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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 19, 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, and Mayor Thodos.  Absent:  Gary Westbrook.  7:12p.m.

 

ADDITIONS/CORRECTIONS TO AGENDA

None 

 

REDEEM QUARTER TIF AGREEMENT  (Mr. Verdick)

The City and REDEEM desire to enter into a Development Agreement which will provide reimbursement to REDEEM for certain Tax Increment Financing (TIF) eligible expenses that have been incurred within the Riverfront TIF District while partnering with the City to accomplish certain tasks in an attempt to bring certain parcels to a point at which they are Developer ready.  City Attorney Phares has reviewed the proposed agreement and found it to be acceptable.

 

RECOMMENDATION: 

It is the recommendation of staff to approve the Development Agreement and to direct the City Attorney to draft a Resolution, which shall be presented to the City Council on December 3, 2007 for consideration.   

 

BUDGET IMPACT: 

Reimbursement will occur, as proceeds are available from increment generated as a result of development with the Riverfront TIF. 

 

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 to be presented to the City Council on December 3, 2007 for their consideration.  Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

           

REDEEM NORTH HILL TIF AGREEMENT  (Mr. Verdick)

The City and REDEEM desire to enter into a Development Agreement which will provide reimbursement to REDEEM for certain Tax Increment Financing (TIF) eligible expenses that have been incurred within the North Hill TIF District while partnering with the City to accomplish certain tasks in an attempt to bring that area to a point at which it was Developer ready.  City Attorney Phares has reviewed the proposed agreement and found it to be acceptable.

 

RECOMMENDATION: 

It is the recommendation of staff to approve the Development Agreement and to direct the City Attorney to draft a Resolution, which shall be presented to the City Council December 3, 2007 for consideration.   

 

 

BUDGET IMPACT: 

Reimbursement will occur, as proceeds are available from increment generated as a result of development within the North Hill TIF area. 

 

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, to be presented to the City Council on December 3, 2007 for their consideration.  Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried. 

 

REDEEM GRIP TIF AGREEMENT  (Mr. Verdick)

The City and REDEEM desire to enter into a Development Agreement which will provide reimbursement to REDEEM for certain Tax Increment Financing (TIF) eligible expenses that have been incurred within the Great River Industrial Park (GRIP) TIF District while partnering with the City to accomplish certain tasks in an attempt to bring parcels located in that area to a point at which they were Developer ready.  City Attorney Phares has reviewed the proposed agreement and found it to be acceptable.

 

RECOMMENDATION: 

It is the recommendation of staff to approve the Development Agreement and to direct the City Attorney to draft a Resolution, which shall be presented to the City Council on December 3,  2007 for consideration.   

 

BUDGET IMPACT: 

Reimbursement will occur, as proceeds are available from increment generated as a result of development within the GRIP TIF area. 

 

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, to be presented to the City Council on December 3, 2007 for their consideration.  Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried. 

 

CHEMICAL BIDS  (Mr. Drake)

Each year the Joint Purchasing Council of Bi-State Regional Commission solicits bids for water, wastewater and swimming pool chemicals for Rock Island, Moline, East Moline, Silvis and Coal Valley for the coming calendar year.  This process insures the price of chemicals for the next 12 months.   

Each City specifies the chemicals, estimates the amounts for the next calendar year, and is responsible for insuring chemicals bid meet specifications and requirements.  Chemical cost have increased 12.6% for the Water Plant and 1.75% for the wastewater plant, for the coming calendar year. 

Staff has reviewed all bids and have found discrepancies in two bids.  One, Thatcher Chemical of Montana, who bid on activated carbon, did not supply analytical information or chemical sample as required by the bidding documents.  Therefore staff is not able to evaluate whether the product meets specifications.  The second item, after discussions with Basic Chemical Solutions, who bid on caustic soda, with a bid price of $0.18 per pound, and did not specify that this, was per WET pound (chemical in solution).  Bid documents require a price per DRY pound or ton.  After comparing wet cost per pound to dry cost per pound, Basic Chemical Solutions is actually the high bid.        

RECOMMENDATION:  Accept the low responsive bids received by the Joint Purchasing Council of Bi-State Regional Commission for water and wastewater facilities chemicals as Listed:

                                                Aluminum Sulfate          $250.00 per dry ton     UNIVAR

                                                Ammonia                      $.475 per lb                 Tanner Industries

                                                Activated Carbon         $0.61 per lb                 Norit Americas

                                                Chlorine                       $525.00 per ton           Brenntag Mid-South

                                                Sodium Hypochlorite    $0.695 per gallon         Vertex Chemical

                                                Hydrofluosilicic Acid     $0.34 per lb                 Viking Chemical

                                                Magnesium Bisulfate     $0.19 per lb                 Brenntag Mid-South

                                                Caustic Soda                $445.00 per dry ton     UNIVAR

BUDGET IMPACT: Items have been budgeted for this fiscal year and fiscal year 2008/2009 budget will be adjusted accordingly.

 

A motion was made by Alderman Moreno, seconded by Alderman Heiland, to concur with the recommendation to accept the low responsive bid received by the Joint Purchasing Council of Bi-State Regional Commission for water and wastewater facilities chemicals and direct the City Attorney to draft the appropriate document to be presented to the City Council for their consideration.  Upon roll call the following voted in favor: Heiland, Puentes, Moreno, Bustos, Kelley and Cervantes.  Motion carried.

 

PFM  (Mr. Keehner)

Arbitrage is earning interest on a tax-exempt bond at a greater rate than the rate paid by the City.  This is Internal Revenue Service law and the fines can be substantial.  For example:  if the bond issue interest rate is 4.5% and the City made 5% on investments the City would 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 the City will have 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 the City's bond proceeds and the City would earn the current market rate of interest.  PFM makes their profit by "pooling" client's proceeds and investing at a higher rate than East Moline can on its own.  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.  The City's auditors have also met with the officials of PFM and approve that the City we will be retaining PFM as a consultant.  The City will verify with auditors that PFM will give the proper pledges to safeguard the City's bond proceeds.

QUESTION FROM LAST COMMITTEE OF THE WHOLE

When does this agreement end?  The agreement is open ended.  It is impossible to set an exact date.  PFM will continue to prepare quarterly arbitrage reports as long as necessary.  It is impossible to say how long it will be until the City has completely spent all of the $8,000,000 of bond proceeds.  We do have the right to cancel this agreement with 30 days written notice.  I have attached Item #7 of the adopting resolution –

7.     TERM.

This Agreement may be terminated by the Client in the event of any material breach of its terms immediately upon notice by certified mail, return receipt requested.  This Agreement may be terminated by the Client at any time, on not less than thirty (30) days written notice to the Advisor.  The Advisor   may terminate this Agreement immediately upon any material breach of its terms by the Client, or at any time after one year upon thirty (30) days written notice.

 

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.

 

A motion was made by Alderman Moreno, seconded by Alderman Heiland, to concur with the recommendation to retain PFM Asset Management to prepare the necessary arbitrage reports on the December 2007 bond issue.  Direct the City Attorney to draft the appropriate document to be presented to the City Council for their consideration.   Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.

 

TOPOGRAPHY SURVEY MORTON DRIVE  (Mr. Kammler)

Morton Drive is in need of substantial improvements to both underground utilities and the street pavement between 19th Street (IL Route 84) and 27th Street.  Improvements will likely include replacement of water mains, sanitary sewers, storm sewers, complete street reconstruction, and related work.  Engineering Staff is planning for these Capital Improvements, and attempting to program financial and staff resources for inclusion of this project into the 2008 Capitol Improvement Project (CIP).  Additionally, City maintenance crews are currently working to televise storm and sanitary sewers to assess condition and gather information as to their condition in an attempt to provide any cost savings in the planning and design process for this project.

 

In order to design and prepare construction plans for the proposed improvements, a topography survey is required.  A proposal has been obtained from McClure Engineering to perform the required survey work.  Surveying will take place in December 2007, and should be complete by year-end.

 

It is anticipated that Engineering Department staff will perform the design/plan preparation in-house in 2008.

 

RECOMMENDATION:  

Authorize contract with McClure Engineering for topography survey.

 

BUDGET IMPACT:

Time and materials contract with estimated fee of $14,250.00 to be paid out of 2007 Water & Sewer Capital Improvement Bond.

           

A motion was made by Alderman Puentes, seconded by Alderman Cervantes, to concur with the recommendation to authorize contract with McClure Engineering for a topography survey at an estimated cost of $14,250 and direct the City Attorney to draft the appropriate document to be presented to the City Council for their consideration.  Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.   Motion carried. 

 

TOPOGRAPHY SURVEY 8TH STREET  (Mr. Kammler)

The 2008 Capital Improvement Plan (CIP) is to include utility and street improvements on 8th Street between 25th and 20th Avenue, and 25th Avenue between 7th and 8th Street.  Improvements proposed include replacement of water mains, complete street resurfacing, and related construction.  This project was originally scoped for construction in 2007, but was postponed due to the volume of work already planned in the 2007 CIP.

In order to design and prepare construction plans for the proposed improvements, a topography survey is required.  A proposal has been obtained from AMENT engineering to perform the required survey work.  Surveying will take place in December 2007, and should be complete by year-end.

It is anticipated that Engineering Department staff will perform the design/plan preparation in-house in early 2008.

 

RECOMMENDATION:     

Authorize contract with AMENT Engineering.  (Survey component only)

 

BUDGET IMPACT:

Time and materials contract with estimated fee of $13,500.00 to be paid out of 2007 Water & Sewer Capital Improvement Bond.

 

A motion was made by Alderman Bustos, seconded by Alderman Cervantes, to concur with staff recommendation to authorize contract with AMENT engineering with an estimated fee of $13,500. Direct the City Attorney to draft the appropriate document to be presented to City Council for their consideration.  Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.     

 

ADJOURMENT:

A motion was made by Alderman Moreno, seconded by Alderman Cervantes, to adjourn the Committee-of-the-Whole meeting.  Upon roll call the following voted in favor:  Heiland, Puentes, Moreno, Bustos, Kelley, and Cervantes.  Motion carried.  7:51p.m.

 

 Minutes taken and submitted by,

 _________________________________

Arletta D. Holmes, City Clerk

 

   

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