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HomeMy WebLinkAbout08-19-2014 Council Meeting Minutes City of Canton Council Meeting The Donald Edwards Way (Historic Depot) Canton II 61520 08-19-2014 6:30pm A regular meeting of the Canton City Council was held on August 19, 2014 (6:30pm) in the Council Chambers, The Donald E. Edwards Way-50 North 4th Avenue, Canton, Illinois 61520. STAFF IN ATTENDANCE Mayor Jeffrey Fritz, Attorney Nancy Rabel, City Clerk Diana Pavley-Rock, Treasurer Kathy Luker, Police Chief Kent McDowell, Fire Chief Tom Shubert, Community Service Director Jason Strandberg, City Engineer Keith Plavec, Public Works Director Bill Terry MEDIA IN ATTENDANCE: Daily Ledger OTHERS IN THE AUDIENCE Mike Tucker,Jim Tucker, Mark Lenz, Evan Oliff,Janet Ewing, Lee Puleo VIDEO SERVICES BY JOE GINGER PLEDGE OF ALLEGIANCE OPENED THE MEETING. INVOCATION-Treasurer Kathy Luker PUBLIC PARTICIPATION- ADDITIONS OR CORRECTIONS TO THE AGENDA ROLL CALL Yes No Absent Alderman Jerry Ellis X Aiderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. CONSENT AGENDA 1. APPROVAL OF THE COUNCIL MEETING MINUTES HELD AUGUST 5, 2014. 2. POLICE REPORT 3. FIRE REPORT Motion and second were made by Aldermen Jim Nelson/Justin Nelson to approve the consent agenda. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Aiderman Dave Pickel X Alderman Jim Nelson X The motion carried. COMMITTEE REPORTS: PUBLIC SAFETY&TRAFFIC ALDERMAN JIM NELSON, CHAIRMAN BUILDING SITE AND OPERATIONAL PLANS AND DESIGN GUIDELINES ORDINANCE REVIEW Alderman Jim Nelson expiained that he requested this item be placed on the agenda so the Council could begin reviewing some of the current ordinances in the code book. The City could begin reviewing the ordinances to see if we could begin streamlining some of our current ordinance requirements. Consideration could be taken about eliminating one of our committees. Community Service Director Jason Strandberg explained that one of the biggest complaints that he receives from people is their concerns with the City's code being too restrictive. Jason further explained that the rules- many pertaining to elevators, sprinklers, ADA, etc. are all part of the state law. One of the sections in the code that Jason would like to have everyone review is the building site and operational plans and design guidelines. The items that fall under this section of the code currently has to go before the planning committee. Once the item is recommended by the committee , it will then be placed on an upcoming Council agenda. This process adds unnecessary delays. Some items could be reviewed by our planning and zoning director-which will then see if the request meets the guidelines established in the code. The committee would only review requests that would require a change in the ordinance. If the committee approves the change, it would then be sent to the Council for final approval. There has been some recent discussion regarding a section of the code under the building, site and operational plans and design guidelines pertaining to metal siding. Currently the code prohibits metal or steel siding within the City limits. This section could be reviewed to see if it should be amended to allow metal siding in certain areas rather than prohibiting the metal siding in the entire City. The planning and zoning committee is also reviewing this same information and additional information will be brought back for further discussion. DISCUSSION OF ELECTION TO BE HELD APRIL 7, 2015 AND THE PETITION RELEASE DATE. Petitions will be available in the City Clerk's office for the position of Aldermen for the April 2015 elections on August 26, 2014. STREETS AND GARBAGE ALDERMAN DAVE PICKEL, CHAIRMAN SEAL COAT BID RESULTS A bid opening was held on August 18, 2014 at City Hall for the seal coat project. Following are the bid results. Bidder: Illinois Valley Paving Co Total Bid: $261,825.08 Bidder: IRC, Inc. Total Bid: $268,725.00 The engineer's estimate on the project was in the amount of$272,451.50. This project is grouped together with the Park District,the City,the Wastewater Treatment Plant and the Cemetery- split as follows: City of Canton $33,734.98. Cemetery $9,094.40 WWTP $30,640.89 Park District Remainder The City and the cemetery portion would be paid from MFT funds. Motion and second were made by Aldermen Pickel/Jim Nelson to approve the low bid from Illinois Valley Paving Co in the amount of$261,825.08. ROLL CALL Yes No Absent Alderman Jerry Eliis X Alderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. SIDEWALK IMPROVEMENT PROGRAM City Engineer Keith Plavec explained that the City has been in the process of making improvements to sidewalks by utilizing funds designated from the video poker funds. The City has been working on South Main most recently. The main focus has been in areas around the schools, assisted living facilities, and other areas where complaints have been received. The City looked at installing a sidewalk along the south side of Myrtle Street from 15th Avenue to 16th Avenue. The anticipated cost for the project is $25,000.00. If the City were to complete this work with their own crews the material cost would be around $4,000.00. The work would need to be completed next year and the City could hire some part-time help to complete the work. The part-time help would add to the cost, but it would still be less than the original anticipated cost of$25,000.00 (with contractors doing the work) The City could then utilize the contractors for the areas within the TIF area using TIF bond dollars. One of the biggest challenges that the City has with getting local contractors to perform the work is following the regulations in the prevailing wage act. The bookkeeping requirements for the prevailing wage regulations can be overwhelming for many local contractors. The City needs to determine the best way to utilize our funds to complete as many sidewalks as possible. It was suggested to have the City crew do the work for a lower overall cost and possibly expand the area's where sidewalks will be installed. Using the City crew would be a lower cost that would allow the City to use the funds to do more sidewalks. Alderman Pickel and Mayor Fritz thanked Public Works Director Bill Terry and the staff for the great work they did on the sidewalks that were just completed along Main Street. LAKE, BUILDINGS &GROUNDS ALDERMAN JOHN LOVELL, CHAIRMAN DISCUSS AND CONSIDER CHANGES TO THE TERMS OF THE CANTON LAKE LOT LEASE FOR 24724 EAST LAKEVIEW DRIVE- LOT 3 OF LAKEVIEW ADDITION TO CANTON LAKE BETWEEN THE CITY OF CANTON AND JANET AND ANDREW EWING. Attorney Rabel explained that she has not been able to change the terms of the lease due to conversations with the bank, underwriters and HUD. She continues to work with the bank on funding terms to see what would be acceptable. One of the issues trying to be worked out is the calculation of rent. The City could come up with terms and send to the underwrites to see if HUD would approve the lease. If HUD would approve the terms of the lease it would be brought forward to the Council for final determination. Janet Ewing explained that she is trying to determine what the HUD assessed value is. She called the underwriter directly and the underwriter said he didn't know what the HUD assessed value was either. Alderman Putrich said at this time the Council's hands are tied until the underwriters and HUD provide the information needed for the lease to conform with HUD's guidelines. This will be brought back to the next council meeting for further discussion. PUBLIC WORKS, WATER&SEWER ALDERMAN GERALD ELLIS, CHAIRMAN FINANCE ALDERMAN JUSTIN NELSON BILLS The total amount of bills to be paid is $678,588.45 Included in the bill list are: Payment to the Spoon River Partnership for Economic Development in the amount of $14,050.00 paid from the hotel/motel fund along with another$10,000.00 from the TIF 1 fund. The City paid the first installment to the auditors in the amount of$7,500.00. Motion and second were made by Aldermen Justin Nelson/Ellis to approve the bill list. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin x Nelson Alderman John lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. TREASURER'S REPORT Page one of the treasurer's report reflects the cash inflow and outflow. The total amount for the comingled cash is $263,550.80. The total available cash is $946,476.57. The restricted cash is in the amount of$225,244.49. Page two of the treasurer's report is the investments. During the month of July the City borrowed from the garbage depreciation account $50,000.00, the fire department depreciation account$65,000.00. A couple of the accounts were closed. Page three reflects the budget comparison report. The revenues for the general fund during a normal month is 8.3%. There was a 10% revenue income during this month. This is due to property taxes being received and income taxes in the amount of$222,000.00. The normal amount received during the month is between $60-70,000.00, so this was a large increase. There was a large expense to the Spoon River Partnership in the amount of$40,000.00 and fireworks paid out during the month of July. The water and sewer fund for the month had 9.3% in revenue-YTD was 23.9%--- due to the prison water payments. The expenses were all under budget expect water administration. The tax levy shows that during the month of July we received 15%of the tax levy money for our governmental fund. The City also received 15%for TIF II. The City did not receive any money for the TIF I due to the Cook Medical correction. The only payment paid out of the TIF II fund was$9309.89 for the Renaissance right of way. The City has three DECA loans. One of those are three months behind. The City had a loan with Ipava State Bank in the amount of$251,045.02 that has since been paid off. Further discussion took place regarding the DECA loan that is three months behind. Treasurer Luker will get the maturity date/extension date of the loan that is behind and provide the information to the Aldermen. Motion and second were made by Aldermen Justin Nelson/Ellis to approve the Treasurer's report. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. LEGAL& ORDINANCE ALDERMAN CRAIG WEST DISCUSS. CONSIDER AND VOTE ON: A RESOLUTION APPROVING A SUBORDINATION AGREEMENT AND AMENDING THE MORTGAGE BETWEEN THE CITY OF CANTON AND PREFERRED EAGEN I. LLC. Mark Lenz and Evan Oliff(Attorney and Developer with Preferred Eagen I LLC) explained that a redevelopment agreement was approved last year in the amount of$800,000.00. The request is now to obtain permanent long term financing and additional funds from the bank. The request being brought forward now is to approve the subordination of the mortgage against the property. Evan Oliff explained that both CVS and Kroger has renewed their lease agreement. Alderman Lovell asked if the City is taking a risk by their refinancing and what the benefit would be to the City to approve the subordination agreement. Evan said the he was unable to get an original loan with the original owner-- he was unable to get an acquisition loan because of the leases and the condition of the shopping center. He took a risk by taking back the mortgage from the original owner. Now that the loan is due, he decided to go to a local bank to get long term financing. The redevelopment agreement was entered into by the City of Canton and the investment was made by tax increment financing to keep the shopping center opened and to be a benefit to the citizens. This would be a benefit to the residence in that part of the community. This would also create an increase in property taxes. In the redevelopment agreement there is a series of requirements that must be met. Evan did what he was suppose to do. He acquired the property, obtained lease agreements from CVS and Kroger. Evan also created improvements to the shopping center including an extra feature with the mural on the side of the building. The City would get increased revenue in sales tax and property taxes over time that would be an investment to the community. The bank is willing to give additional money to Preferred Eagen to do additional improvements---that being a new roof on the building. While the refinancing of the loan is being processed by the bank, they thought it would be a good time to get additional funds to be able to put a new roof on the building. Evan explained that when he originally started the project a year ago, he had a vision of what the completed project would look like. He decided at that time to do more esthetic improvements that in turn cost more money than what was originally planned. Evan wants to obtain the additional funds to put the new roof on the shopping center so two years from now the tenants will renew their lease. Evan is concerned that if he does not put a new roof on the building the tenants might not renew their lease and they will leave. They are having roof issues now and wants to fix the problem. Evan said happy tenants tend to stay. Evan further explained that the interest rate with the local lender would be much lower than with the current lender that he has today. The interest rate is currently three times as much as what it would be with the local lender. The property has been re-appraised at substantially more than the requested amount. Evan said he would not default on a loan where he has so much equity built up in a shopping center. Under the current agreement the owners have to own the shopping center for at least 8 years. Evan said he didn't do the work just to think he was going to go sell the shopping center, but he is rather in this for the long haul. Further discussion took place about the age of the roof. Mr. Oliff explained that the roof is approximately 20 years old and needs to be replaced. He thinks they probably left the old roof on the building when they put the roof on 20 years ago. There comes a point where there becomes too much weight on the building and could cause additional problems. Alderman Justin Nelson asked if he could see a breakdown on the work that has been performed on the building to date. Alderman Justin Nelson explained that the property tax revenue increase would not be seen by the City for two more years. There has also not been any increase in jobs after the construction phase. Kroger has not seen a substantial increase in business that would create the need of additional jobs due to the exterior improvements made to the building. Attorney Rabel explained that she received information from the Steve Kline (TIF Administrator) that the information they received for the TIF redevelopment agreement requirements did not meet the required guidelines. The documentation provided was not sufficient to satisfy the requirements in the redevelopment agreement. Mr. Oliff explained that he would be resubmitting the documentation. Alderman Jim Nelson explained that the appraisal was 1.85 million dollars. Mr. Oliff is asking for$1,052,000.00. The bank is asking for security in the $1,052,000.00 rather than staying with the $840,000.00 security. There would be between a 45-55% equity (evel in the building. Alderman Jim Nelson said he doesn't understand why the bank would need the additional amount for security, unless it would be for their safety and the shareholders safety. The City also has a fiduciary responsibility for our tax payers within the City of Canton. The City did support the redevelopment agreement with a $800,000.00 commitment upfront. Alderman Jim Nelson said he has bought buildings before and he finds it incredibly difficult to believe that he did not know what the roof looked like before he purchased the building. This is not his responsibility as an Alderman. He has a problem to increase the subordination because now he realizes that he needs a new roof, when that should have been one of the first things that he checked. The higher interest rate that Mr. Oliff is paying is on their side, not the responsibility of the City. Alderman Jim Nelson further explained that the City has gone far above any other TIF obligation with the Canton Crossing redevelopment agreement. Alderman Pickel explained that he spoke with the bank and they were confident in the loan. Alderman Pickel said that the City is not out any more money with this request, were just subordinating the loan from the bank. He understands that if he would default on the loan,the bank would get their money before the City would get their money. Alderman Pickel said he believes if Kroger's would decide to leave there would be more of a chance that a new grocery. store would come into the building if there was not a leaking roof. Alderman Pickel said he would vote in favor of the request. Alderman Ellis agreed that he would also support the request. Alderman John Lovell asked Mr. Oliff if the City did not approve his request if he would still go ahead and put a new roof on the building. Mr. Oliff said he would have to make that determination. Mr. Oliff said the lender would prefer they put on a new roof. It's always better to have a building that does not leak. Alderman Jim Nelson asked why they spent money on the mural instead of using that money to go towards a new roof. Mr. Oliff said they paid $20,000.00 for the mural. Mr. Oliff further explained that was money very worth spent. Alderwoman Hale said she went into Kroger's and spoke with the assistant manager about the roof. The assistant manager did not know there was a leak in the roof. She said she does not understand why the assistant manager would not know if the roof was so bad. Motion and second were made by Aldermen Ellis/Pickel to approve the resolution and place it on file. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich Abstain Alderman Dave Pickel X Alderman Jim Nelson X The motion failed. After the vote was taken, Evan Oliff asked if he could have three minutes of the Councils time to make a statement. Mr. Oliff said, "I might be doing some damage here, but I wanted to let everyone know that I was diagnosed with cancer in January. Tomorrow he will have his 9th four hour cancer treatment. For the past nine months, I dedicated my time to the City of Canton to beautify that shopping center. Evan said "I want to let you know that if this is the respect that I get, because I want to improve that shopping center for those two tenants. I spent many hours with my wife asking why I am focusing on this, when you should be focusing on your health. I'm not asking you for any money- all we are asking you for was the subordination so we could put a new roof on the building. If that's what it is, I'm going to walk out of here and I won't see you for a while. I hope I have the ability to be living in a year and half because of the aggressive cancer to see you----good day." Mark Lenz and Evan Oliff left the meeting. DISCU55. CONSIDER AND VOTE ON: ON ORDINANCE GRANTING A SPECIAL USE/HOME OCCUPATION PERMIT TO ALLOW A CLOCK SERVICE/REPAIR BUSINESS AT 429 WEST CHESTNUT. CANTON ILLINOIS CURRENTLY ZONED R-3 (1ST READING) A request was submitted by Michael Tucker for a special use/home occupation permit to allow a clock service/repair business at 429 West Chestnut Street in Canton. The request was submitted and reviewed by the joint planning and zoning committee. It was the recommendation of the committee to send to Council for approval. This is the first reading of the ordinance and will be brought back to the next Council meeting for a second reading. DISCUSS. CONSIDER AND VOTE ON: ON ORDINANCE AUTHORIZING LEASES OF MUNICIPALLY OWNED REAL PROPERTIES. (1ST READING) #3073 The lease amendment is the result of a property dispute between the lease holders at lot 21 and lot 22. A topographic survey was completed to locate existing buildings with respect to the original property lines. Meetings were held with the two lease holders and lot lines were adjusted to allow buildings to be located on the intended lots. The existing recorded subdivision was re-subdivided and is being filed at the courthouse. A lease amendment was approved by the City last year and is being amended per the new property lines for lot 22. The re-subdivision impacted lots 20 and 21. The leases are being amended to reflect the new boundaries. Motion and second were made by Aldermen West/Putrich to suspend the rules for a second reading. ROLL CALL Ves No Absent Aiderman Jerry Ellis X Alderman Justin X Nelson Aiderman lohn lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson x The motion carried. Motion and second were made by Aldermen West/Putrich to approve the ordinance and place it on file. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John Loveli X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. DISCUSS, CONSIDER AND VOTE ON: A RESOLUTION APROVING A PRE-ANNEXATION AGREEMENT BETWEEN THE CITY OF CANTON AND DOUGLAS AND TARA SHORE LOCATED AT 24668 EAST BARKER DRIVE CANTON ILLINOIS. #4078 This is property that recently was sold. The property was out of town, but they were already receiving City water. This request is to simply do the pre-annexation on the property that was not previously done. Motion and second were made by Aldermen West/Justin Nelson to approve the resolution and place it on file. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. DISCUSS, CONSIDER AND VOTE ON PAYMENT OF PROPERTY TAXES FOR LOT 2 OF NORTHSHORE ADDITION. The City is trying to record the final plat for North-Shore Addition but discovered that the taxes for Lot 2 has not been paid for several years. It was also discovered that the FY 14/15 lease in the amount of$175.00 has not been paid. There is an outstanding balance on the water bill in the amount of$52.16. The last water bill to be paid in full was in February 2014. The recommendation is to have the City pay the back taxes on Lot 2 so the final plat can be recorded at the County. The City could then begin the process of revoking the lake lot lease for lot 2. The total amount of taxes not paid are $912.69. The person that actually has the lease is out of state and is sub-leasing the property to a family member. (This is not legal under the terms of the lease) Attorney Rabel explained that the taxes each year are not paid, but then later redeemed. The lease was not ever changed to the family members name that is sub-leasing the property. The plot could not be filed with the County until the back taxes are paid. Community Service Director Jason Strandberg said that the family member is not even living at the property, but just comes to the house on occasion. All phone calls to the lease holder and the sub-lease holder have not been successful. Motion and second were made by Aldermen Pickel/Hale to pay the back taxes and to direct the City Attorney to begin the process to revoke the lease. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John Lovell X Aiderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson x The motion carried. COMMUNITY& INDUSTRIAL DEVELOPMENT ALDERMAN TAD PUTRICH DISCUSS. CONSIDER AND VOTE ON: A RESOLUTION APPROVING A TEMPORARY CLOSURE OF A STATE MAINTAINED ROADWAY FOR A PUBLIC EVENT (HOMECOMING PARADE) #4079 The City received a request for the Homecoming Parade to be held on Friday, October 3, 2014 between 3:30pm and 4:30pm. Temporary closure will be requested for Illinois Route 9/78, a state highway in the City at the intersection of East Locust Street and North First Avenue. Motion and second were made by Aldermen Putrich/Pickel to approve the resolution and place it on file. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin x Nelson Alderman John lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. DISCUSS. CONSIDER AND VOTE ON A SPECIAL EVENT REQUEST FOR A BLOCK PARTY ON VAN BUREN STREET. A request was submitted for a block party on Van Buren Street behind Sunset to be held on August 29, 2014 from S:OOpm to 8:OOpm for St. Judes. The request includes a road closure at Van Buren from the back of the nursing home to Walnut Street and Van Buren along with the City parking lot. Motion and second were made by Aldermen Putrich/West to approve the request. ROLL CALL Yes No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERWOMAN HALE COMMUNICATIONS FROM MAYOR JEFFREY FRITZ AUGUST BRIGHT SPOT AWARD The August Bright Spot award goes to Marcia Cardosi of 111 West Locust, at the corner of Locust and Avenue A. Marcia has created beautiful gardens in the front and back of her classic brick house by blending a lovely mix of climbing vines, perennials, grasses, and shrubs, and accenting with bird baths and bird houses. GAS IEAK AND POWER OUTAGE Mayor Fritz explained that the City experienced a gas leak and a power outage (unrelated events) yesterday. Mayor Fritz thanked the City staff,the citizens, Community Service Director Jason Strandberg, Fire Chief Shubert, Chief McDowell and Public Works Director Bill Terry, WWTP Superintendent Joe Carruthers and ESDA for their work during the road closure and evacuation of the homes during the gas leak. OLD BUSINESS AN ORDINANCE APPROVING AND AUTHORIZING THE FIRST AMENDMENT TO A REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CANTON AND JERRY JARNAGIN, INDIVIDUALLY AND AS TRUSTEE FOR CHESTNUT RENTALS LAND TRUST. (2ND READING) Motion and second were made by Aldermen West/Pickel to approve the ordinance and place it on record. #3074 ROLL CALL Ves No Absent Alderman Jerry Ellis X Alderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich Abstain Alderman Dave Pickel X Alderman Jim Nelson x The motion carried. NEW BUSINESS ADJOURNMENT Motion and second were made by Aldermen Justin Nelson/Hale to adjourn into executive session for the purpose of: Pending Litigation SiIcs120/2 C 11 ROLL CALL Yes No Absent Alderman Jerry Ellis x Alderman Justin X Nelson Alderman John Lovell X Alderwoman Angela X Hale Alderman Craig West X Alderman Tad Putrich X Alderman Dave Pickel X Alderman Jim Nelson X The motion carried. Diana Pav ey-Roc , City C r Jeffrey A. Fritz, Mayor