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HomeMy WebLinkAbout23 - November 18, 2009 COW COMMITTEE OF THE WHOLE MEETING November 18, 2009 The regular Committee of the Whole meeting was called to order by Mayor Schock at 5:08 p.m. in the Council Chambers. Present: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Absent: None. Approval of Minutes Councilmember Steffen made a motion, seconded by Councilmember Gilliam, to approve the minutes of the November 4, 2009, regular meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Budget Discussion City Manager Sean Stegall recapped the previous two budget discussions. He stated that part of tonight’s discussion would focus on the public/private partnerships between the city and the Elgin Area Chamber of Commerce, Downtown Neighborhood Association, and the Elgin Area Convention and Visitors Bureau. He explained that these organizations will assist with the following: • Elgin Area Chamber of Commerce • Retention • Secondary New Business • Communications and Marketing • Primary • Website • Promotional Materials • Primary State of Illinois • Primary Business contacts • County contacts • Special Projects • Downtown Neighborhood Association • Downtown Promotions and Programs • Facades • Loan Program • Community Streetscape • Business Improvement Plans • E-Elgin Incentives • Lead on all things downtown Committee of the Whole November 18, 2009 Page 2 • Elgin Area Convention and Visitors Bureau • Tourism • Sports Marketing • Business Conferences He noted that the city will coordinate these efforts and focus on recruiting new businesses. He said that the primary responsibility of the new Economic Development Director will be new business recruitment. These combined efforts should provide measureable results. Colleen Lavery, Assistant Finance Director, gave an overview of the Water Fund, reviewing all of the capital projects, the budget, and revenues and expenditures. She explained that 99% of the revenue for the Water Fund comes from water billing. She explained that the proposed 9% increase in water rates for each of the next five years is to offset the rising expenses related mainly to chemicals and electricity. She noted that, in comparison, the city would be third in terms of water rates to other surrounding communities. She stated that one goal is to have cash reserves for the fund be 25% of expenditures. Ms. Lavery then reviewed the proposed list of capital projects, which are listed below: 1. Water Main Developer Reimbursement 2. Route 20/Nesler Water Main Connection 3. Security System Upgrade 4. Water Tower Refurbishing 5. Master Plan Update 6. Technology Investments 7. Annual Water Distribution System Upgrading 8. Central Business District Water Distribution System Upgrades 9. Airlite Water Treatment Plant Improvements 10. Filter to Waste Riverside Water Treatment Plant 11. Plank Road Booster Pump Station 12. Russell Road Water Tank 13. McBride Street Water Main Relocation Mayor Schock mentioned that he was concerned about the proposed 9% per year increase for the next five years for water rates. He said that other communities have one rate structure for winter months and a higher one for summer. He would like staff to explore this possibility for the future so that need can be separated from want. Councilmember Prigge agreed with Mayor Schock and thought this would provide incentive for water conservation. He also asked how this rate increase could be explained to the public. Ms. Lavery said that electricity costs had increased 79% and that chemicals had increased approximately 50%. Councilmember Kaptain mentioned that debt service was crushing because the expected housing expansion did not happen. Mr. Nowicki remarked that debt has been refinanced at lower interest rates whenever possible. Committee of the Whole November 18, 2009 Page 3 Councilmember Warren asked if staff could review the proposed rate increases to see if they could be reduced. At this time, discussion of the budget was suspended and the Council moved to the next item on the Committee of the Whole agenda. Consideration of Proposed Amendment to the Liquor Code to Create a New Liquor License Classification for the Road House Bar & Grill and Main Event Elgin Establishment A resolution will be presented at tonight's Council meeting for adoption by the City Council. Councilmember Kaptain asked what time events would typically end. The owner, Ed Mascari was present and answered that it was hard to predict, but generally by 1:00 a.m. Councilmember Kaptain then asked what happens when an event ends and how the police detail would be affected. Deputy Chief Robert Beeter stated that the police detail typically stays thirty minutes after an event ends to assist with crowd control. Mr. Mascari mentioned that he plans to complete the walkway to the parking garage and most of the people will be directed to exit through there. Councilmember Kaptain thanked Mr. Mascari for doing that. Councilmember Dunne expressed concerns about noise. Corporation Counsel William Cogley said that the noise issue is addressed in the liquor license. Councilmember Dunne then mentioned that an advertisement for wait staff includes a requirement for dancing on the bar. Mr. Mascari explained the dancing would be choreographed country line dancing. Councilmember Warren asked what the attendance expectations will be. Mr. Mascari stated that it was expected there would be less than 400 people for the martial arts events and 800 maximum for concerts. Councilmember Steffen asked what the difference was between what is seen on television and what was going to be present at the Main Event. Mr. Mascari explained that his programs will be rules driven versus the sensationalism that is seen on television. He expects that there will be a mixed martial arts program about every six weeks, Friday night fights twice a month, and concerts and comedy acts at other times. Councilmember Prigge asked why it was necessary to have a 3:00 or 4:00 a.m. liquor license. Mr. Mascari replied that it was to keep the business in Elgin and to compete against other venues such as the Cadillac Ranch and places in Schaumburg. Councilmember Prigge asked if it would be crippling to have a 2:00 a.m. license. Mr. Mascari said that since this license is the only one of its kind, there will be great accountability. He also felt that the ticket prices would regulate the clientele. He said he was committed to being a good neighbor. Councilmember Warren said the focus should remain on the investment being made in the property and that it will bring people to the downtown area. Committee of the Whole November 18, 2009 Page 4 Snow Removal Presentation By consensus, this item was tabled until the meeting of December 2, 2009. Consideration of Amendment to Construction Engineering Services Agreement with Wills Burke Kelsey Associates, Ltd. for Wing Street/State Street Intersection Project Councilmember Gilliam made a motion, seconded by Councilmember Kaptain, to approve an agreement with Wills Burke Kelsey Associates, Ltd. in the not-to-exceed amount of $35,897.19 for the Wing Street/State Street Intersection Project. Councilmember Dunne asked if this cost increase was due to the moving of the utilities and Mr. Stegall replied that it was. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Acceptance of Bowes Creek Country Club (North) Lift Station from Toll Brothers, Inc. Councilmember Steffen made a motion, seconded by Councilmember Gilliam, to accept the permanent lift station and forcemain system located in the Bowes Creek Country Club development and constructed by Toll Brothers. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Financing Opportunities under the American Recovery and Reinvestment Act of 2009 Councilmember Kaptain made a motion, seconded by Councilmember Prigge, to approve the designation of a “City-Wide Recovery Zone” for the purposes of issuing certain types of governmental bonds. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Holiday Gift Certificates for Active City Employees Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to approve issuing $25 gift certificates to all active employees receiving checks in the 25th pay period, for a total cost of approximately $24,272.50. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Committee of the Whole November 18, 2009 Page 5 Consideration of Agreement with Krueger Appraisal Services and Ovington Appraisa l Services for Appraisal Services for the Neighborhood Stabilization Program Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to approve the agreements with Krueger Appraisal Services, Inc. and Ovington Appraisal Services for the City of Elgin’s Neighborhood Stabilization Program at a cost of $450 per appraisal and not to exceed $10,800. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Donation of Decommissioned Fire Engine to Elgin Community College Councilmember Dunne made a motion, seconded by Councilmember Warren, to approve the donation of a decommissioned fire engine to Elgin Community College. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Announcements from Council Councilmember Kaptain announced that the Salvation Army is looking for volunteers to ring bells. Councilmember Prigge asked for an update on the Larkin Center situation. Mr. Stegall stated that a report would be forthcoming. Councilmember Prigge also congratulated members of SEIU for their efforts since the recent reduction in force. Councilmember Gilliam concurred. Announcements from Staff Jim Bell, Parks Superintendent, announced that a grant from the federal government, in the amount of $1.795 million, has been awarded to the city of Elgin and Davey Tree for a tree enhancement program. Brian Borkowicz, of Davey Tree, explained that one of the reasons the city was awarded the grant was because of its comprehensive, urban forestry management plan. He stated that the U.S. Forestry Service is very interested in the results of the project. Josh Behounek of Davey Tree noted that the goals of the project include a risk reduction plan, tree planting, an invasive species plan, and public education. He noted this is the first program of this type and he thanked the city, and particularly David Lawry and Jim Bell, for their cooperation. Councilmember Gilliam said that Elgin is the only city to get an award of this size and that it is an honor to our staff. Councilmember Warren noted that the tree inventory was an important component of this project and wondered if it would include trees on private property. Mr. Borkowicz did not know if it did, but stated he would check on that. Committee of the Whole November 18, 2009 Page 6 Mayor Schock thanked both Davey Tree and staff for the efforts in securing this grant. Public Information Officer, Sue Olafson, announced upcoming city events. Meeting Suspended Councilmember Gilliam made a motion, seconded by Councilmember Prigge, to suspend the meeting, resume the Budget Discussion after the regular Council meeting, and go into Executive Session at this time for the purposes of the following: Appointment, Employment, Compensation, Discipline, Performance or Dismissal of Specific Employees of the Public Body - Exempt Under Section 120/2(c)(1) of the Open Meetings Act Selection of a Person to Fill a Vacant Office, Including a Vacancy in a Public Office, When the Public Body is Given Power to Appoint Under Law or Ordinance, or the Discipline, Performance or Removal of the Occupant of a Public Office, When the Public Body is Given Power to Remove the Occupant Under Law or Ordinance - Exempt Under Section 120/2(c) (3) of the Open Meetings Act Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. The meeting was suspended at 6:50 p.m. The Committee of the Whole meeting was resumed at 8:20 p.m. Budget Discussion - continued Ms. Lavery began a review of the Sewer Fund noting that this is the second of three self- supporting enterprise funds established to provide residents and businesses with wastewater collection. She mentioned that the city is responsible for the maintenance of the sewer lines and that wastewater treatment services are provided by the Fox River Water Reclamation District. Ms. Lavery reviewed the sewer capital projects, and revenues and expenditures. She said that rates have not kept up with expenses and that the proposed 2010 budget included a nine percent rate increase in sewer rates for the next five years. Mr. Nowicki stated that to fund the proposed 2010 sewer strategic initiatives, it will be necessary to issue bonds in the amount of $1,105,000. There are no impact fees to reduce borrowings as previously collected amounts have been allocated to ongoing projects. He also mentioned that the fund will need to refinance the $8.4 of appreciation bonds issued in 2005 and 2006. Funding of these bond payments was to be made from collection of sewer interceptor fees being charged Committee of the Whole November 18, 2009 Page 7 to those homeowners who are connected to the Trunk 30 interceptor sewer. However, actual fee collection has not occurred as projected because of the downturn in the housing market. In summary, Ms. Lavery said that the future emphasis will be on technology investments, strategic infrastructure improvements, retaining competitive advantages, having a competitive rate structure, and being financially sustainable. Councilmember Kaptain asked if approval of the budget was only approving the rate increases for one year. Mayor Schock said that was correct and that the proposed rate increases for the remaining four years was only a plan. Mr. Stegall said other scenarios would be brought back to the council at that time. Mayor Schock said he would also be interested in having the overhead sewer loans be interest free. Assistant City Manager Rick Kozal then reviewed the proposed business license proposal. He stated that there are approximately 3,000 businesses located within the city and proposed a general business premises license to cover them. The annual fee would be determined by the square footage of the premises and recommended the following for the fee structure: There would be no annual inspection required other than the normal code and fire inspections, and the above suggested fees place the city competitively with surrounding municipalities. Estimated revenue would be approximately $550,000. Mr. Kozal said that the city would maintain its strategic alliances with the Elgin Area Chamber of Commerce and the Downtown Neighborhood Association through its purchase of services agreements. Councilmember Gilliam asked about the status of the vacant Economic Development Director position. Mr. Stegall said that there are plans to fill the position. Mayor Schock asked if non-profits would need to be licensed and Mr. Kozal said they would. The Mayor then suggested that they be removed from the licensing requirements and the fee schedule be adjusted accordingly. Mr. Kozal agreed that could be done. Committee of the Whole November 18, 2009 Page 8 Councilmember Dunne asked if churches would be included. Mr. Kozal said they could be exempted also along with schools and other governmental entities. Mayor Schock suggested that data should be collected from exempt agencies. Councilmember Prigge said he does not want to exempt the non-profits so that they could be regulated. The Mayor said that the purpose of the business license is to fund a program and that other ways are already in place to enforce conformance. Councilmember Prigge asked if home-based businesses would be included and Mr. Kozal said yes. Councilmember Prigge also asked about one-day occasional businesses and Mr. Kozal said they were not included because the program presumes a premises. Councilmember Prigge mentioned that he would like to see an inspection feature. Mr. Kozal said an occupancy permit triggers an inspection and Councilmember Dunne stated that the Fire Department conducts annual inspections. Mr. Stegall suggested that too many inspections could be counter-productive and that there are other avenues available for code enforcement. Councilmember Kaptain stated that he does not want to create a monster for city staff nor a burden on the community. Councilmember Warren felt it was critical that there by an inventory of all businesses in town, but that it should be as easy as possible for all concerned. The businesses should feel they get some value from their license fee. By consensus it was decided that the non-profits should be exempt from the license fees, but that data should still be collected from them. Staff was asked to bring back additional information regarding the suggested change. Adjournment Upon conclusion of the budget discussion, Councilmember Warren made a motion, seconded by Councilmember Steffen, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. The meeting was adjourned at 9:20 p.m. s/Diane Robertson December 2, 2009 Diane Robertson, City Clerk Date Approved