VILLAGE OF LINDENHURST

MOTION A motion to accept the November 29, 2007 December Treasurer’s Report in the amount of $9,646,195.05 was made by Trustee Dunham, seconded by Trustee Messmer.

THE ROLL CALL

VOTE WAS: Ayes-6 Trustees Dunham, Messmer, Marturano, Wayne, Zerba, Metzelaar

Nays-0

JANUARY BILLS

PRESENTED FOR Trustee Dunham moved to pay the January bills in

PAYMENT amount of $1,526,363.16, seconded by Trustee Wayne.

THE ROLL CALL

VOTE WAS: Ayes-6 Trustees Dunham, Wayne, Metzelaar, Marturano,

Messmer, Zerba

Nays-0

COMMUNICATIONS

COMMITTEE BOARD

& STAFF REPORTS Trustee Marturano stated he attended the Fire Department Protection District meeting on January 7. As previously shared, board member Skip Stachera resigned. Lori Heitman was sworn in as his replacement and was appointed secretary. Bud Scott was appointed Chairman, Ed Laudenslager was re-appointed treasurer.

Trustee Zerba attended a meeting on January 14 for the District 41 Facilities Planning Commission. Choices for presenting three different “families” or scenarios the District should consider in the future were narrowed. The results will be presented at the next school board meeting.

Trustee Wayne announced the date for the next public open house for the trails and pathways project will be held Monday, January 21, from 5pm – 8pm at the Lake Villa Library.

Trustee Metzelaar announced there will be a Lakes Commission meeting on January 16 at 7:30 pm at the Village Hall; there will be continued discussion regarding low or no phosphorous fertilizer use in the Village. Metzelaar also stated the next SWALCO Meeting is scheduled for January 24.

Trustee Messmer stated Megan Hyatt, a student at Lakes High School, will compete in the U.S. National Figure Skating Championship in St. Paul, Minnesota later this month, taking her one step closer to qualifying for the U.S. Olympics.

Trustee Zerba announced that Police Chief McKeever is celebrating his 35^th year working in the police commission. The Board commended his service.

Mayor Lahr shared with the Board a report regarding Raven Glen Equestrian Center and the Forest Preserve’s interest in having Raven Glen considered an alternate site for the 2016 Olympics. Discussion ensued about enacting a Resolution in support. The Board reached agreement that any Resolution should include language stating an Olympic event held in this area of Lake County would benefit immensely from road improvements to accommodate increased traffic to avoid impeding the event. This issue will be added to the next Board meeting agenda for finalization.

OLD BUSINESS A. Jensen Disposal

Administrator Stevens stated December 31, 2008 is the specific date proposed for extending the current contract (from September 30, 2008). Attorney Phillips advised extending the contract date would require amending the current contract and asked the Board for their perspective regarding offering a larger cart for an extra $1.00 fee. Stevens provided historical insight that the original rate structure for the 48-gallon wheeled carts already included a small funding fee and, taking that into consideration, questioned whether the proposed amount of a new fee should be reduced. After brief discussion, it was decided Administrator Stevens would get more clarification as to cost and the issue would be tabled for future action.

NEW BUSINESS A. Village Green: Presentation and Update (Action Items)

Charlie Hickcox, from Oliver McMillan, presented items for Board consideration and potential referral to the Plan Commission. Hickcox introduced Tim Kent from architectural firm Pappageorge, Haymes, Ltd.; Tim O’Leary from Swanson O’Leary Group and Attorney Mark Eiden.

Hickcox summarized the Village Green property was acquired in April and that Oliver McMillan has been working with the Village Board and consultants since that time. Oliver McMillan hopes to start mass grading within the next several months.

Hickcox discussed several issues: the retail site plan to be submitted to the Plan Commission; the focus of creating a “main street” character for the development; and the pocket marsh and bio-swales on the plan to enhance existing wetland areas and to avoid disturbances. Hickcox reported that his firm has received a letter of intent from a theater and is actively working with retailers for about 50% of the leasing space.

Mayor Lahr described the rendition being presented this evening as very similar to the one presented at the November public forum. Lahr continued the original annexation plan shows a development with a very angular road system. The Village focus has been to enhance the development, to make street layouts more flowing in relation to buildings, and create a pedestrian-friendly plan to help ensure Village Green as a long-term economic project. There was also an addition of a limited amount of diagonal parking across from the anchor adjacent to the Green as an alternative to parallel parking. To make sure there is no detrimental impact to the environment with the coming commercial development, Lahr stated it is critical to take an active role to preserve the land. Additions to the current plan, such as terrace gardens, pocket marshes, and bio-swales, are attempts to enhance the environmental piece of the development, as well as aesthetics.

Trustee Zerba inquired as to whether there is going to be an upscale market, as she believes this would be a vital piece. Hickcox answered that, at this time, there is no letter of intent from an upscale grocery store, but that various markets are being engaged in discussion. He acknowledged Oliver McMillan also viewed this as an important addition to Village Green. Zerba also inquired about he use of white brick, the durability and maintenance of canopies, and the assurance of real slate being used on roofs.

Resident Luigi DeAngelis, 2703 Neubauer Circle, asked whether the plan was a re-proposal, stating he believes the development has been reduced. Hickcox assured this was not the case, stating the original plan called for 450,000 square feet of commercial space and that with the current plan, there will be 550,000 to 600,000 square feet including the anchors.

Tim Kent from Pappageorge, Haymes, Ltd. discussed the architectural character of Village Green, sharing that the sense of volume and scale is emphasized by pitched roofs; the color, texture and heights of buildings; and the widths of sidewalks and streets. Kent continued the plan reflects architectural interest and is not monotonous, noting that quality materials throughout the project (e.g., white-colored brick for gabled buildings, limestone materials for flatter buildings, etc.) help make a vibrant streetscape. Discussion took place regarding cornices, downspouts/gutters, interspersed areas of landscaping, upkeep of awnings and canopies, and the classic style of architecture. Mayor Lahr added this presentation is available on the Lindenhurst Village website.

MOTION Trustee Marturano made a motion to refer the site plan and architectural plan to the Plan Commission for their review and analysis, seconded by Trustee Wayne.

ROLL CALL Ayes = 6, Trustees Marturano, Wayne, Metzelaar, Messmer, Dunham, Zerba

Nays = 0

Mayor Lahr stated the plans would be going to the Plan Commission for their January 16 meeting.

B. Liberty Community Church: (1) Ordinance: Amending the Zoning Map PUD-1 (Residential) to I (Institutional District); (2) Ordinance: Approving a Site Plan, Architectural Plans, Landscape Plan and Lighting Plan;

Mayor Lahr informed that Liberty Community Church will be built on Gelden Road west of the storage facility and east of Grant’s Grove. Administrator Stevens stated there was a full recommendation from the Plan Commission’s at their last meeting. Pastor Bond, pastor of Liberty Community Church, commented they look forward to being part of the community, that he believes the building will complement the neighborhoods, and that the church will be a benefit to the Village and community.

ORDINANCE No. 08-01-1670

MOTION A motion was made by Trustee Zerba amending the Zoning Map PUD-1 (residential) to I (institutional district), seconded by Trustee Marturano.

THE ROLL CALL

VOTE WAS: Ayes-6 Trustees Zerba, Marturano, Metzelaar, Wayne, Dunham, Messmer.

Nays-0

ORDINANCE No. 08-01-1671

MOTION Trustee Dunham made a motion to approve the site, architectural, landscaping, and lighting plans, seconded by Trustee Metzelaar.

THE ROLL CALL

VOTE WAS: Ayes-6 Trustees Dunham, Metzelaar, Wayne, Zerba, Messmer, Marturano.

Nays-0

C. Presentation: Water Capital Improvements Loan/Harris Bank.

Tara Griffin of Harris Bank presented information about Harris Bank and their offerings and history of working with the Village. Griffin stated long term rates are currently at a 40-year low for loan issuances. Griffin continued that debt certificates are the best type of funding for several reasons, including the fact that it is not necessary to hold a hearing or petition, they can be put in place with up to a 20-year maturity, and there is no levy for debt certificates because they are paid out of the general fund.

Administrator Stevens inquired as to whether the debt certificate could be paid off early. Griffin said there was an 8-year call built in, but that a method called “advanced refunding” would allow for paying the certificate off early. In order to save money you would either have to shorten debt or the treasuries would need to be higher than Harris’ yield. With an 8-year call, continued Griffin, there is a redemption period with an opportunity to refund.

Griffin said the sample debt schedule in the handout was run January 5, 2008, using a 4.03% yield with a 4.23% all-inclusive rate. Since the markets are currently volatile, Griffin stated it would be beneficial for the Village to obtain a Moody’s rating, but that it would take some time to put together. The cost of obtaining a Moody’s rating is approximately $5,300 and would generate $20,000 to $40,000 in interest savings over the life of the loan. Griffin added that, under private placement, adding a Moody’s rating would generate a lower rate quote by Harris.

Griffin outlined the next steps in securing a debt certificate would be to apply with Moody’s and a rating would be issued and sent to local banks for their rate quotes. Another option would be to wait until the end of the month and put the bid out to AAA insurers that are quoting prices during the current volatile market. This option includes going through underwriting and may save interest. Griffin concluded by encouraging the Board to follow through with the Moody’s rating process.

Stevens informed the Board that the reason for looking into debt certificates is because the Finance Committee has been studying the Utility Department finances and recommends the need to borrow $2 million to offset recent engineering costs and pending water capital projects. A debt certificate would replenish the Village’s capital and keep utilities solvent. Stevens continued that the plan for paying the loan back is with future water tap-on fees, stating a typical home in the Village pays more than $2,000 for such fees.

Trustee Wayne asked Griffin to calculate the cost of the Moody’s rating in present day dollars. Mayor Lahr received consensus from the Board in favor of the current direction in obtaining a debt certificate and for the Village to apply for a Moody’s rating. Lahr stated Griffin should work with Treasurer Neubauer to obtain any necessary information in order to accomplish this.

D. Ordinance: Amending Water and Sewer Rates and Charges

Administrator Stevens communicated that each year the water and sewer rates are analyzed by the Finance Committee. Recent analysis showed negative cash flow for operations and maintenance costs over time and that the only way to stop negative cash flow is to reduce costs or increase water/sewer rates. The consensus of the Finance Committee was to increase water and sewer rates by 9%, which translates to an average home water bill of $72 increasing to $80. Stevens continued that the last rate increase was in 2005 and that the Village of Lindenhurst bills residents for water and sewer bimonthly and maintains some of the lowest rates in the area.

Stevens stated any increase would also affect tap-on fees and that the effective date for such an increase would potentially be reflected on the March 15 bill, due in April.

Mayor Lahr suggested reviewing rates annually and whether a reduced increase could be offered to seniors. Stevens stated seniors currently receive discounts. Trustee Dunham commented that the Finance Committee is looking at reviewing the water/sewer rates annually.

ORDINANCE No. 08-01-1672

MOTION Trustee Dunham made a motion to approve water and sewer rates, tap-on feels, and meter rates by 9% beginning with the 1/15/08 – 3/15/08 billing cycle, seconded by Trustee Wayne.

THE ROLL CALL

VOTE WAS: Ayes-6, Trustees Dunham, Wayne, Metzelaar, Messmer, Marturano, Zerba

Nays-0

E. Ordinance: Authorizing Execution of an Assignment of Cell

Tower Lease from New Cingular Wireless to Denali Spectrum Operations

Mayor Lahr summarized the Assignment of the lease from Cingular Wireless to a new owner. Attorney Phillips stated the revenue stays the same as when the lease was entered into in 1999, adding the lease can keep rolling over for five, 5-year periods for renewal. The present term expires 12/31/09, with three more 5-year renewal periods possible under that lease.

ORDINANCE No. 08-01-1673

MOTION Trustee Marturano made a motion to authorize execution of the Assignment, seconded by Trustee Messmer.

THE ROLL CALL

VOTE WAS: Ayes-6, Trustees Marturano, Messmer, Zerba, Wayne, Dunham, Metzelaar

Nays-0

F. SWALCO O&M Fee Invoice/Discussion Regarding Choice of Payment Options

Mayor Lahr stated an invoice was received from SWALCO for $4,953. Additionally, the Village has received recycling revenues of approximately $23,000. The question was raised as to whether SWALCO invoices could be offset by the recycling revenue with the intention of keeping recycling-related revenue in the same budget category. Mayor Lahr asked for a consensus from the Board; all were in favor.

G. CBR-1 Zoning District: Recommendation from Plan Commission and Recent Findings

Administrator Stevens explained that at the last Plan Commission meeting it was recommended (4-3) to NOT adopt CBR-1 zoning classification. Stevens continued that over the last week, research showed that at the first Board meeting of the new Board held on May 14, 2007, there was an erroneous item in the Board packet stating that CBR-1 zoning was being recommended for approval. In actuality, the CBR-1 zoning was in the process of review. A further review of the records showed that this issue was tabled (not passed) on April 4, 2007. The result of this error was that the May 14 Meeting Agenda packets for the Village Board erroneously stated the Plan Commission had recommended CBR-1 for approval.

Attorney Phillips stated one option to rectify this situation would be to send the zoning issue back to the Plan Commission for another public hearing and a re-review of the CBR-1 ordinance now in existence. The Plan Commission could then make a new recommendation to the Board. Mayor Lahr said she was in favor of following this process, re-referring the issue to the Plan Commission, having a public hearing, and moving forward.

Attorney Phillips advised the need to republish for a public hearing requires a 15-30 day notice in the paper. Administrator Stevens stated he added an agenda item for the upcoming Plan Commission meeting on January 16, providing an update as to status of CBR-1 and what needs to be done. Ultimately, continued Stevens, this issue will come back to the Village Board for disposition.

MOTION: Trustee Dunhan made a motion referring CBR-1 back to the Plan Commission for review of removing the CBR-1 zoning district text amendment, seconded by Trustee Messmer.

ROLL CALL Ayes-6, Trustees Dunham, Messmer, Marturano, Zerba, Wayne, Metzelaar

Nays-0

H. Ordinance: Amending Personnel Code/Health Insurance Contribution Rates

Administrator Stevens provided information regarding a survey that was conducted a few years ago regarding health insurance contribution rates for employees. The survey results showed the Village’s coinsurance rates, as set by the Village, of 50% for a 1-year employee, 25% for a 2-year employee and 10% for employees with tenure of three or more years, was not competitive in this area. The 50% coinsurance for new employees is very costly and could impact turnover. Analysis shows that the cost to the Village to extend the 10% coinsurance rate to the affected employees would be approximately $14,000.

Trustee Dunham stated that to maintain equity and to bring non-union employees in-line with those in the union, implementing a 10% coinsurance rate is appropriate. Mayor Lahr added this could be used as a recruiting tool to attract quality candidates for open positions in the Village.

ORDINANCE No. 08-01-1674

MOTION Trustee Marturano made a motion amending the personnel code/ health insurance contribution rates, seconded by Trustee Zerba.

THE ROLL CALL

VOTE WAS: Ayes-6, Trustees Marturano, Zerba, Metzelaar, Wayne, Dunham, Messmer

Nays-0

I. Heritage Park/Pulte Homes Request for Reduction in Performance Surety

Engineer Welsh explained the issue of requesting a reduction in performance surety is customary in the development world. A developer posts a performance surety when construction starts and, at a certain time in the process as work is completed, the developer is allowed to reduce the performance surety. Welsh continued that Pulte recently requested a reduction and, upon review, advised the request for a reduction to $612,095 (15% of the original performance surety value) is warranted since the value of the work necessary to complete subdivision is much less.

MOTION Trustee Zerba made a motion supporting a reduction in performance surety to $612,095, seconded by Trustee Dunham.

ROLL CALL Ayes-6, Trustees Zerba, Dunham, Metzelaar, Marturano, Wayne Messmer

Nays-0

J. Veterans Memorial/Loan Repayment Transfer

Administrator Stevens relayed a recommendation to transfer $33,853 from the Veterans Memorial Fund to a corporate fund cash account. The Treasurer’s Report reflects a line item of approximately $40,000, stating $33,000 can go back to an in-house repayment fund.

Trustee Zerba asked how the fund raising was going. Trustee Dunham stated he received information that the original ordinance assigning the Veterans Memorial Commission defined the charge of the Commission was to advise the Village on fundraising, not to undertake fundraising. Mayor Lahr suggested there be a review of records from when the Commission was created to get information on roles and responsibilities to determine what action should be taken.

MOTION Trustee Dunham made a motion to complete the Veterans Memorial loan repayment transfer, seconded by Trustee Wayne

ROLL CALL Ayes-6, Trustees Dunham, Wayne, Marturano, Messmer, Zerba, Metzelaar

Nays-0

PUBLIC

PARTICIPATION Gina Masse, 2704 Neubauer Circle, stated the parking situation in Heritage Trails is a problem. Buildings have 4, 5, or 6 townhomes in a unit and if two people have company, parking is very limited. Administrator Stevens stated the development has private streets and that the site plan designates parking spaces. Stevens stated it may be possible that Heritage Trails may not be far enough along in development for all of the planned parking to be in place.

Luigi DeAngelis, 2703 Neubauer Circle, expressed an apology to the Board for disrupting the Oliver McMillan presentation, adding he did not wish to be disrespectful to the Board.

MOTION A motion to adjourn the meeting was made by Trustee Wayne, seconded by Trustee Dunham. Upon a voice vote, the motion carried.

ADJOURNMENT The meeting was adjourned at 8:58 pm.

Date Approved__________________________________

_______________________________ _________________________________

Susan Lahr, Mayor Patty Chybowski, Clerk