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HomeMy WebLinkAbout06-12-1990 Clericalfir' Clerical Committee City Counci I Charmers June 12, 1990 6:30 P.M. Members Present: Larry Sarff, Vic Kovachevich, Jerry Bohler, Kevin Meade Others Present: Don Edwards, Jim Malmgren, Cliff Sagaser, Bob Molleck, Bob DeRenzy, Cliff O'Brien, Gary Orwig, Will Taggart, Harry Steck, Ray McKinney, Butch Fuller, Chris Spears, John Froehling, Don Hopper Finance Committee Vic Kovachevich, Chairman The first item was addressed by the Mayor. He stated that Mike Conklin currently received $1200 per year for the taping and running of the City Council meetings on the local cable channel. Mayor Edwards stated that he would like to see the allotment increased to $200 per month. A motion was made by Larry Sarff and seconded by Jerry Bohler to increase Mike Conklin's allotment to $200 per month. Discussion. Will Taggart stated that he and Mike had talked about constructing an equipment booth. The Committee asked for cost estimates on this item for the next meeting. Voice vote. Motion carried. Truck bids were next. A motion was made by Larry Sarff and seconded by Kevin Meade to open the bids received. Voice vote. Motion carried. The bids were as follows: Coleman's Locks's S & K Chevrolet One New Truck $15,998.00 $19,749.00 $17,484.19 Two New Trucks $31,996.00 $39,498.00 $34,968.38 The Committee discussed the need for two new trucks and the jobs the vehicles would be used for if purchased. Cliff O'Brien presented the background on the reasoning why bids were for two new trucks. A motion was made by Jerry Bohler and seconded by Vic Kovachevich recommending to the City Council the purchase of one new truck from Coleman's for $15,998.00. Discussion. Voice vote. Motion carried. The next item of discussion was the test holes and test well on the Banner property. Cliff Sagaser stated that the test holes would cost $1200 each or $3600 for three holes. The Committee discussed the cost if water is found in the first test hole and the well was installed. Discussion followed concerning the 1 justification in waiting to drill the test holes in comparison to the immediate need for an additional water source. A motion was made by Kevin Meade and seconded by Larry Sarff recommending that if the bids are good for 60 days, the matter be tabled to the next meeting. Voice vote. Motion carried. Bob DeRenzy addressed the Committee concerning the repair or replacement of a water tank on a fire truck. He stated that the lowest quote he received to replace the tank would be $3621.00. This is for a 500 gallon tank with a 20 year guarantee. Bob stated that the estimated cost to repair the tank is $716.00. He informed the Committee that if the tank is repaired there is no guarantee how long it will be before it begins to leak again. A motion was made by Larry Sarff and seconded by Jerry Bohler recommending the purchase of a new 500 gallon poly tank from United Plastic Fabricating Inc. in the amount of $3,621.00. Voice vote. Motion carried. The next item was addressed by Ray McKinney concerning the possibility of a lease/purchase of equipment. I-le asked that this item be tabled to the next meeting. Committee agreed. Ray McKinney addressed the Committee with a request to replace a valve control on the raw water valve on the main accelator in the amount of $1,066.00. A motion was made by Larry Sarff and seconded by Kevin Meade recommending approval of the purchase. Voice vote. Motion carried. Ray McKinney informed the Committee that the wash valve on number 8 filter was originally installed in 1939. He stated that this valve is beginning to give them problems and he would like to replace the valve with a butterfly valve. The cost is $1548.00. A motion was made by Kevin Meade and seconded by Jerry Bohler approving the purchase of the valve. Voice vote. Motion carried. Ray McKinney addressed the Committee with a request to repair or replace a cadet mower at the lake. He stated that he received quotes on the engine replacement and the law quote is $1077.00. He stated that he would like to look into the possibility of purchasing a new mower. He stated that he had talked with Pat Wright and she has informed him that the funds are available. Discussion followed. The Committee instructed Ray McKinney to look at the mowers, and have sealed bids at the next City Council meeting, if possible. A bill for Canton Industrial Corporation was discussed next. Ray McKinney informed the Committee that this was a bill from last winter. He had called the meter company, they had checked the meter and found that it was running approximately 13% fast on the medium flow on the high side. He stated that if the bill is reduced by 19°l0 or $1,129.43 the balance of the bill would be $6,400.10. Chris Spears asked if the triple rate was assessed on this bill. I-le also stated that past practice has been to have 2 single rate on the water and an average sewer bill. Larry Sarff asked if the 15% discount or the single rate would be lower. Larry also asked if this meter would have been running fast since its installation. Ray McKinney stated that an incorrect gear was put in the meter when it was rebuilt and installed for CIC. Ray McKinney stated he would check further into the matter. The Zink farm was discussed next. Mayor Edwards stated that the Council had determined $25.00 per acre for farming the land would be acceptable. He stated that the prior tenant has informed him that $15.00 would be the amount he would be willing to pay due to the lateness of the year. Discussion followed. Ray McKinney stated that he had had one inquiry. A motion was made by Jerry Bohler to have the second prospect provide a price they are willing to lease the ground for and the tease be presented to the highest offer. Seconded by Larry Sarff. Voice vote. Motion carried. The fire department window was next on the agenda. Bob Molleck stated that he is not in favor of a skylight in the ceiling. Discussion. A motion was made by Larry Sarff and seconded by Vic Kovachevich to drop the request for the window. Voice vote. Motion carried. Will Taggart addressed the next on the Public Safety Building would like to get it done this $1134.00. A motion was made by Bohler approving the purchase o vote. Motion carried. item. He stated that the parapet did not get coated last year and year. The cost of the material is Larry Sarff and seconded by Jerry f the material for the roof. Voice Bills were next. A motion was made by Jerry Bohler and seconded by Kevin Meade recom~nending the bills be approved as presented. Voice vote. Motion carried. Mayor Edwards informed the Committee that he has been told that a petition is being circulated to close the north entrance of Big Creek Park. The petition is being circulated by residents of North Park Drive due to speed problems in this area. Cliff Sagaser addressed the Committee concerning a request from Graham Hospital. They are wanting to know if the city is willing to participate in pouring the 18" of concrete from the existing sidewalk to the curb with the installation of new curbing at the entrance of the hospital. Cliff stated that telephone line is being installed and the contractor has to put the sidewalk back as it was. The 18" area is a grass strip between the walk and the curb. The consensus of the Committee was to not participate in the venture. Ray McKinney stated that he had presented an outline of the well expenses and asked the Committee to look it over. Committee agreed. 3 Gary Orwig requested permission to go out for bids for a new/used truck for the sewer department. The Committee instructed Gary Orwig to investigate the possibilities of a used truck and bring his findings back to the committee. No further business was discussed and the Finance Committee was adjourned. Negotiations, Grievance and Personnel Committee Larry Sarff, Chairman The first item on the agenda was the salary adjustment for Gary Orwig. Chris Spears stated that he was asked to check into the matter. He found that the increase for Gary was discussed in executive session in May 1989 but no formal action to increase his pay by $683.00 was taken by the Committee. A motion was made by Kevin Meade and seconded by Larry Sarff to increase Gary Orwig's salary by $683.00. Voice vote. Motion carried. The next item on the agenda was a hearing concerning a grievance filed by the public works union. The grievance requests heavy equipment operators pay for Mike Meade in conjunction with operating the sludge truck at the wastewater plant. Sam Swickert, representative for the union, stated that the incident happened on May 15th and the grievance was filed on May 17th. Larry Sarff stated that the City Clerk had written a memo stating that no one has been or is presently being paid for heavy equipment pay for the operation of the sludge truck. Larry Sarff stated that Joe Carruthers is classified as a heavy equipment operator in conjunction with the operation of equipment such as the dozer and backhoe as well as welding. Ray McKinney stated that he was present during the negotiations of the original public works contract and the intent of heavy equipment operators pay was for the street department personnel. He stated the water and sewer plants have different classes of licenses which was intended for advancement in these departments. Joe Carruthers stated that he had operated the backhoe, kept track of his time of operations and presented that information to his supervisor, past employee - Larry Dutton. Mr. Dutton then made arrangements to reclassify Joe Carruthers as a heavy equipment operator and was given the appropriate pay. Jim Malmgren stated that he felt that Larry button's testimony may be critical to the determination of this grievance. He suggested that the matter be carried over and allow both sides to review material and allow Larry Dutton the opportunity to provide testimony relative to the grievance. Both sides agreed. A mutually agreed time will be determined upon Sam Swickert talking with Larry Dutton. No action was taken at this time and the matter was tabled. 4 No further business was discussed and the Negotiations, Grievance and Personnel Committee was adjourned. Community and Industrial Development Committee Kevin Meade, Chairman The first item of discussion was the Director's Report. Chris Spears stated the maintenance fee for the patent for the process developed by IPRI is due by June 16, 1990. The amount is $250.00. He stated that this is the same patent Wellman, Inc. has tried to purchase and the city objected. Jim Malmgren stated that this item may want to be held until the executive session due to additional information. Committee agreed to table the item until the executive session. Chris addressed the Committee concerning a request from Eric Matthews to borrow tax increment financing (TIF) money for the rehabilitation of part of his building. Chris stated that Pat Wright has told him there is $56,000 in the TIF account. Mayor Edwards stated that the city had talked about this before and had decided they do want to set up a revolving account for the TIF money in the down town using the same guidelines as existing loan accounts. The present loan accounts require 133% collateralization. Discussion followed. A motion was made by Larry Sarff and seconded by Jerry Bohler recommending the guidelines be set up for a TIF revolving loan fund the the downtown area. Voice vote. Motion carried. The Committee discussed the recommendations of the Ad Hoc Committee concerning the railroad depot and the bandstand in Jones Park. Chris Spears stated that it would take considerable time and funds to renovate the depot but he had talked to the warden at the prison and was informed that they could provide five inmates to help scrape and paint the depot. He stated that the building trades have expressed an interest in a project in Canton and thought the renovation of the depot would be appropriate. Mayor Edwards stated that Steve Varnes, past president of the Jaycees, and the Moose Lodge have expressed interests in taking the bandstand project over and getting the bandstand constructed. Discussion followed concerning the design of the bandstand. No formal action was taken on the items at this time. The Canton Industrial Corporation request was next. Mayor Edwards stated that Nelson Carlo, in a letter dated May 30th, stated that it has become more apparent that the prior management had mismanaged the company and damaged its reputation. He requested the city not access any of the Frri-IA loan against this new CIC company and to request forgiveness of the $400,000 federal loan. The city did ask Farmers Home Administration for a determination on this request. The reply indicated that the Fmt-W did not have 5 '~r++' the authority to forgive all or any portion of the city's loan. Mayor Edwards stated that the city has the debt obligation to FrrHA not CIC. The City has to pay the payment regardless of whether CIC pays their payment or not. Mayor Edwards stated that Nelson Carlo is also asking for forgiveness of the $400,000 DCCA loan as well. Larry Sarff stated that with the changes in the laws, if the plant closed and the city retained ownership of the buildings and land and concerning hazardous waste, the city may not be in the best advantage in having the land. Kevin Meade stated that if the loans are forgiven and the company folds, the city still has the debt. He suggested a trade off. Something where if the company makes a profit, the city gets something - at least the initial investment. Otherwise the city forgives the loan, the company makes and the city still has to pay the $400,000 and has nothing in return. Jim Malrngren stated that this is not a new company but the same company with different management. He stated he would like to know what the other lenders are doing. Vic Kovachevich stated that he felt there was no question on the $400,000 federal loan. The city is not able to forgive the indebtedness. Harry Steck stated that he would not want to forgive either loan. The only way he would consider forgiving the loans would be if they were tied to something tangible. Discussion. A motion was made by Jerry Bohler recommending denial of the requests but emphasis that the city is still willing to work with the company. Seconded by Vic Kovachevich. Discussion. Mayor Edwards stated that a letter would be sent to Nelson Carlo concerning this matter. Voice vote. Motion carried. A request from Phillips & Associates was discussed next. Bitl Phillips addressed the Committee with a brief outline of the two Phillips & Associates loans from the city. He stated that the first loan was in the amount of $75,000. He stated that the payments are current. The loan documents contained a "balloon" of $60,937.50 to be paid in June 1990. The second Phillips & Associates loan was for $29,000, the payments are current and has an unpaid balance of $8,880.00. Bill Phillips stated that they are requesting the city to allow the account to be extended, they pay interest payments now and in December 1990 and the "balloon" to be payable in June 1991. When asked about Active English, Bill stated that it has not moved along as well as they would have liked, but several patents are pending and shows are scheduled to demonstrate their program. He invited anyone interested to visit their office and see the system. Jim Malmgren stated that the collateral on the loans had become somewhat unbalanced between the three loans. He stated that one loan had a substantial amount of collateral and suggested that the collateral in place be spread evenly over the three loans. Discussion. A motion was made by Larry Sarff and seconded by Vic Kovachevich to accept the request to extend the balloon and to spread the collateral evenly over the three loans. Voice vote. Motion carried. 6 No further business was discussed and the Community and Industrial Development Committee was adjourned. Legal and Ordinance Committee Jerry Bohler, Chairman The first item of discussion was the requirements of a quorum for City Council meetings. Jim Malmgren asked that this item be tabled. Committee agreed. The next item was the review of the building permit fees. Chris stated that he was asked to check and see what communities he had contacted include all aspects of the building such as plumbing, heating, air conditioning, electrical etc. in their building permit fees. He stated that he found that all but two of the communities he contacted include all aspects of the building in the fee schedule. Discussion followed. Harry Steck asked Cliff Sagaser if he had contacted any communities to see what building code they used. He stated that he did not but would contact them by the next meeting. This item was tabled for further review and discussion. The next item of discussion was the affirmative action plan. Jim Malmgren stated no new information is available at this time. The Committee tabled the ordinance to the next meeting. Jim Malmgren stated that no additional information is available at this time for the bed and breakfast ordinance and asked that this item be tabled. Committee agreed. The Liquor Ordinance was next on the agenda. Jim Malmgren stated that the aldermen had copies of the comparison of the current and proposed liquor ordinance for their review. He stated that no additional information was available at this time and asked that this item be tabled to the next meeting. Committee agreed. A proposed burning ordinance was reviewed at this time. Jim Malmgren stated that this item was tabled to allow the Fire Chief to review the ordinance. Bob DeRenzy stated that he had no problems with the ordinance. A motion was made by Larry Sarff and seconded by Kevin Meade to refer the ordinance to the next City Council meeting. Voice vote. Motion carried. The Betterment Commission review was next. No additional information was available at this time and the matter was tabled to the next meeting. 7 Bob DeRenzy addressed the Committee at this time. He stated that he had been conducting electrical inspections for many years and charging $2.00. The inspection is of the electrical box on the outside of the house only. He stated that the inspection is done in accordance to CIPS requirements. He stated that if the box is not correct CIPS will not hook the meter up. He suggested that the inspections be abandoned. Discussion followed. Bob stated that an ordinance requiring the inspection was not found. A motion was made by Larry Sarff recommending no further electrical inspections by made by the Fire Chief and to notify CIPS of this change in policy. Seconded by Vic Kovachevich. Voice vote. Motion carried. Jim Malmgren addressed the Committee concerning the ordinance concerning codification. He stated that with the codification of Chapter 95 1/2, the city would be prosecuting the moving violations which would result in more money for the city if the moving violation is prosecuted as an ordinance violation rather than a state statute violation. Discussion followed. A motion was made by Larry Sarff and seconded by Kevin Meade to refer the ordinance to the City Council for consideration. Voice vote. Motion carried. A complaint concerning the use of a city parking lot was next. Jerry Bohler stated that the parking lot adjacent to the beauty academy has had broken bottles etc. and the owner of the adjacent building states that people are coming into her lot, breaking bottles and climbing up onto the building. Discussion. Bob Molleck stated that he will distribute a memo to his personnel to watch this lot more closely. At this time a motion was made by Larry Sarff and seconded by Kevin Meade to convene in executive session for the purpose of imminent, threatened and/or pending litigation and land acquisition. Voice vote. Motion carried. Executive session minutes are on file for review. The Committee reconvened in open session. No further business was discussed and the Legal and Ordinance Committee was adjourned. Kayma Duncan - Committee Secretary 8