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HomeMy WebLinkAbout12-06-2016 Council Meeting Minutes City of Canton Council Meeting The Donald Edwards Way (Historic Depot) Canton II 61520 12-06-2016 6:3Opm A regular meeting of the Canton City Council was held on December 6, 2016 (6:30pm) in the Council Chambers, The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. STAFF IN ATTENDANCE Mayor Jeffrey Fritz, City Clerk Diana Pavley-Rock, Treasurer Crystal Wilkinson, Police Chief Rick Nichols, Fire Chief Tom Shubert, Comptroller Dan Bender, City Engineer Keith Plavec MEDIA IN ATTENDANCE: Daily Ledger, Fulton Democrat VIDEO SERVICES BY JOE GINGER PLEDGE OF ALLEGIANCE OPENED THE MEETING INVOCATION- Pastor Garnett from Trinity Lutheran Church ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X ADDITIONS OR CORRECTIONS TO THE AGENDA Alderman Mayhew said he would like to strike the 1"item under Finance and amend the second item to just Discuss and consider the tax levy- not vote on it. Motion and second were made by Aldermen West/Putrich to approve the corrections. The motion passed by voice vote and was unanimous. CONSENT AGENDA BILL LIST Treasurer Wilkinson explained that several items on the bill list are highlighted in yellow. These items are for the bills that are being submitted as a result of the explosion. A new general ledger account has been established for these expenditures. These bills will be submitted to our insurance company for payment. APPROVAL OF THE COUNCIL MEETING MINUTES HELD NOVEMBER 15, 2016 MOTION and second were made by Aldermen West/Hale to approve the consent agenda as presented. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X The motion carried. FINANCE ALDERMAN RYAN MAYHEW, CHAIRMAN DISCUSS AND CONSIDER THE TAX LEVY FOR 2016/2017 Alderman Mayhew said the City is not in a situation that will require holding a truth in taxation hearing. The City is able to go up to a 5% increase in tax rates without holding a truth in taxation hearing. A proposed levy was distributed for review. The tax levy will need to be filed with the County by December 27, 2016. The proposal includes two options. Figures were presented for a 2.5% increase and a 5.0% increase. The City is still in the negative amount for the social security and workers compensation account. The City should have the social security fund up to$200,000.00 Dan Bender explained that the funds in the past have either been over levied (such as IMRF that has a substantial reserve balance) or the social security fund that has traditionally been (under levied) negative in the past. Dan further explained that he is trying to get the funds so they will be balanced and prevent both the over levied and under levied accounts. The proposal shows a decrease in the IMRF levy amount to help fund a couple of the other dedicated funds that has a deficit amount. Traditionally the social security fund has always been negative by approximately $200,000.00 because of the timeframe when payroll is started compared to when the levy is finished. Dan said he would also like to pull information from the previous years to be able to see a five year picture of all of the funds. By reviewing the previous years it will be easier to create a strategy to pull the funds out of the deficit amount. The City looked at establishing bank accounts for the dedicated funds. Alderman Mayhew explained that the Council needs to determine the best option to take care of the deficit funds. If the City does not do any increase, the funds will continue to have a deficit amount. The City made some improvements last year, but the City needs to continue to look for a way to get out of the deficit situation. The City will have an estimate for the police and fire pension funds prior to the next meeting. This information will be used to help estimate the figures to use in the levy process. Alderman Ellis explained that social security funds the garbage expense. Alderman Ellis said he believes the garbage route should be self-sufficient. The City should determine what the social security rates are for the garbage employees and consider a garbage increase so property taxes does not have to pay for this service. Instead of having property tax pay for the cost, it should become self sufficient. Alderman Mayhew explained that if the Council decides on a 5% tax increase for the levy it would generate approximately $131,000.00 in additional funds. The 5% increase on a home with a fair cash value of$109,000.00 would increase the taxes by $27.67 per year which would be approximately 1% of the overall amount. This increase could help get the funds out of the deficit amount. LEGAL AND ORDINANCE ALDERMAN CRAIG WEST, CHAIRMAN DISCUSS, CONSIDER AND VOTE ON AN ORDINANCE AUTHORIZING LEASE OF MUNICIPALLY OWNED REAL PROPERTY LOCATED AT LOT 4-24531 EAST LAKE BREEZE DRIVE, CANTON ILLINOIS AND LOT 16-NORTHSHORE ADDITION CANTON ILLINOIS(2ND READING) #4050 MOTION and second were made by Aldermen Nelson/Mayhew to approve the ordinance and place it on file. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X The motion carried. DISCUSS, CONSIDER AND VOTE ON A RESOLUTION APPROVING AN ELECTRICITY SUPPLY AGREEMENT WITH CONSTELLATION NEWENERGY, INC AND THE CITY OF CANTON #5076 Bids were received and reviewed for electrical supply. After reviewing the bids the proposed contract for one year with Constellation Newenergy was selected. Constellation Newenergy will save the City$4,900.00. MOTION and second were made by Aldermen West/Putrich to approve the resolution and place it on file. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X The motion carried. DISCUSS, CONSIDER AND VOTE ON AN ORDINANCE AUTHORIZING LEASE OF MUNICIPALLY OWNED REAL PROPERTY 25900 NORTH DALBAR ROAD CANTON ILLINOIS(1ST READING' DISCUSS, CONSIDER AND VOTE ON AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICE AGREEMENT FOR THE ESTABLISHMENT AND ANNUAL ADMINISTRATION OF CANTON TAX INCREMENT FINANCING (TIF) DISTRICT NO 3 BY AND BETWEEN JACOB& KLINE LTD AND THE ECONOMIC DEVELOPMENT GROUP LTD AND THE CITY OF CANTON, FULTON COUNTY, ILLINOIS(1ST READING)#4051 TIF Administrator Steve Kline was at the meeting and explained that he is asking the Council to consider the ordinances presented. There has been a substantial redevelopment project interest at the corner of Elm and 2nd Avenue at the former IH site. The first six months of the discussion was spent trying to get the costs to finish cleaning up the site for a new project to locate on the site. The type of project being discussed for the site is an assisted living facility. The project will be 4.5-5 million dollars. Due to the extensive costs that are related to the site there is approximately 2 million dollars in redevelopment costs that need to be incurred for it to be a sufficient redevelopment area for anything. This project is not going to be feasible unless we have more than 12 years with TIF to be able to work with them on a pay as you go basis. A portion of these costs would be reimbursed over a 20 + year time period. TIF 1 currently has 12 years remaining. There is not enough time in TIE 1 for this project to be able to pay for the costs. The option that has been determined is to establish a new TIF 3 area that would include the undeveloped portions of the former IH site. This would give a fresh 23 year TIF life. It would also include more property to the south of the railroad going west toward Main Street. If the City can redevelop the rest of the IH site, we may want to provide some assistance to the area immediately south for commercial development or residential development. In order to make TIF 3 occur it will require the City to take some property out of TIF 1 and include it in the new TIF 3. The property removed from TIF 1 will break the contiguity of TIF 1. The TIF district must have a contiguous boundary. The proposal is to amend TIF district 1 to add properties immediately North of Elm Street and half of that block going north. This would be taken out of TIF 2 and added to TIF 1 so contiguity is taking place with the Cook facilities and downtown. The properties that would be added to TIF 1 would be deleted from TIF 2. It is very easy to remove property. You could remove properties from a TIF by an ordinance, but adding property to TIF 1 or creating a new TIF is more detailed and is almost identical to the process used when a new TIF is created. The proposed timeline for the Canton TIF districts 1,2 and 3 are being presented. The Council could waive the rules for two readings of the proposed ordinance to help speed up the process and stay with the proposed timeline. Steve said he has worked 18 months with the company that is wanting to start the project. The company is willing to do this project, but they want to begin in March or April of 2017. The City needs to have this in place for the developer. The company could select one of the other locations for development if we do not move forward in a timely manner. MOTION and second were made by Aldermen Mayhew/Nelson to suspend the rules for a second reading. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich ABSTAIN Alderman Alderman Mayhew X The motion carried. MOTION and second were made by Aldermen West/Nelson to approve the ordinance and place it on file. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich Abstain Alderman Alderman Mayhew X The motion carried. DISCUSS, CONSIDER AND VOTE ON AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT FOR THE THIRD AMENDMENT TO THE CANTON 1-DOWNTOWN/STH AVENUE TIF DISTRICT BY AND BETWEN JACOB & KLINE LTD AND THE ECONOMIC DEVELOPMENT GROUP LTD AND THE CITY OF CANTON, FULTON COUNTY, ILLINOIS(1ST READING)#4052 MOTION and second were made by Aldermen Hale/Lovell to waive the first reading. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich ABSTAIN Alderman Alderman Mayhew X The motion carried. MOTION and second were made by Aldermen Ellis/Nelson to approve the ordinance and place it on file. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich Abstain Alderman Alderman Mayhew X The motion carried. DISCUSS, CONSIDER AND VOTE ON A RESOLUTION APPROVING A LEASE AGREEMENT WITH MISSISSIPPI VALLEY REGIONAL BLOOD CENTER FOR THE USE OF THE HISTORIC DEPOT IN 2017. #5077 The lease would begin in 2017. Mississippi Valley Regional Blood Center would lease the depot on two Wednesday's per month. MOTION and second were made by Aldermen West/Putrich to approve the resolution and place it on file. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X The motion carried. DISCUSS,CONSIDER AND VOTE ON AN ORDINANCE ABATING ALL OF THE BOND LEVY FOR THE 2016-2017 FISCAL YEAR ($3,325,000.00 PRINCIPAL AMOUNT ALTERNATE REVENUE BONDS SERIES 2015, 510,000,000 PRINCIPAL AMOUNT ALTRENATE REVENUE BONDS SERIES 2012 AND $2,810,000 PRINCIPAL AMOUNT ALTERNATE REVENUE BONDS SERIES 2013111" Reading) #4053 MOTION and second were made by Aldermen Hale/West to waive the first reading. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X The motion carried. MOTION and second were made by Aldermen West/Hale to approve the ordinance and place it on file. ROLL CALL Yes No Absent Alderman Justin X Nelson Alderman Ellis X Alderman Lovell X Alderwoman Hale X Alderman West X Alderman Putrich X Alderman Alderman Mayhew X The motion carried. NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERMAN TAD PUTRICH, CHAIRMAN COMMUNITY AND INDUSTRIAL DEVELOPMENT ALDERMAN JOHN LOVELL, CHAIRMAN UPDATE FROM SPOON RIVER PARTNERSHIP ECONOMIC DIRECTOR MISSY TOWERY Missy Towery explained that the Canton Disaster Recovery Fund was established. Due to the explosion there was a major impact to the downtown area that severely affected over 100 businesses. It is very important to help people get back on their feet. The businesses are still feeling the effects of the tragic event. There are still businesses that are not open and some are struggling to get by and some are waiting on insurance payments. In partnership with Community Foundation of Central Illinois, the Spoon River Partnership for Economic Development with support of the Canton Area Chamber of Commerce established a Canton disaster recovery fund. The Community Foundation for Central Illinois is located in Peoria IL. The foundation is acting as a clearing house for the funds. They will collect all of the funds as a in-kind service to the partnership. The foundation will be tracking all of the money and will be responsible for getting the tax deductible letters to all donors. The foundation worked closely with the City of Washington during their tornado. The partnership will be making the disbursements after the funds are received. A committee was formed that will be making the final decisions on the business applications. The purpose of the fund is to provide grant support to businesses and/or nonprofit organizations engaged in meeting their long term recovery and rebuilding needs. Canton Illinois.org explains what the fund is, how people can donate, and how businesses can apply. There is an online pdf form that businesses can use to apply. Donations can be made by mailing a check into the Community Foundation for Central Illinois and designate in the memo that the funds are for the Canton Disaster Recovery Fund. Checks can be mailed to the Community Foundation of Central Illinois 3625 North Sheridan Road, Peoria IL 61604. People can drop off donations at the following financial institutions. * MidAmerica National Bank * Ipava State Bank * CEFCU * Bank of Farmington There is also an online method for people to donate within the Community Foundation of Central Illinois. Go to: The Community Foundation Cl.org. Select Network for good and select donate now. Once you get to this point you would simply establish the total dollar amount and what fund you wish to donate to. There is a list of 7 categories on what donated funds can be used for. * Building material/Labor Cost associated with rebuilding * Replacement of inventory or equipment * Assistance with payroll or paying bills * Direct costs related to re-opening or operation of the business * Paying in insurance deductible * Business interruption reimbursement * Other approved uses made on a case by case basis The Canton Disaster Recovery Committee plans to distribute the first round of awards on December 15, 2016. Businesses need to submit their application by the end of the day on Wednesday, December 14, 2016 to be considered for first round grants. There currently is not a deadline on how long the fundraising effort will take effect. The completed application can be emailed to Missy Towery at MTowery@cantonillinois.org or a hard copy can be obtained and dropped off at the City Building. If anyone has any questions they can call the office at 309-647-2677. Missy said there are 4 businesses that are still not open. There are still a couple of service organizations that are not opened. Most of the businesses have been emailed a copy of the business application. Businesses reported that they had a nice small business Saturday. The promotion committee met and decided to continue with the Christmas Walk. The event turned out very nice and many volunteers came to Jones Park to help get ready for the event. The Christmas Walk provided great business traffic. PUBLIC WORKS,WATER AND SEWER ALDERMAN GERALD ELLIS, CHAIRMAN PUBLIC SAFETY AND TRAFFIC ALDERWOMAN ANGELA HALE, CHAIRMAN STREETS AND GARBAGE ALDERMAN JUSTIN NELSON, CHAIRMAN LAKES, BUILDINGS AND GROUNDS ALDERMAN MAYOR COMMUNICATION Mayor Fritz thanked the community, businesses and residence that helped during the recent natural gas explosion. The community pulled together to help make Canton a better place. It is the Holiday season and Mayor Fritz is asking everyone to support the local businesses. Many of these businesses need the support from the community. OLD BUSINESS NEW BUSINESS Alderman Justin Nelson reminded everyone to remove cars from the street when we have more than 3 inches of snow so the snow plows can clean the streets. The leaf program is still underway. People are encouraged to keep the leaves on the terrace and not the streets. ADJOURNMENT Motion and second were made by Aldermen Nelson/Mayhew to adjourn without the need of executive session. The motion carried by voice vote and was unanimous. Diana Pavley-Rock, City Clerk Jeffrey Fritz, Mayor PROPOSED TIMELINE -- CANTON TIF DISTRICTS 1, 2 and 3 AMENDMENT OF CANTON TIF DISTRICT 1 - DOWNTOWN/5TH AVE.; AMENDMENT OF CANTON TIF DISTRICT 2 - RT. 9/CHESTNUT ST.; AND ESTABLISHMENT OF CANTON TIF DISTRICT 3 CITY OF CANTON TIF DISTRICTS City Council Meetings: 1st and 3rd Tuesdays @ 6:30 pm • Combination Blighted and Conservation Area • More than 75 Inhabited Residential Units Updated 12/06/16 ©2016 The Economic Development Group,Ltd.and Jacob&Klein, Ltd. DATE: V STEP IN THE PROCEDURE: REGULAR COUNCIL MEETING: ORDINANCES to Establish 1 Tuesday, December 20, 2016 Interested Parties Registry; City designates date and time for Public Meeting. 2 Thursday, December 22, 2016 Publish Availability of Interested Parties Registries. 3 Wednesday, December 21, 2016 Mail Notices of Public Meeting to taxing districts, taxpayers residents of the proposed areas and IPR registrants. 4 Thursday, January 12, 2017 PUBLIC MEETING: 5:30 p.m. 5 Friday, January 06, 2017 File Draft TIF 1 Amendment and Draft TIF 3 Plan with City. 6 Tuesday,January 17,2017 REGULAR COUNCIL MEETING: ORDINANCES to Set Date, Place and Time for Public Hearings. 7 Thursday, January 26, 2017 Mail notices for Public Hearings and JRB Meetings (Certified to taxing districts) Mail notices for Public Hearings (Certified to taxpayers; regular mail 8 Friday, February 03, 2017 to residents, IPR registrants and residential addresses within 750 feet). 9 Tuesday, February 14,2017 JOINT REVIEW BOARD MEETINGS: 10:30 a.m. and 11:00 a.m. 10 Tuesday, February 21, 2017 First Publication of Notices of Public Hearings. 11 Tuesday, February 28, 2017 Second Publication of Notices of Public Hearings. 12 Tuesday, March 14,2017 PUBLIC HEARINGS: 5:30 p.m. and 6:00 p.m. REGULAR COUNCIL MEETING: FINAL. ORDINANCES TO 13 Tuesday,April 04, 2017 AMEND TIF DISTRICT 1,AMEND TIF DISTRICT 2,AND ESTABLISH TIF DISTRICT 3. NOTES: The Economic Development Group, Ltd. prepares and coordinates all notices and publications; moderates Public Meeting, moderates JRB meeting and moderates Public Hearing. Jacob & Klein, Ltd. provides all required Ordinances to the City. The Economic Development Group,Ltd. 12/6/2016