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HomeMy WebLinkAbout06-09-09 Clerical Committee Meeting MinutesThe City of Canton Clerical Committee met on June 9, 2009 in Council Chambers located at 50 North 4t" Avenue, Canton, Illinois. Mayor Kevin R. Meade asked for roll call at 6:30 p.m. Present -Aldermen Rick Reed, Eric Schenck, Larry Sarff, Jorge Rivero, Jerry Ellis, Jim Hartford, Jason Strandberg. Absent - Craig West Others attending -Mayor Kevin R. Meade, City Clerk Nancy Whites, City Treasurer Aaron Anderson, City Attorney Chrissie Peterson, Police Chief W. Dan Taylor, Fire Chief Bonnie Cremer, Wastewater Treatment Plant Supt. Joe Carruthers, Water Treatment Supt. Greg Pollitt, Street Supt. George Spahn, System Maintenance Supt. Bill Terry, and Video Services by Joe Ginger. In the audience -News Media of Daily Ledger John Froehling, WBYS Radio Mark Bixler, The Democrat Stacey Creasy, Journal Star Kevin Sampler, Attorney Bruce Beal, Bob Senneff from Graham Hospital, ESDA Coordinator Phil Fleming, former Alderman Pamela Ihnes, SRPRED Executive Director Mark Rothert, David Schaab from Waste Management. FINANCE. Council Action Bills. Alderman Sarff made the motion to forward the bills on to council, and was duly seconded by Alderman Strandberg. The motion was by unanimous voice vote. Treasurer's Report. City Treasurer Aarron Anderson remarked that the Revenue YTD for the General Fund was $448,883.00; and Expenditures YTD $752,856 for total of ($310,972). Several reasons for this we had to make the first payment to Blue Cross/Blue Shield, and Health Alliance wanted 2% we had to pay up front. Our Sales Tax is down some $15,000.00. I have received $18,000 for the first part of the property tax. Were showing negatives in the General Fund Expenditures due to a big payment to Risk Management for Workman's Comp, and etc. Two CD's totally $400,000 matured and was deposited in cash balance of Wells Fargo Bank. TIF District received some funds of $2,000. And we had to pay out $193,000 from the General Fund to Iron Hustler for Crushing of cement at the IH Site. Legal Services are at a third of its budget. All this will iron out next month. Alderman Sarff made the motion to forward the Treasurer's Report on to Council and was duly seconded by Alderman Strandberg. The motion was by unanimous voice vote. Graham Hospital - regestin~ for the City to issue Tax-Exempt Bonds. Alderman Sarff made the motion to forward the request from Graham Hospital for the City to issue Tax-Exempt Bonds to council, and was duly seconded by Alderman Strandberg. Discussion. Attorney Bruce Beal counsel for Graham Hospital is asking for the city's help with their $31 million Bond issue to build the new Physician Clinic at 180 South Main here in Canton. The bonds will fund the building of the new Clinic ($16 million), fund the construction of the new OB floor and physician suites at the hospital, and pay off the balance owed on a 2006 bond issue you helped us with a few years ago. My reason for contacting you is that we are on a tight schedule for construction. We are fearful if we have to wait until the July meeting we will not be sufficiently complete with closing our building in for work during the cold winter months without huge construction costs for cold weather construction. Our plan is to have all the concrete work done and close the building in to allow for work in a controlled environment. If we wait until July to approve a bond issue our architects fear we will not be in position to avoid these extra costs. Therefore we are appearing at the finance committee meeting on the 9t" of June and ask for permission to issue the bonds through the city just the way we did last time. If the finance committee agrees to recommend the issuance of the bonds on the 9t" we want to ask the city to waive the first reading at the council meeting on the 16t" and approve the issuance of bonds that night. As a requirement of the issuance we have to give notice of the hearing to be held on the 16t" at the council meeting at least 14 days in advance of the meeting. So we will publish today or tomorrow the required TEFRA notice. Please forgive us for our time table. We have had a long and difficult road to this point and just recently received the letter of intent from our funding bank that allowed us to begin the process with you. Thank you for your understanding. Bruce said the city has no liability. Bruce explained LOC Enhanced Variable Rate Bonds -Funds Flow -Borrower receives funds from initial Bond sale pursuant to Loan -Payments are made by Borrower to Letter of Credit Bank -Indenture provides for issuance of bonds; assigns post-closing obligations to Trustee -Bond payments are passed to Investors -Bonds are bought and sold by Lancaster Pollard Underwriter/Remarketing Agent. The motion was by unanimous voice vote. Backhoe for Public Works Department. Alderman Strandberg made the motion to forward the request for a Backhoe for the Public Works Department to the Council meeting, and was duly seconded by Alderman Sarff. Discussion. Alderman Sarff asked how much for the backhoe? Cliff O'Brien said the asking price is $80,000. The motion was by unanimous voice vote. Televising Truck. Alderman Strandberg made the motion to forward on to council to be able to write specifications and advertise for bids, and will bring back to Finance Committee next month, and was duly seconded by Alderman Sarff. Discussion. Cliff said the truck will last 12 to 15 years, and when it comes in you'll have to hire another employee. Alderman Schenck said originally we were using Bond Funding, make sure we have funding available because of problems you might encounter. The motion was by unanimous voice vote. Oslad Grant for the Lake. Alderman Schenck said that Keith Plavec had done some survey work at the Old Boat Dock ramp. There is a total of $104,000 work to be done and the grant funds pay 1/2, with the deadline being July 15t. The Boat Access Program pays 90% but is restrictive more for docks. Alderman Reed mentioned the pavilion in the boat dock area needs work done and also handicapped availability. There is excellent opportunity at Canton Lake. Keith Plavec will work to see if there are more grants available. Alderman Sarff suggested the camping ground area why not improve. Put money where beach is as you have plenty of parking. Alderman Ellis suggesting submit to Lake, Buildings & Grounds committee for their meeting in two weeks. Alderman Reed said he would put a plan together that addresses the public. Short Term Capital Needs for Infrastructure in the IH TIF. Mark Rothert said two issues are necessitating the need for the City to bond for capital improvements in the IH Tax Increment Finance District (IH TIF). The first is the ongoing loan from the General Fund to the IH TIF to cover the TIF-related expenses. While this has been the standard practice over the last several years, it has put a growing cash flow strain on the General Fund. The second pressing issue is the amount of capital projects that need to be done in the IH TIF, specifically the former IH site in conjunction with the Cook Canton medical manufacturing facility. In total, the short term capital need amounts to $7,838,787. Grants and other sources of funding reduce the amount needed through a debt issuance to $2,572,802. Since all of these improvements are found in the IH TIF, it would normally be recommended for the City to issue a TIF Revenue Bond to pay back the debt using future TIF increment revenue. However, in order to pledge the revenues from the TIF the TIF has to be in top administrative order, which, as Tom Jacob and Associates has found, the IH TIF is not. Certain TIF enabling ordinances were adopted out of place and the TIF ordinance itself may need to be amended. That said, bond counsel would likely not advise moving forward with any TIF revenue backed bond until these issues are resolved. Furthermore, resolving these issues would take time that the city does not have given the pressing issues above. Tom Jacob and Associates, in their work with hundreds of communities who have borrowed for infrastructure, recommend that the City pursue the issuance of a debt certificate. A debt certificate would be the fastest method for the City to obtain debt financing and would require the need to hire bond counsel as well as an underwriter. The issuance of a debt certificate would be a short term strategy to bridge the gap to obtain long-term TIF bond financing in the near future once the TIF is being properly administered. Anew TIF bond issued later this year or early next year in January would retire the debt certificate and take into account other intermediate or long term IHTlF-related capital projects approved by the City Council. Moving from a debt certificate to a TIF bond, backed by TIF increment revenue, will also lower the debt certificate's impact on the City's debt limit. A TIF bond would have no impact on the city's debt limit. Tom Jacob and Associates has provided staff with the names of a bond counsel firm and underwriting firm that they have successfully worked with in the past to produce speed, efficiency and quality in the bonding process for other smaller- type communities like Canton. I would recommend that the City Council direct staff and the Finance Chairman to talk with these recommended firms and present the City Council with aproposal/recommendation at next week's city council meeting to hire such firms (if found to be satisfactory) for the purposes to issue a debt certificate. City Treasurer Aaron Anderson said he has talked to two banks. One bank said maybe the whole thing, and the other bank said maybe a smaller piece of it. Alderman Sarff said to add to the Council meeting agenda for next week. The Finance Committee adjourned at 7:18 p.m. COMMUNITY & INDUSTRIAL DEVELOPMENT. Council Action Update SRPED Executive Director. Mark Rothert reported he submitted an Economic Development Infrastructure grant for $1.6 million. CDEP on the Downtown Building of the former Drow Hardware lot. Took a trip to the Ethanol Plant they asked about the Enterprise Zone which will expire on December 23, 2013. SRPED has funding from a grant in the amount of $400,000. Talk with a group from Chicago interested in housing for residential development. At Linn Street and 5t" Avenue stands now a vacant lot and Subway will be building on this lot which is also in the TIF District. Working with Spoon River College for training with the Cook Company plant. Getting closer to hiring the Resource person who will be part-time for our office. Went to Dixon, Illinois for Main Street training. Had an open air market this last week, first one this year. Was very successful as one vendor made $1,400.00. Hotel/Motel tax proposal for a Marketing Strategy, and will let council know in a couple weeks more about this. Location for Illinois Scenic Bywav Kiosk. Alderman Schenck said this won't cost the city anything except a pad for the Kiosk. We do have to decide where we want this. Alderman Rivero polled the Aldermen for their decision, and each one there wanted the Kiosk at the North end of Jones Park. Mayor Kevin R. Meade also agreed with the selection site. The Community & Industrial Development Committee adjourned at 7:33 p.m. LEGAL & ORDINANCE. Council Action Outdoor Fencing Permit. Alderman Strandberg said we had decided to take fencing down from October through March. Couple businesses would like to have it up until Christmas. Is there a reason for October? Public Works Director Clif O'Brien said the businesses clean their own sidewalks. Alderman Sarff said if the retail places want to decorate, I don't see any reason why they would have to pick them up. Alderman Schenck did not want as a permanent thing. The permit could read can be cancelled for any reason, at any time. Alderman Sarff made the motion for the fencing at retail stores not be allowed during January, February & March, and was seconded by Alderman Schenck. The motion was by unanimous voice vote. Update Ordinance Title 8, Chapter 17 ESDSA. ESDA Director Phil Fleming mentioned that the ordinance has not been updated for 33 years. Mayor Kevin R. Meade said that Phil has some suggestions to put in the ordinance. Committee members referred the ordinance to Public Safety & Traffic Committee for the 23 of June's meeting. Resolution - In Regard to Implementation of Emer~ency Interim Executive Session Act. The resolution has to do with in the event that the Mayor, City Clerk and City Treasurer are unavailable, the powers of the office shall be exercised and duties shall be discharged by their designated emergency interim successors in the order specified. Alderman Sarff made the motion to forward on to Council, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. Waste Management Recyclin~ Program. Alderman Sarff made the motion to forward on to Council, and was duly seconded by Alderman Rivero. Discussion. City Attorney Chrissie Peterson stated that if the City bills for the recycling on the water bills the cost is $4.35 month and if Waste Management bills the cost is $4.70 per month. So we would need some sort of ordinance. Alderman Strandberg said he does want to see the cost for recycling on the water bills. It they are, I will vote down recycling. Alderman Reed said recycling should not be forced on the community, strictly should be voluntary. Alderman Sarff mentioned if the low income people could opt out, but I don't know how many we have to have. Alderman Schenck said this is majority rules and this is an essential program to our community. Everyone that pays for waste pickup a paper goes out and comes back how many want to do recycling. Survey needs to be taken. David Schaab from Waste Management said a survey requires a response 15% would be great, but you may see 10%. What is the opt-out for your waste service? I don't believe you have one. Mayor Kevin R. Meade asked if the rates are comparable for what we will be paying. David Schaab answered that Macomb pays $3.50 and they have a 5 gallon container. The rest of the cost has to do with distance. We are not in a subscription program, if 50 sign up then we're committed. If you have an open program they can get out, the cost of the whole program puts us in a bad light. David Schaab said our program is before you now. Alderman Sarff made the motion to forward on to the Council meeting next week, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. Parking on Avenue C and Pine Street. Alderman Strandberg stated there is no parking on the South side of the street and he has received complaints as they want certain hours only for no parking. Police Chief W. Dan Taylor said we could make it from 7:00 a.m. to 4:00 p.m. of no parking. Alderman Sarff made the motion to amend the ordinance for Monday through Friday no parking from 7:00 a.m. to 4:00 p.m., forward on to council, and was duly seconded by Alderman Rivero. The motion was by unanimous voice vote. City Burning Ordinance. Alderman Strandberg said we can burn yard waste Monday, Wednesday, Friday and Saturday. Our ordinance says can't burn on Monday. Mayor Kevin R. Meade said that yard waste smells and other things people burn. Alderman Sarff asked the fire chief how often they receive calls on burning? Fire Chief Bonnie Cremer mentioned that 50% are illegal. Alderman Sarff made the motion to discuss next week at the council meeting, and was seconded by Alderman Strandberg. The motion was by unanimous voice vote. Resolution -Pre-Annexation Agreement between the City and Julie & Robert Champlin Jr. Alderman Sarff made the motion to forward on to Council the Resolution for the Pre-Annexation Agreement between the City of Canton and Julie & Robert Champlin Jr., and was duly seconded by Alderman Schenck. The motion was by unanimous voice vote. The Legal & Ordinance Committee adjourned at 8:43 p.m. NEGOTIATIONS, GRIEVANCE & PERSONNEL. Hiring of One Police Dispatcher. Alderman Strandberg made the motion to forward on to Council the hiring of one Police Dispatcher, and was duly seconded by Alderman Rivero. Discussion. Police Chief W. Dan Taylor said the City used to have 7 dispatchers and this one positions was put in the budget and it was a balanced budget. Alderman Schenck said he sees advantage and disadvantage fora part time employee. And increasing head count of city government, not a great time. We already have two positions to address in administration. It is a hard decision to know when it is necessary to increase our staff. Police Chief W. Dan Taylor said they should be there on a daily basis. The activity is centered in the dispatch area. Alderman Ellis mentioned that the Police Chief did bring this up at budget time, and there is quite a load on the people we have now. Alderman Reed said we need 911 as assistances count by seconds. And Alderman Reed thanked the police chief for bringing this to our attention. The motion was by unanimous voice vote. 2"d Police K-9 Unit. Alderman Strandberg made the motion to forward on to Council for the hiring of the 2nd Police K-9 Unit, and was duly seconded by Alderman Rivero. Discussion. Police Chief W. Dan Taylor said it would be December before we are ready. Alderman Sarff asked if they needed another drug dog. Alderman Ellis said what if he gets shot. Police Chief W. Dan Taylor mentioned that K-9 Rocko got hurt and we were one year without one. The motion was by unanimous voice vote. ESDA. Mayor Kevin R. Meade said the salary of $2500 a month in budget terms is the accurate salary. We have a full time director now. Alderman Strandberg said he knew the job paid that amount and I don't see it to change. The $2,500 I'm not saying isn't a low salary, I can't see changing for this budget year. Mayor Kevin R. Meade said $2,500 is a very low amount to pay for emergency services. Alderman Sarff said it is the county that gets certified. The other issue is partnering the two governmental body's makes a lot of sense. Alderman Hartford said there is a lot of work that has to be done, and we need a full time person to get things done. ESDA Director Phil Fleming said previously the director was under the fire chief by former mayor Donald Edwards. We've seen storm spotters, traffic direction done before. We should be doing functions under the current ordinance and what the law requires such as coordinating events of disaster, preparedness for inside and outside agencies. And I intend to do this. Alderman Sarff said that the county ESDA Chris Helle is part time and Howard Williams is his assistant and he makes $2,500. Let's explore being part of the county and not having full time and paying around $5,000.00. Committee agreed to forward to the Public Safety Committee in two weeks. Mayor Kevin R. Meade said we still need as coordinator for the city and we need to address the salary. The Negotiations, Grievance & Personnel Committee adjourned at 9:16 p.m. EXECUTIVE SESSION -NEGOTIATIONS, GRIEVANCE & PERSONNEL - TO DISCUSS PERSONNEL; AND LAND SALE. Alderman Sarff made the motion to go in to executive session for the purpose of discussing Personnel, and was seconded by Alderman Strandberg. The motion was by unanimous voice vote. (The executive session did not discuss the Land Sale.) The regular scheduled Clerical Committee meeting convened in to executive session at 9:20 p.m. ADJOURN The executive session convened into open session at 10:10 p.m. Alderman Sarff made the motion to adjourn, and was seconded by Alderman Reed. The motion was by unanimous voice vote. Recording Secretary, Nancy Whites, City Clerk