MINUTES OF THE MEETING OF THE MAYORAND THE COMMITTEE-OF-THE-WHOLEOF THE CITY OF EAST MOLINE, ILLINOISMONDAY, AUGUST 17, 2009ROLL CALLMayor Thodos called the meeting to order and directed City Clerk Arletta D. Holmes to call theroll. The following Aldermen were present: Helen Heiland, Luis Puentes, Jeffrey Stulir, CheriBustos, David Kelley, Roseann Cervantes, Gary Westbrook, and Mayor Thodos. 7:49p.m.ADDITIONS/CORRECTIONS TO AGENDANoneBI-STATE SERVICES - (Ms. Denise Bulat)Ms. Denise Bulat of Bi-State Regional Commission presented information to the City Council onthe services that they provide.Ms. Bulat stated that 2 ½ years ago the City of East Moline for the first time participated in theBi-States Revolving Loan Fund. Rock Island and Scott County have a Revolving Loan Funddevelopment program that provides “gap financing” for businesses. The City of East Moline isnow vested into the process. What that means is the city can come to Bi-State with otherprojects. Bi-State does have Revolving Loan Funds and Bi-State encourages the city to apply.The program has “gap financing” for business startups or expansions that create or retain jobs.The Bi-State Regional Commission Area is designated as an Economic Development District(EDD) by the U.S. Department of Commerce Economic Development Administration (EDA).EDA is one of the few federal agencies which include Bi-State’s Iowa counties in one districtserved by the Chicago regional office. Bi-State, as an EDD, is responsible for coordinatingeconomic development activities and offers assistance with regional and community economicdevelopment efforts throughout the five-county region. Communities and counties continuallyseek ways to increase employment and improve the quality of life. Bi-State staff can provide avariety of information and resources that may aid economic development activities.Services include: Capital Improvement Programs, Comprehensive Economic DevelopmentStrategy (CEDS), and Grant Applications for infrastructure, public facilities, law enforcementprograms, recreation and open space, housing rehabilitation, economic development projects,and solid waste/recycling. Grant Management for any type of awarded project, maintainingcompliance with all applicable state and federal guidelines and requirements.Data and Information- Bi-State Regional Commission is the “one-stop” center for data andinformation services. The Data Graphics Center compiles a vast array of up-to-date informationrelated to the five-county region and the states of Illinois and Iowa. The Center is a federalrepository for census documents and publications. A large store of information describing thesocioeconomic characteristics of the region (or any part within) is maintained. This type ofinformation is helpful in attracting new business and assisting business expansion decisions.Discussion was held regarding the recycling program and not having the openings large enough torecycle cardboard boxes and other larger items. Ms. Bulat explained that the smaller openings willmake individuals break the boxes down rather than just putting in the container, to keep contaminatesfrom being thrown in such as glass items, also unfilled containers cost more to move.(This item is for discussion only, no action was taken.)
IMRF RATE DISCUSSION (Mr. Hughes)The City Council must decide what rate to pay for the 2010 Illinois Municipal Retirement Fund(IMRF). Because of the large market loss, IMRF rates have increased substantially. Because ofthe public concerns, the IMRF Board of Directors drafted a Phase-in Rate. This year our AnnualRequired Contribution is 5.92%. Our Annual Required Contribution (ARC) is 11.08% for 2010which is an increase of $97,105. We are allowed to use the Phase-in Rate of 8.46% which wouldonly be an increase of $47,798. There are issues with selecting the lower Phase-in Rate.First, the city will have to show an Unfunded Pension Liability of $49,307, the differencebetween our ARC and the Phase-in rate.Secondly, the city will pay the difference within five (5) years with 7% compounded interest.The city has always been over 100% funded in our IMRF Fund and this has kept our rates low.This levy would have been much greater if the city was still paying water and sewer pensions outof the tax levy. The city will have the chance to select the lower rate now and if we decide at alater date to levy for more pensions, an additional payment can be sent to IMRF.Recommendation:Levy the Annual Required Contribution. The city will have to pay it eventually, if paid now; thecity will not be paying it back with interest.BUDGET IMPACT:Would require an increase in the tax levy for IMRF.Discussion:Mayor Thodos stated that last year IMRF and Fire Pensions were 100% funded and PolicePensions was 80% funded.Alderman Puentes expressed his concerns over the huge jump in the IMRF rate. He asked Mr.Hughes to explain to the City Council how IMRF differs from Police and Fire in regard to howmuch they are allowed to put into the pensions and in regard to stocks, bonds, etc. and otherinvestments and how this is different. Alderman Puentes also asked how this might affect therate increase and the potential for a state income tax increase.Mr. Hughes stated that the difference in the law is that IMRF has no limit on the amount ofequity they can have in the stock market. Our local police and fire pensions funds are limited to40%. When the markets went up and was doing very well, the fire and pensions funds wereforced to stay under this 40%. With IMRF these rules do not apply.The city will see some increases in police and fire pension funds, but not nearly as dramatic asIMRF. Mr. Hughes reminded everyone that if they choose to pay the lower rate the city willneed to pay the difference within five years with 7% compounded interest. Additionaldiscussion was held regarding various aspects of this issue.A motion was made by Alderman Bustos, seconded by Alderman Heiland, to concur with staffrecommendation as presented and direct the City Attorney to prepare the appropriate documentand forward to the City Council for their consideration. Upon roll call the following voted infavor: Heiland, Bustos, Kelley, and Westbrook. The following voted to oppose: Puentes, Stulir,and Cervantes. Motion carried. 4-3.Fireworks contact – 2010 (Mr. Lambrecht)NOSTALGIA PYROTECHNICS, INC. has again proposed to provide the Fireworks Display forthe City of East Moline at the same price of $10,000.00. the display will have the same shell
count as this year’s display. All fees, permits, and insurance are included. NostalgiaPyrotechnics now has a guarantee that, if after the show, they do not meet our expectations theywill credit the account $1,000.00The display is scheduled for July 3, 2010 with a rain date of July 5, 2010.RECOMMENDATION:OPTION 1. Approve the proposal of NOSTALAGIA PYROTECHNICS, INC. 2010fireworks display; or,OPTION 2.Request competitive bids for the event.BUDGET IMPACT:Estimated $10,000 if current proposal is accepted. Cost could vary, if competitive bids arerequested.A motion was made by Alderman Westbrook, seconded by Alderman Puentes, to concur with therequest as presented and direct the City Attorney to prepare the appropriate document andforward to the City Council for consideration.Discussion was held regarding identifying sponsors, soliciting others for bids, or tabling this to alater date.Upon roll call the following voted in favor: Heiland, Puentes, Stulir, Kelley, Cervantes, andWestbrook. The following voted against: Bustos. Motion carried. 6-1.9 th AVENUE 21 ST STREET DRAINAGE IMPROVEMENTS (Mr. Kammler)The existing drainage near the intersection of 9th Avenue and 21 st Street is very poor. Residentshave made complaints about standing water on the streets in this area, particularly immediatelyeast and north of this intersection. As part of the 2009 Capital Improvement Program, (CIP)some minor construction was planned to help alleviate the surface drainage issues in this area, iffunds permitted. Proposed improvements include the installation of three new stormwater inlets,storm sewer pipe, drain tile, surface restoration and related work.Existing drainage Capital Improvement funds are being spent toward the city’s required co-payfor the FEMA-related city-wide drainage repairs that are taking place as previously approved bythe City Council. For this project to proceed this year, payment would need to come fromsurplus funds in the $2.5 Million in debt certificates borrowed for the levee work, ButterworthLagoon dredging and spillway repair, and other drainage improvements. If approved by the CityCouncil, it is recommended that, due to its small scope, this work be performed on a time andmaterial basis by Miller Trucking & Excavating as part of their city-wide drainage repair andimprovement project.Mr. Kammler informed the City Council that there is a second small drainage CapitalImprovement Project (CIP) that should be included for the City Councils’ consideration. Thisissue was also on our CIP in the area of 450 - 41 st Avenue, south of Trinity Care Center andLandmark Engineering. Both projects are in the CIP for 2009.RECOMMENDATION:Either(1) Approve the proposed work for construction this year using debt certificate fundsOr(2) Approve the project for construction next year using Drainage CapitaImprovement (Funds (revenue generated from the new stormwater utility).