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HomeMy WebLinkAbout3-24-06 Mechanical Committee Meeting Minutes MECHANICAL COMMITTEE MEETING Tuesday March 28, 2006 – 6:30 p.m. th 50 North 4 Avenue, City of Canton Aldermen in attendance: Aldermen Jim Hartford, Joe Berardi, Larry Sarff, Craig West, Les Carl, Kevin Meade, Rick Reed, Eric Schenck. Absent: None. Others in attendance: Mayor Rodney W. Heinze, City Clerk Nancy Whites, City Treasurer Kathy Luker, City Attorney Jim Elson, Public Works Director Clif O’Brien, Police Chief Donald Edwards, Fire Chief John Stanko, Economic Development Director Mark Rothert, Wastewater Treatment Supt. Joe Carruthers, Water Treatment Supt Greg Pollitt, Zoning Officer Clark Wilson, Street Supt. George Spahn, Video Services by Joe Ginger. In the audience was news media Daily Ledger Linda Woods, and Journal Star Brenda Bowen, also in audience was Rick Semonis, Assistant Fire Chief Dan Oaks, Firefighter Clark Evans, and Greg Arnett for Capitol Resources. Finance Alderman Les Carl, Chairman Bills.Motion and second by Aldermen Sarff/West, to send the bills on to council for their consideration. Discussion. Mark Rothert the Economic Development Director spoke about the history of the Brownfield Grant that Vandewalle was under for payment. The grant has since ran out. Any billing after the grant funding ended would be no more than $5,000 monthly. Mark added that is why it is a line item in the bills. Alderman Berardi ask who authorized Vandewalle to be involved in the Wal-Mart Development Agreement? Alderman West added that the bills from Joy Stigelish of Vandewalle vary from $104 to $150 per hour. Mark said $150 is her standard rate and might be a typo. The rate of $104 was charged under the Illinois Brownfield Grant. Mark said he would clarify the bill rate with Joy Stigelish. City Attorney Jim Elson said you can not have any administrative services in the agreement. The motion carried by voice vote, and was unanimous. Treasurer’s Report. City Treasurer Kathy Luker stated, that eleven months into the Budget for the General Fund we have reached 91.7% for the year. Also the Water & Sewer Fund is down for the year of expenses. The Health Care was a negative last month of some $36,000 and this month shows a negative of $64,190. Last month there was 5 Motion payments made to claims as to why the amount is so large. and second by Aldermen Sarff/Meade, to send the treasurer’s report to council for their consideration. Medical Health Insurance Plan – Rick Semonis. Rick said he met with the Insurance th Committee for the City at the City Building on April 7. The outcome of that meeting is as follows: Discussion of Medical Trend Rates and Trend Drivers. A comparison of Pharmacy expense 1 Clerical Committee 4-11-06 A comparison of Medical benefits to other employers A comparison of the employee portion of the premium to other employers Most charge a portion of the actual premium instead of a flat rate The current flat rate is less than most other plans Discussion of possible plan changes in benefit structures (No changes have been made since 2001) Possible increase in Out of Pocket amounts Possible increase in Generic Rx (Drug) co-pay Discussion regarding the Fixed costs vs. Claim costs in your medical plan Fixed is about 20% and Claims are the remaining 80% Discussion of Wellness/Preventive initiatives that could be taken Risk Assessment Profiles and On Site Screenings Discussion regarding Self Funded vs. Insured medical plans for the City 140 employees is still large enough to self fund Methodology is the same in setting rates, only the funding varies Discussion regarding existing contracts in place HCH automatically renews and has a 120 day notice to terminate Methodist is in the last year of a 3 year contract Our Recommendations are: To move the Request for Proposal process out 180 days to allow adequate time to analyze and compile all the data necessary to accurately quote your account. This will also address any current contract termination issues. To hold discussions with the appropriate parties regarding benefit changes if any. To hold discussions with the appropriate parties regarding premium changes. For the City to implement a Wellness/Preventive Program for all employees. The proposed timeline would be: Post the RFP for bids in December with Quotes due the end of January SBIS Semonis to review and recommend the plan in February City Council approval in March Implementation in April st May 1 effective date Rick Semonis said he received the 2006 renewal from HCH on Friday last week and has not reviewed it yet. Motion and second by Aldermen Sarff/Meade, to continue along with the program the Insurance Committee has set up and the Insurance Committee to continue to review the City’s health claims. The motion carried by voice vote, and was unanimous. 2 Clerical Committee 4-11-06 Renewal of Service & License Agreement.Motion and second by Aldermen Sarff/West, to renew the Utility Service Agreements on the LOCIS system and related billing software from the Water and Sewer funds of $2,022 and the cost to the General Fund $1,650.00, and forwarded to council for their consideration. The motion carried by voice vote, and was unanimous. Not listed on the agenda was a need for repair of a generator at the Water Treatment Motion Plant. and second by Aldermen Meade/West, to approve of Altorfer Power Systems to remove the rear bearing housing from the 3412 Generator and to have the housing repaired and sleeved for bearing replacement in the estimated cost $2,745.00, and send to council for their consideration. The motion carried by voice vote, and was unanimous. Depreciation Account. City Treasurer Kathy Luker stated this would be held over until the May meeting of the Clerical Finance Committee. Water line to Humane Society for Animal Shelter. Mayor Heinze said he received a call from the County Board there was some confusion as to the amount the city was asking for to put in the water line to the Humane Society’s Animal Shelter. Mayor Heinze mentioned that the City can not give away water at no cost. Alderman Carl said the council had agreed on the county paying ½ of a 4 inch line, and ½ of installation of pipe. Alderman Carl asked if we charge double rates since they are outside the city? City Attorney Jim Elson mentioned because the Humane Society is a non governmental entity, the double rates apply. Alderman Berardi said if that’s the case what’s the situation of rate charge for the Ethanol Plant? City Attorney Jim Elson said he could not justify it. Motion and second by Aldermen Sarff/West, to charge the Humane Society double rates for water service to the animal shelter. Discussion. Alderman Berardi said he did not agree, if you can give special rate to Ethanol Plant you can give special rate to the animal shelter. Alderman Carl wanted to no if the Ethanol Plant contract with the city has a time frame? Alderman Berardi said it is due next year. Alderman Carl said it could be corrected at that time. City Attorney Jim Elson said Alderman Carl was correct. The motion carried by voice vote, and was unanimous. Addition of Greenwood Cemetery Employee to City Health Insurance. Mayor Heinze mentioned that one employee was not given the benefit to be on the City’s insurance. He said he had talked with the city’s auditor and the city attorney and we are obligated to give him the insurance. One employee has declined the insurance and the other was not offered. Alderman Carl said if you bring the employee into the same plan, will he be paying the same portion as city employees for health insurance? Mayor Heinze commented, yes he would! Alderman Sarff asked if Greenwood is covered by Motion our paid holidays and the same benefits our city employees have? by Aldermen Sarff/West, to converse with Bruce Beal 3 Clerical Committee 4-11-06 about it before making a decision. Discussion. Alderman Berardi ask why Bruce Beal when the city has it’s own attorney on staff? Alderman Sarff answered, that Bruce handles our labor force, and is the only lawyer on staff right now that does this. The motion carried by voice vote, and was unanimous. Budget Discussion – Kathy Luker, Budget Officer. Alderman Carl said he wants to apologize to City Treasurer Kathy Luker as he questioned her ability last week and feels that she is highly qualified after working with her. Then he asked her for her qualifications to prepare a budget? City Treasurer Kathy Luker said if you go by education she has a Bachelors Degree in Business Management from WIU, and graduated summa cum laude with a 3.9 out of a 4.0. Have a Masters in Business Administration with a concentration in finance. Minor in undergraduate in accounting. But more that just the education, she started in 1985 which is over 20 years with Budgets and Financial Statements. Worked with corporations, small governments preparing budgets and financial statements. Have looked at 100’s of budgets and analysis those. Alderman Sarff said he appreciated Kathy’s qualifications and what she and the department heads have done with the budgets this year. Once again, I felt the questions last week were good ones. Our budgeting is sound business practice. City Treasurer Kathy Luker then showed the Annual Budget for 2006 – 2007. General Fund Administrative Budget has total Revenues of $6,607,650.00 and $756 positive. Water/Sewer Fund Revenue is $5,595,225, and $110,972 positive. The Water Bond Expenses and Sewer Bond Expenses are not included as of 3/7/06. Lake Development Revenue is $50,000, and $53,101 minus. 2006-2007 Annual Budget Proposed 4/11/06 General Fund Administrative Budget Expenses $6,607,650.00, with a minus of $227,284. Explanations of Changes to General Fund Legal Services and Administrative Salaries $72,000 Reclassified $0 Health Insurance Increase due to Attorney Salaried $12,000 Legal Services Increase due to Vandewalle & Bell, Boyd, & Lloyd $40,000 Other Contractual Increase due to Vandewalle & Bell, Boyd, & Lloyd $50,000 Spoon River Economic Development Increase $15,000 HHS Loan Payoff $110,000 Total change to Administrative Budget $227,000 ESDA Budget Change-Increase in Capital Outlay $ 1,040 4 Clerical Committee 4-11-06 TOTAL DOLLAR CHANGES TO BUDGET FROM 3/8/06 $228,040 Explanation of Changes to Water/Sewer Fund NET CHANGES System Main-Capital Outlay Increase-Water Line-Humane Society $25,000 Water Plant Capital Outlay Increase-Bond Improvements $5,325.000 Sewer Plant-Capital Outlay Increase-Bond Improvements $5,700,000 TOTAL DOLLAR CHANGES TO BUDGET FROM 3/8/06 $11,050,000 Alderman Schenck asked if the $15,000 was budgeted for SRPED? City Treasurer Kathy Luker said once it was $100,000 than $70,000 with $15,000 from Hotel/Motel Tax, and $15,00 for in-kind services. Not sure where it is now. Alderman Carl said it was $100,000 in some manner, with $85,000 in cash and $15,000 in other services would be the amount needed. Alderman Schenck said our agreement was for $70,000 paid in 3 sums, outline some other in-kind services. The third item was for SRPED to serve as clearing house for the Hotel/Motel Tax. Alderman Schenck said he has an amendment that would basically add $15,000 to the partnership for a project currently named partnership and not in the agreement. So I’m wondering how this reconciles with the agreement we approved? Alderman Carl said the agreement approved $100,000 in some form, we did not specify the form. We felt the $85,000 would be sufficient enough to satisfy that obligation. Alderman Schenck said my question is we have an agreement that says $70,000 cash to be paid to them in 3 payments. I’m not against the $15,000 because I basically proposed $15,000 to that budget line item. In this proposal how would that $15,000 be used? Alderman Carl said we would pay $15,000 in cash or check to the partnership. Alderman Schenck said this is above and beyond, would this not then modify the agreement? Alderman Carl said probably would, but this is the Budget, and just because it’s in the budget, we don’t have to spend it. If we do modify the agreement it is there to do. Alderman Schenck said where he is being confused is at the intent of adding the $15,000 through this process. Alderman Carl said we originally thought the Hotel/Motel Tax would pay the $15,000, its not legally possible to do that, so we added that figure to the Budget so if we had to come up with the money it would be there to do that. Alderman Schenck, so your intent is to modify the agreement to $85,000? Alderman Carl said yes! Mark Rothert said, he modified the agreement from last week’s meeting. Mark asked if he should amend the agreement again to show the $85,000? Alderman Carl said that council would have to act on that first. Alderman Carl asked for Alderman Schenck to do his proposed amendments one at a time. 5 Clerical Committee 4-11-06 Alderman Schenck said his first motion is forwarded to the committee and to amend the Budget to establish Administrator/Budget Director Position and part time secretary. I’m offering that motion with some suggestions on changes to the Budget that would offset the cost of doing that. I’m less concerned about the off setting provisions as I am of having the dialogue about the need of the position and how we pay for it is of less concern to me. Alderman Carl said some of the consensus was could not replace the deputy clerk position as somebody needs to be in that position. And a City Administrator would be desirable in the future. Alderman Schenck, we have in the Budget a Human Resource person, and budgeted as a part time position with a salary of $30,000 with benefits of $12,000. If we simply postpone hiring the City Administrator for 6 to 7 months it allows us to recruit someone like that. There might be sufficient money in the Budget to move forward to this position, like this and only in that position for 4 months into the fiscal year. Alderman Carl asked if you are proposing to eliminate the Human Resource person of $30,000 and $12,000 benefits? Alderman Schenck said he is suggesting fiscal impact be reduced and strike out Human Resource and have City Administrator listed, and there could be funds set aside for hiring of that type of position in November or December. Alderman Carl said to leave as Human Resource or City Administrator does not make a lot of difference. Refer the hiring of Budget Administrator to the Personnel committee at a later time. City Treasurer Kathy Luker said when this was set the Human Resource person had $12,000 benefits, this person is full time, not part time. Alderman Sarff said we just hired a lawyer whose back ground is in labor, lets wait this year to see what that position does. Don’t feel it is needed in the Budget this year at this time. Alderman Carl said since Alderman Schenck cannot make a motion is there a motion to Motion leave in the Budget for a City Administrator? and second by Alderman Sarff, to take from the Budget the Human Resource position of $30,000 and benefits of $12,000. Motion died for lack of second. Alderman Carl said the Budget remains the same. Second Amendment offered by Alderman Schenck. The proposal offered is $15,000 with off setting of cost in reducing the $15,000 for the mayor’s car, and using the $15,000 to fund a special project of SRPED. Alderman Sarff said he is not opposed to the concept, wants to see what takes place next year. Motion dies for lack of second. Alderman Schenck said he would like to make a point of order as he is not sure, the motion submitted to the committee should be no one seconded the motion. Under the Roberts Rules of Order I have the ability as a member of this assembly to forward a motion to the committee. Alderman Carl asked if there was a second to the motion. No second was made. Motion dies for lack of second. Alderman Sarff said, as part of that, I do agree with eliminating the $15,000. Alderman Carl said you can surely make a motion to eliminate that from the Budget. 6 Clerical Committee 4-11-06 Alderman Sarff, the mayor could have a vehicle that has been retired from service for his use or can be reimbursed for mileage. Motion and second by Aldermen Sarff/West, remove the line item in the Budget for a automobile for the mayor of $15,000. Discussion. Alderman Carl, not a lot of money in Administrative Budget for contingency. Alderman Sarff and Alderman West amended the motion and second that $15,000 be redirected to contingency fund. The motion carried by voice vote, and was unanimous. EXECUTIVE SESSION – NEGOTIATIONS, GRIEVANCE & PERSONNEL – TO DISCUSS PERSONNEL. Motion and second by Aldermen Sarff/West, to go into executive session for purpose of discussing Personnel. Roll call. AYES – Aldermen Carl, Meade, West, Sarff. NAYS – None. 4 AYES, 0 NAYS, 0 ABSENT. Motion carried. The Negotiations, Grievance & Personnel Committee went into executive session at 7:45 p.m. The minutes of the executive session are on file in the office of the city clerk for review. The Clerical Committee reconvened into open session at 8:52 p.m. Alderman Carl proposed the following amendment – to eliminate Assistant Supt from Water Plant and benefits, to eliminate Sewer Plant Assistant Supt. and benefits, with a total of $112,000. Put that amount in the Water/Sewer contingency fund. Discussion. Alderman Sarff said he would rather have as contingency. City Treasurer Kathy Luker commented that the purpose of a contingency fund is for anything unforeseen. The totals should be left in for salaries. Alderman Schenck said why make any changes at all? Why have a Budget, we have the same argument to leave in the salary. The Budget reflects in what we are going to do. If the positions are left in we will be hiring two assistants. Mayor Heinze said he feels the need for these two positions. We could look seriously in January he told the supts. We have to put some confidence in our Public Works Department and department heads. Alderman Sarff said four years ago council eliminated the positions of assistants do to budget restraints. And department heads were paid accordingly for that. Then are we going to be looking at adjusting those rates in line for the department heads? Motion and second by Aldermen Schenck/Sarff, to establish 5% Contingency Fund for Water and Sewer Plant Operation and the amendments took out those 2 assistant positions and benefits, and those funds went to the contingency fund. The motion carried by voice vote, and was unanimous. Mayor Heinze said, tell me where the $15,000 is? Alderman Carl said it’s in the Budget. Mayor Heinze said where are you going with the amendments to the 7 Clerical Committee 4-11-06 SRPED agreement? Alderman Carl said the present agreement would have to be amended to add in $85,000. This could be done at the next council meeting. Motion and second by Aldermen Meade/Sarff, to approve the changes presented by City Treasurer Kathy Luker. The motion carried by voice vote, and was unanimous. Kathy asked what do you want to put in the contingency fund? Alderman Carl said $120,000 for Water & Sewer and $15,000 to General Administrative Fund. Kathy said the maximum amount is 10%, and she wants two contingency funds, one for Water & Sewer, and one for Water/Sewer Bond. Alderman Carl said he was not in favor of raising the contingency fund to the legal limits. Alderman Berardi said the normal rule is 5% to 6% for a contingency fund. Motion and second by Aldermen Meade/Sarff, 5% to the contingency fund for the General Fund and Water & Sewer Bond. The motion carried by voice vote, and was unanimous. The Finance Committee adjourned at 8:55 p.m. Legal & Ordinance Alderman Kevin Meade, Chairman Wal-Mart Development Agreement. Alderman Meade said the Wal-Mart Agreement was handed out tonight, we need to review the document. Mayor Heinze said they had their meeting with Planning & Zoning, and before that we discussed some improvements to be made. Wal-Mart sent us the agreement, Mark Rothert took out what we don’t want and marked in red. The underlines are what the city added in. Wal-Mart does development agreements in every community with the person they are dealing with. This is where the document is today. We ask if they would demise their building if it sets for one year and not sold or occupied. They did not want to do that. This building we don’t want it standing there for ever in case they move out. The most important issue, we wanted them to agree too was our engagement of qualified bidders that we use for our government. They backed off a little and did offer to negotiate. Brandy Lewis is the main contact and she will try again to help with prevailing wage. Mayor Heinze said he stressed this is a blue collar community. In the end said they would build their building the way they wanted to. We did try to get up to $20,000 in professional fees recovered, and she said yes, they would repay us the out of pocket expenses. Some minor issues in the agreement we have not addressed. We have a water main issue. Earlier we ask for water line looped to give better distribution, especially on a dead end main. We wanted to loop out to N. Main rather than on their property. They don’t want to do it, they had plans in that area to run their sewer. Clif O’Brien told them the sewer is already there. So take that money for looping. It is still on as an issue. The Clerical Committee 4-11-06 8 project out there is still considered high risk. They have not put on their store list they’re going to build. Mayor Heinze said he would like to have the development agreement completed by next Tuesday. Alderman Sarff ask if the city attorney had seen this document? It looks like a fairly sizable document. City Attorney Jim Elson said he had not reviewed the document as Vandewalle was directed by council to work with Wal-Mart. Alderman Sarff asked which one of our legal advisors will look at this document? Alderman Berardi said he does not remember any time voting on Vandewalle taking part in the agreement. City Attorney Jim Elson said he did not mind doing review work. Alderman Berardi asked who the negotiating team was? Mayor Heinze said he was, Mark Rothert, and Public Works Director Clif O’Brien. Alderman Berardi said to leave labor out of negotiating is not heard of. Alderman Meade said he sees roadway improvements of streets on page 4. This is a 20 page agreement handed to us 3 hours ago. We need to review this and so does the city attorney. My recommendation is to send to the city attorney the development agreement for back ground work and put on the agenda for next week. Alderman Schenck ask once we have the agreement will it be filed with the deed? City Attorney Jim Elson said, no! You can have conditions on this, but you must remember we are not a party to that transaction. The seller is the Barnard family and the purchaser is the Wal-Mart Corporation. Only way could record the deed, which I’m sure they would not stand for that, is you could record a memorandum of some of the conditions that are involved here. The better way of doing it, have the agreement itself recorded, because then the city can take action if any of these conditions are violated. Alderman Meade said we have the bases here and we have legal counsel, and we have us to look at and give input. What I don’t want is to negotiate this contract on the council floor. This is not the place. We negotiate this contract through our representatives, and send on to council. Alderman Berardi told Mayor Heinze he would like to see Building & Trades representation be included in the negotiations. Motion and second by Aldermen Sarff/West, the mayor and what other participates he deems necessary to negotiate with Wal-Mart and turn over negotiation results to the city attorney for his review and recommendation. The motion carried by voice vote, and was unanimous. Repeal of City’s Mining Ordinance. Alderman Meade said we already have a draft of to repeal the ordinance. City Attorney Jim Elson said the ordinance that was adopted on June 25, 1970 as all regulation of strip mining activities has been preempted by the State of Illinois by the Surface Coal Mining Land Conservation and Reclamation Act which became effective on June 1, 1980, and which in turn, adopts Federal law on the subject. Jim Elson said not much point of carrying this ordinance any further. Recommend to send on to council next week. Motion and second by Aldermen Carl/Sarff, to send the ordinance on to council. The motion carried by voice vote, and was unanimous. Clerical Committee 4-11-06 9 City Attorney Jim Elson mentioned the following… The Depot Building was unable to ascertain information. Have to reschedule further as the city paid $20,000 for the ground. Strike out what he had reported earlier on this issue. The former Dahm Hall building at the corner of lst Avenue and Elm Street, years ago the city entered into an agreement reached by where the City forgave some taxes and we were ask to give some incentives to the folks who own that building. They had incorporated under the name of Hidden Treasurer’s Inc. The building came down and there were fees for demolishing. Hidden Treasurer’s then dissolved. The folks would not be able to take over this obligation. Been negotiating with their attorney, and if we give them a release they would in turn without further legal action give us the deed to the property. Motion and second by Aldermen Carl/West, the city attorney to negotiate in receiving the deed to the property of the former Dahm Hall. The motion carried by voice vote, and was unanimous. Report item, we now have the deed to 352 W. Spruce. We are now in the position of surplus real estate. Would like to have the authority to send out a notice to 731 Keeling Court of a building Motion that is in despair. and second by Aldermen Sarff/West, city attorney institute that action. The motion carried by voice vote, and was unanimous. City Attorney Jim Elson said he is on behalf of the city concerning Capitol Resources mining project process east of Canton drafting the letter today with the attorney of Capitol Resources and worked out a letter here this evening. We could refer this letter on to council. Alderman Meade said he does not see a need to move on this quickly. We have an area close to our watershed wanting to mine and would like to talk with the Department of Natural Resources to give consent. Motion and second by Aldermen Carl/West/ to send letter to next committee meeting of Legal & Ordinance. The motion carried by voice vote, and was unanimous. The Legal & Ordinance committee adjourned at 9:23 p.m. Community & Industrial Development Alderman Craig West, Chairman Update of Activities. Mark Rothert said has been working with EOI to create an addendum for the N.E. corner of IH for successfully extending to 4 ½ acres for redevelopment. Petersen site is waiting on approval for Assisted Living Center. EOI did some drilling on the site in March and sent the results to IEPA. Clerical Committee 4-11-06 10 The Chamber of Commerce appointed to the SPRED Cindy Lock, Dan Silverthorn, and Carol Davis. Property Sale in Industrial Park. Mark Rothert said the list price of lots in the Industrial Park are $5,000 a lot. The incentive is for full time jobs and received $100 off the price of acre ground. The lot number wanting to be purchased is #19. Alderman Meade asked if this is 3.3 acres the person is wanting to purchase? Mark said yes, and for $15,000 and would use Enterprise Drive for access. Motion and second by Aldermen Sarff/Meade, to see what conditions are and bring back to council for road usage of Enterprise Drive. The motion carried by voice vote, and was unanimous. Alderman Schenck asked who will be responsible to update these things in the Enterprise Park. Alderman Sarff said in the past it was done by someone in the City and checked out to see if met criteria of who should be there. Mark said he would call Macomb and see how their Industrial Park is working out. Letter from Chamber of Commerce of funding. Mark Rothert said they are working on an agreement, and the Board will meet later this month. W. Maple TIF attorneys – Attorney Mike Evans representative. Alderman Berardi mentioned that Mike Evans fired the attorney Jack Templize, and ask Mark where are we on this? Mark Rothert said the City Council retained Miller, Hall & Trigg to represent them. Mr. Evans hired Templize and then he was fired. Mr. Evans then asked Miller, Hall & Trigg to represent them. Alderman Sarff asked how they could represent both of us? Mark said that’s a good question. Alderman Sarff said we should write them to see who is working for who? Negotiations, Grievance & Personnel Alderman Larry Sarff, Chairman There were no items listed and discussion was not held. The Negotiations, Grievance & Personnel Committee adjourned at 9:44 p.m. The Clerical Committee adjourned at 9:45 p.m. Recording Secretary, Nancy Whites, City Clerk 11 12