CITY OF OLNEY
CITY COUNCIL MEETING
APRIL 27, 2009


AGENDA #1 “CALL TO ORDER” The April 27, 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 Tom Fehrenbacher presiding.

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

AGENDA #3 “ROLL CALL” The following Council members were present: Brad Brown, Pete Weber, Bill Weems, Bob Ferguson and Tom Fehrenbacher. 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 “APPROVE MINUTES OF COUNCIL MEETING ON APRIL 13, 2009” Councilman Weber moved to approve the minutes of the April 13, 2009 Council meeting, seconded by Councilman Brown. Councilmen Brown, Weber, Weems and Mayor Fehrenbacher voted yes. Councilman Ferguson abstained. There were no opposing votes. The motion carried.

AGENDA #5 “PRESENTATION OF ORDINANCES, RESOLUTIONS, ETC.”

5-A “Ordinance: Increase Fees for Selling Boat Licenses” Lakeside RV has requested an increase in the fee that they collect for selling city boat stickers. Currently, they receive $3.00 for an annual license and $2.00 for daily licenses. They requested the fees be raised to $5.00 for an annual and $3.00 for daily licenses. This fee is collected by Lakeside RV and is in addition to the boat license fee.

Councilman Weems moved to pass Ordinance 2009-8, seconded by Councilman Brown. Councilmen Weber, Weems, Ferguson, Mayor Fehrenbacher and Councilman Brown voted yes. There were no opposing votes. The motion carried.

5-B “Ordinance: Sale of Personal Property” The City has three transformers that were used in the Pacific Cycle cleanup project. These transformers are no longer needed and it was recommended they be sold as surplus property through GovDeals.com.

Councilman Weber moved to pass Ordinance 2009-9, seconded by Councilman Brown. Councilmen Weems, Ferguson, Mayor Fehrenbacher, Councilmen Brown and Weber voted yes. There were no opposing votes. The motion carried.

5-C “Resolution: Accept Concrete Bids” Two bids were opened on April 22 for seven different concrete mix designs for a six-month period beginning May 1 through October 31, 2009. Doll’s Inc. was the low bidder for mix designs 1-5 and Schrey Systems was the low bidder on mix design 6 and 7.

Councilman Ferguson moved to approve Resolution 2009-R-24, seconded by Councilman Weber. Councilman Ferguson, Mayor Fehrenbacher, Councilmen Brown, Weber and Weems voted yes. There were no opposing votes. The motion carried.

5-D “Resolution: Accept Crushed Stone, Sand and Riprap Bids” Four bids were opened on April 22 for sand, CA-6, crushed stone ½", crushed stone 1", crushed stone 2" and RR-3 riprap for a six-month period beginning May 1 through October 31, 2009.

Councilman Brown moved to approve Resolution 2009-R-25, seconded by Councilman Weems. Mayor Fehrenbacher, Councilmen Brown, Weber, Weems and Ferguson voted yes. There were no opposing votes. The motion carried.

5-E “Resolution: Approve Health Insurance” The Council was provided with a resolution allocating the health insurance premium between the employees and City. The new rates include approximately a 20% increase. The existing Blue Cross Blue Shield plan will be renewed, but the City will be going out for bids later this summer.

Councilman Weber moved to approve Resolution 2009-R-26, seconded by Councilman Brown. Councilmen Brown, Weber, Weems, Ferguson and Mayor Fehrenbacher voted yes. There were no opposing votes. The motion carried.

5-F “Discussion/Resolution 2009/2010 Fiscal Budget” At the last meeting the Council requested a few changes in the proposed budget. The Council was provided with a revised budget with the requested changes incorporated.

Mayor Fehrenbacher questioned if the proposed budget includes increased water rates. Rates were increased in the budget, but Mr. Yockey explained new rates were not approved. A recommendation on rates will be given when IEPA makes their determination.

Councilman Brown moved to approve Resolution 2009-R-27, seconded by Councilman Weber. Councilmen Weber, Weems, Ferguson, Mayor Fehrenbacher and Councilman Brown voted yes. There were no opposing votes. The motion carried.

5-G “Discussion: Borah/East Fork/Vernor Lake Waterline” Councilman Weems wanted to impress upon the Council if they want to improve the lake areas, they will need city water in these areas. EJ Water District has agreed to stop their extension of water on the north side of Borah Lake to allow the City to sell water in this area.

The proposed waterline project is estimated at $2,500,000, but there are hopes for grants. City water would open up potential growth on the north side of East Fork Lake. It was estimated there are 223-300 potential water customers which would generate approximately $82,000 of annual water income. Based on these facts, the project would pay for itself in 20 years.

Most of the engineering work has been completed, and the project is waiting on permitting. Once permitted, funding will then need to be found.

Councilman Weems felt this is a very important project. He stated if the City does not expand water into this area, EJ Water District will seal Olney in making it impossible to expand the water system.

EJ Water District is interested in interconnecting the City’s system with theirs. This arrangement would provide security for a water supply for both parties at a minimal cost.

Councilman Weems offered to help this project to go forward because of its potential for growth on East Fork Lake. He encouraged the new Council members to look at the engineering drawings.

5-H “Resolution: Approving CSX Side Track Agreement and Deposit” The City received the side track agreement from CSX. Both the City and EDA have been waiting for this agreement. A copy of the proposed agreement has been forwarded to EDA. A decision is needed to be able to move forward on the East Industrial Park project.

The agreement requires a deposit of $503,581 for the construction of the side track. Mr. Bukas suggested that the City approve the agreement, but withhold payment until the City knows if additional funds will be received from EDA and the cost of the project once bids are opened. A notice to proceed and contract for the project are required by June 21, 2009. CSX will not start construction until the deposit is received.

Councilman Weems stated he feels comfortable that what the Council is doing is right.

Councilman Weems moved to approve Resolution 2009-R-28. Mayor Fehrenbacher stated he has always advocated this project and believes in investing in the community and believes he has demonstrated this in the past. Mayor Fehrenbacher seconded Councilman Weems’ motion.

Councilman Ferguson assumed CSX would take the construction deposit and invest it. He questions who gets the interest off of this deposit. Mr. Bukas explained once they receive the money they are supposed to start the project. Councilman Ferguson felt the City needs to clarify if any interest is earned, the money should be added to the deposit.

Mayor Fehrenbacher questioned if no additional funding is received from EDA, will the project be stopped. He was concerned with satisfying all the requirements for EDA. Mayor Fehrenbacher did not agree with not paying CSX now because the City has gone this far with the project. He pointed out there is enough money in the reserves to pay for the deposit.

City officials will be traveling to Chicago to meet with EDA next week to discuss additional funding for the project.

Councilman Brown asked if the City was aware this is the way the process would work with CSX. Mr. Taylor responded that it became apparent early that the City would be responsible for the entire cost of turnouts, but the City did not know the cost. He suspected the City would have to provide a deposit. A year ago he received a draft which included wording about a deposit, but the amount was not known, and he did know when it would have to be paid.

Councilman Brown questioned what happens if the agreement is signed and the City does not go through with project. Mr. Taylor suggested that possibility be addressed with CSX. The agreement does not address the issue of a deposit refund.

Mr. Bukas explained the resolution authorizes the City Manager to submit the signed agreement and the payment of the deposit would be contingent upon the EDA authorizing the City to go out for bids. If the deposit is paid, and the bids are higher than expected, CSX will still install the side track. If necessary the project may have to be built on a piece meal basis as money is available.

Mr. Taylor explained what the deposit will cover. CSX will construct and continue to own and maintain the first 336 feet and last 336 feet near the turn out and begin the set aside track. The rest of the track would be constructed through a contract award. The total rail construction is estimated to cost $900,000 with the City’s portion approximately $466,000.

June 21 is the deadline for the issuance of a notice to proceed. EDA wants a side track agreement in hand to review.

Councilman Ferguson wanted the deposit to be refundable if the project does not proceed. He also wanted the funds to be put into an interest-bearing account, with all interest staying with that account and is either returned or used for the construction. He felt the City needs to proceed in order to meet the June 21 deadline.

Councilman Ferguson felt the City needs to have an understanding with CSX on what is going to happen with the money.

Councilman Ferguson asked if there is anything in the agreement that states how long CSX has before construction starts. Mr. Taylor answered no, there is nothing in the agreement. If CSX is not willing to pay the City interest, Councilman Ferguson felt it should be in the agreement that construction should start within 90 days after receiving deposit.

Councilman Ferguson verified that City officials will check with CSX concerning the matter of interest. Mr. Bukas agreed someone will talk to CSX about these matters.

Councilman Weems, Ferguson and Mayor Fehrenbacher voted yes. Councilmen Brown and Weber voted no. The motion carried.

5-I “Resolution: Urging Support for Comprehensive State Capital Infrastructure Program” Mr. Bukas explained there is currently a capital bill pending in the State Legislature that includes funds for some of the city’s projects such as the park lift station and force main and $10,000,000 for the engineer study for the U.S. Route 50 4-lane project and $3,000,000 for the widening of Route 130 at the railroad overpass. The Illinois Municipal League has asked that all communities pass a resolution to endorse the capital plan and urge the State Legislature to adopt the plan.

Councilman Brown moved to approved Resolution 2009-R-29, seconded by Councilman Ferguson. Councilman Ferguson, Mayor Fehrenbacher, Councilmen Brown, Weber and Weems voted yes. There were no opposing votes. The motion carried.

5-J “Request: Raffle License Application” City Clerk Henton received a raffle license application from the Backyard Bloomers Garden Club which is a Walk & Roll fund raiser.

Councilman Ferguson moved to approve the raffle license application, seconded by Councilman Brown. Mayor Fehrenbacher, Councilmen Brown, Weber, Weems and Ferguson voted yes. There were no opposing votes. The motion carried.

5-K “Resolution: Approve Bids for East Street Resurfacing” Mr. Charleston explained bids were received last Friday by the Illinois Department of Transportation for the East Street resurfacing project. Two bids were received, one from Howell Paving in Mattoon, Illinois and the other from Ambraw Asphalt in Lawrenceville, Illinois. The estimate for this project was $413,000. Mr. Charleston recommended accepting the low bid from Howell Paving in the amount of $384,386.86.

Councilman Weems moved to approve Resolution 2009-R-30, seconded by Councilman Brown. Councilmen Brown, Weber, Weems, Ferguson and Mayor Fehrenbacher voted yes. There were no opposing votes. The motion carried.

AGENDA #6 “APPROVE AND AUTHORIZE PAYMENT OF ACCOUNTS PAYABLE APRIL 28, 2009” Councilman Brown moved to approve and authorize payment of accounts payable for April 28, 2009 for Pooled Cash $150,830.45, seconded by Councilman Weems. Councilmen Weems, Ferguson, Mayor Fehrenbacher and Councilman Brown voted yes. Councilman Weber abstained. There were no opposing votes. The motion carried.

AGENDA #7 “EXECUTIVE SESSION: REVIEW EXECUTIVE SESSION MINUTES” Councilman Brown moved to adjourn to executive session to review executive session minutes, seconded by Councilman Weems. Councilmen Weems, Ferguson, Mayor Fehrenbacher, Councilmen Brown and Weber voted yes. There were no opposing votes. The motion carried.

Councilmen Brown, Weber, Weems, Ferguson, Mayor Fehrenbacher, City Manager Bukas, City Attorney Taylor and City Clerk Henton left the Council Chambers at 8:25 p.m. and returned into open session at 8:45 p.m.

AGENDA #8 “POSSIBLE ACTION ON ITEMS DISCUSSED DURING EXECUTIVE SESSION”
8-A “Resolution: Authorize Release of Closed Session Minutes” Councilman Weber moved to approve Resolution 2009-R-31, seconded by Councilman Brown. Councilman Ferguson, Mayor Fehrenbacher, Councilmen Brown, Weber and Weems voted yes. There were no opposing votes. The motion carried.

8-B “Resolution: Authorize Destruction of Audio Recordings” Councilman Ferguson moved to approved Resolution 2009-R-32, seconded by Councilman Brown. Mayor Fehrenbacher, Councilmen Brown, Weber, Weems and Ferguson voted yes. There were no opposing votes. The motion carried.

AGENDA #9 “REPORT: ELECTED AND APPOINTED OFFICIALS” Councilman Brown asked for a clarification on the bid for concrete. Concrete for MFT projects will be bid separately. No MFT projects were included in the concrete bids approved earlier in the meeting. Mr. Charleston agreed.

Councilman Weems said thank you to the other Councilmen. He has had a really good four years. He is glad to see Randy Bukas as City Manager and Brandi Stennett as Executive Director of RCDC. He was glad he had some small part in hiring both of these individuals. He wished these two people good luck in the future.

City Clerk Henton announced the City has listed several surplus items on GovDeals.com. The auctions are going well and she encouraged the Council to look at the site. She felt Mr. Bukas made a good recommendation to use this service.

Mayor Fehrenbacher remarked that during the last eight years the Council has included a prayer at the beginning of the meeting. He strongly urged that the prayer be kept on the agenda. He wished everyone good luck and good bye.

AGENDA #10 “CITY MANAGER”

10-A “Status Report” Mr. Bukas reported that the EDA Revolving Loan Fund Committee approved a $30,000 loan to David Eckiss to buy the Richland Veterinary Clinic property at 508 W. Lafayette Street. The loan is contingent upon the bank’s approval of the appraisal. Dr. Eckiss is a veterinarian working in Effingham now, but is originally from this area and will relocate to Olney.

Mr. Bukas reviewed revenues received from corporate replacement tax, Motor Fuel Tax, sales tax and telecommunications tax.

Mr. Bukas has conducted interviews for a pool manager and has extended an offer to one individual.

The scoreboards at the baseball diamonds have been installed. The Street Department is building a catch basin and repairing a driveway for the Jefferson Street storm water project. This project continues to move forward.

AGENDA #11 “ADJOURN” Councilman Weems moved to adjourn, seconded by Mayor Fehrenbacher. Councilmen Brown, Weber, Weems, Ferguson and Mayor Fehrenbacher voted yes. There were no opposing votes. The motion carried.

The meeting of the City Council adjourned at 8:54 p.m.


Belinda C. Henton
City Clerk