The Rock Island City Council met in Study Session at 5:00 p.m. on Monday, January 19, 2004 in the Personnel Conference Room of Rock Island City Hall. Present were Mayor Mark W. Schwiebert, presiding, and Aldermen Terry M. A. Brooks I, David R. Conroy, Daniel Rockwell, Evelyn "Evie" R. White and Ann L. Keefe. Aldermen John E. Bauersfeld Jr. and Frank J. Forlini, Jr. were absent. Staff present included City Manager John C. Phillips, Public Works Director Bob Hawes, Personnel Director/Assistant to the City Manager John Thorson, Finance Director Bill Scott, Police Chief Terry Dove, Sgt. Mike Sponsler, Assistant to the Public Works Director Tim Ridder, and Accountant Tim Banks. Representing Jumer’s Casino Rock Island were Ron Wicks, President of Rock Island Boatworks, Inc., Bill Renk, Vice President of Sales and Marketing, Gary Buettner, Vice President, Chief Financial Officer, Facilities Director at Casino Rock Island Kevin Brown and General Manager Jim Padulla. Also present were Community Marketing Director Jennifer Fowler, District Special Events Coordinator Erica Smith and Renaissance Rock Island Executive Director Dan Carmody, along with Representative Pat Verschoore, District business owners, and residents of Big Island.
City Manager John C. Phillips distributed copies of an e-mail that was sent to each Council member regarding the proposed Sales Tax for Food and Beverages. He also distributed a copy of the revised results of the consensus of budget options to date. Mr. Phillips noted that there were a number of items on the agenda for this session – the Casino Project presentation, the CIP, and Plaza Uses as well as perhaps some discussion on the Cabaret Licenses if time allowed.
Ron Wicks, President, Rock Island Boatworks, Inc. introduced the team from Jumer’s – Attorney John S. Elias, Facilities Director at Casino Rock Island Kevin Brown, Vice President/Chief Financial Officer Gary Buettner, General Manager Jim Padulla, and Vice President of Sales and Marketing Bill Renk. Mr. Renk then presented the project. He noted that they hoped to continue the relationship with the City of Rock Island that they have had over the years. He stated that they plan to move forward on the proposed $90 million casino development project which will be located on 110-acre plot at the southeast quadrant of the Highway 92 and Interstate 280 intersection in Rock Island County. He indicated that project construction is conditionally scheduled to begin in calendar year 2004.
He discussed the two phases of the project, with Phase I consisting of a 95,000 square foot one-story European themed structure that will house an entry, dining, gaming and ancillary facilities in addition to an adjacent parking structure. He noted that the state of the art casino and public area will be a single floor design, which is unique to the area. The second phase of the development will provide the addition of a hotel, a theatre, retail and more dining space.
Mr. Renk discussed the location of the development, indicating that it is a prime location due to its available development space as well as its adjacency to two major roadways. He stated that the location would also provide the most easily accessible tourist attraction to the area. Mr. Renk indicated that this would be a floating casino within a building, with cobblestone streets and tree-lined walks. He noted that Rock Island as well as the entire area would benefit from this development, since it will provide employment to 250 construction workers for approximately 18 months and then create 300 to 400 new casino-related permanent full-time jobs.
Gary Buettner, Vice President/Chief Financial Officer, spoke about the financial impact. He noted that the cost of Phase I will be approximately $65 million. He discussed the current status of the issues and the Illinois Gaming Board Involvement. He noted that each phase of the project would need to be approved by the Gaming Board. Mr. Buettner discussed the time line, noting that they are in the final stages of the development agreement. He noted that they plan to finalize the agreement within the next thirty to sixty days. The next steps involve the escrow and the reclamation process for 15 acres of land. He noted that he has received a commitment of ownership from the owners that they will not open before the project is completed. He stated that they plan to begin Phase II in the second year of operation, and will be open in the third year.
Mr. Renk stated that the project is still conditional, based on a number of significant factors, such as the purchase of the site, annexation of the site to the city, finalization of debt structure procurement, a completed development agreement with the city, and regulatory approval of the Illinois gaming Board. Both Mr. Renk and Mr. Buettner then responded to questions from Council. They indicated that the total job increase would occur with the completion of Phase II. They stated that the hotel would have two hundred rooms at approximately sixty dollars each.
City Manager John C. Phillips pointed out that additional information on the water has been provided, and if Council had nothing further to discuss regarding the CIP, it would be placed on the Agenda next week for final approval. Alderman Keefe suggested that a plan be worked out to replace water lines, but not this year. Mr. Phillips suggested that staff move forward with what we have now, and prepare a report for replacement of the system during the next year.
Alderman Rockwell had some questions regarding the Marina, which were responded to by Public Works Director Bob Hawes. Mr. Hawes explained the transfer of profit from the Marina to the CIP has been at $75,000 each year. He noted that during the presentation at the King Center, they discussed the change in the transfer of the profits as they begin to run the Marina like a business. He stated that they now keep 60 days expenditures, and anything over that is considered to be profit. Therefore, the amount transferred varies, depending on Marina business. He indicated that they would make a call each year, and adjust based on the rate. He stated that the fee comparison is similar to that of a Golf Course, with competition, adding that the Marina is not like the water and sewer operations. He noted that this Marina is in direct competition with other Marinas.
GREAT
RIVER PLAZA/PROPOSED CHANGES
Jennifer Fowler, Community Marketing Director, introduced some of the District business owners who were in the audience. Following discussion, consensus was to place this on the Agenda next week and then refer it for an ordinance. The proposals for approval include increasing the fees for the vendors to $500.00 for Rock Island Businesses and $700.00 for individuals; limiting the number of vendors to three;, add an application fee of $10.00 per event for not-for profit organizations, $25.00 per event for for-profit event sponsors , and $50.00 per vendor application.; whether or not to change the description of the “Quiet Zone” in the Ordinance; and prohibiting the use of generators. If approved, all will be referred to the City Attorney for appropriate Ordinance changes.
Kai Dreissen, of Kai’s, spoke about having concerts outdoors in front of his business which is on the west side of the Plaza. There was discussion about the people who would be in the restaurants or other businesses in the area and would be parked on that street when they were ready to begin set-up. Several comments were made in regard to this situation, and no conclusion was reached. Mayor Schwiebert asked the District to come up with a solution to present to Council. Following further discussion, Mayor Schwiebert concluded the following recommendations to be placed on the Agenda for Council consideration at the meeting of January 26: a) an increase in fees for vendors to $500.00 for businesses, $700 for individuals; b) limitation of the number of vendors to three; c) An application fee of $10.00 per event for not-for-profit organizations, $25.00 for for-profit sponsors; $50.00 for annual vendor applications; d) A change in the Ordinance description for the “Quiet Zone” which is currently the west side of the Plaza designated for arts events and low decibel amplification only; and e) the prohibition of the use of generators on the Plaza.
ADJOURNMENT
A motion made by Alderman Conroy and seconded by Alderman Rockwell to adjourn the meeting CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
The meeting was adjourned at 6:40 p.m.
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Jeanne F. Paggen, City Clerk
The Rock Island City Council met in regular session at 6:45 p.m. on Monday, January 19, 2004 in the Council Chambers of Rock Island City Hall. Present were Mayor Mark W. Schwiebert, presiding, and Aldermen Terry M. A. Brooks I, David R. Conroy, Daniel Rockwell, Evelyn "Evie" R. White and Ann L. Keefe. Aldermen John E. Bauersfeld Jr. and Frank J. Forlini, Jr. were absent.
Mayor Schwiebert called the meeting to order and lead in the Pledge of Allegiance to the Flag of the United States of America. Alderman Rockwell gave the Invocation. A motion made by Alderman White and seconded by Alderman Rockwell to approve the Minutes of the meeting of January 12, 2004 as printed CARRIED on a Voice vote.
Agenda Item #6
Agenda Item #8
The City Clerk read an Ordinance amending Chapter 15 of the Code of Ordinances, adding Article X, regarding Prepared Food and Liquor Tax. A motion was made by Alderman Keefe and seconded by Alderman Brooks to consider, suspend the rules and pass the Ordinance.
City Manager John C. Phillips discussed the financial problems that lead to this tax proposal. He noted that Council did not want to increase Property Taxes for the citizens, but the Income Tax, Sales Tax and Use Tax have decreased by about $1.2 million from two years ago. He discussed the increases in the Police and Fire Pension and also in the Health Insurance, adding that the City does not control the Police and Fire Pensions. He read a list of cuts that have already been made to address the loss in income, and read a list of options was presented to the Council including a ¼ percentage sales tax increase.
Mr. Phillips stated that there was a lot of discussion over several weeks and identified a number of cuts that have already been made, including the elimination of all seasonal Public Works persons, the downtown tree trimming, in-house repairs, and a cut in the Pay for Performance by one half. He stated that this proposed tax is an important solution to the City financial problems. He stated that the Council preference was to reduce the amount of the tax levy increase, and continue to look at ways to reduce costs.
Bill Scott, Finance Director, discussed the sales tax, noting that it would pertain to all food and beverage purchases for immediate consumption. The tax would go into effect April 1 and would be paid directly to the City at the end of the month following the month of the sale. He stated that all businesses licensed as Food Service establishments and Liquor Licensed establishments would be required to pay this tax. They discussed Hy-Vee, which is a food store with a restaurant area. He indicated that the food sold for the purpose of being eaten in the restaurant area would be taxed, as well as the liquor that is sold in the grocery area of the store.
Alderman White expressed her concern that this is a new tax, and would affect the “mom and pop” businesses in Rock Island who have already been hit with a new Federal Minimum Wage for employees. She stated that with these increases, the sister cities would follow. Mayor Schwiebert noted that Council did not want to increase property taxes, and Moline recently increased their sales tax by ¼percentage. He stated that we have to look at ways to plug the holes in the budget without cutting services or raising sales tax generally. Alderman Brooks indicated that staff id a good job to keep the services running and we have to do something. Alderman Keefe indicated that the tax was on optional items as opposed to necessities. Mayor Schwiebert noted that we are committed to maintaining high quality services. Alderman Conroy stated that he is not opposed to adding the new tax, but he planned to defer this until the next meeting when all the Council members should be present.
Jon Keim, 219 ½ 18th Street and owner of Huckleberry’s, spoke to Council about his opposition to the tax, indicating that his opposition was due to it being for one industry rather than for the entire city. He suggested that Council send letters to state and federal governments to oppose the mandates handed down. Mayor Schwiebert noted that they are planning for the next trip to Washington, and one of the issues papers is on unfunded mandates.
Michael King, owner of Copia Martini and Hickey Brothers Cigar Store, noted that the other cities mentioned by the Finance Director are stand-alone cities or else cities where both neighbors have adopted the same tax. He stated that this is not going to be a benefit in the long run because people will not want to come to Rock Island because of perception of the higher prices. Alderman Brooks stated that they come to Rock Island because of the uniqueness of the District and other places. Alderman Rockwell stated that he did not think that people shopped for pizza and beer based on cost, but agreed with the perception issue.
Jay Brent, owner of the Corner Tap on 14th Avenue, stated that his place is very small, and people do care about price. He indicated that when he raises the prices on beer, he hears about it for two years. He stated that everybody is faced with a crunch, and the bottom line is that things keep going up. He stated that it is a citywide problem and all should “bite the bullet.” He suggested looking at cutting services or charging for services that are now free like garbage pickup.
Jim Loula, 941 21st Street, Rock Island, works in a bar in The District. He suggested looking at the strength of the cities that have this tax, and he expressed concern about the exclusion of grocery stores that can warehouse their products and therefore purchase products at reduced cost. He stated that this tax seems to be against socialization. He suggested reducing the percentage and spread the tax all over. Mayor Schwiebert noted that there are not a lot of painless cuts without reducing the quality of life.
Jerry Minicha, owner of the Rock Island Hardee’s, stated that his customers would go to other places rather than pay the additional tax at the Rock Island Hardee’s. He expressed his opposition to the tax.
Terry Tilka, owner of RIBCO and Second Avenue, spoke to Council in opposition to the tax, stating that his fees have increased over the years – the restaurant and liquor licenses, minimum wages, and others. He suggested an increase in property taxes, stating that this 1% tax will not fix the city problems. He stated that he has let employees go because of less business, and noted that the vendors outside his doors do not help his business. Alderman Conroy stated that this will not affect just one industry but it will affect a lot of people.
Charles Fisher, 2829 9th Avenue, suggested a sunset clause in the ordinance that would force Council to look at this again for revisions in three or five years or the tax is dropped. He added that the city should live within their means like everyone else. He also called attention to the two items for software and hardware payments, suggesting that there is a lot of competition and there are Microsystems available for less money.
Kai Dreissens, owner of Kai’s, 1712 Second Avenue, suggested that there be a 1/2 % sales tax across the board and a ½ percentage sales tax on restaurants and liquor stores. He stated that this way, others were sharing in the taxes and there would be more money than the $400,000. City Manager John Phillips clarified that there is a ¼percentage max option for an increase in sales tax. Mayor Schwiebert stated that the best solution is economic recovery.
Following discussion, Alderman Conroy suggested that this ordinance be Deferred for a week so all Council members would be present to vote on this very important decision. Mayor Schwiebert suggested that a motion to Consider would also bring the ordinance back for another vote next week. Following discussion, Alderman Keefe offered to change her motion, and Alderman Brooks his Second. The motion, made by Alderman Keefe and seconded by Alderman Brooks, to consider the Ordinance, CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
Agenda Item #9a
The City Clerk read a report from the Information Technology Services Department recommending payment to Cisco Smartnet in the amount of $3,589.00 for renewal of the maintenance agreement for the communications equipment.
Agenda Item #9b
The City Clerk read a report from the Information Technology Services Department recommending payment to AutoCAD in the amount of $4,848.00 for renewal of the support agreement through January of 2005.
Agenda Item #9c
The City Clerk read a report from the Public Works Department recommending payment to Phoenix Corporation in the amount of $12,75075 for the 4th Avenue, 24 – 27 Streets Storm Sewer Improvements.
Agenda Item #9d
The City Clerk read a report from the Public Works Department recommending payment to Phoenix Corporation in the amount of $48,844.10 for the Great River Plaza Renovations – Second Avenue project.
Agenda Item #9e
GENERAL
CONSTRUCTORS/RIDGEWOOD WATER CHEMICAL FEED MODIFICATIONS
The City Clerk read a report from the Public Works Department recommending payment to General Constructors in the amount of $11,290.50 for the Ridgewood Water Chemical Feed Modifications.
Agenda Item #9f
SHIVE-HATTERY/
3 AVENUE RECONSTRUCTION
The City Clerk read a report from the Public Works Department recommending payment to Shive-Hattery in the amount of $4,961.38 for the 3rd Avenue Reconstruction from 20th to 24th Streets.
Agenda Item #9g
AMENT,
INC/COMPREHENSIVE STREET SURVEY PROJECT
The City Clerk read a report from the Public Works Department recommending payment to Ament, Inc. in the amount of $3,850.00 for the Comprehensive Street Survey Project.
Agenda Item #9h
INTERSTATE
COMPANIES/ALISON TRANSMISSION PURCHASE
The City Clerk read a report from the Public Works Department recommending payment to Interstate Companies in the amount of $5,758.71 for emergency purchase of a re-manufactured Alison Transmission.
Agenda Item #9i
DR. JOSEPH
SENG/TAX REBATE
The City Clerk read a report from the Community and Economic Development Department recommending payment to Dr. Joseph Seng in the amount of $997.65 for tax rebate as outlined in agreement.
Alderman White asked how much longer the taxes would be rebated to Dr. Seng, and Community and Economic Development Department Director Greg Champagne responded that this will occur for two more years.
A motion made by Alderman Keefe and seconded by Alderman Rockwell to accept the reports and authorize payments as recommended CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
Agenda Item #10
JANUARY 8
THROUGH 15
The City Clerk read the claims for the week of January 8 through 15 in the amount of $611,046.42. A motion made by Alderman Rockwell and seconded by Alderman White to allow the claims CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
CONTRACTS/AGREEMENTS
Agenda Item #11
EASEMENT
AGREEMENT/HIGHLAND PLACE
The City Clerk read a report from the Community and Economic Development Department regarding an easement agreement to allow the extension of public sanitary sewer service to the new Highland Place. A motion made by Alderman White and seconded by Alderman Conroy to approve the agreement and authorize the City Manager to execute the contract documents CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
TRAFFIC ENGINEERING/PARKING
Agenda Item #12
1718 24 ½
STREET/HANDICAPPED PARKING
The City Clerk read a report from the Traffic Engineering Committee regarding a request for a Handicapped Parking Space in front of 1718 24 ½ Street. A motion made by Alderman White and seconded by Alderman Rockwell to approve the request and refer to the City Attorney for an Ordinance CARRIED on a Voice vote.
Agenda Item #13
The City Clerk read a report from the Traffic Engineering Committee regarding a request from the Public Works Department to ban parking on Second Avenue between 14th and 16th Streets. A motion made by Alderman Keefe and seconded by Alderman Rockwell to approve the request and refer to the City Attorney for an Ordinance CARRIED on a Voice vote.
TRAINING
SESSION
City Manager John C. Phillips called attention to a memo from Personnel regarding a training session held for employees, with 238 total in attendance. He stated that the training was for Customer Service and was lead by Kimberly Shea, Training Manager for Jumer’s Casino Rock Island. There was no charge for her services and he expressed appreciation to Jumer’s for allowing her to do these sessions.
He then noted the information from Assistant City Attorney Ted Kutsunis regarding Adult Cabaret Licenses. Alderman Keefe stated that it looked like the City could ban nude dancing at liquor-licensed establishments in the City. Attorney Kutsunis reviewed the Grandfather Clause in the original ordinance and explained the reasons for including it. He noted that these businesses would eventually go away when the owners sell or, as in the case of one of the three, pass away.
Mr. Phillips noted that the Gaming Policy was included and asked if Council was considering any modifications to the policy at this time. Alderman Rockwell suggested exploring the different percentages for the three areas of allocations. Mayor Schwiebert noted that, as the dollars become more constant and predictable, their use would change some also.
Alderman
Keefe asked that the following statement be part of the record: “The City Council recommended no change in
the Gaming Policy for the coming year.”
OTHER BUSINESS
Alderman Brooks noted that he attended a meeting as a member of the Housing Authority. He stated that the HUD mandates will change public housing, and added that Rock Island seems to be equal or ahead of most other cities in many areas.
Barb Wlaskolick, 2528 58th Avenue West, Milan, asked what studies Jumer’s have provided to the City before proposing the project presented at the Study Session. Mr. Phillips responded that they have not submitted any studies at this time. She then asked if they would have access to this information when it becomes available, and Mayor Schwiebert noted that there would be a public hearing on the zoning, and also an agenda item regarding water and sewer connections which would also be part of a public meeting. He indicated that this information would then be available to the public.
Christina
Kost, 2104 Big Island Road, expressed appreciation to City Manager John
Phillips for holding a meeting with them and an engineer who has worked on the
levy project to discuss the problems that could occur with changes to the levy
area.
EXECUTIVE SESSION
A motion made by Alderman Conroy and seconded by Alderman Keefe to recess to Executive Session on matters of Personnel and Property Acquisition CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
The meeting was recessed at 8:30 p.m.
Mayor Schwiebert reconvened the regular meeting at 9:15 p.m. A motion made by Alderman and seconded by Alderman to recess to Monday, January 26 at 5:00 p.m. CARRIED on a Roll Call vote. AYES: Brooks, Conroy, Rockwell, White and Keefe. NAYS: None.
The meeting was recessed at 9:16 p.m.
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Jeanne F. Paggen, City Clerk