Regular City Council Meeting
May 19, 2008
The Mt. Vernon City Council met in Regular Session on Monday, May 19, 2008, at 7:00 p.m. in the Community Building at Veterans Park.
Mayor Mary Jane Chesley called the meeting to order. Reverend Jerry Van Houtin 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 journals for the April 22, 2008 City Council Workshop Meeting, April 24, 2008 City Council Budget Workshop Meeting, April 28, 2008 City Council Budget Workshop Meeting, April 30, 2008 Special City Council Meeting and May 5, 2008 Regular City Council Meeting were presented for any additions, corrections or deletions. Motion by Council Member Shirilyn Holt to approve the journals as presented. Second by Council Member Mike Walker. Yeas: Burgan, Holt, Walker, Wood and Chesley.
The Consolidated Vouchers for Accounts Payable for May 2008 in the amount of $860,655.99 were presented for Council’s consideration. Motion by Council Member David Wood to approve the Consolidated Vouchers for Accounts Payable for May 2008 in the amount of $ 860,655.99 as presented. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Manager Ron Neibert stated that the City Engineer John Porter would give the results of the MFT Street Maintenance Bids. Mr. Porter stated that bids were opened on Friday, May 16, 2008. The bids were as follows:
Est. Jax Asphalt Bid
Oil & Chip $83,356.20 $ 82,677.40
Quad County Beelman
Prime
Asphalt & Oil $156,173.43 $ 182,486.97
($48.18 per) ($56.59 per)
Aggregate
Crushed Stone $ 12,600.00 $ 14,964.00 $ 16,680.00 $17,520.00
(1200 ton) ($10.50) ($12.47) ($13.90) ($14.60)
General Corp
Asphalt $ 50,671.02 $ 59,326.33
TOTAL General
Corp. $ 314,472.65 $ 351,491.70 Jax Asphalt Co.
City Engineer John Porter stated that he recommends going with the low bid of
Jax Asphalt for the total amount of $ 351,491.70 although the bid is a bit over the estimated amount. The estimate was made a couple of months earlier so the petroleum prices have gone up quite a bit now. City Manager Ron Neibert concurred with Mr. Porter. Motion by Council Member Mike Walker to approve the low bid from Jax Asphalt for the MFT and General Corp Street Maintenance bid in the amount of $ 351,491.70 as presented. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Manager Ron Neibert presented for Preliminary and Final Plat for Macy Ruth Subdivision. City Engineer John Porter stated that this is near Kroger. Mr. Porter stated that Kroger has asked this to be First Reading only at this time. First Reading was held.
Corporation Counsel Bill Howard presented for Council’s consideration the Second Reading of an Ordinance Regarding Hotel/Motel Tax. City Manager Ron Neibert stated that this Ordinance would add $1.00 to the Hotel/Motel Tax making it $2.00 per night room fee. Mr. Neibert stated that this is necessary to help cover budgetary shortfalls.
Mayor Mary Jane Chesley asked if anyone present wished to speak regarding this issue.
Mr. John McHugh of the Hampton Inn, Mr. Richard Beaty of the Fairfield Inn and Mr. Keith Balldwin of the Holiday all came to the front. Mr. McHugh spoke first saying that there were several people in attendance to represent the local hotels
and motels that this tax would affect. Mr. McHugh stated that the businesses feel that the City has singled them out three times in the last 5 years by raising their fees. Mr. McHugh stated that there is no other business that has been taxed as many times. This makes the Hotel/Motel tax up to 15%. Mr. McHugh stated that the City is not using this money for just Tourism. If it were, they would not feel as bad about it. The Hotel/Motels do not feel that their funds should be used for General Corporate Funding because the City is having a shortfall.
Finance Director Merle Hollmann spoke regarding the gas tax being at $.40 per gallon.
Mr. Richard Beaty stated that the hotels here are competing with ones in Southern Illinois. Marion, Effingham, Rend Lake Resort are ones that they compete with. Mr. Beaty stated that the corporations that send their employees to stay with the motels here could see the extra raise and decide it is too much for them to pay. That would hurt the motels here a lot. Mr. Beaty stated that he is simply asking Council to reconsider this extra tax at this time.
Discussion was held regarding Mt. Vernon being a Home Rule City and what the City can do by being Home Rule. Mr. McHugh asked if Marion was a Home Rule City. Mr. Neibert stated that no, Marion is not. Discussion was held regarding other taxes the City could levy. They are Hotel/Motel, Fuel Tax, Sales Tax and Property Tax. Mr. Neibert stated that it is already known that the County and the Schools are going to try to raise taxes for their use. Mr. Keith Baldwin of the Holiday Inn asked if every time there is a deficit in the City’s Budget they would raise the Hotel/Motel Tax? City Manager Ron Neibert stated that the City is trying to keep from reducing services to residents and businesses. If the funds are not there, the City will have to cut services. Council Member David Wood stated that we may have had to increase here three times in the last five years, but there are also other areas that have not been increased in the past that they are now raising. The Council has just voted an increase in the water, sewer and refuse rates that had not been raised for several years. The City was actually funding a large amount of these costs because the previous Council did not want to raise the rates. We now have to raise for the four-year bump that was not handled then. Mr. Wood stated that the City is in very difficult financial straights. Mr. McHugh stated that he is upset because the City has hit them three times and not hit other businesses lately. Mr. Neibert stated that the City has spent $160,000.00 for direct marketing from Tourism last year. Mr. Neibert stated that he researched room rates for a Wednesday and Thursday and the rates around were very equal.
Mayor Chesley added that the infrastructure in the City is very old and needs to be repaired, replaced. The City is working on its Comprehensive Plan to see what we have and where we can spend to make the most of our funds. We are
looking at every option. Council is on top of the budget this year, and will be meeting and checking quarterly to try to improve spending and services. Ms. Chesley stated that the Hotel/Motel business has been very good to the City and likewise the City has been good for the Hotel/Motel businesses. The sidewalk project was a very good project for the Hotel/Motels and there are plans to do more in that area. Mayor Chesley stated that the City is not taking all of this lightly and there is no easy way out of the situation. The City is looking at other revenues to help also.
Discussion was held regarding the new interchange project. How the funds will be raised to cover that. Council Member David Wood stated that the Interchange Project is going to cost the City $7 million dollars. Mayor Chesley stated that the City is talking with Senator John O. Jones and Congressman Shimkus about any help we can get from the State and Government on the Interchange Project. Discussion was held regarding minimum wage rates being raised. Council Member Mike Walker stated that he sympathized with the hotel/motels. Council Member David Wood stated that he doesn’t believe that the hotel/motel business is down here in Mt. Vernon because of this $1.00 tax. Mr. Wood spoke of the possible mild recession that we are now in and how that could be part of what is causing the hotel/motel business being down.
Motion by Council Member David Wood to Adopt Ordinance # 2008-19, an Ordinance Regarding Hotel/Motel Tax. Second by Council Member Mike Walker. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration the Second Reading of an Ordinance Rezoning Property Located at 1117 S. 15th Street from Class B2 to Class RM2. The petitioning party is Jack Gilbert for Norma Riley. Mr. Gilbert stated that this is property that had been used as a business, Heartland Wheels. The business has since then moved to Woodlawn so Mrs. Riley would like to rezone the property to RM2 to allow the building to be used as a residence. Mr. Gilbert stated that there were no objectors present at the Zoning/Planning Board Meeting. Mr. Gilbert stated that there is also an Alley Vacation request filed for this property. Corporation Counsel Bill Howard stated that the Vacation Request should be voted on before the Rezoning so it will be included in the Rezoning.
Corporation Counsel Bill Howard presented for Council’s consideration the First Reading of an Ordinance Vacating an Alley Within the City of Mt. Vernon. 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 # 2008-20, an Ordinance Vacating an Alley Within the City of Mt. Vernon. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Motion by Council Member Shirilyn Holt to Adopt Ordinance # 2008-21, an Ordinance Rezoning Property Located at 1117 S. 15th Street from Class B2 to Class RM2 for Petitioner Jack Gilbert, Norma Riley. Second by Council Member Mike Walker. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Corporation Counsel Bill Howard presented for Council’s consideration the First Reading of an Ordinance Authorizing the Sale of Municipal Surplus Property. City Manager Ron Neibert stated that this is pieces of equipment, mowers, trucks, trailer, etc. to be sold. Motion by Council Member Shirilyn Holt to Suspend the Rules to Vote on an Ordinance. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley. Motion by Council Member Shirilyn Holt to Adopt Ordinance # 2008-22, an Ordinance Authorizing the Sale of Municipal Personal Property. 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 Dangerous and Dilapidated Structures for Property Located at: 2102 College, 312 S. 5th St., 230 Casey Ave., 226 Casey Ave., 1111 S. 24th St. and 617½ S. 19th St. Motion by Council Member Mary Burgan to approve the Resolution Authorizing the Giving of Notice of Dangerous and Dilapidated Structures for Property Located at: 2102 College, 312 S. 4th St., 230 Casey Ave., 226 Casey Ave., 1111 S. 24th St. and 617½ S. 19th St. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley. Council Member David Wood asked if a map could be presented any time there are Dilapidated Structures so Council can actually see where they are located.
Corporation Counsel Bill Howard presented for Council’s consideration a Resolution Authorizing Execution of Revolving Loan Agreement with EJL Enterprises, Inc. d/b/a State Beauty Supply and Triple L Holdings. These companies have purchased the State Beauty Supply business in Mt. Vernon and have been operating it for a while. The Lysell family would like to move the business to 315 South 9th Street. The building is now being remodeled and should be open by August 1, 2008. The company has asked for a Revolving Loan in the amount of $45,000.00. Council Member David Wood asked Mr. Neibert to explain how the Revolving Loan Fund works. Mr. Neibert stated that there is currently $1.8 million dollars in the Revolving Loan Fund to be loaned out to businesses. The loans are at a 3% fixed rate with a $450,000.00 cap on a loan. The Beauty Supply business is borrowing $45,000.00. The Lysell’s stated that they also operate Beauty Supply Businesses in other cities. Motion by Council Member David Wood to Approve the Resolution Authorizing the Execution of a Revolving Loan Agreement with EJL Enterprises, Inc d/b/a State
Beauty Supply and Triple L Holdings. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Mayor Mary Jane Chesley stated that she had a proclamation to present to the EMS workers. Mayor Chesley read the proclamation and then presented it to the Assistant Fire Chief Kevin Sargent.
Mayor Mary Jane Chesley stated that she would like to reappoint Mr. Curt Mowrer and Mr. Bill Pittman to the Police Pension Board with the advice and consent of Council. Motion by Council Member Mary Burgan to approve the reappointments of Mr. Curt Mowrer and Mr. Bill Pittman to the Police Pension Board with Council’s advice and consent. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
VISITORS/ CITIZEN REQUESTS/ ADDRESSES FROM THE AUDIENCE
ADJOURNMENT
Motion by Council Member Mary Burgan to adjourn this Regular City Council Meeting. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.