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HomeMy WebLinkAbout08-21-1984 Council Minutes 133 A regulax meeting of the Canton City Council was held on August 21st, 1984 in Council Chambers. PLEDGE OF ALLEGIANCE OPENED THE MEETING, FOLLOWED BY THE INVOCA- TiON GIVEN BY CITY CLERK NANCY WHITES. Ma.yor Edwards asked for roll call at 6:30 p,m. Present: Alder- men Kovachevich, Hammond, Savill, Sarff, Workman, Carl, May, Horr. Absent: None, MINUTE~ OF JULY 17TH MEETING. Motion by Alderman Kovachevich, second by Alderman Horr the minutes of July 17th be accepted and placed on file. Voice vo~e, motion carried. MINUTES OF AUGUST 2ND SPECIAL MEETING, Alderman Hammorid said that sin~e we had a mix up in the 4 loan agreements he believes that the ''4" should be changed to "2," Mayor Edwards said we had 2 versions of each, our 2 and the 2 of Canton Corporations. We weren't ready to pass their's and they weren't ready to accept ours, (D Motion by Alderman Hammond, second by Alderman Savill the minutes ~ be amended to read...the 2 versions of each loan agreements, Voice ~ vote, motion carried. rlotion by Alderman Hammond, second by Alderman Savill the minutes W as amended be accepted and placed on file. Voice vote, motion m carried. Q MINUTES OF AUGUST 7TH MEETING. Motion by Alderman Hammond, second by Alderman May the minutes be accepted and placed on file, Voice vote, motion carried. BTLLS FOR JULY, Motion by Alderman Kovachevich, second by Alder- man Hammond all bills be paid. Roll call, AYES: Aldermen Horr, May, Carl, Workman, Sarff, Savill, Hammond, Kovachevich. NAYS: None. Motion carried. 8 ayes 0 nays 0 absent. CONI~NIITTEE REFORTS : Loan Committee. Council Action None. Informational: The Loan Committee had a meeting~ this evening and thorougly discussed LaRoma Pizza's application, The committee will recommend ~o the city council that it be approved contingent upon several items which will be discussed on September 4th. Legal & Ordinance. Council Action None, Informational: Ron Reith Planning and Zoning Cha.irman, met with the committee and discussed proposed ordinance zoning changes, The committee referred ~Che changes to the city council and the city attorney to look over anc~ try to work out final details and then they would be referred back to the Plannin~ & Zoning Commis- sion for a public hearin~ to be held. Mr. Reith is suppose to get some information to Jim Malmgren City Attorney. Jim said he would have Rhonda Vogel secretary, get in touch with Ron Reith. We discussed the section of the code book concerning Budget & Administrative Director, which was referred to the committee by the mayor. We did ask that Dave Dorgan Budget Director, Jim Malmgren City Attorney and Cliff Sagaser City Engineer look at the two sections. We didn't feel that probably either one of the sections said what it was supposed to have said. Thought maybe they could clarify the section by getting togather, rather then having the section amended. We did ask Ray Hartle to look at a zonin~ violation on South 5th Avenue. Ray said he had checked it out and a letter is being 134 CONTINUED AUGUST 21ST, 1984 prepared to sent to them, Finance. Council Action Motion by Alderman Kovachevich, second by Alderman Sarff, that we pay tfie balance owed on the Soldwedel Lot in the amount of $39,500,00. Roll call. AYES: Aldermen Kovachevich, Hammond, Savi11, Sarff, Workman, Carl, May, Horr, NAYS: None. Motion carried. 8 ayes 0 nays 0 absent. Motion by Alderman Kovachevich, second by Alderman Hammond we accept the low bid of Kinkaid Stone for the sale of the scraper in the amount of $21,101,00, Roll call, AYES: Aldermen Horr, May, Carl, Workman, Sarff, Savill, Hammond, Kovachevich. NAYS: None, Motion carried. 8 ayes 0 nays 0 absent. Motion by Alderman Kovachevich, second by Alderman Car1 to accegt the bid of Basement Dewatering System for stone and epoxy overlay for the sidewalk on E, Elm Street in the amount of $8,492.00 and on ~he written gua~ati~ee they ~ill submit. Alderman Carl mentioned that at the meeting all of th~ merchants were present and they recommended this particular substance. Alderman Workman was wond- ering if we needed a more suitable base as the sidewalk was in terrible condition? Cliff Sagaser City Engineer said the base is not totally solid, i~ has a few holes in it, but this material will fill those holes up and make it solid, I don't see that pouring new concrete and then putting this stone and epoxy on top of it. i feel that this material has alot of strength itself and the side- walk carrysaload now, and will carry the load with this material on top of it. Mayor Edwards said ~hat 1/3 of the cost or upto $10.00 a foot will be paid by the merchants with 170 feet store front, and the balance paid out of Tax Increment. Roll call. AYES: Aldermen Kovachevich, Hammmond, Savill, Sarff, Workman, Carl, Horr, NAYS: Alderrnan May. Negotiations, Grievance & Personnel. Council Action Motion by Alderman Sarff, second by Alderman Savill the reccomm- endation of the committee the individual medical policies, pur- chased by the individual as a supplemental policy, and do not have coordination of benefit clauses, sha1L be exempt from coordination of benefits with this plan, and to be retroactive to the beginning date of the plan, which is May 1, 1983,and claims that have been coordinated under the original plan, shall be reimbursed for those exclusions. Roll call. AYES: Aldermen Horr, May, Carl, Workman, Sarff, Savill, Hammond, Kovacehvich, NAYS: None, Motion carried. 8 ayes 0 nays 0 absent. Motion by Alderman Sarff, secorid by Alderman Savill, the appoint- ment of Jim Watts to the Water Treatment Plant to full-time from part-time employment and Gary Orwig be hired as part-time meter reader at $4.00 an hour, Voice vote, motion carried. Community & Industrial Development. Council Action Motion by Alderman Carl, second by Alderman Kovacehvich, the reccom~iendation of the committee to accept the bid of James Booth in the amount of $1,295.00 for the demolition of the 445 E. Pine property. Roll call, AYES: Aldermen Kovachevich, Hammond, Sa- vill, Sarff, jaorkman, Carl, May, Horr. NAYS: None, Motion car- ried. 8 ayes 0 nays 0 absent. 135 CONTINUED AUGUST 21ST, 1984 Motion by Alderman Carl, second by Alderman Hammond the reccommen- dation of the committee to accept the bid of Stambaugh and Sons for demolitionof 45 South 4th Avenue in the amount of $960.00, Roll call. AYES: Alderman Horr, May, CarZ, [~orkman, Sarff, Sav- ill, Hammond, Kovachevich, NAYS: None, Motion carried. 8 ayes 0 nays 0 absent. COMMUNICATIONS FROM DAVE DORGAN - COMMUNITY DEVELOPMENT DIRECTOR AND BUDGET ADMINISTRATOR, I have been working with Empire Plow in Jim Malmgren's absence, Jim Malmgren City Attorney said that most ot the matters that need- ed to be reconciled between the two versions and hopefully Dcca loans and the HHS loan that related to questions of grammar and not of substance have b~en resolved. There are 3 or 4 matters of substance which I felt were major enough that I needed council guidance and was uncomfortable taking care of myself. Dave tells me that today he was advised that HHS loans can only be 25 years, so that's obviously a material change in the loan agree- ~ ment. That means the repayment figures are going to have to be N recomputed and the Canton Corporation attorneys are aware of that W change. They have made several recommendations to me which I would not accept on my own. authority, which I wanted to bring to m the council, Q As it stands now, the city would take a first mortgage on the Harvester building and Harvester real estate. As orginally pro- posed that security interest could not be assigned to anyone by the Canton Corporation without the city's prior consent. They orginally wanted ~o change that, so that could be changed without the city's consent and without supplying the city with replacement security, I told them I would absolutely not go along with that. Now their asking that a prevision be included so the security interest could be released to a maximum amount of $100,000.00 without replacement security. And that upon a subsequent request with additional security would be released, but would be replaced with other good and valuable security. I told them I thought that was much more reasonable and wota.ldbring to council for consid~ration. Also, the section under the agreement having to do with creation and retention of jobs has become some what controversial, The city's version requires that jobs be created and retained in the corporate limits of ~he city for the duration of the loan. Regardless of whether or not the loan is paid off in advance. They don't want to be locked in for thirty years. Council would have to consider this, I couldn't go along with this on my own and make any changes. Mayor Edwards asked the release of securities, we pretty much could go along with their changes? Jim Malmgren said the 200,000 square feet is much more plausible term then the other, and the reason they want the 200,000 square feet is that they feel they have someone who would rather come in immediately in the plant. My immediate reaction to them was that's fine, you would know doubt be paying us for the departure of the lease or the new company will be providing us wi~h a first mortgage on it and responsible to know one. Now their changing, they want 200,000 square feet to be released at their request without being replaced, and the balance to be released at their request for which would be replaced with addiCional security. Alderman Carl said shouldn't we have some control over the manner of release? I wuould fine it rather hard to accept that knowing the other terms and conditions of the loan, Mayor Edwards said that one of the people that's talked to them is PES, on a temporary building. Dave Dorgan said were going to be having trouble meeting the August 31st deadline. And also the state for that matter since we don't have a signed agreement, Alderman Savill said he agreed with Dave. Dave Dorgan said that he would recommend that the council go along ~aith the 200,000 square feet proviso in there with the agreement they would replace ~hat security it~. some manner, The other provi- sion, in terms of the job security, I think we could be delinquent in terms of leng~h unless the loa~. 136 CONTINUED AUGUST 21ST, 1984 in terms of leng~h of the loan, unless the loan's paid off, Jim Malmgren City Attorney said he wants everyone to understand it's not 200,000 square feet that's being replaced, it's 200,000 square feet which will not be replaced by anythin~. And then additional square footing beyond the 200,000 square feet which will be replaced by security. I~otion by Alderm~n Savill~, s~econd b~y Alderman Sar~f , t~l~at we amend our present agreement with Empire Plow in terms of both loan packages and ~.hey both hqve the same collateral that we release upto 200,000 square feet of our collateral on the facility without being replaced, if they provide adequate evidence that substantial ntiunber of jobs will be awarded. Also, that we nullify their creatiion of jobs to the term of the loan. Discu~.sion. ~~~lderman Carl said if we should have some decisidn on where the 200,OOD comes from? Alderman Savill said he would be very car~ful, we could be taking away control from them and decision making, and ~hat's to much, Roll call. AYES: Aldermen Kovachevich, Hamanond, Savill, Sarff, Workman, Carl, May, Horr, NAYS: None. Nlotion carried. 8 ayes 0 nays 0 absent. The Public Works union ratified and signed the Public Works contracts. In the Enterprise Indust~ial District, Cliff Sagaser has finished his project on the culvert, and I would take this time to compli- ment him and the depar~ment heads for a job well done. At a prior committee meeting we were asked to release a lien with Farmer's Home on the Grigg's property and some questions arose, they have offered the city $100.00 for the release of the lien. Motion by Alderman Carl, second by Alderman Hammond, council accept the $100.00 for the release of the lien on the Griggs property. Voice vote, motion carried. COMMUNICATIONS FROM CLIFF SAGASER - CITY ENGINEER, The city is doing some work on the 4th Avenue ditch in the north end of town. The ditch is being dug on the east side of the road, and if yo~ recall, the idea of ~Che ditch is to drain the water back to the north, taking it away from the ball diamond area because that's where all the water has be~n infiltraeling into our sewer system. They'll be other diCching if times permit on 4th Avenue on both sides~ of it, further to the north. Ch~stnut Street where the Scripps building was, were progressi~g steadliy, laying sidewalk on the south side this week. Archaeologist for the sewer project are in town, walked over part of the site today. Alderman Savill said he had some citizens concerned over the depth of the ditch on 4th Avenue. Cliff Sagaser said the depth of the ditch at i~'s bigg~st point is 7 foot. Alderman Savill feels a guardrail should be put up there and for Cliff to think about this, as Alderman Savill wants this discussed at the next committee meeting, COMMUNICATIONS FROM MAYOR EDWARDS. Mayor Edwards said tha~ Gayle Ellis will show the video film on Canton after the council meet- ing. OLD BUSINESS: ORDINANCE - TAX LEVY ORDINANCE. Second reading, read by ti~le. 13~ CONTINUED AUGUST 21ST, 1984 Motion by Alderman Kovachevich, second by Alderman Sarff, the ordinance be placed ott it's passage, Roll call, AYES: Alder- men Kovachevich, Hammond, Savill, Sarff, Workman, Carl, Ma.y, Horr. NAYS: None. Motion carried. 8 ayes 0 nays 0 absent. Ordinance being ~~1036. NEW BUSINESS: BIDS - CONSTRUCTION OF WATER AND SEWER LINES IN THE INDUSTRIAL PARK. A bid came into ~he city clerk's office after the 5:00 o'clock limit, according to the advertis:~mentwhich said bids will be in by 5:00 p.m. Dave Dorgan said approximately 5 min- utes af~er 5:00 p,m, a gentlemen walked in with it, he had diff- iculty finding city hall, Motion by Alderman Sarff, second by Alderman Hammond, the bid from Walker Excavating be accepted and opened with the rest of the bids. Voice vo~e, motion carried. Motion by Alderman Kovachevich, second by Alderman Hammond the ~ bids be opened, Voice vo~e, motion carried. The bidders are: ~ G, A, Rich & Sons, Inc. Water line $35,188.80 Sewer line $48,643.19 W - Bid secured with 5% bid bond, ~ Berwyn Henderson. Water line $31,735.86 Q Sewer line No bid Bid secured with 5% bid bond, Walker Excavating Co. Water line $28,602.40 Sewer line $42,011.15 Bic1 not secured with bid bond, Tngledue Exca.vating Water line $18,676.00 Sewer line $32,975.00 Bid secured with 5% bid bond. Wigand & Storrer Inc, Water line $26,800.00 Sewer line $39,402,50 Bid secured with 5% bid bond, Hillyer Excavating Water line $32,150.00 Sewer line $44,599.50 Bid secured with 5% bid bond, U.S, Engineering and Const.Water line $27,825.00 Sewer line $37,368,50 Bid secured with 5% bid bond. The engineer's estimate for water was $29,745.00, and the sewer estimate was $44,057.00. Dave Dorgan Communi~y Development Director said the limit on spending the money under hud guidelines is by the end of Septem- ber. Motion by Alderman Carl, second by Alderman Workman, th~ low bid of Ingledue for $18,676.00 for the water line and $32,975.00 for the sewer line and the city engineer and the city attorney check to see if the bidder meets all requirements be accepted. Dis. Mr, Tngledue said he could start work in 10 days, Roll call, AYES: Aldermen Horr, May, Carl, Workman, Sarff, Savill, Hammond, Kov- achevich, NAYS: Non~. Motion carried. 8 ayes 0 nays 0 absent. RESOLUTION - APPROUING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF CANTON AND THE CITY OF PEORIA. First r~eadin~, read by ti~le. Bob Molleck Chief of Police said this agreement was actually reached back in 1980. The police chief of Peoria, Il, hadl~nowsigned agreement on file concerning the leads contract. I searched the files and found nothing. I found an agreement in our files, apparently it was sent to us in December of 1980 and after Chief Story lef~C, and prior to my coming, know one knew what to do with it so it got buried in ~Che files, Motion by Alderman Horr, second by Alderman May the ordinance be placed on its passage. Roll call. AYES: Aldermen Kovachevich, Hammond, Savill, Sarff, Workman, Carl, May, Horr, NAYS: None. Motion carried. 8 ayes 0 nays 0 absent. Resolution being ~~1044. ~~s CONTINUED AUGUST 21ST, 1984 RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND ROBERT WHEELER 111. First readig, read by title. Jim Malm- gren City Attorney wants Co add a paragraph which should have been in both of ~Chem, but was omi~ted inadvertenly. It would reae...to the even~ ~here's some problem with title which the city city can't cure, then in its sole discretion, it may declare the agreement null and void. Very similar with the agreement we did with PES, One's a contract deed with Mr, Wheeler, and with LaRoma Pizza it is an out-an-ou~ purchase, and much more simple. Dave Dorgan said Mr, Wheeler owns property adjacent to our property in the Enterprise Industrial District, and he wants to expand his business, take approximately 3 acres out of lots 1 and 2, and it will leave an acre lot left for LaRoma Pizza, The purposed plan is to put in a truck stop with a terminal attached. There are several jobs involved, we have not specified the number of jobs. Mayor Edwards said that this resolution maybe should lay over un- til we know more about it, We need some kind of a 12 month period of reversion clause in there if they don't build in 12 months. Motion by Alderman Sarff, second by Alderman we adopted the resol- ution with the amendment that they build in 12 months. Discusson. Jim Malmgren Ci~y Attorney stated that he wanted to amend the agreement so that the title defect says the city at its discretion may cure it or consider the agreement null and void. Motion and second withdrawn, Mayor Edwards said lets lay it over to September 4th, Dave Dorgan recommends we go into the sale. Motion by Alderman Hammond, second by Alderman Kovachevich, the resolution be amended ~Co include the provision of building a building to take place in a twelve month period and to cause creation of jobs. Roll call. AYES: Aldermen Horr, Ma.y, Carl, Workman, Hammond, Kovachevich, NAYS: Aldermen Sarff, Savill, Motion carried, 6 ayes 2 nays 0 absent. Resolution being ~k 1045. RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND LAROMA PIZZA INC. First readig, read by title, John Mc- Carthy attorney for LaRoma, said this would be a business, the~~' going to erect a building which complys with the Department of Agriculture, It will be a 3,000 square foot building, they'll be selling form the building pizza's to various organizations for fund raising, The Loan Committee will act on the loan on September 4th. Motion by Alderman Carl, second by Alderman May the resolution be adopted with the amendment of the title defect, the city at it's discretion may cure it or consider the agreement null and void. Roll call. AYES: Aldermen Kovachevich, Hammond, Savill, Sarff, Wrokma, CArl, May, Horr. NAYS: None. Motion carried. 8 ayes 0 nays 0 absent, Resolution being ~k1046, Alderman Carl said he had trouble with resolutions like this in general, it mentions covenances we don't have yet, and these are past. Thers buildings are somewhat different then what the build- ings will be, what happens in that case? Mayor Edwards said in the covenance meetings were trying to keep it very general, were keeping it more in along ~he line with our zoning laws, but not as restrivtive, Were trying to encourage building their not discoura~e. Jim Ma.lmgren Ci~y Attorney reported tha~ the city council has absolute final authority on it since you have to pass any res- trictive covenant or land use restrictions placed on it. ADJOURNMENT: Motion by Alderman Hammond, second by Alderman Kovac hevich, to adjour~n.. Voice vote, motion carri~d. Council ad- journed at 8:16 p,m. E ~ APPROVED ~ ~ ~ Y