HomeMy WebLinkAbout12-18-1984 Council Minutes 1~9
A regular meetix~g of the Canton City Covncil was held on Decen~er 18th, 1984
in Council Chambers.
PLEDC~ OF ALT~GIANCE OPII~IED THE I~TING , FOT~OWED BY THE INVOCATION GIVEN BY
MAYOR E1x~lARD6.
Mayor Eckaards asked for roll call a~ 6:30 p.m. Present: Ald~ei~n Kovachvich,
Ha.-imn.d, Savill, Sarff, [~Jor~lanan, Carl, May, Horr. Ab~ent: Nane.
MLN[Ti~S OF NOVII~ER 20TH MEETIIVG. Alder~~n Ha~~nand called for a correctian to
th~e 3rd paragraph an page 172...add the follc~rixig: Camrninity Develo~rzt Conmittee
Report Council Acticm Nk~ticm liy Alderman Carl, second by Aldermari Sarff, to
accept n~cmrandtan of sale of the Carrie Price property for $5 , 000 . Roll call .
AYES: Aldern~ri Ma.y, Carl, ~:~orlanan, Sarff, Sa~vill, Hanman.d, Kovachevich. NAYS:
None. Motian carried. 7 ayes 0 nays 1 absent.
CONMUNICATIONS FROM MAYOR ETJWARDS . We need to instruct saneane ~Co get ~Ch.e leg,al
description for the eas~ts we hav~ to take to court. Jim 1~'a].mgren City Attorney
said he needed someone whose ei:ther a sL~yor, and trained in this method, to
write a legal description. Aldern~n Savill asked if we ~;o outside for this will
~ we recoup our losses? Jim Malm~ren City Attorney said he doubted it. Aldern~n.
~ Worl~z asked if this would lead to cond~mnati:cm'? .7im Malmgren said "yes." Jim
N also said you slwuld be in~tructing me to prepare an orclinance outlinin€; concl~m-
na.tian conte~oraneously tirtth this if you wte to cb thi~ ,
W ;~lotian by Alderman Ha~mm~d, second by Aldernnan. Savill, to proceec~ with this legal
~ descriptian dra~m u~, alcmg; with wl~a.t ev~er is necessary to procede on. condem~atian.
a Discussion. Jim Ma.lmgren City Attorney said your not auCh.orizing me to file a law
suit, your directing me to ret~n an ordinance to the cotmcil. Aldennan Carl
wanted to lmaw if the m~tion authorized Dave or J'im, or wh.amev~er to hire Anderson
and Associates? Mayor Ec~aards said "yes," whatever it takes, and if ~ae can do it
in house, the better, Alclern~an Ha~mm~d said his motian was to just get it dane.
Roll call. AYES: Aldennen Kc~vachevich, Hamnorzd, Savill, Sarff, Worlana~z, Carl,
May, NAYS: None, Nbtion carried. 7 ayes 0 na.ys 1 absent.
Nbtion by Alderman Savill, second by Alderman Ma.y, the minutes of Noveml~cr 20th be
accepted and placed an file as ~men.ded. Voice vr~te, tmtion carried.
MINUTES OF DECII~ER 4TH MEETING. Cliff Sagaser called for a correctian on page 175
the first paragraph, the wnrds "city hall" should rea.d "IGA Store," The third para-
graph fram the bottom of the page, uncYer counci.l action., the ~rds "we axe replacing
the delineator," should rea.~ "we will be replacing.''' I~tian by Alder~~n Carl, secand
by Alcle~ HaQmrnzd the minutes of December 4th be accepted and placed an file as
ame~lded. Voice wte, motian carried.
BILLS FOR NOV~'lBER. Dave Dorgan Budget Achninistrator recamn~zded paying a bill
st~Umitted by Jim Malmgren City Attorney for wr~rk he ha.s dane preparimg both the
Illixwis Department of Comnerce and Ccnrm~n~i.ty Affairs Loan Agreement , and HHS
F~ds, It's based on 71 hours of w~rk at $3,228.75. This would be paid fram the
Enterpri.se Loan Fund. Motion by Aldern~z Kovachevich, second by Alderman H~mrn1d,
the bill of $3,228.75 be added and all bills approved be paid. Roll call, AvES:
A1d,ernnen Horr, Ma.y, Carl, ~aorlanan, Saxff, Savill, ~nd, Kc>vachevich. NAYS: Nane.
Nbtian carried. 8 ayes 0 na.ys 0 absent.
PUBLIC HEARING - 7:00 P.M. COMM[JNITY DEVEIAPMENT ASSISTANCE PROGRAM QZANT. Cotmcil
recessed at 7:00 p.m, to hold a public hearing for the purpose of: receivin~
cain~n.ts on a application to the Illinois Department of C,ann~erce & Caimn~zity Affairs
for a Caima~.ity Development Assistance program grant and that grant would be to the
city. The city is applying for these f~mds to relend to the DSI and that applicatian
is for $250,000, loaned for 15 yeax period at 5% interest and principle, and interest
would be returned to the city, Ma.yor Ec~aards asked for ccmments fram the audience.
'Th.ere was ~maw response,
Cotu~cil was asked for conments , No ca~ments c~ne fr~n the floor .
Nbtion by Aldern~l Kovachevich, secand by Aldern~an. H~amnd to adj ourn the public
heaxing, Voice wte, motion carried.
Coimcil then returned to the regular sessian at 7:01 p.m,
C~7NICATIONS FROM DAVE DORGAN. There is a loan agreema.zt on the agenda for Ga.v~nda.
Iron & Metal Ccx~any for a loan of $30,000. It went thru the loan canmittee this
everring, it is one of the m~re secure loans.
180
CONTINUED DECII~'IBER 18TH, 1984
The resolution for DSI is a$99,999, loan which the loan was app~roved at a
prior co~nm.ittee rneeting. That $99,999, loan is contingent on the city getting
a CnAP grant. Yesterda.y I sent in the applica.tian to the Illinois Departrnen.t
of Camnerce and Ca~rn~ity Affairs for a$250,000. CI~P to support the building
of a processing facility in ot~ inc~ustrial park for the DSI corporation.
I ha.d an opporttmity to put in an applica.tion to study I}istrict Hea.tin~ . I
ha.ve talked to Joe Driscoll. I would like a mptian fram the cotm.cil allc~ring
me to cb this, The purpose for the applica.tion is for utilizinf; the existin~
heating plant, steam heatin~ or boiler system at the ~IC plant to provide
steam heati_ng to the c3c~mtc~m. 'Ihe premise that were lookin,~ at here is tha.t
we may be able to provicle chea.p heat for the dawntc~um which could be a cansi-
derable employment to develop ~Che clawntown area. 'Il~.is application could be upto
$30,000. to $40,000, in mmies to stucty the possibility of usinp; that heat.
This is thru the U.S, Deparl~nent of Energy, ~t is not a very detailed application,
its a 3 page process, called phase 1 which is looking at the general perimeter,
phase 2 is the design, p}~ase 3 is construction. Righ.t naFa th.ere are anly clollars
availa.ble for phase 1.
Nbtion by Alde~z Sarff, secand by Aldern~an Savill, that Dave Dorgan be allawed
to apply for the grant for the fea.sibility study. Voice vnte, motion carried.
C01~4UNICATIONS FROM CLIFF SAGASER. Vic Kovachevich, Dave Ibrgan and I went to
Spriuzgfield on Decenber 14th and met with our consultin.~ engineer Crawford, M~.irphy
& Tilly wi.th th.e EPA, 'in reference to grant work cm the Sewer & Sewage 'I`rea.tr~n~t
Plant Improvements. A discussion of the budget amr~unt for the Canton Project was
ma.de. The amotmt of the bu~eted grant ftimds was reported at $3.1 million sta.te
grant and $0.8 millian federal irmovativoe/alternative (I/A) grant. One problem
was qua.lifying for all o.f the innovative/alterna.tive ~;,rran.t fzmds , This aimtm.ts to
$1,066,000 in I/A related work. The present estimate for ~/A work is $821,000. A
request for a tracle of state grant f~ds~ram another project for Can.tan I/A fi~ds
was made. Ran Drainer indicated that at this time the requested trad~e could not be
allowed, because of the many projects which are in need of state grant f~unds. The
IEPA could grant an increa.se in I/A fimds because there is an excess of I/A grant
f~,mds . The grant wnuld shaw an elis;ible aimLm.t of ccrostru~ction qualifyin,g for a 65°10
grant. If additiana.l grant ftmds became available fs~c~m the sta.te prop;ram then they
could be applied to the proj ect .
There exists a significant difference betwe~n. the airount of fimd.s available from
the state and federal gran.t programs an.d the arrount of the overall cost of. the
Canton project. The follawing aimunts were reported:
Total Project Estimate $ 7,280,000
State Grant $ 3,100,000
Federal I/A Grant 615,750
Total Grant Estimate $ 3,715,750
Local Share $ 3,564,250
General Obligatian Bond Issue $ 2,000,000
Present Unfiuzcled AtmLmt $ l, 564, 750
Various strategies were revie6aed to look at ways of funding the project and bringing
costs down. One alterna.tiv~ discussed would allaw same savin~;s fram reducin,s;
vaxious portions of the project and deleting the West Sic~e Relief Sewer Project
fram the improve.~~nts program. Cliff Sa.gaser said that, from the City's point
of view, this project was the most i~ortant project and should not be deleted
fram the project.
A secand approach was discussed. This was to make reductions in various elements
within the projects and cavse as large a cost reduction as Possible. 'Ihis ~,aould
probably not close the funding gap. A rev~en..ue bond issue would be considered based
upon the bids received, This w~u1d occ~ several years fram naw. Same of the cost
savin~ elemeazts that were discussed are listed belaw:
1~r
CONTINUED DEC.EMBER 18TH, 19$4
Cost Reduction e
1. Deleter the preliminary treatm~nt frcxn the
Ea.st Side Sewage Treatment Plant (IEPA must
agree). $ 1Q6,~J00 - 110,000
2, Convert same sewer ~Co forcemain an the
South Side Sewer (IEPA must agree~ 80,000 - 88,000
3. CiLy of Canton to be respcrosible for
stree repair and same site work an
the sewer projects 100,000 - 150,000
4. City of Cantan to construct Project 5,
Sewer Reha.bilitation and Sewer Separatian 235,000
5, City of Canton to make the proposec~
Service Builcling Ad.dition an.d
~ labortory f~n.iture expansion at the
N West Side STP, lOQ,000 - 120,000
W 6. City of Cantan to assune ineligible
m cost fram the operatit~g buclge~ 100, 000
~ Total Cost Reduction/Defennent $ 721,000 - 803,000
As a result of the meetin~, C~'1&T, Inc., was directed to wr~rk taward construction
of all five projects, F~ther it was agreed to work tawaxd taking bids on the
West Side Relief Sewer first and then the ~Jest Side SeRaaage Trea.trnE.mt Plant improv~e-
me~ts secand.
The work an the user cha.rge system review and the preparatian of grant doc~rents
will proceed based upan the above,
Doyle S4nith fn~m the V.F,W, and Dwayne Taylor of D,u,A, had requested fram the J.
Park Board ~d the City to make an ordinance to chan~;e the name of ~he South Park
to Veterans Mezmrial Park in mezr~ory of the veterans . Mayor Edwards said he g;ot a
call fram Bob ~ns of the Park District, and he c~ould like a meeting with coLmcil
an this, and the ma.yor recomnends having this meeting.
Doyle S~nith stated tha.t it did not necessarily have to be the South Paxk, it
could be any one of them. Nbtion by Aldernnatz Sarff, secand by Alderman May to set
ula a meeting with the Park Board an~.all interested parties. Voice vr~te, motion
carried.
COMMLTT.EE REPORTS :
Finance
Co~cil Action
Nbtian by Aldennan Kc~vachevich, second by Alderma~.z H~antrond that anew police car
be autlwrized at a cost of $10,684.77 and paid out of Revenue Sharing Ftm.ds, Roll
ca.ll. AYES: Aldern~en Kovachevich, Ha~mxmd, Savill, Sarff, Worlan~an, Carl, Ma.y,
Horr. NAYS: None. Nbtion carried, 8 ayes 0 nays 0 absent,
Nbtian by Alderm~n Kovachevich, second by Alde~nan Carl, the authorizatian to
purchase a Daxt g~ for the animal control officer at a cost of $264.60. Dis-
cussian. Alderman Savill asked if the animal control officer would be instructed
an the proper use of this? Bob Molleck Police Chief said Dr, Coonradt will be
giving the instnictions , Roll call . AYES : Aldermeri Horr, Ma.y, Carl, [aorlanan,
Saxff, Savill, Ham~ond, Kc~vachevich. NAYS: None. Nbtion carried. 8 ayes 0 na.ys
0 absent.
Nbtion by Alc~ern~n Kc~vachevich, second by Aldern~~ Sarff , the expenditure of
$1,380, for a new incubator at the Waste ~~later Trea.trnent Plant, Roll ca.ll. AYES:
Aldernien Kovachevich, H~zd, Savill, Sarff, Wor~an~.n, Carl, 1~?ay, Horr. NAYS:
None. Nbtion carried. 8 ayes 0 nays 0 absent.
182
C~N'I'INUF,D DECIIKBER 18TH, 1984
Nbtian by Alderm~n Y.ovachevich, second by Alderm~. Ma.y, to transfer $15 , 000 .
f•rom the Rev+~n.ue Sharing FLmds to the General Fund. Discussion. Pat Wright
City Trea.surer said this is for the repair of the endloader, Roll ca.ll, AYES:
Aldern~n Horr, Ma.y, Carl, Wor~rn~an, Sarff, Savill, H~nd, Kovachevich. NAYS:
None. Nbtion carried. 8 ayes 0 nays 0 absent.
Legal & Ordinance.
Co~cil Action
None,
Informational: Alderniari Sarff received petitions signed by 47 residents in the
area of 1050 North Main and a copy of the Non.-Conforming Use Ordinance, plat of
ths subdivis~ion, copy of the deed to the property, an.d an open letter to Alclennan
Sarff, these were given to the city clerk for pennan.ent placem~nt in city records.
Geraldine Mayhugh of 33 Ir~~ngwnod wrote a le~ter ~o her Alderman, who is Larry
Sarff, The letter is rela~ing to R-2 Zaning and referring to Chapter 5 Sectian
10-5-1. She says if the curb is allawed to be opened for a new driveway off of
Iangwood Drive, tha.t wi.ll encourage the exisiting use, and violate Section 10-
5-1-C of the city code book.
Alde~na.n Hammnd stated that the Ordinance for Budget Aclmi.nstrator is still in
ccmmittee ,
The canmittee has ask~ed for department hea.c~s and the appropriate persrnmel to
submit the proposed language on job descriptian for various positions and their
departrnen.ts for the next com~mittee meeti~g.
An Ordin~ce Oblishing Tax Increment ~~2 has not mac3~e it to the agenda so far,
accordir~ to Alderman H~rnrmd.
Negotiations, Grievance & Persormel,
Coiu~.cil Action
Nane.
Camrnmity Development .
Cotu~.cil Action
None.
The Mechanical Caimzittee meeting will be held on Dece~nber 27th beca.use of the
holida.ys at 6:30 p.m.
COM~.[JNICATIONS FROM MAYOR EDWARDS. Joe Driscoll was in tawn today and sends
holida.y greetings. He has invited me to blaw the whistle at 6:00 ~.m, an
Chrisi~nas Eve and I told him I w~uld be hanored to do that,
We ha.ve two candidates in the audience, Peter Falcone, and Shezw:i.n Gilpin.
OLD BUSINESS:
None.
NEW BUSINESS:
RESOLUTI~JN - APPROVING AN AQZF.E~4F',DTI' BEZWEEN THE CITY OF CAN'!bN AND GAVENDA IRON
AND METAL CC~Ml'ANY. First reading, rea.d by title. Aldennan. Carl reported that
the Loan Ca~m.itee met this even.in~; to discuss this resolution for a loan to
R~mna Furgerson and san Jack Furgersan. Jack Furgerscro said that his mQther
ha.s worked there 29 years and its c~rently~ operated by Stanley Feumer, and he
wants to retire. [~le need financin~ for the equipment, T;Je plan to increa.se ~tploy-
~t and be irnre aggressive, Aldercran Carl said that he was happy to see these
fimds used for Canton to Canton business people.
~~l,
CONTINUED DEC~ER 18TH, 1984
Dave Dorgan Budget Director said we will be collateralizu'~ the loan at 133% and
persona.l ~rantees, the loan of $30,000, is for 7 years a~ 9% for ~he first 4
years, and at the rate of l~/o for the remaining term of the loan.
The appraised value of equip~nent is $42,500,
Jim Malmgren City Attorney reported that an pa.ge 6, section 8 of the agree~ent,
~der collateral: He said you need to as part o£ your motian direct that the
collateral be inserted in there p~suant to th.e collateral as se~ forth in the
grant applica.tian. On pa~e 11 Section 18, Other Terms & Conditions: A sub
paxagraph (b) should be added, this is a loan which is c~esig~ed to work with
a SBA loan so you should put a ccmtingency in there ~aying that the loan and
the disb~sements of the loan proceeds is contingent uprnz us obtaining the SBA
loan and complying with the loan applica.ticm.
Nbtion by Aldern~n Sarff, secand by Aldern~n Horr, the resolution be aclopted,
Discussion. Aldern~n. Horr was concerned for the Furgerson's and wanted to
make sure they l~m.ew wha.t was being said. They assured Aldern~z Horr that they
~ ~clerstood. Roll ca.ll, AYES: Aldei~en. F.ovachevich, H~rnd, Savill, Sarff,
Worlanan, Carl, Ma.y, Horr. NAYS: None. 'Nbtian carried. 8 ayes 0 nays 0 absent.
~ Resolution being 1060.
N
W RESOLtTrION - APPROVING AN AC~'I' BE'IWEEN THE CITY OF CANTON AND DECONTAMINATI~N
m SYS'I~S, INC. First rea.ding, rea.d by title. Da.ve Dorgan said this resolution
a was discussed at the Loan Canmittee meetix~; and did make this contingent Upon the
granting of the C~]AP fram the State of Tllinois. And the collateral position in
this would be the buildings tha.t wnuld be constructed as well as the persanal
~uaran.tee of the parties. In tern~s of the loan, its 15 years, the first 4 years
interest is 9%, the remaining 11 years interest is at 13%. The amoLmt of the
loan is $99,999.
Alde~z Horr asked if this is the correct name o~ the firm? Da.ve Dorgan said
they ha.ve 2 cam~anies set ~ now, the parent ccmipany is DSI, which is a subsidary,
which we hope to be operating here will be Tnterna.ticmal Plastics Recycling Inc.
Jim Ma.]mgren City Attorney said with this agre~m~.mt you have a situa~ian similar
with the Ga.venda. Agreen~en.t . At paragraph 8 yau need to add th.e collateral which
is subject to the loan application, The property is in the name of DSI,
Also, on page 11 Section 18, you need to add the subpara~;raph (b) which rea.ds
contir~;ency relative to the C~AP grant .
Motian by Aldercr~~n ~~amYrnzd, second by Aldern~an Kc~~vachevich, the resolutian be
adopted as am~ex~.ded. Discussion. The ma.yor asked Dave what was left in the loan
finld after this cames out? Dave said in the neighborhood of $300,000, Roll ca.ll,
AYES: Aldern~z Horr, May, Caxl, Wor~, Sarff, Savill, H~mnd, Kovachevich,
NAYS: None. Nbtion carried. 8 ayes 0 na.ys 0 absent. Resolutian being 1061,
,_.z,,;.~
Aldern~an Carl asked Uave Dorgan to repea.t the airovnt of interset the city has
received back fn~m the loan fi~d, Da.ve said at this point in time we have 4
loans out, 2 of those are with the Cantan Corporation. We received $2,366, in
interest on the DCCA loan, which was mad~e September 21st 1984. Received $6,000.
in interest on the H.H.S, loans fram the Canton Corporation, Received $3,300.
fram the Phillips & Associates loan. Received $565. from the LaRama.Pizza loan.
We naw have f-~ds set up in 3 different categories: we have the H.H.S. ca.tegory
loans, the returning DCCA dollars, and we will have what will be the rem~a.inder
of our Hud grant, or income received fn7m our previous types,
AGR~1'T - SHEI~'1AN W. REID WATER RATE AGREEI~~NT. First readin~;, rea.d by title.
Jitn Malmgren City Attorney said in talkingto these people, they brou~~.t up the
1959 ea.semEmt, which is attached to the agreement. And it says the city will
charge city rates for water consumed in the dwelling naw on the premises, Zhat
sotmds like will be charging single water rates for the next several centuries.
Mr, Reed cbes want to sell the property and has sold it to Mr. & 1"Irs . B~rou~~s .
The Burroughs and 1~. Reed are all agreeable to entering into an agreement with
the city, tha.t single water rates shall be discontinued once P~. Reed and the
B~rou,~hs discontinue their occu~ancy.
Nbtian by Aldern~an Kovachevich, second by Aldern~n Horr, the ag;ree~nent be referred
to Legal & Ordinance Canmittee. Voice wte, nx~tion carried.
~.84
CONTINUED DECIIKBER 18TH, 1984
ORDINANCE - DIRECTING THE ACOLIISITION OF CERTAIN REAI~ AND PII~SONAL PROPERTY •
(Paul Hurst Property). First reading, read by title. Jim Ma.lm,~ren City
Attorney, said this directs the acquisiticm of property awned by Pau1 Hurst
togather with a trailer that sits an the property and is knawn as exi~.ibit
B that's attached to the ordinance, The rea.l estate is described in exhibit
A that's atta.ched to the ordin,ance. The purchase price, both the real estate
and perso~nal property is $12, 000 and appro~ved by camnittee , Part of tha~C lot
will autamatically be conveyec~ by the city to another land owner, svbject to city
colm.cil approval, and tha.t conveyance will lie part o~ ~he consid~eratian paid
to tha.t land owner for the ea.se~ealt we need across his property.
ORDINANCE - DIDICATING CERTAIN CITY OLJNF'JD RF~AL PROPERTY TO THE PUBLIC'S USF FOR
ROADWAY PURPOSES. First rea.ding, rea.d by title, Jim Malmgren City Attorney
said this ordinance is the cledication of the property along the North side of
the Beclmer building which is presently being used as a city street. It's not
been officially dedica.ted.
Nbtion by Ald~erniari H~mnd, secand by Alderman Kc~vachevich, the ordinance be
referred to Legal & Ordinance ccmmittee. Voice vote, motian ca.rried.
ORDINANCE - DIRECTING THE ACQUISITIC~1 BY CONDEL"l~1ATTON OF CERTATN RFAL PROPERTY.
First reading, rea.d by title. Jim Nlalmgren City Attorney said this orcli.nance
is for conde~mation for which authorizes th.e conc~almatian proceedings against
8 property owners , We still hav~e ease~r.zts we need but ha.v~e been unable to
reach an agree~nent. The exhibi~ A is being prepared by Crawford, Murphy & Tilly.,
and as soon as we ha.ve that, it will be attached before the lawsuit,
EXECUTIVE SESSION - Il~VF~]T, THRF.ATIIVED, PIIVDING LITIGATION. PERSOI~TII.,.
?Kotion by Aldernian Savill, secand by Aldenn~n Sarff, to go into executive sessian.
Rc~ll ca.ll, Aldermeri Kovachevich, Halmx7nd, Savi.ll, Sarff, Worlunan, Carl, r~.y, Horr.
NAYS: None. I~'btian carried. $ ayes 0 na.ys 0 absent.
This portian of the cotmcil meeting recessed at 7:40 p.m.
The executive minutes are on file for review in the city clerk's office.
ADJOURI~I'T: Motian by Alderman H~man.d, second by Aldermari Kpvachevich, to ad-
journ. Voice vote, m~tion carried. Cotimcil adjourned at 8:07 p.m.
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