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Democracy on the Front Lines
City Administrators Blog
Walter Denton
May 7, 2009
Here is a summary of Monday’s City Council meeting agenda items. The items are listed in the order as they appeared in the agenda. Click here to see the full texts of the resolutions, ordinances, and staff reports. As a reminder, resolutions, motions, and special event permits only need to be approved once to become official. Ordinances are required to be approved in two readings (over two meetings) before they become official.
Here are the items that were approved by the City Council:
Resolution for the design of sewer trunk line and manhole repair: Various sections of the aging sewer trunk lines from O’Fallon to the Wastewater Treatment Plant (WWTP) are in need of repair, lining and replacement, and sewer main manholes need repair and lining throughout the City’s sanitary sewer system. The trunk mains have had little attention since installation in 1968. Many of the City’s manholes have had little work done to them since installation in the 1950s and earlier. The resolution approves a contract with Gonzalez Companies to provide engineering design in an amount not to exceed $231,477.
Resolution for concrete repair and sidewalk extension: The City has routinely contracted for general concrete repair of streets, sidewalks, and drainage structures. The list of repairs and short extensions is collected during the prior year. This year’s low bidder is W.S.M., Inc., for a total of $25,414.00 based on the unit prices submitted.
Resolution for the design of a new clairfier and headworks at the Wastewater Treatment Plant: The two existing clarifiers at the Wastewater Treatment Plant (WWTP) are nearing capacity and are in need of repair. The clarifiers cannot be taken out of service for long enough periods of time to correct all the problems, so a third clarifier is needed for redundancy as well as to address capacity issues. The existing headworks does not remove the grit and solids to the efficiency needed and the mechanical device is reaching obsolescence. As with the clarifiers, there is no redundancy and when the existing device is taken out of service for extended repair, the plant is fouled with grit and solids. In addition, the highly corrosive environment around the headworks requires the replacement of the electrical service panels and lines. The
resolution approves a contract with HMG to provide engineering design in an amount not to exceed $493,200
Resolution for field data collector services with Gateway Geospatial: The City uses GIS (a computerized mapping system) to manage our infrastructure, such as roads, water lines, sewer lines, storm drains, fire hydrants, property parcels, etc. The contract with Gateway Geospatial will provide data collection services for the GIS system.
Ordinance increasing sewer rates (First Reading): While many City services are funded through tax revenue (such as property taxes and sales taxes), the Water and Sewer Funds are required by state law to operate as independent businesses. This means that all management, operations, and capital construction must be supported by user fees – namely, through the utility bills mailed to O’Fallon residents every month. The Sewer Enterprise Fund has not generated sufficient revenue over the past 10 years to provide funds needed to be self-insured, maintain an operating reserve, and build a capital improvement reserve for future major capital expenditures. Needed maintenance and repair have been delayed for at least the past six years due to insufficient funds. To summarize, there are no reserve funds, and the fund will end its
FY2009 operations in the hole. In addition, there is a unique opportunity though the federal economic stimulus plan to fund sewer projects through 0% interest loans. Qualification for stimulus funding under IEPA-guidance requires public utilities to show that they have a sufficient rate structure to support payback of the loan. Therefore, O’Fallon needs to increase its rates to ensure payback of the loans. The average increase is 34%.
Ordinance refinancing General Obligation Bonds (First Reading): In 2006, the City issued $21 million in bonds to extend the Prop S Bonds and free up money for current projects, build a Conference Center, and build the First Phase of the Family Sports Park. Funding for this bond is part of the Prop S ½-cent Sales Tax, the Hotel/Motel Tax and the Food and Beverage Tax. With the increase of the City’s bond rating from AA- to AA, we are able to refinance these bonds from 20 years to 30 years, receive an additional $10 million to fund the next phase of the Family Sports Park and not increase our bond payment. The $10 million will build an additional four ball fields, two professional soccer fields and associated parking, concessions, playground equipment, trails, and rest rooms. The expansion will allow O’Fallon to be
competitive for Regional and National tournaments and establish the City as a destination to benefit our hotel and restaurant industry. With this ordinance, Bernardi Securities will go to market and establish demand, rate and cost. Bernardi will return for the second reading with financial details and a resolution authorizing the mayor to sign for the sale of the bonds and associated documents.
Ordinance issuing Library Bonds (First Reading): When Vernon Ohlendorf passed away last year, he left $2.3 million in his estate for the O’Fallon Public Library. The Library would like to sell $2 million in bonds to expand the library. Mr. Ohlendorf’s funds will be invested and the proceeds used to pay off the bonds and if the economy recovers, by the end of 18 years the bonds will be paid and the Library will have the $2.3 million as an endowment. This issue is 2009A and shares the cost with issue 2009 to save cost of both issues. This is an enabling ordinance and does not contain details on the cost. With this ordinance Bernardi Securities will go to market and establish demand, rate and cost. Bernardi will return for the second reading with financial details and a resolution authorizing the mayor to sign for the sale of
the bonds and associated documents.
Ordinance selling surplus property (First Reading): This is a routine item to sell vehicles and equipment that are no longer needed. Four vehicles and miscellaneous equipment have been identified as surplus and ready for sale. All items will be listed on the internet and sold to highest bidder through an online auction web site.
Ordinance amending the Telecommunications Tax (First Reading): In 2006, the telecommunications was increased from 1% to 5% to raise funds to purchase the final 20 acres of ground for the Family Sports Park. When the increase was approved, an amendment was made for the increase to expire in 10 years. While the extra revenue purchased the park acreage, the sunset clause restricted and limited its use in overall financial ratings. If the sunset clause is removed, the telecommunications tax becomes part of the City’s long term revenue and, along with our overall good financial management, allows the City’s bond rating to increase from AA- to AA. The increased bond rating allows the City to refinance the 2006 bond issue from a 20-year bond to a 30-year bond and receive an extra $10 million to fund the next phase of the Family
Sports Park without an increase in the bond payment (see above). In addition, the inclusion of the telecommunications tax into the bond payments could also be used to offset part of the Prop S payment and free up an extra $1-$1.2 million per year for the term of the bond for infrastructure improvements (streets, stormwater, and sidewalks).
Special Use Permit for the Aroy Thai Cuisine restaurant: The restaurant, located at 1140 Central Park Drive, would like to provide outdoor seating next to their building.
Amended Special Event Permit for the Mayfest Autoshow and Kids Run: The original Special Event Permit was approved at the April 20 City Council meeting, and this amendment includes the closure of 5th Street in front of the Cavins Community Center.
Motion to purchase a water valve exerciser: Hydrant and valve exercising has become a more important component of our ongoing maintenance routine for the water system due to additional scrutiny from the IEPA during recent inspections. The valve and hydrant exercising, when done manually, is very strenuous and time consuming. Through this purchase, the equipment would make the process much less labor intensive, offer additional maintenance opportunities beyond what a valve exercising crew would typically be able to accomplish and save money as it would require less man hours to operate. We are purchasing a used model for $35,835.00 rather than its original selling price of $50,985.
Executive Session: two motions were approved by the City Council:
- Motion for the Mayor to negotiate the acquisition of property as discussed in Executive Session.
- Motion to place a resolution on the May 18 City Council meeting allowing for condemnation procedures for the Old Collinsville Road reconstruction project.
Tax Increment Financing Ordinances: Five Second Reading ordinances dealing with the proposed Regency Park Tax Increment Financing District are on hold for legal review.
In addition to the agenda items, Illinois Supreme Court Justice Lloyd Karmeier officiated the oath of office for everyone who was elected at the April 7 municipal election: Mayor Gary L. Graham, City Clerk Phil Goodwin, City Treasurer David Hursey, Ward 1 Alderman Gene McCoskey, Ward 2 Alderman Dan Polites, Ward 3 Alderman Jerry Mouser, Ward 4 Alderman Allen Medford, Ward 5 Alderman Dennis Renner, Ward 6 Alderman Ned Drolet, and Ward 7 Alderman Jerry Albrecht. The vacant Ward 7 Alderman also was filled with Mayor Graham’s appointment of Tom Faulkner to the seat.
Now you’re up to date. Next Monday night, committee meetings will be held for Parks and Environment at 5:30 p.m. and Community Development at 6 p.m. The Public Safety Committee meeting was cancelled.
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