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HomeMy WebLinkAbout11-14-06 Clerical Committee Meeting Minutes CLERICAL COMMITTEE Tuesday November 14, 2006 – 6:30 p.m. th Historic Depot, 50 North 4 Avenue, Canton, Illinois Aldermen in attendance: Joe Berardi, Jim Hartford, Craig West, Larry Sarff, Kevin Meade, Les Carl, Eric Schenck, Sonja Lewis. Those Aldermen names underlined are the committee chairman. Others in attendance: Mayor Rodney W. Heinz, City Clerk Nancy Whites, City Attorney Chrissie Peterson, Police Chief Jeffrey Fritz, Fire Chief John Stanko, Public Works Director Clif O’Brien, Wastewater Treatment Plant Supt. Joe Carruthers, Zoning Officer Clark Wilson, Street Supt. George Spahn, System Maintenance Supt. Bill Terry, Keith Plave from Maurer Stutz Inc., SRPED Mark Rothert, Joe Ginger Video Services. In the audience was Daily Ledger John Froehling, Jenny Freeman from Journal Star, Jim Stratton from Graham Hospital, George Buzuard of Peck, Shaffer & Williams, LLP; Candidates for Ward 1 Aldermen Jason Strandberg and George Hall. Finance Alderman Les Carl, Chairman Bills. Alderman Berardi wanted to send the bills to the Building & Grounds Committee as he felt this is not a good balance the way the bills are presented for payment. Alderman Sarff said his company does their business the same as the City. And the department heads do use purchase logs and write all bills on that log. Most of the bills are contract, and we give the department heads authority of $1,000 they can sign a purchase order for. Motion and second by Aldermen Sarff/Meade, to send the bills to council for consideration and to have copies of purchase logs be given to chairman of their committee’s. The motion carried by voice vote, and was unanimous. Alderman Carl wants to discuss at the next Finance Committee meeting of increasing the amount given to Ray Jackson to remove trailers in the Industrial Park of $40,000. It cost Ray a lot more expense than originally thought, and Alderman Carl wants to give him and additional amount of $30,000 for that project. Treasurer’s Report. City Treasurer Kathy Luker was absent. Alderman Carl said to look over the report for next week’s council meeting. 1 Budget Report.Motion and second by Aldermen Meade/Sarff, to send the report to council for their consideration. The motion carried by voice vote, and was unanimous. Tax-Exempt Financing for Graham Hospital – Jim Stratton – Graham Hospital & George Buzurd from Peck, Shaffer & Williams, LLP. Jim Stratton from Graham Hospital mentioned he is the Vice President of Financing. He thanked the Finance Committee for allowing them to come here this evening with this presentation. Jim wants to talk about the projects they are financing right now of 16 million dollars for the bond issue. The projects were financing are 6 ½ million dollars for the new emergency room, our first south wing was renovated for acute cure patients. Did infrastructure on that building also of new pipes, plumbing, and gas pipes. We’re creating a hielopad on top of the emergency room, and new administrative space below the emergency room. Appreciate giving us this opportunity from the City of Canton allowing the conduit of this tax exempt debt, at a low cost of issuing, especially what we would pay if we had to go to the Illinois Financing Authority. George Buzurd of Peck, Shaffer & Williams, LLP, spoke next. George said he was from the Chicago office. All of the lawyers in the firm do public financing work, and serve as bond counsel on these types of tax exemptions, both GO bonds and Conduit financing. Our goal is to facilitate structuring the transaction and giving an opinion at the end of the transactions that the bonds are tax exempt and are of value. Conduit type of financing like this, we are paid out of the proceeds from Graham Hospital. We don’t represent them, they have their own council looking at the documents and concerns of protecting them and their convetness. A municipality in the state of Illinois are given power by the Illinois State Statute to issue Industrial Development Bonds or private activity bonds in order to facilitate business, or new location of businesses, or provide money to businesses to increase employees. The bonds that would be issued are revenue bonds that are conduit bonds. While you are serving as the issuer to qualify under the Illinois Federal tax law, that says the interest they would pay on these would be tax exempt. The city does not constitute debt obligation, this is not full faith and credit pledge of the city With a conduit obligation you would enter into a loan agreement with Graham Hospital where they agree to pay. A Letter of Credit from a bank was received, this allows the payment money going through additional credit to the bond holders. While you issue the bonds there is no obligation, if Graham Hospital defaults on the bonds, its their responsibility not the city’s. There is 2 also provisions in the document to indemnify you for expenses and cost if you have any. Procedurally, what is involved would be a preliminary resolution and we would draft this resolution. When the resolution is adopted that is an indication of intent to issue these bonds that would allow them to put the transaction together. So once they are drafted, they would come back to the city council the second time, with all documentation in place, and would be reviewed by the city attorney. There will be various lawyers involved and the city would approve the documents. Also there has to be a public hearing held basically to describe what the project is, and the financing of these types of bonds, and it gives the public the opportunity to be heard. The public hearing has to be advertised two weeks before the hearing. If you do approve it, Lancaster/Poller will be the underwriter, and would market the bonds, once they had a purchaser of the bonds. Once the documents are issued, the Graham Hospital would enter into an loan agreement, and they would be agreeing they would make payments on the bonds. City Attorney Chrissie Peterson said she had the opportunity to speak with one of the bonding attorneys before hand and also the Graham Hospital officials. Chrissie said she had two questions to ask them. 1. Would this affect the city’s security rating? I have been assured the answer to that is “no”. 2. We just had a substantial bond issuant of infrastructure improvements, so this was a concern for our statutory debt limit. It does not account for the city’s debt, and with the letter of credit from the bank, with the indemnify clause, and with revenues pledged by the hospital, it gives the city good assurances in the end, as they would have no financial responsibility. George commented that beings the conduit your allowing them to borrow at low interest rate. There is no cost to the city and you would get expenses paid, protection of indemnification and you would benefit by helping them spend there money to improve the hospital. They would pay 2% more on interest borrowing funds over 25 year period. Alderman Sarff asked Jim Stratton how many employees the hospital has? Jim answered 500 at the hospital and 100 at Coleman Clinic. 3 Motion and second by Aldermen Sarff/West, send on to council of our participation in this proposal. Discussion. George said your expressing today the intent to do this. Jim Stratton said he would like to get this closed out by the end of this year. The motion carried by voice vote, and was unanimous. Pay Request #4 from Leander Construction. Keith Plavec of Maurer Stutz Inc. explained he handed out a new pay request tonight. Reason for this the subcontractor called the lead contractor Leander Construction and asked, “why would we still have our retention held on the portable pump, if it is already in the city’s ownership? Keith said that was a good question. So that is the difference in the new hand out I gave you tonight, and the amount raised to $40,416.90 Keith said he felt this was the right thing to do. Keith encouraged the council members to come and look at the site, by Motion contacting Joe Carruthers or Keith. and second by Aldermen West/Meade, to allow the pay request #4 from Leander Construction in the amount of $40,416.60, and refer to council for consideration. The motion carried by voice vote, and was unanimous. Renewal of Service Agreement MMI – Water Department. Motion and second by Aldermen Sarff/West, to accept America Meter Co (AMCO) in the amount of $1,795.00 for Utility Service Agreement for the meter reading hardware Mini Mobile, and referred to council for consideration. The motion carried by voice vote, and was unanimous. The Finance Committee adjourned at 7:07 p.m. Legal & Ordinance Alderman Craig West, Chairman Revised Liquor Ordinance. Alderman Craig West said the Liquor Commission had a meeting with the local liquor license holders last week. Alderman West asked for Alderman Schenck who was there also to give an overview of what transpired. Alderman Schenck mentioned changes were 1.)to be more consisted with state law on minors. New language added of 2.)warning signs be posted for minors of drinking by city ordinance. Made changes to 3.)Special Events taking place outdoors, being restricted to Saturday evening. On the Bartender license there was a lot of discussion of the negative affect it has on the bar owner. 4.)BASSET Training was added. 5.) Hearing appeal process was added with wording according to state law. 4 6.)New license of Bottle Club. City Attorney Chrissie Peterson mentioned that her and Police Chief Jeffrey Fritz agreed to another license and could be Wine tasting. Alderman Meade ask if other communities do wine tasting? Chrissie said Canton has the least amount of classification and could allow that. Alderman Schenck said that the Liquor Commission has the authority to set penalty. Alderman Berardi asked if you could put this information into a resolution of the Liquor Commission does not have this power? Alderman Sarff said come April you could have 4 different people sitting here, and we should go by the state statute. Alderman Schenck said we should get some debate on the pros and cons. Alderman Meade said this could be sent to the next committee meeting after first reading at council next week. Motion and second by Aldermen Meade/Carl, send to council for their consideration. Discussion. Alderman Schenck said we could hold a public hearing. City Attorney Chrissie Peterson suggested posting on the web site. The motion carried by voice vote, and was unanimous. Pre-Annexation Agreement with Charles Devlin & Tiffany Branchfield, 23663 Co. Hwy 22. Zoning Officer Clark Wilson commented that the area in on West Hickory and will be hooking on to Spoon River College water line. Legal & Ordinance Committee adjourned at 7:33 p.m. Community & Industrial Development Alderman Kevin Meade, Chairman Gateway Signs/Update SRPED. Mark Rothert combined his report with the Gateway Signs. He gave a slide presentation of the Budget for SRPED. Paid by $ 85,000 City $ 40,000 Hotel/Motel tax funds $ 40,000 Chamber of Commerce $ 40,000 SRPED Membership Dues $ 67,947 CADA Contributions $ 99,000 Grant funds 5 $371,947 Gateway signs (4) on going maintenance would be $19,440. Mark Rothert presented a logo – City Living Among Nature’s Beauty Canton, Illinois Alderman Schenck said we should use the logo on everything. Alderman Berardi wants Mark Rothert to be an at-large member of the Port Authority. Alderman Meade said the appointment comes from the county board, and he will be meeting with them so we can bring this up. Mark Rothert mentioned that the Hotel/Motel fund has a balance of $70,000. We need to get community backing and do small marketing of what Canton stands for. Alderman Meade suggested Mark give a press release and see how the logo is accepted. And show this again next week as it will be broadcasted on City’s access TV Channel 22. The Community & Industrial Development committee adjourned at 8:15 p.m. Negotiations, Grievance & Personnel Alderman Larry Sarff, Chairman There was nothing listed on the agenda and discussion was not held. The Negotiations, Grievance & Personnel Committee adjourned at 8:16 p.m. Recording Secretary, Nancy Whites, City Clerk 6