City Council

125 S. Center Street City of Collinsville Collinsville, IL 62234 Minutes - Final City Council Councilman Jeff Stehman Councilman Cheryl Brombolich Councilman Donna Green Councilman David Jerome Mayor John Miller City Manager Mitch Bair Corporate Counsel Steve Giacoletto City Clerk Kim Wasser Monday, August 14, 2017 7:00 PM Council Chambers A. CALL MEETING TO ORDER Mayor Miller called the meeting to order at 7:00 pm. B. ROLL CALL Also present: City Manager Mitch Bair, Corporate Counsel Steve Giacoletto, and City Clerk Kim Wasser. Present: 5 - Councilman Jeff Stehman, Councilman David Jerome, Councilman Cheryl Brombolich, Councilman Donna Green, and Mayor John Miller Absent: 0 C. INVOCATION Delivered by Pastor David Seaton of Collinsville Community Church. D. PLEDGE OF ALLEGIANCE Recited. E. PROCLAMATIONS/RECOGNITION/PRESENTATIONS F. BUSINESS PRIOR TO PUBLIC INPUT G. COUNCIL DISCUSSION 1. Villas at Hollybrook Redevelopment Agreement City of Collinsville Page 1 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 Attachments: Staff Memo Proposed Redevelopment Agreement Collinsville - Pro Forma Site Plan Project Narrative Project Presentation City Manager Bair explained that the item for discussion is regarding a request for TIF assistance for a proposed development facility, Villas of Holly Brook. Staff will ask for direction from Council regarding level of incentive and/or lien property for reimbursement amount. He gave an overview of project to consist of an assisted living facility proposed for the site known as the Maag farm property (S. Bluff Rd). The property is located within the Southwest Corridors TIF and Business District (BD). The estimated development cost to exceed $7 million, with $1.9 million as TIF eligible expenses. The developer requested $750,000. He indicated the attached draft redevelopment agreement has no incentive amount listed as it is pending Council's recommendation. The development would comprise of 3.8 acres of property, 71 total bed, 60 employees with an annual salary of $25,000 - $50,000 each. He further indicated the City has generally used a range of 20-40% of the total TIF eligible project costs as a starting point for incentive consideration but with incentive policies for the district that range should be 10-20%. He advised the $1.9 million are TIF eligible expenses, per State Statues; however, this is a new TIF and Business District and policies put into place upon adoption were to focus on infrastructure and utilities (excavation, storm water, sewer, water and retaining wall). The infrastructure expenses total $341,107.24 (4.9% of project costs and 17.9% of TIf eligible costs). Upon enactment of the TIF and BD, Council focused developments that generated sales tax, hospitality uses, and retail. He indicated an incentive amount of 50% of the infrastructure costs would be $170,553. Generally speaking, 30-40% was given for other incentives on $1.2-$1.3 million projects. City Manager Bair advised the developer is estimating the property taxes to increase from $6,324 to an annual amount of $233,340. The rate of pay back is quick but not consistent with Council's direction for the Southwest Corridors TIF. Developer Hadley Phillips gave an overview of his family owned and operated business and the proposed project. He advised the facility will house 60 assisted living units and 28 memory care bedrooms. They have been in business for 35 years constructing various buildings, managing college student rentals, 18 assisted living and 12 memory care facilities in Illinois and Indiana. He spoke of the Charleston, IL facility and location headquarters. The proposed Collinsville project has an estimated budget of $9 million, will generate 60 jobs with above average wages and benefits, have space available for community events, and increase property tax. He mentioned utilizing local subcontractors and materials. He indicated property tax may be $180,000 to $200,000. He further advised the project will have $1.9 million in eligible TIF expenditures and they are asking for 39% which is $750,000. He explained that the tax base that his facility pays will offset his reimbursement amount. He mentioned various site restrictions (flood plain, sewer lift station) that required them to meet with City of Collinsville Page 2 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 City staff and FEMA. Councilman Brombolich inquired of kinds of businesses that surround his other facilities. He indicated businesses vary and includes residential homes, churches, hospitals, doctor offices and retail. Mayor Miller inquired as to why they selected that site in Collinsville for their next facility. Mr. Phillips advised he was familiar with Collinsville, the site was a good fit, and market study indicated the need for a senior living facility. He further explained the type of care available within their facilities. Councilman Brombolich inquired of the market study. City Manager Bair advised he does not have data but indicated there is a need within every community. Mr. Phillips offered to send the market study for Council's review. Councilman Jerome explained the use of TIF as an investment where sales tax is generated. He inquired of estimated sales tax. Mr. Phillips indicated sales tax would be minimal as they are a service type industry and highlighted the financial impact report within their packet. Councilman Jerome clarified that this is not direct sales tax being generated from the business and Mr. Phillips concurred. Councilman Jerome indicated the proposed area was included in the TIF boundaries and intended for commercial property with retail sales. He expressed concern over the lack of sales tax/direct revenue to the City from this type of business. Mr. Phillips agreed and spoke of a buffer between his property and adjacent properties to allow for retail businesses. Councilman Jerome mentioned a spokesman from the Department of Aging, who indicated the need for assisted living facilities now but the need may dissipate as baby boomers die off. Mr. Phillips indicated the building has roughed-in plumbing to allow for multi-family use in the future and/or repurpose. Reggie Phillips spoke of his other facilities and surrounding businesses to include motorcycle sales, day care, gambling boat and other commercial property. He spoke of the site and the possibility of attracting other businesses. City Manager Bair summarized the project. He described it as a good project, needed in community and parcel is on an island but the project is not consistent with the intent of TIF/BD since it does not provide for sales tax revenue. Staff is not in agreement with $750,000 incentive amount. He asked for direction from Council. Councilman Stehman indicated the need for additional discussions. Councilman Brombolich reiterated a comment previously made in that if not for the development the additional property tax would not be there. Essentially speaking, the developer is paying the property tax and a portion would be rebated back. She spoke of the sales tax revenue intent to the TIF/BD and mentioned the need for such a facility. Councilman Green agreed that additional conversations are needed. Mayor Miller encourage Councilmembers to individually speak with the City Manager regarding the City of Collinsville Page 3 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 project. Ken Keller of D & K Backhoe spoke of the proposed project. 2. Archimages Spatial Assessment Attachments: Staff Memo Archimages Assessment of City Hall City Manager Bair gave a brief overview of City Hall facility. He explained that 25% of the building was previously occupied by Madison County Circuit Clerk's office as a courtroom but has since been vacated. This vacancy allowed for an assessment of the building in order to determine options for adequate use. Staff solicited Request for Qualifications for design and spatial planning services and the committee selected Archimages. Greg Garner of Archimages introduced himself and gave a brief presentation. He indicated that project priorities include improving public services, maximizing staff efficiencies, building security and accessibility, and promote community pride. He further explained that overall project will be in phases: Phase 1 - existing conditions analysis Phase 2 - planning concept development Phase 3 - implement options He will have scheduled meetings with staff and update Council on progress. Items of discussion will include design, schedule and budget. Archimages needs to understand how each position works, work flow and determine best use for space. He indicated that City Hall currently has only 65% of usable space due to various challenges. A proposed budget will be established that will be balanced with function and aesthetics for a final solution. Budget will include construction costs versus life cycle costs. Project scope will include cost magnitudes, cost per square foot, constructability, phasing, code and life safety, and infrastructure. Planning sessions are schedule with staff on September 25 and October 16, Council update on October 23 and end of November, and final summary by end of year. Councilman Brombolich confirmed that the historical value of the building will be maintained and he concurred. 3. Capital Improvement Projects Attachments: Staff Memo 2017_CIP_DRAFT 8-14-17.pdf City Manager Bair gave an update of the Capital Improvement Projects. The document in the agenda packet is a draft version but all the projects are included. The final version will include policies as well as amending the purchasing policy. The purchasing policy will allow for the purchase of items budgeted for within the CIP that are less than $100,000. He mentioned other stipulations that will be City of Collinsville Page 4 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 in place for such purchases. He further advised the CIP is a 6 year plan but will be reviewed annually. Revisions will be made based on conservative revenue projections and competitive project costs. Councilman Brombolich complimented City Manager Bair on formatting of the plan as it is easy to read and understand. She likes that the policies will be included in the plan making it a comprehensive document. Mayor Miller agreed. H. COUNCILMAN ANNOUNCEMENT Councilman Green read an announcement regarding the lawsuit settlement of Cheryl Brombolich. She indicated the City Council places value on openness and transparency; however, limited information can be given at this time due to ongoing litigation with Scott Williams. She advised the Belleville News Democrat was previously given a press release by the City, yet they failed to mention some significant facts and details. Cheryl Brombolich settled her wrongful employment termination lawsuit against Mike Tognarelli, Scott Williams and the City of Collinsville for $200,000. The agreement was the result of a court initiated and required mediation. Of the $200,000 settlement, Mr. Tognarelli's home owner's insurance paid $40,000 and Trident Insurance Company paid $160,000 on behalf of former City Manager Scott Williams and the City. In exchange, Mrs. Brombolich agreed to a release of all claims against the defendants. She further explained that the City has a policy deductible of $10,000 on such types of claims; therefore, the City is obligated to make that payment for the required deductible to the insurance company. She indicated the City's insurance company dictated the terms of the settlement agreement and no action or vote was taken by the Council and Councilman Brombolich was never included in discussions regarding this case. Councilman Green explained that Trident Insurance Company mandated a settlement with Mrs. Brombolich due to the testimony of Scott Williams with regards to Mrs. Brombolich being placed on administrative leave, as well as her resignation. The settlement was not about alleged misuse of the City's credit cards. The City failed a counterclaim against Mr. Williams based on his sworn testimony. Due to this pending litigation, Council cannot elaborate. I SPEAKERS FROM THE FLOOR Bob DesPain spoke of a previous Council meeting and a statement made by the Chairman. He mentioned State Statute 735 ILCS 110/5. Wanda Karibian of A-1 Party and Wedding Rental registered a complaint regarding the recent Smokin' on Main Festival. She indicated the festival hindered her business. Janet Schultz mentioned the number of Councilmembers compared to surrounding communities. She suggested dividing the City into wards. She asked Council to comment regarding increasing the size of the Council. Karen McReynolds spoke of the Brombolich lawsuit. She mentioned the Villas of Holly Brook project and suggested a variance. She spoke of Archimages' recommendations and renovation costs. City of Collinsville Page 5 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 She mentioned the replacement of vehicles in the CIP and indicated non-emergency vehicles should remain on City property when not in use. Phil Astrauskas spoke of speakers from the floor during meetings. He mentioned the Brombolich lawsuit. He spoke of TIF funds for an assisted living facility and property issues. He inquired of Code Enforcement issues at the Maag property. He spoke of commercial vehicles parked at Councilman Green's home and on a lot on St. Louis Road. J COMMENTS & ANNOUNCEMENTS - MAYOR Mayor Miller spoke of the recent Smokin' on Main BBQ Competition Event. He mentioned the C3 event to be held on August 23 at the Gateway Center. K COMMENTS & ANNOUNCEMENTS - COUNCIL MEMBERS Councilman Green spoke of the Collinsville Community Collaboration (C3) event. She explained the C3 event as a community collaboration effort to include an exposition with businesses, organizations, school district and City, as well as a realtors receptions. This event will help showcase the Collinsville community. Councilman Green encouraged residents to check out her Facebook page and challenged the community to host a block party on September 9. The event is called Love Your Neighbor. Councilman Jerome mentioned the Smokin' on Main event and indicated repositioning a trailer away from A-1 Rental. Mayor Miller indicated this was the first event but issues will be addressed for further events. Councilman Jerome addressed Ms. Schultz' inquiry about increasing the member size of the City Council. He believes increasing the size of the Council would be beneficial. He reminded the public to be mindful of children out and about as school starts tomorrow. L COMMENTS & ANNOUNCEMENTS - CITY STAFF None. M CONSENT AGENDA City Clerk Wasser read the Consent Agenda. 1. Motion to approve payroll for the period ending July 14, 2017 in the amount of $551,798.44 Attachments: Agenda Item Report Payroll Board List 07-14-17 This agenda item was approve the Consent Agenda. City of Collinsville Page 6 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 2. Motion to Approve Payment of Bills for the Period Ending July 28, 2017 in the Amount of $2,502,751.70 Attachments: Agenda Item Report 08-14-17 Board List 06-01-17 Board List 07-21-17 Board List 07-28-17 3. Motion to Approve Minutes of the July 24, 2017 Meeting Attachments: Agenda Item Report 072417RegMtg.pdf 4. Resolution Requesting Permission from IDOT to Close Street for Veteran's Day Parade Attachments: Agenda Item Report Resolution Certificate of Insurance Mayor Miller asked if the Council wished to pull any items prior to a Motion. No items were pulled. A motion was made by Councilman Jerome, seconded by Councilman Brombolich, to approve the Consent Agenda. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 N NEW BUSINESS 1. Northeast Business District Sign Grant Application (Orchard Shell 1900 Vandalia) Attachments: Agenda Item Report City Engineer Memo City Manager Bair mentioned the previous discussion regarding funding from the Northeast Business District (NEBD) for a sign at Orchard Shell. Council asked staff to review the possibility of a monument sign. He referred to the City Engineer's memo regarding his opinion of the placement of a monument sign at this location in which indicated would require site alterations. Staff recommends approving 50% of the sign improvement project. He further suggested placing a moratorium on funding from the NEBD in order to allow for a re-evaluating of policies for future applications. Councilman Stehman agreed with clarifying the restrictions and policies but to honor the current City of Collinsville Page 7 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 request within the current parameters. City Manager Bair clarified the applicant has only submitted an application for the sign improvement and is not prepared to or submitted documentation regarding other improvements. He also indicated that no intent or committment was discussed. Councilman Jerome spoke of the vague guidelines for the NEBD. He recommended a formal moratorium until better guidelines could be established to include performance base standards. He further agreed to approve this application based on the current standards. Corporate Counsel Giacoletto clarified that Council will be voting on the NEBD application and a moratorium will follow at a future Council meeting. A motion was made by Councilman Stehman, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 2. Ordinance Authorizing the City Manager to Sign an Agreement with Archimages for Professional Services - Phase 2 (Planning/Space Program Services for City Hall) Attachments: Agenda Item Report Archimages Assessment of City Hall Ordinance Agreement City Manager Bair advised this ordinance allows the City Manager to enter into a contract with Archimages for professional services not to exceed $24,600. Councilman Stehman commented on the efforts being done to determine improvements and best use of City Hall. Councilman Brombolich agreed. A motion was made by Councilman Brombolich, seconded by Councilman Stehman to approve. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 3. Ordinance Approving Positional Classifications, Salary Ranges, and Performance Based Pay Policies City of Collinsville Page 8 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 Attachments: Agenda Item Report Agenda Item Report Ordinance City Manager Bair advised the ordinance represents directive given by Council from previous discussion. Policy guidelines are included for performance based pay increases. He summarized the guidelines. A motion was made by Councilman Jerome, seconded by Councilman Brombolich to approve. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 4. Ordinance Authorizing a Contract for the 2017 Resurfacing Program - Project #CIP-625-17 through 643-17 to Rooters American in the Amount of $547,691.79. Attachments: Agenda Item Report Ordinance Bid Tabulation Rooter American Bid Proposal Overview by City Engineer Troy Turner indicated bids came in lower than expected. He explained bids were competitive due to minimal IDOT projects. The lowest bid was from Rooters American in the amount of $547,691.79. He further advised a change order will be presented to Council at the next meeting to add additional streets for repairs to allow for the $750,000 budgeted amount. A motion was made by Councilman Jerome, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 O OLD BUSINESS P CLOSED SESSION Mayor Miller asked for a motion to proceed into closed session to discuss in accordance with 5 ILCS 120/2(c): 1. Appointment, employment, compensation discipline or performance of employees 5. The purchase or lease of real property 11. Pending or Threatened or Imminent Litigation City of Collinsville Page 9 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 A motion was made by Councilman Jerome, seconded by Councilman Brombolich to approve. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 Q. ANNOUNCEMENTS R. ADJOURNMENT A motion was made by Councilman Green, seconded by Councilman Stehman to adjourn at 9:03 pm. The motion carried by the following vote: Aye: 5 - Stehman, Jerome, Brombolich, Green, and Miller Nay: 0 Absent: 0 Abstain: 0 City of Collinsville Page 10 Printed on 9/12/2017 City Council Minutes - Final August 14, 2017 ADDRESSING THE COUNCIL DURING SPEAKERS FROM THE FLOOR Below are the rules for input during City Council meetings as set out in Ordinance No. 4765 entitled “Ordinance Governing Speakers From the Floor During Meetings of the City Council and the Commission, Boards, and Sub-Bodies of Collinsville, Illinois”. Speakers may address the Council during the time designated as Speakers From the Floor on the agenda. RULE 1: Speakers shall be allowed only during “Speakers from the Floor,” or at any other time if requested by a member of the City Council. RULE 2: Input must relate to a matter under the authority of the City of Collinsville. RULE 3: Upon request by the meeting Chairman for speakers from the floor, a prospective speaker shall express the desire to speak, be recognized by the meeting Chairman, approach the designated podium, and state their name and general subject matter to which they will address the City Council. RULE 4: After establishing their identity, prospective speakers shall immediately address only the City Council. RULE 5: Each speaker is limited to four (4) minutes to address the City Council. No extensions will be granted and no time shall be compensated to the speaker resulting from interruptions by or discussion with the City Council, City Manager, or any other City officer or employee. RULE 6: Speakers shall address only the City Council collectively or its members individually. Speakers shall speak to issues and shall refrain from personal attacks on City appointed officials and employees. Speakers may not address issues related to pending litigation in which the City or its subsidiary bodies, officers, agents, employees, boards or commissions is a party. RULE 7: Speakers shall not be permitted to advertise, solicit, request, urge, summon, or cajole the City Council or the general public, except as otherwise provided for herein, with regard to any products, goods, services, information, gains, losses, advantages, consequences, or any other similar matter, notwithstanding that there may or may not be any pecuniary, monetary, financial or property gain, loss, or benefit to the speaker or any other person or entity. RULE 8: Speakers shall act and speak with decorum and conform to conventional social manners in speech, writing, dress, and behavior. The audience shall refrain from conduct that disrupts the meeting in any way such as clapping, booing, loud talking or outbursts. A speaker may be immediately terminated at the meeting Chairman’s discretion. RULE 9: Determination of breaches of this Ordinance shall be made by the meeting Chairman. The meeting Chairman customarily will warn the speaker or members of the audience of inappropriate behavior through one warning use of the gavel. Subsequent inappropriate behavior shall result in the immediate removal of the responsible parties at the discretion of the meeting Chairman. City of Collinsville Page 11 Printed on 9/12/2017