HomeMy WebLinkAbout07-21-09 Canton City Council Meeting minutesA regular meeting of the Canton City Council was held on July 21, 2009 in Council
Chambers at 50 North 4t" Avenue, Canton, Illinois.
City Clerk Nancy Whites called the meeting to order at 6:30 p.m.
Pledge of Allegiance opened the meeting followed by the Invocation given by City
Clerk Nancy Whites.
Mayor Kevin R. Meade was absent.
Nominations were accepted from the floor and Alderman Larry Sarff was
nominated to serve as Pro Tem mayor.
Pro Tem mayor Alderman Sarff called for roll call -Present -Aldermen Rick Reed,
Eric Schenck, Craig West, Larry Sarff, Jorge Rivero, Jerry Ellis, Jim Hartford, Jason
Strandberg. Absent -None.
Others in attendance was -City Clerk Nancy Whites, City Treasurer Aaron
Anderson, City Attorney Chrissie Peterson, Police Chief W. Dan Taylor, Fire Chief
Bonnie Cremer, Public Works Director Clif O'Brien, Wastewater Treatment Supt.
Joe Carruthers, Water Treatment Supt. Greg Pollitt, Video Services by Joe Ginger.
In the audience was -News Media of John Froheling from the Daily Ledger, Mark
Bixler from WBYS Radio, Stacey Creasy from The Democrat, Kevin Sampler from
Journal Star, Kim Scott and employees, Brenda & Ron Dilts, ESDA Director Phil
Fleming, Attorney Jon Faletto.
CONSENT AGENDA
Minutes of Council meeting held on June 30, 2009.
Minutes of Clerical Committee meeting held on July 14, 2009.
Alderman Hartford made the motion the Consent Agenda be placed on file as
presented, was duly seconded by Alderman Reed. The motion was by unanimous
voice vote.
BILLS. Alderman Schenck made the motion all bills presented be paid, and was
duly seconded by Alderman Strandberg. Roll call. AYES -Aldermen Strandberg,
Hartford, Ellis, Rivero, Sarff, West, Schenck, Reed. NAYS -None. 8 AYES, 0
NAYS, 0 ABSENT. Motion carried.
TREASURER'S REPORT. Alderman Strandberg made the motion the Treasurer's
Report to accept as presented and was duly seconded by Alderman Hartford. The
motion was by unanimous voice vote.
COMMITTEE REPORTS:
Finance.
Council Action
Radial Collector Well Change Order #1 with Reynolds Inc.
Alderman Schenck made the motion to approve the Radial Collector Well Change
Order #1 with Reynolds Inc. for Generator Building per IDNR in the amount of
$!71,675.79; and change electrical panel board to draw out breaker type per
Ameren CIPS in the amount of $9,946.20, and was duly seconded by Alderman
Reed. Roll call. AYES -Aldermen Reed, Schenck, West, Sarff, Rivero, Ellis,
Hartford, Strandberg. NAYS -None. 8 AYES, 0 NAYS, 0 ABSENT. Motion
carried.
TIF Debt Certificates Terms and Amount.
City Treasurer Aaron Anderson introduced Scott Stevenson, Vice President, Public
Finance and Ben Young, Institutional Sales from Ruan Securities, a Division of D.A.
Davidson & Co., Des Moines, Iowa.
Scott Stevenson presented a Preliminary Term Sheet that is subject to
change.
The Term Sheet: August 10, 2009 date of delivery.
Sale Date: July 27, 2009
Date of Closing/Delivery: August 10, 2009
Insurance Amount: $4,000,000.00
Purchase Price: 100.000
Interest Due: Interest is payable semi-annually on December 1, and June 1,
commencing December 1, 2009.
Coupon Interest Rate: 2.750°°
Yield to Maturity: 2.750°°
Structure: The Certificates will mature December 1, 2011.
Optional Redemption: The Certificates will be callable on June 1, 2010 or
any date thereafter at the price of par plus accrued interest to the date
thereafter at the price of par plus accrued interest to the date of call.
Purpose: The City of Canton is seeking to acquire financing for the purpose
of constructing infrastructure related to the Cook Medical development on
the City's Old "IH Site". Included in the financing is funding for related
professional services and a refinancing of an existing bank loan in the
amount of $800,000. The City also intends to fund a joint project with the
school district involving building rehabilitation on the former Drow Lot.
Form of Financing: The City will issue $4,000,000 Debt Certificates.
No Credit Rating: A separate credit rating will not be provided for the
Certificates.
Financial Information: Most recent financial statements for the fiscal year
ending April 30, 2008. Financial Statements of the City for prior years are
available upon request.
Security: The Certificates are Limited Tax General Obligations of the City,
for which its full faith and credit has been irrevocably pledged, and are
payable from any funds of the City lawfully available and annually budgeted
for such purpose. There is no statutory authority for the levy of a separate
tax in addition to other City taxes or the levy of a special tax unlimited as to
rate or amount to pay the principal of or interest on the Certificates. The
Certificates are considered debt under Illinois law; are not subject to
appropriation risk; are non-cancellable and are not subject to completion
risk. The City intends to refinance the Certificates with General Obligation
(Alternate Revenue Source) Bonds payable by TIF revenue.
Legal Opinion: The opinion of Ice Miller LLP, Chicago, Illinois, as to the
legality and tax status of the Bonds will be provided by the City.
Federal and State Tax Considerations: The opinion of Bond Counsel will
state that under present laws and rulings, interest on the Bonds will be
excluded from gross income for federal income tax purposes and will both
be an item of tax preference for purposes of the federal alternative
minimum tax imposed on individuals and corporations under the Internal
Revenue Code of 1986, and, for the purpose of computing the alternative
minimum tax imposed on corporations, such interest will not be taken into
account in determining adjusted current earnings.
There may be certain other federal tax consequences to the ownership of
the Bonds by certain taxpayers, including without limitation, corporations
subject to the branch profits tax, financial institutions, certain insurance
companies, certain S corporations, individual recipients of Social Security or
Railroad Retirement benefits and taxpayers who may be deemed to have
incurred (or continued) indebtedness to purchase or carry tax exempt
obligations.
Bond Counsel will express no opinion with respect to such other federal tax
consequences to owners of the Bonds. Prospective purchasers of the Bonds
should consult with their tax advisers as to such matters.
Bank Qualification: The Certificates will be designated as "qualified tax
exempt obligations".
Paying Agent/Registrar: Heartland Bank and Trust Company, Bloomington,
Illinois.
Denominations: $5,000 and integral multiples of $5,000 in excess thereof.
Expenses: The City will pay for the legal opinion and the Placement
Agent's fee.
Local Best Efforts: The Placement Agent will employ its full resources and
undertake its best efforts to place the financing with local institutions by
July 27, 2009. While the engagement of the Placement Agent to arrange
for the placement of financing is not a commitment to provide financing,
the Placement Agent will consider underwriting the Certificates if a local
placement cannot be arranged.
Alderman Sarff asked does this have to happen that quickly! The mayor would
like to have this carry over to the August 4t" Council meeting as the city
administrator would be here by then. Scott Stephenson said it did not have to
happen tonight.
Alderman Schenck said we have been trying to do this for some time. If we don't
get this going for the Drow lot we won't be able to get a handle on it. I see no
reason this can't be approved tonight. I hate to see us continue to procrastinate.
Scott Stephenson said even if passed tonight we are still some ways off of
finalizing.
Alderman Ellis mentioned that this is just preliminary. Scott said this reflects a flat
bid the 2.75% and we're willing to negotiate.
Alderman Strandberg made the motion to accept the Preliminary Term Sheet for
Debt Certificates as presented, and was duly seconded by Alderman Schenck.
Roll call. AYES -Aldermen Strandberg, Hartford, Schenck, Reed. NAYS -
Alderman Ellis, Rivero, Sarff, West. 4 AYES, 4 NAYS, 0 ABSENT. Motion
defeated.
Alderman Sarff made the motion to send the Preliminary Term Sheet for Debt
Certificates to the August 4t", 2009 Council meeting, and was duly seconded by
Alderman Hartford. Roll call. AYES -Aldermen Reed, Schenck, West, Sarff,
Rivero, Ellis, Hartford, Strandberg. NAYS -None. 8 AYES, 0 NAYS, 0 ABSENT.
Motion carried.
Legal & Ordinance.
Council Action
None.
Community & Industrial Development.
Council Action
None.
Negotiations, Grievance & Personnel.
Council Action
None.
COMMUNICATIONS FROM MAYOR KEVIN R. MEADE -
Appointments.
Alderman Sarff reported that the mayor will make the appointments on August
4t" Council meeting.
OLD BUSINESS:
ORDINANCE -AMENDING ORDINANCE NUMBER 1966 PROVIDING FOR A NO
PARKING SIGN AT THE 200 BLOCK OF WEST PINE, PROHIBITING PARKING ON
THE SOUTH SIDE OF THE STREET FOR 75 FEET EAST WITH AVENUE C, FROM 7:00
A.M. TO 4:00 P.M. ON SCHOOL DAYS. Second reading, and read by title.
Alderman Rivero made the motion to table the ordinance to the Mechanical
Committee on July 28, 2009 meeting, and was seconded by Alderman Strandberg.
The motion was by unanimous voice vote.
ORDINANCE -AMENDING CHAPTER 12 (PARKS) OF TITLE 8 (PUBLIC WAYS &
PROPERTY). Second reading, and read by title. Alderman Strandberg made the
motion the ordinance be placed on its passage, and was duly seconded by
Alderman Reed. Discussion. Alderman Strandberg said we can't shut down the
park because we're afraid they will go somewhere else and tear it up. Just last
Monday night trash was not less as the volunteers pick up the mess before
anyone comes to work. The kids jump down from the bandstand onto the flowers
and then sit on them. We have given them ample time. Alderman Sarff said the
ordinance will close down the park from 9:00 p.m. until 6:00 a.m. Roll call. AYES
-Aldermen Strandberg, Hartford, Ellis, Rivero, Sarff, West, Schenck, Reed. NAYS
- None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried. Ordinance being #1984.
NEW BUSINESS:
ORDINANCE -AMENDING CHAPTER 5 (PARKING RULES) OF TITLE 9, (TRAFFIC
REGULATIONS). First reading and read by title.
ORDINANCE - AMENDING CHAPTER 16 (DIRECTOR OF BUDGET AND
ADMINISTRATION) OF TITLE 1 (ADMINISTRATION). First reading and read by
title.
ORDINANCE -AMENDING TITLE 3, CHAPTER 2 (ROOFING LICENSES). First
reading and read by title.
ORDINANCE -AMENDING TITLE 8 (INTOXICATING LIQUORS). First reading and
read by title.
RESOLUTION -APPROVING APRE-ANNEXATION AGREEMENT BETWEEN THE
CITY OF CANTON AND CORY SCHOONOVER. First reading and read by title.
Alderman Reed made the motion the resolution be adopted, and was duly
seconded by Alderman Schenck. The motion was by unanimous voice vote. The
resolution being #3897.
EXECUTIVE SESSION - TO DISCUSS PENDING LITIGATION. Alderman Reed made
the motion to go into executive session to discuss Pending Litigation, and was
duly seconded by Alderman West. The motion was by unanimous voice vote.
The regular scheduled council meeting convened into executive session at 6:55
p.m.
The regular scheduled council meeting reconvened into open session at 7:42 p.m.
Attending the open session of the regular scheduled council meeting after the
executive session was Stacey Creasy from the Democrat, Kevin Sampler of the
Journal Star, John Froheling from the Daily Ledger, Mark Bixler from WBYS Radio,
Kim Scott and employees of Outskirts Bar & Grille.
Aldermen attending -Rick Reed, Eric Schenck, Craig West, Jorge Rivero, Jerry Ellis,
Jim Hartford, Jason Strandberg. Absent -None.
Also attending -Alderman Sarff Pro Tem mayor, City Clerk Nancy Whites, City
Attorney Chrissie Peterson, City Treasurer Aaron Anderson.
This portion of the open session reconvened at 7:43 p.m. Alderman Pro
Tem May Larry Sarff said the request is coming from Outskirts Bar & Grille
to reconsider their hours.
City Attorney Chrissie Peterson was asked to give background on this issue.
Chrissie reported that the Liquor Commission heard the case before and
two of the commissioners granted them the right to open up Outskirts Bar
& Grille restaurant at their regular hours. However the Liquor
Commissioner denied that request.
Alderman Strandberg made the motion to allow for Outskirts Bar & Grille to
be open under their regular hours for the restaurant beginning July 23rd
and was duly seconded by Alderman Reed. Roll call. Alderman
Strandberg, Hartford, Ellis, Rivero, Sarff, West, Schenck, Reed. NAYS -
None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.
ADJOURN
Alderman Hartford made the motion to adjourn, and was duly seconded by
Alderman Ellis. The motion was by unanimous voice vote.
The regular scheduled Council meeting adjourned at 7:46 p.m.
Nancy Whites, City Clerk
APPROVED:
Kevin R. Meade, Mayor