MINUTES OF THE MEETING OF THE MAYOR
AND THE COMMITTEE-OF-THE-WHOLE
OF THE CITY OF EAST MOLINE, ILLINOIS
AUGUST 4, 2008
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, David Kelley, Roseann Cervantes, Gary Westbrook, and Mayor Thodos. 7:22p.m.
ADDITIONS/CORRECTIONS TO AGENDA
(Deputy City Clerk Richard Van Raes had requested in the City Council meeting that item number 5 Revolving Loan Application – Mike's Auto be removed from tonight's Committee of the Whole agenda. (Item placed on regular City Council agenda).
Before starting discussion on agenda item number one, Mayor Thodos asked Police Chief Victor Moreno to address the City Council regarding an upcoming event.
Chief Moreno reminded the City Council that on Tuesday evening, August 5th, the Police Department was sponsoring a "Night Out Against Crime". The event will be held at Empire Park from 5:00p.m. to 7:00p.m. Refreshments will be available and there will be police department demonstrations. This event is part of the National Night Out Against Crime Program.
EAST MOLINE SURVEY (Alderman Bustos /Mr. Keehner)
There are many good reasons to conduct a community survey gathering candid information from our residents and businesses alike. These reasons include among others, 1) to gather and access community needs, 2) use these community needs to establish long range and/or short term planning, 3) use these community needs to create policy options, 4) evaluate community services, and 5) take the pulse of our community to gather their likes and dislikes. A community survey can provide the foundation to work together to strengthen our community through citizenry feedback.
The community survey should be as attractive, friendly, and as personal as possible. It is important to keep the survey brief and as easy as possible to complete and should be limited to four or less pages containing straight to the point questions. These questions might be multiple choice so that the survey does not take more than 10-15 minutes of a respondent's time. To reach our goal of citizenry feedback it should be publicized. Citizens and businesses need to know why they are being surveyed and how the results will be used. They must feel confident their responses will assist the community. Above all, we will publicize the findings and use the release of findings as a means of building interest in community development.
A lengthy discussion was held on various aspects of community survey. The subjects included: history of survey, media, content and general methodology. Additional discussion on concerns of effect, accuracy and purpose.
Develop a community survey for residents and businesses alike including the process which will be used to implement it and bring back to the Committee-of-the Whole for modification and approval.
Depending upon various factors
Alderman Bustos will work with staff to further define the survey and return this item to the Committee of the Whole.
No action was taken on this item
EQUIPMENT PURCHASE (Mr. Willemarck)
The Maintenance Services Department received competitive bids to purchase a new backhoe/loader. We will trade a 1992 John Deere 310 D backhoe/loader. Listed below are the results.
Cost Less Trade = Net Cost
Martin Equipment (John Deere 310 SJ) $90,000 less $ 8,000 = $82,000
Titan Machinery (Case 580SM-3) $83,759 less $17,000 = $66,759
Purchase a new backhoe/loader from low bidder, Titan Machinery for $66,759.00
$66,759.00 is budgeted from Water Distribution Fund, Motor Pool Purchase 220-4523-743.
A motion was made by Alderman Moreno, seconded by Alderman Cervantes, to concur with staff's recommendation and direct the City Attorney to prepare the appropriate document and forward to the City Council for their approval. Upon roll call the following voted in favor: Moreno, Bustos, Kelley, Cervantes, Westbrook, Heiland, and Puentes. Motion carried.
METER BIDS (Mr. Willemarck)
The City received competitive bids for a new automated Meter Reading System to replace up to 7,000 water meters 2-inch in size and lower. This bid is for materials only. Instillation of the system is an additional cost.
7,000 bare meters and 7,000 transmitters
Accept the alternate bid for Badger for $899,602
$899,602 from Water &Sewer Capital Improvement Fund
Alderman Bustos requests discussion on Agenda Item Number 4 (Meter Installation) before taking action on Item 3. City Council concurs and discussion moves to Item 4.
(Action on this item was not taken until after discussion on item number 4.)
METER INSTALLATION (Mr. Willemarck)
Bid packets were sent out to 35 meter instillation companies. Only Professional Meters Inc from Morris Illinois submitted a proposal. The closest competitors are from Kentucky, Indiana and Wisconsin. The City requested three quotes to install Badger Meters with the Orion Automated Reading System. Instillation to be completed in 12 months after the first meter is installed
Professional Meters to complete 100 % of the instillation. $540,238
Professional Meters to administrate the instillation with 5 City workers $$632,995
Professional Meters to install 50% of the meters
City employees to install 50% of the meters. $543,059
Bruce Willemarck, Director of Maintenance Services, reports additional details on the bid process.
Accept the base bid from Professional Meters Inc., to install the Automated Meter Reading System for $540,238.
$540,238. from Water & Sewer Capital Improvement Funds.
A lengthy discussion was held on: water meters, water meter installation, number of employees required to install meters, overall budget impact, funding sources and warranties.
Dave Jacquin, President of AFSCME Local 1234, presents opinion on how city staff could be scheduled (under the AFSCME contract) to install the meters. Mr. Jacquin also addresses meter reading.
Additional discussion on training, and the use of city staff to install meters as opposed to contracting the installation. Mayor Thodos comments on funding and labor; Mr. Jacquin responds. Discussion continues on hiring employees, and project cost.
Alderman Cervantes asks about the AFSCME bidding process. Mr. Jacquin responds and explains the union bidding process. Mayor Thodos comments. Discussion continues.
A motion was made by Alderman Moreno, seconded by Alderman Kelley, to concur with the "base bid" of $540,238 to have an outside firm do 100% of the installation (of the water meters). Upon roll call the following voted in favor: Moreno, and Kelley. The following voted against the motion: Bustos, Westbrook, Heiland, and Puentes. The following voted to "pass": Cervantes. Motion fails.
A motion was made by Alderman Puentes, seconded by Alderman Heiland, to accept the alternate number 2 bid (the 50% /50% bid) in the amount of $543,059 with half of the meters to be installed by city employees and half installed by an outside firm. Upon roll call the following voted in favor: Heiland and Puentes. The following voted against the motion: Moreno, Bustos, Kelley, Cervantes, and Westbrook. Motion fails.
A motion was made by Alderman Moreno, seconded by Alderman Kelley, to table item number 4 (Meter Installation) to the next Committee of the Whole meeting (August 18, 2008). Upon roll call the following voted in favor: Moreno, Bustos, Kelley, Cervantes, Heiland, and Puentes. Motion carried.
A motion was made by Alderman Puentes, seconded by Alderman Westbrook to table Item number 3 (Meter bids) to the next Committee of the Whole meeting (August 18, 2008). Upon roll call the following voted in favor: Moreno, Bustos, Kelley, Cervantes, Westbrook, Heiland, and Puentes. Motion carried.
REVOLVING LOAN APPLICATION (Mike's Auto 660-17th Avenue)
On January 18, 2008, Elliot Liebson wrote a letter to Mr. Hughes approving the revolving loan fund request, conditioned upon certain agreements with regard to the repair facility at 660 17th Avenue, East Moline, and another set of conditions with regard to the offsite parking lot at 15th Avenue and 11th Street. A violation of these conditions would authorize the City to revoke and call the loan due on the property.
On February 4, 2008, Mr. Hughes appeared before the EDC to discuss his requested loan and the multiple conditions of the loan with regard to the operation of the 15th Avenue parking lot. Ald. Kelley made a motion to proceed with a vote on the revised letter of conditions, and the motion carried. The loan request was subsequently approved by the City Council, at its meeting on March 3, 2008, with the loan specified at $35,000.00, at 4% interest, and amortized over 5 years.
Subsequent discussions between City Attorney Phares and Mr. Hughes prompted that loan conditions be brought back to the EDC. Phares explained that in his discussions with Mr. Hughes, a mortgage is typically used as loan collateral. Mr. Hughes has agreed to provide a mortgage to secure his loan. In addition, Phares has reservations tying conditions regarding code violations to a financial loan. On July 28, 2008, the EDC approved the revolving loan fund application with a mortgage being used as collateral to secure the loan and remove all of the previous code stipulations attached to the previous loan approval.
Approval of the revised revolving loan fund and conditions approved by the EDC. The Council had previously approved the EDC loan on March 3, 2008.
The $35,000 loan had already been designated from the revolving loan fund through the previous approval. Approximately $3,600 in interest income will be generated for the revolving loan fund.
THIS ITEM WAS REMOVED FROM THE COMMITTEE OF THE WHOLE AGENDA AND PLACED ON THE REGULAR CITY COUNCIL AGENDA.
INTERGOVERNMENTAL AGREEMENT WITH SCHOOL DISTRICTS- FROZEN TIF BASE – GATEWAY TIF (Mr. Hughes)
During the negotiations for the Triumph Project and the proposed creation of a Tax Increment Financing (TIF) District, the City promised the schools that the frozen base would be a fair market value of $2,700,000 (EAV of $900,000). City staff thought there was an understanding with the County to use an arbitrary base. When the TIF was created the County Assessor said he was obligated to use the 2005 equalized assessed valuation (EVA) per State Statute. The frozen TIF base is only an EAV of $28,315. The City was advised by our TIF Counsel to enter into an intergovernmental agreement with each school district to be able to return increment to the school districts. The City would declare a surplus each year and the County would redistribute this surplus to the taxing districts.
Approve the Intergovernmental agreement with all of the affected school districts.
There would be a positive impact to the City. The City would receive approximately 20% of the surplus in the form of property taxes. The TIF would be affected each year by the amount of the declared surplus. This increase in the frozen base was taken into consideration when the development agreement with Triumph was drafted.
A motion was made by Alderman Moreno, seconded by Alderman Cervantes, to concur with the recommendation and direct the City Attorney to draft a resolution for authority for the Mayor to execute an Intergovernmental Agreement to declare a surplus each year to equal a frozen base of $2,700,000 (FMV) or $900,000 (EAV).
Douglas Riel, 21912 Barstow Road questioned affected taxing districts, TIF procedures, Equalized Assessed Valuations (EVA) and various aspects of T.I.F. Districts administration.
Upon roll call the following voted in favor: Moreno, Bustos, Kelley, Cervantes, Westbrook, Heiland, and Puentes. Motion carried.
A motion was made by Alderman Puentes, seconded by Alderman Cervantes, to adjourn the Committee-of-the-Whole meeting. Upon roll call the following voted in favor: Puentes, Moreno, Bustos, Kelley, Cervantes, Westbrook, and Heiland. Motion carried. 8:37p.m.
Minutes taken and submitted by,
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