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City Council Minutes 7/20/2009
AGENDA
CITY OF SALEM
REGULAR CITY COUNCIL MEETING
JULY 20, 2009
 6:00 P.M.

I.      Call to Order
II.     Prayer and Pledge of Allegiance
III.    Approval of Minutes,  July 6, 2009
IV.     Presentation of Petitions/Public Comments
V.      Mayor’s Report and Presentation
VI.     City Council Action
1.      Bid Opening – Sale of Property Owned by the City of Salem – 1430 N. Broadway
2.      First Reading – Ordinance Authorizing Execution and Implementation of a Natural Gas All-Requirements Sales Agreement with Illinois Public Energy Agency
3.      Acknowledgement of Receipt of Proposals for Purchase of City Property Located at 217 West Main Street – Old Library Building
4.      Acknowledgement of Receipt of Proposals for Purchase of City Property Located at 208 East Main Street
5.      Recommendation from Planning Commission Regarding Temporary Signs and Banners and Off-Premises Signs
6.      Second Reading – Ordinance Amending Ordinance 2001-12 and 2001-14 TIF Development Project Area #2 - to Remove #7 Carpenter Drive From TIF #2
7.      Bills Payable
8.      Executive Session – 5 ILCS 120/2) c)(5) - Sale of Property at 217 W. Main, 208 E. Main, and 1430 N. Broadway
After Closed Session
9.      Authorize Sale of City Property Located at 217 West Main Street – Old Library Building; Contingent Upon Re-Development Agreement
10.     Authorize Sale of City Property Located at 208 East Main Street
11.     Consideration of TIF Loan to the Purchaser of Property at  208 East Main Street
12.     Approval of Closed Session Minutes of 6/15/2009

VII.    City Manager Report
VIII.   City Attorney Report
IX.     City Council Report
X.      Adjournment
                        
Thomas F. Christie,
City Manager
________________________________________________________________________________________________________________________
                                              MINUTES                                 
CITY OF SALEM
REGULAR CITY COUNCIL MEETING
 JULY 20, 2009
6:00 P.M.

I.      Call To Order
The Salem City Council met in regular session on Monday, July 20, 2009, at the hour of 6:00 p.m. in the Council Chambers of Salem City Hall.  The meeting was called to order by Mayor Leonard E. Ferguson.    
Council Members present upon roll call:
Councilman Tom Carr
Councilman Kip Meador
Councilman Steve Huddlestun
Councilman David Black   
Mayor Leonard E. Ferguson

Others Present:
City Manager Thomas F. Christie
City Attorney Michael R. Jones  
City Clerk Jane Marshall
Finance Director Marilyn Shook
Public Works Director John Pruden  
Economic Development Director Tracey McDaneld
Chief of Police Ron Campo
Code Enforcement Officer Brad Crow
Recreation Director Sherry Daniels
Assistant to the City Manager Bev West  
Library Director Kim Keller
Media: Salem Times Commoner, WJBD Radio, Centralia Sentential  
Several members of the public.   
Absent:
 DOEM Director Terry Mulvany


II.     Prayer and Pledge of Allegiance
Opening prayer led by Councilman Carr, followed by the Pledge of Allegiance to the Flag.  


III.    Approval of Minutes – JUly 6, 2009
Minutes of Regular City Council Meeting of July 6, 2009 were presented for review.  Councilman Carr moved and Councilman Black seconded the motion to approve the minutes of Regular Council Meeting of July 6, 2009 as written and waive the reading.  Roll call vote.  AYES:  Councilmen Meador, Huddleston, Black and Carr.   NAYS: None.  Motion declared carried.


IV.     Presentation of Petitions and Public Comments
Mayor Ferguson introduced Representative Cavaletto and Senator Jones who came to make announcement regarding the Capitol Bill funding that will be coming to Salem and the surrounding area.  Representative Cavaletto reported that the Illinois Jobs Now Program with the Capitol Bill has passed and has been allocated for the following projects:
·       $     750,000  Marion County – Omega Road
·       $     335,000  West McMackin to Kell Street
·       $     170,000  Mitchell Street Extension
·       $  5,000,000  US Route 50 Study from I-57 east to Vincennes, IN
·       $     250,000  Replace Water Lines – Sen. Jones
·       $     150,000  Replace Water Lines – Rep. Cavaletto
·       $       20,000  Salem Fire Protection District
·       $       20,000  Salem police Department (Infrastructure)
·       $       25,000  Salem Community Activities Center (Infrastructure
·       $       40,000  Salem Community Theatre
·       $       25,000  Marion County Sheriff’s Dept (Infrastructure)
·       $       20,000  Salem Aquatic Center Foundation for Pool and Exercise Center
·       $75,000,000 Leaky Underground Storage Tank Fund for Unites Science Industries in Mt. Vernon
Senator Jones commented that they will continue to work to get additional monies for the Mitchell Street expansion project.  He commented  that very project must be bonded for 20 years and it will be 90 to 120 days before the bonds will begin to be sold and the money can be released.  Senator Jones commented that there will be competitive grants available through IEPA for water and sewer projects and that the City should send a letter of support from Senator Jones and Representative Cavaletto along with the grant application request for these water sewer grants.  

Council expressed their thanks and appreciation to Senator Jones and Representative Cavaletto for their help in obtaining these monies for the City.


V.      Mayor’s Report and Presentations – None


VI.     City Council Action
1.      Bid Opening – Sale of Property Owned by the City of Salem – 1430 N. Broadway
City Manager Christie explained that the City advertised for sealed bids on residential property located at 1430 N. Broadway that was donated to the City by HUD and no bids were received.  City Attorney Jones will advise of further options.   

2.      First Reading – Ordinance Authorizing Execution and Implementation of a Natural Gas All-Requirements Sales Agreement with Illinois Public Energy Agency
An Ordinance Authorizing Execution and Implementation of a Natural Gas All-Requirements Sales Agreement with Illinois Public Energy Agency was presented for First Reading.  City Manager Christie reported that the City is currently a member of the Illinois Public Energy Association, an association of governmental entities that have natural gas utilities, who work together to attempt to derive favorable gas purchase arrangements that would not be achieved unilaterally.  He recommended Council authorize a five-year extension of its membership in the association at the second reading of this ordinance.  

Mayor Ferguson suggested that the City’s gas consultant, Bob Erxleben review this contract and give a written recommendation at next meeting.  

No action was taken, this being first reading.

3.      Acknowledgement of Receipt of Proposals for Purchase of City Property Located at 217 West Main Street – Old Library Building
City Manger Christie reported as the City publicly solicited proposals for the potential sale of City owned property located at 217 West Main – old library building – Council should publicly, by motion, acknowledge receipt of the proposals.  He recommended acknowledging receipt of the proposal and as the proposal may result in the potential sale of the property, the matter may be considered in Closed Session.  

Councilman Black moved and Councilman Carr seconded the motion to acknowledge receipt of the one proposal for the property located at 217 West Main Street – the old library building.  Roll call vote.  AYES:  Councilmen Huddlestun, Black, Carr, and Meador.  NAYS:  None.  Motion declared carried.  

4.      Acknowledgement of Receipt of Proposals for Purchase of City Property Located at 208 East Main Street
City Manger Christie reported as the City publicly solicited proposals for the potential sale of City owned property located at 208 East Main; Council should publicly, by motion, acknowledge receipt of the proposals.  He recommended acknowledging receipt of the proposal and as the proposal may result in the potential sale of the property, the matter may be considered in Closed Session.  

Councilman Black moved and Councilman Huddlestun seconded the motion to acknowledge receipt of the one proposal for the property located at 208 East Main Street.  Roll call vote.  AYES:  Councilmen Black, Carr, Meador and Huddlestun.   NAYS:  None.    Motion declared carried.  

5.      Recommendation From Planning Commission Regarding Temporary Signs and Banners and Off-Premises Signs
City manager Christie explained that the Planning Commission, at the direction of the City Council, reviewed the sign code and recommended changes to the moratorium on temporary, off-premises signs.  He recommends the approval of the changes recommended by the Planning Commission.

A letter dated June 17, 2009 addressed to Honorable Mayor and City Council, regarding Sign Code – Temporary Signs and Banners and off-Premises Signs was included in the Agenda, it read as follows:
“At City Council’s direction, the Planning Commission has been discussing possible revisions to the Code of Ordinances pertaining to “Signs”, particularly temporary signs and banners and off-premises signs.  During the course of our review, we received public input from some of local businesses, as well as private input from business owners who wish to remain anonymous.

During a June 16th workshop scheduled specifically to work on possible revisions to the code, it became clear that the Planning Commission does not think that permanent revisions to the code are appropriate at this time.  The code has been in place for a number of years, and has served the community well.  The code is fair, in that all businesses must follow the same regulations.  Additionally, the current regulations pertaining to off-premise signs and temporary signs and banners ensure that the community presents a clean, uncluttered, aesthetically pleasing appearance, which is an important factor in the City’s efforts to attract economic development.  

Although the Planning Commission is not presently recommending permanent revisions to the code, it is sensitive to the current economic climate, and understands that local business owners are looking for additional ways to enhance their businesses and increase business visibility.  As a result, the Planning Commission is recommending to City Council that the moratorium be slightly modified, and extended for a one-year period, to be reviewed again near the expiration date.  The modified regulations regarding the moratorium are listed below:  
        1)      the moratorium would be relevant to section 6-167 Temporary Signs.
        2)      the moratorium would be for a one-year period beginning July 24, 2009 – date existing moratorium expires.
        3)      temporary signs would be allowed to be erected, off-premise, under the following conditions:
a.   Temporary signs and banners can be erected, off-premise, on commercial property – not residential, with the written permission of the commercial property owner.
                         b.  Ttemporary signs and banners must be free-standing or flush-mounted to a building, and have an area of no more than 32 square feet.  Banners covered by                            Sec. 6-167 (Off-premise temporary signs and banners promoting a local community event sponsored by a unit of local government or a not-for-profit                                        organization) would be exempt from the maximum sign size of 32 square feet.
                c.  Temporary signs and banners cannot be placed on Cit or State right-of-way and must be in compliance with section 6-142 (1) All freestanding signs must                   either have twenty (20) feet of setback from the street curb line or have at least eight (8) feet of clearance between the base of the sign and the ground.  
d. Temporary signs and banners can have no sponsor logo or reference on them.
e. Temporary signs and banners may be erected no sooner than five (5) days prior to the sale or event and must be removed no later than 24 hours following the     sale or event.
        f. Each temporary sign or banner must be permitted by the city.  (this will allow the City to verify that the applicant has the written permission of the commercial       property owner and will meet the setback requirements.)  Regular permit fee of $10.00 per sign or banner will apply.

Additionally, the Planning Commission discussed recommending that the code be amended to allow for off-premise shopping center signs; however, the business community is not currently expressing a need for this type of sign.  There are a few businesses located in the Westgate Shopping Center who wish to hang temporary banners on an existing off-premise free-standing sign, but there is no group effort by the shopping center to erect a permanent off-premise sign.  The Commission recommends that permanent off-premises signs for individual businesses continue to be prohibited.  Currently, City code allows petitioners to appeal this denial through the Zoning Board of Appeals.

Thank you for your thoughtful consideration of our recommendations, Sincerely, Dennis Hampton Chairman Salem Planning Commission. “

Chairman of the Planning Commission, Dennis Hampton was present to answer questions and comments.  Jeff Dunahee was also present and expressed concern regarding a sign he has on west main street.  

Following discussion, Councilman Carr moved and Councilman Black seconded the motion to accept the recommendation from the Planning Commission regarding temporary signs and banners and off-premises signs as presented in the letter.  
Roll call vote.  AYES:  Councilmen Carr, Meador, Huddlestun, and Black.    NAYS:  None.    Motion declared carried.  

6.      Second Reading – Ordinance Amending Ordinance 2001-12 and 2001-14 TIF Development Project Area #2 - to Remove #7 Carpenter Drive        From TIF #2
City Manager Christie commented that City Council is asked to consider for the second time, the request from SBIC to remove #7 Carpenter Drive from TIF #2 which would benefit economic development, should the business expand.  Economic Development Director McDaneld commented that through discussion with Finance Director Shook and the City’s TIF advisor, it is believed that there are tools available that could help this business without removing it from the TIF district.  She recommended that action on the proposed Ordinance Amendment be tabled and the matter be looked into further.  She indicated time will be necessary to go back to SBIC for a revised recommendation.  
Councilman Carr moved and Councilman Black seconded the motion to reconsider and table Agenda Item #6.  Roll call vote.  AYES:  Councilmen Meador, Huddlestun, Black and Carr.  NAYS:  None.  Motion declared carried.   

7.      Bills Payable
Bills payable listing for a total amount of $1,242,106.73 for period ending July 20, 2009 was presented for Council review and approval.  Following review period, Councilman Carr moved and Councilman Black seconded the motion to approve bills payable as presented.  Roll call vote.  AYES:  Councilmen Huddlestun, Black, Carr, and Meador.  NAYS:  None.  Motion declared carried.  


Items 8, 9, 10, 11, and 12 - AFTER REPORTS

VII.    City Manager Report – No Report  
  
VIII.   City Attorney Report –  No Report

IX.     City Council Report
Councilman Carr  - asked if the Library Board members that are present could be included in the Closed Session meeting regarding sale of the old library building.  
Councilman Meador – No Report
Councilman Huddlestun – No Report
Councilman Black – No Report

Other
Mayor Ferguson asked about directional signs, commenting that there is a need for directional signage to public locations in the City.  City Manager Christie responded that the problem is with getting permission from IDOT to put signs on the State right-of-way.

8.      Executive Session – 5 ILCS 120/2) c)(5) - Sale of Property at 217 W. Main, 208 E. Main, and 1430 N. Broadway
At 7:06 p.m., Councilman Black moved and Councilman Huddlestun seconded the motion to enter into Closed Session to discuss the sale of City Owned Property at 217 W. Main and 208 East Main.  Roll call vote.  AYES:  Councilmen Black, Carr, Meador, and Huddlestun.  NAYS:  None.  Motion declared carried.  


After Closed Session
Upon returning to Open Session at 8:10 p.m., the following agenda items were discussed in reverse order, Item 12, 10, 11, and 9:
Agenda Item 12.   Approval of Closed Session Minutes of 6/15/2009
Councilman Carr moved and Councilman Black seconded the motion to approve Closed Session Minutes of June 15, 2009.  Roll call vote.  AYES:  Councilmen Carr, Meador, Huddlestun, and Black.  NAYS:  None.  Motion declared carried.  


Agenda Item 10 – Authorize Sale of City Property Located at 208 East Main Street
Economic Development Director McDaneld reported that a proposal was received from Daniel Tahtinen for purchase of 208 East Main Street in the amount of $15,000.  Councilman Black moved and Councilman Huddlestun seconded the motion to accept the offer from Daniel Tahtinen for purchase of property at 208 East Main Street for an amount of $15,000.00.  Roll call vote.  AYES:  Councilmen Meador, Huddlestun, Black, and Carr.  NAYS:  None.  Motion declared carried.  


Agenda Item 11 – Consideration of TIF Loan to the Purchaser of Property at  208 East Main Street
Economic Development Director McDaneld  reported that as part of the proposal, to purchase property at 208 East Main Street, Mr. Tahtinen is requesting a TIF loan in the amount of $35,000 for the rapid repair and renovation of 208 East Main Street to allow for expansion and hiring of additional staff for proposed “Salem’s Teriyaki House” at  206 East Main Street.  She asked Council approval of the request from Daniel Tahtinen for a TIF 3 loan in the amount of $35,000.00 at 3% for five years.  Councilman Black moved and Councilman Carr seconded the motion to approve the request from Daniel Tahtinen for a TIF 3 loan in the amount of $35,000.00 at 3% for five years to be used for repair and renovation of 206 and 208 East Main.  Roll call vote.  AYES:  Councilmen Huddlestun, Black, Carr, and Meador.  NAYS:  None.  Motion declared carried.  

Agenda Item 9 – Authorize Sale of City Property Located at 217 West Main Street – Old Library Building; Contingent Upon Re-Development Agreement
Economic Development Director McDaneld reported that a proposal was received from Becky Carpenter and Douglas Monical to purchase city-owned property at 217 W. Main for the amount of $1.00, contingent upon the re-development agreement to do structural improvements to the building for a total cost of $250,000 over a five (5) year period.  Councilman Carr explained that this offer was considered after the building has been advertised with no acceptable offers being made.  He explained that the City would have to spend monies for structural and roof repairs if the building is not sold.  Councilman Black moved and Councilman Carr seconded the motion to accept the proposal from Rebecca Carpenter and Douglas Monical to sell the city-owned property located at 217 West Main Street for $1.00 contingent upon re-development agreement that they will do $250,000 in structural improvements over a five (5) year period.   Roll call vote.  AYES:  Councilmen Huddlestun, Black, and Carr.  NAYS:  None.  Abstain:  Councilman Meador.   Motion declared carried.  (Councilman Meador has inspected this building for Ms. Carpenter prior to becoming Councilman)

Members of the Library Board were present for discussion on the sale of the old library building.  Jane Gaston asked how will this transaction benefit the library and what agreement with the library.
City Manager Christie commented as the building goes back on the tax rolls, it will create additional TIF monies that will be forwarded to the Library until Council is satisfied.  
Ms. Gaston explained that part of their plan was to use the monies from the sell of the building to help the library – there is no guarantee on the amount of income from property taxes.  

Gaston asked if the Library is still expected to re-pay the $110,000 loan from the City and if not will the City hold ownership of the new library building (old Central School Building).  She asked that Council specifically spell out what they expect from the Library Board.

City Attorney Jones advised that this discussion should be an Agenda item.  Mayor Ferguson requested that this issue be placed on the next Agenda for consideration to forgive the $110,000 loan to the Library Board and then they could look at the next step.  

X.      Adjournment
There being no further business for discussion, at 8:50 p.m., Councilman Carr moved, and Councilman Black seconded the motion to adjourn.   Roll call vote:  AYES:  Councilmen Black, Carr, Meador, and Huddlestun.  NAYS:  none.  Motion declared carried.  



Jane Marshall, CMC
City Clerk
Approved by City Council as written on August 3, 2009.