CITY OF OLNEY
CITY COUNCIL MEETING
DECEMBER 14, 2009


AGENDA #1 “CALL TO ORDER” The December 14, 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. Jerry Bush 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 “PUBLIC HEARING - TAX LEVY” Mr. Yockey explained a public hearing is required on the tax levy because the proposed increase was more than 5%. The proposed change in revenue is 10.4706% and a tax increase of 8.3881%.

Mayor Lambird asked for questions or comments from the public. George Hostettler, 413 Lee Avenue, commented everyone is having budget problems and asked where the residents are supposed to come up with extra income. He suggested cutting the budget.

The public hearing was closed at 7:35 p.m.

AGENDA #5 “PRESENTATION OF CONSENT AGENDA”
5-A Approve Minutes of Council Meeting on November 23, 2009
5-B Approve and Authorize Payment of Accounts Payable December 15, 2009 - Pooled Cash $69,125.69, Manual Checks $9,410.44 and Water Deposit Refunds $1,689,31
5-C Resolution: Cancel December 28, 2009 Council Meeting - Resolution 2009-R-87
5-D Resolution: Accept Bid for Demolition of 427 E. Lafayette - Resolution 2009-R-88
5-E Request: Raffle License Applications - Richland Memorial Hospital, Fraternal Order of Eagles and Sons of American Legion

AGENDA #6 “REMOVAL OF ITEMS FROM CONSENT AGENDA” No items were requested for removal.

AGENDA #7 “CONSIDERATION OF CONSENT AGENDA” Councilman Brown moved to approve the consent agenda, seconded by Councilman Ferguson.

Since there was only one bid for the demolition of 427 E. Lafayette, Councilman Weber questioned if anyone followed up to find out why no one else submitted a bid. Mr. Bukas explained it was because of the time restraint and many of the contractors are busy.

A unanimous voice vote was received to approve the items on the consent agenda.

AGENDA #8 “CONSIDERATION OF ITEMS REMOVED FROM CONSENT AGENDA” No consideration was necessary because nothing was removed from the consent agenda.

AGENDA #9 “STAFF REPORTS”

9-A “City Manager - Status Report” Prior to the meeting a neighborhood revitalization public hearing was held. The City is applying for a $350,000 grant from DCEO for a housing rehabilitation project on the south side of the City. The area has been condensed to about 30 houses bordering Whittle Avenue to Ridgway Avenue and Morgan Street to Harmon Street. Residents are now being surveyed. The Council will be asked to approve a resolution of support for this project at the next meeting.

The December receipts for Corporate Replacement Tax were $1,000 less than the same period last year. Year to date receipts are down 14.7%.

The October receipts for Income Tax were approximately $4,000 less than last year which is a decrease of 8.9%. The City has experienced 10 months in a row where the income tax has been lower than the same month last year. Year to date receipts are down 16.14%.

Motor Fuel Tax receipts for December were $8,900 more than last year, but the year to date receipts are down 2.1 % and up 8.1% over budget.

September Sales Tax receipts received in December were $12,500 less from the same period last year. Year to date receipts are down 7.13%.

The August Use Tax receipts received in November were down $4,500 over the same period last year. This is the tenth month in a row where the Use Tax has been lower than the same period last year. Year to date receipts are down 11.66%.

Loan information has been received from the Illinois Department of Environmental Resources for the park lift station. The City will be receiving $507,154 under the American Recovery and Reinvestment Act. Of that amount $253,577 is a loan forgiveness and the other $253,577 will be a 0% loan. Also received from the Water Pollution Control loan program is $507,150 at 0% interest. The Department of Community and Economic Opportunity also provided a grant of $350,000 for this project. A notice of award has been sent to Kieffer Brothers Construction.

The City has applied for a grant from DCEO in the amount of $282,000 for the Baird Street lift station. It will take a few weeks before a determination of award is determined.

City crews recently installed a culvert at the corner of Mack Avenue and Silver Street. Additional work is needed around the catch basin.

Earlier this evening staff met with Butler Street residents to discuss construction easements and right of ways. The Butler Street reconstruction is a $670,000 project of which $452,000 of stimulus money will be received and $226,00 of MFT money will be used.

Notice was received from the Illinois Department of Transportation concerning the posting of weight limits for the Elliott Street bridge. City crews have posted weight limit signs.

The air diffusion system has been installed at East Fork Lake. Hopefully, water quality will improve within two months. Installation of the air diffusion system went further out into the lake than anticipated. Boaters will need to be notified that anchors cannot be set where bubbles appear in the lake.

Ten building permits were issued in November totaling $160,163. The houses at 503 W. Elm, 1012 W Butler and 313 N. Silver have been demolished.

AGENDA #10 “OLD BUSINESS”

10-A “Discussion: Firing Range” Al Zellmer addressed the Council concerning the improvements at the firing range. Mr. Zellmer explained the electrical system does not work and needs to be replaced. The saddle club has purchased tables and chairs for the building. Mr. Zellmer estimated it would cost $863.81 to update the electrical service. Volunteers are willing to install the new electrical service. He also suggested insulating the ceiling at the cost of $575.

The original budget submitted for improvements to the building has been exceeded by approximately $2,000. Mr. Zellmer pointed out electrical service was not included in the original budget.

Councilman Foster fully supported the project, but the City has to work within budget constraints.

Councilman Weber asked if firing range improvements are in the current budget. Mr. Bukas answered no, but $2,800 was budgeted last year.

The last time Mr. Zellmer appeared before the Council he submitted a list of additional improvements which totaled $3,421 but did not include electrical improvements.

The saddle club has spent approximately $9,000 of their own money and volunteered approximately 1,500 hours of labor.

Councilman Ferguson would like to see the project completed and budget the additional improvements appropriately. He questioned when Mr. Zellmer anticipated using the facility. Mr. Zellmer pointed out the facility is useless without a bathroom. There is a well, but it needs hooked up. There is also a septic tank.
Councilman Foster did not know how this project could be financed before the new budget year.

No one knows very much about the water well, but someone thought it was working about eight years ago.

Councilman Brown asked if Mr. Bukas has looked at the project and what needs to be done. Mr. Bukas has not looked at the project since the last time Mr. Zellmer addressed the Council.

Councilman Weber disputed the size of the electrical service proposed by Mr. Zellmer. Mr. Zellmer suggested 200 amp service, but Councilman Weber thought 100 amps would be sufficient, and if additional service is needed, it can be expanded with an additional meter and pole.

Councilman Ferguson asked that a detailed plan with costs be prepared, then the Council will need to determine if the money can be spent this year or in next year’s budget. Councilman Ferguson expressed concerned because the Council thought the first budget presented was everything needed to finish the project and now there are several more additional improvements needed. Councilman Ferguson wanted to see the project finished and become a nice facility. He questioned if Mike Mitchell should be consulted.

Councilman Brown suggested Mr. Zellmer meet with the City Manager and come up with a budget for the project. The budget can then be brought to the Council to determine if the expense should be included in the current budget year or the next.

The Council stressed they wanted a detailed plan with all aspects to be considered.

10-B “Discussion: Emergency Management Ordinances” Mayor Lambird invited Steve Simms with the Illinois Emergency Management Agency to discuss the two proposed ordinances.

Steve Simms presented handouts to the Council and gave a lengthy overview of the Illinois Emergency Management Act and the National Incident Management System.

Several people from the audience asked Mr. Simms questions based on different scenarios.

Clyde Holt was concerned with evacuation and being kept out of home during a disaster. Mr. Holt felt if the proposed ordinance was passed it would be the disaster.

Based on past incidents in other communities, Angela Howser asked who is financially responsible if a building is evacuated and declared unsafe permanently. Mr. Simms explained that decision would be made by the local government.

Jack Howser asked about a forced evaluation. Mr. Simms explained there is no such thing as a forced evacuation.

Mr. Howser asked who is responsible for command and control. Mr. Simms explained the Mayor typically makes the decisions for a community. The Mayor and Council will not be making operational and tactical decisions. The incident commander has all the responsibility to bring an incident to a close. The incident commander is usually the first on the scene until the responsibility is given to someone else which is usually the person with the most authority and experience.

Mr. Howser asked who decides who is the incident commander. He questioned why add more bureaucracy with another resolution.

Councilman Foster commented that the Fire Chief is typically the incident commander. He then explained the necessity of the National Incident Management System. NIMS is a method of control for a large incident. NIMS is required when applying for certain grants. He did not see a negative side to the NIMS.

John Monroe asked about the Governor’s powers during a declared event. Mr. Simms explained the Mayor would only have the powers granted to him by the Council which are stated in an ordinance. The Governor does not have any powers unless a state disaster is declared.

George Schaloski commented that the proposed ordinance is consistent with where the community needs to be going. There needs to be a plan of discourse.

Councilman Foster moved to take a five minute recess, seconded by Councilman Weber. A unanimous voice vote was received. The Council recessed from 8:59 p.m. until 9:04 p.m.

Mr. Simms explained NIMS provides a consistent framework and approach to enable all levels of government and non governmental organizations to work together to prepare for, prevent, respond to, recover from and mitigate the effects of any incident.

Councilman Brown asked for an explanation of the new NIMS ordinance. Mr. Taylor explained the main reason to adopt a new ordinance was to incorporate it into the code. Originally, a short resolution stated only public officials would be trained and did not cover all employees.

The audience did not have copies of the proposed ordinances. Councilman Ferguson suggested tabling further discussion until the public has been provided with copies.

Councilman Foster reviewed the changes. In the original draft there was some concern with the Mayor having emergency powers. The revised ordinance states the Mayor is empowered with emergency powers after consultation with the City Manager, Fire Chief, Police Chief, and Public Works Coordinator. Councilman Ferguson pointed out the Mayor only has to consult, but does not have to agree with the other officials. The public is concerned that the Mayor could go against the City Manager, Fire Chief, Police Chief and the Public Works Coordinator.

Councilman Ferguson questioned if an emergency disaster team could be formed consisting of the City Manager, Fire Chief, Police Chief, Mayor and Public Works Director. This team could meet and on a majority vote direct the Mayor to declare an emergency. Mr. Taylor commented there are communities that have emergency management agencies established by code.

Under the Illinois Emergency Management Act, the Mayor is the only one authorized to make a local disaster declaration. Mr. Taylor commented that the Council can always meet to address issues regarding an emergency. The emergency powers granted to the Mayor only last until the Council meets. The Council discussed the possible abuse of power by the Mayor.

Councilman Brown questioned the Mayor’s emergency powers to order an evacuation. He understood evacuations are voluntary. The Council suggested the ordinance language be changed to recommend an evacuation.

Tony King commented the public does not object to training, but is more concerned with giving such authority to one individual. He also questioned unfunded mandates this ordinance might cause.

In consideration of 2.92.090C, Jeff Fleming did not understand why the City would want to be bound to adhere to federal standards and guidelines hereafter promulgated by the Department of Homeland Security. The Council suggested that paragraph C be eliminated.

The Council asked Mr. Taylor to find out if Paragraph C is necessary.

Councilman Brown questioned the need for emergency powers of the Mayor. Mr. Taylor explained the state statutes provide for these powers, but does not require them. The state statute allows the corporate authority to adopt certain emergency powers by ordinance. Mr. Simms explained whether the City prepares a disaster declaration or not, it will not keep the City from receiving state assistance.

The Mayor can declare an emergency without the proposed ordinance.

Councilman Brown did not see the need for the ordinance. He feels everything is in place that is needed.

Mayor Lambird was much more concerned with the powers of the government that are not specifically spelled out than those that are spelled out. He pointed out the proposed ordinance stipulates that there will be an emergency council meeting. It lays the ground work for getting everyone together.

Jack Howser questioned the city does not know how to respond to a disaster without having a piece of paper signed. Mayor Lambird responded by stating it is a beginning of a plan.
Mayor Lambird wants things to be done correctly, and the City back to normal as soon as possible after a disaster.

Councilman Foster was in favor of considering the adoption of NIMS and the emergency management ordinance after Mr. Taylor investigates 2.92.090C.

10-C “Discussion: Proposals to Build at 402 W. Elm” At the last meeting the Council discussed using vacant lots to stimulate investment. The Council was provided with a draft proposal to accept bids for the construction of a single family residence at 402 W. Elm. The proposal requires a 1,500 square foot single family house plus a one car garage. Water and sewer hookup fees will be waived along with the building permit fee. The City’s general corporate portion of the real estate tax will be refunded for three years. The contractor will be allowed one year to complete construction. The proposal is required to be published once a week for three weeks. Bids will be opened at the Council meeting on January 25, 2010.

Councilman Ferguson was in favor of increasing the tax refund to five years.

Councilman Brown questioned if a duplex could be considered. Mr. Bukas explained the lot size is prohibitive unless a variance is requested. Mr. Bukas would like to see more owner occupied residences.

Councilman Brown moved to pass Ordinance 2009-27 with a five-year tax refund, seconded by Councilman Ferguson. Councilmen Weber, Ferguson, Mayor Lambird, Councilmen Foster and Brown voted yes. There were no opposing votes. The motion carried.

AGENDA #11 “NEW BUSINESS”

11-A “Ordinance: Tax Levy” At the last meeting Mr. Yockey suggested a 10.4705% revenue increase in the tax levy which would be an 8.3881% tax increase. Mr. Yockey explained part of the reason this appears to be higher is because last year the Council did not raise the rate. He estimated 5% of this increase is due to last year’s lower rate. There was also a 1-2% increase in this year’s estimated assessed valuation.

Councilman Brown pointed out if the tax rate is not changed, using new estimated assessed valuation, revenue will increase $20,000. Mr. Yockey agreed, but pointed out expenses will increase $114,000 due to fixed rate items such as IMRF, FICA, workmen’s compensation and unemployment insurance.

Councilman Brown commented the City does have control of items like FICA and IMRF by not hiring as many employees. The new budget will be adjusted based on the tax levy passed. Councilman Brown remarked that General Corporate can be used to fund the fixed rate items.

Mayor Lambird asked what impact there will be on the budget if only a 4% increase is implemented. Mr. Yockey stated the impact would cause the budget to be $119,000 short, and no increase would cause the budget to be short $172,000.

Councilman Brown did not think the Council could raise the tax rate by what is being requested.

Councilman Ferguson moved to increase the tax levy 4.99%, seconded by Councilman Foster. Councilman Ferguson, Mayor Lambird and Councilman Foster voted yes. Councilmen Brown and Weber voted no. The motion carried. Ordinance 2009-28 will be prepared.

11-B “Resolution: Appropriating MFT Funds for Bond Obligation” Mr. Yockey explained MFT funds are allocated to pay the principal and interest payments for a bank loan. This loan paid off bonds issued in 2006 for an overlay project. A total of $106,080.66 needs to be appropriated.

Councilman Ferguson moved to approve the proposed MFT resolution, seconded by Councilman Brown. Mayor Lambird, Councilmen Foster, Brown, Weber and Ferguson voted yes. There were no opposing votes. The motion carried.

11-C “Ordinance: North Route 130 Pump Station-IEPA Loan” The Council was provided with a proposed ordinance authorizing the execution of a loan agreement between the City and the Illinois Environmental Protection Agency. Mr. Taylor explained this particular bond ordinance has been prepared by a bond counsel in Champaign to meet IEPA requirements.

Councilman Foster moved to pass Ordinance 2009-29, seconded by Councilman Weber. Councilmen Foster, Brown, Weber, Ferguson and Mayor Lambird voted yes. There were no opposing votes. The motion carried.

11-D “Resolution: Award Purchase of Salt Spreader” A salt truck was recently ordered, but a new salt spreader is needed. Mr. Yockey has investigated and there is no state bid available for the size of unit needed. Prices have been acquired from various vendors. A polymer hopper is preferred with a gas motor. A Swenson PolyHawk with a Honda gas engine was recommended at the cost of $6,963.00. This purchase coupled with the truck recently purchased will cause the budget to be over spent by approximately $3,600.

The Council suggested trying to buy a polymer hopper with a gas engine locally.

The truck which was recently ordered should be delivered soon.

Councilman Foster moved to authorize the City Manager to purchase a polymer hopper with a gas Honda engine not to exceed $6,963, seconded by Councilman Weber. Councilmen Brown, Weber, Ferguson, Mayor Lambird and Councilman Foster voted yes. There were no opposing votes. The motion carried. Resolution 2009-R-89 will be prepared.

11-E “Discussion: Removal of Duck Blind” Mr. Bukas reported there has been a duck blind boat abandoned east of the boat docks on East Fork Lake for some time. The blind was posted this last summer and attempts to determine the owner were made. The boat is not registered with the Illinois Department of Natural Resources. Mr. Bukas requested permission to get rid of the duck blind boat.

Councilman Weber moved to authorize the City Manager to get rid of the duck blind boat, seconded by Councilman Foster. A unanimous voice vote was received.

AGENDA #12 “PUBLIC COMMENTS/PRESENTATIONS” On behalf of the citizens, Brian O’Neill thanked the City for meeting with residents concerning flooding issues.

AGENDA #13 “REPORT FROM THE MAYOR”

13-A “Appointment to Police Pension Board” Mayor Lambird recommended reappointing Rick Runyon to the Police Pension Board.

Councilman Weber moved to accept Mayor Lambird’s recommendation, seconded by Councilman Foster. A unanimous voice vote was received.

Mayor Lambird thanked the Richland County Ministerial Alliance for donating a nativity scene to the Christmas Light Display.

AGENDA #14 “REPORTS FROM CITY COUNCIL MEMBERS” Councilman Foster reported the street needs to be repaired again north of the intersection of Hall and Holly.

Councilman Weber asked staff to look at a cost to residents on E. Butler Street to replace their sewer laterals before the street is reconstructed.

Mr. Bukas explained this project is on a tight time schedule to get the water line in before the contractor starts the project.

AGENDA #15 “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 Weber. 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 11:02 p.m.

AGENDA #16 “RECONVENE OPEN SESSION” Upon the return of those who were in executive session to the Council Chambers, Councilman Foster moved to enter back into open session, seconded by Councilman Brown. A unanimous voice vote was received. Open session resumed at 11:26 p.m.

AGENDA #17 “ACTION ON CLOSED SESSION” No action was taken as a result of the executive session.

AGENDA #18 “ADJOURN” Councilman Foster moved to adjourn, seconded by Councilman Weber. A unanimous voice vote was received.

The meeting of the City Council adjourned at 11:27 p.m.


Belinda C. Henton
City Clerk