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HomeMy WebLinkAbout02-14-2012 Clerical Committee Minutes CLERICAL COMMITTEE TUESDAY FEBRUARY 14 2012- 6:30 P.M. DONALD E. EDWARDS WAY 50 NORTH 4T" AVENUE CANTON IL 61520 Aldermen in attendance: Dave Pickel, Jim Hartford, leff Fritz, Eric Schenck, Craig West, and Gerald Ellis Staff in attendance: Mayor Kevin Meade, City Clerk Diana Pavley, City Treasurer Nicole Marter, City Attorney Chrissie Peterson, Police Chief Dan Taylor, Fire Chief Keith Frank, Joe Ginger Video Services. SRPED Mark Rothert In the audience: Phil Fleming, Missy Towery News Media- John Froehling from Daily Ledger. FINANCE ALDERMAN CRAIG WEST, CHAIRMAN 1ANUARY CHECK REGISTER A new format for the bill list was presented this month by Treasurer Nicole Marter. Motion and second were made by Aldermen West/Pickel to send the bills to Council for consideration. The motion carried by voice vote and was unanimous. TREASURER'S REPORT Treasurer Nicole Marter reported the available cash of 3.9 million dollars at the end of January. The total investments were 5.9 million dollars at the end of January. The budget comparison report reflects a$89,797.00 gain in the general fund at the end of January, however the YTD loss was $97,357.00. The water and sewer fund gain at the end of January was $153,916.00 The YTD gain was $988,557.00. Page 7 reflects the revolving loan with Katy and Tory's as being paid in full that was not scheduled to be paid until September 2012. The other two loans have been assessed late fees along with a 9.0% interest rate for the remainder of the loan. Motion and second were made by Aldermen West/Fritz to send the Treasurer's report to Council for consideration. The motion carried by voice vote and was unanimous. SPENDING AUTHORIZATION/PURCHASING POLICY Treasurer Nicole Marter presented the following purchasing policy. The increase in the spending limits will help ensure timely payment on emergency situations. The purpose of this document is to provide a purchasing policy and procedure as guidance for the City of Canton's operating departments in procuring goods and services. This policy is intended for use by City personnel as a general reference and will be revised for departmental distribution as policies and procedures require revisions or clarification. The policies and procedures set forth in the manual are meant to serve as guidelines and will not be applicable to every purchasing situation that may arise. When purchases that are not covered by this manual are necessary, they should be made in accordance with the objectives outlined below. 1. Purchasing services, commodities, materials, and equipment of sufficient quality at the most economical price available and which best meet the needs of the City; 2. Purchasing in an open, forthright, and ethical manner; 3. Purchasing in a manner which will comply with all local, state, and federal laws; and 4. Purchasing in a timely manner so that services, commodities, materials, and equipment are available when needed. Purchasing Function and Responsibilities: Sections 8-9-1 and 8-9-2 of the Illinois Municipal Code (65 ILCS 5/8-9-1) establish the dollar value for requiring sealed bids for public works contracts and municipal supplies. The City Council may by a 2/3 majority vote waive bids and negotiate purchases. The City currently utilizes the State threshold for sealed bids. Effective August 5, 2005, Public Act 94-0435 increased the municipal bid threshold from $10,000 to $20,000. City Ordinance 1845 Redefined the Spending Authority of the Mayor and Department Heads as follows: Section 1. That the following amounts shall be the maximum amounts of city funds which may be expended by the listed officials on official business for the city without prior council approval: Mayor $1,500.00 ***Recommendation $10,000 Department Heads $1,000.00 ***Recommendation $5,000 City Ordinance 1986 Article 1-16-3 of the Canton City Code states as follows: "Powers and Duties: The City Administrator shall be responsible to Mayor for proper administration of all affairs of the city. In discharging this responsibility the City Administrator shall, as directed by the mayor: (A) Supervise and coordinate the administrative function of all departments, offices and agencies of the city... (FJ Coordinate activities between the departments to ensure efficient utilization of resources and maximize interdependent coordination. (M) Oversee the operations of the City Administration department providinq assistance when needed." Procedure: The Mayor and each Department Head shall be responsible for purchasing items up to their respective limits while following these prescribed procedures for his/her department. All purchases much meet department requirements and are to be purchased at competitive prices. It is the desire of the City to purchase from Canton vendors whenever possible. This can be accomplished by insuring that local vendors who have goods and services available which are needed by the City are included in the competitive shopping process which will precede most purchases. The City has a responsibility to its residents, however, to insure that the maximum value is obtained for each public dollar spent. It is assumed that local vendors who wish to do business with the City will offer the lowest possible quote for the item being purchased. The City Purchase Order Form must be completed and signed by the Department Head by entering the necessary data under the procedures established in this policy. In order to insure expeditious processing for purchase order it is important that all forms are completed accurately by the requisitioning department. Purchases and Contracts Under $1,000 Items and contracts $1,000 or less are not subject to any bid/proposal requirements and shall be at the discretion of the Department Head or his/her designee to determine if the price is fair and equitable. However, as time allows price comparisons may be obtained. When items purchased are of a varying nature and quantity, as is the case with office supplies and auto parts, standard discounts will be negotiated with several suppliers. Purchases and Contracts Between $1,000 and $5,000 Items and contracts in excess of $1,000 but less than $5,000 may be purchased after obtaining two or more verbal price quotations. These quotations may be obtained via telephone or in person from the vendors and must be submitted on a Price Inquiry Form with the Purchase Order Form. Purchases and Contracts Between $5,000 and $10,000 Items and contracts in excess of $5,000 up to $10,000 may be obtained after receiving two or more written quotations when and where possible (or if the situation dictates, oral quotes, followed by vendor written confirmation). A quotation that is submitted via a facsimile machine by the bidder shall meet this requirement. These quotes must be submitted with the Purchase Order Form. Considerations for Purchases Less Than $10,000 Per Item: Purchase standard "off the shelf" items rather than special or custom made products. Whenever practicable, buy in quantities which are standard, (i.e.: a dozen, a full carton, etc.) to realize better prices. Also, care should be taken to consider the shelf life of the item needed. Generally speaking, when making purchases less than $10,000 per item, the specifications, terms and conditions, and other requirements are usually simplified compared to formal competitive bidding. This method of purchasing saves staff time when compared to the process required for formal bidding. Purchases and Contracts Over $10,000 Per Item Formal bids/proposals are designed to protect the interest of the bidder, as well as the City of Canton and to do away with favoritism by reinforcing the concepts of openness and impartiality. The following guidelines shall be followed when soliciting for purchases and contracts in excess of $10,000 per item: 1. Bids/Proposals - Services, Commodities, Materials, or Equipment in Excess of $10,000 Except as otherwise specified, all services, commodities, materials, or equipment that cost in excess of $10,000 shall require solicitation of competitive bids/proposals. This process may be waived in emergencies or where it is impracticable. 2. Advertisement for Bids/Proposals Where required by state or local law or this policy, the City shall advertise by invitation or publication in newspaper or trade journals for sealed bids/proposals for any proposed work, materials, commodities, or equipment. Such advertisement shall be inserted not less than 10 days or more than 30 days before the date set for opening bids/proposals. The notice for bids/proposals need give only a general description and/or plans and specifications shall be on file in the Administrative Office for inspection. The advertisement may call for each bid to be accompanied by a cashier's or certified check or bid bond in an amount equal up to 10 percent of the bid, to secure said bid. However, there shall be no duty on the part of the City, or its employees, to convert said check or bond into cash, and the bidder shall accept all responsibility for failure of the bank to pay or honor sums. Said bids/proposals shall be opened by the City Clerk and reported to the City Administrator, the Mayor, and City Council. The contract shall be let to the lowest responsible bidder, except that all bids/proposals may be rejected and any advertisement shall so state. It should be noted that if only one bid/proposal is received a contract may still be awarded. Care must be taken to make sure the bid/proposal meets all statutory procedures and that the price received is fair and reasonable. This will help avoid any claims of impropriety. In the event of a tie between two vendors, the contract will be awarded after taking into consideration such factors as past performance of the vendor, locality, delivery time, and any other factors deemed appropriate. Public Works Contracts in Excess of $10,000 1. Bids/Proposals - Public Works Contracts Between $10,000 and $20,000 Contracts in excess of $10,000 up to $20,000 may be obtained after receiving two or more written quotations when and where possible (or if the situation dictates, oral quotes, followed by vendor written confirmation). A quotation that is submitted via a facsimile machine by the bidder shall meet this requirement. These quotes must be submitted with the check requisition form. 2. Bids/Proposals - Public Works Contracts in Excess of $20,000 Section 8-9-1 of the Illinois Municipal Code requires that a municipality go out to bid for any work or other public improvement which is not to be paid for in whole or in part by special assessment or special taxation when the expense thereof shall exceed $20,000 (65 ILCS 5/8-9-1). The municipality must let the contract to the lowest responsibility bidder in manner and form as is prescribed by Ordinance, except that any such contract may be entered into without advertising for bids by a vote of two-thirds of the Trustees elected. Whenever, the requirement for advertising for bids is waived by the City Council Members, the reason for the waiver must be stated publicly. Acceptable reasons for waiver of the bid requirements include but are not limited to: a. an emergency purchase; b. only one vendor available; c. equipment standardization; d. the technical nature of the item makes competition impractical; e. use of joint governmental purchasing program; f. intergovernmental cooperation governing public improvement projects; or g. competitive unit prices from a previously awarded contract. 3. Bids/Proposals - Public Works Contracts in Excess $100,000 Contracts in excess of $100,000 follow the same rules as contracts in excess of $20,000, but the contract has to be awarded to a company that participates in an approved BAT (Bureau of Apprenticeship Training) program, as per Resolution No 3748. 4. Advertisement for Bids/Proposals Where required by state or local law or this policy, the City shall advertise by invitation or publication in newspaper or trade journals for sealed bids/proposals for any proposed work, materials, commodities, or equipment. Such advertisement shall be inserted not less than 10 days or more than 30 days before the date set for opening bids/proposals. The notice for bids/proposals need give only a general description and/or plans and specifications shall be on file in the Administrative Office for inspection. The advertisement may call for each bid to be accompanied by a cashier's or certified check or bid bond in an amount equal up to 10 percent of the bid, to secure said bid. However, there shall be no duty on the part of the City, or its employees, to convert said check or bond into cash, and the bidder shall accept all responsibility for failure of the bank to pay or honor sums. Said bids/proposals shall be opened by the department head and reported to the City Administrator, the Mayor, and the City Council. The contract shall be awarded to the lowest responsible bidder, except that all bids/proposals may be rejected and any advertisement shall so state. It should be noted that if only one bid/proposal is received a contract may still be awarded. Care must be taken to make sure the bid/proposal meets all statutory procedures and that the price received is fair and reasonable. This will help avoid any claims of impropriety. In the event of a tie between two vendors, the contract will be awarded after taking into consideration such factors as past performance of the vendor, locality, delivery time, and any other factors deemed appropriate. Emergency Purchases Emergency purchases are made to protect public health, safety, and welfare that are threatened due to an event that has occurred or may soon occur. An emergency purchase shall be considered to be warranted when the purchase of supplies, equipment, or services is necessary to maintain continuation of vital City services. When an emergency exists, the Department Head or his/her designee should inform the City Administrator or his/her designee not later than noon of the work day following the emergency purchase as to what was required to correct the emergency situation. While the need for occasional emergency purchases is recognized, this practice shall be discouraged as much as possible. On-going materials and services utilized by the City should never be considered as an emergency purchase. Poor planning, inaccurate usage history, and inadequate forecasting, however, are often responsible for expedited purchases and are not bona fide emergency situations. Planning in advance for the needs of the department is the key to avoiding emergency purchases. Emergency purchases are normally costly and should be kept to a minimum. They are usually made hurriedly, on a non-competitive basis and at premium prices. Most vendors charge a premium when goods must be obtained immediately. By avoiding emergency orders, the City will save money. Petty Cash Purchases A petty cash fund has been established to expedite miscellaneous small purchases. The use of petty cash funds is authorized for reimbursement purposes. Petty cash funds should not exceed a single purchase amount of $50 unless previously authorized by the City Administrator, City Treasurer, or City Comptroller. Use of petty cash is intended for convenience and/or unforeseen purchases. It is not intended to circumvent the established purchasing procedures or to avoid proper planning of activities. Petty cash should be limited to: 1. The purchase of items which are not ordinarily on hand in the City. 2. The payment of handling or C.O.D. charges for goods delivered. 3. Small purchases that must be made in a timely fashion. In order to receive reimbursement, it is mandatory to present a receipt obtained from the vendor and complete a Petty Cash Slip. Petty cash is available from the City Treasurer or the City Comptroller. Credit Card Purchases Prior to any employee receiving a City credit card, the employee is required to sign a Cardholder Agreement form. When purchases are made on any City credit card, an itemized receipt must be attached to the statement in order for the City Treasurer/City Comptroller to process the payment. If a receipt is not available, a Missing Receipt Statement must be filled out and signed by the Department Head prior to submitting to the City Treasurer/City Comptroller. If not approved by the Department Head, the employee is responsible for paying the total amount of the purchase. The City credit card may not be used for the following purchases: • Meals and related expenses while cardholder is in a per diem travel status • Alcohol or any substance, material or service which violates policy, law or regulations pertaining to the City of Canton • Personal expenses • Cash advances • Prescription drugs/controlled substances • Equipment with a trade-in • Any purchase that is prohibited by current City purchasing policies and procedures Only the approved cardholder may use the City credit card. Use by anyone other than the cardholder is prohibited. The card is NOT transferable between cardholders or departments. Purchasing card transaction must not be split to divide a larger purchase, which is over the cardholder's single purchase limit. The cardholder shall retain a copy of the original itemized charge slip/receipt or invoice for all goods and services purchased, and any other information related to the purchase. These items need to be forwarded on to the Department Head as soon as possible for inclusion with their monthly report. It is the responsibility of the cardholder to attempt to resolve any disputes with a vendor. If a resolution is not possible, the cardholder should report the problem to the Department Head and the City Treasurer/City Comptroller. The cardholder is responsible for reporting the loss/theft of the card immediately to Wells Fargo (1-800-231-5511), the Department Head, City Administrator and the City Treasurer/City Comptroller. Employees using their own credit cards to make purchases on the City's behalf should follow the same guidelines stated above. Employees should not use their own credit cards unless it is an emergency situation or they have prior approval from their Department Head. To the degree practicable, City issued credit cards shall be utilized. Misuse of the card is considered a violation that could result in disciplinary action. If it is determined that a card has been used inappropriately, the card will be immediately cancelled and a full reimbursement for those charges will be made to the City. Expenditure Reimbursement Guidelines Employees must complete an Expense Report Form with attach itemized receipts and obtain Department Head approval. If a receipt is not available, a Missing Receipt Statement must be filled out and signed by the Department Head prior to submitting to the City Treasurer/City Comptroller. If not approved by the Department Head, the employee is responsible for paying the total amount of the purchase. The Department Head needs to submit a Purchase Order with the Expense Report Form and itemized receipts to the City Treasurer/City Comptroller to process the payment. The City will not reimburse the following expenses: • Meals and related expenses while cardholder is in a per diem travel status • Alcohol or any substance, material or service which violates policy, law or regulations pertaining to the City of Canton • Personal expenses • Prescription drugs/controlled substances • Equipment with a trade-in • Any purchase that is prohibited by current City purchasing policies and procedures Travel Expenses Reimbursable travel expenses include only those expenses incurred while traveling on official City business. Mileage Employees utilizing personal vehicles shall carry their own insurance with business use protection. The employee's personal vehicle insurance coverage is considered primary. Google Maps will be used to determine mileage among all points of travel. All vicinity mileage must be justified with an explanation on the Expense Report Form. Employees are still expected to record beginning and ending odometer readings for exact mileage in the event of a traffic detour. Mileage reimbursement will be refunded at a rate of $0.55 per mile (effective July 1, 2011). Meals To be eligible for a meal reimbursement while traveling on official business, the employee must be in travel status for more than three (3) hours within the meal time frame and be a distance of at least 10 miles from headquarters or home, whichever is closer. In the event that meals are included in a registration fee, no meal allowance should be claimed for that meal. An itemized receipt is required to obtain reimbursement. Alcohol is NOT reimbursable. Registration Fees If lodging and/or meals are included in the registration fee, the lodging and meal expense cannot be claimed for reimbursement. Whenever lodging and/or meals are included in a conference or registration fee, they must be noted on the Expense Report Form. Miscellaneous Expenses Miscellaneous business expenses associated with travel are reimbursable. Individual expense items MUST be supported by paid itemized receipts. All miscellaneous expenses are reported in the Expense Reimbursement (For items other than travel expenses to be reimbursed) section the Expense Report Form and must be explained in the space provided at the bottom of the form with sufficient information to be verified. Examples of allowable miscellaneous expenses include: needed work supplies purchased on an emergency basis, taxi fares, business telephone calls, etc. Miscellaneous expenses do NOT include tips and taxes on meals. If a receipt is not available, a Missing Receipt Statement must be filled out and signed by the Department Head prior to submitting to the City Treasurer/City Comptroller. If not approved by the Department Head, the employee will not receive reimbursement. Educational Reimbursement The City shall reimburse the employee for tuition and books required for attending any job related course or for attending any course required for a job related degree, in the amount not reimbursed by other agencies, provided the Mayor and the Department Head approve such in advance. The employee must fill out an Educational Reimbursement form prior to the beginning of the course. The above requirement would be contingent upon the successful completion of such a course. Successful completion is obtaining a grade of "C" or higher. The City will also pay the cost for continuing education to maintain any required license. Alderman Schenck further discussed the budgeting process along with the policy regarding emergency situations. Further discussion took place regarding the need for clarification in the language in the policy that would clearly state the increase is strictly for emergency situations that would be outside of the approved budget. The language will be revised and brought back for further review. PURCHASE OF NEW GENERATOR FOR SQUAD 1-FIRE DEPARTMENT Chief Frank explained that this is the truck the City was trying to sell. The City found out that one of the fuel injectors broke off and went into the engine. The small engine people say it can be fixed, but it will cost more than the $1134.99 it would take for the city to order a new one and the mechanic to put it in. The City is not currently using this vehicle, but feels it needs to be repaired. The general consensus is to try to sell the vehicle "as is". The City will try to sell the vehicle as is, however if the vehicle can't be sold "as is" the repairs will be approved to help sell the vehicle. PURCHASE OF 10 SCBA AIR BOTTLES Chief Frank explained that this request is part of the air bottle replacement program. The air bottles are $640.00 per bottle. Ten bottles would cost $6400.00 Motion and second were made by Aldermen Fritz/Pickel to send the request to Council for consideration. The motion carried by voice vote and was unanimous. APPLE IPAD II PURCHASE This will be brought forward for further discussion at the next meeting. ELECTRIC SUPPLY QUOTES- INTEGRYS ENERGY Integrys Energy supplies the electricity for our Canton operations. The existing two year contract has saved over $200,000. In order to take advantage of the low prices in the market currently Integrys has provided proposals for a new term beginning June 1, 2012. The recommendation is to accept the Integrys quote for a two year term. This two year contract will save the city an additional $21,536 over this period. Motion and second were made by Aldermen West/Pickel to send the request to Council for consideration. The motion carried by voice vote and was unanimous. ANIMAL CONTROL AGREEMENT ~ rr ~ M E M O R A N D U M Ctty of Carrton - 2 Main 3treet, CaMan, IL 815Z0 Office of the City Administrator Phone: 309/647-2640 Fax: 309l647-234$ Ta May~ & Couna7 From: Jim Sni pafiae Febru~y 8, 012 Re: Animal Control Agreemern This memo wiil serve as a suminaiy of the Iates# proposal prepared by County Administrator Mike Hays, 'This updated propasal came as a result of a meedng I had with Fulton County State's Attorney John Clark and Mike Hays a few weeks ago. Attached yau will fmd Mike Hays' updated spreadsheets for the proposed animal control a~rreemen~ The anima,t control figures are for a 12 month period from Decamber, 2Q10 to Navember, 2011. Our shere of the anirnals for this period is 46%. This is higher than the previous spreads~heet which showed our share of the auimals at 44% (December, 2008 - May, aoio~. The second spreadsheet reflects ti~ same 12 month period as new animal control nwnbers - December, 2010 to November, 2011. They are now showing a$590.56 credit for tbe rabies t~gs, as per Alderrnan Fritz's request. Hawever, our share of the overall costs is increased to $24,893A2 from $21,091.48 due to increased oveiall expenses for ihe year. I have also attached a copy of the County's animal cantrol expense report for FY 11 that was requested by Alderman Ellis, for yaur review. There is no credit for rabies tags revenue. The County has this as a funding source and would continue to assess this f~ whether we contract with them or not. , The County is asking us to consider making the $24,893.a2 amount as a retroactive payment for the 12 montb period beginning November 1, 2010. We have already paid $10,000 for this past year, so the additional amount they m~e asking for is $14,893.42. In order to move ttus move this matter forward, I recommend we offer to make a$24,893.42 payment for the 12 month period beginning November 1, 2d11. Thie amount wonld be the llmit of our contribution for this new fiscal year. Tbe following year's contribution would be baaed on oar sharc FY 2011 aetaal costa and percentage of unimals. A term woald also have to be determined. pleasc advise as W your questions and or camments. 1. Alderman Ellis explained that the city should receive 100% credit for the services the city provides, thus adjusting the credit reported. Motion and second were made by Aldermen West/Pickel to pay the retroactive amount but get the full credit of the $3,000.00 for the services provided. The amount to be paid will be $23,523.32 The motion carried by voice vote and was unanimous. PURCHASE OF BALISTIC VESTS-POLICE DEPARTMENT Chief Dan Taylor reported: According to the National Institute for Justice, ballistic vests should be replaced every five (5) years. This year there are four (4) officers due for vest replacement. These vests are a budgeted item that will be covered partly under our bullet proof vest grant which is a reimbursement grant. (50% through the Department of Justice and 50% through Police Department line item 470). Therefore, I am requesting to purchase four (4) Paca Blue Steel Leve) IIA vests from the Ray O'Herron Company. The Ray O'Herron Company has quoted a price of $725.00 per vest. The cost breakdown for the Paca Blue Steel Level IIA vests is as follows: Paca Blue Steel Level IIA vest - 4@$725.00 each $2900.00 Less Grant Funding ($1450.00) Total Cost to Department $1450.00 Chief Taylor respectfully request authorization to purchase four (4) Paca Blue Steel Level IIA vests from the Ray 0'Herron Company 3549 N. Vermilion Danville, Illinois. The total cost to the Department is $1450.00. However, the City needs to pay the full amount ($2900.00) up front and then submit for reimbursement from the Department of Justice. Motion and second were made by Aldermen Fritz/Pickel to send the request to Council for consideration. The motion carried by voice vote and was unanimous. The Finance Committee adjourned at 7:06 p.m. LEGAL & ORDINANCE ALDERMAN JEFF FRITZ, CHAIRMAN NOISE ORDINANCE This will be brought back next month for review. SPECIAL EVENT PERMIT/APPLICATION Attorney Peterson met with Missy Towery and Dana Smith at the Chamber of Commerce to get feedback on the permit and application process for special events to be held in Jones Park. The only thing coming to council for a special event would be if an individual wanted to close a public right of way. Changing the permit application from 60 days to 30 days was also a recommendation. The chamber and Main Street should be made aware of closures as well. Determination would need to be made if fees would be assessed for the services provided for special events. On occasion the events require overtime from various departments. Some communities provide fee schedules for special events. Insurance was another item that was discussed for special events. Alderman Fritz recommended having the organizations provide an insurance certificate for the one day events as previously required. Further discussion took place regarding what fees would be charged and what types of organizations would be required to pay fees. Attorney Peterson will bring additional information back for further review. RECAPTURE AGREEMENT Attorney Peterson explained that the City had an agreement with prior owners. The City received correspondence from the new owners requesting a transfer of the agreement. The new owners would be responsible to pay the balance of the agreement. 3600.00. Below is a copy of the agreement proposed. WHEREAS, the Owner(s) is/are the holder of legal title to certain real estate on which a business (the "Business") is located, commonly known as 17 E. Side Square, Canton, Illinois (the "Property"). The real estate is legally described in Exhibit A attached hereto and by this reference made a part hereof; and WHEREAS, the Grantor has received a grant from the Illinois Department of Commerce and Economic Opportunity (DCEO) from which the Grantor made a forgiveable loan to the prior owner(s) of the building, 17 E. Side Square Inc., and/or Vicki Versace (n/k/a Vicki Napoli) (the "Prior Owners") in the amount of Seventeen Thousand and no/100's ($17,000.00); and WHEREAS, the Grantor and the Prior Owners entered into a Recapture Agreement on or about October 14, 2009, wherein it stated that if Prior Owners sold the property or a conveyance or transfer of the Property other than a transfer by will or by operation of law upon the death of the Prior Owners or such other transfer as may be approved by the City of Canton, in their sole discretion, occurs within the applicable "Recapture Period") for the DCEO loan, the Prior Owners agreed to pay the City of Canton a prorated portion of said loan. For the loan, the Recapture Period is five (5) years and the amount of repayment would be the amount of the loan reduced by twenty percent (20%) for a five (5) year Recapture Period or 1/60th per month for each full year of ownership of the Property from the date of completion of the project and sign off by the Prior Owners on the date of inspection; and WHEREAS, on or about January 23, 2012, Dearl and Patty Rose requested the City of Canton approve the transfer of the Property from the Prior Owners to themselves without requiring any repayment under the Recapture Agreement; and WHEREAS, the City Council approved such requests on , 2012; and WHEREAS, as an inducement to the Grantor to waive immediate repayment under the Recapture Agreement, Dearl and Patty Rose have agreed to enter into this Agreement and in accordance to the terms, conditions and covenants set forth below. NOW, THERFORE, the parties hereto covenant and agree as follows: 1. Incorporation. The foregoing recitals are made a part of this Agreement as fully and with the same force and effect as if repeated herein at length. 2. Restrictions. As a condition of the provision of the Grant, Owners agree, among other things, to repay to the Grantor a pro-rated portion of the DCEO Grant or net proceeds of the sale if the Owners cease to own the Property or if a sale, conveyance or transfer of the Property other than a transfer by will or by operation of law upon the death of the Owners or such other transfer as may be approved by the Grantor, in their sole discretion, occurs within the applicable "Recapture Period: for the DCEO Grant. For this Grant, the Recapture Period is five (t) years and the amount of the repayment shall be the amount of the Grant reduced by twenty percent (20%) for a five (5) year Recapture Period for each full year of occupancy of the Business by the Business Owners from the original date the Recapture Agreement was fully executed with Prior Owners on October 14, 2009. 3. Covenants to Run With the Land: Termination. The agreements set forth in this Agreement shall encumber the Property and be binding on any future owner of the Property and the holder of any legal, equitable or beneficial interest in it for the term of this Agreement. This Agreement shall automatically terminate as of the fifth (5t") annual anniversary of its date. 4. Violation of A~reement bv Owner. Upon the Owners' failure to make any payment due under this Agreement, the Grantor shall give written notice thereof to the Owners by registered or certified mail addressed to the address stated in this Agreement, or such other address as subsequently, upon appropriate written notice thereof to the Grantor, be designated by the Owners. If payment is not made within such further time as the Grantor in its sole discretion permits, but not less than thirty (30) days, the Grantor may declare a default under this Agreement effective on the date of such declaration of default and notice thereof to the Owners, and upon such default the Grantor may: a. Declare the unforgiven portion of the Grant is due and payable; and/or b. Exercise such other rights or remedies as may be available to the Grantor hereunder, at law or in equity. The Grantor's remedies are cumulative and the exercise of one shall not be deemed an election of remedies, nor foreclose the exercise of the Grantor's other remedies. 5. Amendment. This Agreement shall not be altered or amended except in a writing signed by the parties hereto. 6. Partial Invaliditv. The invalidity of any clause, part or provision of this Agreement shall not affect the validity of the remaining portions thereof. 7. Gender. The use of the plural in this Agreement shall include the singular; the singular shall include the plural; and the use of any gender shall be deemed to include all genders. 8. Captions. The captions used in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or the intent of the agreement. 9. Waiver of Jurv Trial. The parties waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on an matter whatsoever arising out of or in any way connected with the loan or this agreement. Motion and second were made by Aldermen Fritz/West to forward to Council for consideration. The motion carried by voice vote and was unanimous. DISCUSS. CONSIDER AND VOTE ON BANNING SYNTHETIC DRUGS Attorney Peterson and Chief Taylor worked together in drafting an ordinance for banning synthetic drugs. The school along with the coilition will host a town hall meeting on March 26, 2012. Below is a copy of the ordinance presented for banning of synthetic drugs. WHEREAS, the City of Canton is a non-home rule municipality within Article VII, Section 6A of the Illinois Constitution and, pursuant to the powers granted to it under 65 ILCS 5/1-1 et seq.; and, WHEREAS, the City of Canton has encountered products being sold at commercial businesses within its corporate boundaries containing compounds originally designed as synthetic alternatives (i.e., synthetic cannabinoids, synthetic stimulants and/or synthetic psychedelic/hallucinogens) to prohibited controlled substances such as tetrahydrocannibol (THC), cathinone, methcathinone, MDMA and MDEA; and WHEREAS, the City of Canton find that products containing such synthetic alternatives may be purchased for recreational use currently as an alternative to otherwise regulated controlled substances banned at the Federal, State, and local levels; and WHEREAS, the City of Canton finds that products containing synthetic cannabinoids, synthetic stimulants and synthetic psychedelic/hallucinogens are particularly attractive to children and young adults due to their availability in small packages at neighborhood stores at minimal costs, as well as due to the names being given to these substances which are intended to appeal to children and young adults, as set forth on Exhibit "A" attached hereto and incorporated herein; and WHEREAS, the U.S. Department of Justice Drug Enforcement Administration ("DEA") has determined that the consumption of synthetic cannabinoids can have adverse health effects such as agitation, anxiety, nausea, vomiting, tachycardia (accelerated heart rate), elevated blood pressure, tremors, seizures, hallucinations, paranoid behavior and non- responsiveness; and WHEREAS, the DEA has determined that consumption of synthetic stimulants affect alertness, and have been linked to severe psychotic episodes, increased heart rates, panic attacks, and hallucinations; and WHEREAS, the American Association of Poison Control Centers ("AAPCC") monitors and records call to the 57 poison control centers in the United States; and WHEREAS, in 2010 the AAPCC recorded 303 calls regarding synthetic drugs labeled as "bath salts" and 2,915 calls for synthetic marijuana; and WHEREAS, the numbers rose dramatically in 2011 as the AAPCC received 6,072 calis regarding synthetic drugs labeled as "bath salts" and 6,890 calls for synthetic marijuana; and WHEREAS, the City of Canton is aware of fatal overdoses in other Illinois communities and in other States, which are believed to have resulted from the users' consumption of synthetic stimulants, cannabinoids or psychedelic/hallucinogens; and WHEREAS, the corporate authorities have the power and duty to provide for and protect the public health, safety and welfare of the citizens of the City of Canton; and WHEREAS, the City of Canton deems it necessary and desirable to prohibit the sale, delivery, possession and use of products containing synthetic cannabinoids, synthetic stimulants and synthetic psychedelic/hallucinogens in order to protect the public health, safety and welfare of the citizens of Canton. NOW, THEREFORE, BE IT ORDAINED by the corporate authorities of the City of Canton, County of Fulton, State of Illinois, as follows: SECTION ONE:The foregoing recitals are hereby incorporated as though fully set forth herein. SECTION TWO: That Title 6, Chapter 22 of the Canton Municipal Code be amended by adding the following new subsections to read as follows: 6-22: Synthetic Alternative Drugs. 6-22-1: Definitions. For purposes of this article, the following definitions shall apply unless the context clearly indicates or requires different meaning: (1) A product containing a synthetic alternative drug means any product containing a synthetic cannabinoid, stimulant or psychedelic/hallucinogen, as those terms are defined herein such as, but not limited to, the examples of brand names or identifiers listed on Exhibit "A" attached hereto and incorporated herein. (2) Synthetic cannabinoid means any laboratory-created compound that functions similar to the active ingredient in marijuana, tetrahydrocannabinol (THC), including, but not limited to, any quantity of a natural or synthetic material, compound, mixture, preparation, substance and their analog (including isomers, esters, ethers, salts, and salts of isomers) containing a cannabinoid receptor agonist, such as: • JWH-007 (1-pentyl-2-methyl-3-(1-naphthoyl)indole) • JWH-015 ((2-Methyl-l-propyl-lH-indol-3-yl)-1-naphthalenylmethanone) • JWH-018 (1-pentyl-3-(1-naphthoyl)indole) • JWH-019 (1-hexyl-3-(naphthalen-l-oyl)indole) • 1WH-073 (naphthalen-l-yl-(1-butylindol-3-yl)methanone) • JWH-081 (4-methoxynaphthalen-l-yl-(1-pentylindol-3-yl)methanone) • JWH-098 (4-methoxynaphthalen-l-yl-(1-pentyl-2-methylindol-3-yl)methanone) • JWH-122 (1-Pentyl-3-(4-methyl-l-naphthoyl)indole) • JWH-164 (7-methoxynaphthalen-l-yl-(1-pentylindol-3-yl)methanone • JWH-200 (1-(2-morpholin-4-ylethyl)indol-3-yl)-naphthalen-l-ylmethanone) • JWH-203 (2-(2-chlorophenyl)-1-(1-pentylindol-3-yl)ethanone • 1WH-210 (4-ethylnaphthalen-l-yl-(1-pentylindol-3-yl)methanone • JWH-250 (1-pentyl-3-(2-methoxyphenylacetyl)indole) • JWH-251 (1-pentyl-3-(2-methylphenylacetyl)indole) • JWH-398 (1-pentyl-3-(4-chloro-l-naphthoyl)indole) • HU-210 ((6aR,10aR)-9-(Hydroxymethyl)-6,6-dimethyl-3-(2-methyloctan-2-yl)- 6a,7,10,10a-tetrahydrobenzo [c]chromen-l-ol) • HU-211 ((6aS,10aS)-9-(Hydroxymethyl)-6,6-dimethyl-3-(2-methyloctan-2-yl)- 6a,7,10,10a-tetrahydrobenzo [cJchromen-l-ol) • HU-308 ([(1R,2R,5R)-2-[2,6-dimethoxy-4-(2-methyloctan-2-yl)phenyl)-7,7-dimethyl- 4-bicyclo[3.1.1]hept-3-enyl] methanol) • HU-331 ((3-hydroxy-2-[(1R,6R)-3-methyl-6-(1-methylethenyl)-2-cyclohexen-l-yl~-5- pentyl-2,5-cyclohexadiene-l,4-dione) • CP 55,940 (2-[(1R,2R,5R)-5-hydroxy-2-(3-hydroxypropyl) cyclohexyl]- 5-(2- methyloctan-2-yl)phenol) • CP 47,497 (2-[(1R,3S)-3-hydroxycyclohexyl]- 5- (2-methyloctan-2-yl)phenol) and its homologues • WIN 55,212-2 ((R)-(+)-[2,3-Dihydro-5-methyl-3-(4-morpholinylmethyl)pyrrolo [1,2,3- de)-1,4-benzoxazin-6-yl]-1-nepthalenylmethanone) • RCS-4 ((4-methoxyphenyl)(1-pentyl-lH-indol-3-yl)methanone) • RCS-8 (1-(1-(2-cyclohexylethyl)-1H-indol-3-yl)-2-(2-methoxyphenyl)ethanone) (3) Synthetic stimulant means any compound that mimics the effects of any federally controlled Schedule I substance such as cathinone, methcathinone, MDMA and MDEA, including, but not limited to, any quantity of a natural or synthetic material, compound, mixture, preparation, substance and their analog (including salts, isomers, and salts of isomers) containing substances which have a stimulant effect on the central nervous system, such as: • 3-Fluoromethcathinone • 4-Fluoromethcathinone (other name: flephedrone) • 3,4-Methylenedioxymethcathinone (other name: methylone, MDMC) • 3,4-Methylenedioxypyrovalerone (other name: MDPV) • 4-Methylmethcathinon (other names: mephedrone, 4-MMC) • 4-Methoxymethcathinone (other names: methedrone, bk-PMMA, PMMC) • 4-Ethylmethcathinone (other name: 4-EMC) • Ethcathinone • Beta-keto-N-methylbenzodioxyolylpropylamine (other names: butylone, bk-MBDB) • Napthylpyrovalerone (other names: naphyrone, NRG-1) • N,N-dimethylcathinone (other name: metamfepramone) • Alpha-pyrrolidinopropiophenone (other name: alpha-PPP) • 4-methoxy-alpha-pyrrolidinopropiophenone (other name: MOPPP) • 3,4-methylenedioxy-alpha-pyrrolidinopropiophenone (other name: MDPPP) • Alpha-pyrrolidinovalerophenone (other name: alpha-PVP) ~ 6,7-kihydro-SH-indeno(5,6-d)-1,3-dioxal-6-amine) (other name: MDAI) • Any compound that is structurally derived from 2-amino-l-phenyl-l-propanone by modification or substitution in any of the following ways: ¦ in the phenyl ring to any extent with alkyl, alkoxy, alkylenedioxy, haloalkyl, or halide substituents, whether or not further substituted in the phenyl ring by one or more other univalent substituents; ¦ at the 3-position with an alkyl substituent; ¦ at the nitrogen atom with alkyl, dialkyl, benzyl, or methoxybenzyl groups; ¦ or by inclusion of the nitrogen atom in a cyclic structure. (4) Synthetic psychedelic/hallucinogen means any compound that mimics the effects of any federally controlled Schedule I substance, including but not limited to, any quantity of a natural or synthetic material, compound, mixture, preparation, substance and their analog (including salts, isomers, esters, ethers and salts of isomers) containing substances which have a psychedelic/hallucinogenic effect on the central nervous system and/or brain, such as: • 2-(2,5-Dimethoxy-4-ethylphenyl)ethanamine (2GE); • 2-(2,5-dimethoxy-4-methylphenyl)ethanamine (2C-D); • 2-(4-Chloro-2,5-dimethoxyphenyl)ethanamine (2C-C); • 2-(4-lodo-2,5-dimethoxyphenyl)ethanamine (2C-I); • 2-(4-(Ethylthio)-2,5-dimethoxyphenyl)ethanamine (2C-T-2); • 2-(4-(Isopropylthio)-2,5-dimethoxyphenyl)ethanamine (2C-T-4); • 2-(2,5-Dimethoxyphenyl)ethanamine (2C-Hj; • 2-(2,5-Dimethoxy-4-nitro-phenyl)ethanamine (2C-N); • 2-(2,5-Dimethoxy-4-(n)-propylphenyl)ethanamine (2C-P). 6-22-2: Sale or Delivery. It shall be unlawful for any person, firm, partnership, corporation, LLC or other legal entity to sell, offer for sale, advertise, display or deliver any product containing a synthetic cannabinoid, stimulant or psychedelic/hallucinogen. 6-22-3: Possession. It shall be unlawful for any person to knowingly possess a product containing a synthetic cannabinoid, stimulant or psychedelic/hallucinogen. 6-22-4: Use. It shall be unlawful for any person to be under the influence of a synthetic cannabinoid, stimulant or psychedelic/hallucinogen. 6-22-5: Penalties. Any person, firm, partnership, corporation, LLC or other legal entity found to be in violation of this Chapter shall be subject to a fine of not less than five hundred ($500.00) nor more than seven hundred fifty dollars ($750.00) for each offense thereof. Each violation of this ordinance, or everyday a violation continues to exist, shall constitute a separate offense. For any person guilty of violating this Chapter a penalty of up to fifty (50) hours of community service work may be sentenced in addition to or as an alternative to any fines issues. SECTION THREE: All ordinances or portions thereof in conflict with this ordinance are hereby repealed. SECTION FOUR: Should any provision of this Ordinance be declared invalid by a court of competent jurisdiction, the remaining provisions will remain in full force and effect the same as if the invalid provision had not been a part of this Ordinance. SECTION FIVE: This Ordinance shall be in full force and effect after its approval, passage and publication in pamphlet form as provided by law. Motion and second were made by Alderman Fritz/Pickel to send to Council for consideration. The motion carried by voice vote and was unanimous. The Legal & Ordinance Committee adjourned at 7:29 p.m. COMMUNITY & INDUSTRIAL DEVELOPMENT ALDERMAN JEREMY PASLEY, CHAIRMAN (ABSENTJ UPDATE FROM MARK ROTHERT • RETAIL/COMMERCIAL/INDUSTRIAL DEVELOPMENT o I will be providing a presentation on 2/28 about the downtown movie theater and efforts by our local working group comprised of community leaders to look into the feasibility of revitalizing the facility. This will be preceded by a presentation by some students from the Canton High School civics class on their survey project as it related to the theater. o I recently received a TIF request from a relocating business in the downtown for assistance with architectural plans. The amount requested is below $1,000. Every time a request is made and approved a redevelopment agreement has to be created. A more efficient way to process future request may be for the council to create a TIF grant program that stipulates the parameters of what the TIF grant can be used for (i.e. plans, facades, etc.). Under a defined grant program, redevelopment agreements would no longer be needed for incentives that are approved by the city council. Setting aside funding for such a program is, of course, at the discretion of the city council. o I am currently working leads for the following sites of high interest: 1. 61 East Side Square 2. Main and Locust 3. Sirloin Stockade property o The former Maid Rite building has been purchased by a Jacksonville business owner looking to move here. o I met with officials from Aventine who plan to hopefully have the ethanol plant up and running by this summer. • TOURISM REPORT: o Please see the reverse for a report from Dana Smith. • OTHER: o Ameren Quality of Labor Survey: Ameren, Western Illinois Workforce Investment Board and the SRPED are working together to conduct a survey of area employers. The goal of the survey is to evaluate the area's workforce in a multi-county region from a business operator's perspective. The results will be used to identify and address workforce issues within the region and take steps to assure that the needs of area employers are being met, both now and in the future. o Upcoming Grant Opportunities: ¦ Our Town (see memo in agenda packet) & IDOT ITEP, due in May 2012 o Lt. Gov. Sheila Simon will be hosting a Rural Listening Post Tuesday, March 6th from 4-6 p.m. at the Four Points by Sheraton Hotel and Conference Center in Downtown Peoria. The listening posts will provide an interactive format for rural elected officials, policymakers, and local leaders to share their insights with the Lieutenant Governor and members of the Governor's Rural Affairs Council on issues facing rural Illinois. o Canton Main Street members at this morning's Coffee at Crawford's brought up the recent commercials that the city helped in paying for 50% of the costs. Those at the meeting, and other businesses that took part in the program, wanted to thank the city for undertaking such a program. General Marketing & Tourism • Met with Kelvin Sampson at Dickson Mounds Museum to tour the facility and discuss Canton's participation in the Lewistown Visitor's Center. Will solicit input from the Marketing & Tourism committee on content and highlights to be featured in Canon's display. • Contacted Aimee Francis with Interpretive Graphics to move forward on the Historic Walking Tour plaques. • Met with Gary and Heidi Leese to gain approval of the Historic Walking Tour plaque for their building, formerly the Canton Hotel. • Attended ribbon cuttings and Business After Hours for County Market Pharmacy, The Paw Spa, and Ipava State Bank/White Oaks. • Updated shopping and dining guides for distribution to the Canton Harvester Inn and local businesses. Canton Main Street • Assisted with taking down "Light the Night" decorations in Jones Park. • Was the featured speaker at the Rotary Club meeting on January 4 to speak about Canton Main Street and solicit support. • Attended Canton Main Street Coffee at Crawford's on January 10. • Met with Missy Towery, Mark Rothert and Heidi Wilner to discuss Canton Main Street events and programs on January 17. • Assisted with the planning and execution of Canton Main Street's annual fundraiser, Glacial Golf, as well as serving as an at-large coordinator and "hole-watcher" during the event on Saturday, January 21. • Met with a new committee to assist with the development of a Canton art fair as a Canton Main Street event in June 2013. • Met with Canton Main Street Organization Committee to assist with development of a membership campaign in February. This included re-designing a membership brochure and assembling packets for the committee to use in the campaign. • Attended Canton Main Street Board on Monday, January 30, at the Palm Cafe. Scenic Drive • Began development of mailing to be dropped in March. GRANT OPPORTUNITY WITH NATIONAL ENDOWMENT FOR THE ARTS- OUR TOWN PROGRAM Mark Rothert discussed the following: BACKGROUND The National Endowment for the Arts is sponsoring a grant opportunity through its Our Town program. Our Town will invest in creative and innovative projects in which communities, together with their arts and design organizations and artists, seek to: Improve their quality of life. Encourage creative activity. Create community identity and a sense of place. Revitalize local economies. Projects may include planning, design, and arts engagement activities that reflect a systemic approach to civic development and a persuasive vision for enhanced community vibrancy. Projects will start on or after September 1, 2012. POTENTIAL PROJECT Our Town goals for creative place-making through the arts fits perfectly with previously proposed plans here in Canton for additional murals in the downtown. FISCAL IMPACT Applicants must request a grant amount at one of the following levels: $25,000, $50,000, $75,000, $100,000, or $150,000. NEA will award very few grants at the $150,000 level. The Our Town grant requires a 100% local match of funds. TIF funds are the likeliest source of funds to support such a project. RECCOMENDATION If the city council supports this grant application and commits funding to the project, I would recommend applying for an amount that is $50,000 or lower. In looking at communities that received a grant last year that were near Canton's size, this amount seems like where our community would be best competitive. Motion and second were made by Aldermen West/Pickel to apply for the 50,000.00 grant and direct Mark ROthert to begin the grant application process. The motion carried by voice vote and was unanimous. The Community & Industrial Development Committee adjourned at 7:40 p.m. Negotiations, Grievance & Personnel Alderman Dave Pickel, Chairman Nothing for open session. The Clerical Committee adjourned at 7:41 p.m. No Executive Session Held Adiournment The Clerical Committee adjourned at 7:41 pm r~ f`,. - ~ l ,E:~ na Pavley City Clerk