Village of Antioch - Board Meeting Minutes

VILLAGE OF ANTIOCH

VILLAGE OF ANTIOCH
BOARD OF TRUSTEES, SPECIAL MEETING
Municipal Building: 874 Main Street, Antioch, IL
April 12, 2004

CALL TO ORDER Mayor Maravelas called the regular meeting of the Board of Trustees to order at 7:05 PM in the Municipal Building: 874 Main Street, Antioch, IL.

ROLL CALL Roll call indicated the following Trustees were present: Caulfield, Larson, Porch and Turner. Also present were Mayor Maravelas, Attorney Long and Clerk Monroe. Trustees absent: Hanson and Pierce.
Trustee Hanson arrived at 7:06 PM.

MAYOR Mayor Maravelas stated that he had no written report.

PLANNING, ZONING AND BUILDING Trustee Turner stated there was no written report.

INDUSTRIAL, RETAIL, REDEVELOPMENT, CIVIC AND COMMUNICATIONS Trustee Porch stated there was no written report.

FINANCE AND ADMINISTRATOR Resolution 04-05 – Trustee Caulfield stated that this was the revised copy and asked Attorney Long to read the resolution. Attorney Long read the resolution. Trustee Porch made a motion, seconded by Trustee Caulfield, to approve resolution 04-05, entitled A Resolution Acknowledging Improper Utilization of Restricted Funds and Requiring the Village Administrator to take All Necessary Steps to Identify the True Extent of the Improper Expenditures and to Propose a Repayment Program.
Trustee Larson questioned the 6th whereas in the resolution referring to loans. She stated that at the Board meeting on April 21, 2003 that Trustee Caulfield made a motion, seconded by Trustee Foresta to make an inter-fund loan. She then read from the minutes that pertain to this motion. In the minutes, there was a comment that this would be reviewed in July and Trustee Larson stated that she went through all of the July 2003 minutes and did not see any further discussion on this inter-fund loan. She stated that there was a motion and that makes the 6th paragraph of the resolution untrue.
Trustee Caulfield stated that his understanding, from talking with consultants and auditors since the time Trustee Larson referenced, is that formal loan documents and ordinances need to be in place. At the time that the motion for the inter-fund loan was made, he was unaware of the process that needed to be followed. He stated that he does not feel that the motion back in April of 2003 negates the paragraph being discussed.
Attorney Long stated that his concern is that there is no documentation on how the money would be repaid. Trustee Larson stated that the implication in reading the minutes was that the loan would be repaid when the tax money came in.
Trustee Turner stated that she wasn’t on the Board that night, but she was in the audience and that she remembers that the gist of the conversation was that the money would be repaid when the tax money came in. She also asked why the attorney did not advise the Board that this loan should not be made.
Attorney Long stated that he was not aware that restrictive funds were being used. Trustee Turner stated that the language was enterprise funds to the general fund. Attorney Long stated that he was not aware that the Village referred to restricted funds as the enterprise fund.
Trustee Turner asked if other Villages call their restricted funds something else. Attorney Long stated that most Villages have the word restricted within the name of the fund.
Trustee Hanson stated that this problem goes further back than the last couple of years. Mayor Maravelas asked Trustee Hanson how long he has been on the Board and Trustee Hanson responded since 1989. Mayor Maravelas then asked him if this occurred often and Trustee Hanson responded that it was done often.
Trustee Porch stated that the Village Board was acting in good faith during the time that Trustee Larson mentioned and asked if the wording of paragraph 6 could be changed. Attorney Long responded that there are still not formal loan documents in place. Trustee Porch responded that it is not the Board’s fault.
Trustee Caulfield stated that this resolution is not trying to place blame on anyone. Attorney Long stated that it is correct that the resolution is not placing blame.
Trustee Larson asked why this resolution needs to be passed. She stated that the Village is working in good faith, hiring accounts and a Finance Director to ensure that the Village is fiscally healthy. She doesn’t understand what this resolution is hoping to accomplish.
Trustee Caulfield stated that passing the resolution makes it crystal clear that the Village has gone through the process of identifying the problems and is trying to resolve the problems.
Trustee Porch stated that she had asked some questions related to this at the committee meeting this morning and that this was to help protect the Village. Attorney Long stated that this resolution acknowledges the existence of the issue and establishes the basis to remedy the situation. Since there is not enough money, in the general fund, to resolve this immediately it probably means that utilization of co-mingled funds may occur and this is the best possible approach to clarify that the Village is trying to resolve the situation.
Trustee Larson stated that this document says what we are already doing, so is it really necessary. Mayor Maravelas stated this way we have it in writing.
On roll call, the vote was:
YES: 3: Caulfield, Porch and Hanson
NO: 2: Larson and Turner
ABSENT: 1: Pierce
THE MOTION CARRIED

PUBLIC SAFETY, PUBLIC WORKS AND UTILITIES Ordinance revising Water and Sewer Rates – Trustee Hanson introduced Harold Warren, of Warren Associates, and asked him to explain the information he had put together on the Water and Sewer Rates. Mr. Warren summarized the information in the letter he provided to the board. His recommendation is to continue the $10.00 minimum and increase the water from $1.00 per 1000 gallons of water to $1.25 per 1000 gallons.
Trustee Caulfield asked how he justifies an increase of only $1.25 when the actual cost is $1.50. Mr. Warren stated that the $1.25 comes close to the requirement and between the minimum charge and the rate of $1.25 it will come close to the cost of producing water.
Trustee Porch asked if currently the Village is charging $1.00 and it costs $1.50 to produce the water. Mr. Warren stated the $1.50 includes the current bonds that the Village has. She then asked how the Village could show net revenue if $0.50 is being lost on every gallon.
Trustee Larson asked if it is the minimum charge that offsets it. Mr. Warren explained that the estimated expenses are higher than the actual water department expenses.
He also stated that the records are not always accurate as to what comes from the sewer and what comes from the water so some of it is a figment of accounting procedures.
Ordinance revising Water and Sewer Rates cont’d –Trustee Porch stated that the numbers Mr. Warren put together don’t show any increases after the first 2 years. Mr. Warren stated that extra costs are included for maintenance and the bonds.
Trustee Hanson asked if these figures include the East Sub area. Mr. Warren responded that they have not talked about those rates yet and then explained that his recommendation is to continue the $22.00 minimum charge and to set a rate of $3.10 per 1000 gallons (comprised of the $2.60 county rate and a $0.50 rate for the Village) for the East Sub area.
Mr. Warren stated that that there is an ordinance that could be ready for the next meeting.
Trustee Hanson asked if there should be a committee meeting to discuss this further. Trustee Larson stated she did not feel one was necessary, since Mr. Warren explained everything so well. Trustee Hanson stated that if everyone felt comfortable, they could just discuss it at the next meeting.

PARKS AND LICENSE Trustee Larson stated there was no written report but did give a summary of the committee meeting that occurred on April 7, 2004.

ENGINEERING AND SENIOR SERVICES Trustee Larson stated there was no written report.

ATTORNEY Ordinance 04-04-15 – Attorney Long read the ordinance. Trustee Porch made a motion, seconded by Trustee Turner, to waive the second reading, approve and publish in pamphlet form an ordinance, 04-04-15, entitled AN ORDINANCE REPEALING THE MUNICIPAL UTILITY TAXES.
Trustee Larson stated that the 4th whereas says that it is in the best interest of the Village to repeal the tax and that the original ordinance states that the Village is obligated to repeal when the funds are paid back. She asked that the language be changed.
Trustee Turner took back her second and Trustee Porch took back her motion.
Attorney Long read the amendment he made to the ordinance.
Trustee Porch made a new motion and Trustee Turner seconded the new motion. On roll call, the vote was:
YES: 5: Larson, Caulfield, Porch, Hanson and Turner
NO: 0
ABSENT: 1: Pierce
THE MOTION CARRIED
Resolution 04-06 – Attorney Long read the resolution. Trustee Hanson made a motion, seconded by Trustee Caulfield, to approve resolution 04-06, entitled A Resolution Requesting the Federal Railway Authority to Continue Research on Alternatives to Provide Safe Rail Crossings Without Blaring and Disturbing Train Horns.
Trustee Porch stated that she did not feel that the Village had any business passing the resolution until the crossings were more secure and safe.
Trustee Hanson stated that his understanding was that the purpose of this resolution was to take it to the Federal Railway Authority (FRA) to inform them of alternatives.
Trustee Turner sited a recent incident at one of the crossings where a police officer witnessed a close encounter between a vehicle and a train.
Trustee Porch stated that she thinks Mr. Knutsen is doing a wonderful job, but that she thinks that this should wait until the safe crossing are in place. Mayor Maravelas stated that there is a new concept for gates and that they can’t do the things they want to without keeping the “no horn zone”.
Trustee Hanson stated that the new gates are a part of why this resolution is needed.
Trustee Turner was concerned that there would be no horns and Trustee Larson explained that the railroads would sound their horns regardless of the resolution. Trustee Hanson stated this was more a tool to show the FRA what we want. Trustee Turner verified that this resolution is to say that we want the safe crossings so that horns aren’t necessary.
Trustee Caulfield asked if sections one, two and three could be combined to show that the Village wants the sound reduced but that we are thinking of safety.
Trustee Caulfield amended his second and Trustee Hanson amended his motion. On roll call, the vote was:
YES: 5: Larson, Caulfield, Porch, Hanson and Turner
NO: 0
ABSENT: 1: Pierce
THE MOTION CARRIED
Executive Session – Attorney Long stated that a Trustee requested an executive session for purchase of property. A motion was made by Trustee Hanson for the Mayor and the Board of Trustees to move into executive session at 8:12 PM. Trustee Larson seconded the motion. On roll call, the vote was:
YES: 5: Larson, Caulfield, Porch, Hanson and Turner
NO: 0
ABSENT: 1: Pierce
THE MOTION CARRIED
Mayor Maravelas left at 8:13 PM.
Mayor Pro-Tem – Trustee Turner made a motion, seconded by Trustee Larson, to appoint Trustee Hanson as Mayor Pro-Tem. All of the Trustees were in favor.
Return – Trustee Hanson made a motion for the Mayor and the Board of Trustees to return from Executive Session to the open meeting at 8:25 PM, with no action taken. Trustee Porch seconded the motion. On roll call, the vote was:
YES: 5: Larson, Caulfield, Porch, Hanson and Turner
NO: 0
ABSENT: 1: Pierce
THE MOTION CARRIED

ADJOURNMENT A motion was made by Trustee Porch and seconded by Trustee Caulfield to adjourn the regular meeting of the Board of Trustees at 8:30 PM.

Respectfully submitted,

____________________
Amy S. Monroe, Village Clerk

Return to Village Board Info

CALL TO ORDER	Mayor Maravelas called the regular meeting of the Board of Trustees to order at 7:05 PM in the Municipal Building: 874 Main Street, Antioch, IL.
ROLL CALL	Roll call indicated the following Trustees were present: Caulfield, Larson, Porch and Turner. Also present were Mayor Maravelas, Attorney Long and Clerk Monroe. Trustees absent: Hanson and Pierce. Trustee Hanson arrived at 7:06 PM.
MAYOR	Mayor Maravelas stated that he had no written report.
PLANNING, ZONING AND BUILDING	Trustee Turner stated there was no written report.
INDUSTRIAL, RETAIL, REDEVELOPMENT, CIVIC AND COMMUNICATIONS	Trustee Porch stated there was no written report.
FINANCE AND ADMINISTRATOR	Resolution 04-05 – Trustee Caulfield stated that this was the revised copy and asked Attorney Long to read the resolution. Attorney Long read the resolution. Trustee Porch made a motion, seconded by Trustee Caulfield, to approve resolution 04-05, entitled A Resolution Acknowledging Improper Utilization of Restricted Funds and Requiring the Village Administrator to take All Necessary Steps to Identify the True Extent of the Improper Expenditures and to Propose a Repayment Program. Trustee Larson questioned the 6th whereas in the resolution referring to loans. She stated that at the Board meeting on April 21, 2003 that Trustee Caulfield made a motion, seconded by Trustee Foresta to make an inter-fund loan. She then read from the minutes that pertain to this motion. In the minutes, there was a comment that this would be reviewed in July and Trustee Larson stated that she went through all of the July 2003 minutes and did not see any further discussion on this inter-fund loan. She stated that there was a motion and that makes the 6th paragraph of the resolution untrue. Trustee Caulfield stated that his understanding, from talking with consultants and auditors since the time Trustee Larson referenced, is that formal loan documents and ordinances need to be in place. At the time that the motion for the inter-fund loan was made, he was unaware of the process that needed to be followed. He stated that he does not feel that the motion back in April of 2003 negates the paragraph being discussed. Attorney Long stated that his concern is that there is no documentation on how the money would be repaid. Trustee Larson stated that the implication in reading the minutes was that the loan would be repaid when the tax money came in. Trustee Turner stated that she wasn’t on the Board that night, but she was in the audience and that she remembers that the gist of the conversation was that the money would be repaid when the tax money came in. She also asked why the attorney did not advise the Board that this loan should not be made. Attorney Long stated that he was not aware that restrictive funds were being used. Trustee Turner stated that the language was enterprise funds to the general fund. Attorney Long stated that he was not aware that the Village referred to restricted funds as the enterprise fund. Trustee Turner asked if other Villages call their restricted funds something else. Attorney Long stated that most Villages have the word restricted within the name of the fund. Trustee Hanson stated that this problem goes further back than the last couple of years. Mayor Maravelas asked Trustee Hanson how long he has been on the Board and Trustee Hanson responded since 1989. Mayor Maravelas then asked him if this occurred often and Trustee Hanson responded that it was done often. Trustee Porch stated that the Village Board was acting in good faith during the time that Trustee Larson mentioned and asked if the wording of paragraph 6 could be changed. Attorney Long responded that there are still not formal loan documents in place. Trustee Porch responded that it is not the Board’s fault. Trustee Caulfield stated that this resolution is not trying to place blame on anyone. Attorney Long stated that it is correct that the resolution is not placing blame. Trustee Larson asked why this resolution needs to be passed. She stated that the Village is working in good faith, hiring accounts and a Finance Director to ensure that the Village is fiscally healthy. She doesn’t understand what this resolution is hoping to accomplish. Trustee Caulfield stated that passing the resolution makes it crystal clear that the Village has gone through the process of identifying the problems and is trying to resolve the problems. Trustee Porch stated that she had asked some questions related to this at the committee meeting this morning and that this was to help protect the Village. Attorney Long stated that this resolution acknowledges the existence of the issue and establishes the basis to remedy the situation. Since there is not enough money, in the general fund, to resolve this immediately it probably means that utilization of co-mingled funds may occur and this is the best possible approach to clarify that the Village is trying to resolve the situation. Trustee Larson stated that this document says what we are already doing, so is it really necessary. Mayor Maravelas stated this way we have it in writing. On roll call, the vote was: YES: 3: Caulfield, Porch and Hanson NO: 2: Larson and Turner ABSENT: 1: Pierce THE MOTION CARRIED
PUBLIC SAFETY, PUBLIC WORKS AND UTILITIES	Ordinance revising Water and Sewer Rates – Trustee Hanson introduced Harold Warren, of Warren Associates, and asked him to explain the information he had put together on the Water and Sewer Rates. Mr. Warren summarized the information in the letter he provided to the board. His recommendation is to continue the $10.00 minimum and increase the water from $1.00 per 1000 gallons of water to $1.25 per 1000 gallons. Trustee Caulfield asked how he justifies an increase of only $1.25 when the actual cost is $1.50. Mr. Warren stated that the $1.25 comes close to the requirement and between the minimum charge and the rate of $1.25 it will come close to the cost of producing water. Trustee Porch asked if currently the Village is charging $1.00 and it costs $1.50 to produce the water. Mr. Warren stated the $1.50 includes the current bonds that the Village has. She then asked how the Village could show net revenue if $0.50 is being lost on every gallon. Trustee Larson asked if it is the minimum charge that offsets it. Mr. Warren explained that the estimated expenses are higher than the actual water department expenses. He also stated that the records are not always accurate as to what comes from the sewer and what comes from the water so some of it is a figment of accounting procedures. Ordinance revising Water and Sewer Rates cont’d –Trustee Porch stated that the numbers Mr. Warren put together don’t show any increases after the first 2 years. Mr. Warren stated that extra costs are included for maintenance and the bonds. Trustee Hanson asked if these figures include the East Sub area. Mr. Warren responded that they have not talked about those rates yet and then explained that his recommendation is to continue the $22.00 minimum charge and to set a rate of $3.10 per 1000 gallons (comprised of the $2.60 county rate and a $0.50 rate for the Village) for the East Sub area. Mr. Warren stated that that there is an ordinance that could be ready for the next meeting. Trustee Hanson asked if there should be a committee meeting to discuss this further. Trustee Larson stated she did not feel one was necessary, since Mr. Warren explained everything so well. Trustee Hanson stated that if everyone felt comfortable, they could just discuss it at the next meeting.
PARKS AND LICENSE	Trustee Larson stated there was no written report but did give a summary of the committee meeting that occurred on April 7, 2004.
ENGINEERING AND SENIOR SERVICES	Trustee Larson stated there was no written report.
ATTORNEY	Ordinance 04-04-15 – Attorney Long read the ordinance. Trustee Porch made a motion, seconded by Trustee Turner, to waive the second reading, approve and publish in pamphlet form an ordinance, 04-04-15, entitled AN ORDINANCE REPEALING THE MUNICIPAL UTILITY TAXES. Trustee Larson stated that the 4th whereas says that it is in the best interest of the Village to repeal the tax and that the original ordinance states that the Village is obligated to repeal when the funds are paid back. She asked that the language be changed. Trustee Turner took back her second and Trustee Porch took back her motion. Attorney Long read the amendment he made to the ordinance. Trustee Porch made a new motion and Trustee Turner seconded the new motion. On roll call, the vote was: YES: 5: Larson, Caulfield, Porch, Hanson and Turner NO: 0 ABSENT: 1: Pierce THE MOTION CARRIED Resolution 04-06 – Attorney Long read the resolution. Trustee Hanson made a motion, seconded by Trustee Caulfield, to approve resolution 04-06, entitled A Resolution Requesting the Federal Railway Authority to Continue Research on Alternatives to Provide Safe Rail Crossings Without Blaring and Disturbing Train Horns. Trustee Porch stated that she did not feel that the Village had any business passing the resolution until the crossings were more secure and safe. Trustee Hanson stated that his understanding was that the purpose of this resolution was to take it to the Federal Railway Authority (FRA) to inform them of alternatives. Trustee Turner sited a recent incident at one of the crossings where a police officer witnessed a close encounter between a vehicle and a train. Trustee Porch stated that she thinks Mr. Knutsen is doing a wonderful job, but that she thinks that this should wait until the safe crossing are in place. Mayor Maravelas stated that there is a new concept for gates and that they can’t do the things they want to without keeping the “no horn zone”. Trustee Hanson stated that the new gates are a part of why this resolution is needed. Trustee Turner was concerned that there would be no horns and Trustee Larson explained that the railroads would sound their horns regardless of the resolution. Trustee Hanson stated this was more a tool to show the FRA what we want. Trustee Turner verified that this resolution is to say that we want the safe crossings so that horns aren’t necessary. Trustee Caulfield asked if sections one, two and three could be combined to show that the Village wants the sound reduced but that we are thinking of safety. Trustee Caulfield amended his second and Trustee Hanson amended his motion. On roll call, the vote was: YES: 5: Larson, Caulfield, Porch, Hanson and Turner NO: 0 ABSENT: 1: Pierce THE MOTION CARRIED Executive Session – Attorney Long stated that a Trustee requested an executive session for purchase of property. A motion was made by Trustee Hanson for the Mayor and the Board of Trustees to move into executive session at 8:12 PM. Trustee Larson seconded the motion. On roll call, the vote was: YES: 5: Larson, Caulfield, Porch, Hanson and Turner NO: 0 ABSENT: 1: Pierce THE MOTION CARRIED Mayor Maravelas left at 8:13 PM. Mayor Pro-Tem – Trustee Turner made a motion, seconded by Trustee Larson, to appoint Trustee Hanson as Mayor Pro-Tem. All of the Trustees were in favor. Return – Trustee Hanson made a motion for the Mayor and the Board of Trustees to return from Executive Session to the open meeting at 8:25 PM, with no action taken. Trustee Porch seconded the motion. On roll call, the vote was: YES: 5: Larson, Caulfield, Porch, Hanson and Turner NO: 0 ABSENT: 1: Pierce THE MOTION CARRIED
ADJOURNMENT	A motion was made by Trustee Porch and seconded by Trustee Caulfield to adjourn the regular meeting of the Board of Trustees at 8:30 PM.