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HomeMy WebLinkAbout01-22-2013 Mechanical Committee Minutes MECHANICAL COMMITTEE OF CANTON CITY COUNCIL Tuesday, January 22, 2013 7:18pm Donald E. Edwards Way Historic Depot 50 N. 4th Avenue Canton I161520 Aldermen in attendance: Aldermen Pickel, Hartford, Schenck, West, Fritz, Ellis, Nelson, Pasley Aldermen Absent: Staff in attendance: Attorney Chrissie Peterson, Mayor Kevin Meade, City Clerk Diana Pavley, Treasurer Nicole Marter, Comptroller Caty Campbell, Fire Chief Keith Frank, Police Chief Dan Taylor Others in attendance: Ken Barker, Trent Mahr Media in attendance: The Daily Ledger, Journal Starr Video Services by: Joe Ginger PUBLIC SAFETY & TRAFFIC ALDERMAN JIM HARTFORD, CHA/RMAN POLICE REPORT • The bicycle patroi attended the Canton Rotary Club for a presentation. • Search warrant execution at 266 East Olive. The entry team recovered $1500.00 in cash, 33 grams of cocaine and seized a vehicle during the warrant. • Lisa Madigan started a program called Operation Glass House in 2010. The program is aimed at apprehending child pornographers and those involved in distributing and viewing videos involving young children. A search warrant on East Chestnut Street resulted in the arrest of a 23 year old Canton man for child pornography. FIRE REPORT The job descriptions have been updated for the entire fire department. Engine 2 is in service and is being used. The vehicle did not pass the pump test. The mechanic is currently working on the vehicle. The public safety and traffic committee adjourned at 6:33 pm. STREETS & GARBAGE ALDERMAN JUSTIN NELSON Adjourned at 6:34 LAKE, BUILDINGS & GROUNDS ALDERMAN ERIC SCHENCK, CHA/RMAN Adjourned at 6:34 PUBLIC WORKS, WATER & SEWER ALDERMAN GERALD ELLIS, CHA/RMAN JUNIPER STREET STORM SEWER RELOCATION This issue was brought up approximately one month ago about a storm sewer that is on a resident's property instead of in an easement. The old survey plats reveal that the storm sewer is not in the easement as it should be and the work originally took place in the 80's. The owner asked if the storm sewer could be relocated. The sewer currently goes under a retaining wall. A contractor estimated $15,000.00 to relocate the storm sewer. City Engineer Keith Plavec stated that with approval quotes would be received for the project. This would be paid from the general fund dollars. Motion and second were made by Aldermen Ellis/Hartford to send the request to Council to go out for bids for the project. The motion carried by voice vote and was unanimous. APPLICATION FOR PAYMENT FROM REYNOLDS FOR THE RADIAL COLLECTOR WELL The repair needed is on pump # 2 at the radial collector well. Layne was the authorized pump supplier. The quote for the repairs was between $19,000.00 and $22,000.00. The invoice submitted was for $19,201.00 to repair the pump and reinstall the pump. Motion and second were made by Aldermen Ellis/Nelson to send the request to Council for consideration. The motion carried by voice vote and was unanimous. WTP AUDIBLE ALARM IMPROVEMENT BID RESULTS Currently if the air compressor would shut down an audible alarm is not in place to alert the department of a problem. A screen would display a problem, but if an operator is not standing near the display screen it could go unnoticed. The request is to install an audible alarm. Advanced Electric did not submit a quote. Quick submitted a quote in the amount of $3,200.00 to provide the materials and do the installation. To have programming done a fee of $2,929.00 was obtained from Engineering Fluids. Motion and second were made by Aldermen Ellis/Hartford to send the request from Quick Electric in the amount of $3200.00 to Council for consideration. The motion carried by voice vote and was unanimous. Motion and second were made by Aldermen Ellis/Hartford to send the request to Council for $2,929.00 from Engineer Fluid Inc. The motion carried by voice vote and was unanimous. 2011 MFT/ASH STREET SIDEWALK IDOTS FORMS: • Revised Municipal Maintenance Exaenditure Statement • Suaplemental Resolution • Suaplemental Authorization • En~ineerin~ A~reement • Final Reaort Motion and second were made by Aldermen Ellis/Schenck to send the request to Council for approval. The motion carried by voice vote and was unanimous. DISCUSS CONSIDER AND VOTE ON A DEMOLITOIN AGREEMENT WITH THOMAS HICKS REGARDING 323 JOHNSON COURT A structure located at 323 Johnson Court was declared dangerous and unsafe. This is a two story structure with boarded windows and doors. Mr. Hicks recognized that the home needed demolished, but is not in a financial position to do so. The cost is approximately $7,000.00 to demolish the property. Mr. Hicks would enter into a payment agreement to pay $200.00 per month until paid in full. A lien would be filed on the property. The demolition fund currently $7100.00 in the budget. Motion and second were made by Aldermen Ellis/Nelson to send to Council for consideration. The motion carried by voice vote and was unanimous. CANTON CROP SERVICES UTILITY REQUEST Ken Barker and Trent Mahr addressed the Mechanical Committee last month requesting a lower water rate for their water only usage at their new business in the Industrial Park. Keith Plavec provided the following report on our existing rates for your information. He worked with a local contractor to obtain budget construction costs and Bill Terry to obtain a number for tapping the existing water main and the water billing department to obtain meter costs and connection fees. At the Committee Meeting on December 18, 2012, Ken Barker stated that they were not interested in obtaining assistance from the City to install water and sewer services or reduce the City's connection fees. Instead, Mr. Barker asked the Committee to consider reducing their water rate. Mr. Barker stated that they anticipate using approximately 500,000 gallons per year and possibly up to 1,000,000 gallons per year for their fertilizer business. Committee heard this request and asked City staff to provide information to them regarding current water customers and rates. Keith and Greg together provided the following information: Estimated Cost for Purchased Water Mr. Barker stated that Canton Crop Services estimates they will purchase between 500,000 and 1,000,000 gallons of potable water per year. The property is located within City limits so single water rates will apply. The following is the cost to purchase water from the City: • 500,000 gallons per year =$3,418 per year • 1,000,000 gallons per year =$6,793 per year Water Rates The City of Canton charges single water rates on all residential and commercial accounts within City limits. The City also charges all communities that purchase water from the City single water rates based on water purchase agreements that were established in the 1980's and 1990's. Other water users outside of City limits all pay double water rates. When Central Illinois Energy (CIE) was originally formed, CIE negotiated a water contract with the City to obtain a reduced water rate. When CIE energy filed for bankruptcy and the plant was purchased by another entity, the water contract was no longer in force. When Aventine Renewable Energy purchased the ethanol plant, they paid double water rates. The City does not currently have any water customers that pay less than single water rates. Lar~est Water Customers The following is a list of the eight (8) largest water customers, their water usage for 2012 and percentage of total water usage by the City for 2012: Water Customer 2012 Water Usage (gallons) Percentage of Total Water Usage Illinois River Correctional 80,531,000 15.91 Facility City of Cuba 59,693,000 11.78 St. David/Dunfermline 27,400,000 5.41 Graham Medical 16,699,000 3.30 Village of Fairview 15,534,000 3.06 Canton Ready Mix 15,327,000 3.02 Aventine Renewable Energy 4,704,000 0.92 Renaissance Care Center 2,687,000 0.53 Our Water and Wastewater Department is an enterprise fund. It relies solely on the income of water sales and wastewater services for its revenue. Financially, the operations are structured for the customers of the services to pay the costs to operate based on usage of the said services. This is the least regressive way for our users to offset the cost to operate our utilities. If you use more water......you pay more for the service. Although we do have a minimum charge per account, the structure of our rate ordinance is to charge a rate for wastewater that is based on water usage. Although our wastewater account users may have times they have water usage and little or no discharge into the sewer, this is an accepted way most water & sewer utilities structure their rates for users to pay for the overall services of the two. Any variation from that rate structure, other than water only customers, places a financial burden on the rest of the water and sewer customers - our citizens. Any reduction in the current rate structure to provide a lower price to larger volume users would further place an inequitable burden on the regular water and sewer customers. Therefore, my recommendation is to not provide a lower cost to Canton Crop Services. Ken Barker explained that he would need a three inch water line. The City is not capable to accommodate this request, so Ken obtained bids for the cost. Ken explained that he ordered a meter. Discussion previously took place about paying for the water used. The vast majority of the water will be sprayed on fields; the domestic use would go back to the sewer system. The request is to pay for water used, where it was used. Ken stated that he is not asking for different treatment, but would just measure the amount used, and pay for it. Alderman Schenck asked if the City currently has anyone that pays for just water and not the sewer. Greg Pollitt explained that it's been done on commercial accounts and it's been done very rarely. Further discussion took place about the concern of approving this and opening the door for other businesses to make the same request. Alderman Schenck further explained that the City needs to have some type of policy in place to make rules that would be clear and equitable to everyone. Motion and second were made by Aldermen Nelson/Hartford to send to Council without recommendation. The motion carried by voice vote and was unanimous. WATER PLANT REPORT WTP Superintendent Greg Politt provided the following report: The City continues to deal with a hardness issue with the City water supply. During the last month the water department continued to meet with consultants to discuss chemistry issues. Galesburg has used a collector well since 1958, so Greg visited Galesburg to discuss some solutions. This Thursday some additional chemists are coming to the water plant to look at using some other chemicals to remedy the problem. Keeping a balance between controlling bacteria and bringing the hardness numbers down is a constant process that is currently being analyzed. Mayor Meade explained that it's important for people to realize that it is the City's top priority to correct the hardness problem with the water. The City is taking this problem seriously and currently working with chemists. It is unsure on how long the process could take. Alderman Fritz suggested putting a comment on the water bills to notify residents that the City is taking action to correct the problem. City Treasurer Nicole Marter explained that $1,000.00 of past due water bills have been collected since the local debt recovery program began. Nicole explained that the new software will help prevent the uncollected water bills from continuing to be a problem in the future. Payments can be sent to Hy-Vee, MidAmerica National Bank or sent directly to Nicole at the City building. Nicole Marter explained that she is cleaning up items in preparation of getting ready for the new software. Nicole stated that it is a lot of work and she is willing to do the extra work required. Aldermen Nelson stated that it seems like a lot of work for a relatively small amount of money. The City just wrote off a higher amount of money for another project than what is to be collected on this project. Further discussion took place regarding concerned citizens contacting various Aldermen with questions and concerns on collecting debt from over 6 years ago. Alderman Schenck explained that the State is the agency that will be collecting the debt and it would be due diligence for the City to utilize the program. In the past the City did not have a way to collect on the past due bills without going to court. This process will help collect where before it was less likely to collect. ADJOURNMENT Motion and second were made by Aldermen Hartford/Ellis to adjourn without the need for executive session. The motion carried y voice vote and was unanimous. , r Diana Pavley City Clerk