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MINUTES OF THE MEETING OF THE MAYOR AND THE

COMMITTEE OF THE WHOLE

OF THE CITY OF EAST MOLINE, ILLINOIS

May 7th, 2007

 

ROLL CALL

Mayor Thodos called the meeting to order and directed Deputy City Clerk Richard Van Raes to call the roll.  The following Aldermen were present: Helen Heiland, Luis Puentes, Luis Moreno, Cheri Bustos, Rick Meredith, Roseann Cervantes, Gary Westbrook and Mayor Thodos.  Absent: None.  8:00 p.m.   ADDITIONS/CORRECTIONS TO AGENDA – None  

TAX ABATEMENT FOR FEDERAL EXPRESS   (Elliot Liebson)

BACKGROUND AND DISCUSSION:

Federal Express Freight is proposing to move their operations from the existing facility in the East Moline Industrial Park to the land immediately east and adjacent to the Quad City Downs track.  They are proposing to build a $15 million, 130,000 square foot facility, adding approximately 25 new full time and 5 new part time jobs to the existing 120 jobs.  The major hurdle is a 20-inch gas main running through the middle of the property, which is estimated to cost $600,000 to relocate.  Federal Express is requesting enterprise zone tax abatement, for which they need approval from the taxing bodies.  This tax abatement will be used to assist with the offsetting of the relocation.  United Township high school, District 30, Rock Island County, and Silvis School District have already approved tax abatement.   RECOMMENDATION:  Approve a resolution authorizing five years of tax abatement on a declining scale (75%, 35%, 30%, 15% and 10%).   BUDGET IMPACT: Federal Express completed two estimates of new Equalized Assessed Value (EAV) for their project: a 'low' EAV and an 'average' EAV, and then calculated tax abatements based on those numbers.  (These documents are attached to this agenda item).  At the 'low" EAV, the city would abate $44,356 of new revenue (out of a projected total of $147,440), but if the site is not developed, the projected revenues for those five years are only $24,761.  So, for $44,356 of abatement, the City will gain $78,323 of additional revenue over the five years of abatement.   It should also be noted that the existing facility would continue to be utilized by Federal Express, meaning no net loss of revenue from this project.   Mayor Thodos comments on the structure of the tax abatement schedule.   A lengthy discussion was held on the tax schedule and the proposed construction schedule.   A motion was made by Alderman Westbrook, seconded by Alderman Puentes, to concur with the requested action.  Upon roll call the following voted in favor: Heiland, Puentes, Moreno, Bustos, Meredith, Cervantes and Westbrook.  Motion carried.       Committee Of The Whole   5-07-07 – Page Two   2007 SANITARY SEWER SLIP LINING PROGRAM (Tim Kammler & Bruce Willemarck) BACKGROUND AND DISCUSSION: The Cities of Moline, Rock Island, and Coal Valley have been working this spring to prepare a combined sanitary sewer slip-lining project for their communities in an attempt to provide a cost savings through the large quantity of work due to a single construction contract.  Moline is coordinating the contract document preparation.  East Moline staff became aware of this project and inquired about being added to the project team, to which Moline generously agreed.   Slip-lining, or cured-in-place-pipe, is a means to replace old sewer pipes by means of introducing a resin-soaked, flexible membrane into the old sewer pipe and subsequently heat-curing the membrane with steam or hot water, the end result of which is a new composite pipe inside the old pipe.  Openings in the slip lining for service laterals are cored out utilizing a robotics machine that travels inside the sewer pipe after curing is complete.  An approximate cost per foot for slip-lining 8-inch pipe is $35/ft; reinstating service laterals is $125/ea, and traffic control and other miscellaneous work is extra.  The standard method of removing and replacing sewer pipes and laterals via trench excavation costs at least three times as much, if not more.   Maintenance and Engineering departments are recommending a 2007 Slip-Lining Program of roughly 5,400 L.F. of pipe liner and 155 laterals.  The estimated cost of the work proposed is approximately $250,000.  After bid letting, the construction contract will be presented to Council for approval prior to final authorization.   The Intergovernmental Agreement regarding the joint bidding of sewer slip lining between East Moline, Moline, Rock Island and Coal Valley is attached hereto, as is a schedule of the proposed East Moline locations.     RECOMMENDATION: Approve Intergovernmental Agreement and direct staff to proceed with the 2007 Slip Lining Program as recommended.   BUDGET IMPACT: $250,000 to be paid out of the $7 Million Water & Sewer Capital Improvement Bond.   Tim Kammler, Director of Engineering, gave a more detailed description of the "slip lining" process.   A discussion on the advantages of slip lining was held.   A motion was made by Alderman Moreno, seconded by Alderman Westbrook to concur with staff's recommendation to approve the Intergovernmental Agreement and proceed with the program. Upon roll call the following voted in favor: Heiland, Puentes, Moreno, Bustos, Meredith, Cervantes and Westbrook.  Motion carried.           Committee Of The Whole   5-07-07 – Page Three     ADJOURNMENT A motion was made by Alderman Westbrook, seconded by Alderman Puentes, to adjourn the Committee Of The Whole meeting. Upon roll call the following voted in favor: Heiland, Puentes, Moreno, Bustos, Meredith, Cervantes and Westbrook.  Motion carried. 8:18 p.m.       Minutes taken and submitted by,     _______________________________________ Richard Van Raes, Deputy City Clerk

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