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HomeMy WebLinkAbout04-08-08 Clerical Committee Meeting MinutesCLERICAL COMMITTEE Tuesday, Apri18, 2008 Historic Depot, 50 North 4th Avenue, Canton, IL Finance Co Alderman Meade, Chairman ALDERMEN IN ATTENDANCE -Eric Schenck, Joe Berardi, Larry Sarff, Craig West, Kevin Meade, Jason Strandberg, Sonya Lewis. Absent was David Nidiffer. Others attending -Mayor Rodney W. Heinze, City Clerk Nancy Whites, City Treasurer Kathy Luker, City Attorney Chrissie Peterson, Police Chief Jeffrey Fritz, Fire Chief Bonnie Cremer, Public Works Director Cliff O'Brien, Wastewater Treatment Plant Supt. Joe Carruthers, Water Treatment Plant Supt. Greg Pollitt, Street Supt. George Spahn, System Maintenance Supt. Bill Terry, Zoning Officer and City Engineer Keith Plavec, SRPED Executive Director Mark Rothert, Video Services by Joe Ginger. In the audience -Scott Brown of Timbuk Tech, News media of Daily Ledger John Froehling, WBYS, Brenda Rothert of Journal Star. Bills. Alderman West made the motion to send the bills to council for consideration. Was duly seconded by Alderman Sarff. Discussion. Alderman Berardi wanted to know why we were approving a bill in the amount of $145.00 for Human Resource when we don't have anyone in a Human resource position? Mayor Heinze mentioned that he okayed the payment. Alderman Sarff reported that the mayor can approve certain amounts and this is in his realm. The motion carried by voice vote, and was unanimous. Treasurer's Report. City Treasurer Kathy Luker said we are 11 months in to the fiscal year. Revenue Y-T-D is $6,588,646.47 with expenditures of $6,206,628.27. At 85.6% for the total on expenditures. I believe in being conservative and feel it is very good to pay the bills. Alderman West made the motion to send the Treasurer's Report to council for consideration. The motion carried by voice vote, and was unanimous. Budget Report. City Treasurer Kathy Luker said we are at 11 months of the Budget year with 91 % spent. She made a pie chart to show how the money is being spent from the Budgets. Kathy thanked the department heads, the employees, and Aldermen, and those working on the Budget. Alderman Sarff made the motion to send the Budget Report to council for consideration. The motion carried by voice vote, and was unanimous. Budget Ordinance. City Treasurer Kathy Luker came up with the following for possible cuts to the Budget for 2008-2009 on April 8, 2008. They are - in Administration & Police Hinshaw & Culbertson LLP-Eligible for Bond Expense $ 30,000.00 Remove City Administrator $76,100.00. Subtotal-Administration $106,100.00 1st Police Officer-additional expenses (Per Chief Fritz) $ 6,590.50 Remove 1 police car $ 19,000.00 Remove 1 police car to 2007-2008 budget year $ 19,000.00 Subtotal-police $ 44,590.00 REVENUES -INCOME TAX INCREASE $ 14,966.34 Grand-Total-General Fund (above possible cuts) $165,656.84 General Fund Deficit (4/1/08) before above cuts $165,656.84 Possible adjusted amount $0.00 City Treasurer Kathy Luker commented that Alderman Meade had asked her to do this. Kathy also mentioned the Income Tax Increase is 100% of revenues. Alderman Meade said Kathy has done her job as the budget director with a balance budget. We as Aldermen have to decide to accept or, Kevin said he was not afraid of a deficit as the city has been having extra revenues at the end of the budget year. Alderman Berardi this proves we need the City Administrator position back in the budget. I have a problem taking funds out of the bonding money. Now we are borrowing for legal fees. City Attorney Chrissie Peterson said she had a conversation with Chapman & Culter and David Petorius, their opinion of associated projects laid out in the Bond Ordinance, and these are appropriate expenses. Alderman Sarff wanted to know how much was set aside and earmarked for those fees? City Attorney Chrissie Peterson said 5%. Alderman Schenck wants to put the City Administrator position back in the budget. And during the mid year of the Budget we can add back in with a simple majority vote. Mayor Heinze asked who should decide this? City Attorney Chrissie Peterson mentioned that as far as Bell Boyd & Lloyd are concerned, once Big Rack's done we won't need Bell, Boyd & Lloyd. Alderman Berardi mentioned that we need a professional decision by May 12. Mayor Heinze said do you have 6 votes? Alderman Berardi said he had one and it was him, and he wants to know how much the city is in debt by the next Budget. And also, what are the anticipated income? Alderman Schenck thought the SRPED could do some calculating on this for the TIF District. And the key is development as soon as possible. Alderman Sarff made the motion to accept the Budget with leaving in the City Administrator and the other cuts as proposed. Was duly seconded by Alderman West. The motion carried by voice vote, and was unanimous. Resolution -Monthly IT Service Saver from Timbuk Tech. Alderman Meade said we need to decide on the three different options for the maintenance of City of Canton's computer system. Scott Brown from Timbuk Tech said the city has 2 million spam a day. Alderman Sarff made the motion to accept the maintenance of Professional IT $1510 a month and 5 1/2 hours of service. Was duly seconded by Alderman West. Discussion. City Treasurer Kathy Luker was asked by Alderman Sarff to keep track of time and how process is going. The motion carried by voice vote, and was unanimous. Payment #2 from Laverdiere Construction for Avenue C Storm Sewer in the amount of $119,309.67. Alderman West made the motion to refer to Council for consideration. Was duly seconded by Alderman Sarff. Discussion. Keith Plavec said will use the grant dollars before using the city dollars. The motion carried by voice vote, and was unanimous. Leander Construction for payment #2 for Water Treatment Plant Improvement/Finished Water Storage Facility in the amount of $44,649.00. Alderman West made the motion to refer to Council for consideration and accept the engineer's recommendation. Was duly seconded by Alderman Sarff. Discussion. Alderman Berardi thought a lot of the issues before us tonight should be discussed by Public Works first. City engineer said he can change how the bids come in with the contractors. The motion carried by voice vote, and was unanimous. Bid Results for the City of Canton Proposed 24" Raw Water Transmission Main. Keith Plavec city engineer reported that 10 bidders ranging from Tremont Illinois to Orleans Indiana, and Rockville -MN -December 2004 there was a Water Study: Estimated cost = $6,382,000 -Apparent low bidder is Reynolds, Inc out of Orleans, IN = $5,377,582.51 ^ Secretary of State Office - Purchased a Certificate of Good Standing ^ U.S. Department of Labor -Bureau of Apprenticeship & Training ^ Proof of Compliance from International Union of Operating Engineers, Local 150, AFL-CIO. ^ We are running the registration numbers by U.S. Department of Labor verification -Called several reference (engineers and owners) -Would start 2nd or 3rd week of May Water/Sewer Bonding Recap: -Original Authorization Amount - $36,000,000 from Water $23,300,000 and Sewer $12,700,000 -Current Issuance = $26,500,000 -Remaining issuance = $9,500,000 -Payback on $26,500,000: Due 1, 2006 to December 1, 2023 -Payback on $9,500,000: December 1, 2008 to December 1, 20026 -FY 08/09 Budget Items: $18,500,000 -Remaining $9,500,000 items: ^ Finished Water Transmission Main $4,255,000 ^ Elevated Storage Tank: $2,350,000 (1.5 million gallon) ^ WTP & WWTP Construction $3,000,000 Repayment Includes paying back an IEPS loan from June 26, 2001 (finished transmission main, stand pipe painting, filter replacement) Keith Plavec will develop costs for line up on 11th Avenue to Main Street as asked for by Alderman Berardi. Alderman Sarff made the motion to refer to Council for consideration. Was duly seconded by Alderman West. The motion carried by voice vote, and was unanimous. Alternate Bonds. City Attorney Chrissie Peterson was sent a letter from Chapman & Cutler LLP. The letter is as follows: We understand that representatives of the City have requested clarification regarding the time frame within which the City may issue bonds authorized by backdoor referendum. Generally, alternate bonds are authorized to be issued by backdoor referendum if no petition signed by requisite number of voters asking that the issuance of alternate bonds be submitted to referendum if filed with the City Clerk. Voters have a 30-day period, beginning after publication of the authorizing ordinance and notice of intent to issue the alternate bonds, to file the petition with the City Clerk. Under Section 17.5 of the Local Government Debt Reform Act of the State of Illinois, authority for the issuance of alternate bonds remains "for 3 years after the end of the petition period for a backdoor referendum." The City published their authorizing ordinance and notice of intent to issue alternate bonds on April 12, 2005. No petition was filed with the City Clerk within the duration of the Petition Period, ending on May 12, 2005. Thus, the authorization to issue the remainder of the $36,000,000 alternate bonds approved by backdoor referendum expires on May 12, 2008. Once this deadline passes, the City must re-initiate the backdoor referendum procedure in order to issue alternate bonds. SIGNED BY Erin P. Bartholomy. City Attorney Chrissie Peterson said she checked a month ago as she had requested information on $9.5 million of the Bonding funds. Alderman Schenck wanted to know if would issue bonds at same rate? City Treasurer Kathy Luker answered, hope would be lower, because of the low housing market, should not be too much lower. Won't know until we sell the bonds. City Treasurer Kathy Luker said she has never wrote a check for interest rate, and presently its at 4%. Alderman Schenck said we don't have much time, and I don't want to see the water bills go up again this year. Committee members decided to wait another year. Mower for Building & Grounds department from Tony Fahrenbruch . Alderman West made the motion to refer to Council for consideration. Was duly seconded by Alderman Sarff. Discussion. Public Works Director Cliff O'Brien mentioned that he compared the two mowers from Slaight's and Walker, both businesses in Canton, and Tony was at $5,062.50. The motion carried by voice vote, and was unanimous. Transfer of $533,497.57 from General Fund to Health Care Fund. Alderman Sarff made the motion to refer to Council for consideration. Was duly seconded by Alderman West. Discussion. City Treasurer Kathy Luker said this is required to close out the former Health Care provider HCH. She had checked with the city's auditing firm Hocker & Fitzjarrald. When this transfer comes to the General Fund its just a paper transfer. The motion carried by voice vote, and was unanimous. Transfer of $390,000 from Health Care Fund to Working Cash Fund to repay loan between the funds. Alderman Sarff made the motion to refer to Council. Was duly seconded by Alderman West. The motion carried by voice vote, and was unanimous. Health Insurance Committee recommendation from Rick Semonis. City Treasurer Kathy Luker said the meeting will be held on Thursday of this week. She just wanted to recommend to you for approval for the council meeting next week. Hinshaw & Culbertson LLP be paid out of Bonding monies not General Fund for 2007-2008. Alderman Sarff made the motion to refer to council for consideration. Was duly seconded by Alderman West. Discussion. City Treasurer Kathy Luker is requesting that a portion of the previously paid Hinshaw & Culbertson LLP bills be paid out of the Bonding monies instead of the General Fund for 2007-2008 fiscal year. They are the City of Canton vs. IEPA bills. These were previously approved at the appropriate City Council meeting. They are all Bond eligible expenses per Chapman & Cutler. 09-19-07 $ 902.00 10-17-07 $ 7,577.04 11-21-07 $ 1,298.00 12-19-07 $ 8,009.85 01-16-08 $ 6,784.90 03-19-08 $ 1,914.00 Total Amount $26,485.79 Alderman Sarff said he wants to leave as is. Alderman Schenck ask could this be paid from the Water & Sewer Fund? City Treasurer Kathy Luker said she did not no if she could. The motion carried by voice vote, and was unanimous. TIF IH Bills Vandewalle $56,789.70 and Environmental Operations Inc. requesting paid from the General Fund for 2007-2008. Alderman Sarff made the motion to refer to Council for consideration. Was duly seconded by Alderman West. Discussion. City Treasurer Kathy Luker said that previously paid Vandewalle and Environmental Operations Inc. bills, now wants to be paid out of the TIF-IH account instead of the General Fund for 2007-2008 fiscal year. These were previously approved at the appropriate City Council meetings. They are TIF-IH eligible expenses. Environmental Operations Inc. $2,759.80 Vandewalle & Associates $56,789.70 The motion carried by voice vote, and was unanimous. IH Sinking Fund. City Treasurer Kathy Luker is requesting a transfer from our reserves to the IH-Sinking Fund in the amount of $300,000.00. This would be added to the existing amount in the IH-Sinking Fund of $210,509.09. The loan amount is due on 12/15/09 of $800,000.00. The interest rate on the loan is 3.040%. This IH Sinking Fund is at Illinois Funds. It earned and average monthly yield in 2007 of 5.088%. The last 3 months if yielded 4.198%, or 3.324%, and 2.855%. You may want to consider paying down on the principle amount ($500,000.00) instead of investing the monies at this time, if you feel the interest rates will continue to drop in the future. This would be added to the existing amount in the IH-Sinking Fund of $210,509.09. This loan amount is due on 12/15/09 of $800,000.00. The interest rate on the loan is 3.040%. This IH Sinking Fund is at Illinois Funds. It earned an average monthly yield in 2007 of 5.088%. the last 3 months it yielded 4.198%, 3.324%, and 2.855%. You may want to consider paying down on the principal amount ($500,000.00) instead of investing the monies at this time if you feel that the interest rates will continue to drop in the future. Kathy said this is with the Mid America National Bank and this would show paying down the principal we are adamant about paying this off. Alderman Sarff made the motion refer to council. Was duly seconded by Alderman West. Alderman Meade said he would rather invest 1.2 million dollars instead of paying this off. The motion carried by voice vote, and was unanimous. The Finance Committee adjourned at 8:25 p.m. Legal & Ordinance Alderman West, Chairman Water Pre-Annexation for Robert & Lisa Knelling. Alderman Meade made the motion to refer to Council for consideration. Was duly seconded by Alderman Sarff. The property is located at 2070 North Main Street. The motion carried by voice vote, and was unanimous. Water Pre-Annexation for Howard & Alice McAdams for Lot #15 in Westgate Subdivision. Alderman Meade made the motion to refer to Council for consideration. Was duly seconded by Alderman Sarff. The lot is in Westgate. The motion carried by voice vote, and was unanimous. Ordinance for vacating an alley. The ordinance will be presented at the next Council meeting. Ordinance needed for City Auction. Alderman Sarff made the motion to refer to Council. Was duly seconded by Alderman Meade. The motion carried by voice vote, and was unanimous. Alderman Sarff asked when to have GABBY days? Public Works Director Cliff O'Brien said to have GABBY Days the week after the Chamber of Commerce car show. The Legal & Ordinance Committee adjourned at 8:30 p.m. Community & Industrial Development Alderman Nidiffer, Chairman Alderman Meade chaired the meeting due to the absence of Alderman Nidiffer. Update SRPED Executive Director -Mark Rothert. The annual dinner was held last Saturday with guest speaker Bill Cook. Bill is interested in revitalizing the downtown of Canton. Bill Cook is a former resident of Canton. Main & Locust corner site, City Attorney Chrissie Peterson is talking with J.C. Penney to have them relinquish the lot back to the City from not having to have so many parking spaces because of the agreement with J.C. Penney, during the development of Fulton Square. Company for Maid Rite was in town today. A couple of weeks ago Teska was in town and Streetscape businesses was there also. Teska walked around the whole square. Working on our "Profile" magazine which is under way. Looking to apply for a IDOT Enhancement Plan grant and working with Streetscape planners. Lot #13 of Industrial Park. Alderman Meade mentioned the property is land locked and has 2 ~/z acres. Would cost $30,000 to built a road and we can only ask $5,000 an acre. Tony has offered a minimal cost to purchase the lot and he will bring up the necessary repairs to expand his business. Tony wants to add landscaping to his business, and he will put in culvert, dirt work and erect a building. City Attorney Chrissie Peterson said the City would have to seek bids, and can accept best use of the property in those bids. Alderman Berardi said we could ask in the bid what are you going to do with the property. Alderman Sarff made the motion to advertise for bids. Was duly seconded by Alderman West. The motion carried by voice vote, and was unanimous. The Community & Industrial Development committee adjourned at 8:45 p.m. Negotiations, Grievance & Personnel Alderman Sarff, Chairman No items were listed, and discussion was not held. EXECUTIVE SESSION - NEGOTIATIONS, GRIEVANCE & PERSONNEL COMMITTEE TO DISCUSS - NEGOTIATIONS WITH PUBLIC WORKS AND FIRE DEPARTMENT CONTRACTS. Alderman Meade made the motion to go into executive session for the purpose of discussion for negotiations with Public Works and Fire Department contracts. The Executive Session began at 8:50 p.m. ADJOURN No motion or second was made to adjourn. Mayor Heinze called the meeting adjourned at 9:03 p.m. Recording Secretary, Nancy Whites, City Clerk