City Council

Meeting date:

Monday, July 6, 2015

O’FALLON CITY COUNCIL

MINUTES OF THE REGULAR COUNCIL MEETING

July 6, 2015

The regular meeting was called to order at 7:00 p.m. by Mayor Gary Graham who led the Council in “The Pledge of Allegiance to the Flag.”

Philip Goodwin, City Clerk, called the roll: Gene McCoskey, present; Richie Meile, present; Jerry Albrecht, excused; Robert Kueker, present; Jerry Mouser, excused; Kevin Hagarty, present; Herb Roach, present; Matthew Smallheer, present; Michael Bennett, present; Courtney Cardona, present; Ray Holden, present; Ned Drolet, present; David Cozad, present; Harlan Gerrish, present. A quorum was declared present.

APPROVAL OF MINUTES: Mayor Graham asked for approval of the minutes. Motion was made by K. Hagarty and seconded by R. Kueker to approve the minutes of June 15, 2015. All ayes. Motion carried.

PUBLIC HEARING – Mayor Graham opened the Public Hearing at 7:01 p.m. for the proposed annexation with Craig and Renee Nix for an approximate 5.27 acre parcel located at 7710 Haury Road, Lebanon. He called three times for input but no one came forward. He closed the Public Hearing at 7:02 p.m.

Mayor Graham opened the Public Hearing at 7:02 p.m. and stated that this is a public hearing being held pursuant to the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended. Notice of this hearing was published on June 18, 2015, in the O’Fallon Progress, a newspaper of general circulation in the City of O’Fallon, Illinois. This is a hearing regarding a plan to issue not to exceed $10,000,000 in aggregate principal amount of the City’s General Obligation Bonds, Series 2015. The proceeds of which will be used by Hospital Sisters Health System, an Illinois not for profit corporation or an entity related thereto (the “Developer”) pursuant to a Redevelopment Agreement made and entered into as of the 21st day of November, 2011 by and between the City and the Developer (the “agreement”) for the purposes of (i) financing costs of remediation in connection with the developer improvements portion of a hospital medical campus (the “Project”) to be owned by the Developer or an entity related thereto (collectively, the Borrower”) located on approximately 148 acres in O’Fallon, Illinois, located on the north side of Interstate 64 between exits 14 and 16 with an address of 1501 North Greenmount Road, O’Fallon, Illinois, 62269 (ii) funding capitalized interest on the Bonds and (iii) pay all or a portion of the costs of issuing the bonds. The bonds shall be secured by the City’s general obligation full faith and credit and shall be paid on a priority with respect to application of the Incremental Property Taxes, as provided in the Agreement.

The public hearing is required by Section 10 of the Bond Issue Notification Act of the State of Illinois, as amended. At the time and place set for the public hearing, residents, taxpayers and other interested persons will be given the opportunity to express their views for or against the proposed plan of financing, the issuance of the Bonds and the purpose of the issuance of the Bonds. The Mayor asked if anyone wished to submit written comments. He then asked if any residents, taxpayers or other interested persons attending the hearing and desiring an opportunity to express their views for or against the proposed bonds, to please stand so that they may have an opportunity to make those comments or statements. The Mayor asked a total of three times and then concluded the public hearing regarding a plan to issue not to exceed $10,000,000 in aggregate principal amount of the City’s General Obligation Bonds, Series 2015. The Public Hearing was concluded at 7:03 p.m.

RESIDENTS: Mayor Graham asked if anyone wished to come forward to speak to the Council.

John Wagnon, president of District 90 School Board, thanked the Council and requested that they reconsider their 25% pass through proposal. Most of their revenue comes from property taxes, and they must manage that revenue responsibly. They have a tough financial position as property values have gone down and the State funds are smaller.

Steven Kramray, a concerned parent, also asked that the Council work with the school in consideration of the education of the children.

John Drolet, former alderman, thanked Ted and the staff regarding the ice rink. He also agreed with more discussion on the 25% pass through. He also spoke on Senate Bill 0107 and asked if the Council would contact the Governor requesting an amendment to the homestead exemption of waiving property taxes for disabled veterans. The veterans deserve our support, but the bill is unfair.

H. Roach also stated he would like to see the Council negotiate the 10% pass through again. He wants to negotiate a settlement that is good for the City and District 90. He supports the TIF but does not want to see the schools lose money.

M. Smallheer asked M. Bennett if he could bring it up at the Finance committee. The Central City TIF was passed before he came into office, so he would like to hear more discussion.

Mayor Graham passed out information with the consultant’s numbers showing the number is less than $1,000 a year. The EAV has gone down for the schools. He said both of his children attended O’Fallon schools. People move here because of the schools, safety and the good parks. We have over 30,000 people and some of the areas in the city has gone down. O’Fallon has given $40,000 a year to the schools for the last twenty years providing school crossing guards. We have spent over a million dollars in support of the school. We have plowed the parking lots, and we have an intergovernmental agreement for ball parks. The school district let their consultant go. Communication with District 90 has been limited since the threat of a lawsuit. They are on the State financial watch list. District 203 signed off on the TIF. We need strong schools. Eight years ago, they started to lose revenue as a result of a lower EAV, as property values have gone down. The schools want to be in the sales tax business. If it is passed, it is a County issue. This TIF is about rebuilding the downtown and Southview area. We have the only audited numbers. We have talked to Mr. Wood before he left. Mayor Graham added he knows the recommendation of the superintendent and the school’s attorney. It hurts the community when misinformation is circulated. We are all for our schools and we know we have good schools. Mayor Graham welcomed the new District 90 superintendent, Carrie Hruby, who was in attendance.

N. Drolet added that SB 0107 has a greater impact to the schools. He would like a resolution passed and sent to the governor. The second portion should be stricken. It should be narrowed to home improvements. Mayor Graham knows that the veterans are not always getting the help they need.

Todd Roach, vice president of the District 90 School Board, stepped forward and said that the school could lose seven million dollars with the TIF. District 90 would lose 40% of that. He believes that the $1,000 a year is misleading. Mayor Graham responded that he would like to see his consultant’s numbers, as they do not agree with the numbers from the City’s consultant.

REPORTS:

Clerk’s Report: No report.

Mayor’s Report: Mayor Graham read a proclamation declaring July 6, 2015 as 2015 Panthers AAU Basketball Team Day.

He also read a proclamation declaring the month of July as Parks & Recreation Month. He announced that the Free Swim is July 13^th from 5 - 9 p.m. for O’Fallon and Shiloh residents. He added that the Park is supported by Hotel/Motel taxes. Each household pays about $180 a year.

RESOLUTIONS:

Motion by G. McCoskey and seconded by M. Bennett to consider Resolution items 1 – 7 under the Omnibus Agreement. All ayes. Motion carried. Mayor Graham read the resolutions.

Item 1 – Resolution authorizing the Mayor to sign an annexation agreement with Craig and Renee Nix for 7710 Haury Road

Item 2 – Resolution authorizing the Mayor to execute both an amended agreement with Rhutasel & Associates and Geotechnology, Inc. for construction management, staking, and testing services as required on the Milburn School Road project – Phase 4 in an amount not to exceed $40,000 and an IDOT resolution form approving the use of Motor Fuel Tax (MFT)

Item 3 – Resolution authorizing the Mayor to execute both an amended agreement with Rhutasel & Associates, Inc. for professional engineering services for the design of Milburn School Road improvements, Phase 3 in an amount approximately $16,400 and an IDOT resolution form approving the use of Motor Fuel Tax (MFT)

Item 4 – Resolution authorizing the Mayor to execute both an amended agreement with Rhutasel & Associates, Inc. for professional engineering services for the design of Milburn School Road and Old Collinsville Road Roundabout (Intersection only) in an amount of approximately $17,800 and an IDOT resolution form approving the use of Motor Fuel Tax (MFT)

Item 5 – Resolution authorizing the Mayor to execute an agreement with Millennia Professional Services of Illinois, LTD., for surveying, staking, improvement study, final plans, railroad permit submittal, & construction observation for the Eagle Drive Detention Basin project

Item 6 – Resolution authorizing the Mayor to execute an agreement with Millennia Professional Services of Illinois, LTD., for surveying and preliminary engineering services for 2^nd Street

Item 7 – Resolution authorizing the Mayor to execute an agreement with Gonzalez Companies for additional design services for the Public Safety Detention Pond, Howard Place and Smiley Drainage Project, at a cost of $43,440

Motion by G. McCoskey and seconded by R. Kueker to approve Items 1 – 7 under the previous Omnibus Agreement.

ROLL CALL: McCoskey, aye; Meile, aye; Hagarty, aye; Kueker, aye; Roach, aye; Smallheer, aye; Bennett, aye; Cardona, aye; Holden, aye; Drolet, aye; Cozad, aye; Gerrish, aye. Ayes – 12; Nos – 0. Motion carried.

ORDINANCES:

1^st Reading –

Motion by G. McCoskey and seconded by M. Bennett to consider on 1^st Reading, Item 8, an Ordinance creating and establishing a Fire Fighter’s Pension Fund and creating a Board of Trustees of the Fire Fighter’s Pension Fund.

2nd Readings –

Motion by G. McCoskey and seconded by K. Hagarty to approve on 2^nd Reading, Item 9, an Ordinance approving the Final Plat of the Reserves of Timber Ridge, – Phase 1.

Motion by G. McCoskey and seconded by K. Hagarty to approve on 2^nd Reading, Item 10, an Ordinance providing for the issuance of General Obligation Bonds, Series 2015, providing the details of such bonds and for a levy of taxes to pay the principal of and interest on such bonds, and related matters.

STANDING COMMITTEES –

Community Development: G. McCoskey made a motion seconded by M. Bennett to approve the Special event request from Frieze Harley-Davidson to hold a Customer Appreciation Day with alcohol sales and conditions on July 18, 2015 at their location and to approve the Special Event request from Knights of Columbus for their weekly event at their location with conditions. All ayes. Motion carried.

G. McCoskey stated they will meet July 13th at 6:00 p.m. at the Public Safety Building.

Public Works: G. McCoskey stated they will meet July 27th at 7:00 p.m. at the Public Safety Building.

Public Safety: C. Cardona said the next meeting will be next Monday at 5:00 p.m. at the Public Safety Building.

Finance/Administration: M. Bennett made a motion seconded by M. Smallheer to approve Warrant #328 in the amount of $1,205,452.37.

Parks and Environment: R. Holden said they will meet next Monday at 5:30 p.m. at the Public Safety Building.

EXECUTIVE SESSION: Mayor Graham stated there is no closed session.

ADJOURNMENT: Motion by M. Bennett and seconded by K. Hagarty to adjourn. All ayes. Motion carried.

The meeting was adjourned at 7:51 p.m.

Submitted by,

__________________________

Philip A. Goodwin

City Clerk

Minutes recorded by

Maryanne Fair, Deputy City Clerk

Proper notice having been duly given

Explore O'Fallon:

Boards & Commissions

Committees