Category Archives: City Council

Fines for loud parties, underage drinking may rise

Following a couple of raging parties in the neighborhoods surrounding Bradley University, Second District Councilperson Barbara Van Auken promised to propose “a $1,000 fine for both the host(s) and the property owner if it’s owner-occupied.” That proposal will be presented to the City Council at tomorrow evening’s meeting.

The municipal code already has the following fines in place:

(a) A person who knowingly enters or remains in any house, building, yard or other premises, other than premises licensed to sell alcoholic liquor, under circumstances where the person knows or reasonably should know that alcoholic liquor is being illegally possessed or consumed by persons under the age of 21 years shall be guilty of a petty offense and, upon conviction, shall be punished by a fine of not less than $200.00 nor more than $500.00.

(b) It is unlawful for a parent, legal guardian or other person to knowingly permit a person under the age of 18 years old in his or her custody to violate the provisions of subsection (a) of this section. Any person convicted of a violation of this subsection shall be fined not less than $500.00.

The ordinance requested by Van Auken would add the following:

(c) Any owner or person in actual or constructive possession of a property, including, but not limited to, an occupant or tenant of property who suffers, allows, consents to, acquiesces by failure to prevent, or expressly assents or agrees to a violation of paragraph (a) of this section shall be guilty of a petty offense and, upon conviction, shall be punished by a fine of not less than $1,000.00.

It is hoped that this ordinance will motivate property owners and landlords to evict chronic disturbers of the peace by hitting them where it hurts — in their pocketbook. I wonder how property managers feel about this ordinance. I can tell you that homeowners and responsible renters in Bradley’s adjacent neighborhoods love it.

Van Auken proposes higher fines for ordinance violations

In response to a couple of recent, over-the-top, raging parties around the Bradley area (well-reported by PeoriaIllinoisan), Second District Councilperson Barbara Van Auken is proposing raising the fines for noise violations and criminal activity to $1,000. She wrote in an e-mail to Uplands residents:

I want to update you on activities related to the riotous weekend you and your neighbors experienced. Uplands President Goitein has talked with Bradley Security Chief Baer who, in turn, is meeting with BU officials about what happened and why. I also spoke with VP Gary Anna who was very concerned about the events and promised to personally look into them. He is also supportive of […] hefty fines to property owners and party hosts. Additionally, Chief Settingsgaard is investigating the situation and plans to talk with Chief Baer about coordinating their efforts to put a halt to these raucous parties. He, too, is strongly supportive of the hefty fine suggestion.

I talked with both Randy Oliver and Randy Ray about fines to hosts and property owners. It cannot depend on how many calls we get about a party–one call is enough. If, in fact, there’s ordinance violations, e.g., noise, and/or criminal activity, e.g., underage drinking, at a party, I’m proposing a $1,000 fine for both the host(s) and the property owner if it’s owner-occupied. If the property owner is a landlord, I’m proposing that the individual–within 30 days– pay the $1,000 fine or present documentation to the Legal Department that eviction proceedings are in process or complete. While there are responsible landlords who almost never know about party activities at their property; once they know, they need to take immediate action–not just promise it won’t happen again. I’ve heard that too many times, and the problem goes on for months.

This is welcome news. I hope Van Auken’s proposal makes it to the council soon and is passed. There needs to be greater consequences for parties that involve “150 people fighting in the street” and require the use of pepperball guns to break them up.

City ignores service record; awards contract

See No EvilDespite its breach of contract and public endangerment, Central Illinois Railroad (CIRY) was rewarded Tuesday night with a fat no-bid contract to do some rail improvements along Allen Road. I’m guessing this “see no evil” approach is the city’s way of saying “thank you” to a company that has conspired with them to stop serving Carver Lumber via the Kellar Branch.

City staff had the audacity to defend CIRY’s record of service, insisting as they did before the Surface Transportation Board (STB) that CIRY has been delivering Carver’s shipments within two hours of when Union Pacific places the cars on the western spur. As Pioneer Industrial Railway (PIRY) ably argued in a letter to the STB yesterday rebutting the city’s claim:

While the [city’s] letter claims that the “records show” that CIRY made deliveries “no more than two hours after receiving the car from Union Pacific,” this is not what the records show. Even if we were to believe these belatedly-produced, unverified “records”, they show notification times, not UP delivery times. It is also a matter of fact in the record that Carver routinely has to notify CIRY of UP deliveries because CIRY has no local presence.

David Jordan explains how long it really takes CIRY to deliver shipments:

The fact is, Union Pacific’s “Peoria Wayfreight” works five days a week, Sunday thru Thursday beginning at 5:00pm. A trip up to Pioneer Jct. is usually the first job for the wayfreight, which does this on Mondays and Wednesdays. Basically, UP delivers to CIRY in the early evening, but CIRY’s crew does not work the Pioneer Jct. to Pioneer Park line until late morning or early afternoon the following day (if there are any cars). [Assuming] that CIRY receives notice from the UP the following morning that these cars have been delivered […] UP physically interchanges these cars to CIRY the prior evening and then some 18-20 hours later, CIRY delivers to Carver Lumber.

That’s assuming that CIRY receives notice from UP in a timely manner, which isn’t necessarily the case, as Pioneer points out that Carver has had to notify CIRY on occasion as well. But who cares if Carver is getting adequate service? Certainly not the city. To the city, Carver is not a business that provides 50 good-paying jobs plus property and sales taxes to the economy; rather, they’re just obstructionists standing in the way of a hiking/biking trail the Park District wants to build.

And for your breach of contract, have another $187,847

What do you do when a company exhibits questionable competence, endangers the citizens of Peoria, and breaches their contract with the city? If you’re the city of Peoria, you award them another contract for more work.

Just to recap: Central Illinois Railroad (CIRY) tried to fulfill their contractual obligations. Late last year they tried to take some lumber up the Kellar Branch to Carver Lumber Company. What many people don’t know is that the Kellar Branch includes a pretty steep hill where it climbs the bluff. CIRY was using a vehicle called a Trackmobile to haul the lumber up the hill. Trackmobiles are designed for moving train cars around in a train yard, not for hauling lumber uphill; they don’t have as much power as an engine. As a result, they lost traction and the train barrelled down the hill backwards at 30 mph through several grade crossings. That runaway train could have killed someone, but thankfully didn’t. After that, they never again attempted to use the Kellar Branch — in breach of their contract with the city.

Not only did the city not enforce that contract (to Carver Lumber’s detriment), but now they want to hire the same company — a company with questionable competence — to do some rail crossing work on Allen Road to the tune of $187,847.

There are several things wrong with this picture:

  1. It does not appear that the City got multiple quotes and this was the low bid. For such an expensive project, one would think they would have bid it out. If they did, they didn’t disclose that information to the council in the Request for Council Action.
  2. The experience the City has had with this company is not exemplary. As noted above, they have been in breach of contract and have endangered the lives of Peoria citizens by their gross negligence. Why should we trust them?
  3. The quote submitted is apparently not itemized. There is hardware as well as labor included in that number of $187,847. How much are they charging for labor? How much for parts? Shouldn’t we at least get an itemized quote? It could be that it is itemized on “Exhibit 2B” which is unfortunately not included in the material available online.
  4. Recently, this same company filed a non-itemized quote with the Surface Transportation Board claiming it would cost over $500,000 to bring the Kellar Branch up to operable working condition, yet Pioneer Industrial Railway submitted an itemized work order indicating it would only cost around $10,000. See my previous post on this issue for more details. Doesn’t this indicate to anyone that CIRY’s cost estimates at least have the potential of being inflated?

One other thing: this work is not being paid by the city, but by IDOT. Does IDOT know anything about the history of this company? Did they have any part in this choice? In fact, why isn’t IDOT doing this work themselves? IDOT’s Bureau of Railroads provided an estimate for track repair on the Kellar Branch back in 2000 (which was used by the city to try to prove repairs are too costly). If they can provide estimates and repair work, and if they’re footing the bill anyway, why is CIRY involved at all?

I certainly hope someone takes this off the consent agenda on Tuesday and asks city staff some hard questions about it.

City takes the high road

Despite having the school board spit in their eye over the replacement school for the Woodruff attendance area, the city asked for input from the school board regarding their plans to implement two new TIF districts along the Warehouse District and Southern Gateway.  It’s good to see the city taking the high road and showing some statesmanship in this matter.

At the same time, I was happy to see the city council not just throwing good money after bad in the name of cooperation.  At last week’s council meeting, there was a proposal on the agenda to replace sidewalks around one of the schools slated to close within the next year or so — clearly a huge waste of money.  They wisely deferred that item until they could get more information from the school board on their plans for that school.

Kudos to the Council for playing fair, but not playing the fool with District 150.

City walking over dollars, looking for dime

On Tuesday night, the city council was reminded again about the impending budget crunch due to new accounting regulations known as GASB45:

GASB refers to the General Accounting Standards Board, an operating arm of the private Financial Accounting Foundation. GASB establishes standards of state and local government accounting. And Section 45 is a policy adopted by the board in 2004. It requires that governments must account today for future costs of guaranteed medical benefits for retirees…. [Those] higher costs, when the bills eventually come due, must be paid for by higher taxes or reduced services.

Standard and Poor’s, which takes this seriously because it rates government credit, said in a December 2004 report that GASB could uncover much higher costs that could “seriously strain operations” or uncover conditions in which governments “are unable or unwilling to fulfill these obligations,” which could hurt governments’ credit ratings.

So, Peoria is going to be facing some potentially drastic measures, such as making cuts in health care coverage for employees. Since that’s unpopular, every item of business, no matter how small, came under scrutiny. They even spent time haggling over hiring a part-time training coordinator for a mere $5,000.

I would be more sympathetic to these conscientious cost-cutting measures if it weren’t for the fact that the city council is poised to throw away a $565,000 asset without giving it a second thought. While they’re haggling over $5,000, the park district can hardly wait to get the word that it’s okay to tear out a half-million dollar rail line known as the Kellar Branch — a rail line for which there is a willing buyer or lessee — so they can turn it into a hiking trail. The irony is that the city could get the money and the trail, too, if they’d accept Pioneer Railcorp’s offer to buy or lease the line.

If the city council is really interested in plugging the GASB45 gap, then they should stop walking over dollars to pick up a dime.

City staff wants their unauthorized practice codified

As I explained in a previous post, the multi-billion dollar company American Financial Realty Trust (through their subsidiary First States Investors) recently bought the National City Bank building downtown (the old Commercial Bank building). That bank has a pedestrian walkway and underground vaults that encroach on the public way. Therefore, the city is supposed to be collecting ten cents per square foot on that encroachment annually.

Action was deferred last week while the staff answered some questions from the council. Those answers were released today. I’d like to simply look at the whole request and comment as I go:

First States Investors 4500 LLC, as the new owners of the National City Bank Building at 301 SW Adams, seeks the City of Peoria’s permission to continue using the pedestrian walkway and underground storage vaults on the property. Since both the walkway and the storage vaults are encroachments upon the public way, the buyer is seeking assurances that the City of Peoria will allow the continued use of the property. The buyer and seller were concerned that any refusal by the City of Peoria to allow the continued use and enjoyment of the encroachments would prevent the fullest utilization of the property and would require the parties to renegotiate the terms and conditions of the sale.

This part is completely reasonable. They want to be able to continue using the pedestrian walkway and underground vaults. The city can easily provide them assurances regarding this request. It’s the next part that defies logic:

Though § 26-111 of the Municipal Code, provides that a building owner pay .10/square foot as an annual fee for any encroachment upon the public way, the City of Peoria has not collected such a fee for a number of years.

Why not? That question was not answered in this new communication from staff. It’s apparent that nobody authorized the staff to stop collecting these fees. They just stopped, and now they want to use their negligence or deliberate unauthorized action to justify the continuation of that policy:

It would be unreasonable to begin collecting same relative to this transaction given the number of years the encroachments have existed.

No, what’s unreasonable is that staff has failed to do their job and are now shamelessly flaunting it.

The language of the ordinance provides for the building owners to provide proof of adequate public liability and property damage insurance prior to commencing any reconstruction, repair or other maintenance of the encroachments. Additionally, the Directors of Public Works and Inspections must authorize and monitor any repairs or reconstruction of the encroachments such that the City of Peoria is assured that the integrity of the public way is maintained.

Of course they should provide insurance for their own encroachment. The fee isn’t assessed to cover that. As far as the directors of Public Works and Inspections authorizing and monitoring any repairs or reconstruction, I think it’s fair to ask if they’ve been doing that, or if such monitoring also ceased “a number of years” ago.

The encroachment square footage, according to the Assessor’s Office, is 750 s.f. over the alley and 848 s.f. under the alley. If the annual fee were collected on this property, it would amount to $159.80. The land and building value is more than $4,000,000 and the City is receiving tax revenue on same. We believe collection stopped in the 1980’s.

The implication seems to be here that the amount is so small in comparison to the property tax revenue the city gets that it’s not worth collecting. Hogwash. The city collects lots of petty fines from businesses that pay plenty of property taxes to the city. The city by rights should charge them for the fees they haven’t paid since “the 1980’s.” That’s over $4,000 for the past 26 years.

Perhaps the most comical part of this is that according to this request, the company buying the bank building hasn’t even asked to get out of the fee — the only thing they’ve asked for is assurance that they can continue using the walkway and vaults; i.e., that the city won’t make them tear them out ala Peoria Heights vs. Alexis. Why city staff is insisting that the city stop collecting fees is a mystery.

But if that’s really what they want, then Patrick Nichting is right: they should include an amendment to the municipal code that repeals this fee. If a multi-billion dollar company shouldn’t have to pay it, then certainly no one else should.

Council Roundup 8/8/06

The council meeting was relatively short, mostly because a good number of items were deferred. Although, I have to give credit to Mayor Ardis for reining in debates — after watching several council meetings since he took over as mayor, I’ve noticed that he stresses brevity and tries to cut off debate once the council members start repeating themselves.

The council questioned staff regarding why fees have not been collected on banks that encroach on the public way, and deferred approval until they get some answers. Staff was also asked to report how much money the city has been losing because of this practice. Councilman Nichting made an excellent point as well — if the staff comes back in two weeks proposing the council continue to not collect these fees, they should bring back a request to change the municipal code so that it conforms to the city’s practices.

Councilman Nichting actually had two — count ’em, two — excellent points last night. He also questioned why the Peoria Civic Center (PCC) is giving part of their hotel tax (part of the “H” in “HRA”) to the Peoria Area Convention and Visitors Bureau (PACVB). The PACVB works on behalf of the entire tri-county area, yet only City of Peoria hotels pay HRA taxes. So the whole tri-county benefits, but the funding is coming disproportionately from Peoria hotels. Good catch. That item was deferred two weeks.

A day after the school board voted unanimously to support historic landmark status for Irving Primary School, the city council voted unanimously to make it official. The designation protects the building from demolition and the exterior from modification. The inside can be renovated and repartitioned, however, to accommodate alternative uses.

Gary Sandberg asked why the Nebraska overpass on I-74 wasn’t finished yet. IDOT officials had promised the council it would be completed in June of this year, and it’s still not open. Breaking that connection, in concert with the other I-74 construction and closures, has meant longer response times for emergency vehicles and greater inconvenience for Peoria motorists who have to drive further to get across town at a time when gas prices are soaring. Not a big deal if it were only closed for a few months, but it’s been over a year and a half now. Why isn’t it completed?

In addition to this, there were a few other notable items of business and some interesting citizen requests to address the council, which have been ably reported by Jennifer Davis in today’s Journal Star.

Corporate welfare on council agenda

First, a little background: It’s apparently the latest thing in the banking industry. Banks have quite a bit of money tied up in real estate — their bank buildings, like the beautiful and historic Commercial National Bank building downtown. Until recently, that building was owned by National City, but they sold it (as of 3/1/06) to a company called First States Investors 4500, LLC (Delaware), a subsidiary of American Financial Realty Trust (AFRT), headquartered in Jenkintown, Pennsylvania.

Commercial National Bank buildingAccording to their website, AFRT is “a self-managed, self-administered real estate investment trust (REIT) focused on acquiring, managing and operating properties leased primarily to regulated financial institutions.” Put simply, they buy bank buildings and lease them back to the banks at rates that are mutually beneficial. That frees up more money for the bank to lend.

The sale was sort of reported in the Journal Star (3/20), buried in an article about downtown revitalization and listed as an example of downtown deals that “go unnoticed by the general public.” It’s mentioned in the city council agenda for this Tuesday because there’s a pedestrian walkway and underground storage vaults that “encroach on the public way,” and AFRT wants the council’s explicit blessing on their continued use of these, fee-free.

That’s right — here’s where the corporate welfare comes into play. The bank paid property tax on the walkway and vaults, but for some reason the city had not charged them (nor had the bank paid) the ten-cents-per-square-foot annual fee dictated by the city’s municipal code for such encroachments. Because the city didn’t charge National City, city staff wants to essentially “grandfather in” the new owners under the same policy. They see that as fair.

Considering the financial condition of the city and the upcoming budget negotiations, I would want to know a few things before I rubberstamped this transaction. First, why hasn’t the city been charging this fee? Was it purposeful, or has the staff been negligent? Do they charge it to other businesses, do they use form 205? How much money are we talking about that the city is losing by not charging it? And are there other fees that the city has just stopped charging for no apparent reason? And if there are, can we add the garbage tax fee to that list? Why should we allow a multi-billion dollar company to get out of this fee while the residents don’t have a fully-staffed fire station 11 or adequate police protection, despite paying an extra six dollars a month on their water bills for things their property taxes are supposed to fund?

The answer to that last question is, according to staff, because it would be “unreasonable …given the number of years the encroachments have existed.” So, apparently, there’s a statute of limitations on how long they can charge for encroachments? Where is that in the municipal code?

I suppose someone could say that this is just an exception. That’s great. I want to know how many exceptions we have and how much money the city is losing because of them. We’ve had a rash of shootings lately and basic services are suffering. We can’t afford to keep allowing exceptions unless there’s a darn good reason for each and every one. So far, I haven’t heard a good reason for this one.

City to consider another consultant for Civic Center hotel

On the council’s agenda for Tuesday night is a request to hire yet another consultant to determine whether Peoria needs a hotel connected to the Civic Center. This one costs $21,000 and will look at demand for hotel rooms, what impact the proposed Civic Center hotel would have on existing hotels, and the quality of existing hotel space downtown.

According to Paul Gordon’s column in the Journal Star yesterday, every one of the requests for proposals for a new hotel connected to the Civic Center said such a hotel would require public assistance, such as a TIF district. I’m no business genius, but that would indicate to me there is not enough demand for hotel rooms to make a new hotel profitable.

If there’s not enough demand for a new hotel, and if a new hotel were built with the help of public money, what kind of an impact do you expect that would have on other downtown hotels? The new hotel could leverage its room rates on the taxes the other hotels are paying. Is that fair?

The last criterion is the most curious: the quality of existing space. What purpose does this serve, exactly? And how is quality going to be measured? And suppose the consultant finds that existing hotels don’t meet these quality standards? Would that be used as a justification for building a competing hotel with the help of public funds? Why not use those public funds to help the existing hotels instead?

I think the RFPs speak for themselves, and this consultant is unnecessary. Until a hotel can come into Peoria, attach itself to the Civic Center, and be profitable under the same conditions as Peoria’s other hotels, we don’t need one. The city shouldn’t waste its money on the hotel or the consultant.