The Meeting Began with the Pledge of Allegiance, Followed with Prayer Given by City Clerk

The Canton City Council met Tuesday, April 15, 2008 at 6:30 p.m. in the Council Chambers, 50 North 4th Avenue, Canton, Illinois for their regular meeting.

The meeting began with the Pledge of Allegiance, followed with prayer given by City Clerk Nancy Whites.

Present – Mayor Rodney W. Heinze, City Clerk Nancy Whites, City Treasurer Kathy Luker, City Attorney Chrissie Peterson, Police Chief Jeffrey Fritz, Fire Chief Bonnie Cremer, Public Works Director Cliff O’Brien, Wastewater Treatment Plant Supt. Joe Carruthers, Water Treatment Plant Supt. Greg Pollitt, SRPED Economic Director Mark Rothert, Video Services by Joe Ginger. In the audience was Brenda Rothert, Rev. David Utt, George Hall, Lyle Hebb, news media from Daily Ledger – John Froehling, WBYS - Mark Bixler, The Democrat – Denise Bankes.

Mayor Rodney W. Heinze called the meeting to order at 6:30 p.m. Alderman answering roll call – Eric Schenck, Joe Berardi, Larry Sarff, Craig West, David Nidiffer, Kevin Meade, Jason Strandberg, Sonya Lewis. Alderman absent was none.

MINUTES OF COUNCIL MEETING HELD ON APRIL 1, 2008. Alderman Sarff made the motion to accept the minutes as presented. Was duly seconded by Alderman West. The motion carried by voice vote, and was unanimous.

MINUTES OF APRIL 8, 2008 CLERICAL COMMITTEE MEETING. Alderman West made the motion to accept the minutes as presented. Was duly seconded by Alderman Nidiffer. The motion carried by voice vote, and was unanimous.

BILLS. Alderman Meade made the motion to pay all bills properly presented. Was duly seconded by Alderman West. Roll call. Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Schenck. NAYS – Alderman Berardi. 7 AYES, 1 NAY, 0 ABSENT. Motion carried.

TREASURER’S REPORT. City Treasurer Kathy Luker mentioned the City is in to seven months of the fiscal year. Later on in the meeting she will be asking to eliminate the deficit in the former Health Fund with HCH. Alderman West made the motion to accept the Treasurer’s Report. Was duly seconded by Alderman Sarff. The motion carried by voice vote, and was unanimous.

BUDGET REPORT. Alderman West made the motion to accept the Budget Report. Was duly seconded by Alderman Sarff. The motion carried by voice vote, and was unanimous.

COMMITTEE REPORTS:

Finance.

Council Action

Monthly IT Service Saver from Timbuk Tech. Alderman Meade made the motion to accept the maintenance agreement of $1,500 per month. Was duly seconded by Alderman Sarff. Discussion. Alderman Sarff mentioned he does not think everyone should have control of the security by having access. Alderman Berardi felt that some security is beyond our control in some cases. Alderman Sarff felt this issue should go to the Public Works Committee. Aldermen Meade and Alderman West who made the motion have agreed to take out the remote access. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Payment #2 from Laverdiere Construction for Avenue C Storm Sewer $119,309.67. Alderman Meade made the motion for payment #2 from Laverdiere Construction for Avenue C Storm Sewer in the amount of $119,309.67. Was duly seconded by Alderman Strandberg. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Leander Construction Payment #2 Water Treatment Plant Improvement/Finished Water Storage Facility $44,649.00. Alderman Meade made the motion for payment #2 from Leander Construction for Water Treatment Plant Improvement/Finished Water Storage Facility $44,649.00. Was duly seconded by Alderman Strandberg. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Bid results City of Canton Proposed 24” Raw Water Transmission Main. Alderman Meade mentioned that 10 bids were received and the low bidder was a million dollars under the engineer’s estimate. Alderman Meade made the motion to accept Reynolds Inc from Orleans, Indiana in the amount of $5,377,582.51. Was duly seconded by Alderman Sarff. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Alternate Bonds. Alderman Meade mentioned that committee had decided to not seek the $9.5 million in bonds. The City will wait to see when the project is done if the need is there.

Mower for Building & Grounds. Alderman Meade made the motion to accept Tract Equipment Inc in the amount of $5,062.50. Was duly seconded by Alderman Nidiffer. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Transfer of $533,497.57 from General Fund to Health Care Fund. Alderman Meade made the motion to allow City Treasurer Kathy Luker to transfer $533,497.57 from the General Fund to the Health Care Fund. Was duly seconded by Alderman West. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidifffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Transfer of $390,000 from Health Care to Working Cash Fund. Alderman Meade made the motion to allow City Treasurer Kathy Luker to transfer $390,000 from Health Care Fund to Working Cash Fund. Was duly seconded by Alderman Lewis. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Health Insurance Committee received from Rick Semonis. Alderman Meade made the motion to approve the fee from Rick Semonis in the amount of $1500 for his services to discuss with Health Alliance wanting to raise our cost. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Hinshaw & Culbertson LLP paid out Bonding monies not General Fund 2007-2008. Alderman Meade made the motion to allow City Treasurer Kathy Luker to transfer funds in the amount of $26,485.79 to Hinshaw & Culbertson LLP that was paid from the Bonding funds in 2007-2008 and reimburse the General Fund. Was duly seconded by Alderman Sarff. Discussion. Alderman Berardi questioned the fact of borrowing for 20 years. Can’t see any business taking funds from TORT, and this situation is like that. City Treasurer Kathy Luker said that in a way it does come out of the TORT as all funds are in one pie. These bills Kathy said are Bond eligible according to Chapman & Cutler. Anything above 105% would require a truth in taxation hearing. Roll call. AYES – None. NAYS – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. 0 AYES, 8 NAYS, 0 ABSENT. Motion defeated.

TIF Bills Vandewalle & Associates $56,789.70 & Environmental Operation Inc. $2,759.80 reference paid General Fund 2007-2008. Alderman Meade made the motion to pay TIF bills from Vandewalle & Associates in the amount of $56,789.70 & Environmental Operation Inc. $2759.80. Was duly seconded by Alderman Schenck. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

IH Sinking Fund. Alderman Meade made the motion to invest $500,000 in a Certificate of Deposit called the IH Sinking Fund for 18 months at a rate of 3.531% at Ipava State Bank. Was duly seconded by Alderman Schenck. Discussion. Alderman Meade said that City Treasurer Kathy Luker had received 6 quotes and Ipava State Bank was the highest percentage paid. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Legal & Ordinance.

Council Action

Ordinance for having a city auction and date. Public Works Director Cliff O’Brien mentioned that Auctioneer Curtis Gorsuch will work in another auction with the city’s and the auction will be held sometime in May. Alderman West made a motion to have an ordinance drafted for the City of Canton to hold a auction of unwanted items no longer being used. Was duly seconded by Alderman Sarff. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Community & Industrial Development.

Council Action

Lot #13 of Industrial Park. Alderman Nidiffer made the motion go out for bids and include in the proposal, the plan use of the lot. Was duly seconded by Alderman Meade. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried.

Negotiations, Grievance & Personnel.

Council Action

None.

Informational. Alderman Sarff mentioned the following executive session for negotiations with Fire Department and Public Works. They are –

May 6 Fire Department and Public Works at the Council meeting

April 17 Fire Contract 6:00 p.m. at the Fire Department

April 25 Fire Contract 9:30 a.m. Bruce Beal’s Office

May 19 Fire Contract 6:00 p.m. Fire Department

May 22 Fire Contract 9:00 a.m. Bruce Beal’s office

COMMUNICATIONS FROM MAYOR HEINZE.

Good News – Mayor Heinze said he had none to report but knows there is a lot out there.

Mayor Appointment – Alderman Sarff made the motion for the appointment of Chad Mayall for a three year term on the Fire Pension Board be confirmed. Was duly seconded by Alderman West. The motion carried by voice vote, and was unanimous.

IH-TIF fund.

Executive Director of SRPED remarked that the Budget Matrix shows pay-off of the IH TIF Fund liabilities as they are today and over the years. Anticipated revenue sources from TIF increment are the main sources of funding to pay down the liabilities. The budget covers the life of the IH TIF which ends on December 31, 2007.

The Addition of an anticipated liability starting in the fiscal year ending in 2010 (May 1, 2009 – April 30, 2010). This added line item is for “debt service” for a bond or debt to be issued for future infrastructure costs at the former IH Site and downtown. Even with this new bond/debt, the City can effectively manage its liabilities with the IH TIF fund through consistent growth and increases in the IH TIF increment that goes to the City.

This budget is an estimate and will most definitely change over the years. It was created very conservatively. For example, the revenue estimates do not take into account increases in value to properties over time, which would in turn increase the increment to the City.

Mark Rothert said he was just guessing when he put the names of Vandewalle & Associates, Bell, Boyd & Lloyd, and Environmental in the budget for another 3 years as we don’t know how long we will be needing them. The goal is to get more increment growth into the TIF Services District. The key for this whole budget is to work as we have annual projects valued at $200,000. Which is the asset value, until the life of the TIF. I wanted to give you the prospect of how we could pay off the liability.

OLD BUSINESS:

ORDINANCE – CREATING TITLE 5, CHAPTER 15 (FIREWORKS USE ACT). Second reading, read by title. Alderman West made the motion the ordinance be placed on its passage. Was duly seconded by Alderman Lewis. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. Nays – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried. Ordinance being #1926.

ORDINANCE – TRANSFER OF FUNDS FROM THE WORKING CASH FUND TO THE GENERAL FUND. Second reading, read by title. Alderman Meade made the motion the ordinance be placed on its passage. Was duly seconded by Alderman West. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried. Ordinance being 1927.

ORDINANCE – ADOPTING THE BUDGET FOR FISCAL YEAR BEGINNING MAY 1, 2008 AND ENDING APRIL 30, 2009. Second reading, read by title. Alderman Meade made the motion the ordinance be placed on its passage. Was duly seconded by Alderman Schenck. Discussion. Alderman Strandberg made a motion to amend the budget by taking out the city administrator position. Was duly seconded by Alderman Lewis. Discussion. Jason said he supports professional management for the City. The only person who said we need a city administrator is Alderman Berardi. We need to open up for discussion as no job description has been written. Alderman Strandberg complimented City Treasurer Kathy Luker for the impressive job on the Budget an also Alderman Meade. Roll call for the amendment. AYES – AldermenWest, Nidiffer, Strandberg, Lewis. NAYS – Aldermen Schenck, Berardi, Sarff, Meade. 4 AYES, 4 NAYS, 0 ABSENT. Mayor Heinze voted AYE. Motion carried.

Roll call on the motion to place the ordinance on its passage with the removal of City Administrator Position from the Budget. AYES – Aldermen Schenck, Sarff, West, Nidiffer, Meade, Strandberg, Lewis. NAYS – Alderman Berardi. 7 AYES, 1 NAY, 0 ABSENT. Ordinance being 1928.

ORDINANCE – ADOPTING THE AMENDED BUDGET FOR THE FISCAL YEAR BEGINNING MAY 1, 2007 AND ENDING APRIL 30, 2008. First reading, read by title. Alderman Meade made the motion to place the ordinance on its passage. Was duly seconded by Alderman Strandberg. Discussion. Alderman Meade said one item was removed from the budget and that was one police car for next year’s budget to this fiscal year’s budget. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried. Ordinance being #1929.

NEW BUSINESS:

RESOLUTION – APPROVING A PRE-ANNEXATION AGREEMENT BETWEEN THE CITY OF CANTON & ROBERT AND LISA KOELLING. First reading, read by title. Alderman West made the motion to adopt the resolution. Was duly seconded by Alderman Strandberg. Roll call. AYES – Aldermen Schenck, Berardi, Sarff, West, Nidiffer, Strandberg, Lewis. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Motion carried. Resolution being #3585.

RESOLUTION – APPROVING A PRE-ANNEXATION AGREEMENT BETWEEN THE CITY OF CANTON AND HOWARD & ALICE MCADAMS. First reading, read by title. Alderman Strandberg made the motion to adopt the resolution. Was duly seconded by Alderman West. Roll call. AYES – Aldermen Lewis, Strandberg, Meade, Nidiffer, West, Sarff, Berardi, Schenck. NAYS – None. 8 AYES, 0 NAYS, 0 ABSENT. Resolution being #3586.

ORDINANCE – AMENDING TITLE 8, SECTION 1 OF THE MUNICIPAL COSE RELATING TO (GARBAGE DISPOSAL). First reading, read by title.

ORDINANCE – VACATING AN ALLEY RUNNING NORTH AND SOUTH ALONGSIDE 8TH AVENUE, BETWEEN ASH STREET AND SPRUCE STREET (NAZARENE CHURCH REQUEST). First reading, read by title. Alderman Strandberg mentioned that the title will be changed for the next reading of the Ordinance to running east and west.

ADJOURN

There is no further business Alderman Meade made the motion to adjourn. It was duly seconded by Alderman Sarff.

The motion carried by voice vote, and was unanimous. Mayor Heinze adjourned the meeting at 7:38 p.m.

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Nancy Whites, City Clerk

APPROVED:

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Rodney W. Heinze, Mayor