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HomeMy WebLinkAbout03-05-2013 Council Meeting Minutes A regular meeting of the Canton City Council was held on March 5, 2013 at 6:30 pm in the Council Chambers, The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. Aldermen in attendance: Dave Pickel, Jim Hartford, Craig West, Gerald Ellis, Justin Nelson, Jeffrey Fritz, Eric Schenck Aldermen absent: Aldermen leremy Pasley Staff in attendance: City Treasurer Nicole Marter, City Attorney Chrissie Peterson, Mayor Kevin Meade, City Administrator Jim Snider, City Clerk Diana Pavley, Comptroller Caty Campbell, Fire Chief Keith Frank, Police Chief Dan Taylor, Planning and Zoning- John Kunski, Economic Development Director Missy Towery Media in attendance: Daily Ledger Video Services by Joe Ginger Others in the audience: PLEDGE OF ALLEGIANCE OPENED THE MEETING FOLLOWED BY THE INVOCATION GIVEN BY CITY ADMINISTRATOR JIM SNIDER ROLL CALL Yes No Absent Alderman Pickel X Alderman Hartford X Alderman Schenck X Alderman Pasley x Alderman West X Alderman Fritz X Alderman Ellis X Alderman Nelson X PUBLIC PARTICIPATION CONSENT AGENDA Minutes of Council meetin~ held Februarv 19. 2013 Minutes of Mechanical Committee meetin~ held Februarv 26. 2013 Motion and second was made by Aldermen Hartford/Pickel to accept the minutes as presented and be placed on file. The motion carried by voice vote and was unanimous. COMMITTEE REPORTS: PUBLIC SAFETY & TRAFFIC - ALDERMAN JIM HARTFORD, CHAIRMAN STREETS AND GARBAGE- ALDERMAN JUSTIN NELSON, CHAIRMAN LAKE BUILDINGS & GROUNDS - ALDERMAN ERIC SCHENCK, CHAIRMAN • 61 East Side Square -Upstairs Condo Development Motion and second were made by Aldermen Schenck/Pickel to have the Spoon River Partnership work at (ocating a developer to create condo's in the 2"d story of 61 East Side Square. Alderman Nelson expressed some concerns at just developing the 2"d store of the building and indicated that he would not vote for the proposed item. Aldermen Nelson further explained that the City needs to look at developing the entire building. ROLL CALL Yes No Absent Alderman Pickel X Alderman Hartford X Alderman Schenck X Alderman Pasley X Alderman West X Alderman Fritz X Alderman Ellis X Alderman Nelson X The Motion Carried. • State Code Enforcement Law Update- John Kunski John Kunski explained that the State of Illinois recently passed into law the new state energy code which will be the 2012 energy code. Prior to 2000 depending on the location in the country, there were different types of building codes. The International building code creates a consistent code to be used throughout the country. The International building code was first created in the year 2000. The code is reviewed every three years. In 2009 it became effective to apply the code to commercial and residential properties. The City has been enforcing the 2009 energy code. According to the department of energy, they felt if you were enforcing the code 10.8 percent energy was saved. The 2012 code will save 32.1% energy. The savings is recognized by increasing the installation in properties, installing higher efficiency appliances, lighting, less air exchanges--- which all comes at a cost. January of this year it became effective that we enforce the 2012 energy code. Some of the things being reviewed in the new code are changing residential properties from an R38 up to an R 49 in the ceiling. The side walls cavity from a wood frame wall must be an R20. In the past the majority of the homes had 2x4 construction. The highest R value you can get in the cavity is an R15. You would then either have to go to a 2x6 framing or do additional installation on the exterior of the wall. What has most of the builders upset are the homes are built so tight that now you have to introduce mechanical error exchanges into the house. We as a community have no choice and we have to do it since it is state law. The department of energy is telling everyone that they will work with everyone during the changes. It will be an evolutionary process that will have to be worked through. The state is currently putting on free classes and seminars. The act does say it affects any remodeling that opens up the stud cavity or opens the attic area. Any replacement of equipment must comply with the code requirement. Any portion of the building that is not being remodeled can comply with the old code. The law applies uniformly to the County and the City. All contractors must comply with the new code. PUBLIC WORKS WATER & SEWER - ALDERMAN GERALD ELUS, CHA/RMAN • Structural demolition and asbestos removal of 42 West Chestnut Street The City received two bids for the structural demolition and asbestos removal at 42 West Chestnut. One bid from Chuck Kinsel excavating was received in the amount of $69,000.00 and the second bid was received from River City Construction in the amount of $45,750.00. Alderman Ellis recommending accepting the low bid from River City. Motion and second were made by Aldermen Ellis/Nelson to approve the low bid from River City in the amount of $45,750.00 from the Tlf funds. ROLL CALL Yes No Absent Alderman Pickel X Alderman Hartford X Alderman Schenck X Alderman Pasley X Alderman West X Alderman Fritz X Alderman Ellis X Alderman Nelson X The Motion Carried. • Temporary relocation of Dumpsters request at 42 West Chestnut Street- Alley behind West Side of Square Motion and second were made by Aldermen Ellis/Nelson to relocate the dumpsters at the property of the old Feasters that the City owns for the time period of the demolition. The motion carried by voice vote and was unanimous. COMMUNICATIONS FROM MAYOR KEVIN R. MEADE FYY14 General Fund Bud~et Report- Jim Snider A copy of the draft general fund budget was sent for review. Next Tuesday night will be a work session at 5:30pm for the budgets. Sales Tax-Our local share of Sales Tax receipts is forecasted to be $2,600,000. (The State distributes 1% of the basic 6.25% sales tax for retail sales and general merchandise and 100% of the collections from the 1% state rate for sales of qualifying food, drugs and medical appliances to the respective municipality. Additionally, the City receives an additional in sales tax. This 1/5% sales tax was institute by referendum in 2003 to provide for property tax relief.) The FY14 budget amount is the same as we budgeted in FY13. Although our FY13 revenue is trending towards $2,600,000 the City Administrator explained that he is anticipating sales tax numbers for March will show an increase from the December 2012 holiday sales. Local retail sales tax revenue represents a third of our general fund revenue. Replacement Tax-The local share of the Corporate Personal Property Replacement Tax is projected at $194,000 (The Replacement Taxes are venues collected by the State of Illinois and paid to local governments to replace money that was lost by local governments when their power to impose personal property taxes on corporations, partnerships, and other entities was taken away in 1979. Corporations pay 2.5% tax on income, partnerships, trusts and S Corporations pay a 1.5% tax on income. 48% of the state receipts are distributed to downstate counties, while Cook County receives 52% of all funds received.) This revenue stream is trending 7.6% less than forecast. The national and state recession impacted this fund for the year. The national economy is showing signs of improving. I am only forecasting a more conservative amount of $200,000 for FY14. One additional area of concern with this revenue stream is the State of Illinois skimming 1% of our revenue from this fund. We all should be concerned that they will now find the path to tapping into our revenue with less resistance going forward. Use Tax-We are projecting to receive $220,000 in Local Use Tax. (The Use Tax is a tax imposed on the privilege of using, in Illinois, any item of tangible personal property that is purchased anywhere at retail.) Since this has exceeded revenue forecast by 4.8% the City Administrator is increasing this category to $225,000 for FY14. Income Tax- State Income Tax Revenue for the City is projected at $1,500,000. (The local share of the State Income Tax is paid on a per capita basis. Municipalities and counties receive 1/12 (8.3%) of the net tax receipts collected by the State up to the old income tax rate of 3%.) Utility Tax- By local ordinance, we receive a 5% utility tax on electric and natural gas usage in the City. The utility companies asses the tax and we receive the revenue from them. We have not seen the jump in revenue with the Medical Polymer Facility coming on line as of yet. The City Administrator explained that h is scaling back our projected revenue to $700,000 so as to see how the revenue will increase with the new facility just ramping up to capacity. FY13 is looking to be a breakeven year financially in the General Fund. One key reason that there will not be a surplus generated in FY13 is the cost for retro pay for salaries to the Police and Public Works Union due to the arbitrator's decision to pay the police union 4% versus 2.5% for FY11. Fulton Countv Comprehensive Plan The County is having a series of ineetings. The Canton meeting will be held on April 23 at the YMCA at 6:OOpm. Ener~v Supaliers One individual contacted the City about the change of their electric supplier. Integrys was able to resolve the issue by working directly with the resident. Integrys waived the $50.00 fee and switched the customer back over to Integrys after the resident mistakenly changed to another electric supplier. Citizens are encouraged to contact the City if they have questions or concerns about a change in an electric supplier. Park District Post Cards Post cards of the veteran's memorial are being offered at the park district. The cards have been created by Snowman Studios. OLD BUSINESS AN ORDINANCE AMENDING CHAPTER 10 (WATER AND SEWER SYSTEM RATES) OF TITLE 8 (PUBLIC WAYS AND PROPERTY) 2ND READING Motion and second were made by Aldermen Fritz/West to table the ordinance for further discussion. The motion carried by voice vote and was unanimous. NEW BUSINESS: An ORDINANCE PROVIDING FOR AND APPROVING THE FIRST AMENDMENT TO CANTON 2 RT 9 CHESTNUT STREET TIF DISTRICT REDEVELOPMENT PROJECT AREA, PLAN & PROJECTS. (1sT READING) ADIOURNMENT Motion and second was made by Aldermen Pickel/Hartford to adjourn into executive session for the purpose of land acquisition. The motion carried by voice vote and was unanimous. Mayor Kevin R. Meade City Clerk Diana Pavley