St. John Indiana - Founded 1837
Return to Menu

June 27, 2013 Town Council Minutes

Michael Forbes, PresidentAttorney David Austgen
Larry Bustamante, Vice-PresidentSherry Sury, Clerk-Treasurer
Gregory VolkSteve Kil, Town Manager
Mark Barenie 
Ken Gembala 

CALL TO ORDER:
Mr. Forbes called to order the regular meeting of the Town Council for June 27, 2013, at 7:10 p.m. (The Pledge of Allegiance was recited.)

ROLL CALL:
Roll call was taken by Clerk-Treasurer, Sherry Sury, with the following members present: Michael Forbes, Larry Bustamante, Gregory Volk, Mark Barenie and Ken Gembala. Staff members: Steve Kil. Attorney Austgen was present. Chief Frego was present. Chief Willman was present. Chip Sobek was absent. Recording Secretary, Susan E. Wright, was present.

APPROVAL OF MINUTES:
MAY 23, 2013, REGULAR MEETING
JUNE 13, 2013 EXECUTIVE SESSION

Mr. Forbes stated he would entertain a motion to approve the regular meeting minutes from the May 23, 2013, Town Council, and the June 13, 2013, Executive Session. He asked if there were any questions or comments on the aforementioned meeting minutes. Hearing no comment from the Council, Mr. Forbes stated he would entertain a motion. Mr. Barenie made a motion to approve the regular meeting minutes of the May 23, 2013, Town Council meeting, and the minutes of the June 13, 2013, Executive Session. Mr. Volk seconded the motion. The motion was carried by voice vote (5/0).

SWEARING-IN NEW POLICE OFFICER
Mr. Forbes announced that there would be two presentations before the Town Council this evening. The first presentation was the swearing-in of the Police Department's new officer, David Wortsman. Mr. Forbes stated that David Wortsman is the grant officer. Chief Frego explained that David Wortsman is a military veteran and he was hired with grant monies received in 2012.

Mr. Forbes asked that Mr. Wortsman be sworn in. Clerk-Treasurer, Sherry Sury administered the oath to David Wortsman.

(Applause from the audience.)

The Council extended congratulations and best wishes to Officer Wortsman.

(Photographs are taken.)

PRESENTATION: STATE REPRESENTATIVE, HAL SLAGER
Mr. Forbes introduced Mr. Hal Slager, State Representative. Mr. Slager informed the Board that the Indiana General Assembly has adjourned for the year. He explained he is part of a citizen legislature that does not work full-time like the Illinois legislature does. Mr. Slager stated he returns to Indianapolis a couple of times a month during the adjournment.

Mr. Slager stated he has been busy making reports, speeches and working on new legislation. Mr. Slager stated he wanted to make the Town Council members aware that he represents their district, which is truly a tri-town district including the north part of St. John, most of St. John Township, Schererville, Dyer and the south side of Griffith. He stated the one common element that these communities share is the school district. He stated that when the district was created it was of interest to him because even though there are separate town councils and borders it is truly a tri-town community.

Mr. Slager explained to the Council that the best time to build legislation is now. He stated that the process of getting a bill passed is extremely complicated as a proposed bill must pass through two houses, conference committees and anywhere from one to several committee hearings. Mr. Slager stated that the key is getting a bill to the floor of the General Assembly.

Mr. Slager stated that this process should start now as now is the time he can be working with committee chairman, working through issues with stakeholders and trying to develop a bill that will stand a chance of moving through the statehouse on both sides. Mr. Slager invited the Council and Attorney Austgen to apprise him of any issues or ideas they might have related to legislation. Mr. Slager stated that approximately half of the bills being worked on are being fixed, repaired or adjusted from prior sessions. He stated amending bills is a part of the process.

Mr. Slager stated he would like to represent St. John as well as possible on any issues or concerns that they may have. He stated that the State of Indiana has a balanced budget, has maintained their reserve and has restored all of the prior cuts to much of the budget, particularly in education. Mr. Slager stated that cash is being paid for some of the projects that higher education is conducting at some of the state universities.

Mr. Slager stated that the best thing that can happen is that the economy improves. He stated he would be happy to answer any questions.

Mr. Barenie asked Mr. Slager to elaborate on his comments on "higher education and paying cash." Mr. Slager stated that the Commission for Higher Education recommends an amount that they are seeking for funding the state universities, and also to encourage more degrees. Mr. Slager stated that the state is not doing well in degree delivery. Mr. Slager stated that the state has fully funded what higher education requested.

Mr. Slager stated that there is a capital budget of approximately $190 million dollars for physical plant improvements is being funded entirely, and cash is being used to pay off bonds, thus saving the taxpayers several million dollars in interest.

Mr. Slager explained that there is a shortfall in science and technology degrees. He stated incentives have been put into place to encourage more students to seek science and technology degrees. He stated that H.B. 1002 was an attempt to put a blue ribbon panel together that will evaluate what the businesses in the State need so that students can be educated, even at the high school level, best for college and/or technical jobs.

Mr. Slager stated one of the alarming statistics presented by higher education is that in 2012, over 10,000 (college bound) high school students required remediation in order to perform at the college level. Mr. Slager stated that they are trying to do a better job at the state university level to achieve as many degrees as possible (preparing college bound students) and thus maximizing taxpayer dollars.

The frozen tax levies were discussed. Mr. Kil asked Mr. Slager if he was very confident that the ban (frozen levies) on the communities in Lake County has been lifted. Mr. Slager explained that he was one hundred percent sure that this would happen. Mr. Slager stated that the frozen tax levy topic was deemed an emergency so the bill will be effective as soon as it is signed by the Governor. Mr. Slager stated that Senate Bill 585 had an amendment added to it that unfroze the tax levy.

Mr. Slager mentioned that the county income tax that was recently passed was required in order to lift the frozen levy on the property tax. He stated that it was a stroke of luck in timing that this bill was passed. Mr. Slager told the Council that he has been accused of playing politics because of the timing of the amendment in S.B. 585, as it related to the Lake County Council's passage on first reading of the county income tax. He stated that he had no control of when Senate Bill 585 would clear the Senate, when it would clear a committee in the House or even when it would be called down on second reading so that he could apply the amendment. Mr. Slager explained that Senate Bill 525 was called down for second reading the day after the Senate amended the House budget bill requiring a wheel tax in order to get the road funding dollars.

Mr. Slager stated that his argument was that the legislature must be taken out of the penalty business. He stated that creating incentives is fine, but the idea of the legislature withholding money and forcing units of government to perform actions that the legislature thinks they should do is wrong. He stated that this type of thinking is wrong because the money withheld belongs to the taxpayers and not the legislature. Mr. Slager stated that there is no penalty provision if a county does not have a wheel tax.

Mr. Kil asked if the Town could expect an increase when the tax draw is received at the end of 2013. Attorney Austgen asked how this could happen outside of the budget process; he asked if a budget cycle had to occur before this could happen. Mr. Slager explained that the money that is coming in 2013, would be based on the previously approved levy. Mr. Slager stated he does not think the Town will see the funding increase in this calendar year, but next year in 2014.

(General discussion ensued.)

Mr. Slager stated he would have to consult with someone as to how the recently passed Lake County income tax will be assessed and distributed. He stated he debated with legislators from north Lake County about the income tax.

(General discussion ensued.)

Attorney Austgen mentioned the 911 consolidated dispatch project, and the new government entity that will be created by this consolidation. He asked Mr. Slager if there was something that the Town Council and/or its leaders could do to work with Mr. Slager or his colleagues to address, at the very least, the streamlining and/or minimization of both the tax and/or loss of service components or a combination of both given the state of the law as it presently stands. Mr. Slager stated, at this point in time and from his understanding from other legislators, Lake County was the big point on the radar as far as the savings achieved by such a consolidation. Mr. Slager recommended that it would be difficult to see or argue for a change in front of the legislature without some legitimate alternative plan.

Mr. Slager stated that it was his understanding that Lake County now has someone in place with experience in the 911 consolidation process. Mr. Slager stated that there would have to be a legitimate concept to present to the legislature that a better way of saving money has been discovered if an alternative was to be presented. Mr. Slager noted, clearly, the goal of the 911 consolidation was to save money. Mr. Slager stated that much has been made about the communication component of the 911 consolidation. He stated that everyone could clearly agree that there has to be some opportunity for savings. Mr. Slager noted that if one-quarter percent of the tax levy from the county income tax is distributed to public safety there will be money available to fund the 911 consolidation.

Mr. Barenie noted that there seems to be no clear understanding or method in place for how the county income tax will be allocated. He asked if there were distribution models in place that would work to equitably distribute the 1.25% county income tax. Mr. Slager concurred that the operative word was the definition of "equitably."

(General discussion ensued.)

Mr. Slager stated the 1.25% Lake County income tax would generate a significant amount of money (approximately $135 million) that now has to be reallocated. Mr. Slager stated that this summer there is a committee who will be studying the relationship between the tax levy and the cap. He stated it was never anticipated that the circuit breaker caps would be put into the Constitution and have the immediate effect of dropping property values by 20-25%, which, in turn, pushed a significant amount of homeowners up against the cap. He explained taxes with these caps have become a very fluid and dynamic uncertainty. Mr. Slager stated that is precisely what the study committee is investigating this summer.

Mr. Slager stated he hoped he answered Mr. Barenie's question, but he had no straightforward answer for him. The Council had no further questions for State Representative, Hal Slager. The Council extended their thanks to Mr. Slager for attending the meeting.

NEW BUSINESS:
A. RESOLUTION NUMBER 13-06-27, A RESOLUTIONJ FOR AN INTERLOCAL COOPERATIVE AGREEMENT FOR THE PURPOSE OF A STUDENT RESOURCE OFFICER (SRO) AT LAKE CENTRAL HIGH SCHOOL.

Mr. Forbes stated that the Council would have a brief discussion on the Interlocal Agreement for the Student Resource Officer. Mr. Forbes asked Attorney Austgen or Mr. Kil to elaborate on this matter. Mr. Kil stated he had a recent conversation with Attorney Cheryl Zic, school district attorney, related to the Interlocal Agreement. He stated he has received a faxed document which outlines the school district's concerns with the Interlocal Agreement.

Mr. Kil stated he reviewed the document together with Attorney Zic, and he agreed that the Town would revise the position description in a manner that will address their concerns. The revision on the position description would then be submitted to Attorney Zic. Mr. Kil stated that Attorney Zic will write language related to the hiring process (selection, retaining of the officer, qualifications) that the school district would like to see incorporated into the Interlocal Agreement. Attorney Zic's proposed language will be submitted to the Town for their review.

Mr. Kil stated that he and Attorney Zic discussed the urgency of completing the Interlocal Agreement prior to school starting in August. Mr. Kil stated it is their intention to have the Student Resource Officer in the high school at the start of the school year. Chief Frego concurred that this was the plan.

Mr. Kil mentioned that Dr. Veracco voiced concerns in the event that the state starts a grant program and more grant money becomes available. Mr. Kil stated that the Town and the School District have different ideas for the use of future grant money if and when it becomes available. Mr. Kil stated he and Attorney Zic discussed the use of the grant money. Mr. Kil stated that Attorney Zic will propose some language related to this matter and submit it to the Town for Attorney Austgen's review.

(General discussion ensued.)

Attorney Austgen noted that the school district has had a draft of the agreement since December, and the Town just received their comments a few days ago. He stated any substantive changes to the agreement need to be dealt with immediately.

(General discussion ensued.)

Mr. Slager had additional information to pass on to the Council related to grant money. He stated that Senate Bill 1 was passed. Senate Bill 1 includes a program for funding of grants. He informed the Council that the grants would be going to the school corporations. Mr. Slager stated that schools can use the grant money for any purpose including labor, equipment and supplies. He stated that the grants are based on the size of the school corporation. Mr. Slager noted that Lake Central will get one of the larger grant shares based on their size. Mr. Slager reiterated that the grant money would go to the school.

(General discussion ensued.)

Attorney Austgen stated that the Council was not ready to act on Resolution Number 13-06-27, but there is additional data to work on which will be drafted into the agreement and submitted to the Council for their review.

(General discussion ensued.)

Mr. Kil stated that the concerns of the school corporation seem to be proprietary to the Town and the school and related to operational issues.

Mr. Kil stated that Attorney Zic was not interested in creating a side agreement between the Town and the School in addition to the Interlocal Agreement. Chief Frego stated that the language in question cannot conflict with Police Department policies.

(General discussion ensued.)

Mr. Kil stated that he would submit to Chief Frego the language that Attorney Zic has proposed for inclusion into the agreement, including the position description, for his review. Mr. Kil stated that the school corporation has specific rules and regulations that must be followed with regard to the students. Mr. Kil stated both sides have items to work on at the present time.

Mr. Forbes directed Mr. Kil to keep in touch with Chief Frego with regard to the agreement. Mr. Forbes noted that the individual placed in the school, first and foremost, is a St. John police officer, and will be a St. John police officer. Mr. Kil concurred.

Attorney Austgen remarked that the Town of Schererville is waiting on the final Interlocal Agreement. Mr. Forbes stated that the Town of Schererville is prepared to move forward, and any revisions should not have a significant impact on the agreement. Mr. Kil stated his understanding is that all four entities, the three towns and the school corporation, are all on board relative to the Interlocal Agreement.

Mr. Forbes stated he would ask that the Council defer the Interlocal Cooperative Agreement. Mr. Gembala made a motion to defer Resolution Number 13-06-27. Mr. Bustamante seconded the motion. The motion was unanimously carried by voice vote (5/0).

B. CONSIDER ANNUAL CONTRACT WITH ST. JOHN VOLUNTEER FIRE DEPARTMENT.

Mr. Forbes stated that the Council would consider the annual contract with the St. John Volunteer Fire Department. He asked the Council for any questions or comments. The council members had no comments.

Mr. Forbes stated he would entertain a motion to approve the annual contract with the St. John Volunteer Fire Department and authorize the Town Council President, Michael Forbes, to sign the same. "So moved," by Mr. Barenie. Mr. Volk seconded the motion. The motion was unanimously carried by voice vote (5/0).

C. CONSIDER VARIANCE OF USE REQUEST FOR ST. JOHN TATTOO PARLOR (FAVORABLE RECOMMENDATION FROM THE BOARD OF ZONING APPEALS).

Mr. Forbes stated that the Council would consider a variance of use request for a tattoo parlor in St. John. He noted that this matter was before the Board of Zoning Appeals on Monday, June 24, 2013, and the Board forwarded a favorable recommendation to the Town Council. Mr. Forbes asked for any comments or questions.

Mr. Volk noted the conditions attached to the favorable recommendation as follows: time of operation, Monday through Saturday 12:00 p.m. to 9:00 p.m., Sunday, 1:00 p.m. to 5:00 p.m., and meeting all local and state licensing requirements prior to occupancy. Mr. Forbes noted that name of the tattoo parlor would be "Syndicate Designs."

Mr. Gembala asked if there were any remonstrators at the Board of Zoning Appeals meeting. Mr. Kil informed the Council that there were no remonstrators at the Board of Zoning Appeals meeting. Mr. Volk asked for the location of Syndicate Designs. Mr. Kil stated that the tattoo parlor would be located near the post office.

(General discussion ensued.)

Mr. Richard Kivo and Mr. Terry Ward, owners of Syndicate Tattoo, were present in the audience. Mr. Barenie asked if this was the first store the owners would be opening. One of the Petitioners responded that this would be their second store, their first store being located in Chicago Heights.

(General discussion ensued.)

Mr. Gembala stated one of his concerns, with the store being open until 9:00 p.m. would be groups congregating outside of the business due to the proximity of the bar. The Petitioners assured the Council that this would not be the case. Mr. Bustamante asked if the business would be closing at precisely 9:00 p.m. The Petitioners informed the Board that their last appointment of the day would be scheduled at 7:30 p.m. so as not to run past 9:00 p.m.

Mr. Forbes stated he would entertain a motion to accept/decline or take no action on the recommendation from the Board of Zoning Appeals to approve the special exception for the tattoo parlor, Syndicate Designs. Attorney Austgen informed the Council that they could also defer action on this matter. Attorney Austgen stated that the Council could approve the business with the contingencies identified and presented by the Board of Zoning Appeals.

(General discussion ensued.)

Mr. Bustamante asked if it was necessary for the business to be open on Sunday. The Petitioners stated that they would defer to the Council's request not to open for business on Sunday. Mr. Gembala informed the Petitioner(s) that any action taken by the Council did not include their signage; he informed them that that would have to seek a separate permit for signage. The Petitioners concurred.

Attorney Austgen noted that the record should reflect that the Petitioners voluntarily removed Sunday as a day of business for Syndicate Design, based upon the discussion of the Council. The Petitioners concurred with the Council's decision.

Mr. Forbes asked if there was a motion to accept the favorable recommendation from the Board of Zoning Appeals for Syndicate Design, removing the Sunday operations from 1:00 p.m. to 5:00 p.m. "So moved," by Mr. Volk. Mr. Bustamante seconded the motion.

Mr. Forbes asked if there was any further discussion on this topic. Mr. Gembala asked that all of the other conditions set forth by the Board of Zoning Appeals be included in the motion.

Mr. Volk stated that he would amend his motion to accept the favorable recommendation from the Board of Zoning Appeals with the following conditions: time of operations, Monday through Saturday from 12:00 p.m. to 9:00 p.m.; no business operations on Sunday which was voluntarily given up by Petitioners; business must meet all of the local and state licensing requirements prior to occupancy; and Petitioners are aware that signage for the business must be addressed by seeking a separate permit.

(General discussion ensued.)

In addition, Mr. Volk amended the motion to include no outside sales, and all business to be conducted inside the building. Mr. Forbes noted this was merely a point of clarification; he asked Mr. Bustmante if he was going to re-second the motion. Mr. Bustmante seconded the motion. The motion was carried by voice vote (4/1/0). Mr. Barenie was opposed.

D. CONSIDER REQUEST FOR SPECIAL EXCEPTION FOR A SKILLLED NURSING FACILITY. PETITIONER: PROVIDENCE LIFE SERVICES (FAVORABLE RECOMMENDATION FROM THE BOARD OF ZONING APPEALS). REPRESENTATIVE, JEFF COURTNEY.

Mr. Forbes stated that the Council would consider a special exception for a skilled nursing facility. He noted that the Petitioner, Providence Life Services, received a favorable recommendation on Monday, June 24, 2013, from the Board of Zoning Appeals. Mr. Jeff Courtney, representative for Providence Life Services, was present at the meeting.

Mr. Forbes refreshed the Council's recollection that they had recently approved a rezoning of a small corner parcel of the development. Mr. Forbes stated that a favorable motion would allow the Petitioner to operate a skilled nursing home on the rezoned property.

(General discussion ensued.)

Mr. Kil noted that no contingencies were placed on the project. He stated that there will be an exhaustive process before the Plan Commission. He stated if there are any contingencies or restrictions on the project that the Plan Commission will handle them in the event that the special exception is approved by the Council. Mr. Forbes commented that the concept plan looks very good. Mr. Kil added that it will be a beautiful facility added to the Town.

Mr. Forbes stated he would entertain a motion to accept the favorable recommendation from the Board of Zoning Appeals for a special exception for the skilled nursing facility. "So moved," by Mr. Barenie. Mr. Bustamante seconded the motion. The motion was unanimously carried by voice vote (5/0).

E. RESOLUTION NUMBER 13-06-27A, A RESOLUTION PROVIDING FOR THE TRANSFER OF APPROPRIATIONS.

Mr. Forbes stated that the Board would consider Resolution Number 13-06-27A, a resolution providing for the transfer of appropriations. Mr. Forbes stated it was his understanding that this was a transfer to pay for the squad car that is being replaced. Mr. Forbes asked if a Request to Purchase had been submitted. Mr. Kil stated that the request has already been approved. Mr. Forbes stated he never saw it.

Mr. Forbes stated he would entertain a motion to adopt Resolution Number 13-06-27A. Mr. Gembala made a motion to transfer funds to pay for the police car. Mr. Bustmante seconded the motion. The motion was unanimously carried by voice vote (5/0).

REPORTS AND CORRESPONDENCE:
TOWN COUNCIL:

Mr. Gembala stated with all of the storms that have gone through Town, debris is being picked up on Saturdays. He thanked Public Works for getting the job done. Mr. Gembala stated he has heard some good comments from his neighbors. Mr. Kil stated that the crew has been working nonstop on picking up branches from the recent storms.

Mr. Volk had nothing to report.

Mr. Bustmante stated that the crew is working diligently on the chipping. He stated that citizens need to be patient because there is a lot of chipping that must be done and there are only two chippers.

Mr. Barenie stated he spoke with Attorney Austgen this morning following up on some departmental reports on personnel and staff. He stated that he is looking at the present staff for potential cross-training, possible promotions, et-ecetera. Mr. Barenie asked Attorney Austgen if he could devise a method that the Council could agree on to follow, and set up a meeting for review. Mr. Barenie stated everyone should be comfortable with the process.

Attorney Austgen stated that in order to meet and comply with the law, the Council must be certain that they don't cross lines into areas that are not permitted to be conducted, or meetings to be held in Executive Session that are not permitted. He stated that the items Mr. Barenie is talking about are typically work/study session items such as when discussing general policy, circumstances related to policy, budget and needs, et-cetera. Attorney Austgen recommended that a study session be held for these types of matters.

Attorney Austgen stated that the other component is a dual component. He stated that there is a need to evaluate personnel or Department Heads, given the data that has been solicited from them and from Mr. Kil. Mr. Austgen stated that reviewing employees for performance and administration of the policy for the benefit of the citizens and their effectiveness in implementing policy is an evaluation. He stated that the Council is expressly permitted to conduct this type of a meeting in an Executive Session.

Attorney Austgen recommended that a work study session be held as soon as possible where the Council can bring the Department Heads in in whatever fashion is most effective for them. He stated there are several reasons to conduct the work study session including the upcoming budgeting process which includes a significant amount of new law, new impacts, new revenues, new expenses and new needs.

Attorney Austgen noted that the Town's budget for this year may be the most interesting budget year in a number of years given some of the information that Mr. Slager has provided, information reported to the Council by Mr. Kil and Attorney Austen and information provided by the Department Heads. Attorney Austgen noted that the budget process commences in August so he advised the Council to conduct the work study session so they will be the most informed and prepared legislators to enact their budget and policy going forward.

Attorney Austgen again urged the Council to hold the study session as soon as is practical and possible for the budget and with regard to the the evaluations of Department Heads. He recommended that the evaluation process should be done a couple of times of year especially in coordination with the Town's lead administrator, Mr. Kil.

(General discussion ensued.)

Mr. Barenie stated he has learned a lot about the different departments from the four or five reports that he has reviewed. He stated he would like, at a minimum, to receive these reports on an annual basis. Mr. Forbes stated that he briefly discussed this matter with Mr. Kil and Attorney Austgen.

(General discussion ensued.)

Mr. Gembala noted some of the reports he received are very good. Mr. Gembala opined that it is important for all of the councilmen be available for the meeting.

Attorney Austgen stated he would work with Mr. Kil on the notice and the topics so that everything meets the requirements of law clearly and without question. Mr. Forbes stated that after the information gathering, at the study session, the councilmembers should have time to think about what was discussed. Mr. Forbes stated Mr. Barenie is implying that the Council will go into Executive Session, discuss topics that cannot be addressed at the work study session and come out and take action. Mr. Forbes stated that he may not want to take immediate action.

Mr. Barenie stated that the Council has had the reports for a few days, and they will now have them for another two weeks. He stated this should be an adequate amount of time to learn about the thoughts of their leaders. Mr. Barenie stated that the Council will have the study session to discuss matters and an Executive Session to hash out matters that must be addressed in Executive Session. Mr. Barenie stated after the Executive Session the Council could take action, if necessary, at the regular public meeting.

(General discussion ensued.)

Attorney Austgen recommended that the meetings be held in the following sequence, Study Session, Executive Session, and regular meeting. Mr. Forbes concurred. Attorney Austgen stated that the Council may want to take more time to review matters, therefore, they would not have to act on anything at the regular meeting.

Mr. Forbes stated that the meetings would be scheduled for July 25, 2013.

CLERK-TREASURER:
Ms. Sury had nothing to report.

ATTORNEY'S REPORT:
Attorney Austgen had nothing to report.

STAFF:
Mr. Kil informed the Council that the latest construction summary for the Town as of June 27, 2013, reflected 93 residential permits for new construction, and on this date in 2012, the Town had issued 63 residential permits for new construction.

Mr. Kil informed the Council that he has supplied them with a market update on the Building Corporation refinancing. He directed the Council members to the four key bullet points on Page 2. He stated this information was provided to him by Todd Krzyskowski, the Town's underwriter at Mesirow Financial.

Mr. Kil explained when the refinancing process was first commenced the bond market was fantastic. He stated since that time, the bond market has softened and interest rates have risen. Mr. Kil stated that the underwriter has informed him that if the Town refinances right now the savings would be in the neighborhood of $350,000.00 rather than the $950,000.00 previously cited.

Mr. Kil stated that he was informed by Mr. Krzyskowski that he expects that the interest rates will tick down slightly. Mr. Kil stated that there will be weekly conference calls among him, Attorney Austgen, Todd Krzyskowski and Carl Cender, the Town's financial advisor. Mr. Kil indicated that this matter is being followed closely. Mr. Kil stated that the market should recover enough so that the Town's refinancing of the Building Corporation bonds will save between $500,000-$600,000, a 6 to 7% savings.

Mr. Kil stated that the Town has received a great rating from Standard & Poor. Attorney Austgen informed the Council that he had a very difficult discussion with the Town's underwriter, Todd Krzyskowski about his lack of reporting to the Town. Attorney Austgen stated that hours had been spent on the telephone with the underwriter, four business days apart and the Town was never informed of a soft market or a changing environment.

Attorney Austgen noted if the Council would look on Page 4, they will to see the progression of the flow chart. The flow chart and its course were discussed by Attorney Austgen. He noted the approximate time period that the Town received the pro forma report for an estimated the savings in the $900,000 to $1 million dollar range. Mr. Austgen noted the next date marking was at June 19, 2013, at which time the rate was as low as it has gone since November to December 2011.

Attorney Austgen stated that everything is now in place for the refinancing. He stated he would not recommend, nor would Mr. Kil recommend, nor would the Town's consultants recommend that the Town proceed with the refinancing at this time. Attorney Austgen recommended that the interest environment be carefully watched. He stated that the underwriter will receive strict directions about weekly reports, at a minimum, to the Town. Attorney Austgen noted there will still be a savings, but it is certainly not what was discussed.

(General discussion ensued.)

Attorney Ausgten stated neither he, Mr. Kil nor the Town's financial consultants would have recommended that three percent (3%) would have been the trigger at which they would have authorized Mr. Kil to proceed with the refinancing. Attorney Austgen stated that, given the state of the economy, a refinancing at three percent (3%) would never have been attempted; he stated three percent would have been a waste of time.

Attorney Austgen stated that more information would be received tomorrow on the state of the refinancing of the Building Bonds, with weekly updates. Mr. Forbes asked what the Council's course of action should be. Attorney Austgen stated that a short notice meeting for direction on the Building Corporation bond refinancing might be in order.

(General discussion ensued.)

Mr. Barenie recommended that the Council tread carefully here. He stated if the market rates change again, he would like to be informed. Attorney Austgen stated that all approvals are in place at the present time so all the Council would have to do is authorize Mr. Kil to proceed. Mr. Volk concurred that the only thing for the Council to do would be to hold an emergency meeting in order to authorize the Building Corporation bond refinancing if the interest rates go down again. Mr. Volk opined that the bond market rates will continue to climb due to moves made by the Federal Reserve. Mr. Forbes stated that the Council would stand by for the conference call tomorrow and decide from there.

Mr. Forbes noted there are several Requests to Purchase, one from Precision Concrete Cutting to repair some trip hazards on some of the sidewalks; the request had a not to exceed amount of $5,000. Mr. Forbes asked for a motion to approve this request to purchase.

(General discussion ensued.)

Mr. Volk made a motion to approve the contract with Precision Concrete Cutting to repair trip hazards on sidewalks not to exceed $5,000.00. Mr. Gembala seconded the motion. The motion was unanimously carried by voice vote (5/0).

Mr. Forbes noted a Request to Purchase from the Clerk's Office in the amount of $4,766.36 for codification. Mr. Forbes asked Ms. Sury to elaborate on this codification request. Ms. Sury informed the Council that every couple of years a codification is done for the Town Code. Attorney Austgen informed the Council that a codified Code of Ordinance is a statutory requirement. "So moved," by Mr. Volk. Mr. Gembala seconded the motion. The motion was unanimously carried by voice vote (5/0).

Mr. Forbes noted a third Request to Purchase received from the Park Department, not to exceed $65,000.00, to replace swing sets. Mr. Kil Mr. Kil stated that the Park Board has identified swing sets throughout Town that need to be replaced. Mr. Kil noted that this is a maintenance item. He stated that the various parks where the swing sets will be replaced are listed.

(General discussion ensued.)

Mr. Forbes stated that he would entertain a motion to approve the not to exceed amount of $65,000.00 to replace and install the swing sets in Timberland, Homestead, Prairie West and Edgewood Parks. "So moved," by Mr. Volk. Mr. Gembala seconded the motion. The motion was unanimously carried by voice vote (5/0).

Mr. Forbes stated that another Request to Purchase was submitted from the Park Department for $7,200.00 to replace pavilion roofs. Mr. Forbes noted that he has seen the pavilion roofs and the shingles have blown off the roof.

(General discussion ensued.)

Mr. Forbes stated that the requested $7,200.00 will be used to repair the Schilton Hills and Homestead pavilion roofs. Mr. Gembala made a motion to approve the re-shingling of the pavilion roofs not to exceed $7,200.00. Mr. Volk seconded the motion. The motion was unanimously carried by voice vote (5/0).

Mr. Forbes stated there was one last Request to Purchase submitted for the fuel bill. Mr. Forbes noted the Al Warren Oil Company bill was in the amount of $27,093.15. He asked for a motion to approve the Al Warren Oil Company bill in the amount of $27,093.15. "So moved," by Mr. Bustamante. Mr. Gembala seconded the motion. The motion was unanimously carried by voice vote (5/0).

Chief Willman delivered the Fire Department's regular monthly report for May, 2013.

Chief Frego delivered the Police Department's regular monthly report for May 1 through 31, 2013.

PAYMENT OF BILLS:
Mr. Forbes noted that Council would address the payment of the bills for the corporation. He stated he would entertain a motion to approve payment of bills for APVs 7870 through 8089 in the amount of $1,471,093.01. Mr. Forbes noted that the same bills are on the docket again for Ms. Harlovich. He asked the councilmembers for their thoughts on this matter. Mr. Barenie advised not to duplicate payments and not pay this bill; he stated he was referring to Voucher Number 8022. Mr. Forbes concurred that Voucher 8022, was a three part bill in the amount of $210.00. Mr. Forbes stated that this topic was touched on briefly but has not been discussed in depth. Mr. Forbes stated that there was a suggestion to remove the bill in question and to continue discussion.

Mr. Forbes stated he would entertain a motion to approve general APVs 7870 through 8089, excluding and removing Docket Number 8022 in the amount of $210.00. "So moved," by Mr. Barenie. Mr. Bustamante seconded the motion. The motion was carried by voice vote (4/0/1). Mr. Gembala abstained from the vote due to not having a chance to review this matter.

PUBLIC COMMENT:
Mr. Forbes asked if there was any public comment for the Town Council. There was no public comment.

ADJOURNMENT:
Mr. Forbes asked for a motion to adjourn the meeting. Mr. Barenie made a motion to adjourn the meeting. Mr. Volk seconded the motion. The motion was unanimously carried by voice vote (5/0). (The meeting was adjourned at 8:52 p.m.)

A TRUE COPY

_______________________________________________
Susan E. Wright
Recording Secretary St. John Town Council