Talking trash

The city’s solid waste removal contract with waste removal solutions for households expires at the end of this year. This contract has been in place since about 1992. Now, if you’re just an average person, you might think that the city had plenty of time to start the process of rebidding this contract. After all, they knew when it was due to expire, and they know how long it takes to negotiate contracts such as these, so logically they should have been able to work backwards from the deadline to determine a time line for the rebidding process.

But they didn’t do that. No, here it is June 2009, six months before the end of the contract, and they’re just starting the year-long process. Naturally, they are requesting an extension to the existing contract that has been in place for 17 years already to allow them extra time to negotiate a new contract. That request was on last week’s (June 23) agenda, but was deferred for a month.

Meanwhile, they managed to engage a consultant to get some advice on rebidding the contract. I don’t know exactly how city departments are allowed to spend their budget, but it seems to me that every other consultant that has been hired by the city had to be approved by the council; this consultant contract never came before the council. However, it must be no big deal because the council didn’t seem to care.

The consultant made a bunch of recommendations on how the city can lower the cost of waste removal. Of course, all those suggestions mean worse service for residents. For instance, they’re recommending that everyone be provided a 90-gallon tote, and that all other garbage containers be outlawed. You wouldn’t be able to buy your own tote, of course — you’d have to essentially rent it from the disposal company. And they want to do away with alley collection of garbage, even though that’s one of the reasons alleys exist, and many older neighborhoods were designed for garbage collection from the alleys, not from the curb.

To their credit, the city council has so far been pretty adamant about keeping the alley collection of garbage, but city staff is trying to convince them to change their minds. They want to big the contract with all-curbside pickup as an option so the council can see how must more expensive it is to include alley collection. There’s only one reason for splitting out these costs: to try to persuade change. One wonders why it’s more expensive to run a truck down an alley rather than a parallel street 130 feet away. Waste Management says their trucks are too big for our alleys (solution: use smaller trucks). City staff says the heavy trucks damage the alley surfaces (question: wouldn’t moving the trucks to the streets just move the damage to the streets as well? Or is this an admission that alleys are poorly maintained in the city?).

The consultant is also suggesting that the city limit or do away with picking up anything that doesn’t fit inside one of the recommended 90-gallon totes. So, whereas now you can throw away that old couch or cabinet (what they call “bulky waste”) — the consultant says that should stop, be reduced to just once or twice a year, or charged an extra fee, such as $10 or $15 per item.

The biggest issue, however, is going to be how to include universal recycling. There is a lot of popular support for alleyside/curbside recycling as part of the base contract. Currently, anyone who wants to recycle has to pay extra and are billed directly by the hauler. That means that a household like mine that recycles pays three times for garbage service: once on our property taxes, once on our water bill, and once directly to Waste Management. Most households are not willing to pay three times for garbage hauling, so they just throw all their recyclables away in the regular trash. In other words, our current system incentivizes people not to recycle. That needs to be changed.

However, that will cost more money. So the question becomes how to pay for such service. One idea is to do the opposite of what we’re doing now: make recycling pickup free, but charge a fee for regular garbage. The way they do this in Morton is by selling trash stickers. However, in a more urban area, there is concern that this might lead to more illegal dumping or other unsanitary conditions as some people attempt to avoid the fee. So another idea is to make all collections every-other week. Regular garbage would be picked up on odd weeks, and recycling would be picked up on even weeks, for instance.

One other change that has been recommended in order to save money is switching to a sticker system for yard waste. Right now, unlimited yard waste disposal is included in the base contract. The cost of that service could be offset or possibly covered completely by charging residents a fee per bag of yard waste. On the other hand, this would be yet another reduction in services city residents already enjoy and for which they already pay twice.

Who would have thought garbage could be so complicated?

Cato Institute analyzes Obama’s health care town hall meeting

The Cato Institute, a non-profit public policy research foundation headquartered in Washington, D.C., takes a look at the President’s health care town hall meeting that was broadcast on ABC recently:

With the nationalization of some of our largest companies, the recently-passed Waxman-Markey bill, and Obama’s health care proposal, it sounds like we’re well on our way to socialism in America, and I’m not throwing that term out lightly. How else can it be described?

Other events in the world

Here are some other things that have happened in the world despite the recent deaths of Ed McMahon, Farrah Fawcett, and Michael Jackson:

  • The House of Representatives narrowly passed (219-212) the Waxman-Markey bill, also known as the “Climate Change bill” or “Global Warming bill,” which will establish a cap-and-trade system to limit greenhouse-gas emissions. This will raise the cost of carbon-based fuels, which means annual energy costs for Americans will rise. Everyone agrees that costs will rise; they just disagree over how much. Estimates range from $98 extra per year to over $4,300 extra per year for an average household. Nevertheless, President Obama claims it will be good for the country’s economy — even going so far as to claim that it will change the business cycle:

    I have often talked about the need to build a new foundation for economic growth so that we do not return to the endless cycle of bubble and bust that led us to this recession. Clean energy and the jobs it creates will be absolutely critical to this new foundation.

  • There has been a coup in Honduras. President Manuel Zelaya was forced out of the country by the military:

    Mr Zelaya campaigned for office on a law and order ticket but, Reuters news agency reports, it remains a major drug-trafficking transit point, overrun by street gangs and violent crime. Limited to a single four-year term in office under the current constitution, he was accused of seeking to change the law to allow him to stand for a second term.

  • Eight British Embassy employees were arrested in Iran “for their alleged involvement in post-election protests.” The British foreign secretary denies any involvement: “The idea that the British embassy is somehow behind the demonstrations and protests that have been taking place in Tehran in recent weeks is wholly without foundation.” Click here for a video report from the BBC.

Kudos to Billy Dennis for continuing to cover the Iranian crisis.

How would you plug the city’s deficit?

The Journal Star is reporting that taxes and/or fees will have to be raised to plug the deficit, according to Mayor Ardis:

Ardis didn’t say which revenue will be increased, other than to say it could be a combination of things, such as a possible sales tax increase or a water utility fee…. The mayor did say it was unlikely the city’s portion of the property tax will be increased, citing other government bodies such as District 150 that have already increased their tax rate. “It would be the absolute last thing we’ll look at,” Ardis said. “(The property tax) is tapped.”

Wait a minute. The reason we can’t raise the property tax is because other taxing bodies have “already increased their tax rate”? That makes absolutely no sense, but let’s just accept it for the sake of argument. Why then should we consider raising the sales tax, considering the county just raised their tax rate? Why doesn’t the same “logic” apply?

And if the city’s revenue-producing abilities are limited because other taxing bodies are raising their rates, then the first thing we need to do is stop giving any of our revenue to those other taxing bodies. For instance, the city should immediately stop giving any tax money to the park district or the school district. Does that mean that there will be no programming on the riverfront? Tough! Does that mean that district 150 won’t get city-provided crossing guards? Sorry! The city needs to use all its available revenue to provide its own core services, not services for other taxing bodies.

Frankly, the mayor’s comments should come as no surprise. A couple council meetings ago, council members were given a packet of information available for download from the city’s website about the budget. Included was this document outlining possible cuts and revenue increases. In fact, since we have that info, here’s what I’d like to do:

I’d like you to pretend you’re a city council member. (You should be feeling a power trip right about now; if you don’t, you’re not pretending right.) Okay, council person? Now, you have to plug a $10 million structural budget deficit by either cutting costs, increasing revenues, or a combination of both.

How would you do it?

You can use the options provided in the aforementioned report, or add your own. It has to be realistic (so, for example, “print money out of thin air like the Federal Reserve” is not acceptable). Also, it has to be a long-term solution because this is a structural deficit. Short-term stop-gap measures don’t count.

Just to make things easier, here’s a summary of options outlined in the report:

INCOME OPTIONS

  • Property Tax — Each $.01 added to the levy raises $200,000. The owner of a $200,000 house would pay $6.60 more in property taxes annually per penny.
  • Water Utility Tax or Franchise Fee — A 5% utility tax or franchise fee placed on the use of water would yield approximately $1,200,000 each year.
  • Sales Tax — An additional .25% increase in the home rule sales tax would bring in an estimated $3,850,000 each year.
  • Package Liquor Tax — 2% tax on package liquor would raise about $700,000 annually.
  • Parking Tickets — If the $10 fine was raised to $15, an additional $90,000 in revenue annually.
  • Garbage Fee — Peoria residential properties pay $6 each month in garbage fees. For every dollar the monthly rate is raised, the City would gain an additional $336,000 annually.
  • Motor Fuel Tax — The City currently collects $.02 per gallon of fuel sold. For every penny added, approximately an additional $400,000 in revenue.
  • Stormwater Utility Fee — Rough estimates indicate charging $2.00 per month per “residential unit” would generate about $1.2 million.

COST-CUTTING OPTIONS

  • Wage Adjustment — Cutting the salary increases of staff from 4.75% (union) and 3.5% (management) to 2.5% across the board would save $1,839,113.64. Cutting them to 1% would save $3,088,880.53.
  • Voluntary Separation Initiative — No amount given, but the idea would be to offer early retirement to long-time employees who make high salaries, thus reducing the total payroll.
  • Service Cuts/Layoffs — Again, no amount given, since it would depend on which services the city decided to cut. What services do you think should be eliminated? We may be able to find out how much such a cut would save.
  • Medical Premium Increase — If the rate at which employees participated in the base premium cost were raised by 5% for all types of coverage, the City would save an estimated $811,000 in FY2010, based on 2009 premium costs. A family membership in the PPO would cost the employee $408.92 each month vs. the current rate of $272.61.
  • Reduce Capital Budget — For FY2009, Council approved a Community Investment Plan that funded $21,434,873 worth of projects. Of that amount, only $8,908,895 was in discretionary spending (funding sources not strictly limited to capital projects). This amount represented only 55% of the project funding ($17M) identified by staff and Council.
  • Use of HRA Taxes — The primary and obligated use of the proceeds of the Hotel-Restaurant-Amusement Tax is to pay down the Civic Center bonds. Annually, any revenue remaining after bond payments is apportioned by agreement to the Civic Center Authority, Peoria Area Convention and Visitor’s Bureau, ArtsPartners and other community organizations. Many communities use their HRA taxes to support operating or capital projects.

Okay, you have the raw data. Now find $10 million. On your marks. Get set. Go!

Why does HDTV go away when the weather is bad?

Nope, it’s not because you lose the signal. It’s because the local television stations have failed to upgrade a critical piece of equipment in their signal path: the inserter. An inserter is the thing that allows TV stations to put their logo (“bug”) and little severe-weather map in the corner of your screen, and put a text crawl at the bottom of the screen. If the inserter isn’t upgraded to high-definition, guess what? Whenever they use it, it downgrades the picture to standard-definition.

Right now, there’s a severe thunderstorm watch for several counties in the area. So the evening news on channel 19 (which includes several tributes to Michael Jackson) is in standard definition. Any other programs that are on during the watch will also be downgraded. And it’s not just channel 19. I haven’t checked lately, but not long ago when I was watching David Letterman, the opening would pop down to standard def while the channel 31 logo appeared on the screen, then pop back up to high def when the bug disappeared.

My guess is that the TV engineers would really like to get one of these little babies, but the bean counters at corporate aren’t willing to shell out the bucks for it (they can run upwards of $8,000 — not an unusual price for broadcast equipment). So, all the benefits of the government-mandated conversion to HDTV go in the toilet whenever the station puts its logo on screen.

Hey, local TV stations: Buy an HD inserter already. Are you trying to drive your few remaining viewers away?

Holiday Inn City Centre seeks to become Crowne Plaza, asks for $8 million from city

Crowne-Plaza-rendering

“Peoria Hotel Associates LLC is seeking partnership with the city of Peoria in a redevelopment plan for the revitalization and upgrade of the Holiday Inn City Centre.” So states a memo addressed to the Mayor and City Council members. The content of the proposal is very similar to the Marriott Hotel deal the council approved in December 2008, albeit on a smaller scale.

The redevelopment plan calls for the current Holiday Inn City Centre property to be “brought into the 21st century through a complete and comprehensive rehabilitation and renovation plan,” which would include upgrading the exterior, redeveloping the lobby and commercial space, changing 66 rooms into 35-40 suites, replacing Bennigan’s with an “upscale branded restaurant,” and changing the hotel from the Holiday Inn brand to either Crowne Plaza or Doubletree Suites.

The cost of the upgrade would be $10 million. The current owners of Peoria Hotel Associates LLC (d/b/a Holiday Inn City Centre) is Iowa-based Kinseth Hospitality Companies. According to the memo, they’ve already “maximized financing available through conventional bank lenders with a current loan in placee of $11,750,000.” So, they’re proposing this redevelopment “with the intent to participate in a city bond program similar to the redevelopment package that the current Pere Marquette Hotel is utilizing.”

We are requesting $8 million of financing similar to the Pere Marquette financing program with the goal of signing a redevelopment agreement very similar to the Pere Marquette/Marriott hotel redevelopment agreement. This will be coupled with a $10 mil New Market Tax Credit (netting $2 mil in cash). Listed below is a capital budget for our redevelopment process. We believe that the bonds will be paid through substantial sources of additional tax revenues that the city will achieve, including TIF, BDD taxes, BDD sales taxes, as well as substantial new taxes on the increases in revenues that we expect to achieve.

Cost Summary:

Exterior Upgrade $2,500,000
Lobby/Commercial Facilities $3,500,000
Restaurant & Bar re-concepting $1,000,000
Suites Conversion $1,000,000
Infrastructure/Systems $1,000,000
Meeting Rooms Upgrade $500,000
Brand Conversion $500,000
Total $10,000,000

You can read the entire memo and accompanying report here (warning: it’s a 7 MB PDF file):
PDF Link Kinseth Hospitality Memo and Report

It’s not surprising to me that they would ask for a similar deal to the Pere Marquette/Marriott. And I fully expect the council to approve it whenever it comes to the floor for a vote. Once you open that door, everyone wants to come in and get their share of the money. It’s only a matter of time before a similar request from the Mark Twain appears.

It’s also not surprising that they want to dump Bennigan’s. The restaurant chain filed for bankruptcy last July, and Kinseth Hospitality recently filed a lawsuit against the franchise’s parent company for damages allegedly resulting from that bankruptcy.

Cafe-Exterior-rendering

UPDATE: The Journal Star now has the story you read here first, and they’ve interviewed a few council members. Funny, it’s one-fifth the cost of The Wonderful Development, yet the council members interviewed aren’t too keen on this new project. They cite concerns such as the amount of debt it involves and whether there’s enough market for that many upscale hotel rooms. Huh. I thought a project like this “pays for itself.” That’s what they said about the nearly $40 million bond for the Marriott. And as I recall, there were questions about the optimistic occupancy rates predicted in the Marriott project. Yet the council had no problem approving that project with next to no deliberation. I’m sure there’s a logical explanation.

Dismantling the LDC one piece at a time

The deconstruction of the Land Development Code continued at Tuesday’s City Council meeting. Now the City is going to allow “separate, accessory parking lots in the West Main Street, Local Frontage category.” Because nothing says “pedestrian-friendly” and “urban” like large surface parking lots . . . or so City administrators in the Planning and Growth Department think. They defended the amendment by saying surface parking lots fulfill the intent of the code:

Administration of the LDC found that prohibiting separate, accessory parking lots is not consistent with the intent of the Land Development Code as stated in section 1.5:

  1. Create a “park-once” environment.
  2. Promote reuse, redevelopment and infill.
  3. Encourage mixed-use neighborhood main streets.

You read that right: the City is arguing that big surface parking lots are consistent with the Land Development Code, which is based on the Heart of Peoria Plan, which is based on New Urbanist principles. Somehow, I don’t think that tearing down single-family residential houses in order to construct large surface lots is the kind of “redevelopment and infill” the authors of the LDC had in mind. In fact, it goes directly against other intent statements in section 1.5, such as:

  • Encourage and assist in the preservation of existing buildings and housing stock.
  • Use the scale and massing of buildings to transition between the corridors and surrounding neighborhoods.
  • Use the commercial corridors as a seam sewing neighborhoods together rather than a wall keeping them apart

But the change was approved in a rare 7-3 vote, with Sandberg, Jacob, and Gulley voting against it. Not so rare was the fact that only two council members spoke to the issue — Van Auken in favor, Sandberg against — before it was approved. The LDC will not be repealed all at once. It will simply be pecked away little by little until it looks no different than the old Euclidean zoning it replaced.

Repeat after me: “Consensus is bad”

During the last election, one of the big buzz-words was “consensus.” For instance, then-councilman Bob Manning wrote an endorsement of his eventual successor in which he said, “He is known as a consensus builder. He is not a divisive or polarizing figure. Rather, he brings people together to achieve results.” Conventional wisdom at the time was that the council was working better now than it ever had, and the reason was because of this new ethos of consensus-building.

At first, I tried to differentiate between good and bad “consensus.” (Good consensus involved timely and effective public input into projects; bad consensus was just another word for “groupthink.”) But since then, I’ve determined that what I was calling “good consensus” would be better described as simply “good leadership.” And “consensus” is always bad.

Certainly the last thing the council needs is more consensus. “Consensus” is defined as “general agreement or concord; harmony.” The city council couldn’t be any more in agreement if they held hands and sang Kumbaya . . . unless they found a way to get Sandberg off the council so every vote could be unanimous. The council (then or now) doesn’t need more consensus; it needs more critical thinking. It needs more deliberation — public deliberation.

Billy Dennis is right when he says, “Technically, policy might be set in public, but the process of arriving at the decision is not.” How many times have you seen this happen? An issue comes before the council. A motion is made to approve and is seconded. Councilman Sandberg speaks against it. There is no further discussion. Ballots are cast, and the motion passes 10-1. This happens time and time again. On big votes, like the decision to give $39.5 million to the Wonderful Development (aka Marriott Hotel), a few more council members speak in support of it, but the outcome is the same: no deliberation; 10-1 vote to approve.

How can eleven people get together and not have any major disagreements on nearly every issue — even one involving almost $40 million? Is this not an amazing phenomenon? As I see it, there are only two possible reasons why this would happen consistently over a long period of time (I’ve excluded the implausible option of it all being a huge coincidence that they agree on absolutely everything):

  1. The council members are skirting the Open Meetings Act and deliberating these issues out of the public eye. (Note I said “skirting,” not “violating.”) This is Billy’s theory. He suggests that decisions are made “during phone calls and emails, and during social events.” Conflicts exist, but they are being resolved in secret.
  2. The council members are blindly following the recommendations of staff or the district council person without thinking through or deliberating the issue at all. Council members avoid conflict by not thinking.

Both of these options involve “consensus.” Neither of these options is in the best interests of the taxpayers.

Lewis Lapham once said, “In place of honest argument among consenting adults the politicians substitute a lullaby for frightened children [i.e., “consensus”]: the pretense that conflict doesn’t really exist, that we have achieved the blessed state in which we no longer need politics.” And former British Prime Minister Margaret Thatcher explained, “To me, consensus seems to be the process of abandoning all beliefs, principles, values and policies. So it is something in which no one believes and to which no one objects.” Did you ever read a quote more descriptive of the Peoria City Council’s decisions?

Council members, the Journal Star, and the proverbial “man on the street” all think consensus on the council is fantastic — soooo much better than those old, divisive councils where they argued about stuff (gasp!) in public! And yet, the decisions haven’t gotten any better. They just have fewer, shorter meetings with more unanimous or nearly-unanimous votes. And — did I mention? — more secrecy. Because if you’re going to keep up “the pretense that conflict doesn’t really exist,” you can’t have transparency in government.

Bottom line: Consensus is bad. Remember that the next council election.

Nothing to say

In case you’re wondering why there haven’t been any posts lately, it’s because I just haven’t felt like blogging. I don’t have anything I’m just dying to say. And besides, it’s so hot outside, my energy is sapped.

Hope you’re enjoying your summer. I’ll write again one of these days….