It’s Tuesday night again, so time for the City Council Meeting. Here we go (agenda linked to background documents available by clicking here):

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

A. NOTICE of LAWSUIT on Behalf of VIDA JOHNSON, FRANKIE L. KING, SR., AUBRY DUNCAN, FREDDIE E. WRIGHT, SR., TIMOTHY J. MORRIS, CHUCKY WADE, and RAY MOSLEY Regarding Alleged Discrimination Pursuant to Title VII of the Civil Rights Act of 1964, with Recommendation to Receive for Information and Refer to the Legal Department.

B. TAG DAY REQUEST from the PEORIA DOWNTOWN KIWANIS CLUB to Hold Their ANNUAL PEANUT DAY on DOWNTOWN SIDEWALKS on FRIDAY, SEPTEMBER 25, 2009, to BENEFIT YOUTH and CHARITABLE NEEDS of Peoria. (To be held in conjunction with the South-West Kiwanis Club’s Annual Peanut Day)

C. TAG DAY REQUEST from the LIONS CLUB OF PEORIA to Hold Their ANNUAL CANDY DAY on the SIDEWALKS of PEORIA to BENEFIT the BLIND, VISUALLY IMPAIRED, DEAF and HEARING IMPAIRED on FRIDAY, OCTOBER 2, 2009. (Date is Open)

D. Communication from the Interim City Manager and Director of Public Works with Recommendation to REJECT ALL BIDS for the HOLLY HEDGES/DEVEREUX STREAMBANK STABILIZATION PROJECT. (Refer to Item No. 08-615)

E. Communication from the Interim City Manager and Director of Information Systems Requesting Approval of a PURCHASE of HP NETWORK EQUIPMENT, in the Amount of $13,611.93 from CDS OFFICE TECHNOLOGIES.

F. Communication from the Interim City Manager and Director of Planning and Growth Management with Request to Concur with the Human Resources Commission Recommendation to APPROVE the APPLICATION TIMELINE, PRIORITIES and RANKING for the 2010 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PUBLIC SERVICE FUNDS.

G. Communication from the Interim City Manager and Director of Economic Development Requesting Approval to SELL a VACANT LOT Located at 410 MARY STREET (18-03-255-017), in the Amount of $200.00 Plus CLOSING COSTS, and Requesting Authorization for the Interim City Manager to Execute the Necessary Documents.

H. Communication from the Interim City Manager and Director of Public Works Requesting Approval to TRANSFER a CITY-OWNED PARCEL of REAL ESTATE Located Near 5112 N. RONALD ROAD to the Owner of 5112 N. RONALD ROAD, at No Cost to the Owner.

I. Communication from the Interim City Manager and Corporation Counsel with Request to ACCEPT DEDICATION DEEDS for ORANGE PRAIRIE ROAD EXTENSION from HEINZ, CHAMBERS and AMERENCILCO, and to Authorize the City Manager to Execute the Necessary Documents.

J. Communication from the Interim City Manager and Director of Public Works Requesting Approval for a ONE (1) YEAR SOLE SOURCE EXTENSION of the CONTRACT with PHELPS UNIFORMS for UNIFORM SERVICES at the CITY and FIRE GARAGES, in an Amount of $8,350.00.

K. Communication from the Interim City Manager and Finance Director/Comptroller Requesting Adoption of an ORDINANCE Amending the CITY OF PEORIA BUDGET for Fiscal Year 2009 Adjusting the 2009 US DEPARTMENT of HOUSING and URBAN DEVELOPMENT (HUD) ENTITLEMENT AWARD FUNDING to the FINAL ALLOCATION.

L. Communication from the Interim City Manager and Finance Director/Comptroller Requesting Adoption of an ORDINANCE Amending the CITY OF PEORIA BUDGET for Fiscal Year 2009 Relating to the 2009 US DEPARTMENT of HOUSING and URBAN DEVELOPMENT (HUD) HOMELESSNESS PREVENTION and RAPID RE-HOUSING PROGRAM (HPRP), in the Amount of $790,404 and SUPPLEMENTAL CDBG FUNDS through the AMERICAN RECOVERY and REINVESTMENT ACT (ARRA), in the Amount of $516,509.00.

M. Communication from the Interim City Manager and Director of Planning and Growth Management with Recommendation to Adopt an ORDINANCE Approving the MULTI-FAMILY PLAN for JETH COURT APARTMENTS, a Multi-Family Residential Development Located East of University Street, West of Parcel ID Number 14-17-201-001, and South of Kimberly Drive Identified as Parcel ID Numbers 14-17-126-001, 14-17-126-003, 14-17-126-004, 14-17-126-006, 14-17-126-010, 14-17-126-011, 14-17-126-012 and 14-17-126-015, with Condition.

N. Communication from the Interim City Manager and Corporation Counsel Requesting Approval of an APPLICATION for a CLASS H (Temporary Outdoor) LIQUOR LICENSE at EXPO GARDENS, 1601 W. NORTHMOOR ROAD, for a BLUE GRASS MUSIC FESTIVAL to RAISE FUNDS for CRUSADERS FOR KIDS, INC. on SATURDAY, SEPTEMBER 12, 2009.

O. REAPPOINTMENTS by Mayor Jim Ardis to the PEORIA PUBLIC LIBRARY BOARD OF TRUSTEES, with Request to Concur:

Aurthur Mae Perkins (Voting) – Term Expires 6/30/2011
Gregory A. Johnston (Voting) – Term Expires 6/30/2012
Edward C. Meister (Voting) – Term Expires 6/30/2012
Brian W. Ruddell (Voting) – Term Expires 6/30/2012

P. Communication from the Interim City Manager and Corporation Counsel with Request to Receive and File a REPORT Regarding CITY SALES TAX ISSUES, or DIRECT STAFF to Bring Back an ORDINANCE (Not Recommended).

Q. REPORT of the CITY TREASURER PATRICK A. NICHTING for the MONTH of JULY 2009, with Request to Receive and File.

Items D and P were pulled from the consent agenda by councilmen Bill Spears (4th Dist.) and Gary Sandberg (At Large), respectively. The remaining items were approved unanimously. George Jacob (At Large) abstained from Item N.

On Item D, Spears asked Public Works Director David Barber why the bids were being rejected. Barber: They were all too high. Spears moves to reject the bids as requested, but adds that a neighborhood meeting should be called and attended by city staff, seconded by Barbara Van Auken (2nd Dist.). Motion passes unanimously.

On Item P, Sandberg pointed out a couple of items that this memo does not address. First, it doesn’t provide protection to consumers from being charged excessive sales tax; City Attorney Randy Ray said that’s because home rule authority is preempted by the state (see my previous post on this). Second, it doesn’t address transient merchants who collect taxes, but don’t remit them to the state. Sandberg will not support the recommendation.

Ryan Spain (At-Large) said that, in his discussions with the Civic Center Authority, they conceded that the problem of sales tax remittance by transient merchants

Van Auken moved to approve the recommendation not to draft an ordinance, as outlined; believes it would be a “fruitless exercise to solve a problem that lasted about a month and a half.” The problem has been addressed, and we should just move on, she said. Seconded by Eric Turner (At-Large).

Sandberg said that he received notice that as of last week, people were still being overcharged. Motion passes 9-2 (Sandberg and Jacob voting nay).

ITEM NO. 2 Communication from the Interim City Manager and Director of Economic Development Requesting Approval to Enter into a TIF REDEVELOPMENT AGREEMENT with D & B DEVELOPERS, LLC to REDEVELOP the OLD PEORIA POST OFFICE, Located in the Warehouse District at 601 S. W. WATER STREET, into a MODERN OFFICE BUILDING, and Requesting Authorization for the Interim City Manager to Execute the Necessary Documents.

Gulley moves to approve, seconded by Van Auken. Sandberg abstained due to providing architectural work on the project. Motion passes unanimously.

UNFINISHED BUSINESS

(09-277) Communications Requesting INITIAL DIRECTION ON STEPS TO REDUCE THE ANTICIPATED FY2010 BUDGET DEFICIT:

A. Communication from the Interim City Manager Regarding a REPORT from STAFF OUTLINING POTENTIAL REDUCTIONS TO THE FY2010 PROJECTED BUDGET, with Request to Receive and File and to Direct Staff through Advisory Motions.

Interim City Manager Henry Holling gave an oral presentation basically summarizing the memo he provided to the council already. He did mention that 38 employees had applied for the voluntary separation initiative (VSI) as of 5 p.m. today (the deadline for applying).

[Off-topic: I just noticed that the city has a new flag with the new city logo on a stand behind the mayor. I wonder how long that’s been there?]

Rather than going through the report line by line, Ardis opened the floor to council members to ask questions about specific line items in any order.

• Van Auken had question for Ray regarding elimination of a hearing officer for housing court, moving that function back to circuit court. She listed off a number of “unintended consequences,” including inefficiency (slower service), incurring extra expense of certified mail, and time spent by city employees waiting their turn in circuit court. Ray: “We don’t think this is a good idea” and “it isn’t something we really want to do.” They’re only doing it because of the budget situation. They recognize there’s an additional expense for moving this back to circuit court, but not enough to override the savings. Van Auken retorted that “the city could also save money by laying off an attorney” (meaning Ray, of course). But she doesn’t think that’s a good idea either, she said. Now she’s preaching in favor of keeping the hearing officer.

  Van Auken moves to remove this proposal from consideration; seconded by Spain. Spears makes a substitute motion asking that Van Auken and/or staff find $18,000 elsewhere to cut in order to retain this position. No second made; motion ignored. Original motion passes 8-3 (Sandberg, Montelongo, Gulley voting nay).

• Turner asks if there’s an opportunity to take some unused capital dollars and cut them. Makes a motion asking for such a report back from staff; seconded by Tim Riggenbach (3rd Dist.). Passes 9-2 (Sandberg, Jacob voting nay).
• Ardis asks for the council for their thoughts on staff’s suggestion to reduce the percentage the city pays for the SINR (sidewalks in need of repair) and sidewalk assistance program (SAP) from 80% to 50%. Homeowners pick up the rest of the cost. Ardis asks if we want to make this change temporary — perhaps just for a couple of years. Van Auken moves to approve the change as outlined and revisit it on a year-to-year basis.

  Sandberg points out that other communities surrounding Peoria pay 100% of the cost of repairing public sidewalks; takes Van Auken to task for saying earlier that 80% is “generous.” He will not support a reduction.

  Riggenbach questions assumption that the same amount of work will be done with a 50-50 split as with an 80-20 split (as asserted in staff’s communication to the council). Asks about those projects already approved — will they be bumped up from 20% to 50% of the cost? Barber says SINR and sidewalk participation requests are not part of the special assessment process. Van Auken clarifies that in the special assessment projects, the amount of participation can’t be changed to 50% after it’s already been approved at 20%.

  Spears wants to know how many sidewalk requests there were the last time it was a 50-50 split. Asks for a report back; his recollection is that they got zero requests then.

  Clyde Gulley (1st Dist.) speaks against the motion. Spain would also be interested in deferring this vote until further information is provided by Public Works. Jacob asks for a breakdown of current requests by linear feet for business versus residential.

  Gulley moves to defer two weeks; seconded by Riggenbach. Passes 10-1 (Sandberg voting nay).

• Spain is “disappointed” that the Economic Development Department is being slashed by 27% — one of the highest cuts by percentage. He sings the praises of Economic Development; asks for suggestions (“other options and solutions”) on how we can sustain Economic Development activities at least at the current level.

  Van Auken says that what Spain is asking for is being done. Planning and Growth, Public Works, Inspections, etc., all get together to meet with businesses and developers to streamline processes, solve problems that arise; she agrees with Economic Development Director Craig Hullinger’s proposal.

  Mayor Jim Ardis points out that the percentage is misleading, because it’s just one position and some consulting line items; it’s not quite as drastic as “27%” makes it sound. Also points out that restructuring will take place once our new city manager starts. Ardis also suggests that the city rely more heavily on the EDC (Economic Development Council).

  Jacob asks some questions for clarification: the position to be eliminated is currently filled (meaning someone will get fired if this item is approved). Amount listed is salary only, not including benefits. Jacob concurs with Spain, and will not support including this in the recommendation.

  Spain moves to retain the Economic Development Specialist position; Jacob seconds. Motion passes 7-4 (Ardis, Sandberg, Spears, and Van Auken voting nay).

  [Incidentally, the individuals currently holding the position of Economic Development Specialist are Bobby Gray, Stephanie Grayson, Rachael Parker (also a school board member and wife of Ardis’ challenger in the mayoral race, General Parker), and Susan Schlupp. No specific individual had been identified for elimination; just the position title.]

• Dan Irving (5th Dist.) asked Barber some questions regarding Public Works. Irving says he doesn’t see any evidence of “right-sizing” the Public Works department. It’s just moving money around, deferring costs, and pushing off expenses onto citizens (fee increases). He would like to see more right-sizing. Spears concurs, and asks for a report back on 2010 projects that are slated to go out for consulting that could instead be done in house.

  Irving also clarified that Barber is actually recommending elimination of the sealcoating program in 2010 completely. That’s right — no sealcoating in 2010 (if this passes)! Barber points out that Public Works is down 28 employees since the year 2000 and simply can’t afford to cut more employees. If they do, they won’t have enough people to take care of snow removal in the winter. That’s why they haven’t made structural changes this year; they already did that nine years ago.

• Montelongo asked for clarification on the 38 employees who have applied for the voluntary separation initiative (VSI). He asked what our cap is. Answer: 30. Montelongo suggested raising the cap to 40. Holling would need to run the numbers. Spain urged caution in changing/expanding the program; would recommend sticking with the offer as it stands.

Van Auken moves to receive and file Item A, with council’s comments noted; seconded by Turner. Passes 10-1 (Sandberg voting nay).

B. Communication from the Interim City Manager and Acting Director of the Human Resources Regarding a REPORT BACK on the CITY COUNCIL’S REQUEST Regarding FURLOUGHS as a COST SAVINGS OPTION for the BUDGET, with Request to Receive and File.

Acting Human Resources Director Kimberly King gives summary of staff’s recommendation on offering furloughs. In short, they don’t recommend it. It’s a bargaining issue for many employees, and the employees who aren’t covered by a union have already made significant concessions. To add furloughs to the non-union employees would be unfair. Also, it’s a short-term fix, rather than a long-term solution.

Turner asked some clarifying questions. Sandberg complimented King on her clear and concise presentation.

Jacob asked if a furlough program could be done on an individual bargaining unit basis, or if it would have to be a blanket program for the organization. Answer from King: Could be done individually, but that could lead to litigation, depending on whether one “protected class” of citizens [meaning minorities, I presume] is impacted disproportionately as a result. Have any recent bargaining contracts included any furlough language? Answer: no. Nevertheless, Jacob feels uncomfortable taking this option off the table at this time.

Spears is trying to take staff’s statement that furloughs are a short-term fix and turn it around to say that staff is recommending lay-offs, restructuring, or some other type of long-term fix. King is sticking to her guns, saying that all they’re recommending is against furloughs, not in favor of any other particular long-term solution. All long-term solutions are open to the council for consideration.

Gulley moves to continue to consider furloughs; seconded by Van Auken. Van Auken would like staff to talk to bargaining units to explore the possibility of furloughs. Riggenbach is speaking in his “I’m very serious” tone of voice, asking that staff tell bargaining units that they should take this request seriously. Motion passes unanimously.

C. Communication from the Interim City Manager Regarding a REPORT BACK on COUNCIL MEMBER SPEAR’S REQUEST Pertaining to SHARED SERVICES with the COUNTY of PEORIA, with Request to Receive and File.

Holling explains that this is a work in progress; there are a lot of opportunities for shared services, but they will take time to work out the details because some of the areas are very complicated to merge/share. Spears moves to receive and file; seconded by Van Auken. Lots of praise of Patrick Urich (County Administrator) from Ardis and Holling. Spears is pleased with the report and asks that, as progress is made, it is reported to the council on a regular basis.

Spain questions some of the seemingly small obstacles to sharing services in some departments. For instance, finance said it would be hard to share services because the city and county use different software accounting programs.

Riggenbach reminds everyone he used to be on the city/county committee when he was a county board member, but has no further point apparently. Just wanted to say what a great committee it was.

Jacob reminded everyone that he and Spears had suggested a year ago that the city and county combine ESDA (emergency service disaster agency) services, and nothing became of it. He said now that the needs are urgent, maybe we can make some progress. Ardis says “urgent” lies in the eyes of the beholder, and points out that every time we ask for more reports back from staff, it puts off decisions.

Motion passes unanimously.

D. Communication from the Interim City Manager and Finance Director/Comptroller with a Request for the City Council to PROVIDE DIRECTION to STAFF Regarding the RESTRUCTURING of OUTSTANDING DEBT.

Holling sings the praises of Finance Director Jim Scroggins. [It’s 8:42, for reference.] There are three recommendations, which Scroggins explains one at a time:

1. Paying off the IMRF Early Retirement Incentive offered in 2002-2003, saving $600,000 over four years. Van Auken moves to approve the first recommendation; seconded by Riggenbach. Passes unanimously.
2. Using a $798,000 bond premium to pay a portion of the debt service, freeing up the property tax levy for for use in the general fund. Van Auken moves to approve; seconded by Turner. Passes unanimously.
3. Restructuring of January 1, 2010, debt service payments funded with utility taxes. Van Auken moves to approve; seconded by Turner.

   Sandberg asks what the anticipated total debt service would be for next year. Answer: About $17 million. If hotel goes through, then debt service could go up another $3.8 million per year. This is not good for taxpayers who expect services, because this is money that’s getting sucked out of our economy, and not being spent on the basic services the citizens need. All this suggestion does is improve short term cash flow, but incur more debt by extending it over a longer period of time, incurring more interest charges. Irving asks what the additional interest cost would be. Answer: about $200,000. Riggenbach — self-described “conservative banker” — says he thinks the cost is worth it to free up some money in the short term.

   Spain says he’s not in favor of this option. Montelongo asks if we “really need the cash right now.” Scroggins: No, but we’re talking about 2010, and we may need them then.

   Motion passes 8-3 (Sandberg, Jacob, Irving voting nay).

E. PUBLIC COMMENTS Regarding the FY2010 BUDGET.

Before public comments commence, Spain updates Council on Civic Center Authority actions. In two weeks, the authority will come back with concessions.

Public comments on the budget:

• Paul Wilkinson: Speaking on behalf of the Altamont Park Neighborhood Association. Concerned about cuts to police, fire, and code enforcement. Suggests cutting wants, not needs. Also suggests imposing a vacant-building tax.
• General Parker: Opposed to eliminating positions. Suggests council use its reserves, since this is just the kind of situation for which they are in reserve. Short of that, he suggests they should raise taxes rather than cut employees. [Full-disclosure: his wife works for the city, as mentioned earlier.] Sings praises of Councilman Spain.

NEW BUSINESS

Van Auken invites colleagues and public to attend the Uplands Neighborhood Association’s 100th Annual Picnic this Saturday at 2 p.m. in Upper Bradley Park.

Jacob asks for solemn remembrance of 9/11/01 this Friday.

CITIZENS TO ADDRESS THE COUNCIL

Missed it. Sorry. It was something about the Mayor’s Litter Committee and picking up Peoria. No one else addressed the council.

Jacob moves, Montelongo seconds to go into executive session. Passes unanimously.

Sandberg moves, Irving seconds to adjourn. Passes unanimously.

That’s it! Goodnight, everybody!