City of Pekin City Council Met Jan. 11.
Here is the minutes provided by the council:
PLEDGE OF ALLEGIANCE
Due to the Governor’s Executive Order regarding COVID-19 and the relaxing of the Open Meetings Act requirements, this meeting was held remotely via Zoom Meetings without an in person meeting location for the public to attend. Therefore, the provisions of the City Code regarding electronic attendance did not apply.
The Pledge of Allegiance was led by Councilmember Orrick.
The Clerk confirmed by roll call vote, that all Council Members were physically present.
| Attendee Name | Title | Status | Arrived |
| Michael Garrison | Councilman | Present | 5:32 PM |
| Rick Hilst | Councilman | Present | 5:32 PM |
| Karen Hohimer | Councilwoman | Present | 5:32 PM |
| Dave Nutter | Councilman | Present | 5:32 PM |
| Lloyd Orrick | Mayor Pro-Tem | Present | 5:32 PM |
| John P Abel | Councilman | Present | 5:32 PM |
| Mark Luft | Mayor | Present | 5:32 PM |
3.1. Motion to: Approve agenda
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Karen Hohimer, Councilwoman SECONDER: John P Abel, Councilman AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
4.1. City Council - Regular Meeting - Dec 28, 2020 5:30 PM
| RESULT: ACCEPTED [UNANIMOUS]
MOVER: Karen Hohimer, Councilwoman SECONDER: Lloyd Orrick, Mayor Pro-Tem AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
Mr. White addressed the Council regarding Agenda items 7.1, 7.2 and 7.3. Mr. White questioned the proposed TIF ordinances and whether there would be an increase in future taxes. Mr. White felt that passing the ordinances was poor timing during the COVID crisis and asked that the Council deny the proposed TIF ordinances. City Manager, Mr. Mark Rothert, addressed Mr. White and explained that there would be no increase in taxes. Mr. Rothert explained that a base EAV, which would stay the same for the life of the TIF, is established in that geographical area with the county and all taxing districts would levy against the TIF district. Council discussed challenging the real estate property taxes with Mr. White and how the TIF surplus works.
Mr. Jim Mangan, spoke regarding agenda items 7.1, 7.2 and 7.3. Mr. Mangan urged Council to amend the geographical area of the Court Street TIF district by reducing the area to only Court Street. Mr. Mangan also commented on agenda item 7.4 referring to the original agreement to install a sprinkler system and that no evidence was presented that the work was put on hold due to COVID related issues. Mr. Mangan requested Council vote against agenda item 7.4 to protect taxpayers. Lastly, Mr. Mangan addressed the Council regarding agenda item 7.7 stating that the public had not seen the agreements with Districts 108 and 303.
CONSENT AGENDA
6.1. Proclamation Human Trafficking Prevention & Awareness Month
6.2. 2021 Schedule of Council Meetings
6.3. Resolution No. 203-20/21 The Mayor's Reappointment of Karl Jordan to the Pekin Housing Authority Board for a 5-Year Term Until January 14, 2026
6.4. Police Department Stats - December 2020
6.5. Accounts Payable to be Paid Proof List thru January 8, 2021
Motion to: Approve Consent Agenda
Mayor Luft read the 5 items listed on the Consent Agenda.
Sara, a representative from the Center for Prevention of Abuse, gave comments about what they are doing in their efforts for Human trafficking including providing free specialized comprehensive services for survivors and training thousands of people on prevention of this crime. The Center of Prevention Abuse appreciated the City supporting human trafficking month. Initiatives included this month with retailers is to purchase a bracelet or cup of coffee to support victims. Also, Sara announced a two day education night planned this spring to host a free community night to learn more about this issue.
Mayor Luft read the proclamation for Human Trafficking Prevention & Awareness Month.
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Karen Hohimer, Councilwoman SECONDER: Lloyd Orrick, Mayor Pro-Tem AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
7.1. Ordinance No. 2943-20/21 An Ordinance Approving the Redevelopment Plan and Projects for the Pekin Court Street Tax Increment Financing (TIF) District
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2943-20/21 An Ordinance Approving the Redevelopment Plan and Projects for the Pekin Court Street Tax Increment Financing (TIF) District. Mr. Rothert read the request to Council stating that the use of TIF along Court Street and other major commercial corridors would be an essential tool to help address some of the major issues facing the community including economic downturn aggravated by COVID-19. Mr. Rothert continued to state that TIF districts provided a means in which communities could financially assist in the development or redevelopment of a site or area. Cities could utilize the incremental increase in taxes as a result of a redevelopment project to assist with qualifying development projects. Using the incremental revenues in the TIF District, a community could undertake economic development activities or provide incentives that otherwise might not be possible in order to encourage job creation, increase property values, and to protect the local tax base. The TIF could effectively be used to help fund eligible public works projects such as the restoration of Court or Derby Streets; various sidewalk repairs; or storm water management projects. Funds could also go to help new and existing businesses renovate, expand operations or relocate to a more suitable location. Mr. Rothert stated that there were no restrictions for TIF or BDD funds to help neighborhoods with housing stabilization, demolition of vacant structures or emergency repairs, as long as, the neighborhoods are located within the TIF District. Mr. Rothert provided the TIF Redevelopment Plan outlining the rationale, qualifications and projects of the proposed TIF District in the Council packet. Mr. Rothert added that the ordinance was one of three ordinances needed to create a TIF District. It seeked to specifically adopt the TIF plan and proposed projects for the new Court Street TIF District in Pekin.
Councilmember Orrick discussed the anticipated projects over the next 23 years and how those projects would not take place until an agreement had been made with that particular developer.
Councilmember Nutter discussed agenda items 7.1, 7.2, 7.3, 7.5 and 7.6. He confirmed with the City Manager, Mr. Mark Rothert, that the effective date would be immediate after passing. Mr. Rothert added that there was a 90 day window to create a TIF from the date provided in the public notice and that 90 day period had 3 days left before another process would have to begin. Councilmember Nutter also asked for clarification from Mr. Rothert on whether there was a requirement to have agreements with the school districts prior to approving the agreement. Mr. Rothert stated the answer was no. Councilmember Nutter continued to question the school district’s budget discussions with the City that Mr. Rothert stated was non-existent.
Councilmember Hilst questioned Mr. Rothert pertaining to moving certain properties in or out of the TIF district and whether that changed the dollar amount. Mr. Rothert explained that no development existed on the properties so it only made sense to add them to the new TIF district in hope that development would occur. Councilmember Hilst continued to question whether the school district was aware of the new TIF district and whether the taxing bodies had representatives at the Joint Review Board meetings. Mr. Rothert explained that their job was not to have to agree or approve anything only certify that the properties were in the TIF.
Councilmember Nutter inquired about public hearing and meetings for removing, overlapping or transferring properties to the new TIF. He felt it was it was required by the law. Councilmember Nutter also felt that the proposed TIF was too large and was not a supporter.
Mr. Rothert stated that the project had been ongoing for over a year and had been brought forward at multiple public meetings.
Council continued to discuss the transfer of properties and the size of the proposed new TIF.
TIF Attorney, Mr. Nick Nelson, answered Council’s previous questions stating that when a property was removed that it could be done by ordinance without a public hearing and if a property was added a public hearing was required. Mr. Nelson continued to explain that an intergovernmental agreement between taxing bodies was not required before or after the creation of a new TIF and therefore would cause surplus payments to go down. Surplus agreements could be entered into between the taxing bodies and the City.
| RESULT: ADOPTED [5 TO 2]
MOVER: John P Abel, Councilman SECONDER: Karen Hohimer, Councilwoman AYES: Garrison, Hohimer, Orrick, Abel, Luft NAYS: Rick Hilst, Dave Nutter |
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2944-20/21 Designating the Redevelopment Project Area for the Pekin Court Street TIF District. Mr. Rothert stated that this was the second of the three to create the TIF and to designate properties.
| RESULT: ADOPTED [5 TO 2]
MOVER: John P Abel, Councilman SECONDER: Karen Hohimer, Councilwoman AYES: Garrison, Hohimer, Orrick, Abel, Luft NAYS: Rick Hilst, Dave Nutter |
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2945-20/21 An Ordinance Adopting Tax Increment Allocation Financing for the Pekin Court Street TIF District. Mr. Rothert stated that this was the third required ordinance to create the TIF District.
| RESULT: ADOPTED [5 TO 2]
MOVER: John P Abel, Councilman SECONDER: Karen Hohimer, Councilwoman AYES: Garrison, Hohimer, Orrick, Abel, Luft NAYS: Rick Hilst, Dave Nutter |
Mr. Rothert explained to Council that Sud was in the process to submit their proposals to the State for a lease agreement and that the amendment Council approved last month was an extension to improve the property by the end of the year.
| RESULT: ADOPTED [5 TO 2]
MOVER: Dave Nutter, Councilman SECONDER: John P Abel, Councilman AYES: Garrison, Hohimer, Orrick, Abel, Luft NAYS: Rick Hilst, Dave Nutter |
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2947-20/21 An Ordinance Providing for and Approving the Fifth Amendment to the Pekin Central Business District TIF District Redevelopment Project Area, Plan and Projects. Mr. Rothert summarized the request and stated that the recently created Court Street TIF District contained parcels from both the Central Business District TIF District and Southern Industrial Park TIF District. Overlapping parcels therefore needed to be removed from those TIF districts.
Councilmember Orrick questioned how the reimbursements would be handled and whether they were in District 108 or Rankin. Mr. Rothert stated that they were in District 108 and that there would be no change.
| RESULT: ADOPTED [5 TO 2]
MOVER: Lloyd Orrick, Mayor Pro-Tem SECONDER: Michael Garrison, Councilman AYES: Garrison, Hohimer, Orrick, Abel, Luft NAYS: Rick Hilst, Dave Nutter |
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2948-20/21 An Ordinance Providing for and Approving the Fourth Amendment to the Pekin South Industrial Park TIF District Redevelopment Project Area, Plan and Projects. Mr. Rothert stated that this was again the creation of a TIF containing overlapping properties that needed to be removed.
| RESULT: ADOPTED [5 TO 2]
MOVER: Lloyd Orrick, Mayor Pro-Tem SECONDER: Karen Hohimer, Councilwoman AYES: Garrison, Hohimer, Orrick, Abel, Luft NAYS: Rick Hilst, Dave Nutter |
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2949-20/21 An Ordinance Declaring Surplus Revenue in the Pekin South Industrial Park Special Tax Allocation Fund and Authorizing Payment of that Surplus Revenue to the Tazewell County Treasurer for Distribution to Affected Taxing Districts on a Pro Rata Basis for Tax Year 2019 Payable 2020. Mr. Rothert stated that On October 22, 2012, the City of Pekin adopted Tax Increment Financing for the Pekin South Industrial Park Conservation Area Tax Increment Financing District. On October 9, 2012 the City entered into an Intergovernmental Agreement with Pekin Public School District No. 108, Rankin Elementary School District No. 98 and Pekin Community High School District No. 303 for a declaration of a surplus for that area in the amount of 25%. This was a contractual agreement to declare that annual surplus every year amounting to $22,599.60. Mr. Rothert explained that it would be distributed to Tazewell County Treasurer for redistribution to the taxing districts.
Councilmember Nutter questioned if the reimbursement that came out of the CBD happened at the same time every year as the Southern one.
Mr. Rothert stated yes but clarified that it was not a surplus but a reimbursement of capital costs. The TIF consultants send the City the amount based on the intergovernmental agreement of what should be reimbursed and the City then would request validation of capital expenditures from the school districts to reimburse them.
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Lloyd Orrick, Mayor Pro-Tem SECONDER: John P Abel, Councilman AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
City Manager, Mr. Mark Rothert, presented the request to Council to approve and adopt Ordinance No. 2950-20/21 Authorizing Donation of Surplus Personal Property. Mr. Rothert summarized the request and stated that the City of Pekin Fire Department had purchased and installed new, podded sleeping units for firefighters in its fire stations as part of its COVID-19 renovations. As a result of such renovations, the City had no further need or use for the bed frames and
mattresses in use by the Fire Department prior to the renovation. The Fire Department desired to donate the unneeded bed frames and mattresses to a charitable organization within the City of Pekin that could repurpose them to help those in the City in need of such items.
Council discussed the total number of units was around 25.
Councilmember Nutter spoke in favor of the agenda item.
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Michael Garrison, Councilman SECONDER: Karen Hohimer, Councilwoman AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
City Manager, Mr. Mark Rothert, presented the agenda item to Council to approve and adopt Ordinance No. 2951-20/21 Providing for the issuance of not to exceed $25.6M General Obligation Refunding Bonds. Mr. Rothert explained that the purpose of the ordinance was to refinance certain outstanding IEPA loans of the City. The bond ordinance was to provide for the levy and collection of direct annual taxes sufficient to pay the bonds, abatement of taxes if sufficient revenues existed, authorization of the sale of the bonds to the purchaser thereof, and provisions for the execution of an escrow agreement in connection with such issuance. Mr. Rothert continued to explained that since the original issuance of the IEPA loans, market interest rates had become progressively favorable for re financing where the City could recognize interest savings of up to $650K from a refinance. The original IEPA loans were issued to finance improvements to the wastewater treatment plant. Additionally, funding was added to this bond issuance to address the City’s remaining phases of its Combined Sewer Overflow (CSO) project. Bond payments, annually, would be made out of the Sewer Fund. Staff would distribute an RFQ for an underwriter, select an underwriter, and move forward with the bond issuance within the authorized timeframe upon Council approval.
Councilmember Hilst questioned if the IEPA loan would strictly be paid back out of the sewerage fund and not any other funding sources.
Finance Director, Mr. Bruce Marston, explained that the bond payments for both the refinancing of IEPA loans and additional funds that were withdrawn for the CSO project would be paid out of the sewerage funds.
City Engineer, Ms. Josie Esker, added that the $5.6M was for Phase 3A part of the project that was underway and that Phase 3B and 3C still needed to be completed and was not part of the current cost. Ms. Esker explained that the intention was to do another IEPA loan.
Councilmember Hilst also questioned how much money was in the sewerage fund reserves. Mr. Marston stated that the cash reserves was approximately $6.5M and fluctuates throughout the fiscal year with revenues and expenditures. Mr. Marston added that the Environmental Protection Agency required the City maintain a certain cash balance and that the approval of the agenda item would eliminate that requirement.
Councilmember Hilst questioned if the City could then use the sewerage fund reserves to pay ourselves back instead of the bank. Ms. Esker reminded Council that the City had quite a few projects during the fiscal year.
Council also discussed the cost savings over the life of the bond versus a conventional loan and the hope to receive a very low interest rate.
Ms. Esker confirmed that the $5.6M was to cover the Leander contract.
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Rick Hilst, Councilman SECONDER: Lloyd Orrick, Mayor Pro-Tem AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
City Manager, Mr. Mark Rothert, presented the agenda item to Council to approve and adopt Resolution No. 204-20/21 Approve Intergovernmental Agreement with Tazewell County for Planimetric Data. Mr. Rothert summarized the request and explained that the purpose was to obtain planimetric data of the City’s roads, sidewalks, inlets and manholes. The City would receive this data at a drastically reduced price (20% local match) by partnering with neighboring communities and due to a regional grant obtained by Tri-County Regional Planning. Planimetric data would provide a GIS map with line segments showing the edges of pavement, sidewalks, manholes, and inlets. Having this data would save staff time when putting together roadway and sidewalk plans. Also, the data was needed for the City’s future ADA transition plan, and it was much more cost effective to obtain the data as part of this grant.
Council discussed how the current GIS system did not have the detailed line work or tools to estimate quantities of existing sidewalks for repair. Ms. Esker stated that adding signs was not part of the contract but believed a map of that already existed.
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Rick Hilst, Councilman SECONDER: Lloyd Orrick, Mayor Pro-Tem AYES: Garrison, Hilst, Hohimer, Nutter, Orrick, Abel, Luft |
City Manager, Mr. Mark Rothert, presented the discussion to Council regarding future road maintenance. Mr. Rothert provided Council a large 11 x 17 spreadsheet showing the different funding available to the city, the five grants received for transportation, and current or proposed projects.
City Engineer, Ms. Josie Esker, stated that her priorities mostly related to future engineering from Derby Street to the downtown area. Ms. Esker added that the spreadsheet offered proposed funding options. Ms. Esker continued to discuss the different types of funding for a few of the projects.
Mr. Rothert, summarized the CBD TIF funds.
Councilmember Orrick spoke in favor of doing an engineering study in 2021 for Derby Street and getting all the sidewalks downtown ADA compliant.
Council discussed the Court Street project and how the State caused delays to move the project forward.
Council continued to discuss the projects listed on the spreadsheet and the costs associated with each.
Ms. Esker felt it was cohesive to do the engineering upfront.
| RESULT: PRESENTED |
City Manager, Mr. Mark Rothert, presented the discussion to Council regarding a business license ordinance. Mr. Rothert proposed that there would be no cost to the businesses and would be done online to be less burdensome. Mr. Rothert felt
it was important to bring a level of awareness and to be able to communicate with such businesses.
Mayor Luft spoke in favor of the ordinance.
Councilmember Orrick expressed concern that it was not just a registration and would not be in favor of a license, but only a registration.
City Attorney, Ms. Katherine Swise, stated that the ordinance was drafted as a license subject to revocation for violations to the code providing another tool to get compliance with other parts of the code. Ms. Swise stressed that revocation of license was a harsh penalty and not taken lightly or done unless other avenues had not been successful. Addressing a daily penalty for failing to register could be added for a registry similar to the golf cart or motorized bike ordinance.
Mayor Luft informed Council of past issues with businesses such as massage parlors and businesses holding a liquor license.
Police Chief, John Dossey, explained to Council the difference between chronic nuisance and citing a business with a license for code violations. Chief gave the example of a business on Court Street in which had a secondhand dealer license and had gone years with local ordinance tickets. The license was suspended or revoked and the property was able to get cleaned up providing another level of authority for that one business that puts up a fight. Chief spoke in favor of creating a license with revocation for the one business that defiantly disobeys the code, but felt a registry was also good.
Council discussed how property maintenance codes do not shut down businesses immediately, the burden of submitting a floor plan and supporting documentation, and how other cities had addressed the issue.
Ms. Swise added that submitting a floor plan was helpful to the fire department and a hearing would be provided prior to a license being revoked. Ms. Swise also stated that under chronic nuisance the property owners would be responsible, not the business.
Councilmember Orrick expressed desire to amend the code in lieu of creating a new code ordinance.
Councilmember Abel felt it did not make a difference but felt the City would have more control with the option of a license.
Councilmembers Hohimer, Nutter and Garrison spoke in favor of creating a registry with minimal paperwork.
Councilmember Hilst stated he would like feedback from business owners.
Mayor Luft directed Council to provide any input to the City Manager on whether they felt an ordinance or registry would be more appropriate by the end of the day Friday.
| RESULT: PRESENTED |
City Manager, Mr. Mark Rothert, announced plans to open City Hall on Friday forseeing the region moving into Tier 2.
Councilmember Orrick commented on the drive-thru at Dunkin Donuts backing onto Court Street and requested something be done.
Councilmember Nutter expressed appreciation to the Street Department cleaning up the down trees from the ice storm and requested a status update on BC BBQ.
Mr. Rothert stated that the developer was notified that there was a repayment option required.
Councilmember Hilst requested a status update on hiring a public works director.
Mr. Rothert advised that it was ongoing and would like to see more applications as it had been a challenge to fill.
Councilmember Hilst also inquired about the property on Elizabeth Street and requested an accounts receivable report be provided monthly.
Mr. Rothert stated that a lease agreement was needed with the South Tower and the City was looking to sell.
Mayor Luft welcomed everyone to the year 2021.
EXECUTIVE SESSION 5 ILCS 120/2 (C) IF APPLICABLE ADJOURNMENT
The meeting was closed at 7:52 PM
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