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 MINUTES OF THE MEETING OF THE MAYOR

AND THE COMMITTEE-OF-THE-WHOLE

OF THE CITY OF EAST MOLINE, ILLINOIS

NOVEMBER 5, 2007

 

ROLL CALL

Mayor Thodos called the meeting to order and directed City Clerk Arletta D. Holmes 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.  8:36p.m.

 

ADDITIONS/CORRECTIONS TO AGENDA

None 

 

TAX LEVY 2ND DISCUSSION  (Mr. Hughes)

This item is placed on the agenda to allow discussion for the proposed property tax levy.  The proposed levies are as follows:

               

                                City Property Tax Levy                    $4,643,639

 

                        Special Service Area Tax Levy $60,000

 

RECOMMENDATION:     

Support of the City Property Tax levy as shown above.

 

Mr. Hughes stated that the proposed City's tentative tax levy was set in the regular City Council meeting tonight.  Mr. Hughes has received a verbal request for discussion on the Special Service Area (SSA) tax levy of $60,000.  City Attorney Phares received a request from Mr. James Eagle, of Eagle and Eagle Attorneys at Law to address the City Council with respect to the SSA tax levy of $60.000 on behalf of his clients Keith and Marie Gellerstedt. 

 

Mr. Eagle states the City is unlawfully taxing his clients real estate based upon the SSA tax law (35 ILCS 200/27-30). The City enacted the SSA Ordinance 04-32 even though proper notice was not given, neither the published notice nor the mailed notice contained the permanent tax index numbers as required by Section 25 (35 ILCS 200/27-25 (c).  Mr. Eagle states his clients feel they were deprived of a fair process and the people opposed to the tax should have been allowed to locate other people affected for the purpose of generating an objection petition to have their voice heard and their voice counted.  They also had the understanding that the SSA tax was to be in effect only for three years.

 

City Attorney Phares advised the Mayor that a special City Council meeting could be called to hear the "pros and cons" of the SSA.  City Attorney Phares stated he has heard this discussion from members suggesting they be given the opportunity to sit down and work out a comprise, and negotiate some kind of settlement in this matter so that the SSA does not continue to be the dividing force in the downtown.  Attorney Phares suggested that a special City Council meeting be set by the City Council two to three weeks from this date in order to hear the "pros and cons" and give the SSA Committee members an opportunity to see if they can negotiate a comprise. 

 

After a lengthy discussion, a motion was made by Alderman Heiland, seconded by Alderman Cervantes, to authorize the Mayor to call a special meeting of the City Council to address the Special Service Area Tax issue on or before December 17, 2007.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

ADMOSPHERES ADVERTISING SERVICES AGREEMENT  (Mr. Keehner)

The City has received and reviewed an advertising agreement provided by AdMospheres.  AdMospheres proposes to offer marketing and advertising brokerage services to the City, which would result in using East Moline refuse vehicles as marketing devices.  The agreement is for a term of five years, dividing the revenue from advertisers between AdMospheres and the City as follows: first year City 55%, second year 55%, third year 50%, fourth year 50%, and fifth year 50%.  Entering into this Agreement would provide additional revenue to the City and provide our refuse vehicles a barrier from inclement weather. City Attorney Phares has reviewed the proposed agreement and found it to be acceptable.

    

RECOMMENDATION: 

Direct the City Administrator to proceed with the AdMospheres Advertising Service Agreement and to direct City Attorney to draft a Resolution, which shall be presented to the full council on 19 November 2007 for their consideration.   

 

BUDGET IMPACT: 

Additional revenue to the City  

 

Mr. Keehner introduced Mr. Todd McGreevy, President of AdMosheres.  Mr. McGreevy gave the City Council a brief history of the company, and addressed questions and concerns.

 

A motion was made by Alderman Bustos, seconded by Alderman Moreno, to concur with the recommendation as presented, and direct the City Attorney to draft the appropriate document, and bring back to the City Council on November 19, 2007 for consideration.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried. 

 

ISLAND MARINA HOLD HARMLESS AGREEMENT  (Mr. Keehner)

On a yearly basis, Island Marina installs, removes, and stores the City boat docks.  Island Marina also repairs the boat docks as needed.  The City has received a request to enter into a Hold Harmless Agreement with Island Marina that would hold them harmless from any claim by the City for damage to the docks, which may occur during the storage period, October 2007 through April 2008.       

      

RECOMMENDATION: 

It is the recommendation of staff to approve the Hold Harmless Agreement and to direct the City Attorney to draft a Resolution, which shall be presented to the City Council on 19 November 2007 for their consideration.   

 

BUDGET IMPACT: 

None  

 

A motion was made by Alderman Moreno, seconded by Alderman Puentes, to concur with the recommendation as presented and direct the City Attorney to draft the appropriate document and bring back to the City Council on November 19, 2007 for the Council's consideration.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

RETAIN PFM ARBITRAGE CONSULTANTS  (Mr. Hughes)

Arbitrage is the earning of interest on a tax-exempt bond at a greater rate than the rate paid by the City.  Internal Revenue Service laws prohibit this and the fines can be substantial.  For example: if the bond issue interest rate is 4.5% and we made 5% on our investments we owe the IRS the 0.5% of excess interest.  The arbitrage rules are very complex.  There are some exemptions.  The City encountered this with the $7,000,000 debt certificates and staff is confident that there will be arbitrage issues with the new bond issue.  City staff has met with the PFM Asset Management.  They are investment advisors and arbitrage specialists.  There is no fee to the City.  They would manage our bond proceeds and the City would earn the going market rate of interest.  PFM makes their money by "pooling" their client's proceeds and investing at a higher rate than East Moline can.  PFM then prepares all arbitrage reports and IRS filings.  They will also advise the City on how to avoid paying arbitrage refunds to the IRS.  Our auditors have also met with the officials of PFM and approve the retaining of PFM as our consultant.  Staff will verify with our auditors that PFM will give us the proper pledges to safeguard our bond proceeds.

 

RECOMMENDATION:     

Retain PFM for the December 2007 bond issue to complete all of our arbitrage filing requirements.

 

BUDGET IMPACT:

There is no cost to the City with any reduction in bond proceeds.

 

Discussion was held regarding if the City has a written agreement with PEM.  Mr. Hughes stated the City does not have an agreement at this time.  City Attorney Phares stated that the City needs a written agreement specifying the terms for the Council's review in order to be presented at the next City Council meeting. 

 

A motion was made by Alderman Moreno, seconded by Alderman Heiland, to table this item until November 19, 2007 City Council meeting.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley and Cervantes.  Motion carried.

 

VEHICLE, MOWER AND LIFT BIDS   (Mr. Willemarck)

We have received competitive bids for two (2) pickup trucks, two (2) mowers and one (1) equipment lift.  Results are listed below.

 

RECOMMENDATION:  Accept low bidders as written on attached sheet

 

Engineering Department Pickup Truck -  Number 1:  2008 4x4 Pickup with Super Crew Cab Trade in 1997 Ford E150 Ford Cargo Van

            Reynolds Ford              $24,849.95 less trade of $2,500 = $22,349.95

            Lujack's                       $24,592.00 less trade of $2,200 = $22,370.00

            River City Ford            $25,296.95 less trade of $1,200 = $24,096.95

 

Budget Line Item:  Water Distribution, Motor Pool Purchase, 30.6.0514.000.23

 

A motion was made by Alderman Moreno, seconded by Alderman Bustos, to concur with recommendation and award the contract to the low bidder Reynolds Ford in the amount of $22,349.95 for the purchase of a 2008 4x4 Pickup Truck with Super Crew Cab.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

Engineering Department Pick-up Truck – Number 2:  2008 4x4 Pick-up Truck with Super Cab, no trade-in.

            Reynolds Ford              $20,009.95

            River City Ford            $20,199.95

            Lujack's                       $22,092.00

 

Budget Line Item:  Water Operations/Maintenance, Motor Pool Purchase, 30.6.0514.000.13

 

A motion was made by Alderman Heiland, seconded by Alderman Westbrook, to concur with the recommendation and award the contract to the lower bidder Reynolds Ford in the amount of $20,009.95 for the purchase of a 2008 4x4 Pick-up Truck with Super Cab.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

Park Department Mower:  2008 72- inch front mower deck/ Scrap 1985 John Deere F930 that would cost more to repair than its current value.

Kabota Kunau              $14,847.00      Deere Holland & Sons  $16,260.00

Kabota Anchor            $15,100.00      Deere River Valley Turf            $16,633.09

Kabota Bobcat             $14,935.00      Toro Tri-State                          $16,650.00

 

Budget Line Item:  Park Department Motor Pool Purchase, 1.6.01.0514.0000

 

A motion was made by Alderman Moreno, seconded by Alderman Heiland, to concur with the recommendation and award the contract to the low bidder Kunan in the amount of $14,847.00 for the purchase of a 2008 72-inch front mower deck.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Kelley, and Cervantes.  Opposed:  Bustos.  Motion carried.  6-1.

 

A motion was made by Alderman Moreno, seconded by Alderman Westbrook, to concur with the recommendation and scrap the 1985 John Deere F930.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

Drainage Department Mower:  2008 Flail Mower with a 19-foot mowing width A John Deere Model 1600 Mower to be sold separately on E-bay.

 

            Deere/Tiger      Holland & Sons            $77,281.62

            Deere/Alamo    River Valley Turf          $78,259.32

 

Budget Line Item:  Drainage, Motor Pool Purchase, 32.6.0514.000.30 and Drainage Department Projects, 11.2.0520.000.00.

 

A motion was made by Alderman Moreno, seconded by Alderman Puentes, to concur with the recommendation and award the contract to Holland & Sons the low bidder in the amount of $77,281.62 for the purchase of a 2008 Flail Mower with a 19-foot mowing width.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

A motion was made by Alderman Moreno, seconded by Alderman Westbrook, to concur with staff recommendation to sale the John Deere Model 1600 mower on E-bay.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

Turf Equipment Lift, 9,000 Pound

 

            Carquest          $5,052.00

            Eagle                $5,299.00

 

Budget Line Item:  Motor Pool, Equipment General, 12.60513.000.00

 

A motion was made by Alderman Heiland, seconded by Alderman Westbrook, to concur with the recommendation and purchase the 9,000-pound lift equipment from the low bidder Carquest in the amount of $5,052.00.  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

CURBSIDE RECYCLING  (Mr. Willemarck)

 Information is included on cost for refuse and recycling collection.        

 

A lengthy discussion was held on the possibility of various recycling programs and the operations of "garbage collections" in general.

           

A motion was made by Alderman Puentes, seconded by Alderman Heiland, to table this item until the first City Council meeting in December (12/3/2007).  Upon roll call the following voted in favor:  Westbrook, Heiland, Puentes, Moreno, Kelley, and Cervantes.  Opposed:  Bustos.  Motion carried.  6-1.

 

Alderman Puentes leaves at 10:00p.m.

 

LICENSING AGREEMENT WITH KVF-QUAD  (Attorney Phares)

City Attorney William Phares has received correspondence from Attorney Robert Ruud on behalf of his client, KVF-Quad Corporation, requesting a Licensing Agreement from the City, for a 9' x 9' area located at the southeast corner of 13th Street and 8th Avenue.  It is KVF-Quad Corporation's intention to construct, occupy, utilize and maintain a 9' x 9' concrete transformer pad, with the transformer to be installed by MidAmerican Energy Consultants.  There will be steel bollards at corners of pad for protection.  The Engineering Department has reviewed and approved the application.  Attorney Phares has drafted a proposed Licensing Agreement, which is attached hereto, and has been approved by KVF Quad Corporation.  City Council approval is now requested.

               

RECOMMENDATION:  Approval is requested.

 

BUDGET IMPACT:  

        Discussion was held with regards to safety issues. 

 

A motion was made by Alderman Moreno, seconded by Alderman Heiland, to concur with staff recommendation and direct the City Attorney to draft the appropriate document and pass on to full City Council for consideration.  Upon roll call the following voted in favor: Heiland, Moreno, Bustos, Kelley, and Cervantes.  Opposed:  Westbrook.  Motion carried.  5-1           

 

ADJOURMENT:

A motion was made by Alderman Westbrook, seconded by Alderman Moreno, to adjourn the Committee-of-the-Whole meeting.  Upon roll call the following voted in favor: Westbrook, Heiland, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.  10:05p.m.

  Minutes taken and submitted by,

 _________________________________

Arletta D. Holmes, City Clerk

 

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