CITY OF OLNEY
CITY COUNCIL MEETING
NOVEMBER 23, 2009


AGENDA #1 “CALL TO ORDER” The November 23, 2009 meeting of the Olney City Council was called to order at 7:30 p.m. in the Council Chambers of the Olney City Hall located at 300 S. Whittle Avenue, Olney, Illinois, with Mayor Mark Lambird presiding.

AGENDA #2 “PLEDGE OF ALLEGIANCE TO THE FLAG-PRAYER” Council members and visitors joined in the pledge of allegiance to the flag. Mayor Lambird led the group in a prayer.

AGENDA #3 “ROLL CALL” The following Council members were present: Gary Foster, Brad Brown, Pete Weber, Bob Ferguson and Mark Lambird. Also present were City Manager Randy Bukas, City Attorney Larry Taylor, City Treasurer Brad Yockey, City Engineer Roger Charleston and City Clerk Belinda Henton.

AGENDA #4 “PRESENTATION OF CONSENT AGENDA”
4-A Approve Minutes of the Council Meeting on November 9, 2009 and Special Council Meeting on November 13, 2009
4-B Approve and Authorize Payment of Accounts Payable November 24, 2009-Pooled Cash $95,483.34 and Levied Insurance $186,853.59
4-C Resolution: Accept Bid for Demolition of 503 W. Elm - Resolution 2009-R-79
4-D Resolution: Accept bid for Demolition of 1012 W. Butler - Resolution 2009-R-80
4-E Resolution: Award Contract to Charleston Engineering for Hall/Holly Road Water Main Design - Resolution 2009-R-81
4-F Resolution: Award Contract to Charleston Engineering for Boone/Morgan Storm Water Plan - Resolution 2009-R-82
4-G Request: Raffle License Application - OCC Student Senate

AGENDA #5 “REMOVAL OF ITEMS FROM CONSENT AGENDA” No items were requested for removal.

AGENDA #6 “CONSIDERATION OF CONSENT AGENDA” Councilman Brown moved to approve the consent agenda, seconded by Councilman Weber. A unanimous voice vote was received.

AGENDA #7 “CONSIDERATION OF ITEMS REMOVED FROM CONSENT AGENDA” No consideration was necessary because nothing was removed from the consent agenda.

AGENDA #8 “STAFF REPORTS”

8-A1 “City Manager - Status Report” Mr. Bukas reported that staff has put together a small advertising campaign to promote the use of SOS Bucks. One hundred radio commercials have been purchased, plus 50 more commercials the radio station owed the City from a previous campaign. There will also be two, half page ads in the Olney Daily Mail, one on November 25 and another on December 15. More than 20 stores are accepting SOS Bucks.

The November MFT receipts are approximately $7,000 less than last year. This is a decrease of 32.4%. Year to date receipts are down 9.1%.

The August sales tax collections received in November were $120,000, a decrease of $23,000 from last year. The year to date receipts are down 6.8%.

Telecommunications tax for November was down $5,200.

Al Zellmer will address the Council on December 14 to discuss additional improvements needed at the firing range building.

City crews will be testing the Christmas lights Tuesday and Wednesday.

The fine air bubble diffuser equipment purchased for the Sewer Plant is expected to arrive in January.

The flushing of the sanitary sewer trouble spots has been completed.

The Street Department began fixing sink holes. Hunley Drive is completed. Sidewalk repairs will be started soon. The top priority will be 303 S. Richland.

Installation of the air diffusion system at East Fork Lake started today. The project should be completed by Wednesday.

Ninety-six building permits have been issued in 2009 of which 22 were demolitions.

The Christmas lights at the Olney City Park will be turned on November 26 and the Christmas parade will be held on November 28 at 6:30 p.m.

The Olney Chamber of Commerce is recruiting carolers for Bower Park. Caroling is planned on Sundays and Wednesdays beginning on December 6 through December 23.

Councilman Brown asked about the status of the interviewing for a police eligibility list. Mr. Bukas reported that the last interview was contucted today. The board will now be totaling scores and sending out results. A preliminary list will be posted.

Councilman Brown asked if the Street Department works from a list for sidewalk repairs. Mr. Bukas answered yes. Councilman Brown asked to have a copy of that list.

AGENDA #9 “OLD BUSINESS”

9-A “Resolution: Award Contract to Kieffer Brothers for City Park Lift Station” The Council was provided with a revised resolution to award the contract to Kieffer Brothers for the North Route 130 lift station. Mr. Bukas advised verbal communications was received from DNR today that they have finished the review of the plans and specifications and will be doing the paper work which will be forwarded to the City within two weeks. The contract to Kieffer Brothers has to be awarded by December 9. The Mayor and City Manager are authorized to award the contract once approved by EPA.

Councilman Ferguson moved to approve Resolution 2009-R-83, seconded by Councilman Foster. Councilmen Brown, Weber, Ferguson, Mayor Lambird and Councilman Foster voted yes. There were no opposing votes. The motion carried.

9-B “Discussion: Watermain Extension to East Fork/Borah/Vernor Lakes” Councilman Brown asked about the status of the watermain extension project because he has had two residents in the general area of the lakes asking if the Council is serious about pursuing this project. Councilman Brown was told that there are two approaches to this project; one approach is to bore under East Fork Lake near Kiwanis Park and the other is to extend water mains east on Golf Lane. The Council has not determined which approach they preferred. Mr. Charleston has already submitted plans to EPA, which have been approved, for the original plan to bore under the lake. No plans have been drawn up to extend water east on Golf Lane from Route 130.

Councilman Brown questioned the cost difference between the two options. Mr. Charleston did not believe there would be much difference in costs. Additional customers could be picked up if extended from Route 130 down Golf Lane.

Councilman Brown assumed Golf Lane was the better option.

Mayor Lambird commented the City needs to find out how many residents are interested in obtaining city water and determine if the project would be viable.

Councilman Weber expressed concern if the City does not extend water service to this area E J Water District will.

Councilman Ferguson believed the first thing that needs to be determined is if these residents will be required to enter into an annexation agreement to obtain water service. Annexation is the biggest complaint he has heard.

Councilman Foster commented this project will be a major expense which will not to be able to be paid for in 20-30 years. Councilman Ferguson agreed it will take 20 to 30 years to pay for, but eventually it will become a revenue stream.

Councilman Weber imagined extending the water line east on Golf Lane and then south on St. Marie Road to create a loop. Mr. Charleston indicated that was possible.

Councilman Brown was concerned that the requirement of annexation will cut participation.

Mayor Lambird suggested inviting potential customers to a meeting to determine how many are serious with or without annexation requirements.
Councilman Foster questioned how this project would be funded. Mayor Lambird suggested Rural Development loans.

Councilman Ferguson questioned if this should be a City project or should a water district be formed. Mr. Taylor was not sure the City can form its own water district. Financing options change when the City does work outside city limits.

Mr. Yockey commented the residents can form a water district and then the City can sell the district water. The City would not be eligible for USDA loans if the area is annexed.

Mr. Yockey added the original study considered out of town water rates versus in town rates.

Councilman Brown asked Mr. Bukas for a recommendation to determine the next step. Councilman Ferguson thought the City owes the residents an answer, and this project is important because of the revenue generating potential.

The existing Water Plant has the capacity to sell water to additional customers.

Councilman Brown questioned if future Councils would be hindered by extending service to the lake areas without annexation. Mr. Taylor commented that once residents are connected to city water without annexation there is not much incentive to annex which will put a damper to extending corporate limits.

Councilman Ferguson questioned if there is any way to prevent E J Water District from selling water to the lake areas. Mr. Taylor answered no because this area is outside city limits.

The Council discussed the responsibility for maintaining lines. Councilman Foster asked if the water line extension would generate enough money to make a profit and maintain the lines.

Originally, it was estimated there were 223 potential customers, but some are only part time residents. Assuming out of town rates are charged, the net annual income could potentially be $82,700, but if in town rates are charged, the net annual income could be $37,800.

Councilman Ferguson suggested that out of town rates be charged if properties are not annexed.

AGENDA #10 “NEW BUSINESS”

10-A “Resolution: Award Purchase of 2010 Silverado from Eagleson Chevrolet” The state bid for a pickup truck which could be used for snow removal operations was a Ford and the dealership was out of Milwaukee. The state bid was for a one ton dual axle truck. Mr. Bukas did not feel the Street Department need the dual axles. He proposed purchasing a single axle Chevrolet truck that has 4-wheel drive. The cost from Eagleson’s is $24,170.85 versus the $24,558.00 that was part of the state bid. Various dealerships have been contacted and Eagleson’s was the lowest quote. Mr. Bukas recommended waiving the formal bidding procedures and approve the purchase from Eagleson Chevrolet.

Councilman Brown moved to approve Resolution 2009-R-84, seconded by Councilman Ferguson. Councilmen Weber, Ferguson, Mayor Lambird, Councilmen Foster and Brown voted yes. There were no opposing votes.

10-B “Resolution: Award Purchase of Salt Spreader” Staff is still collecting information to purchase a salt spreader for the 2010 Silverado. This item will be on the next agenda.

10-C “Resolution: Reject Bid for Dry Pit Pump Wastewater Plant” The Council was provided with a resolution rejecting all bids received for the dry pit pump, also called a return activated sludge pump for the Wastewater Plant. Public Works Coordinator Frank Bradley recommended all bids be rejected at this time and rebid and re budget the purchase of two return activated sludge pumps in the 2010-2011 budget. The current pumps which are in use are obsolete and any new pump would have different dimensions and therefore require piping modifications. This year $20,000 was budgeted. Mr. Bukas suggested $30,000 be budged next year. At that time piping modifications can be made for both pumps.

Councilman Weber moved to approve Resolution 2009-R-85, seconded by Councilman Foster. A unanimous voice vote was received.

10-D “Resolution: Tax Levy” Mr. Yockey provided the Council with a recap of the 2009 tax levy. The Council was also provided a proposed resolution with a tax levy increase of 10.4706%. The estimated assessed valuation is $95,400,000 which is an increase of $1,335,000 from last year. Mr. Yockey reviewed the increases and decreases in the various levied funds. Some of the increases are needed because last year the Council did not increase the tax rate as recommended. Mr. Yockey estimated a tax increase of $54.67 on a house with a fair market value of $117,630.

Since the proposed tax is more than 5%, a truth in taxation hearing will be required. If the proposed resolution is approved, a hearing will be scheduled for December 14.

Mayor Lambird asked what impact there will be if the tax rate is not increased. Mr. Bukas explained once additional revenue is given up through a tax levy, it can never be made up. He went on to explain there are a lot of projects being considered for next year and equipment that needs to be purchased. If money is not available, goals will not be accomplished.

Councilman Foster moved to approve Resolution 2009-R-86, seconded by Councilman Weber. Mayor Lambird, Councilmen Foster, Brown, Weber and Ferguson voted yes. There were no opposing votes. The motion carried.

10-E “Discussion: Leaf Burning Ban” Councilman Foster has received comments from several people about leaf burning. He thought it would be wise to discuss this subject again. He realized a burning ban may cause a hardship for residents to get rid of leaves. There are other options such as mulching leaves or bagging the leaves and taking them to the brush dump. He also realized the expense involved if the City becomes responsible for collecting leaves.

Included in the Council packet was a report from the Police Chief regarding illegal burning complaints that his department received during the past couple of years, copies of various Council meeting minutes, a copy of Ordinance 2007-19 and a copy of a request regarding leaf collection that has gone through the Illinois Government Net program. Staff has been checking the price of a leaf vacuum. Staff feels two machines would be needed in order to pick up leaves for the entire City. At the present time it is not believed additional trucks would be needed. The trucks that are currently in the fleet could be used to haul the leaves that are vacuumed. Mr. Bukas advised if this program is implemented, the City may want to look at a collection of leaves sometime between September 1 and December 15. It was Mr. Bukas’ opinion if leaf burning is allowed to continue, burning needs to be limited to only certain months.

Councilman Ferguson pointed out this matter has been discussed several times by the Council without a decision. It was his opinion if a burning ban is enforced, an alternative should be provided. In the past the cost estimate for having the City pick up leaves was $60,000 to $70,000. The cost was his main concern.

Councilman Foster questioned if there was someone within the community interested in contracting leaf pickup service.

Councilman Foster suggested investigating to see what other communities do concerning leaves.

Councilman Weber pointed out if the leaves are taken to the brush dump, the City will be burning the leaves. If the City is allowed to burn leaves at the brush dump, he questioned why the residents cannot burn. He would like to look at other alternatives such as composting. The initial cost may be painful, but the City may end up with a better alternative.

Councilman Brown pointed out in the past the Council discussed using a vacuum truck. Mr. Bukas explained currently the Street Department is using the street sweeper to remove the leaves in the street. Staff has been looking at a new leaf vacuum on a trailer which would cost approximately $9,000 and two would be needed. The vacuum would pick up the leaves and shred them.

Councilman Brown commented even through burning is not banned, consideration should be given to purchase a vacuum.

10-F “Discussion: Emergency Management Ordinance” Mayor Lambird asked Mr. Taylor to draft an ordinance for emergency management. Currently, the City does not have an ordinance which spells out how the City would proceed if an emergency or disaster occurred in the community.

Mr. Taylor explained in order for an emergency to be declared, without the City Council taking action, the state statutes require an ordinance or code provision to provide the criteria of establishing what is a civil emergency and who is to make that declaration and indicate the succession of individuals.

Also included in the ordinance is a section about National Incident Management System (NIMS). Mr. Bukas reported there are five employees scheduled to take the NIMS 100 class. Some employees have taken other NIMS classes. Currently, the City does not meet the over all criteria of NIMS. Mr. Bukas has taken all of the NIMS classes. The Council is also required to take one of the NIMS classes. The City has to be NIMS compliant in order to continue to receive grants for Fire and Police.

The Council will review the proposed ordinance before taking further action.

10-G “Discussion: Sale of 402 W. Elm” Councilman Brown was approached by a local developer interested in building on empty lots owned by the City. The City currently owns the vacant property at 402 W. Elm which is zoned for duplexes. Variances may be needed to allow for building on the small lot. The lot is better suited for a single family home.

The Council discussed incentives that could be given to encourage development and get vacant properties back on the tax rolls. It was determined that a package would have to be put together and advertised for bids.

Mr. Taylor explained the statutory authority which allows the City to sell property also allows the City to establish certain conditions, but requires bids. The highest bid does not have to be accepted, but the bid that would be in the best interest of the City. Any bid approved would have to be approved by a 4/5 vote. As a part of the biding process, the City could put together requirements of the bid. Mr. Taylor voiced a concern with giving tax abates. The City does not have the authority to grant tax abatement for residential property. Instead of a tax abatement, the City could agree to refund taxes for a specific year or period of time.

Councilman Brown questioned if the City could offer loans. Mr. Taylor explained this would be difficult unless the developer qualifies for revolving loan funds.

Councilman Brown explained the builder he spoke to was interested in developing 402 W. Elm as a duplex, but that does not sound possible due to the lot size.

Mr. Bukas explained 402 W Elm is a corner lot with two front yard setbacks. The Code Enforcement Officer has looked at the lot and considered average setbacks which are allowed. The lot would provide enough room for a 1,500 square foot home.

Councilman Brown expressed his opinion that the City needs to get aggressive with redevelopment of this neighborhood. He would like to see a proposal put together and go out for bids.

Mr. Taylor explained the Council may consider simply asking for proposals from the bidders.

Councilman Foster expressed a concern with the house west of 402 W. Elm setting so close to the property line. He asked if the regulations determine how close houses can be from each other. Mr. Bukas answered the zoning ordinance requires a side yard of six feet.

Councilman Foster asked if the City is allowed to give someone a lot. Mr. Taylor explained the City is required to go out for bids or obtain an appraisal and advertise for sale based on 80% of the fair market value.

Councilman Brown made a motion to direct the staff to work out a couple of different packages best suited for 402 W. Elm for development.

Councilman Weber would like to create a program with a geographical area and a time line. He did not want someone coming back to the City in 10 years wanting the same special privileges. Without a structured program this could happen.

Mr. Bukas agreed with Councilman Weber, an area of the community should be targeted for revitalization.

Councilman Weber seconded Councilman Brown’s motion. A unanimous voice vote was received.

AGENDA #11 “PUBLIC COMMENTS/PRESENTATIONS” Brian O’Neill addressed the Council on behalf of the citizens. He convinced Patty Bach to sell her house at 300 E. Vine. He has also talked to Kay Hugill and she is interested in selling her property.

Mr. O’Neill stated the City must look for emergency management throughout the community.

Mr. O’Neill also stated that the residents in the N. Boone Street area would like to have a meeting with the City Manager and City Engineer to discuss flooding issues.

Patty Bach has talked to the City Manager and understood he was going to provide her with a contract for the purchase of the house at 300 E. Vine. She needs a contract in order to be able to finance another house. She questioned what kind of time line will be needed for the contract. Mr. Bukas advised her he was waiting for the Council to approve accounts payable at this meeting in order to present her the contract and a down payment.

John Rohr asked if a contract has been awarded to Charleston Engineering for work in their area. Mayor Lambird answered yes. Mr. Rohr was hoping a meeting could be arranged with Mr. Charleston to explain the plan. Mayor Lambird was agreeable to arrange a meeting with the City Engineer, City Manager, a Councilman and himself.

Sue Rohr was very disappointed in the City. She has lived here all her life and wishes she never had.

AGENDA #12 “REPORT FROM THE MAYOR” Mayor Lambird had nothing further to report.

AGENDA #13 “REPORTS FROM CITY COUNCIL MEMBERS” No further reports were heard from the Council members.

AGENDA #14 “CLOSED SESSION: EMPLOYMENT AND COMPENSATION FOR SPECIFIC EMPLOYEES” Councilman Foster moved to adjourn to executive session for the purpose of discussing employment and compensation for specific employees, seconded by Councilman Brown. A unanimous voice vote was received.

Councilmen Foster, Brown, Weber, Ferguson, Mayor Lambird, City Manager Bukas, City Attorney Taylor and City Clerk Henton left the Council Chambers at 8:55 p.m.

AGENDA #15 “RECONVENE OPEN SESSION” Upon the return of those who were in executive session to the Council Chambers, Councilman Weber moved to enter back into open session, seconded by Councilman Foster. A unanimous voice vote was received. Open session resumed at 9:56 p.m.

AGENDA #16 “ACTION ON CLOSED SESSION” No action was taken as a result of the executive session.

AGENDA #17 “ADJOURN” Councilman Weber moved to adjourn, seconded by Councilman Brown. A unanimous voice vote was received.

The meeting of the City Council adjourned at 9:57 p.m.


Belinda C. Henton
City Clerk