MINUTES OF A PUBLIC INFORMATIONAL MEETING
OF THE GURNEE VILLAGE BOARD IN REFERENCE TO THE
PROPOSED NORTHEAST AREA SANITARY SEWER PROJECT
SPAULDING GRADE SCHOOL GYMNASIUM
SEPTEMBER 30, 1996
The informational meeting was called to order at 7:30 p.m. by
Mayor Welton.
Roll Call, Present: O'Brien, Smith, Ratfelders, Bullock, Amaden
Absent: Rocheleau
Other officials present: James T. Hayner, Village Administrator
Bud Reed, Village Engineer
Todd Gordon, Assistant Village Engineer
Neal Highland, Village Engineering Technician
Mayor Welton welcomed the residents present to this public
hearing. He explained that the Village has already invested much into
this particular part of the community in such things as sidewalks,
roads, and detention areas. Tonight the Village wishes to explain a
proposal for a plan for resident consideration. No decision will be
made at this meeting tonight. The Village proposes to install an
intercept sewer line in this particular part of the Village at a cost
of approximately $450,000.00. Then the neighbors could hook up to
this sewer line on a street by street basis as the need arises. He
then gave a brief history of how the rest of the Village had obtained
sewer and water facilities since 1960 by using such things as special
assessment districts, revenue bonds, and general obligation bonds. He
is stating this as a reminder that every neighborhood has had to pay
its own way in order to receive public benefits. He then introduced
the Trustees present, the Village Clerk, the Village Administrator,
and the Village Engineer. He then asked the Village Administrator to
present the proposal.
The Village Administrator presented a brief history of the
northeastern area of the Village and by the use of a map, outlined
that area which presently does not have sanitary sewer. He explained
that the costs on the fact sheet, dated September 30, 1996, were
preliminary and rough estimates as of this time. He also added that
the figures on the fact sheet include no public benefits being
figured in. The trunk line will be installed in the boulevard
right-of-way and will be considered the public benefit for this area.
The lateral sewer lines will run east and west along the streets for
which the residents will pay. He explained that the Village Engineer
will present the proposal in detail. The Village Administrator then
explained the possible financing while hand-outs were
distributed.
Using a map of the area, the Village Engineer explained the fact
sheet line by line noting the frontage foot costs, the Village
connection fee, the Village inspection fee, the North Shore Sanitary
District annexation fee, the North Shore Sanitary District connection
fee, the disconnect from the septic tank fee, and the fee for
connection to the sewer main. The total cost of this proposal is
estimated to be in the amount of $3.1 million. This proposal would
include service to all lots in the northeastern area of the Village.
There would be no public funds expended for the connection to this
main. In reference to 80 foot lot frontages, 120 foot lot frontages,
and 240 foot lot frontages, he explained the costs. The connection to
the sewer main is normally not done by the Village but by a licensed
private contractor. This fee may vary due to the distance from the
main to a residence. He added that the cost may be high but does
reflect the recent sewer construction in other parts of the Village.
These are user charges applicable to all parts of the Village of
Gurnee and all areas within the North Shore Sanitary District. He
added that an unmetered fee as to user charges are those residents
who do not have Village water, while the user charges for metered
houses do have Village water. The costs are for resident
consideration in order that they know all user charges and
installation charges.
The Village Administrator explained that there are approximately
410 lots in this northeastern area of the Village on which 210 lots
presently have homes and the other 200 lots could be developed with
homes in the future. He explained the two financing methods that
could be used by the Village. The first is to go through the special
assessment process. The residents sign a petition and present it to
the Village. The Village Engineer then reviews the petition and the
area to be serviced and verifies the cost which would be spread
across the benefited area. A court of law then reviews the special
assessment district and a public hearing will be held after 60 days.
In this public hearing, a resident may object as to how the cost was
spread and it was noted that this is a legal process. He explained
that this particular process can be time consuming and is a
complicated process. If the special assessment district is approved,
the bid is given to the low-bid contractor who then submits bills to
the Village. The Village gives that contractor a voucher which he
then sells at a discount. These vouchers are turned into bonds at the
end of the construction period. It is estimated that this process
carries a 20 to 25% factor in higher costs. A lien is then placed
against the property and the bonds are paid off over a 10 year
period. This process is just like that of the paying of property tax
and must be paid. He explained that the advantage of a special
assessment district is that this is the most equitable way to spread
the costs and includes the improved and unimproved lots. It can also
be supplemented by public benefit. Thirdly, the interest is tax
deductible. The disadvantage of a special assessment district is that
it is more expensive, the Village must collect the special
assessments and the principal payment is not tax deductible.
The second way to finance this proposal is by means of a special
service area. He explained this process. The area to be serviced is
outlined in its boundaries and a property tax is levied against those
properties within the boundaries. The problem with this means of
financing is that the levy is based on the assessed value and is not
equitable for the current homeowners. Upon consideration of a special
service area, a public hearing is also held after a 60 day period.
This process can be vetoed by 51% of the electors and 51% of the
homeowners in the special service area. The advantages of a special
service area are that this is a quicker way to develop the area, has
less legal fees, usually obtains better interest rates, has no
collection costs, and is fully tax deductible by the homeowner. The
disadvantages of a special service area are that the taxes are not
equitable for the owners of developed and undeveloped properties.
This special service area also cannot be paid off in advance as can a
special assessment district. He then explained that he realizes the
numbers are expensive and that he feels the costs would be lower with
the actual project. He feels that the Village could install this
sewer main like it has installed the water main. Each street could be
done on a case by case basis for the lateral mains. He emphasized
that there is no simple solution. He explained that if the trunk line
is in, the laterals could then be built. The cost of the interceptor
is estimated in the amount of $457,000.00. He added that the Village
has not had much demand for sanitary sewer in this northeastern area
of the Village, only when septic systems fail for the residents. He
added that the residents would be charged for their sewer when the
said sewer lines are installed. He added again that he feels the
frontage foot cost will not be as high as the quoted $70.00 a foot
front. He explained that the Village received 195 responses to a
recent survey, out of which 121 responses were interested in hearing
about a sanitary sewer or were interested in seeking sewer service,
while 74 responses indicated they had no interest at this time for
sanitary sewer service. He added that the Village Board will see what
the options are after this meeting.
The Village Administrator then answered questions from members of
the audience.
The Village Administrator answered that the issue under
consideration is for sanitary sewer only, no water.
The Village Administrator answered that the Village has received
calls from both homeowners and developers for sanitary sewer service
in this area of the Village.
The Village Administrator answered that at least one half of the
homeowners on a particular section of a street must want a sanitary
sewer.
The Village Administrator answered that the roads will probably be
torn up but that probably the Village would pay for their
restoration.
The Village Administrator answered that the Doyle Distributing
Company is getting a reimbursement for public benefit since there is
public benefit in the installation of their sewer lines. Their sewer
lines, presently being installed, are larger in order to service
other areas of the Village.
The Village Administrator answered that the letters sent out by
the Village to the residents of the northeast area of the Village
were based upon the property tax records. The Village regrets that
certain residents did not receive the surveys.
The Village Administrator explained that the installation of a
sanitary sewer for a property could have an impact on the property
taxes of a resident since the property would be considered as
possibly improved. The township assessor, however, would make that
determination as to whether the property is improved.
The Village Administrator answered that if 60% of the residents on
a street want sewer and 40% of the residents do not want sewer
service, all individuals on the street would pay for the installation
of the sewer line at the time of connection.
The Village Administrator answered that each street must present a
petition to receive sanitary sewer installation.
The Village Administrator answered that the Village will send to
the residents a survey listing the four options on the survey: (1) A
special service area; (2) A special assessment area; (3) Village
installation of the trunk line with the laterals being built on
demand; or (4) The Village doing nothing at this time.
The Village Administrator explained that the sanitary sewer will
be adequate because it was designed to the standards of the North
Shore Sanitary District and that of the Village Engineer.
The Village Administrator answered that vacant lots might be split
as long as they keep an 80 foot frontage for the present R-3
zoning.
The Village Administrator explained that the sanitary sewer trunk
line would be paid out of the Utility Surplus Fund of the
Village.
The Village Administrator answered that installation of the
sanitary sewer for a resident would be charged to that individual
resident and that the resident would have one year in order to
connect to the sewer. There will be a one-time fee payment if sewer
service is desired by a resident. The Village has established the
sewer connection fees.
The Village Administrator explained that corner lots will be
charged only for service on one side of the lot, usually the longest
side.
The Village Administrator answered that vacant lots on a street
are part of the 50 to 60% of the requests from a street. He added
that the costs of the installation for the other 40% of the lots on a
street is paid for from the Village Utility Funds and the Village
will be reimbursed when the additional lots hook up to the sanitary
sewer.
The Village Engineer answered that the North Shore Sanitary
District has the capacity to carry and treat the sanitary sewage from
the northeastern area of the Village. The North Shore Sanitary
District is doing a current expansion and will have adequate capacity
for treatment.
The Village Administrator answered that expenses have risen since
1989 as to the installation of sanitary sewer service for the
northeastern area of the Village and therefore the last proposal in
1989 was less expensive for the residents.
The Village Administrator answered that residents who live next to
the trunk line will need a lateral sanitary sewer line across their
lot.
The Village Administrator answered that a resident need not break
up their basement for the installation of sanitary sewer service
since the contractor will be using the connection to the present
septic tank.
The Village Administrator asked a resident to see him after this
meeting in order that the Village may deal with a delinquent property
which is not being taken care of.
The Village Administrator admitted that without specific figures
and numbers, it may be confusing for residents to decide. The Village
will try to refine the numbers.
The Village Administrator answered that the $70 front footage fee
will be for each side of the street which means that the front
footage along a street is $140. If the trunk line is installed, the
amount of the total project will be lowered by approximately
$450,000. That would also bring down the front footage charge.
The Village Administrator asked the Village Engineer to make note
of the cost for water.
The Village Engineer explained that the northeastern area is a
large area. He was sure that the prices will fall with the size of
this project. He added that the public benefit portion of this
project is a significant part of the cost. However, until the Village
goes out to bid, this is the working fact sheet at this time.
The Village Administrator answered that if 60% of the residents on
a street want sanitary sewer, the other 40% will not have a lien
placed on their particular properties.
The Village Administrator answered that when residents hook up to
the sanitary sewer system, they may need an ejector system but that
possibility would be determined on a case to case study.
The Village Administrator explained that a present 240 foot lot
could be divided into three 80 foot lots and that a present 120 foot
frontage lot would remain as one 120 foot lot. The overall zoning
would have to change for consideration of the 120 foot lot. That
particular matter would go before the Plan Commission and the Village
Board. The size of lots is a zoning issue.
The Village Administrator explained that if property is sold, the
lien will go with the property.
The Village Administrator explained that those residents who are
presently paying North Shore Sanitary District taxes are paying the
taxes but getting no service.
The Village Administrator explained that public benefit is that
payment for the frontage on side yards, the trunk line and the
intersections.
The Village Administrator answered that if a resident is on the
opposite side of a street from the sanitary sewer, the connection to
the main will be more expensive.
The Village Administrator explained that if 60% of the residents
want the sanitary sewer, the other 40% of non-connector residents
could have their frontage assessments go up.
The Village Administrator explained notice for the bid process is
done in local newspapers. He added that the larger contractors will
bid for a project of this size.
Mayor Welton answered that the Village is eager to have residences
in the Village maintain their value. A sanitary sewer adds value to
an individual home and to the neighborhood. There is a commitment by
the Village to install the interceptor if the residents so desire.
The Village Board thinks that it does make long range sense and is a
sound municipal investment in this neighborhood. The Village is not
promoting growth, but is only seeking commercial and office parks in
other parts of the Village at this time. The Village Board is
considering a tax rebate. The Village feels that once the intercept
line is installed other residents will be hooking up.
The Village Administrator answered that the time frame of this
sewer proposal ranges from one year to three years.
Mayor Welton answered that the survey study should be done in the
privacy of each resident's home and that the sanitary sewer
installation project will result in similar results as with the
installation of the recent Village water line.
Trustee Smith said that confusion seems to be abounding in
reference to this proposal. The Village Board is proposing to provide
an intercept sewer line in this area as like no other part of the
Village. The Village is making it easy for the residents to hook up
at their own time and convenience. The Village is using surplus money
to fund the intercept and it makes sense at this time to have this
intercept line installed. He agreed that it might open up the
neighborhood to development with a subdivision of large lots.
However, residents do not have to hook up to this sewer line. Option
3, he noted, is being offered only to their neighborhood.
The Village Administrator answered that payment will be required
when a resident is connecting to the sewer line.
Mayor Welton answered that residents will be forced to hook up to
a special assessment district or a special service area. He added
that the Village has the economic strength because of all the new
areas in which the developer installs sewer lines at the developer's
costs. These are user fees.
The Village Engineer answered that the $140 front footage on both
sides of the street includes the costs of engineering and public
benefit. He does expect that the frontage foot cost will be
reduced.
Mayor Welton answered that the Village will be getting a new
survey out to the residents of the northeastern area of the Village
and hopefully can install the intercept line.
The Village Engineer answered that the votes on a street are from
information taken from the tax bills. There is a survey for each PIN
number and each PIN number has one vote.
Mayor Welton answered that the implications for the schools,
streets and other public services should be minimal in their impact
since much of the Village has 80 foot frontage lots.
Mayor Welton answered that curb and gutter is required only of new
developments. Sidewalks are the responsibility of new developers but
the Village has no intention to install sidewalks in front of every
property. The northeastern area of the Village has a more country
appearance.
The Village Administrator answered that a registered plumber must
hook up sanitary sewer service to the individual house.
There being no further public comments, Mayor Welton adjourned the
Public Information Meeting at 9:01 p.m.
Norman C. Balliet
Village Clerk