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HomeMy WebLinkAbout2290_0010 MINUTES COMMITTEE OF THE WHOiLE nen FEBRUARY 22) 19,83, Io ROLL CALL Mayor Krause called the meet ing, to, order at 7 30, p.m. iIII n, the Public Safety Building, 112, East Northwest Highway. Present at the meeting were. - Mayor Carolyn Krause, Trustees, Gerald Farley,, Leo, Florols, E., F111 Richardson and Theodore Watt enb el r -c -r., Absent from the meeting were: Trustees Ralph Arthur and Norma Murauski-S, Also present at the meeting were: Village Manager Terrance Burghard, Di'rector of Management Services John i Hedstrom, and Director off Community Development Kenneth al Fritz. There, were six persons n the audience, II. MINUTES The Minutes, of the Committee of' the Whole meeting, of P January 2,51 19ac 813, were cep,ted and f I'led. 0 III., CITIZENS TO BE HEARD, o There being nCt o i io s presente m zeas' at the meet des, iri" ng, 0 to, make any presentation before the Committee of the Whole, the Mayor moved on t othe next item of bus 3-ness, IV. BUSINESS REHABILITATION LOAN PROGRAM All, Al - All A& go Ell All Ak Aft Ak Ah Aft, Ob lie Aft AL Ak► AM 41 0, The Committee, of the Whole disicus,sed the Program and, Mayor 1 0 o' Krause colmparied the bias, ic functioning of' our Program to that in Oak Park,,, Trusitee WattenbeIrg expressed his reluctance tol change the Program, based. on the philolsolphy that he has, not heard from the businessi communiry that changes need be made. It wa,s the glenerial consiensius among the remaining elected offticials that, the chan,gles were worth pursui-ing, and the, administration was, directed to place 10, ol this item on the next Village Board Agenda for a first reading . �j V. _ �8 3 ""w" �L.. 9 '8'4 BUDGET so 7, mow; ,M► r" ,. ,W�'". � � ' {91� 4 p�i ,. i n >i " ,. r � � � �� aMii �� ■ ;. .. aAMM al► , r , s 409 ,MMb aYt:. iWA " +�w. MAIY MMM.. !M. MIMa:, AMID , awu,,: 1 A,.. MMM MMM 40 I aw AW A* r All AW Ver All, 0 0 AN, 4W lab W Ak r 10, AW Ak Z. dw 40 40L db Ak VI MANAGER I IS, REPORT The Village Manager, reported that the WATER AGENCY' has, 0, tentatively, scheduled a ground -breaking, cere,mo,ny for, 0, the Mount Prospect, e se,meint, of' the wat «w. r line, for March 10 in, the morning. VII. "MY OTHER BUSINESS, mi Trustee Floros inquired as, to, whether or, not the V:L1 laige had received formal notitication of the piroiplosed Railroad 40 a Stati , on improvements a si reported 3 1 -n the, local newspaper., ii The, Village Manager inaicated that, neither his office nor, the Mayor " si off ice had yet recelived any, formal, notiLfication, 01 Trustee Watte,nblerg, suggested that the Village again contact, W Ili di the, Northwest, Municipal Conference and the Illlnoi s Mun il c i Pal All # III League to, see if we could have, leg, islation introduced, in OW mi #01 1 a ty, Spirl.1nigrield that would, exclude, the V1* ll,age, from, liabi, 3. 01 0, for sidewalk falls, 'If' the Village had not received notice mi of defect in that, s,30-1dewaTrustee Wattenbergi felt, that 41 t 0 owl a i, is untair for the courts and the attorneys, to, asicrible any liabil"ll"ity to the Village and, hoild them responsibl,"le 'l the Village did not, know that there was, a defect. The, Committee ofi the Whole agreed in principie to, Place t , nis 0, i,tem on a future Committee of' the Whole Agenda,, VI I I. ADJ OURNME,NT There. being no further business, the, Committee of' the Whole meeting was aajourned at 91'.1010 P.M., All 3 TO: VILLAGE MANAGER TERRANCE L. BURGHARD 1WRI36 DATE -, FEBRUARY 161, 1983 • One of the significant requirements of our Cable Franchise Agreement with Cablenet 'is that they provide an institutional network whi-ch l'inks all local governments, educational institutions, medical faciiiries, libraries., etc. by cab le. This system must be completed by August 1, 1984 and will include data transfer as well as communication capab il 'it ies among these institut ions witnout the expense of phone ll*nes,, Although the Cablenet system has been designed according to the specifications included in the Cable Franchis e Agreement,, there is concern by several institutions that a system # 6 40 design review is necessary. The Northwest Municipal Conference Cable Consortium which 'is chaired by Trustee Farley took action at its last meeting to contract with Malarky Taylor to review the needs of our system. and work with Cablenet, in making any modirications. You may recall that Malarky Taylor i's the consultant that assisted the Conference through- out the Franchise negotiations. The contract will be approximately $4,000 and each community is asked to authorize an expenditure not to exceed $300 per comunity. Harper,, Oakton and other institut ions are being solicited to participate fienanciall i thi y in is as well. With your approval, we will place th's *t' I i i em on an up coming Board Agenda for action. JAY R.`HEDGES Village of Mount Prospec MOUnt, Prospect, 111*1nols 1 If ww Irz, 40" T01-9 TERRANCE L, BURGHARD, VILLAGE MANAGEoR FROM 40, KENNETH H, FPI TZ, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT. AMENDMENT TO ORDINANCE #3060 - BUSINESS REHABILITATION LOAN PROGRAM IATE: FEBRUARY 17, 1983 Our department has found in administering the Business Rehabilitation Loan Program that several local businessmen have investigated use of the program but have found that their anticipated needs are greater than the maximum amount of $25,000 provided for under our current ordinance. The staff therefore is suggesting that the maximum loan amount be increased to $50,000 with the provision to allow for larger loans in special cases. As YOU are aware, the loan application is reviewed and, if consistent with the guidelines, is approved by the Plan Commission for processing to the banking institutions for their approval. The proviso for allowing larger loans than the $50,000 limit would, under the proposed ordinance, be reviewed and approved by the Village Board and would require that the applicant meet one of the two following conditions. 1 That the building being proposed for rehabilitation could not be brought into compliance with ail of the 2ppliC2ble Village codes within the maximum loan amount of $50,000; or 2 That the loan would need to be applied to the common elements of a building consisting of four or more separate establishments'. A memorandum outlining in more detail the background of this proposal and a suggested format for a proposed ordinance change are attached for your information, KHF -. hg Clow Steve Park John Bowman Plan Commission Business District Development and Redevelopment Commission Village of Mount Prospect Mount Prospect, Illinoi's TOO KENNETH FRI TZ, COMMUNITY DEVELOPMENT DIRECTOR STEPHEN M. PARK, VILLAGE PLANNER FROM; JOHN BOWMAN, ASSISTANT PLANNER SUBJECT: AMENDMENT TO ORDINANCE 3060 (BUSINESS REHABILITATION LOAN) DATE, FEBRUARY 15, 1983 In an effort to make the Business Rehabilitation Loan Progr'am more responsive to the needs of local businessmen, I have been investigating potential changes to the program. One change which has been suggested is to increase the maximum loan amount to $50,000 with a provision to allow larger loans inspecial cases. This memo will discuss the need for this change and the expected impact on the number of loans we will be able to issue. A later memo will discuss the program in general and the implications of Lhe Davis -Bacon Act in particular. Background Although $25,000 will cover the cost of many specific improvements to a commercial building,. such as a new roof or new windows, the cost of "rehabilitating" a building in any real sense would likely be much higher. The goals of a rehabilitation program should be to comprehensively upgrade the building's value and appearance, which in turn will have "spillover" benefits to other properties in the area. Rehabilitation activities will not have the desired impact unless the project includes the more visible types of improvements, such as storefront remodeling, landscaping, or other site improvements. Currently, this type of work is restricted to 251.0" of the loan. The balance of the loan must be applied to code -related items., possibly involving plumbing or electrical problems or health and safety violations. In many cases, $25,000 would not be sufficient to cover these kinds of code problems, let alone the cost of desired general remodeling, To illustrate, a recent application involved a rehabilitation project with an estimated cost of some one or two hundred I thousand dollars. Since a $25,000 loan was obviously insufficient, two loans were applied for: one for the building as a whole, and one for a particular tenant. Although this type of "dual" application is currently permitted in the ordinance, the fact that there are two loans for the same general project leads to administrative difficulties, not the least of which is the problem of ensuring that the benefits of the improvements are distributed proportionately. Number of Loan.A By allowing loans of greater than $25,000, more interest in the program could be generated and administrative procedures could be simplified. However, a maximum amount is desirable in order to prevent the depletion of the Village's resources on a single project. The following Table indicates the maximum number of loans which we can expect to issue under various loan conditions: Interest Rate** Payback Peri od Principal: Total Payback: Interest Cost .Village Cost: No. of Loans:** 5 0/ ofo 5 Year 10 Year $25��OO $501000 $25,000 $509000 Z i,3596 85 $71737- $109685 $21 59343 $10768 17 8 1 �48 1420 $ 96, 840 4237420 $467840 411,710 $23 9420 8 4 *Interest rate offered by participating lending institution over the previous quarter. **Maximum number of loans possible given current funding ($95,000) assuming all loans at the indicated maximum amount and payback period. As the above Table suggests, a $25,000 maximum would allow us. to approve 8 to 17 separate loans, depending on the payback period. Currently, the potential for individual loans exceeds demand by quite a margin. On the other hand, with a maximum of $50,0009 4 to 8 such loans could be issued before the existing resources are depleted. Thio is probably a much more realistic goal, and new funding may be possible under future grants if demand increases s i g n i f i c a n t 1 y * Ordinance Revision -NL- Attached is a draft of a proposed ordinance which would revise the Business Rehabilitation Loan Program to allow for loans of up to $50,000. The ordinance also includes a provision which allows for flexibility in special cases. If certain conditions are present, the Village Board may authorize a loan in any amount, provided sufficient funds are available. Finally, a provision is included which would prevent individual tenants of a building and the owner of a building from obtaining separate loans for the same project. This will help to distribute our remaining funds more evenly and will prevent the administrative difficulties discussed previously, 11 ,AN ORDINANCE TO AMEND AN ORDINANCE ESTABLISHING A BUSINESS REHABILITATION LOAN FUND AND STANDARDS & M-1 BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF TH VILLAGE OF MOUNT PROSPECT, COOK C1UNTY9 ILLINOIS, AS FOLLOWS: SECTION ONE: Village Ordinance No. 3060 entitled "An Ordinance Establishing A Business Rehabilitation Loan Fund and Standards and Procedures in Connection Therewith" as amended, i hereby further amended as follows: I A. By amending Paragraph B of SECTION SEVEN entitled "Administration of Business Rehabilitation Loans and Business Rehabilitation Loan Subsidy Fund" to change Subparagraph 1 thereof to read as follows* 1. That such Business Rehabilitation Loans shall be payable over a period not to exceed ten (1 0) years, shall not exceed the principal amount of $50,000 and shall bear interest at the existing commercial mortgage rate in effect at the time a Business Rehabilitation Loan is approved by the Lending Institution. 'No loan origination fee will be charged by the Lending Institution, but the applicant shall be responsible for payment of all loan administration fees including therein the costs of obtaining the necessary title commitment reports and credit reports., B, By amending Paragraph B of SECTION SEVEN entitled "Administration of Business Rehabilitation Loans and Rehabilitation Loan Subsidy Fund" to add a Subparagraph 4 thereof to read as follows: 4. "That the principal amount of such Business Rehabilitation loans may exceed $50,000 in special cases, provided such loans are specifically author-ized by the corporate authorities of the Village. An application for a Business Rehabilitation Loan shall be considered to be a "special case" if either of the following conditions are present'. a The building cannot be brought into compliance with all applicable Village Codes within the maximum loan amount, b The loan is to be applied to the common elements of a building consisting of four 4) or more separate establishments." P Via I I a S )f I�Aount Prospect "; Mount Prospect, 111i1nois T' I INTEROFFICE MEMORANDUM TO: Terrance L. Burghard, Village Manager FROM: John A. Hedstrom, Director of Management Services RE*- Computer Configuration and Applications DATE: February 17, 1983 The Village I s Computer 'is an IBM System/34 Conf i gured as f ollows - 96K of main or internal memory - 64 megabytes of fixed disk - One line pri 2 -ILMON-W We are proposing to increase the size and capacity of the existing computer to offset these problems resulting in a configuration as follows-. lw�o ,Results, of th," 1.s proposal, are to 21,x.icre,ase main memmory by 32K and fixed disk by 64,, megabytes. Both of these changes, are the IBM Corporation's next increments " I le The add itional ter -mina, 1 and charac,ter :int r a -re for the Fire Department (,Code Enforcement) 'uses and as such would be located in Code Enforce - Ir ment ',but would be, "w1red into the System/34 computer. These two items are 1 30 av,,:-i,ilable from,, and could be ..'urdhased from Decision Data Computer Corporation ,and not the IBM Corporation because of dower prices as outlined bloc_ Printer 80 Characters per second 150 Characters per second Terminal Decision Data Computer Corporation $3,995 11900 I B M, Corporation $ 825 11992 Our reseA-arch indicates that Deci-Sion Data, Computer Corp or,a ti On hardware is IBM System/34 com, atibnle and that the ViIlage of Pala,tlne P is currentl, these devices on, their IBM S ste"M/34, copputer. y 'u,sing facts as well as Y We woul,d, Of COurseo,%rerl'-fy these satisfy ourselvess as 'to reli,abillity and, qua,,,Ilty of mainitenance service of Decision Data before formal ordering of e,qu_1.prn,.­ent,,, We completed a discounted cash flow anal" s* ' S US] -ng the "interest rate 'h Of 8.4% currently received by the Village, 'or t,,e costs of $11,020 for mai me, -,inc r , in ,rl'y ($I,�570) and fixed disk ($9,450) from IBM 'The results of t' - tion nd hij s, calcula- A, I Ica,te that it would be cheaper to pay ca,sh for these two feces of hardware versus financing $11,020 for 5years at 10% interest for 60 monthly paymients of $234-14. Cost of Present Proposed Increase - Main memory -- Fixed Disk - TerTninals 1 Line printers Character printer 96K 64MB 5 128K 128MB 6 $ 1570 , 91450 11900 3,995 $16,915 ,Results, of th," 1.s proposal, are to 21,x.icre,ase main memmory by 32K and fixed disk by 64,, megabytes. Both of these changes, are the IBM Corporation's next increments " I le The add itional ter -mina, 1 and charac,ter :int r a -re for the Fire Department (,Code Enforcement) 'uses and as such would be located in Code Enforce - Ir ment ',but would be, "w1red into the System/34 computer. These two items are 1 30 av,,:-i,ilable from,, and could be ..'urdhased from Decision Data Computer Corporation ,and not the IBM Corporation because of dower prices as outlined bloc_ Printer 80 Characters per second 150 Characters per second Terminal Decision Data Computer Corporation $3,995 11900 I B M, Corporation $ 825 11992 Our reseA-arch indicates that Deci-Sion Data, Computer Corp or,a ti On hardware is IBM System/34 com, atibnle and that the ViIlage of Pala,tlne P is currentl, these devices on, their IBM S ste"M/34, copputer. y 'u,sing facts as well as Y We woul,d, Of COurseo,%rerl'-fy these satisfy ourselvess as 'to reli,abillity and, qua,,,Ilty of mainitenance service of Decision Data before formal ordering of e,qu_1.prn,.­ent,,, We completed a discounted cash flow anal" s* ' S US] -ng the "interest rate 'h Of 8.4% currently received by the Village, 'or t,,e costs of $11,020 for mai me, -,inc r , in ,rl'y ($I,�570) and fixed disk ($9,450) from IBM 'The results of t' - tion nd hij s, calcula- A, I Ica,te that it would be cheaper to pay ca,sh for these two feces of hardware versus financing $11,020 for 5years at 10% interest for 60 monthly paymients of $234-14. We realize this proposal is not wn the scope of f iscal year 82-83 budget, but we would recommend funding of these items from other 82-83 budgeted,, but unused, accounts divided as follows-, Budgeted Under Fund Account Amount Actual 3 We realize this proposal is not wn the scope of f iscal year 82-83 budget, but we would recommend funding of these items from other 82-83 budgeted,, but unused, accounts divided as follows-, Budgeted Under Fund Account Amount Actual Budget 21-041-06-8001 Police Vehicles $50rOOO $45r5OO $ 41 500 51-000-00-4162 Sale of Fire Truck 7,500 750 0 51-000-00-4162 Sale of Fire Helmets 600 , 600 41-072-01-6014 Computer Programming 2,000 718 1, 282 01-071-01-6014 Public Works -Street 2FOOO 2fOOO Department -Adm. & Support Computer Programming 01-031-01-6014 Management Services - 31,000 lr700 1,300 Electronic DP Computer Programming Total "Under Budget" $17,182 Since the "Under Budget" of $17,182 exceeds the proposed costs of $16,915 Iit is felt that this proposal can be funded within the limits of fiscal year 82-83 budget by charging the funds cated above using existing Capital Accounts and transferring any deficiencies via the budget transfer resolution in late April. Installation of these features can be accomplished within 30 days after placing of orders. Should thi's proposal meet with favorable response we would request waiving normal bidding procedures due to the nature and aval I *lability of these products. We would appreciate direction from your office regarding this request. cc -0 Chief Pairitz