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, September 11, 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: 4 - Councilman Cheryl Brombolich, Councilman Donna Green, Councilman David Jerome, and Mayor John Miller Absent: 1 - Councilman Jeff Stehman C. INVOCATION Delivered by Pastor Brent Johnson of Navigation Church. D. PLEDGE OF ALLEGIANCE Recited. E. PROCLAMATIONS/RECOGNITION/PRESENTATIONS F. BUSINESS PRIOR TO PUBLIC INPUT G. COUNCIL DISCUSSION 1. Villas of Holly Brook Redevelopment Agreement and Request for Project Incentives City of Collinsville Page 1 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 Attachments: Staff Memo Draft Redevelopment Agreement Villas of Holly Brook Pro Forma Approved Site Plan Project Narrative Presentation Economic and Supplemental Information Staff Report 08-14-2017 City Manager Bair advised this discussion is a carryover from last meeting and indicated the item is listed under New Business at the applicants request. He gave a brief overview of the property and project. He advised the property is 3.8 acres on N. Bluff Road and has been rezoned. The applicant presented plans on August 14 for an assisted living and memory care facility consisting of 60 units/71 beds and 60 employees with annual salary of $25,000 - $50,000. Total development cost estimated at $7 million. The applicant requested $750,000 in TIF assistance which represents 10.7% of development costs and about 39.3% of TIF eligible project costs ($1.9 million total). He spoke of the intent of the Southwest Corridors TIF was to focus incentives on infrastructure (stormwater, utilities). He spoke of the TIF eligible cost analysis. After August 14 discussions, a revised approach concluded $341,000 (4.9% of project costs and 17.9% of TIF eligible costs) with regards to regional infrastructure improvements. He displayed a table ranging from 0% to 50% of TIF reimbursement related to the revised TIF project costs. He further advised the report will focus on the consistency of the proposed development in comparison with the City's vision for the area, revenue implications, best use for the property, regional infrastructure, qualify of facility and City population. He explained the Council's intent of enacting a TIF and Business District for the area which included uses that generates commercial sales tax revenues. This proposed development does not generate such revenues. The applicants commented that they plumbed the facility to house a multi-family unit. The specific land use is not within the scope for TIF incentives or best land use. He mentioned TIF funds should not be used for residential type land uses. He indicated that although the development would generate property taxes, the level would be substantially less than a retail type development. The applicant estimated the property taxes to be $233,000. City Manager Bair spoke of property taxes generated by other assisted living facilities of Holly Brook. He also mentioned the implications should the property be sold to a not for profit organization at a later date. He mentioned the highest and best use for the property to includes uses that generate revenues (property and sales tax) for the City. He mentioned potential land uses for this parcel. He indicated utilities are only being extended to serve this project and not the surrounding area. He also refuted the comment made by the applicant with regards to decreased population should the development not occur. Lastly, he summarized his report indicating the proposed development is not consistent with the City's vision for the property, will not generate revenues as expected for a TIF and Business District area, cannot be described as the highest and best land use, infrastructure improvements are not regional in nature, incentives should not be associated with increased quality of development, and failing to grant City of Collinsville Page 2 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 incentives for this project would not result in a population loss for Collinsville. Based on this information, City Manager Bair advised he is recommending no financial incentives to be awarded for the development. Councilman Brombolich inquired of infrastructure extensions for adjoining properties. Public Works Director Dennis Kress identified the water main closest to the property. City Manager Bair clarified the question and indicated they are not extending the water main to the adjacent property. She also inquired of stormwater to which City Manager Bair explained it is on site detention for their development. Mayor Miller inquired of TIF funds for other development projects by Phillips Investments. City Manager Bair advised a project received TIF funds and another was to receive a fee relief but the development did not occur. Mayor Miller asked the developer if had it not been for the possibility of TIF funds, would they still come to Collinsville and Reginald Phillips advised they would not have. Mr. Phillips introduced himself and his company. He mentioned various sites that were within a TIF district. He distributed an aerial map of the property and information on senior housing. He spoke of the property's elevation issue and lack of infrastructure. He spoke of the demand for senior housing as well as memory care. He indicated the facility is designed for senior living. He also advised he was unsure as to how the idea came about that it could be converted into a multi-family housing. Councilman Brombolich advised Mr. Phillips that his son said it could be converted into multi-family during his presentation at the August 14th meeting. Mr. Phillips advised that was apparently a misunderstanding on his son's part. Hadley Phillips elaborated on his presentation comments. Mr. Phillips explained that the memory care wing does not have a kitchen facility but has roughed in plumbing for future kitchen. Mr. Phillips compared the proposed development with that of his Gibson City facility. He indicated the Gibson City facility is 42% smaller. He spoke of the site consisting of 3 acres of usable space due to the ravines. He indicated the inability and obstacles to build a retail establishment on this parcel. He mentioned generated sales tax from the development. He spoke of his development to employ 65 people as well as using local contractors. Councilman Jerome inquired as to how much sales tax would be generated to which Mr. Phillips estimated $75,000 to $100,000. Mr. Phillips spoke of the TIF program and indicated he is asking for a portion of taxes generated by the improved development as a reimbursement to help offset the cost of the development. He indicated they originally requested $750,000 but is willing to work with the City on a reasonable reimbursement amount. Next, Mr. Phillips spoke of the water line extension and was of the understanding the extension was City of Collinsville Page 3 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 for the property to the east. He indicated an easement was included as requested. Councilman Brombolich clarified that the TIF funds being requested is a reimbursement based on the property taxes generated due to an increase in the EAV which is after the development is done. Councilman Jerome advised that no contingency of TIF money was indicated when the project was presented to the Planning Commission. He further expressed his opinions on tax increment financing. He indicated he sees the use of TIF as an investment and should be attached to generated sales tax. He expressed concerns regarding the lack of sales tax generated from the development. He asked Mr. Phillips to provide the City with projected sales tax revenue information. Mr. Phillips spoke of sales tax generated from a box store in comparison to what his company does. He indicated his development and the employees would offset what a box store could generate. A discussion was had between Mr. Phillips and Councilman Jerome regarding the site and surrounding area for retail development. 2. Non-Owner Occupied Water Account Liability Attachments: Staff Memo Staff Report 07-10-17 Exhibit A Water Account by Status Exhibit B Southwest Illinois Municipal Water Account Joint Liability Code and Deposit Review City Manager Bair gave an overview regarding water account liability issues. He indicated the City has 11,447 water accounts and of those 23% are classified as non-owner occupied. He advised that does not mean 23% are rental but the water account is not in the same name as the property owner. He advised out of the total delinquent amount of $185,000, non-owner occupied delinquency amount to more than $128,000 or 69.4%. He further noted the delinquent amounts are after the deposit amount was applied to the account. Finance Director Tamara Ammann clarified these are delinquent accounts and not active water accounts that were turned off because account holder was behind on payments. He mentioned account liability for surrounding municipalities. Staff is recommending similar language to that of surrounding cities for joint and severed liability in order to work with the property owners. He spoke of required deposit amounts and indicated Collinsville is the second highest at $150 for non-owner occupied. He indicated the City would need to bring the deposit up to $325 ($175 increase) to take care of 68% of delinquencies as the median delinquent amount is $308.59. Increasing the deposit may be problematic in securing tenants as it would be much higher than other municipalities. Staff recommends one deposit requirement based on residency but to maintain the two separate deposit amounts split between owner occupied and non-owner occupied. City Manager Bair spoke of suggested customer service policies that will allow for better City of Collinsville Page 4 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 communications between the property owner and the City: Property owners will have the right to access account information. Staff will provide proactive communications with all property owners regarding the status of accounts on properties under their ownership and property owners will be encouraged to contact Staff regarding lease terminations. Duplicate copy of final bill will be sent to property owners. Send statement to property owner for payment after tenant was given 28 days to pay. Subsequent tenants for the same address would not be allowed to establish service if delinquent amount remains. Real property would be subject to a lien after the owner was given an additional 28 days to pay. Refund deposit on non-owner occupied properties with accounts in the property owners names in same manner as owner-occupied accounts. Non-owner occupied accounts to automatically revert back into property owners name without action by the owner as long as the account is in good standing at time of closure. A discussion was had regarding a deposit from the property owner when the property reverts back. City Manager Bair highlighted the advantages of automated water meters which would improve billing cycle, permit consumption on demand, and allows for customers to monitor usage and identify leaks. He further explained that water department employees (meter readers and billing) would be reallocated to other responsibilities. He summarized the presentation and proposed program. He indicated the ordinance would come back for a vote under New Business based on Council's direction. H. SPEAKERS FROM THE FLOOR Robert Thiel advised he got information from the county regarding TIF and his property taxes. They informed him TIF is retroactive for the year. He asked about the effective date of the Business District. He mentioned developers who request incentives needing to utilize local banks. He spoke of the assisting living facility. Susan Bailey spoke of the water bills. She indicated the billing cycle is problematic due to the lapse in time. Phil Astrauskas thanked Councilman Jerome for his willingness to listen. He spoke of the water accounts and asked about trash fees and bi-monthly billing option. Janet Schultz thanked Councilman Jerome for responding to her question with regards to additional Council members and asked other Council member to reply. Galen Patterson spoke of the water account issue and billing. City of Collinsville Page 5 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 Phil Astrauskas Jr. spoke of water bills and suggested bi-monthly bills with the second month being prorated. Linda Rayho thanked the Council for consideration and open discussion regarding issues. She spoke of the Maag property. She spoke of her business as a realtor. She indicated a senior facility would be beneficial. She spoke of changes within the retail industry. Scott Rayho spoke of the water account issues and thanked Council for discussions. He spoke of automated meters as an investment in infrastructure. I. COMMENTS & ANNOUNCEMENTS - MAYOR Mayor Miller spoke of the anniversary of 9/11. He thanked Officer Mike Brown and his wife Mary Ann for organizing the 6th annual hill climb at Cahokia Mounds in remembrance of the tragic event. J COMMENTS & ANNOUNCEMENTS - COUNCIL MEMBERS Councilman Brombolich addressed some of the questions brought about during Speaks from the Floor. She inquired of the billing cycle for a final water bill to which Finance Director Ammann indicated a final bill is mailed out within the week the water department is notified and given 28 days to pay. Director Ammann elaborated on the issue and indicated some people fail to tell the water department they are leaving and skip out on paying the final bill. Councilman Brombolich spoke of Mr. Astrauskas' concern of automatically putting the account back into his name. She spoke of the trash service fees being included in the water account bill. She also inquired of monthly billing with an estimated bill every other month. Director Ammann advised that monthly billing is doable but would require a significant amount of staff time. Councilman Brombolich also spoke of the probability of online account access. Councilman Brombolich also addressed the issue regarding a larger Council. She indicated Mr. Astrauskas visited her at her place of employment with the same question to which she answered him and thought she (Ms. Schultz) already knew her response. Councilman Brombolich agreed that the Council size should be increased. She spoke of the Villas of Holly Brook and indicated Council is not questioning the need for that type of facility but whether or not the project qualifies for TIF incentives. She also indicated she is not prepared to vote of the TIF incentives yet. Councilman Green indicated she previously answered Ms. Schultz's question regarding increasing the members of the Council but indicated she may need more information to form her opinion. She is researching information to determine what constitutes a larger Council size. She spoke of the assisted living facility and whether or not TIF incentives should be awarded. Councilman Jerome thanked several individuals for meeting with him regarding the water account liability issue. He indicated discussing issues may lead to longer meetings but are beneficial for all City of Collinsville Page 6 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 involved. He spoke of the Italian Fest and parade. Mayor Miller spoke of the City's form of government which was chosen by the citizens versus that of the former Commission form of government. He explained the different forms of government and Council size for each. He indicated he is satisfied with the Council size as it adheres to state statute. He further indicated he had already responded to a similar question from someone else and thought Ms. Schultz knew his opinion on the matter. K. COMMENTS & ANNOUNCEMENTS - CITY STAFF City Manager Bair asked Finance Director Ammann to address questions regarding the TIF and Business District. She advised the Southwest Corridors TIF was established in July 2016 and is the 4th TIF district in the City. Since properties are only accessed once a year, the first year's increment would be the difference between EAV from previous year (2015) to the end of the 2016. She also advised the Southwest Corridors Business District was also established at the same time which is the 7th business district for Collinsville. She further advised that the Illinois Department of Revenue allows for 2 times per year to implement new sales tax. Since the business district was established after their July 1 deadline, the sales tax was implemented January 1, 2017. She further explained that the City does not receive sales tax funds until 4 months after the sales tax is collected which may have caused some confusion when she previously explained the process. She spoke of the different sales tax rates within different sections of the City. The base rate in Madison County is 8.1% and St. Clair County portion is 8.6%. She explained that establishments within a business district add 1% sales tax and establishments within the 157 corridor has a 1% food and beverage tax. City Manager Bair indicated water account billing cycle information and estimated billing will be discussed among staff and brought back for discussion. Mayor Miller addressed Mr. Thiel's comments and advised that Colton's never requested nor received City incentives. L. CONSENT AGENDA City Clerk Wasser read the Consent Agenda. 1. Motion to Approve Payment of Bills for the Period Ending September 1, 2017 in the Amount of $326,680.05 Attachments: Agenda Item Report Board List 08-25-17 Board List 09-01-17 2. Motion to approve Payroll for the periods ending August 25, 2017 and August 31, 2017 in the amount of $544,932.64 City of Collinsville Page 7 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 Attachments: Agenda Item Report Board List 08-25-17 Board List FF Bonus 08-31-17 3. Motion to Approve Minutes of the August 28, 2017 Meeting Attachments: Agenda Item Report 082817RegMtg.pdf 4. Resolution Requesting Permission from IDOT to Close Street for Fall Festival Attachments: Agenda Item Report Resolution Fall Festival Request Form.pdf Fall Festival Insurance Certificate.pdf 5. Resolution Reappointing Members to the Collinsville Metropolitan Exposition Auditorium and Office Building Authority (Schusky and Kinamore) Attachments: Gateway Recommend Ltr Reappt Schusky Kinamore.pdf Resolution 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 Brombolich, seconded by Councilman Green, to approve the Consent Agenda. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 M. NEW BUSINESS 1. Ordinance Authorizing the Mayor to Execute a Redevelopment Agreement Between the City of Collinsville and Phillips Investments, LLC (Villas of Holly Brook) City of Collinsville Page 8 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 Attachments: Staff Memo Ordinance Proposed Redevelopment Agreement Villas of Holly Brook Pro Forma Approved Site Plan Project Narrative Presentation Economic and Supplemental Information Staff Report 08-14-2017 A motion was made by Councilman Jerome, seconded by Councilman Brombolich to table. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 2. Ordinance Authorizing the Mayor to Sign a Real Estate Purchase Agreement (400 W. Juda) Attachments: Agenda Item Report Ordinance Purchase Agreement Legal Description Exhibit A Map Public Works Director Dennis Kress advised Council that this ordinance would authorize the Mayor to sign an agreement to purchase 19.8 acres at 400 W. Juda in the amount of $283,000. If approved and purchased, the City will build a salt shed and store equipment and materials on the property. He further explained that the City is in violation of EPA regulations as we do not have a shed over our salt. The shed has been in the budget since at least 2012. The property is centrally located which will allow for efficiency during snowy weather, expansion and storage of the Shuttle Bus and EMA vehicles/equipment. The sale is contingent of an environmental survey. City Manager Bair elaborated that this property is well screened and allows for equipment and materials to be stored instead of the Rt. 159 frontage location. Councilman Jerome inquired of the new design on the salt shed. Director Kress explained the original plan was to build a stick building with a shingled dome roof but recently found a durable vinyl tent type shed that is less expensive and comes with a 30 year warranty. City of Collinsville Page 9 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 A motion was made by Councilman Jerome, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 3. Ordinance Repealing and Replacing Ordinance 17-59 (Salary Ranges for Full-Time and Part-Time, Non-Union Personnel) Attachments: Agenda Item Report Ordinance Ordinance 17-59 Stacey O'Brien, Human Resource Coordinator, explained this ordinance establishes an additional part-time classification to address part-time 9-1-1 dispatchers. A motion was made by Councilman Brombolich, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 4. Ordinance Repealing Ordinance 4429 and Section 9.16.020 of the Collinsville Municipal Code Entitled Sagging Pants Attachments: Agenda Item Report City Manager Knabel's Memo 2011 Strategic Session Report 2011 Agenda Item Report Article from Illinois Lawyer Now, Spring 2012 Ordinance 4429 Ordinance Repealing Ordinance 4429 City Manager Bair advised, at the request of Councilman Jerome, this ordinance repeal is being proposed. He explained the ordinance and indicated it prohibited the wearing of sagging pants, 4" below the hip. Previous City Manager Knabel and former Police Chief Williams were not in favor of the ordinance when proposed has never been enforced by the Police Department. He spoke of continuous inquiries as this being 1 of the top 10 "stupid laws" on the books. Staff recommends repeal. City of Collinsville Page 10 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 Councilman Jerome indicated resources should not be spent on something which is a fashion issue and difficult to regulate. He indicated this was an ordinance he identified during his campaign as needing to be repealed. A motion was made by Councilman Jerome, seconded by Councilman Brombolich to approve. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 5. Ordinance Authorizing Expenditure of TIF Funds (Gateway Center, 1 Gateway Drive) Attachments: Agenda Item Report Ordinance TIF Application Bid Tabulation Overview by City Manager Bair, who advised this is a request for TIF funds for the replacement of 2 rooftop HVAC units for the Gateway Center at $90,843. He indicated the request is typical and less than other requests. Staff recommends approval and Executive Director Cindy Warke of the Gateway Center is present to answer questions. Councilman Jerome commented on the importance of keeping Gateway viable. Mayor Miller agreed. A motion was made by Councilman Brombolich, seconded by Councilman Jerome to approve. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 N. OLD BUSINESS O. CLOSED SESSION Mayor Miller asked for a motion to proceed into closed session to discuss in accordance with 5 ILCS 120/2(c): 2. Collective bargaining 11. Pending or Threatened or Imminent Litigation A motion was made by Councilman Jerome, seconded by Councilman Brombolich. to approve. The motion carried by the following vote: City of Collinsville Page 11 Printed on 11/6/2017 City Council Minutes - Final September 11, 2017 Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 P. ANNOUNCEMENTS Q. ADJOURNMENT A motion was made by Councilman Green, seconded by Councilman Jerome to adjourn at 9:12 pm. The motion carried by the following vote: Aye: 4 - Brombolich, Green, Jerome, and Miller Nay: 0 Absent: 1 - Stehman Abstain: 0 City of Collinsville Page 12 Printed on 11/6/2017 City Council Minutes - Final September 11, 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 13 Printed on 11/6/2017