City of Sycamore City Council met Aug. 20.
Here is the agenda provided by the Council:
1. CALL TO ORDER
2. INVOCATION
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
5. APPOINTMENTS
A. Appointment of Father Carl Beekman to the Human Relations Commission.
6. AUDIENCE TO VISITORS
7. CONSENT AGENDA
A. Approval of the Minutes for the Regular City Council Meeting of August 6, 2018. B. Plan Commission Meeting Minutes from July 9, 2018. C. Payment of the Bills for August 20, 2018.
8. PRESENTATION OF PETITIONS, COMMUNICATIONS, AND BILLS
A. Recognition of Federated Preschool on 50-Years of Early Childhood Education.
9. REPORTS OF OFFICERS
10. REPORTS OF STANDING COMMITTEES
11. PUBLIC HEARINGS—None
12. ORDINANCES
A. Ordinance 2018.04—An Ordinance Approving a Conditional Special Use Permit for Uriel Morales, Owner of County Liquors, to Operate an Equipment Rental Store, Including Trucks and Trailers at 625 East State Street, Sycamore, Illinois. First and Second Reading.
Recently, the owners of County Liquors contacted the Liquor Commissioner with an inquiry regarding operations for the U-Haul business that has been operating on the property at 625 E. State Street. Upon review of the inquiry, staff noted that an “Equipment Rental Store, including trucks and trailers” is only permitted in M-1, Light Manufacturing and a Special Use in C-3, Highway Business zoning classifications. The property located at 625 E. State Street is zoned C- 3, Highway Business and its primary function is a liquor store.
Staff followed DeKalb County’s approach to noncompliant zoning uses, allowing the owners an opportunity to submit an application for a special use permit and go through the process. The owner of the property, Louis Schoenburg, has made joint application for the special use permit. Staff has identified several discussion points and after consideration felt the process should start with a workshop, which was held on July 9th.
A public hearing was held on August 13th after appropriate notice was published in the local newspaper on July 26, 2018, notices were mailed to property owners within 500 feet and a sign was installed on the property.
Special Use Criteria
The starting point in the discussion is to consider the special use criteria that the City uses in evaluating requests. Per Section 4.3.3 of the City’s Unified Development Ordinance, a Special Use Permit shall be granted only if evidence is presented to establish that:
A. The proposed structure or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public and will contribute to the general welfare of the neighborhood or community;
B. The proposed structure or use will not have a substantial adverse effect upon the adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety, and general welfare; and
C. The proposed structure or use will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations.
Section 4.3.5 “Conditions” of the UDO allows the Plan Commission to recommend and the City Council may impose conditions or restrictions upon the location, construction, design and operation of a special use as respectively found necessary or appropriate to secure compliance with the standards.
Parking
1. Given the special use request is for trucks and trailers that are stored in a parking lot intended for a liquor store, parking needs to be considered. Currently, the site has room for approximately 20-24 passenger vehicles in the paved area. To the north, is a larger gravel area that could accommodate considerably more vehicles, however conflicts with section 6.7.4.C.1.a and b of the UDO, which read, “every parking space, including access thereto, shall have an all-weather dust-free surface” and “all open off-street parking areas and driveways shall be improved with a compacted CA-6 crushed stone base, not less than eight (8) inches thick, surfaced with two (2) inch bituminous concrete surface or sealed with a bituminous surface treatment Class A-2 or equal, or four (4) inches of concrete on compacted base.”
2. The code requires retail trade uses to have 1 space for every 200 sq. ft. and 1 space for every 400 sq. ft. for truck and trailer rental. With a building that is approximately 3,000 sq. ft., roughly 15 spaces would be required for the liquor store and 8 spaces for the U- Haul business. The UDO contemplates shared parking concepts, therefore the site seemingly has enough parking to serve both operations.
Where this becomes an issue is when the storage of rental trucks and trailers are staged in parking areas reserved for customers. With approximately 7-12 trucks or trailers available for rent, if each is parked in the paved area, there are times when the number of available parking spots does not meet the UDO requirements.
3. The surface of the parking lot is deteriorated and requires maintenance and striping. Maintenance of the existing lot and/or the paving of additional parking spots should be considered as a condition of a special use.
Arrangement of Rental Vehicles and Trailers
The special use criteria outline that the arrangement and operation of the business should be done in a way that permits neighboring property to be used as intended. City staff has fielded complaints for businesses where products, especially larger products, are staged within the setback area. These complaints typically are regarding sightlines as neighboring properties are not able to capitalize on attracting business from passing traffic.
Staff recommends that, if the special use is approved, a condition be placed on the placement of the rental vehicles and equipment. This would either be along the plane of the front of the building at the setback line or to the rear of the property behind the building.
Property Appearance
In addition to the parking conditions outlined above, the building and landscaping are in need of cosmetic improvements. The property owners started painting and landscaping improvements and have applied for a Gateway Improvement Grant to replace the front windows, install stone at the bottom of the south elevation and remove the majority of the brick pavers that have become a landscaping maintenance issue, and install grass, trees and other new landscaping.
The owners have sealed and striped the paved area to the west of the building and plan to do the same on the east side.
Status of the Property
At the Plan Commission workshop, it was noted that the property was constructed under the jurisdiction of DeKalb County and subsequently annexed to the City of Sycamore. The property was originally developed as a gas station frequented by semi-tractor trailers which parked in the rear of the building in the gravel area. It was later converted to a liquor store when the property was annexed and continued to have semi-trailers parked in the rear. Given the rear of the property has served for the parking/temporary storage of vehicles, there was discussion as to how to reconcile any “grandfathering” of the property’s current conditions with the special use conditions. This could be done by making a condition of the special use that any future owner of the property, who is not a petitioner for the special use permit, is required to make additional parking improvements to satisfy the adopted codes in effect at that time.
Conditional Special Use Permit
After discussion and testimony offered at the Public Hearing, the Plan Commission voted 9-0 to forward a favorable recommendation to grant a Special Use Permit for an Equipment Rental Store, including trucks and trailers to Uriel Morales with the following conditions:
• That the current paved area on the west and east sides of the building shall be maintained and all parking spots, including required ADA stalls, shall be striped and marked.
• That rental vehicles shall be arranged as follows on the premises: all trucks or vans must be parked behind the rear plane of the existing building; all open trailers must be parked behind the rear plane of the building on the west side; and transport trailers that are not open trailers may be parked on the west side of the building between the rear plane and front plane of the building.
• That ongoing use of the unimproved gravel parking area behind the building shall be limited to these petitioners (Uriel Morales and Louis Schoenburg) to serve the current uses for a liquor store and the equipment rental store for trucks and trailers. In the event that the property is used for any other purpose, or owned or operated by any other individuals or entities, additional parking improvements sufficient to meet codes in effect at that time shall be required. Further, that no semi-trailer parking shall be permitted on the premises.
City Council approval is recommended.
13. RESOLUTIONS
A. Resolution No. 759—A Resolution Authorizing the City Manager to Sign a Letter of Credit to Provide Financial Assurance for Radium Decommissioning Activities in Accordance with the Regulations of the Illinois Emergency Management Agency.
As part of the City’s system to remove radium at Wells #6, 8, 9 and 10, Illinois Emergency Management Association (IEMA) requires financial assurance from the City for the potential decommissioning of the radium treatment system. This assurance is a guarantee by the City that funds would be available to properly remove the radium treatment equipment if radium filtering becomes no longer necessary.
In 2014, the City posted a letter of credit in the amount of $300,540 as the financial assurance obligation. The IEMA requirement has been increased to $396,860. This resolution formally acknowledges the City’s understanding of the financial assurance increase and authorizes the City Manager to modify the current letter of credit to the required amount of $396,860.
City Council approved is recommended.
B. Resolution No. 760—A Resolution Authorizing the City Manager to Execute an Intergovernmental Cooperation Agreement Between the City of Sycamore and the Sycamore School District 427 to Enforce Parking Regulations on School District Properties.
The Sycamore School District approached the City for assistance in enforcing parking violations on school properties. Resolution 760 authorizes the City Manager to execute an agreement between the City of Sycamore and Sycamore School District 427 that allows the Sycamore Police Department to enforce City parking ordinances on school district property.
Enforcement of City parking ordinances on school district property would only happen after a vehicle has been cited with an administrative school violation four or more times in a calendar year. Typically, the violation is for not having a parking permit to park at the high school during school hours. Beginning with the fifth violation, this agreement would allow an officer (usually the School Resource Officer) to run the plate, send a letter to the registered owner, and then write a City parking ticket. The owner’s information would not be released to the school since it is for law enforcement purposes only. Up to this point, the school district has had no ability to identify the registered owner and accordingly the administrative school violations are simply disregarded by the driver/owner.
Section 625 ILCS 5/11-209 of the Illinois Municipal Code requires this agreement for parking regulations to be enforced on school district property. Any City of Sycamore ordinance violation issued will be regulated by City of Sycamore Municipal Ordinances Title 6, Chapter 8, and any fines received by the City will be solely awarded to the City. The agreement is effective for a period of twenty years.
City Council approval is recommended.
C. Resolution No. 761—A Resolution Authorizing the Execution of a Lease Agreement Between the City of Sycamore and Mr. G’s Music for a Space in the Lower Level of the Sycamore Center in the City of Sycamore, Illinois.
When the City acquired and renovated the Sycamore Center, emphasis was placed on keeping the State Street frontage as commercial retail space and the mezzanine and third floor as office space. Mr. G’s music first approached the City about renting the mezzanine space, however there were concerns by City staff that the sound from music lessons would be transmitted to other offices. The space in the lower level, that was once occupied by the Sycamore History Museum, was offered as an alternative.
The attached agreement includes a six-month lease that commences on September 1, 2018, with a monthly rent of $500 inclusive of utilities and taxes, with a six-month renewal option.
City Council approval is recommended.
14. CONSIDERATIONS
A. Consideration of an Administration Recommendation Regarding Health Insurance Coverage for Active and Retired City Employees.
The City’s new plan year for all of its group insurance policies begins on September 1, 2018. By category, the renewal rates and recommendations are as follows:
Basic Health Insurance:
The City’s insurance broker solicited health insurance quotes and only received a competitive quote from Blue Cross/Blue Shield. Other carriers showed interest but were unable to provide a competitive quote that was consistent with the City’s grandfathered plan. After negotiating with BCBS, the grandfathered renewal was reduced to 1.80%, which is significantly lower than the industry standard estimated at 6% for 2018 grandfathered renewals.
The City offers three medical plan types: HSA, HMO and PPO:
HSA or Health Savings Account is an account that reimburses employees for specific health care expenses. HSAs can be funded by the employee, an employer or anyone else. The money contributed to an HSA belongs to the account owner and can be used to cover eligible current or future medical expenses. The HSA continues to grow in popularity with employees and has an enrollment of 52 employees, not including their dependents.
HMO or Health Maintenance Organization is a type of health benefits plan for which members are required to receive health care only from providers that are part of the HMO network. A primary care physician coordinates each member’s health care. Services (except emergency care) performed by out-of-network providers are not covered except under specific circumstances. Currently there are two participants participating in an HMO plan.
PPO or Preferred Provider Organization is a Plan that allows members to choose any provider but offers higher levels of coverage if members receive services from health care providers in the plan’s PPO network. This year there were 55 employees plus their dependents who have elected to participate in the PPO.
In terms of actual cost, the HSA plan continues to be more economical than the traditional PPO plan. For this reason, staff proposes that the City continue to fund 100% of the deductible for HSA participants, which is $1,500 for a single participant and $3,000 for a family. Of the 52 employees participating in the HSA, 35 have family coverage, 8 single coverage, 5 employee and spouse and 4 employee and children. Even with 100% funding, savings of over $68,000 will be achieved with the HSA vs. PPO option based on the current census.
The renewals were based upon the following:
✓ The City had thirteen large claims over $50,000. ✓ There was an increase in generic prescription utilization of 83%.
✓ Health care reform continues to bring about changes that may affect our future insurance coverage and premium rates. Our broker and Human Resources Director will continue to monitor this and keep the City informed.
The proposed premiums include the “administrative” fee dictated by the federal government as a result of the Affordable Care Act. The City’s Health Insurance Committee was provided updates throughout the summer and met on August 9, 2018 to review proposals and recommended continuing the same coverage with the Blue Cross/Blue Shield plan for health coverage.
Retirees 65 and over:
Coverage is provided through Hartford Insurance, and does not renew until January 1, 2019. The current monthly rate is $494.05 per person per month. The retiree group is a combination of employees hired prior to 1982 and 1986 who have varying benefit levels based on the terms of employment when they were hired. Per state law, employees may elect continued coverage after retirement, however the retiree must pay the full cost of the coverage.
Dental, Vision, Life, AD&D (Accident, Dismemberment & Disability):
With respect to Life, Dismemberment and Disability, coverage is with Dearborn National and last year’s renewal guaranteed a flat rate renewal for this coming year.
The City has worked with separate dental, vision and ancillary benefit carriers in the past. MetLife currently has our vision and dental plan and has offered a renewal quote of 8%.
The Committee encouraged our broker to discuss bundling with BCBS for a lower rate. BCBS did quote both vision and dental and offered a 1% savings on the medical premiums for each bundled service. BCBS has offered to waive the dental waiting period for services which is currently 12 months.
Vision premiums saw an increase with BCBS, however as a whole the savings to the medical premium far outweighs the increase. BCBS has locked in the vision rate for 4 years.
The Health Insurance Committee recommends moving to BCBS for dental and vision and remaining with Dearborn Life for Life, Dismemberment and Disability.
IRS Section 125/Flexible Spending:
There will be no increase per employee in the Flexible Spending plan through TASC.
Short Term Disability:
Short Term Disability will continue to be administered by the Human Resources Director. By not outsourcing this benefit the past few years the City has saved approximately $11,500 in administrative fees.
The City Manager concurs with the Health Insurance Committee and recommends the proposals submitted by Blue Cross Blue Shield for health insurance, dental coverage, vision coverage and Dearborn Life for life insurance. It is also recommended that the Council continue to fund 100% of the deductible as an incentive for employees to continue to choose the HSA plan, as it will result in a savings for both the City and employee. If more employees choose the HSA plan it will lower the overall costs outlined above.
City Council approval is recommended.
B. Consideration of an Administration Request for a Closed Session to Discuss Pending Litigation.
15. OTHER NEW BUSINESS
16. ADJOURNMENT
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