REGULAR CITY COUNCIL MEETING
Lincoln City Hall,Council Chambers 700 Broadway Street ] Lincoln, Illinois
Monday, November 19,2018
The Regular Meeting of the City Council of Lincoln was called to order by Mayor Seth Goodman at 7 p.m., with proper notice given. City Clerk Peggy Bateman called roll.
Present:
Alderman Steve Parrott Alderman Tracy Welch Alderman Ron Fleshman Alderwoman Michelle Bauer Alderman Ron Keller Alderwoman Heidi Browne Alderman Jeff Hoinacki Alderman Dayne Dalpoas
Staff Present:
City Clerk Peggy Bateman City Attorney John Hoblit Treasurer Chuck Conzo Fire Chief Mark Miller Police Chief Paul Adams
Building and Safety Officer Wes Woodhall Shawn Wright, Veolia Project Manager
Staff Absent:
City Administrator Elizabeth Kavelman Streets Superintendent Walt Landers
Presiding:
Mayor Seth Goodman
Public Comment:
Mayor Goodman called upon citizens registered to speak. Mr.Jack Rooney came forward regarding the Lincoln Movie Theatre on Kickapoo Street. Mr. Rooney began to talk about the theater, referred to as MMIL properties or MMIL entertainment. He said he's been an investor in the project. He said Mr. David Lanterman has walked away from the projects, however, he does not have experience working with movie theaters or properties.
He said he's taken a snapshot of what things look like, he said there are 4-6 ideas they could implement right now to make the theater profitable. He said as far as the theater goes, he's all speed ahead, his intent is to pay off the taxes and the TIF loan.He thought the properties would be a little better-there are back taxes. He said the theater can be renegotiated with the bank, but the properties are spread apart amongst a few banks. He said it looks like a challenge.
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He called for questions. Alderman Keller wanted to hear his vision. Mr. Rooney said he was lucky when ramping up to do this-he said Marilyn Altman came into his life at a good time. She and he have a shared vision, she is helping him. He said Lincoln has had a lot of challenges over the past 25 years or so. He said they've assembled a vision brochure. He said the vision for the properties-the properties in the Depot corridor. He says Lincoln is in a special location. He wants to see it as a destination point. He'd like to see more retailand tourism opportunities.
Alderman Fleshman wanted to know how many properties are in questions. He said 25, however, Mrs. Altman said 36. Alderman Welch wanted to know how many have had their taxes sold in the last few years. He wanted to know if the vision accounted for the amount of money it would take to repay the taxes and bring the buildings up to rentable condition.
He said he feels good about the theater, but the tax injection would be a big investment. He said they control or own most of the properties on Chicago Street. He again said it would be a tall order to come up with the cash to pay off the taxes in the next six months. He said some of the properties went toward the payment of the theater.
Alderman Welch said since the article came out, a lot of people have been talking. He wanted to know about turning the theater into a 501(c}(3}. He said he was fine with that idea. Alderman Welch wanted to clarify that it would be tax exempt. And a tax exemption would not go toward repaying the TIF.
Mr. Rooney said the theater is decent. He said they've identified several revenue increase opportunities and cost reduction pieces. He said the property side of things is tough. He also brought up utilizing volunteers to run theater operations.
Treasurer Conzo wanted Mr. Rooney to clarify something Mr. Rooney had said about taxes and the TIF increment. Mr. Rooney then passed out materials about the theater's vision.
Next, Mrs. Wanda Lee Rohlfs came forward to discuss the TIF and a potential forensic audit. She said when looking at the $176,167. 50 was to be paid in 2018, and Treasuer Conzo agreed that was the amount for 2019 the amount would be $173,317.50 according to the schedule. Her question to Treasurer Conzo was . . .if the money coming in from the tax increment financing would be able to make that payment.
Treasurer Conzo said it would cover that based on whatever is in the account, and that the city already had the money in there from a transfer from the GRF.
He said that amount actually came from the TIF increment. He said if something were to happen either way that would affect the tax increment.
She wanted to know what the balance would become-once everything is paid for the year.
He said it would be down less than $1,000 and there is still an annual bond registration fee. He said that would pretty well finish that off. She said these are questions out in the community that need to be explained-sometimes explained two to three times. She then wanted to know about exemptions for the people within the TIF District-to not pay the tax. He said if properties are removed from the TIF District, or if the properties are in the enterprise zone.
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She then brought up property sales where the buyer would chose to be TIF exempt. She said the answer is yes. She said every time a property is removed from the TIF District, the money brought in by the property role is lessened.
She asked if we go past 2020, do you have any projections if the city would still be able to pay the
$175,317.50. He said he had no way of knowing that at this point. She then wanted to know where the money is coming from if the city does not have the money to make the obligation on the bond. He said the city would have to take that money from the GRF. -the Telecommunications Tax (pledged when then TIF ordinance was passed, about $23,000 a month). She said, but it has been declining. He said yes, it was up in the mid-40's at one time.
She said the citizens are looking at the downside of potentially looking at using more GRF funding. He said it's possible. She said we know the GRF goes to cover a bunch of different areas. She said she was glad the 501(c)(3) was brought up as well as it would take a big chunk of funding out of the TIF.
She then wanted to bring up the forensic audit. She said the council took a vote to request an audit in March of 2016. She said it was a, "yes" vote that the council was requesting a forensic audit. She wanted to know what happened to that.
Alderwoman Bauer asked, "A forensic audit of what?" Mrs. Rohfls said-of the chamber. Alderwoman Bauer said they filed for bankruptcy and she was not sure if they had the rights to do it.
Mrs. Rohlfs wanted to know what happened to it. Alderwoman Bauer discussed the duration of time between when the vote was taken and when the chamber filed for bankruptcy.
Mrs. Rohlfs said just because someone does that, does that mean they cannot request an audit, that they could just take off with the money if that was found to be true. Alderwoman Bauer said she had no further comment. Mrs. Rohlfs continued on saying these are questions out in the community.
Alderman Welch said the new city attorney could look into it, however they are $80,000 in the hole. He said if Mr. Hoblit comes back and says it would cost $25,000 to pursue the audit-would this be a cost the taxpayers would want to endure.
Mrs. Rohlfs then mentioned going to the Illinois State Police. Mr. Hoblit said he could look into it. There being no further public comment, Mayor Goodman then moved to the Consent Agenda.
Consent Agenda by Omnibus Vote:
A.Payment of Bills
B.Approval of November 5,2018 Regular City Council Meeting minutes
C.Request from Jason & Kari Erickson to provide carriage rides on the Courthouse Square from approximately Saturday, Nov.24, 2018 through Sunday, 23, 2018
D.Request from the Logan County Tourism Bureau to sponsor the Annual Downtown Lincoln Christmas Parade in the amount of $500
E.Approval of the City Council Meeting Schedule for 2019
G.Approval of the Holiday Schedule for 2019
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Alderman Welch made a motion to approve, seconded by Alderman Keller. Mayor Goodman called for further discussion, there being none, City Clerk Bateman called roll.
Yeas: (8) Alderman Steve Parrott, Alderman Tracy Welch, Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki, Alderman Dayne Dalpoas
Nays: None Absent: None
Mayor Goodman moved to other items on the agenda.
Ordinance and Resolution:
- Resolution 2018-360 authorizing Police Chief PaulAdams to sign documents pertaining to the Illinois State Police Central Illinois Enforcement Group (CIEG)
Alderwoman Browne made a motion to approve, seconded by Alderman Dalpoas. Mayor Goodman called for further discussion, there being none, City Clerk Bateman called roll.
Chief Adams opened discussion about the resolution.There being no further discussion, City Clerk Bateman called roll.
Yeas: (8) Alderman Steve Parrott, Alderman Tracy Welch, Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki, Alderman Dayne Dalpoas
Nays: None Absent: None
Mayor Goodman moved to other items on the agenda.
Reports:
- City Treasurer Report for October, 2018
Treasurer Chuck Conzo opened discussion saying the city is close to the end of the year and wanted to outline some spots in the budget where the city has exceeded the budgeted amounts, and where some items are well below 50 percent. He said some items are only paid once or twice during the year.
He said pages 3-5, balances are in good shape. He said keep in mind there are some bond payments coming up, including the much discussed TIF Bond. He said Mrs. Rohlfs had given that amount several times so he would not go back over that. He then shared the balance of the Alternate Revenue Bond of the sewer plant. He said the Alternate Revenue Bond is due-for the police
station-it's the largest payment during the fiscal year.
Alderman Fleshman asked about the Motor Fuel Tax-on the expense portion. He said he saw there was a credit listed of around $72,000.He asked if the credit was from the State of Illinois. Mr. Conzo said, "yes, that was a credit there and there was also a transfer during that month as well," as a result of the Illinois Department of Transportation audit where the city had to reimburse the Motor Fuel Tax.
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Alderman Fleshman asked about the recent work that had been done-sidewalk and roadwork. He wanted to know if any payment had been made on this yet. Mr. Conzo said some of the projects were not yet complete. There being no further questions, Mayor Goodman moved on to City Clerk Peggy Bateman.
B. City Clerks Report for October, 2018
City Clerk Peggy Bateman opened discussion. She began by listing off sewer receipts. The city received a check from Lincoln Correctional Center in the amount of $15,457.20.
She said the city is still collecting trash although they are done billing the trash, in October they collected 779 households and the city received $934.80. The city paid $10,792.46 to Area Disposal. She said there are still over 200 households left to collect on trash. She said the due date is tomorrow, Nov. 20, they are striving for the Fiscal Year to be done so the little nightmare will be over.
Alderman Welch asked if the outstanding accounts for trash would be turned over to collections. She said they've sent out straight balances due on trash. She said there was a lot of confusion about the sewer payments, and that people were unsure of why they still owed for trash. She said once these were sent out, people have been paying. She did not want to turn anyone over to collections. She said hopefully we can just knock this out without doing anything like that.
C. Department Head Reports for October 2018
Mayor Goodman said department head reports are on file or will be soon.There being no further discussion, City Clerk Bateman called roll.
Yeas: (8) Alderman Steve Parrott, Alderman Tracy Welch, Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki, Alderman Dayne Dalpoas
Nays: None
Absent: None
Mayor Goodman moved to other items on the agenda.
New Business/Communications:
- Approval of the 2019 Health Insurance Renewal with Health Alliance Medical Plan
Alderman Welch made a motion to approve, seconded by Alderman Hoinacki. Alderman Fleshman asked if this was put out for bid. Alderwoman Bauer asked if Mrs. Nancy Shaub wanted to weigh in on why the item was not put out for bid. She said they were not requested to do so.
Mayor Goodman called for further discussion, there being none, City Clerk Bateman called roll.
Yeas: (8) Alderman Steve Parrott, Alderman Tracy Welch, Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki,Alderman Dayne Dalpoas
Nays: None
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Absent: None
Mayor Goodman moved to other items on the agenda.
B. Approval of an annual contribution of $1,000 per year for three years to the Land of Lincoln CEO Program for high school students (tabled Nov. 5, 2018)
Alderman Hoinacki made a motion to remove it from the table, seconded by Alderwoman Bauer. Mayor Goodman called for further discussion, there being none, City Clerk Bateman called roll.
Yeas: (8) Alderman Steve Parrott, Alderman Tracy Welch,Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki,Alderman Dayne Dalpoas
Nays: None
Absent: None
Alderman Hoinacki then made a motion to approve the contribution of $1,000 for three years, seconded by Alderman Keller. Alderman Parrott asked if this is something the council wanted to do for the next three years, or ask the program organizer to come forward every year to request $1,000. He wanted to know what was typical of the city council to do over a three year period.
Alderman Keller said every year, it is up to the budget, however, it is not guaranteed for three years. Alderman Parrott brought up the taxing base available to support the school system.
He brought up that the community is probably wondering why funds are going to run this program when there is a school system that has a taxing base that runs programs at the high school and L Tech. He wanted to establish that it would not be a given from year to year if it was not in the budget. Alderman Welch said its right there on the mark-the $1,000 for the contribution.He said based on the success the program has seen, the city has seen more success coming out of that program with the $1,000 sponsorship than the city has seen in other programs they have contributed to with tens of thousands of dollars. He said he thought it was at least worth supporting this year.
Mayor Goodman called for further discussion, there being none, City Clerk Bateman called roll.
Yeas:(8) Alderman Steve Parrott, Alderman Tracy Welch,Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki, Alderman Dayne Dalpoas
Nays: None
Absent: None
Mayor Goodman moved to other items on the agenda.
C. Approval of the installation of underground wiring under Broadway Street in an amount not to exceed $1,605
Alderwoman Browne made a motion to approve, seconded by Alderman Welch.Alderman Welch asked Mayor Goodman to share information on the underground wiring for clarity. Mayor Goodman said the wiring would serve all events downtown. Alderwoman Browne wanted confirmation that Fitzpatrick Electric was doing the work. He said, "Yes."
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Mayor Goodman called for further discussion,there being none, City Clerk Bateman called roll.
Yeas: (7) Alderman Steve Parrott, Alderman Tracy Welch, Alderman Ron Fleshman,Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki,Alderman Dayne Dalpoas
Nays: None
Absent: None
Abstained: (1) Alderwoman Michelle Bauer
Mayor Goodman moved to other items on the agenda.
D. Approval of the purchase of Star Com Radios for Lincoln Fire and Pollce Departments in the amount of $22,875
Alderwoman Browne made a motion to approve, seconded by Alderwoman Bauer. Chief Miller opened discussion about the need for improvements to the communication systems in the city. He said this will cover programming costs, and next month the costs go up 18 percent. He said he appreciated the support.They would not see radios for a couple of months.
Alderman Keller asked about current radios and how these could replace their current collection and possible sell their existing radios to other communities. Chief Miller talked about selling radios to recoup some costs, they have approximately 25 radios. He said they could try to help out some of the other communities. Mayor Goodman called for further discussion, there being none, City Clerk Bateman called roll.
Yeas: (B) Alderman Steve Parrott, Alderman Tracy Welch,Alderman Ron Fleshman, Alderwoman Michelle Bauer, Alderman Ron Keller, Alderwoman Heidi Browne, Alderman Jeff Hoinacki, Alderman Dayne Dalpoas
Nays: None
Absent: None
Mayor Goodman moved to other items on the agenda.
Announcements:
Mayor Goodman asked if anyone had any announcements.
- Open Arms Christian Fellowship had their Thanksgiving Dinner on Sunday, Nov. 18-they had over 900 attendees
- Sorrento's, Bard Optical, and Anytime Fitness held ribbon cuttings and reopening's over the weekend and on Monday
- Mayor Goodman promoted Small Business Saturday, and carriage rides downtown
- The Santa Tree in city hall has four donation tags remaining, as well as the ME Realty office
- Knight's of Columbus is holding a shop one stop event on Small Business Saturday, there will be over 30 different booths with crafters and in-home business owners
Adjournment:
There being no further business to come before the City Council of Lincoln,Alderman Welch motioned to adjourn, seconded by Alderman Dalpoas. Mayor Goodman adjourned the meeting at 7:47 p.m.
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Upcoming Meetings:
Committee of the Whole ITuesday, Nov. 27, at 7 p.m. Regular Meeting I Monday, Dec. 3, at 7 p.m.
Respectfully Submitted By:
Alex Williams, Recording Secretary
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City of Lincoln