The Rock Island City Council met in Study Session at 5:00 p.m. on Monday, January 13, 2003, in the Personnel Conference Room of Rock Island City Hall. Present were Mayor Pro Tem Terry M.A, Brooks, presiding, and Aldermen , David R. Conroy, John E. Bauersfeld, Evelyn “Evie” R. White, and Frank J. Forlini, Jr. Mayor Mark Schwiebert, Alderman Vern Winter, and Alderman Beth Mahlo were absent. Staff present included City Manager John C. Phillips, Personnel Director/Assistant to the City Manager John Thorson, Finance Director Bill Scott, Public Works Director Bob Hawes, Public Works Administrative Assistant Tim Ridder, Police Chief Terry Dove, Library Director Ava Ketter, Community and Economic Development Director Greg Champagne, Planning and Redevelopment Administrator Alan Carmen, Fire Chief Al Sinksen, Parks and Recreation Director Bill Nelson, MLK Director Jerry Jones, Street Supervisor George Seiz, and Union representatives Bruce Rannow and Darrel Unzer.

MISCELLANEOUS ITEMS

City Manager John Phillips announced that Jeanne Paggen’s sister had passed away on January 9, 2003 and that there was a card to be signed by Council members. He further indicated there were several items to be discussed regarding the budget and, if time allows, an Executive Session on Personnel.

BUDGET

City Manager John Phillips began by referencing the budget recommendations that had been discussed previously and on which there was some consensus of action. The discussion this evening would focus on the recommendations that had not been previously discussed and were not among the staff’s recommendations. He noted follow up materials in the Manager’s Memo Packet regarding two of the items Council members had requested and stated two additional items would be distributed during the meeting.

Alderman Bauersfeld opened the discussion stating the two non-staff recommended items he saw listed that may help to balance the budget (in addition to the items of general consensus previously noted) were the reduction in the pay-for-performance program and the reduction of seasonal laborers. Bob Hawes discussed the impact of reducing the number of seasonal laborers—less ditch cleaning, elimination of in-house slurry sealing, elimination of in-house asphalt street patching, and less weed mowing.

John Phillips requested Bill Scott discuss with Council two items distributed in the Manager’s Memo packet, namely the report on General Fund Balances and the Revised Budget Session. Bill reviewed the General Fund Balance report and stressed that the city’s Moody Bond rating was greatly influenced by the policies adopted by Council regarding maintaining fund balances and the use of gaming revenues. It was further noted that the Saturday Budget Sessions have been rescheduled to March 1 and March 8, 2003.

John Phillips requested John Thorson to review the Self Insurance Fund Balance report included in the Manager’s Memo packet. John Bauersfeld questioned why the average of the preceeding five years of annual incurred losses was used. John Phillips replied that the claims could vary widely from year-to-year and five years was selected to provide more stability for the fund balance policy.

John Bauersfeld inquired if the Parks and Recreation fund balance was determined on operating expenditures or total expenditures. Bill Nelson responded that the Parks and Recreation fund balance was based solely on operating expenditures.

John Bauersfeld inquired as to the non-staff recommended Item 4 regarding the Cost Allocation Study-Contribution from Parks. John Phillips replied this had not been recommended by staff because the study was received just prior to the preparation of the budget discussion materials and that the Park Board had not had an opportunity to review the report when the materials were originally distributed.

John Phillips asked if there was a consensus regarding the Pay for Performance item and the decrease in seasonal labor item. Terry Brooks responded he was not in favor of cutting seasonal labor as it would have a detrimental effect on the city’s image.

Alderman Conroy responded that he preferred to maintain the seasonable laborers and was comfortable with transferring more Utility tax monies than recommended to cover this amount.

John Bauersfeld stated that an increase in 1% in the Utility Tax would raise approximately $80,000. He further stated that he felt the money should stay true to the Utility Tax for annual discussions and that the Council should show due diligence in the budget process as staff had already done.

EXECUTIVE SESSION

A motion to adjourn to Executive Session was made by Alderman Conroy and seconded by Alderman White at 6:20 p.m. Motion CARRIED on a Roll Call vote. AYES: AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

A motion to return to Regular Session was made by Alderman Brooks and seconded by Alderman White at 6:40 p.m. Motion CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

ADJOURNMENT

A motion made by Alderman Conroy and seconded by Alderman Forlini to adjourn the meeting CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None. The meeting was adjourned at 6:41 p.m.

____________________________

Carol Gentry, Deputy City Clerk

The Rock Island City Council met in regular session at 6:45 p.m. on Monday, January 13, 2003, in the Council Chambers of Rock Island City Hall. Present were Mayor Pro Tem Terry M.A. Brooks I, presiding, and Aldermen David R. Conroy, John E. Bauersfeld, Evelyn “Evie” R. White, and Frank Forlini, Jr. Absent were Mayor Mark Schwiebert, Alderman Vern Winter, and Alderman Beth Mahlo.

INTRODUCTORY PROCEEDINGS

Mayor Pro Tem called the meeting to Order and led in the Pledge of Allegiance to the Flag of the United States of America. Alderman White gave the Invocation. A motion made by Alderman John Bauersfeld and seconded by Alderman Frank Forlini to approve the Minutes of the meeting of the January 6, 2003 as printed, CARRIED on a Voice vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

PRESENTATION

Agenda Item #6

Mayor Pro Tem Brooks called Diana Hebbeln to the podium to assist with the presentation of the 2002 Commercial Beautification Awards by the Beautification Commission. Winners were: First Place, Rotary Trophy, Café Noire, 1632 Second Avenue; Second Place, Beautification Commission Award, CIRCA 21, 1828 Third Avenue; and Third Place, Mayor’s Award, Parkwild Properties (The Art Place), 1608 Second Avenue.

PROCLAMATION

Agenda Item #7

Deputy City Clerk Carol Gentry read a proclamation declaring Monday, January 20, 2003 as Martin Luther King, Jr. Day. The document was accepted by Martin Luther King, Jr. Center Director Jerry Jones who invited everyone to the memorial service to be held on January 20, 2003 at 10:00 a.m.

RESOLUTIONS

Motion to adopt Tax Abatement Resolutions #8a, #8b, #8c, #8d, #8e and #8f with one motion made by Alderman Bauersfeld and seconded by Alderman White CARRIED on a Roll Call vote: AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

Agenda Item #8a

Resolution authorizing Tax Abatement in the amount of $488,500, such funds to be provided from the revenues of Century Woods Apartments, to pay principal and interest on General Obligation Bonds, Series 1992.

Agenda Item #8b

Resolution authorizing Tax Abatement in the amount of $210,500, such funds to be provided from Water Fund Revenues, to pay principal and interest on General Obligation Bonds, Series 1997.

Agenda Item #8c

Resolution authorizing Tax Abatement in the amount of $1,271,583, such funds to be provided from Water Revenues, Motor Vehicle Parking System Revenues, Centennial Bridge Toll Revenues and General Funds, to pay principal and interest on General Obligation Bonds, Series 1998.

Agenda Item #8d

Resolution authorizing Tax Abatement in the amount of $627,178, such funds to be provided from Wastewater Revenues, Rock Island Fitness and Activity Center Revenues and General Funds, to pay principal and interest on General Obligation Bonds, Series 1999.

Agenda Item #8e

Resolution authorizing Tax Abatement in the amount of $595,220, such funds to be provided from Water Revenues, Sunset Marina Reserves, Special Assessment Revenues, and Park Funds, to pay principal and interest on General Obligation Bonds, Series 2001.

Agenda Item #8f

Resolution authorizing Tax Abatement in the amount of $509,928, such funds to be provided from Tax Increment Financing, Gaming Revenues, Sewer Revenues, and Sunset Marina Revenues, to pay principal and interest on all but the Library portion of the General Obligation Refunding Bonds, Series 2002, and authorizing the Tax Levy sufficient to pay principal and interest due on the Library portion of the issue in the amount of $177,153.

A motion made by Alderman Forlini and seconded by Alderman Bauesfeld to adopt the Tax Abatement Resolutions CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White and Forlini. NAYS: None.

CLAIMS

Agenda Item #9a

KELLY CONSTRUCTION—2002 CATCH BASIN REBUILD PROGRAM

The Deputy City Clerk read a report from the Public Works Department recommending payment to Kelly Construction in the amount of $39,3300.00 for the 2002 Catch Basin Rebuild Program.

Agenda Item #9b

FRANK PETERS SOD COMPANY—2002 SOD AND TREE PROGRAM

The Deputy City Clerk read a report from the Public Works Department recommending payment to Frank Peters Sod Company in the amount of $4,711.60 for the 2002 Sod and Tree Program.

Agenda Item #9c

GENERAL CONSTRUCTORS—FIFTH AVENUE STORM SEWER REPAIR

The Deputy City Clerk read a report from the Public Works Department recommending payment to General Constructors in the amount of $112,499.34 for the Fifth Avenue Storm Sewer Repair.

Agenda Item #9d

McADAM AND ASSOCIATES—2002 50/50 SIDEWALK AND CURB PROGRAM

The Deputy City Clerk read a report from the Public Works Department recommending payment to McAdam and Associates in the amount of $4,373.27 for the 2002 50/50 Sidewark and Curb Program.

Agenda Item #9e

VISU-SEWER CLEAN & SEAL, INC.—2002 SEWER CLEANING AND TELEVISING PROJECT

The Deputy City Clerk read a report from the Public Works Department recommending payment to Visu-Sewer Clean & Seal, Inc. in the amount of $15,642.70 for the 2002 Sewer Cleaning and Televising Project.

Agenda Item #9f

FRYE BUILDERS—GREAT RIVER PLAZA RENOVATION PROJECT

The Deputy City Clerk read a report from the Public Works Department recommending payment to Frye Builders in the amount of $14,318.12 for the Great River Plaza Renovation Project.

Agenda Item #9g

BRANDT CONSTRUCTION—THIRD AVENUE REHABILITATION/RESURFACING PROJECT

The Deputy City Clerk read a report from the Public Works Department recommending payment to Brandt Construction in the amount of $455,268.49 for the Third Avenue Rehabilitation/Resurfacing Project.

Agenda Item #9h

McADAM AND ASSOCIATES—2002 UTILITY PATCHING PROGRAM

The Deputy City Clerk read a report from the Public Works Department recommending payment to McAdam and Associates in the amount of $29,410.20 for the 2002 Utility Patching Program.

Agenda Item #9i

BRENT ANDERSON ASSOCIATES—THIRD AVENUE PARKING STRUCTURE RESTORATION PROJECT

The Deputy City Clerk read a report from the Public Works Department recommending payment to Brent Anderson Associates in the amount of $48,026.25 for the 16th Street and Third Avenue Parking Structure Restoration Project.

Agenda Item #9j

R. A. OLDEEN, INC.—ARMORY ROOF REPAIR PROJECT

The Deputy City Clerk read a report from the Public Works Department recommending payment to R. A. Oldeen, Inc. in the amount of $13,588.59 for the Armory Roof Repair Project.

Agenda Item #9k

VALLEY CONSTRUCTION—1999 WATERMAIN PROJECTS

The Deputy City Clerk read a report from the Public Works Department recommending payment to Valley Construction in the amount of $62,592.47 for the 1999 Watermain Projects.

A motion made by Alderman Frank Forlini and seconded by Alderman Evie White to accept the reports and authorize payments as recommended CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

Agenda Item #10

JANUARY 3-9, 2003

The Deputy City Clerk read the claims for the week of January 3 through 9 in the amount of $345,727.96. A motion made by Alderman Frank Forlini and seconded by Alderman Dave Conroy to allow the claims CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

Agenda Item #11

PAYROLL FOR THE WEEKS DECEMBER 22, 2002 THROUGH JANUARY 5, 2003

The Deputy City Clerk read the payroll for the weeks of December 22, 2002 through January 5, 2003 in the amount of $861,997.69.

A motion made by Alderman Conroy and seconded by Alderman Forlini to allow the payroll CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

BIDS

Agenda Item #12

CENTENNIAL CONTRACTORS—2003 STREET REPAIR PROGRAM

The Deputy City Clerk read a report from the Public Works Department regarding the bids for the 2003 Street Repair Program, recommending the bid of Centennial Contractors in the amount of $333,214.25.

A motion made by Alderman Frank Forlini and seconded by Alderman Evie White to approve the bid as recommended and authorize purchases CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

AGREEMENTS

Agenda Item #13

KM HOLDINGS

The Deputy City Clerk read a report from the Community and Economic Development Department regarding a substitution of KM Holdings for Illinois Casualty Company on the Development Agreement of September 23, 2003.

A motion made by Alderman Evie White and seconded by Alderman Conroy CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

PROPOSALS

Agenda Item #14

The Deputy City Clerk read a report from the Public Works Department regarding a Marina Design Contract, recommending the engineering services proposal from the Abonmarche Group.

A motion was made by Alderman Bauersfeld and seconded by Alderman Forlini to accept the proposal as recommended and authorize the City Manager to execute the contract documents.

Laura Ritchie, 701 East 15 Street, Coal Valley, addressed the Council. She is a member of the Sunset Marina Boaters Advisory Committee and had four items for the Council’s attention regarding this agenda item. She questioned the payment of $20,000 in permitting fees for the proposed construction in the Marina Master Plan when the situation is uncertain, payment for the parking lot improvements when the lots were just resurfaced, the payment for dredging when it may be possible for a coalition to be formed with the other marinas down river to make it less costly, and invited the Council to visit the Marina this Spring to discuss future plans with the Boaters Advisory Committee.

Bob Hawes, Public Works Director addressed the Council and answered Ms. Ritchie’s concerns stating the permitting fees were less costly to obtain at one time than on an on-going basis as projects are approved, the parking lot improvements will not be the same areas that were resurfaced recently, and the coalition might be feasible but would be lengthy to organize and the work needed to be done relatively soon. Ms. Ritchie was satisfied with Mr. Hawes responses and Mayor Pro Tem Brooks called for a roll call vote on the motion before the Council.

The motion made by Alderman Bauersfeld and seconded by Aldermen Forlini to accept the proposal as recommended CARRIED on a roll call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, Forlini. NAYS: None.

OTHER

Agenda Item #15

POLICE DEPARTMENT—INCREASE IN TOWING FEES

The Deputy City Clerk read a report from the Police Department regarding proposed increases in towing fees.

A motion made by Alderman Bauersfeld and seconded by Alderman Forlini to approve the increases as recommended CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

Agenda Item #16

PUBLIC HEARING-1501 SEVENTH AVENUE

The Deputy City Clerk read a report from the City Clerk and Police Department regarding a proposed date of February 3, 2003 for a public hearing on a waiver of signatures for a liquor license at 1501 Seventh Avenue. A motion made by Alderman Bauersfeld and seconded by Alderman Conroy to set the date of the Public Hearing for February 3, 2003 CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

ITEMS FROM THE CITY MANAGER’ S MEMORANDUM

City Manager John Phillips brought to the Council’s attention two reports: 1) 2002 Project Status Report on the Capital Improvement Projects provided by Public Works and 2) the Southwest Ares Plan Implementation Progress Report provided by CED.

RECESS

A motion made by Alderman Bauersfeld and seconded by Alderman Forlini to recess to Monday, January 20, 2003 at 5:00 p.m. CARRIED on a Roll Call vote. AYES: Aldermen Brooks, Conroy, Bauersfeld, White, and Forlini. NAYS: None.

___________________________

Carol Gentry, Deputy City Clerk