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HomeMy WebLinkAbout11-08-2005 Clerical Committee. + f CLERICAL COMMITTEE MEETING NOVEMBER 8'$, 2005 @ 6:30 P.M. historic Depot 50 North 4th Avenue Idermen in attendance: Les Cazl, Kevin Meade, Craig West, Larry Sazff. Other dermen in attendance: Jim Hartford, Joe Berazdi, Rick Reed, Eric Schenck. there in attendance: Mayor Rodney W. Heinze, City Clerk Nancy Whites, City reasurer Kathy Luker, City Attorney Jim Elson, Economic Development Director Mark othert, Police Chief Donald Edwards, Fire Chief John Stanko, Wastewater Treatment lant Supt. Joe Cazruthers, Water Treatment Plant Supt Greg Pollitt, Zoning Official lark Wilson, Street Supt. George Spahn, System Maintenance Bill Terry, Joe Ginger ideo Service. Others in audience Daily Ledger John Froehling, Tony from WBYS, ournal Star Brenda Bowen, Mr. & Mrs. Greg Hartsock, Dave Bruketta & 2 e resentatives from AZ, Assistant Fire Chief Dan Oaks, Firefi hter Chazles Devlin. Legal & Ordinance Committee Alderman Kevin Meade, Chairman Undated International Code Series. The current International Codes are over five yeazs old. The codes are updated through supplements every eighteen (18) months, and a complete new code is published every three yeazs.. It is the joint recommendation of the Building Official and Fire Chief that the 2003 International Code series be adopted as the official city code effective January 1, 2006. John further recommends that the 2004 Supplement also be adopted as well. Cost of each complete set of code books is $426.00. One set would be for the City Clerk's office, and second set for the Zoning Administrator, and the third set for the Fire Department. Motion and second by Aldermen Sazff/Meade, to purchase 2 complete set of 2003 International Code Series for the Zoning Administrator, and Fire Department; and the adoption of the 2004 Supplement, and refer to council for their consideration. Discussion. Alderman Sazff asked City Clerk Nancy Whites how often the codes in her office aze used? Nancy responded by saying hazdly at all.. The motion carried by voice vote. Open Burnln$ Ordinance. Fire Chief John Stanko commented that he has become aware of Illinois Environmental Protection Agency administrative rules that govern open burning throughout the State of Illinois. After reviewing these rules, it appears that our city ordinance on open burning is in conflict with the administrative rules. Our current ordinance allows for the burning of landscape waste on Monday, Wednesday, Friday and Saturday between the hours of 9:00 a.m. and sunset. There aze some other restrictions in place as well concerning the burning of landscape waste. The administrative rules prohibits open burning of landscape waste in municipalities that have a population in excess of 2,500 according to the latest federal census. John gave out a copy of the Illinois Environmental Protection Agency administrative rules pertinent to open burning for the council to review. Clerical Committee November 8, 2005 Alderman Carl ask John if the city would be under these administrative rules? John said that it is he understanding we would be. Alderman Cazl ask if the city would be allowed to burn at the old city dump? John said that we would not be able too. Mayor Heinze asked about Recreational burning. John said that would be allowed. Motion and second by Aldermen Sazff/West to take this under advisement. The motion carried by voice vote. Update on Allesed Junk Yard. City Attorney Jim Elson referred to his memo about the various matters he is working on. The alleged salvage yard at old West Locust Street was before the court again on Friday, November 4. The owner stated that he is obtaining a building to house all of the inoperable vehicles which he alleges he is to repair. The court observed that it will need to be an awfully lazge building and ordered him to have vehicles removed by the next court date for city matters, December 2. On the hearings coming up, one was a suit by a former city worker. The judge gave a favorable ruling for the City. The case of the City of Canton v. Maurice Thompson for demolition of a residential structure at 352 West Spruce Street, we have substituted the new owner, Raymond E. McClaskey, as defendant. He has failed to file an answer or other appeazance in the allotted time, and our motion for default judgment is to be heard on November 15. Liftins Parkins Restrictions on Avenue B from West Locust to West Chestnut. Alderman Meade mentioned that the business of Prairie Schooner has asked for the City to lift those restrictions. Alderman Meade stated that when the business moved into this area there was concern about pazking as a house was across the street. Now the house is no longer there. Motion and second by Aldermen CazUWest, to recommend to the city attorney to draft an ordinance amending the previous ordinance and refer to council for their consideration. The motion carried by voice vote. Alderman Schenck ask if the City was getting regular reports from Bell, Boyd & Lloyd of what they have done, what have they accomplished, what do they see needs to be done? Economic Development Director Mark Rothert said he has been in contact with them and does see their bills. Mayor Heinze also said he gets the bills and shazes them with Mark. Mayor Heinze said he has some problem deciphering them Aad we should have some level of trust here. Alderman Meade is the contact person with them Mazk Rothert mentioned. Alderman Sazff wants a summary of what they had done or, what they aze going to do. Alderman Meade wants this item on his agenda every month. The Legal & Ordinance Committee adjourned at .6:47 p.m. Finance Committee v 2 CLERICAL COMMITTEE MEETING NOVEMBER 8~, 2005 @ 6:30 P.M. historic Depot SO North 4~h Avenue ldermen in attendance: Les Carl, Kevin Meade, Craig West, Larry SaziJ: Other dermen in attendance: Jim Hartford, Joe Berardi, Rick Reed, Eric Schenck. there in attendance: Mayor Rodney W. Heinze, City Clerk Nancy Whites, City reasurer Kathy Luker, City Attorney Jim Elson, Economic Development Director Mazk othert, Police Chief Donald Edwazds, Fire Chief John Stanko, Wastewater Treatment lant Supt. Joe Carruthers, Water Treatment Plant Supt Greg Pollitt, Zoning Official lark Wilson, Street Supt. George Spahn, System Maintenance Bill Terry, Joe Ginger ideo Service. Others in audience Daily Ledger John Froehling, Tony from WBYS, ournal Staz Brenda Bowen, Mr. & Mrs. Greg Hartsock, Dave Bruketta & 2 e resentatives from AZ, Assistant Fire Chief Dan Oaks, Firefi hter Charles Devlin. Legal & Ordinance Committee Alderman Kevin Meade, Chairman Updated International Code Series. The current International Codes aze over five years old. The codes are updated through supplements every eighteen (18) months, and a complete new code is published every three years. It is the joint recommendation of the Building Official and Fire Chief that the 2003 International Code series be adopted as the official city code effective January 1, 2006. John further recommends that the 2004 Supplement also be adopted as well. Cost of each complete set of code books is $426.00. One set would be for the City Clerk's office, and second set for the Zoning Administrator, and the third set for the Fire Department. Motion and second by Aldermen Sazff/Meade, to purchase 2 complete set of 2003 International Code Series for the Zoning Administrator, and Fire Department; and the adoption of the 2004 Supplement, and refer to council for their consideration. Discussion. Alderman Sazff asked City Clerk Nancy Whites how often the codes in her office aze used? Nancy responded by saying hazdly at all. The motion carried by voice vote. Open Burnine Ordinance. Fire Chief John Stanko commented that he has become awaze of Illinois Environmental Protection Agency administrative rules that govern open burning throughout the State of Illinois. After reviewing these rules, it appears that our city ordinance on open burning is in conflict with the administrative rules. Our current ordinance allows for the burning of landscape waste on Monday, Wednesday, Friday and Saturday between the hours of 9:00 a.m. and sunset. There aze some other restrictions in place as well concerning the burning of landscape waste. The administrative rules prohibits open burning of landscape waste in municipalities that have a population in excess of 2,500 according to the latest federal census. John gave out a copy of the Illinois Environmental Protection Agency administrative rules pertinent to open burning for the council to review. -~ Clerical Committee November 8, 2005 Alderman Les Carl, Chairman Bills. Motion and second by Aldermen SaziT/Meade, to refer the bills to council for their consideration. Discussion. Alderman Berardi wanted to know who was overseeing the bills of Bell, Boyd & Lloyd? Mayor Heinze mentioned that Mark Rothert looks over their bills. Alderman Berazdi questioned the bill from Brooks Techology, and working out of a home front instead of store front. Alderman Berardi feels there should be a review committee as two attorneys from the same office billing the City at the same time. Alderman Berardi felt we should be doing something about the recommendation made by the city auditors as they are critical. Alderman Sazff mentioned that part of the problem is we don't have enough people at the city building to do this central purchasing. As far as a home front v. store front, we have zoning laws for this. Mayor Heinze mentioned that he had bought 2 computers from Brooks Tech for his office and the labor and cost was bid at $30.00 hour. Feel I have the obligation to get the best value. The motion carried by voice vote. Treasurer's Report. Alderman Berardi ask City Treasurer Kathy Luker if her report given out tonight compazes in any way to her statement that was made a couple weeks ago about not being responsible for the content of the Treasurer's Yearly Report from 2004-2005. Kathy mentioned that the 2004-2005 Treasurer's Report was to be done by the former city treasurer and has to be published in the paper by law. Kathy had reported that she would be putting in the paper the former treasurer's report and she would not be responsible for the content. Her report given tonight Kathy said, is my monthly report. Alderman Carl mentioned that the Health Care Fund has a deficit of $208,455. Alderman Berazdi mentioned about the auditor recommending the City hire a Budget Director. Anytime we have a question we don't have anywhere to go. Alderman Sazff said the city has taken care of some of the recommendations, such as we changed the way water bills were paid. That was a recommendation by the auditors. Motion and second by Aldermen West/Sazff, to refer the treasurer's report to council. The motion carried by voice vote. Loan Rates Refinancing City Buildine 2 North Main. Motion and second by Aldermen Sazff/West, to refinance the city building of 2 North Main from Wells Fargo Bank on a preferable rate based on quotes of 10 year payment plan on an annual basis, with payments of $2,382.37. Discussion. Alderman Cazl mentioned we're refinancing the first mortgage and the interest rate if 5%. We receive .10 % discount going on an annual basis. Alderman Schenck asked, what would be wrong going for a lower rate of a 5 year refinancing and refinancing in 5 years. Alderman Cazl said because of running the risk of the interest rates increasing. The motion carried by voice vote. HHS Update. Mayor Heinze mentioned this is an update on a million dollar loan. Congressman Lane Evans office is trying to help us in forgiven of the loan and his office has helped in lowering the interest rate from 7% to 1% The timing is not good and I will 3 L Clerical Committee November 8, 2005 address this again in a couple months. Some $300,000 is still owed on the loan. Alderman Berazdi ask if the city gets an annual audit on the TIF area? City Treasurer Kathy Luker commented it is part of the city audit. Receipt of $425.000 Stipulated grant funds IEPA. Alderman Carl made the following recommendation to pay from these funds...the November 4~' 2004 bill for IH tear down that came from Chapman & Cutler in the amount of $5,500, $400,000 be paid on the Mid America Bank loan, and the remaining $19,500 be placed in the General Fund to reimburse the City for the trailer removal at the IFi site. Motion and second by Aldermen Sazff/West, to approve the recommendation and refer to council for their consideration. Discussion. Economic Development Director Mazk Rothert said this is for the removal of asbestos and advised the council to investigate the splitting of funds to various azeas before doing this. Alderman Carl told Mark it is not for the asbestos removal, it is for the demolition of the buildings. Zoning Officer Clark Wilson said it was for the asbestos removal. Asbestos removal was part of the entire $1.2 million. Clark said he highly recommends we make sure somebody contacts IEPA so they know what we aze doing. This took a lot of agony to get. Alderman Carl thought the bill from Chapman & Cutler for $5,500 was part of that? Clark was asked to check on that. Clark Wilson mentioned that the termination of the stipulated grant came about because of Canton. Before, it was a revolving loan fund, and nobody was taking the opportunity to use it. The funding originally came from the Environmental Protection Agency. And he said he highly recommends we spend it on asbestos and demolition removal. Clark said at this very moment the City is applying for another grant of $150,000 plus $600,000 on removal. Alderman Carl said if the motion can take an amendment, if this cannot be done, then to allow all funds be applied to Mid America National Bank on the loan. Motion and Second agreed. City Treasurer Kathy Luker was asked by Alderman Berazdi to check on the Tif District having to have a special separate audit. Mayor Heinze said he would be checking also. Motion and second by Alderman Sazff/Meade, to add the bill from Chapman & Cutler to the bill list for next week's council meeting. Discussion. Alderman Carl asked if this should be paid from the TIF funds? Was decided it should be. The motion carried by voice vote. Sale of former City Building 210 East Chestnut Street. Economic Development Director reported that a meeting was held with City Attorney and Mark. Some civil action has to take place before the building can be put up for auction. We have to have an M&I Appraisal to determine the best value. We have an appraisal, just don't know if has a M& I approval. The city attorney will be drafting a resolution to authorize the auction of the building. Alderman Carl ask Mazk if the bidders could be notified as a courtesy what is taking place. Mark said he would notify them. 4 .y Clerical Committee November 8, 2005 AZ Presentation. Dan Walter Vice President Risk Management. Dan said they aze a new company and they work with Self Funded Health Insurance Programs as we do edit self funded claims. We do medical claims (doctor), and procedural claims (hospital). We aze able to go through softwaze edit 100% of all your claims. We do edit your claims and will go through a claims edit of who is illegible for the policy. We check on the employer service to see if was paid correctly. Will do procedural edit, and also eligibility edits, and pharmacy edits. We feel we are the first company computer edit of both sides of the billing process. We are talking about over chazges. We have the ability to go back 2 yeazs on claims and we work with your 3`~ party administrator. The cost to the city is nothing as we work on a contingency basis. The money goes directly to the city. We get paid after the city receives their funds. We're looking at recovering up to 10%. We are asking the City to enter into contract with us, which is a one year contract. Alderman Carl said he was told eazlier the fee collected would be 20%, and you mentioned 30%. Dave Bruketta who was in the audience agreed with Alderman Carl that it had been reduced down to 20%. Alderman Sazff asked Dan to furnish references. Alderman Sazff also ask Dan where they collect the funds from? Dan reported, hospitals, doctors and pharmacy. Alderman Schenck ask if the employees would be responsible? Dan said, no! It is because the hospital has been over charging. You will receive a monthly report of how much money we find. Mayor Heinze ask if there is a statute of limitations? Dan said, no! We can go back 2 years and we're looking at maybe 3 yeazs. Motion and second by Aldermen Meade/Sazff, to refer the contract to the city attorney for his review, and report to council. The motion carried by voice vote. Replacement of Hydraulic Tools Purchase. Fire Chief John Stanko mentioned that they have located a demonstrator set of hydraulic tools that are available for purchase. The available tools aze Amkus Rescue Systems brand, which has been a major manufacturer of hydraulic rescue tools for many years. The compliment of tools would be well-suited to our needs and replace all of our outdated existing hydraulic tools. The tools aze compatible with the electric hydraulic pump purchased eazlier this yeaz, which was part of our planned upgrade. Total value of these tools if purchased new would be $12,250.00. The total package has been offered to us for $5,206.25. If approved, John would propose the financing of this purchase be done by several sources as follows: City of Canton $2,500.00 Rescue Fund $1,202.44 Foreign Fire Ins Fund 1 503.81 TOTAL $5,206.25 Motion and second by Alderman Sazff/West, to allow the purchase and refer to council for their approval. Discussion. Alderman West ask if they come with warranty? John said he would check on that. Alderman Carl wanted to know if the present tools would have any value, and John thought not. Alderman Reed wanted if possible to donate the 5 Clerical Committee November 8, 2005 current tools to another department. Fire Chief John Stanko mentioned that was possible and will look into doing that. The motion carried by voice vote. Outside Payroll Service. City Treasurer Kathy Luker mentioned that always in the past the city had inside payroll person of the deputy clerk to do the payroll. City Clerk Nancy Whites is the payroll authority for the city. We have a dire need to go back to outside source. Price quotes were received for outside payroll service to the City of Canton as follows: ADP -Automatic Data Processing, Inc, approximate fees $11,405.20. Wells Fazgo Express Pay approximate fees $11,894.60. Kathy said she has receive positive feed back on ADP from those using the service here in town. They aze from Indiana and have been in business since 1948. Wells Fargo Bank is from Minnesota. Wells Fazgo Bank has only restarted their payroll service one and a half yeazs. This service would begin January 1, 2006. Kathy mentioned cost that have incurred for this year with LOCIS is over $7,000. It was discussed of having bi- weekly payroll would be cheaper as to weekly. Kathy is working to have direct deposit for all payroll checks. Kathy is recommending ADP as they have years of experience, and there is no contract we sign. Motion and second by Aldermen Meade/Sazff, to authorize going to out side service for payroll from ADP and refer to council for their consideration. The motion carried by voice vote. Update Garbage Depreciation Account. City Treasurer Kathy Luker gave a recap of Gazbage Collection Fees and Amount dues to Garbage Depreciation Account. Kathy felt this was an oversight of the last treasurer. Kathy went to Public Works Director Clif O'Brien to receive the information that was decided on by council in the past. The information is that every dollar collected for gazbage fees was to be put in Garbage Depreciation Account. Kathy received help from Greg Pollitt and Connie Glad of the water department on the figures. City has been collecting fees since June 4, 2004, and one dollar of every $8.00 is 121/2%. Kathy asked the auditors how to handle the back payments, and they said to just use flat percentage of 12 %2% amount collected for gazbage fees. In that gazbage account on May 17 the former treasurer had me write a check to the depreciation account of $5,810.00. And I .think that was her impression of $1.00 per person. I adjusted the amount and paid $67,039.54 and now the depreciation account has $120,000 total. Alderman Carl reported the Loan Committee had approved a revolving loan for AZ Corporation of $60,000 at 5% interest. Those on the committee was representatives of Wells Fazgo Bank, Mid America National Bank, Mayor Rodney Heinze, City Attorney Jim Elson and Alderman Les Carl. Alderman Schenck ask what criteria of loan requirements? Alderman Carl said jobs. A total of $68,000 is in the account now but $8,000 has also been asked for. Motion and second by Aldermen Sazff/Meade, to accept 6 i .•,-: Clerical Committee November 8, 2005 the recommendation bf the Loan Committee and refer to council for their consideration. The motion carried by voice vote. Finance Committee adjourned at 8:14 p.m. Community & Industrial Development Alderman Craig West, Chairman Update Activities. Graham Hospital will have a open house for their remodeling of their emergency azea from 2 to 4:00 p.m. for the public. The Community & Industrial Development Committee adjourned at 8:16 p.m. Negotiations, Grievance & Personnel Alderman Larry Sarff, Chairman Retirement Health Savings Plan. Assistant Fire Chief Dan Oaks presented this plan that was discussed by the Fire Department Pension Boazd, and submitted by Larry Moshier. The name of this retirement health plan is Retirement Health Savings (RHS). Many public sector employees separate from service prior to eligibility for Medicaze. Not all public sector employers provide full post-employment benefits. Even when covered by Medicaze, some expenses aze not fully covered. As a result, many employees plan on either deferring retirement, or a decreased standazd of living after retirement. This is a program that allows employees to accumulate funds for post- employment/retirement medical expenses: Health insurance and Out-of-pocket medical expenses. Funds may be contributed on a pre-tax basis-both for income taxes and FICA and employment taxes. Investment earnings aze tax-deferred. Distributions for covered medical expenses aze tax-free for participants, spouses, and dependents. The first RHA plan was established five yeazs ago today. Employee may select investment options. Benefit Eli ig bility - May be age or event determined. "Event" may be date of retirement benefit eligibility, or sepazation after a specified age has been reached, or other "events." Benefits may be paid out to active employees that have reached age or service-based eligibility. Employer responsibilities include: 1) Administer plan via EZ Link. 2) Remit contributions. 3) Provide enrollment, benefit eligibility and termination information. 4) Perform tax duties associated with de minimis payments. Participant fees. Annual account maintenance fee of $30.00 ($7.50 charged quarterly) plus: Asset-based fee of .40% (Lowered to .30% if average 457/401 balance for the employer are greater than $25,000). How to Proceed? Employer a) decides on coverage and features. b) determines funding method(s). c) completes plan adoption agreement. d) amends ICMA-RC administrative services agreement. e) adopts the VantageCaze RHS trust and 7 Clerical Committee November 8, 2005 resolution. ICMA-RC will provide technical support in making decisions and completing forms. Dan said this is a healthy nest egg to help health insurance of the employee when they retire. The cost aze borne by the participants. Alderman Sazff asked who is eligible? Dan said any city employee in a pension plan is eligible. Alderman Sazff ask if this presentation has been made to everyone or just the fire? Dan said Larry Mosier presented it to the Fire Pension Boazd and Larry suggested I take it to the Insurance Committee. Motion and second by Alderman Sazff/Meade, for council next week under Negotiations, Grievance & Personnel for an executive session 1) Retirement Health Savings Plan; 2) Outside Payroll Service. The motion carried by voice vote. Mayor Heinze announced that City Hall will be closed on Friday November 11 to observe Veterans Day. Motion and second by Aldermen Meade/West, to go into executive session. Roll call. AYES -Aldermen Cazl, Meade, West, Sarff. NAYS -None. 4 AYES, 0 NAYS, 0 ABSENT. Motion carried. This portion of the open session of the Clerical Committee adjourned at 8:33 p.m. The Executive Session for the Negotiations, Grievance & Personnel Committee to discuss - Task Force Reassignment; Pending Criminal Investigation; Contract Negotiations Regarding Fire Department; Legal Matters Considering Executive Session Minutes, adjourned at 9:35 p.m. Recording Secretary, ~~~~~~ (~~~~ Nancy Whites, City Clerk 8