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1976-09-20 - Village Board Regular Meeting - Minutes 4707 9/20/76 MINUTES OF THE REGULAR MEETING THE PRESIDENT AND 0 TR USTEES BOARD OF OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, HELD MONDAY, SEPTEMBER 20, 1976, AT THE MUNICIPAL BUILDING, 50 RAUPP BOULEVARD, BUFFALO GROVE , ILLINOIS. President Fabish called the meeting to order at approximately 8:00 P.M. Those present stood and pledged allegiance to the Flag. The Clerk called the roll and found the following: PRESENT: President Fabish; Trustees Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal Also present were Daniel Larson , Village Manager; Richard Raysa and William Raysa, Village Attorney; Nick Rubino, Village Treasurer; Charles McCoy, Director of Public Works; Carl Rapp, Assistant Village Engineer; Richard Glueckert, Finance Director; and William Whited, Administrative Assistant. 1 . Minutes of Spetember 13, 1976 Moved by Carroll , seconded by Rech to approve the minutes of the regular meeting held September 13, 1976, as published. Upon roll call , the vote was: AYES: 6 - Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal NAYES: 0 - None Motion declared carried. 2. Village Manager's Report The Board noted the Summary of Administrative Activities for the Month of August, 1976. 3. President 's Report Park District Trustee Bogart reported that the committee composed of 2 Park District Commissioners and 2 Village Trustees was successful . He felt they were able to arrive at some equitable solutions to some of the problems. A joint report will be submitted to the Board next week, and a vote on each item will be in order. The Park Board will receive the report at the same time. Boy Scouts President Fabish recognized a boy scout from Troop 65 who was present to work on one of his merit badges. 4. COMMITTEE OF THE WHOLE Buffalo Grove Golf Course James Shirley reviewed Dick Glueckert 's memo, dated September 16, 1976, regarding proposals from the Continental Bank and Allstate Insurance Company for installment purchase agreements to finance purchase of the Buffalo Grove Golf Course. Midwest Securities has offered to try to secure a loan for a fee of li of the loan. The memo also outlined proposals from 3 bond consultants 4708 9/20/76 for assisting with the possible public sale of bonds for the financing. He felt an installment purchase agreement would be the best method of financing because a bond issue would include a bond consultant fee (between $2,750 and $7,500) , underwriter fee (approximately $22,000) , legal fees, and cost of referendum. Mr. Shirley reviewed Mr. Raysa's memo, dated February 18, 1976, explaining the difference between the 20 year statute and the 10 year statute for purchasing real estate via installment contracts. Mr. Raysa did not feel any financial institution would want to finance via the 10 year statute because it does not provide for a separate tax levy. Mr. Shirley suggested that the Board authorize Mr. Glueckert and Mr. Larson to obtain further definition of the Continental Bank proposal and repayment schedule and to ask a security house to seek additional proposals. In response to a question from President Fabish, Mr. Shirley felt the salability of the program is dependent upon being able to show the citizens what revenue the golf course can generate on its own and that it will not be a burden on the tax payers. In response to a question from Mr. Larson, Mr. Raysa said the 20 year statute requires a notice to be published twice in 30 days and after the last publica- tion, another 60 days must pass to allow someone to file for a back-door referendum. After that time, a special tax levy must be passed prior to December 31 , 1976. Paul Winston of Midwest Securities did not feel they would be able to find a proposal better than Continental 's, but they would be willing to try. Discussion took place regarding revenue sources available to a home rule community, right to prepayment of loan without penalty, cost of a back-door referendum, the loan being a tax free obligation of the financial institution, negotiating a balloon payment , and repayment schedule, Trustee Carroll referred to Mr. Glueckert 's memo and asked if the maximum borrowing rate of 8% could be changed in the future. She noted that Continental Bank's proposal , dated September 17, 1976, said the interest rate would not exceed the Village's legal maximum borrowing rate. Mr. Glueckert said if the legal maximum borrowing rate would change, Continental 's rate would change to that maximum. Mr. Raysa said that the legal rate has changed from 5% to 8% in the last 15 years. Mr. Winston said that home rule communities are not subject to the 8% limitation; therefore, it is possible the rate would be higher when the Village reaches that status. Trustee Marienthal suggested that when the decision to purchase is made, citizen information meetings be held as soon as possible to avoid a back- door referendum. Moved by Bogart, seconded by Rech to direct the staff to gather further information regarding proposals from Allstate Insurance and Continental Bank, enter into discussion as to interest rate, length of time, maximum borrowing rate to be allowed, and then the Board act upon information received. Upon roll call , the vote was: 4709 9/20/76 AYES: 6 - Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal NAYES: 0 - None Motion declared carried. Trustee Rech requested a 7% break-down of principal and interest and a schedule from Allstate. She also requested the Buffalo Grove Golf Club schedule to include the tax levy for 1977. Water Revenue Bond Refunding Because he felt the subject should be returned to the Finance Committee for further evaluation, it was moved by Bogart, seconded by Marienthal to table consideration of refunding the 1970 Waterworks and Sewerage Fund Revenue Bonds. Mr. Shirley stated that Paul Winston of Midwest Securities is present to discuss their proposal for the refunding and felt that he should be given the opportunity to make his presentation. Upon roll call , the vote was: AYES: 2 - Bogart, Marienthal NAYES : 4 - Mahoney, Rech, Driscoll , Carroll Motion declared defeated. Mr. Winston reviewed Midwest Securities full cash defeasance advance refunding program, dated September 7, 1976. He said at Mr. Larson 's request, they worked up figures on a simple advance refunding program. He distributed a computer print-out on this program. Over the life of a simple advance refunding program, the Village would pay $7,232,325 in debt on the refunding bonds, but under the full cash defeasance program, the Village would pay $7,051 ,212 which would be a savings of $181 , 113. He then distributed and reviewed flow charts showing the difference in the two programs. Discussion followed. Mr. Glueckert said that he has requested a written proposal from Peat, Marwick, and Mitchell , Village Auditors, to assist with this program. Estimated fee was between $1 ,500 and $2,000. Trustee Rech said she is not in favor of the refunding program because she felt if the reserve funds were invested carefully, the Village would come out on the same basis. If the Board decides to proceed with the program, she would insist on competative bidding and some type of verification from Peat, Marwick, and Mitchell . In response to a question from President Fabish, Mr. Winston said the new bond issue would not have the same restrictions as the old because the Village now has a proven "track record". President Fabish polled the Board, "Yes" indicating willingness to pursue further the refunding program and "No" indicating opposition. The poll found the following: 4710 9/20/76 YES : 5 - Mahoney, Driscoll , Bogart, Carroll , Marienthal NO: 0 - None ABSTAIN: 1 - Rech Moved by Bogart, seconded by Rech to return consideration of this program to the Finance Committee for further study and recommendation and to obtain a Peat, Marwick, and Mitchell proposal . Upon roll call , the vote was: AYES: 6 - Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal NAPES: 0 - None Motion declared carried. Well #6 Mr. McCoy reviewed his memo, dated September 16, 1976, reviewing proposals received for engineering design of Well #6 and recommending the contract be awarded to Keifer and Associates, Inc. He felt that Keifer and Associates would be able to provide the best service and most expertise in house for the dollar. Moved by Mahoney, seconded by Driscoll to accept Mr. McCoy's recommendation to accept the proposal of Keifer and Associates and to direct the Village Attorney to review the contract. In response to a question from Trustee Rech, John Yost of Keifer and Associates said that they are proposing a lump sum fee of $39,000. Mr. McCoy said the 3 basic methods of establishing engineering fees as follows : fixed fee, per- centage of construction cost, or time and material with a not to exceed figure. In response to a question from Mr. Larson, Mr. Yost anticipated that it would take 3 months to prepare the design and an additional month to solicit and analyze bids. He felt it would take no longer than 1 year to construct the well . In response to a question from Mr. Larson, Mr. McCoy said the water study will be complete 1 month prior to completion of the design of Well #6. Upon roll call , the vote was : AYES: 6 - Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal NAPES: 0 - None Motion declared carried. Plaza Verde Phase II The Board reviewed a letter, dated September 8, 1976, from Ronald Grais requesting to revise preliminary plan for Phase II of the Plaza Verde Shopping Center. Moved by Mahoney, seconded by Driscoll to refer the request to the Plan Commission. Upon roll call , the vote was: AYES: 6 - Mahoney, Rech, Driscoll , Bogart, Carroll , Marienthal NAPES: 0 - None Motion declared carried. 4711 9/20/76 5. Board Comments Plan Commission Trustee Marienthal felt that firm direction from the Village Board should be given to the Plan Commission and Village staff regarding new development and annexation. He felt the Village should not negotiate any existing rules, ordinances, and regulations, and if a developer wishes to discuss variations , some criteria must be set. President Fabish said that the Plan Commission cannot negotiate this type of matter. Trustee Marienthal felt a developer should know from the beginning that the Village does not want deviations from ordinances. Mr. Larson said that when a plan is presented to the staff, they try to make the plan as technically correct as possible. Trustee Rech felt the Plan Commission should be directed to advise developers that the Village plans to abide by the ordinances, and unless a developer can prove hardship, or health, welfare and safety, or a better plan, the Village will not consider it. Other Trustees felt that this is the procedure the Plan Commission has been following. Trustee Mahoney felt that a change in an ordinance should be the exception and not the rule. 10:05 P.M. - President Fabish declared a recess to be followed by an executive session to discuss personnel and litigation. 10:40 P.M. - Tn e Board returned to the council chamber. 6. Adjournment There being no further business to discuss, it was moved by Mahoney, seconded by Carroll to adjourn the meeting. Upon voice vote, the motion passed unanimously. Time: 10:41 P.M. Respectfully submitted, Verna L. Clayton, Village Clerk PASSED AND APPROVED this ; 7 day of / � 1976. 1 //; 4.-1/2,16711 Village President