Minutes of Regular Meeting
January 5, 2010

Mayor Thomas F. Jones called the Regular Meeting to order on January 5, 2010 at 7:00 pm. The pledge of Allegiance was recited. Present on roll call were Gary Wise, Marilyn Sisson, Harold Ellinger Jr., Pat Timmons, Robert Ostendorf, Gary Law, William Dees and Gene Cailey.

Mayor Jones advised we were moving item #7 on Old Business to Item #1 on Old Business and we would discuss that first as the Ameren Representatives had to leave the meeting early. Dave Kitzmiller from EMC introduced Cheryl Welch of Ameren and her team. Cheryl spoke regarding deregulation and explained the process. Ameren will always distribute the energy no matter what supplier the City decides to contract. Dave then introduced 3 energy suppliers bidding on the electric supply for the City:

Direct Energy-Bob Hermsmeyer spoke and explained his product and savings he could offer the City. Bob is a broker for energy.

Ameren Energy Marketing-Allan Potts explained his product and savings. There is not an evergreen clause nor a force majeur in the contract.

Mid American Energy-Mike Ellis spoke regarding his product and savings. He is
also a broker. His company services 80% of Iowa and some northern Illinois communities. He recommends we get a summary bill to avoid late penalty fees.

Alderman Dees made a motion, seconded by Alderman Cailey to purchase City electricity from the lowest priced third party vendor. After some discussion, Alderman Dees agreed to amend the motion, seconded by Cailey to purchase city electricity from the lowest cost 3rd party vendor for term of contract of 12 months.

The Mayor called for a voice vote on the amendment, motion carried.

The Mayor directed the clerk to call the roll on the amended motion which resulted in the following:
Ayes: Aldermen Wise, Law, Dees and Cailey
Nays: Aldermen Sisson, Ostendorf, Timmons and Ellinger
The Mayor was asked to cast a vote to break the tie and he voted in favor.
Motion carried.

Mayor Jones then recognized the guests. Travis Quance, the President of the Litchfield Chamber of Commerce, Steve Dougherty of the Litchfield Downtown Alliance both spoke in favor or the Council approving the long term economic development fund subsidized by sales tax.


Consent Agenda



A motion was made by Dees, seconded by Cailey to approve the following items on the consent agenda:
Reading of Minutes
Report of City Clerk
Authorization to Transfer Funds and to Pay Bills

A motion to approve a Letter of Intent, if the Park District were to receive a grant, between the City of Litchfield and the Park District to remove sediment from Walton Park Lake. Estimated cost of the project is $250,000 with the City's portion being estimated at $50,000.
A motion to approve the Revolving Loan Fund request to Lioness Inc., DBA Formals in the amount of $50,000 for the purpose of equipment purchase and building rehab at their new location of 1200 North Old Rt. 66 for a term of 7 years at interest rate of approximately 3% with security being provided by a blanket UCC-1 and a mortgage; both security items would be in a second position with Litchfield National Bank in first position as well as personal guarantees by Lisa Brumm and Sharon Hayes.
A motion to approve the reduction of retainer requirement for the Downtown Streetscape Phase I by Korte & Luitjohan from 5% to 2 1/2 % due to completion of the project.
A motion to approve the purchase or lease of a 2009 Chevy Impala 9C1 Police Package squad car on State Contract #4014904, offered through Bill Jacobs Chevrolet in Joliet, to include the transfer of existing and purchasing/installation of new equipment, for use as a patrol car, for a price not to exceed $28,000 from the City's Vehicle Replacement Fund.
A motion to approve an Ordinance declaring a 2003 Chevy Impala as surplus and to authorize the disposal of this vehicle via sealed bid or auction, and for the proceeds of the disposal to be applied toward the purchase of a new patrol unit. (1st Reading)

A motion to approve an Ordinance declaring a 1990 GMC Pickup, a 1985 Buick Century, a 1991 Ford Pickup and a 1989 Ford Escort as surplus and to authorize their disposal as such via public bid or auction, as they have been awarded to the City pursuant to criminal prosecution. (1st Reading)
A motion to approve the renewal membership dues in the amount of $1,539 to the Illinois Hotel and Lodging Association.

Old Business

Alderman Dees made a motion seconded by Alderman Timmons to approve an Engineering Agreement with CMT for the Jackson Street Improvements. Ted with CMT advised there is also a resolution from IDOT which needs to be signed and included in motion.

Alderman Dees made an amended motion, seconded by Alderman Timmons to approve an Engineering Agreement with CMT and sign the resolution for the Jackson Street Improvements.

The Mayor directed for a voice vote on the amendment, motion carried.

The Mayor directed the clerk to call the roll on the amended motion which resulted in the following:
Ayes: Aldermen Wise, Sisson, Timmons, Ellinger, Law, Ostendorf, Dees and Cailey
Nays: None
Motion carried.


Alderman Dees made a motion, seconded by Alderman Cailey to award the Sargent Street Water Main Replacement Construction Contract to Freeman Environmental Services for $187,514.57. Ted LaBelle has checked the references of the low bidder and
they were all positive. Ted recommends awarding the contract to the low bidder.

The Mayor called for a voice vote, motion carried.

Alderman Dees made a motion, seconded by Alderman Ostendorf to approve an Engineering Services Contract with CM&T for the sloughing at Litchfield Lake Dam not to exceed $20,690.

The Mayor called for a voice vote, motion carried.

Alderman Dees made a motion, seconded by Alderman Timmons to approve additional Engineering Services for Wholesale Water Rates Contract with CMT for $2099.75.

The Mayor called for a voice vote, motion carried.

Alderman Dees made a motion, seconded by Alderman Wise to award an Audit Contract to Pritchard Osborne for $13,500 for the year 2010, $14,000 for Year 2011 and $14,500 for year 2012. This is a 3 year contract with an optional renewable 2 year extension.

The Mayor called for a voice vote, Ayes were Wise, Sisson, Law, Dees and Cailey, Alderman Ostendorf and Ellinger abstained. Alderman Timmons voted Nay.

Alderman Dees made a motion, seconded by Alderman Timmons to begin the process to prepare the documents required for the annexation of the remainder of Lake Lou Yaeger in the City of Litchfield, Illinois.

The Mayor directed the clerk to call the roll on the amended motion which resulted in the following:
Ayes: Aldermen Wise, Sisson, Timmons, Ellinger, Law, Ostendorf, Dees and Cailey
Nays: None
Motion carried.

New Business:

Alderman Dees made a motion seconded by Alderman Timmons to approve pay request #29 in the amount of $10,706.33 to Leander Construction for work completed on the Water Treatment Plant.

The Mayor called for a voice vote, all ayes.

Number 2 on the agenda has been scratched.

Alderman Dees made a motion, seconded by Alderman Cailey to enter into an agreement with Vinod Gupta, to purchase property at 704 North Monroe Street. The owner wants his out of pocket expenses, (Taxes and filing fees) and he would deed the property to the City. The City would then proceed with the tear down of property. This is a option to acquire the property rather than filing a lien against the property. City Attorney Hantla estimates the cost at approximately $2,500-$2,000.

Alderman Dees, seconded by Cailey requested to amend his motion to read to enter into an agreement with Vinod Gupta to purchase property at 704 North Monroe Street not to exceed $5,000.

The Mayor called for a voice vote on the amended motion, motion carried.

Alderman Dees made a motion seconded by Alderman Cailey to approve the EDC recommendation to establish a new Long-Term Economic Development Incentive Fund to be funded with general sales tax funds equivalent to the new sales tax of the first 6 months (collected July-December 2009) with the remainder to be evaluated during the budget process on a annual basis.


The Mayor directed the clerk to call the roll on the motion which resulted in the following:
Ayes: Aldermen Wise, Sisson, Timmons, Ellinger, Law, Ostendorf, Dees and Cailey
Nays: None
Motion carried.


Tonya Flannery, Director of Economic Development advised as a point of clarification the motion read and presented to Council is not what the EDC's recommendation.

Alderman Dees made a motion, seconded by Alderman Wise to approve a change order to Korte & Luitjohan for the streetscape concrete winter protection in an amount not to exceed $3,036.68.

The Mayor called for a voice vote, all ayes.

Alderman Dees made a motion, seconded by Alderman Law to approve an ordinance with the proposed fee structure for the 2010 Lake Yaeger boating season. (1st reading)

The Mayor directed the clerk to call the roll on the amended motion which resulted in the following:
Ayes: Aldermen Wise, Timmons, Law, Ostendorf, Dees and Cailey
Nays: None
Abstain: Aldermen Sisson and Ellinger
Motion carried.

Attorney Hantla requested Jim Cadwell review the rates before the 2nd reading.

Alderman Ellinger made a motion, seconded by Alderman Timmons to adjourn the Regular Council Meeting. The Mayor directed a voice vote, all aye, meeting adjourned at 8:45 p.m.


Attest:
Denise M. Lueker
City Clerk

Approved,

Thomas F. Jones
Mayor