Woodstock City Council Meeting – December 20, 2022

The Woodstock City Council met at 7:00 p.m. on December 20, 2022, in City Council Chambers with Mayor Turner and all council members present. The evening included a Friends of the Opera House donation, a 50th anniversary proclamation, council community updates, consent agenda action, three separately considered item votes, second-quarter financial reports, and a lead service line replacement program discussion.

Presentation and Proclamation

• Friends of the Opera House President John Puzo presented a donation, completing the organization's $30,000 annual pledge. The mayor accepted and thanked the group for its volunteer fundraising and support of the Woodstock Opera House.
• The Council adopted a proclamation honoring Judith Svalander School of Dance (spelled "Swilander" and called "School of Ballet" in the transcript) for its 50th anniversary. The proclamation noted the school was established in 1972, has been a resident company of the Opera House since November 1984, produced more than 350 performances on the main stage, brought more than 100,000 patrons, and has more than 40 alumni in professional dance careers.

Council Comments & Community Updates

• A council member speaking on behalf of the Woodstock Rotary and Christmas Clearing House thanked the city, Police Department, Public Works, and volunteers for the delivery day. He said the effort served 1,250 families and that children received toys, with special thanks to the Woodstock Snowmobile Club for traffic help.
• Council members reviewed the December 9 Today Show broadcast impact. Reported figures included Real Woodstock reach of over 40,000 with 7,685 engagements and 424 shares; city Facebook page impressions of 53,271, reach of 51,494, and engagement of 8,016; and about 44,000 additional impressions from a Secret Chicago Instagram reel. The mayor noted local businesses and at least five bed-and-breakfast bookings were attributed to people who came because of the broadcast.

Public Comments & Testimony

• During the D4 discussion, Mark Indike of 23 Clay Street, a 27-year resident, said he was not anti-development but had concerns about habitat, neighborhood impacts, and the environment. He asked about traffic studies, rail crossings, Clay Street as a feeder road for emergency vehicles and school buses, public transit options, clean energy features, and electric vehicle charging. He said he supported developing the Die Cast site in a way that coexists with the neighborhood and asked that the proposed parking garage be public and free. The mayor said free parking could not be promised and that his minimum expectation was a net-zero replacement of any parking removed.
• Peter Potier commented during the D4 discussion that a developer could use clean energy and charging amenities as promotional selling features rather than having them mandated.
• No other members of the public spoke during the general public comment portion.

Consent Calendar

• The consent calendar was approved unanimously after items D2, D4, and D5 were removed for separate consideration.
• Approved items included the December 6, 2022 City Council minutes and executive session minutes, warrants #4032 and #4033, Joint Review Board TIF #1 and #2 minutes from February 9, 2022, Library Board minutes from November 10, 2022, and the remaining Manager's Report No. 217 items, including the CDBG application for the Emricson Park ADA restroom facility.

Separate Action Items

• D2 – Graham Enterprise / Route 47 BP Gas Station Redevelopment Agreement: Councilwoman Lomaier said she continued to oppose the project. Councilman Nearman asked whether reducing the agreement from the full eight-acre parcel to the 3.2-acre project site would delay development of the remaining land; staff said the change focused the current proposal and did not alter the road and easement commitments. Nearman remained opposed, citing truck stop, video gaming, and financing extension concerns. Other council members spoke in favor, noting the site's long vacancy and the project's economic benefit. The ordinance approving the redevelopment agreement among the city, Graham Enterprise, Inc., Red Crown Investments, LLC – 155, and Red Crown Investments, LLC – 855 passed 5-2, with Lomaier and Nearman opposed.
• D4 – Die Cast Site Exclusive Developer Designation: Mark Indike requested removal of the item, and a council member concurred. Following public comment and council discussion, the Council approved a resolution designating Chicago Hubs Realty, LLC as the exclusive developer in connection with redevelopment within TIF #2 – Downtown & Route 47 Redevelopment Project Area. The vote was unanimous. Staff emphasized this was a first formal step, not approval of a development plan; a redevelopment agreement and land transfer would come later. Staff also noted Chicago Hubs Realty had begun a new parking and traffic study and was pursuing HUD and McHenry County funding.
• D5 – Design of Softener #2 at First Street Water Treatment Plant: Councilman Nearman requested removal because the $40,400 design and construction administration fee seemed high relative to the roughly $100,000 construction estimate. Utilities staff explained the fee covers design for the first of three aging softeners plus bidding and construction administration, and that the other two softeners would require similar future work, bringing the fee to about 13 percent of the total program cost. The contract with Baxter & Woodman, Inc. was approved unanimously at a total cost not to exceed $40,400.

Discussion Item: Quarterly Financial Reports

• Paul presented the FY22/23 second-quarter financial reports. Highlights included income tax still projected about $600,000 above budget at year end, interest income currently about $370,000 above budget, home-rule sales tax up 8.65 percent, and September sales tax down 2.88 percent, the lowest monthly figure for the year. Regular sales tax including car sales was flat for the year.
• Paul said expenses had not been hit particularly hard by inflation so far. Council discussion noted revenues were roughly $1 million above expectations if current trends held and that surplus funds have typically been transferred to capital improvement projects.

Discussion Item: Lead Service Line Replacement Program

• Utilities Manager Mike Rousey presented the lead service line replacement program. He stressed that Woodstock's water does not have a lead problem because the city has added orthophosphate for about 30 years at an annual cost of about $50,000, and the city has met federal and state lead and copper requirements.
• Existing federal and state rules require the city to inventory service lines, complete a final inventory by April 2024, and submit a plan to remove all lead service lines by 2042. The city does not own the service lines, and about 3,500 service lines are considered suspect.
• Of lines inspected so far, about 35 to 40 percent were lead, with the rate about 20 to 30 percent on recent Lake and Kimball work. Replacements so far have cost $4,000 to $7,000 per service; replacing all 3,500 could cost about $23 million. The city has replaced 14 services at a total cost of $92,215, including 11 associated with Dean Street, two with the Madison Avenue roundabout, and one found during a Lake Street main break.
• Staff have reduced the number of unknown lines from about 3,490 to about 3,300 through door-knocking and plan to send bilingual surveys, emails, and QR-code materials to residents.
• Financial options discussed included assessing individual homeowners, using water fees or taxes, or taking a state revolving fund loan. The SRF currently offers zero-percent loans and up to $4 million in debt forgiveness, but using SRF would prohibit the city from assessing homeowners. Staff described this tradeoff as a "Sophie's choice." Mayor Turner said the city should not be held hostage and would need to lobby state and federal officials. Multiple council members opposed assessing individual homeowners.
• No formal decision was made; the matter will return during budget discussions and as staff develop more cost and funding information.

Key Outcomes

• Consent calendar approved unanimously.
• D2 approved 5-2; Lomaier and Nearman voted no.
• D4 approved unanimously.
• D5 approved unanimously.
• No vote was taken on the quarterly reports or the lead service line replacement program; staff will continue the inventory, return with budget implications, and join McHenry County advocacy efforts in Springfield on February 7-9, 2023.

Future Agenda Items

• The next regular City Council meeting was scheduled for January 17, 2023, at 7:00 p.m. The mayor noted upcoming agenda items for January 17 and February 7, 2023, and that he planned to be in Springfield with McCOG on February 7-9.