Marianne Guy asked when the planning and zoning board's recommendation regarding Neumann Homes will be on the Village Board agenda. Attorney Anderson stated that his understanding is that the item will be placed on the December 3rd agenda since it was the recommended time by the plan commission, however, he also understands that the Board wishes time to study the recommendation and the underlying information supplied, and that the intent of the Board, this his information, the Board will have the opportunity to do whatever they wish. His understanding is that the Board will refer the matter to the committee meeting of the whole for consideration with the idea the committee of the whole will report back at a meeting in January.

SITUATION. In August, Governor Ryan signed into law PA92-0479, which allows developers to post performance bonds instead of letters of credit or cash. The new law becomes effective on January , 2002. The clear benefit to developers is that bonds cost less for them to provide.

PROBLEM. From a municipal perspective, a letter of credit or cash is much easier to draw on. To call a performance bond requires filing suit against the insurance company. Some municipalities have been faces with legal fees greater than the bond was worth, which is the reason most municipalities have been faced with legal fees greater than the bond was worth, which is the reason most municipalities have been requiring letters of credit.

Regardless of the type of performance guarantee, a general problem with subdivision development has been erosion and drainage control. Many of the problems facing new homeowners relate to the ongoing subdivision development surrounding their new home. (Such recent problems occurred within Windmill Creek - Ryland Homes, Tiffany Farms - United Home, as well as other projects.)

ALTERNATIVES CONSIDERED. 1) Include within all annexation agreements, (20-year term), that any required performance guarantee be in the form of a letter of credit. This alternative is precluded by specific language in the new legislation. 2) Require all PUD's, within the approving preliminary and final plan ordinances, that the performance guarantee be in the form of a letter of credit. This alternative would likely result in a legal challenge; the new legislation refers to "project improvements" and does not differentiate between conventional and PUD subdivisions. 3) Draft a sample performance bond that mimics the current sample letter of credit, (see attached). This would then include separate line items for various aspects of the public and quasi-public improvements, (Village of Northfield). 4) Require that the water, sanitary sewer, curbs, gutters, and first list of asphalt on the streets be installed prior to any building permits being issued, (similar to Villages of Bartlett and Hoffman Estates; Lake County).

RECOMMENDATION. In my opinion, the first two alternatives are most vulnerable and likely subject to legal challenge. Therefore, I recommend approval of alternatives number 3 and 4. The third alternative of drafting a sample bond form will be prepared by Staff and subject to the Village Attorney's review. The fourth alternative is the only alternative that provides the greatest control and responds to both problems noted above. Therefore, I recommend that the Village Board amend Section 152.047 (D) of the Subdivision Ordinance and direct the Planning and Zoning Board to conduct a public hearing to amend Section 150.106 ( C ) (10) (f) of the Zoning Ordinance in order to reflect the change in State Law. It is further suggested that Section 150.047 (D) (1) be amended to require the performance guarantee be in the amount of 125 percent, (instead of 110%), of the approved engineer's estimate. (Note that the State Law does allow for greater than 110 percent.) In addition, a new Subdivision Code section is proposed, Section 152.048, Building Permits, which would require that the water, sanitary, sewer, curbs, gutters, sidewalks, and the streets' first lift of asphalt be completed, inspected and approved, prior to the issuance of any building permit for homes. (A sales office may be located within a temporary trailer on site at the start of project improvements.)

REQUEST FOR BOARD ACTION. I request that the Village Board endorse the recommendation, and specifically take action to: Direct Staff and Village Attorney to prepare a sample performance bond similar to the existing sample letter of credit; Direct Staff and Village Attorney to prepare the first draft of amendments of the Subdivision Code, in connection with alternative number 4, for first reading at an upcoming Board meeting; Direct the Planning and Zoning Board to conduct a public hearing regarding a proposed amendment to Section 150.106 ( C ) (10) (f) of the Zoning Ordinance to reflect the recent change in State Law, and to reiterate the related language in the amendments to the Subdivision Code.

Mr. Paul Howard, Catholic Charities employee who is currently on administrative leave, stated that he and members of the senior council were shown documentation and were told by the previous administrator that the Dolly Spiering money was in an interest bearing account. Mr. Howard also stated that he was told by the former administrator that he would be hired by the village over 14 months ago. Paul Howard said, "There was a 5-1 vote among the Village Board of Trustees in favor of hiring me immediately, this was August of 2000, but it got dragged on because he said (Mr. Wells) wanted to make it unanimous." Mr. Marv Oldenburger, former Village Trustee, stated that there was a discussion as to whether or not the Village should be using the Dolly Spiering fund to pay for Mr. Howard's salary, there was not a formal vote taken since some of the Trustees at that time wanted more information before making that decision. Mr. Oldenburger stated, "the item was on the table, we never concluded the discussion, and to my knowledge we never took a true vote." Seniors in the audience expressed their concern regarding Paul Howard being placed on leave until this matter is resolved. The center misses the leadership that Mr. Howard has provided consistently throughout the years. Trustee Pierce stated that the Village is meeting with Catholic Charities and the Senior Council to work through this situation.

There were questions regarding the legal right to use the Dolly Spiering money for other projects in the village when it was stated in the resolution to be used for senior services. Trustee Pierce stated that question has been referred to the states attorney office.

Administrator Haley briefly reviewed some projects that may be put on hold because of the financial situation. Mr. Haley stated "ordinary things that we would like to do or that need to be done, we are like any other household. If you don't have the money you don't spend it and if you can't afford it, you can't do it. That's the situation that we're in."

Mayor Maravelas stated that the Village is working toward a way to repay the Dolly Spiering fund and interest as soon as possible.

A motion was made by Trustee Caulfield, seconded by Trustee Pierce to approve the October Treasurers Report as presented. On roll call, the vote was:
YES: 4; Pierce, Caulfield, Porch and Hanson.
NO: 0.
ABSENT: 2; Larson and Foresta.
THE MOTION CARRIED.

There was a brief discussion regarding the water and sewer department operating in the red and the rates not being increased since 1980. Trustee Hanson stated that Administrator Haley did some research which showed that the cost of living index since 1980 went up 83.1%. Trustee Pierce stated that he understands that the water rates have not been increased since 1980 and the sewer rates have not been increased since 1985, and we're operating in a deficit. Currently, there are a lot of residents of Antioch who have questions over water quality such as rust, there is no way possible if we're operating in a deficit to even begin to address those issues. We need to bring it back to zero and then up some so we can make improvements. The proposed rate increase, recommended by the staff engineer, will be determined at a future meeting of the Board of Trustees.

On roll call, the vote was:
YES: 4; Pierce, Caulfield, Porch and Hanson.
NO: 0.
ABSENT: 2; Larson and Foresta.
THE MOTION CARRIED.

Following discussion, the second was removed by Trustee Pierce and Trustee Caulfield amended his motion as follows:

A motion was made by Trustee Caulfield, seconded by Trustee Pierce to direct the Village Attorney to draft an ordinance to put in place a utility tax on electric, natural gas and telephone services at a rate and time frame deemed appropriate by the Village Board. The money received from the tax will be specifically set aside to repay the Dolly Spiering Fund. On roll call, the vote was:
YES: 4; Pierce, Caulfield, Porch and Hanson.
NO: 0.
ABSENT: 2; Larson and Foresta.
THE MOTION CARRIED.

Attorney Anderson read aloud the following ordinances:

First reading: Ordinance Concerning PZB01-09, Amended Final Plat, Tiffany Farms Unit 4 Relative to Street Connection to School Property. This item will be placed on the December 3, 2001 agenda for consideration. Attorney Anderson also discussed the raffle ordinance which was recently passed by Lake County. Village Clerk Candi Rowe distributed copies of the ordinance to the Board for their review.

First reading: Ordinance Regarding Licensing of Raffles. This item will be placed on the December 3, 2001 agenda for consideration.