Historic Depot 50 North 4Th Avenue

CLERICAL COMMITTEE

MINUTES

Tuesday, June 12. 2007 – 6:30 p.m.

Historic Depot 50 North 4th Avenue

Finance

Alderman Les Carl

Mayor Henize called the meeting to order at 6:30 p.m.

Aldermen in attendance – Eric Schenck, Larry Sarff, Craig West, Les Carl, Jason Strandberg, Sonya Lewis. Absent – Aldermen Joe Berardi, Kevin Meade.

Others in attendance: Mayor Rodney Heinze, City Clerk Nancy Whites, City Treasurer Kathy Luker, City Attorney Chrissie Peterson, Public Works Director Clif O’Brien, Police Chief Jeff Fritz, Fire Chief John Stanko, Wastewater Supt. Joe Carruthers, Water Supt. Greg Pollitt, System Maintenance Supt. Bill Terry, Maurer Stutz engineering Keith Plavec, SRPED Mark Rothert, Joe Ginger Video Services. In the audience from the Journal Star Jenny Freeman, Daily Ledger John Froehling, Democrat Wendy Martin, Fireman Jim Campbell and wife Michelle, Dave Whelan, O’Berlander owner and salesman Kim Shandley.

Bills. Motion and second by Aldermen West/Sarff, all bills as presented refer to council for consideration. The motion carried by voice vote, and was unanimous.

Treasurer’s Report. City Treasurer Kathy Luker commented that the revenues were less than expenditures by $51,994.18. In the General Fund, the expenditures for the budget shows it a little bit differently. The Police budget is a minus of $29,000 as that amount will be used out of the depreciation account against expenses under the Police Department budget. And the same for Street, Garbage and Building & Grounds.

The revenue minus expenditures for the budget items, that was what was approved with a negative $230,476.00, and without contingency the amount was a negative $155,675.00.

Under the Health Care fund we are still negative as we are still paying claims. These are from prior year before we changed from self funding to fully funded insurance. Some other funds show negative and that is because we do not have our tax monies this year.

Clerical Committee 6-12-07

The Bond Account has a balance as of May 31, 2007 $25,885,459.45.

4A Enterprise Park Balance is $109,667.72. IH Balance is $72.05. Last month paid a bill from Bell Boyd & Lloyd of $8,959.35, and those monies had to be transferred from the General fund in order to pay out of the TIF Account.

Motion and second by Aldermen Sarff/Strandberg, refer to council for consideration. The motion carried by voice vote, and was unanimous.

Budget Report. City Treasurer Kathy Luker reported the tax bills will not be received by the citizens until July or August. Because of the shortage of funds,this is partly why our expenditures are more than revenues during the month of May.

Alderman Carl ask Kathy if she sees a problem without receiving the tax payments? Kathy answered, what will happen is the General Fund Prime Account has reserves of $1,734,483.75. She said she will have to transfer those funds to make payments until she receives tax funds.

Motion and second by Aldermen West/Sarff, send to council for consideration. The motion carried by voice vote, and was unanimous.

Outdoor Warning Sirens Replacement. Fire Chief John Stanko gave an overview. The Fire Department received the grant from the Department of Commerce and Economic Development in the amount of $50,000.00. At that time my suggestions was and committee concurred was to receive the best deal on replacing some of the warning sirens. Whelan was the best deal as it met all of our specifications. Brought the price to council for a total quote of $54,134.00. At the Council meeting this was referred back to this Clerical Committee meeting for further discussion. The concern was we should seek quotes from other places. John said he received an e-mail quote from a company in North Little RockArkansas, which was also quoting a Whelan Siren. Many e-mails and conversations back and forth he is a Whelan Dealer and strictly in business to sell sirens. They offer no service and no maintenance. When I called back to question for installation not in the proposal, he proposed using a sub contractor in Jacksonville which he quoted was qualified factory trained installer. So I asked him to give a quote on installation, which he did and it added additional $5,500 to his bid. I also ask about shipping prices, and he would not confirm a set price due to fuel and gas prices.

Clerical Committee 6-12-07

Made contact with David Whelan who is the regional manager for Whelan and he is here this evening if you have any questions.

The long and short of it is the guy in Jacksonville was a former employee of Whelan Dealer in Jacksonville. David Whelan told John he was not factory trained and not factory authorized.

Ask the same company about Ragan Communications quote which included the first two years of labor in his proposal, which the standard Whelan warranty does not cover, only covers parts.

My opinion, given the sub contractor is not authorized I have serious concerns come 6 month to a year he would be out of business.

Received a call from American Signal, their proposal was electronic siren on the directional. It is less expensive then Whelan proposed by several thousand dollars. However, digesting that proposal it is not as loud, only rated 4800 feet. Ragan siren is rated 6,000 feet. American warranty is not as good, only 2 years on parts. No labor, then it expires at end of 2 years. Only labor included is their shop in MilwaukeeWisconsin. It also did not include in their proposal which was part of our requirement for the electric services.

We ought to endeavor to improve the level of protection to the community. John Stanko said he still stands by his original proposal. We know Whelan’s history.

Motion and second by Aldermen Sarff/Strandberg, to send the recommendation for Ragan Communications proposal in the amount of $54,134.000 and refer to council. Discussion. Alderman Carl told John Stanko he gave an excellent presentation. Alderman Schenck stated he was very pleased about getting the $50,000 grant to buy top quality equipment. Eric told John he did a commendable job. The motion carried by voice vote, and was unanimous.

Leander Construction Pay Estimate #11 for Kilroy Pumping Station at $53,436.65. Maurer Stutz Inc. representative Keith Plavec mentioned this is for the Wastewater Collection System Improvements for Kilroy Pumping Station. Motion and second by Aldermen Sarff/Strandberg, the approval of Pay Estimate #11 for Kilroy Pumping Station of $53,436.65and refer to council for consideration. Discussion. Keith Plavec reported that $100,000 is left for site work, and we’re still holding $74,089.00 for retainage. Will

Clerical Committee 6-12-07

continue to hold 5% until completion which should be in July. The motion carried by voice vote, and was unanimous.

Illinois Municipal League Risk Management Association annual payment amount of $195,288.36 for ½ payment on Liability Insurance. Motion and second by Aldermen Sarff/West, to approve 2007 Annual Contribution for ½ payment that is due on June 15,2007 in the amount of $195,288.36, and refer to council for consideration. City Treasurer Kathy Luker mentioned this includes 2% interest of $7,658.37 that was added on October 13, 2006 when the first payment was due. The motion carried by voice vote, and was unanimous.

Layne Christensen Company for Phase 1 & 2 of the Ranney Collector Well Study for invoice total of $45,222.00. Motion and second by Aldermen Sarff/West, to approve payment of$45,222.00 to Layne Christensen Company for Phase 1 and Phase 11 of the Ranney Collector Well Study, an refer to council for consideration. Discussion. Keith Plavec, today the committee that everything looks positive. He is recommending payment. The motion carried by voice vote, and was unanimous.

Hotel/Motel Funds for Administration. Alderman Carl said this would be discussed later in a different committee.

Jetter Truck. Public Works Director Clif O’Brien mentioned that him and a few of other city employees went to check out the State Purchasing Program. We looked at all the options. Would take 6 to 8 months for delivery. They will take our mechanic an train him for a week. Probably would receive the truck in January of next year. Our recommendation is the State Purchasing Program at the cost of $277,986.00. Alderman Sarff asked how long is the quote for? Clif O’Brien said not to wait on buying the truck. Alderman Carl thought maybe checking out leasing or borrowing the funds. Alderman Carl suggested City Treasurer Kathy Luker to check out the best method of paying for the truck.

Motion and second by Aldermen Sarff/West, direct city treasurer to work with staff for best proposal on financing. The motion carried by voice vote, and was unanimous.

Clerical Committee 6-12-07

Preliminary/Construction Engineering Service Agreement forAsh Street for Phase 2 in the amount of $19,000. Motion and second by Aldermen Sarff/West, to refer the request to council for consideration. Discussion. Maurer Stutz Inc. representative Keith Plavec mentioned this is Phase 11 Ash Street Improvements (North Main to east of Third Avenue) for Construction Phase Services for MFT work. The motion carried by voice vote, and was unanimous.

Construction Engineering Resolution for Ash Street Phase 11 in the amount of $19,000. Motion and second by Aldermen Sarff/West, to refer the request to council for consideration. Discussion. Maurer Stutz Inc. representative Keith Plavec mentioned this resolution approved of IDOT taken the funds out of the city’s account of $19,000.00 for MFT Funds. The motion carried by voice vote, and was unanimous.

Improvement Resolution for Ash Street Phase 11 in the amount of $235,000. Motion and second by Aldermen Sarff/West, to refer the request to council for consideration. Discussion. Maurer Stutz Inc. representative Keith Plavec mentioned this is for construction on Ash Street. The motion carried by voice vote, and was unanimous.

Preliminary/Construction Engineering Services Agreement for 15th Avenue in the amount of $30,000. Motion and second by Aldermen Sarff/West, to refer the request to council for consideration. The motion carried by voice vote, and was unanimous.

Construction Engineering Resolution for 15th Avenue - $30,000. Motion and second by Aldermen Sarff/West, to refer the request to council for consideration. The motion carried by voice vote, and was unanimous.

Improvement Resolution for 15th Avenue - $240,000. Motion and second by Aldermen Sarff/West, to refer the request to council for consideration. The motion carried by voice vote, and was unanimous.

Proposed new phone system for Police Department. Police Chief Jeff Fritz mentioned that Mayor Heinze had approached him about a new phone system for city hall administration, police department and water department

Clerical Committee 6-12-07

that could save the city some money. Jeff invited Dave Oberlander who is the owner of VOICE Spring phone services out of Peoria. Kim Shadley salesperson presented that they offer two parts through Voice Spring which is Voice Internet Service. The second offer is a Voice Phone System. We had installed an Evolution phone system which is an IP system at the Chamber of Commerce, with voice phone service. Mayor Heinze contacted our office of his interest. We can save city hall administration, police department and water department $423.00 per phone. Our goal was this would help pay for a new phone system. Will replace additional phone service you currently have now with 29 phone numbers and 20 VoIP connections totaling $950.00. You will keep your current 6 fax lines at $25.00 per connection totaling $200.00 which will continue to appear on your current AT&T bill. With this option you will save $423.00 per month and $5,076.00 annually. This quote is contingent on you installing a PRI interface to your current phone system. Proposed Labor – Labor Hours 4 at $100 Per Connection. Total of $400.00. Proposed Materials NRC Total Access 904 quantity 1 at $750.00. Proposed Services VoIP MRC Digital Delivery VoIP Lines quantity 20, Price unit $30.00, total of $600.00. T-1 MRC 1.54 Mbps Dedicated to Voice Connections. Quantity 1 Price Unit $350.00, for a grand total of $950.00. will be voice internet. We do not offer to residential just businesses. This offer excludes the 911 equipment.

To replace the phone system the cost is $22,232.90 which includes installation, training and can reduce that amount by $4,000 if we deemed the wiring you have now in place could support our system. This has not been determined yet.

Lease pricing $582.36 per month. Your current phone system is under Telrod Avanti. For our system to work, you don’t have to replace your phone system that’s on it. But you have to upgrade it to a certain card that has to interface with our phone lines at a cost of $3,700.00. No longer are they a dealer and they cannot give parts. Your paying more as they’re our of state in ChesterfieldMissouri. Mayor Heinze mentioned our internet goes down occasionally, what happens with your system when internet goes down? Kim answered, we have reroute calls to what particular number’s we have programmed to do so. We no when it’s down, you don’t have to call us. One lead number you need to keep in each department, then your lead number would always be working. Our lines would roll over to cell phones.

Clerical Committee 6-12-07

Alderman Sarff asked the mayor what prompted this? Mayor Heinze said the Chamber of Commerce had this system and it looked good. Wasn’t wanting to spend the time to be diligent on this. The hardware phone was not what he was looking at originally. If we don’t want hardware, so then we looked at the software.

Alderman Sarff asked how old is the phone system. City Clerk Nancy Whites commented about 6 years.

Mayor Heinze said if we get to the point of wanting to buy the hardware it would be worth it to us to buy a second CPU that had never been used and have it sit right beside next to a computer for when the phone system fails.

Kim said the second quote is – Install and program the Evolution PBX Telephone System. This quote includes the System with IP phones. In addition, I have included dropping cables to accommodate the IP phones at each station. If cable drops are not necessary it will reduce your amount by $4,025. this quote will also reflect training on the new phones. Grand total with Material and Installation equals $22,232.90. Lease option available for $562.36 per month for 60 months. Labor at $2,187.50. Proposed Materials cost $14,970.40. Proposed Services $5,075.00.

Kim mentioned the city’s current phone services is with CT Innovations and they are no longer Telrod Avanti dealers. Parts needed for the phone system would be used parts and come with only a 90-day warranty.

Police Chief Jeff Fritz worked out the following:

Current System Purchase New Lease New

System System

Proposed CostsProposed Costs Proposed Costs

Digital Interface - $3,709.00Labor/Materials – $22,232.90 Lease Option – $33,741.60

Labor/Material - $1,150.00 60 Months @ $ 562.36

Proposed SavingsProposed Savings Proposed Savings

Services - $5,076.00Services - $5,076.00 Services - $ 5,076.00

Proposed BenefitsProposed Benefits Proposed Benefits

Clerical Committee 6-12-07

1st Year Savings $ 217.004.3 Years $ .00 5th Years ($1,672.32)

After lst year $5,076.00After 4.3 years $5,076.00 6th Years ($3,285.60)

7th Year $1,790.40

After 7th Year $5,076.00

Kim also said that this plan is not for the 911 system.

Alderman Carl ask Police Chief Jeff Fritz what he recommended and he answered, the voice internet service.

Alderman Sarff said since we are not having any problems with the current system this would be the way to go. Money saved would be for the upgrades in the future.

Motion and second by Aldermen Sarff/Strandberg, refer to council for consideration. The motion carried by voice vote, and was unanimous.

Legal & Ordinance

Alderman Craig West

Ray Rumler/Jeff Williamson property for discussion. Jim and Michelle Campbell are wanting to purchase the property located at 124, 128, 132, South Avenue H and 810 West Pine. Jim said their lawyer has been in touch with city attorney Chrissie Peterson about this property. The city had demolished the structures on the property due to health concerns. There are outstanding liens for demolition cost, and also $414.00 for water/sewer liens on the property. Our attorney wants to negotiate a monetary amount for the city portion of their lien. We are not looking to pay the entire amount of the lien as it is $7,814.86. A great deal of tax liens on the property dating back to 2001. Not sure about 2006 taxes. Don’t know if there are outstanding Mobile Home taxes on the trailer that sat on the property. As far as the monetary amount on the taxes, we are looking at double figures on those. That is something will have to incur as well as legal fees. We’re trying to keep the cost down so we can develop the property. We’re looking at building a couple of duplexes with one stall garages.