2018 Village Board Meeting Minutes Mayor Sass asked if the Village Board had any comments or changes to the minutes; there were none. A MOTION was made to approve the October 25, 2018 Village Board, November 8, 2018 Liquor Commission, and November 8, 2018 Village Board Meeting Minutes MOTION: Trustee Hoeft SECOND: Trustee Goldman AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 b) Consideration – Approval of the December 6, 2018 List in the amount of $391,431.35 Mayor Sass asked if the Village Board had any comments or questions regarding the Bill List; there were none. A MOTION was made to approve the December 6, 2018 List in the amount of $391,431.35 MOTION: Trustee Kanakaris SECOND: Trustee Westberg AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 c) Consideration of an Ordinance Approving a Simplified Residential Zoning Variation for a Building Addition Encroaching into the Rear Yard Setback – 11008 N. Myrtle Street Village Manager David Johnson presented a request of a ±9.6 feet relief from the forty (40’) foot minimum rear yard building setback to accommodate the construction of a 15.5-foot x 21.1-foot (307 square feet) three-season room addition on the rear (east) side of the “R-2” Single-Family Residence District zoned residence at 11008 N. Myrtle Street. The petitioners have cited the limited depth of the rear yard as a reason for requesting the subject relief from the rear-yard setback requirement. They also point out that their lot backs to Village-owned property that is used for stormwater management. The residents have found that insects throughout the warmer portions of the year have made it difficult to enjoy spending time in the rear of their property. Zoning Board of Appeals Recommendation The Zoning Board of Appeals reviewed the petitioners’ request at a public hearing on November 14, 2018, with no members of the public speaking in opposition to the request. The Zoning Board of Appeals unanimously recommended approval of the request by a vote of 4 to 0 subject to the following condition: 1. No building permits or Certificates of Occupancy are approved as part of the Simplified 12.06.18 VB Meeting 4  Residential Zoning Variation. Financial Impact Not applicable. Legal Analysis Not required. Village Manager Johnson stated the builder of the addition was in attendance should the Village Board have any questions. Mayor Sass asked if the Village Board had any comments or questions. There were none. A MOTION was made to approve an Ordinance for a Simplified Residential Zoning Variation for an addition encroaching into the Rear Yard Building Setback – Zakarya and Kelley Zerby, 11008 N. Myrtle Street. MOTION: Trustee Kanakaris SECOND: Trustee Hoeft AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 d) Consideration – A Resolution Issuing a Temporary Use Permit to hold an Outside Event on Village Property; Christmas Caroling in the Square – December 24, 2018 Assistant Village Manager Lisa Armour stated that several of Huntley’s churches have met to work together on some upcoming events. On December 24, 2018 St. Mary, Willow Creek Huntley, Journey Church and Shepherd of the Prairie would like to sing Christmas Carols in the Square from about 8:45 p.m. to 9:15 p.m. Staff Analysis While this is not a long event, they would like to close off Coral Street prior to the start of the caroling and asked to borrow barricades to do so. In addition, they have also asked that the Village post “No Parking from 8:30 – 9:30 pm on Dec 24” on Coral Street. These churches will only be inviting their own members and feel that the turnout may be quite large and that people will be standing on Coral Street. No signs will be installed. Financial Impact None. Legal Analysis Each church will be required to provide a Certificate of Liability Insurance listing the Village of Huntley 12.06.18 VB Meeting 5 as additionally insured as well as sign the Village’s Hold Harmless Agreement. Mayor Sass asked if the Village Board had any questions; there were none. A MOTION was made to approve a Resolution Issuing a Temporary Use Permit to hold an Outside Event on Village Property; Christmas Caroling in the Square – December 24, 2018. MOTION: Trustee Piwko SECOND: Trustee Goldman AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 e) Consideration – An Ordinance Authorizing the Levy and Collection of Taxes for the Village of Huntley 2018 Annual Property Tax Levy in the Amount of $4,676,115 and to Direct the Village Treasurer to Record the Document Accordingly Village Manager David Johnson reported the Village's 2018 Tax Levy request is for $4,676,115. Once approved by the Village Board, staff will file the property tax levy ordinance with all appropriate offices at both McHenry and Kane Counties. Staff Analysis State law requires that the levy cannot be adopted sooner than twenty (20) days after the initial discussion on the levy, which took place at the October 25, 2018 Village Board meeting. The Village’s 2018 levy request is $4,676,115. The 2018 property tax levy request follows the Village’s financial policies in that the increase will be allocated to cover the cost of the actuarial calculated increase in the Village’s police pension obligation. For 2018, this amount equals $41,812 which is less than 1%. The benefits and benefit levels for the Police Pension Fund are governed by State Statute and can only be amended by the General Assembly. The current statutory requirement is that the Village’s Police Pension Fund be at least 90% funded by 2040. The Village is committed to meeting its pension obligations. 2018 REQUESTED TAX LEVY - Police $ Increase/ % Increase/ Pension Increase 2017 Tax Levy 2018 Tax Levy Decrease over Decrease over Only Extensions Request prior year prior year Corporate $3,070,917 $3,070,917 $0 0.00% IMRF $250,000 $250,000 $0 0.00% Social Security $250,000 $250,000 $0 0.00% Liability Insurance $250,000 $250,000 $0 0.00% Cemetery $0 $0 $0 0.00% Police Pension $813,386 $855,198 $41,812 5.14% 12.06.18 VB Meeting 6  TOTAL $4,634,303 $4,676,115 $41,812 0.90% Financial Impact While residents live within the Village limits, their property tax bill is comprised of no less than nine (Kane County) or ten (McHenry County) separate taxing districts. Each taxing district determines the total dollar amount to levy on the property, which resides within the taxing district boundaries. A tax rate is calculated based on this total dollar request and the total assessed value of property within the taxing district boundaries. The tax rate is what a resident sees on their tax bill for each entity having authority to place a levy on their property. The EAV of an individual resident’s property is multiplied by each tax rate to determine the amount of tax owed for the respective calendar year. The Village of Huntley is a home rule community and levies for dollars. The tax rate becomes a calculation based on the EAV (EAV/100 x Rate = Total Levy Dollars). The Village’s share of a property tax bill is approximately 6%. The EAV is determined by the township assessor’s office, while the dollars are requested by the Village for the Village’s portion of the tax bill. Therefore, the rate is a factor of these two amounts. The preliminary estimated EAV from the Counties shows a potential increase from 2017 of 6.23%. Increasing the dollars to meet the Village’s pension obligation, combined with the increase in the EAV may slightly reduce the Village’s tax rate. Levy Year Rate EAV Dollars Increase 2017 0.5319 $871,310,736 $4,634,303 2018 0.5052 $925,612,066 $4,676,115 $41,812 This level will provide funding for the proposed FY2019 Annual Budget. This dollar increase in conjunction with the increasing EAV is estimated to result in a decreased tax rate, lowering it from $0.5319 to $0.5052 per $100 of EAV or 4.9$ less. The tax rate attributable to the Village remains one of the lowest municipal tax rates in the area. In conjunction with the increase in EAV along with the tax rate reduction, the impact to a homeowner with a fair market value home of $250,000 is estimated to be $2 annually. Legal Analysis Per Illinois Revised Statutes (40 ICS 5) section 3-143 “Report by Pension Board”, the Police Pension Board shall report annually to the Village Board on the condition of the pension fund at the end of its most recently completed fiscal year (see Exhibit A). Mayor Sass asked if the Village Board had any comments or questions. There were none. A MOTION was made to Approve an Ordinance Authorizing the Levy and Collection of Taxes for the Village of Huntley 2018 Annual Property Tax Levy in the Amount of $4,676,115 and to Direct the Village Treasurer to Record the Document Accordingly MOTION: Trustee Hoeft SECOND: Trustee Westberg AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 12.06.18 VB Meeting 7  f) Consideration – An Ordinance Adopting the Village of Huntley 2019 Annual Operating and Capital Budget Village Manager Johnson stated that in accordance with Illinois State Statute and direction received from the Village Board of Trustees, the Fiscal Year 2019 Annual Operating and Capital Budget is presented for final consideration. Upon final Village Board approval, staff will file the required budget documentation with all appropriate County offices in both McHenry and Kane Counties. Staff Analysis Through the budget preparation and review process, operational and capital projects goals have been identified for completion in 2019. Goals have been proposed which are in support of the mission, vision, and values statement of the 2016-2020 Strategic Plan. The operating and capital budgets have been reviewed with the Village Board in the following meetings: • October 11, 2018 – Village Board Meeting - Review of Financial and Debt Management Policies (one-time transfer history, outstanding debt balances, TIF information and debt per capita data) • October 25, 2018 – Village Board Meeting - Review of Personnel and Staffing, Pension, and Insurance Summary. Review of Major Capital Revenue Sources, and Preliminary Capital Requests from Departments. • October 25, 2018 – Village Board Meeting – Policy Direction Regarding 2018 Tax Levy • November 8, 2018 – Village Board Meeting – Review of 2016-2020 Strategic Plan Priorities, Goals, and Objectives The FY19 Operating and Capital Budget totals $23,841,557 in expenditures for all funds, excluding the one-time revenue transfer of $1,375,000 from the FY17 audited surplus in the General Fund and transfers from Water Operating ($1,258,881) to Water Capital Improvement and Equipment and from Wastewater Operating ($940,159) to Wastewater Capital Improvement and Equipment. Compared to the FY18 Budget, the proposed FY19 Budget proposes $2,352,644 (8.98%) less in total expenditures. Major projects included in the FY19 budget are as follows: • $2,160,000 Annual Street Improvement Program that will provide for roadway resurfacing in the Georgian Place Subdivision ($1,810,000) and pavement patching, crack sealing, seal coating, and pavement marking at various locations throughout the Village, most notably in Sun City Neighborhoods 4 and 15 • $385,000 in the Water Capital and Equipment Fund for necessary water main replacements • $276,800 spread across three funds, the second year of a two-year process to replace the Financial Management Software • Reed Road Multi-Use Path ($48,000) for the extension of a multi-use path on the north side of Reed Road from Vine Street east to IL Route 47. The project is funded by a grant from the Illinois Department of Transportation in the amount of $192,000.00, representing 80% of the costs for Phase II and Phase III engineering and construction, with the remaining 20% of the project costs to be matched by the Village. 12.06.18 VB Meeting 8  • $50,000 upgrades and modifications to the Emergency Operations Center In accordance with Village Financial and Budget Policies, the proposed budget for the General Operating Fund is balanced with $11,918,954 in revenues and expenditures. A five-year financial forecast is included for the General Fund in the budget document. The FY19 budget includes the 5-Year Capital Improvement Program for inclusion of the FY19–FY23 projects. Pursuant to State law, the draft budget document was made available for public inspection on the Village’s website and at the front counter of the Municipal Complex beginning Monday, November 26, 2018. In addition, the required public notice was published in the Northwest Herald on November 27, 2018, informing the general public of the budget public hearing scheduled for Thursday, December 6, 2018, at 7:00 p.m. at the regularly scheduled Village Board meeting. Village Manager Johnson referenced the Village of Huntley mission statement stressing the Village’s commitment to providing outstanding municipal services that preserve and enhance the public health, safety and welfare of our residents, businesses and visitors to the community. He also made reference to the annual resident survey which showed a 94% satisfaction ranking of excellent or good from the residents ranking the Quality of Life in the Village of Huntley as compared to a 66% ranking in 2010. Village Manager Johnson added his appreciation to the Management Staff for their hard work and commitment in presenting a realistic budget for 2019. He also thanked staff for their effort in creating, what he believes to be, an award winning budget. Mayor Sass asked if the Village Board had any comments or questions. A MOTION was made to approve an Ordinance Adopting the Village of Huntley 2019 Annual Operating and Capital Budget MOTION: Trustee Goldman SECOND: Trustee Kanakaris AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 g) Consideration - Approval of the Special Tax Rolls for the Village of Huntley Special Service Areas: Village Manager Johnson stated the Village Board is being requested to amend the tax rolls and abate taxes for each Special Service Area (SSA) in the Village. The need to amend the Special Tax Rolls and abatement of SSA taxes is the result of the actual Special Tax Requirement in each Special Service Area for the 2018 levy year. Staff Analysis The Village is not requesting to actually levy taxes for Special Service Areas 6, 7, 8, 9, and 10, but is 12.06.18 VB Meeting 9 required to file Special Service Area Ordinances to ensure that adequate funds are available to pay for the annual bond and interest payment of each Special Service Area. The actual levy was requested at the time of bond issuance for each Special Service Area. MuniCap, Inc., the Village’s financial consultant for administering the service areas, calculates the Special Tax Requirements for Special Service Areas #6 - 10 and prepares a report pursuant to the corresponding “Rate and Method of Apportionment of the Special Tax” as stated in the bond documents. As shown in the chart below all taxes are well below the maximum tax for each Special Service Area and some are below last year’s levied amounts. 2018 Tax Levy/2019 Tax Bills Increase/ Maximum Abated 2018 Tax 2017 Tax (Decrease) SSA #6 Southwind $2,421.22 $488.84 $1,932.38 $1,932.38 $0.00 SSA #7 Southwind $2,421.22 $647.02 $1,774.20 $1,736.56 $37.64 SSA #8 Southwind $2,480.95 $772.31 $1,708.64 $1,726.76 ($18.12) SSA #8 SW/Townhome $1,242.66 $386.84 $855.82 $864.90 ($9.08) SSA #9 Wing Pointe $2,468.16 $693.90 $1,774.26 $1,765.20 $9.06 SSA #9 WP/Townhome $1,542.06 $433.54 $1,108.52 $1,102.86 $5.66 SSA #10 Heritage $2,294.48 $643.10 $1,651.38 $1,666.68 ($15.30) Financial Impact Special Service Areas 5, 11, 12, 13, 14, 15 and 16 are for maintenance of open space and common area in the residential subdivisions. SSA #5 (Southwind) is the only active maintenance SSA levy at this time. No increase over last year’s levy amount is being requested for the 2018 SSA #5 levy. The common area and open space in the other six Special Service Areas are the responsibility of the homeowner’s associations in each of the respective neighborhoods, and the SSA’s are considered “dormant.” The Village would only enact the SSA’s if the common area and open space was not being maintained properly. Legal Analysis The Village’s bond counsel and tax advisors have reviewed the proposed ordinances. The Village Board is requested to approve the Ordinances and to direct the Treasurer to file the documents accordingly in the McHenry County Clerk's office. Village Manager Johnson finished his presentation by reading agenda item g) Consideration - Approval of the Special Tax Rolls for the Village of Huntley Special Service Areas in its totality including the motion for each Special Service Area as listed below: i. A motion is requested of the Village Board to approve an Ordinance Amending the Special Tax Roll for Special Service Area Number 5 (Southwind Subdivision) in the amount of $26,250.00. ii. A motion is requested of the Village Board to approve an Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 6 (Southwind Subdivision) in the amount of $501,192.54 of which $101,189.88 is hereby abated, resulting in a Special Tax Requirement of $400,002.66. 12.06.18 VB Meeting 10  iii. A motion is requested of the Village Board to approve an Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 7 (Southwind Subdivision) in the amount of $450,346.92 of which $120,345.72 is hereby abated, resulting in a Special Tax Requirement of $330,001.20. iv. A motion is requested of the Village Board to approve an Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 8 (Southwind Subdivision) in the amount of $547,410.00 of which $170,407.38 is hereby abated, resulting in a Special Tax Requirement of $377,002.62. v. A motion is requested of the Village Board to approve an Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 9 (Wing Pointe Subdivision) in the amount of $1,360,488.85 of which $382,488.47 is hereby abated resulting in a Special Tax Requirement of $978,000.38. vi. A motion is requested of the Village Board to approve an Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 10 (Heritage of Huntley Subdivision) in the amount of $750,294.96 of which $210,293.70 is hereby abated, resulting in a Special Tax Requirement of $540,001.26. vii. A motion is requested of the Village Board to approve an Ordinance Abating the Special Service Area Taxes for Special Service Area Number 11 (Georgian Place Subdivision). viii. A motion is requested of the Village Board to approve an Ordinance Abating the Special Service Area Taxes for Special Service Area Number 12 (Northbridge Subdivision). ix. A motion is requested of the Village Board to approve an Ordinance Abating the Special Service Area Taxes for Special Service Area Number 13 (Covington Lakes Subdivision). x. A motion is requested of the Village Board to approve an Ordinance Abating the Special Service Area Taxes for Special Service Area Number 14 (Lions Chase Subdivision). xi. A motion is requested of the Village Board to approve an Ordinance Abating the Special Service Area Taxes for Special Service Area Number 15 (Cider Grove Subdivision). xii. A motion is requested of the Village Board to approve an Ordinance Abating the Special Service Area Taxes for Special Service Area Number 16 (Talamore Subdivision). Mayor Sass asked if the Village Board had any comments or questions; there were none. Mayor Sass then asked for a roll call vote to approve all items included in agenda item g) Consideration - Approval of the Special Tax Rolls for the Village of Huntley Special Service Areas. A MOTION was made for the approval of the Special Tax Rolls for the Village of Huntley Special Service Areas ordinances as outlined below: i. An Ordinance Amending the Special Tax Roll for Special Service Area Number 5 (Southwind Subdivision) in the amount of $26,250.00. 12.06.18 VB Meeting 11  ii. An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 6 (Southwind Subdivision) in the amount of $501,192.54 of which $101,189.88 is hereby abated, resulting in a Special Tax Requirement of $400,002.66. iii. An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 7 (Southwind Subdivision) in the amount of $450,346.92 of which $120,345.72 is hereby abated, resulting in a Special Tax Requirement of $330,001.20. iv. An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 8 (Southwind Subdivision) in the amount of $547,410.00 of which $170,407.38 is hereby abated, resulting in a Special Tax Requirement of $377,002.62. v. An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 9 (Wing Pointe Subdivision) in the amount of $1,360,488.85 of which $382,488.47 is hereby abated resulting in a Special Tax Requirement of $978,000.38. vi. An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 10 (Heritage of Huntley Subdivision) in the amount of $750,294.96 of which $210,293.70 is hereby abated, resulting in a Special Tax Requirement of $540,001.26. vii. An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 11 (Georgian Place Subdivision). viii. An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 12 (Northbridge Subdivision). ix. An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 13 (Covington Lakes Subdivision). x. An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 14 (Lions Chase Subdivision). xi. An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 15 (Cider Grove Subdivision). xii. An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 16 (Talamore Subdivision). MOTION: Trustee Piwko SECOND: Trustee Kanakaris AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 h) Consideration – An Ordinance Approving A Partial Abatement of the Village Portion of Real Estate Taxes Levied for the Year 2018 (Collectable in 2019) on Certain Property (Hiwin Corporation, 12455 Jim Dhamer Dr.) Located Within the Village of Huntley 12.06.18 VB Meeting 12 Village Manager David Johnson reported that Hiwin Corporation (Hiwin), a manufacturer of precision machinery components, completed construction of its 117,500 square foot U.S. Corporate headquarters building in the Huntley Corporate Park at 12455 Jim Dhamer Dr. in 2017. Hiwin purchased 15 acres to complete the project and to provide room for future expansion of the business. The Village Board approved Ordinance (O)2015-10.41 on October 8, 2015, approving a Business Development Agreement with Hiwin that provides for a 50%, three-year property tax abatement. The abatement is tied to job creation criteria that must be met by Hiwin during the course of the abatement period. Staff Analysis The Business Development Agreement provides that Hiwin shall be deemed to have met the employment requirement on December 31, 2017 by employing at least 40 individuals and each December 31 through the term of the tax abatement period if actual employment has increased by at least 10 employees (50 total jobs in 2018, 60 total jobs in 2019, and 70 total jobs in 2020). Hiwin (or any affiliate or successor by merger, acquisition or assignment of some or all of the business operations of Hiwin) shall provide no less than 90% of the Promised Jobs as defined above by December 31, 2017. Hiwin has met the required employment level for 2017 and shall receive the full 50% abatement. In order for the Kane County Clerk to process the abatement, the Village is required to adopt a tax abatement ordinance directing the County Clerk to abate a portion of real estate taxes levied for 2018 and collectable in 2019. Financial Impact The estimated value of the amount to be abated is $8,223, with the Village receiving the remaining $8,223. Legal Analysis The Village Attorney has reviewed the ordinance and all is in order for Village Board action. Mayor Sass asked if there were any further questions; there were none. A MOTION was made to approve an Ordinance Approving A Partial Abatement of the Village Portion of Real Estate Taxes Levied for the Year 2018 (Collectable in 2019) on Certain Property (Hiwin Corporation, 12455 Jim Dhamer Dr.) Located Within the Village of Huntley MOTION: Trustee Hoeft SECOND: Trustee Goldman AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 i) Consideration – An Ordinance Approving A Partial Abatement of the Village Portion of Real Estate Taxes Levied for the Year 2018 (Collectable in 2019) on Certain Property (Weber-Stephen, 14100 Weber Drive) Located Within the Village of Huntley Village Manager David Johnson reported that Duke Realty Limited Partnership (Duke) completed 12.06.18 VB Meeting 13 construction of a 757,120 square foot light industrial building to serve as the global distribution center for Weber-Stephen Products (Weber) located at 14100 Weber Drive in June, 2015. Since 1996, Weber has occupied approximately 625,000 square feet of space on Oak Creek Parkway behind Jewel/Osco. About 400,000 square feet has been used for distribution operations and the remaining 225,000 square feet was used for manufacturing operations. With the new distribution facility, Weber has converted distribution space on Oak Creek Parkway to manufacturing space. Staff Analysis Concurrent with annexation of the property, the Village entered into a Business Development Agreement (BDA) with Duke and Weber-Stephen that included a 50%, 5-year property tax abatement. Duke leases the facility to Weber-Stephen Products under a triple net lease, under the terms of which Weber is obligated to pay the real estate taxes levied against the Property (PIN: 02-16-201-002). The 2016 tax bill, which was payable in 2017, was the first full year of tax assessment for the property. Tax Year Percent Abated Abatement Amount Village Received 2016, payable in 2017 50% $31,745.31 $31,745.31 2017, payable in 2018 38.5% $26,364.66 $42,114.99 2018, payable in 2019 43% $29,445 (estimated) $39,035 (estimated) As reported by Weber, the total number of employees working in Huntley is 738 (184 warehouse and 554 manufacturing). The abatement for the 2018 tax bill payable in 2019 is reduced, as Weber met 85% of the aggregate job creation goal for the distribution and manufacturing facilities. Therefore, per the terms of the BDA, the abatement amount is reduced from 50% to 43% (85% of 50%=43%). In order for the Kane County Clerk to process the Year Three abatement, the Village is required to adopt a tax abatement ordinance directing the County Clerk to abate a portion of real estate taxes levied for 2018 and collectable in 2019. Financial Impact The estimated value of the amount abated for Year Three is $29,445, with the Village receiving the remaining $39,035. Legal Analysis The Village Attorney has reviewed the ordinance and all is in order for Village Board action. Mayor Sass asked if there were any questions or concerns. Trustee Westberg asked if there was a particular reason Weber fell short on their job creation goal. Village Manager Johnson stated that although the jobs created are still a positive, manufacturing is down right now so the job creation numbers fell short. A MOTION was made to Adopt an Ordinance Approving A Partial Abatement of the Village Portion of Real Estate Taxes Levied for the Year 2018 (Collectable in 2019) on Certain Property (Weber-Stephen, 14100 Weber Drive) Located Within the Village of Huntley. MOTION: Trustee Westberg SECOND: Trustee Hoeft AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg 12.06.18 VB Meeting 14  NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 j) Consideration – Approval of Payout Request No. 3 (Final) to Mauro Sewer Construction Inc. for the 2018 Water Main Replacement Program in the amount of $138,040.58 Director of Public Works and Engineering Tim Farrell stated that on May 24, 2018, the Village Board approved a Resolution Authorizing a Bid Award to Mauro Sewer Construction Inc. in the amount of $407,963.00 for the 2018 Water Main Replacement Program. Mauro Sewer Construction, Inc. has submitted the third and final payout request for the 2018 Water Main Replacement Program. The Village Public Works & Engineering Department has reviewed the request and all is in order for approval. The project ended up being $33,788.30 (8%) over the contract award amount due to poor soils and associated additional trench backfill and pavement patching required. Staff Analysis Total Previous Amount Pay Request Retention Completed Work Payments Requested #1 $151,540.00 $15,154.00 $0.00 $136,386.00 #2 $319,695.50 $15,984.78 $136,386.00 $167,324.72 #3 (Final) $441,751.30 $0.00 $303,710.72 $138,040.58 Financial Impact The FY2018 Budget includes $325,000 in the Water Equipment Replacement Fund line item 515-00-00- 8004 for the 2018 Water Main Replacement Program. The base Bid amount was for $282,703.00 which included water main replacement of approximately 1,350 feet of 10” pipe, valve vaults, fire hydrants and new service connections and Option #1 Bid amount of $407,963.00 which included the base bid work and an additional 825 feet of 10” pipe on the Smith Court loop. Option #1 was approved by the Village Board on May 24, 2018 with a necessary budget amendment approved on August 9, 2018. This final payout will require a budget amendment for the $33,789 in the Water Capital and Equipment Fund. Legal Analysis A budget amendment is required. Mayor Sass asked if there were any questions. There were none. A MOTION was made to approve Payout Request No. 3 (Final) to Mauro Sewer Construction, Inc. in the amount of $138,040.58 for the work completed under the 2018 Water Main Replacement Program. MOTION: Trustee Goldman SECOND: Trustee Piwko 12.06.18 VB Meeting 15  AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 k) Consideration –Approval of An Ordinance Amending the Fiscal Year-End December 31, 2018 Budget Director of Public Works and Engineering Tim Farrell stated the Village Board adopted Ordinance (O) 2017-12.62 on December 7, 2017 approving the budget for FY2018 (January 1, 2018 - December 31, 2018). Staff Analysis On May 24, 2018, the Village Board approved a Resolution Authorizing a Bid Award to Mauro Sewer Construction Inc. in the amount of $407,963.00 for the 2018 Water Main Replacement Program. Mauro Sewer Construction, Inc. has submitted the third and final payout request for the 2018 Water Main Replacement Program. The Public Works and Engineering Department has reviewed the request and all is in order for approval. The project ended up being $33,788.30 (8%) over the contract award amount due to the poor soils and associated additional trench backfill and pavement patching required. This final payout will require a budget amendment for the $33,789 in the Water Capital and Equipment Fund. The following shows the individual line item impacted by this budget amendment: Fund Account Number Type Amount Water Capital Improvement Fund Water Infrastructure Additional work on the Water Main Improvement 515-00-00-8004 Expenditure $33,789 Replacement Program Financial Impact The impact from the excess expenditures over appropriation adjustments will increase the budget amount. Note the amendment will not affect the General Fund budget. Legal Analysis Not required. Mayor Sass asked if there were any questions. There were none. A MOTION was made to approve an Ordinance Amending the FY2018 Budget. MOTION: Trustee Hoeft SECOND: Trustee Kanakaris AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None 12.06.18 VB Meeting 16  ABSENT: Trustee Leopold The motion carried: 5-0-1 l) Consideration – Approval of Payout Request No. 3 and Final to Arrow Road Construction Company for the 2018 MFT Street Program in the amount of $33,322.79 Director of Public Works and Engineering Tim Farrell reported that on April 26, 2018, the Village Board approved a resolution appropriating $750,000.00 in Motor Fuel Tax Funds for Maintenance of Streets and Highways for the 2018 Street Improvement Program and a Resolution Authorizing a Bid Award and Construction Contract to Arrow Road Construction Company in the amount of $636,443.75 for the grind and overlay of Huntley Meadows Subdivision including Main St. for a total length of 11,824 ft. (2.24 miles). Arrow Road Construction Company has submitted the third and final payout request for the 2018 MFT Street Program. The Village’s project engineer, CBBEL, has reviewed the request and all is in order for approval of Payout Request No. 3 (final). The project is $1,657.17 (<1%) below the contract award amount. Staff Analysis Total Previous Amount Pay Request Retention Completed Work Payments Requested #1 $180,611.40 $18,061.14 (10%) $0.00 $162,550.26 #2 $633,119.78 $31,655.99 (5%) $162,550.26 $438,913.53 #3 (Final) $634,786.58 $0.00 $601,463.79 $33,322.79 Financial Impact The FY2018 Budget includes $589,000 in the MFT Fund line item 460-00-00-8001 for the 2018 Street Improvement Program. A budget amendment to approve the increased expenditure was approved by the Village Board on August 9, 2018. Legal Analysis None required. Mayor Sass asked if there were any questions or concerns. There were none. A MOTION was made to approve Payout Request No. 3 and Final to Arrow Road Construction Company in the amount of $33,322.79 for the work completed under the 2018 MFT Street Program. MOTION: Trustee Westberg SECOND: Trustee Kanakaris AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 12.06.18 VB Meeting 17  m) Consideration – A Resolution Approving an Intergovernmental Agreement for the Provision of McRide Dial-A-Ride Transit Service in 2019 Assistant Village Manager Lisa Armour reported that the current intergovernmental agreement (IGA) with the County of McHenry, the Cities of Crystal Lake, the Harvard, Marengo, McHenry, and Woodstock, and the Villages of Huntley, Johnsburg, Richmond, Ringwood, and Union, and the Townships of Chemung, Dorr, Grafton, Greenwood, Marengo, McHenry, Nunda, Richmond, and Riley for General Public Dial-A-Ride Transit Service expires on December 31, 2018. The service, also known as MC Ride, provides bus service for seniors, disabled, and the general public from the Village to other participating communities that are a party to the IGA. In order to continue providing the service to Village residents a new IGA must be entered into with the County and other participating agencies. Staff Analysis The Agreement will be in effect starting on January 1, 2019 and shall end on December 31, 2019. The Partner Agencies agree that the IGA for MCRide service for 2020 shall be subject to approval before December 31, 2019. Fares have increased for 2019. Below are some of the highlights of the program (Note: Sunday service has been added): a. Service hours are Monday – Friday 6 a.m. – 7 p.m.; Saturday and Sunday 9 a.m. – 5 p.m. b. If a rider has a disability and requires a personal travel assistant, one assistant rides free c. Up to two children 7 years or younger can ride free per fare paying adult d. Service would be provided to all residents within the Village of Huntley, including Kane County e. Fees are as follows:  General Public $3.00 (was $2.50)  Senior (+60) $1.50 (was $1.25)  Person with a Disability $1.50 (was $1.25) (Plus $.25 / mile for each additional mile after the first five miles) f. Riders may travel to any location that is included in the MCRide Program g. The Partner Agencies agree to allow trip reservations for general public riders no more than twenty-four (24) hours before the requested trip, and no less than two (2) hours before the requested trip, and trip reservations for seniors and individuals with disabilities no more than seven (7) days before the requested trip, and no less than two (2) hours before the requested trip (the “Service Reservations”). The average number of distinct riders for the period of January – September 2018 was 64. A total of 3,571 passenger trips originating in Huntley were provided during the same period. Financial Impact The cost for the Village to participate in 2019 is $30,364 ($1.25 per capita), which is a slight increase (4%) from a $1.20 per capita in 2018, but still less than the $1.31 per capita in 2017. The increase is to help offset higher program operating expenses due to expanded service hours and variable gas/contractor expenses. The proposed FY19 budget includes funds to continue participation in the program. Legal Analysis 12.06.18 VB Meeting 18  Village Attorney has reviewed and all is in order for Village Board consideration. Mayor Sass asked if there were any questions or concerns. There were none. A MOTION was made to approve a Resolution Approving an Intergovernmental Agreement for the Provision of McRide Dial-A-Ride Transit Service in 2019. MOTION: Trustee Goldman SECOND: Trustee Kanakaris AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 n) Consideration – A Resolution Amending Resolution (R)2018-09.69 - To Accept and Place on File the Village of Huntley Village Board and Advisory Board Meeting Date and Holiday Schedule for 2019 Mayor Sass reported that at the September 13th Village Board meeting, Resolution (R)2018-09.69 was approved accepting the Village Board and Advisory Board meeting date and holiday schedule for 2019. Staff Analysis The Historic Preservation Commission (HPC) is requesting to amend the start time for their meetings conducted each month. In September, the meeting time approved for the HPC was 6:00 p.m. on the Tuesday following the third Monday of the month. The HPC is requesting to move the start time to 4:00 p.m. keeping the day of the week the same. All Commissioners are available to meet at the earlier time. HISTORIC PRESERVATION COMMISSION meetings are held at 6:00 4:00 p.m. at the Municipal Complex Board Room, 10987 Main Street, Huntley, IL 60142 on the dates listed below. (Tuesday following 3rd Monday of each month) January 22, 2019 May 21, 2019 September 17, 2019 February 19, 2019 June 18, 2019 October 22, 2019 March 19, 2019 July 16, 2019 November 19, 2019 April 16, 2019 August 20, 2019 December 17, 2019 Mayor Sass asked if there were any questions or concerns. There were none. A MOTION was made to approve a Resolution Amending Resolution (R)2018-09.69 to Accept and Place on File the Village of Huntley Village Board and Advisory Board Meeting Date and Holiday Schedule for 2019, as amended for a 4:00 p.m. meeting time for the Historic Preservation Commission as presented. MOTION: Trustee Westberg SECOND: Trustee Hoeft AYES: Trustees: Goldman, Hoeft, Kanakaris, Piwko and Westberg 12.06.18 VB Meeting 19  NAYS: None ABSENT: Trustee Leopold The motion carried: 5-0-1 VILLAGE ATTORNEY’S REPORT: None VILLAGE MANAGER’S REPORT: None VILLAGE PRESIDENT’S REPORT: Mayor Sass reminded the Village Board of the McCOG holiday dinner next week at Bull Valley. UNFINISHED BUSINESS: None NEW BUSINESS: None EXECUTIVE SESSION: a) Probable or Imminent Litigation and Pending Litigation b) Contractual c) Property Acquisition, Purchase, Sale or Lease of Real Estate d) Appointment, Employment, Dismissal, Compensation, Discipline and Performance of an Employee of the Village of Huntley e) Collective Bargaining f) Appointment, Discipline or Removal of Public Officers g) Appointment of a Public Officer h) Review of Closed Session Minutes i) Other A MOTION was made at 7:38 p.m. to Enter into Executive Session for a) Probable or Imminent Litigation and Pending Litigation and (c) Property Acquisition, Purchase, Sale or Lease of Real Estate MOTION: Trustee Piwko SECOND: Trustee Kanakaris The Voice Vote noted all ayes and the motion carried. A MOTION was made to exit Executive Session at 7:57 p.m. MOTION: Trustee Piwko SECOND: Trustee Hoeft The Voice Vote noted all ayes and the motion carried. POSSIBLE ACTION ON ANY CLOSED SESSION ITEM: None ADJOURNMENT: There being no further items to discuss, a MOTION was made to adjourn the meeting at 8:00 p.m. MOTION: Trustee Piwko SECOND: Trustee Westberg The Voice Vote noted all ayes and the motion carried. 12.06.18 VB Meeting 20 Respectfully submitted, Rita McMahon Village Clerk 12.06.18 VB Meeting 21