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HomeMy WebLinkAbout03/15/2016 Council Meeting Minutes City of Canton Council Meeting The Donald Edwards Way (Historic Depot) Canton 11 61520 03-15-2016 6:30pm A regular meeting of the Canton City Council was held on March 15, 2016 (6:30pm) in the Council Chambers, The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. STAFF IN ATTENDANCE City Clerk Diana Pavley-Rock, Treasurer Crystal Wilkinson, Mayor Jeffrey Fritz, Fire Chief Tom Shubert, Police Lieutenant Brad Richards, Public Works Director Bill Terry, City Engineer Keith Plavec Lou Ann Armstrong- Clifton Larson MEDIA IN ATTENDANCE: Daily Ledger, Fulton Democrat VIDEO SERVICES BY JOE GINGER PLEDGE OF ALLEGIANCE OPENED THE MEETING INVOCATION- Pastor Nina Nestlerode- First Christian Church PUBLIC PARTICIPATION- Lee Puleo addressed the Council regarding the Illinois River Correctional Facility's delinquent water bill that is over $600,000.00 past due. The State of Illinois has not paid this water bill for the prison since the state's budget was not passed in June 2015. Lee stated that he was not surprised that the State did not pay their water bill because they did not pay the school, social workers and other vendors. Lee said he was however surprised that the administration and council members were not aware of the loss of the revenue in the amount of over $600,000.00. Lee said he was only trying to imagine how this could happen when the superintendent of the water department gets a report monthly for shut off notices for water bills that are not paid. Lee further explained that he understands that you can't shut off the water to 2000 plus people at the prison. Lee said he wants to know if the water department supervisor did his job. He should have notified Alderman Ellis since he is the chairman for the public works water and sewer committee. Lee said the water department has a history of mis-management and failures. The restaurant on the east side of the square did not pay$5,000.00 for their water which was for 8-10 months of service. The fire church did not pay for$10,000.00. This shows there is a history of failures in this department in management. Lee said he wants to know why Alderman Ellis (if informed about the prison's water bill) did not inform the rest of the aldermen or the Mayor. Lee said he has a hard time believing that the City did not miss 3/4 of a million dollars in revenue. Lee said this is not acceptable to the citizens of Canton. Lee said the worst part of this is the fact that the comptroller that the City hired told the newspaper that they did not miss the money because it was not in the budget. Lee said at this point he really gets scared. Lee asked why the money would not be in the budget. Lee further stated that it sounds like this guy they hired does not know how to do his job. The citizens need some answers. The Mayor should have a town hall meeting where he and Aldermen Ellis explain how this happened and why it would not have been budgeted. Lee said this is simply not acceptable. 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 Alderman Justin Nelson said he would like to have some discussion about no parking on Elm Street near the CEFCU construction site. This could be placed under the streets and garbage committee. CONSENT AGENDA APPROVAL OF THE COUNCIL MEETING MINUTES HELD MARCH 1, 2016 BILL LIST TREASURER'S REPORT Treasurer Wilkinson explained that the general fund had a balance of$593,000.00 at the end of February. The water sewer fund had a balance of$335,994.70 at the end of February. The Cemetery fund is down to $36,000.00. Last year at the end of April the cemetery fund had a balance of $76,000.00. The cemetery fund has been decreasing over the last year. The cemetery sexton has expressed some concerns to the treasurer about the decrease in the fund. When the City receives tax money there is approximately $20,000.00 that is levied. The City needs to keep an eye on this fund. Alderman Putrich asked if the investments from the CD's and the trust is currently being deposited into the cemetery fund to help offset the expenditures. Treasurer Wilkinson said the investments from the CD's and the trust is currently not being deposited into the fund. The City is going to try to get the money invested properly. There is a total of$554,232.00 in the various accounts. Of this amount $159,000.00 is designated as part of the trust. There are some stocks that were purchased by the board in the amount of $25,000.00 that is at Wells Fargo. This fund receives $375.00 interest each quarter. We currently have two CD's for$50,000.00 each. We have a $51,000.00 CD at State Farm. The City may want to look at moving some of this money into their checking to make sure bills are getting paid. Alderman Putrich said that when the City took over from the cemetery board all of the investments along with what the City levies was suppose to be offsetting some of the expenses. Alderman Putrich asked if the City is levying properly. The City levies $20,000.00 and the City puts an additional $20,000.00 into the fund. The City may want to levy more this year in order to help offset some of the costs. The City could also look at an increase in costs at the cemetery to help offset the expenditures. Alderman Putrich said he had another question on the water and sewer revenue. The budget report vs the actual year to date--- on the revenue side the water and sewer sales are running dead even with what was budgeted. Alderman Putrich asked if this included the $600,000.00 from the prison. LouAnn Armstrong of Clifton Larson said this does not include the amount. The revenue is on a cash basis, so the revenue is recorded when it is paid. If the City had the money from the prison the revenue would be that much higher. LouAnn said she is not certain how they budgeted last year. The total amount is about $300,000.00 behind what was budgeted. The water and sewer sales are right on target. If the City collected the money they would be over the amount that was budgeted. Alderman Lovell asked if any of the investments are bringing in more interest than 1% return. We have over $500,000.00 that is being invested with only a 1% return so these need to be re- invested to get us a higher return. GREENWOOD CEMETERY REPORT MOTION and second were made by Aldermen Hale/Lovell 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 (Absent) Alderman Craig West--- acting chair DISCUSSION AND APPROVAL OF THE 2014/2015 FISCAL YEAR FINANCIAL AUDIT FROM PHILLIPS AND SALMI &ASSOCIATES MOTION and second were made by Aldermen Justin Nelson/Hale to accept the 2014/2015 fiscal year financial audit from Phillips and Salmi &Associates. 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 ACCEPTING ONE OF THE BIDS FOR A LINE OF CREDIT IN THE AMOUNT OF $500,000.00 FOR WATER/SEWER RELATED EXPENSES AND AUTHORIZING THE CITY TREASURER TO SECURE THE LOAN WITH THE SELECTED FINANCIAL INSTITUTION SELECTED BY COUNCIL. Treasurer Wilkinson reported that the City received the following bids: Ipava State Bank--- 3.95% with an original fee of $1500.00. The approximate cost for 1 year would be approximately$12,000.00 Bank of Farmington--- 2.8%. The approximate cost is $7,615.00 Morton Bank--- 2.1% with an original fee of $250.00. The approximate cost would be $5,955.00. MOTION and second were made by Aldermen West /Hale to accept the low bid from Morton Community Bank. Alderman Putrich said he would have to abstain from the vote since he is a stock owner with one of the banks. The Mayor announced that this vote could not take place tonight since we do not have 6 aldermen present to vote. Aldermen West/Hale withdrew the motion. This item will be tabled until the next meeting. LEGAL AND ORDINANCE ALDERMAN CRAIG WEST A RESOLUTION APPROVING AN ISDN-PRE RENEWAL CUSTOMER SERVICE AGREEMENT WITH CALL ONE, AND DIRECTING THE MAYOR TO EXECUTE AND DELIVER AGREEMENT ON BEHALF OF THE CITY OF CANTON, ILLINOIS. RESOLUTION#5045 This agreement had a slight increase and did not have a bidding process in place this year. MOTION and second were made by Aldermen Justin Nelson/West to approve the resolution and place it on file. 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 APPROVING THE EXPENDITURE OF $169.50 PER MONTH FOR A ONE YEAR SUBSCRIPTION TO WESTLAW LAW SUBSCRIPTION. Mayor Fritz explained that this subscription would be for Attorney Rabel so she could use it for resources in researching items and have the ability for case law. This item will be placed in the next budget, but we do have money available to pay for the expense this year. MOTION and second were made by Aldermen Putrich/Lovell to approve the expenditure of $169.50 per month for a one year subscription to Westlaw law subscription. ROLL CALL Yes No Absent Alderwoman Hale X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Mayhew X X Alderman Jim Nelson Alderman Putrich X Alderman West X The motion carried. DISCUSS. CONSIDER AND VOTE ON A RESOLUTION APPROVING AN INCREASE IN THE HISTORIC DEPOT RENTAL FEE. RESOLUTION#5046 Currently the fee to rent the depot is $50.00. The recommended increase is to raise this amount to $75.00. This decision was based upon the rates other organizations in town charge to rent their facilities. MOTION and second were made by Aldermen Justin Nelson/Putrich to raise the rental fee. 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. NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERMAN JUSTIN NELSON, CHAIRMAN COMMUNITY AND INDUSTRIAL DEVELOPMENT ALDERMAN TAD PUTRICH DISCUSS, CONSIDER AND VOTE ON A SPECIAL EVENT REQUEST FOR THE FRAGILE X 5K WALK/RUN. This repeat event will be held on April 16, 2016 and does not include any road closures. The certificate of insurance will be submitted prior to the event. MOTION and second were made by Aldermen Putrich/Justin Nelson to approve the special event request for the fragile X 5K walk/run. 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. PRESENTATION BY DACOTT FOR RESIDENTIAL ELECTRICAL SERVICES Scott Childs from DaCott Energy addressed the council regarding the residential electrical services. Currently the City of Canton is taking part in the municipal electrical aggregation program that will expire in June 2016 with Homefield Energy. The current price is .0458 per kilowatt hour. The City secured some alternative bids for the period beginning in June 2016. Various suppliers in the State of Illinois were contacted to see if they were interested in participating in the RFP. There were 5 that expressed an interest in participating, but only two provided bids. Homefield Energy and Constellation Power provided bids. The next few days will be a very critical time period to approve the contract price. A list of all of the potential citizens was created so they could receive letters giving them the opportunity to opt out of the program. If they do not opt out of the program, they will automatically be in the aggregation program. Citizens will have 21 days to return the opt out notice and then the program would start in June 2016. Various requirements including regulatory, technical and financial qualifications were required from the supplier. Prices are currently up from our current contract. Right now we have a rate of.0458. The recommended price is .05621. The primary reason for the price increase has to do with how capacity prices have been determined in the state of Illinois. Capacity prices for downstate Illinois went up nine times. Downstate Illinois is currently 40 times higher on average for capacity than any other region in the Midwest. This is being litigated which creates a potential for a retroactive credit-- but will be unlikely. The litigation will hopefully change the rules on how they calculate and run the capacity auction over the next 18-24 months. The capacity costs make up 30-40% of the energy price. The 0% renewable (incremental) rate is: Homefield 12 month .05452 24 month .05621 36 month .05765 DaCott recommends that the City of Canton enter a 24 month agreement with Homefield Energy. They do not recommend a 36 month price because of the capacity issue. If we lock into the 36 month rate we would be locked in. Once the capacity issue is resolved a potential extension could be requested. It is anticipated that the Ameren price to compare between 6.5 and 7.2 thru the next cycle. Using the recommended price of.05621 the savings are estimated to be between $535,000-1 million dollars across all of the residence. If the Ameren price goes below the contract price the citizens have the right to go back to the utility with no penalty or fee. Mayor Fritz explained that a resolution was approved last month that gives the Mayor the authority to sign a contract. PUBLIC WORKS, WATER&SEWER ALDERMAN GERALD ELLIS, CHAIRMAN (Absent) Alderman Mayhew asked if there is anything that the City can do regarding the past due water bill and the Illinois River Correctional Facility. The $90.000.00 that they recently said they would be paying is just about what they actually incur monthly. This really does not make up any of the past due amount they owe. Alderman Mayhew said the City is taking out the $500,000.00 line of credit that is going to cost the citizens money, but we have this outstanding bill that doesn't seem to have money being paid on what is past due. Treasurer Wilkinson explained that she spoke to someone at the State and was told they are receiving appropriations. As the appropriations are being received they are "sharing the wealth wherever they can." At this point they are not in a position to send us any of the previous months due. Treasurer Wilkinson said she will stay in contact with him, but unfortunately she doesn't think the City will receive the money until the state budget is passed. Mayor Fritz explained that the City Attorney is looking into various courses of action that the City can take regarding the past due balance that the prison owes for their water bill. Mayor Fritz said he also is planning on reaching out to other municipalities that have state prisons and have a meeting with their Mayors to see how they can work together. Alderman Mayhew said that he recently found out that the prison was this far behind with their water bill and wanted to know if Mayor Fritz was notified. Mayor Fritz said he is not sure how it was budgeted last year and learned of the delinquency the same time the aldermen did. The State is historically 2-3 months behind on their payment-- even before the state budget problem. Since the State does not have a budget the number of months they are past due has doubled. PUBLIC SAFETY&TRAFFIC ALDERWOMAN ANGELA HALE, CHAIRMAN Alderman Hale wanted to remind the citizens to be watching for children riding bikes and playing outside now that the weather is getting warmer. STREETS AND GARBAGE ALDERMAN RYAN MAYHEW, CHAIRMAN DISCUSS, CONSIDER AND VOTE ON INCREASING OUR GARBAGE RATES. Alderman Mayhew explained that when the City began the budget process discussion took place about the garbage department not being self sufficient. It was determined at that time that if the City is going to offer a service the fees should be able to cover the costs. It was also determined that the City should be around $1.75 per month to go into a depreciation account to cover the costs for garbage trucks. The City is currently only contributing$1.00 per month to the depreciation fund. The City will need to come up with a way to catch up the shortfall for the amount that is being depreciated for the garbage trucks/street sweeper when they need to be replaced. The cost for just one street sweeper is approximately$250,000.00. City Engineer Keith Plavec explained that prior to 2014 the City was paying$9.00 per month for garbage. In 2014 the garbage rates went to $12.00 per month. The ordinance stated at that time that rates were to be revisited in 2015; however they were not addressed at that time. Keith further explained that previously in the budget process items such as social security, unemployment, life insurance, healthcare was not included. Some of these items are levied-- but are also at a shortfall. Currently the City budgets 25% of Nancy Mackey's time, 15% of Bill Terry's time and 25% of Danny Dare's time toward garbage. The healthcare costs are not coming out of the garbage fund, but rather they are coming out of the general fund. It was determined during the budget discussion that these should be reflected in the garbage fund. Other costs included fuel, maintenance on the vehicles and the City's cleanup week. Fees also include the landfill costs (which the city is locked into a contract with PDC for 2 years) Figures have been calculated to see what the amount to replace a garbage truck would cost. It was determined that the City would need $175,000.00 for each truck. The City did not previously increase the rate from $1.00 per month to $1.56 per month. It appears that this amount has been an administrative decision. The first two years at $1.00 per month would give a balance of$112,000.00. This is the amount that should be in the depreciation account at the end of this fiscal year. We currently only have a balance of$90,000.00 in the account with two months remaining in this fiscal year. The City has purchased the totes out of this fund, but there should also be $11,000.00-$12,000.00 in income going into the fund with the totes. To make up the difference to the $238,000.00 to purchase the two trucks we need $2.12 per month instead of$1.00 per month. The group met today to discuss the other costs involved and the council will need to decide where they pay for this. The costs will either come from sales tax, property tax, garbage fees, franchise agreements etc. There are also administrative costs in the amount of $1,187,000.00. Taking into consideration the administrative costs a proposed amount of$14.00 per month was considered. Without the administrative costs it would be approximately$12.50 per month. Alderman Putrich said he would like to see this talked more in a budget meeting rather than talked about tonight. He stated that he is not in favor of another 2% increase all at once. Alderwoman Hale also said she thinks we have done enough with raising rates and would rather talk about it in a budget meeting. Motion and second were made by Aldermen Mayhew/Putrich to table this until the next meeting. The motion carried by voice vote and was unanimous. TEMPORARY NO PARKNG ON ELM NEAR CEFCU CONSTRUCTION Alderman Justin Nelson explained that the safety fence is out in the street on Elm Street near the CEFCU construction so people are now forced to be out in the street when they park on the side of the road. Mayor Fritz suggested using barricades for a temporary solution to the problem during the construction phase. LAKE, BUILDINGS& GROUNDS ALDERMAN JOHN LOVELL, CHAIRMAN COMMUNICATIONS FROM MAYOR JEFFREY A FRITZ OLD BUSINESS NEW BUSINESS ADJOURNMENT Motion and second were made by Aldermen Justin Nelson/Mayhew to adjourn without the need of executive session. The meeting adjourned at 7:44pm. The motion carried by voice vote and was unanimous. Diana Pavley-Rock, City Clerk Jeffrey Fritz, Mayor