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HomeMy WebLinkAbout04-23-2013 Mechanical Committee Minutes MECHANICAL COMMITTEE OF CANTON CITY COUNCIL Tuesday, April 23, 2013 6:30 pm Donald E. Edwards Way Historic Depot 50 N. 4th Avenue Canton I161520 Aldermen in attendance: Aldermen Pickel, Hartford, West, Fritz, Ellis, Pasiey, Schenck, Nelson Aldermen Absent: Staff in attendance: 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, City Engineer Keith Plavec, WTP Superintendent Greg Pollitt, Public Works Director Bill Terry, WWTP Superintendent Joe Carruthers Others in attendance: John Lovell, Mark Blxler, Allen and Brenda Dilts and other representatives from CACEI, Joe Davis, Brenda Rothert, George Hall, Bill Dodds, Lee Puleo, Jimm Bullard, Jim Essex, Chuck and Cheryl Rakestraw, Ron Howard, Steven and Beverly Ruckle, Cindy and Mike Stufflebeam, Cheryl Biehlmer, Jim Nelson, Kevin Williams, Jason Strandberg, Dana Smith, Missy Towery, Jim Hocker, Media in attendance: The Daily Ledger, Journal Star Video Services by: Joe Ginger PUBLIC PARTICIPATION Kevin Williams- Fulton County Citizens for Growth Kevin Williams is the chair for Fulton County Citizens for Growth. Joe Davis is the co-chair for Fulton County Citizens for Growth and is also at tonight's meeting. Kevin would like to talk about what the silent majority has. In 2008 the Fulton County Citizens for Growth was formed to support the North Canton Mine in the permitting process. The group petitioned the local area to determine that over 2500 citizens supported the permitting of the North Canton Mine and the jobs that it would bring to the local economy. That support is stronger today than ever before given the condition of this economy. One thing that is clear about the petition is that it was and still is from local people. In most situations when there is change involved people can approach the change with positive support and a positive approach. The Futon County Citizens for Growth supports the North Canton Mine with a positive outlook. The reason is because it is for the good of all and the benefit of our young people , and the benefit of the community. It is good for the economy because of the high paying jobs that are higher than the standards currently in our community. The group supports the permitting process. The permitting process goes thru the Department of Illinois Natural Resource, the Illinois Environmental Protection Agency and the US Army Corp of Engineers. This process is in place. There are elected officials that head the agencies. This process should never be compromised by any special interest or any bias that doesn't want to let the governing bodies have the say. The North Canton Mine plan provides for the protection of the Canton Lake and for the ongoing oversight of the waters that run into the Canton Lake. There will be more monitoring of these waters than ever before. No reasonable person should believe that the Illinois Department of Natural Resources and the Illinois Environmental Protection Agency and the US Army Corp of Engineers are not looking out for our best interest. They are here to protect the lake and the citizens. Kevin asks that the City Council along with other citizens and business leaders in the county continue to support the North Canton Mine and the jobs and economic benefits that it will bring to the community. The permitting process for the mine has been given by the Illinois law and the Illinois Department of Natural Resources. This process by law and statute has been given to the Illinois Department of Natural Resources and the governing body will oversee the process. The City is encouraged to continue to direct all of the concerns to that agency so the concerns can be addressed by their expertise. The petition with the 2500 signatures was passed around at the meeting for review. Brenda Dilts Brenda Dilts addressed the committee on Canton Lake and its watershed. Surface coal mining is one of the most destructive activities to the many facets of the environment. It threatens our health it is disruptive to our land and damages sources of water. Strip mining pollutes waters on the mine site and within miles of the mine site. The drainage from the impound from mine sites causes toxic chemicals to be carried into the streams and ground waters to be unfit for drinking or recreational. Capital Resources Development Company cannot guarantee that there wil~ be no overflow or run off from the proposed six or seven mine impounds. Under the circumstances this past week, with the large amounts of precipitation it would have been difficult to control the over flow from from the impounds. On the local radio station program this morning, Mr. Arnett said that the six hundred plus violations that industry mine were self reported by the mine company to the IEPA. Ask yourself how responsible was the mine concerning these known violations. With the mine company reporting the violations, why didn't the mine officials fix the probtem instead of letting it go on for years? Not only did they not fix the problem as reported, the problems have been ongoing for the past three years. It is also noted that Mr. Arnett said the North Canton Mine had not any violations. In front of you is a notice of violation letter Scott Fowler- IDNR Supervisor sent requiring action on August 3, 2011. The problem required a second notice that Canton North Mine was out of compliance and the IDNR received a letter requesting an extension until October to get the second quarter water report and the ground water map to IDNR. Mr. Arnett said the process for the mines application process started in 2000. It is now 2013 and they are still trying to open a mine and get the necessary permits. In those 13 years the City has moved from a former industrial community to a more eco-friendly community. It is time to move on in this mining project and put the cities energies into other worthwhile search for clean sustainable businesses. What is the value of clean water for an entire city and other communities? What is the cost to people who fish for food or enjoy living along the lake shore? Lakes have more than a financial value. It is difficult to assess the value in dollars. The benefits that people obtain from the many facets of the lake are varied. The lake provides food and water for both humans and animals. The lake provides recreation, beauty and relaxation and supports the natural balance of our eco system. These valued benefits are not at the front of our thinking when we consider streams, ground water and lakes. People seem to be out of touch with nature and its cycle of life. The decision that the Council is being asked to make tonight is one that is complex. It requires you to weigh the cost of short term jobs to the risk of losing the lake, watershed and our clean environment. The mine owners and the officials can't guarantee there will be no man made accident or acts of God with the heavy precipitation and flooding. Not only what would it cost to restore the lake should pollution occur, but more importantly is the question that must b answered is- can a lake that has been polluted by mine pollution be restored? Should the City have for a bond or an escrow account? Has the IDNR considered the bond amount to cover any such loss of Canton Lake? Capital Resource is a limited liability. Canton Lake has been overlooked because we have taken its worth for granted. Other City conditions have been the priority for the past few decades. It's time to consider Canton Lakes value before it is lost or destroyed by pollution from the surface coal mine which would be less than 1% from the mouth of the lake and within the West Copperas Creek. If you look around- all of the money the coal industry has brought to Illinois, it didn't save their water or their schools or roads. The mine companies took the profit and left the thousands of acres of mine scarred land, dry wells or polluted water. The cost to our environment out-weighs any income for a five or 10 year coal mine. When the mine is gone, the mine will leave a blighted area for the next half century. The City of Canton can't rely on state government offices to protect Canton Lake. It is well know that there have been significant cuts in employment with the IDNR, The IEPA and other regulating offices due to the extremely dire financial problems of the State of Illinois. IDNR was wrong to give a permit and they were incorrect in identifying the ravine number six- a major part of the mine. The Canton City Council needs to see that the Canton Lake needs to preserve for all of the reasons given. PUBLIC SAFETY & TRAFFIC ALDERMAN JIM HARTFORD, CHAIRMAN POLICE REPORT ? Eddie Eagle Gun Safety Program- Office Lingenfelter presented the programs to area schools. This program was started three years ago. Office Lingenfelter applied for the grant and it has been very successful. ? PTI Graduation (Honor Guard) ? Thursday will mark the graduation of the 10th citizen's police academy. The ceremony will be held in the training room at City Hall. FIRE REPORT Chief Frank reported that he wanted to update everyone on the training facility. The weather this year has been very difficult to meet the previously scheduled date in March. The army reserve could not begin in April, so the time has been postponed until mid May to assemble the facility. Last month some gravel was placed in the front area to accommodate additional vehicles. A presentation was made to the Canton Rotary Club where Assistant Chief Dick Grove received the award. The firefighter initial appointment testing took place and the listing is posted. Engine 2 has been in service for three weeks. The total expense was $18,000.00. The total cost of the truck was $60,000.00. A brand new truck would be between $350,000.00-$400,000.00. FIRE DEPARTMENT STAFFING Chief Frank is requesting that the Canton Fire and Police commission do the following: 1. Promote the appropriate person to assistant chief due to the retirement of assistant Chief Grove. 2. Promote the appropriate person to Lieutenant to replace the promoted Assistant Chief, as soon as the Lieutenants list is completed. 3. Appoint a new firefighter due to AC Grove's retirement to bring the manpower up to the strength of 5 firefighters per shift. Motion and second were made by Aldermen Hartford/Eltis to send to Council for approval. The motion carried by voice vote and was unanimous LIQUOR LICENSE- ART ON MAIN An application was submitted for a class F(SPECIAL EVENT) liquor license for Art on Main in June. The liquor commission met today and made the recommendation to send to Council for consideration. The event will be held on Saturday from 12:00-6:OOpm and Sunday 12:00- S:OOpm to have a wine tasting at the festival. Willet's wine will also be available to purchase in bottles. Motion and second were made by Aldermen Hartford/Ellis to send to Council for approval. The motion carried by voice vote and was unanimous AGREEMENT WITH FULTON COUNTY ESDA An agreement with Fulton County ESDA currently expires at the end of April. The proposed agreement is for a one year term at a cost of $3,600.00. Motion and second were made by Aldermen Hartford/Nelson to send to Council for approval. The motion carried by voice vote and was unanimous JUST TO MAKE FRIENDS INC. DBA GENERATIONS Generations bar closed approximately one month ago after the state revoke their liquor license for nonpayment of taxes. The City revoked the city liquor license. STREETS & GARBAGE ALDERMAN JUSTIN NELSON DRAINAGE ISSUES AT 65 EAST BEECH STREET Rod Howard addressed the committee regarding the flooding in the area of Beech Street/Main Street due to the recent rainfall. One very serious concern that Rod wanted to express is the young children that walk to the bus stop along the area have power lines directly above the flooded waters. Keith Plavec said that you have a farm fields to the north that drains to the corner. The property is low and the water runs onto the property. There are no ditches along the road. The City completed a survey and looked at a putting in a drainage pipe and ditches to address issues. The City recently had 5% inches of rain that caused serious flooding along Beech Street. Keith is currently working with Bill Terry and will bring back options for further discussion. LAKE, BUILDINGS & GROUNDS ALDERMAN ERIC SCHENCK, CHAIRMAN LEASE OF CITY OWNED FARM GROUND PROPOSAL Three proposals were received for the lease of the City owned farm ground. The top price received for the lease and farming the City property was from Andrew Stuckey. The two year contract was reviewed by WWTP Superintendent Joe Carruthers and Attorney Chrissie Peterson. The payments would be due in May, November and December. Joe Carruthers said that due to the time constraints he would like to allow Andrew Stuckey immediate access to the property. Motion and second were made by Aldermen Schenck/Hartford to send accept the bid of $8,250.00 per year from Andrew Stuckey and to allow him to begin operations as soon as possible. The motion carried by voice vote and was unanimous. KEMPER CONSTRUCTION- PURCHASE OF PROPERTY IN INDUSTRIAL PARK The City is considering selling the last of the acreage left at the Industrial Park. A draft agreement with Kemper Construction was in the packet for review. The agreement shows the lot that Kemper Construction is interested in purchasing and the lot is identified as lot # 21. The total cost would be $25,775.00. As part of the purchase of lot # 21, Kemper Construction would like to ask the City to abate manufacture's circle. Kemper construction would own the property if they purchase lot # 21. Kemper Construction is interested in the lot because they need additional room to park semi-trailers. The lot would also be used to store rock, sand and misc. items. The lot would also be used for long term plans. Motion and second were made by Aldermen Schenck/Ellis to send to Council the purchase agreement for 5,000 per acre for lot 21. The motion carried by voice vote and was unanimous. CANTON CROSSING SHOPPING CENTER PROIECT The City has been meeting with a commercial real estate development director from the Chicago area over the last few weeks about a possibility of a redevelopment agreement with the property where Kroger and CVS Pharmacy are located. The developer (Evan Oliff) is interested in purchasing the property, renovating the property and is requesting assistance in the project. A presentation was made by the commercial real estate developer. Evan represents Preferred Development Inc. Over the last 12-13 years the developer has focused on projects that he starts with a vision that has potential and brings the plans into action. Evan stated that he was very excited about the project with Kroger and CVS Pharmacy. Evan said he was offered this property approximately 9 months ago. The property was listed and was passed up by a lot of people. Kroger and CVS Pharmacy have a lease that has the right to terminate in two years. Most of the people that looked at the property passed on it because of that termination right. Evan explained that he toured the facility, met with the Mayor and talked to people in the stores. Evan's presentation is the vision that he has for the renovation. The project would include a new fa~ade on the building along with additional improvements, improved parking, landscaping and signage. CVS explained that they are very happy with the current location and would not prefer a drive-thru. Kroger's is also very happy with the current location, however he agrees that it is in need of renovations. An economic impact study was completed for the project. The study was submitted back in November. Steve Kline discussed the draft copy of the proposed redevelopment agreement. Steve explained that he met with Evan Oliff and his attorney at City Hall approximately three weeks ago. Steve was asked to give an overview with regards to the potential incentives that the City may be able to make available to help with the project. There is a process involved for businesses that is interested in the incentives that are available. The first step is an application process to evaluate what the potential is for the project and the potential result for the tax increment financing district. This project is on the Route 9 Chestnut Street TIF district in Canton. The application provided indicated that the developer is going to anticipate spending 2.6 million dollars which includes the acquisition and the renovations proposed. Of this amount in part over time and in part thru a loan over the life of the TIF district the developer is requesting an amount not to exceed 1,175,000,00 of assistance over the next twenty years. The two essential components of the incentive that is being requested involve the following: 1. Would involve a loan at the beginning of the project in the amount of $800,000.00 from the City of Canton to the developer. There would be certain performance requirements that the developer would need to meet but the term of the loan would be a 8 year term. Each year 1/8 of the loan provided that they meet the terms of the agreement would be converted to a grant and forgiven until the 8th year when the entire $800,000.00 has been moved from a loan into a grant. A promissory note has not been developed at this point. The City is looking at this first part due to the cost. The developer has indicated that they would spend in excess of 1 million dollars on phase one renovations. The $800,000.00 loan is tied to certain requirements. In general they will relate to the developer certifying to the City each year the number of jobs created by CVS and Kroger's. They are indicating that there would be a number of construction jobs, but in addition they are anticipating 26 full time new positions that would be created as a result of the improvements. Due to the renovations they are also projecting substantial increase in sales and would generate retail sales tax for the community. Verifying that each year there are jobs is a major concern. The City also expressed concerns that that would like to see that Mr. Olliff attempt in securing longer term leases from both of the tenants to ensure longevity for the sales tax revenue and maintaining the appropriate use of the facilities over time. The first part is an upfront loan in the amount of $800,000.00 with conditions. The second part of the agreement is that overtime (pay as you go agreement) On a pay as you go basis is that on an annual basis the City would allocate with the TIF fund a sub account for this project and deposit into that account 30% of the real estate tax increment that is generated by this project. It is 30% of the net amount available to the developer after the commitment that the City has with the Intergovernmental agreement with the School District. Once the property has been improved, tax and it's generating the additional real estate tax- some portion is paid to the intergovernmental agreement, then the amount that is left would be used to reimburse the developer for an additional portion of the eligible costs. That portion of the pay as you go reimbursements would not exceed $375,000.00 over the remaining life of the TIF district. The accumulative amount that would be reimbursed provided that the funds are generated over time would be 1,175,000.00 back to the developer that would be applied against the 2.6 million that would be invested in the site. The pay as you go portion would have some performance measures that would be tied to it. Jobs would need to be verified at the site. The city also have an interested in establishing a threshold for equalized assessed value that if the value of the property should not meet or fall below would trigger some consequence within the agreement. Alderman Pasley asked if Kroger and CVS Pharmacy would be opposed to remodeling the inside of the building. The concept would be more beneficial if Kroger and CVS would be on board with the remodeling of the inside of the building. Evan explained that in conversation he was told that they currently didn't want to renovate the inside, because the current owner didn't want to renovate the outside. Evan explained that he has verbal confirmation that if the outside of the building is improved, they would committed to improving the interior. CVS indicated that they would not be able to do this until 2014 due to budgetary reasons. Kroger said they are in the process of seeing if a fuel center would be a good idea. Evan explained that based on his experience, he finds that just renovating the outside of a shopping center helps generate additional sales. By beautifying the shopping center, people will come to the shopping center more frequently. Evan explained that he has emails saying Kroger's is willing to commit. Alderman Pasley stated that he feels that a commitment should be made from Kroger and CVS Pharmacy before the agreement is signed. Further discussion took place regarding. Alderman Schenck asked how the City would finance the $800,000.00. City Administrator Jim Snider explained that the City currently has 1.5 million in the IH TIF district that could be transferred. Steve Kline stated that you can borrow funds from TIF 2 can borrow money from TIF 1 and ultimately pay it back, but under the statutes you are not required to do so. Steve Kline explained that exhibit 2 in the redevelopment agreement has a projection. Essentially this is based upon the presumptions that the information provided in regards to the investment and the anticipated fair market value for the property. The total projected investment is 2.6 million dollars. The total projected assessed value of the property is $879,000.00. When a TIF district is established the County Clerk's office certifies for the City the initial real estate equalized assessed value of every lot and parcel within the TIF district area. For this site- it was certified at $213,000.00. When you look at the improvements that are going to be made and if it's going to generate an amount of $879,000.00 assessment you have to subtract off the base amount to get to the incremental increase in the assessment. The whole TIF is based on the incremental increase in the real estate tax assessment of the property. In this projection it is $666,000.00. When you multiply this figure amount times your real estate tax rate (tax year 2011) the first year real estate tax increment generated by the project would be a little over $64,000.00 annually. You wil) see by looking at the projection looking at the gross real estate tax increment that would be generated each year, subtracted would be the obligation to the intergovernmental agreement - from this we have the net real estate tax increment. The net amount which in this case in the first year of the increment available would be 2015. This amount would be $48,255.00. Of this amount part two of the proposed incentive within this agreement was that the City would reimburse back to the developer 30% of this. The accumulative amounts in the entire life of the TIF project it would generate a little over 1.8 million dollars of real estate tax increment subtracting over $460,000.00 that would be paid out for the intergovernmental agreement. The net amount of 1.4 million of real estate tax increment. The $375,000.00 reimbursement for eligible costs that is on the pay as you go portion of the agreement would be paid back to the developer at this r~imbursement rate by year 2035. The accumulative share to the City would be just over 1 million dollars. These numbers are really what provides the City with the initial justification for considering the upfront loan as well as the pay as you go portion. If the improvements are made they result in the type of the increase in the assessed valuation. Over the life of the TIF the TIF will pay for these eligible project costs to make the project viable. By the end of the life of the TIF district the City will have had an opportunity to recapture that plus a little bit more. Alderman Schenck said that when the TIF was setup the City really needed something to jump start the development on the east end of town. This project would be exactly the type of thing to encourage this. It is a large investment by the City. In the absence of being able to do a project, he would hate to have Kroger abandon their lease. Mayor Meade said this is a large project and the Council will be asked invest the $800,000.00 up front and another sum over the life of the TIF. There are a lot of pros and con's, but the bottom line is the question of if the project would jump start this part of town. One of the reason's you develop is to make the surrounding area have improvements. Mayor Meade said that any business transaction is a risk, however he is confident after working with Evan and the work he has done. The renovation on the project will be done by local laborers. It would be the intention to use local labor. Motion and second were made by Aldermen Schenck/Ellis to send to Council for approval and to enter into an agreement. Alderman Pasley said he would like to see a commitment from Kroger's before the City enter into an agreement. Further discussion took place about the concern of investing the funds in the project and then later having Kroger leave the store. Attorney Peterson explained that you would still have the availability of having any grocery store come into the location. Evan stated that he is currently having difficulty getting a loan from a bank because of the two year lease provision. Evan is going to a lender charging a higher interest rate. Evan is confident that Kroger is going to stay and is very committed in the project. The motion carried by voice vote and was unanimous. DISCUSS CONSIDER VOTE ON RESOLUTION TO THE ILLINOIS DEPARTMENT OF NATURAL RESOURCES WITHDRAWING CITY SUPPORT FOR PERMIT # 385 NORTH CANTON MINE. The resolution in the packet does not specifically discuss withdrawing City support. Alderman Schenck stated that some clarification needed to be made on the ordinances and resolutions. Attorney Peterson stated that the ordinance that was proposed to Aldermen Fritz was an ordinance to amend section 8, 11 and 14 of the Canton Municipal Code. It would add language to that section in regards to the lake that would say " It shall be unlawful to deposit any of the substances listed in subsection A where such material may be washed into the lake or water source flowing directly or indirectly into said lake." What would be added would be "The water source flowing directly or indirectly into the lake includes West Branch Copperas Creek its streams and tributaries in the Canton Lake Watershed which is specified in the federal and state source water protection area. To assist with watershed protection and public water supplies." "The City of Canton recognizes protecting Canton Lake watershed as an important part of providing safe drinking water for the public as Canton Lake is part of a dual water supply." Alderman Schenck stated that this is what was intended to be the ordinance agenda item for this evening. The resolution was in the agenda packets. Alderman Schenck suggests a resolution to protect and maintain water quality at Canton Lake. The resolution is intended to be broad and not specific to any other action that might impair water quality at the lake. The resolution is intended to stay within the bounds of what the City has authority to do. The actionable items suggested by Aldermen Schenck are: 1. Protect water quality at Canton Lake 2. Recognizing that the authority to act as a City is limited beyond the areas owned by the City. Supporting zoning and regulatory enforcement actions taken by other local, state and federal agencies that individually and collectively serve to maintain and improve water quality in Canton Lake. 3. Develop, financially support and implement water quality monitoring programs and actions that serve to protect and improve water quality at Canton Lake. Alderman Schenck suggested taking the information to Council for an up and down vote on the issues. The possibility of having a meeting next week (during the 5th Tuesday) would be a suggestion to further discuss the information. The ordinance provided would be only applicable to the lands that the City owns. Attorney Peterson explained that they City does not have zoning authority outside of the City limits because the County instituted loaning authority in 1970. The City does have the authority to institute sub-division control up to 1.5 miles outside the city limits. Things like roadways, plats that the City requires, would be applicable up to 1.5 miles outside the City limits. The ordinance as drafted prohibits putting certain substances into the lake. Further discussion took place regarding amending the current ordinance. Motion and second were made by Aldermen Schenck/Hartford to revoke the prior support. The motion carried with one no vote. This will be sent to council Second item is the ordinance with the provision that it only applies to the land that the city owns at the lake. This will be forward to council for consideration with the amendment to clarify that the ordinance applies to the land that the city owns surrounding the lake. Motion and second were made by Aldermen Schenck/Hartford to amend the ordinance by adding the provision that it applies to the land that the City owns at the lake. The motion carried by voice vote and was unanimous. This will appear as new business on the second agenda Alderman Schenck explained that the other item for discussion is the resolution that he drafted. Alderman Schenck said if the committee wants to act on the resolution that the committee recess this meeting and come back in a week to provide additional information on the resolution. Motion and second were made by Aldermen Schenck/ to have the committee recess and come back in a week for further discussion. The motion failed due to the lack of a second. Alderman Schenck clarified that there are two items to forward to Council. One of those items will be a vote to decide if the Council wants to resend the previous letter of support. The second item is the amended ordinance clarifying the definition at the Canton Lake and the creeks associated with the lake. POLICE AND FIRE TRAINING FACILITY Chief Taylor said he talked to Council back in February during the strategic planning session about the police and fire training facility. Discussion took place regarding the fire and police training facility at the eastside treatment plant that could be used for confined space injury and other training. Initially a larger building was being considered and a search for grant funding took place. The search for grant funding was not successful so the building was scaled back from the original plans. The building would include an area to store targets and range supplies along with a section for classroom training. Several quotes were obtained. The Canton school district and the building trades class was talked to about this being a project for next fall. The building trades class needs to know if this is something the Council would like to have them do. The funding for the concrete work would have to be sent out for bids. The cost is in the range of $52,000.00 for the heating/plumbing, structure and the foundation. This would be paid for from the federal drug asset forfeiture fund which currently has $71,000.00. Chief Taylor would like to know if the Council would like to have the school's building trade class involved in the project. Motion and second were made by Aldermen Hartford/Schenck to send to Council for consideration. The motion carried by voice vote. PAVILION AT CANTON LAKE Keith Plavec put together some cost estimates of material to be used for the pavilion at Canton Lake based on the assumption that the work would be done by City staff and volunteers. The structure would be for a 16x20 pavilion at Canton Lake by the shower house. Alexander lumber quote was $1800.00 for the material. The concrete floor quote was $800.00. The total cost for material would be $2600.00 and the City staff would do the work. Motion and second were made by Aldermen Schenck/Nelson to approve the project using money budgeted for lake improvement projects up to $4,000.00. The motion carried by voice vote and was unanimous. Further discussion took place regarding the electric service and outlets that would be included within the $4,000.00 amount. PURCHASE OF PROPERTY AT 46 WEST CHESTNUT City Administrator Jim Snider explained that with the demolition of 42 West Chestnut the property at 46 West Chestnut was torn half way down. The City waited on a certificate of insurance before any work began. The fact that the City insisted that a certificate of insurance was on file prior to any work started proved to be necessary. Nobody was hurt, however the building at 42 West Chestnut required emergency demolition after a section was destroyed. Rick Hammond was notified and arrangements were made to bring in a pod for temporary storage of the owners contents. The City spoke to River City and they agreed to waive the demolition cost and have the asbestos work done as weli. This saved the City $6,000.00 that was previously going to be spent to tear down the building and perform the asbestos inspection. The City will purchase the building. City Administrator Jim Snider explained that the City basically got the demolition and asbestos work completed for free. Alderman Pasley questioned the insurance process and the purchase of the lot verses the purchase of the building. All of the parties involved knew that it was the City's intent to purchase the building, but Attorney Peterson will follow up with the insurance company. There are two different sets of coverage and two different sets of insurance. Motion and second were made by Aldermen Schenck/Ellis to approve the purchase contract and send to Council for consideration. The motion carried by voice vote and was unanimous. PUBLIC WORKS, WATER & SEWER ALDERMAN GERALD ELLIS, CHAIRMAN BID RESULTS FOR TRUE VALUE GARDEN CENTER IMPROVEMENTS Three bids were received for the True Value Garden Center Improvements. The bid was to construct a concrete pad adjacent to the building along with a retaining wall, fence and property drainage. An alternate bid was in place to install a wall from the east end of the building. The total base bid was from Otto Baum, Kemper Construction and Laverdiere Construction. Kemper Construction bid $92,579.84. The alternate bid from Otto Baum was $73,950.00. The wall improvements bring added from Otto Baum brings the total to $171,485.20. The engineer's estimate was $173,000.00. This project would be a TIF expense. Motion and second were made by Aldermen Ellis/Hartford to send to Council for approval the entire bid from Otto Baum in the amount of $171,485.20. The motion carried by voice vote and was unanimous. The sidewalk improvements would be done after the improvements are completed. APPLICATION FOR PAYMENT NO 9 FOR THE WTP FILTER REHAB PROJECT FROM ALL SERVICES CONTRACTING IN THE AMOUNT OF 510.474.61 The application submitted is for the last work completed on filter # 4. The remaining work is on filter # 2. This will be paid from the bond funds. Motion and second were made by Aldermen Ellis/Nelson to send to Council for approval. The motion carried by voice vote and was unanimous MUNICIPAL ESTIMATE OF MAINTENANCE COSTS City Engineer Keith Plavec discussed the various streets that would be included in the proposed improvements. The tota) estimated costs would be $463,453.57. Of this amount $316,229.12 would be MFT funds, $147,224.45 would be TIF funds. $250,000.00 was budgeted for the 2013-2014 year in the TIF funds for infrastructure. Motion and second were made by Aldermen Ellis/Hartford to send to Council for approval. The motion carried by voice vote and was unanimous. RESOLUTION FOR MAINTENANCE OF STREETS AND HIGHWAYS BY MUNICIPALITY UNDER THE ILLINOIS HIGHWAY CODE. Motion and second were made by Aldermen Ellis/Nelson to send to Council for approval. The motion carried by voice vote and was unanimous. REQUEST FOR EXPENDITURE/AUTHORIZATION FOR MOTOR FUEL TAX FUNDS Motion and second were made by Aldermen Ellis/Hartford to send to Council for approval. The motion carried by voice vote and was unanimous. MAINTENANCE ENGINEERING TO BE PERFORMED BY A CONSULTING ENGINEER Motion and second were made by Aldermen Ellis/Nelson to send to Council for approval. The motion carried by voice vote and was unanimous. SPOON RIVER COLLEGE BIKE TRAIL In FY11 a request from Fulton County was made to contribute to a bike trail. Several meetings have taken place over the years about the location of the trail from Spoon River College to Wallace Park. Relocation of a water main would be very costly for one of the proposed locations. The County is requesting that the City pay the $25,000.00 per the original commitment. It is suggested to pay but have a condition that no additional money will have to be paid for relocation of a waterline. The trail needs to be redesigned. This could be done administratively or as a resolution for the new Council Motion and second were made by Aldermen Ellis/Hartford to send to Council as a resolution to pay the county the portion agreed to for the bike trail and have a condition that this is the only payment and no responsibility to move any waterlines.. The motion carried by voice vote and was unanimous. Alderman Fritz asked why they want the money at this time. Alderman Fritz suggested not giving payment at this time. Keith Plavec said he thinks they want payment because they retained a consultant to design the trail. He is not sure that the money is not for the design, and would suggest going back to look at the original agreement. Jim Snider said it was not an agreement, but rather a verbal agreement. Alderman Pickel does not agree with paying the $25,000.00 at this time. Motion and second were made by Alderman Ellis/Hartford to rescind the motion and suggested sending a letter of support the trail with the new design. The motion carried by voice vote and was unanimous. ADJOURNMENT Motion and second were made by Aldermen Hartford/Ellis to adjourn into executive session for fire fighter grievance and personnel The motion carried by voice vote and was unanimous. , D ana Pavley City Clerk ,