Here we go again! It’s Tuesday night in beautiful downtown Peoria in historic Peoria City Hall, Council Chambers. All the council members and the Mayor are present except for Montelongo, and they will be disposing of the following agenda. Be sure to refresh this post often as I’ll be updating it throughout the evening.

The business portion of the meeting starts at 6:41, after 25 minutes of proclamations.

PETITIONS, REMONSTRANCES & COMMUNICATIONS CITY OF PEORIA

ITEM NO. 1 CONSIDERATION OF CONSENT AGENDA ITEMS BY OMNIBUS VOTE, for the City of Peoria, with Recommendations as Outlined:

A. NOTICE of LAWSUIT Filed on Behalf of FRIEDA ROULDS Regarding a Complaint Against the City of Peoria Regarding a Vehicle Accident Involving a City Employee, with Recommendation to Receive for Information and Refer to the Legal Department.

B. Communication from the City Manager and Fire Chief Requesting Approval to ACCEPT the BID of HUDSON COMMUNITY FIRE PROTECTION DISTRICT for the SALE of a SURPLUS 1980 MACK FIRE ENGINE (Unit #839) and Related Parts for a Total in the Amount of $5,610.00.

C. Communication from the City Manager and Director of Planning and Growth Management Requesting Approval of the Recommendation from the Human Resources Commission (HRC) for ADJUSTED FUNDING for the 2010 PUBLIC SERVICE GRANT AWARDS to Reflect an Increase in the 2010 CDBG Allocation.

D. Communication from the City Manager and Director of Planning and Growth Management Requesting Approval of the Recommendation from the Human Resources Commission (HRC) for 2010 EMERGENCY SHELTER GRANT (ESG) FUNDING.

E. Communication from the City Manager and Interim Director of Human Resources Requesting Authorization for the City Manager to RENEW EXISTING LIABILITY COVERAGES with TRAVELERS through MESIROW FINANCIAL at a ONE YEAR COST of $217,228.00, and to RENEW AUTO CATASTROPHIC COVERAGES with GREAT AMERICAN through MESIROW FINANCIAL at a ONE YEAR COST OF $23,370.00.

F. Communication from the City Manager and Finance Director/Comptroller Requesting Authorization for the City Manager to Enter into a TWO YEAR EXTENSION of the CURRENT CONTRACT with SEMPRA ENERGY SOLUTIONS for the City’s ELECTRIC ENERGY NEEDS Beginning JANUARY 1, 2012, and Ending DECEMBER 31, 2014, as Outlined.

G. Communication from the City Manager and Finance Director/Comptroller Requesting Approval to EXECUTE a ONE-YEAR CONTRACT with COTTON COMMERCIAL AUCTIONEERS to PROVIDE AUCTIONEER SERVICES to the City of Peoria.

H. Communication from the City Manager and Director of Public Works Requesting Approval of a CONTRACT with AUSTIN ENGINEERING, in the Amount of $10,500.00, to CONDUCT an ALTA SURVEY of CITY-OWNED PROPERTY Along the ILLINOIS RIVER.

I. Communication from the City Manager and Finance Director/Comptroller Requesting Adoption of an ORDINANCE Declaring the OFFICIAL INTENT Regarding Certain Capital Expenditures to be Reimbursed from the Proceeds of an Obligation for the Construction, Installation and Acquisition of Public Capital Infrastructure Improvements, Including but not Limited to Street and Sidewalk Improvements, Streetscape Improvements and Improvements to the Existing Sewer System of the City.

J. Communication from the City Manager and Corporation Counsel Requesting Adoption of an ORDINANCE Amending CHAPTER 13 of the Code of the City of Peoria Pertaining to METHOD of DISPOSITION of GARBAGE and REFUSE.

K. TOWN of the CITY OF PEORIA FINANCIAL REPORT for the Period Ending 3/31/2010, with Request to Receive and File.

The following items were removed from consent: C (Turner); E, I, J (Sandberg). Remaining items approved unanimously (Irving/Riggenbach).

• Item C — Turner wants to know, Why don’t we add more agencies instead of increasing funding to existing agencies only? Answer: It was considered, but we decided not to do it. Turner/Van Auken move to approve; passes unanimously.
• Item E — Sandberg wants to know, did the RFP from 2008 cover 2010? Answer: Yes. It was a three-year contract, and 2010 is the third year. Some additional questions about the process. Sandberg/Turner move to approve; passes unanimously.
• Item I — What specific items are included in the sewer rehabilitation project? Answer: Specifics aren’t needed to issue bonds, so there are no specific items identified yet. The whole city is designated a “recovery zone,” so the funds can be used anywhere. Sandberg concerned that bonds are taxable and will put us further in debt. Nevertheless, Sandberg/Van Auken move to approve; passes unanimously.
• Item J — In section 13-61, why not add “and alley pickup” to curbside pickup, as long as we’re changing the ordinance anyway? Answer: just didn’t think of it. Sandberg moves to approve with amendment to add “and alley” after “curbside.” Seconded by Irving. Approved unanimously.

ITEM NO. 2 Communication from the City Manager and Corporation Counsel Requesting Approval of the EXPENDITURE of $2 Million of SOUTHTOWN TIF MONEY as a CONTRIBUTION to the CONSTRUCTION of a CANCER RESEARCH CENTER at the UNIVERSITY OF ILLINOIS COLLEGE OF MEDICINE IN PEORIA, Said Donation Going Through the Heartland Commerce and Economic Development Foundation (Heartland Foundation) ESCROW AGREEMENT to Facilitate Direct Payment to Contractor; AND Requesting Authorization for the City Manager to Execute any Necessary Documents Conditioning the Donation on the Full Cost of the Cancer Research Center being Donated and the Expenditure of City Funds Proportionately with the Other Donors’ Funds.

Spain is abstaining due to affiliation of Heartland Foundation with his employers. Van Auken/Turner move to approve. Representative from U of I College of Medicine is given the privilege of the floor to give a short presentation/sales pitch.

Gulley speaks in favor of the project. However, he’s concerned about just giving the money as a gift because then the council has no control over how the money is used. He says a previous project used TIF funds to build a parking deck, and he was not in favor of that. So he’s in favor of the project, but not the process. He would like more details put in the contract that would cover how the money can be used.

Van Auken thinks this project is in the second district, but Gulley says it’s in the first district. She also says that she does not want to approve delaying the project based on Gulley having unspecified “concerns.” She wants him to be more specific.

Sandberg asks for the privilege of the floor for Savino Sierra to speak to this issue. He speaks against the use of Southtown TIF funds for this project, although he supports the cancer center. The TIF money should be used for projects in the South Side. Find other funding.

Sandberg asks if the cancer center is tax exempt. Answer from Randy Ray: yes. Jim McConoughey confirms it will be non-profit and tax-exempt. Sandberg objects to using tax increment financing to support projects that don’t increment the real estate tax. He would rather get out of debt in all TIF districts.

Gulley says that the Southtown TIF is in the first district. Randy Ray confirms that the TIF and the School of Medicine are both in the first district; Van Auken was incorrect. Gulley moves to defer for two weeks. Motion fails 3-7 (Sandberg, Jacob, Gulley voting aye).

Original motion passes 9-1 (Sandberg).

ITEM NO. 3 Communication from the City Manager and Corporation Counsel Requesting Approval of the Following:

A. Approve the KELLAR BRANCH PUBLIC USE CORRIDOR AGREEMENT for ASSIGNMENT of LEASEHOLD PURCHASE AGREEMENTS from KELLAR BRANCH CORRIDOR CORPORATION to the City and Village of Peoria Heights, said Lease Agreements Dated November 17, 2008, from Central Illinois Railroad and October 8, 2008, from Pioneer Industrial Railway Company;

B. Authorize Entering into an INTERGOVERNMENTAL AGREEMENT for GRANT of EASEMENT for RECREATIONAL TRAIL with the PEORIA PARK DISTRICT, for that Portion of the KELLAR BRANCH Between Mile Posts 2.78 and 8.50 Located within the City of Peoria, Subject to the Village of Peoria Heights Entering into a Similar Agreement with the Peoria Park District for that Portion of the Rail Situated in Peoria Heights; and

C. Authorize the TRANSFER of the PROCEEDS from the PARK DISTRICT to the ESCROW AGENT to Fund the Amounts Due to CENTRAL ILLINOIS RAILROAD and PIONEER INDUSTRIAL RAILWAY COMPANY and Expenses of the Kellar Branch Corridor Corporation; and Authorize the Mayor to Execute the Necessary Documents.

Mayor Ardis asks Randy Ray to summarize the actions being asked of the council tonight. You can read about it here. The three portions of the of the item will be voted on separately.

Sandberg moved for the privilege of the floor for me, C. J. Summers. I expressed that I have three concerns with this deal. I’m not giving them verbatim here (I don’t remember exactly what I said), but these will give you the gist of my points:

1. It’s deceitful. The Park District wants to acquire a portion of the Kellar Branch and convert it to a linear park. They want to use state grant funds to do it. However, they’re not actually acquiring the land, but rather are trying to buy out the interests of the railroad carriers and shippers. That’s not an allowable use of the grant funds. To get around that, the Park District wants the City to pay off the railroad carriers and shippers (via a third party), then make it appear that they (the Park District) are acquiring the land from the City for $1.25 million — as if that’s the purchase price for acquiring the land. In other words, the Park District is trying to launder the payoff money through the City so that they can access state grant monies that are not eligible for this expense. This is deceitful, and I would hope that the City Council would not be a party to this kind of deceptive practice.
2. The City Council did not authorize or approve Tom Leiter or the Kellar Branch Corridor Corporation to negotiate a cash payoff of Pioneer Railcorp, Central Illinois Railroad, or Carver Lumber. They were not hired by the Council, the Park District, or Peoria Heights. They were not elected by the voters to act on our behalf. They acted on their own, in secret, and made a deal predicated on obligating the taxpayers of Peoria to reimburse them. This is contrary to the fundamental principles of representative government. Furthermore, we don’t know how they acquired these leaseholder buyouts. Was coercion used? We’ll never know because the process was not transparent; it wasn’t done publicly. And by the way, the process is supposed to be public in order to qualify for the ITEP grant funding, so it’s questionable whether this process is even legal.
3. I’m concerned about the compensation for this asset. The City is giving the Park District a permanent easement on a corridor worth nearly $3 million and requiring them to pay only $1 for it. At a time when the City is strapped for funds and contemplating more police layoffs, how can the council agree to such a giveaway? The Park District charges the City $86,500 a year for riverfront programming. Why wouldn’t the council charge the Park District for use of its corridor for a recreational trail?

I said these things are very troubling to landowners and taxpayers of the City, and will set a dangerous precedent. I urged the council to vote “no.”

Sandberg points out that the IDOT grant originally provided $20,000 for acquisition. The budget for converting the line has always been tight. Yet now, all of a sudden, the acquisition is going up to $1.25 million, and it’s going to come out of the $3.8 million grant. Sandberg thinks that means they’re not going to have the money to build the trail. He also says that everyone thought the Kellar Branch Corridor Corporation was working with private money; now, all of a sudden, with a gun to our head that we have act right now, it’s all coming out of the taxpayers’ pockets. Let the private interests pay.

No further discussion, of course.

Turner/Van Auken move to approve Item A. Motion pases 9-1 (Sandberg).
Turner/Spain move to approve Item B. Passes 9-1 (Sandberg).
Turner/Gulley move to approve Item C. Passes 9-1 (Sandberg).

Ardis: “This is good for the City Council to be moving forward on this at this time.”

UNFINISHED BUSINESS

(10-057) Communication from the City Manager and Director of Planning and Growth Management with Recommendation to ADOPT an ORDINANCE Amending CHAPTER 16 of the Code of the City of Peoria Related to the DESIGNATION PROCESS and the CERTIFICATE OF APPROPRIATENESS PROCESS (New Communication and New Ordinance).

Van Auken moves to defer for 90 days; seconded by Riggenbach. Sandberg wants Van Auken to explain the specific concerns. Van Auken says they’re complex legal issues. Sandberg says the ordinance under consideration loosens the existing ordinance, and can’t imagine what “complex legal issues” there could possibly be. Motion passes unanimously.

NEW BUSINESS

Various community announcements.

Gulley requests a report back on a project that was funded through the Southtown TIF — the parking lot on Main Street that is adjacent to the doctor office. He would like to know some additional information that he communicates in a code language I don’t understand. He also wants to know if the $2 million in TIF funds that were just allocated will have any requirements associated with them and who will monitor that with the grantee/recipient. Will the City be monitoring how their money is used?

Irving would like a report back on the new sidewalk program.

Sandberg wants to know why neighborhood organizations were not allowed to bid on the lawn mowing of city-owned lots contract.

Jacob praises Finance Director Scroggins and other staff members for going above and beyond the call of duty.

CITIZEN REQUESTS TO ADDRESS THE COUNCIL

• Mr. White — Not in favor of laying off people, cutting wages, etc., to balance the budget. Distributes a paper to all the council members expressing his idea of how to save money, apparently. He’s referring to the hand out, which I don’t have.
• Mr. Seibold (sp?) — Complains about noisy vehicles, especially motorcycles. Reads a letter from the Mayor to himself. Why, I honestly don’t know.
• Mr. Sierra — Complains about pedestrians walking in the streets instead of on the sidewalks or by the side of the road, and various other items.
• Mr. Knapp — Also has a handout. Wow, this is the night for visual aids. The handout is a copy of the City’s Code of Conduct ordinance. The Mayor took Knapp to task last meeting for his comments. Knapp says the Mayor doesn’t know his own ordinance, and he believes the Mayor was trying to stifle public debate and silence Knapp. He doesn’t believe he was attacking anyone, just expressing a strong opinion. Now he’s talking about Edison schools and the effect it has on taxes in Peoria. He also wants to know where the riverboat gambling money is going, and claims no one in the city can tell him.

EXECUTIVE SESSION

ADJOURNMENT

And it’s now 8:07 p.m. The council is adjourning and going into executive session. I’m off to Whitey’s for some pizza. Spears votes against adjourning again; it’s apparently a running joke now.

Good night, folks.