City of Mt. Vernon City Council met Aug. 17.
Here is the minutes provided by the council:
The Mt. Vernon City Council met for a Regular City Council Meeting at the Rolland W. Lewis Community Building, Veterans Park, 800 South 27th Street, Mt. Vernon, Illinois.
Mayor John Lewis called the meeting to order.
Pastor Harold Quick from the West Salem Trinity United Methodist Church gave the Invocation.
The Pledge of Allegiance was recited.
ROLL CALL
Roll call showed present: Council Member Ray Botch, Council Member Joe Gliosci, Council Member Donte Moore, and Mayor John Lewis. Absent: Council Member Mike Young
PRESENTATION OF JOURNALS
The Journal for the August 03, 2020 Regular City Council Meeting was presented for approval.
Council Member Donte Moore motioned to approve the Journal as presented. Seconded by Council Member Joe Gliosci. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
VISITORS/CITIZENS REQUESTS/ADDRESSES FROM THE AUDIENCE
No comments were heard.
APPROVAL OF CONSOLIDATED VOUCHERS FOR ACCOUNTS PAYABLE
The Consolidated Vouchers for Accounts Payable were presented to Council for approval.
Council Member Ray Botch motioned to approve the Consolidated Vouchers for Accounts Payable in the amount of $1,707,937.99. Seconded by Council Member Joe Gliosci. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
BIDS AND QUOTES
City Manager Mary Ellen Bechtel presented the bid results for the Casey Avenue Sidewalk and Curb Project. Six bidders supplied bids and the low bidder was Bevis Construction for $40,928.04. The bid came in under the Engineer’s estimate and work will begin as soon as possible.
Rollie Excavating, Woodlawn, IL $41,843.50
Guinzy Construction, Ashley, IL $79,916.41
Civil Construction, Centralia, IL $52,844.47
KRB Construction, Trenton, IL $63,443.00
Bevis Construction, Mt. Vernon, IL $40,928.04
T & L Construction, Centralia, IL $47,336.50
Council Member Ray Botch motioned to accept the low bid from Bevis Construction in the amount of $40,928.04 for the Casey Avenue Sidewalk and Curb Project. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
CITY MANAGER
City Manager Mary Ellen Bechtel presented for Council’s permission to bid the IEPA 2020-2021 Water Main Replacement Project. The project replaces 26,625 linear feet of water line. Financing will be from the IEPA. The expected interest rate is 1% with a 5% forgiveness of $122,000. Council Member Donte Moore thanked everyone for their work in selecting water mains all over the City. Council Member Ray Botch stated that the most critical water mains were identified and selected. Bechtel stated that this is a $2.6 million project that includes the replacement of the water main under I-57. Council Member Ray Botch explained that this project will take one construction season. The location descriptions of the proposed water main relocations are:
| Roadway | Limits | Length(ft) | Size of Main (in) | |
| 1 | Waterworks Rd. | Appellate Courthouse to L&N Tower | 2100 | 14 |
| 2 | Fountain Pl. | Rte. 37 to the end | 1450 | 8 |
| 3 | 17th St. | Logan St. to Herbert St. | 1710 | 10 |
| 4 | Cherry St. | 27th to Mannen (incl. cul-de-sac) | 1550 | 6 |
| 5 | 24th St. | Wescott to Broadway | 5280 | 6 |
| 6 | llberry | S. 42nd to S. 45th across 1-57 | 2700 | 10 |
| 7 | Short St. | Shawnee to Welkins | 600 | 8 |
| 8 | Welkins | Short St. to Perkins Ave. | 700 | 8 |
| 9 | Warren Ave. | Salem Rd. to Tolle Rd. | 2880 | 6 |
| 10 | 8th/Johnson Alley | Opdyke to Broadway | 1600 | 14 |
| 11 | Harlan Rd. | Brownsville to past Melton | 2725 | 8 |
| 12 | 19th St. | Broadway to Perkins Ave | 3330 | 3 |
City Manager Mary Ellen Bechtel presented for Council’s permission to bid the IEPA 2020-2021 Lift Station 14 and Force Main Replacement Project. Bechtel explained that the City has been working on this project since 2015. It is a $3.2 million dollar project with a 30% debt forgiveness ($960,000). Financing will be from the IEPA. Council Member Ray Botch explained that this project will take two construction seasons.
Council Member Joe Gliosci motioned to give permission to bid the IEPA 2020-2021 Lift Station 14 and Force Main Replacement Project. Seconded by Council Member Ray Botch. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
City Manager Mary Ellen Bechtel presented for Council’s permission to seek Qualifications for the Design of a Replacement Water Tower at the L & N Water Tower Site. Bechtel explained that the next IEPA Application will be for this project. If Requests for Qualifications are made, the engineering costs can be included into the project and in the value of the loan forgiveness.
Council Member Ray Botch motioned to give permission to seek Qualifications for the Design of a Replacement Water Tower at the L & N Water Tower Site. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
CITY ATTORNEY
City Attorney David Leggans presented for First Reading an Ordinance Authorizing the Issuance of General Obligation Improvement and Refunding Bonds. City Manager Mary Ellen Bechtel explained that the proposed Ordinance sets the parameters for issuing the bonds for the purpose of refunding existing 2010 and 2012 Bonds as well as issuing additional new money for roads and capital improvements. Finance Director Steve Tate gave a presentation on the details of the refunding and new debt issue.
Background
• Current Bonds were issued in 2010 and 2012 – Call Dates: 11/01/2020 and 12/15/2020 respectively (callable 90 days before call date)
• Series 2010A (Recovery Zone Bonds) - $3,440,000 Par Amount, 3.39%, Final Maturity Date: November 1, 2030
• Series 2010B (Build America Bonds) - $5,645,000 Par Amount, 3.39%, Final Maturity Date: November 1, 2030
• Series 2012 - $35,555,000 Par Amount, 3.63%, Final Maturity Date: December 15, 2032
Refunding Analysis
• Existing bonds principal & interest paid through final maturity date equals: $40,331,292
• Refunding existing bonds principal & interest paid through final maturity date equals: $37,059,735
• Total estimated interest savings by refunding: $3,271,557
• Term length remains the same – 12 years
Additional Borrowings
• $600,000 to be used for the new Post Office
• Payments made from Downtown TIF Fund
• 10-year term (coincides with the TIF expiration)
• Total principal & interest through maturity: $668,271
• Average annual payments: $66,827
• $12,400,000 to be used for road and other capital projects
• Payments made from Home Rule Sales Tax Fund
• 20-year term
• Total principal & interest through maturity: $16,552,782
• Average annual payments: $827,639
Additional Borrowings Summary
• Total new money: $13,000,000
• Total principal & interest through maturity: $17,221,053
• Interest only on new money: $4,221,053
• Interest Savings on refunding: $3,271,557
• Difference between interest on new money and refunding: $949,496
Refunding and New Money Summary
• $36,130,000 Par Amount, 1 Bond Issue
• A+ Stable Rating from Standard & Poor’s - confirmed August 5, 2020
• All Inclusive Cost: 2.06% - 2.10%
• Total principal & interest through final maturity: $54,280,788
• Average annual payments for the first 12 years: $3,729,566
• Average annual payments for the last 8 years: $860,788
Council Member Donte Moore clarified that in twelve (12) years, the 2010 and 2012 Bonds will be off the books and the annual payment is reduced from $3,729,566 to $860,788 for the next eight (8) years. In twenty (20) years, all the bonds will be paid off.
Council Member Ray Botch stated that there will be no tax increase for the new bonds.
Tim King, King Financial Consulting Inc. spoke on the current market conditions. King reported that in the past two weeks the interest rate has been under 2% which is the lowest in history. He urged the Council to move quickly to take advantage of the unprecedented low interest rate. City Manager Mary Ellen Bechtel explained that the additional bonds will fund many projects including some with engineering completed. The largest project is the Frontage Road, South 44th Street, Mateer Drive, Ilbery Road, and Heritage Road Project. This project will attract potential developments and will give the City traffic options around when Exit 95 is under construction. Other projects include the expansion of 42nd Street, a new turn lane at 42nd Street and State Route 15, and a connector road from Potomac to Davidson.
Council Member Joe Gliosci explained that the bond interest rates are fixed and not variable over the life of the bonds.
Council Member Donte Moore stated that the 2010 Bonds have Motor Fuel Tax, Food & Beverage Tax, Telecommunication Tax, and 1⁄2% Sales Tax attached. Moore asked if the various taxes would be removed when the bonds are paid off. Bechtel explained that it would be up the 2033 Council to decide.
Council Member Ray Botch motioned to suspend the rules on voting on an Ordinance. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
Council Member Ray Botch motioned to adopt Ordinance #2020-31, an Ordinance Authorizing the Issuance of General Obligation Improvement and Refunding Bonds. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
City Attorney David Leggans presented for First Reading an Ordinance Declaring Surplus Municipal Property. The surplus property auction will be held on September 15, 2020 at the Woodlawn Auction Facility.
Council Member Ray Botch motioned to suspend the rules on voting on an Ordinance. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
Council Member Donte Moore motioned to adopt Ordinance #2020-32, an Ordinance Declaring Surplus Municipal Property. Seconded by Council Member Joe Gliosci. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
City Attorney David Leggans presented a Resolution to Approve and Adopt a New Purchasing Manual for the City of Mt. Vernon. City Manager Mary Ellen Bechtel explained that the previous manual was issued in 1998. The biggest change is that projects over $25,000 will go through the formal bidding procedure with Mayor and Council approval. For projects over $2,500, quotes will be required.
Council Member Joe Gliosci motioned to approve the Resolution to Approve and Adopt a New Purchasing Manual for the City of Mt. Vernon. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
City Attorney David Leggans presented a Resolution to Request an Illinois Department of Transportation (IDOT) Permit to Construct an 18” Force Main Under IL-142. This request supports the Lift Station 14 Project. There is no cost to the City.
Council Member Donte Moore motioned to approve the Resolution to Request an Illinois Department of Transportation (IDOT) Permit to Construct an 18” Force Main Under IL-142. Seconded by Council Member Joe Gliosci. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
City Attorney David Leggans presented a Resolution to Approve a Memorandum of Understanding with the Illinois Law Enforcement Alarm System (ILEAS) and the City of Mt. Vernon. City Manager Mary Ellen Bechtel explained that ILEAS purchases vehicles to provide prompt responses to emergencies, disasters, and other calls for law enforcement mutual aid. They locate the vehicles in various regions throughout the State. Police Chief Trent Page stated Mt. Vernon currently has a 2011 Bearcat which will be replaced with the 2020 Lenco Bearcat.
Council Member Ray Botch motioned to approve the Resolution to Approve a Memorandum of Understanding with the Illinois Law Enforcement Alarm System (ILEAS) and the City of Mt. Vernon. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
MAYOR
No comments were heard.
CITY COUNCIL
Council Member Donte Moore stated that City of Mt. Vernon and Jefferson County residents need to complete their 2020 Census. A Census representative will be at City Hall on Wednesday and Thursday from 10 a.m. to 2 p.m. to assist residents. Census workers are going door to door from 9 a.m. to 9 p.m. to households who have not completed their census. He urged the residents to do their duty. The last day to complete the Census is September 30, 2020.
VISITORS/CITIZENS REQUESTS/ADDRESSES FROM THE AUDIENCE
No comments were heard.
EXECUTIVE SESSION
No Executive Session was held.
ADJOURNMENT
Council Member Joe Gliosci motioned to adjourn. Seconded by Council Member Donte Moore. Yeas: Botch, Gliosci, Moore, and Lewis. Absent: Young.
The meeting was adjourned at 7:42 p.m.
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