HomeMy WebLinkAbout04-18-07 City Council Meeting Minutes
CANTON CITY COUNCIL
Wednesday, April 18, 2007
th
Historic Depot 50 North 4 Avenue, Canton, Il.
A regular meeting of the Canton City Council was held on April 18, 2007 in
th
the Council Chambers at 50 North 4 Avenue, Canton, Illinois. (Date
changed due to Aldermen Election.)
PLEDGE OF ALLEGIANCE OPENED THE MEETING, FOLLOWED BY
THE INVOCATION GIVEN BY TREASURER KATHY LUKER.
Mayor Heinze asked for roll call at 6:30 pm. Present—Alderman Joe
Berardi, Alderman Jim Hartford, Alderman Craig West, Alderman Larry
Sarff, Alderman Kevin Meade, Alderman Les Carl, Alderman Eric Schenck,
Alderman Sonya Lewis. Absent—None
Others in attendance: Mayor Rodney W. Heinze, Deputy Clerk Diana
Tucker, City Treasurer Kathy Luker, Interim City Attorney John McCarthy,
Police Chief Jeffrey Fritz, Fire Chief John Stanko, Public Works Director
Clif O’Brien, Wastewater Treatment Plant Supt. Joe Carruthers, Water
Treatment Plant Supt. Greg Pollitt, Zoning Officer Clark Wilson.
In the audience was Jason Standberg, Kurt Skender, Mark Bixler with
WBYS, John Froehling with Canton Daily Ledger, Jenny Freeman with
Peoria Journal Star, Mark Rothert, Gary and Heidi Leese, Jeremy Grove,
Scott Childs with Dacott and Steven Guy with Dacott, Todd Vanadilok with
Teska, Mike Hoffman with Teska, Terry Jenkins and Brudget Lane with
Business District Associates. Video Services Provided by Joe Ginger.
MINUTES OF THE April 3, 2007 COUNCIL MEETING.
City
Treasurer Kathy Luker pointed out that an error was sighted in the first page
of the minutes. It was previously reported that 115 employees are in the
healthcare plan. The correct number of employees in the healthcare plan is
The motion carried
151. by voice vote, and was unanimous.
TH
MINUTES OF APRIL 10, 2007 CLERICAL COMMITTEE
MEETING.
Alderman Sarff second by Alderman Carl, the minutes of the
April 10, 2007 be accepted and place on file. The motion carried by voice
vote, and was unanimous.
1
Council meeting 4-18, 2007
COMPREHENSIVE PLANNERS (TESKA & ASSOCIATES )
UPDATE.
Mark Rothert introduced Todd Vanadilok and Mike Hoffman
project managers with the plan with Teska and Associates. Todd made a
presentation covering a community assessment summary of their work over
the last several months. While in Canton Teska and Associates as well as
Business District Inc. (Terry Jenkins and Bridget Lane) took a tour of
Canton. Items covered during the presentation included: A brief time line,
and community assessment. Demographics, Land-Use, Transportation,
Community facilities, and Housing were all discussed. A copy of the power
point presentation is available for review. Todd spoke on the fact that
Canton needs to diversify housing options to meet the varying income levels
and life situations. Second it needs to provide recreational, commercial,
cultural social, and educational opportunities for residents of all ages. Third
Canton needs to enhance the local economy. This type of economy needs to
provide business and employment opportunities that match the economy.
The economy would provide local job opportunities, also work with the
education systems to prepare a capable work force. With the plan Canton
needs to continue to enhance the transportation network –this can include the
support of Illinois 336 extension or expansion of route 24. This plan builds
upon the strength of the education, parks and healthcare systems. The plan
pulled together basically helps enhance the overall quality of life of Canton.
After the community assessment the next step is
1. Creating a vision statement. 2. Building up goals and objectives. 3. A
public forum. The public forum is scheduled Tuesday May 22, 2007 held at
the Donaldson Community center at Wallace Park at 6:00pm. A notice will
later be made in the newspaper. Vision statements (assignment sheets) will
be sent to the city council. The deadline is by May 11, 2007 to have these
sheets turned in.
Terry Jenkins with Business District and Associates spoke about his
opportunity to tour the community. The focus was the downtown, the
Harvester Site, the industrial park on the west. Their assignment with Teska
and Associates is to provide recommendations relative to economic
development policies and plans in the overall vision of the comprehensive
plan. Questions were brought to the floor from Aldermen Eric Schenck
regarding the low household income in Canton. Terry Jenkins with Business
District and Associates recommended to try to diversify the base more. To
2
Council meeting 4-18-07
mix in higher income residents, and get the average figures higher.
Aldermen Larry Sarff asked the questions of how many residents in Canton
Teska and Associates have talked to. Teska replied that approximately 50-
75 people were talked to from different walks of life. Alderman Meade
asked what the plans were for additional meetings. Teska replied that an
open house will be set up at a later date.
BILLS. Motion
by Alderman Westand second by Alderman Meade, that
all bills properly presented be approved for payment. Roll call. AYES -
Alderman Lewis, Alderman Schenck, Alderman, Carl, Alderman Meade,
Alderman Sarff, Alderman West, Alderman Hartford, Alderman Berardi.
NAYS - 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.
TREASURER’S REPORT.
Treasurer Kathy Luker made a comment that
the revenues are above expenditures for the year. Through 11 months March
Motion
31, 2007 in the amount of $593,248.00. by Alderman Carl and
second by Alderman Sarff, to accept the Treasurer’s Report as presented by
City Treasurer Kathy Luker. The motion carried by voice vote, and was
unanimous.
BUDGET REPORT.
Treasurer Kathy Luker made a comment that
revenues are at 99.9% after 11 months and expenses are at 88.4%. Kathy
wanted to thank all of the department heads and the city council. By
working together as a team and trying to accomplish the same goals we can
achieve much positive activity for the city.
Motion
by Alderman Sarff and second by Alderman Lewis to accept the
.
Budget Report as presented by City Treasurer Kathy LukerThe motion
carried by voice vote and was unanimous.
COMMITTEE REPORTS:
Finance.
Council meeting 4-18-07
3
Advanced Asphalt bid in the amount of $77,283.08.
The first item to
bring before the council is the Canton Contract Maintenance, several bids
were reviewed. The lowest bid was from Advance Asphalt in the amount of
$77,283.08. This was recommended by Keith Plavec of Maurer Stutz Inc.
Motion
by Aldermen Carl and second by Hartford to accept the bid from
Advanced Asphalt. Roll Call. AYES - Alderman Berardi, Alderman
Hartford, Alderman West, Alderman Sarff, Alderman Meade, Alderman
Carl, Alderman Schenck, Alderman Lewis. NAYS - 8 Ayes, 0 Nayes, 0
Absent. Motion Carried.
Request from Spoon River Blues Festival in the amount of $7500.00
from the Hotel/Motel Tax.
The next item was a request from the Spoon
River Blues Festival in the amount of $7500.00 from the Hotel/Motel Tax.
Motion
by Alderman Carl and second by Alderman Sarff to accept the
amount. Roll call. AYES - Alderman Lewis, Alderman Schenck, Alderman
Carl, Alderman Meade, Alderman Sarff, Alderman West, Alderman
Hartford, Alderman Berardi. NAYS - 8 Ayes, 0 Nays, 0 Absent. Motion
carried
Request from Leander Construction for Payment # 9 Kilroy Pump
Station in the amount of $52248.75
. The last item is a request from
Leander Construction for payment # 9 Kilroy Pump Station in the amount of
Motion
$52248.75. by Alderman Carl and second by Alderman Hartford to
accept this request. Roll call. AYES - Alderman Berardi, Alderman
Hartford, Alderman West, Alderman Sarff, Alderman Meade, Alderman
Carl, Alderman Schenck, Alderman Lewis. NAYS – None. 8 Ayes, 0 Nays,
0 Absent. Motion carried.
Legal & Ordinance.
Council Action.
None.
Community & Industrial Development
Council meeting 4-18-07
4
Council Action.
None.
Negotiations, Grievance & Personnel.
Council Action
None.
Informational. Alderman Sarff wanted to have on record the negotiations
for public works next Wednesday April 25, 2007 at 6:00pm at the city
building. This will be in executive session.
COMMUNICATIONS FROM MAYOR RODNEY HEINZE.
Mayor
Rod Heinze wants to send thanks to all of the City of Canton employees for
the surplus and doing well.
Mayor Rod Heinze presents plaques to Aldermen Jim Hartford, Gary
Watson, and Richard Booth.
Alderman Hartford and his wife excepted the plaque from Mayor Rod
Heinze. Rod spoke of Aldermen’s time serving the City of Canton as
Aldermen since 1995. He has been a dream come true aldermen for a
mayor. Any project with the exception of 1 Alderman Hartford has agreed
to help. Both Alderman Hartford and his wife have been wonderful.
Mayor Rod Heinze has a plaque for Richard Booth from the cemetery board.
Richard is no longer able to be on the board. This has been a very stressful
position, and Mayor Heinze rewards his efforts. Richard is not present to
receive the plaque.
Mayor Rod Heinze has a plaque to award to Gary Watson. Gary has done a
“wow” job with the cemetery. Limited documentation was available from
the cemetery. Gary has created a program to layout this information that
was previously kept on 160 year old paper. Gary has been on the board for 8
years. Gary will no longer be on the board. Gary thanked everyone for all
of their support.
Council meeting 4-18-07
5
Alderman Jim Hartford addressed the council and audience. Jim remarked
on his years on the city council. He has been a city of Canton Alderman for
12 years, from 1995-2007. He has served under three mayors. Jim has been
on various committees over the 12 years. He has graduated from both the
citizens police academy and the fire department academy. Jim has attended
the OSHA course at IDOT in Springfield. Jim is currently attending the
Spoon River College sponsored retirees leading academy three. Jim was
involved in having old buildings and trailers demolished. Jim has helped
improve the roads in Greenwood Cemetery, and many streets in Canton.
Jim has been involved in bringing water from the Illinois River and
improving and upgrading the water and sewer plant in the first time in over
68 years. Jim has conducted town hall meetings and informal gatherings of
citizens of his ward in his home. Jim thanks all of the department heads and
employees of the city for their support and help. Mayor Heinze, and all of
the Aldermen received special thanks from Jim. The people of ward 1,
Nancy Whites, Kathy Luker and Clif O’Brien Jim thanked for all of their
support.
Recommendation as the Liquor Commissioner
. Mayor Rod Heinze
gave a background on the number of liquor license. The city currently has
one class A liquor license. Rod had a meeting and explained the process to
each party applying. The liquor commissioner makes a recommendation
then the council either approves it or does not. Rod believes it is a good idea
that the council votes for these licenses. Gary Leese and his wife are
applying for this license along with Jeremy Grove. ( two parties applying)
Rod previously visited with both parties, and both parties meet the
guidelines for the liquor licenses. Gary and his wife have a business
currently, Jeremy does not have a business operating license. If your
looking at just an objective stand point this does add another business to
them. As Rod told them at the meeting mayor Heinze was going to
recommend Jeremy Grove, the name of the license as Outskirts Bar and Grill
Inc. Mayor Heinze would like to name Outskirts Bar and Grill Inc as the
recipient of the outstanding liquor license. Mayor Heinze asked what is your
pleasure on this.
Alderman Hartford asked the question. If we only have one license, is there
a possibility or a reason why we can’t have another one. Mayor Heinze
Council meeting 4-18-07
6
stated that he is opposed to any extension of liquor sales, but this is up to the
council.
Alderman Lewis asked if Jeremy could get the Class B and bump Gary
Leese’s license up to a Class A? Mayor Heinze remarked this would be
likely so. From a formal stand point we would have to have a formal
hearing, but he does not see any reason.
Alderman Lewis stated that Gary is a proven class act in Canton. Aldermen
Lewis also stated that she is sure that Jeremy is going to try to get Outskirts
going, but her thoughts are to give Gary the Class A.
Mayor Heinze asked for a motion for discussion. Alderman Sarff makes a
motion, second by Aldermen West be considered to issue the permit.
Alderman Carl asked Mayor Heinze what criteria was used other than one
being in business and one not being in business. Mayor Heinze replied that
you have to be of good character. It was agreed that both parties are of good
character. Alderman Carl asked what other criteria was used. Mayor
Heinze said that the only other criteria would be that there would be an
additional business in town. Mayor Heinze stated that this was not an easy
decision.
Alderman Schenck commented that he would vote against this, not because
he thinks that Jeremy Grove is not a good applicant. He also thanks the
Mayor had a very fair and considerate process for making his choice.
Alderman Schenck stated that he has a different conclusion as to who he
thinks the license should go to. He stated that the decision is difficult
because we limit the number of these licenses. Alderman Schenck believes
an existing business that is proven to be responsible as a liquor license
holder should be awarded this license. Alderman Schenck believes that the
supper club license is the opportunity for someone to become involved and
demonstrate the ability to run a responsible organization.
Alderman Sarff commented that he has known the applicant Jeremy and his
father for a number of years. Alderman Sarff told Jeremy that if this was
denied that he would welcome Jeremy to the business community with a
Council meeting 4-18-07
7
class B license. For the same reasons as previously stated he would support
the issuance of the license to the Palm Café.
Mayor Heinze stated that just for review the class B license does require at
least 60% of the sale to be food. However the application is for a Class A,
Mayor Heinze stated that he could not approve a class B license tonight.
Roll Call. AYES – None. NAYS - Alderman Lewis Nay, Alderman
Schenck Nay, Alderman Carl Nay, Alderman Meade Nay, Alderman Sarff
Nay, Alderman West Nay, Alderman Hartford Nay, Alderman Berardi Nay.
0 Ayes, 8 Nays, 0 Absent. Motion defeated.
Mayor Heinze stated that we have an open license and the applicant is Gary
Leese and his wife Heidi. Mayor Heinze said at the hearing he would be
recommending a license. Mayor Heinze was told to advertise this license for
10 days. This advise was taken and no one else applied. At this time Mayor
Heinze stated that he is ready to recommend this license to Gary and his
wife in their corporation name: Canton Restaurant and Retail Group DBA
Palm Café. Mayor Heinze is submitting the name of Palm Café as the
recipient of this class A liquor license.
Motion
by Alderman Berardi and second by Alderman Schenck to accept a
liquor license to Canton Restaurant and Retail Group DBA Palm Café. Roll
call. AYES - Alderman Berardi, Alderman Hartford, Alderman West,
Alderman Sarff, Alderman Meade, Alderman Carl, Alderman Schenck,
Alderman Lewis. NAYS – None. 8 Ayes 0 Nays, 0 Absent. Motion
carried.
OLD BUSINESS:
ORDINANCE - ADOPTING THE BUDGET FOR ALL CORPORATE
PURPOSES OF THE CITY OF CANTON, IN LIEU OF AN
APPROPRIATION ORDINANCE, FOR THE FISCAL YEAR
BEGINNING MAY 1, 2007 AND ENDING APRIL 30, 2008. Motion
Alderman Meade and second by Alderman Carl, the ordinance be place on
its passage. Roll Call. AYES - Alderman Lewis, Alderman Schenck,
Alderman Carl, Alderman Meade, Alderman Sarff, Alderman West,
Council meeting 4-18-07
8
Alderman Hartford, Alderman Berardi. NAYS – None. 8 Ayes 0 Nayes, 0
Absent. Motion carried. Ordinance being# 1903.
ORDINANCE - AMENDING SECTION 3-1-20 (LICENSES:
CRIMINAL BACKGROUND CHECKS) OF THE CANTON
MUNICIPAL CODE. Motion
by Alderman Westand second by
Alderman Hartford, the ordinance be placed on its passage. Roll call.
AYES - Alderman Berardi, Alderman Hartford, Alderman West, Alderman
Sarff, Alderman Meade, Alderman Carl, Alderman Schenck, Alderman
Lewis. NAYS – None. 8 Ayes 0 Nays, 0 Absent. Motion carried.
Ordinance being# 1904.
ORDINANCE----AMENDING CHAPTER 8 (INTOXICATING
LIQUORS) OF THE CANTON MUNICIPAL CODE. Motion
by
Aldermen Schenck second by Aldermen West, the ordinance be placed on
its passage. Roll call. AYES - Alderman Lewis, Alderman Schenck,
Alderman Carl, Alderman Meade, Alderman Sarff, Alderman West,
Alderman Hartford, Alderman Berardi. NAYS – None. 8 Ayes 0 Nays 0
Absent. Motion carried. Ordinance being# 1905.
ORDINANCE—PROVIDING FOR 2 HOUR PARKING SIGN AT
THE 1000 BLOCK OF LAWRENCE DRIVE. (AMENDMENTS OF 2
HOURS ON BOTH SIDES OF STREET ON LAWRENCE, DOWN TO
MA-GRA-BL, FROM 7:00 A.M. TO 4:00 P.M. MONDAY THRU
FRIDAY.) Motion
by Alderman Sarff and second by Alderman Berardi,
the ordinance be sent back to legal and ordinance for further discussion.
Motion carried by voice vote and was unanimous.
NEW BUSINESS:
RESOLUTION—APPROVING AN AGREEMENT BETWEEN THE
CITY OF CANTON AND THE CITY OF CANTON POLICE
DEPARTMENT.
First reading read by title. Motion by Alderman Sarff
and second by Alderman Meade, the resolution be adopted. Discussion.
Alderman Berardi asked for the basics of the contract to be explained.
Council meeting 4-18-07
9
Alderman Sarff stated that this is a four year contract retroactive to May 1
2006. We have been negotiating a little over 1 year. This is an arbitrator
decision. The arbitrator decided the pay increases for four years be 4, 4, 3,
3. There would be a medical savings account set up for the employees at 2%
of the base pay, to be put into the medical account to be used to pay medical
expenses after retirement. The city will be paying this. The insurance which
has been paid at 3% of the base pay the last year of the contract changed to
20% of the premium. The retirees will also paying 3% will also pick up
20% of the premium at that same time. Anyone who hires in after May 1,
2007, when they retire will pay 75% of the premium after they retire. We
also established a wellness program for employees at Graham Hospital.Roll
call. AYES - Alderman Berardi, Alderman Hartford, Alderman West,
Alderman Sarff, Alderman Meade, Alderman Carl, Alderman Schenck,
Alderman Lewis. 8 Ayes 0 Nays, 0 Absent. Motion Carried. Resolution
being# 3795.
RESOLUTION - APPROVING ANAGREEMENT MAURER &
STUTZ INC. FOR PROFESSIONAL SERVICES FOR AVENUE C
SANITARY SEWER DESIGN AND CONSTRUCTION IN THE
AMOUNT OF $67,000.00 (GRANT WILL PAY $42,0 00 AND THE
REMAINDER OF THE FUNDS OUT OF THE 2007-2008 BONDING
BUDGET.) Motion
by Alderman Carl and second by Alderman Hartford
the Agreement be adopted. Roll call. Alderman Lewis, Alderman Schenck,
Alderman Carl, Alderman Meade, Alderman Sarff, Aldermen West,
Alderman Hartford, Alderman Berardi. 8 Ayes 0 Nays, 0 Absent. Motion
carried.Resolution being# 3796.
RESOLUTION -- AUTHORIZING THE TRANSFER OF MONEY
FROM THE GENERAL FUND TO THE CIVIL DEFENSE FUND.
Motion
First reading read by title. by Alderman West and second by
Alderman Berardi, the resolution be adopted. Roll call, AYES - Alderman
Berardi, Alderman Hartford, Alderman West, Alderman Sarff, Alderman
Meade, Alderman Carl, Alderman Schenck, Alderman Lewis. NAYS - 8
Ayes 0 Nays 0 Absent. Motion carried. Resolution being# 3797.
Council meeting 4-18-07
10
RESOLUTION—APPROVING A PRE-ANNEXATION AGREMENT
BETWEEN THE CITY OF CANTON AND HOWARD AND ALICE
MCADAMS. Motion
by Alderman Hartford and second by Alderman
West the resolution be adopted. Roll Call. AYES - Alderman Lewis,
Alderman Schenck, Alderman Carl, Alderman Meade, Alderman Sarff,
Alderman West, Alderman Hartford, Alderman Berardi. NAYS – None. 8
Ayes 0 Nays 0 Absent. Motion Carried. Resolution being# 3798.
RESOLUTION—APPROVING AN AGREEMENT WITH ILLINOIS
DEPARTMENT OF CENTRAL MANAGEMENT FOR
ELECTRICAL UTILITY.
Motion by Alderman Carl and second by
Alderman Hartford the resolution be adopted. Discussion. Alderman
Berardi said he wanted to ask Mark Pruitt a few questions. Mark Pruitt is
not present. Aldermen Berardi asked who was going to talk on his behalf?
ICAA and Dacott was asked to get with Mark Pruitt and go through the
contract that they were offering. Berardi said that Dacott has not been
involved in that part of it has not returned any calls to follow the councils
recommendation. Berardi said that after reviewing the documentation
Berardi noticed that the contract was not signed until 30 days ago. Berardi
was curious if they have received a bill yet to base their experience on.
Aldermen Berardi stated that he had a rough time with this. Aldermen
Berardi stated that Mark Pruitt was asked about what was the actual cost
delivered to the city of Canton. Berardi stated that Mr. Pruitt could not
answer this. When going back through the contract it was discovered that
there were a lot of add-ons added to this price. Berardi stated that when
Dacott went back through this to review there was no savings and possibly
would cost the city of Canton more money than what Mr. Pruitt was saying.
Berardi stated that if you go back and review this information the cost of
electricity is one amount and the actual cost delivered is another price.
Berardi is almost positive that Mr. Pruitt quoted the price of electricity, but
not the delivered price to the meter. Aldermen Berardi stated that you can
not buy electricity any cheaper from one supplier to another. Alderman
Berardi said he suggests that since Mr. Pruitt is not here, not to go with this
contract.
Council meeting 4-18-07
11
Alderman Meade asked the following questions to Treasurer Kathy Luker.
“How does this rate today compare to the rate we received last week?”
Kathy Luker said the savings from last week is very close. Kathy said the
rate last week was .061 this rate is.05869 , however we have lost a weeks
worth of savings. Alderman Meade stated that this weeks rate is slightly
better. Alderman Meade asked the city attorney if he has had a chance to
review the contract and if he has any problem with the way it was presented.
Attorney John McCarthy stated that he has reviewed the contract prior to
last week. John McCarthy addressed Alderman Berardi by informing him
that Mr. Pruitt sent a lengthy e-mail to everyone explaining the differences.
John stated that if we choose the index rate there is no penalty, one of the
things that was raised was that the exhibit A that was sent around by ICAA
and Dacott does call for a penalty, but that was on a fixed rate contract.
Alderman Berardi asked Attorney McCarthy if he has read exhibit A. John
stated that yes he indeed did read the exhibit. Berardi asked if “ there were
no add-ons to the 61 cents?” Attorney McCarthy said “if you recall last
week he indicated that there were add ons. Alderman Berardi said it was a
delivered price that was discussed. Alderman Berardi wants to know if the
61 cents is a delivered price? City Treasurer Kathy Luker stated it was
never 61 cents. The actual amount is 6.1 cents. “This was not the delivered
Price” The supplied price is .05869 and last time it said .061. Attorney
McCarthy said the letter from Mr. Pruitt outlines what the delivered price is
and what the savings would be. Alderman Berardi asked if the $47,000.00
savings is correct? Attorney McCarthy replied that this is what the letter
from Mr. Pruitt indicates. Alderman Berardi asked what we are paying from
Ameren. City Treasurer Kathy Luker replied .096, however these are
averages.
Mayor Heinze entertained a motion to allow Dacott to speak to the council
Motion
for five minutes or less. by Alderman Schenck and second by
Alderman Carl to have Dacott speak and answer some questions. Approved
by a voice vote and was unanimous.
Scott Childs with Dacott stated that there were two basic questions from the
meeting last week.
Council meeting 4-18-07
12
1. What is the real delivered cost?
2. Issue about Termination—What penalty might be assessed.
“ The contract clearly states that if you go on an index price which I would
not recommend to anyone, it poses a great deal of risk. From a risk
management I would assume you guys would take a fixed price. If you take
a fixed price you are exposed to termination penalties if you were to
terminate early. In terms of the cost adders--- I have not had a chance to go
through Mr. Pruitts information. But the reality is that they have come back
and recognized that the price of.0615 that was presented last week was not
all inclusive. The couple of numbers that I have looked at the fixed price
rate that was quoted is ..05869 which is about 4-5 % lower than the .0615
price presented last week and yet the total savings went from about
$55,000.00 to $47,000.00. This leaves me a little bit confused. I think the
simple fact is there are some discrepancies in the calculation of the rate.
There are clearly some costs that I can not quantify for you. Those are
specifically related to congestion on the misso system that are related to
capacity on the misso system. Those are clearly pass through charges. If
those charges are high enough you could end up being in the position where
your overall power cost to the city could be at-or greater than where you
would have been with Ameren-- had you stayed under the bundled rate. As
its proposed and as the cost estimates are laid out for you it appears there is
some savings which is some good news for the city. But please be aware
that those cost savings that are being proposed today do carry with them
some level of risk. That level of risk could result in more savings or less
savings. That being said I leave it up to you guys what your risk tolerance
level is. I would be a little concerned with all of the moving parts that went
on with these numbers.
Kathy Luker said she found the information from last week and the March
th
20 price quote was $74,873.97 savings. On April 3 was $61,529.50. The
th
price savings last week was $54989.95 on April 10 that showed a
percentage of 12.77 and that is where the number actually went down to
$47401.00 with a price savings. Differential on energy cost 13.78.
Differential on total cost 10.64. so it does look a little strange the numbers
Council meeting 4-18-07
13
have gone down the percentage has gone up a little bit and its because this
quote on page 3 it does include everything.
Aldermen Schenck asked if the accounts that would be subject to this
contract would include the accounts that we currently have free 50 thousand
kw. We do not want to buy a contract for electricity that we are getting free?
City Treasure Kathy Luker stated that we can choose which accounts. If we
are loosing money on any account—we would not go with those Kathy
stated that the exhibit would be changed to reflect this. Under our current
contract this free usage would go away in 2011. This was a fifty year
contract made back in 1961.
Alderman Sarff asks how long the proposed contract is in effect? This
policy is renewable May of each year. With a fixed rate can we get out of
the contract at this time without a penalty? City Treasurer Kathy Luker
stated-- Yes we can! Interim City Attorney John McCarthy stated “lets
make this penalty clear If you are on a fixed rate --if you go with a fixed
rate there is a penalty because they have to lock in that rate, and they are
paying for it. If you go with an index rate there is no penalty.
Alderman Berardi asked if we are signing a three year contract? If we get
out-- is there a penalty at the end of the year? Interim City Attorney John
McCarthy stated “This is a five year contract that started December 2006
and expires December 31, 2011. Its renewable on the same terms and
conditions for an additional one-three year renewal term. You can get out
of this with a fixed rate on the anniversary with 15 days notice Alderman
Schenck asked “If you get out at the end of the one year with a fixed rate is
there a penalty?” Interim City Attorney John McCarthy stated “not as he
understands it. If you sign up for the one year, at your anniversary date you
would have to renew it. Again this is a five year contract renewable every
year unless you opt out. We would be advised based on the rates when we
would lock in with a contract within the next 30 days.
Roll call. AYES – Alderman Hartford, Alderman Sarff, Alderman Meade,
Alderman Carl, Alderman Schenck, Alderman Lewis. NAYS - Alderman
Berardi, Alderman West. 6 Ayes, 2 Nays, 0 Absent. Motion carried.
Resolution being# 3799.
Council meeting 4-18-07
14
RESOLUTION—APPROVING AN AGREEMENT WITH ICAA.
First
reading, read by title.
ADJOURNMENT. Motion
by Alderman Sarffand second by Alderman
West to adjourn. The motion carried by voice vote and was unanimous. The
regular scheduled council meeting adjourned at 8:20 p.m.
______________________________________
Nancy Whites, City Clerk
APPROVED:
____________________________________
Rodney W. Heinze, Mayor
15