Loading...
HomeMy WebLinkAbout08-18-2015 Council Meeting Minutes City of Canton Council Meeting The Donald Edwards Way (Historic Depot) Canton 11 61520 08-18-2015 6:30pm A regular meeting of the Canton City Council was held on August 18 2015 (6:30pm) in the Council Chambers,The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. STAFF IN ATTENDANCE Mayor Jeffrey Fritz, Attorney Nancy Rabel, City Clerk Diana Pavley-Rock, Treasurer Crystal Wilkinson, Lieutenant Gerald Foreman, Fire Chief Tom Shubert, WTP Superintendent Greg Pollitt, City Administrator Jason Strandberg Lu Ann Armstrong and Dan Bender (Clifton Larson Allen) MEDIA IN ATTENDANCE: Daily Ledger, Fulton Democrat VIDEO SERVICES BY JOE GINGER PLEDGE OF ALLEGIANCE OPENED THE MEETING INVOCATION- Pastor Glen Nestlerode from the First Christian Church PUBLIC PARTICIPATION- ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X ADDITIONS OR CORRECTIONS TO THE AGENDA CONSENT AGENDA APPROVAL OF THE COUNCIL MEETING MINUTES HELD AUGUST 4 2015 POLICE REPORT FIRE REPORT TREASURER'S REPORT Treasurer Crystal Wilkinson reported the general fund with a balance of$617,602.76 at the end of July. The balance in the water and sewer general fund was $722,409.38. In August a transfer is being made to cover water, sewer and garbage activity. The process for establishing additional bank accounts for the dedicated funds will be going out for bids by the end of this month. The City is on schedule to receive the amount remaining on property tax receipts over the next few months. Based where the activity is we are on track with our revenues and expenses. A recommendation was made to repay the general fund loan in three installments from September-November in the amount of$92,000.00 each with the remainder payable in addition to the third payment. Dan Bender from Clifton Larsen explained that the balance in the water and sewer fund for capital improvements not related to bond project was $5,000.00. The intention is to allocate funds so the City can save and build up funds for capital improvements for the water and sewer area. The City has spent approximately $40,000.00 from this fund within the last few months without any money being credited back to that fund. The City will now be focused on building that fund back up. Discussion: Alderman Ellis questioned fund 300 that reflected a beginning balance of$207,226.90 and net cash in. He questioned if this was just the normal monthly receipts that made it increase by $515,000.00 in the water and sewer general fund. Dan Bender explained that there were funds from May and June that was not previously accounted for when the departmental change in finance took place. The money was moved back to where it should be to have an accurate accounting of the figures. BILL LIST APPLICATION FOR PAYMENT NO 2 FOR THE CANTON LAKE DAM SPILLWAY REPAIRS FROM P.A.ATHERTON CONSTRUCTION IN THE AMOUNT OF$125,751.6 Motion and second were made by Aldermen Jim Nelson/Putrich to approve the consent agenda as presented. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. FINANCE ALDERMAN JIM NELSON REVIEW OF REVENUES AND EXPENDITURES Alderman Jim Nelson explained that the format has changed on the bill list. You can now clearly see what fund the bills are being paid out of. The new report is much easier to read. The Treasurer's report reflects that the City took in $729,000.00 in the general fund, but the City spent $758,000.00. This amount creates a deficit that the City will need to closely monitor. Alderman Jim Nelson encouraged all department head's to hold off on any purchases as long as possible. Alderman Ellis asked why the social security reflects a deficit. Alderman Jim Nelson said that the City has not levied correctly and they typically would make up the difference from the general fund. Alderman Jim Nelson explained that the City has been in a deficit in social security for several years. The work comp and liability also reflects a deficit. Alderman Jim Nelson said that when you levy you want to levy for the next tax year. The City previously did not levy enough money to meet the obligation. The City then had to take this out of the general fund. It will continue to show a negative balance until we get the levy portion taken care of. The City levied more last year to help with the deficit and the City will levy correctly this year to make up the difference. DISCUSS CONSIDER AND VOTE ON REFUNDING OF CITY BOND- FIRST MIDSTATE David Pstorius from First Midstate addressed the Council regarding the refunding. David explained that when he goes before the board-- a bond buyer index is always presented along with a graph as to where 10 year treasuries are trading. The graph shows that the market bottomed out back on February 2. This has increased approximately 60 basis points since then. This indicates that interest rates are trending upwards. The 10 year treasury is what a buyer of bonds would yield. Another graph presented reflects the bond buyer index. This is a national index that reflects where bonds are trading at in the secondary market place in the country. This reflects an average over a 9-10 week period. The original issue was made in 2005. David further explained that First Midstate is not a bank. First Midstate is an investment banking firm that specializes in municipal bond issuance. First Midstate is a family owned business out of Bloomington approximately 55 years old. Banks are the biggest buyers of bonds. One of the promises they make is to attempt to sell the bonds locally first. First Midstate works directly with the City to make the process as simple as possible. First Midstate takes care of all of the details of issues with bonding. When the City hires First Midstate, they also hire Chapman and Cutler- nationally known bond attorneys. First Midstate has been with Chapman and Cutler for 55 years. If the City hires First Midstate for a project and they do not sell the bonds, the City is not out any money for their services-- they only get paid if the bonds are actually sold. The City of Canton is not tax capped. First Midstate has been paying very close attention to what is going on in Springfield. They feel there is a very strong possibility that this tax freeze is going to pass shortly and it will affect the City. The way the legislation is written right now the 2015 levy is extremely important. It will allow the City to set the rates at the limits we want. It would put a freeze on for 2016 and 2017 the way it is currently written. Anytime you use the term general obligation it means a tax levy is going to pay it back. These are bonds that would raise the taxes. The general obligation limit allows 8.625% as far as referendum bonds. There is also a non-referendum capacity up to 600,000.00 or 1/2 of 1%that could be issued. Often times a City will pledge this as a revenue source for another type of bond to help fund the pay back on an alternate revenue or revenue type bonds. There are two types of refunding. There is advanced refunding and current. Current means that we are at a call date and we can call these bonds in and pay them off. The idea is by restructuring the debt-- the hope would be to do so at lower rates than what the bonds are outstanding........... in essence provide the City with some savings. You need at least 2% savings-- which is the rule of thumb in the market place. It is a 2% savings of the principal amount that is left. The last three years of the corporate rates by fund are listed in the report. A snapshot of the alternate revenue bonds that are outstanding are also reflected in the report. The City refunded a good portion of the initial issue already-- part is still left outstanding. The City will make a payment December 1 2015 on a portion. The City will look at refunding the 2016 and the 2017 principal amounts. The report reflects that amounts that are callable on 12-1-2015. These can be called in 90 days ahead of time. The City will need to adopt a bond ordinance once the City directs them to move forward. There are no hearing requirements or petition periods. This is a chance to save money for the City. The payback structure is reflected for the other two issues done in 2012 and 2013. These will be callable on 12-1-2018. A snapshot is reflected in the report of a debt certificate that is outstanding. It reflects the payback. These debt certificates will be callable 12-15-2019. The refunding schedule is also included in the report. The issue that is currently remaining that would be restructured would be for reissuing is 3,260,000.00 of that. The estimate savings is going to be approximately 73,335.00 to the City. This represents 2.2% savings. This amount is right at the 2.% threshold which would represent $65,000.00. They will not move forward if they can't get the $65,000.00, or the 2% savings. An estimated rate of 2.3% is being used- which includes the cost of issuance. This is what generates the $73,000.00 in savings. This would be done as a private placement and they would attempt to market it to local banking institutions. MOTION and second were made by Aldermen Jim Nelson /Justin Nelson to move forward with First Midstate to refund this so we can get a savings and sign an agreement with a 2.0% savings with the 2005 water and sewer alternate revenue bond. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. DISCUSS CONSIDER AND VOTE ON THE RELOCATION OF THE CENTIENNIAL MONUMENT Attorney Rabel explained that this monument is commonly referred to as the Isaac Swan Memorial Monument. It is placed at Greenwood Cemetery. The Main Street Committee came to the City last year and asked if the City would relocate it and find a place where more citizens could view it. When it was originally placed at Greenwood it was place in the furthest NW corner looking over the wastewater treatment plant. The Council previously voted to move it. It is being relocated uptown to by The Fulton Square. There has been some discussion about where Isaac Swan is buried. Research has been conducted by the Cemetery and various history books. It is not certain where Isaac Swan was actually buried. Attorney Rabel said she just wanted to make it clear that this is not a headstone, but rather just a memorial. This was purchased by the citizens of Canton as a memorial in 1925 for Isaac Swan to celebrate the establishment of the City of Canton. City Administrator Jason Strandberg said that he was not ever buried at Greenwood Cemetery. Isaac Swan died in a tornado in the 1830's. LEGAL AND ORDINANCE ALDERMAN CRAIG WEST A RESOLUTION APPROVING TEMPORARY CLOSURE OF A STATE MAINTAINED ROADWAY FOR A PUBLIC EVENT--- HOMECOMING PARADE #5022 An application was submitted for the Canton Homecoming Parade to be held on September 25, 2015 from 3:30-4:30pm. MOTION and second were made by Aldermen Justin Nelson/Hale to accept the resolution. ROLL CALL Yes No Absent Alderwoman Hale x Alderman Lovell x Alderman Ellis x Alderman Justin x Nelson Alderman Mayhew x Alderman Jim Nelson x Alderman Putrich x Alderman West x The motion carried. A RESOLUTION APPROVING TEMPORARY CLOSURE OF A STATE MAINTAINED ROADWAY FOR A PUBLIC EVENT-FRIENDSHIP FESTIVAL PARADE#5023 An application was submitted for the Friendship Festival parade to be held on September 19 2015 from 10:00am-12:00 noon. MOTION and second were made by Alderman Justin Nelson/Mayhew to pass the resolution. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. DISCUSS, CONSIDER AND VOTE ON A CLASS B (SUPPER CLUB) LIQUOR LICENSE FROM NEWBURN ENTERPRISES D/B/A AMERICAN GRILLE An application for a Class B Supper Club license was submitted by Kim and Jon Newburn-- Newburn Enterprises DBA the American Grille. The liquor commission met on August 13, 2015 to review the application. It was the recommendation of the liquor commission to send the request to Council for approval. MOTION and second were made by Aldermen Justin Nelson/Putrich to accept the liquor license. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. COMMUNITY AND INDUSTRIAL DEVELOPMENT ALDERMAN TAD PUTRICH SRPED RESIDENTIAL HOUSING COMMITEE SURVEY RESULTS-- PRESENTATION David May addressed the Council as part of the SRPED. Last year a residential housing committee was formed. This past Spring a survey was conducted with the help of the the University of Illinois Extension and Southern Illinois University College of Medicine along with the Chamber of Commerce and SRPED. Kathy Brown from the University of Illinois Extension presented a program on the committee's survey results. The presentation is on file in the Clerk's office. NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERMAN JUSTIN NELSON, CHAIRMAN PUBLIC SAFETY&TRAFFIC ALDERWOMAN ANGELA HALE, CHAIRMAN STREETS AND GARBAGE ALDERMAN RYAN MAYHEW, CHAIRMAN DISCUSS CONSIDER AND VOTE ON AN APPLICATION FOR A GARBAGE HAULERS PERMIT FOR WASTE MANAGEMENT An application was submitted by Waste Management for a garbage haulers permit in accordance with the new ordinance. The new ordinance requires that a representative from the business be present at the meeting. A representative was present from Waste Management. MOTION and second were made by Aldermen Mayhew/Justin Nelson to accept the application that runs from May 1 2015-April 30 2016 for two vehicles. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell x Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. DISCUSS CONSIDER AND VOTE ON AN APPLICATION FOR A GARBAGE HAULERS PERMIT FOR QUALITY DISPOSAL COMPANY An application was submitted by Quality Disposal Company for a garbage haulers permit in accordance with the new ordinance. A representative from Quality Disposal was present at the meeting. The application reflects two vehicles that will be used. The license will run from May 1, 2015-April 30, 2016. MOTION and second were made by Aldermen Mayhew/Justin Nelson to accept the application for Quality Disposal Company. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. PARKING ON THE 500 BLOCK OF WALNUT STREET The parking at the 500 Block of East Walnut by Canton Family Restaurant was discussed at the last Council meeting. City Administrator Jason Strandberg said that he witnessed vehicles parking in the no parking area of East Walnut Street on different occasions. Jason recommended enforcing the no parking area that is already designated. The owner of Canton Family Restaurant addressed the Council regarding his concerns with the parking in this area. City Administrator Jason Strandberg will have the Street Superintendent contact IDOT regarding the street sign and have public works pain the no parking area and enforce the law. Mayor Fritz said that he would like to amend the ordinance regarding the garbage hauling permits so representatives from the business does not have to appear at the Council meetings. Alderman Ellis suggested further amending the ordinance so the applications do not have to come to Council for approval, but rather have the City Clerk issue a license after the application is submitted to the Clerk's office and all of the appropriate information is obtained. An amended ordinance will be presented at the next Council meeting. LAKE, BUILDINGS& GROUNDS ALDERMAN JOHN LOVELL, CHAIRMAN Alderman Putrich said he just wanted to mention that the dock on the north boat ramp has a post that is sticking up and needs to be looked at for repair. PUBLIC WORKS, WATER&SEWER ALDERMAN GERALD ELLIS, CHAIRMAN OVERVIEW OF MONTHLY WATER BILLING--SUPERINTENDENT GREG POLLITT Alderman Ellis said he has received several phone calls with the change of the monthly billing. Superintendent Greg Pollitt explained that the City changed to the monthly water billing in August. The change created extra line items in the bill that created a second page. The City did not want to have two pages for the bills so the format was changed so it would be just one page. The first three line items on the previous bill was broken down to reflect charges individually. These three charges were all combined into one line item on the new bill--- called bond project. The rate has not increased since May. The only other thing that changed is when the meter is read. The invoice will include the read date. Typically they are read between the 1 and the 3rd of the month. If the meter is read later it would reflect the additional usage- which would create additional consumption and a higher bill. If anyone has any questions people are encouraged to contact the water department. COMMUNICATIONS FROM MAYOR JEFFREY FRITZ Mayor Fritz said that he has received some positive news within the City and he wanted to share the information with everyone. The City of Canton Fire Department recently received a new Public Protection Classification 3 from the Insurance Services Office. The classifications ratings are from 1 to 10, the lower the number the better the rating. The City of Canton was currently a class 5 which was received in 2006. The ratings are reviewed every 10 years. There are several areas that are evaluated with the fire department being the largest, along with water supply and dispatching/communications. This new classification is the best rating the City has received. There are a total of 223 fire departments in Illinois that are class 3 departments out of 2,357. Nationwide there are 2,891 class 3 departments out of 49,000 that are rated. The Insurance Services Office Public Protection Classification Program plays an important role in the underwriting process at insurance companies. For the City of Canton home and business owners this could mean a potential savings on insurance premiums. Mayor Fritz said he would like to commend Fire Chief Tom Shubert, the Canton Fire Department personnel, Water Superintendent Greg Pollitt, City of Canton Telecom municators, Keith Plavec from Maurer and Stutz, and Marty Brown the emergency 911 coordinator for achieving this high rating. Mayor Fritz said he received some additional information that he wanted to share: The United States Environmental Protection Agency requires all facilities who treat over 1 million gallons of wastewater a day and who have an accredited laboratory for analytical analysis and reporting, to participate in a federally mandated and controlled yearly quality assurance program. The program requires that our lab test for unknown concentrations on various constituents. This year the results were perfect. Mayor Fritz said he would like to commend wastewater superintendent Joe Carruthers and his staff for their hard work and excellent lab operations. Mayor Fritz said he received a letter from Director Schultz announcing a statement on enterprise zones. In compliance with the statutory timeframe, the Illinois Enterprise zone board voted to approve 49 applications to establish or renew enterprise zones. Out of those 49 applications the Canton Fulton County enterprise zone was approved. This will provide local and state tax incentives for development in the City of Canton. This will be certified after the state budget is passed. Mayor Fritz said he would like to commend Attorney Nancy Rabel, Missy Towery the executive development director of the SRPED and City Engineer Keith Plavec. OLD BUSINESS NEW BUSINESS DISCUSSIN OF GOLF CARS/GATOR VEHICLES ON CITY STREETS Alderman Jim Nelson explained that Chief Nichols would like to do some research on allowing golf cars/gator vehicles on City streets. The past police chief previously expressed concerns about having these vehicles on state highways. ... one comment from past chief is problems with state highways. Pontiac and Arthur both are very clear that you can't operate on a state road, but only cross the state road at a designated intersection. Handicapped citizens have approached Alderman Jim Nelson with this request. If Canton would allow this, revenue could be generated by the purchase of stickers for the vehicles after being inspected. Some local businesses would be interested in selling and maintaining the equipment. This will be placed on the next public safety and traffic committee for further discussion. ADJOURNMENT Motion and second were made by Aldermen Justin Nelson/Putrich to adjourn into executive session for: Negotiations 5/LCS 12012(C) 2 No action will come out of executive session. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X Alderman Jim Nelson X Alderman Putrich X Alderman West X The motion carried. Diana Pavley-Rock, City Clerk Jeffrey A. Fritz, Mayor