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, January 22, 2018 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 David Jerome, Councilman Cheryl Brombolich, Councilman Donna Green, Councilman Jeff Stehman, and Mayor John Miller Absent: 0 C. INVOCATION Delivered by Pastor Jeff Young of the First United Presbyterian Church of Collinsville. D. PLEDGE OF ALLEGIANCE Recited. E. PROCLAMATIONS/RECOGNITION/PRESENTATIONS 1. New City Employee Introductions: Mike Crawford - Water Dept., Operator Blake Novack - Police Dept., Officer Brian Hunt - Community Development Dept., Property Inspector Mayor Miller introduced new City employees. City of Collinsville Page 1 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 2. Proclamation Declaring January 21 - 27, 2018 City of Collinsville School Choice Week Attachments: Proclamation Mayor Miller read the Proclamation declaring the week of January 21 City of Collinsville School Choice Week. F. BUSINESS PRIOR TO PUBLIC INPUT G. COUNCIL DISCUSSION 1. Ardent Spirits Redevelopment Agreement Attachments: Staff Memo Old Herald Brewery & Distillery Business Plan City Manager Bair spoke of the former Collinsville Herald building located at 115 E Clay and advised it was previously rezoned in November 2017. This discussion item is regarding redevelopment incentives for a proposed business at this location. He advised the applicants, Derik and Laur Reiser of Ardent Spirits, have requested $803,536 in incentives from TIF 1 for a micro-distillery and brewery including a restaurant. He described the business as a regional destination. Overall project cost is estimated at $2.5 million. As a regional destination, projected revenues for the first year are estimated at $2.4 million. The business will employee 20 individuals (7 full-time and 3 part-time) with an estimated payroll of $600,000. He described the building as currently being a shell which means all improvements will be up to code. Project is approximately 15,000 square feet with capacity of 326 patrons. Business will include taproom, restaurant, bar, lounge, patio and private event space. He highlighted Mr. Reiser's business plan by describing it as a craft brewery and distillery experience with high quality food. He spoke of the applicant's branding of the business and mentioned his willingness to partner with the community as well as other local businesses. He mentioned the competitive advantages of this unique business and described it as a tourist attraction with long term opportunities. He explained and displayed pictures of equipment that would be used in the brewery/distillery process as it would be visible to the patrons. They will offer tours and host special events. They project over 60% of revenue to come from food sales, will employee 20 people, anticipate over 90,000 annual patrons, and offer an event space that would be free for community groups. He spoke of additional revenue opportunities that may include craft soft drinks, contract brewing, barrel sales, beverage club memberships and merchandising. He spoke of the historical connection between the branding of the establishment with that of the City, Ardent Spirits as part of the Collins deed restrictions and named Old Herald Brewing Company. July 2018 is the anticipated opening date. He displayed the general layout of the business and indicated the distillery equipment would be viewable by the public as part of the experience. He spoke of the financial impacts: * $2.4 million in revenues within year 1 - $52,920 in sales tax. He further indicated that if the Food and Beverage Tax district would encompass the entire City this would yield an additional $24,000. City of Collinsville Page 2 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 * Property tax could double after reassessment. Current taxes are $4,666.16 but expected to increase to approximately $9,332.32, City receives 4.4% = $207.03 currently. TIF 1 expires December 2021 at which time the property will be returned to tax rolls. City Manager Bair gave an overview of the requested incentive. The applicant is seeking $803,536 which represents 31.4% of the total project cost and 47.9% of the total TIF eligible project costs. He indicated the typical guidance is 30-40% total TIF eligible costs and 10-20% of the total project costs. He spoke of the incentive analysis and advised 40% of the facade, code and structural items and 90% for Fire Code compliance items should be used as the general starting points in considering the appropriate level of incentive award. He spoke of TIF eligible items that would not be considered as part of the incentive (signage, construction safety items, and construction supervision labor costs). In this case 40% of code compliant items total $573,446 and 90% of related Fire Code compliance items at $77,244 for a total project incentive award of $650,690. Due to the cost of the project, the applicant asked that the incentive award to be reimbursed in phases (Phase 1, 2 and 3 which is outlined in the agenda packet). Derik Reiser spoke of his excitement for the opportunity to bring this kind of business to the City of Collinsville. Councilman Green thanked him for wanting to invest in the City. Mayor Miller spoke of the reimbursement in phases as this is not typically done. Mr. Reiser indicated he is trying to avoid external investors. The reimbursement in phases would allow them to complete the project as a self financed endeavor. City Manager Bair explained, should the applicant fail to complete the project, the lien process would allow for foreclosure as a way to protect the City's investment. Councilman Stehman indicated TIF projects are usually reimbursed upon substantial completion. This project would be reimbursed based on the completion of each phase. Councilman Brombolich inquired as to when the business would be open. Mr. Reiser indicated they would be open for business at the end of Phase 3. Councilman Jerome mentioned the project as being well designed and carefully thought out. He spoke of his concerns. He inquired of projected deadline dates for each phase to which Mr. Reiser indicated deadlines would be established. Councilman Jerome spoke of food sales having a smaller reduced sales tax. He indicated his concern when going over 20% of the total project. 2. Reorganizing and Amending the Collinsville Municipal Code Chapter 4 Fee Schedule Attachments: Staff Memo Draft Fee Schedule Existing Fee Schedule Overview by Assistant City Manager Derek Jackson who advised that each department was asked to City of Collinsville Page 3 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 review their respective fees and assess a value to ensure each fee is set at a level that recovers our costs for services provided. He explained the current fee schedule: * 53 categories in alphabetical order - making the layout difficult to follow. * Missing Fees - False Alarm assessed fees for Fire and Police Department and associated Ambulance fees for assessment only and refusal of transport. These fees were adopted but not codified. * Misplaced Fee - certificate providing for economic hardship was listed under Adult Entertainment but actually falls under Historic Preservation Commission. * Duplication of fees within different chapters. After meeting with the various departments, the following fees are recommended to be deleted from the schedule: * Pro-rated Business License $12.50 - These licenses are renewed annually and based on when they were initially established. * Local Record Check - Police Dept. receives very minimal requests for this service and only takes about 5 minutes to process. * Tow Release - should have previously been removed from Chapter 4 when it was replaced by the Vehicle Impound Fee. * Fireplug Service Charge - applies to only 40 hydrants and has never been collected. * Yard Waste Dumpster Program - This service is provided free of charge to the citizens on certain calendar dates. Fees that were identified that need to be amended includes: * Building Permits * Grading Permits * Zoning Variance * Subdivisions * Site Plan Review * False Alarm - assessing a $50 fee after the 4th false alarm for Police services and $100 fee after 4th false alarm for Fire services. * Animal Impoundment - Microchip fee as described by State Statute. * Water Service and Charges - associated with 3rd party testing and after-hours service connections. Fee will slightly increase to cover costs. New fees that are being recommended: * Assessing a late fee for Video Gaming License applications as some are not submitting their applications in a timely manner. This would be similar to the late fee for Liquor License applications ($20 per day after November 15). * Building Permit Reinspection Fee - $25 for multiple trips * Mobile Home Park Inspection Fee * Parking Tickets for handicap spaces - $100 unless marked otherwise * Microchip Fee - per State Animal Control Act City of Collinsville Page 4 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 Asst. City Manager Jackson indicated the most notable changes to the fee schedule would be the layout as the fees would be grouped into general categories: A. Administrative Services B. Licensing C. Land Development D. Parks and Recreation E. Police Department Services F. Fire Department Services G. Utilities He mentioned the waiving of fees and indicated ordinance permits Animal Control to waive animal impound fees for subsequent events. He asked Council of other fees that could be waived based upon certain circumstances. City Manager Bair mentioned water fees with regards to leak issues and non-transport ambulance fees. He asked Council for guidance to handle requests for fee relief. Asst. City Manager Jackson asked Council for feedback and he would draft an ordinance for adoption at the next Council meeting. Councilman Brombolich spoke of the document fees for FOIA. She indicated the prorated Business License fees was part of the creation of the program which started mid-year. She inquired when the codes were last codified. City Clerk Wasser advised that codes are codified on a quarterly basis and last done December 31, 2017. Councilman Brombolich inquired of the number of inspections that is allowed for building permits. Community Development Director David Bookless gave an example as to when the subsequent inspection would trigger a fee. He indicated someone may call and schedule an inspection when they are clearly not ready for an inspection or they continue to fail the inspection. Asst. City Manager Jackson spoke of the Business License fee being $25 but would like to amend this fee amount based on what other municipalities are charging and type of business use. This amendment would be brought back to Council for consideration at a later date. Councilman Stehman indicated he was not in favor of charging a fee for something that does not have a service tied to it. He spoke of the need to cover a portion of our costs. Councilman Brombolich agreed with Councilman Stehman. She suggested an alphabetical index attached to the fee schedule. Mayor Miller indicated it is a good idea to review and update our fees. H. SPEAKERS FROM THE FLOOR None. I. COMMENTS & ANNOUNCEMENTS - MAYOR Mayor Miller read a Proclamation regarding radon awareness. City of Collinsville Page 5 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 J COMMENTS & ANNOUNCEMENTS - COUNCIL MEMBERS None. K. COMMENTS & ANNOUNCEMENTS - CITY STAFF None. L. CONSENT AGENDA City Clerk Wasser read the Consent Agenda. 1. Motion to Approve Payment of Bills for the Period Ending January 12, 2018 in the Amount of $335,260.82 Attachments: Agenda Item Report Board List 01-05-18 Board List 01-12-18 2. Motion to Approve Payroll for the Period Ending January 12, 2018 in the Amount of $1,160,633.78 Attachments: Agenda Item 01-22-18.docx Board List 12-29-17.pdf Board List 01-12-18.pdf 3. Motion to Approve Minutes of the January 8, 2018 Regular Meeting Attachments: Agenda Item Report 01082018RegMtg.pdf 4. Resolution Reappointing Members to the Collinsville Economic Development Commission (Wyatt and Jones) Attachments: Agenda Item Report 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 Jerome, seconded by Councilman Green, to approve the Consent Agenda. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 City of Collinsville Page 6 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 M. NEW BUSINESS 1. Ordinance Approving the Consolidation of the Collinsville Metropolitan Exposition, Auditorium and Office Building Authority into the City of Collinsville, Madison and St. Clair Counties, Illinois, and Accepting the Functions of said Authority on the Effective Date of the Consolidation Attachments: Agenda Item Report Ordinance Intergovernmental Agreement Exhibit A - Warranty Deed Exhibit B - Vehicles Exhibit C - Non Titled Property EDC Support Letter Gateway Center Consolidation Presentation City Manager Bair advised this ordinance is the result of a previous discussion as well as an unanimous vote of the Gateway Board on January 18 to approve the consolidation agreement. He again summarized the consolidation efforts and described this as the best opportunity for Gateway Center and the City. He indicated the City is already responsible for Gateway Center by backing bonds and appointing members to the board. The consolidation will increase efficiencies and reduce costs. The City will net a $22 million asset. We can reduce bond costs and focus economic development on tourism. Councilman Brombolich thanked City Manager Bair for providing them detailed information and his efforts. She spoke of the consolidation being beneficial for the community. She mentioned her father-in-law being the catalyst for the Gateway Center and believes he would have wanted this partnership to begin with. Mayor Miller agreed with Councilman Brombolich and spoke of the information provided as evidence for consolidation efforts to enhance the Gateway Center. A motion was made by Councilman Brombolich, seconded by Councilman Jerome to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 2. Ordinance Providing for a Hotel Accommodations Tax Attachments: Agenda Item Report Ordinance City of Collinsville Page 7 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 Overview by City Manager Bair advised this ordinance would increase the Hotel Accommodations Tax from 7% to 9% which would provide for an additional $342,860 annually. The current tax provides for $1.2 million annually. He gave a comparison with other cities. He indicated the funds would be focused on tourism efforts, Parks and Recreation and Gateway Center. Councilman Stehman spoke of O'Fallon's tax increase which was to enhance their Parks and Recreation facilities. City Manager Bair confirmed that money will be earmarked for Parks and Recreation activities and Gateway Center improvements. Mayor Miller reiterated that general funds would not be used for operations of the Gateway Center. A motion was made by Councilman Stehman, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 3. Ordinance Providing for the Continuance of the Food and Beverage Tax Attachments: Agenda Item Report Ordinance - Redline Version Ordinance City Manager Bair explained the current Food and Beverage Tax is limited to a district but this ordinance would provide for the tax to be city wide. If approved, this would provide for an additional $200,000 annually which funds will be earmarked for capital projects directly related to tourism. He described this action as being similar to other cities. Councilman Brombolich compared taking this tax city wide to that of the school district as a way of enhancing our community. She reiterated that funds generated from this tax would be for capital projects, especially those to improve our parks. Councilman Green spoke of Collinsville's future, investing in our City, community support efforts, hospitality growth and increased tourism opportunities. Councilman Jerome spoke of the timing for establishing a Parks and Recreation Department and Gateway Center opportunities as his reasoning for seeing the need to extend the Food and Beverage Tax district. He mentioned the improvements needed to better the community. City Manager Bair spoke of the recent opportunities for the City. He mentioned future budgeting of these funds for capital improvement projects as well as Parks and Recreation Department. City of Collinsville Page 8 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 Mayor Miller spoke of citizens complaining of inadequate parks. He indicated the tax increase is to improve services for our community. Councilman Stehman spoke of the importance of being able to see and track what is being done with the additional money collected. Mayor Miller indicated this can be addressed in the newsletter. A motion was made by Councilman Stehman, seconded by Councilman Brombolich to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 4. Resolution of Support for the City of Collinsville Affiliation with the Alton Regional Convention and Visitors Bureau Attachments: Agenda Item Report Resolution EDC Support Letter Tourism Economic Impact City Manager Bair indicated this resolution announces our affiliation with the Alton Convention and Visitors Bureau (CVB) which is being renamed to the Great Rivers and Routes CVB. This resolution is required by the State for CVB funding. He spoke of the Great Rivers and Routes CVB as being the best fit for the City, Gateway Center and the Chamber with a major focus on tourism for the area. This CVB is fully accredited and is not membership based. A motion was made by Councilman Jerome, seconded by Councilman Brombolich to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 5. Resolution in Support of and Authorizing Mayor to Apply for Park Enhancement Grant Funds from Madison County Attachments: Agenda Item Report Resolution City of Collinsville Page 9 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 Parks and Recreation Director Kimberly Caughran explained this is an annual grant available from Madison County Community Development. Due to the unique relationship with C.A.R.D., the City's eligible Park Enhancement (PEP) Grant amount is $41,300. She spoke of using the grant funds for accessible picnic tables and safe bleachers. She is recommending purchasing 8 sets of bleachers and 12 ADA accessible picnic tables. A motion was made by Councilman Brombolich, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 6. Ordinance Providing for the Licensing, Inspection and Regulation of Mobile Home Parks Attachments: Agenda Item Report Ordinance Planning Commission Staff Report Planning Commission Minutes 12/14/17 (Draft) Overview by Director Bookless gave a brief overview of the program. He indicated the State discontinued inspecting mobile home parks in 2011 for all Home Rule municipalities. The Planning Commission reviewed the program at their December 2017 meeting and made an unanimous recommendation for the program; however, they did not weigh in on the fee structure. Council provided feedback with regards to the fee structure - $100 per Mobile Home Park and $6 per mobile home within the park. He further indicated these fees are similar to that of surrounding communities. Councilman Brombolich inquired of the start date for the program. Director Bookless advised that upon approval by Council, his department will contact each mobile home park owner as a way to inform them of the program. This will give his department ample time to finalize program. Councilman Stehman inquired of an effective date. Director Bookless referred to Corporate Counsel. Attorney Steve Giacoletto indicated an effective date was not necessary since it is the City's program and it does not obligate the owner to act. Director Bookless advised he plans on implementing the program as soon as possible. A motion was made by Councilman Stehman, seconded by Councilman Jerome to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 City of Collinsville Page 10 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 7. Ordinance Increasing the 2017 Budget in the General Fund, Collins House Fund, Police Vehicle Fund, Collinsville Crossings Fund, and Water and Waste Water Fund Attachments: Agenda Item Report Ordinance Tamara Ammann, Finance Director, indicated this is the second year of a bi-annual budget which sometimes requires adjustments due to the time frame from when the budget was prepared. She described the budget adjustments being minor with a total amount of $595,000: * $270,000 in General Fund (1.32% net change of original budgeted expenditures). She mentioned the various reasons for the increase to include legal fees, costs associated with the City's newsletter and staff changes. * Collins House Fund - utility expenses. * Police Vehicle Fund - replacement car cost more than projected. * Collinsville Crossing Fund - principal payment on LIST bonds. * Water and Waste Water Fund - due to EPA loan. A motion was made by Councilman Brombolich, seconded by Councilman Green to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 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): 11. Pending or Threatened or Imminent Litigation A motion was made by Councilman Jerome, seconded by Councilman Stehman to approve. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 City of Collinsville Page 11 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 Absent: 0 Abstain: 0 P. ANNOUNCEMENTS Q. ADJOURNMENT A motion was made by Councilman Brombolich, seconded by Councilman Green to adjourn at 8:35 pm. The motion carried by the following vote: Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller Nay: 0 Absent: 0 Abstain: 0 City of Collinsville Page 12 Printed on 2/26/2018 City Council Minutes - Final January 22, 2018 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 2/26/2018