HomeMy WebLinkAbout12-11-2012 Clerical Commitee Meeting Minutes CITY OF CANTON
CLERICAL COMMITTEE
Tuesday December 11, 2012 6:30 p.m.
Donald E. Edwards Way
50 North 4th Avenue Canton IL 61520
Aldermen in attendance: Dave Pickel, Justin Nelson, Jeff Fritz, Gerald Ellis, Craig West, Jeremy
Pasley, Eric Schenck
Aldermen absent: Jim Hartford
Staff in attendance: City Clerk Diana Pavley, City Attorney Chrissie Peterson, City
Administrator Jim Snider, City Treasurer Nicole Marter, Comptroller Caty Campbell, Assistant
Fire Chief Tom Shubert, Police Chief Dan Taylor, Public Works Director Bill Terry, City Engineer
Keith Plavec, Executive Director Spoon River Partnership Missy Towery
Joe Ginger Video Services.
In the audience:
Jay Smith, Dan Oaks, Harold Jump, Marty Brown, Lance Lusk
News Media- John Froehling from Daily Ledger.
Finance
Alderman Craig West, Chairman
BILLS
Page 5 reflects the bill for Spring Brook Software for $88,535.00. This was the first payment
made toward the software. Telephone conferences have taken place with Springbrook and the
City feels they are on track to have the financial part of the software running by May 1, 2013.
Page 11 reflects 100% of the rock salt in for the winter season.
Page 18 reflects the semi-annual sludge removal at the WTP. The EPA makes disposal
mandatory. This bill was $82,000.00. This is funded by user rates.
Page 22 The final payment was made to Leander for the UV project at the WWTP in the
amount of $88,000.00. The total project was 1.6 million dollars.
Page 24 reflects a revolving loan to True Value Hardware in the amount of $50,000.00
Page 3 reflects legal services to Claudon and Beal were for the police arbitration for two
months. Alderman Fritz would like to get a detail on these charges.
Motion and second were made by Aldermen West/Pickel to send to Council for consideration.
The motion carried by voice vote and was unanimous.
TREASURER'S REPORT
The total available cash at the end of the month was 2.8 million dollars. The total investments
were 4.3 million dollars. The City has received all of the property tax money for the year. The
general fund month to date loss was $262,205.00 and the year to date loss was $51,389.00.
The water and sewer month to date gain was $60,818.00. The Year to date gain was
$1,126, 331.00.
Trac Equipment and Sarah's Friendly True Value was added to the revolving loans. The first
payments have been collected already though not reflected as of November 30, 2012. A-Z and
Fuller Jewelry are behind on their payments.
Motion and second were made by Aldermen West/Fritz to send to Council for consideration.
The motion carried by voice vote and was unanimous.
MICA MEMO
The Council decided to join MICA in December 2010 for an initial three year term. The fixed
annual premium from MICA was $454,022.00. This was $68,611.00 less than the IMLRMA fixed
plan. MICA as a group is very aggressive in controlling losses and reducing claim costs to its
members. Effective loss control measures and a concerted effort from the entire pool have led
to a surplus in the loss fund. The total dollar amount of loss fund money returned to the MICA
members as of 05-01-2008 is in excess of $7,900,000.00 and additional returns will be
distributed in the future.
To put this more into perspective, the loss fund as a percent of MICA'S total insurance program
costs is over 70%. A 50% return of the loss fund therefore represents a 35% reduction of total
insurance costs to MICA members as a group; most MICA members had already seen
substantial savings when they joined MICA.
Our member premium for May 1, 2012-April 30, 2013 is $417,338.00 this is $34,681.00 lower
than the FY premium. The decision to join MICA has saved the tax payers of Canton a minimum
of $171,906.00 for FY12 & FY13 versus the plan with IMLRMA.
FY 14 BUDGET SCHEDULE MEMO
Work on the 2013-2014 budget has begun. The upcoming budget process will be as challenging
as we have faced in recent years. We are still under the pressure of relatively lower state
revenues and the ever present concern that the General Assembly will attempt to cut into our
current revenue stream.
Along with budgeting a 2%% wage increase across the board, our health insurance consultant
Rick Semonis has recommended that we prepare for a 23% increase in our health care cost with
BCBS for FY 2013. We should receive our renewal in February and then we can evaluate where
we go from there. We may have to consider going out for a RFP on our coverage if we are
unable to negotiate a lower percentage increase with BCBS.
We also have begun talks with representatives of Intergovernmental Personnel Benefit
Cooperative (IPBC) IBPC is a municipal heath insurance cooperative of several municipalities
primarily in the Chicago area. The City has been successful in lowering our liability and
workman's compensation insurance costs with the Municipal Insurance Cooperative Agency
(MICA) over the last two years since we joined that group. Many of the MICA members are also
members of IPBC.
Jim Snider would like to schedule a strategic planning session with the Council on Saturday,
February 2nd so that we can prioritize the list of capital items for the budget. We would begin
about 9:00 a.m. and conclude by 4:00 p.m.
Outlined below is a tentative schedule for our upcoming budget process:
January 4, 2013 - Department Heads provide CA draft Expense Budget &
Capital Requests
February 2nd - Strategic Planning Session
February 28th - Draft Budget Delivered for Council Review
March 5th - Budget Work Session: Reviewing Revenue Projections in all
Funds and Expenses in the General Fund
March 19th - Budget Work Session: Reviewing Remaining Expense Items
April 2rd - First Reading of Proposed Budget
April 16th - Public Hearing and Final Reading of Proposed Budget
POLICE AND FIRE PENSION REPORT
Due to the significant increase in the tax levy in the fire pension area it was requested to have
someone from the fire and police pension at the meeting to discuss the operation of the funds.
Marty Brown representing the police pension fund explained that the police pension fund is paid by
the active officers that pay into the fund. The tax levy is determined by The State of Illinois each year
with the exception of last year. A firm was hired that provided the information. The actuarial report
was received and the police pension fund is between 90-91% funded. The investments are doing
well causing the percentage funded to increase over the last several years. The police pension board
meets quarterly and the board makes the determination on how the funds are invested based upon
the report presented. Currently 50-52% of the funds are invested in equities and they are continuing
to work toward the 55% maximum. Approximately 22 people are currently drawing from the police
pension funds.
Dan Oaks representing the fire pension fund explained that the types of investments are dictated by
state statute. Due to the total worth of the fire pension fund the max is 45% in equities. You must
have a fund over 10 million to have a higher amount in equities going up to a maximum of 55%
Since 2009 MidAmerican has been used as trust advisors. The board has set the parameters from
within the statute on what types of investments and percentages will be made. A 13% return has
been received each year since 2009. One of the reasons for the increase in the fire pension fund tax
levy is the fact that the fund balance is 6 million for the fire fund, the police fund is 14 million. So if
they both would have a 10% return, the firefighters return would be $600,000.00 and the police
funds return would be 1.4 million dollars, and their fund would grow faster causing less tax dollars to
be needed. The fire department has more retirees drawing than the police department with less
firefighters being active people paying into the fund.
In 1993 the last time there were significant changes in the pension code they went to a 40 year
amortization for municipalities to fund the unfunded liability in the pension fund. At the time it
started out to be an even payment (like a fixed mortgage) but in the end it was decided through
negotiations that they would prefer that it would be more like a subprime mortgage. The payments
started being only 60% of what the fixed rate would be. Dan explained it will get worse of something
is not done in Springfield. The firefighter pension fund was almost 80% funded last year, but starting
in July the funding formula was changed to make the unfunded liability starts at day 1 when a new
officer is hired. The actuarial report received from the department of insurance reflected that the
fire pension fund was only 40% funded. The only changes were one employee retired and one
employee was hired. The funding is normally based over a 30 year career. The unfunded liability is
put on the books as of day one. This creates a higher payment for the tax payers. Approximately
25-30 people are currently drawing from the fire pension fund.
Jim Snider explained that traditionally the City has used property tax to fund the pension funds.
Three different options could be explored at funding the pension funds. One option is to continue
with the tax levy, or find another source of revenue, or looking at benefit and manpower costs. The
pension issue is not going to go away, but rather it is going to get worse. It will be a challenge going
forward with the budget.
Dan Oaks further explained that he has been on the pension board for 25 year and The City of
Canton has not ever put anything other than what the department of insurance indicated needed to
be put in. Even when times were tough in the 80's they still met their obligations.
APPLICATION FOR PAYMENT NO 5 FROM ALL SERVICE CONTRACTING FOR THE WTP FILTERS NO 1
& 3 REHAB PROJECT IN THE AMOUNT OF 510,928.70
The request will finish filter #3 and will be a bond related expense.
Motion and second were made by Aldermen West/Pickel to send to Council for consideration.
The motion carried by voice vote and was unanimous.
INVOICE # 28169 FROM ADVANCED ASPHALT FOR THE 2012 MFT IN THE AMOUNT OF
$255.378.15
This is 2012 MFT program and is the only invoice for the year. All of the work is complete.
Motion and second were made by Aldermen West/Fritz to send to Council approval from the MFT
fund.
The motion carried by voice vote and was unanimous.
DISCU55, CONSIDER AND VOTE ON A RESOLUTION REGARDING AN INTERGOVERNMENTAL
AGREEMENT BETWEEN THE ILLINOS OFFICE OF THE COMPTROLLER AND THE CITY OF CANTON
REGARDING THE LOCAL DEBT RECOVERY PROGRAM.
The formal paperwork was submitted for review for the local debt recovery program. The City
will begin the program in 2-3 weeks to collect on past due water bills.
Motion and second were made by Aldermen Fritz/Pickel to send to council for consideration.
The motion carried by voice vote and was unanimous
JUNIPER STREET STORM SEWER RELOCATION
The City was contacted by a homeowner on Juniper Street regarding concerns with the storm
sewer. The request was to extend the pipe toward the creek that is in the back. The
homeowner had concerns about corrosion issues because the storm sewer was not placed
where it was suppose to be. The plat was completed in 1977 and the work was completed in
the next couple of years. It appears that the existing inlet is running through lot 59. It is
suppose to be running in an easement that was setup in the plat between lot 58 and 59. There
was a 10 foot easement. The storm sewer is sitting in an area that is not in the easement.
This was a contract done by the developer. One contractor was contacted regarding the work
that needed to be done. A quote was received in the amount of $15,000.00 to relocate the
storm sewer. Another thing that Maurer and Stutz is looking at is trying to establish the actual
property line. Coordination would have to be made with the homeowners association because
the easement stops where the plat was setup.
Attorney Peterson explained that she is not sure the City has any good records on when the line
was turned over to the City. The City has a very good argument that they accepted the line
based on the assumption that it was within the easement and the fact that it is now not within
the easement is the developer or the homeowner's association issue. It has existed this was for
approximately 35 years. Attorney Peterson stated that she does not think it would be the City's
financial responsibility to move the sewer line.
Attorney Peterson suggested having the City Clerk look at past minutes for any public
discussion or to contact the homeowners association to see if they have any information.
This will be brought to the next committee for further discussion.
JETTER TRUCK JET RODDER HOSE REPLACEMENT- 51848.00 PLUS SHIPPING FROM COE
EQUIPMENT
The hose that is on the front of the Jetter Truck needs to be replaced. This is a budgeted item.
Motion and second were made by Aldermen West/Pickel to send to Council for consideration.
The motion carried by voice vote and was unanimous.
GASB 43/45 HEALTHCARE ACTURIAL VALUATION
Our last valuation was completed as of 12/31/2010. This valuation is required every three years for
financial statement disclosure purposes. It is referenced in footnote 13 in our FY2012 audit.
This valuation provides the liability for our post-employment health care benefits for all City retirees.
The City provides post-retirement hospital, health, life, and dental coverage in accordance with the
applicable personnel policy or union contract. The amount paid varies per employee depending
whether the employee was union or nonunion, the contract in effect at the date of retirement and
the retiree's length of employment with the City. The retirees are covered under the City's insurance
policies until they reach age 65 and are Medicare eligible.
Mr. Martin completed the last valuation, so Caty Campbell contacted him to see if he would be
interested in contracting with the City again. He responded with the attached proposal. The invoice
for his services for the 2010 study was $3850. As you can see from his proposal, he estimates his fee
to be between $3500 and $4000. This fee will be split between the General Fund Administration
contracted services account and the Water Administration contracted services account based on the
number of employees (approximately $2920 from the General Fund and $1080 from the Water
Fund). It is recommended to contract with Maracon LLC for our post-employment healthcare
actuarial valuation.
Motion and second were made by Aldermen West/Fritz to pay to up $4,000 to Maracon LLC for the
healthcare valuation.
The motion carried by voice vote and was unanimous.
WASTE MANAGEMENT CONTRACT
The City has an agreement with Waste Management to dispose of our solid waste at their
Macomb landfill. Our current three year agreement with them expires on February 28, 2013.
The price per ton of solid waste disposal for this last year of the agreement is $40 per ton. We
have hauled 4250 tons at a cost of $168,500 over the last 12 months.
Over the last several weeks Jim Snider has been in negotiations with representatives of Waste
Management on a contract extension. During this process, research has been conducted on
our cost versus other municipalities that still handle their solid waste disposal. We also looked
at the Peoria County landfill as an alternative since they7 took our solid waste prior to the
current three year agreement with Waste Management. Peoria County landfill rate is $51 per
ton.
Jim Snider was able to negotiate a 14 month contract extension with Waste Management with
no increase in cost. The Knox County landfill could possibly provide us a competitive price to
what we pay Waste Management; however, the 49% increased mileage to that facility would
offset any savings we would garner. The recommendation is for us to accept the contract
extension from Waste Management.
Discussion took place regarding changing the frequency of the trips to the landfill to save
money.
Motion and second were made by Aldermen West/Pickel to approve the contract with Waste
Management at the rate of $40.00 per ton.
The motion carried by voice vote and was unanimous.
2012 WATER/WASTEWATER BONDS
Jim Snider explained that he is very happy to report that the 2012 water wastewater bonds have
been assigned an A+ long term rating by Standard & Poor's (S&P). A+ is at the upper end of the
medium investment category. The outlook given by S&P was stable. This rating is actually a notch
above where Moody's rated the City last year on our TIF bonds.
The higher rating is reflective on several variables, none more important than the competency
shown by our Comptroller, City Treasurer, City Attorney and Engineer. Their respective input during
the hours of correspondence and interviews were rewarded with this higher rating and stable
outlook.
S&P went on to say that the higher rating reflects on the Cit~s stable local economy centered in the
medical and manufacturing industries with close proximity to the larger Peoria economy and the
very strong financial reserves and the low overall debt burden. The City of Canton is fairing the
effects of 2008 credit crises better than other communities. Some cities across the country are even
dealing with the threat of bankruptcy. Scott Stevenson has indicated that he has seen recent
municipal offerings anywhere from AAA to BBB and even some worse than BBB. Quincy is a pretty
good sized community and t was rated in the BBB category within the last year. A+ is a good rating
for a town our size, something we should acknowledge and be proud of.
METER SHOP HEATER PROPOSAL
Two quotes were received for replacing the furnace for the meter shop. The furnace was found to
have a bad burner and a cracked heat exchange leaking Co2 and exhaust gases making it unsafe to
continue to use. Season-All Service Inc gave the low quote for this work. The quote was in the
amount of $1510.00. The quote from G-M Mechanical was $2400.00. The request also includes a
cost to replace a thermostat for $60.00
This will be sent to council with no recommendation.
Alderman Ellis asked if research could be made on higher efficiency heater. Additional
information will be brought back for consideration.
Legal & Ordinance
Alderman Jeff Fritz, Chairman
EMPLOYEE EVALUATIONS
The City passed Ordinance # 961 in January of 1983 regarding employee evaluations. The
language states that evaluations will be done annually and no later than the end of January for
the previous year. The department head should conduct annual reviews or semi annual
reviews as follow up. The request is to modify the language and create a clear definition on
how reviews are conducted. Alderman Pasley explained the schedule should be set and
communicated with the employees.
Alderman Fritz recommends performing the evaluations on the anniversary date within a
certain time frame.
This change will also need to be modified in the personnel policy.
The reason evaluations recently came up was due to the fact that a department head performed an
evaluation for an employee. The employee did not feel it was the appropriate time to have their
evaluation performed.
Community & Industrial Development
Alderman Jeremy Pasley, Chairman
UPDATE FROM MISSY TOWERY SRPED EXECUTIVE DIRECTOR
GENERAL ECONOMIC DEVELOPMENT POINTS
RETAIL/COMMERCIAL/INDUSTRIAL DEVELOPMENT
o Theater Project - Met with developer Kert Huber, provided updates to everyone and a
phone call with former theater owner (Jim Murphy referral).
o SRPED Loan committee met with representatives from Prairie Hills Resource Conservation
and Development
o In-person visit with Lease Administrator from national retailer looking for space in Canton
o Provided information to a different retailer looking for space in Canton
o Phone conversation with person interested in opening a restaurant downtown
BUSINESS DEVEOPMENT, ATTRACTION AND SUPPORT
• Continued conversations with developer interested in purchasing a property in the Canton Rt.
9/Chestnut St. TIF
• Continued to work on economic development marketing piece
Provided assistance for the True Value loan
TOURISM REPORT
o Please see the reverse for a report from Dana Smith.
o Met with an individual to discuss his interest in more tourism signage for Canton that is
provided by IDOT for free
CANTON MAIN STREET
o Assisted with preparations and attended the Old Fashioned Christmas Walk, Friday,
December 7
o Attended CMS Coffee at Crawford's
o Began plans for Glacial Golf fundraiser
o Prepared for and attended CMS Holiday Board Meeting
OTHER
o Attend CACC Coffee and worked with guest speaker Director of Planning and Zoning John
Kunski
o Met with Alderman Schenck to discuss Tourism & Economic Development points in general
o Met with board member to discuss 336
o Was out on Vacation November 15 - 25th
General Marketing & Tourism
• Continued to work with Lelonie Luft, Marketing Director for the Peoria Area Convention
and Visitor's Bureau, to schedule a site visit with CVB staff and their new CEO Don
Welch.
• Reviewed costs and benefits of attending the Illinois Governor's Conference on Tourism
and presented results to Missy Towery.
• Exchanged multiple e-mails with Kelvin Sampson about Canton's presence in the
Lewistown Visitor's Center. Progress on the Center's final design and layout is still in
progress.
• Met with Missy Towery to review 2013 marketing and tourism goals.
• Researched Illinois tourism statistics online at the Illinois Office of Tourism and the
Illinois Department of Commerce and Economic Opportunity.
• Met with Missy Towery and Alderman Eric Schenck to discuss direction and focus of
tourism efforts for Canton.
• Scheduled lunch meeting with Jean Stone, new General Manager at Canton Harvester
Inn, for Thursday, November 29.
Canton Main Street.
• Designed and scheduled print and radio advertising and for the Old Fashioned Christmas
Walk on Friday, December 7.
• Prepared news releases for Old Fashioned Christmas Walk and distributed to news
media.
• Coordinated closure of the inlet parking on the south side Jones Park for Old Fashioned
Christmas Walk with the City and Canton Police Department.
• Attended Art on Main meeting on Tuesday, November 13, and designed sponsorship
packages for the event to solicit financial support.
• Attended Promotion Committee meetings on Tuesday, November 6, and Wednesday,
November 14 to finalize plans for Old Fashioned Christmas Walk.
• Coordinated creation and distribution of iPad raffle tickets, flyers, and POP stands to 46
participating businesses who volunteered to sell tickets prior to the event.
• Coordinated the replacement and pick up of Christmas lights that failed to work when
tested by City personnel.
• Attended Main Street Coffee at Crawford's on Tuesday, November 13.
• Attended Glacial Golf planning meeting on Friday, November 30, at Crawford's Coffee
Corner with Missy Towery, Susan Miller, and interested bar owners.
Scenic Drive
• Closed out financials for the Scenic Drive and reported to the Canton Area Chamber of
Commerce Board on final assessment of the Drive.
Website
• In the month of November, the tourism website had 1,573 page views, with 902 unique
I Ps.
Negotiations, Grievance & Personnel
Alderman Dave Pickel, Chairman
POLICE DEPARTMENT STAFFING
Officer Arnold was hired to replace Officer Butler who took a lateral transfer to Pekin PD in July.
That has put the City one officer down until January 15Y at which time she will be on her own. In
July, Officer Taylor retired and City Council approved a replacement for him. The Fire and
Police Commission exhausted the eligibility list to replace Officer Taylor and had to establish a
new list which will be complete next week and an officer will be hired for the lanuary 6th Police
Academy class. Officer Hitchcock resigned November 30th to also take a lateral transfer to
Pekin PD. The City is now three officers down and will be two officers down on January 15t once
Officer Arnold is on her own.
To complicate matters more, the City has an Officer who is in the process of taking a lateral
transfer to another police department in January or February. This Officer advised Chief Taylor
that he will be taking his polygraph and psychological tests next week. Chief Taylor spoke with
the Chief of that department and he confirmed this information. In another matter, Chief Taylor
has another Officer who may be off work for 12 weeks around the first of the year on medical
leave.
It is the recommendation of Chief Taylor to hire two officers as soon as the new eligibility list
comes out next week. One officer to replace Officer Taylor which has already been approved
and one officer to replace Officer Hitchcock. If both new officers are sent to the January 6tn
Police Academy they will be out on their own the first part of lune 2013. The next Police
Academy class after lanuary 6th is not until April.
The Police Department is budgeted for 24 Officers and that is the number of officers as set by
city ordinance. With this staffing, we are better able to weather the type of staffing issues we
are currently seeing. Unfortunately hiring a Police Officer is quite a lengthy process as
compared to say a public works employee who can be put to work right away.
The Police Department at full strength, 24 officers, operates like this: There are six officers on
15t shift, six officers on 2"d shift, six officers on 3~d shift, three Detectives, one School Resource
Officer (Approximately $45,000 of salary reimbursed by school district), one Deputy Chief, and
the Chief of Police. With this staffing level the department is able to be very proactive,
overtime is kept to a minimum, and morale is held high.
Chief Taylor would like permission from the City Council to replace Officer Hitchcock at
Tuesday's City Council Meeting.
Further discussion took place regarding the upcoming budget process and the difficulties the
City may face in trying to create a budget. One area of great discussion took place regarding
possible revenues that the police department could generate to offset the cost for additional
staffing. This could be discussed during the budget process.
Chief Taylor expressed concerns with the productivity in the department if the Council would
decide to delay the hiring of the second officer.
Alderman Fritz stated that the City might need to have a study on why the department is having
a retention issue. Chief Taylor explained that during exit interviews he has discovered the
number one reason for leaving/transferring is for more money and a larger department.
Motion and second were made by Aldermen Pickel/Fritz to approve the appointment and allow the
police commission to move forward, but approval would be required by the Council.
The motion carried by voice vote and was unanimous
ADJOURNMENT
Motio and sec~id were made by Aldermen West/Pickel to adjourn without the need of
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iana Pavley
City Clerk