Regular City Council Meeting
September 15, 2008
The Mt. Vernon City Council met in Regular Session on Monday, September 15, 2008 at 7:00 p.m. in the Community Building at Veterans Park.
Mayor Mary Jane Chesley called the Regular Meeting to order and Council Member Shirilyn Holt 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 September 2, 2008, Regular City Council Meeting was presented for any additions, deletions or corrections. Motion by Council Member Mary Burgan to approve the journal for the September 2, 2008 Regular City Council Meeting as presented. Second by Council Member Mike Walker. Yeas: Burgan, Holt, Walker, Wood and Chesley.
The Consolidate Vouchers for Accounts Payable for September 2008 in the amount of 834,626.55 were presented to Council for their consideration. Motion by Council Member Shirilyn Holt to Approve the Consolidated Vouchers for Accounts Payable for September 2008 in the amount of $ 834,626.55 as presented. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Manager Ron Neibert stated that quotes had been received from Financial Institutions for financing capital equipment and projects. Mr. Neibert stated that six packets had been sent out and five had been returned. Of the five returned only three met the requirements for the quotes. The quotes were as follows:
Peoples National Bank 3.85%
First State Bank of Dix 4.75%
MidCountry Bank 4.70%
City Manager Neibert recommended the City accept the low quote of Peoples National Bank for 3.85% on the 4-year loan. Mayor Chesley asked how the quotes were obtained. Mr. Neibert stated that the 6 institutions were sent the City’s terms and collateral and asked for quotes. Motion by Council Member Mike Walker to Accept the quote from Peoples National Bank for the 3.85% on the loans needed. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Manager Ron Neibert presented for Council’s consideration the Preliminary and Final Plat for B & G Subdivision. Mr. Jack Gilbert and Harold Burwell were present to present this request. Mr. Burwell is the property owner and wants to subdivide his property located at 14102 E. Loyola Road to allow him to operate his business near his home. This request subdivides to two lots. Lot 1 is the residential lot and will consist of 2.2 acres of property. Lot 2 is the B-2 lot and will be the business on less than one acre. Mr. Burwell will be selling classic cars. The vehicles will be inside the building. Later in the meeting the re-zoning will be presented. Motion by Council Member Shirilyn Holt to Approve the Preliminary and Final Plat for B & G Subdivision as presented. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Manager Ron Neibert presented for Council’s consideration a Request to Seek Bids for Christmas Pole Decorations. Mr. Neibert stated that some of the ones we have are getting old and torn. Buying new ones will make them upgraded and more consistent. Motion by Council Member Mary Burgan to Grant the Request to Seek Bids for Christmas Pole Decorations. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Attorney David R. Leggans presented for Council’s consideration the First Reading of an Ordinance Rezoning Property Located at 14102 E. Loyola Road from Class AG to Class B2. The petitioning party is Harold Burwell. This is the property that was just subdivided for his residence and his business. 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 # 2008-39, an Ordinance Rezoning Property Located at 14102 E. Loyola Rd. from Class AG to Class B2 for Petitioning Party Harold Burwell. Second by Council Member
Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Attorney David R. Leggans presented for Council’s consideration the First Reading of an Ordinance Rezoning Property Located at 14102 E. Loyola Road From Class AG to Class R1, for Petitioning Party Harold Burwell. This is the current residential property. 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 # 2008-40, an Ordinance Rezoning Property Located at 14102 E. Loyola Road from Class AG to Class R1 for Petitioning Party Harold Burwell. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Attorney David R. Leggans presented for Council’s consideration the Second Reading of an Ordinance Amending the Administrative Fee Ordinance. City Manager Ron Neibert explained that this is the Ordinance that would allow the Police Department to collect an Administrative Fee when vehicles are towed and stored when someone is arrested. Motion by Council Member Shirilyn Holt to Adopt Ordinance # 2008-41, an Ordinance Amending the Administrative Fee Ordinance. Second by Council Member David Wood. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Attorney David R. Leggans presented for Council’s consideration the First Reading of an Ordinance Granting a Conditional Use for Rental Equipment on Property at 401 S. 10th Street. The petitioning party is Nave’s Party Supplies. Mrs. Melody Raney was present to represent Nave’s. Mrs. Raney stated that they are in the business now of renting Penske rental trucks and equipment and this request is so they can park the vehicles on their property. The Council asked to see a map showing where the parking would be located. First Reading was held.
City Attorney David R. Leggans presented for First Reading an Ordinance Granting a Conditional Use for Property Located at 401 S. 10th Street (tract 2) for Nave’s Party Supplies. This is another piece of property. Mrs. Raney stated that this is another part of their property that they would like to park the Penske trucks on. There were no objectors present at the Zoning Board Meeting. Council agreed that this should be First Reading Only.
City Attorney David R. Leggans presented for First Reading of an Ordinance Authorizing the Sale of Surplus City Lots. City Manager Ron Neibert stated that the City has obtained a few more lots and they would like to go ahead and sell them off. Council Members stated that they would like to hold First Reading and see a map of the overview of where the lots are located.
City Attorney David R. Leggans presented for Council’s consideration a Resolution Accepting a Quit Claim Deed for Property Located in Outlot 2 of Water Tower Place Subdivision. City Manager Ron Neibert stated that this is a retention area on South Water Tower Subdivision and the Greenwalts’ would like to deed it to the City for an upgrade of the retention. Motion by Council Member David Wood to Adopt the Resolution Accepting a Quit Claim Deed for Property Located in Outlot 2 of Water Tower Place Subdivision. Second by Council Member Mary Burgan. Yeas: Burgan, Holt, Walker, Wood and Chesley.
City Attorney David R. Leggans presented for Council’s consideration a Resolution Approving a Revolving Loan Agreement with High Range Designs, LLC. City Manager Ron Neibert stated that this is an industrial level screen-printing facility. The company is now located in Idaho and wants to move east to open another branch. This is a large scale operation. They have been to the Revolving Loan Committee and meet all of the criteria and guidelines for a Revolving Loan. There will be 8 jobs at first with the hope to expand to 30 within 2 years. The business will locate in Fountain Place Industrial Park. The company picked Mt. Vernon for it’s centralized location and being close to the two Interstates. Motion by Council Member Shirilyn Holt to Approve the Revolving Loan Request from High Range Designs, LLC. as presented and as approved by the Revolving Loan Committee. Second by Council Member Mike Walker. Yeas: Holt, Walker, Wood and Chesley. Abstain: Burgan.
City Attorney David R. Leggans presented for Council’s consideration a Resolution Approving an Amendment to the Revolving Loan Agreement with Triple L Holdings, LLC. City Manager Ron Neibert stated that this amends the Revolving Loan with Triple L Holdings or State Beauty Supply. They had some cost overruns on their project and have had to obtain some other financing. Our portion has not changed, it is still $45,000.00 and we still have the first share. There is adequate appraisal value on the property to cover our loan. The City has minimal exposure on this project. Council Member David Wood asked how much money is in the Revolving Loan Fund. Mr. Neibert stated that there is $1.5 million dollars in the fund. Mr. Wood asked what the history of the Revolving Loan Fund was. Mr. Neibert stated that the Fund came from DCCA about 20+ years ago for the City to help on several projects. The original money came from a grant from the State for us to loan out. The loans worked along with Economic Development and infrastructure projects. At one time we had several loans out, but they have slowed down in the past few years. There have been 3 in the last two years. The loans are good for gap financing on projects. Council Member Shirilyn Holt spoke regarding the recapture strategy on the loans and how they work and balance. Council Member Mike Walker spoke regarding how the loans help to maintain numbers of jobs. City Manager Neibert stated that he only knows of one defaulted loan and the City is looking about collecting. City Attorney David R. Leggans stated that there have been 3 defaults, but the City
has collected on all but one. Motion by Council Member David Wood to Approve the Amendment to the Revolving Loan Agreement with Triple L Holdings, LLC. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.
Council Member Shirilyn Holt spoke regarding the Movie in the Park to be held Friday Night at 7:00 p.m. The movie will be ET. She encouraged everyone to attend.
Council Member Mary Burgan asked about the Railroad crossings at 27th Street and 42nd Street not having crossing arms. She stated that those are very busy crossings. City Manager Neibert explained that it is up to the railroad companies as to where they put crossing arms and the ICC. Mayor Chesley spoke regarding how rough the crossings are on Shawnee by the high school and 12th Street. Council Member Shirilyn Holt spoke about some large holes at Jamison and Cherry Street. Council Member Mike Walker asked if the City was going to pick up branches from the current storm. City Manager Ron Neibert stated that he would put in the paper that the City will pick up the limbs for 2 weeks only at the curb.
Motion by Council Member Mary Burgan to adjourn this Regular City Council Meeting. Second by Council Member Shirilyn Holt. Yeas: Burgan, Holt, Walker, Wood and Chesley.