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HomeMy WebLinkAbout3-14-06 Clerical Committee Meeting Minutes CLERICAL COMMITTEE th 50 North 4 Avenue, City of Canton Tuesday March 14, 2006 – 6:30 p.m. The Executive Session was held first tonight and began at 6:30 p.m. The Executive Session adjourned into open session at 6:51 p.m. The Mechanical Committee was doing the Executive Session so they continued on with their meeting when the executive session adjourned into open session. Negotiations, Grievance & Personnel Alderman Larry Sarff, Chairman Support for Reserve National Guard Services. Mayor Heinze said this is for people who went into service and allows service credits in the Illinois Municipal Retirement Fund to members who served in the armed forces of the United States for all periods of such service prior to their participation in IMRF or whose participation was interrupted by military leave but did not return to IMRF participation within 90 days of discharge. This does not cost the city any funds. A resolution is needed to be able to do this. Motion and second by Aldermen West/Meade, to refer the resolution on to council for their consideration. The motion carried by voice vote, and was unanimous. The Negotiations, Grievance & Personnel adjourned at 6:55 p.m. Finance Alderman Les Carl, Chairman Bills.Motion and second by Aldermen Sarff/Meade, to refer the bills to Council for their approval. Discussion. Alderman Berardi ask if the city building generator quit working from Sunday nights storm? Acting Police Chief Randy Zimmerman said the generator was running and they went to use the manual control and it did not work, so the unit was hit by lighting. Also some computers were down. Had to replace some of the boards in the 911 system. Alderman Berardi ask if a log is kept on the generator’s use? Street Supt. George Spahn said that Altorfer Company keeps a log. Mayor Heinze said when the bolt of electricity came in through the board, we never lost power at City Hall. The motion carried by voice vote, and was unanimous. th Treasurer’s Report. City Treasurer Kathy Luker said the report for February the 10 month of the fiscal year is at 83.3%. We have more revenues then expenses. The General Fund if you take out the IH Bond from the budget you would be at 75.4%, and Bond Transfers take out from the budget the Water & Sewer departments is at 67.1%, they both are doing well. The Health Care Fund is showing a negative again of $38,466.00. Alderman Berardi ask did we just borrow $250,000 from the General Fund? City Treasurer Kathy Luker said it was $390,000 from the General Fund. Alderman Berardi 1 Clerical Committee 3-14-06 ask how do we pay this money back? Alderman Sarff said we are in the Budget process, put it in there. Alderman Carl said the answer is will have to raise the premiums again. Motion and second by Aldermen West/Sarff, to refer to council for their consideration. The motion carried by voice vote, and was unanimous. Rick Semonis SBSI presentation. Rick Semonis gave a short outline of what he will do for the City. He said he will conduct a review of the City’s existing medical benefit plan, but not limited to the overall design of the plan an its effectiveness. 1.) Comparison to design current market trends, to identify plan features to add, eliminate, or adjust, in order to save cost control or future cost, or to improve benefits. 2.) To review your TPA service that you utilize and their cost. 3.)To review your PPO agreement to negotiate a renewal if necessary. 4.)To assist in preparing RFP for a self funded and a fully service proposal if it so warrants; and to evaluate those proposals and to monitor the implementation. Our business is an employee fully benefit consulting firm. That’s all we do, we manage about 12,000 employees through out central Illinois. Last worked for the City in the spring of 2001. Told you then to put more money in to the fund. Mayor Heinze said he ask Rick to come over. Alderman Carl mentioned that Rick’s fee is $3,600.00. Dan Oaks chairman of the Insurance Committee of the City reported that in 2001 City Council ask the City’s Insurance Committee to look into our health care fund and to see if we are getting the best value for our money. The City Council hired Rick Semonis as none of us have any experience in insurance. Some of the recommendations are rd increases in premiums for the employer, benefit changes to the participants, changed 3 party administrator, as we went from Mutual Medical to HCH. Our contract with HCH th is up for renewal April 30, 2006. So Mayor Heinze thought it was a good time to take a look at the plan again. We were pleased with the work Rick did before so that is why we are recommending again. Alderman Sarff gave a brief history of the city health insurance. When premiums got to high we became self insured. Alderman Sarff said he had recommended Rick Seminos back then to the city. We spent one and a half million in claims, and to spend $3,600, and this is not very much to take a look at our plan, and the fee is not unreasonable. Alderman Schenck ask if the Canton Park District pulled out of our plan, and where did they go? City Treasurer Kathy Luker said they will be leaving the City’s plan and will be going to the State of Illinois. Alderman Meade said Rick Seminos firm has worked for the City in the past and done good work, and they saved us some money, and our auditors have told us to do this. Motion and second by Aldermen Meade/Sarff, to forward to council for their approval. The motion carried by voice vote, and was unanimous. Gary Grzanich Water Line for Humane Society. Gary Grzanich said we had an agreement with the previous council on the water line. 22 acres was left to them on Route 9, had 5 years to get this done. The building permit was for $437,000 and does not include water. We did not budget because we thought would be in-kind service. We 2 Clerical Committee 3-14-06 can save some 6 to 8 thousand by doing the painting. Received from the trust was $300,000, and we have to raise the rest, which we have raised $25,000 to date. This is a heck of a deal for Canton and will be into the future. Don’t know what you can do to help us, hope it’s a water line as we want to be up and running by May. Alderman Berardi said he had talked with Police Chief Donald Edwards and was told this was in writing of the City offering to do the water line and the previous city attorney Ron Weber had taken that out of the agreement before the final presentation. We are looking th at loop going out to 20 Avenue and need to address this, and also he said he ask County Board Chairman Sandy Monari to help in sharing the cost. Keith Plavec from Maurer Stutz Inc. spoke about when this first came up we actually went back to the water study. We looked at, being that if Ethonal Plant is running their th line down 20 Avenue. And we ask how to get water over to the Southwest part of the th City? And we hope it was actually a 10 inch water main from the 16 inch line that we th proposed to the Ethanol Plant flowing into town actually to 5 Avenue where a 10 inch water main was upgraded with roadway improvements. As for the animal shelter concerns, the minimum they would be allowed to put in according to EPA is a 4 inch main. The City has not allowed anything smaller than a 6 inch water line. On this 4 inch size we are looking at long term, the minimum we would say is 10 inch and 8 would be great for the future. We’re looking at getting water from the Hertiage Inn area and running it to the east. Our optical goal is to run and connect it to the 16 inch in the future. So running a 4 inch water line does not serve the city’s future needs. Even a 6 inch would be a good water main for that area. If we have to down size would rather see 8 inch vs. 6 inch. Keith ran some numbers if the City was to do this project. A 6 inch line $11,150.00 as of February 16, 2006. Renting of equipment $15,000 to put in the 6 inch line. The 4 inch they would be looking to do would be under $10,000 for material cost. An 8 inch water main out to this area, looking at $17,172.00 roughly $6,000 more from 6 to 8 inch. Would cost up to $24,000 to their sight only. This is not for bonding use. thth Alderman Schenck ask what is the advantage of the loop from 5 Avenue to 20 Avenue? Keith Plavec answered, if the Ethanol Plant goes, that 16 inch water main is a huge supply of water that is actually coming off the 24 inch water main, this is almost 3 million gallons for the whole community water supply. We want to direct to your new 8 inch line that inter connects with your 8’s and 12 inch lines which is creating one giant loop to supply water for the entire city. But right now the water runs slow through 8 inches, and bunches of 6’s and 4 inches. Looking at bunches of loops for fire protection, and you also serve two communities of St. David and Dunfermline in this area Alderman Carl said to get back to the question of offering a water line to the Humane Society? He said he researched all of the committee meetings and council meetings and it was never mentioned at those meetings of helping with the water line. We agreed to paying $10,000 per year and council did not decide to any in-kind services be done. The cost of the operating present Kennel was $3,975 per year. So were actually given them $6,000 over an above what it cost the city over a 5 year period. Gary Grzanich said to Alderman Carl, I don’t know what meetings your talking about. But our meetings were in the city building with the former mayor, former Alderman 3 Clerical Committee 3-14-06 Mary Fillingham, Police Chief Donald Edwards, Clif O’Brien and some people from the county, and the Humane Society. Alderman Carl said he was talking about the official Committee and Council meetings. Alderman Berardi said the “loop” is the more important issue here. He wants to recommend going ahead with the project with an 8 inch line. Alderman Carl wants to renegotiate the $10,000 offer to $7,500 per year. Alderman Berardi ask why not annex the property into the city? Alderman Carl ask if the property is adjacent to the city? City Attorney Jim Elson said you can not annex property that does not have any continuity with the city. Alderman Reed wants to see the city doing in-kind services. This would be a great service to them. Mayor Heinze said he has been at several of their meetings and this would be a great thing for this community. Alderman Sarff said doing this now we are getting it done cheaper. Motion and second by Aldermen Sarff/West, to do an 8 inch extension to the property and ask the county to participate at 50%. (For City Treasurer Kathy Luker to come back next week with where funds come from.) The motion carried by voice vote, and was unanimous. Gary Grzanich ask, the motion is to pay ½? Alderman Sarff said it is to ask the county to pay ½. Gary said if the answer is “no” then would we pay ½ of it? Alderman Carl answered “yes”, and if that would happen your share would be based on the 4 inch not the 10 inch since that is what is required. Gary thanked the committee for letting him speak. Keith Plavec ask if the committee wanted him to check on the cost of a 10 inch line? Alderman Sarff told him to go ahead. Kilroy Sewage Pumping Station Bidding & Construction Phase Professional Services. Keith Plavec said that Maurer-Stutz Inc. (MSI) and Alderman Les Carl and Alderman Joe Berardi have had several meetings to discuss this contract and the next two contracts between the City and MSI. Keith explained that this contract with Maurer- Stutz, Inc. (MSI) was for providing bidding services and construction observation services for the Kilroy Lift Station project. He said that the project has been designed and submitted to IEPA. They are currently waiting on approval from IEPA before bidding the project. Keith said that the MSI contract is estimated to cost between $190,000 to $210,000. He further commented that this cost will vary depending upon who the contractor is and how they will approach the project. He said that several items on the project have backlogs and this will result in contractors approaching the project differently. Keith also mentioned that if change orders occur, the City needs a designated representative from the City to approve the change orders. Through prior meetings with Alderman Berardi and Alderman Carl, it was decided that the City should 4 Clerical Committee 3-14-06 consider having these two aldermen be the designated representatives for the Kilroy Lift Station Construction project. Keith concluded by saying that the estimated construction cost is $1,600,000. Waste Water Treatment Plant Improvements – Design Phase Professional Services. Keith started off by thanking Joe Carruthers and his staff for their assistance with preparing the scope of work for this project. Keith said that this project is for the design of improvements listed in the scope of work included in the contract. The scope of work originated from the study that was completed by MSI in response to several excursions that the City has at several of its facilities and also to look at upcoming regulations. He said that the estimated cost to complete this work is $1,200,000 to $1,400,000. Water Treatment Plant Improvements – Design Phase Professional Services. Keith started off by thanking Greg Pollitt and his staff for their assistance with preparing the scope of work for this project. Keith again said included in the contract is a scope of work identifying the various items to be covered. Keith said that the scope of work for this project originated from a study prepared by MSI that focused on increasing the City’s water supply and treatment capacity to 5.0 mdg and rehabilitating the existing water treatment plant. He said that the estimated cost to complete this work is $750,000 to $900,000. Keith noted that the copy of this contract that everyone has contained an error in regards to the estimated fee. The submitted copy for consideration showed and estimated cost of $1,200,000 to $1,400,000 and apologized for the mistake. Alderman Carl said that Alderman Berardi has offered his time on the site and his expertise. Alderman Carl told Alderman Berardi that he appreciative him volunteering. Motion and second by Aldermen Meade/Sarff, to send the three agreements on to council for their consideration. The motion carried by voice vote, and was unanimous. Motion and second by Aldermen Sarff/West, Alderman Berardi on behalf of the City during the construction phase to approve or reject change orders and make other decisions pertaining to the construction phase; and for Maurer-Stutz Inc (MSI) to set up the bidding process. The motion carried by voice vote, and was unanimous. Quotes received for new computer for city clerk’s office. Alderman Carl ask for City Clerk Nancy Whites to comment on the quotes received. Nancy Whites mentioned that either of the two quotes is acceptable. Alderman Sarff said he knew nothing about needing a new computer. Nancy mentioned of how her computer is a 98 and shuts down at times when in use. Sometimes when text is typed nothing appears on the screen. Mayor Heinze said the hard drive is failing. Since both quotes are under $1,000 the mayor can make the approval of purchase. City Treasurer Kathy Luker mentioned that a computer is listed in the General Fund Budget that will be in affect beginning May 1. 5 Clerical Committee 3-14-06 Fire Works and Reimbursement of $3,707.47 from 2004 – 2003. Alderman Carl reported that in the pass year the fire works was paid out of the General Fund and should Motion have been paid from Hotel/Motel Funds. and second by Aldermen Sarff/West, to reimburse the general fund $3,707.47 from Hotel/Motel funds. The motion was by voice vote, and was unanimous. Mayor negotiations of HHS Loan.Motion and second by Aldermen Sarff/Meade to allow the mayor to negotiate the city paying ½ of the loan and they assume the rest. Mayor Heinze said he has a goal to get rid of it. Alderman Carl mentioned that this has to be in the budget. The motion carried by voice vote, and was unanimous. Pay off furnace HVAC. Alderman Carl is wanting to pay off the funds owned which is $145,000 and paid from the General Fund. This is for the new furnace at City Hall. Alderman Carl said we have applied for a grant. Economic Development Director Mark Rothert said he has sent in the paper work for a grant of $30,000. Alderman Carl said also the sale for the former City Building will be used also. Motion and second by Aldermen Meade/Sarff, to approve of the request and refer to council for their consideration. The motion carried by voice vote, and was unanimous. Sterling Codifiers, Inc. Mayor Heinze said he gets calls about the public wanting to know what a certain ordinance says. If we can put this on the website they can just look it up and it would be available to us right away. Alderman Berardi ask about putting information on a CD? Mayor Heinze said he asked about a CD and Sterling Codifiers said they could not do one. Alderman Meade said he liked the idea and supports it. Motion and second by Aldermen Sarff/West, to approve the concept and refer to council for their consideration. The motion carried by voice vote, and was unanimous. Audit Discussion. City Treasurer Kathy Luker City Treasurer said the report is in response to a request made of me by Alderman Carl, Finance Committee Chairman. The audit reports and management letter are public information and were compiled for the 2004-2005 fiscal year and are attributable to the previous treasurer’s term. I am not responsible for the contents of the 2004-2005 audits or management letter, which were compiled by Hocker & Fitzjarrald CPA’s. I will be giving an update as to the current status of the 17 problem areas noted in the management letter, which the City received on February 14, 2006. You all should have copies of the audit and management letter. Item 1 Bank Accounts Not Reconciled. 6 Clerical Committee 3-14-06 As of this date, all January 2006 bank accounts have been reconciled to their respective bank statements and also to the locis (Local Govt. Computer and Information Service) software, which is used to compile the City of Canton Audit information. Item 2 Control of Original Source Documents. This item is controlled by the City Clerk’s office. (My secretary Barbara Bryant could not find several bills for the auditor. Nancy Whites, City Clerk.) Item3Payroll accounts not reconciled. Payroll records are being reconciled to the general ledger, and payroll tax returns are filed on a timely basis. Item 4 Lake Fund transactions not Recorded. All lake transactions are now recorded on a timely basis. Item 5 Cash Receipts Journal or Register not Maintained. There is now a cash receipts journal in place, utilizing the point-of-sale cash receipts register provided by the LOCIS system. Item 6 Check Register not Maintained. A check register listing all checks written in sequential order will be provided for the 2005-2006 Audit. Item 7 Actuarial Valuation of Post Employment Benefits. An actuarial valuation recommendation is before council at this time, which would include retirees. Item 8 Personnel. The employee manual should be updated. Item 9 Miscellaneous Receipts. Miscellaneous receipts are now divided between 15 categories, thereby significantly aiding the auditors in identifying revenues by source. Item 10 Properties and Equipment Inventory. An inventory listing will be provided on excel as a spreadsheet in the future. Currently this is kept on paper. Item 11 Intergovermental health Insurance Agreement. 7 Clerical Committee 3-14-06 There is no written agreement between the City, the Library, and the Park District regarding the health insurance plan. Management is aware of this and it needs to be resolved in the near future. Item 12 Accounting Manual. The City of Canton does not have an accounting manual in place and will discuss this with the City auditor’s. Item 13 Retiree Health Insurance. A spreadsheet analysis of retiree health premiums paid to the Health Care Fund is now being reconciled on a monthly basis. Item 14 Deficit Fund Balances. The General Fund before the 2005-2006 year-end will repay the deficit balance in the Civil Defense Fund via a resolution. Other deficit funds will be reviewed. Item 15 Working Cash Fund Law Violation The City will repay the Working Cash Fund before the 2005-2006 year end. Since the shortage of cash still exists in the Health Care Fund, the City will then make a new working cash loan to the Health Care fund. Item 16 Appropriation Law Violations. The City prepared the appropriations ordinance following tracks of the previous year, and this issue could arise again for the 2005-2006 fiscal year. During the 2006-2007 fiscal year, this should not be an issue as the City of Canton will be on the budget system instead of the appropriation system basis. Item 17 Fire Pension Investment Act Violations. As of the 2005-2006 fiscal year, the fire pension fund is in compliance with the mutual funds investments not to exceed 45% of their entire investments. The information given in this report is true and factual to the best of my knowledge as of March 14, 2006. Respectfully, Kathy Luker, City Treasurer and Budget Director. Alderman Carl congratulated Kathy for getting the City’s funds back in compliance, and said he appreciated her work. Health Care Premium Increase. City Treasurer Kathy Luker mentioned that the health care insurance in May 2005 the cost for dependent coverage was $860 and single coverage was $360.00. As of May of 2006 the dependent coverage will increase some 16% to $1000 month and single coverage will increase 25% to $450.00. What HCH has recommended before is to increase the premium payment. Alderman Schenck ask if the matter comes in a consultant agreement? Alderman Carl said we can ask to take a look 8 Clerical Committee 3-14-06 at it. Alderman Sarff/Meade to send on to council for their consideration. Discussion. Alderman Carl mentioned that the annual premium increase is for ourself. On May 1 goes into affect. The motion carried by voice vote, and was unanimous. Addendum to Work Order of Vandewalle & Associates. City Attorney Jim Elson mentioned that Wal Mart had asked Vandewalle & Associates to work with them. They will be using the work order of Joy Stiegliz. Mark Rothert found the work order is still in place so we don’t need the addendum. Budget Discussion. Alderman Berardi wants to hire a city manager. Alderman Meade said you would have to call the position city administrator as the city is not home rule. Alderman Carl said if we put in funding for city administrator can the funds be used for anything else? Alderman Berardi ask what effort is being made to reduce the budgets? Alderman Carl said we hired City Treasurer Kathy Luker to report back to us each month. Alderman Schenck thought a city administrator could increase our efficiency. Alderman Meade said that because of the department heads the city was in great shape financially last year. Alderman Berardi wanted to know why a car was added to the Budget for the mayor’s office? If the mayor needs a ride I’ll give him one. Alderman Sarff said the mayor should be turning in his expenses if he is using his car for city purposes. Alderman Schenck said he did not see why leave things in the budget we don’t want. Alderman Carl mentioned they have to be in the budget or you cannot buy the product. Motion and second by Aldermen Sarff/West, to send on to council for their consideration. Discussion. Alderman Beradi wanted to know how do we take revisions? Alderman Meade ask how far in advance for passage? Alderman Schenck said there will Motion be a public hearing held prior to passage. Motion and second withdrawn. and second by Aldermen Sarff/West, to release the budget for public review. Discussion. Alderman Sarff said we can discuss this in depth for at least several Tuesdays before passage. The motion carried by voice vote, and was unanimous. The Finance Committee adjourned at 9:10 p.m. Legal & Ordinance Alderman Kevin Meade, Chairman Review Beer Garden Class F Special Events License. Alderman Meade stated that this needs clarification of time outside for the music. City Clerk Nancy Whites mentioned that the license when issued have listed 10:00 p.m. the music is inside. (The current Liquor ordinance 3-8-4 states all outside entertainment or music shall be limited 9 Clerical Committee 3-14-06 to the hours of eleven o’clock (11:00) A.M. to ten o’clock (10) P.M. to twelve o’clock (12:00) midnight Friday and Saturday.) Alderman Meade mentioned that a resolution will be on the council agenda of accepting certain Executive Session minutes that were reviewed by Aldermen Meade/Berardi and City Attorney Jim Elson. The Legal & Ordinance Committee adjourned at 9:12 p.m. Community & Industrial Development Alderman Craig West, Chairman Update Activities. The Sunset Nursing Home will be hosting a benefit Spaghetti Dinner th on March 15. The cost is $5.00 and begins at 5:00 p.m. until 7:00 p.m. Proceeds will be used for Katherine Westerfield. Economic Development Director Mark Rothert reported that someone is interested in developing in the Industrial Park. Also the city owned lot on the east side of the square where the former Drow Building stood and has been sent to the Ledger for accepting proposals by Monday March 27. Discussion – Economic Development Services Agreement w/SRP for Economic Development. Mark Rothert Economic Development Director, since council has indicated they desire to fund this organization this will be in a Economic Development Service Agreement. Mark said what work he does now will be given to this committee. This organization has registered with the State of Illinois. Want to outline the service you’ll be getting from that organization. Managing Economic Development on day to day operations, being the go between of Vandewalle & Associates, EOI, or Bell, Boyd & Lloyd. Basically what I do now in my current position will be transferred over to this organization and the current work of the Executive Director of the Chamber of Commerce as well. Would like to have drafted by next Tuesday. When Mayor Heinze appoints the Board members and council approves Mark would love to do some goal setting retreats of some sort to figure out what your priorities are in the way of Economic Development. And we can get those established for this new organization. Alderman Berardi said he did not want to relinquish Bell, Boyd & Lloyd and Vandewalle & Associates to another group. City Attorney Jim Elson said to Alderman Berardi that his question was of being more political than a legal one. Jim further stated there is a legal question if you can do that? That would be the signing of the contract that would be necessary. And you would be giving up some of your control. That’s the political question. Jim said that Mark Rothert has roughed out some type of frame work agreement as it were. Jim said he wrote out his comments on the document and has some 10 reservations about that document, but the Constitution of the State of Illinois allows municipalities to enter into contracts with individuals and organizations. Then you get into the question of the power of the municipality and run head first, and you cannot sign over any legislative responsibility to anyone else. So you have some points here and I will sit down and work it out so you’re left with the political questions. Alderman Berardi said he feels council should interact with Bell, Boyd & Lloyd and Vandewalle & Associates. Alderman Meade said he wants to see the agreement in writing. Mark th Rothert said he has to have the agreement completed by April 30. Alderman Sarff said he would like to talk about this further and suggested to discuss at the next Mechanical Committee meeting. Mark Rothert stated that once his position moves over to this new organization who is the city left with between the different groups you’ll be working with? Alderman Reed raised a question as to why the national weather station gave a weather alert and the City ESDA did not? Assistant Fire Chief Dan Oaks mentioned that the City ESDA puts out storm watchers. My understanding the watchers did not see any criteria to sound the sirens. Alderman Reed said the national weather system said it was a tornado warning for Lewistown, and Canton. Alderman Meade said they don’t turn on the sirens for warnings, only when a tornado has been spotted. The Community & Industrial Development Committee adjourned at 9:20 p.m. Recording Secretary, Nancy Whites, City Clerk 11