City Council Meeting Minutes

CITY OF FULTON
BUDGET WORKSHOP
MARCH 21, 2015

Mayor Russell called the meeting to order at 8:00 AM and directed the city clerk to call the roll. On roll call Ald. Barb Mask, Gene Field, Dan Nederhoff, Sue Van Kampen, and Mike Van Zuiden answered “present.” Those absent were Ald. Margaret Crosthwaite, Wes Letcher, and Howard Van Zuiden. Also in attendance were Ed Cannon- City Administrator, James Rhoades- Chief of Police, Dan Clark-Public Works Director, Melissa Wiebenga- Tourism/Community Services Director, Tammy Garibay- Utility Clerk, and Casey Simpson- Patrol Officer.

The pledge of allegiance was recited. No invocation was given.

There was no communication from visitors.

Mayor Russell asked PW Director Clark to review insurance Option 1 provided on the handout. Option 1 is a High Value Plan and was proposed by the insurance committee which had 100% employee coverage, $75/pay period for spouse, Child- $15 base amount plus $14.32 per child/pay period. City Administrator Cannon explained the other three options which included a 100/50 High Value plan (Option 2), a 100/50 Affordable Plan (Option 3), and a 90/75 Affordable Plan (Option 4). Administrator Cannon explained that even with the proposed Option 1 plan there is still a $16864 deficit, it’s unpredictable because it depends on exact coverage levels and it’s not equitable for those with more dependents. PW Director Clark said the 100/50 would be a large hit for employees with several dependents. Mayor Russell reminded the Council that according to a healthcare survey conducted with our neighboring communities, the city of Fulton is the outlier and our peers have already faced the struggle of increasing healthcare rates. Administrator Cannon also shared that there is reserves earmarked for healthcare increases in the future. Clearly, now is the time to utilize those reserves to help employees ease into the increase over the next two to three years. All Aldermen agreed a change needs to be made. Administrator Cannon recommended Option 4 because it’s equitable and affordable and the health reserves would be available 2-3 years out. Ald. Mask said she likes Option 3 which uses 60% of reserves the first year rather than 45% in Option 4. Ald. Mask motioned, seconded by Ald. Van Kampen to approve using Option 3 for employee contribution levels. Roll call vote/ 5 yes, 3 absent/ motion carried. Mayor Russell clarified that with Option 3 the reserves will not help as much in year 2 and certainly not in year 3. Ald. Mask motioned, seconded by Ald. Van Kampen to have the City Administrator draft a policy that can be used going forward so they are more efficient in this process. Roll call vote/ 5 yes, 3 absent/ motion carried.

Second item for consideration is the possibility of raising the utility tax rate. In 2012 Fulton established a 2.5% Municipal Utility Tax on natural gas and electricity. Illinois statutes limit utility tax rates to 5%. Fulton’s Utility Tax generates $123,000 and represents 7.8% of Fulton’s General Fund revenues. Raising the Utility rate to 4% will generate approximately $75,000. Ald. Mask was concerned about raising the rate since property taxes increased 1.7% and water/sewer rates will increase. Administrator Cannon said since the city isn’t selling land, they need a way to generate funds to service the loan on the Industry Center. It was decided to hold another budget workshop for March 30th at 5:30PM.

With no further business, Ald. Mask motioned, seconded by Ald. Van Kampen to continue this meeting on March 30th at 5:30PM. With voice agreement, the meeting adjourned at 9:26 AM.

Minutes recorded by,

Jackie Wilkin
Fulton City Clerk

CITY OF FULTON
Regular City Council Meeting
March 16, 2015
5:30 PM

1. Call to order

2. Roll call

3. Pledge of allegiance

4. Communication from visitors

5. Approve March 2, 2015 Regular Council Meeting and February 7th Budget Workshop Meeting minutes (pages 1-5)

6. Approve Bill List

7. Approve Treasurer’s Report (pages 6-13)

8. Items for Consideration

A. April 2nd, 2015 Junior Achievement Day Proclamation (Page 14)

B. Parade and Event Parking Guidelines recommendation (Page 15)

C. ORDINANCE AMENDING THE RATES, CHARGES AND FEES FOR WASTEWATER TREATMENT SERVICE IN SECTION 50.04 (A) and WATER SERVICE IN SECTION 51.065Water/Sewer Rate (pages 16-17)

• Summary: This ordinance enacts the water/sewer rate increase approved by the City Council during the February 23, 2015 Regular City Council Meeting. The new rates go into effect April 21, 2015 and will be reflected in Fulton water customer’s June 1st water bill.
• Action: Approve Ordinance

D. Multi-family Housing Opportunities

• Summary: Two developers have expressed interest in developing Section 42 Senior housing in Fulton. Both developers are requesting the City Council confirm the proposed development meets city approval and that the City of Fulton will negotiate the purchase of the city-owned property should the developer obtain Tax Credits from the Illinois Housing Development Authority. The deadline for applying for Section 42 tax credits is March 27, 2015. (pages 18-20)
• The first developer, Bear Development from Kenosha, WI, is interested in the old JT Cullen site. The developer is asking whether the City of Fulton is willing to rezone to property form Industry to Multi-Family and, if so, to agree negotiate a purchase agreement for the property.
• The Second developer is Brian Fritz with Pioneer Property Management, Inc. Mr. Fritz is interested in developing senior housing by the Fulton Marina. Mr. Fritz is inquiring whether the Fulton City Council would consider a land package that includes the boat repair facility and surrounding land, as well as the two ball fields in Kiwanis Park. Mr. Fritz is also inquiring if Fulton is willing to relocate the two ball fields and rezone the land from Industry to Multi-Family.
• Action: Affirm each development proposal meets with city approval relating to rezoning and the assembly of land for the purpose of developing Section 42 Senior Housing.

9. Old Business

10. Reports

• Mayor - (page 21)
• Administrator - (pages 22-30)
• Chief of Police – (page 31)
• Tourism/Community Services Director (pages 32-33)
• Marina Committee
• Aldermen Reports

11. Closed Session to Discuss Collective Bargaining Matters

12. Return to Open Session

13. Adjourn

Budget Workshop
March 14, 2015
8:00 AM

1. Call to Order

2. Roll Call

3. Pledge of Allegiance

4. Communication from Visitors

5. Items for Consideration:

A. Budget Workshop

1. Municipal Revenue Options

2. 2016 Project List: Vision 2020, Peace Corp Fellow

6. Adjourn

March 14, 2015

City of Fulton
Budget Workshop minutes
Call to order, 8:00a roll call, H.VanZuiden, M, VanZuiden, Letcher, Russell, Nederhoff, Field, Mask, present, VanKampen and Crosthwaite absent. Also in attendance, Dan Clark Director of Public Works, Jim Rhoades Police Chief, Melissa Wiebenga Tourism/Community Services Director.

Cannon presented 2016 budget options, one would be to use reserves to pay 2012c bonds, talked about budget shortfalls. Costs of vision 2020 to CRDC. Cannon went over general fund revenues and where they come from stating property taxes are the general funds number one revenue source. Field asked about TORT insurance, an explanation followed, Mask inquired about the municipal utility tax, Cannon explained the revenues would generate enough to cover shortfall, Letcher asked for an example to understand the impact to a typical household.
Cannon presented revenue options, discussion followed. Sales tax revenues are not keeping up with the bond debt service, a 1/4 % increase would cover these costs. Too late to put on ballot for next election but Nederhoff explained the need for these revenues and we should get the information out to the residents and let them decide. Mask inquired about changing from a non home rule to a home rule, there are definite advantages but it would require a referendum. Mask was in support of the video gaming to remain in parks. Cannon reported fee structures are being reviewed by staff.
Cannon covered available properties the City has available. Mask inquired about placing Heritage addition on our website. Melissa said she could add to website as soon as she receives information from Cannon.
M VanZuiden asked about the cost to the City from our attractions, Cannon explained each attraction is different, individual agreements are a possibility. A discussion on the Andreson agreement followed.
Cannon asked council what options they would like him to present, discussion followed and Cannon would put some together for their review.
M. Vanzuiden said counting on revenues from property is risky. Russell suggested Cannon show residents what cuts have been done so far for the upcoming budget to save money.
Motion to adjourn, all yes.

Budget Workshop
March 7, 2015
8:00 A.M.
Agenda

1. Call to Order

2. Roll Call

3. Pledge of Allegiance

4. Communication from Visitors

5. Budget Workshop:

• Summary: Workshop purpose is to discuss city expenditures and identify priorities for capital projects. Topics for discussion include but are not limited to unfunded projects, capital improvements, employee total compensation, and park infrastructure.

6. Adjourn

CITY OF FULTON
BUDGET WORKSHOP
MARCH 7, 2015

Mayor Russell called the meeting to order at 8:00 AM and directed the city clerk to call the roll. On roll call Ald. Barb Mask, Gene Field, Dan Nederhoff, Sue Van Kampen, Wes Letcher, and Mike Van Zuiden answered “present.” Those absent were Ald. Margaret Crosthwaite and Howard Van Zuiden. Also in attendance were Ed Cannon- City Administrator, James Rhoades- Chief of Police, Dan Clark-Public Works Director, Melissa Wiebenga- Tourism/Community Services Director, and Tammy Garibay- Utility Clerk.

The pledge of allegiance was recited.

There was no communication from visitors.

Mayor Russell thanked all those who were in attendance for the Saturday morning meeting. He then asked City Administrator Cannon to explain the budget.

Administrator Cannon started off by reviewing the budget shortfalls. Currently there are three areas with insufficient funds: 1) General Fund Operations 2) Economic Development loan and 3) 2012C Bond (Capital Projects Fund). The total shortfall is $107,021, however, if the 2012C Reserves is utilized the shortfall is $82,571.

Administrator Cannon then reviewed the list of additional projects which include: Hiring a Peace Corp Fellow, Whiteside Public Transportation Donation, CRDC Vision 2020, Regional Traffic Study (with Clinton, IA), and Remote Tornado Siren at RFCC. These projects totaled $26,100. Mayor Russell said what’s concerning are the ongoing fiscal issues rather than the one time projects. Ald. Mask asked what will happen to the projects and/or programming the Peace Corp Fellow develops once he/she leaves. She agrees that this would be a great asset for Fulton, but wants a more specific plan for what this person will do and how their work with carry on once they are gone. Tourism Director Wiebenga said she envisions this person organizing Mapping Groups and starting programs that the volunteers in our community would be equipped to take over. Ald. Mask also asked if Whiteside Public Transportation is meeting our citizens’ needs.

Next, Administrator Cannon listed the Capital Improvement Projects. Sewer video and cleaning are currently being done and sewer lining will hopefully be done with the DCEO grant.

Next, Administrator Cannon discussed long-range fiscal issues and concerns. The first concern is raising healthcare costs. He included a packet with information comparing City of Fulton employees’ compensation (Base salary, benefits, intangibles) to surrounding communities. Overall Fulton’s total compensation is 5% above average to similar communities in our region. Healthcare is rising nationally 6.5% per year and for Fulton 11.3% per year. By the year 2018, the government is implementing a Cadillac tax that would impact the City of Fulton for three employees, costing the City of Fulton $2212 by 2019. Administrator Cannon is recommending the City of Fulton change health contribution policy to 100/50. The City of Fulton would pay 100% employee health insurance premiums and the employee contributes 50% toward family health insurance costs. This plan would be equitable to all employees, reduces health insurance costs, and aligns Fulton’s total compensation to average total compensation within the region. He also describes how they would implement this plan over a 2-year phase in period.

The second concern is the revenues from the 3/4% sales tax is insufficient to pay bond debt on the 2012C Bond. He suggested selling two residential properties this year would help servicing this debt.

The third concern is Governor Rauner proposed cutting LGDF by 50%. LGDF is the portion of state income tax collected from Illinois residents and returned to local governments. In 2016, Fulton’s estimated LGDF is $339,669 and if this is implemented it would reduce General Fund revenues by $172,309. A contingency plan needs to be developed if this is implemented.

Lastly, Administrator Cannon asked PW Director Clark to discuss capital projects. PW Director Clark said the list he provided were suggested projects from an engineer a few years ago. The Council discussed the several options listed and highlighted a few that would be pleasing to the community.

Mayor Russell closed by saying he believed investing $10,000 in the CDRC would be a good investment and to have their help really market the Industrial Center would create more revenue for the city.

With no further business, Ald. Van Field moved, seconded by Ald. Van Kampen, to adjourn. With voice agreement, the meeting adjourned at 9:15 AM.

Minutes recorded by,

Jackie Wilkin
Fulton City Clerk

Call to order

2.    Roll call

3.    Pledge of allegiance

4.    Communication from visitors

5.    Approve February 23, 2015 Regular Council Meeting minutes (pages 1-4)

6.    Items for Consideration

A.    Vision 2020 Presentation by Clinton Regional Development Corporation

B.    License to Use Space in a City Building and Adjacent Land – Marina Lease (pages 5-14)

• Summary:  Doug Stoltenberg, owner of Doug’s Mobil Service, LLC, wishes to lease the boat repair facility and surrounding land at the Fulton Marina to operate a boat repair, boat sales, winter boat storage, and boat maintenance business.  Mr. Stoltenberg wishes to move in by March 15^th.
• Action:          Approve License

C.    Resolution Accepting Change in Zoning within One and One Half (1 ½) Miles of the Corporate Limits on the City of Fulton, and Resolution to Accept the Final Plat of Westcott Addition to Garden Plain Township, Whiteside County, Illinois (pages 15-17)

• Summary:  On February 23^rd, 2015 the Fulton City Council approved the Westcott rezoning request.  These resolutions serve to inform the Whiteside County Board of Fulton’s acceptance of the change in zoning and approval of the final plat.  Whiteside County will rule on the rezoning request on March 17^th.
• Action:          Approve resolutions

D.    Option to Purchase Real Estate - Zajicek Development (pages 18-26)

• Summary:   Mr. Zajicek has failed to complete an incubator building as defined in the November 4^th 2013 Development Agreement.  On February 2^th, 2015 the City Council rejected proposed modifications to the development agreement.  Fulton’s next step is to exercise the repurchase option spelled out in November 4, 2013 Option to Purchase Real Estate between Mr. Zajicek and the City of Fulton.  Mr. Zajicek has contacted the city through his attorney requesting a closing date on or before April 30, 2015.
• Action:          Exercise the purchase option.

E.  Budget Workshops

• Summary:  The City Administrator is recommending budget workshops for every Saturday in March at 8:00 AM.  Each workshop will address a specific topic, including Revenues, Expenditures, Debt, and Capital Projects.
• Action:  Approve March budget workshop schedule

Old Business

7.    Reports

• Mayor (page 27)

8.    Closed Session to discuss personnel

9.    Return to Open Session

10.  Budget Workshop

11.  Adjourn

CITY OF FULTON

REGULAR COUNCIL MEETING MINUTES

March 2, 2015

CITY OF FULTON
REGULAR COUNCIL MEETING MINUTES
February 23, 2015

Mayor Russell called the meeting to order at 5:30 PM and directed the city clerk to call the roll. On roll call Ald. Barb Mask, Gene Field, Margaret Crosthwaite, Dan Nederhoff, Sue Van Kampen, Wes Letcher, Mike Van Zuiden, and Howard Van Zuiden answered “present.” Also in attendance were Ed Cannon- City Administrator, Bill Shirk – City Attorney, Melissa Wiebenga- Tourism/Community Services Director, James Rhoades- Chief of Police, Amanda Fosdick- City Treasurer, and Dan Clark- Director of Public Works.

The pledge of allegiance was recited. Pastor John gave the invocation.

Mayor Russell asked if there were any questions on the last regular meeting minutes or the special meeting minutes. Ald. Mask wanted to clarify that in the last regular meeting minutes it stated Ald. Van Kampen was at a “wine event” however it was actually an “art event”. With no further questions or comments Ald. Letcher motioned, seconded by Ald. Crosthwaite to approve the February 2, 2015 regular council meeting minutes and the February 7, 2015 special council meeting minutes. Roll call vote/ all yes/ motion carried.

Next, Mayor Russell invited Andy Meyers, Recreation Broad Co-President, to explain to the council the board’s plan to have a parade. Mr. Meyers said the Rec Board is planning a parade from the Elementary School to the Kiwanis Fields on May 17th. Once arriving at the fields there would be baseball games that all the baseball and softball participants could play, along with other activities to participate in at the fields. This event would be a way to kick-off baseball/softball season for the youth in Fulton. The council loved the idea; however the described route may be too long. Chief of Police Rhoades said the city doesn’t have enough barricades to go through that many intersections but they can come up with a route that would mirror the Dutch Days and Homecoming Parade routes and still conclude at Kiwanis Fields. Mayor Russell said the Board should continue to work with Chief Rhoades as they amend their route. Ald. Mike Van Zuiden motioned, seconded by Ald. Van Kampen to approve the parade request with the understanding the parade route will be amended with the help of Chief Rhoades. Roll call vote/ all yes/ motion carried.

Next Mayor Russell asked the Council if they had any questions on the Bill List. Administrator Cannon said they have six interviews for City Hall Building Clerk this week. After brief discussion Ald. Letcher motioned, seconded by Ald. Nederhoff to approve the Bill List. Roll call vote/ all yes/ motion carried.

Next, Mayor Russell asked the Council if they had any questions on the Treasurer’s Report. Amanda Fosdick, City Treasurer had no additional comments to her report. Ald. Letcher motioned, seconded by Ald. Howard Van Zuiden to approve the Treasurer’s Report. Roll call vote/ all yes/ motion carried.

The first item for consideration, Mayor Russell asked City Attorney Shirk to summarize. Shirk explained Fulton obtained Worker’s Compensation insurance from IPRF during 2012. IPRF billed the city an additional premium of $13,118 following a payroll audit in 2013. The city challenged the audit but did not obtain resolution to the disputed premium change. IPRD has now retained legal counsel and is threatening to sue if payment is not made. City options are to fight the additional charges in court or pay the bill. City Attorney Shirk recommended the city pay the bill because they would have to get a lawyer in Cook County and the lawyer fees would be quite costly and there is no guarantee the city would even win. Ald. Mike Van Zuiden motioned, seconded by Ald. Letcher to approve the payment to IPRF. Roll call vote/ all yes/ motion carried.

Second, Mayor Russell said Fulton city ordinance calls for five (5) standing committees: Budget, Public Property, Planning and Records, Public Safety, and Parks and Recreation. Mayor Russell said the structure of our committees have not been updated since 1982 and there needs to be more structure and guidelines. He is not looking to add more or get rid of any committees, but to organize and bring structure to the committees we already have. Mayor Russell appointed Ald. Howard Van Zuiden to work with himself and Administrator Cannon to develop this structure and they will bring information back to the Council in May.

Third, Administrator Cannon summarized that on December 8, 2014, the Fulton City Council denied a rezoning request by Mr. Donald Westcott to rezone his property from A-1/R-2 to A-R because the rezoning might jeopardize a proposed medical cannabis cultivation center in the Fulton Industrial Center. The Whiteside County Board voted to table the rezoning vote at the request of both the City of Fulton and Mr. Westcott until the state of Illinois ruled on the proposed development. The state has now ruled that the cultivation center will not be located in Fulton, and Mr. Westcott is resubmitting his rezoning request to the Whiteside County Board. Ald. Howard Van Zuiden motioned, seconded by Ald. Letcher to approve Mr. Westcott’s rezoning request. Roll call vote/ all yes/ motion carried.

Fourth, City Administrator Cannon explained to the Council that Fulton is facing three issues that require adjusting W/S rates: 1) increased costs in W/S debt service, 2) inadequate W/S reserves, and 3) adjustments for inflation. Ald. Mike Van Zuiden asked about the money sitting in the depreciation fund and Administrator Cannon explained that most of that money will be used for upcoming maintenance to our water and sewer infrastructure. Public Works Director Clark added that there is a pump and well down now that will need to be repaired that haven’t even been factored in yet. Ald. Crosthwaite motioned, seconded by Ald. Mask to approve water/sewer rate adjustment. Roll call vote/ all yes/ motion carried.

Fifth, the City of Fulton must pass a resolution approving Motor Fuel Tax estimates for approved projects. Public Works Director Clark explained to the Council the resolution. Ald. Field motioned, seconded by Ald. Letcher to approve Motor Fuel Tax Resolution. Roll call vote/ all yes/ motion carried.

MAYOR’S REPORT:
Mayor Russell summarized his written report on water/sewer rate adjustments, current year budgets, next year budget proposals and development incentives. Mayor Russell also announced he is considering options for proposed changes to our committee system. In the interim, he asked Ald. Mike Van Zuiden and Ald. Barbara Mask to sit in on future ad hoc Insurance Committee meetings. They will then meet with our Administrator to develop a recommended benefit package to be included in our next operating budget. Mayor Russell also expressed his gratitude to the entire Council for their kind words with the loss of his brother Leon.

ADMINISTRATOR’S REPORT:
City Administrator Cannon summarized his written report on Electrical Aggregation contract renewal, a lease agreement for a boat sales/repair business at the Fulton Marina, and the Budget Workshop to be held Monday March 2, 2015 immediately following the regular City Council meeting.

Ald. Field asked if there was an update on the Zajicek development. City Attorney Shirk said he will have information to update the Council on March 2nd.

Chief of Police Rhoades submitted his written report with no additional comments.

Ald. Van Kampen updated the Council on the Marina. She shared that the lease agreement for the Marina tenant will be drawn up by the end of the week for the Council to review at their next meeting and that the business name will be “The Great River Marina”. Ald. Van Kampen also shared that the Marina website has been updated, new signed are up, landscaping will be done this spring, and they may possibly get bike racks for boaters who dock and would like to explore the city. Upcoming events are a meeting March 11th for slip renters at Manny’s Too and a possible boat float or Parade in late August.

Administrator Cannon summarized the Finance Committee’s written report on Water/sewer rates, the depletion of the Economic Development Fund (Fund 19), and the deficit on the Capital Projects Fund (Fund 31).

Tourism/Community Services Director Wiebenga announced the American Queen ship will dock in Clinton/Fulton five times this summer. This means approximately 200 people (each stop) may venture off the boat into our downtown which will be great for our economy.

Ald. Mask reported the Drives Building committee will meet one more time this Saturday at noon for one last tour of the Drives Building. After this Saturday they will put together a report on the feedback they have received from the community and share at a future Council meeting.

Ald. Mike Van Zuiden, Ald. Mask, and Karen Abbott met with Brian Fritz to discuss senior housing with a developer in the Quad Cities for senior housing. They had the opportunity to tour four properties. The developer said Fulton would be a great candidate for the type of housing he provides.

Lastly, Mayor Russell asked if an Alderman would volunteer to be on a Prison Advisory Board. This would keep our Council aware of the amount of new families moving into our area and other valuable information.

A motion was made by Ald. Howard Van Zuiden, seconded by Ald. Mask to go into closed session to discuss personnel. Roll call vote/ all yes / motion carried. Council went into closed session at 7:15 PM.

Ald. Howard Van Zuiden motioned, seconded by Ald. Field to return to main session. Roll call vote/ all yes / motion carried. Council returned to main session at 7:55 PM.

With no further business, Ald. Van Kampen moved, seconded by Ald. Mask to adjourn. With voice agreement, the meeting adjourned at 7:56 PM.

Minutes recorded by,

Jackie Wilkin
Fulton City Clerk

CITY OF FULTON
SPECIAL CALLED COUNCIL MEETING
Saturday, February 7, 2015
8:00 AM

1. Call to order

2. Roll call

3. Pledge of allegiance

4. Communication from visitors

6. Items for Consideration

A. Medical Cannabis Dispensary operation in Fulton

• Summary: The Dispensary, LLC was awarded authorization to register for a dispensary license to operate a medical cannabis dispensary facility in Fulton, Illinois. The Dispensary, LLC submitted the most qualifying application and is now granted authority to begin the registration process. The announcement from the state was not an approval or a license to operate, but served as a notification that The Dispensary, LLC can begin the registration process. The Dispensary has up to 120 days to complete the registration process.
• Action: Discussion only

7. Adjourn