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Home My WebLink About09-19-1989 Council Minutes 077 A regular meeting of the Canton City Council was held on September 19, 1989 in council chambers. PLEDGE OF ALLEGIANCE OPENED THE MEETING, FOLLOWED BY THE INVOCATION GIVEN BY NANCY 4VHITES CITY CLERK. Mayor Edwards asked for roll call at 6:30 p.m. Present - Aldermen Zilly, Steck, Sarff, Meade, May, Chapman. Absent - Aldermen Kovachevich, Bohler. MINUTES OF SEPTEMBER 5th MEETING. A correction on page 74, _m the date of the council meeting should read September 5th instead of the 9th. On page 75 the second paragraph the first ~ sentence, eliminate the word well. Motion by Alderman Sarff, second by Alderman Zilly, the minutes of September 5th be accepted and placed on file as amended. Voice vote, motion carried. Unanimous. BILLS FOR AUGUST. Bills of the P~Iaintenance Department to the Water Department for $27.64; Illinois Bell $44.63; CIPS $159.55 and the Street Department $54.59 be added to the list for payment. Also, a bill from Slack's Excavating for the removal of sludge in the amount of $31,942.80. Motion by Alderman Sarff, second by Alderman Steck, all bills properly approved be paid. Discussion. Cliff Sagaser, city engineer stated that the bill of Slack's Excavating will be totally reimbursed by IDOT. Roll call. AYES - Aldermen Chapman, May, Meade, Sarff, Steck, Zilly. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. COMMITTEE REPORTS: Finance. Council Action The VFW had their service line cut some three ears a o when Y g the city's main was being installed on Sam Scott by Hillyer Contractor. The line had been repaired by the contractor, inspected and accepted by the city's consulting engineering staff. Later on the line pulled apart as a result of the settling of backfill material. The city repaired the service line. In the time from the original repair and the city's repair, the VF~V had problems with the sewer line and had to have a plumber on the site. The VFW had to install a clean out adjacent to their building. A bill for $470 represents the bill from the plumber. Cliff Sagaser, city engineer in the committee meeting recommended the city pay ~ of the bill, but not for the clean out that was installed. Milburn Smith, commander of the Canton VF4V Post spoke to council and informed them that the post had a meeting last week and had agreed not to accept this offer, because you're willing to pay half you know you're wrong. We feel the city should be responsible for all of the bill. Mayor Edwarcis said we were trying to compromise, not admit guilt. Alderman Sarff said there was no offer from me at the committee meeting, and I was the only alderman at that meetinq. ~ Motion by Alderman Sarff, second by Alderman Steck, not to consider the bill at all. Discussion. Alderman Nieade said after reading the committee minutes the contractor was in part responsible for the initial problem. I have a problem rejecting this bill, the city does have some responsibility. Roll call. AYES - Aldermen Zilly, Steck, Sarff. NAYS - Aldermen Meade, May, Chapman, Mayor Edwards. 3 AYES 4 NAYS 2 ABSENT. Motion defeated. Motion by Alderman Sarff, second by Alderman Zilly, to send 078 CONTINUED September 19, 1989 Motion by Alderman Sarff, second by Alderman Zilly, to send the issue back to the Legal & Ordinance committee. Alderman Steck, asked for a more detailed bill. Voice vote, motion carried. Unanimous. Larry Sprague presented a concern of his to council. He said he was charged for the pumping of Well #1 all of the month of June and July, when the well was not in use until July. He doesn't feel it is fair to make the charge retroactive to the month of June. Alderman Zilly commented that the water conservation variance committee made the charges retroactive. Alderman Meade said the ordinance was passed on August 15. The intent to charge the fee was to be in July when the well was started. We need to make a correction, as one cycle month would have to be credited. Elaine Scott head cashier in the water department informed the council that the cost for reproqramming the water bills to correct the over billing would amount to $1,140. Cliff Sagaser, city engineer cautioned the council as he said we had incurred quite a cost on the electricity that day of July 7th. Motion by Alderman Steck, second by Alderman Zilly, Well #1's date for incurring charges is July 7th. Discussion. Alderman Meade preferred the date for start up of the well as July 17, he would like to compromise. Roll call. AYES - Aldermen Chapman, May, Sarff, Steck, Zilly. NAYS - Alderman Meade. 5 AYES 1 NAY 2 ABSENT. Motion carried. PUBLIC HEARING - 7:00 P.M. PROPOSED TAX LEVY. Purpose of the public hearing, the amount of the current proposed tax levy, exclusive of election costs, is $1,159,257.05. This is an approximate increase of 20~ over the preceding year's extension. Mayor Edwards asked for input from the audience. Mae Hedden, 1405 E. Elm said she had a great concern for those who are unemployed. Canton has to be taken care of. Mayor Edwards asked if anyone else wanted to speak. He received no response. Motion by Alderman Meade, second by Alderman Sarff, to close the public hearing. Voice vote, motion carried. Council reconvened in regular session at 7:02 P.M. Negotiations, Grievance & Personnel. Council Action Motion by Alderman Sarff, second by Alderman Chapman, to sponsor an office worker for 15 hours per week at minimum wage for this school term. Roll call. AYES - Aldermen Zilly, Steck, Sarff, Meade, May, Chapman. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. Informational: Alderman Sarff reported that the a grievance settlement had been reached with the fire union contract concerning David Burnham. Community & Industrial Development. Council Action None. ~79 CONTINUED September 19, 1989 Legal & Ordinance. Council Action None. COMMUNICATIONS FROM MAYOR EDWARDS. Mayor Edwards said he had received a letter from the Burlington/Northern Railroad. They are suggesting input into the railroad right-of-way that runs North and South some 19.39 miles. They want a letter from us as to what our intent would be on the local regional land use. The city has made an offer on the depot, we have not heard from them as of yet. The land might be used for a bicycle trail, or a walking trail. Planning & Zoning might want to consider the use of the land. 4Je have been invited to bid on a dredge from MSD which has to be bid by September 26. The estimated value is in the 121 thousand dollar range. Mayor Edwards asked Nelson Carlo to speak to council about CIC. Mr. Carlo asked the council to release the stock held by the city of Harriett Schelich. He wants the city to release that stock to him so he can get operating money. Nelson said some ten months ago I came here and I have worked very hard, alot of problems have developed. Alot of delays because of Liza Foley and her brother. The bankruptcy had alot of negative feelings. I have put in $300,000 of my own money, but we're not out of the woods yet. I have convinced the arsenal to allow Abbott Industries to transfer 2 contracts to CIC. Mayor Edwards asked Nelson Carlo what he thought the value of the stock would be. Nelson responded what he thought the value would be, with .68~ a share on the market, the stock would have to be sold lower, probably at .30~ to .35~ per share with limited edition of probably 2 years. Should bring in $100,000 to $200,000. Mayor Edwards asked him what he would substitute as collateral? Nelson said, nothing! I have already put in $300,000. Mayor Edwards said the city has put in $800,000. Alderman Zilly reported that DCCA said this was not a good idea to release the stock. Alderman Meade asked Nelson how long he could operate if we agreed to release the stock? Nelson responded, by saying until February of 1990. Nlayor~Edwards called for an executive session. Motion by Alderman Sarff, second by Alderman Meade, to go into executive session to further discuss the release of Harriett Schelich's stock. Voice vote, motion carried. Council recessed for executive session at 7:34 P.M. Council reconvened in open session at 8:03 P.M. Mayor Edwards asked that the resolution that was on the agenda for first reading on August 15, be added to tonight's agenda. This releases the city's interest in the stock. I would like for the council to amend this resolution by adding to it the stock owned by Nelson Carlo and also the stock that was given debt for equity on our $400,000. That is 245,000 shares of stock. In exchange for this the city would like to reinstate the $400,000 DCCA loan to CIC, with deferred payment for one year. 080 CONTINUED September 19, 1989 Jim Malmgren, city attorney added that the stock that Nelson Carlo's holding company owns, slightly in excess of 3 million, would be released to be used as collateral in the procurement of loan. But when that loan is paid off those 3 million plus shares would come back to the city. The city would then have a first security interest in those shares of stock, subject to the escrow agreement and to the assignment separate from certificate which you have from me. Mayor Edwards asked Nelson Carlo, do you agree to this? , Nelson Carlo responded, yes, totally. Mayor Edwards asked Nelson, do you agree to the reinstatement of the $400,000 DCCA loan? Nelson Carlo, responded, yes, I do. RESOLUTION - RELEASING THE CITY OF CANTON'S SECURITY INTEREST IN 160,416.7 SHARES OF CIC STOCK (THE SCHELICH STOCK). Second reading, read in its entirety. Motion by Alderman Sarff, second by Alderman Chapman, to approve the amendment to the resolution. Roll call. AYES - Aldermen Chapman, May, Meade, Sarff, Steck, Zilly. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. Motion by Alderman Meade, second by Alderman May, the resolution be adopted as amended. Roll call. AYES - Aldermen Zilly, Steck, Sarff, Meade, May, Chapman. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. Resolution being #2076. Proctor Hospital will be making a presentation about the services they offer to the Graham Hospital. If any alderman would like to attend it will be at 9:00 a.m. Motion by Aldeman Zilly, second by Alderman Sarff, the appointment of D~n Wi1K,`~;r,;~ as a fire volunteer and appointments to the Police Auxiliary of Lisa Groober, Kim Green, Tom Potter, Ron L. Brown, Andrew Steck, Lon Howarter, David Sutter, Ronald Shannon, Lonnie Ashley, be confirmed. Voice vote, motion carried. Cliff said the new well was started today and tested today, it is not coming in as the first well. The well has been pumping about 106 gallons a minutes. The first well pumped 460 a minute. Know one knows for certain why, same elevation as the other well. The solution to produce more water is 'shooting the well.' The well contractor will get us a price tomorrow. Alternate suggestion came from the well contractor, to drill pass the saint peter gallation stone for another 700 feet. Better quality of water by some, not as good by others. Mayor Edwards said we have no choice but to take the recommendation of the well contractor, we will meet in the morning to do what we have to, to get the well pumping better. Motion by Alderman Sarff, second by Alderman Steck, the bill of Wehling Well Works for Well #2 in the amount of $127,749 minus 10% be paid. Discussion. Cliff said the bill would be upto September 21. Roll call. AYES - Aldermen Chapman, May, P~Ieade, Sarff, Steck, Zilly. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. OLD BUSINESS: ORDINANCE - SUPPLEMENTING AN ORDINANCE MARING TFIE ANNUAL APPROPRIATIONS FOR CORPORATE PURPOSES OF THE CITY OF CANTON, FOR THE FISCAL YEAR BEGINNING MAY 1, 1989 AND ENDING APRIL 30, 1990. Second reading, read by title. Motion by Alderman ~81 CONTINUED September 19, 1959 Sarff, second by Alderman Zilly, the ordinance be placed on its passage as amended. (The amendment on page two reads: 44e11 No. 2$300,000, Purchase of Real Estate $72,000). Roll call. AYES - Aldermen Zilly, Steck, Sarff, bieade, Nlay, Chapman. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion ca~ried. Ordinance being #1257. ORDINANCE - AMENDING TITLE 6 BY ADDING CHAPTER 17 ESTABLISHING A CURFEW IN THE CITY OF CANTON. Second reading, read by title. ; Motion by Alderman Sarff, second by Alderman May, the ordinance be placed on its passage. Roll call. AYES - Aldermen Chapman, May, Meade, Sarff, Steck, Zilly. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Ordinance being #1258. NEW BUSINESS: ORDINANCE - LEVYING AND ASSESSING TAXES FOR CORPORATE PURPOSES FOR THE FISCAL YEAR BEGINNING MAY 1, 1989 AND ENDING APRIL 30, 1990. First reading, read by title. ORDINANCE - ANNEXING A PORTION OF REAL PROPERTY BELONGING TO ELMER FOOSE OF ROUTE 4, CITY OF CANTON. First reading, read by title. Mayor Edwards stated that the attorney Eugene Taylor who represents Mr. Foose is requesting passage of the ordinance on first reading. Mayor Edwards also mentioned that a plat has to accompany the ordinance. blotion by Alderman Steck, second by Alderman May, to suspend the rules for the purpose of passage of the ordinance. Roll call. AYES - Aldermen Zilly, Steck, Sarff, Meade, May, Chapman. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. Motion by Alderman Sarff, second by Alderman Meade, the ordinance be placed on its passage as amended by adding the plat. Roll call. AYES - Aldermen Chapman, Niay, Meade, Sarff, Steck, Zilly. 6 AYES 0 NAYS 2 ABSENT. Motion carried. Ordinance being #1259. RESOLUTION - APPROVING A LEASE AGREEMENT BETWEEN THE CANTON INDUSTRIAL CORPORATION AS LESSOR AND R.W. HEINZE COMPANY, INC. AS LESSER, AND, ALSO, APPROVING A FIRST AMENDMENT THERETO. Second reading, read by title. Jim Malmgren, city attorney recommencled the following amendment to the re~olution. Under Section 5. (c) the last paragraph, the amendment reads: Unless the City is in possession as the result of foreclosure or deed-in-lieu of foreclosure. P~Iayor Edwards said we need to insert a cap. Jim suggested the following language: in such event, the City's aggregate liability shall not exceed $5,000. Motion by Alderman Steck, second by Alderman Sarff, the resolution be adopted as amended with a cap of $10,000. Roll call. AYES - Aldermen Zilly, Steck, bleade. NAYS - Alderman Sarff, May, Chapman, Mayor Edwards. Motion defeated. Niayor Edwarcls said we need to find some middle ground. Tom Drake of R.W. Heinz Company, Inc. reportecl that they did not want to be kicked out of the building, we want to compromise in good faith that would allow us to recoup our expenses. Motion by Alderman Meade, second by Alderman May, the resolution be adopted as amended and the liability shall not exceed $7,500. ! Roll call. AYES -~1ldermen Chapman, May, Meade, Steck, Zilly. NAYS - Alderman Sarff. 5 AYES 1 NAY 2 ABSENT. Niotion carried. Resolution being #2077. 082 CONTINUED September 19, 1989 APPROVING AN AGREEMENT FOR THE PURCHASE OF ELECTRIC SERVICE BETWEEN THE CITY AND CENTRAL ILLINOIS PUBLIC SERVICE COMPANY. First reading, read by title. Cliff Sagaser, city enc~ineer, said the CIPS crews started working yesterday and plan to be completed by October 15. Motion by Alderman Sarff, second by Alderman Meade, the resolution be adopted. Roll call. AYES - Aldermen Zilly, Steck, Sarff, Meade, May, Chapman. NAYS - None. 6 AYES U NAYS 2 ABSENT. Motion carried. Resolution being #2078. RESOLUTION - CANTON HIGH SCHOOL STUDENT COUNCIL HOMECOMING PARADE TO BE HELD ON OCTOBER 13, 1989. First reading, read by title. Nlotion by Alderman Sarff, second by Alderman May, the resolution be adopted. Roll call. AYES - Aldermen Chapman, May, Meade, Sarff, Steck, Zilly. NAYS - None. 6 AYES 0 NAYS 2 ABSENT. Motion carried. Resolution being #2079. ADJOURNMENT: Motion by Alderman Meade, second by Alderman Sarff, to adjourn. Voice vote, motion carried. Council adjourned at 8:45 p.m. ~ ~'i,~C%C.' ~ . LLE APPROVED: ~ MAYOR