1979-06-25 - Village Board Committee of the Whole - Minutes SUMMARY OF COMMITTEE OF THE WHOLE OF THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF BUFFALO GROVE, ILLINOIS, HELD MONDAY, JUNE 25, 1979, AT
THE MUNICIPAL BUILDING, 50 RAUPP BOULEVARD, BUFFALO GROVE, ILLINOIS.
President Clayton called the meeting to order at 7:35 P.M. Those present stood
and pledged allegiance to the Flag. Roll call indicated the following present:
President Clayton; Trustees Marienthal , Stone, O'Reilly, Hartstein, Kavitt,
Gerschefske. Also present were William Balling, Village Manager; William Raysa,
Village Attorney; William Sommer, Assistant Village Manager; Gregory Boysen,
Village Engineer.
MUELLER FARM
President Clayton noted that this same development is on the agenda of the
Arlington Heights Plan Commission for Tuesday, June 26, 1979. She asked if
Mr. Haller could explain the duplication of meeting with both communities at
the same time. Mr. Haller answered that he is trying to get the development
put together and get it under way, and, as a result, he is talking to both
communities.
Mr. Irving Capitel displayed a preliminary drawing, and stated that they are
addressing the concept as it regards the front "L" of the 17 acre Mueller Farm,
which is adjacent to Kingswood Methodist Church on Dundee Road.
Mr. Capitel stated that they had a meeting with the Community Development
Committee of the Board, who indicated that they were not particularly in favor
of the plan which was presented.
Mr. Capitel stated that the front portion of the "L" is zoned B-1 in the county,
which would provide for the useage they are intending. The rear portion of the
"L" is zoned residential .
Mr. Capitel stated that Mr. Haller has met with members of the Northgate Home-
owner's Association, and after reviewing a number of plans, the one shown is the
one which they favored.
There are 15 single family homes shown on the south portion of the property, which
would act as a buffer between this property and Northgate. The condominiums and
the single family homes would total approximately 135 units. The front of the
"L", approximately 4.7 acres, would be designated as an office/research area.
This drawing shows 3 buildings, which would total 70,000-80,000 square feet of
office/research space. The design of all units - the office/research, the
condominiums, and the single family homes - would be compatible to one another.
Mr. Capitel stated that if they get a favorable response from the Board, they
would be filing an annexation petition. He noted that the Intergovernmental
Agreement between Arlington Heights and Buffalo Grove mentions providing for
annexation of these parcels to either Village.
Mr. Capitel stated they need direction as to whether the Village would be
interested in accepting their annexation agreement, or whether they should
make other arrangements.
Trustee O'Reilly stated that this plan is identical to what was presented to
the Community Development Committee several weeks ago. The two concerns they
had with the plan are:
COMMITTEE OF THE WHOLE
JUNE 25, 1979
4wr' PAGE TWO
1 . Commercial on. Dundee Road - Mrs. O'Reilly is not in agreement with this
because of creating more traffic on Dundee Road, and also because of the
conflict with the Town Center.
2. Access - Mrs. O'Reilly also feels that there should be some type of access
to the south, at least a pedestrian and bicycle access.
Both Trustee O'Reilly and Trustee Marienthal feel that there should not be
commercial on Dundee Road.
Trustee Hartstein stated that he also is bothered by the limited access to the
property. Regarding the commercial on Dundee Road, he does not wish to do any-
thing which would adversely affect traffic on Dundee Road, but recognizes that
this is presently zoned commercial by the county, and may be developed as such
whether we like it or not. Therefore., he would like to have some control as to
the degree and extent of the development that fronts Dundee Road. He is not
overly concerned that this will be competition for the Town Center.
Trustee Hartstein definitely does not want retail establishments in this commercial
area. He said that, looking at the zoning map, this seems to be a logical spot
for a development of the type proposed.
Trustee Hartstein does have some concern that the developer is "playing both ends
against the middle" by negotiating with two Villages at one time.
Trustee Kavitt asked the representative from the Northgate Homeowner's Association
what their feeling is regarding access to the south. The representative stated
that they definitely do not want traffic through Northgate, but would be agreeable
to pedestrian and bicycle traffic and/or some type of emergency access.
Trustee Kavitt agrees with Trustee Hartstein regarding the Town Center. He feels
the Town Center concept is very important, but does not necessarily feel that this
would be in competition with the Town Center.
Mr. Balling stated that the direction regarding conformance to the Master Plan
is on the positive side right now.
Mr. Balling also stated that he believes it is possible to get the secondary
access through the Dun-Lo subdivision, without going through Northgate. A
detailed analysis has not been done at this point regarding utilities.
President Clayton stated she felt the Board should take a poll to determine if
they wish to entertain this concept.
Mr. Capitel made a comment regarding the applications to both the Village of
Arlington Heights and the Village of Buffalo Grove.. He said that this property
is going to be developed by a developer. Mr. Capitel stated that holding a piece
of property is a very expensive proposition, which is. why Mr. Haller explored
L•/ possibilities with the two Villages. Mr. Haller wishes to get this development
moving quickly. He is not trying to get a better deal from one Village or the
other. Mr. Capitel said. that Mr. Hailer is proposing a functional and attractive
development, which he feels would be an asset to Buffalo Grove.
COMMITTEE OF THE WHOLE
JUNE 25, 1979
PAGE THREE
Trustee Stone stated that he could understand the developer's position in going
to two Villages, but he said that before we tie up any staff time or commission
time, he would like to feel that the developer has reached a decision as to
which Village he would like to go to, Mr. Stone asked if, even though a favorable
decision were reached tonight, Mr. Haller would still continue to work with both
Villages.
Mr. Haller stated that he would assume if a favorable decision were reached
tonight, the die would be cast. He said that his concern is putting together
an economically viable, attractive project. He is not trying to "play both
ends against the middle". He said that he talked with Buffalo Grove a year
ago, at which time he was informed that they did not want any more commercial
on Dundee Road. He has since been led to believe that this opinion may have
changed. He said he is purchasing the front portion of the "L" as B-1 .
Trustee Marienthal stated that the Plan Commission has taken a stand as to the
remaining undeveloped property along Dundee Road, and they feel that no more
land should be put in commercial or office zoning at this point.
Lucille Schroeder, a resident, stated that she was at the meeting where Mr.
Haller originally presented this proposal to Buffalo Grove. She feels this
may be the beginning of something which will give Buffalo Grove a better tax
base.
Trustee Hartstein asked if the developer would be willing to tie restrictions
as to the level of useage to the commercial site. Mr. Capitel stated that they
would consider certain kinds of restrictions that are in the allowable limits
of operating the property.
Trustee Marienthal asked Mr. Capitel to review the B-O zoning classifications
to see if they would fit his client's use.
President Clayton polled the Board: "Yes" indicates favor of the concept; "No"
indicates opposition.
YES: Stone, O'Reilly, Hartstein, Kavitt, Gerschefske
NO: Marienthal
President Clayton asked if the Board had any particular concerns to eventually
be passed along to the Plan Commission.
Trustee O'Reilly stated her concerns are the signalization at the intersection
on Dundee Road, and the access to the south.
Trustee Marienthal stated that there was concern about the street width in the
multi-family, and whether or not that would be a dedicated street to the Village
of Buffalo Grove. Mr. Haller stated that he would contemplate that to be a
private road.
Trustee Hartstein wanted to be sure that, if we are entertaining this as a planned
unit development, we are talking about the entire parcel , and not dividing the
portions between two Villages.
COMMITTEE OF THE WHOLE
JUNE 25, 1979
PAGE FOUR
Trustee Marienthal stated that he would like the Plan Commission to address the
extension of Golfview Terrace. He would like to see it go to the south edge of
this property line; he would also like Buffalo and Arlington Heights to review
the remaining section which would not be paved and bring it all the way through,
rather than dead-end it.
Mr. Capitel stated that the Board's vote has left him both encouraged and
discouraged. He asked if the "Yes" vote means that, if they were to file a
petition and come to a mutually acceptable agreement, the Board would then
accept this plan and provide the necessary ordinances to effectuate it.
Trustee Stone said that his vote did mean that, if all minor points could be
worked out, he would favor an annexation.
Trustee Hartstein said he feels the same.
President Clayton stated that this will be placed on the agenda next week for
referral to the Plan Commission.
EARLY LEARNING CENTER
President Clayton stated that we would now have the pre-application conference
regarding two lots in the Dun-Lo Highlands for an extension of the Early Learning
Center.
Trustee Marienthal stated that he has been trying to contact Mr. Arvid Olson
regarding the work left undone at the. Strathmore Shopping Center site. He said
that a number of items that were to be completed by June 30, 1979 have not been
completed. Mr. Marienthal would like to have a response from the owner as to
when completion of this site would take place.
Mr. Olson's attorney stated that he feels he would like to get on with what is
on tonight's agenda, as he has another hearing to attend.
Trustee Marienthal said that he does not feel the Board can consider any new
plans from Mr. Olson, until the previous work has been completed.
Trustee Stone said that he does not care to discuss this property until the one
at Strathmore Shopping Center has been completed.
Mr. Olson said that the work is going on, and he does not feel that they have
a June 30, 1979 deadline,because that date was predicated on getting a temporary
occupancy permit, which he does not have.
President Clayton asked Mr. Olson to contact. Mr. Balling with the status of the
things to be done so that he could advise the Board of them.
Mr. Olson stated that he did not come tonight to discuss the project at the
Strathmore Shopping Center.
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Trustee Stone stated that there is no way that the Board can begin consideration
of a new project until the previous one has been completed.
COMMITTEE OF THE WHOLE
JUNE 25, 1979
`./ PAGE FIVE
Mr. Olson stated that he asked the Village Engineer for approval on the grading
so that they can put in the landscaping. He said he will not put in landscaping
until he has written approval .
President Clayton declared a break from 8:25 P.M. until 8:45 P.M.
HIGHLAND POINT VII
President Clayton stated that the developer has met with the Legislative
Committee, who recommended certain modifications to the SIA draft. 1) The
staff comments that are contained in Mr. Boysen's memo of June 14, 1979.
2) Consideration of extension of the backstop repayment timetable from 2 years
to 4 years. 3) Consideration of a formula to provide for an accurate cost
estimate for the 18" alternate versus the 33" actual in lieu of the soil boring
requirement suggested by staff.
President Clayton stated she would like to have a polling of the Board: "Yes"
would indicate favor of the Legislative Committee suggestions on the modifications.
"No" would indicate opposition.
Trustee Hartstein stated that with regard to the formula aspect, to get a truer
picture of the cost of the oversizing versus the 18", he feels that either
alternative can be lived with. He feels it should be whatever the developer
feels is more reasonable.
YES: Marienthal , Stone, O'Reilly, Hartstein, Kavitt, Gerschefske
NO: None
Mr. Guggemos stated that at the April 2, 1979 Board Meeting, he did state that
they wanted a 4 year backstop rather than a 5 year backstop. He then met with
Mr. Friedman of the Fiore interests and the staff, and Mr. Friedman stated that
they would buy the 33" pipe, but if they were not annexed, the Village would
have to pay them cash for it.
Mr. Guggemos stated that they also had a request for a special inspector in
connection with the 33" pipe which Standard Pacific felt the Village should pay
for. After Mr. Balling informed them that the Village could not pay for this
engineer, it was agreed that it would be a part of the recapture. However,
their trade-off for this was that the backstop be 2 years.
Mr. Guggemos stated that their dealings with the Village have always been
honorable. He stated that he has some matters which he would like to discuss
with the Board.
Regarding #1 in Mr. Boysen's memo which asked that the phrase ". . .wh.ich constitute
full payment of all fees due in connection with the improvements." be deleted,
Mr. Guggemos stated that fees cannot be effected retroactively, and the Annexation
Agreement states the fees cannot be changed in mid-stream. If they are changed,
they cannot apply to them for 5 years unless they are less than 5%.
Mr. Balling indicated that the purpose of askingth.at that phrase be deleted is
to give the Village the flexibility to create a new ordinance which would be
applicable to all subdivisions in the Village. There is no such ordinance
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COMMITTEE OF THE WHOLE
`./ JUNE 25, 1979
PAGE SIX
contemplated, but the Village must have the flexibility should such a case
occur.
Mr. Raysa stated the phrase". . .knowledge is received of these fees." could be
inserted, and a reference made to Paragraph 19 of the Annexation Agreement which
specifically spells out what the Village can and cannot do. Mr. Raysa stated
that the Village is bound by the Annexation Agreement.
Mr. Guggemos stated that #2 in Mr. Boysen's memo states: "Delete subparagraph
'9C' ." He said that comes right out of the Annexation Agreement, and right out
of the SIA.
Mr. Balling stated that it is a clarification, and it could be read to conflict
with Administrative Order #2.
Mr. Fliss stated that they would like to leave subparagraph 9C in.
After further discussion, both Mr. Guggemos and the Village agreed to leave the
subparagraph 9C in.
In item #3, Mr. Boysen refers to subparagraph 13.A, which deals with the reduction
of bonds.
Mr. Balling stated that this deals with the construction completion pursuant to
paragraph 6. He said that if an extension beyond the 2 years is asked for, they
would not be paid until the work is completed. He said 13.A is not operative until
the system is operative.
Mr. Balling said the earliest that Standard Pacific could get any money would
be 30 days after completion, providing someone were to. annex. In the event there
was no annexation, the earliest that any money would be paid by the Village would
be 2 years (or 4 years, depending on what is decided upon) after the execution
of the document.
Mr. Guggemos stated that it is understood that if the Village has not recaptured
any money, they cannot pay it to them until they recapture. He said they will
restructure the language to clarify the point.
Mr. Guggemos stated that point #4 in Mr. Boysen's memo has never been mentioned
before. He said they will give the Village three bids from bona fide contractors
qualified to work in the Village.
Mr. Balling stated that the Village wishes to make sure that the bid accurately
reflects what the cost of the work will be.
There was then a great deal of discussion regarding the solicitation of bids.
Mr. Guggemos said that he cannot give the Village the right to reject or solicit
`.i bids. He said that he will submit at least three bona fide bids from reputable
contractors.
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COMMITTEE OF THE WHOLE
JUNE 25, 1979
PAGE SEVEN
Mr. Balling said that this is a technicality; the Village has gotten "burned"
before by not verifying bids.
Trustee Stone asked if it would be possible to hold up signing the subdivision
agreement until the Village has a chance to look at the bids. Mr. Guggemos does
not find that acceptable because this has been going on since October. He said
that they will give a copy of the contract to the Village.
President Clayton asked Mr. Guggemos if they would be willing to wait the two
weeks, providing this is the only point of contention as the Board goes through
the rest of the points to be discussed. Mr. Guggemos stated that would be
agreeable.
Trustee Hartstein stated that he feels point #5 of Mr. Boysen's memo could be
eliminated. He does not think we need the soil study or any type of formula,
because that would already be built in. Mr. Guggemos stated that he feels the
language can be worked out to satisfy the Legislative Committee.
Regarding point #6 in Mr. Boysen's memo, Mr. Guggemos stated that he must have
some kind of surety that the Village will have funds to pay them when that time
comes. He said the very least they must have is a commitment that carries the
legal opinion of the Village Attorney that the commitment which they accept is
binding upon the Village and provides assurance that the funds will be available
when due.
Mr. Guggemos suggested that the Village enact an ordinance to commit the Village
to provide the funds, which would also state where the money would come from.
Mr. Balling stated that Ordinance #70-32 requires that the water rates be
established to cover all debts.
Mr. Raysa said there would be a problem enacting an ordinance to pay off the
SIA. He said one Board cannot bind a future Board.
Mr. Raysa stated that the Village Board, at the appropriate time (2 or 4 years)
could pass an appropriation ordinance to cover the cost for backstopping the
agreement.
President Clayton clarified with Mr. Raysa that, in a contract, this Board can
enter into a contract that would legally bind whatever Board was sitting at that
time to enact that ordinance. Mr. Raysa agreed.
Mr. Guggemos stated that he wanted it understood that he will have his attorney
contact Mr. Raysa regarding this.
Regarding item #7 in Mr. Boysen's memo, Mr. Guggemos stated that they are asking
for 15% overhead and administrative fee only in the event of a recapture.
Mr. Balling said that the Village does not agree. This would be a modification
of policy.
COMMITTEE OF THE WHOLE
JUNE 25, 1979
\./ PAGE EIGHT
President Clayton polled the Board: "Yes" would indicate favor of the staff
recommendation which is also the Legislative Committee recommendation to delete
the phrase lines 11 , 12, and 13 of subparagraph "13B"; "No" would indicate
opposition.
YES: Marienthal , Stone, O'Reilly, Hartstein, Kavitt, Gerschefske
NO: None
Mr. Guggemos stated that if he cannot have the 15% administrative fee, he must
be able to collect the actual interest rate from whomever is paying the recapture
(not the Village) . This was agreeable to the Board.
Mr. Raysa stated that in Section 9-5-1 of Chapter 24, it states that "a municipal
entity may by contract with the subdivider agree to reimburse and may reimburse
that subdivider for a portion of the cost of such facilities from fees charged
to owners of the property not within the subdivision."
Mr. Raysa said the problem is with the word "cost" of such facility. If it can
be demonstrated to the Village that the cost of a 33" sewer line includes interest,
then he could agree. He does not know if it can be demonstrated that 15% is cost
of the facility.
It was stated that we would give them the same rate that they are paying for
their money. Mr. Guggemos stated they could find that acceptable.
Trustee Marienthal stated that, when the pipe is completed, the interest rate
at that time is the interest rate that would be passed on to the user. This
was agreed upon by everyone.
Regarding item #8 in Mr. Boysen's memo, Mr. Guggemos stated that, by virtue
of the purchase agreement, it states they will not collect any recapture for that
oversizing.
Mr. Guggemos stated that he could not take money from the Brunswick Corporation
as part of the recapture. If he does, he would be in violation of the contract.
Mr. Guggemos read a statement which Standard Pacific suggests: "By virtue of
this agreement, we have notified the Village that we are not entitled to any
recapture from Brunswick and that we will not accept any recaptures that are
taken from Brunswick should they be offered to us."
Mr. Balling explained the Village's position regarding this.
Mr. Guggemos stated that a plan was approved with a 15" sewer running up to
Busch Road. He stated that Standard Pacific has agreed with Brunswick that
they would put enough oversize capacity to serve Brunswick's approximately 250
acres at no cost.
Mr. Guggemos suggested adding the following to the paragraph: "By virtue of
this contract, we have notified the Village that we are not entitled to a
recapture from the Brunswick property."
Standard Pacific has informed the Village that Standard Pacific is not entitled
to any recapture from Brunswick for sanitary sewer oversizing and that Standard
Pacific will not accept any recapture monies collected from Brunswick.
COMMITTEE OF THE WHOLE
�.J JUNE 25, 1979
PAGE NINE
Mr. Raysa stated that the Village would collect from all properties, which
include Brunswick; he questioned what the Village would then do with Brunswick's
money.
Mr. Guggemos stated that if, for instance, $100,000 is recaptured, and 10% of
that is Brunswick, he would only recapture $90,000, and the Village would do
what they wished with Brunswick's $10,000.
Mr. Raysa said that is okay, as long as Brunswick is included in the :100% of
benefited properties on the formula for deriving the recapture sum.
President Clayton asked if anyone on the Board disagreed with that. There was
no disagreement.
There was then some discussion as to which properties should be excluded from
the recapture and Mr. Balling stated that the staff would examine this.
Regarding item #9 in Mr. Boysen's memo, Mr. Fliss said that the way they
originally stated Subparagraph "13E" was that when the Lake County Department
of Public Works inspects the sewer and allows sewage to be put into the line,
that is when they would be paid. Standard Pacific also put in this paragraph
that the Village Engineer can come and inspect the pipe after that to make sure
that it complies with plans and specs, and the Village would release their
subdivision bond as it applies just to the 33" pipe.
The paragraph 13E that the Village is now proposing states that Standard Pacific
has to wait until Lake County inspects the pipe, the Village Engineer inspects
the pipe, and the Board agrees that the pipe is acceptable, before they get paid.
Mr. Fliss feels they are getting stalled on when they get paid. They feel they
should get paid when the sewage is allowed to go into the pipe.
Mr. Boysen said that Buffalo Grove's standards are more rigid than the Lake County
Department of Public Works.
Mr. Guggemos stated when they pass the infiltration test, that is when the time
starts running on recapture, if the Village has recaptured any money prior to
that time, Standard Pacific wants it then. At that point, if someone can benefit
from the use of the sewer, then they should pay for it. Standard Pacific is
still committed by the subdivision bond to complete all of the work. They want
the Village to reduce the cost of the subdivision bond by the cost of the over-
sizing. Mr. Guggemos stated that he cannot be responsible for the fact that
this oversized pipe will not settle for two years.
Mr. Boysen stated that he feels the problem could be solved if there was wording
in the paragraph which stated that this would be inspected by the Lake County
Department of Public Works, and the Village of Buffalo Grove.
Regarding item #10 in Mr. Boysen's memo, Mr. Balling stated that the reason the
`•/ Village wants to delete the word "Hoffman" is because of the use of the words
"similar provisions".
COMMITTEE OF THE WHOLE
JUNE 25, 1979
\r" PAGE TEN
Mr. Guggemos said that by virtue of an agreement with Hoffman, certain costs
are shared, and if any recapture occurs, 50% of it Is due Hoffman. He said that
the Village could pay it directly to Standard Pacific, and they would reimburse
Hoffman.
Mr. Balling said that is the way it should be done, because Hoffman is not a
part of this agreement.
Mr. Guggemos said that he will take that under advisement.
Regarding item #11 in Mr. Boysen's memo, Mr. Guggemos said that Standard Pacific
is asking the Village that, should a 33" main be continued through their Units
8 and 9, the Village will enter into a similar contract with Standard Pacific.
Mr. Balling said that is not what is stated. Mr. Balling said that the intent
is that a subdivider of a larger tract may desire to tap on to that sewer and
may seek to install part of the public improvement.
Mr. Guggemos said that they are asking that if Standard Pacific puts this in, the
Village would enter into a similar contract. He wants to be sure that if they
install it at the request of this Board, there will be a contract and recapture
ordinance substantially similar to what has been discussed.
Regarding item #12 in Mr. Boysen's memo, Mr. Guggemos said the answer is "no".
Mr. Balling said that the intent is to finalize what is recapturable in the
Highland subdivision.
Mr. Guggemos does not want to negate all possibilities of recapture.
Mr. Balling said that he would need to pursue this further, and would not be
able to make a recommendation at this point.
Mr. Guggemos said that he would like to add one paragraph which would read:
"The developer shall have been deemed to have fulfilled all his obligations
under this agreement upon release by the Village of the warranty and maintenance
surety described in paragraph 9D above."
Mr. Balling said they would have to evaluate this. He said there is no
conceptual problem.
Trustee Hartstein said that the one unresolved point is whether the backstop be
2 years or 4 years. Considering the agreement to provide for the actual interest
recovered and considering the original concept of 4 years set forth at the
April 2, 1979 meeting, he would recommend that the backstop be 4 years, and would
like to have the Board polled regarding this.
President Clayton stated that "Yes"would indicate favor of the 4 year backstop,
"No" would indicate opposition.
YES: Marienthal , Stone, O'Reilly, Hartstein, Kavitt, Gerschefske
NO: None
COMMITTEE OF THE WHOLE
JUNE 25, 1979
�.! PAGE ELEVEN
Going back to item #4 regarding bids, President Clayton asked if Mr. Guggemos
would agree to wait 2 weeks for the Board to review the bids.
Mr. Guggemos said it would establish more rapport between the Village and
Standard Pacific if they were more closely apprised of when someone would
avail themselves of this 33" sewer.
President Clayton stated that the Village does not know that right now.
Mr. Guggemos said that he would like to be apprised if such meetings are taking
place regarding this. He feels that there are negotiations going on that could
affect them very drastically.
President Clayton said that she is not aware of any negotiations going on at
the present time. She assured Mr. Guggemos that the Clerk would notify him of
any negotiations regarding possible annexation.
President Clayton said that the Board has indicated putting off approval of the
SIA until Standard Pacific's bids are in, and asked if Mr. Guggemos would agree
to that.
Mr. Guggemos said he does not believe the agreement can be put in final form
and thoroughly reviewed by July 2. He said they will expedite getting their bids;
they will try to have the bids in in 10 days to 2 weeks , but he cannot guarantee
it.
Moved by Stone, seconded by Kavitt to adjourn the meeting. The motion was
unanimously approved, and the meeting was adjourned at 11:05 P.M.
Jan'M. Sirabian, Vida e Clerk
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