Regular City Council Meeting
December 17, 2007
The Mt. Vernon City Council met in Regular Session on Monday, December 17, 2007 at 7:00 p.m. in the Community Building at Veterans Park.
Mayor Mary Jane Chesley called the meeting to order and Reverend Bob Meyer gave the invocation.
The Pledge of Allegiance was given.
Roll call showed present: Council Member Mary Burgan, Council Member Shirilyn Holt, Council Member Mike Walker, Council Member David Wood and Mayor Mary Jane Chesley.
The Journal for the December 3, 2007 Regular City Council Meeting was presented to Council for any additions, corrections or deletions. Motion by Council Member Mike Walker to approve the journal for the December 3, 2007 as presented. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
The Consolidated Vouchers for Accounts Payable for December 2007 in the amount of $ 846,051.82 were presented for Council’s consideration. Motion by Council Member David Wood to approve the Consolidated Vouchers for Accounts Payable for the month of December 2007 in the amount of $ 846,051.82 as presented. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Manager Ron Neibert introduced Mr. Jim Rippy of Rend Lake Conservancy District to speak about the water rates. Mr. Rippy began by saying that under the previous Board money was diverted from the water plant to the golf course and other entities. He stated that over $10 million dollars was diverted. At one time they considered lowering the water rates but then the Board took a good look at the water plant. The plant is outdated and in dire need of upgrading or to build a
new one. The cost to build a new one is $50 million dollars. They have hired an engineering firm to do a study on the plant. This took 6 months to complete. The plant now can pump 19 million gallons per day and the EPA says that at 95% capacity you can’t take on any new customers. The plant needs to be upgraded to do 26 million gallons a day. They have been able to accumulate $13 million dollars to set aside to offset what will need to be borrowed. The upgrade will be a $24.5 million dollar project. The engineers should finish the designs this month. The next question was whether to borrow short term or take the EPA long term- 20-year loan for 2 1/2 % vs. the 4 1/2% loan from a local bank short term. The Board voted 3 to 4 to go with the 20 year EPA loan. The EPA has offered $13.5 million dollars. Mr. Rippy stated that question was should we accept the $13.5 million from the EPA or borrow only the amount needed. The Board decided to take 1/2 of the $12 million in funds they have and invest to make the 5% interest on it. Mr. Rippy stated that he was not in favor of this decision and voted against it because it is the taxpayer’s money they would be investing. Mr. Rippy stated that he does not agree to that. Mayor Chesley stated that the City needs to get the water line that we have been waiting on for several years.
Council Member Walker asked if a water rate increase is necessary. Mr. Rippy stated that he thinks it is premature to think of a rate increase now. Mr. Rippy stated that RLCD deserves the State funds available. Mr. Rippy stated that distribution projects would come later, after the upgrading of the plant. He again stated that he is not comfortable borrowing money to invest. Council Member Wood stated that we do need the extra line into Mt. Vernon. Mayor Chesley thanked Mr. Rippy for his presentation.
City Manager Ron Neibert introduced Mr. Eric White of DMI to speak regarding the Downtown TIF Redevelopment. Mr. White had given each Council Member a draft of the Redevelopment Plan for them to study and a Public Hearing will be set up for the first Council Meeting in January to go over the plans. The plan has eligibility studies, the properties involved, the housing impact study, etc. The final plan will be finished by February, or 60 days from the public hearing. The second half of the plan is from page 16 on.
City Manager Ron Neibert stated that the proposed guest of honor is not in attendance, this portion of the meeting will be cancelled. Mr. Bill Reininger was to be awarded his retirement rocking chair and congratulated for his 38 years of service to the City and his retirement.
Corporation Counsel Bill Howard presented for Council’s consideration the Second Reading of an Ordinance Authorizing the Tax Levy. City Manager Ron Neibert stated that this copy is a revised copy of the Ordinance. The change is under Parks and Recreation amount levied. From $155,510.00 to $148,800.00
which in turn changes the total to $1,969,976.00. Council Member Mike Walker stated that he likes seeing the levy all upfront and informed this way. Mr. Walker stated that property tax is a hindrance to the growth in Mt. Vernon. He stated that he has been asked why the property taxes are so high here. Finance Director stated that there are 10 entities on his own tax bill. And only 13% of the total goes to the City. The highest portions go to the grade school and high school districts. Mr. Hollmann stated that Bed Tax has helped the City a lot in keeping the property taxes down. The bed tax went from 3% to 5% in 2005. People passing through the City and spending the night in hotels and motels is where this revenue comes from. The City only receives 8 ½% of their revenue from property taxes. The City is the third entity on the tax bills with the grade school and high school districts being the two highest. Motion by Council Member Mike Walker to Adopt Ordinance # 2007-57, an Ordinance Authorizing the Tax Levy as presented. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration the First Reading of an Ordinance Rezoning Property Located at 10882 East Richview Road from Class AG to Class R1. The Petitioning Party is Norman A. Piercy. Mr. Piercy is being represented by Attorney Bob Shaw. Mr. Piercy and his wife Gerry were present to speak about their plans. Mrs. Piercy stated that her husband’s family built the home in 1913. It has 5 bedrooms in it and they would like to turn it into a bed and breakfast. They have caretakers already working for them that would run the Bed and Breakfast business for them. The caretakers would have a residence about 200 feet from the home and always be on call when guests are present. There are 16 acres total on the property; so parking will not be a problem. The Piercy’s are hoping to be open in the spring of ‘08. Mr. Shaw stated that he has researched the issue, as Council knows, and he believes the Piercy’s are well in compliance with the Ordinance. Mr. Shaw asked for a suspension of the rules to vote on an Ordinance. Motion by Council Member David Wood to Suspend the Rules to Vote on an Ordinance. Second by Council Member Mike Walker. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member David Wood to Adopt Ordinance # 2007-58, an Ordinance Rezoning Property Located at 10882 East Richview Road from Class AG to Class R1 for Petitioning Party Norman A. Piercy. Second by Council Member Mike Walker. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for First Reading an Ordinance Granting a Conditional Use for a Bed and Breakfast for Property Located at 10882 East Richview Road. The Petitioning Party is Norman A. Piercy. This is the Ordinance that goes with the one just passed. Mr. Piercy stated that there were no objectors to this request at the Zoning and Planning Board Meeting. Motion by Council Member David Wood to Suspend the Rules to Vote on an Ordinance. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member David Wood to Adopt
Ordinance # 2007-59, an Ordinance Granting a Conditional Use for a Bed and Breakfast for Property Located at 10882 East Richview Road for Petitioning Party Norman A. Piercy. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration the First Reading of an Ordinance Rezoning Property Located at 724 George from Class I1 to Class R2. The Petitioning Party is New Dimension Builders, Inc. Ms. Terri Karch was present as the owner. Ms. Karch stated that this is a home that she has owned for several years and used as a rental home. She has recently remodeled the home and would like to sell it. Upon checking for financing, it was discovered that the property had been zoned as I1, or light industrial, but it had always been a home. The bank would not agree to loan on the home until the zoning is changed to be corrected. Ms. Karch asked if the Rules could be suspended so this could pass tonight. She stated that there were no objectors present at the Zoning and Planning Commission Meeting. Council asked how this could have happened. City Manager Ron Neibert stated that it could have been that the property was included in a large zoning that was hoped would be developed into industrial. The home is adjacent to the County maintenance barn on George Street. Motion by Council Member David Wood to Suspend the Rules to Vote on an Ordinance. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member Mike Walker to Adopt Ordinance # 2007-60, an Ordinance Rezoning Property Located at 724 George Street from I1 to R2 for Petitioning Party New Dimension Builders, Inc. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for First Reading an Ordinance Approving an Agreement between the City of Mt. Vernon and Normandy Investments for the Purchase of Real Estate. City Manager Ron Neibert stated that this is for the sale of 10 acres of property near the Industrial Centre to build a spec building on. The spec building will be a 50,000-foot building. The Ordinance includes an Agreement to Purchase Real Estate, a Promissory Note, Real Estate Mortgage and an Option to Purchase. The purchase price is $150,000.00 with an option to purchase 10 additional acres adjacent. Motion by Council Member David Wood to Suspend the Rules to Vote on an Ordinance. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member David Wood to Adopt Ordinance # 2007-61, an Ordinance Approving an Agreement Between the City of Mt. Vernon and Normandy Investments for the Purchase of Real Estate. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration a Resolution Accepting a Quit Claim Deed for Property Located at 216, 218 and 220 South 9th Street. The property is from Robin and Elizabeth Hensley. It is a
piece of property that is vacant and the only stipulation is that it cannot be sold and has to be used for a park type green area. Motion by Council Member Shirilyn Holt to approve the Resolution Accepting a Quit Claim Deed for Property Located at 216, 218 and 220 South 9th Street. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration a Resolution Authorizing the Giving of Notice of a Dangerous and Dilapidated Structure for Property Located at 1209 South 13th Street and a Resolution Authorizing the Giving of Notice of a Dangerous and Dilapidated Structure for Property Located at 1306 Westcott. Motion by Council Member David Wood to Approve both Resolutions Authorizing the Giving of Notice of Dangerous and Dilapidated Structures for Properties Located at 1209 South 13th Street and 1306 Westcott as presented. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration a Resolution Approving an Administrative Agreement with HCH Insurance. City Manager Ron Neibert explained that this is regarding the employee’s insurance coverage. The current company came back with a 36% increase for our coverage. This will also cover the self-insurance for employees. One policy is a stop-loss policy and the other is a specific-loss policy. Council Member David Wood stated that he is concerned with the self-insurance policy. Mr. Wood also spoke regarding the retiree’s insurance, stating that we have several retirees still being covered. The company will be Health-Link; we are currently with Health Alliance. The change over takes place on January 1, 2008. Motion by Council Member Mary Burgan to Approve the Resolution Approving the Administration Agreement with HCH for the employee insurance. Second by Council Member Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration an Inducement Resolution Regarding Certain Property Within a Proposed Downtown TIF. Mr. Jay Koch stated that the property is located at North 9th Street, the home of CMAC Computers, right next to the Granada Theater. He stated that this would also include Brooke Insurance Building and Podges Pizza Building and the second floor of the Rex. The thought is for upscale living quarters above each of these buildings and maintaining businesses downstairs. Motion by Council Member David Wood to Approve the Inducement Resolution Regarding Certain Property Within a Proposed Downtown TIF. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Mayor Mary Jane Chesley stated that she was glad to have been asked to participate in the Grand Opening of the Granada Theater and the lighting of the
marquee last week. Mayor Chesley stated that again a team had a dream and with a lot of hard work from a lot of people it became a reality.
Mayor Chesley also reminded everyone about the upcoming “Christmas in the Park”. This is the Second Annual celebration and there will be twelve area churches participating. Mayor Chesley stated that last year was wonderful and about 1,000 cars came through the Park last year on Saturday night. Ms. Chesley thanked Reverend Travis Perry and Gene Tucker for all of their hard work on this project.