VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING
OCTOBER 5, 2009
CALL TO ORDER – 7:30 p.m.
Mayor Berman called the meeting to order.
ROLL CALL
In attendance: Mayor Dale Berman, Trustee Mike Herlihy, Trustee Chris Faber, Trustee Mark Guethle, Trustee Bob Strusz, Trustee Mark Gaffino, Trustee Vince Mancini, Village Clerk Lori Murray
Staff in attendance: Assistant to the Village Administrator Wes Kornowske, Finance Director Bill Hannah, Community Development Director Scott Buening, Water Superintendent Paul Young, Village Engineer Jim Bibby, Police Chief Tom Fetzer, Fire District Representative Ryan Lambert.
AUDIENCE COMMENTS – NONE
TRUSTEE COMMENTS – NONE
1. Discussion on Refunding of 2001 General Obligation Library Bonds
Finance Director Bill Hannah said the Village would be planning on a competitive sale for the refunding of 4.6 million dollars for the bond issuance on October 19th. Hannah said the Finance Committee had talked about a 5% savings target as the threshold. The savings would go to the North Aurora taxpayers. Trustee Mancini complimented Bill Hannah for his work on moving forward with the competitive sale. New Business.
2. Discussion on a Proposed Amendment to the 2006 International Residential Code relating to Interior Wall Construction
Community Development Director Scott Buening informed the Board that a developer working in the Village was using a different construction for interior walls. The developer was using an allowance in the building code that allowed him to go 26 inches on center for interior walls. This deviates from standard construction throughout the Village. The Board was in agreement to moving forward with the amendment. Consent Agenda.
3. Discussion on the Purchase of Treatment Plant Chemicals
There are two vendors capable of providing the chemicals needed by the Village. One vendor was $400 cheaper and carries the chemical in 50 pound bags as opposed to 100 gallon drums. Trustee Herlihy asked if the Village had to go through the formality of waiving bids. Atty. Drendel said that if the Village is looking for the smaller containers and only one supplier carries it, the Village could waive bids. Trustee Herlihy recommended this item be placed on New Business and waive bids, choosing the vendor that provides the chemical in 50 pound bags. New Business.
4. Discussion on Pay Request No. 1 Partial in the Amount of $428,754.47 to Geneva Construction for the 2009 Road Improvement Program
Jim Bibby informed the Board that Geneva Construction had completed the Oak Street frontage at Sycamore and that the project had come in below the cost of the original contract. Staff recommended payout. Consent Agenda.
5. Discussion on Pay Request No. 7 in the amount of $46,962.24 to Tri-County Excavation and Construction, Inc. for Tanner Trails Contract A
Wes Kornowske said that the payout was for work at the Tanner Trails Subdivision for when Neumann Homes went under. There is a change request that will be presented to the Board next Monday. New Business. Trustee Strusz asked if the trees had been replaced. Jim Bibby confirmed that they had.
6. Discussion on Fee Waiver and Building Code Amendment Request – Gladstone and Faganel Builders
Scott Buening said that five different builders approached the Village about changing some of the Village’s building codes and reducing some of the impact fees related to home construction. The Development Committee had reviewed the request and there was no interest in amending the building codes. Developers initially requested reducing all of the fees by 50%. Staff reviewed the fees and reductions were proposed in the draft resolution. The developers requested the following be considered:
1. Instead of having the program start at the end of the year, to start it immediately. Staff had no objection to doing that.
2. Increase the number of permits to more than 50% to any one builder. Staff did not object and proposed a 75% cap.
3. Increase of the number of permits from 50 to 100. The Development Committee agreed to leave the number of permits at 50.
4. Fee abatements to go to the builder instead of the homeowner. Staff felt it was more appropriate for it to go to the homebuyer since it would create more of a physical incentive for people to buy homes in the Village.
5. The builders had some concerns with the Village’s language regarding ending the program at any time. Staff said they did not have a concern with a 60-day notice of termination.
Bill Hannah explained the potential financial impact. The fees identified cover the General Fund, Sanitary Sewer Fund and the Water Fund. Hannah said that if 20 permits are pulled, the Village will see $111,000 in revenue on a normal basis, without a fee reduction program. If there will be five additional permits and have 25 permits pulled, in this scenario, the Village would generate $71,200 in revenue. If the permit program was successful and 35 permits were pulled, that would help the defined period with a revenue of $99,000, but still less than what would be generated with the current fees. The long term impact, in terms of what the Village would lose, per lot, over time, the revenues would be reduced by half since the proposal by the builders is a 50% reduction in fees.
Trustee Faber asked Scott Buening how many building permits the Village has issued in the last 6 months. Buening said about 10 permits.
Trustee Mancini asked if the homebuilder has indicated how much this would reduce their price point. Buening said they are looking to partner this with an incentive program they would have for homebuyers. Mancini asked how the Village would know the fee reductions would be passed on to the consumer. Buening said that Staff recommended the money be given to the homebuyer. Mancini said it is a better control mechanism for the village to provide the rebate money directly to the homebuyer. Trustee Gaffino said that is what the development committee agreed to. Stimulus money would go directly to the homebuyer.
Trustee Herlihy asked where the School Impact Fee and Fox Valley Land/Cash entities stand on the line items. Buening said the Village has not approached the other entities and asked the developers to but has not heard that there is any proposed change. Trustee Herlihy asked if the committee or Staff discussed rolling back some of the fees to what they were in the past as opposed to the current plan. Buening said this was not discussed. Herlihy said he was interested in coming up with ways to attract builders to build in North Aurora.
Trustee Mancini said he would like to see an indication as to how the money they are saving in fees will be passed along to the end consumer.
To be discussed again at the next COW meeting.
EXECUTIVE SESSION
Motion made by Trustee Herlihy and seconded by Trustee Faber to adjourn to executive session for the purpose of labor negotiations. All in favor. Motion approved.
ADJOURNMENT
Motion made by Trustee Herlihy and seconded by Trustee Guethle to adjourn the meeting. All in favor. Motion approved.
Respectfully Submitted,
Lori J. Murray
Village Clerk
