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City Council Minutes 08/03/2009
AGENDA
CITY OF SALEM
REGULAR CITY COUNCIL MEETING
August 3, 2009
 6:00 P.M.



I.      Call to Order
II.     Prayer and Pledge of Allegiance
III.    Approval of Minutes,  July 20, 2009
IV.     Presentation of Petitions/Public Comments
V.      Mayor’s Report and Presentation
VI.     City Council Action
1.      First Reading – Ordinance Increasing Monthly Charge for Residential Garbage Collection
2.      First and/or Second Reading – Ordinance Authorizing Sale of Municipally Owned Property and Marketing by City Staff.
3.      First Reading – Ordinance Establishing a “No Parking” Area for Thirty (30) Feet From the Corners on Schwartz St.
4.      Second Reading – Ordinance Authorizing Execution and Implementation of a Natural Gas All-Requirements Sales Agreement with Illinois Public Energy Agency.
5.      First and Second Reading – Authorizing Ordinance Regarding City’s Intent to Acquire Alternate Revenue Bond Issue in Connection with Outside Swimming Pool
6.      Order/Public Hearing – Order Calling for a Public Hearing  on the Proposed Bond Issue
7.      First Reading – Ordinance Increasing the Hotel/Motel Tax From 2% to 4%
8.      Resolution Forgiving $110,000 Loan Made to Bryan-Bennett Library Board for Purchase of Former Central School Building.
9.      Consideration of Proposals Received for Purchase of Replacement Reservoir Fountain/Waiver of Bid Process
10.     Consideration of Request from Cedarwood Development (for CVS) to Vacate Public Utility Easement

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
 AUGUST 3, 2009
6:00 P.M.

I.      CALL TO ORDER
The Salem City Council met in regular session on Monday, August 3, 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 Pro Tem Tom Carr.
Council Members present upon roll call:
        Councilman Kip Meador
        Councilman Steve Huddlestun
        Councilman David Black
        Mayor Pro Tem Tom Carr
Absent:
        Mayor Leonard E. Ferguson

Others Present:
City Manager Thomas F. Christie
City Attorney Michael R. Jones
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 Sentinel
Several members of the public.
Absent:
        City Clerk Jane Marshall
        DOEM Director Terry Mulvany
City Attorney Michael R. Jones

II.     PRAYER AND PLEDGE OF ALLEGIANCE
Opening prayer led by Mayor Pro Tem Carr, followed by the Pledge of Allegiance to the Flag.

III.    APROVAL OF MINUTES – JULY 20, 2009
Minutes of Regular City Council Meeting of July 20, 2009 were presented for review.  Councilman Black moved and Councilman Huddlestun 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, Huddlestun, Black and Mayor Pro Tem Carr.  NAYS:  None

IV.     PRESENTATION OF PETITIONS AND PUBLIC COMMENTS
Amy Telford, 3421 Red Stripe Road, indicated there are some paving stones at the existing pool site that she and her husband would like to have.  The stones would be used for landscaping at their residence, and possibly for at the Presbyterian Church park, which is leased by the City. City Manager Christie indicated the paving stones are part of the area planned for demolition, and would not be reused.  Councilman Black moved and Councilman Huddlestun seconded the motion to allow Mr. and Mrs. Telford to remove and retain paving stones from the pool construction area for their personal use and use in the park.  Roll call vote.  AYES:  Councilmen Black, Meador, Huddlestun, and Mayor Pro Tem Carr.  NAYS:  None.  Motion declared carried.

V.      MAYOR’S REPORT AND PRESENTATIONS – None.

VI.     CITY COUNCIL ACTION
1.      First Reading – Ordinance Increasing Monthly Charge for Residential Garbage Collection
City Manager Christie indicated that Salem Municipal Landfill is scheduled to close on April 30, 2010.  Mr. Christie indicated that he, Finance Director Shook, and Public Works Director Pruden have analyzed the costs associated with closure, post closure care and monitoring, as well as expected increased costs for residential collection, and have determined that a $3.00/month per household increase is appropriate at this time.  Manager Christie added that costs will continue to increase, including labor and materials associated with the leaf vac and the yard waste collection programs.  Manager Christie added that, in order to minimize the closure impact, he would like to amortize the shortfall in initial closure costs over a five-year period with an inter-fund loan from the Gas or General fund.  Christie added that the post-closure monitoring costs will be approximately $65,000 per year.

Councilman Huddlestun indicated that when the City discontinued doing its own waste collection several years ago, then-City Manager Kinney indicated the City would realize a labor savings of approximately $50,000 per year.  City Manager Christie concurred, and indicated the City has realized a savings, with a current reserve of approximately $400,000.  Councilman Black asked if the expected increases in waste hauling fees have been factored into the equation, and asked Director Shook if she concurs that the proposed increase will be adequate.  Director Shook indicated she worked with Manager Christie and Director Pruden on this, and the expected increases in waste hauling were taken into consideration, and she feels this is the appropriate increase at this time. Councilman Meador asked if the City is looking into utilizing a transfer station.  City Manager Christie indicated there are nearly as many permitting and monitoring requirements for a transfer station as there are for a landfill.  Manager Christie added that Director Pruden has been trying to get IEPA to certify section 801 of the landfill as “closed” for more than 15 years, and monitoring costs for this section of the landfill cost the City approximately $170,000 per year.  Director Pruden indicated Council is actually talking about two different steps – the actual capping of the landfill and the 30-year post-closure monitoring after the capping.  Mr. Pruden indicated IEPA is reluctant to certify landfills as closed, and there are different monitoring requirements for different intervals of closure.  Mayor Pro Tem Carr asked if there will be a reduction in employees, when the landfill closes.  Director Pruden indicated that the number of full-time employees has been reduced through attrition, and the additional reductions will be temporary employees.   Mayor Pro Tem Carr indicated that Council was aware that there would need to be fee increases as closure became imminent.  Consensus was to place this ordinance on the next meeting agenda for a second reading.

Ordinance 2009-10
2.      First and/or Second Reading – Ordinance Authorizing Sale of Municipally Owned Property and Marketing by City Staff
City Manager Christie indicated that at Council direction, the City Attorney has researched state law, and has advised us that City staff can market and sell the HUD house at 1430 N. Broadway.  Manager Christie indicated the “for sale” sign has been posted, and the house has been shown once, with another showing scheduled.  Councilman Black asked if we are advertising the house for sale.  Manager Christie indicated we have not, but will.  Councilman Black moved and Councilman Huddlestun seconded  Note: Clerk added: (the motion to approve Ordinance 2009-10, an ordinance authorizing the sale of municipally owned property and) that City staff be authorized to advertise, show, and accept offers on the city-owned house at 1430 N. Broadway.  Roll call vote.  AYES:  Councilmen Huddlestun, Black, Meador, and Mayor Pro-Tem Carr.  NAYS:  None.   Motion declared carried.

3.      First Reading – Ordinance Establishing a “No Parking” Area for Thirty (30) Feet From the Corners on Schwartz St.
City Manager Christie indicated that this ordinance is being recommended by Chief Ron Campo.  Chief Campo distributed photos of the areas in question, and indicated the recommendation is being made to insure vehicular safety.  Consensus was to place this ordinance on the next meeting agenda for a second reading.

4.      Ordinance/Second Reading/Sales Agreement with IPEA
An Ordinance Authorizing Execution and Implementation of a Natural Gas All-Requirements Sales Agreement with Illinois Public Energy Agency was presented for Second Reading.  City Manager Christie reported that Bob Erxleben, Consulting Engineer, has provided a letter regarding the items he felt were important to consider when evaluating a natural gas supply program.  Councilman Black expressed disappointment that Mr. Erxleben is not present to answer questions regarding the contract and the information contained in his letter.  Discussion ensued regarding the differences between the five-year contract extension and the 20-year pre-pay that the City had discussed entering into.  Councilman Black moved and Councilman Meador seconded the motion that action on the IPEA Contract Extension be postponed until the next meeting, and that Mr. Erxleben be requested to attend.  Roll call vote.  AYES:  Councilmen Black, Meador, Huddleston and Mayor Pro-Tem Carr.  NAYS: None.  Motion carried.

Ordinance 2009-09
5.      Ordinance/First and Second Reading – An Ordinance Authorizing the Issuance of General Obligation Bonds (Alternate Revenue Source) of the City of Salem, Marion County, Illinois, in an Aggregate Principal Amount Not to Exceed $3,100,000 for the Purpose of Paying the Costs of Building and Equipping a Swimming Pool and Related Facilities to Replace the City’s Existing Swimming Pool.
City Manager Christie indicated that in order to build and equip a swimming pool and related facilities to replace the City’s existing swimming pool, it would be necessary for the City to issue alternate bonds, and the City Council would need to adopt an ordinance authorizing issuance of such bonds.  Manager Christie added that the City has entered into an agreement with Chapman and Cutler LLP, who are the premier bond attorneys in this area, and has received very specific instructions from Chapman Cutler regarding this bond issue.  Due to time restraints, it is necessary for Council to treat the reading of this ordinance as both a First and Second Reading, and take action accordingly. (City Council, Department Heads, Media and any member of the public who requested a copy were provided with a copy of the ordinance prior to the meeting.) Additionally, it will be necessary for the City to approve an Order/Public Hearing to be held on August 17th  as the next item of business.  After a full and complete discussion thereof, Councilman Black moved and Councilman Huddlestun seconded approval of Ordinance #2009-09 An Ordinance Authorizing the Issuance of General Obligation Bonds (Alternate Revenue Source) of the City of Salem, Marion County, Illinois, in an Aggregate Principal Amount Not to Exceed $3,100,000 for the Purpose of Paying the Costs of Building and Equipping a Swimming Pool and Related Facilities to Replace the City’s Existing Swimming Pool.  Roll call vote.  AYES:  Councilmen Meador, Huddlestun, Black, and Mayor Pro-Tem Carr.  NAYS:  None.  Motion declared carried.  As recommended by Chapman and Cutler LLP, Bond Counsel, the Ordinance is printed in its entirety, as follows:
Ordinance No. 2009-09
An Ordinance authorizing the issuance of General Obligation Bonds (Alternate Revenue Source) of the City of Salem, Marion County, Illinois, in an aggregate principal amount not to exceed $3,100,000 for the purpose of paying the costs of building and equipping a swimming pool and related facilities to replace the City’s existing swimming pool.
        *       *       *
Whereas, the City of Salem, Marion County, Illinois (the “City”), is a duly organized and existing municipality incorporated and existing under the provisions of the laws of the State of Illinois, and is now operating under the provisions of the Illinois Municipal Code, as amended (the “Code”); and
Whereas, the City Council of the City (the “Council”) has determined that it is advisable, necessary and in the best interests of the City to build and equip a swimming pool and related facilities to replace the City’s existing swimming pool (the “Project”), in accordance with the preliminary plans and estimate of costs now on file in the office of the City Clerk; and
Whereas, the estimated costs of the Project, including engineering, legal, financial, bond discount, printing and publication costs, and other expenses, is $3,100,000, and there are insufficient funds on hand and lawfully available to pay such costs; and
Whereas, it is necessary and for the best interests of the City that the Project be undertaken and in order to finance the costs thereof it will be necessary for the City to issue up to $3,100,000 alternate bonds, being general obligation bonds payable from all collections distributed to the City from those taxes imposed by the State of Illinois pursuant to the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act and the Retailer’s Occupation Tax Act, each as supplemented and amended from time to time, or substitute taxes therefor as provided by the State of Illinois in the future, as authorized to be issued at this time pursuant to the Local Government Debt Reform Act of the State of Illinois, as amended (the “Alternate Bonds”); and
Whereas, if the above-mentioned revenue source is insufficient to pay the Alternate Bonds, ad valorem property taxes upon all taxable property in the City without limitation as to rate or amount are authorized to be extended to pay the principal of and interest on the Alternate Bonds:
Now, Therefore, Be It Ordained by the City Council of the City of Salem, Marion County, Illinois, as follows:
        Section 1.      Incorporation of Preambles.  The Council hereby finds that all of the recitals contained in the preambles to this Ordinance are full, true and correct and does incorporate them into this Ordinance by this reference.
        Section 2.      Determination to Issue Bonds.  It is necessary and in the best interests of the City to build and equip the Project, in accordance with the estimates as hereinabove described, and there are hereby authorized to be issued and sold the Alternate Bonds in an aggregate principal amount not to exceed $3,100,000 to pay the costs thereof.
        Section 3.      Publication.  This Ordinance, together with a notice in the statutory form (the “Notice”), shall be published once within ten (10) days after passage hereof by the Council in the Salem Times-Commoner, being a newspaper of general circulation in the City, and if no petition, signed by 374 electors of the City, the same being equal to 7.5% of the registered voters in the City, asking that the question of the issuance of the Alternate Bonds be submitted to referendum is filed with the City Clerk within thirty (30) days after the date of the publication of this Ordinance and the Notice, then the Alternate Bonds shall be authorized to be issued.
        Section 4.      Additional Ordinances.  If no petition meeting the requirements of applicable law is filed during the petition period hereinabove referred to, then the Council may adopt additional ordinances or proceedings supplementing or amending this Ordinance providing for the issuance and sale of the Alternate Bonds, prescribing all the details of the Alternate Bonds, so long as the maximum amount of the Alternate Bonds as set forth in this Ordinance is not exceeded and there is no material change in the Project or purposes described herein.  Such additional ordinances or proceedings shall in all instances become effective in accordance with applicable law.  This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for the issuance of the Alternate Bonds under applicable law.
        Section 5.      Severability.  If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance.
        Section 6.      Repealer.  All ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed.

Adopted by the City Council on the 3rd day of August, 2009.

Ayes: Councilmen Meador, Huddlestun, Black and Mayor Pro Tem Carr
Nays: None.
Absent:  Mayor Ferguson

Approved on August 3, 2009
/s/ Leonard E. Ferguson
Mayor, City of Salem,
Marion County, Illinois


6.      Order/Public Hearing – Order Calling A Public Hearing Concerning the Intent of the City Council of the City of Salem, Marion County, Illinois, to Sell $3,100,000 General Obligation Bonds (Alternate Revenue Source).
City Manager Christie indicated the City must approve an Order calling for a Public Hearing to be held at 6:00 p.m. on Monday, August 17th.  Councilman Black moved and Councilman Huddlestun seconded that a Order Calling a Public Hearing Concerning the Intent of the City Council of the City of Salem, Marion County, Illinois, to sell $3,100,000 General Obligation Bonds (Alternate Revenue Source).  Roll call vote. AYES:  Councilmen Huddlestun, Black, Meador and Mayor Pro Tem Carr.  NAYS:  None.  Motion declared carried.

7.      First Reading – Ordinance Increasing the Hotel/Motel Tax from 2% to 4%
City Manager Christie indicated this increase was recommended by the Tourism Board, and invited Tourism Chairman Bob Haney to address Council.  Mr. Haney indicated the Tourism Board has recently started doing more advertising for the hotels and motels, including billboard signs along I-57.  Additionally, the Board is promoting a variety of existing and new tourism activities in Salem, including the PKC World Coon Hunt, and the additional funds brought in by a 4% tax would be a great benefit in promoting local events.  Mayor Pro Tem Carr asked if the Tourism Board could use 5%.  Mr. Haney responded that the Tourism Board would be happy with 4% or 5%.  Mr. Haney introduced Southwest Tourism Board Marketing Director Pat White, who spoke on behalf of the increase.  Ms. White indicated hotel/motel taxes are used to market Salem, and visitors to our town are paying that tax.  The State charges 6% hotel/motel tax, and local communities are able to charge up to 5% -- most of the communities in our region, including Mt. Vernon, Effingham, Carlyle, and Centralia all charge 5%.  White indicated that the PKC World Coon Hunt will bring 1800 dogs to the area, and each of those dogs will have at least one handler.  Those handlers may bring family members and friends. For a 10-day event, they will average five nights in Salem, spending an average of $89.00 per day, bringing $1.6 Million dollars into the region.  Consensus was to direct that this ordinance be placed on the next meeting agenda for Second Reading.

Resolution 2009-09
8.      Resolution Forgiving $110,000 Loan Made to Bryan-Bennett Library Board for Purchase of Former Central School Building
City Manager Christie indicated approval of the Resolution will authorize the City, through its Finance Director, to “forgive” and render null the current $110,000 loan extended to the Bryan Bennett Library Board.  Finance Director Shook indicated forgiving this loan will not have any impact on the current budget, as the City had not anticipated the building selling during the current budget year.  Forgiving the loan will, however, deplete the General Fund reserves.  Mayor Pro Tem Carr indicated that forgiving the loan seems appropriate, since the funds from the sale were intended to go towards purchase of the new library.  Councilman Huddlestun indicated Bryan-Bennett Library wanted to be able to budget, and not knowing when the building would sell, or how long they would be paying payments, was making budgeting difficult.  Forgiving this $110,000 loan will make budgeting easier.  Councilman Black moved seconded by Councilman Huddlestun that Resolution 2009-09 be approved, forgiving the $110,000 loan made to the Bryan-Bennett Library Board for the purchase of the new library building.  Roll call vote.  AYES:  Councilmen Black, Meador, Huddlestun, and Mayor Pro Tem Carr.  NAYS:  None.  Motion declared carried.

9.      Reservoir Fountain Proposals/Waiver of Bid Process
City Manager Christie indicated the City’s reservoir fountain is not working, and to repair the fountain would cost $14,643.50.  The City received proposals from Hydro Dramatics for new fountains for $23,235.50 and $15,574.00.  Manager Christie indicated he and Public Works Director Pruden recommend replacing the damaged fountain with the lower priced new fountain.  Discussion ensued regarding the purpose of the fountain, and whether or not it assisted in re-oxygenating the reservoir.  Director Pruden indicated reservoir also has a destratifier in it that does the re-oxygenating.  The fountain is more for aesthetics than re-oxygenation.  Councilman Huddlestun suggested that the fountain is not a necessity at this time, and the money could be better spent.  Councilman Huddlestun moved and Councilman Black seconded the motion to reject the proposals received, and to forgo replacing the fountain in Salem Reservoir at this time.  Roll call vote.  AYES:  Councilmen Meador, Huddlestun, Black and Mayor Pro Tem Carr.  NAYS:  None.  Motion declared carried.

10.     Motion/Vacation of Public Utility Easement
City Manager Christie indicated that Cedarwood Development, representing CVS, is requesting that the City consider vacating a public utility easement that runs through the areas where they want to build.  Currently Ameren, AT&T and Charter have utilities in this easement.  Passage of the motion will establish the City’s intent to vacate.  Later, an ordinance will be required.  City Manager Christie recommended approval, based on the following conditions, as outlined on the document entitled “Intent to Release Utility Easement Rights “ :  
1)  Cedarwood enters into a contract for the utility relocation;  
2)  Cedarwood pays the required costs for utility relocations;  
3)  “CVS” grants new easement locations as required by Utility Owners;  
4)  Utility Owner relocates its facilities;
5)  Utility Owner then releases its easement rights over the present locations;
6)  City will release its easement rights over the vacated alley through the CVS site.  

City Manager Christie added an additional condition – that CVS provide proof of ownership of property.  City Manager Christie and Councilman Black both expressed concern that the easement being vacated is 15 ft. wide, and the proposed easement area is only 10 ft. wide.

Rick Dilsavor, Cedarwood Development, displayed a drawing showing the existing easement and the  proposed easement, and responded that Cedarwood does not feel the 15 ft. easement width will be necessary.  City Manager Christie indicated that if the utility companies are satisfied, and the City receives written notification from the utilities that they have been relocated, the City will be satisfied.  Christie added that the letter Cedarwood is requesting be signed is just an “intent” letter, and actual vacation of the utility easement will require passage of an ordinance.  Councilman Black moved and the motion was seconded by Councilman Huddlestun that the City execute the “Intent to Release Utility Easement Rights In the Future” document and notify Cedarwood Development accordingly.  Roll call vote.  AYES:  Councilmen Huddlestun, Black, Meador, Mayor Pro Tem Carr.  NAYS:  None.  Motion declared carried.

VII.    CITY MANAGER REPORT - City Manager Christie commended John Pruden, Annette Brushwitz, and the Public Works Department on erecting the flags on short notice in recognition of the National Guard returning to Salem.  Manager Christie also commended Mayor Pro Tem Carr for representing the City at the ceremony for the troops in the Mayor’s absence.  

City Manager Christie commended Economic Development Director Tracey McDaneld for developing a Workman’s Comp seminar for local business and industrial entities.

VIII.   CITY ATTORNEY REPORTNo Report (absent)

IX.     CITY COUNCIL REPORT
Councilman Huddlestun – No Report
Councilman Black – Councilman Black called attention to an article in the Local Government Matters publication regarding the Energy Efficiency Conservation Block Grant funds available to municipalities, and asked if the City was going to take advantage of this opportunity.  City Manager Christie responded that Bev West had attended a workshop regarding the program, and reported that the DCEO representative at the meeting had indicated they are extremely busy, and it may be necessary for municipalities to hire contractors to do their own energy assessments, which is the first step.  Christie added that Ms. West did bring back some suggestions for easy ways to reduce energy costs, specifically the “Exit” lighting. Councilman Black also commended Chief Campo and his officers for the good job they do, and for recently taking down an armed felon.
Councilman Meador  - No Report

Other
Library Director Kim Keller indicated the Library’s Centennial Event will be held August 15th, and cakes and homemade ice cream will be served.  Director Keller indicated Mayor Pro Tem Carr would be helping them with a program on August 7th called “Historical Faces”, by portraying Abraham Lincoln.  A magic show will be presented at 1:00 p.m. on August 6th.

Recreation Director Sherry Daniels indicated she has received an inspection report from IDPH on the existing pool, indicating “no violations”, which is excellent report on a pool 78 years old. Daniels commended her pool staff on their operation of the pool.  Director Daniels announced that the existing pool’s last day of operation is Sunday, August 9th, and all swimming will be free. Homemade ice cream by A & J’s Ice Cream will be available.  Director Daniels asked if Council wants to pay for the ice cream, and offer it free as part of the event.  Council consensus was for the City to provide the ice cream.  Daniels added that the construction trailer is on site, and the contractors will start putting up the construction fence on August 12th.

X.      ADJOURNMENT
There being no further business for discussion, at 7:30 p.m., Councilman Black moved and Councilman Huddlestun seconded the motion to adjourn.  Roll call vote:  AYES:  Councilmen Huddlestun, Black, Meador and Mayor Pro Tem Carr.  NAYS:  None.  Motion declared carried.



Jane Marshall, CMC
City Clerk
by Bev West, Deputy City Clerk

Minutes approved by City Council as written on August 17, 2009.
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