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HomeMy WebLinkAbout05-21-2013 Council Meeting Minutes A regular meeting of the Canton City Council was held on May 21, 2013 (6:30PM) in the Council Chambers, The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. STAFF IN ATTENDANCE: Interim City Attorney Bruce Beal, City Clerk Diana Pavley, Mayor Jeffrey Fritz, City Treasurer Luker, Police Chief Dan Taylor, Assistant Chief Tony Plumer, Comptroller Caty Campbell, Public Works Director Bill Terry, City Engineer Plavek, Community Service Director lason Strandberg MEDIA IN ATTENDANCE: Daily Ledger- lournal Star Video Services by Joe Ginger OTHERS IN THE AUDIENCE: Brenda Dilts, Mary Medus, Harry Steck, Jerry Jarnigan, Mark Lenz, Evan Oliff, Todd Leander, Tad Putrich, Barb Putrich, Brenda Rothert, Jim Hocker, Keith Deppermann, Kent McDowell PLEDGE OF ALLEGIANCE OPENED THE MEETING. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X 1 PUBLIC PARTICIPATION BRENDA DILTS Brenda Dilts explained that it's not always easy to take a stand for the environment, but Canton Lake and its watershed is so important to the City of Canton. There is a recent edition to The Daily Ledger edition with a picture of Outward Ingersoll at Youth Acres. One of the comments made from Mrs. Franciskovich was "I still have former students talk about the experiences that were created from the event." CACEI is standing strong in protecting Canton Lake and it's watershed for future generations. CACEI is a group of ten petitioners-made up of supporters that traveled to Springfield for the administrative hearing. CACEI knows the details from sitting through hours of testimony. Brenda invites everyone to a Day in the Country on June 1, 2013 from 1:00-3:OOpm at Joe Coopers farm. Refreshments will be served and a hike will be made to Middle Branch Copperas Creek and the mine site. Even though it's not easy or pleasant sometime people have to stand up for what is right. Brenda asked the Council to vote yes to protect Canton Lake. CONSENT AGENDA Minutes of Council meeting held May 7, 2013 Minutes of Clerical Committee meeting held May 14, 2013 Motion and second were made by Aldermen Pickel/Jim Nelson to accept the minutes, bills and treasurer's report as presented and place them on record. The motion carried by voice vote and was unanimous. 2 COMMITTEE REPORTS: FINANCE- ALDERMAN JUSTIN NELSON, CHAIRMAN CROSSING CENTER SHOPPING CENTER TIF REQUEST/KROGER AND CVS PHARMACY Steve Kline gave an overview of the Crossing Center Shopping Center TIF request. The total amount is not to exceed $1,175,000.00. The project is to consider the offer for Mr. Oliff to purchase the Kroger/CVS Shopping Center on East Chestnut Street. Mr. Oliff intends to incur over 2 million dollars of redevelopment project costs beginning with fa~ade improvements. Improvements will also include signage and parking lot improvements as part of the phase 1 improvements. In return for the improvements and purchasing the property, the developer is asking for TIF incentive in two ways. The first part of the incentive is an $800,000.00 TIF loan from the City that would be to Canton Crossing Inc. and preferred-Eagan 1 LLC. Mr. Eagan is the managing partner for both of these interties. Canton Crossing Inc would be incurring the costs and would be receiving the reimbursements from the City. The 800,000.00 loan would be made to both entities. Both of the entities would then sign a promissory note. A mortgage would be placed on the property and it would be a subordinated lien. The terms of the loan is a zero percent interest loan for 8 years, whereby each year 1/8 of the loan is converted to a grant provided they perform and make the improvements. This would take place until 2021 and at that point it will all be forgiven and converted to a grant. The City would be providing the $800,000.00 upfront. To provide some security for the City, this is being tied to a promissory note. Pursuant to the terms of the incentive- The $800,000.00 is a loan that converts to a grant (1/8th each year) for eight years provided: 1. They would have to pay it back if the developer fails to purchase the property provide verification of the TIF eligible project costs in the amount of $800,000.00. In order for the City to provide these funds, there has to be $800,000.00 in TIF eligible expenses. This would be the property--- the city could then reimburse the $800,000.00. The City does not want Mr. Oliff to sell or transfer the title to the property during the term of the loan. If the property is sold between now and 2021, then a proportionate amount or the remaining balance of the principal . amount of the loan would be repaid to the City. 2. If commercial retail operations comparable to the size and scope and value to what is there now cease for a period of 180 days, then the remaining portion of the loan is to be repaid back to the City. 3. If the equalized assessed value of the property falls below $600,000.00, a portion would have to be repaid to the City. 3 The total projected investment or fair market value of the project after the improvements of the 2.6 million dollars, and subtracting the base estimate which is the value that was on the property with the TIF district was established, the projected increase would be $666,000.00. This increase in the EAV and tracked through the remaining life of TIF 2, under the terms of the reimbursement the City still stands to recover 1.3 million dollars. If the improvements are made, and the assessment stays at or over the $600,000.00 over the life of the TIF district the City's share of the real estate tax increment that the project will generate will get the City back their money. In addition to the $800,000.00 up front you would reimburse 30% of the net real estate tax increment over the remaining life of the TIF district. The net increment is after you pay the proportionate amount that needs to be paid pursuant to the Intergovernmental Agreement with the school district. This part of the increment comes off of the top before any payment is made to the developer. If the developer is successful in securing extended leases from the retail tenants that are in the property now (leases through 1-1-2020) The current leases has two years remaining, but discussion took place about the hopes of being able to secure an additional five year lease on the property. Steve Kline explained that we want to see the retailers stay there. If they stay and the exterior of the building has been improved, and the parking lots and signage improvements are completed, the hope is that it would encourage further interior improvements and cause the retailer to want to stay in the location. In addition to the recapture on the increased real estate tax increment the improvements would cause the stores to generate increased sales. The increased sales would cause the City to receive an increase on the municipal sales tax. If the leases are secured, the agreement says that the City will accelerate the forgiveness of the loan. An example of: two years from now the lease is secured, and the first phase of the improvements is completed, the City would then forgive the note in its entirety and release them from the mortgage. This would release the obligation of the liability/debt for them to the City, however when it converts to a grant, the grant is still conditioned on paragraph E of the agreement. (If the City forgives the loan, releases the mortgage and converts to a grant, they no longer have a debt except that if they should sell the property prior to 2021 part of the $800,000.00 would have to be repaid. If the assessed valuation falls below the $600,000.00 they would have to pay part of it back. If the retailers pulled out, and new tenants could not be secured within 180 days, they would have to pay part of it back. There is a process for them to receive their reimbursements that relates to exhibit 5. The City can't reimbursement any developer for any agreement unless they verify the eligible project cost without receipts, invoices waivers of liens etc. Evan Oliff stated that he is using Leander Construction as a local contractor. Evan was at the site today and discussed the back area of Kroger's. Evan talked with the Snowman's regarding putting some art work along Chestnut Street. Evan said he talked with the Snowman's about coming up with different designs and have the community vote on the best drawing. This would engage the community in the project. Evan explained that given the incentive he has a very strong desire to keep both tenants very happy. Six months is not very long to find new tenants, so he will do everything possible to keep the current tenants happy. The renovation plan will allow the current tenants to be even more successful. 4 Alderman Lovell asked if converting the loan to a grant would impact the employment requirements. Steve Kline explained that they need to verify each year that they are maintaining the jobs, but it is not written into the requirements as far as the repayment of the $800,000.00 loan. To receive the 30% net increment each year as the pay as you go, they are to verify that the retailers have maintained a minimum of 25 full time equivalent employees. This safeguards the pay as you go component. Alderman 1im Nelson asked if we have seen any financials or bank references from the developer. Evan stated that the bank doesn't ever release money unless the work is done. Evan stated that he is more than happy to get bank references. Steve Kline further stated that this is relying on the performance and making the improvements on the building. Evan explained that he doesn't even anticipate a first construction pull for 90 days. Evan said he would estimate 3 construction draws during the project. The project is anticipated to be completed in 4 months with draws every four to five weeks. Bruce Beal asked what is known about the ability of the two companies to pay back any part of the $800,000.00 in the event that any if the triggers take place. Steve Kline said there would be a lien on the property. The money is not paid out unless the improvements are made. The building will still be worth more after the improvements than it is now. Further discussion took place by Alderman Jim Nelson regarding the placement that the City would be in on the lien. He doesn't want to go in a 3~d or 4`h position. Steve Kline suggested performing a lien check prior to issuing the $800,000.00 check. Bruce Beal stated that he would not be concerned if the City was in a 3`d position compared to a 2"d position on the lien if it is the same amount of money. This item will be presented below as an ordinance. PURCHASE OF NEW POLICE VEHICLES Chief Taylor is requesting to replace two marked police vehicles. These new marked police vehicles will take the place of a 2010 Ford Crown Victoria with approximately 73,000 miles and a 2008 Ford Crown Victoria with approximately 90,000 miles. The request is to purchase 2 new 2013 Dodge Police Package Chargers. Arrangements have been made to purchase the two vehicles locally through Hossler Auto Plaza who has matched the state bid price offered by Thomas Dodge. Vehicle 1 is at a cost of $22,552.00 which includes title and registration fees. Art Hossler will give a trade-in value of $4,000.00 for the 2008 Ford Crown Victoria giving us a final cost of $18,552.00 Vehicle 2 is at a cost of $22,552.00 which includes title and registration fees. Hossler Auto Plaza will give a trade-in value of $3400.00 for the 2010 Ford Crown Victoria giving us a final cost of $19,152.00 Chief Taylor is requesting a total of $38,907.00 to purchase the two vehicles. 5 Motion and second were made by Aldermen Justin Nelson/ Ellis to approve the purchase of the two new police vehicles from Art Hossler in the amount of $38,907.00 ROLL CALL Yes No Absent Alderman Pasley X Alderman lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. HIRING OF TWO POLICE OFFICERS Chief Taylor reported: last week he discussed the replacement of two officers that resigned. The department is currently budgeted for 24 officers with the City ordinance. The request is to replace both of the officers and have them attend the police academy on July 8, 2013. Chief Taylor also requested having legal work on a contract for the new officers when they are hired. This would have to be discussed with the union. Your Police Department is currently budgeted for 24 officers and Chief Taylor is requesting Council approval to ask the Canton Fire and Police Commission to hire two Police Officer at this time as the final testing (polygraph, psychological, medical, and background testing) is expected to take 4 or 5 weeks and the next Police Academy is scheduled for July 8th. Chief Taylor would also encourage the city council to consider establishing some type of reimbursement contract for any new police officers that are hired. Chief Taylor has several draft copies from other agencies but would suggest our legal department come up with something that would work for us. Alderman Pasley said he would like to see the request for the hiring of the two officers and the new contract as two separate requests. 6 Motion and second were made by Aldermen Pasley/Justin Nelson have the City negotiate with the police union regarding the agreement for reimbursement of training expenses for new employees that would leave prior to a certain date. Attorney Bruce Beal explained that you would have to negotiate an agreement with the union to provide a contract for reimbursement of training expenses if a new employee would leave the City prior to a certain date. You would authorize the City to enter into negotiations over this issue. Mayor Fritz said you would have negotiations coming up in the next year, and this could be done at that same time. Bruce Beal said there is nothing wrong with doing this now, but you would have to negotiate it with the union first. The union may be willing to include the new employees, you don't know until you ask them. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman lustin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. Alderman Pasley said he is not debating if the city needs two new officers. Pasley would like to see the decision fall back to the new public safety director once hired. Since the city is closer to the public safety director position Mayor Fritz said he would recommend going to one officer. Alderman Justin Nelson said the Public Safety Director will not be here soon enough to make a determination and get an officer into the academy this summer. Mayor Fritz said he believes the city could have a Public Safety Director before the academy is scheduled. Motion and second were made by Aldermen Ellis/Justin Nelson to approve the hiring of two new officers. Chief Dan Taylor explained that he does not believe that having an extra layer of management in place of hiring an additional officer to use on the streets is something that he is in favor of. Further discussion took place about the current number of officers that the city has. Currently the City has 22 officers. Alderman Lovell asked if the City approves the hiring of two new officers and then brings on the Public Safety Director would this create a potential layoff. Chief Taylor explained that the department needs to consider the possibility of retirement, injury or a transfer of officers to a different department. Mayor Fritz said there would not be a potential for a layoff, but the plan of a Public Safety Director would take the place of the current chief so this would create 23 officers on the street. Alderman Justin Nelson said the department has been short an officer for the last three years and this creates a problem with overtime and granting sick time with the lower number of officers. 7 ROLL CALL Yes No Absent Alderman Pasley x Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Aiderman Jim Nelson X Alderman West X Mayor Fritz x Mayor Fritz voted no to break the tie. The motion carried. Motion and second were made by Alderman Ellis/Lovell to approve the hiring of one new police officer. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. SOUTH SIDE SEWAGE PUMPING STATION- ENGINE GENERATOR IMPROVEMENTS CHANGE ORDER # 1 City Engineer Keith Plavec reported that this request would only impact the actual contract time and not a dollar amount. The contractor is Roy Keith Electric. The generator has taken longer to receive than what was originally anticipated. The new substantial completion date would be July 26, 2013 and the new final payment would be August 9, 2013. Motion and second were made by Aldermen Justin Nelson/Pasley to approve the South Side Sewage Pumping Station- Engine Generator Improvements Change Order # 1. 8 ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Aiderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. CITY OF CANTON GA56 45 ACTURIAL VALUATION Comptroller Caty Campbell explained that every three years the City is required to have a GASB 45 valuation completed. The estimation as of April 30, 2013 over the lifespan of the employees we have now would be 7.9 million in estimated healthcare costs. The City is on a pay as you go schedule. The report was completed and is available for review. APPROVAL OF ANNUAL HUMANE SOCIETY PAYMENT IN THE AMOUNT OF 523.838.89 Animal Contro) Facility Shared Costs: Fiscal Year December 1, 2011 thru November 30, 2012 Part 1 figures are based on the percentage of animals brought in by the City of Canton. The percentage of animals is: 55~o for Fulton County and 45% for the City of Canton. 45% are what these figures are based on for payment from the City of Canton. PART 1 Expenses Total FY 11-12 Cost: 45% 1) Property Insurance: 917.00$ 412.65$ 2) General Liability: 1,455.00$ 654.75$ 3) Kennel Assistant's Salary: 17,524.90$ 7,886.20$ (There are 3 Kennel Assistant's) 3a) FICA: 1,086.55$ 488.94$ 3b) I M RF: 3c) Medicare: 254.10$ 114.34$ 3d) Worker's Compensation: 54,92$ 24.71$ 3e) Overtime: 4) Administrator : 3,000.00$ 1,350.00$ (Veterinarian-Doc Hahn) 5) Office Supplies: 2,881.06$ 1,296.47$ 6) Utilities 12,086.84$ 5,439.07$ ~electric, water, gas, garbage, phone) 7) Building Repair & Maint. 340.43$ 153.19$ g) Animal Loss Claims: 9 g) Medications: 4,850.11$ 2,182.54$ 10) Animal Disposal: 1,610.09$ 724.54$ 11) Feed Supplies: 4,717.36$ 2,122.81$ 12) Mowing: 2,197.07$ 988.68$ 13) Snow Removal: 14) Driveway & Parking Lot Maint.: TOTALS: 52,975.43$ 23,838.89$ Part 2 Revenues to be Shared: 1) Dog pick up and pound 5,615.00$ 2,526.75$ fees Total: 2,526.75$ Motion and second were made by Aldermen lustin Nelson/Pickel to approve the payment. ROLL CALL Ves No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson Alderman West X The motion carried. 10 LEGAL & ORDINANCE ALDERMAN CRAIG WEST, CHAIRMAN (absent) SPECIAL EVENT/PERMIT REQUEST FOR RIGHT OF WAY CLOSURE-OPEN AIR MARKET/KIDS FEST A request was submitted for the open air markets and kids fest to be held in Jones Park on June 8, July 13 and August 10, 2013 from 9:OOam-3:OOpm. The request includes use of the CEFCU lot and E Chestnut from Main to ESS, plus incoming land of Chestnut from First Avenue. The kids Fest will be held on Saturday, July 13, 2013 from 10:30-1:OOpm. Use of the CEFCU lot is being requested and Chestnut Street from Main to ESS also incoming lane of Chestnut from first Avenue. The certificate of insurance was submitted and is on file. Motion and second were made by Aldermen Ellis/lustin Nelson to approve the special event. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. SPECIAL EVENT/PERMIT REQUEST FOR RIGHT OF WAY CLOSURE FOR MIGHTY PITS AWARENESS A request was submitted for the second annual pit-bull awareness walk to be held on June 15, 2013 from 10:OOam -4:OOpm. The request for road closure is for the Canton Square, South Main Street and All the way down to East Hickory (White Oaks) The certificate of insurance has not yet been submitted. Motion and second were made by Aldermen lustin Nelson/Pasley to approve the event subject to receipt of the insurance. 11 ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West x The motion carried. GABBY DAYS Public Works Director reported June 22, 23 2013 will be set for Gabby Days. Items remaining after the gabby days will be picked up June 24-28. The following items may not be set out for gabby days. • Tires • Paint • Appliances • Computers • Electronics REQUEST FOR EXTENDED HOURS FOR OUTDOOR LIVE MUSIC BY LIQUOR LICENSE HOLDER (JACK'Sl Attorney Bruce Beal stated that you would have to amend the noise ordinance and the liquor license for the city ordinance if the extended hours for outdoor live music by liquor license holders are considered. Draft copies were prepared by Attorney Beal for review. The recommendation was to send to legal and ordinance to review and discuss. The draft allows music hours be extended from 11pm to midnight on Friday and Saturday nights. The other change in the draft ordinance is the distance where the noise could be heard from 30 feet to 300 feet; however this distance could be reviewed at the legal and ordinance committee. The noise ordinance applies city wide so the 30 feet would still apply for everyone other than the liquor license holder. Motion and second were made by Aldermen Justin Nelson/Ellis to move to the next legal and ordinance committee. The motion carried by voice vote and was unanimous. 12 COMMUNITY & INDUSTRIAL DEVELOPMENT ALDERMAN , CHAIRMAN Alderman Pasley (acting chair) TRUE VALUE GARDEN CENTER IMPROVMENTS BY OTTO BAUM City engineer Keith Plavec stated that the True Value Garden center plans for a garden center with a concrete pad and a retaining wall with a fence is included in the plans. Three bids were received. The bid was divided between the base bid and the alternate bid. Kemper was the low $92,579.84 as the base. The low bid for the alternate bid was Otto Baum in the amount of $171,485.20 from the TIF 1 expense. An agreement with Odd Fellows for the wall would be needed along with a lease agreement. Motion and second were made by Aldermen Ellis/Justin Nelson to approve the bid from Otto Baum. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. 13 NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERMAN JEREMY PASLEY, CHAIRMAN PUBLIC WORKS STAFFING REQUEST Public Works Director Bill Terry is requesting the approval to hire two employees to replace employees that left the departments. One employee would be for the garbage department and one employee would be for the water department. Motion and second were made by Aldermen Pasley/Lovell to approve the hiring of two employees for the public works department. ROLL CALL Yes No Absent Alderman Pasley X Alderman lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. APPROVAL OF AGREEMENT WITH THE CITY OF CANTON AND MAURER AND STUTZ INC FOR TEMPORARY CODE ENFORCEMENT/ANIMAL CONTROL City Engineer Keith Plavec explained that the current code enforcement officer started a leave from his employment for the next 5-6 months. Keith said he was asked to find someone to fill the position. John Kunski knew of an individual with 38 years of experience from his prior employment with the City of Peoria. The individual has 23 years of experience with the animal shelter and 13 years of experience in code enforcement. Keith created an agreement to fill the position on temporary bases for no more than 32 hours per week. The days designated would be Monday-Thursday at a rate of $24.74 per hour. The duration would depend upon the return of the City's current employee. The City would have a contract with Maurer and Stutz for the position. Attorney Bruce Beal said he prepared an agreement to send to the union for review. The agreement that Attorney Beal is drafting states that this is a temporary position that will be subcontracted out on a contractor bases. 14 Motion and second were made by Aldermen Pasley/Pickel to approve the agreement subject to the union's approval. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Neison X Alderman West X The motion carried. ALDERMAN RESIGNATION Mayor leffrey Fritz submitted a letter of resignation for his term as alderman for the City of Canton. Motion and second were made by Aldermen Pasley/Jim Nelson to approve the resignation of Jeffrey Fritz as alderman. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. 15 APPOINTMENT OF COMMUNITY SERVICES DIRECTOR Mayor Fritz explained that at the last meeting there was not a majority of the vote for the appointment of Jason Strandberg as the Community Services Director. Motion and second were made by Aldermen Pasley/Lovell to approve the appointment of Jason Strandberg to the position of temporary community services director. The job description that will be implemented was the one discussed at the last meeting. Alderman Ellis asked how many votes would be required since this is a new appointment. Attorney Bruce Beal requested a five minute recess to review the code. After the five minute recess Attorney Beal stated that after reviewing the Illinois Municipal Code and the City code he didn't find anything that stated you would need anything more than a majority of the vote for the temporary appointment. Alderman Pickel said he asked last week if an ordinance was needed for the new position. Attorney Bruce Beal said that an ordinance is not needed since it is a temporary position. A draft copy of the ordinance is being prepared, so at the end of the 90 day period the ordinance could be presented if the position is to become a permanent position. ROLL CALL Yes No Absent Alderman Pasley X Alderman lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West x The motion carried. COMMUNICATIONS FROM MAYOR FRITZ: FEMA UPDATE Mayor Fritz explained that representatives from FEMA are at the Fulton County Health Department for those affected by the recent flooding. FEMA encourages people to contact them to see if they qualify for assistance. Mayor Fritz said he encourages people to contact 1 800 621 3362 or go online www.fema.~ov for further information. 16 OLD BUSINESS AN ORDINANCE VACATING THE RIGHT OF WAY KNOWN AS MANUFACTURE'S CIRCLE AT THE ENTERPRISE INDUSTRIAL PARK IN THE CITY OF CANTON, FULTON COUNTY, ILLINOIS (2ND READING) Mayor Fritz recommended the item be tabled. AN ORDINANCE AMENDING SECTION 1(DEFINITIONS) OF CHAPTER 11 (LAKE CANTON) OF TITLE 8 (PUBLIC WAYS AND PROPERTY) 2ND READING Motion and second were made by Aldermen Justin Nelson/Ellis to send back to committee for further discussion. Further discussion took place about sending this back to the committee for further discussion. It was determined that this should not be sent back to a committee to be further discussed. Amended Motion and second were made by Ellis/Justin Nelson to resend the original motion. The motion carried. Motion and second were made by Alderman Justin Nelson/Ellis to leave the ordinance as it currently stands. ROLL CALL Yes No Absent Alderman Pasley X Alderman lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X Alderman Pasley The motion carried. 17 NEW BUSINESS AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND THE BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO 66 (i5T READING) Steve Kline explained that when the Canton 2 Route 9 TIF was established and as part of the discussion the City entered into an agreement with the school district. This is a 20% surplus that comes off the top of the increment and is re-distributed. The school district is also to receive a minimum of 10% of the increment including their share of the surplus. Depending on the school aid formula and how the calculation works out for the school, you would be making up the difference that the school is receiving for State aid and this figure changes every year. This calculation would have to be made every year. This was approved for TIF 2 and the area North of Spruce along the North Main section is 100% surplus unless there is a redevelopment agreement. This is the reason for the TIF 2 agreement. The City has agreed to the possibility that the Harvest Inn was not constructed and that property was part of the study area for TIF 2 and it was left in TIF 1 The city agreed to add the hotel property (five parcels) that relates to that site and the increment from the site would be treated the same as in canton TIF 2. This amendment was never completed; however it was intended to be completed after the TIF 2 was established. Superintendent Roy Web reviewed it with his attorney and they replied that they were fine with it. AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON , FULTON COUNTY ILLINOIS AND PREFERRED-EAGAN I LLC & CANTON CROSSING CORPORATION (CANTON CROSSING SHOPPING CENTER PROJECT) #3015 Motion and second were made by Aldermen Ellis/Justin Nelson to suspend the rules for the first reading. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried Motion and second were made by Aldermen Ellis/Pickel to approve the redevelopment agreement with these two entities with a not to exceed construction loan of one million dollars obtained by Preferred 18 Eagan I LLC & Canton Crossing Shopping Center confirmed by a land search prior to distribution of the $800,000.00. ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The motion carried. AN ORDINANCE APPROVING THE AMENDED BUDGET (15T READING) City Treasurer Kathy Luker explained that several changes needed to be made on the original budget ordinance. Payments to the pensions could be made due to the contingency in the original budget. Kathy explained each item and the changes that were made that were displayed in the cover page of the amended budget ordinance. Mayor fritz said a public hearing will be scheduled and a notice published. Attorney Bruce Beal stated that in order to amend the budget the Illinois Municipal Code states you have to do this amended budget the same way as you did the original budget. A 30 day notice before a public hearing is required. EXECUTIVE SESSION Motion and second were made by Aldermen Ellis/Justin Nelson to go into executive session for personnel and grievance. S ILCS 120/2 O(1J and 51LCS 120/2 O(11) ROLL CALL Yes No Absent Alderman Pasley X Alderman Lovell X Alderman Ellis X Alderman Justin X Nelson Alderman Pickel X Alderman Jim Nelson X Alderman West X The moiion carried 19 ADJOURNMENT Motion and second were made by Aldermen Justin Nelson/Ellis to adjourn without any additional information for open session. Diana Pavley, City Clerk Jeffrey A. Fritz, Mayor 20