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HomeMy WebLinkAbout07-14-09 Clerical Committee Meeting MinutesThe Canton Clerical Committee met on July 14, 2009 in Council Chambers located at the Historic Depot, 50 North 4t" Avenue, Canton, Illinois 61520. Mayor Kevin R. Meade called the meeting to order at 6:30 p.m. Mayor Kevin R. Meade stated there will be no audio/video services available due to a storm causing problems with the equipment. Aldermen in attendance - Rick Reed, Eric Schenck, Larry Sarff, Jorge Rivero, Jerry Ellis, Jim Hartford, Jason Strandberg. Absent -Craig West. Others in attendance -Mayor Kevin R. Meade, City Clerk Nancy Whites, City Treasurer Aaron Anderson, Police Chief W. Dan Taylor, Fire Chief Bonnie Cremer, Maurer Stutz Inc. Keith Plavec, (Zoning Officer and city engineer) Public Works Director Clif O'Brien, Wastewater Treatment Supt. Joe Carruthers, Water Treatment Supt. Greg Pollitt, Street Supt. George Spahn, System Maintenance Supt. Bill Terry, Video Services by Joe Ginger. In the audience -news media of WBYS radio Mark Bixler, Daily Ledger John Froehling, Journal Star Kevin Sampler; Chamber of Commerce Director Missy Towery, SRPED Executive Director Mark Rothert and wife Brenda, Keith Slowey from Holophane, Brenda & Ron Dilts, Marge Savill, Bill Dodds, Greg Arnett, Phil Church, and 4 unidentified. Finance. Bills. Alderman Sarff made the motion to forward the bills to Council for approval, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. Treasurer's Report. City Treasurer Aaron Anderson reported we have made quite a rebound from last month due to paying two health insurance premiums in the same month. Revenues are 5% lower than a year ago on sales tax. On the Income Tax the state is behind in paying and at this time the amounts are $150% lower. Legal services have used 20% of the budget. Other professionals have used 71% due to the budget director. The revenues are better this month than back in May. Investments are down $400,000. 1 Alderman Schenck mentioned that we need to look at where our money goes and should go back into the general fund from the TIF Debt Certificates. Alderman Strandberg made the motion to forward the Treasurer's Report to council for approval, and was duly seconded by Alderman Sarff. The motion was by unanimous voice vote. Radial Collector Well Change Order #1. Alderman Sarff made the motion to forward on to council from Reynolds Inc. for the Radial Collector Well Change Order #1, and Keith Plavec come back next week to discuss the portal, and was duly seconded by Alderman Strandberg. Discussion. Keith Plavec presented a change order for the radial collector well project. Keith said the change order covered four items including: (1) changing the electrical panel board to draw out breaker type per Ameren CIPS requirements at a cost of $9,946.20; (2) relocation of the generator building per the Illinois Department of Natural Resources which is permitting agency on this project at a cost of $171,675.79; (3) deduction of two lateral ports with a savings of $4,400; and (4) increase in contract time due to inclement weather of 116 days. Mayor Meade asked Keith about the deduction of two lateral ports. Keith explained that four laterals will be installed and four spare lateral ports will be installed in case the drilling crews run in to problems with one of the original four while drilling. Keith said that Reynolds recommended that only two spare ports were needed at this time and that the other two ports may never be used in the future due to technology changes. Mayor Meade commented that the cost of the extra two spare ports is minimal on a project this size and would like to see them left in the project just in case they could be used at a later date. The motion was by unanimous voice vote. IDOT Presentation on Locust Street Improvements. Shaun Coyle, a geometrics engineer with the Illinois Department of Transportation gave the committee and update on proposed improvements to Locust Street between Avenue A, and 5t" Avenue. Mr. Coyle said that this project is being completed as a safety project because 174 crashes have occurred in the section of roadway with 75 involving injury. He said the intersections of Locust Street and Main Street and Locust Street and 15t Avenue had the highest crashes. He said the crashes are occurring due to poor angles, drivers vision being blocked and narrow lanes. z Suan said they are proposing to convert the existing roadway to a 3-lane typical section. He said the original project that the City supported was going to have 6' sidewalks and bike lanes from 15t Avenue to Avenue A. The original project cost was $1.1 million. Suan said they have come up with another concept that was approved by IDOT and wanted City approval that will consists of 12 foot drive lanes and a 12.5 foot center lane. He said there would be a 10 foot multiuse path from Avenue A to 15t Avenue instead of 6 foot sidewalks. The bike lanes would remain between 15t Avenue and 5t" avenue. He said the project cost is $1.8 million. They would construct in 2011 with the section from Avenue A to 15t Avenue being all concrete. This concept will require the purchase of right-of-way and they are currently completing their survey. He said that IDOT will want to relocate the water main and this will be at IDOT's cost because the water main predates the roadway. He said that if the City would desire to upsize the water main, they would only have to pay for the additional material cost. Suan said upgraded to the City's storm and sanitary sewer would be a City cost. Keith and Clif discussed that the existing sanitary sewer will probably need to be lined. He said new signals will still be part of this project and estimated cost is $200,000. He said the City of Canton would be responsible for 5% of the signal cost or roughly $10,000. Keith mentioned that if lighting is desired along Locust Street, the City may need to obtain easements for the light installation. Alderman Schenck asked about pavement treatment at the intersection. Saun said this would be a City cost. Alderman Sarff made the motion to support the plan, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. TIF Debt Certificates Terms & Amount. City Treasurer Aaron Anderson reported that the underwriter decided how long to use this for and will bring back to council and send to local banks see if they want to be involve. At this meeting we need to decide what amount we need. Alderman Schenck said this would be a two year pay back and a long term bond. Refinancing of $4 million in that two year window we can invest the funds with the same terms as borrowing. 3 City Clerk Nancy Whites was asked to place on the agenda for the council meeting July 21. The Finance Committee adjourned at 8:13 p.m. Legal & Ordinance. Discussion of Navistar's contractual obligations per settlement agreement. City Attorney Chrissie Peterson commented that we have four issues. Issue #1 -Northeast Development Block Parcels 1 & 2 Remedial Cost Estimate and Environmental Escrow Funding In December 2008, the City's environmental consultant, Environmental Operations, Inc. ("EOI"), submitted to Navistar for review and approval the Development Block Work Scope/Remedial Cost Estimate for Parcel 2 of the NEDS. That submittal identified the Cook Canton, Inc. development planned for approximately 7.3 acres of the former IH Site situated in the NEDB. Since Navistar had already approved the Parcel 1 Remedial Cost Estimate (based on the previous anticipated development), only Parcel 2 remedial costs were addressed. Navistar responded negatively to EOI's submittal with the following: (1) criticized the City's failure to adhere to the Execution Schedule of the Settlement Agreement has increased Navistar's transactional/legal fees; (2) requested that both Parcels 1 & 2 be addressed collectively (with accounting for Parcel 1 escrow funds deposited by Navistar), (2) challenged the unit costs utilized in EOI's cost calculations; and (4) raised the argument that remnants of the former IH buildings (collectively "slabs") could serve as the "engineered barriers" required to satisfy the IEPA-approved risk-based remedial action under the Site Remediation Program. Despite a subsequent meeting in January 2009 and follow-up communications, there has been little progress in resolving this disagreement. To address the technical "concerns" raised by Navistar, additional data was developed (e.g. unit pricing for concrete and asphalt barriers from several area suppliers, discussion of "slab" use as "engineered barriers," etc.). A comprehensive written response explaining an enclosed Revised Remedial Cost Estimate for NEDB Parcel 1 & 2 was 4 submitted to Navistar on July 1, 2009. A conference call was held with Navistar Attorneys David Rieser and Chris Perzan on July 2nd to discuss the Revised Remedial Cost Estimate but those discussions were unproductive. There has been no response from Navistar since the July 2nd conference call. Issue #2 -Navistar Reimbursement of Interim Remedial Costs. A number of investigations and remedial actions have been completed at the former IH Site utilizing government Brownfields funds. Those investigations and remedial actions complied with IEPA -approved Interim Remedial Measures (IRM #1 completed 5/04 and IRM#2 ongoing). While IRM #1 investigations/remedial actions were completed without direct involvement by Navistar technical personnel played a significant role in developing (and continue to be involved) in the IRM#2 investigations/remedial actions. By letter dated June 18, 2008, former counsel sent a demand to Navistar for reimbursement of approximately $77,000 associated with IRM#1. There appears to have been no follow-up communication for former counsel regarding the demand letter and those costs, excepting payment of $7,000 to Larry Eastep, remain outstanding. This issue was raised during our meeting in January with Navistar. In a second letter dated August 1, 2008, former counsel requested reimbursement of $153,000 of the IRM#2 costs related to an investigation and removal of potential groundwater contaminants (light non-aqueous phase liquids or "LNAPL"). Again there appears to have been no follow-up communication by former counsel regarding the August 15t demand letter and those costs remain outstanding. This issue was also raised during our meeting with Navistar but no resolution was achieved. Issue #3 -Navistar Reimbursement of Costs Prior to Escrow Account Funding and Costs not Specific to a Development Block This issue is related but distinct from the IRM costs. As has occurred in the past, investigations and remedial actions at the Site may be required before Navistar has funded the Environmental Escrow Account for each of the specified Development Blocks. Additionally, there may be costs not related to a specific 5 Development Block but are clearly devoted to addressing Site conditions and SRP requirements. Former counsel and Attorney Faletto have suggested to Navistar a Supplemental Agreement or Amendment to the Settlement Agreement that would be structured to provide for Navistar's prior approval of the necessary work and related costs (to be paid by Navistar). The City or Navistar would identify the proposed SRP-related actions (specifically the assessments, investigations, remediation, SRP reports, other regulatory deliverables, and/or other SRP-related activities, etc.), and related cost estimate for that work. Assuming Navistar agrees and pays those costs, the amount of those advance payments would then be identified in the Remedial Cost Estimate for an appropriate DB Work Scope (or allocated to multiple Work Scopes), with a reference showing those cost already having been paid. Those payments would be made outside of the escrow procedures provided in the Settlement Agreement, but fully documented as costs paid by Navistar. Payment of costs for pre-approved Site work that is not related to a specific Development Block also would be addressed under the Supplemental Agreement with payment occurring outside the scope of our existing Settlement Agreement. During our January meeting, Navistar's outside counsel David Rieser agreed to put together a draft Supplemental Agreement. When last discussed it with him, he indicated the City should develop and propose a Supplemental Agreement for Navistar's review and approval. Issue #4 -Navistar's Claims of Noncompliance with 2007 Settlement Agreement The 2007 Settlement Agreement is structured to require Navistar's payment of the costs of investigation and remediation after approval of a Development Block Work Scope Estimate for each of the five (S) specified Development Blocks. That "DB documentation" is required to be completed in accordance with the DB Work Scope Execution Schedule set forth in Paragraph 3 (b) of the Settlement Agreement. All of the deadlines of the Execution Schedule have been missed and an approved DB Work Scope/Remedial Cost Estimate/Escrow Account (funded) exists only for Parcel 1 of the Northeast Development Block. 6 On numerous occasions, Navistar has objected to payment of site-related costs based on noncompliance with the Settlement Agreement. I see where this issue was raised with former counsel regarding reimbursement of grant funds expended on the IRM activities. This issue was raised again during the July 2nd conference call with Navistar attorneys Rieser and Perzan, ableit in a different context of "concerns" about the Cook Canton development progressing before approval of the NEDB Parcel 1 & 2 Work Scope/Remedial Cost Estimate. Resolution of Issues -Arbitration under 2007 Settlement Agreement As you may recall, the 2007 Settlement Agreement between the City and Navistar (then International Truck and Engine Corporation), specifies procedures for the resolution of technical disagreements and legal disputes that arise under the Agreement. While the procedure specified for resolution of technical issues is fairly complicated, lengthy and resource intensive, the procedure to resolve "Legal Disputes" is arbitration following the Rules of the American Arbitration Association. Each party bears its own legal costs and shares the cost for a single arbitrator selected by the parties. The arbitrator's decision may be "appealed" under the Agreement (presumably via civil action to enforce the decision in Circuit Court). To resolve the foregoing issues, the City Council may, need to invoke the arbitration provisions of the Settlement Agreement. Recommendations to Resolve Issues Issue #1-For Issue #1 (delay in Navistar's approval of NEDB Parcel 1 & 2 Remedial Cost Estimate/Escrow Account funding), our next action should establish a deadline for resolution. We notify Navistar that further delay in approving the Remedial Cost Estimate is unacceptable and establish a deadline for response. If Navistar fails to comply with the deadline or responds with baseless argument, then we issue written notice of intent to proceed with arbitration under the Settlement Agreement. We should be prepared to make good on the threat. Issue #2 -Resolution of Issue #2 (delay or refusal to reimburse Remedial Costs) would follow the same approach. The "demand letter" needs to incorporate and update the previous correspondence and communications on this issue and lay out our legal rationale supporting the reimbursement request. I anticipate the same response, i.e. the Settlement Agreement does not anticipate payment of any funds unless and until there exists and approved DB Work Scope/Cost Estimate/Escrow Account which bring Issue #4 into play, as well. We would not be in as strong as position for arbitration, but there's no viable alternative if Navistar continues to ignore the City's requests for reimbursement. Issue #3 -Although we had waited several months for Navistar Attorney Rieser to prepare the Supplemental Agreement, it appears that obligation has been pushed back on the City. I will plan to prepare a draft Supplemental Agreement for submittal to Navistar. If Navistar refuses, we restructure the Supplemental Agreement as a formal Amendment to the Settlement Agreement and if disputed by Navistar, we proceed to arbitration to resolve a dispute concerning a necessary amendment to the Settlement Agreement as provided by Paragraph 22 "Amendment." Issue #4 - We have already implemented responsive action by instructing EOI to move forward with development of the necessary DB Work Scopes for all remaining Development Blocks. This will require submittals to IEPA so EOI has been instructed to focus on those agency submittals, in the first instance. We have already advised Navistar that all future DB Work Scopes/Remedial Cost Estimates/Escrow Accounts will be based on our "best guess" as to remaining development of the Site -using the latest Conceptual Development Plan prepared by Vandewalle Associates. City Attorney Chrissie Peterson said that Attorney Jon Faletto has done a fantastic job. Alderman Strandberg said we have to let them know we are serious. Alderman Schenck said this is not huge money to Navistar. City Attorney Chrissie Peterson said if Navistar does appeal the arbitration the case will be handled in Fulton County Court. This is just for your information. Roofing Permits. s Keith Plavec mentioned that he received a letter from the Illinois Department of Financial and Professional Regulating concerning problems with unlicensed roofing contractors. Currently, the City does not require permits for roofing work. Maurer Stutz Inc. had talked with Building Inspector from Pekin, and he stated the City of Pekin only requires a permit for roofing if they are replacing 30% or more of the sheathing. The State requires that the roofing contractor display their license number on the job and their truck. The City of Pekin checks for contractors that are not licensed and turns them over to the State if there is a problem. The City of Canton has several options to enforce the State law requiring roofing work to be completed by licensed roofing contractors: 1) Require a permit for roofing work. The City should charge a flat fee of $10.00 similar to fence and demolition permits. 2) Require contractors to be licensed/approved by the City. This list of approved licensed roofing contractors could be displayed on the City website for residents when obtaining quotes. Alderman Sarff made the motion to accept Option 2, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. Zoning Board of Appeals - meeting schedule. City Attorney Chrissie Peterson said the zoning board has agreed to meet two times in the month from April to September. The meeting dates will be the first and third Thursday. Discussion of new railroad crossing at Maple Street & the closing of current railroad crossing. City Attorney Chrissie Peterson said the City had petitioned the Illinois Commerce Commission on the Cook development and was told not required to have any signals because of opening up Maple Street. BNS railroad says you open up one you close one. I talked to the attorney today with the Illinois Commerce Commission and there has not been a train on this track in decades. And they said If we propose this we have to have the city sign a paper if and when we have train traffic. Their attorney will talk with us later. Keith Plavec said they are tying this in to rail safety. Keith recommended if we have to close one track we could close Hickory Street. 9 Alderman Reed commented that closing down a crossing puts the public's safety at risk. Alderman Schenck made a motion to contact Congressional District 17 Rep. Phil Hare and House District 91 Rep. Michael Smith to submit a letter on our behalf for the authority to close the crossing at Hickory Street, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. Handicap Parking -Section 9-5-14 of the Municipal Code. City Attorney Chrissie Peterson said that she met with the Police Chief W. Dan Taylor, and they talked about the fee, and feel it is not correct. We want to clean up the ordinance to state a minimum and maximum fee. Alderman Sarff made the motion to forward on to council, and was duly seconded by Alderman Rivero. Discussion. Mayor Kevin R. Meade said the ordinance will mirror the one by the state. The motion was by unanimous voice vote. Water Pre-Annexation w/Cory Schoonover. City Attorney Chrissie Peterson said this is at Lake View Drive. Alderman Rivero made the motion to forward on to council, and was duly seconded by Alderman Strandberg. The motion was by unanimous voice vote. Discussion of whether BASSETT training should be required per liquor ordinance. City Attorney Chrissie Peterson and the Police Chief W. Dan Taylor attended a meeting on BASSETT training and walked out of the meeting with the understanding this is not a benefit for our community. Only 16 communities have it. Alderman Schenck said no liquor license holder will be grandfathered in. Alderman Schenck made the motion to revise the ordinance for the Liquor Commission to be able to make decisions, by not being required, but are encouraged to do so, was duly seconded by Alderman Sarff. Discussion. City Attorney Chrissie Peterson said at the time of passage hereof, existing employees of a class A, B, C, D, E, or S license, or any subclass thereof, who will be engaged in selling, mixing, preparing, serving or delivering alcoholic beverages to customers, guest or patrons, for consumption on or off premises, shall successfully complete Zo a beverage alcohol sellers and servers education and training program. The motion was by unanimous voice vote. Odd Fellows Building. Alderman Ellis asked what is the status for this area as apparently there has not been one. We need to contact someone because of the unsightly conditions. City Attorney Chrissie Peterson said the area has been this way since the fire November 2007. We have made phone calls and no action made. Even got Public Works Director Clif O'Brien involved and no action by anyone was taken. Either way the legal question is -can the City come in pick up that fence, and hire someone to clean up the weeds, and then send the Odd Fellows a bill? Alderman Sarff asked how many citations have been issued! Chrissie responded, none! We have been very patient. Mayor Kevin R. Meade said the problem here is, if any work is done, who pays for it? Feaster's have offered the lot to the City to take over at minimal cost. City Attorney Chrissie Peterson said we can send a notice to level the lot, take down the fence, and have them get rid of the weeds and schedule a time this is to be done. Alderman Schenck commented he wonders if the Odd Fellows Building has more structural concerns? And we have never done a maintenance ordinance. The Legal & Ordinance Committee adjourned at 9:10 p.m. Community & Industrial Development. Update with Executive Director of SRPED Mark Rothert. Mark said he is working to get the information for the TIF pulled together with the Joseph Company. Had a meeting with Aaron Anderson city treasurer and Alderman Eric Schenck to explain the projected costs for Debt Certificates. Working with Arlan Higgs and others on the development in the west end of town at the Enterprise Drive Roadway area. A St. Louis Broadband Company is looking to expand their business in this area. 11 Creative marketing position we hired Dana Smith who has created a website, calendar events, videos have been created also. She also planned the open market. A total of 500 came to Canton and we had 30 vendors. Hope to have a monthly report on tourism by next month. Working with several businesses outside the community that are interested in expanding and working with locals wanting to expand in Canton. Also I'm currently working with a restaurant in town wanting to expand. Attended a meeting of Heart of Illinois Mayors, and we talked about current events. Working on a Landmark for the Cook Company. Will be attending the Illinois Development Council later in the week. Under way is a sod grant and we have step 2. The funding is using CDAP funds and is from the federal government. The Partnership office is going through their audit at this time. Downtown Lights - Kevi Slowey (Holophane) & Missy Towery (Chamber). Missy Towery from the Main Street Design Committee met with Kevin Slowey from Holophane. The committee selected the Washington Series and started with the Standard or Cross finial. They also recommended the leaf housing unit. Their choice for a base is the Bradford. The pole is a newer pole called the SiteLink. This TracPole is extremely versatile having the ability to hold all the extras. Extras to consider for building the SiteLink pole would be brackets for Banners and Baskets, Flag holders and Outlet boxes. This particular pole is also capable of holding street signs and stop lights. Kevin Slowey presented two street lights at the meeting to get an idea of how they look. One is $1,250 each complete and the Washington is $1,750 because of the large price glass available and takes a 400 watt bulb. Zz Alderman Sarff asked about smaller heads for the street lights and Kevin Slowey said we have any size and style. Keith Plavec said the Teska streetscape plan showed 160 poles. Mark Rothert had applied for 80/20 grant for $1.2 million for Phase 1. Mark said can't say will be successful as I have not heard from them at all. The state did receive some stimulus funding to help raise the amounts. We have a good chance to get some funding. Alderman Schenck thanked Missy Towery for the Main Street Design committee doing their part. This is a great job with two nice examples and an excellent product. Alderman Schenck asked for the Main Street Design Committee to continue on with this company. Missy said they would be happy to continue. Lake Use Resolution. Mayor Kevin R. Meade said we have not basically disgust the use of the Canton Lake when we are down to the aquifer. Brenda Dilts had asked the question - is the Canton Lake to be used for recreational purposes of water drinking purposes? City Attorney Chrissie Peterson commented that a decision can be made until the IEPA gives us the green light to drink the water. Alderman Schenck said we designed the water to be used as duly water supply. Brenda Dilts mentioned that the city's permit calls for the Canton Lake to be a back up portal water supply. We wanted something in writing that the Canton Lake will remain a duly system. Alderman Sarff said the permit was for the design for a back up and duly purpose, and have as available use. Mayor Kevin R. Meade said his assumption is we can draw from either place but can't mix the water. Water Treatment Supt. Greg Pollitt said we can switch every day, what the cost will be won't know yet. The Community & Industrial Committee adjourned at 7:25 p.m. 13 Negotiations, Grievance & Personnel. Insurance. Mayor Kevin R. Meade said there are two things to consider. The Insurance Committee recommended that the City allow the employees and or their dependents that have dropped the City's Health Insurance to have dental coverage at a cost of $5.40 per month, (which is twice the administrative cost to the City) to be charged to the employee. Alderman Sarff said our plan says you have to have both health insurance and dental. They are all Cobra eligible, and the city employees will take all or nothing. City Attorney Chrissie Peterson asked what if they drop single coverage? Alderman Sarff said this can be brought up for negotiations. Chrissie mentioned what about Life Insurance? Alderman Sarff said the city has always paid for that benefit at no charge. Alderman Scheck said insurance is a benefit. Mayor Kevin R. Meade said the second thing to consider is Domestic Partner Coverage. The Insurance Committee felt that with such short notice and the complexity of this issue they are unable to make a recommendation at this time on one way or the other. Alderman Sarff said this issue would be part of negotiations. City Administrator duties. Mayor Kevin R. Meade said this is in ordinance form and is basically the power of duties. Will have first reading next week and have second reading in August. I borrowed this from other communities and you read it over for discussion next week. Mayor Kevin R. Meade had City Treasurer Aaron Anderson give information on part-time help from Career Link. Aaron said we have Sarah Nicely who is 19 years old and she is a graduate of Cuba high school. She will be attending Spoon River College in the fall. The Negotiations, Grievance & Personnel committee adjourned at 9:25 p.m. 14 The regular scheduled Clerical Committee convened for executive session at 9:35 p.m. EXECUTIVE SESSION - TO DISCUSS -PERSONNEL; PENDING LITIGATION; AND, LAND SALE. The Executive Session for Personnel; Pending Litigation; and, Land Sale adjourned in open session at 10:05 p.m. ADJOURN No further business the Clerical Committee adjourned at 10:05 p.m. Recording Secretary, Nancy Whites, City Clerk 15